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p. 26 of 27 BACK | NEXT Executive Summary I. Introduction II. The Performance-Based Allocation Policy III. Lessons, Issues, and Directions IV. Enhancements to the Policy V. Implementation VI. Recommendation Appendixes

Review of the Asian Development Bank's Policy on the Performance-Based Allocation of Asian Development Fund Resources

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Recommendation

113. This review identifies measures to enhance the policy on PBA and proposes that the policy be modified to incorporate the revisions discussed in Section IV. Specifically, the Board’s approval is sought to:

1. align CPA criteria with those of IDA as per Table 10 and adopt the modified rating and allocation framework presented in Boxes 5 and 6
2. provide ADF support for operations in PDMCs in accordance with paragraph 76
3. fund subregional projects in accordance with paragraphs 80–81 and Box 7
4. accommodate extra-formula allocations and adjustments using the criteria of paragraphs 77–79 and 82–83
5. discontinue country-specific performance assessments and triggers, collar adjustments to attenuate abrupt changes in lending, and special allocations to support far-reaching reforms
6. publicly disclose numerical CPA ratings beginning with the 2005 CPAs

114. This review proposes that the policy be subject to compliance review under ADB’s accountability mechanism with respect to Sections IV and V.

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