Catalog

	Table of Contents
p. 11 of 13 BACK | NEXT I. Development Challenges for the Asia and Pacific Region II. ADB’S Medium-Term Strategy (2001-2005) A. Differentiating Between Countries B. Operations in a Subregional Context C. Applying the Operating Principles III. Aligning the Organization with the Strategy A. Align the Organizational Structure and Business Processes B. Develop a Learning Organization C. Make Assistance Modalities More Flexible D. Improve Integrated Resource Management IV. The Strategy and the Planning, Programming, and Budget Process

Medium-Term Strategy : II. ADB’S Medium-Term Strategy (2001-2005)

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C. Make Assistance Modalities More Flexible

42. New processes for project processing that are currently being pilot tested in several DMCs will streamline the project cycle by simplifying many of the more cumbersome procedures that were previously in place. At present the products that ADB uses to deliver its assistance consist of project, sector, and program loans (designed mainly with the use of project preparatory TAs), advisory TAs (that are either stand alone or attached to loans), and regional TAs. In addition, ESW and staff policy dialogues are used. ADB’s products need to be comprehensively reviewed to ensure that they remain appropriate for delivering the complex agenda that ADB has set for itself. ADB needs to be more responsive to its client needs, and its product designs must reflect this responsiveness by being streamlined, simplified, and flexible.

43. The process for preparing project preparatory TA is time consuming and cumbersome. Greater DMC ownership must translate into the DMCs being more involved in project preparation, requiring relatively less inputs from ADB in the preparation for projects; this will speed up project processing. Consultants will be supervised and managed more closely to ensure greater ADB involvement in the final product and also greater interaction between the consultants, ADB, and the DMCs. The new business processes address some of these issues, and are being refined in light of the reorganization.

44. To do things right today is more time consuming, requires greater flexibility, and a far broader range of expertise. The nature of loans has changed considerably. Previously, project design was not complex and was based primarily on physical components with relatively predictable timetables. Now ADB's strategic objectives have to be included in the design of interventions, to ensure that policies and strategies that ADB advocates are being complied with, and safeguards are being met.²² In addition, because of the linking of products (loans, TAs, policy dialogue) and their sequencing, interventions will cater to a more complex agenda. As a result, team effort and a greater variety of inputs and expertise will become even more important. Ensuring that this does not lead to the project processing cycle being unduly prolonged is essential.

45. While existing assistance modalities may be appropriate for many of the interventions, more flexibility is necessary for some of the more complex policy and process-based interventions that are being increasingly expected of ADB. To maintain a long-term commitment in a particular sector, a sequence of interventions will be developed and a level of flexibility introduced to allow for midcourse corrections. New forms of loans such as basket-financing loans (to finance SWAPs) and multiphase/adaptable program loans will be examined to meet such requirements. Appropriate financing mechanisms responsive to the special needs and requirements of regional cooperation will also be developed. In particular, the establishment of regional cooperation funding facilities will be targeted before the end of 2005.

46. New modalities for working together with NGOs, in addition to those undertaken under the Japan Fund for Poverty Reduction, will be developed. The development of partnerships is becoming increasingly important to draw upon expertise essential for delivering many targeted interventions, expertise that is not available within ADB. These will include developing funding (and control) mechanisms that will allow NGOs to directly access ADB funds. At present NGOs are implementing some selected projects for ADB, particularly in microfinance. Methods that will allow NGOs to implement a wider range of ADB projects and programs, particularly targeted poverty interventions, will also be developed. The review and development of new assistance modalities will be undertaken by SPD in 2002-2003.

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