Publications

	Table of Contents
p. 8 of 9 BACK | NEXT I. Background II. ADB's Poverty Reduction Strategy III. Rationale for the Cooperation Fund IV. Objectives and Scope V. Outputs VI. Activities to be Financed from the Fund VII. Implementation Arrangements VIII. Funding Arrangements IX. Recommendation

Formulation and Implementation of National Poverty Reduction Strategies

---

VIII. Funding Arrangements

24. The Government of the Netherlands (the Netherlands) has proposed to make an initial contribution of 15 million Dutch Guilders (currently equivalent to about $6.0 million) to be provided for a period of three years commencing in November 2001. At its discretion, the Netherlands may provide additional resources to the Fund. The first installment will be remitted when ADB and the Netherlands sign the Channel Financing Arrangement (the Arrangement) providing for the first contribution to the Fund. Contributions from other donors will be effected through the signing of similar channel financing arrangements (CFAs). These CFAs will be approved by ADB’s Management and will be sent to ADB’s Board for information.

25. Contributions from participating donors under the Fund will be deposited into a United States dollar interest-bearing account to be specified by ADB. Interest accrued on such amount will be used for the Fund. The resources of the Fund may be freely exchanged by ADB into other currencies as required. Any fees, including the service charge for administering the Fund in accordance with paragraph 26 below and charges relating to the purchase of such other currencies, will be paid out of the Fund.

26. The Fund will be held by ADB on behalf of the participating donors and will be administered separately form ADB’s own resources. For administering the Fund, ADB will be paid a service charge in accordance with ADB’s policy on service charges for administration of grant cofinancing from bilateral sources.5 ADB may use part of the Fund (and any interest thereon) to cover the service charge.

27. ADB will maintain records and accounts in accordance with its normal procedures to show expenditures financed by the Fund. ADB will provide the participating donors with periodic reports on the use of the Fund and the activities financed thereunder. Such reports will be made available to the Board. ADB and the participating donors will periodically review the administration and operation of the Fund.

28. ADB will contribute to the program of activities to be financed from the Fund in the form of (i) services provided by Headquarters and resident mission professional staff for TA design, preparation, oversight, and accounting; and (ii) office, secretarial, and other equipment support.

29. Contributions from participating donors will finance activities under the Fund in accordance with detailed annual work programs agreed upon between ADB and such donors.

Back VII. Implementation Arrangements	Next IX. Recommendation