Classification of ADB's Developing Members

Per capita gross national product and debt repayment capacity are the criteria used to determine the classification of borrowing developing members and eligibility to borrow from the Asian Development Fund (ADF). Group A (ADF only) countries include Afghanistan, Bhutan, Cambodia, Kiribati, Kyrgyz Republic, Lao People’s Democratic Republic, Maldives, Mongolia, Myanmar,¹ Nepal, Samoa, Solomon Islands, Tajikistan, Timor-Leste, Tuvalu, and Vanuatu.

Group B1, ADF with limited amounts of ordinary capital resources (OCR), includes Azerbaijan, Bangladesh, Cook Islands,² Marshall Islands, Federated States of Micronesia, Pakistan, Sri Lanka, Tonga, and Viet Nam. Group B2 (OCR with limited amounts of ADF) includes People’s Republic of China,¹ India,¹ Indonesia,³ Nauru,¹ Papua New Guinea, and Uzbekistan.

Group C (OCR only) includes Fiji Islands, Kazakhstan, Malaysia, Philippines, Thailand, and Turkmenistan.

In 2004, cost-sharing limits for project loans were 80% for Group A,⁴ 75% for B1, 70% for B2, and 65% for C. Government contributions to technical assistance should be at least 15% of total costs for Group A, 20% for B1 and B2, and 30% for C. The contribution will be subject to the limit of total technical assistance costs minus foreign exchange costs and costs of domestic consultants.

Criteria for graduation from regular ADB assistance have also been established. Hong Kong, China; Republic of Korea; Singapore; and Taipei,China have graduated from regular ADB assistance (see www.adb.org/documents/policies/graduation).

1. Currently no access to ADF.
2. Limited eligibility for OCR will be applied only after the external debt situation improves.
3. On a watch list for graduation from the ADF.
4. As per the Board of Directors’ paper, “Review of Afghanistan’s Classification under ADB’s Graduation Policy,” 28 June 2002, the costsharing limit for loans and technical assistance operations for Afghanistan was waived for 2002–2004.