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p. 17 of 95 BACK | NEXT Message from the Chairman of the Board of Directors Members, Capital Stock and Voting Power The Record Abbreviations 2004 in Review: Board of Directors' Report New and Revised Policies and Procedures Development Partnerships Governing Structures Financing Operations Funding Financial Resources Loans Technical Assistance Grants Equity Investments Cofinancing and Guarantee Operations Resource Transfers Private Sector Operations Special Theme: The Changing Face of the Microfinance Industry: Building Financial Systems for the Poor Part 1: Institutional Effectiveness Part 2: Poverty Reduction Part 3: Financial Statements: Management's Discussion and Analysis

Annual Report 2004 : 2004 in Review: Board of Directors' Report

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Cofinancing and Guarantee Operations

ADB’s active coordination with its development and financing partners and continuing proactive approach to cofinancing assisted its DMCs in obtaining additional financial resources from bilateral and multilateral funding agencies, as well as from commercial sources. Maximizing the development impact of its assistance programs by identifying cofinancing opportunities that directly complement ADB projects has been the cornerstone of ADB’s cofinancing and guarantee operations. In achieving this objective, ADB continued to involve its DMCs in identifying the best financing solutions for public and private sector projects and programs, specifically the use of its credit enchancement products (see www.adb.org/cofinancing/).

As part of its efforts to diversify cofinancing sources and to foster financial partnerships, ADB participated in several international forums such as the Coordination Group of Arab, Islamic, and Organization of Petroleum Exporting Countries’ (OPEC) Development Institutions; the Round Table on Trust Funds and Cofinancing of the Inter-American Development Bank; and the Berne Union General Meeting. New product initiatives included the Trade Facilitation Program, in which ADB entered into risk-sharing agreements with commercial banks to help promote international trade in the region. The program involved 51 leading international and regional cofinancing banks that were designated as “founding partners.”

Cofinancing and guarantee operations in 2004 amounted to about $2.4 billion. This represented approximately 46% of ADB's total lending of $5.3 billion. Thirty-three loan projects in 14 DMCs received cofinancing. The PRC received the largest amount ($1.0 billion), primarily from its domestic financial institutions, followed by India at $811.0 million, and Viet Nam at $298.0 million (see Table 6 in the Statistical Annex).

Since 1970, cofinancing and guarantee operations have mobilized a cumulative total of $43.0 billion providing additional resources for 669 ADB-assisted loan projects and programs. The cumulative total comprises $23.4 billion from official sources and $19.6 billion from commercial sources. The energy sector accounted for $18.2 billion or 42% followed by transport and communications ($10.3 billion or 24%), industry and trade ($3.7 billion or 9%), multisector ($3.2 billion or 4%), and other sectors ($7.7 billion or 21%).

Commercial Cofinancing and Guarantee Operations. These totaled $1.7 billion for 10 projects including $945.0 million for ADB loans with government guarantee and $783.0 million for private sector projects. Guarantee operations amounted to $75.3 million consisting of a partial credit guarantee of $65.3 million in support of the Petronet LNG Ltd. project in India and a political risk guarantee of $10.0 million for the Afghanistan Investment Guarantee Facility project. Additional commercial cofinancing was raised in the form of parallel loans of financial lenders ($46.1 million) and domestic financial institutions in the PRC ($945.4 million) and India ($661.2 million).

Official Cofinancing. Cofinancing mobilized from ADB's bilateral development partners and multilateral financial institutions totaled $713.4 million for 25 projects comprising $147.1 million in grant funds and $566.3 million in loans. Of the grant funds, ADB will administer untied grants totaling $55.5 million contributed by the United Kingdom ($30.0 million), Canada ($18.0 million), Sweden ($5.6 million), and the Netherlands ($1.9 million). In addition, parallel grant funds of $91.6 million were provided by the United Kingdom ($36.0 million), the European Commission ($18.0 million), Denmark ($10.0 million), the Netherlands ($10.0 million), and others ($17.6 million).

Cofinancing in the form of loans (joint and parallel) was provided by the World Bank ($225.6 million), France ($123.5 million), Japan ($123.0 million), the OPEC Fund for International Development ($36.0 million), Republic of Korea ($23.9 million), Germany ($17.0 million), Norway ($10.0 million), and the Nordic Development Fund ($7.3 million) (see Table 6 in the Statistical Annex).

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