Grant Cofinancing
Trust funds and project-specific grants are key instruments to mobilize and channel grants from external sources to finance technical assistance and components of investment projects. They play an important role in complementing ADB's own resources to meet capacity development and other specific demands from DMCs. Multilateral, bilateral, and private sector partners have contributed more than $2.0 billion in grants to ADB operations (Table 22). In 2008, a total of $154.2 million in grant cofinancing was mobilized comprising $84.2 million for 76 technical assistance projects and $70.0 million for 17 investment projects. By yearend, there were 29 trust funds under active administration by ADB which included 19 active single donor trust funds to finance activities in various sectors or for specific themes, and 10 multidonor trust funds to finance activities with a thematic focus, including poverty reduction, governance, gender and development, managing for development results, HIV/AIDS, water, energy, education, information and communications technology, and trade and finance.
Initially, trust funds were established through donorspecific channel financing agreements, for a wide range of sectors, focused primarily on financing technical assistance operations. More recently, in response to the changing needs of developing member countries and consistent with ADB's financing partnership strategy9 and harmonization efforts, ADB has established some trust funds based on common agreements with development partners and financing through instruments of contribution. These are established under an umbrella facility of sector- and themefocused financing partnership, and finance technical assistance and grant components of investment projects.
Technical Assistance and Grant Funds under Financing Partnership Facilities and Special Initiatives. ADB has established two multidonor and three single donor trust funds under the financing partnership facilities framework, to support both technical assistance and grant components of investment projects in priority sectors consistent with Strategy 2020. Since 2006, about $100.0 million has been mobilized from bilateral sources to finance activities in the water sector, for clean energy, and for regional cooperation and integration.
Japan made its initial contributions of $23.1 million to the Asian Clean Energy Fund and $11.5 million to the Investment Climate Facilitation Fund, the two new initiatives that were established last year under the Clean Energy Financing Partnership Facility and Regional Cooperation and Integration Facility. Austria and Spain each contributed $5 million to the Multidonor Water Trust Fund. Spain and Sweden made their first contributions of $5 million and $4.7 million respectively, to the Multidonor Clean Energy Fund. Australia expressed its intent to make a total additional contribution of A$25 million each to these multidonor funds by 2011.
Under ADB's Carbon Market Initiative, the Future Carbon Fund was established in 2008 complementing the existing Asia Pacific Carbon Fund. The fund will provide financing up front for ADB-supported projects that will continue to generate carbon credits after 2012. The initial target size of the fund is $100 million and may be increased to $200 million if there is sufficient demand.
Japan Fund for Poverty Reduction
The Japan Fund for Poverty Reduction (JFPR) was established in May 2000 as a trust fund to support poverty reduction and social development activities that can add substantial value to ADB projects. Since 2000, Japan has contributed $360.4 million in total. To date, $300.3 million for 116 projects has been approved, of which 13 projects valued at $34.0 million were approved in 2008 (JFPR; Statistical Annex 27). A number of projects have been completed this year and these are the subjects of knowledgesharing sessions organized by ADB. In 2008, the JFPR publication series was launched which will focus on the impact and outcomes, and lessons learned from JFPR projects.
Japan Scholarship Program
The Japan Scholarship Program (JSP) was established in 1988 to provide an opportunity for well-qualified citizens of developing member countries to undertake postgraduate studies in economics, management, science and technology, and other development-related fields at selected educational institutions in Asia and the Pacific. JSP is funded by Japan and administered by ADB. Currently, 20 institutions in 10 countries participate.
Between 1988 and 2008, Japan contributed $100.1 million. A total of 2,417 scholarships has been awarded to recipients from 35 member countries. Recently, an average of about 150 scholarships have been awarded each year. Of the total, 2,053 have completed their courses. Women have received 823 scholarships.
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