Cofinancing

Cofinancing operations enable ADB’s financing partners, governments or their agencies, multilateral financing institutions, and commercial organizations to participate in financing ADB projects. The additional funds are provided in the form of official loans and grants, and commercial financing such as B loans, risk transfer arrangements, parallel loans, and cofinancing for transactions under ADB’s Trade Finance Program.

By the end of 2013, cumulative direct value-added (DVA) official cofinancing for Armenia amounted to $87.1 million for one investment project and $1.2 million for two technical assistance projects. Cumulative DVA commercial cofinancing for Armenia amounted to $123.15 million for three investment projects.

In 2013, the Neighbourhood Investment Facility provided grant cofinancing of $7.9 million and the European Investment Bank provided loan cofinancing of $79.2 million to North-South Road Corridor Investment Program-Tranche 3.

Armenia: Projects Cofinanced, 1 January 2009-31 December 2013

Cofinancing No. of Projects Amount
($ million)
Projectsa 4 210.25
 Grants 1 7.90
 Official loans 1 79.20
 Commercial cofinancing 3 123.15
Technical Assistance Grants 2 1.16

a A project with more than one source of cofinancing is counted once.

Investment Projects Cofinanced for Armenia, 1 January 2009-31 December 2013

Project ADB
Amounta
($ million)
Cofinancing
Amount
($ million)
Type of
Cofinancingb
North-South Road Corridor Investment Program - Tranche 3 100.00 87.10 O/G
Armenia International Airports (ArIA) 40.00 80.00 C
Trade Finance Programc 5.69 18.15 C
Sevan-Hrazdan Cascade Hydropower System Rehabilitation 25.00 25.00 C

a Loan, grant or blend.
b C = commercial cofinancing, G = grant cofinancing, O = official cofinancing.
c The $1 billion limit for ADB's Regional Trade Finance Program (TFP) approved by the Board of Directors in 2009 is the maximum exposure the TFP can assume at any one point in time. This limit has never been breached. Because maturities under TFP transactions tend to be short - on average less than 180 days - TFP exposure can revolve (be reused) within a year. In addition, the TFP distributes risk exposures to various partners, which leverages its capital resources. This explains how the TFP's exposure from 2009-2013 was greater than its $1 billion limit without actually breaching the limit at any one point in time.