Azerbaijan: 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, other concessional financing, and commercial financing such as B loans, risk transfer arrangements, parallel loans and equity, guarantee cofinancing, and cofinancing for transactions under ADB’s Trade Finance Program.

By the end of 2014, cumulative direct value-added (DVA) official cofinancing for Azerbaijan amounted to $2.5 million for one investment project, and $2.5 million for six technical assistance projects. Cumulative DVA commercial cofinancing for Azerbaijan amounted to $143.79 million for two investment projects.

Azerbaijan: Projects Cofinanced, 1 January 2010–31 December 2014

Cofinancing No. of Projects Amount ($ million)
Projectsa 2 143.79
 Commercial cofinancing 2 143.79
Technical Assistance Grants 4 1.65

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

Investment Projects Cofinanced for Azerbaijan, 1 January 2010–31 December 2014

Project ADB Amounta
($ million)
Cofinancing Amount
($ million)
Type of
Cofinancingb
Garadagh Cement Expansion and Energy Efficiency Improvement Project 27.00 143.58 C
Trade Finance Programc 13.46 0.21 C

a Loan, grant or blend
b C = commercial cofinancing
cThe $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. Although greater than $1 billion in 2010–2014, the TFP exposure was not breached because TFP maturities tend to be short - less than 180 days on average - and TFP exposure can revolve (be reused) within a year. The TFP also distributes risk exposures to various partners that leverage its capital resources.