Bhutan: 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 Bhutan amounted to $12.7 million grant cofinancing for 8 investment projects and $17.5 million for 16 technical assistance projects. Cumulative DVA commercial cofinancing for Bhutan amounted to $3.05 million for one investment project.

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

Cofinancing No. of Projects Amount ($ million)
Projectsa 5 11.27
 Grants 4 8.22
 Commercial cofinancing 1 3.05
Technical Assistance Grants 8 11.95

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

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

Advancing Economic Opportunities of Women and Girls - 1.95 G
Farm Roads to Support Poor Farmers' Livelihoods - 3.00 G
Rural Renewable Energy Development 21.59 0.27 G
Upgrading Schools and Integrated Disaster Education Project - 3.00 G
Trade Finance Programc 2.01 3.05 C

- = nil
a Loan, grant or blend
sup>b C = commercial cofinancing, G = grant 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.