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 Indonesia amounted to $3.17 billion for 40 investment projects and $182.1 million for 98 technical assistance projects. Cumulative DVA commercial cofinancing for Indonesia amounted to $1.17 billion for seven investment projects.

In 2013, Indonesia received $774.5 million loan cofinancing from the ASEAN Infrastructure Fund, the Canadian Climate Fund for the Private Sector in Asia under the Clean Energy Financing Partnership Facility, Clean Technology Fund, governments of France and Japan, and the World Bank; and $15 million grant cofinancing from the Clean Energy Fund under the Clean Energy Financing Partnership Facility and the Global Environment Facility.

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

Cofinancing No. of Projects Amount
($ million)
Projectsa 12 1,763.82
 Grants 6 21.70
 Official loans 6 889.50
 Commercial cofinancing 2 852.62
Technical Assistance Grants 39 132.59

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

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

Project ADB
Amounta
($ million)
Cofinancing
Amount
($ million)
Type of
Cofinancingb
Citarum Watershed Management and Biodiversity Conservation 50.00 3.75 G
Coral Reef Rehabilitation and Management Program-Coral Triangle Initiative 45.52 8.00 G
Inclusive Growth through Improved Connectivity Program, Subprogram 2 400.00 600.00 O
Java-Bali 500-Kilovolt Power Transmission Crossing 224.00 25.00 O
Java-Bali Electricity Distribution Performance Improvement 50.00 51.00 O/G
Polytechnic Education Development 75.00 4.95 G
Regional Roads Development 180.00 65.00 O
Rice Fortification for the Poor - 2.00 G
Sarulla Geothermal Power Development 250.00 100.00 O
West Kalimantan Power Grid Strengthening 49.50 51.50 O/G
Indonesia Eximbank 100.00 100.00 C
Trade Finance Programc 505.84 752.62 C

-= nil.
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.