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 Pakistan amounted to $668.7 million for 31 investment projects and $56.5 million for 44 technical assistance projects. Cumulative DVA commercial cofinancing for Pakistan amounted to $4.79 billion for 18 investment projects.

In 2013, Pakistan received $150 million loan cofinancing from the Islamic Development Bank for Jamshoro Power Generation.

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

Cofinancing No. of Projects Amount
($ million)
Projectsa 8 4,655.96
 Official loans 2 175.00
 Commercial cofinancing 6 4,480.96
Technical Assistance Grants 1 0.40

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

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

Project ADB
Amounta
($ million)
Cofinancing
Amount
($ million)
Type of
Cofinancingb
Energy Efficiency investment Program - Tranche I 60.00 25.00 O
Jamshoro Power Generation 900.00 150.00 O
Zorlu Enerji Power 36.80 70.05 C
Uch II Power 100.00 289.96 C
Patrind Hydropower 97.00 230.00 C
Foundation Wind Energy Limited I 33.43 67.02 C
Foundation Wind Energy Limited II 33.18 66.77 C
Trade Finance Programc 2,930.87 3,757.16 C

a Loan, grant or blend.
b C = commercial 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.