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 Sri Lanka amounted to $795.5 million for 34 investment projects, and $15.9 million for 35 technical assistance projects. Cumulative DVA commercial cofinancing for Sri Lanka amounted to $448.33 million for one investment project.

In 2013, the World Bank provided $100 million in loan cofinancing for Education Sector Development Program.

Sri Lanka: Projects Cofinanced, 1 January 2009-31 December 2013

Cofinancing No. of Projects Amount
($ million)
Projectsa 10 614.11
 Grants 6 17.78
 Official loans 3 148.00
 Commercial cofinancing 1 448.33
Technical Assistance Grants 8 6.00

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

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

Project ADB
Amounta
($ million)
Cofinancing Amount
($ million)
Type of Cofinancingb
Clean Energy and Network Efficiency Improvement 130.00 1.50 G
Conflict-Affected Region Emergency 150.00 1.50 G
Education Sector Development Program 200.00 100.00 O
Improving Community-Based Rural Water Supply and Sanitation in      Post-Conflict Areas of Jaffna and Kilinochchi - 2.00 G
Improving Connectivity to Support Livelihoods and Gender Equality - 3.00 G
Jaffnaand Kilinochchi Water Supply and Sanitation 90.00 40.00 O
National Highways Sector 150.00 8.00 O
North East Community Restoration and Development II (Supplementary) - 7.28 G
Post-Conflict Emergency Assistance for Livelihood Restoration of     Resettled Internally Displaced People in the North - 2.50 G
Trade Finance Programc 390.22 448.33 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.