Piloting Results-Based Lending for Programs (Policy Paper)

Date: February 2013
Type: Policies, Strategies, and Plans
Subject:
ADB funds and products; ADB administration and governance

Description

This policy paper (R-paper) describes the proposed piloting of results-based lending (RBL) for programs modality. This is a new modality that will directly link disbursements of funds to achievements of results in a government-owned program. The objectives of RBL are to increase accountability and incentives for delivering and sustaining results, improve the effectiveness and efficiency of government-owned sector programs, promote institutional development, and enhance development effectiveness. RBL will involve rigorous assessments of the systems to implement the programs, follow-up capacity development measures, and implementation support. RBL will also support development coordination and harmonization when more than one development agency is involved in a program.

Public Consultation

ADB sought stakeholder and public comments and suggestions on the proposed piloting of the RBF for programs. The consultation paper was posted on the ADB and Strategy and Policy Department websites between 15 June to 15 July 2012. The invitation to comment was also announced in the ADB's Facebook and Twitter accounts. Five sets of comments were received. ADB carefully considered the comments and suggestions received in drafting the W-paper.

Date Received No. Sender

23 June 2012
26 June 2012
11 July 2012
15 July 2012
16 July 2012

1
2
3
4
5

Ir.Usman Silalahi, Indonesian citizen
Mr. Chris Dooley, Former ADB staff
Ms. Imelda Plaza, Department of Business and Innovation (DBI), Victoria, Australia
Accountability Counsel
NGO Forum on ADB


Read the Summary of External Comments on the Consultation Paper and ADB's Response.

Preparation and Consultation Timetable

Dates Activities
November 2009 Identification by the loan delivery working group 
2010 (Intermittent) Missions to DMC and development partners
2011 Establishment of an inter-departmental team
2011 (Intermittent) Survey of DMCs
November 2011 Informal Board seminar
15 June 2012 Consultation paper posted on ADB website
15 June–15 July 2012 Invitation to stakeholders and the public to comment on the consultation paper. Invitation posted through the ADB website, SPD website, and ADB Facebook and Twitter accounts
22 Aug 2012 Working paper circulated to the Board
12 Sept 2012 Working paper discussed by the Board 
13 February 2013 R-paper circulated to the Board
  R-paper simultaneously disclosed to the public for information
6 March 2013 R-paper Approved by the Board
6 June 2013 Effectivity date of the policy

ADB = Asian Development Bank, DMC = development member country, SPD = Strategy and Policy Department, NGO = nongovernmental organizations, TBD = to be decided.

*Note: The timetable may be subject to changes as needed.

For inquiries, comments, and suggestions, please email RBFprograms@adb.org.