Refining the Performance-Based Allocation of Asian Development Fund Resources

Institutional Document | October 2008

The quantity of concessional financing needed by countries in Asia and the Pacific far exceeds what can be financed from the Asian Development Fund (ADF). The Asian Development Bank (ADB) developed the performance-based allocation (PBA) system to ration ADF support fairly among the many competing needs, and to direct the funds to where they will be used most effectively. The PBA policy, introduced as part of the seventh ADF replenishment (ADF VIII), was substantially revised during ADF IX to strengthen the link between performance and allocations.

The quantity of concessional financing needed by countries in Asia and the Pacific far exceeds what can be financed from the Asian Development Fund (ADF). The Asian Development Bank (ADB) developed the performance-based allocation (PBA) system to ration ADF support fairly among the many competing needs, and to direct the funds to where they will be used most effectively. The PBA policy, introduced as part of the seventh ADF replenishment (ADF VIII), was substantially revised during ADF IX to strengthen the link between performance and allocations.

Contents 

  • Introduction
  • Approach to Performance-Based Allocation
  • Refining the Allocation Methodology
  • Implementing the POst-Conflict Assistance Phaseout
  • Subregional Project Assistance
  • Recommendations
  • Appendixes