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 Nepal amounted to $1.04 billion for 41 investment projects, and $72.1 million for 92 technical assistance projects. Cumulative DVA commercial cofinancing for Nepal amounted to $54.62 million for three investment projects.
In 2013, Nepal received $31.4 million grant cofinancing from the Strategic Climate Fund, European Commission, Nordic Development Fund, and Organization of the Petroleum Exporting Countries (OPEC) Fund for International Development; and $300 million loan cofinancing from the Abu Dhabi Fund for Development, European Investment Bank, the Government of Japan, and the OPEC Fund for International Development.
Nepal: Projects Cofinanced, 1 January 2009-31 December 2013
|Cofinancing||No. of Projects||Amount
|Technical Assistance Grants||28||30.48|
a A project with more than one source of cofinancing is counted once.
Investment Projects Cofinanced for Nepal, 1 January 2009-31 December 2013
|Building Climate Resilience of Watersheds in Mountain Eco-Regions||-||28.17||G|
|Capacity Building for the Promotion of Legal Identity Among the Poor in Nepal||-||2.00||G|
|Decentralized Rural Infrastructure and Livelihood (Additional Financing)||25.00||27.06||O/G|
|Electricity Transmission Expansion and Supply Improvement||75.00||25.00||G|
|Energy Access and Efficiency Improvement||65.00||4.20||G|
|Establishing Women and Children Service Centers||-||0.75||G|
|Establishing Women and Children Service Centers (Supplementary)||-||0.20||G|
|Flour Fortification in Chakki Mills||-||1.80||G|
|Governance Support Program (Subprogram I) (Supplementary)||-||8.80||G|
|Kathmandu Sustainable Urban Transport||20.00||2.52||G|
|Kathmandu Valley Wastewater Management||80.00||16.30||O/G|
|Reducing Child Malnutrition through Social Protection||-||2.00||G|
|School Sector Program||65.00||264.50||G|
|School Sector Program (Supplementary)||-||3.47||G|
|Secondary Towns Integrated Urban Environment Improvement||60.00||17.00||O|
|South Asia Tourism Infrastructure Development - Nepal||25.50||15.00||O|
|Strengthening Public Management Program||-||4.00||G|
|Strengthening Public Management Program (Supplementary)||-||2.95||G|
|Support for Targeted and Sustainable Development Programs for Highly Marginalized Groups||-||2.70||G|
|Trade Finance Programc||33.94||35.79||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.