ADB's Board of Directors approved the policy on piloting Results-Based Lending for Projects on 6 March 2013. The policy became effective on 6 June 2013, and is being piloted for six years.
The objectives of Results-Based Lending are to increase accountability and incentives to deliver and sustain results, improve the effectiveness and efficiency of government-owned sector programs, promote institutional development, and enhance development effectiveness. What distinguishes Results-Based Lending from other ADB modalities is that disbursements of loan proceeds are directly linked to achievements of program results.
ADB sought the comments and suggestions of stakeholders (i.e., government officials, development partners and ADB staff) and public in developing the policy.
A staff guidance document and templates were developed to assist ADB staff and developing member countries in designing and implementing programs supported by Results-Based Lending.
The first Results-Based Lending program ($200 million loans) was approved by the Board on 27 June 2013 to help the Government of Sri Lanka revamp its secondary school system to cut youth unemployment and meet the country’s urgent need for a skilled workforce.
To support the piloting of Results-Based Lending for Projects, ADB has started dissemination and providing policy implementation support to ADB staff and developing member countries immediately after the approval of the policy. The schedule of dissemination to more developing member countries will be posted as soon as available.