Results-Based Lending for Programs

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.


Sri Lanka: Education Sector Development Program

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 modernize its secondary school system, thus enhancing youth employment and meeting the country’s urgent need for a skilled workforce. Disbursements will be triggered by results on improved student learning, equitable and efficient school systems, strengthened school leadership and improved capacity for program planning and implementation.

Sri Lanka: Skills Sector Enhancement Program

This Results-Based Lending program was approved on 28 March 2014 for $100 million to reorient the technical and vocation education and training (TVET) system to adapt to labor market shifts. The subsector-wide approach is consistent with the ADB’s role as lead development partner for TVET in Sri Lanka since 1982. Loan payments will be linked to improved quality of TVET provision, enhanced private sector participation in TVET planning and provision, increased enrolment of students in TVET, and strengthened subsector management.

India: Kerala’s Additional Skill Acquisition Program in Basic Education

Approved on 19 November 2014 as the first Results-Based Lending program targeting a subnational administration, the $100 million loan will improve the communication, information technology and other soft skills of higher secondary and undergraduate students in Kerala schools, thus reducing an unemployment rate that is 3 times higher than the national average. Disbursements will be activated by the introduction of and enhanced access to market-relevant TVET, strengthened engagement with the private sector and improved program management.

Philippines: Senior High School Support Program

The Results-Based Lending program was approved on 15 December 2014 ($300 million) to support a portion of the broader government plan to add two years of high school to the basic education system. Loan payments will depend on achieved improvement in the mathematics, science, TVET and livelihood curricula; hiring and training of teachers; delivery of schools and classrooms; implementation of a voucher system to offset tuition costs for 800,000 senior high school students; and strengthening of education management, fiduciary and safeguards systems.

India: Supporting National Urban Health Mission

This recently approved (28 May 2015) $300-million Results-Based Lending program seeks to support the Government’s National Urban Health Mission by facilitating access to quality health services, building on the ADB’s extensive experience in the urban sector in India. Loan pay-outs will be based on evidence of increased child deliveries within health institutions and improved coverage of childhood immunizations, as well as strengthened urban primary healthcare delivery systems, improved quality of urban health services, and enhanced capacity for planning and management.


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.


This page was generated from on 07 October 2015