Asian Development Fund 12 | Asian Development Bank

Asian Development Fund 12

Donors agreed to the 11th replenishment of the Asian Development Fund (ADF 12) for the 4-year period from 2017 to 2020. The replenishment, amounting to a total of $3.8 billion, will provide $3.3 billion of new resources to ADF, the Asian Development Bank’s (ADB) grant window, and $0.5 billion to the Technical Assistance Special Fund. In addition to the $3.3 billion in new resources for the core activities of the ADF, some donors will together contribute up to $150 million to an ADF facility for regional health security.

ADB grant support to the poorest countries will increase by 70% over the period 2017-2020 as compared to the previous 4 years. ADF grants together with ADB’s concessional loans will deliver more than $16 billion in assistance to poor countries during the same period, an increase of more than 40%.

Donors’ support will allow ADB to boost grant operations in the poorest countries, especially fragile and conflict-affected countries. This will help the region achieve the new Sustainable Development Goals and the COP21 climate change commitments. Other priority areas targeted in ADF 12 include gender equity, food security, private sector development, governance, preparedness and response to climate change and disasters, and regional public goods such as cross-border health issues.

The ADF 12 replenishment is the first after the announcement of the combination of the ADF loan operations with ADB’s ordinary capital resources (OCR) balance sheet effective in 2017, when ADB’s concessional lending will be provided from its OCR, instead of from the ADF.

ADF 12 Replenishment Meetings

First Meeting, Manila, 28-30 October 2015

The first Asian Development Fund 12 Replenishment Meeting was held on 28-30 October 2015 in ADB headquarters. The meeting was chaired by Mike Callaghan, former international executive director of the Australian Treasury. The discussions focused on the role of the ADF, ADB’s continuing reforms, proposed revisions to the performance-based allocation system, demand for concessional and technical assistance, the ADF 12 financing framework, and planning for the next replenishment meeting.

Second Meeting, Kathmandu, 25-27 February 2016

The second ADF 12 replenishment meeting was concluded in Kathmandu, Nepal on 27 February 2016. Donors agreed to ADB's proposed financing scenario. They also agreed to use ADF grants for disaster risk reduction in all concessional assistance-only countries, and to promote regional health security on a pilot basis in all concessional assistance countries.

Third Meeting, Frankfurt, 1 May 2016

A pledging meeting was held on the sidelines of the 49th Annual Meeting in Frankfurt, Germany on 1 May 2016 to conclude the negotiations.

ADF 12 Donors' Report

The ADB Board of Directors adopted in June 2016 the ADF 12 Donors' Report: Scaling Up for Inclusive and Sustainable Development in Asia and the Pacific, which contains the main understanding and recommendations reached at the ADF 12 negotiation meetings.