Private Sector Partnerships
ADB seeks to enhance the reach and impact of its operations through strategic and sustained partnerships with private sector institutions, such as corporations, foundations, and philanthropic agencies, which have pursued development causes with impressive persistence and results.
Why private sector partnerships?
Asia is the world’s fastest growing region. There is great demand to unlock the region’s economic potential which public, private, and civil society sectors can mutually benefit from.
The private sector’s vision, knowledge, ingenuity, resources, and its results-oriented approach makes it an ideal partner for ADB to bring sustainable solutions to development challenges.
The Midterm Review of ADB’s long-term strategic framework, Strategy 2020, highlights the critical role of private sector partnerships in addressing development issues and in improving ADB’s efficiency and effectiveness of its operations in developing member countries (DMCs).
How can private institutions partner with ADB?
ADB is committed to forging meaningful and mutually beneficial partnerships to meet the growing needs of Asia and the Pacific. Prospective private sector partners will be guided through the following process:
1. Submit expression of interest
2. Evaluate preferences
Development partners may have certain requirements to meet a mandate or priority agenda. ADB helps partners find projects or initiatives that mutually benefit the partner, ADB, and the beneficiaries of aid. Partners may consider any or all of these parameters:
3. Decide how to contribute
Development aid can be processed in several forms. These options allow partners to leverage their capacity and expertise.
- Cash grant
- Concessional contribution
- Knowledge products
- Knowledge services
- Cash with knowledge products
Cash with knowledge services
4. ADB recommends a product
After a decision on the form and amount of contribution is made, ADB recommends a suitable product:
Investment projects create physical or social infrastructures and capital necessary to achieve long-term development goals. Grants or loans may be earmarked for specific projects on a case-by-case basis. Projects can be administered jointly or in parallel with ADB.
This type of assistance provides necessary expertise to promote development. It involves engaging experts to conduct studies or to share knowledge on capacity building, research and development, policy and advisory, or project preparation. Technical assistance can stand on its own or it can be ‘piggybacked’ to an investment project.
Development partners channel financing through trust funds which support specific sectors, themes, or countries. A single agreement can cover a number of projects, reducing the need to negotiate on a case-by-case basis. Partners can establish a new trust fund or contribute to existing funds administered by ADB.
5. Formalize the agreement and guidelines
The partnership is formalized by signing a cofinancing agreement. Implementation guidelines are formulated to further detail how funds should be used. ADB adheres to reporting requirements so that partners continue to be involved throughout the administration process.