Overview

As a catalyst for private investments, ADB provides direct financial assistance to private sector projects. While ADB’s participation is usually limited, it leverages a large amount of funds from commercial sources to finance these projects.

Projects must also have clear development impacts and/or demonstration effects that go beyond the benefits captured in the financial rate of return.

Focus areas

The Private Sector Operations (PSO) strategic framework demands a sharper focus on development impact, and emphasizes

  • private sector participation in infrastructure and capital market development,
  • broadening of country and sector reach,
  • wider use of credit enhancement and other instruments, and
  • strategic alliances with other development agencies.

Who is eligible?

To be eligible for ADB nonsovereign financing, the proposed recipient must be:

  • an entity wholly owned or controlled by one or more private entities;
  • an entity, wholly owned or controlled by a sovereign, undertaking commercial activities (subsovereign and other public sector entities);
  • an entity, partially owned or controlled by one or more private entities and a sovereign, undertaking commercial activities; or
  • a local government or other subsovereign entity (including municipalities and other forms of local government) that can contract and obtain financing independently from the sovereign;

    Provided, in each case, the proposed recipient is:

  1. established and/or operating in a developing member country (DMC), and
  2. a legal entity that can sue and be sued.

Infographic: ADB and the Private Sector: An Effective Partnership