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 assistance, the proposed recipient of ADB's private sector financing

  • must be established or operating in a DMC;
  • majority owned by the private sector (an entity with more than 50% of its capital held privately);
  • or, in the case of an entity that is owned or controlled by the public sector (an entity with more than 50% of its capital held publicly); or
  • it must be a local government or other subsovereign entity or a state-owned enterprise that can borrow independently form the related sovereign and that can sue and be sued.

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