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.

Related documents

• ADB Annual Report
• ADB Financial Profile
• ADB Private Sector Operations: Innovation, Impact, Integrity
• Development Effectiveness Report 2011: Private Sector Operations
• Summary of ADB's Nonsovereign Operations
• Trade Finance Program