What’s the difference between joint cofinancing and parallel cofinancing?

Joint cofinancing

In joint cofinancing, ADB and its financing partners finance a common list of goods, works, and services required for the project in agreed-upon proportions. ADB’s Procurement Policy governs the procurement of goods, works, and services.

Parallel cofinancing

In parallel cofinancing, the project is divided into specific, identifiable components or contract packages, each of which is separately financed by ADB and financing partners. Under these conditions, financing of the components assigned to the financing partners can be either on untied or tied terms. If it is untied, it can be administered by ADB and ADB’s policies and procedures apply. If it is tied, it cannot be administered by ADB and the financing partners implement and administer the assigned components in parallel with the ADB-financed ones by using their own procurement guidelines.

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