Multilateral Development Banks' Harmonized Framework for Additionality in Private Sector Operations | Asian Development Bank

Multilateral Development Banks' Harmonized Framework for Additionality in Private Sector Operations

Institutional Document | October 2018

Multilateral development banks have agreed on a harmonized framework for assessing additionality in their respective private sector operations to mobilize and catalyze private finance and support the development objectives of the 2030 Agenda for Sustainable Development.

The framework provides guidance on the practical implementation of the principle of additionality; i.e. multilateral development banks’ (MDBs) private sector operations should make a contribution beyond what is available in the market and should not crowd out the private sector. ADB is an active member of the Additionality Task Force.

This report summarizes the efforts of MDBs to develop (i) more detail on the principle of additionality; (ii) common definitions; (iii) guidance on a common approach to the governance of additionality; and (iv) guidance on types of evidence that help demonstrate the presence of additionality.

Contents 

  • Executive Summary 
  • Introduction and Context 
  • The Additionality Principle 
  • Categories and Definitions of Additionality 
    • Financial Additionality 
    • Non-Financial Additionality 
  • Governance and Operationalization of Additionality in MDBs: A Common Approach
  • Types of Evidence to Demonstrate Additionality
    • 5.1 Evidence of Financial Additionality
    • 5.2 Evidence of Non-Financial Additionality 
  • Conclusion 
  • Annex: Demonstrating Additionality—Common Illustrative Examples 
    • Examples of Financial Additionality 
    • Examples of Non-Financial Additionality