Piloting Results-Based Lending for Programs: Proposed Increase in Resource Allocation Ceiling
This policy paper recommends setting the ceiling at 10% of the total ordinary capital resources (OCR) and Asian Development Fund (ADF) resource allocation for the last 3 years (6 June 2016–5 June 2019) of the RBL pilot phase.
ADB introduced results-based lending (RBL) for programs as a 6-year pilot from 6 June 2013 to 5 June 2019. RBL aims to strengthen incentive and accountability for results by linking disbursements of financing with achievement of results. Supported by strong demand, ADB has approved 16 RBL programs in 10 countries since June 2013 with a total commitment amount of $4.2 billion as of 19 March 2018.
Building on the findings of midterm review (2016) and the assessment by the Independent Evaluation Department (2017), this policy paper discusses the experience of the RBL pilot implementation and issues considered in determining the new resource allocation ceiling for RBL. The policy paper approved by the Board in March 2013 capped RBL programs to 5% of the total OCR and ADF resource allocation for the first three years of the pilot from June 2013 to June 2016. This policy paper provides the justification to increase this cap to 10% for the remaining three years, which is until June 2019. The new resource allocation will enable ADB to respond to DMCs’ strong demand for RBL, and continue to learn and improve the use of this new instrument.
- Executive Summary
- Experience During Results-Based Lending Pilot Phase
- Considerations for New Ceiling