fbpx Regional: Asian Infrastructure Fund | Asian Development Bank

Raising Development Impact through Evaluation

Regional: Asian Infrastructure Fund

Evaluation Document | 1 January 2012

Validates the extended annual review report's assessment of the project, which aimed to mobilize long-term capital to help bridge the risk capital funding needs of infrastructure projects. IED assessment rating: successful.

In 1994, ADB's Board of Directors approved a $20 million private equity investment - the equivalent of a 2.57% stake - into the Asian Infrastructure Fund, which had a targeted size of $750 million. The fund aimed to mobilize long-term capital to help bridge the risk capital funding needs of infrastructure projects in ADB developing member countries. It was structured as a 10-year, closed-end fund with a provision for 4-year extension to facilitate an orderly exit. The Fund invested in 14 portfolio companies involved in infrastructure projects.

This study by the Independent Evaluation Department reviews the issues, lessons, and recommendations in ADB's extended annual review report on the fund. It agrees that the fund was overexposed in the telecommunications sector, where unprofitable investments were made, but disagrees on some other issues, including the fund's spread. But overall, the Independent Evaluation Department agrees with the project's overall assessment rating as successful.

Contents 

  • Project Description
  • Issues, Lessons and Recommendations
  • Overall Ratings