Trust funds are single– or multi-partner channels of cofinancing resources to fund various projects, programs, technical assistance, and other activities. ADB administers contributions of financing partners as a trustee or administrator of about 45 trust funds, 14 of which fall under umbrella Financing Partnership Facilities. In 2019, trust funds contributed around $181 million in ADB’s sovereign operations.
Trust funds provide platforms for partners to channel restricted grants for a specific group of countries, focus areas, or program. These single-partner and multi-partner trust funds are fully administered by ADB as trustee. Some of these trust funds also fall under umbrella financing partnership facilities, which serve as platforms for long-term and multipartner cooperation that links various forms of assistance in a coordinated matter.
ADB continues to develop, facilitate, and implement partnerships through trust funds with specific thematic focus. As of 2019, ADB managed a total of 45 trust funds. These trust funds allocated $181 million of their resources to sovereign projects in 2019, funding 97 of the year’s 148 cofinanced activities.
The largest commitments in support of the ADB’s sovereign operations were from the Asia Project Preparation Facility, a multi-donor trust fund funded by Australia, Canada and Japan, and its $45 million grant to support the preparation of infrastructure projects in the region. The Japan Fund for Poverty Reduction supported the greatest number of projects, 21, with grant cofinancing totaling $37.9 million. This support spans across agriculture, e.g., the enhancement of technology-based agriculture and marketing in Pakistan; health, e.g., reducing maternal and child mortality in Uzbekistan and supporting adolescent nutrition in Indonesia; and disaster resilience, e.g., preparations to alleviate effects of floods in Fiji.
The Ireland Trust Fund for Building Climate Change and Disaster Resilience in Small Island Developing States (SIDS), established in 2019, has an initial €12 million contribution from Ireland to help SIDS manage disasters caused by natural hazards and the impacts of climate change.
ADB is a trustee of 18 active single-partner trust funds, with contributions from Australia, Canada, People’s Republic of China, Denmark, France, Ireland, Japan, Republic of Korea, and Spain.
Multi-partner trust funds promote collaboration among ADB’s financing partners and attract new partners from the private sector, including philanthropic organizations. ADB is a trustee of 12 multi-partner trust funds.
Financing partnership facilities house trust funds that finance projects to support ADB’s corporate initiatives on clean energy, health, regional cooperation, urban development, and water.
Of the 45 ADB-managed trust funds, 14 are part of ADB’s Financing Partnership Facilities (FPFs), which offer partners an opportunity for long-term investments in key development priorities aligned with ADB’s corporate initiatives. Currently, there are five FPFs focused on clean energy, health, regional cooperation and integration, urban development, and water.
FPFs are operational mechanisms for strategic, long-term, multi-partner cooperation. They have set targets and objectives, ensure a steady and coordinated flow of funds, and are intensively managed to ensure that these goals are achieved, from application processing to project development and results monitoring. In 2019, the ASEAN Australia Smart Cities was established under the Urban Financing Partnership Facility with an initial funding of $15.2 million. It aims to improve systems and governance among participating ASEAN cities through the adaptation and adoption of digital solutions.
In 2019, ADB’s trust funds received replenishments (green boxes) totaling $297.1 million and contributions for new trust funds (yellow boxes) amounting to $28.7 million. The breakdown is as follows:
Wind Power for More Renewable Power
Sri Lanka is keen on developing wind power as an alternative to more costly thermal power. An ADB technical assistance supported by the Clean Energy Fund, built the capacity of Sri Lanka’s largest electric company to handle wind power projects with private sector involvement.
- Clean Energy Fund under the Clean Energy Financing Partnership Facility
In Uncertain Times, Ample Preparation for Food Production
Bangladesh is preparing for a $100 million investment in climate and disaster resilient small-scale water resources management. The Water Financing Partnership Facility, through The Netherlands Trust Fund, is supporting the preparations.
- Netherlands Trust Fund under the Water Financing Partnership Facility
Support for Survivors of Domestic Violence
Mongolia is keen on eradicating domestic violence against women and children. The Japan Fund for Poverty Reduction contributed $3 million to an ADB project that aims to help survivors break free from this vicious cycle.
- Japan Fund for Poverty Reduction