Multi-Partner Trust Funds

Multi-partner trust funds introduced in the 2000s have promoted collaboration among ADB’s financing partners and attracted new and nontraditional partners from the private sector, including philanthropic organizations.

Opening up borders. Mongolia expands support to local products with international niche markets by upgrading its border crossing points. The Regional Road Development and Maintenance Project, with support from the High-Level Technology Fund, will enhance the road condition and safety of the major national highway sections connecting the capital city of Ulaanbaatar with the northern and western aimags, or provincial administrative units in Mongolia.

Of the $181 million allocated by trust funds to sovereign projects, $57 million (32%) came from multi-partner trust funds.

In 2019, 14 projects were approved with funding from multi-partner trusts funds. The High-Level Technology Fund provided a total of $12.1 million for 12 projects, the Asia Pacific Project Preparation Facility for $45 million for one project, and the Cooperation Fund in Support of Managing for Development Results funded one project with $10,000. All ADB-approved projects is net of savings for financially completed projects and direct charges.

All ADB-approved projects is net of savings for financially completed projects and direct charges.

Multi-partner Trust Funds with active projects in 2019

Afghanistan Infrastructure Trust Fund (2010)
Total Contributions Committed

$743.5 million  

ADB Approved Projects

$451 million for 17 projects

Contributors
  • ANA Trust Fund ($293 million)
  • Germany ($83.9 million)
  • Japan ($127.5 million)
  • United Kingdom ($82.4 million)
  • United States ($153.7 million)

In 2019, through the Afghanistan Infrastructure Trust Fund (AITF), the ANA Trust Fund provided $93 million in replenishment funds. AITF is a platform that facilitates financing for infrastructure development in Afghanistan. It provides technical assistance and grants for the construction of roads, railways, airports, energy infrastructure, and water management and irrigation facilities. AITF’s investments are closely aligned with Afghanistan’s development priorities, including the National Peace and Development Framework, the self-reliance agendas, the National Infrastructure Plan, and other national priority programs. Both ADB and Afghanistan are working together to attract more donors and partners to finance and cofinance projects for Afghanistan by contributing to the AITF.

Asia-Pacific Climate Finance Fund (2017)
Total Contributions Committed

$32 million  

Contributor
  • Germany

The Asia-Pacific Climate Finance Fund (ACliFF) supports the development and implementation of financial risk management products alongside ADB projects and non-ADB projects in order to address climate risks and the risks associated with investments in climate mitigation and adaptation. It provides grants, technical assistance, and other financing instruments to support utilization of financial risk management products that will help ADB’s developing members invest in new climate technologies, scale up private sector climate financing, promote investment into climate-sensitive sectors, as well as expand the penetration of climate risk insurance and other tools that address extreme weather events. Projects from all developing members (sovereign and non-sovereign), including from some third party organizations, are eligible for ACliFF support.

Asia Pacific Project Preparation Facility (2014)
Total Contributions Committed

$63.3 million  

ADB Approved Projects

$63.3 million for 19 projects and direct charges

Contributors
  • Australia ($7.1 million)
  • Canada ($16 million)
  • Japan ($40.2 million)

In 2019, the Asia Pacific Project Preparation Facility (AP3F) provided funding for a regional technical assistance on preparing capacity for infrastructure projects. AP3F supports infrastructure development in Asia and the Pacific. Specifically, it assists developing member country governments and their public sector agencies prepare infrastructure projects with private sector participation, including privatization through public–private partnership (PPP) modalities, and bring them to the global market. AP3F is supported by the governments of Australia, Canada and Japan. All developing member countries of the bank are eligible for funding.

Cooperation Fund for Regional Trade and Financial Security Initiative (2004)
Total Contributions Committed

$2.8 million  

ADB Approved Projects

$2.6 million for 9 projects

Investment income, gains on foreign exchange transactions and savings on closed projects are used for project commitments. Hence, project commitments may exceed contributions.

Contributors
  • Australia ($1 million)
  • Japan ($1 million)
  • United States ($800,000)

The Cooperation Fund for Regional Trade and Financial Security Initiative supports ADB technical assistance to developing member countries for strengthening anti– money laundering (AML) systems, combating the financing of terrorism (CFT), and enhancing port security (including airports, cargo ports, and container ports). Projects eligible for funding include those ensuring compliance to international AML/ CFT standards, modernizing customs and upgrading border security, and complementing the goals of the Secure Trade in the Asia-Pacific Economic Cooperation Region initiative. Activities supported by the Trust Fund have included capacity building and awareness raising for law enforcement agencies and regulatory agencies, preparation of AML national risk assessments as well as AML strategies, and high-level regional workshops and regional cooperation to implement measures in these areas. All developing member countries of the bank are eligible for funding with emphasis on most at-risk APEC economies.

Cooperation Fund in Support of Managing for Development Results (2004)
Total Contributions Committed

$2.9 million  

ADB Approved Projects

$3.1 million for 11 projects

Investment income, gains on foreign exchange transactions and savings on closed projects are used for project commitments. Hence, project commitments may exceed contributions.

Contributors
  • Canada ($700,000)
  • the Netherlands ($900,000)
  • Norway ($1.3 million)

In 2019, the Cooperation Fund in Support of Managing for Development Results (CFMfDR) provided supplementary funding for a technical assistance on implementing global partnership principles to promote development.

The fund promotes results-based management approaches within ADB and its developing member countries. It supports capacity development for results-based planning, budgeting, implementation, monitoring, and evaluation techniques. This includes the preparation of results-oriented national development plans and budgets, as well as high-quality sectoral road maps produced by ADB’s clients. It has also supported regional capacity building on results management standards and norms and has increased the results orientation of public sector management efforts and reform programs. All developing member countries of the bank are eligible for funding.

Domestic Resource Mobilization Trust Fund (2017)
Total Contributions Committed

$5.7 million

ADB Approved Projects

$2.3 million for 15 direct charges

Contributor
  • Japan

In 2019, the Domestic Resource Mobilization Trust Fund contributed $1.77 in replenishment funds. The fund supports technical assistance activities related to operations enhancing domestic resource mobilization in developing member countries. This helps translate the 2030 Agenda for sustainable development into specific plans, policies, and projects necessary to achieve the Sustainable Development Goals (SDGs). It is expected to help provide an improved environment for meeting the SDGs in Asia and the Pacific through increased mobilization of domestic resources. All developing member countries of the bank are eligible for funding.

Financial Sector Development Partnership Fund (2006)
Total Contributions Committed

$6.4 million

ADB Approved Projects

$5.9 million for 18 projects

Investment income, gains on foreign exchange transactions and savings on closed projects are used for project commitments. Hence, project commitments may exceed contributions.

Contributor
  • Luxembourg

The Financial Sector Development Partnership Fund’s primary focus is finance sector development in regional, subregional, and national financial systems. Eligible activities include fostering the integration of regional markets; improving policy, legal, regulatory, and supervisory frameworks; strengthening and modernizing local financial institutions; and improving access to financial services by the poor. The fund has supported the development of capital markets and instruments and other financial infrastructure, enhanced the capacity of financial institutions, increased access to finance, and strengthened financial regulation and stability. All developing member countries of ADB are eligible for assistance. Activities in the Lao PDR, Mongolia, and Viet Nam, as well as regional activities in the Greater Mekong Subregion are given priority. Another Government of Luxembourg-supported fund, the Financial Sector Development Partnership Special Fund was established in 2013 to support the FSDPF.

Future Carbon Fund (2009)
Total Contributions Committed

$115 million

Committed to 36 participation agreements

Contributors
  • Eneco Energy Trade B.V. ($15 million)
  • Finland ($20 million)
  • Republic of Korea ($20 million)
  • Participatie Maatschappij Vlaanderen NV, Belgium ($20 million)
  • Belgium ($20 million)
  • POSCO ($20 million)
  • Sweden ($20 million)

The Future Carbon Fund supports efforts to reduce greenhouse gas emission in Asia and the Pacific through the pre-purchase of certified emission reductions (CERs) generated by Clean Development Mechanism (CDM) projects in the 2013–2020 period. The Fund’s continued operations and its ability to purchase CERs on fixed price and provide upfront financing contribute to the successful implementation of climate change mitigation projects in the region. The fund is supporting a diversified portfolio of 36 CDM projects, allocating $59.5 million for the purchase of 10.45 million CERs. The fund’s work is well-distributed across Asia and the Pacific region with 10 projects located in India, eight in Thailand, six in the People’s Republic of China, two each in Bangladesh, Nepal, and Sri Lanka, and one each in Bhutan, Cambodia, Fiji, Indonesia, Papua New Guinea, and the Philippines. The portfolio is also diversified in terms of project type, with projects spanning over renewable energy, energy efficiency, waste management, and transport sectors.

Gender and Development Cooperation Fund (2003)
Total Contributions Committed

$11.9 million

ADB Approved Projects

$11.8 million for 14 projects

Investment income, gains on foreign exchange transactions and savings on closed projects are used for project commitments. Hence, project commitments may exceed contributions.

Contributors
  • Australia ($900,000)
  • Canada ($2.4million)
  • Denmark ($1.3 million)
  • Ireland ($1 million)
  • Norway ($6.3 million)

The Gender and Development Cooperation Fund supports technical assistance and activities that aim to enhance gender equality and women’s empowerment in the Asia and Pacific region. Specifically, it funds country gender assessments and strategies to guide the formulation of country partnership strategies and project-specific gender action plans for ADB gender-relevant projects. One of the notable outcomes of this fund is its critical role in the implementation of ADB’s Gender Equality and Women’s Empowerment Operational Plan, 2013-2020. This role included gender inclusive design and implementation of 150 ADB loan and grant projects (equivalent to more than $8 billion) across the infrastructure, finance, education, and other sectors. All developing member countries of the bank are eligible for funding.

Governance Cooperation Fund (2001)
Total Contributions Committed

$7.2 million

ADB Approved Projects

$7.2 million for 24 projects

Investment income, gains on foreign exchange transactions and savings on closed projects are used for project commitments. Hence, project commitments may exceed contributions.

Contributors
  • Canada ($1.6 million)
  • Denmark ($1.5 million)
  • Ireland ($1.2 million)
  • Norway ($3 million)

The Governance Cooperation Fund supports the preparation of risk assessments and risk mitigation plans in ADB’s priority sectors, including projects addressing risk mitigation measures at country, sector, or project levels. It also supports projects addressing knowledge dissemination and monitoring; and the provision of long-term national governance consultants to ADB resident missions. The Fund originally supports government-led governance reforms but was refocused in 2008 to support the implementation of ADB’s Second Governance and Anticorruption Action Plan, approved in 2006. All developing member countries of the bank are eligible for funding.

High-Level Technology Fund (2017)
Total Contributions Committed

$54.5 million

ADB Approved Projects

$24.5 million for 41 projects and direct charges

Contributor
  • Japan ($54.5 million)

As of 2019, the High-Level Technology Fund (HLTF) provided funding to four projects on water resources development, irrigation improvement, road development, and water supply and sanitation; as well as to eight technical assistances covering the areas of trade, energy, agriculture, social development, and knowledge exchange. In 2019, HLTF also provided $15.20 million in replenishment funds.

This fund provides grant financing to promote the integration of high-level technology (HLT) and innovative solutions into ADB-financed and administered sovereign and nonsovereign projects. The fund seeks to encourage widespread adoption of HLT and enable technological development and/or the scaling up of the technology deployment in developing member countries. Projects from all ADB developing member countries are eligible for financing from this fund.

Project Readiness Improvement Trust Fund (2016)
Total Contributions Committed

$7.8 million

ADB Approved Projects

$7.3 million for 11 projects and direct charges

Contributor
  • Nordic Development Fund ($7.8 million)

The Project Readiness Improvement Trust Fund supports both design and procurement readiness of climate change-responsive infrastructure projects. It seeks to strengthen the content of the Bank’s climate change financing to help developing member countries access global funds. Southeast Asian member-countries are eligible to receive support from the fund. These developing member countries are Brunei Darussalam, Cambodia, Indonesia, the Lao People’s Democratic Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Viet Nam.