modalities

Multi-Partner Trust Funds

ADB is a trustee of 11 active multi-partner trust funds on common priority development agendas.

In 2020, multi-partner trust funds administered by ADB supported 22 projects with a total of $136.4 million. Four of these projects are related to the COVID-19 response, which are designed to improve energy efficiency, and mitigate the risks of virus transmission in public buildings in the region, build the capacities of stakeholders to pursue gender equality, help developing members respond to COVID-19 to mitigate long-term damage to economies and adverse effects on population health, and use of digital twin technology to gather and assess valuable information in Nauru. These projects support several operational priorities, including 10 projects with elements of climate change, 12 of poverty, 7 of governance, and 11 of gender.

Afghanistan Infrastructure Trust Fund (2010)

Total Contributions Committed

$748.2 million

Cofinancing Commitments

$806 million for 19 projects

Contributors
  • ANA Trust Fund
  • Germany
  • Japan
  • United Kingdom
  • United States

In 2020, the Afghanistan Infrastructure Trust Fund (AITF) funded two projects: one is to extend the national grid into Shindand District of Herat Province and Farah District of Farah Province, and the other is to contribute to strengthening the government’s capacity to improve sustainable infrastructure development in agriculture, natural resources, and rural development in Afghanistan.

The AITF provides technical assistance and grants for infrastructure development in Afghanistan. The trust fund’s investments are closely aligned with Afghanistan’s development priorities, including the National Peace and Development Framework, the self-reliance agenda, 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

$33.8 million

Cofinancing Commitments

$3.9 million for 2 projects

Contributor
  • Germany

In 2020, the Asia-Pacific Climate Finance Fund (ACliFF) supported the enhancement of capacities and provision of policy advice to prepare a series of ensuing programs and projects to strengthen public management, the finance sector, and trade policies in Southeast Asia.

ACliFF helps advance the climate change adaptation agenda by supporting the development and implementation of financial risk management products to address climate risks and the risks associated with investments in climate mitigation and adaptation. This support is in the form of grants, technical assistance, and other financing instruments. These financial risk management products 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 addressing extreme weather events. Projects from all developing members, including from some third-party organizations, are eligible for ACliFF support.

Asia Pacific Project Preparation Facility (2014)

Total Contributions Committed

$63.3 million

Cofinancing Commitments

$63 million for 1 project

Contributors
  • Australia
  • Canada
  • Japan

The Asia Pacific Project Preparation Facility (AP3F) supports infrastructure development in Asia and the Pacific. Specifically, it assists the governments of developing members and their public sector agencies to prepare infrastructure projects with private sector participation, including privatization through public–private partnership modalities, and brings them to the global market. The AP3F is supported by the governments of Australia, Canada, and Japan. All developing members are eligible for funding.

Cooperation Fund for Regional Trade & Financial Security Initiative (2004)

Total Contributions Committed

$2.8 million

Cofinancing Commitments

$3.5 million for 9 projects

Investment income, gains on foreign exchange transactions, and savings on closed projects are used for project commitments. Hence, project commitments, which exclude cancellations, may exceed contributions.
Contributors
  • Australia
  • Japan
  • United States

The Cooperation Fund for Regional Trade and Financial Security Initiative supports ADB technical assistance to developing members 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 and 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 and AML strategies, and high-level regional workshops and regional cooperation to implement measures in these areas. All developing members are eligible for funding with emphasis on most at-risk economies.

Domestic Resource Mobilization Trust Fund (2017)

Total Contributions Committed

$7.2 million

Contributor
  • Japan

The fund supports technical assistance activities related to operations enhancing the domestic resource mobilization in developing members. It is expected to help provide an improved environment for meeting the Sustainable Development Goals in Asia and the Pacific. All developing members are eligible for funding.

Financial Sector Development Partnership Fund (2006)

Total Contributions Committed

$6.4 million

Cofinancing Commitments

$7.1 million for 18 projects

Investment income, gains on foreign exchange transactions, and savings on closed projects are used for project commitments. Hence, project commitments, which exclude cancellations, may exceed contributions.
Contributor
  • Luxembourg

The Financial Sector Development Partnership Fund’s (FSDPF) primary focus is finance sector development in national, subregional, and regional 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 members are eligible for assistance. Activities in the Lao People’s Democratic Republic, Mongolia, Viet Nam, and 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.
  • Finland
  • Republic of Korea
  • ParticipatieMaatschappij Vlaanderen NV, Belgium
  • Belgium
  • POSCO
  • Sweden

The Future Carbon Fund supports efforts to reduce greenhouse gas emissions in Asia and the Pacific through the pre-purchase of certified emission reductions (CERs) generated by Clean Development Mechanism (CDM) projects from 2013 to 2020. The fund’s continued operations and its ability to purchase CERs at a fixed price and provide upfront financing contribute to the successful implementation of climate change mitigation projects in the region. The fund supports a diversified portfolio of 36 CDM projects, allocating $59.5 million for the purchase of 10.5 million CERs. The fund’s work is well-distributed across the region with 10 projects located in India; 8 in Thailand; 6 in the People’s Republic of China; 2 each in Bangladesh, Nepal, and Sri Lanka; and 1 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 the renewable energy, energy efficiency, waste management, and transport sectors.

Gender and Development Cooperation Fund (2003)

Total Contributions Committed

$11.7 million

Cofinancing Commitments

$13.3 million for 15 projects

Investment income, gains on foreign exchange transactions, and savings on closed projects are used for project commitments. Hence, project commitments, which exclude cancellations, may exceed contributions.
Contributors
  • Australia
  • Canada
  • Denmark
  • Ireland
  • Norway

In 2020, the Gender and Development Cooperation Fund (GDCF) supported the capacity building of stakeholders in developing members to pursue transformative approaches to gender equality, which also has elements of COVID-19 response.

The GDCF aims to enhance gender equality and women’s empowerment in the Asia and Pacific region by supporting technical assistance and activities like country gender assessments and strategies to guide the formulation of country partnership strategies and project-specific gender action plans for ADB projects. The implementation of ADB’s Gender Equality and Women’s Empowerment Operational Plan, 2013–2020 is the GDCF’s more notable contribution, which 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 members are eligible for funding.

Governance Cooperation Fund (2001)

Total Contributions Committed

$7.2 million

Cofinancing Commitments

$8.4 million for 24 projects

Investment income, gains on foreign exchange transactions, and savings on closed projects are used for project commitments. Hence, project commitments, which exclude cancellations, may exceed contributions.
Contributors
  • Canada
  • Denmark
  • Ireland
  • Norway

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 members are eligible for funding.

High-Level Technology Fund (2017)

Total Contributions Committed

$70.3 million

Cofinancing Commitments

$37.3 million for 37 projects

Contributor
  • Japan

The High-Level Technology Fund (HLTF) is one of the top financing partners in 2020. It supported 18 projects, which included three COVID–19–related ones that seek to help developing members respond to COVID-19 to mitigate long-term damage to economies and adverse effects on population health; use digital twin technology to gather and assess valuable information on projects' medium- and long-term impacts in Nauru; and improve energy efficiency and mitigate the risks of virus transmission in public buildings by deploying efficient, clean, and smart centralized air-conditioning systems in the region.

The HLTF aims 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 the scaling up of technology deployment in developing members. Projects from all ADB developing members are eligible for financing from this fund.

Project Readiness Improvement Trust Fund (2016)

Total Contributions Committed

$7.8 million

Cofinancing Commitments

$7.6 million for 10 projects

Contributor
  • Nordic Development Fund

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 ADB’s climate change financing to help Southeast Asian members access global funds. These developing members are Brunei Darussalam, Cambodia, Indonesia, the Lao People’s Democratic Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Viet Nam.

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