The TA aims to conduct in depth study on a draft business model of the credit guarantee and investment mechanism (the Mechanism) and feasibility of the preferred organizational options. The TA will also prepare a draft business model and plan for the Mechanism. The TA will be composed of two parts. The first part, Phase 2 A will thoroughly assess the three options of (1) a new independent Multinational Development Institutions (MDI) structured on a standalone basis, (2) an MDI structured as a subsidiary or affiliated with ADB, and (3) expansion of the existing facilities of ADB as has been identified in the previous study, RETA 6127 (Phase 1).
|Project Name||ASEAN+3 Regional Guarantee and Investment Mechanism Phase 2|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Partnerships
Private sector development
|Sector / Subsector||
Finance - Money and capital markets
|Gender Equity and Mainstreaming||No gender elements|
|Description||The TA aims to conduct in depth study on a draft business model of the credit guarantee and investment mechanism (the Mechanism) and feasibility of the preferred organizational options. The TA will also prepare a draft business model and plan for the Mechanism. The TA will be composed of two parts. The first part, Phase 2 A will thoroughly assess the three options of (1) a new independent Multinational Development Institutions (MDI) structured on a standalone basis, (2) an MDI structured as a subsidiary or affiliated with ADB, and (3) expansion of the existing facilities of ADB as has been identified in the previous study, RETA 6127 (Phase 1). The first part of the TA will be composed of the following: (1) refining and tuning business volumes for each of business lines for these focus countries as PRC, Indonesia, Malaysia, Thailand and Philippines (2) re run the financial projection analysis (of three options as required) based on the refined and tuned demand projection (3) assessing the advantages and disadvantages of three options using such benchmarks as (i) self sustainability and triple A rating, (ii) organizational and management structure, (iii) good governance, (iv) maximizing the responsiveness and flexibility to the user demand, (v) impediments by legal and regulation restrictions, (vi) necessary fund mobilization, (vii) human resource mobilization, (vii) a project cost estimation, (ix) timeframe for the establishment and (4) narrowing down to one option out of three approaches. The Phase 2 A report will be prepared for the review and the discussion among member countries. If required by the co chairs and the member countries, it is suggested to conduct a consultation forum including the potential clients and market participants with the sufficient assistance and inputs by the co chairs and the member countries. Subject to the approval of the Working Group 2, the second part, Phase 2 B will create a business model and plan of the guaranty and investment mechanism. The TA will prepare a draft proposal containing sufficient information to support the investment assessment by member countries and Asian Development Bank.|
|Project Rationale and Linkage to Country/Regional Strategy|
Support the policy dialogue of ASEAN+3 Asian Bond Markets Initiative (ABMI) Working Group (WG) 2 on Credit Guarantee and Investment Mechanism
Increasing market attractiveness to potential bond issuers, ensuring smooth functioning of regional bond markets, and broadening and diversifying of the investor base
|Description of Outcome||
Promoting regional cooperation for developing robust local currency bond markets in the region
Bridging the credit quality gap for bond issuance and providing credit enhancement to structured financing schemes
Streamlining organizational and regulatory procedures to bond market access
Enhancing transparency, corporate governance, higher disclosure standards
|Progress Toward Outcome|
|Description of Project Outputs||
Assessment for identifying an organizational option for the CGIM
A draft business model and plan for the CGIM as a proposal for ASEAN+3 member countries
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||An international consulting firm will be selected and engaged composing of the following: 1. Financial market specialists (international, 3 person months in total) 2. Financial sector specialists (international, 6 person months in total) and 3. Project specialists (international, 4 person months in total). In addition, an individual consultant (national, 6 person months in total) will also be hired for technical support for this project.|
|Responsible ADB Officer||Siackhachanh, Avonechith|
|Responsible ADB Department||Office of Regional Economic Integration|
|Responsible ADB Division||Office of Regional Economic Integration|
Asian Development Bank
6 ADB Avenue, Mandaluyong City 1550, Philippines
|Concept Clearance||03 Oct 2005|
|Fact Finding||11 Mar 2006 to 25 Mar 2006|
|Approval||18 Dec 2006|
|Last Review Mission||-|
|Last PDS Update||19 Apr 2010|
|Approval||Signing Date||Effectivity Date||Closing|
|18 Dec 2006||-||18 Dec 2006||31 Jan 2008||31 Dec 2010||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|600,000.00||300,000.00||0.00||0.00||0.00||0.00||900,000.00||18 Dec 2006||871,502.43|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
|Title||Document Type||Document Date|
|ASEAN+3 Regional Guarantee and Investment Mechanism||TA Completion Reports||Aug 2011|
|ASEAN+3 Regional Guarantee and Investment Mechanism Phase 2 (Cofinanced by the Government of the People's Republic of China Poverty Reduction and Regional Cooperation Fund)||Technical Assistance Reports||Dec 2006|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
|Title||Document Type||Document Date|
|Technical Assistance Grants to Support Development of Cross-Border Bond Markets in the ASEAN+3 Countries||Technical Assistance Performance Evaluation Reports||Oct 2015|
None currently available.
The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.