fbpx 48332-001: Enhancing Capacity to Mobilize Private Grant Cofinancing | Asian Development Bank

Regional: Enhancing Capacity to Mobilize Private Grant Cofinancing

Sovereign (Public) Project | 48332-001 Status: Closed

The proposed Technical Assistance (TA) supports the Asian Development Bank (ADB) in increasing cofinancing by expanding the scope and scale of private donors' participation in ADB projects by contributions through financing and technical assistance. The draft TA concept paper was circulated to relevant departments/offices for their comments on 22 March and their comments have been incorporated in this S-CDTA. This TA will facilitate in (i) identification of potential private donors, assessing the appetite of the host developing member countries (DMCs) for private grant funding, and identification of potential projects within ADB where there is likelihood of private donor participation, and (ii) development of a tool kit including ADB process maps and guidelines for collaboration with private donors, best practice cases, and legal guidelines as well as a preliminary database of potential donors.

Project Details

Project Officer
Tatsuya Kanai Office of Cofinancing Operations Request for information
Country
  • Regional
Modality
  • Technical Assistance
Sector
  • Multisector
 
Project Name Enhancing Capacity to Mobilize Private Grant Cofinancing
Project Number 48332-001
Country Regional
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8703-REG: Enhancing Capacity to Mobilize Private Grant Cofinancing
Republic of Korea e-Asia and Knowledge Partnership Fund US$ 225,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Finance / Finance sector development

Gender Equity and Mainstreaming No gender elements
Description The proposed Technical Assistance (TA) supports the Asian Development Bank (ADB) in increasing cofinancing by expanding the scope and scale of private donors' participation in ADB projects by contributions through financing and technical assistance. The draft TA concept paper was circulated to relevant departments/offices for their comments on 22 March and their comments have been incorporated in this S-CDTA. This TA will facilitate in (i) identification of potential private donors, assessing the appetite of the host developing member countries (DMCs) for private grant funding, and identification of potential projects within ADB where there is likelihood of private donor participation, and (ii) development of a tool kit including ADB process maps and guidelines for collaboration with private donors, best practice cases, and legal guidelines as well as a preliminary database of potential donors.
Project Rationale and Linkage to Country/Regional Strategy

Poverty alleviation has been at the forefront of development initiatives undertaken and supported by the multilateral and bilateral development agencies. ADB is committed to alleviating poverty in its DMCs and, to this end, ADB is supporting DMCs through a variety of policy measures and technical assistances. As part of an evolving partnership agenda and with a view towards deepening its engagement with different stakeholders, ADB is expanding its partnership with private donors. With several major donor countries facing heightened economic constraints, there is a need to augment development assistance resources with private grant funding. New institutional arrangements, partnerships and modalities for collaboration between multilateral financial institutions, bilateral development agencies, and the private sector are being crafted to help meet the development challenges faced by the DMCs.

ADB is exploring new private grant partners to further augment its financial support and broaden the range of solutions it offers to DMCs in terms of practical knowledge, and innovative approaches. The potential private donors will include (i) private for-profit entities such as corporations, (ii) foundation of private entities and other private grant-making or philanthropic entities, (iii) industry associations including, but not limited to, chambers of commerce and related types of entities, and (iv) private individuals and philanthropists. In addition to help meet the financing gaps, the new private grant partnerships will expand the knowledge base and technologies that can be used to achieve ADB's development objectives of reducing poverty, fostering inclusive growth and creating sustainable socio-economic development. ADB's Midterm Review of Strategy 2020 mandates the expansion of its operations in education sector from 3% to 6-10% and in health sector from 2% to 3-5% along with a renewed emphasis on social protection. The private donors have often shown interest and commitment to support these areas. Currently, ADB is successfully collaborating with Bill & Melinda Gates Foundation, Rockefeller Foundation, Phu Bia Mining Limited, and Credit Suisse AG. Other multilateral development institutions such as the World Bank, Inter-American Development Bank, and bilateral agencies such as United States Agency for International Development, have several years of experience in collaborating with private grant donors to help DMCs address poverty reduction, foster inclusive growth, and create sustainable socio-economic development. Currently, ADB lags behind them.

While collaboration with profit and non-profit organizations has long been recognized as important from a sustainable social development perspective, a wide range of issues need to be addressed to mainstream this partnership approach within ADB. Collaboration design, financing and delivery of development solutions require concerted efforts and new mechanism for identifying, developing, and establishing partnerships with various private donors. In general, the motivation of private donors to contribute may be from philanthropy, corporate citizenship, corporate sustainability or business responsibility, among other reasons. Private donors value ADB's local knowledge, development expertise, networks, and credibility available through these partnerships. Private donors also appreciate ADB's dedicated partnership-building staff who has the requisite skills and commitment to drive partnerships in development projects. Some of the partnership opportunities may come with potential risks such as:

(i) Potential conflict of interest from private donor participation in ADB's projects and investments: Avoiding this risk requires upfront communication, formal disclosures, and development of adequate safeguards.

(ii) Reputational risk: To mitigate this, ADB must ensure that prospective private donors have credible business histories and reputation. Safeguards will be developed for these collaboration procedures in consultation with the Office of Anticorruption and Integrity (OAI).

(iii) Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT): This requires measures to ensure that prospective private partners are compliant with ADB's AML/CFT requirements.

The above opportunities and risks require putting in place robust practices and procedures to identify and engage potential private donors. ADB has ample experience in screening private sector entities. This TA will help in developing best practice models on how to strengthen collaboration with private donors for grant operations in the DMCs.

Impact Enhanced resource mobilization from and knowledge sharing with private donors to better assist DMCs
Project Outcome
Description of Outcome Enhanced ADB's capacity for resource mobilization from private donors to support ADB's development activities
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Knowledge sharing with potential private donors and DMCs

2. Private sector grant mobilization facilitated

3. A tool kit on required knowledge to support the use of private grants in DMC projects

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Regional
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Consultants will be engaged by ADB in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). Goods and services will be procured in accordance with ADB's Procurement Guidelines (2013, as amended from time to time). Disbursement under the TA will be made in accordance with ADB's Technical Assistance Disbursement Handbook (2010, as amended from time to time).
Procurement

The TA will be implemented over 24 months from 1 October 2014, and is expected to be completed by 30 September 2016. ADB will be the executing agency, and OCO will lead the TA implementation.

The TA will provide 8 person-months of international consultants and 4 person-months of national consultant inputs. Consultants with a blend of skills and experience in relevant areas will be engaged. The terms of reference (TORs) for consultants are described in Appendix 3. The TA will also finance resource persons to facilitate necessary workshops and trainings.

Responsible ADB Officer Tatsuya Kanai
Responsible ADB Department Office of Cofinancing Operations
Responsible ADB Division Office of Cofinancing Operations
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 05 Aug 2014
Last Review Mission -
Last PDS Update 05 Nov 2014

TA 8703-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
05 Aug 2014 - 05 Aug 2014 30 Sep 2016 31 Dec 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 225,000.00 0.00 0.00 0.00 0.00 225,000.00 05 Aug 2014 205,070.72

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 Access to Information Policy (AIP) 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.

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

None currently available.

Related Publications

None currently available.


The Access to Information Policy (AIP) 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.

Tenders

No tenders for this project were found.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
CONSULTING SERVICES FOR GRANT IMPLEMENTION: NIPPON KOEI CO. LTD. IN ASSOCIATION WITH LAO CONSULTING Grant 0534 08 Aug 2017 NIPPON KOEI CO. LTD. 4 KOJIMACHI 5-CHROME CHIYODA-KU TOKYO 102-8539 JAPAN Ministry of Agriculture & Forestry-Irrigation Dep 3,999,111.00
INTERNATIONAL PROCUREMENT SPECIALIST Grant 0429 01 Aug 2017 MS. YUKA NAKAGAWA C/O NIPPON KOEI CO. LTD. JAPAN Ministry of Finance and Treasury 105,421.00

Procurement Plan

None currently available.