Partnerships help ADB achieve better results for developing member countries. ADB administers for its projects financing partnership facilities, trust funds, and other funds. Partners can contribute to ADB-administered funds through cofinancing arrangements.
Trust funds and global funding initiatives continue to be an important vehicle for delivering effective development solutions. Development partners generally use trust funds as an efficient means for channeling grant resources through ADB for a range of activities, including technical assistance, stand-alone grant investment projects, or grant components of investment projects based on a single agreement as opposed to cofinancing for individual projects that requires agreements for each of the projects supported.
Over several years, ADB has adapted its trust funds to meet the needs of its development partners. Through continuous innovation, it has transformed this instrument from the relatively less flexible single-partner structures of the 1970s, 1980s, and 1990s, to bigger and more flexible thematic and multipartner trust funds in the 2000s. The introduction of financing partnership facilities has taken these reforms a step further to better respond to changing needs. Financing partnership facilities focus on key sectors and themes of Strategy 2020 and take a more holistic approach to supporting them by incorporating trust funds as well as other forms of assistance under a broader sector or thematic umbrella. This represents a move from “adding cash” to “adding value” in genuine partnership and to pooling assistance for targeting cumulative results.
Together, these reforms have enabled ADB to offer trust fund solutions in line with the Paris Declaration on Aid Effectiveness, which calls for the international community to harmonize approaches and to untie assistance and pool resources for a more coordinated delivery of development assistance. See list of administered funds.