Asian Development Fund (ADF)
ADF provides grants to ADB's lower-income developing member countries. Established in 1974, the ADF initially provided loans on concessional terms. Activities supported by the ADF promote poverty reduction and improvements in the quality of life in the poorer countries of the Asia and Pacific region.
Negotiations for the ninth replenishment of the Asian Development Fund (ADF X) proceeded in parallel with the review of ADB's Long-Term Strategic Framework (Strategy 2020). This overall framework also applies to ADF operations and therefore the strategic agendas of inclusive growth, environmentally sustainable growth, and regional integration also became the strategic priorities of ADF X. Similarly, Strategy 2020's core and other operational areas have defined ADF X's operational priorities. Meanwhile, ADF X also considered circumstances unique to ADF countries, enabling them to graduate as soon as possible.
ADF X discussions were concluded in Madrid in May 2008. Thirty donor members of ADB agreed on a total replenishment size of Special Drawing Rights (SDR) 7.1 billion ($11.3 billion), which consist of SDR6.9 billion for ADF X and SDR0.2 billion (equivalent to 3% of the total replenishment) for the fourth replenishment of the Technical Assistance Special Fund. Donors pledged new burden-shared contributions of SDR2.6 billion ($4.2 billion), and some additional contributions. As a result, the ADF X replenishment is significantly higher than the $7 billion agreed at the conclusion of ADF IX, which covered 2005-2008. ADF X covers 2009-2012.
Donor members, selected ADF borrower representatives, Management including President Haruhiko Kuroda, and ADB senior staff met in Sydney, Australia on 13-14 September 2007 to start discussions on the ninth replenishment of the Asian Development Fund (ADF X). Members of the ADB Board of Directors also attended the meeting.
The meeting discussed some of the critical issues for consideration during ADF X, including aid effectiveness and results, the role and priorities of ADF X, long-term financing issues, and proposed refinements of the performance-based allocation system. A panel discussion was also held with selected representatives of Pacific developing member countries.
The meeting was chaired by the former Dean of the ADB Institute, Dr. Peter McCawley.
The second ADF X Donors' Meeting was held in Vientiane, the Lao People's Democratic Republic on 26-27 November 2007. The meeting was the first to be held in an ADF recipient country. It was attended by representatives from donors, selected ADF recipients, ADB Management including President Haruhiko Kuroda, and ADB senior staff. H.E. Bouasone Bouphavanh, Prime Minister of the Lao PDR, delivered welcome remarks and H.E. Somdy Douangdy, Finance Minister of Lao PDR, made a presentation on the role of ADF in Lao PDR during the opening session. Members of the ADB Board of Directors also attended the meeting as observers. Peter McCawley chaired the meeting.
Discussions focused on the demand for ADF X resources, the preliminary findings of an Operations Evaluation Department evaluation of ADF VIII and IX, ADF support for regional cooperation, implementation of ADB's approach to weakly performing countries, progress on the ADB's Reform Agenda, and financing of ADF X. A field visit was organized on 28 November to see ADF projects in the Lao PDR.
For the first time since 1996, donor representatives convened in Manila, Philippines, for the third ADF X Donors' Meeting, held at ADB Headquarters. They were joined by selected ADF recipient representatives, as well as by observers from other multilateral development banks and from the ADB Board of Directors. President Haruhiko Kuroda, together with senior Management and staff, led the ADB delegation to the meeting which was again chaired by Peter McCawley.
Discussions centered on development effectiveness of ADF and ADB's results framework, allocation of ADF X resources, ADF X replenishment financing framework, and draft Donors' Report. A field visit was organized on 12 March to see some development projects targeting poverty reduction in the Metro Manila area.
Donor representatives gathered in Madrid, Spain for the final ADF X Donors' Meeting. Selected ADF recipient representatives, observers from other multilateral development banks and the ADB Board of Directors also attended the meeting. President Haruhiko Kuroda, together with senior Management and staff, led the ADB delegation to the meeting which was chaired by Peter McCawley.
The meeting discussed remaining key issues for consideration during ADF X, including revised ADF X results framework, final ADF X replenishment financing framework, revised Donors' Report, and draft Resolution of the Board of Governors.
The ADB Board of Directors on July 2008 adopted the Asian Development Fund X Donors' Report: Towards an Asia and Pacific Region Free of Poverty, which contains the main understanding and recommendations reached at the four ADF X negotiation meetings.
The ADF X Midterm Review meeting was held in Manila, Philippines on 18-19 November 2010. The midterm review is a central accountability mechanism for ADF, providing a forum for ADB to report to donors on its progress in implementing ADF operations. The meeting was chaired by Mme. Huguette Labelle with participation from donors, selected ADF borrowers, and ADB Management and staff.
Strategy, Policy and Partnerships Department (SPD)
Asian Development Bank
6 ADB Avenue, Mandaluyong City 1550
Metro Manila, Philippines