Multitranche Financing Facility Annual Report 2015 · 2016. 4. 20. · Data used for this report was prepared in January 2016 and has not been validated in time for compilation in

April 2016

Multitranche Financing Facility Annual Report 2015 This document is being disclosed to the public in accordance with ADB’s Public Communications Policy 2011.

ABBREVIATIONS

NOTES

(i) In this report, "$" refers to US dollars.

(ii) Figures on contract awards and disbursements are not validated by the

Operations Services and Financial Management Department and the Controller’s Department due to reporting deadlines in mid-February 2015. These figures should be used as indicative.

Director General I. Bhushan, Strategy and Policy Department (SPD) Director V. Reppelin-Hill, Strategy, Policy and Interagency Relations Division, SPD Team leader K. Nakamitsu, Senior Planning and Policy Specialist, SPD Team members N. Lagsit, Senior Strategy and Policy Assistant, SPD C.O. Mercado, Senior Strategy and Policy Officer, SPD

In preparing any 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.

ADB – Asian Development Bank CWRD – Central and West Asia Department MFF – multitranche financing facility PCR SARD

– –

project completion report South Asia Department

CONTENTS

Page

I. INTRODUCTION ............................................................................................................. 1

II. MULTITRANCHE FINANCING FACILITY PORTFOLIO .................................................. 1 A. Facility Approvals ................................................................................................ 1 B. Tranche Approvals .............................................................................................. 2 C. Major Trends in Facility and Tranche Approvals ................................................. 3

III. PERFORMANCE ASSESSMENT ................................................................................... 8 A. Project Completion .............................................................................................10

IV. RECENT DEVELOPMENTS ......................................................................................... 10 A. Safeguards ........................................................................................................10 B. Changes in Multitranche Financing Facility and Implementation Arrangements .11 C. Capacity Development .......................................................................................11

V. COFINANCING ............................................................................................................. 12

VI. CONCLUSIONS ............................................................................................................ 13

APPENDIXES 1. Approved Multitranche Financing Facilities and Tranches as a Percentage of

ADB Sovereign Loans and Grants, 2005–2015 ($ million)

14

2. Approved Multitranche Financing Facilities and Tranches as a Percentage of ADB Sovereign Loans and Grants, 2005–2015 (in numbers)

15

3. Number and Amount of Multitranche Financing Facility Tranche Approvals, by Tranche, 2005–2015 ($ million)

16

4. Multitranche Financing Facility Approvals and Pipeline Projections, 2005–2018 ($ million)

17

5. Approved Multitranche Financing Facility Tranches and Pipeline Projections, 2006–2018 ($ million)

18

6. Multitranche Financing Facility Approvals by Regional Department, 2005–2015 ($ million)

19

7. Multitranche Financing Facility Approvals by Developing Member Country, 2005–2015 ($ million)

20

8. Multitranche Financing Facility Approvals by Sector, 2005–2015 ($ million) 21 9. Multitranche Financing Facility Tranche Approvals by Sector, 2006–2015

($ million) 22

10. List of Linked Documents 23 11. Cumulative Contract Awards and Disbursements by Developing Member

Country, 2006–2015 ($ million)

24

12. Contract Awards and Disbursements of Multitranche Financing Facility Tranches, 2006–2015 ($ million)

25

I. INTRODUCTION

1. This report provides an update of the portfolio, trends, and implementation status of Multitranche Financing Facilities (MFFs) in 2015. It consolidates information prepared by regional departments, the Controller’s Department, the Office of Cofinancing Operations, and the Operations Services and Financial Management Department of the Asian Development Bank (ADB). The Office of Information Systems and Technology supported data generation. This report provides updated information on the MFFs and its tranches that are financed by Ordinary Capital Resources (OCR) and Asian Development Fund (ADF) only, excluding cofinancing.1 2. MFF approvals dropped in 2015 while tranche approvals remained high. New MFF tranche approvals accounted for 24% of the approved ADB financing in 2015. Section II highlights the major trends in MFF facility and tranche approvals, while Section III shares key indicators and updated information for each MFF and its tranches. Sections IV and V present recent developments in MFF business processes and cofinancing.

II. MULTITRANCHE FINANCING FACILITY PORTFOLIO

A. Facility Approvals 3. In 2015, ADB approved three new MFFs amounting to about $2.2 billion. 2 MFF approvals in 2015 were lower than 2014 in value (by $1.1 billion) and number (three facilities compared to nine in 2014) (Figures 1, Appendixes 1 and 2).3

1 Data used for this report was prepared in January 2016 and has not been validated in time for compilation in March

2016. As such, some figures may vary from the 2015 Annual Portfolio Performance Report (APPR) to be issued by Operations Services and Financial Management Department. The APPR will analyze major trends and performance with validated figures. In addition, the APPR includes multitranche financing facilities and tranches that are financed by OCR, ADF, and cofinancing. Finally, the APPR uses validated data was not available in time for compiling this report between February and March. Other ADB reports will share similar information with official figures validated by relevant ADB departments.

2 The number of new MFFs excludes an additional financing loan for MFF facility, funded by cofinanciers. 3 Possible causes behind the decline are (i) the introduction of new financing modalities; (ii) new business process

requirements recently added to MFF made the instrument less appealing; and (iii) as capacity of developing member countries improve, traditional investment lending modality may become less relevant to certain countries relative to other financing modalities. In addition to the three new MFFs, ADB approved one MFF with additional financing funded by a co-financing partner.

2

B. Tranche Approvals 4. In 2015, ADB approved 21 new MFF tranches (3 first and 18 subsequent tranches) (Figure 2).4 The total value of tranche approvals was $3.24 billion, a slight increase from the 2014 figure ($3.22 billion) (Appendix 1 and 2). Tranche approvals have been slowly decreasing since 2011, primarily because of the slow but steady decline of MFF approvals since 2011.

4 The number of new MFF tranches excludes seven cofinanced loans and grants and an additional financing loan.

Figure 1: Multitranche Financing Facility Approvals, 2005–2015

Source: Asian Development Bank eOperations and mainframe system as of January 2016, before validation by Controller’s Department and Operations Services and Financing Management Department.

1,520

3,610 4,024 5,658 6,190

4,436 6,204

2,735 2,060 3,305

2,193

02468101214

01,0002,0003,0004,0005,0006,0007,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Facility # of MFF Approval

# Approved

Figure 2: Number of Approved Multitranche Financing Facility Tranches by First and Subsequent Tranches, 2005–2015

Source: Asian Development Bank eOperations and mainframe system as of January 2016, before validation by Controller’s Department and Operations Services and Financial Management Department.

0

6

11 12 11

13

13 7 5

10

3 0 0

4 6

12 14

21

16

22 16

18

0

5

10

15

20

25

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Num

ber a

ppro

ved

First Tranche Subsequent Tranches

3

C. Major Trends in Facility and Tranche Approvals

1. Trends in Approval Values 5. The average value of MFF approvals increased in 2015 ($731 million in comparison to $367 million in 2014) because of three MFFs that have relative high value. 5 The average tranche value ($125 million) remains more or less stable across the years since 2006 (Figure 3).

6. Proportion between first and subsequent tranches. Since 2009, subsequent tranches have accounted for more than 60% of the total value of annual tranche approvals. This trend continued in 2015. Of the tranches approved in 2015, subsequent tranches of MFFs approved in earlier years accounted for 77% of the overall tranche approval value, while new approvals (first tranches) accounted for 23% of the value (Figure 4 and Appendix 3). Breaking down the tranche approvals into first tranche and subsequent tranches shows that the annual total value of subsequent tranche approvals has remained high at about 70% to 80% since 2012. This trend is mainly because of (i) maturity of some earlier MFFs, thereby more subsequent tranche processing; and (ii) less MFF processing, thereby less first tranche processing.

5 In 2015, ADB approved three MFFs that include Pakistan Energy ($990 million), Afghanistan Energy ($750 million),

and Sri Lanka Water ($453 million).

Figure 3: Average Value of Approved Multitranche Financing Facilities and Tranches by Year, 2005–2015

MFF = multitranche financing facility. Source: Asian Development Bank eOperations and mainframe system as of January 2016, before validation by Controller’s Department and Operations Services and Financial Management Department.

760

451

575 472

516

370 477 391 412 367

731

133

98

102 14

6

123

130

157

135

129

125

0

200

400

600

800

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$ million

MFF Tranche D

4

2. Funding Trends 7. Proportion of ADB portfolio. MFF tranches accounted for 24% of ADB’s portfolio in 2015 (Figure 1), down from 29% in 2014. For loans and grants, MFF tranche approvals accounted for 56% of all ADB grants and 23% of all ADB loans in 2015.

8. Primary multitranche financing facility recipients. In 2015, two approved MFFs were for Group B countries 6 (Pakistan and Sri Lanka) while one was for a Group A country (Afghanistan). Table 1 shows the trends in MFF approvals by recipient country group.

Table 1: Proportion (%) of Multitranche Financing Facility Approvals by Country Classification

Year Cumulative

2011–2015 2012 2013 2014 2015 Group A 0% 0% 0% 33% 4% Group B 71% 100% 100% 67% 88% Group C 14% 0% 0% 0% 4%

Regionala 14% 0% 0% 0% 4% Total 100% 100% 100% 100% 100%

a There was one regional multitranche financing facility for the Pacific Department. Note: Figures are based on inputs during 2015 and subject to the final closing of accounting books. Percentage may not add up to 100% due to rounding. Source: Asian Development Bank eOperations and mainframe system as of January 2016, before validation by Controller’s Department and Operations Services and Financial Management Department.

6 ADB. 2013. Classification and Graduation of Developing Member Countries. Operations Manual. OM A1/BP.

Manila.

Figure 4: Composition of First and Subsequent Tranches in Value 2006–2015


0

29% 20%

67% 61%

65% 75%

81% 68%

77%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

20052006200720082009201020112012201320142015

First Tranche Subsequent Tranches

5

9. Duration of Multitranche Financing Facilities. As of January 2016, the average duration of all approved MFFs was 7.9 years, with a minimum of 6 years (Kazakhstan and Uzbekistan). This was a slight increase from 2014 (7.6 years) because of three approved MFFs and five extensions of MFF availability period approved during 2015. 10. Figure 5 compares cumulative trends in MFF approvals, tranche approvals, contract awards, and disbursements. One of the 18 subsequent tranche approvals in 2015 is for an old MFF approved in 2006, while another was from a 2008 MFF. All other tranches were processed for MFFs approved between 2009 and 2014. The gap between MFF cumulative and tranche cumulative narrowed ($9.3 billion) in comparison to the 2014 figure ($10.3 billion) as tranche approvals remained high while MFF approval continued to decrease. As of January 2016, 25 tranches (ten first tranches, and 15 subsequent tranches) are being processed for possible approval in 2016. 7

3. Geographic Trends 11. ADB’s South Asia Department (SARD) and Central and West Asia Department (CWRD) continue to account for the main share of MFFs and tranches in cumulative value over 2005–2015. SARD is the region with the highest cumulative MFFs approved ($17.2 billion), followed by CWRD ($17.0 billion) and then the Southeast Asia Department (Figure 6 and Appendix 6). CWRD accounted for two MFF approvals and SARD for one MFF approval in 2015. CWRD and SARD will likely continue to be the departments that use MFFs most in 2016, based on the processing pipeline.

7 Three regional departments are processing a new MFF in 2016: 3 MFFs by CWRD; 2 MFFs by PARD; and 5 MFFs

by SARD. Transport, energy, and water sectors will be proposing for a new MFF.

Figure 5: Cumulative Approved Multitranche Financing Facilities and Tranches, and Cumulative Contract Awards and Disbursements, 2005–2015


MFFs, cumulative Tranches, cumulative Cumulative

contract awards

Cumulative disbursements 0

10,000

20,000

30,000

40,000

50,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$ million

MFFs, cumulative Tranches, cumulativeCumulative contract awards Cumulative disbursements

Average MFF duration (7.9

years)

A

B

6

12. The countries with the highest cumulative values of approved MFFs are India, Pakistan, Viet Nam, Bangladesh, and Kazakhstan (Figure 7 and Appendix 7). Together, these countries account for 68% of all MFFs approved since 2005.

4. Strategic Directions, Sector Focus, and Thematic Priorities 13. The MFFs and tranches approved in 2015 are consistent with the core operational areas in ADB’s Strategy 2020 and its Midterm Review of this Strategy.8 The three approved MFFs focus on energy and water (Table 2). 8 ADB. 2014. Midterm Review of Strategy 2020: Meeting the Challenges of a Transforming Asia and Pacific. Manila.

Figure 6: Cumulative Values of Multitranche Funding Facility Approvals by Region, 2005–2015

Source: Asian Development Bank eOperations and mainframe system as of January 2016, before validation by the Controller’s Department and Operations Services and Financial Management Department.

CWRD $17.0bn

41%

EARD $1.6bn 4%

PARD $1.0bn 2%

SARD $17.2bn 41%

SERD $4.9bn 12%

Figure 7: Cumulative Multitranche Financing Facility and Tranche Approvals by Country and Region, 2005–2015


0 5,000 10,000 15,000

Viet NamIndonesiaSri Lanka

IndiaBangladesh

RegionalPapua New Guinea

MongoliaChina, People's Republic of

UzbekistanPakistan

KazakhstanGeorgia

AzerbaijanArmenia

Afghanistan

Sout

h-E

ast

Asia

Sout

hAs

iaPa

cifi

cEa

stAs

iaC

entra

l & W

est A

sia

Million $

Tranches MFFs

7

Table 2: Summary of Multitranche Financing Facilities Approved in 2015

Developing Member Country

Name of Project Relationship with Strategy 2020a

Strategic Agenda

Core Area of Operations

Drivers of Change

Afghanistan Energy Supply Improvement Investment Program IEG Energy NGE, PAR

Pakistan Second Power Distribution Enhancement Investment Program IEG, ESG Energy NGE, GCD,

KNS, PAR Sri Lanka Mahaweli Water Security Investment Program IEG, RCI Water GEM, PAR

ESG = environmentally sustainable growth; GCD = governance and capacity development; GEM = gender equity and mainstreaming; IEG = inclusive economic growth; KNS = knowledge solutions; NGE = no gender elements; PAR = partnerships; RCI = regional integration. a Strategy 2020 identifies five drivers of change: (i) private sector development and private sector operations, (ii)

good governance and capacity development, (iii) gender equity, (iv) knowledge solutions, and (v) partnerships. It also highlights three complementary strategic agendas (inclusive economic growth, environmentally sustainable growth, and regional integration) and five core areas of operations: (i) infrastructure, (ii) environment and climate change, (iii) regional cooperation and integration, (iv) financial sector development, and (v) education. All of these were reconfirmed under the mid-term review.


14. About 80% of the cumulative value of all approved MFFs from 2005 to 2015 have been in the infrastructure sector (Figure 8 and Appendix 9), comprising transport and information communication technology (37%), energy (30%), and water and other municipal infrastructure and services (14%). In 2012, ADB approved the first social sector MFF. Since then, the use of MFF in the social sectors has remained limited. This may be partially because four education sector loans and one health sector loan used other financing modalities. The other approved MFFs involve multisector projects and the non-infrastructure sectors, such as agriculture and natural resources (often with a strong environmental sustainability component), education, finance, and public sector management.

Figure 8: Cumulative Multitranche Financing Facility Amounts by Sector, 2005–2015


Energy, 30%

Transport & ICT, 37%

Water /Other Municipal

Infrastructure and Services, 14%

Education, 2%

Finance, 2%

Agriculture and Natural

Resources, 7%

Public Sector Management, 2%

Multisector, 6% , 0% , 0%

8

III. PERFORMANCE ASSESSMENT 15. MFF performance is assessed based on scorecard systems using three criteria: (i) timeliness, (ii) compliance on framework financing agreement undertakings, and (iii) tranche performance. Data prepared by regional departments shows overall “on track” rating of MFFs increased to 91% in 2015 from 84% in 2014. This is largely because of improvement in the first two criteria despite a decline in the tranche performance criterion (para. 16 and Appendix 10).

Table 3: Performance of Cumulative Multitranche Financing Facilities (2005–2015) as Assessed by Regional Departments

No. of MFFs

% of MFFs that Are: % that Meet MFF and Tranche Performance

Parameters

Overall On Track

Potential Problem

At Risk

No Ratinga

Timeliness

Compliance with MFF

Undertakings Tranche

Performancea CWRD 29 90% 3% 0% 7% 79% 90% 74% EARD 6 100% 0% 0% 0% 100% 83% 67% PARD 4 50% 50% 0% 0% 75% 100% 50% SARD 44 98% 0% 0% 2% 98% 93% 71% SERD 7 71% 29% 0% 0% 57% 100% 36% TOTAL 90 91% 6% 0% 3% 88% 92% 68%

CWRD = Central and West Asia Department, EARD = East Asia Department, MFF = multitranche financing facility, PARD = Pacific Department, SARD = South Asia Department, SERD = Southeast Asia Department. a Tranches (and their MFFs) that are not yet effective, that are closed, or that are not yet rated are not included in the calculations. Note: MFF performance is rated on the basis of (i) MFF delays, (ii) compliance of undertakings, and (iii) tranche performance by using score card system (not mathematical calculations). The figures are based on data entered by regional departments through eOperations. Data validation normally occurs in March. Overall MFF performances are determined based on Board-approved scorecard systems. The MFF has to meet the three criteria to be considered “On Track”. Please also refer to PAI 5.08 and the 2011 Staff Instructions. Source: Asian Development Bank regional departments (January 2016). 16. Tranche performance is assessed based on scorecard systems using five criteria: (i) cumulative contract award, (ii) cumulative disbursement, (iii) financial, (iv) safeguards, and (v) technical. Data prepared by regional departments shows that tranche performance rating was lower in 2015. Of the approved and rated tranches, 68% were “on track”—lower than in 2014 (84%) but almost equivalent to 2013 (64%) (Table 4). For contract awards and disbursements, tranches rated “on track” declined from 79% to 73% for contract awards and from 71% to 68% for disbursements (Table 4).

9

Table 4: Performance of Tranches as Assessed by Each Regional Department

Number of

Tranches Assessed

Overall Tranche

Performance Financial

Management Contract Awards Disbursements Safeguards

Technical Criteria

CWRD 69 74% 93% 80% 78% 94% 93% EARD 9 67% 100% 78% 89% 100% 100% PARD 6 50% 100% 67% 33% 100% 83% SARD 78 71% 88% 72% 63% 88% 88% SERD 14 36% 71% 50% 50% 71% 50% TOTAL 176 68% 90% 73% 68% 90% 88% CWRD = Central and West Asia Department, EARD = East Asia Department, PARD = Pacific Department, SARD = South Asia Department, SERD = Southeast Asia Department. Notes: Assessment criteria are specified in the Multitranche Financing Facility Staff Instructions. Tranches that are not yet effective, that are closed, or that are not yet rated are not included in the calculations. The figures are based on data entered by regional departments through eOperations. Data validation generally occurs in March. Overall tranche performances are determined based on Board-approved scorecard systems. The multitranche financing facility has to meet the five criteria to be considered “On Track”. Please also refer to PAI 5.08 and the 2011 Staff Instructions. Source: Asian Development Bank regional departments (January 2016). 17. In addition to MFF and tranche performances (paras. 15 and 16), the MFF Annual Report also monitors the (i) percentage of tranche prepared against cumulative MFF approved, (ii) cumulative contract awards, and (iii) cumulative disbursements against cumulative tranche approval. In 2015, the contract award amounts increased by 5% against cumulative approval tranches, and disbursement amounts by 9%, from 2014 figures (Table 5). Table 5: Status of Cumulative Tranche Preparation, Contract Awards, and Disbursements,

as Reported by Financial and Procurement Systems

Cumulative

Approved Tranche Value

Approved Tranches as % of MFF Amounta

Cumulative Contract Awards as % of

Tranche Amountb

Cumulative Disbursement as % of Tranche Amountb

2014 2015 2014 2015 2014 2015 CWRD 11,761 76% 69% 59% 64% 41% 48% EARD 1,421 84% 84% 44% 74% 29% 43% PARD 483 49% 47% 46% 70% 29% 49% SARD 11,939 66% 69% 67% 70% 48% 51% SERD 3,203 58% 64% 42% 47% 35% 35% All regions 28,807 69% 70% 60% 65% 42% 51% CWRD = Central and West Asia Department, EARD = East Asia Department, MFF = multitranche financing facility, PARD = Pacific Department, SARD = South Asia Department, SERD = Southeast Asia Department. a Based on net MFF amount (cumulative MFF less cancellation). b Based on net tranche amount (cumulative tranche amount less cancellation). Notes: Figures include closed loans for reporting purposes and exclude cofinancing. Figures were based on inputs gathered in the report year subject to the final closing of the accounts books. Figures include ordinary capital resources loans and Asian Development Fund loans and grants. Cumulative amount of tranche represents the original approved amount of tranches less any termination or adjustments prior to loan or grant signing. Source: Asian Development Bank eOperations and Mainframe system as of January 2016, before validation by Controller’s Department and Operations Services and Financial Management Department.

10

A. Project Completion 18. Regional departments reported 15 closed tranches during 2015. 9 For the closed tranches, four project completion reports (PCRs) were prepared in 2015, while other PCRs are expected in 2016 onward. The reports rated one completed project as highly successful, two successful, and one partially successful. In the first three cases, various factors contributed to the successful ratings, among them, closer project monitoring and regular consultations with the executing and implementing agencies, longer-term strategic engagement with developing member countries (optimizing the use of MFF modality), continuous capacity building, and efficient coordination between ADB’s resident mission staff and executing agencies. For the project rated as partially successful, the PCR underscored the importance of (i) allocating adequate resources for preparatory work, (ii) ensuring a more accurate cost estimate, and (iii) supporting government capacity strengthening.

IV. RECENT DEVELOPMENTS

A. Safeguards 19. ADB promotes project outcome sustainability by protecting communities and the environment from potentially adverse impacts. In 2015, ADB introduced additional approval processes for projects with significant environment impacts in MFFs. 10 Projects with an environmental impact category A classification in a subsequent tranche will now need to be submitted to the Board for consideration. The concerned regional department will prepare a short paper—providing a brief summary of the tranche and confirming compliance with environmental safeguards—which will then be circulated to the Board on a no-objection basis. 20. For all projects, regardless of financing modalities, the requirements in ADB’s Safeguard Policy Statement (2009) need to be duly followed. For each proposed MFF tranche, ADB and the client are required to agree on necessary safeguard assessments and on the preparation and implementation of safeguard plans that ensure compliance with ADB’s Safeguard Requirements. In 2015, six tranches were classified as category A on environmental and/or social safeguards, including two tranches as category A on environmental impact (Table 6). All safeguard requirements, including safeguards assessment, the development of necessary mitigation measures, public consultations, information disclosure, and establishment of redress mechanisms, have been assessed as duly met following the safeguard policy statement.11

9 Based on reports from regional departments as of January 2016. 10 A revised OM D14 was approved in February 2015. Management also issued a memo with regard to additional

approval processes for environment category A subsequent tranches in 2015. 11 ADB. 2009. Safeguard Policy Statement. Manila. http://www.adb.org/documents/safeguard-policy-statement

http://www.adb.org/documents/safeguard-policy-statement

11

Table 6: Safeguard Categorization for Multitranche Financing Facility Operations in 2015

Environment Indigenous

Peoples Involuntary

Resettlements Total by

Categorization

A Non-A (or FI) A Non-A

(or FI) A Non-A (or FI) A Non-A

(or FI) 1st Tranche 1 2 1 2 0 3 2 7 Subsequent

Tranche 1 18 0 19 3 16 4 53

TOTAL 2 20 1 21 3 19 6 60 FI = Financial Intermediary Project. Note: Categories refer to those in the Asian Development Bank’s Safeguard Policy Statement (2009). Number of tranche approval and number of safeguard categorization do not necessarily match. In some cases, safeguard categorization is given to project but not to tranche. Source: Asian Development Bank eOperations and Mainframe system, as of January 2016.

B. Changes in Multitranche Financing Facility and Implementation Arrangements 21. In 2015, eight changes for MFFs and 58 changes in tranches were approved. All changes were considered minor.12 Most tranche changes were for the reallocation of funds or an extension of the loan closing date. Facility changes were for the reallocation of funds, an extension of the MFF availability period, or a change in implementation agency (Table 7).

Table 7: Scope Changes During 2015 Reallocation of

Funda Extension of Loan Closing or

Availability Period Others

MFF Scope Changes 2 5 1 Tranche Scope Changes 35 19 4 MFF = multitranche financing facility. a See footnote 9. Source: Asian Development Bank.

C. Capacity Development 22. In May 2015, ADB, in coordination with the South Asia Department (SARD), organized an MFF workshop focused on using a time-slice financing approach on MFF.13 The workshop was attended by more than 40 ADB staff. 14 ADB may deliver a similar session in 2016. Management will consider delivering a new MFF workshop after the proposed MFF reform (para. 26) is completed in 2016.

12 Scope changes also include the project changes triggered not only based on ADB’s guiding document on scope

change (PAI 5.02) but also with other changes such as reallocation of fund (covered under PAI 5.03). 13 A time-slice financing approach on MFF will finance slices of a long-term contract packaged under the investment

program. Each tranche will finance slices of a group of contracts over the years. Each contract is sliced according to the indicative tranche schedules. Fiduciary and safeguard assessment prepared for MFF and tranche 1 processing can normally be used over the entire MFF scope and the duration. This type of MFF is being used by a few regional departments. For instance, Integrated Road Investment Program in Sri Lanka (47273-002) use a time-slice financing approach and performance of each tranche has been positive.

14 A few Board members also attended the session as observers.

12

V. COFINANCING

23. There is increased interest from partners to cofinance MFFs. Cumulative cofinancing for MFF tranches during 2005–2015 was $7.41 billion (Table 7). New cofinancing of $1.88 billion for MFF tranches in 2015 alone accounted for 25% of total MFF cofinancing over 2005-2015 (Table 8). Energy accounted for 46%, finance 20%, education 16%, transport 15%, and water and other urban infrastructure and services 3% of MFF cofinancing in 2015.

Table 8: Cumulative Cofinancing for Multitranche Financing Facility Tranches, 2005–2015

Financing Partner Number of Tranches Amount ($ million)

AITF 4 226.00

Clean Technology Fund 1 88.00

Denmark 1 12.40

Eurasian Development Bank 1 150.00

European Commission 1 21.00

European Investment Bank 6 724.58

France 5 350.00

Germany 4 584.00

Global Environment Facility 1 1.50

Islamic Development Bank 5 795.00

Japan 4 699.45

Netherlands 1 15.30

New Zealand 1 4.77

NIF 1 7.90

Republic of Korea 2 552.50

Switzerland 1 10.00

The OPEC Fund for International Development 1 30.00

UEIF 2 5.50

United Kingdom 4 144.90

World Bank 4 2,990.00

Total 50 7,412.80 AITF = Afghanistan Infrastructure Trust Fund with contributions from the governments of Japan, the United Kingdom, and the United States, NIF = Neighborhood Investment Facility, OPEC = Organization of Petroleum Exporting Countries, UEIF = Urban Environmental Infrastructure Fund under the Urban Financing Partnership Facility. Note: Cofinancing is shared financing with a third party (other than the project sponsors) on a transaction-specific basis for a project or program associated with Asian Development Bank funds, risk-taking administrative involvement, or active coordination that brings about defined client benefits. Source: Asian Development Bank.

13

Table 9: New Cofinancing for Multitranche Financing Facility Tranches, 2015 Financing Partner

Cofinancing ($ million) Tranches Cofinanced

AITF 76.00 Energy Supply Improvement Program – Tranche 1, Afghanistan

Transport Network Development Investment Program – Tranche 1, Afghanistan

Eurasian Development 150.00 North–South Road Corridor Investment Program – Tranche 3-

Additional Financing, Armenia European Investment Bank 50.00 Greater Colombo Water and Wastewater Management Improvement

Investment Program – Tranche 3 Germany 71.00 Power Transmission Investment Program – Tranche 3, Viet Nam

Islamic Development Bank 320.00

Power System Expansion and Efficiency Improvement Investment Program – Tranche 3, Bangladesh Housing for Integrated Rural Development Investment Program – Tranche 3, Uzbekistan

Japan 280.00 Clean Energy Finance Investment Program – Tranche 1, India

New Zealand 4.77 Town Electrification Investment Program – Tranche 1-Additional Financing, Papua New Guinea

Republic of Korea 39.00 Secondary Education Sector Investment Program – Tranche 1, Bangladesh

United Kingdom 121.60

National Trade Corridor Highway Investment Program – Tranche 2, Pakistan National Trade Corridor Highway Investment Program – Tranche 3, Pakistan

World Bank 765.00 Secondary Education Sector Investment Program – Tranche 2, Bangladesh Sustainable Energy Sector Reform Program – Tranche 2, Pakistan

Total 1,877.37 AITF= Afghanistan Infrastructure Trust Fund. Note: Includes loans and grants for projects under the multitranche financing facility. Source: Asian Development Bank.

VI. CONCLUSIONS

24. The 2015 MFF Annual Report presents an update of portfolio, trends, implementation status, and possible areas of improvement. In 2015, the number and value of new MFF approvals declined while a substantive value of tranches (24% of ADB approved loans and grants) was still processed. While facility performance improved in 2015, overall tranche performance decreased. The annual report highlights that the instrument supports a longer team strategic engagement with the DMC clients, but that certain improvements to the instrument may be warranted. As part of ongoing operational reforms, ADB will consider a number of operational enhancements to the MFF. These enhancements may include promoting time-slice MFF procedures, initiating a new capacity development program, and rationalizing MFF reporting and MFF assessment procedures, among others. These initiatives will be complemented and enhanced by other related reforms to ADB’s business processes and systems. Any such modifications will be considered and addressed in consultation with the relevant ADB Departments and Offices.

14 Appendix 1

APPROVED MULTITRANCHE FINANCING FACILITIES AND TRANCHES AS A PERCENTAGE OF ADB SOVEREIGN LOANS AND GRANTS, 2005–2015

($ million)

MFFa ADBc MFF as % of

ADB Tranches as % of ADB

Year Approvals Tranchesb

Loans Grants Total Loans Grants Total Loans Grants Total 2005 1,520 0 0 0 4,729 245 4,975 31% 0% 0% 0% 2006 3,610 796 0 796 6,448 268 6,715 54% 12% 0% 12% 2007 4,024 1,475 0 1,475 8,548 538 9,086 44% 17% 0% 16% 2008 5,658 1,614 224 1,838 7,841 686 8,527 66% 21% 33% 22% 2009 6,190 3,197 168 3,365 11,430 910 12,340 50% 28% 18% 27% 2010 4,436 3,001 310 3,311 9,108 905 10,012 44% 33% 34% 33% 2011 6,204 4,074 232 4,306 10,075 597 10,671 58% 40% 39% 40% 2012 2,735 3,262 349 3,611 9,977 666 10,643 26% 33% 52% 34% 2013 2,060 3,271 369 3,640 11,482 843 12,324 17% 28% 44% 30% 2014 3,305 3,113 109 3,222 10,878 405 11,284 29% 29% 27% 29% 2015 2,193 3,041 200 3,241 12,967 358 13,325 16% 23% 56% 24%

Total 41,934 26,846 1,961 28,807 103,482 6,420 109,902 38% 26% 31% 26% ADB = Asian Development Bank, MFF = multitranche financing facility. Notes: 1. Figures were based on the inputs gathered in the report year, subject to the final closing of the books of accounts. 2. Numbers may not sum precisely because of rounding. a Yearly MFF approval amounts net of cumulative cancellations as of 31 December 2015 include ordinary capital resources loans (OCR) and Asian

Development Fund (ADF) loans and grants. Cofinanced loans and grants are not included. b Amounts relate to OCR and ADF loan and grant approvals under tranches for MFF, net of cumulative cancellations as of 31 December 2015, that are

not necessarily in the same year the facility was approved. c Overall ADB loan and grant approvals funded by OCR and ADF, net of cumulative cancellations, as of 31 December 2015. Source: Asian Development Bank, Loan Financial Information System and Grant Financial Information System, as of 6 January 2016. Figures in this appendix will not necessarily correspond with data shown in other appendixes.

Appendix 2 15

APPROVED MULTITRANCHE FINANCING FACILITIES AND TRANCHES AS A PERCENTAGE OF ADB SOVEREIGN LOANS AND GRANTS, 2005–2015 (in numbers)

Year MFFa

ADB [c] Tranches as % of ADB

Approvals Tranchesb

Loans Grants Total Loans Grants Total Loans Grants Total 2005 2

0

0

0

65

19

84

0%

0%

0%

2006 8

9

0

9

71

16

87

13% 0% 10% 2007 7

18

0

18

74

24

98

24% 0% 18%

2008 12

19

2

21

82

27

109

23% 7% 19% 2009 12

24

2

26

102

27

129

24% 7% 20%

2010 12

28

1

29

105

34

139

27% 3% 21% 2011 13

32

2

34

100

16

116

32% 13% 29%

2012 7

25

2

27

111

23

134

23% 9% 20% 2013 5

28

3

31

102

20

122

27% 15% 25%

2014 9

28

1

29

108

17

125

26% 6% 23% 2015 3 25 1 26 101 15 116 25% 7% 22% Total 90 236 14 250 1021 238 1259 23% 6% 20%

ADB = Asian Development Bank, MFF = multitranche financing facility. Notes: 1. Figures were based on the inputs gathered in the report year, subject to the final closing of the books of accounts. 2. Numbers may not sum precisely because of rounding. a Total number of MFF approvals per year funded by ordinary capital resources loans (OCR) and Asian Development Fund (ADF). Cofinanced loans and grants

are not included b Number of loan/grant approvals under tranches related to MFF, not necessarily in the same year the facility was approved. The number of tranches may not be

consistent with the number of loans/grants in this table. In some cases, one tranche can contain a loan, grant, or both. c Number of overall ADB loan and grant approvals funded by OCR and ADF, which refers to total loan and grant approval numbers issued. Cofinanced loans

and grants are not included. Source: Asian Development Bank Loan Financial Information System and Grant Financial Information System, as of 6 January 2016. Figures in this appendix will not necessarily correspond with data shown in other appendixes.

16 Appendix 3

NUMBER AND AMOUNT OF MULTITRANCHE FINANCING FACILITY TRANCHE APPROVALS, BY TRANCHE, 2005–2015 ($ million)

MFF Approvals Tranche 1 Tranche 2 Tranche 3 Tranche 4 Tranche 5 Tranche 6 Total Tranches

Year

No. Amount No. Net Amount

No. Net Amount

No. Net Amount

No. Net Amount

No. Net Amount

No. Net Amount

No. Net Amount

2005 2 1,520 0 -

2006 8 3,610 6 796 - - - - - 6 796 2007 7 4,024 11 1,053 2 206 1 142 1 74 - - 15 1,475 2008 12 5,658 12 1,478 5 238 1 122 - - - 18 1,838 2009 12 6,190 11 1,113 9 1,906 1 28 1 185 1 134 - 23 3,365 2010 12 4,436 13 1,305 9 1,326 3 433 - 1 192 1 55 27 3,311 2011 13 6,204 13 1,519 10 1,386 10 1,296 1 104 - - 34 4,306 2012 7 2,735 7 886 9 1,788 4 470 3 468 - - 23 3,611 2013 5 2,060 5 697 10 1,562 7 882 4 449 1 49 - 27 3,640 2014 9 3,305 10 1,042 6 1,048 4 401 5 560 1 170 - 26 3,222 2015 3 2,193 3 750 5 762 9 1,509 3 145 1 75 - 21 3,241 Total 90 41,934 91 10,640 65 10,223 40 5,283 18 1,985 5 620 1 55 220 28,807

MFF Pipeline: 2016–2018 2016 10 6,543 10 1,979 7 773 5 962 2 305 1 99 25 4,118 2017 16 7,859 16 2,205 7 732 6 797 1 150 1 49 0 0 31 3,933 2018 14 7,480 15 2,715 12 1,822 4 563 2 349 1 328 0 0 34 5,776

Total 2016–2018 40 21,882 41 6,899 26 3,327 15 2,322 5 804 2 377 1 99 90 13,827

Total 2005–2018 130 63,816 132 17,539 91 13,550 55 7,605 23 2,789 7 997 2 154 310 42,634 MFF = multitranche financing facility. Notes: 1. Figures show yearly total number of MFF tranche approvals funded by ordinary capital resources loans and Asian Development Fund, with corresponding amounts net of cumulative cancellations as of December 2015. Cofinanced loans and grants are not included. 2. Includes closed loans for reporting purposes. 3. Numbers may not sum precisely because of rounding. 4. Figures based on the inputs gathered in the report year, subject to the final closing of the books of accounts. Source: Asian Development Bank Loan Financial Information System and Grant Financial Information System, as of 6 January 2016. Figures in this appendix will not necessarily correspond with data shown in other appendixes. Projections for 2015–2017 are based on Work Program and Budget Framework, as of November 2015.

Appendix 4 17

MULTITRANCHE FINANCING FACILITY APPROVALS AND PIPELINE PROJECTIONS, 2005–2018 ($ million)

OCR ADF ADF Grants Total Year ($ million) ($ million) ($ million) No. ($ million)

APPROVED 2005 1,520 - - 2 1,520 2006 3,750 60 - 8 3,810 2007 4,004 20 - 7 4,024 2008 4,158 590 970 12 5,718 2009 5,021 869 300 12 6,190 2010 3,851 585 - 12 4,436 2011 4,770 680 754 13 6,204 2012 2,582 153 7 2,735 2013 1,504 556 5 2,060 2014 2,507 798 9 3,305 2015 1,232 211 750 3 2,193

Total (2005–2015) 34,899 4,522 2,774 90 42,195 PIPELINE

2016 5,646 97 800 10 6,543 2017 7,434 425 - 16 7,859 2018 6,828 652 - 14 7,480

Total (2016–2018) 19,908 1,174 800 40 21,882 Total (2005–2018) 54,807 5,696 3,574 130 64,077

Average Annual Value of MFFs, 2005–2015 3,836

ADF = Asian Development Fund, MFF = multitranche financing facility, OCR = ordinary capital resources. Notes: 1. Figures at the time of approval (before cancellations) include OCR loans and ADF loans and grants. 2. Figures based on the inputs gathered in the report year, subject to the final closing of the books of accounts. 3. Numbers may not sum precisely because of rounding. Source: Asian Development Bank Loan Financial Information System and Grant Financial Information System, as of January 2016. Figures in this appendix will not necessarily correspond with data shown in other appendixes. Projections for 2016–2018 are based on Work Program and Budget Framework as of November 2015.

18 Appendix 5

APPROVED MULTITRANCHE FINANCING FACILITY TRANCHES AND PIPELINE PROJECTIONS, 2006–2018 ($ million)

Year

OCR ADF Totala Loans Guarantees Loans Grants

No. Amount No. Amount No. Amount No. Amount Amount 2006 6 771 - - 3 25 - 796 2007 15 1,436 - - 3 39 - 1,475 2008 14 1,438 - - 5 177 2 224 1,838 2009 18 2,883 - - 6 314 2 168 3,365 2010 23 2,677 - - 5 325 1 310 3,311 2011 26 3,579 - - 6 495 2 232 4,306 2012 19 3,045 - - 6 217 2 349 3,611 2013 21 2,969 - - 7 302 3 369 3,640 2014 21 2,830 - - 7 283 1 109 3,222 2015 19 2,704 6 337 1 200 3,241

Total (2006–2015) 182 24,333 - - 54 2,513 14 1,961 28,807 2016 23 3,694 0 0 9 270 1 154 4,118 2017 26 3,210 0 0 7 723 0 0 3,933 2018 28 5,090 0 0 8 549 1 137 5,776

Total (2016–2018) 77 11,994 0 0 24 1,542 2 291 13,827 Total (2006–2018) 259 36,327 0 0 78 4,055 16 2,252 42,634

ADF = Asian Development Fund, OCR = ordinary capital resources. Notes: 1. Figures refer to number and amount of loan/grant approvals under tranches related to multitranche financing facility, as of 31 December 2015, for OCR

and ADF loans, ADF grants, guarantees, and net of cumulative cancellations. 2. Includes closed loans for reporting purposes. 3. Numbers may not sum precisely because of rounding. 4. Figures were based on the inputs gathered in the report year, subject to the final closing of the books of accounts. a Includes cofinancing. Source: Asian Development Bank Loan Financial Information System and Grant Financial Information System, as of 6 January 2016. Figures in this appendix will not necessarily correspond with data shown in other appendixes. Projections for 2016–2018 are based on Work Program and Budget Framework, as of November 2015.

Appendix 6 19

MULTITRANCHE FINANCING FACILITY APPROVALS BY REGIONAL DEPARTMENT, 2005–2015 ($ million)

Region 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total

No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount

Central and West Asia

1 770 3 2,010 2 1,400 5 2,750 6 2,980 4 2,200 5 2,654 1 500 - - 2 1,740 29 17,004

East Asia - 1 50 - 1 100 1 1,000 - 1 170 1 216 1 160 - - 6 1,696

Pacific - - - 1 400 1 480 1 120 - 1 19 - - - 4 1,019 South Asia 1 750 4 1,550 4 1,693 4 1,908 3 1,100 5 940 5 1,650 4 2,000 4 1,900 9 3,305 1 453 44 17,249

Southeast Asia - - 1 931 1 500 1 630 2 1,176 2 1,730 - - - - 7 4,967

Total 2 1,520 8 3,610 7 4,024 12 5,658 12 6,190 12 4,436 13 6,204 7 2,735 5 2,060 9 3,305 3 2,193 90 41,934

Notes: 1. Numbers may not sum precisely because of rounding. 2. Includes yearly multitranche financing facility approvals, net of cumulative cancellations as of 31 December 2015, funded by ordinary capital resources loans and Asian Development Fund. Cofinanced loans and grants are not included. 3. Figures were based on the inputs gathered in the report year, subject to the final closing of the books of accounts. Source: Asian Development Bank Loan Financial Information System and Grant Financial Information System, as of 6 January 2016. Figures in this appendix will not necessarily correspond with data shown in other appendixes.

20 Appendix 7

MULTITRANCHE FINANCING FACILITY APPROVALS BY DEVELOPING MEMBER COUNTRY, 2005–2015 ($ million)

DMC 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total

No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount

Afghanistan - - - 2 940 1 300 - 1 754 - - - 1 750 5 2,744

Armenia - - - - 1 500 - 1 400 - - - - 2 900

Azerbaijan - - 1 500 - 1 600 - - 1 500 - - - 3 1,600

Bangladesh - 1 430 - - - - - 1 700 1 500 2 605 - 5 2,235 China, People's Republic of

- 1 50 - 1 100 1 1,000 - - - - - - 3 1,150

Georgia - - - - 1 500 1 300 1 500 - - - - 3 1,300

India 1 750 3 1,120 4 1,693 4 1,908 3 1,100 5 940 5 1,650 2 1,000 3 1,400 5 1,600 - 35 13,161

Indonesia - - - 1 500 - - - - - - - 1 500

Kazakhstan - - - 1 700 - 2 1,300 - - - - - 3 2,000

Mongolia - - - - - - 1 170 1 216 1 160 - - 3 546

Pakistan 1 770 3 2,010 1 900 2 1,110 1 780 - - - - - 1 990 9 6,560

Papua New Guinea

- - - 1 400 1 480 1 120 - - - - - 3 1,000

Regional - - - - - - - 1 19 - - - 1 19

Sri Lanka - - - - - - - 1 300 - 2 1,100 1 453 4 1,853

Uzbekistan - - - - 1 300 1 600 2 1,000 - - - - 4 1,900

Viet Nam - - 1 931 - 1 630 2 1,176 2 1,730 - - - - 6 4,467

Total 2 1,520 8 3,610 7 4,024 12 5,658 12 6,190 12 4,436 13 6,204 7 2,735 5 2,060 9 3,305 3 2,193 90 41,934

DMC = developing member country. Notes: 1. Includes yearly multitranche financing facility approvals, net of cumulative cancellations as of 31 December 2015, funded by ordinary capital resources loans and Asian Development Fund. Cofinanced loans and grants are not included. 2. Numbers may not sum precisely because of rounding. 3. Figures based on the inputs gathered in the report year, subject to the final closing of the books of accounts. Source: Asian Development Bank eOperations and Mainframe system, as of 17 January 2015, before validation by Controller’s Department and Operations Services and Financial Management Department. Figures in this appendix will not necessarily correspond with data shown in other appendixes.

Appendix 8 21

MULTITRANCHE FINANCING FACILITY APPROVALS BY SECTOR, 2005–2015 ($ million)

Sector 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total

2005–2015 No Amount No Amount No Amount No Amount No Amount No Amount No Amount No Amount No Amount No Amount No Amount No Amount

Infrastructure, of which: 2 1,520 7 2,910 6 3,524 10 5,000 9 4,560 9 3,516 12 5,704 6 2,716 3 860 5 2,050 2 1,740 71 34,100

Energy - 4 1,660 2 1,551 5 2,880 2 980 1 120 3 1,480 1 700 1 300 2 600 2 1,740 23 12,011 Transport and ICT 2 1,520 2 980 2 1,400 3 1,470 4 2,480 6 3,026 6 2,524 3 1,516 - 2 1,300 - 30 16,216

Water and Other Urban Infrastructure and Services

- 1 270 2 573 2 650 3 1,100 2 370 3 1,700 2 500 2 560 1 150 - 18 5,873

Education - - - - - - - 1 19 1 500 1 350 - 3 869 Finance - - - - - 1 500 1 500 - 1 700 1 500 - 4 2,200 Agriculture, Natural Resources, & Rural Development

- 1 700 - 2 658 1 300 2 420 - - - 2 405 1 453 9 2,936

Public Sector Management - - - - 1 630 - - - - - - 1 630 Multisector - - 1 500 - 1 700 - - - - - - 2 1,200 Total 2 1,520 8 3,610 7 4,024 12 5,658 12 6,190 12 4,436 13 6,204 7 2,735 5 2,060 9 3,305 3 2,193 90 41,934

ICT = information and communication technology. Notes: 1. Includes yearly multitranche financing facility approvals, net of cumulative cancellations as of 31 December 2015, funded by ordinary capital resources loans and Asian Development Fund. Cofinanced loans and grants are not included. 2. Numbers may not sum precisely because of rounding. 3. Figures were based on the inputs gathered in the report year, subject to the final closing of the books of accounts. Source: Asian Development Bank Loan Financial Information System and Grant Financial Information System, as of 6 January 2016. Figures in this appendix will not necessarily correspond with data shown in other appendixes.

22 Appendix 9

MULTITRANCHE FINANCING FACILITY TRANCHE APPROVALS BY SECTOR, 2006–2015 ($ million) Sector 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total

2006–2015 No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount

Infrastructure, of which: 5 579 14 1,175 16 1,772 20 2,869 22 2,702 30 3,609 21 3,536 22 2,731 19 2,393 14 2,265 183 23,630

Energy 3 282 7 568 7 968 9 1,443 5 558 9 1,031 6 966 5 698 4 495 5 1,084 60 8,095 Transport 2 297 4 496 7 705 7 1,144 12 1,734 12 1,713 10 2,065 10 1,457 11 1,531 5 756 80 11,898

Water and Other Municipal Infrastructure and Services

- 3 111 2 99 4 282 5 410 9 864 5 504 7 576 4 367 4 425 43 3,638

Education - - - - - - 1 2 1 87 2 91 1 182 5 362 Finance - - - - 1 150 2 440 - 3 722 2 330 3 498 11 2,140 Agriculture and Natural Resources 1 217 - 2 66 1 87 2 87 2 257 1 73 1 100 2 89 3 297 15 1,273

Public Sector Management - - - - 1 122 - - - 1 319 - 2 442

Multisector - 1 300 - 2 410 1 250 - - - - - 4 960 Total 6 796 15 1,475 18 1,838 23 3,365 27 3,311 34 4,306 23 3,611 27 3,640 26 3,222 21 3,241 220 28,807

Notes: 1. Indicated are tranche approvals, net of cumulative cancellations as of 31 December 2015, funded by ordinary capital resources loans and Asian Development Fund. Cofinanced loans and grants are not included. 2. Numbers may not sum precisely because of rounding. 3. Figures were based on the inputs gathered in the report year, subject to the final closing of the books of accounts. Source: Asian Development Bank Loan Financial Information System and Grant Financial Information System, as of 6 January 2016. Figures in this appendix will not necessarily correspond with data shown in other appendixes.

Appendix 10 23

LIST OF LINKED DOCUMENTS (http://www.adb.org/Documents/LinkedDocs/?id=2015-MFF Annual Report)

1. Annual MFF Progress Report: Central and West Asia Department 2. Annual MFF Progress Report: East Asia Department 3. Annual MFF Progress Report: Pacific Department 4. Annual MFF Progress Report: South Asia Department 5. Annual MFF Progress Report: Southeast Asia Department

http://www.adb.org/Documents/LinkedDocs/?id=2015-MFF%20Annual%20Report

24 Appendix 11

CUMULATIVE CONTRACT AWARDS AND DISBURSEMENTS BY DEVELOPING MEMBER COUNTRY, 2006–2015 ($ million)

Department DMC Cumulative Amounta Approved Tranches

as a Proportion of MFFb (%)

Cumulative Contract Awards

Cumulative Contract Awards Against

Tranchec (%)

Cumulative Cancellations Cumulative

Disbursements Disbursement

of Tranched (%) MFFs (Net)

Tranche (Net) MFFs Tranche

CWRD

Afghanistan 2,744 e 1,961 71% 1,074 55% 30 441 22% Armenia 900 484 54% 251 52% 132 27% Azerbaijan 1,600 1,524 95% 999 66% 1 695 46% Georgia 1,300 880 68% 513 58% 165 337 38% Kazakhstan 2,000 1,728 86% 1,291 75% 238 1,404 81% Pakistan 6,560 3,486 53% 2,232 64% 200 577 1,660 48% Uzbekistan 1,900 1,697 89% 1,159 68% 31 1,025 60% Subtotal 17,004 11,761 69% 7,519 64% 230 1,012 5,693 48%

EARD China, People's Republic of 1,150 1,150 100% 895 78% 0 573 50% Mongolia 546 271 50% 150 55% 43 16% Subtotal 1,696 1,421 84% 1,045 74% - 0 616 43%

PARD Papua New Guinea 1,000 479 48% 337 70% 235 49% Regional 19 3 17% 3 93% 3 85% Subtotal 1,019 483 47% 340 70% - - 238 49%

SARD

Bangladesh 2,235 1,496 67% 852 57% 491 33% India 13,161 9,452 72% 7,290 77% 31 793 5,535 59% Sri Lanka 1,853 991 53% 233 24% 83 8% Subtotal 17,249 11,939 69% 8,374 70% 31 793 6,109 51%

SERD Indonesia 500 50 10% 41 83% 34 68% Viet Nam 4,467 3,154 71% 1,469 47% 70 1,088 34% Subtotal 4,967 3,203 64% 1,510 47% - 70 1,121 35%

Total 41,934 28,807 69% 18,789 65% 261 1,875 13,777 51% CWRD = Central and West Asia Department, DMC = developing member country, EARD = East Asia Department, MFF = multitranche financing facility, PARD = Pacific Department, SARD = South Asia Department, SERD = Southeast Asia Department. Notes: 1. Figures include ordinary capital resources loans (OCR) and Asian Development Fund (ADF) loans and grants. Contracts awarded on piggyback grants are not included. 2. Figures include closed loans for reporting purposes and exclude cofinancing. 3. Figures were based on the inputs gathered in the report year, subject to the final closing of the books of accounts. 4. Numbers may not sum precisely because of rounding. 5. Contract award figures prior to 2015 refer to annual contract awards reported or frozen as of the end of each cut-off year. Figures for 2015 are subject to the final closing of the book of accounts. a MFF and tranche approvals net of cumulative cancellations, as of 31 December 2015, funded by OCR and ADF. Cofinanced loans and grants are not included. b Tranche approvals as a proportion of MFF approvals, net of cancellations. c Based on net tranche amount (cumulative tranche amount less cancellation). d % disbursed of net tranche approved. e Net of $87 million reduction in ADF portion, which will be financed by AITF. Source: Asian Development Bank Loan Financial Information System and Grant Financial Information System, as of 6 January 2016. Mainframe Systems as of 5 January 2016. Figures in this appendix will not necessarily correspond with data shown in other appendixes.

Appendix 12 25

CONTRACT AWARDS AND DISBURSEMENTS OF MULTITRANCHE FINANCING FACILITY TRANCHES, 2006–2015 ($ million)

Year

Tranche 1 Tranche 2 Tranche 3 Tranche 4

No.

Approved Tranche Amount

Contracts Awarded

Disbursed Amount No.


Contracts Awarded



Contracts Awarded



Contracts Awarded

Disbursed Amount

2006 6 796 270 42 0 0 0 0 0 0 0 0 0 2007 11 1,053 211 114 2 206 0 0 1 142 94 7 1 74 0 0 2008 12 1,478 447 305 5 238 106 40 1 122 36 43 0 72 4 2009 11 1,113 930 436 9 1,906 455 118 1 28 154 118 1 185 10 15 2010 13 1,305 971 586 9 1,326 619 309 3 433 10 46 0 184 119 2011 13 1,519 1,179 974 10 1,386 1,417 554 10 1,296 335 102 1 104 6 76 2012 7 886 1,313 881 9 1,788 1,356 631 4 470 449 225 3 468 84 91 2013 5 697 861 797 10 1,562 641 1,130 7 882 423 349 4 449 172 71 2014 10 1,042 1,288 1,097 6 1,048 1,419 1,086 4 401 786 371 5 560 94 21 2015 3 750 1,116 1,044 5 762 984 761 9 1,509 324 630 3 145 542 194 Total 91 10,640 8,585 6,276 65 10,223 6,997 4,629 40 5,283 2,611 1,891 18 1,985 1,163 591

Year

Tranche 5 Tranche 6 Total Tranches

No.


Contracts Awarded



Contracts Awarded



Contracts Awarded

Disbursed Amount

2006 0 0 0 0 0 0 6 796 270 42 2007 0 0 0 0 0 0 15 1,475 305 121 2008 0 0 0 0 0 0 18 1,838 662 392 2009 1 134 22 2 0 0 0 23 3,365 1,571 689 2010 1 192 237 24 1 55 0 0 27 3,311 2,021 1,084 2011 0 103 134 0 27 3 34 4,306 3,068 1,843 2012 0 20 80 0 36 10 23 3,611 3,259 1,918 2013 1 49 11 46 0 10 17 27 3,640 2,117 2,410 2014 1 170 1 28 0 6 17 26 3,222 3,593 2,620 2015 1 75 10 20 0 0 8 21 3,241 2,975 2,656

Total 5 620 404 334 1 55 80 55 220 28,807 19,840 13,775 Notes: 1. Indicated are tranche approvals, net of cumulative cancellations as of 31 December 2015, funded by ordinary capital resources loans and Asian Development Fund. Cofinanced loans and grants are not included. 2. Numbers may not sum precisely because of rounding. 3. Contract award figures refer to annual contract awards reported or frozen as of the end of each cut-off year, and are subject to contract variations or exchange rate differences. 4. Figures were based on the inputs gathered in the report year, subject to the final closing of the books of accounts. Source: Asian Development Bank Loan Financial Information System and Grant Financial Information System, as of 6 January 2016. Figures in this appendix will not necessarily correspond with data shown in other appendixes and the main report.