The Asian Development Bank (ADB) is a multilateral development finance institution
founded in 1966 to promote social and economic progress in its developing member
countries in Asia and the Pacific (see ADB’s website: http://www.adb.org/about/main).
2.2 ADB’s principal functions are
- lending funds,
- providing grants,
- providing technical assistance and advisory services,
- promoting investments for development purposes, and
- assisting in coordinating the development policies and plans of developing
member countries.
Inquiries
2.3 Loan disbursement is handled by the Loan Administration Division of the Controller’s
Department.
2.4 For loan service payments and billing matters, inquiries are addressed to the
Accounting Division of the Controller’s Department.
Loan or Grant Regulations
3.4 The regulations4
further set out conditions for the use of loan or grant proceeds
financed by ADB, or proceeds administered by ADB.
5
These documents are expressly
incorporated in the associated loan agreement, guarantee agreement, or grant
agreement. If any provision of a loan agreement, guarantee agreement, or grant
agreement is inconsistent with a provision of these regulations, the provision of the
loan agreement, guarantee agreement, or grant agreement governs.
Loan Documents
3.5 Loan documents
6
include the following documents and agreements:
ȕ Thereport and recommendation of the President to the Board of Directors
(RRP) presents the project proposal for consideration by the ADB Board.
ȕ Theproject administration manual (PAM)
7
includes all the information and
schedules describing project implementation and project readiness filters
covering major preproject implementation actions (e.g., government approvals,
procurement, and resettlement) to ensure a rapid start-up and enable early
disbursement. It is mandatory
8
that the PAM be referenced in the RRP and in
the loan (or facility) agreements, is presented as a stand-alone linked document
to the RRP, and serves as the main document describing implementation details.
The PAM is prepared in the course of loan processing and initially agreed with
the government at the loan fact-finding stage. At loan negotiations, the borrower
and ADB shall review and confirm the PAM agreed during loan fact-finding to
ensure consistency with the loan agreement, and such confirmation shall be
reflected in the minutes of the loan negotiations. The detailed cost estimate by
financier (one schedule included in the PAM) is prepared based on Section J6 of
the ADB Operations Manual (Appendix 3A).
9
Related illustrative tables are also
provided in this handbook (Appendix 3B).

Asian Development Bank (ADB)

7:16 AM    

Purpose
1.1  This Loan Disbursement Handbookon the disbursement policies and procedures of
the Asian Development Bank (ADB) primarily guide borrowers
1
and their executing
agencies in withdrawing loan
2


proceeds from the loan account.
Scope and Applicability
1.2  The principles and procedures described in this handbook apply equally to ADB’s
loan- and grant-funded investment projects and policy-based loans and grants, in
whole or in part from ADB’s ordinary capital resources, ADB’s special funds resources,
and external funding sources that are administered by ADB. Chapter 13 of the
handbook covers ADB’s private sector (nonsovereign) operations. The handbook does
not apply to disbursements under technical assistance.
1.3  The handbook should be used in conjunction with the loan documents (Section 3.5)
and relevant ADB regulations and guidelines.
1.4  This handbook supersedes all previous handbooks and guidelines on loan disbursement.
Inquiries
1.5  For further information, visit the ADB website (http://www.adb.org), inquire to the
following address, or contact ADB’s resident or regional missions or representative
offices.
Controller
Asian Development Bank
6 ADB Avenue, Mandaluyong City
1550 Metro Manila, Philippines
Tel: (632) 632-4444
Telex: 42205 ADB PM (ITT)
Philippines Fax: (632) 636-2586/636-2595
E-mail: lfis@adb.org
SWIFT address: ASDBPHMM
1
“Borrower(s)” in this handbook refers to borrowers, recipients (of grants), and/or their executing agencies,
unless the context requires otherwise.
2
The term “loan(s)” as used in this handbook refers to loan(s) and grant(s) for investment projects which
are managed by executing agencies, unless the context requires otherwise. Disbursement procedures
for policy-based loans and grants are described in Chapter 11. The reference to grant(s) does not include
technical assistance grants.