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)
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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
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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).
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Related illustrative tables are also
provided in this handbook (Appendix 3B).

When a loan becomes effective, a loan account is opened in ADB

7:58 AM    

General Guideline
4.1  The borrower1
is responsible for implementing the project according to the loan
2


agreement and other loan documents. The Asian Development Bank (ADB) monitors
the project and reviews its progress to ensure that the loan proceeds are spent as
agreed upon.
Loan Account
4.2  When a loan becomes effective, a loan account is opened in ADB’s books in the name
of the borrower and the loan amount is credited to that account. Withdrawal from
the loan account is approved only after fulfillment of the requirements mentioned in
Section 4.6.
Discussion of Disbursement Procedures during Project Preparation
4.3  During project preparation and loan negotiations, ADB’s different disbursement
procedures are discussed in detail by the borrower and ADB and documented in the
project administration manual (PAM) or facility administration manual (FAM).
3
These
discussions are important because they allow the borrower and ADB to identify the
disbursement procedures most suitable for the project.
Disbursement Letter
4.4  After the loan agreement is signed, the Loan Administration Division of the Controller’s
Department (CTLA) sends a disbursement letter (Appendix 4A) to the borrower to
remind the borrower of the necessary actions to be taken to withdraw funds from the
loan account. A web link to a copy of the handbook is provided in the letter.
Actions to Be Taken by the Borrower
4.5  As soon as the loan has become effective, and to expedite the disbursement,
the borrower
ȕ assigns qualified accountants and establishes sound internal control and
accounting systems in executing agencies (EAs) and implementing agencies;