What are the main stages of the project approval process for ADB’s private sector operations?

  • ADB will carry out preliminary fact finding on the project and sponsors using the information provided by the sponsors.
  • We will also assess the likely development impact of the project and what value ADB's participation will have on the project, the sector, or the country.
  • If the project meets our criteria, a concept review paper (CRP) is prepared and submitted to the Investment Committee (IC) for approval. Thereafter, a mandate letter will be signed between ADB and the project sponsors.
  • It is likely that ADB will charge a processing (or appraisal) fee and the applicant must agree to pay ADB out-of-pocket expenses for processing the project.
  • The concept review considers if the project is technically, economically, socially, and financially viable.
  • The concept review also assesses if the project supports ADB's strategy in the country, sector or region.
  • After the CRP is cleared by the IC, a project team from ADB will conduct due diligence on the project, including a visit to the project site, offices of the sponsors, relevant government agencies, and any proposed co-financiers.
  • The project team will review the economic, financial, and commercial viability of the project business plan, the legal and regulatory framework, and any impacts on people and the environment.
  • During due diligence, the ADB project team will discuss and negotiate the terms and conditions of ADB assistance.
  • The project team will finalize and negotiate the term sheet, which should be agreed by the borrower prior to seeking ADB management's final approval.
  • The project team will prepare the appraisal report and other internal documentation. These will be presented to the IC for final review.
  • Draft loan, guarantee, or equity documentation usually is prepared concurrently during the final steps of ADB's process.
  • Once the Investment Committee has endorsed the project, the proposed ADB assistance will be presented to the ADB Board of Directors. There is a 21-day mandatory circulation period for this review.
  • After Board approval, the project documentation can be finalized and signed. 
  • Once all conditions precedent have been met (including receiving a no objection letter from the host country), then the ADB loan, guarantee and/or equity investment can be disbursed per the agreed terms.

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