- ADB's range of public sector loans and grants respond to the evolving needs of its developing member countries and the Asia and Pacific region as a whole.
- ADB’s results-based lending modality for the public sector focuses on the positive change, or results, that ADB’s support brings to beneficiaries.
- Results-based loans support government-owned programs through a performance-based form of financing where disbursements are linked to results achievement.
ADB offers its developing member countries different types of financing modalities to support governments in boosting economic growth and solving development challenges. Responding to the evolving needs of countries and the Asia and Pacific region as a whole, ADB's range of public sector loans and grants differ in purpose, focus, financing and disbursements, and implementation arrangements. This video explains ADB’s results-based lending (RBL) modality for the public sector, which focuses on the positive change, or results, that ADB’s support brings to beneficiaries. RBL supports government-owned programs through a performance-based form of financing. Disbursements are linked to the achievement of results.
Transcript
In development, it’s not just about the classrooms or power plants built, but how these projects improve people’s lives.
Did the classrooms boost the number of graduates and improve their job opportunities? Has the power plant increased the number of households with reliable electricity supply?
Such results from the beneficiaries’ perspective are the focus of results-based lending (or RBL). This ADB lending modality supports government-owned programs and the delivery of their intended results.
RBL relies on country systems for financial management, procurement, safeguards, and monitoring and evaluation. This increases government ownership, accountability, efficiency, and effectiveness.
RBL also helps align the efforts of various government agencies toward a common set of results. It allows development partners to pool resources and share the same set of targets, coordinating their development assistance.
Under RBL, funds are disbursed when agreed program results are achieved and have been verified. These results are measured in terms of specific disbursement-linked indicators.
For RBLs to work, governments need to have a clear expenditure framework, focus on results, and strong ownership and commitment to deliver the intended development results.
