South Asia Early Warning Update

Issue #4: Asian Development Bank Proposed Projects

Friday, November 30, 2007

This Bulletin is a periodic electronic update from the Bank Information Center (BIC) South Asia office to inform civil society about Asian Development Bank (ADB) projects before they are approved by the Board of Directors of the ADB. 

This Update covers project information, organized by sectors, covering Bangladesh, India, Nepal, Pakistan and Sri Lanka only.  The information is compiled directly from ADB’s Business Opportunities.

For feedback on the Early Warning Update or to subscribe, please contact:
Bank Information Center, South Asia Office (New Delhi)
Phone: +91-11-2602-0143; Email: southasia@bicusa.org; Web: www.bicusa.org

For more information on specific projects, please contact the following at the ADB:
The Project Officer (contact details listed against each project). When emailing, also copy to: disclosure@adb.org. You may also contact the ADB Public Information and Disclosure Unit  (See: http://www.adb.org/Disclosure/contact.asp).

About Business Opportunities (BOp)

Business Opportunities (BOp) identifies potential projects that are under consideration for ADB financing. The BOp listings do not guarantee that financing will be approved for particular projects. However, BOp listings serve as important tools for monitoring and follow up of proposed projects. These, along with your country’s Country Partnership Strategy (CPS), work as early warnings on the projects that your government and the Bank are considering for funding. Advocacy and campaigning experience around the world on Bank projects indicates that the earlier civil society gets involved on proposed projects, the greater the likelihood for impacting them. Proposed projects are listed until the point of ADB Board approval; the remaining are dropped from the list. BOp listings are prepared after CPS approval and during the early phases of Project Preparation. For better understanding of this process, the Bank’s Project Cycle is summarized below.

Project Cycle (ADB website for complete project cycle)

ADB’s Project Cycle

Project Identification/Preparation: ADB often provides grants called project/program preparatory technical assistance (PPTA) to help the government identify and prepare feasible projects. The summary is made available in the form of a project profile or project information document (PID).

During the early stage of the PPTA, an initial poverty and social assessment is conducted to identify people who may be beneficially or adversely affected. A technical assistance report is prepared as a recommendation for ADB to finance a technical assistance project.

If the project requires resettlement of people or might adversely impact the environment, or indigenous peoples, certain safeguard assessments are prepared during this stage. The results of these assessments are to be made available to affected people.  For more information on community rights under ADB safeguards and international best practices, see comparative matrices of MDB safeguard policies on BIC's website.

Project Examination: ADB examines project feasibility, first through a fact-finding mission and then through an appraisal mission. The fact-finding mission examines the project's technical, financial, economic, environmental, marketing, and management aspects and potential social impact. Detailed project risks and sensitivity analyses are carried out to assess viability of the proposed project and loan terms are discussed.

Following this, the Appraisal Mission conducts further field study, analyses and consultation, as required. The mission then prepares a loan proposal report and draws up a draft loan agreement for negotiation. After appraisal, the draft loan agreement and draft project proposal is submitted for review. Government is then called for negotiation with ADB. After negotiations with the government, the loan proposal is submitted to Board of Directors for Approval, through its Report and Recommendation of the President (RRP).

After Board approval, the document is sent to the borrowing country's Government for cabinet authorization following which the loan agreement is signed. The loan takes effect once certain conditions are met. The requirements and deadline for loan effectiveness are stipulated in the loan agreement.

ADB-assisted projects are implemented by the executing agency according to the agreed schedule and procedures as detailed out in the project administration memorandum. Implementation time generally ranges from two to five years but depends on the type and nature of the project. ADB's review missions assess the progress of project implementation by visiting it at least twice a year throughout the implementation period.

If a project has significant environmental or social issues, ADB will often require the borrower to submit regular monitoring reports, in addition to progress reports. Information on the project's implementation progress and status of development objectives and loan covenants is added to the project information document during this implementation phase.

For more information, refer to: Unpacking the ADB: A Guide to Understanding the Asian Development Bank

Commonly Used BOp Acronyms

TA:      Technical Assistance

AOTA:  Advisory and Operational Technical Assistance Loans

PPTA:  Project Preparatory Technical Assistance

RETA:  Regional Technical Assistance

EIA:     Environmental Impact Assessment

IEE:     Initial Environmental Examination

   N:     New Project

   R:     Revised (italic text indicates change from previous month)

ADB Environmental Categorization

Category “A” Projects: Projects having severe environmental impacts are categorized as “A”. An EIA is required.

Category “B” Projects: Projects having some adverse environmental impacts are categorized as “B”. An IEE is required in order to determine whether an EIA also needs to be done. If not, then the IEE is the final environment document.

Category “C” Projects: Projects havening no environmental impacts are categorized as “C”. No IEE or EIA is required but environmental considerations are still reviewed.

Category “F1” Projects: Projects involving a financial intermediary or equity investment are classified as “F1”. The financial intermediary will apply an environmental management system if environmental impacts are expected.

Current Business Opportunities in South Asia

Bangladesh Agriculture and Natural Resources/Water Resources Management Health, Nutrition, and Population/Health Systems Law, Economic Management and Public Policy/Economic Management Law, Economic Management and Public Policy/National Government Administration Transport & Communications /Roads & Highways Water Supply, Sanitation & Waste Management/Water Supply & Sanitation (2) Multisector Bangladesh Early Warning Update, ADB Business Opportunities (BOp), Nov 2007 (Acrobat pdf, 85 KB)   India Energy /Energy Sector Development (2) Energy /Hydropower Generation Energy/ Renewable Energy Finance /Finance Sector Development Industry & Trade /Industry Law, Economic Management & Public Policy/ Economic Management Transport & Communications/Roads & Highways (2) Transport & Communications/ Railways Water Supply, Sanitation & Waste Management /Water Supply & Sanitation Multisector (3) India Early Warning Update, ADB Business Opportunities (BOp), Nov 2007 (Acrobat pdf, 112 KB)   Sri Lanka Education/Education Sector Development (2) Energy/Renewable Energy Industry & Trade/Small & Medium Scale Enterprises Sri Lanka Early Warning Update, ADB Business Opportunities (BOp), Nov 2007 (Acrobat pdf, 65 KB)

Nepal Agriculture & Natural Resources/Agriculture Sector Development Education/Education Sector Development (2) Energy/Energy Sector Development Energy/Hydropower Generation Health, Nutrition, & Social Protection/Social Protection Law, Economic Management & Public Policy/Economic Management Transport & Communications/Civil Aviation Water Supply, Sanitation & Waste Management/Water Supply & Sanitation (2) Multisector Nepal Early Warning Update, ADB Business Opportunities (BOp), Nov 2007 (Acrobat pdf, 96 KB)   Pakistan Agriculture & Natural Resources /Water Resources Management Energy/ /Energy Sector Development Energy/Transmission & Distribution (2) Energy/ /Hydropower Generation Law, Economic Management & Public Policy /Economic Management (3) Law, Economic Management & Public Policy /Law & Judiciary Law, Economic Management & Public Policy /Sub national Government Administration (3) Law, Economic Management & Public Policy /Law & Judiciary Transport & Communications /Roads & Highways (4) Multisector Pakistan Early Warning Update, ADB Business Opportunities (BOp), Nov 2007 (Acrobat pdf, 127 KB)

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