Pilot Financing Instruments and Modalities: Proposed Extension of Pilot Period for the Project Design Facility with Modifications

Abstract

This paper seeks the approval of the Asian Development Bank (ADB) Board of Directors to extend the pilot period of the project design facility (PDF), with modifications, until 31 December 2017. In 2011, the Board approved the PDF on a pilot basis for an initial period from 12 April 2011 to 31 December 2013. The PDF was established with a commitment authority of $150 million.1 A review of the PDF indicates that the PDF could offer a useful complement to other ADB financing modalities but that implementation issues impede its greater use. This paper therefore proposes to extend the pilot period of the PDF with a few modifications to address these issues. Before the extended pilot phase expires, ADB Management will report to the Board on the results achieved, and propose whether the PDF should be mainstreamed, further revised, or discontinued.