ADB Annual Report 2011 - Financial Report

2011
Financial Report
VoluMe 2
Annual Report 2011

VOLUME 2 Financial Report
2012 Asian Development Bank All rights reserved. Published in 2012. Printed in the Philippines.
ISSN 306-8370 ISBN 978-92-9092-634-4 (Print), 978-92-9092-635-1 (PDF) Publication Stock No. FLS124311
Cataloging-In-Publication Data Asian Development Bank. Annual report 2011. Mandaluyong City, Philippines: Asian Development Bank, 2012. 1. Inclusive growth. 2. Asia and the Pacific. I. Asian Development Bank. 3. Asian Development Bank. 4. Annual report.
Every effort has been made to ensure the accuracy of the data used in this publication. Variations in data in ADB publications often result from different publication dates, although differences may also come from source and interpretation of data. ADB accepts no responsibility from any consequence of their use. By making any designation of or reference to a particular territory or geographic area, or by using the term country in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area. ADB encourages printing or copying information exclusively for personal and noncommercial use with proper acknowledgment of ADB. Users are restricted from reselling, redistributing, or creating derivative works for commercial purposes without the express, written consent of ADB.
Note: In this report, $ refers to US dollars.
Asian Development Bank 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines Tel +63 2 632 4444 Fax +63 2 636 2444 www.adb.org For orders, please contact: Department of External Relations Fax +63 2 636 2648 adbpub@adb.org
Printed on recycled paper
Contents
ManagEMEnts DiscUssiOn anD anaLysis i. OVERViEw ii. ORDinaRy capitaL REsOURcEs Basis of Financial Reporting selected Financial Data Overall Financial Results Operating activities Loans guarantees syndications Equity investments Financing Resources capital and Reserves Borrowings Liquidity portfolio contractual Obligations Risk Management credit Risk Market Risk Liquidity Risk Operational Risk capital adequacy asset and Liability Management internal control over Financial Reporting critical accounting policies and Estimates iii. spEciaL FUnDs asian Development Fund technical assistance special Fund Japan special Fund aDB institute asian tsunami Fund pakistan Earthquake Fund Regional cooperation and integration Fund climate change Fund asia pacific Disaster Response Fund iV. gRant cOFinancing Japan Fund for poverty Reduction Japan scholarship program appEnDix: cOnDEnsED ManagEMEnt REpORting BaLancE shEEts 7 7 7 8 8 11 11 13 14 14 14 14 15 17 18 18 18 25 26 26 26 27 27 27 28 28 31 32 32 32 33 33 33 34 34 35 35 37
FinanciaL statEMEnts i. Ordinary capital Resources (OcR) Managements Report on internal control over Financial Reporting independent auditors Report on internal control over Financial Reporting independent auditors Report on Financial statements OcR-1 Balance sheet, 31 December 2011 and 2010 OcR-2 statement of income and Expenses for the years Ended 31 December 2011 and 2010 OcR-3 statement of comprehensive income for the years Ended 31 December 2011 and 2010 OcR-4 statement of changes in capital and Reserves for the years Ended 31 December 2011 and 2010 OcR-5 statement of cash Flows for the years Ended 31 December 2011 and 2010 OcR-6 summary statement of Loans, 31 December 2011 and 2010 OcR-7 summary statement of Borrowings, 31 December 2011 and 2010 OcR-8 statement of subscriptions to capital stock and Voting power, 31 December 2011 OcR-9 notes to Financial statements, 31 December 2011 and 2010 ii. asian Development Fund (aDF) Managements Report on internal control over Financial Reporting independent auditors Report on internal control over Financial Reporting independent auditors Report on Financial statements aDF-1 special purpose statement of assets, Liabilities, and Fund Balances, 31 December 2011 and 2010 aDF-2 special purpose statement of Revenue and Expenses for the years Ended 31 December 2011 and 2010 aDF-3 special purpose statement of comprehensive Loss for the years Ended 31 December 2011 and 2010 aDF-4 special purpose statement of changes in Fund Balances for the years Ended 31 December 2011 and 2010 aDF-5 special purpose statement of cash Flows for the years Ended 31 December 2011 and 2010 aDF-6 special purpose summary statement of Loans, 31 December 2011 and 2010 aDF-7 special purpose statement of Resources, 31 December 2011 aDF-8 notes to special purpose Financial statements, 31 December 2011 and 2010 iii. technical assistance special Fund (tasF) Managements Report on internal control over Financial Reporting independent auditors Report on internal control over Financial Reporting independent auditors Report on Financial statements tasF-1 statement of Financial position, 31 December 2011 and 2010 tasF-2 statement of activities and changes in net assets for the years Ended 31 December 2011 and 2010 tasF-3 statement of cash Flows for the years Ended 31 December 2011 and 2010 tasF-4 statement of Resources, 31 December 2011 tasF-5 summary statement of technical assistance approved and Effective for the year Ended 31 December 2011 tasF-6 notes to Financial statements, 31 December 2011 and 2010 iV. Japan special Fund (JsF) Managements Report on internal control over Financial Reporting independent auditors Report on internal control over Financial Reporting independent auditors Report on Financial statements JsF-1 statement of Financial position, 31 December 2011 and 2010 JsF-2 statement of activities and changes in net assets for the years Ended 31 December 2011 and 2010 JsF-3 statement of cash Flows for the years Ended 31 December 2011 and 2010 JsF-4 notes to Financial statements, 31 December 2011 and 2010 39 40 42 44 46 47 48 50 51 53 55 57 104 105 107 109 110 111 112 113 114 116 117 131 132 134 136 137 138 139 140 141 148 149 151 152 153 154 155
V. asian Development Bank institute (aDBi) independent auditors Report aDBi-1 statement of Financial position, 31 December 2011 and 2010 aDBi-2 statement of activities and changes in net assets for the years Ended 31 December 2011 and 2010 aDBi-3 statement of cash Flows for the years Ended 31 December 2011 and 2010 aDBi-4 notes to Financial statements, 31 December 2011 and 2010 Vi. asian tsunami Fund (atF) Managements Report on internal control over Financial Reporting independent auditors Report on internal control over Financial Reporting independent auditors Report on Financial statements atF-1 statement of Financial position, 31 December 2011 and 2010 atF-2 statement of activities and changes in net assets for the years Ended 31 December 2011 and 2010 atF-3 statement of cash Flows for the years Ended 31 December 2011 and 2010 atF-4 notes to Financial statements, 31 December 2011 and 2010 Vii. pakistan Earthquake Fund (pEF) Managements Report on internal control over Financial Reporting independent auditors Report on internal control over Financial Reporting independent auditors Report on Financial statements pEF-1 statement of Financial position, 31 December 2011 and 2010 pEF-2 statement of activities and changes in net assets for the years Ended 31 December 2011 and 2010 pEF-3 statement of cash Flows for the years Ended 31 December 2011 and 2010 pEF-4 notes to Financial statements, 31 December 2011 and 2010 Viii. Regional cooperation and integration Fund (RciF) Managements Report on internal control over Financial Reporting independent auditors Report on internal control over Financial Reporting independent auditors Report on Financial statements RciF-1 statement of Financial position, 31 December 2011 and 2010 RciF-2 statement of activities and changes in net assets for the years Ended 31 December 2011 and 2010 RciF-3 statement of cash Flows for the years Ended 31 December 2011 and 2010 RciF-4 notes to Financial statements, 31 December 2011 and 2010 ix. climate change Fund (ccF) Managements Report on internal control over Financial Reporting independent auditors Report on internal control over Financial Reporting independent auditors Report on Financial statements ccF-1 statement of Financial position, 31 December 2011 and 2010 ccF-2 statement of activities and changes in net assets for the years Ended 31 December 2011 and 2010 ccF-3 statement of cash Flows for the years Ended 31 December 2011 and 2010 ccF-4 notes to Financial statements, 31 December 2011 and 2010 x. asia pacific Disaster Response Fund (apDRF) Managements Report on internal control over Financial Reporting independent auditors Report on internal control over Financial Reporting independent auditors Report on Financial statements apDRF-1 statement of Financial position, 31 December 2011 and 2010 apDRF-2 statement of activities and changes in net assets for the years Ended 31 December 2011 and 2010 apDRF-3 statement of cash Flows for the years Ended 31 December 2011 and 2010 apDRF-4 notes to Financial statements, 31 December 2011 and 2010 statisticaL annExEs
162 163 164 165 166 179 180 182 183 184 185 186 191 192 194 195 196 197 198 204 205 207 208 209 210 211 216 217 219 220 221 222 223 228 229 231 232 233 234 235 240
Managements Discussion and Analysis
OVERVIEW
he Asian Development Bank (ADB) is an international development financial institution whose vision is an Asia and Pacific region free of poverty. ADB was established in 1966 through the Agreement Establishing the Asian Development Bank (the Charter), ratified by 31 countries, to promote the social and economic development of the region and reduce poverty. ADB is owned by 67 members, 48 of which are in the region. ADB provides various forms of financial assistance to its developing member countries (DMCs). The main instruments are loans, technical assistance (TA), grants, guarantees, and equity investments. These instruments are financed through ordinary capital resources (OCR), Special Funds, and trust funds. ADB operations are financed from OCR and Special Funds. The Charter requires that funds from each resource be kept separate from the others. Trust funds are generally financed by contributions and administered by ADB as the trustee. ADB also provides policy dialogue and advisory services, and mobilizes financial resources through its cofinancing operations that tap official, commercial, and export credit sources to maximize the development impact of its assistance. Cofinancing for ADB projects can be in the form of external loans, grants for TA and components of loan projects, and credit enhancement products such as guarantees and syndications.
ORDINARY CAPITAL RESOURCES

Funding for OCR operations comes from three distinct sources: funds borrowed from capital markets and private placements, paid-in capital provided by shareholders, and accumulated retained income (reserves). The financial strength of OCR is largely based on the support of shareholders and on a sound financial policy framework. Shareholder support is reflected in the form of capital backing from members and in the record of borrowing members in meeting their debt service obligations. Borrowed funds, together with equity, are used to fund OCR lending and investment activities and other general operations. Loans are generally provided to DMCs that have attained a higher level of economic development and to nonsovereign borrowers. Sovereign loans are priced on a cost passthrough basis, which means the cost of funding the loans plus a contractual spread is passed to the borrowers. ADB applies market-based pricing for nonsovereign loans. In addition to direct lending, ADB also provides guarantees to assist DMC governments and nonsovereign borrowers in securing commercial funds for ADB-assisted projects.
Basis of Financial Reporting

Statutory reporting. ADB prepares OCR financial statements in accordance with accounting principles generally accepted in the United States (US GAAP), referred to in this document as the statutory reporting basis. ADB manages its balance sheet by selectively using derivatives to minimize interest rate and currency risks associated with its financial instruments. Derivatives are used to enhance asset and liability management of individual positions and overall portfolios. ADB has elected not to adopt hedge accounting, but reports all derivative instruments on the balance sheet at fair value and recognizes the changes in fair value for the period as part of net income. Although most of ADBs derivatives are highly effective in hedging the underlying transactions, compliance with hedge accounting would have imposed undue constraints on future borrowings, loans, and hedge programs, which likely would have detracted from ADBs efforts to effectively and efficiently minimize the funding costs for its DMCs. Effective 1 January 2008, ADB elected to fair value financial instruments selectively and opted to fair value borrowings with associated swaps to apply a consistent accounting treatment between the borrowings and their related swaps. ADB continues to report its loans and borrowings that are not swapped at amortized cost and reports most of its investments (except time deposits that are recorded at cost) at fair value.
Asian Development Bank Annual Report 2011 Management reporting. Since certain financial instruments (including all derivatives, swapped borrowings, and certain investments) are recorded at their fair value, while loans and a portion of borrowings and investments are recorded at amortized cost, Management believes that statutory income may not fully reflect the overall economic value of ADBs financial position because of the asymmetric accounting treatment. Accordingly, ADB also reports operating income, which excludes the impact of the fair value adjustments associated with financial instruments from the results of OCR operations. ADB uses operating income as the key measure to manage its financial position, make financial management decisions, and monitor financial ratios and parameters. The operating income does not include unrealized gains or losses of the portfolio. The unrealized gains or losses, although an important indicator of the portfolio performance, generally represent changes in income as a result of fluctuations in the fair value. Since ADB does not trade these financial instruments actively, such gains or losses are generally not realized unless ADB is forced to do so by risk events before maturity. ADB has instituted conservative risk management policies to mitigate such risks. Since ADB intends to hold most borrowings and related swaps until maturity or call, the interim unrealized gains and losses reported under statutory basis are expected to converge with the net realized income and expenses ADB recognizes over the life of the transaction. The management reporting basis balance sheet reconciled from the statutory reporting basis balance sheet as of 31 December 2011 can be found in the Appendix.
Selected Financial Data

Table 1a presents selected financial data on two bases: statutory reporting basis and management reporting basis. Ratios under statutory and management reporting bases, except for return on equity, were all lower than in 2010 because of the decrease in interest rates, especially in the US dollar market (see Table 1b). The increase in return on equity reflects higher operating income compared with 2010. A discussion on revenue and expenses is in the Overall Financial Results section.
Overall Financial Results

Net income. Table 2 presents overall financial results in 2011. Net income for the year was $609.5 million compared with $625.8 million for 2010. The decrease in net income was mainly because of a $54.9 million decrease in net unrealized gains from changes in fair value of financial instruments, offset by an increase of $38.6 million in operating income. Operating income. Operating income1 for 2011 was $586.6 million compared with $548.0 million for 2010. The increase in operating income was predominantly because of the following: $48.3 million increase in overall investment income mainly because of a $50.5 million increase in realized gains from the sale of investments. This was offset by the $2.2 million decrease in interest income compared with the same period in 2010; $75.3 million increase in income from equity investments mainly because of a $67.0 million increase in profit on the divestment of shares from publicly traded companies and a $8.3 million net increase in other income; and $22.2 million decrease in overall borrowings and related expenses resulting mainly from the declining cost of borrowings and realized gains from buyback activity.
Operating income is defined as statutory net income before unrealized gains (or losses) on fair value changes of borrowings and derivatives, and ADBs proportionate share in unrealized gains (or losses) from equity investment accounted under the equity method.
Table 1a: Selected Financial Data for the Year Ended 31 December
($ million)
Item Statutory Reporting Basis Revenue From Loans From Investments From Guarantees From Equity Investments From Other Sources Total Revenue Borrowings and Related Expenses Administrative Expenses Other Expenses Total Expenses Net Realized Gains (Losses) Net Unrealized Gains (Losses) Net Income (Loss) Average Earning Assetsb Annual Return on Average Earning Assets (%) Return on Equity (%) Return on Loans (%) Return on Investments (%) Cost of Borrowings (%) Management Reporting Basis Operating Incomec Average Earning Assets
b a
2011
2010
2009
2008
2007
649.6 365.3 15.7 44.0 20.5 1,095.1 367.9 315.9 (7.4) 5.0 681.4 190.1 5.7 609.5 69,111.9 0.88 3.74 1.34 2.04 1.13
680.5 367.5 11.3 58.4 24.2 1,141.9 386.0 294.3 (44.7) 3.5 639.1 80.3 42.7 625.8 62,444.5 1.00 3.97 1.61 2.17 2.06
959.8 459.4 9.2 24.5 18.6 1,471.5 741.7 193.6 115.8 5.1 1,056.2 23.3 (466.2) (27.5) 54,655.0 (0.05) (0.18) 2.67 2.93 2.91
1,358.0 677.2 6.9 3.7 18.7 2,064.5 1,208.4 141.0 (3.5) 14.7 1,360.6 (28.1) 450.6 1,126.3 50,394.0 2.24 7.65 3.84 3.20 4.11
1,442.3 683.2 5.1 58.9 18.8 2,208.3 1,389.8 127.3 (0.6) 3.3 1,519.8 22.9 53.8 765.2 42,780.0 1.79 5.65 5.00 4.68 4.32
(Write Back on) Provision for Loan Losses
586.6 69,098.6 0.85 3.58 1.36 2.11 0.69
548.0 62,555.4 0.88 3.54 1.56 2.16 0.81
420.1 54,828.0 0.77 2.84 2.55 2.87 1.83
699.8 50,443.0 1.39 4.82 4.14 3.70 3.29
711.4 42,757.0 1.66 5.20 5.14 4.72 4.68
Annual Return on Average Earning Assetsd (%) Return on Equity (%) Return on Loans (%) Return on Investments (%) Cost of Borrowings (%)
( ) = negative. a Net of administration expenses allocated to the Asian Development Fund and loan origination costs that are deferred. b Composed of investments and related swaps, outstanding loans (excluding net unamortized loan origination cost and/or front-end fees) and related swaps and equity investments. c Starting September 2009, management reporting income is defined as the operating income. Operating income is defined as statutory net income before unrealized gains and/or losses on fair value changes of borrowings and derivatives and ADBs proportionate share in unrealized gains and/or losses from equity investment accounted under equity method. d Represents operating income over average earning assets.
Table 1b: Selected US Dollar Interest Rates

(%)
Item 6-Month US Dollar LIBOR 2-Year US Treasury

LIBOR = London interbank offered rate, US = United States.
2011 0.81 0.24
2010 0.46 0.60
2009 0.43 1.14
2008 1.75 0.77
2007 4.60 3.06
Asian Development Bank Annual Report 2011
Table 2: Overall Financial Results for the year Ended 31 December

($ million)
item income from loans Interest income Write back of loan losses Others income from investments Interest income Realized gain income from equity investments Profit on sale Realized gain on proportionate share of income from EI accounted under the equity method Impairment loss Dividend income Others Other income/expensesnet Borrowings and related expenses Interest and other expenses Realized gain administrative expensesOcR Operating income net unrealized gains net unrealized gains on proportionate share of income from Ei accounted under the equity method net income
EI = equity investments, OCR = ordinary capital resources. Note: Numbers may not sum precisely because of rounding.
2011 657.0 664.3 7.4 (14.7) 449.6 365.3 84.3 146.8 122.7 11.8 (2.1) 14.1 0.3 11.5 362.4 367.9 (5.5) 315.9 586.6 5.7 17.2 609.5
2010 703.4 688.0 22.9 (7.5) 401.3 367.5 33.8 71.5 55.7 4.8 (7.6) 17.8 0.7 50.7 384.6 386.0 (1.4) 294.3 548.0 42.7 35.0 625.8
change (46.4) (23.7) (15.5) (7.2) 48.3 (2.2) 50.5 75.3 67.0 7.0 5.5 (3.8) (0.4) (39.2) (22.2) (18.1) (4.1) 21.6 38.6 (37.1) (17.8) (16.3)
These were partially offset by the following: $46.4 million decrease in overall loan income primarily because of a $23.7 million decrease in interest income and a $15.5 million decrease in the write-back of provision for nonsovereign loans; $21.6 million increase in administrative expenses because of the planned increase in administrative expenses in 2011 offset by the increase in the estimated deferred loan origination costs, which decreased the net administrative expense, mainly resulting from the accounting adjustments made in 2010; and $39.2 million decrease in other income and expenses, mainly attributed to the $21.7 million writeback of contingent loss on nonsovereign guarantee obligations in 2010 and a $16.8 million increase in impairment loss on debt securities from nonsovereign operations.
Net unrealized gains and losses. During 2011, ADB posted a net unrealized gain of $5.7 million. This primarily consisted of fair value adjustments on the swapped borrowings and the derivatives. These resulted from the downward shift of the yield curves of some of the major currencies and the tightening of ADBs credit spreads.
10
Operating Activities
ADB provides financial assistance through loans, TA, guarantees, and equity investments to its DMCs to help them meet their developmental needs. ADB also promotes cofinancing of its projects and programs to complement its own assistance with funds from both official and commercial sources, including export credit agencies.
Loans
Loans based on the London interbank offered rate (LIBOR) have been the primary lending facility for OCR sovereign operations since 2001. The LIBOR-based loan (LBL) is designed to meet borrowers demand for loan products that suit project needs and effectively manage their external debt. The LBL also gives borrowers a high degree of flexibility in managing interest rate and exchange rate risks, while providing low intermediation risk to ADB. Since November 2002, ADB has been offering local currency loans to nonsovereign borrowers; in August 2005, this was expanded to sovereign borrowers. In June 2009, ADB established the Countercyclical Support Facility (CSF) in response to the global economic crisis that spread to Asia and the Pacific. The CSF is a sovereign lending instrument available to support the countercyclical development expenditure and/or policy program of DMCs. Five sovereign loans totaling $2.5 billion were approved and fully disbursed as of the end of 2010. ADBs discontinued loan products currently consist of the pool-based single currency loan, the market-based loan, and fixed-rate multicurrency loans. With the introduction of the LBLs, these are no longer offered. Loan approvals, disbursements, repayments, and prepayments. ADB responded promptly to help its DMCs weather the global economic crisis through record assistance in 2009. With developing Asia rebounding quickly, the level of assistance in 2010 and 2011 stabilized but continued to remain above the pre-2009 level. In 2011, the Board of Directors approved 60 sovereign loans totaling $9.1 billion and 15 nonsovereign loans totaling $1.6 billion, compared with 2010 approvals of 54 sovereign loans totaling $8.2 billion and 12 nonsovereign loans totaling $1.0 billion. Disbursements in 2011 totaled $6.3 billion ($5.6 billion for sovereign loans and $0.7 billion for nonsovereign loans), an increase of 6.6% from the $6.0 billion in disbursements in 2010. Regular principal repayments in 2011 were $2.7 billion (2010: $2.3 billion), while prepayments totaled $104.7 million (2010: $33.5 million). In 2011, five loans were fully prepaid for $67.9 million and two loans were partially prepaid for $36.8 million. As of 31 December 2011, loans outstanding after allowance for loan losses and net unamortized loan origination cost totaled $49.8 billion, of which $47.1 billion were sovereign loans and $2.7 billion were nonsovereign loans. ADB offers the multitranche financing facility (MFF), a debt financing facility that delivers financial resources for a program or investment in a series of separate financing tranches over a fixed period. Financing tranches may be provided as loans, guarantees, or any combination of these instruments based on periodic financing requests submitted by the borrower. In 2011, 12 MFFs totaling $4.8 billion (2010: 12 MFFs totaling $3.9 billion) were approved under OCR. Periodic financing requests under MFFs totaling $3.7 billion were approved in 2011 (2010: $3.1 billion). ADB provides lending without sovereign guarantee to entities that can be considered public sector borrowers but are structurally separate from the sovereign or central government. Such entities include state-owned enterprises, government agencies, municipalities, and local government units. Three loans to state-owned enterprises without sovereign guarantee totaling $600.0 million were approved in 2011 (2010: nil). Status of loans. One nonsovereign loan with an outstanding principal balance of $22.8 million was in non-accrual status as of 31 December 2011 (2010: two nonsovereign loans totaling $31.9 million). Loan charges on sovereign loans. LBLs and loans approved under the CSF carry a floating lending rate that consists of funding cost margin over or under the 6-month LIBOR and an effective contractual spread. The lending rate is reset every 6 months on each interest reset date and can be converted into a fixed rate at a borrowers request. The lending rates for pool-based single currency loans are based
11
Asian Development Bank Annual Report 2011 on the previous semesters average cost of borrowing. Interest rates for market-based loans are either fixed or floating. The floating rates are determined based on 6-month LIBOR with reset dates of either 15 March and 15 September or 15 June and 15 December. Effective 2000, all sovereign loans without specific provisions in the loan agreements were charged a lending spread of 60 basis points over the base lending rate. Since 2004, 20 basis points of the lending spread were waived on borrowers or guarantors under ADBs sovereign operations that do not have OCR loans in arrears. Subsequently, the waiver policy was extended to cover the period up to December 2012. In December 2007, the Board of Directors revised the pricing structure for all sovereign LBLs negotiated on or after 1 October 2007 by providing a credit of 0.4% for the duration of the loan. This resulted in an effective contractual spread of 20 basis points over the base lending rate. The waiver mechanism for such loans was eliminated. In April 2010, the Board approved for all LBLs to sovereign borrowers or with sovereign guarantees and local currency loans with sovereign guarantees (i) that are negotiated from 1 July 2010 up to and including 30 June 2011, that the credit of 0.4% be reduced to 0.3% for the duration of the loan, to result in a contractual spread of 0.3% over the base lending rate; and (ii) that are negotiated from 1 July 2011, that the credit of 0.4% be reduced to 0.2% for the duration of the loan, to result in a contractual spread of 0.4% over the base lending rate. In December 2011, the Board approved the introduction of maturity premiums for all LlBOR-based loans to sovereign borrowers or with sovereign guarantees (other than project design and facility loans) and local currency loans with sovereign guarantees, for which formal loan negotiations are completed on or after 1 April 2012: (i) 10 basis points per annum on loans with an average loan maturity of greater than 13 years and up to 16 years, and (ii) 20 basis points per annum on loans with an average maturity of greater than 16 years and up to 19 years. ADB also introduced a limit on the average maturity for new loans to not exceed 19 years. The loans approved under the CSF carry a lending spread of 2.0% over the base lending rate. ADBs lending rates for pool-based single currency loans in US dollars and in yen are shown in Table 3. ADB applied a progressive commitment fee of 75 basis points on undisbursed loan balances for sovereign project loans and a flat commitment fee of 75 basis points for sovereign program loans. In October 2006, as part of the enhancement of ADBs loan and debt management products, all sovereign project loans negotiated after 1 January 2007 carried a flat commitment fee of 35 basis points on the full amount of undisbursed loan balances. In April 2007, the Board approved a waiver of 10 basis points of the commitment charge on the undisbursed balances of sovereign project loans negotiated after 1 January 2007 and 50 basis points of the commitment charge on the undisbursed balances of sovereign program loans. The waiver is applicable to all interest periods starting from 1 January 2007 up to and including 31 December 2012. In December 2007, the Board approved a reduction in the commitment charge to 15 basis points for both sovereign program and project loans negotiated on or after 1 October 2007, and eliminated the waiver for such loans.
Table 3: Lending Ratesa
(% per year)
2011 1 January 1.53 4.11 1 July 1.53 4.19
2010 1.62 4.14 1.62 3.83
pscLs yen US dollar yen US dollar
PSCL = pool-based single currency loan, US = United States. a Lending rates are set on 1 January and 1 July every year and are valid for 6 months and are represented net of 20 basis points lending spread waiver.
12
Table 4: Funding cost Margin

(% per year)
(Rebate) or surcharge type LIBOR-based Loans US dollar yen CSF Loans US dollar (0.21) (0.27) 0.18 (0.23) (0.27) 0.18 (0.26) (0.27) 0.18 (0.28) (0.28) 0.22 1 July 2011 1 January 2011 1 July 2010 1 January 2010
CSF = Countercyclical Support Facility, LIBOR = London interbank offered rate, US = United States.
Rebates and surcharges are standard features of sovereign LBLs and loans approved under the CSF. To maintain the principle of the cost pass-through pricing policy, ADB returns the actual funding cost margin above or below LIBOR to its sovereign borrowers through a surcharge or rebate. The funding cost margins are reset on 1 January and 1 July every year, and are based on the actual average funding cost margin for the preceding 6 months. The rebates or surcharges are passed on to the borrowers by incorporating them into the interest rate for the succeeding interest period. ADB returned an actual sub-LIBOR funding cost margin of $81.5 million to its LBL sovereign borrowers in 2011 (2010: $85.4 million) based on the rebate rates, and collected a surcharge of $4.5 million on loans under the CSF in 2011 (2010: $4.1 million). Loan charges on nonsovereign loans. For nonsovereign loans, ADB applies market-based pricing to determine the lending spread, front-end fees, and commitment charges for each loan. The lending spread is intended to cover ADBs risk exposure to specific borrowers and projects and the front-end fee to cover the administrative costs incurred in loan origination. Front-end fees typically range from 1% to 1.5% depending on the transaction. ADB applies a commitment fee typically in the range of 0.50% to 0.75% per year on the undisbursed commitment. Local currency loans are priced based on relevant local funding benchmarks or ADBs funding costs and a market-based spread. Project design facility. In April 2011, ADB established the project design facility (PDF) on a pilot basis to support project preparation, particularly detailed engineering designs, through project design advances. Loans approved under the PDF carry standard interest of OCR or the Asian Development Fund (ADF). Payment of interest is deferred until the project design advance is refinanced out of the proceeds of the loan, or other repayment terms take effect. As of 31 December 2011, there were no projects approved under PDF. Policy-based lending. Effective 14 October 2011, ADB introduced policy-based lending, which enhanced the program lending policy by mainstreaming the programmatic budget support and enhancing the crisis response capacity. All features of the previous program lending were carried over to the policy-based lending. Official cofinancing for loans. In 2011, $2,307.5 million from official sources was mobilized in loan cofinancing for 14 loan projects, of which $107.0 million is with ADBs administration and $2,200.5 million is under collaborative arrangements. Refer to Note E of OCR Financial Statement for loans administered by ADB as of 31 December 2011.
Guarantees
ADB provides guarantees2 as credit enhancements for eligible projects to cover risks that the project and its commercial cofinancing partners cannot easily absorb or manage on their own. Reducing these risks can make a significant difference in mobilizing debt funding for projects.
2
Under its Charter, ADB may guarantee debt transactions. Guarantees are typically designed to facilitate cofinancing by mitigating risk exposure of commercial lenders and capital market investors. A political risk guarantee (one form of guarantee offered by ADB) covers specifically defined political risks. Other guarantees provide comprehensive cover for debt service.
13
Asian Development Bank Annual Report 2011 ADB has used its guarantee instruments successfully for infrastructure projects, financial institutions, capital markets, and trade finance. These instruments generally are not recognized in the balance sheet and have off-balance sheet risks. For guarantees issued and modified after 31 December 2002, ADB recognized at the inception of a guarantee the noncontingent aspect of its obligations. In 2011, ADB approved four new guarantees totaling $416.6 million (2010: three guarantees totaling $700.0 million). Trade Finance Program. The Trade Finance Program, which started operations in 2004, consists of three products: (i) a credit guarantee facility, under which ADB issues guarantees to participating international and regional banks to guarantee payment obligations issued by approved DMC and/or local banks in selected DMCs; (ii) a revolving credit facility, under which ADB provides traderelated loans to DMC banks in support of DMC companies export and import activities; and (iii) a risk participation agreement, under which ADB shares risk with international banks to support and expand trade in challenging and frontier markets. The credit guarantee and risk participation agreement are unfunded products, while the revolving credit facility is funded. As of 31 December 2011, outstanding Trade Finance Program loans amounted to $8.8 million (2010: nil) and guarantees amounted to $579.2 million (2010: $567.1 million).
Syndications
Syndications enable ADB to mobilize cofinancing by transferring some or all of the risks associated with its loans and guarantees to other financing partners.3 Thus, syndications decrease and diversify the risk profile of ADBs financing portfolio. Syndications may be on a funded or unfunded basis, and they may be arranged on an individual, portfolio, or any other basis consistent with industry practices. In 2011, $200.0 million for syndications through B-loans4 was provided for two projects (2010: $320.0 million for three projects).
Equity Investments
The Charter allows the use of OCR for equity investments in private enterprises up to 10% of its unimpaired paid-in capital actually paid up together with reserves and surplus, excluding special reserves. At the end of 2011, the total equity investment portfolio for OCR for both outstanding and undisbursed approved facilities totaled $1,240.1 million, or about 79% of the ceiling defined by the Charter. In 2011, ADB approved six equity investments totaling $239.0 million (2010: seven equity investments totaling $235.0 million). In the same period, ADB disbursed a total of $76.7 million in equity investments, a 60.2% decrease from $192.6 million disbursed in 2010, and received a total of $207.4 million from capital distributions and divestments, whether in full or in part, in 38 projects. The divestments were carried out in a manner consistent with good business practices, after ADBs development role in its investments had been fulfilled, and without destabilizing the companies concerned.
Financing Resources Capital and Reserves

In April 2009, the Board of Governors adopted Resolution No. 336, which provides for a fifth general capital increase (GCI V) in ADBs authorized capital stock and subscriptions of an additional 7,092,622 shares by ADB members. As of 31 December 2011, ADB had received subscriptions from 66 of 67 members totaling $108.0 billion, representing about 99.2% of the shares authorized under GCI V. Following the remaining members advice that it will no longer
3 4
Depending on whether ADB retains risk or not, ADB may or may not have a contingent liability. A B-loan is a tranche of a direct loan nominally advanced by ADB, subject to eligible financial institutions taking funded risk participations within such a tranche and without recourse to ADB. It complements an A-loan funded by ADB.
14
Managements Discussion and Analysis subscribe to the allocated shares, the Board of Directors approved the conclusion of the GCI V subscription in January 2012. The total authorized capital of ADB was 10,638,933 shares valued at $163.3 billion as of 31 December 2011. Subscribed capital as of 31 December 2011 was 10,583,580 shares valued at $162.5 billion. Of the subscribed capital, $8.2 billion was for paid-in ($4.7 billion of which was paid as of 31 December 2011) and $154.3 billion was for callable. Callable capital can be called only if required to meet ADBs obligations incurred on borrowings or guarantees under OCR. No call has ever been made on ADBs callable capital. In accordance with Article 40 of the Charter, the Board of Governors annually approves the allocation of the previous years net income to reserves and/or surplus. In addition, to the extent feasible, it approves the transfer of part of the net income to Special Funds to support development activities in its DMCs. In May 2011, the Board of Governors approved the allocation of 2010 net income of $614.5 million, after appropriation of guarantee fees to the special reserve, as follows: (i) $45.9 million be transferred from the Loan Loss Reserve; (ii) $77.8 million, representing the Financial Accounting Standards Boards Accounting Standards Codification (ASC) 815 and 825 adjustments and the unrealized portion of net income from equity investments accounted under equity method, to the Cumulative Revaluation Adjustments account; (iii) $422.6 million to ordinary reserve; (iv) $120.0 million to the ADF; and (v) $40.0 million to the Technical Assistance Special Fund (TASF). Total shareholders equity increased from $15,878.5 million as of 31 December 2010 to $16,533.5 million as of 31 December 2011. This was primarily because of (i) the net effect of the change in the value of the special drawing right (SDR) on capital and reserves of $32.6 million, (ii) a $541.0 million increase in paid-in capital for the installment payments received, and (iii) net income for the year of $609.5 million, before appropriation to special reserve of $15.7 million guarantee fees. The increases were offset mainly by the net increase in other comprehensive loss of $367.9 million and allocations to the Special Funds totaling $160 million ($120 million to the ADF, and $40 million to the TASF). ADB limits the total amount of outstanding loans and guarantees, as well as outstanding equity investments including undisbursed commitments, to the total amount of ADBs unimpaired subscribed capital, reserves, and surplus. In addition, the gross outstanding borrowings cannot exceed the sum of callable capital from nonborrowing members, paid-in capital, and reserves (including surplus). As of 31 December 2011, headroom for lending was $123.3 billion ($108.6 billion as of 31 December 2010) and for borrowings was $57.9 billion ($44.9 billion as of 31 December 2010).
Borrowings
ADBs primary borrowing objective is to ensure the availability of funds at the most stable and lowest possible cost for its operations. Subject to this objective, ADB seeks to diversify its funding sources across markets, instruments, and maturities. In 2011, ADB continued to employ a strategy of issuing liquid benchmark bonds to maintain its strong presence in key currency bond markets, and raising funds through opportunistic financing and private placements, such as retail-targeted transactions and structured notes, which provide ADB with cost-efficient funding levels. Summary of 2011 funding operations. In 2011, ADB completed 68 borrowing transactions, raising about $14.0 billion in long- and medium-term funds (2010: $14.9 billion). The new borrowings were raised in nine currencies: Australian dollar, Brazilian real, Mexican peso, New Zealand dollar, Norwegian krone, pound sterling, South African rand, Turkish lira, and US dollar. Of the 2011 borrowings, $10.6 billion was raised through 16 public offerings, including three global benchmark bond issues denominated in US dollars totaling $5.5 billion. The remaining $3.4 billion were raised through 52 private placements. The average maturity of these borrowings was 4.6 years (2010: 4.9 years). All of the 2011 borrowings were converted into US dollar floating-rate liabilities. Aside from the medium- and long-term borrowings, ADB also raised $620.6 million in short-term funds under its Eurocommercial paper program to enhance its presence in the market and to meet temporary cash needs.
15
Table 5: Borrowings
($ million)
item Long term Total Principal Amount Average Maturity to First Call (years) Average Final Maturity (years) Number of Transactions Public Offerings Private Placements Number of Currencies (before swaps) Public Offerings Private Placements short terma Total Principal Amountb Number of Transactions Number of Currencies
a b
2011 14,008.8 4.6 6.8 16 52 6 7 620.6 8 2
2010 14,940.1 4.9 6.1 20 72 6 7 30.0 1 1
All euro-commercial papers. At year-end, the outstanding principal amount was $437.6 million in 2011 and nil in 2010.
Figure 1: Effect of swaps on currency composition of Borrowings

As of 31 December 2011
Currency Composition of Outstanding Borrowings

(Before Swaps) Other Currenciesa 19.5%
Currency Composition of Outstanding Borrowings

(After Swaps) Japanese yen 7.2%
Other Currenciesb 1.4%
Japanese yen 6.4% US dollar 57.3% Australian dollar 16.8% US dollar 91.4%
Other currencies include Brazilian real, Canadian dollar, yuan, Hong Kong dollar, Indian rupee, Kazakhstan tenge, ringgit, Mexican peso, New Zealand dollar, Norwegian krone, Philippine peso, pound sterling, Singapore dollar, South African rand, Swiss franc, baht, and Turkish lira. Other currencies include yuan, Indian rupee, Kazakhstan tenge, and Swiss franc.
As of the end of 2011, only $437.6 million of Euro-commercial paper borrowings were outstanding. Table 5 shows details of 2011 borrowings as compared with borrowings in 2010. In May 2011, ADB launched its first NKr1.25 billion ($227 million) public bond offering; in October 2011, ADB reopened the existing Norwegian krone issue in the amount of NKr250 million ($43.1 million), bringing the outstanding principal to NKr1.5 billion ($270.2 million). ADB also issued its first pound sterling-denominated floating rate note totaling 400 million ($645.4 million). Following the success of its thematic bonds in 2010, ADB issued two water themed private placements in 2011 totaling $40 million. ADB also completed buyback transactions with the total notional amount of about $298.9 million in 2011. Local currency bonds. ADB continued to explore and pursue its objective to contribute to the development of regional bond markets and provide the appropriate local currency funding for its borrowers. ADB works closely with the Private Sector Operations Department and regional departments to track local currency financing requirements and, where required, help with financial structuring and pricing aspects of projects. In 2011, ADB successfully executed a long-dated 16
Figure 2: Effect of swaps on interest Rate structures of Borrowings

As of 31 December 2011
Interest Rate Structure of Outstanding Borrowings

(Before Swaps)
Interest Rate Structure of Outstanding Borrowings

(After Swaps)
Variable 6.1%
Variable 91.8%
Fixed 93.9%
Fixed 8.2%
and highly structured cross-currency swap to finance the disbursement of ADBs first sovereignguarantee local currency loan denominated in Kazakhstan tenge. Use of derivatives. ADB undertakes currency and interest rate swaps to raise, on a fully hedged basis, currencies needed for operations in a cost-efficient way, while maintaining its borrowing presence in major capital markets. Figures 1 and 2 show the effects of swaps on the currency composition and interest rate structure of ADBs outstanding borrowings as of 31 December 2011. Interest rate swaps are also used for asset and liability management purposes to match the liabilities with the interest rate characteristics of loans.
Liquidity Portfolio
The liquidity portfolio helps ensure the uninterrupted availability of funds to meet loan disbursements, debt servicing, and other cash requirements; provides a liquidity buffer in the event of financial stress; and contributes to ADBs earning base. ADBs Investment Authority governs management of ADBs liquidity investments. The primary objective is to maintain the security and liquidity of funds invested. Subject to these two parameters, ADB seeks to maximize the total return on its investments. ADB does not switch currencies to maximize returns on investments, and investments are generally made in the same currencies in which they are received. At the end of 2011, ADB held liquid investments in 23 currencies. Liquid investments are held in government and government-related debt instruments, time deposits, and other unconditional obligations of banks and financial institutions. To a limited extent, they are also held in corporate bonds that are rated at least A. These investments are held in five portfolios core liquidity, operational cash, cash cushion, discretionary liquidity, and ad hocall of which have different risk profiles and performance benchmarks. The year-end balance of the portfolios in 2011 and 2010 is presented in Table 6.
Table 6: year-End Balance of Liquidity portfolioa
($ million)
item Core Liquidity Portfolio Operational Cash Portfolio Cash Cushion Portfolio Discretionary Liquidity Portfolio Other Portfolio total
a
2011 14,399.5 195.9 2,136.0 4,407.5 562.4 21,701.3
2010 12,591.6 218.2 1,933.0 3,090.5 453.1 18,286.4
Including receivables for securities repurchased under resale arrangements, securities transferred under securities lending arrangements, unsettled trades, and accrued interest. The composition of the liquidity portfolio may shift from 1 year to another as part of ongoing liquidity management.
17
Table 7: Return on Liquidity portfolio

(%)
annualized Financial Return item Core Liquidity Portfolio Operational Cash Portfolio Cash Cushion Portfolio Discretionary Liquidity Portfolioa Other Portfolio
a
2011 3.44 0.09 0.57 0.44 3.57
2010 3.50 0.15 0.46 0.30 1.36
Spread over funding cost at 31 December.
The core liquidity portfolio (CLP) is invested to ensure that the primary objective of a liquidity buffer is met. Cash inflows and outflows are minimized to maximize the total return relative to a defined level of risk. The portfolio has been funded by equity, and the average duration of the major currencies in the portfolio was about 2.26 years at 31 December 2011. The operational cash portfolio is designed to meet net cash requirements over a 1-month horizon. It is funded by equity and invested in short-term highly liquid money market instruments. The cash cushion portfolio holds the proceeds of ADBs borrowing transactions pending disbursement. It is invested in short-term instruments and aims to maximize the spread earned between the borrowing cost and the investment income. The discretionary liquidity portfolio is used to support medium-term funding needs and is funded by debt to provide flexibility in executing the funding program over the medium term, and to opportunistically permit borrowing ahead of cash-flow needs and bolster ADBs access to short-term funding through continuous presence in the market.
Contractual Obligations
In the normal course of business, ADB enters into contractual obligations that may require future cash payments. Table 8 summarizes ADBs significant contractual cash obligations as of 31 December 2011 and 2010. Long-term debt includes direct medium- and long-term borrowings, excluding swaps, and excludes unamortized premiums, discounts, and the effects of applying ASC 815. Other long-term liabilities correspond to accrued liabilities, including pension and postretirement medical benefits.
Table 8: contractual cash Obligations
($ million)
item Long-Term Debt Undisbursed Loan Commitments Undisbursed Equity Investment Commitments Guarantee Commitments Other Long-Term Liabilities total
2011 56,902.6 28,349.9 611.5 2,480.4 1,573.9 89,918.3
2010 52,142.8 24,577.0 471.5 2,331.7 1,267.6 80,790.6
18
Risk Management
In its operations, ADB faces various kinds of risks, including financial, operational, and other organizational risks. The active management of these risks is a key determinant of ADBs ability to maintain its AAA rating. ADB has a comprehensive risk management framework that is built on the three core components of governance, policies, and processes. Governance starts with the Board of Directors, which plays a key role in reviewing and approving risk policies that define ADBs risk appetite. ADB also maintains an independent risk management group and has various managementlevel committees with oversight responsibility for and decision-making authority on risk issues. ADBs risk management framework also includes the Risk Committee, which provides high-level oversight of ADBs risks and recommends risk policies and actions to the President. ADB monitors the credit of existing transactions in the nonsovereign portfolio, conducts risk assessments of new nonsovereign transactions, and assumes responsibility for resolving distressed transactions when necessary. It also monitors market and credit risks in treasury operations, such as the credit quality of counterparties, interest rate risk, and foreign exchange risk. For the aggregate portfolio, ADB monitors limits and concentrations, sets aside loan loss reserves and provides loan loss provisions including collective provision requirements, and assesses its capital adequacy. In carrying out its mission, ADB is exposed to various risks: (i) credit risk, (ii) market risk, (iii) liquidity risk, and (iv) operational risk. This section will discuss each of these risks as well as ADBs capital adequacyADBs ultimate protection against unexpected lossesand its asset and liability management.
Credit Risk
Credit risk is the loss that could result if a borrower or counterparty defaults or if its creditworthiness deteriorates. Related to credit risk, ADB also faces concentration risk, which arises when a high proportion of the portfolio is allocated to a specific country, industry sector, obligor, type of instrument, or individual transaction. ADB assigns a risk rating to each loan, guarantee, and treasury counterparty on an internal scale from 1 to 14 (Table 9). For sovereign and treasury counterparties, the external rating is used in assigning the internal rating. For nonsovereign transactions, the rating typically is not better than that of the sovereign.
Table 9: aDB internal Risk Rating scale
aDB internal Rating scale 1 2 3 4 5 6 7 8 9 10 11 12 13 14
ADB = Asian Development Bank.
credit Rating agency Equivalent AAA/Aaa to A/A2 A/A3 BBB+/Baa1 BBB/Baa2 BBB/Baa3 BB+/Ba1 BB/Ba2 BB/Ba3 B+/B1 B/B2 B/B3 CCC+/Caa1 CCC/Caa2 to C D
aDB Definitions Lowest expectation of credit risk Very low credit risk Low credit risk Low credit risk Low to medium credit risk Medium credit risk Medium credit risk Medium credit risk Significant credit risk Significant credit risk Significant credit risk High credit risk Very high credit risk Default
19
Asian Development Bank Annual Report 2011 ADB is exposed to credit risk in its sovereign, nonsovereign, and treasury operations. The sovereign portfolio includes sovereign loan and guarantees, while the nonsovereign portfolio includes nonsovereign loan and guarantees, publicly traded equity, and private equity. The treasury portfolio includes fixed-income securities, cash and cash equivalents, and derivatives. Table 10 details the credit risk exposure and weighted average risk rating for each asset class. These figures are gross of collateral, other credit enhancements, and impairment provisions. Overall, aggregate credit risk improved from 4.4 (BBB) in 2010 to 4.1 (BBB) in 2011. Credit risk in the sovereign portfolio. Sovereign credit risk is the risk that a sovereign borrower or guarantor will default on its loan or guarantee obligations. ADB manages its sovereign credit risk through loan loss reserves and maintaining conservative equity levels. OCR has not experienced any loss of principal from sovereign operations. When countries have delayed payments, they have generally returned their loans to accrual status and ADB has never had to write off a sovereign loan funded from OCR.
Table 10: Exposure to credit Risk
As of 31 December 2011 and 2010
2011 item
Sovereign operations (loan and guarantee) Nonsovereign operations a. Loan and guarantee b. Publicly traded equity c. Private equity Treasury a. Fixed income b. Cash instruments c. Derivatives aggregate Exposure
n/a = not applicable. Note: Numbers may not sum precisely because of rounding.
2010 Rating (114)

5.4 / BBB 6.3 / BB+ n/a n/a 1.0 / AA 1.0 / AA+ 1.1 / AA 1.4 / A+ 4.1 / BBB
Exposure ($ million)
47,930.5 4,622.7 3,466.1 297.7 858.9 22,981.0 16,605.7 5,771.3 604.0 75,534.2
Exposure ($ million)
44,424.2 4,416.3 3,138.6 491.6 786.1 20,486.5 15,472.2 3,916.3 1,098.0 69,327.0
Rating (114)
5.7 / BB+ 7.1 / BB n/a n/a 1.0 / AA+ 1.0 / AA+ 1.0 / AA 1.0 / AA 4.4 / BBB
Figure 3: sovereign Exposure by credit Quality

As of 31 December 2011 and 2010 (%)
2011
High credit risk 0.1
2010
Low credit risk 48.0 Medium credit risk 51.9 Medium credit risk 55.1
Low credit risk 44.9
Notes: (i) 0.0 = % is less than 0.05. (ii) low credit risk = exposures with risk rating 15, medium credit risk = exposures with risk rating 611, high credit risk = exposures with risk rating 1214.
20
Managements Discussion and Analysis ADB charges provisions against income for a specific transaction if it is considered impaired. In addition, ADB also appropriates loan loss reserves in the equity for the average loss that ADB could incur in the course of lending. The provisions are based on projections of future repayment capacity. The loan loss reserve is based on the historical default experience of sovereign borrowers to multilateral development banks. The sum of the provisions and loan loss reserve represents ADBs expected loss for sovereign operations. The 2011 results are discussed below. Sovereign credit quality. The weighted average risk rating of the sovereign credit portfolio improved from 5.7 (BB+) in 2010 to 5.4 (BBB) in 2011 because of improving sovereign credit conditions in many of ADBs DMCs and more disbursements to high rated countries, such as the Peoples Republic of China (PRC) (Figure 3). Refer to Note E of OCR Financial Statements for additional information. Sovereign concentrations. Because Asias population is concentrated in a few countries, ADB assumes higher concentration risk to the most populous countries to fulfill its development mandate. The three largest borrowersthe PRC, India, and Indonesiarepresented 64.8% of the portfolio (Table 11). Expected loss. Improvements in credit quality offset increases in expected loss from portfolio growth, reducing the expected loss for the sovereign portfolio from $164.2 million in 2010 to $158.2 million in 2011 (Table 12). Credit and equity risks in the nonsovereign portfolio. Nonsovereign credit risk is the risk that a borrower will default on its loan or guarantee obligations where ADB does not have recourse to a sovereign entity. ADBs nonsovereign credit risk is considered more significant because of the uncertain economic environment in some of ADBs markets. In addition, ADBs exposure is concentrated in the energy and finance sectors. ADB employs various policy-based measures to manage these risks. The Investment Committee and the Risk Committee oversee risks in the nonsovereign portfolio. The Investment Committee, chaired by a vice-president, reviews all new nonsovereign transactions for creditworthiness and pricing. The Risk Committee, chaired by the managing director general, monitors aggregate portfolio risks and individual transactions whose creditworthiness has deteriorated. The Risk Committee also approves or endorses policy changes in managing the portfolios risks and approves provisions for impaired transactions.
Table 11: sovereign country Exposure
2011 country
Peoples Republic of China India Indonesia Philippines Pakistan Others
Note: Percentages may not total 100% because of rounding.
2010 %
24.4 20.5 19.8 11.6 11.1 12.6
$ million
11,693.4 9,844.3 9,503.5 5,569.0 5,296.6 6,023.7
$ million
10,462.6 8,736.2 9,887.8 5,465.0 5,089.1 4,783.5
%
23.6 19.7 22.3 12.3 11.5 10.8
Table 12: Sovereign portfolio Expected Loss

2011 item
Provision for Loan Losses Loan Loss Reserve Requirementa Expected Loss
2010 % of sO portfolio
0.3 0.3
$ million
158.2 158.2
$ million
164.2 164.2
% of sO portfolio
0.4 0.4
= nil, SO = sovereign operations. a Loan loss reserve requirement is subject to Board of Governors approval during the Annual Meeting in May 2012.
21
Asian Development Bank Annual Report 2011 ADB manages its nonsovereign credit risk by assessing all new transactions at the concept clearance stage and before final approval. Following approval, all exposures are reviewed at least annually; more frequent reviews are performed for those that are more vulnerable to default or have defaulted. In each review, ADB assesses whether the risk profile has changed, takes necessary actions to mitigate risks and either confirms or adjusts the risk rating, and updates the valuation for equity investments including assessing whether impairments are considered other than temporary. ADB will provide specific provisions where necessary in accordance with its provisioning policy. ADB recognizes specific provisions in the net income for known or probable losses in loans or guarantee transactions, and collective provisions for unidentified probable losses that exist in disbursed loan transactions rated below investment grade. In addition, ADB appropriates loan loss reserves in the equity for the average loss that ADB would expect to incur in the course of lending for credit transactions rated investment grade and for the undisbursed portions of credit transactions rated worse than investment grade. Specific provisions are based on projections of future repayment capacity. The collective provision and loan loss reserve are based on historical default data from Moodys Investors Service that is mapped to ADBs portfolio. ADB annually tests whether this external data reasonably corresponds to ADBs actual loss experience and may adjust estimates on the basis of this back testing. The sum of the specific provision, collective provision, and loan loss reserve represents ADBs expected loss for nonsovereign operations.
Figure 4: nonsovereign Exposure by credit Quality
As of 31 December 2011 and 2010 (%)
2011
2010
Low credit risk 39.4 Medium credit risk 58.0 Medium credit risk 61.7
Low credit risk 29.0
Notes: (i) Percentages may not total 100% because of rounding. (ii) low credit risk = exposures with risk rating 15, medium credit risk = exposures with risk rating 611, high credit risk = exposures with risk rating 1214.
Table 13: nonsovereign country Exposure

2011 country
Peoples Republic of China India Pakistan Philippines Indonesia Viet Nam Others
2010 %
22.8 14.5 8.5 6.2 4.9 4.6 38.4
$ million
1,055.0 668.1 394.6 288.1 227.2 214.3 1,775.4
$ million
1,058.5 690.5 293.6 326.7 193.4 396.1 1,457.5
%
24.0 15.6 6.6 7.4 4.4 9.0 33.0
22
Table 14: nonsovereign sector Exposure

2011 sector
Energy Finance Investment Funds Others
2010 %
45.1 37.6 8.1 9.2
$ million
2,082.7 1,739.4 374.7 425.9
$ million
1,966.3 1,682.0 355.0 413.1
%
44.5 38.1 8.0 9.3
Table 15: nonsovereign portfolio Expected Loss

2011 item
Specific Provision for Loan Losses Collective Provision for Loan Losses Loan Loss Reserve Requirementb Expected Loss
2010 % of nsO portfolioa

0.3 0.7 1.0 2.0
$ million
9.6 25.4 35.5 70.6
$ million
9.2 33.4 35.9 78.4
% of nsO portfolioa
0.3 1.1 1.1 2.5
NSO = nonsovereign operations. Note: Numbers may not sum precisely because of rounding. a Percentage only applies to the loan and guarantee operations of the nonsovereign portfolio. b The loan loss reserve requirement is subject to Board of Governors approval during the Annual Meeting in May 2012.
ADB uses limits for countries, industry sectors, corporate groups, obligors, and individual transactions to manage concentration risk in the nonsovereign portfolio. The 2011 results are discussed below. Nonsovereign loan and guarantee portfolio. ADB assigns a risk rating to each nonsovereign loan and guarantee. During 2011, ADBs weighted average risk rating improved from 7.1 (BB) to 6.3 (BB+). The improvement was mainly driven by disbursements to better rated projects, risk transfer agreements with stronger rated entities, and an improving economic climate in Asia (Figure 4). Refer to Note E of OCR Financial Statements for additional information. Publicly traded equity portfolio. The exposure of ADBs publicly traded equity portfolio declined from $491.6 million in 2010 to $297.7 million in 2011. The drop was because of equity exits during the year. Private equity portfolio. The private equity portfolio has two components: (i) direct equity investments, where ADB owns shares in investee companies; and (ii) private equity funds, where ADB has partial ownership of a private equity fund, managed by a fund manager, which takes equity stakes in investee companies. Nonsovereign concentrations. The three largest nonsovereign country exposures as of 31 December 2011 were the PRC (22.8%), India (14.5%), and Pakistan (8.5%). The exposure of the top three countries decreased from 48.6% in 2010 to 45.8% in 2011 (Table 13). All country exposures complied with ADBs credit limits. The nonsovereign portfolio is dominated by energy and finance (Table 14). ADB maintains higher exposures to these sectors because of the importance of infrastructure and the finance sector to economic development. To mitigate sector concentration, ADB conducts additional monitoring of and reporting on these sectors and employs specialists in these areas. Expected loss. Expected loss in the nonsovereign portfolio decreased in 2011 (Table 15). The primary driver of this decline was the upgrading of a number of transactions and countries. Credit risk in the treasury portfolio. Issuer default and counterparty default are credit risks that affect the treasury portfolio. Issuer default is the risk that a bond issuer will default on its interest or principal payments, while counterparty default is the risk that a counterparty will not meet its contractual obligations to ADB. 23
Table 16: Fixed income portfolio by asset class

2011 item
Government Government Guaranteed Government-Sponsored Enterprises and Supranationals Asset-Backed and Mortgage-Backed Securities Rated AAA Corporations total
Note: Numbers may not sum precisely because of rounding.
2010 %
44.2 24.0 22.4 9.4 100.0
$ million
7,332.4 3,982.7 3,722.7 1,567.9 16,605.7
$ million
5,672.2 4,476.9 3,067.9 934.9 1,320.4 15,472.2
%
36.7 28.9 19.8 6.0 8.5 100.0
To mitigate issuer and counterparty credit risks, ADB only transacts with financially sound institutions with ratings from at least two reputable external rating agencies. Moreover, the treasury portfolio is generally invested in conservative assets, such as money market instruments and government securities. In addition, ADB has established prudent exposure limits for its corporate investments, depository relationships, and other investments. ADB has strict counterparty eligibility criteria to mitigate counterparty credit risk arising through derivative transactions. In general, ADB will only undertake swap transactions with counterparties that meet the required minimum counterparty credit rating, have executed an International Swaps and Derivatives Association Master Agreement or its equivalent, and have signed a credit support annex. Under the credit support annex, derivative positions are marked to market daily, and the resulting exposures are generally collateralized by US dollar cash and/or US Treasuries. ADB also sets exposure limits for individual swap counterparties and monitors these limits against current and potential exposures. ADB enforces daily collateral calls as needed to ensure that counterparties meet their collateral obligations. The 2011 results are discussed below. The weighted average credit rating for the treasury portfolio was AA in 2011. About 98% of the portfolio was rated A or better. At 31 December 2011, no fixed-income instruments, derivatives, or other treasury exposures were past due or impaired, the same as in 2010. Deposits. ADB deposits funds only in institutions that have a minimum long-term average credit rating of A+ or short-term credit rating of A-1 and P-1. ADB maintains a watch list of institutions that it perceives as potentially riskier based on internal credit risk assessments. Moreover, the size of the deposit is limited by the counterpartys equity and creditworthiness. Generally, depository credit risk is low, and all deposits are with institutions rated A+ or better. Fixed income. ADB has a conservative policy towards fixed-income securities, and the credit risk is low. Sovereign and sovereign-guaranteed securities represent 91% of ADBs fixed-income assets. The remainder are in corporate bonds that are rated at least A (Table 16). ADB has monitored market developments closely, such as the US sovereign credit rating downgrade and the European sovereign debt crisis, and adjusted its risk exposures accordingly. ADBs mortgage-backed securities and asset-backed securities portfolios were liquidated shortly after the US credit rating downgrade in August 2011. Derivatives. Derivatives counterparty credit risk is low. All swap counterparties are rated at least A. The current exposure to counterparties rated A through A+ is generally fully collateralized, while the uncollateralized exposure to those rated AA and above are subject to specified thresholds. ADB maintains a watch list of institutions that it perceives as potentially riskier based on internal credit risk assessments. At the end of 2011, 87% of the marked-to-market exposure was collateralized. ADB significantly reduced its counterparty risk by moving to a higher rated cash custodian for cash collateral deposited against swaps exposures. Country exposure. At the end of 2011, treasury credit risk exposure was allocated across 29 countries with the largest exposure in Japan (Table 17).
24
Table 17: treasury country Exposure

2011 country
Japan United States Australia Germany France Others total
Note: Numbers may not sum precisely because of rounding.
2010 %
33.7 22.1 7.6 7.1 4.9 24.6 100.0
$ million
7,740.0 5,088.0 1,757.3 1,622.1 1,123.6 5,650.0 22,981.0
$ million
4,439.7 6,213.7 2,273.9 1,404.8 1,490.5 4,663.8 20,486.5
%
21.7 30.3 11.1 6.9 7.3 22.8 100.0
European exposure. Exposure to the European credits have been monitored by conducting daily surveillance of the rating and fair value of the exposure and has limited entering into new transactions. As of 31 December 2011, ADB held one Italian government bond with a notional amount of $85.0 million and associated interest rate swaps which ADB entered to hedge the fixed interest rate of its investment. ADB classified the bond as available for sale securities. in its financial statement. The fair value of the bond was $82.0 million, and the $3.0 million cumulative unrealized loss on the bonds was reported in the other comprehensive income. ADB recognized $14.1 million unrealized loss related to the interest rate swap for the year ending 31 December 2011.
Market Risk
Market risk is the risk of loss on financial instruments because of changes in market prices. ADB principally faces three forms of market risk: (i) equity price risk, which was discussed above with the nonsovereign portfolio; (ii) interest rate risk; and (iii) foreign exchange risk. Interest rate risk and foreign exchange risk are discussed in this section. Interest rate. Interest rate risk in the operations portfolio is hedged as the basis for borrowers interest payments are matched to ADBs borrowing expenses. Therefore, the borrower must assume or hedge the risk of fluctuating interest rates, whereas ADBs margins remain largely constant. ADB is primarily exposed to interest rate risk through the liquidity portfolio. ADB monitors and manages interest rate risks in the liquidity portfolio by employing various quantitative methods. It marks all positions to market, monitors interest rate risk metrics, and employs stress testing and scenario analysis. ADB uses duration and interest rate value-at-risk (VaR) to measure interest rate risk in the treasury portfolio. Duration is the estimated percentage change in the portfolios value in response to a 1% parallel change in interest rates. Interest rate VaR is a measure of possible loss at a given confidence level in a given time frame because of changes in interest rates. ADB uses a 95% confidence level and a 1-year horizon. In other words, ADB would expect to lose at least this amount once every 20 years because of fluctuations in interest rates. ADB uses duration and VaR to measure interest rate risk across the liquidity portfolio, with particular attention to the CLP, which is the most exposed to interest rate risk. Foreign exchange. ADB ensures that its operations have minimal exposure to exchange rate risk. In both the operations and treasury portfolios, ADB is required to match the currency of its assets with the currencies of liabilities and equity. Borrowed funds or funds to be invested may only be converted into other currencies provided that they are fully hedged through cross-currency swaps or forward exchange agreements. However, because of its multicurrency operations, ADB is exposed to fluctuations in reported US dollar results due to currency translation adjustments. ADB monitors VaR and duration, and performs stress testing to manage market risk in the investment portfolio. The major currencies of the CLP bear the majority of ADBs market risks and
25
Asian Development Bank Annual Report 2011 account for 66% of ADBs OCR, while major currencies account for 95% of the CLP. Major currencies include the US dollar, yen, euro, pound sterling, Australian dollar, and Canadian dollar. Value-at-risk. Aggregate VaR of major currencies of the CLP, which includes interest rate and foreign exchange risks, decreased from 4.1% in 2010 to 3.5% in 2011. This means that there is a 5% probability that the portfolio will lose more than 3.5% ($475.2 million) of its value over the next year. These potential loss estimates continued to decrease in 2011 in line with the decrease in portfolio duration. Duration. The major CLPs interest rate sensitivity, as reflected in its weighted portfolio duration, decreased from 2.6 years as of 2010 to 2.3 years as of 2011. Stress testing. ADB measures how sensitive the major CLP is to interest rate changes. If interest rates were to rise 2%, the major CLP portfolio would be expected to lose 4.5% ($621.0 million). ADB also uses scenario analysis to assess how the major CLP would respond to significant changes in market factors, such as those that have occurred in the past. Because of the high quality of ADBs investments, scenario analysis suggests that the treasury portfolio would appreciate during many stressed scenarios as demand for highly rated securities increases.
Liquidity Risk
Liquidity risk can arise if ADB is unable to raise funds to meet its financial and operational commitments. ADB maintains core liquidity to safeguard against a liquidity shortfall in case its access to the capital market is temporarily denied. The overriding objective of the liquidity policy is to enable ADB to obtain the most cost-efficient funding under both normal and stressed situations and manage liquidity optimally to achieve its development mission. The Board of Directors approved a revised liquidity policy framework in December 2011. The revised policy was designed to follow sound banking principles in supporting and sustaining ADBs superior financial strength. It redefined the prudential minimum liquidity as 45% of the 3-year net cash requirements. This represents the minimum amount of liquidity necessary for ADB to continue operations even if access to capital markets is temporarily denied. Maintaining the prudential minimum liquidity level is designed to enable ADB to cover normal net cash requirements for 18 months under the normal and stressed situations without borrowing. The liquidity levels and cash requirements are monitored on an ongoing basis and reviewed by the Board of Directors quarterly. The new policy allows for discretionary liquidity portfolio to maintain a debt funded sub-portfolio that will be excluded from the net cash requirements and prudential minimum liquidity calculations.
Operational Risk
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people, and systems; or from external events. ADB is exposed to many types of operational risk, which it mitigates by applying sound internal controls and monitoring areas of particular concern. In addition, ADB has rolled out operational risk self assessments in several departments for risk identification and assessment to ensure operational risks are managed effectively. In 2011, ADB also conducted a Business Impact Analysis to further strengthen business continuity, including business continuity of information technology infrastructure and at selected Resident Missions, to reduce the impact of disruptions.
Capital Adequacy
ADBs most significant risk is if a large portion of its loan portfolio were to default. Credit risk is measured in terms of both expected and unexpected losses. For expected losses, ADB holds loan loss reserves and provisions. For unexpected losses, ADB relies on its income-generating capacity and capital, which is a financial institutions ultimate protection against unexpected losses that may arise from credit and other risks. ADB principally uses stress testing to assess the capacity of its capital to absorb unexpected losses. The framework has two objectives. First, it measures ADBs ability to absorb income losses because of a credit shock. Through this monitoring, ADB reduces the probability that it would have to rely on shareholder support, such as additional paid-in capital or a capital call. As a result, ADB not only
26
Managements Discussion and Analysis protects its shareholders but also supports its AAA credit rating, which reduces ADBs borrowing costs and consequently its lending rates. Second, the framework evaluates ADBs ability to generate sufficient income to support loan growth after a credit shock. As a development institution, ADBs mandate becomes more important during a financial crisis when some DMCs may find their access to capital markets limited. This second requirement ensures that ADB will have the capacity to lend under such adverse conditions. For the stress test, ADB generates thousands of potential portfolio scenarios and imposes credit shocks that are large enough to account for 99% of those scenarios. ADB then assesses the impact of these shocks on its capital by modeling the ratio of equity to loans over the next 10 years. Throughout 2011, the stress test indicated that ADB had adequate capital to absorb the losses of a severe credit shock and to continue its development lending.
Asset and Liability Management

The objectives of asset and liability management for ADB are to safeguard ADBs net worth and capital adequacy, promote steady growth in ADBs risk-bearing capacity, and define sound financial policies to undertake acceptable levels of financial risks. The aim is to provide resources for developmental lending at the lowest and most stable funding cost to the borrowers, along with the most reasonable lending terms, while safeguarding ADBs financial strength. ADBs asset and liability management safeguards net worth from foreign exchange rate risks, protects net interest margin from fluctuations in interest rates, and provides sufficient liquidity to meet ADBs operations. ADB also adheres to cost passthrough pricing policy for loans to sovereign borrowers, and allocates the most cost-efficient borrowings to fund the loans. In 2006, ADB clarified and formalized its asset and liability management objectives and practices through a comprehensive policy framework approved by the Board. The framework guides all financial policies related to asset and liability management, including liquidity, investments, equity management, and capital adequacy.
Internal Control over Financial Reporting

In line with global best practices in corporate governance, ADBs Management has been assessing the effectiveness of its internal controls over financial reporting since 2008 using criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control Integrated Framework. ADB applied a risk-based evaluation framework for the 2011 assertion and attestation of the effectiveness of Internal Control over Financial Reporting for OCR and Special Funds, except for the ADB Institute (ADBI). The scope included a review of 49 business processes over financial reporting and four domains for the information technology general computer controls. In 2010, ADB expanded the testing to include trust funds. ADB staff across several departments and offices is responsible for (i) identifying and testing key controls and (ii) assessing and evaluating the design and operating effectiveness of the business processes. Concurrently in 2011, the external auditor performed an independent test of selected key controls and concurred with Management that ADB maintained effective internal control over financial reporting for OCR and Special Funds (except for the ADBI).
Critical Accounting Policies and Estimates

Significant accounting policies are contained in Note B of the OCR financial statements. As disclosed in the financial statements, management estimates the fair value of financial instruments. Since the estimates are based on judgment and available information, actual results may differ and might have a material impact on the financial statements. Fair value of financial instruments. Under statutory reporting, ADB carries its financial instruments and derivatives, as defined by ASC 815 and 825, on a fair value basis. These financial instruments include embedded derivatives that are valued and accounted for in the balance sheet as a whole. Fair values are usually based on quoted market prices. If market prices are not readily available, fair values are usually determined using market-based pricing models incorporating readily observable market data and require judgment and estimates. These are discussed in more detail in Note B of OCRs financial statements.
27
Asian Development Bank Annual Report 2011 The pricing models used to determine the fair value of ADBs financial instruments are based on discounted cash flow models. ADB reviews the pricing models to assess the appropriateness of assumptions to reflect the reasonable valuation of the financial instruments. In addition, the fair values derived from the models are subject to ongoing internal and external verification and review. The models use market-sourced inputs, such as interest rates, exchange rates, and option volatilities. The selection of these inputs may involve some judgment and may impact net income. ADB believes that the estimates of fair values are reasonable. Provision for loan losses and loan loss reserves. In 2006, the Board approved the revision of the loan loss provisioning methodology for ADBs nonsovereign operations to a risk-based model. Provision against loan losses for impaired loans reflects managements judgment and estimate of the present value of expected future cash flows discounted at the loans effective interest rate. ADB considers a loan impaired when, based on current information and events, ADB will probably be unable to collect all the amounts due according to the loans contractual terms. The provisioning estimate is done quarterly. In 2010, ADB refined the provisioning methodology to include collective provisioning for the nonsovereign portfolio. ADB uses an internal risk rating system to estimate expected loss for unimpaired loans. The probability of default is based on the historical default experience of sovereign borrowers to multilateral development institutions; for nonsovereign loans, it is based on Moodys Investors Service default data. A loan loss reserve is established in the equity section for the expected losses as an allocation of net income subject to the approval of the Board of Governors. Pension and other postretirement benefits. ADB provides staff retirement benefit and postretirement medical benefit plans for all staff members. Costs relating to net periodic benefit cost are allocated between OCR and the ADF based on the agreed cost sharing methodology. The underlying actuarial assumptions used to determine the projected benefit obligations, accumulated benefit obligations, and funded status associated with these plans are based on market interest rates, past experience, and managements best estimate of future benefit changes and economic conditions. For further details, refer to Notes to Financial StatementsNote OStaff Retirement Plan and Postretirement Medical Benefits.
SPECIAL FUNDS
ADB is authorized by its Charter to establish and administer Special Funds. These are the ADF, the TASF, the Japan Special Fund, the ADBI, the Asian Tsunami Fund (ATF), the Pakistan Earthquake Fund (PEF), the Regional Cooperation and Integration Fund, the Climate Change Fund, and the Asia Pacific Disaster Response Fund. Financial statements for each Special Fund are prepared in accordance with US GAAP except for the ADFs, which are special purpose financial statements.
Asian Development Fund

The ADF is ADBs concessional financing window for DMCs with per capita gross national income below the ADB operational cutoff and limited or low creditworthiness. It is the only multilateral source of concessional assistance dedicated exclusively to reducing poverty and improving the quality of life in Asia and the Pacific. The ADF has received contributions from 32 donors (regional and nonregional). Cofinancing with bilateral and multilateral development partners complements ADF resources. In August 2008, the Board of Governors adopted the resolution providing for the ninth replenishment of the ADF (ADF X) and the fourth regularized replenishment of the TASF. This became effective on 16 June 2009. The resolution provides for a substantial replenishment of the ADF to finance ADBs concessional program for 4 years from January 2009, and for a replenishment of the TASF in conjunction with the ADF replenishment to finance TA operations under the TASF. In June 2009, the Board of Directors approved the provision of an additional $400 million in assistance for ADF-only countries. In 2010, the Board approved the release of $162 million for the suspension of Afghanistans post-conflict phase out during 20112012. As of 31 December 2011, the total replenishment size of SDR7.6 billion ($12.0 billion) consisted
28
Managements Discussion and Analysis of SDR7.4 billion for ADF X and SDR0.2 billion for the TASF. About 35% of the replenishment will be financed from new donor contributions totaling SDR2.7 billion ($4.2 billion equivalent). Currency management. ADB revised the currency management framework for the ADF in 2006. The previous practice of managing ADF resources in as many as 15 currencies was discontinued, and an approach based on an SDR basket of currencies (US dollar, euro, pound sterling, and yen) was introduced. ADF donor contributions and loan reflows received in currencies that are not part of the SDR basket are converted into one of the currencies in the basket to maintain the SDR-based liquidity portfolio. In addition, the borrowers obligations for new ADF loans are determined in SDR. Starting in 2008, ADB extended the full-fledged SDR approach to ADF legacy loans by providing ADF borrowers the option to convert their existing liability (i.e., disbursed and outstanding loan balance) in various currencies into SDR, while the undisbursed portions were to be treated as new loans redenominated in SDR. As of 31 December 2011, 17 of 30 borrowing members have signified their agreement to the conversion. The outstanding balance of their SDR-converted loans amounted to $13.5 billion. Framework for grants and hard-term facility. In September 2007, the Board of Directors approved the ADF grant framework, which limits grant eligibility to ADF-only countries and introduced a new hard-term ADF lending facility. The facility will have a fixed interest rate of 150 basis points below the weighted average of the 10-year fixed swap rates of the SDR basket of currencies plus the OCR lending spread, or the current ADF rate, whichever is higher. Other terms are similar to those of regular ADF loans. In general, blend countries with per capita income not exceeding the International Development Association (IDA) operational cutoff for more than 2 consecutive years and with an active OCR lending program are eligible to borrow from this new facility. The interest rate that is fixed for the life of hard-term loans approved during the year is reset every January. For hard-term ADF loans approved in 2011, the interest rate was set at 2.02% for the life of the loan (2010: 2.22%). Three loans were approved under this facility in 2011. Liquidity management. In 2008, the ADF began managing its liquidity assets under two tranches to allow for the optimal use of financial resources. The main objective of the first tranche is to ensure adequate liquidity is available to meet the expected cash requirements. The second tranche comprises the prudential minimum liquidity the ADF should hold to meet unexpected demands and any usable liquidity for future commitments. This approach ensures that liquidity is managed transparently and efficiently. Enhanced heavily indebted poor countries initiative. In response to ADF donors request, the ADB Board of Governors adopted a resolution on 7 April 2008 for ADB to participate in Heavily Indebted Poor Countries (HIPC) debt relief and to provide Afghanistan with debt relief. The estimated principal amount of Afghanistans ADF debt to be forgiven and charged against ADF income was $82.4 million. Launched in 1996 by the IDA and the International Monetary Fund (IMF), the HIPC initiative provides partial debt relief to poor countries with levels of external debt that severely burden export earnings or public finance. In 1999, the initiative was enhanced to enable more countries to qualify for HIPC relief. The IDA and the IMF reported that several ADF borrowers met the income and indebtedness criteria of the HIPC initiative and were potentially eligible for HIPC debt relief.5 Of these, only Afghanistan became eligible and reached the decision point under the HIPC initiative on 9 July 2007. The decision point is where a HIPC country, having met certain conditions,6 becomes eligible to receive interim debt relief on a provisional basis following the ADB Board of Directors approval to provide debt relief under the HIPC initiative. Debt relief has been delivered by partial reduction of debt service payments as they come due. On 26 January 2010, the executive boards of the IDA and the IMF agreed that Afghanistan had reached the completion point under the HIPC initiative. Thus, debt relief to Afghanistan under the initiative had become irrevocable. The amount of debt relief including principal and interest was revised to $106.0 million and was to be provided through a reduction of Afghanistans debt service from
5
These included Bhutan, Kyrgyz Republic, Lao Peoples Democratic Republic (Lao PDR), Nepal, and Sri Lanka. Subsequently, Afghanistan was assessed to be potentially eligible for HIPC debt relief. At that time, the authorities of Bhutan, Lao PDR, and Sri Lanka had indicated to the IMF and World Bank staff that they did not wish to avail of the HIPC initiative. In the absence of data, no debt assessment could be made for Myanmar. The authorities of Myanmar also indicated that they could not provide the data needed for the assessment and that they did not want to benefit from debt relief under the HIPC initiative at that time. The conditions are that an HIPC country has a track record of macroeconomic stability and an interim poverty reduction strategy in place and has been cleared of any outstanding arrears.
29
Table 18: asian Development Fund commitment authoritya

31 December 2011 and 2010 ($ million)
item
Carryover of ADF IX Commitment Authority ADF X Contributions ADF IX Contributions ADF VIII Contributions Reflow-based Resources OCR Net Income Transfer Savings and Cancellations Credits from Accelerated Note Encashment Program Total ADF X Commitment Authority Loans and Grants Committed aDF commitment authority available for Future commitments
b
2011
121.6 2,818.2c 135.1d 8.2 360.0 830.5 0.9g 10,161.2 8,789.9 1,371.3
e
2010
122.0 1,802.1 111.8 8.2 4,520.8 240.0 650.0 7,454.8 6,306.6 1,148.2
5,886.6f
ADF = Asian Development Fund, OCR = ordinary capital resources. Note: Numbers may not sum precisely because of rounding. a The Asian Development Bank monitors the ADF commitment authority based on special drawing rights. All reported figures are based on US dollar to special drawing rights as of 31 December 2011. b The US dollar equivalent of SDR79.2 million at the year-end exchange rate which reflects the cumulative commitment authority for ADF IX. c Following the partial payment of a qualified contributor, amounts from the installment payments of donors who exercised their pro rata rights have been withheld for operational commitment. d Represents the (i) balance of the third installment and 27.59% of the fourth installment payment of the United States, (ii) corresponding release of amounts withheld due to the pro rata exercise, and (iii) Italys full payment of the balance of its contribution. e Represents 99.16% of Austrias fourth installment payment which was released and made available for operational commitment. f Includes the (i) liquidity drawdown of SDR1.1 billion, (ii) additional liquidity of SDR270 million released from the foreign exchange provision, and (iii) additional assistance to Afghanistan of $162 million as a result of the suspension of the post-conflict phase out. g Represents the additional resources from the accelerated note encashment of the remaining balance of Italys ADF IX contribution.
July 2010 to February 2028. As of December 2011, the ADF had delivered $3.6 million under this arrangement, bringing the balance to $102.4 million. Contributed resources. The total replenishment of SDR7.6 billion for ADF X comprise SDR4.6 billion financed from internal resources, SDR2.7 billion from new donor contributions, and SDR0.3 billion from net income transfers from OCR. This covers 20092012, which became effective in June 2009 after instruments of contribution deposited with ADB for unqualified contribution exceeded 50% of all pledged contributions. As of 31 December 2011, 29 donors had contributed a total of $3.7 billion, of which $3.1 billion (including the allocation to the TASF) had been received and made available for operational commitments. The remaining unpaid contributions under ADF VIII and ADF IX as of 31 December 2011 totaled $185.6 million.7 (For details of amounts released for operational commitment in 2011, see the column labeled Addition in Statistical Annex 23.) The commitment authority available for future commitments comprises the resources available to the ADF for its future lending activities in the form of loans and grants. These resources are derived from donor contributions, reflow-based resources, and net income transfers from OCR. The balance of the commitment authority available for operations as of 31 December 2011 was $1.4 billion, compared with $1.1 billion as of 31 December 2010 (Table 18). In May 2011, the Board of Governors approved the transfer of $120.0 million to the ADF as part of OCRs net income allocation (2010: $120.0 million). In addition, $830.5 million from loan and grant savings and cancellations were included in the commitment authority. This resulted from Managements continued assessment of opportunities to free committed resources through cancellations of unused loan and grant balances. During 2011, deposited installments under ADF X amounted to $1,140.9 million, ADF promissory notes encashed in 2011 totaled $718.8 million, of which $87.2 million was transferred to the TASF.
At US dollar equivalent at 31 December 2011 exchange rates.
30
Managements Discussion and Analysis Loan approvals, disbursements, and repayments. In 2011, 39 ADF loans totaling $2.0 billion were approved compared with 51 ADF loans totaling $2.2 billion in 2010. Disbursements during 2011 totaled $1.4 billion, a decrease of 11.8% from $1.6 billion in 2010. At the end of 2011, cumulative disbursements from ADF resources were $32.3 billion. Loan repayments during the year totaled $1.1 billion. At the end of 2011, outstanding ADF loans amounted to $29.5 billion. Status of loans. At the end of 2011, 28 sovereign loans to Myanmar with total principal outstanding of $642.3 million were in non-accrual status. These represented about 2.2% of the total outstanding ADF loans. Investment portfolio position. The ADF investment portfolio8 totaled $6.1 billion at the end of 2011 compared with $5.6 billion at the end of 2010. About 33% of the portfolio was invested in bank deposits, and 67% was invested in fixed-income securities. The annualized rate of return on ADF investments including unrealized gains and losses was 1.5% (2010: 1.6%). Grants. In 2011, ADB approved 16 grants (2010: 34) totaling $596.8 million (2010: $967.2 million), while 34 grants (2010: 21) totaling $1,120.6 million (2010: $651.8 million) became effective, net of $3.6 million (2010: $6.0 million) in write-backs of undisbursed commitments for completed grant projects. Official cofinancing for loans and grants. In 2011, $1,510.2 million (2010: $720.0 million) was mobilized in official loan and grant cofinancing for 20 ADF-financed projects (2010: 22) totaling $1,316.1 million (2010: $721.2 million).
Technical Assistance Special Fund

The TASF was established to provide TA on a grant basis to ADBs DMCs and regional TA. In August 2008, as part of the ADF X replenishment, the donors agreed to contribute 3% of the total replenishment as the fourth replenishment of the TASF in consideration of the demand estimate and the availability of funds from other sources. The replenishment covers 20092012. Contributed resources. As of 31 December 2011, 29 donors had committed a total of $328.2 million to the TASF as part of the ADF X and the fourth regularized replenishment of the TASF. Of the total commitment, $217.4 million had been received. During 2011, Pakistan made a direct voluntary contribution of $0.07 million. In addition, $40.0 million was allocated to the TASF as part of the OCRs net income allocation and a total of $41.7 million for the third and fourth regularized replenishments of the TASF. At the end of 2011, TASF resources totaled $1,844.8 million, of which $1,619.7 million was committed, leaving an uncommitted balance of $225.1 million (Statistical Annex 24). Operations. TA commitments (approved and effective) decreased from $134.7 million in 2010 to $111.9 million in 2011 for 172 TA projects that were made effective during the year, net of $19.0 million (2010: $11.8 million) in write-backs of undisbursed commitments for completed and cancelled TA projects. Undisbursed commitments for TA increased to $306.7 million as of
Table 19: technical assistance special Fund
Cumulative Resources ($ million)
item
Regularized Replenishment Contributions Allocations from OCR Net Income Direct Voluntary Contributions Income from Investment and Other Sources Transfers from the TASF to the ADF total
2011
762.8 809.0 89.9 186.6 (3.5) 1,844.8
2010
721.1 769.0 89.9 183.2 (3.5) 1,759.7
( ) = negative, ADF = Asian Development Fund, OCR = ordinary capital resources, TASF = Technical Assistance Special Fund.
Includes securities purchased under resale arrangement.
31
Asian Development Bank Annual Report 2011 31 December 2011 ($298.6 million as of 31 December 2010). The TASF financed 39.0% of all TA activities approved in 2011. Investment position. As of 31 December 2011, total investment portfolio, including securities purchased under resale arrangement, amounted to $391.9 million, compared with $362.0 million as of the end of 2010. With the increase in the average volume of investments, revenue from investments was $3.34 million for 2011 (2010: $2.49 million).
Japan Special Fund

The Japan Special Fund was established in 1988 when ADB, acting as the administrator, entered into a financial arrangement with the Government of Japan, which agreed to make the initial contribution to help ADBs DMCs restructure their economies and broaden the scope of opportunities for new investments, mainly through TA operations. Contributed resources. As of 31 December 2011, Japans cumulative contribution to the fund since its inception in 1988 amounted to 112.9 billion ($973.7 million equivalent), comprising regular contributions of 94.8 billion ($822.9 million equivalent) and supplementary contributions of 18.1 billion ($150.8 million equivalent). The uncommitted balance, including approved TA that is not yet effective, was $57.4 million as of 31 December 2011. Operations. There were no new TA projects approved, and one project amounting to $0.7 million was made effective in 2011 (2010: seven TA approvals for $11.7 million; 22 TA made effective for $23.3 million). The balance of undisbursed commitments as of 31 December 2011 was $38.4 million, compared with $72.5 million as of the end of 2010. Investment position. As of 31 December 2011, total investment portfolio amounted to $93.9 million, lower than the balance of $121.4 million as of 31 December 2010. With the low interest rate environment, revenue from investments decreased from $0.4 million in 2010 to $0.2 million in 2011.
ADB Institute
The ADBI was established in 1996 as a subsidiary body of ADB. The ADBIs objectives are to identify effective development strategies and capacity improvements for sound development management in DMCs. Its operating costs are met by the ADBI, which ADB administers in accordance with the Statute of the Institute. In June 2011, the Government of Japan made its 17th contribution amounting to 675.1 million ($8.4 million equivalent), and the Government of Australia made its 2nd contribution for A$0.5 million ($0.5 million equivalent). In December 2011, Japan committed its 18th contribution for 675.1 million ($8.8 million equivalent), which was reported as due from contributors. As of 31 December 2011, cumulative contributions committed to the ADBI amounted to 20.0 billion and A$1.0 million (about $183.7 million equivalent), excluding translation adjustments. Of the total contributions received, $174.0 million had been used by the end of 2011 mainly for research and capacity building activities, including (i) organizing symposia, forums, and training sessions; (ii) preparing research reports, publications, and websites; and (iii) associated administrative expenses. The balance of net current assets (excluding property, furniture, and equipment) available for future projects and programs was about $9.7 million.
Asian Tsunami Fund

The ATF was established on 11 February 2005 in response to the special circumstances surrounding the DMCs that were stricken by the tsunami on 26 December 2004. The ATF was terminated on 31 December 2010, and all projects were financially completed as of 31 December 2011. Contributed resources. ADB contributed $600 million to the fund, of which $50 million unutilized funds were transferred back to OCR ($40 million in November 2005 and $10 million in June 2006) and to the Asia Pacific Disaster Response Fund ($40 million in May 2009). In addition, Australia contributed $3.8 million and Luxembourg $1.0 million. As of 31 December 2011, ATF resources
32
Managements Discussion and Analysis totaled $587.0 million, $580.1 million of which has been utilized, leaving an uncommitted balance of $6.9 million ($2.6 million as of 31 December 2010). Operations. There were no undisbursed commitments as of 31 December 2011, compared with $16.5 million, inclusive of grant advances, as of the end of 2010. During the year, a total of $4.6 million was written back (2010: nil). Investment position. As of 31 December 2011, total investment portfolio amounted to $6.6 million ($19.0 million as of 31 December 2010). With a smaller portfolio and lower yield on time deposits, the ATF generated income of $0.003 million in 2011 (2010: $0.1 million).
Pakistan Earthquake Fund

The PEF was established in November 2005 in response to the special needs of Pakistan following the earthquake on 8 October 2005. The dedicated fund is to deliver emergency grant financing for investment and TA projects to support immediate reconstruction, rehabilitation, and associated development activities. The PEF was terminated on 30 June 2011, but actions necessary to wind up its activities are continuing. Contributed resources. ADB contributed $80.0 million to the fund. In addition, Australia contributed $15.0 million; Belgium, $14.3 million; Finland, $12.3 million; and Norway, $20.0 million. As of 31 December 2011, PEF resources totaled $146.4 million, of which $141.9 million had been utilized, leaving an uncommitted balance of $4.6 million ($3.9 million as of 31 December 2010). Operations. No new TA or grants were approved or made effective in 2011 and 2010. The balance of undisbursed commitments inclusive of grant advances as of 31 December 2011 amounted to $16.8 million, compared with $26.9 million as of the end of 2010. Investment position. As of 31 December 2011, total investment portfolio amounted to $20.8 million ($30.3 million as of 31 December 2010). Because of its smaller portfolio, revenues decreased to $1.0 million in 2011 (2010: $1.3 million).
Regional Cooperation and Integration Fund

The Regional Cooperation and Integration Fund was established in February 2007 in response to the increasing demand for regional cooperation and integration activities among ADBs member countries in Asia and the Pacific. Its main objective is to improve regional cooperation and integration by facilitating the pooling and provision of additional financial and knowledge resources. Contributed resources. ADB contributed $40.0 million to the fund as part of the 2006 OCR net income allocation. In May 2010, $10.0 million was transferred to the fund from OCR allocable net income. As of 31 December 2011, the funds resources totaled $53.1 million, of which $48.9 million had been utilized, leaving an uncommitted balance of $4.1 million ($10.4 million as of 31 December 2010). Operations. In 2011, seven TA projects totaling $5.7 million became effective (2010: 13 TA and 1 supplementary approval for $12.0 million), net of $0.3 million (2010: $0.1 million) savings on financially completed TA projects. The balance of undisbursed commitments as of 31 December 2011 amounted to $24.0 million, compared with $29.4 million as of the end of 2010. Investment position. As of 31 December 2011, total investment portfolio amounted to $26.1 million ($37.4 million as of 31 December 2010). Revenue from investments for 2011 was $0.06 million (2010: $0.1 million), reflecting the low interest rate environment.
Climate Change Fund

The Climate Change Fund was established in April 2008 to facilitate greater investments in DMCs to address the causes and consequences of climate change alongside ADBs assistance in related sectors. Contributed resources. ADB provided the initial contribution of $40.0 million in May 2008, as part of OCRs 2007 net income allocation. In May 2010, $10.0 million was transferred to the fund from OCR allocable net income. As of 31 December 2011, the funds resources totaled $51.1 million,
33
Asian Development Bank Annual Report 2011 of which $36.9 million had been utilized, leaving an uncommitted balance of $14.2 million ($19.1 million as of 31 December 2010). Operations. In 2011, net TA and/or grant expenses totaled $4.6 million, comprising two TAs, two grants, one supplementary TA approval totaling $5.1 million that became effective, and a $0.4 million write back for financially completed and/or cancelled projects (2010: six TA, three grants, and two supplementary TA approvals for a total of $17.2 million). The balance of undisbursed commitments inclusive of grant advances as of 31 December 2011 amounted to $23.7 million, compared with $24.4 million as of the end of 2010. Investment position. As of 31 December 2011, total investment portfolio amounted to $37.7 million ($43.4 million as of 31 December 2010). With the lower yield from US dollar placements, revenue from investments decreased to $0.08 million in 2011 (2010: $0.1 million).
Asia Pacific Disaster Response Fund

The Asia Pacific Disaster Response Fund was established on 1 April 2009 to provide timely incremental grant resources to DMCs affected by natural disasters. Contributed resources. In May 2009, $40.0 million was transferred from the ATF as the initial resources of the Asia Pacific Disaster Response Fund. With accumulated income from investment and other sources of $0.2 million, total resources of the fund as of 31 December 2011 amounted to $40.2 million, of which $27.8 million had been utilized, leaving an uncommitted balance of $12.4 million. Operations. In 2011, five grants totaling $15.0 million became effective (2010: two grants totaling $5.5 million). The balance of undisbursed commitments inclusive of grant advances as of 31 December 2011 amounted to $3.1 million (2010: nil). Investment position. As of 31 December 2011, total investment portfolio amounted to $11.2 million ($20.1 million as of 31 December 2010). Total revenue from investments for 2011 was $0.03 million (2010: $0.1 million).
GRANT COFINANCING
Trust funds and project-specific grants are key instruments to mobilize and channel financial resources from external sources to finance TA and components of investment projects. They play an important role in complementing ADBs own resources. Multilateral, bilateral, and private sector partners have contributed more than $4.3 billion in grants to ADB operations (Table 20). In 2011, grant cofinancing for ADB approved projects totaled $1,182.9 million, comprising $211.4 million for 133 TA projects and $971.5 million for components of 27 investment projects. By the end of 2011, ADB was administering 36 trust funds, comprising 29 stand-alone trust funds9 and 7 trust funds established under financing partnership facilities. Of these, 24 have balances totaling $382.0 million in grants. Additional grant resources from external partners totaled $253.6 million in 2011, comprising $82.6 million in new contributions and $171.0 million in replenishments to existing trust funds. New contributions totaling $1.3 million were provided to the Fourth High Level Forum on Aid Effectiveness Trust Fund by the governments of Australia, Canada, Finland, France, Germany, Ireland, Luxembourg, the Netherlands, and Switzerland; and the African Development Bank, the Arab Fund, and the Global Fund to Fight Aids, Tuberculosis and Malaria. The Afghanistan Infrastructure Trust Fund received $56.3 million from the government of the United Kingdom and $20.0 million from the
Trust funds not related to financing partnership facilities and including the Japan Scholarship Program.
34
Managements Discussion and Analysis government of Japan. The government of Switzerland provided $5.0 million for the multi-donor trust fund under the Water Financing Partnership Facility. The following replenishments were also provided: (i) (ii) (iii) (iv) (v) (vi) (vii) $22.3 million from the Government of Australia for the multi-donor Clean Energy Fund under the Clean Energy Financing Partnership Facility and the multi-donor trust fund under the Water Financing Partnership Facility; $4.0 million from the Government of Austria for the multi-donor trust fund under the Water Financing Partnership Facility and for technical support under the Carbon Market Initiative; $76.9 million from the Government of Japan for the Asian Clean Energy Fund under the Clean Energy Financing Partnership Facility, Japan Fund for Poverty Reduction, and Japan Scholarship Program; $6.0 million from the Government of the Republic of Korea for the e-Asia and Knowledge Partnership Fund; $2.1 million from the Government of Luxembourg for the Financial Sector Development Partnership Fund; $8.3 million from the Government of Norway for the multi-donor Clean Energy Fund under the Clean Energy Financing Partnership Facility; and $7.2 million from the Government of Sweden for the Urban Environmental Infrastructure Fund under the Urban Financing Partnership Facility.
Additional grants were also received from the Climate Investment Fund for $19.4 million and the Global Environment Fund for $24.8 million.
Japan Fund for Poverty Reduction

The Government of Japan established the Japan Fund for Poverty Reduction (JFPR) in May 2000 to provide grants for projects supporting poverty reduction and related social development activities that can add value to projects financed by ADB. In 2011, the JFPR expanded its scope of grant assistance to provide TA grants in addition to project grants. As of the end of 2011, JFPR funds made available totaled about $504.3 million. The Government of Japan had approved 148 JFPR grant projects (equivalent to $374.9 million) and 86 JFPR TA projects (equivalent to $89.8 million). ADB had approved 145 JFPR grant projects (equivalent to $370.5 million) and 74 JFPR TA projects (equivalent to $72.8 million).
Japan Scholarship Program

The Japan Scholarship Program (JSP) was established in 1988 to provide an opportunity for wellqualified citizens of DMCs to undertake postgraduate studies in economics, management, science and technology, and other development-related fields at selected educational institutions in Asia and the Pacific. The JSP is funded by the Government of Japan and administered by ADB. In 2011, the JSP had 27 participating institutions in 10 countries. Between 1988 and 2011, Japan contributed $125.6 million, and 2,823 scholarships were awarded to recipients from 35 members. Of the total, 2,502 have completed their courses. Women have received 985 scholarships. An average of 150 new scholarships a year have been awarded in the past 10 years.
35
Table 20: schedule of contributions and net assets grants from External sources
As of 31 December 2011 ($ million)
item
administered by aDB Country Australia Austria Belgium Brunei Darussalam Cambodia Canada Peoples Republic of China Denmark European Community Finland France Germany India Indonesia Ireland Italy Japanb Republic of Korea Lao Peoples Democratic Republic Luxembourg Malaysia Myanmar Netherlands New Zealand Norway Philippines Portugal Singapore Spain Sweden Switzerland Thailand United Kingdom and Northern Ireland United States Viet Nam Subtotal Others Cities Alliance Clean Technology Fund Fourth High Level Forum on Aid Effectiveness Trust Fund Future Carbon Fund Global Environment Facility Special Climate Change Fund International Fund for Agricultural Development Islamic Financial Services Board Kreditanstalt fr Wiederaufbau (KfW) Nordic Development Fund Private Sector and Foundations Public Private Infrastructure Advisory Facility Strategic Climate Fund Trust Fund for Forest United Nations Childrens Fund United Nations Development Programme Subtotal not administered by aDB Country Switzerland Kuwait Subtotal grand total
contribution
net assetsa
448.4 15.3 49.2 5.9 0.1 132.2 220.1 24.9 273.8 79.1 35.9 0.1 1.0 12.6 2.4 2.2 971.0 153.5 0.1 22.0 12.6 0.1 356.6 31.7 138.2 12.6 12.7 12.6 55.8 191.2 50.1 12.6 503.6 3.4 1.1 3,844.7 0.5 2.9 0.2 35.0 140.9 0.1 22.3 0.4 0.4 17.7 4.6 0.6 40.6 16.3 0.2 111.0 393.5
131.5 4.2 44.7 5.6 0.1 11.8 203.3 3.2 22.6 41.4 2.7 0.1 (0.0) 0.4 453.9 130.4 0.1 17.1 12.7 0.1 40.8 0.9 35.9 6.4 12.0 12.7 37.2 61.0 22.8 12.7 113.3 0.3 1.1 1,442.8 0.0 2.5 0.2 33.8 12.2 0.0 0.0 0.1 (0.0) 0.3 0.3 0.0 34.5 0.5 0.0 84.4
19.0 14.0 33.0 4,271.3
1,527.2
= nil, ( ) = negative, ADB = Asian Development Bank. Notes: (i) Numbers may not sum precisely because of rounding. (ii) 0.0 = amount less than $0.05 million. a Excludes projects approved but not yet effective. b Includes Japan Fund for Poverty Reduction, Japan Scholarship Program, Japan Fund for Information and Communication Technology, and Japan Fund for Public Policy Training.
36
Appendix: condensed Management Reporting Balance sheets

As of 31 December 2011 and 2010 ($ thousand)
2011 statutory Reporting Basis 187,989 21,625,785 330,044 395,498 49,910,812 29,871 970,622 31,373,104 6,220,207 2,266,123 113,310,055 58,834,767 27,465,365 6,576,366 1,942,954 330,820 1,626,244 96,776,516 4,657,781 (595,806) 10,459,995 245,948 200,100 1,131,756 261,300 593,735 (421,270) 16,533,539 113,310,055
b
2010 Management Reporting Basis 187,989 21,625,785 330,044 395,498 49,910,812 29,871 893,715 26,813,618 6,091,307 2,845,114 109,123,753 57,892,941 24,293,752 6,297,136 1,942,954 330,820 1,626,244 92,383,847 5,236,772 (595,806) 10,459,108 245,948 200,100 1,131,756 570,853 (508,825) 16,739,906 109,123,753 Management Reporting Basis 114,648 18,370,852 707,851 318,228 46,116,131 (10,936) 1,048,489 26,318,850 1,581,208 2,507,447 97,094,640 52,623,262 22,786,794 1,753,375 1,588,350 714,490 1,749,535 81,215,806 4,255,678 (419,186) 10,032,097 230,226 246,000 1,131,756 536,710 (134,447) 15,878,834 97,094,640
item Due from banks Investments and accrued income Securities transferred under repurchase agreement Securities purchased under resale arrangement Loans outstanding and accrued interest Allowance for loan losses and unamortized net loan origination costs Equity investments Receivable from swaps Borrowings Others Other assets tOtaL Borrowings and accrued interest Payable for swaps Borrowings Others Payable for swap related collateral Payable under securities repurchase agreement Accounts payable and other liabilities total Liabilities Paid-in capital Net notional maintenance of value receivable Ordinary reserve Special reserve Loan loss reserve Surplus Cumulative revaluation adjustments account Net income Accumulated other comprehensive loss total Equity tOtaL
adjustmentsa (76,907) (4,559,486) (128,900) 578,991 (4,186,302) (941,826) (3,171,613) (279,230) (4,392,669) 578,991 (887) (261,300) (22,882) (87,555) 206,367 (4,186,302)
= nil, ( ) = negative. a Includes reversal of ASC 815 and 825 effects, ADBs share in unrealized gains or losses from equity investments accounted under the equity method, and nonnegotiable, noninterest-bearing demand obligations on account of subscribed capital. b Net income after appropriation of guarantee fees to the Special Reserve.
37
Financial Statements
Ordinary Capital Resources
Ordinary capital resOurces

MANAGEMENTS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING The management of Asian Development Bank (ADB) is responsible for establishing and maintaining adequate internal control over financial reporting. ADBs internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles in the United States of America. ADBs internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of ADB; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles in the United States of America, and that receipts and expenditures of ADB are being made only in accordance with authorizations of management and directors of ADB; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of ADBs assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. ADBs management assessed the effectiveness of ADBs internal control over financial reporting as of 31 December 2011. In making this assessment, ADBs management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control Integrated Framework. Based on that assessment, management believes that as of 31 December 2011, ADBs internal control over financial reporting is effective based upon the criteria established in Internal Control Integrated Framework.
Haruhiko Kuroda President
Thierry de Longuemar Vice-President (Finance and Administration)
Hiroshi Fukukawa Officer-in-Charge, Controllers Department 14 March 2012
39
Deloitte Touche LLP Certified Public Accountants Unique Entity No. T08LL0721A 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 Tel: +65 6224 8288 Fax: +65 6538 6166 www.deloitte.com/sg
INDEPENDENT AUDITORS REPORT To the Board of Directors and the Board of Governors of Asian Development Bank We have audited managements assertion, included in the accompanying Managements Report on Internal Control over Financial Reporting, that Asian Development Bank (ADB) maintained effective internal control over financial reporting as of December 31, 2011, based on the criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. ADBs management is responsible for maintaining effective internal control over financial reporting and for its assertion of the effectiveness of internal control over financial reporting, included in the accompanying Managements Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on managements assertion based on our audit. We conducted our audit in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. ADBs internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America. ADBs internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of ADB; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and that receipts and expenditures of ADB are being made only in accordance with authorizations of management and directors of ADB; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of ADBs assets that could have a material effect on the financial statements.
Deloitte Touche LLP (Unique Entity No. T08LL0721A) is an accounting limited liability partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A).
40
Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected and corrected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. In our opinion, managements assertion that ADB maintained effective internal control over financial reporting as of December 31, 2011, is fairly stated, in all material respects, based on the criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. We have also audited, in accordance with auditing standards generally accepted in the United States of America, the accompanying balance sheet of Asian Development Bank (ADB) Ordinary Capital Resources as of December 31, 2011 and 2010 and the related statements of income and expenses, comprehensive income, changes in capital and reserves and cash flows, for each of the years in the two-year period ended December 31, 2011 and our report dated March 14, 2012 expressed an unqualified opinion on those financial statements.
Public Accountants and Certified Public Accountants Singapore March 14, 2012
41
INDEPENDENT AUDITORS REPORT To the Board of Directors and the Board of Governors of Asian Development Bank We have audited the accompanying balance sheet of Asian Development Bank (ADB) Ordinary Capital Resources as of December 31, 2011 and 2010 and the related statements of income and expenses, comprehensive income, changes in capital and reserves and cash flows, for each of the years in the two-year period ended December 31, 2011. These financial statements are the responsibility of ADBs management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of ADB Ordinary Capital Resources as of December 31, 2011 and 2010, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2011 in conformity with accounting principles generally accepted in the United States of America. Our audits were conducted for the purpose of forming an opinion on the basic 2011 and 2010 financial statements taken as a whole. The summary statement of loans and summary statement of borrowings as of December 31, 2011 and 2010, and statement of subscriptions to capital stock and voting power as of December 31, 2011, are presented for the purpose of additional analysis and are not a required part of the basic financial statements. These schedules are the responsibility of ADBs management. Such 2011 and 2010 schedules have been subjected to the auditing procedures applied in our audit of the basic financial statements and, in our opinion are fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole.
42
We have also audited, in accordance with attestation standards established by the American Institute of Certified Public Accountants, managements assertion that ADB maintained effective internal control over financial reporting as of December 31, 2011, based on the criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 14, 2012 expressed an unqualified opinion on managements assertion that ADB maintained effective internal control over financial reporting.
43
asian DEVELOpMEnt BanKORDinaRy capitaL REsOURcEs

BALANCE SHEET 31 December 2011 and 2010 Expressed in thousands of United states Dollars
assEts 2011 DUE FROM BANKS (Note C) INVESTMENTS (Notes C, D, L, and P) Government or government-guaranteed obligations Time deposits Other securities SECURITIES TRANSFERRED UNDER REPURCHASE AGREEMENT (Note P) SECURITIES PURCHASED UNDER RESALE ARRANGEMENT (Note P) LOANS OUTSTANDING (OCR-6) (Notes A, E, and P) (Including ASC 815 adjustment of nil 2011 and $278 2010; net unamortized loan origination costs of $64,901 2011 and $53,441 2010) Sovereign Nonsovereign Lessallowance for loan losses EQUITY INVESTMENTS (Notes A, G, and P) ACCRUED INTEREST RECEIVABLE Investments Loans RECEIVABLE FROM SWAPS (Notes H and P) Borrowings Others OTHER ASSETS Property, furniture, and equipment (Note I) Investment related receivables (Note D) Swap related collateral (Note H) Miscellaneous (Note N) 161,451 2,428 1,942,954 159,290 2,266,123 161,177 272,544 1,588,350 144,246 2,166,317 31,373,104 6,220,207 37,593,311 29,475,685 1,781,058 31,256,743 117,516 181,423 298,939 117,493 183,534 301,027 47,052,649 2,741,641 49,794,290 35,030 49,759,260 970,622 43,634,265 2,352,051 45,986,316 42,505 45,943,811 1,108,198 $19,156,304 1,151,963 1,200,002 21,508,269 $13,842,500 2,285,773 2,125,086 18,253,359 $ 187,989 2010 $ 114,648
330,044
707,851
395,498
318,228
tOtaL
The accompanying notes are an integral part of these financial statements (OCR-9).
$113,310,055
$100,170,182
44
Ordinary Capital Resources OcR-1
cOntinUED
LiaBiLitiEs, capitaL, anD REsERVEs 2011 BORROWINGS (OCR-7) (Notes H, J, and P) At amortized cost At fair value ACCRUED INTEREST ON BORROWINGS PAYABLE FOR SWAPS (Notes H, J, and P) Borrowings Others PAYABLE UNDER SECURITIES REPURCHASE AGREEMENT ACCOUNTS PAYABLE AND OTHER LIABILITIES Investment related payables (Note D) Payable for swap related collateral (Note H) Undisbursed technical assistance commitments (Note M) Accrued pension and postretirement medical benefit costs (Note O) Miscellaneous (Notes F, I, and N) TOTAL LIABILITIES CAPITAL AND RESERVES (OCR-4) Capital stock (OCR-8) (Note K) Authorized (SDR106,389,330,000 2011 and 2010) Subscribed (SDR105,835,800,000 2011; SDR93,472,010,000 2010) Lesscallable shares subscribed Paid-in shares subscribed Lesssubscription installments not due Subscription installments matured Lesscapital transferred to the Asian Development Fund and discount 162,486,521 154,335,557 8,150,964 2,828,710 5,322,254 85,482 5,236,772 Nonnegotiable, noninterest-bearing demand obligations on account of subscribed capital (Note K) Net notional amounts required to maintain value of currency holdings (Note K) Ordinary reserve (Note L) Special reserve (Note L) Loan loss reserve (Note L) Surplus (Note L) Cumulative revaluation adjustments account (Note L) Net income after appropriation (OCR-4) (Note L) Accumulated other comprehensive loss (Note L) tOtaL (578,991) 4,657,781 (595,806) 10,459,995 245,948 200,100 1,131,756 261,300 593,735 (421,270) 16,533,539 $113,310,055 143,949,700 136,535,071 7,414,629 3,084,711 4,329,918 74,240 4,255,678 (341,130) 3,914,548 (419,186) 10,030,460 230,226 246,000 1,131,756 183,521 614,489 (53,345) 15,878,469 $100,170,182 2,321 1,942,954 1,472,179 151,744 3,569,198 96,776,516 411,988 1,588,350 1,347 1,168,252 167,948 3,337,885 84,291,713 27,465,365 6,576,366 34,041,731 330,820 25,775,013 2,077,841 27,852,854 714,490 $ 4,240,356 54,037,988 $ 58,278,344 556,423 $ 3,771,063 48,075,055 $ 51,846,118 540,366 2010
45
Asian Development Bank Annual Report 2011 OcR-2

STATEMENT OF INCOME AND EXPENSES For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars
2011 REVENUE (Note M) From loans (Note E) Interest Commitment charge Other From investments (Note D) Interest From guarantees (Note F) From equity investments From other sourcesnet (Notes E and Q) TOTAL REVENUE EXPENSES (Note M) Borrowings and related expenses (Note J) (Including amortization of derivative transition adjustments reclassified from other comprehensive income of nil 2011 and $1,620 2010) Administrative expenses (Note M) (Including amortization of estimated actuarial losses and prior service costs reclassified from other comprehensive income of $46,092 2011 and $15,823 2010) Write back (Note E) Other expenses TOTAL EXPENSES NET REALIZED GAINS (LOSSES) From investments (Note D) (Including gains reclassified from other comprehensive income of $59,935 2011 and $20,237 2010) From equity investments (Note M) (Including gains reclassified from other comprehensive income of $110,845 2011 and $7,493 2010) From borrowings Others (Note D) (Including gains reclassified from other comprehensive income of $935 2011 and nil 2010) NET REALIZED GAINS NET UNREALIZED GAINS (Note M) nEt incOME
2010
$664,313 50,814 (65,528) $649,599
$688,006 58,151 (65,678) $680,479
365,263 15,722 44,030 20,439 $1,095,053
367,499 11,322 58,425 24,160 $1,141,885
367,916
386,048
315,945 (7,395) 4,938 681,404
294,251 (44,713) 3,544 639,130
84,306
33,805
120,614 5,497
48,080 1,444
(20,292) 190,125 5,683 $ 609,457
(3,011) 80,318 42,738 $ 625,811
46

STATEMENT OF COMPREHENSIVE INCOME For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars
2011 NET INCOME (OCR-2) Other comprehensive loss (Note M) Reclassification to net income: Amortization of derivatives transition adjustment Defined benefit plans Net actuarial loss during the period Amortization of net actuarial losses Amortization of prior service cost Currency translation adjustments Unrealized investment holding (losses) gains Unrealized investment holding gains during the period Less: Reclassification adjustments for gains included in net income Total other comprehensive loss cOMpREhEnsiVE incOME
2010 $ 625,811
$ 609,457
(307,697) 45,127 965 18,358 47,037 (171,715) (367,925) $241,532
1,620 (290,714) 20,390 (4,567) 118,980 86,426 (27,797) (95,662) $530,149
47

STATEMENT OF CHANGES IN CAPITAL AND RESERVES For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars (note K)
nonnegotiable, noninterestnet notional bearing Demand Maintenance Obligations of Value $(142,181) $(523,220) cumulative Revaluation net income adjustments after account appropriations $631,129 $ (36,725) accumulated Other comprehensive Loss $ 42,317
capital stock Balance, 1 January 2010 Comprehensive income (loss) for the year 2010 (OCR-3) (Note L) Appropriation of guarantee fees to Special Reserve (Note L) Change in SDR value of paid-in shares subscribed Change in subscription installments not due Additional paid-in shares subscribed during the year Change in SDR value of capital transferred to Asian Development Fund Change in notional maintenance of value (Note K) Demand obligations on account of subscription received during the year Encashment of demand obligations during the year Change in US Dollar value of demand obligations Allocation of prior year income to ordinary reserve, loan loss reserve, surplus and transfer from cumulative revaluation account (Note L) Allocation of prior year income to ADF, TASF, RCIF, and CCF (Note L) Charge to ordinary reserve for change in SDR value of capital stock (Note L) Balance, 31 December 2010 $4,255,678 51,871 (2,248,259) $3,818,297
Ordinary Reserve
special Reserve
Loan Loss Reserve $493,162
surplus $ 884,594
total $15,176,083
$ 9,789,807 $218,903
625,811
(95,662)
530,149
11,322
(11,322)
51,871 (2,248,259)
2,632,723
2,632,723
1,046
1,046
104,034
104,034
(189,276) 14,235 (23,908)
(189,276) 14,235 (23,908)
230,882
(247,162)
247,162
(447,607)
216,725
(180,000)
(180,000)
9,771 $(341,130) $(419,186) $10,030,460 $230,226 $246,000 $1,131,756 $183,521 $614,489 $(53,345)
9,771 $15,878,469
Note: Numbers may not sum precisely because of rounding. The accompanying notes are an integral part of these financial statements (OCR-9).
48
cOntinUED
nonnegotiable, noninterestnet notional bearing Demand Maintenance Obligations of Value $(341,130) $(419,186) cumulative Revaluation net income adjustments after account appropriations $183,521 $614,489 accumulated Other comprehensive Loss $ (53,345)
capital stock Balance, 31 December 2010 Comprehensive income (loss) for the year 2011 (OCR-3) (Note L) Appropriation of guarantee fees to Special Reserve (Note L) Change in SDR value of paid-in shares subscribed Change in subscription installments not due Additional paid-in shares subscribed during the year Change in SDR value of capital transferred to Asian Development Fund Change in notional maintenance of value (Note K) Demand obligations on account of subscription received during the year Encashment of demand obligations during the year Change in US Dollar value of demand obligations Allocation of prior year income to ordinary reserve, loan loss reserve, surplus and transfer from cumulative revaluation account (Note L) Allocation of prior year income to ADF and TASF (Note L) Charge to ordinary reserve for change in SDR value of capital stock (Note L) Balance, 31 December 2011 $5,236,772 202,085 193,663 $4,255,678
Ordinary Reserve
special Reserve
Loan Loss Reserve $246,000
surplus $1,131,756
total $15,878,469
$10,030,460 $230,226
609,457
(367,925)
241,532
15,722
(15,722)
202,085 193,663
585,119
585,119
227
227
(176,620)
(176,620)
(263,627) 18,171 7,595
(263,627) 18,171 7,595
422,610
(45,900)
77,779
(454,489)
(160,000)
(160,000)
6,925 $(578,991) $(595,806) $10,459,995 $245,948 $200,100 $1,131,756 $261,300 $593,735 $(421,270)
6,925 $16,533,539
49

STATEMENT OF CASH FLOWS For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars
2011 2010
CASH FLOWS FROM OPERATING ACTIVITIES Interest and other charges on loans received Interest on investments received Interest paid for securities purchased under resale/repurchase arrangement Interest and other financial expenses paid Administrative expenses paid Othersnet Net Cash Provided by Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Sales of investments Maturities of investments Purchases of investments Net payments on future contracts Net (payments for) receipts from securities purchased under resale arrangement Principal collected on loans Loans disbursed Receipts from swaps Payments for swaps Property, furniture, and equipment acquired Change in swap related collateral Purchases of equity investments Sales of equity investments Net Cash Used in Investing Activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from new borrowings Borrowings redeemed Matured capital subscriptions collected1 Issuance expenses paid Demand obligations of members encashed Receipts from swaps Payments for swaps Resources transferred to ADF Resources transferred to TASF Resources transferred to RCIF Resources transferred to CCF Net Cash Provided by Financing Activities Effect of Exchange Rate Changes on Due from Banks Net Increase (Decrease) in Due from Banks Due from Banks at Beginning of Year Due from Banks at End of Year RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Net Income (OCR-2) Adjustments to reconcile net income to net cash provided by operating activities:2 Depreciation and amortization Write backnet Net realized gains from investments, equity investments, and other borrowings Proportionate share in earnings on equity investments Net unrealized gains Change in accrued revenue from loans, investments, and other swaps Change in receivable from ADF allocation of administrative expenses Change in accrued interest on borrowings and swaps, and other expenses Change in pension and postretirement benefit liability Othersnet Net Cash Provided by Operating Activities
563,092 400,085 (1,342) (326,928) (260,447) 42,431 416,891
669,427 387,861 (2,293) (299,183) (258,601) 24,561 521,772
4,941,371 164,772,539 (173,155,127) (556) (75,511) 2,779,465 (6,285,444) 89,928 (238,033) (19,217) 354,568 (76,664) 207,424 (6,705,257) 13,908,636 (8,247,534) 496,027 (31,800) 18,171 382,937 (120,000) (40,000) 6,366,437 (4,730) 73,341 114,648 $ 187,989 $ 609,457 90,655 (7,395) (212,527) (28,989) (5,683) (84,538) (12,798) 307,446 (261,605) 22,868 $ 416,891
5,202,164 100,204,828 (109,885,121) (398) 7,692 2,305,080 (5,892,748) 323,017 (554,862) (19,791) 853,300 (183,039) 109,970 (7,529,908) 14,465,398 (7,489,554) 222,385 (37,871) 14,235 95,557 (106,570) (120,000) (40,000) (10,000) (10,000) 6,983,580 9,361 (15,195) 129,843 $ 114,648 $ 625,811 135,878 (44,713) (90,919) (39,868) (55,105) (12,368) 14,534 274,511 (274,891) (11,098) $ 521,772
Supplementary disclosure of noncash financing activities: 1 Nonnegotiable, noninterest-bearing demand promissory notes amounting to $261,336 ($191,509 2010) were received from members. 2 Includes securities received from restructuring (nil 2011; $47,483 2010). The accompanying notes are an integral part of these financial statements (OCR-9).
50

SUMMARY STATEMENT OF LOANS 31 December 2011 and 2010 Expressed in thousands of United states Dollars
Borrowers/guarantors Loans Outstanding1 Undisbursed Balances of Effective Loans2 Loans not yet Effective3 total Loans percent of total Loans
Afghanistan Armenia Azerbaijan Bangladesh Bhutan Cambodia Peoples Republic of China Cook Islands Fiji Georgia India Indonesia Kazakhstan Republic of Korea Lao Peoples Democratic Republic Malaysia Maldives Marshall Islands Federated States of Micronesia Mongolia Nauru Nepal Pakistan Palau Papua New Guinea Philippines Sri Lanka Thailand Turkmenistan Uzbekistan Viet Nam Regional TOTAL 31 December 2011 Allowance for loan losses Unamortized loan origination costnet nEt BaLancE 31 December 2011 Made up of: Sovereign Loans Nonsovereign Loans Private Sector Public Sector Net Balance 31 December 2011 TOTAL 31 December 2010 Allowance for loan losses Unamortized loan origination costnet nEt BaLancE 31 December 2010 Made up of: Sovereign Loans Nonsovereign Loans Private Sector Public Sector Net Balance 31 December 2010
1 2 3
42,941 69,204 242,288 1,455,030 44,177 4,025 12,147,533 15,604 124,209 150,178 10,516,894 10,011,508 1,005,030 32,356 61,240 131,168 6,137 2,060 2,246 4,611 558 1,100 5,491,202 6,400 165,077 4,928,453 723,031 337,469 569,744 1,399,260 49,690,733 38,657 49,729,390 (35,030) 64,900 $49,759,260 $ 47,052,649 2,485,257 221,354 $ 49,759,260 $ 45,932,875 (42,505) 53,441 $45,943,811 $ 43,634,265 2,141,113 168,433 $ 45,943,811
185,796 323,191 716,630 6,823 4,590,346 3,026 48,583 4,444,264 507,383 440,389 2,546 1,909,536 6,200 93,618 529,688 765,850 420,026 125,000 756,988 2,588,099 18,463,982 12,000 18,475,982 $18,475,982 $ 18,059,010 386,972 30,000 $ 18,475,982 $15,827,624 $15,827,624 $ 15,260,098 452,956 114,570 $ 15,827,624
20,000 500,000 1,019,000 1,622,137 4,700 160,000 2,540,540 480,000 378,000 448,200 377,040 165,900 362,000 85,000 680,000 1,031,390 9,873,907 9,873,907 $9,873,907
42,941 275,000 1,065,479 3,190,660 51,000 4,025 18,360,016 23,330 172,792 310,178 17,501,698 10,998,891 1,823,419 32,356 509,440 131,168 6,137 2,060 4,792 4,611 558 1,100 7,777,778 12,600 424,595 5,820,141 1,573,881 757,495 125,000 2,006,732 5,018,749 78,028,622 50,657 78,079,279 (35,030) 64,900 $78,109,149 $ 72,841,469 4,382,026 885,654 $ 78,109,149 $ 70,509,918 (42,505) 53,441 $70,520,854 $ 66,536,471 3,567,080 417,303 $ 70,520,854
0.05 0.35 1.36 4.09 0.06 0.01 23.51 0.03 0.22 0.40 22.42 14.09 2.34 0.04 0.65 0.17 0.01 0.00 0.01 0.01 0.00 0.00 9.96 0.02 0.54 7.45 2.02 0.97 0.16 2.57 6.43 99.94 0.06 100.00
$ 7,729,810 1,509,797 634,300 $ 9,873,907 $ 8,749,419 $8,749,419 $ 7,642,108 973,011 134,300 $ 8,749,419
Amounts outstanding on the multicurrency fixed lending rate loans totaled $11,488 ($18,378 2010), on pool-based loans totaled $7,108,319 ($8,249,314 2010) and on LIBOR-based loans and market-based loans totaled $42,609,582 ($37,665,183 2010). The average yield on loans was 1.34% (1.61% 2010). Refer to the unwithdrawn portions of effective loans as of 31 December 2011. Of the undisbursed balances, ADB has made irrevocable commitments to disburse various amounts totaling $546,656 ($331,488 2010). Refer to approved loans that have not become effective as of 31 December 2011, pending borrowers compliance with effectiveness conditions specified in the loan regulations and the loan agreements.
51
cOntinUED
MatURity OF EFFEctiVE LOans twelve Months Ending 31 December 2012 2013 2014 2015 2016 Five years Ending 31 December 2021 2026 2031 2036 over 2036 total
amount $3,293,234 4,736,726 4,612,439 3,624,451 3,954,839
amount 17,670,512 13,733,449 10,953,335 5,026,281 600,106 $68,205,3724
sUMMaRy OF cURREnciEs REcEiVaBLE On LOans OUtstanDing currency Chinese yuan Euro Japanese yen Indian rupee Indonesian rupiah Kazakhstan tenge $ 2011 266,350 41,469 4,512,468 171,552 37,466 157,586 $ 2010 245,576 4,933,225 229,696 37,862 16,279 total $49,729,390 $45,932,875 currency Pakistan rupee Philippine peso Swiss franc Thailand baht United States dollar 2011 177 67,254 1,697 181,924 44,291,447 2010 186 85,719 2,429 31,692 40,350,211
Includes undisbursed commitment relating to Revolving Credit Facility of Trade Finance Facilitation Program amounting to $12,000. The accompanying notes are an integral part of these financial statements (OCR-9).
52

SUMMARY STATEMENT OF BORROWINGS 31 December 2011 and 2010 Expressed in thousands of United states Dollars
Borrowings principal Outstanding 2011 Australian dollar Brazilian real Canadian dollar Chinese yuan Euro Hong Kong dollar Indian rupee Japanese yen Kazakhstan tenge Malaysian ringgit Mexican peso New Zealand dollar Norwegian krone Philippine peso Pound sterling Singapore dollar South African rand Swiss franc Thai baht Turkish lira United States dollar Subtotal Unamortized discounts/ premiums and transition adjustments Accumulated translation adjustments ASC 815 Adjustments total
1 1
swap arrangements2 payable (Receivable)3 2011 $ (9,978,489) (1,190,701) (1,801,090) 65,715 (71,656) (195,056) 17,844 (11,754) 3,592,462 (3,390,234) (178,895) (42,427) (378,702) (262,664) (115,779) (1,012,810) (195,995) (2,701,508) (565,826) (36,861) (1,759,092) 23,789,344 (7,483,565) $(3,907,739) 2010 $ (7,989,734) (1,021,235) (1,702,408) 112,825 (77,155) (13,420) (201,745) 24,895 (18,815) 4,110,480 (3,356,147) (337,699) (126,934) (263,485) (119,600) (402,544) (441,952) (3,169,932) (521,672) (228,396) (2,525,698) 21,526,813 (6,957,114) $(3,700,672) $ net currency Obligation3 2011 (154,170) 15,351 (76,041) 514,725 (1,555) 95,882 3,928,177 8,081 (3,968) (361) (3,922) (2,920) (569) 3,224 (2,456) (17,650) 394,655 (198) (15,648) 49,668,885 $54,349,522 $ 2010 (65,068) (6,265) (46,477) 469,094 (62) (1,257) 112,344 4,535,568 16,279 (1,398) (1,092) (3,982) 4 (13,954) (4,069) (33,281) 390,845 (2,978) (29,204) 42,806,149 $48,121,196 2010
weighted average cost (%) after swaps
9,824,319 1,206,052 1,725,049 520,666 193,501 89,792 3,725,949 8,081 174,927 42,066 374,780 259,744 115,210 1,016,034 193,539 2,683,858 960,481 36,663 1,743,444 33,363,106 58,257,261
$ 7,924,666 1,014,970 1,655,931 433,424 13,358 200,488 106,264 3,781,235 16,279 336,301 125,842 259,503 119,604 388,590 437,883 3,136,651 912,517 225,418 2,496,494 28,236,450 51,821,868
0.69
21,083
24,250 0.49 (0.05)
$58,278,3444
$51,846,118
1.13
Reported at Fair Value upon adoption of ASC 820/825 effective 1 January 2008, except for unswapped borrowings which are reported at net of principal amount and unamortized discount/premium of zero coupon bonds. The aggregate face amounts and discounted values of zero coupon and deep discount borrowings (in United States dollar equivalents) are:
aggregate Face amount currency Australian dollar Brazilian real Canadian dollar South African rand Swiss franc Turkish lira United States dollar
2 3 4
Discounted Value 2011 $1,591,483 174,646 745,089 1,061,010 422,665 967,142 2,947,003 2010 $1,366,146 49,330 730,938 980,939 402,584 1,563,670 2,273,842
2011 $1,793,937 214,941 783,392 1,308,981 521,544 1,241,471 4,079,042
2010 $1,555,452 75,000 800,000 1,276,835 522,883 1,998,714 2,887,736
Include currency and interest rate swaps. At 31 December 2011, the remaining maturity of swap agreements ranged from less than one year to 25 years. Approximately 79.16% of the swap receivables and 82.28% of the payables are due before 1 January 2017. Adjusted by the cumulative effect of the adoption of ASC 815 effective 1 January 2001. Excludes accrued interest and commission.
53
cOntinUED
MatURity stRUctURE OF BORROwings OUtstanDing5 twelve Months Ending 31 December 2012 2013 2014 2015 2016 Five years Ending 31 December 2021 2026 2031 2036 over 2036 total
amount $10,626,473 8,597,904 11,135,267 8,024,622 8,553,797
amount 8,123,926 305,619 2,864,090 46,646 $58,278,344
intEREst RatE swap aRRangEMEnts average Rate (%) notional amount Receive Fixed swaps: Australian dollar8 Chinese yuan Indian rupee United States dollar United States dollar9 Receive Floating swaps: Japanese yen United States dollar total
5 6 7
pay Receive 2.64 3.34 5.40 2.58 2.14 3.22 0.87 Floating6 (0.03) 4.47 7.83 0.50 (0.06) (0.06) 0.60
Maturing through7 20272032 20152020 2014 20122041 20162027 20162032 20122020
65,020 308,016 94,153 27,524,960 65,020 65,020 771,000
$28,893,189
Bonds with put and call options were considered maturing on the first put or call date. Represents average current floating rates, net of spread. Swaps with early termination date were considered maturing on the first termination date. 8 Consists of dual currency swaps with interest receivable in Australian dollar and interest payable in Japanese yen. 9 Consists of dual currency swaps with interest receivable in United States dollar and interest payable in Japanese yen. The accompanying notes are an integral part of these financial statements (OCR-9).
54

STATEMENT OF SUBSCRIPTIONS TO CAPITAL STOCK AND VOTING POWER 31 December 2011 Expressed in thousands of United states Dollars
sUBscRiBED capitaL MEMBERs REgiOnaL Afghanistan Armenia Australia Azerbaijan Bangladesh Bhutan Brunei Darussalam Cambodia Peoples Republic of China Cook Islands Fiji Georgia Hong Kong, China India Indonesia Japan Kazakhstan Kiribati Republic of Korea Kyrgyz Republic Lao Peoples Democratic Republic Malaysia Maldives Marshall Islands Federated States of Micronesia Mongolia Myanmar Nauru Nepal New Zealand Pakistan Palau Papua New Guinea Philippines Samoa Singapore Solomon Islands Sri Lanka Taipei,China Tajikistan Thailand Timor-Leste Tonga Turkmenistan Tuvalu Uzbekistan Vanuatu Viet Nam total Regional (Forward) number of shares 3,585 31,671 614,220 47,208 108,384 660 37,386 5,250 684,000 282 7,218 36,243 57,810 672,030 547,268 1,656,630 85,608 426 534,738 31,746 1,476 289,050 426 282 426 1,596 57,810 426 15,606 163,020 231,240 342 9,960 252,912 348 36,120 708 61,560 115,620 30,402 144,522 1,050 426 26,874 150 71,502 708 36,228 6,713,153 percent of total 0.03 0.30 5.80 0.45 1.02 0.01 0.35 0.05 6.46 0.003 0.07 0.34 0.55 6.35 5.17 15.65 0.81 0.004 5.05 0.30 0.01 2.73 0.004 0.003 0.004 0.02 0.55 0.004 0.15 1.54 2.19 0.003 0.09 2.39 0.003 0.34 0.01 0.58 1.09 0.29 1.37 0.01 0.004 0.25 0.001 0.68 0.01 0.34 63.43 $ par Value of shares total 55,039 486,235 9,429,935 724,770 1,663,987 10,133 573,976 80,602 10,501,247 4,329 110,816 556,428 887,540 10,317,475 8,402,041 25,433,743 1,314,314 6,540 8,209,672 487,387 22,661 4,437,698 6,540 4,329 6,540 24,503 887,540 6,540 239,594 2,502,797 3,550,158 5,251 152,913 3,882,882 5,343 554,540 10,870 945,112 1,775,079 466,753 2,218,803 16,120 6,540 412,588 2,303 1,097,749 10,870 556,198 $ callable 47,701 461,871 8,958,347 688,446 1,580,775 9,503 545,220 73,877 9,976,016 4,115 105,273 528,563 843,140 9,801,501 7,977,129 24,161,788 1,248,574 6,218 7,799,126 463,007 21,248 4,215,759 6,218 4,115 6,218 23,275 843,140 6,218 227,604 2,377,642 3,372,620 4,990 145,283 3,688,716 5,020 526,813 10,332 897,841 1,686,325 443,355 2,107,834 15,307 6,218 391,908 2,180 1,042,848 10,332 520,103 $ paid-in 7,339 24,365 471,589 36,324 83,212 629 28,756 6,724 525,231 215 5,542 27,865 44,400 515,974 424,912 1,271,956 65,740 322 410,547 24,380 1,412 221,939 322 215 322 1,228 44,400 322 11,990 125,155 177,539 261 7,630 194,166 322 27,727 537 47,271 88,754 23,398 110,969 814 322 20,680 123 54,901 537 36,094 VOting pOwER number of Votes 43,075 71,161 653,710 86,698 147,874 40,150 76,876 44,740 723,490 39,772 46,708 75,733 97,300 711,520 586,758 1,696,120 125,098 39,916 574,228 71,236 40,966 328,540 39,916 39,772 39,916 41,086 97,300 39,916 55,096 202,510 270,730 39,832 49,450 292,402 39,838 75,610 40,198 101,050 155,110 69,892 184,012 40,540 39,916 66,364 39,640 110,992 40,198 75,718 8,608,673 percent of total 0.33 0.54 4.94 0.66 1.12 0.30 0.58 0.34 5.47 0.30 0.35 0.57 0.74 5.38 4.44 12.82 0.95 0.30 4.34 0.54 0.31 2.48 0.30 0.30 0.30 0.31 0.74 0.30 0.42 1.53 2.05 0.30 0.37 2.21 0.30 0.57 0.30 0.76 1.17 0.53 1.39 0.31 0.30 0.50 0.30 0.84 0.30 0.57 65.07
103,065,024
97,889,649
5,175,376
55
cOntinUED
sUBscRiBED capitaL number of shares 6,713,153 36,120 36,120 555,258 36,120 36,120 247,068 459,204 36,120 191,850 36,120 108,882 36,120 12,040 36,120 36,120 61,950 36,120 216,786 1,656,189 3,870,427 10,583,580 percent of total 63.43 0.34 0.34 5.25 0.34 0.34 2.33 4.34 0.34 1.81 0.34 1.03 0.34 0.11 0.34 0.34 0.59 0.34 2.05 15.65 36.57 100.00 par Value of shares total 103,065,024 554,540 554,540 8,524,709 554,540 554,540 3,793,161 7,050,021 554,540 2,945,415 554,540 1,671,633 554,540 184,847 554,540 554,540 951,100 554,540 3,328,250 25,426,966 59,421,498 callable 97,889,649 526,813 526,813 8,098,396 526,813 526,813 3,603,463 6,697,446 526,751 2,798,106 526,751 1,588,037 526,813 171,843 526,813 526,813 903,522 526,813 3,161,812 24,155,281 56,445,909 paid-in 5,175,376 27,727 27,727 426,314 27,727 27,727 189,698 352,575 27,788 147,309 27,788 83,595 27,727 13,004 27,727 27,727 47,578 27,727 166,439 1,271,685 2,975,589 VOting pOwER number of Votes 8,608,673 75,610 75,610 594,748 75,610 75,610 286,558 498,694 75,610 231,340 75,610 148,372 75,610 51,530 75,610 75,610 101,440 75,610 256,276 1,695,679 4,620,737 percent of total 65.07 0.57 0.57 4.50 0.57 0.57 2.17 3.77 0.57 1.75 0.57 1.12 0.57 0.39 0.57 0.57 0.77 0.57 1.94 12.82 34.93
MEMBERs total Regional (Forward) nOnREgiOnaL Austria Belgium Canada Denmark Finland France Germany Ireland Italy Luxembourg Netherlands Norway Portugal Spain Sweden Switzerland Turkey United Kingdom United States total nonregional tOtaL
$162,486,521 $154,335,557 $8,150,964
13,229,410 100.00
Note: Numbers may not sum precisely because of rounding. 1 The authorized capital stock of the ADB has a par value of $10,000 in terms of US dollars of the weight and fineness in effect on 31 January 1966. Pending ADBs selection of the appropriate successor to the 1966 dollar, the par value of each share is SDR10,000 for financial reporting purposes. Exchange rate at 31 December 2011 was $1.53527. (Notes B and K) The accompanying notes are an integral part of these financial statements (OCR-9).
56

NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010
NOTE ANATURE OF OPERATIONS AND LIMITATIONS ON LOANS, GUARANTEES, AND EQUITY INVESTMENTS Nature of Operations The Asian Development Bank (ADB), a multilateral development financial institution, was established in 1966 with its headquarters in Manila, Philippines. ADB and its operations are governed by the Agreement Establishing the Asian Development Bank (the Charter). Its purpose is to foster economic development and co-operation in Asia and the Pacific region and to contribute to the acceleration of the process of economic development of the developing member countries (DMCs) in the region, collectively and individually. Since 1999, ADBs corporate vision and mission has been to help DMCs reduce poverty in the region. This was reaffirmed under the long-term strategic framework for 20082020 (Strategy 2020). Under Strategy 2020, ADBs corporate vision continues to be An Asia and Pacific Free of Poverty and its mission has been to help its DMCs reduce poverty and improve living conditions and quality of life. ADB has been pursuing its mission and vision by focusing on three complementary strategic agendas: inclusive growth, environmentally sustainable growth, and regional integration. ADB conducts its operations through the ordinary capital resources (OCR) and Special Funds (see Note Q). Mobilizing financial resources, including cofinancing, is another integral part of ADBs operational activities, where ADB, alone or jointly, administers on behalf of donors funds provided for specific uses. ADBs OCR operations comprise loans, equity investments, and guarantees. ADB finances its ordinary operations through borrowings, paid-in capital, and reserves. ADB is immune from taxation pursuant to Chapter VIII, Article 56, Exemption from Taxation, of the Charter. Limitations on Loans, Guarantees, and Equity Investments Article 12, paragraph 1 of the Charter provides that the total amount outstanding of loans, equity investments, and guarantees made by ADB shall not exceed the total of ADBs unimpaired subscribed capital, reserves, and surplus, exclusive of the special reserve. ADBs policy on lending limitations limits the total amount of disbursed loans, approved equity investments, and the maximum amount that could be demanded from ADB under its guarantee portfolio, to the total amount of ADBs unimpaired subscribed capital, reserves, and surplus. At 31 December 2011 and 2010, the total of such loans, equity investments, and guarantees aggregated approximately 29.2% and 30.2%, respectively, of the total subscribed capital, reserves, and surplus. Article 12, paragraph 3 of the Charter provides that equity investments shall not exceed 10% of the unimpaired paid-in capital together with reserves and surplus, exclusive of the special reserve. At 31 December 2011, such equity investments represented approximately 7.9% (7.9% 2010) of the paid-in capital, reserves, and surplus, as defined.
57

NOTE BSUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Presentation of the Financial Statements The financial statements of the OCR are prepared in accordance with accounting principles generally accepted in the United States of America. Functional Currencies and Reporting Currency The currencies of members are all functional currencies of ADB as these are the currencies of the primary economic environment in which OCR generates and expends cash. The reporting currency is the United States dollar (USD). Translation of Currencies ADB adopts the use of daily exchange rates for accounting and financial reporting purposes. This allows transactions in currencies other than USD to be translated to the reporting currency using exchange rates applicable at the time of transactions. At the end of each accounting month, translations of assets, liabilities, capital, and reserves denominated in non-USD are adjusted using the applicable rates of exchange at the end of the reporting period. These translation adjustments, other than those relating to the non-functional currencies (Note M) and to the maintenance of Special Drawing Right (SDR) capital values (Notes K and L), are charged or credited to Accumulated translation adjustments and reported in CAPITAL AND RESERVES as part of Accumulated other comprehensive income. Valuation of Capital Stock The authorized capital stock of ADB is defined in Article 4, paragraph 1 of the Charter in terms of United States dollars of the weight and fineness in effect on 31 January 1966 (the 1966 dollar) and the value of each share is defined as 10,000 1966 dollars. The capital stock had historically been translated into the current United States dollar (ADBs unit of account) on the basis of its par value in terms of gold. From 1973 until 31 March 1978, the rate arrived at on this basis was $1.20635 per 1966 dollar. Since 1 April 1978, at which time the Second Amendment to the Articles of Agreement of the International Monetary Fund (IMF) came into effect, currencies no longer have par values in terms of gold. Pending ADBs selection of the appropriate successor to the 1966 dollar, the capital stock has been valued for purposes of these financial statements in terms of the SDR at the value in current United States dollars as determined by the IMF, with each share valued at SDR10,000. As of 31 December 2011, the value of the SDR in terms of the current United States dollar was $1.53527 ($1.54003 2010) giving a value for each share of ADBs capital equivalent to $15,352.70 ($15,400.30 2010). Derivative Financial Instruments ADB reports all derivative transactions in accordance with Accounting Standards Codification (ASC) 815, Derivatives and Hedging. ASC 815 requires that derivative instruments be recorded in the Balance Sheet as either assets or liabilities measured at fair value.
58
cOntinUED
In applying ASC 815, ADB has elected not to define any qualifying hedging relationships. Rather, all derivative instruments, as defined by ASC 815, have been marked to fair value, and all changes in fair value have been recognized in net income. ADB has elected not to define any qualifying hedging relationships, not because economic hedges do not exist, but rather because the application of ASC 815 hedging criteria does not make fully evident ADBs risk management strategies. Investments All investment securities and negotiable certificates of deposit held by ADB other than derivative instruments are considered by management to be Available for Sale and are reported at fair value. Time deposits are reported at cost, which is a reasonable estimate of their fair value. Unrealized gains and losses are reported in CAPITAL AND RESERVES as part of Accumulated other comprehensive income. Realized gains and losses are included in revenue from investments and are measured by the difference between amortized cost and the net proceeds of sales. With respect to exchange traded futures, realized gains or losses are reported in the Statement of Income and Expenses under NET REALIZED GAINS (LOSSES) From investments. Interest income on investment securities and time deposits is recognized as earned and reported, net of amortization of premiums and discounts. Unrealized losses on investment securities are assessed to determine whether the impairment is deemed to be other than temporary. If the impairment is deemed to be other than temporary, the investment is written down to the impaired value, which becomes the new cost basis of the investment. Impairment losses are not reversed for subsequent recoveries in the value of the investment, until it is sold. Securities Transferred Under Repurchase Agreement and Securities Purchased Under Resale Arrangement ADB accounts for transfers of financial assets in accordance with ASC 860, Transfers and Servicing. In general, transfers are accounted for as sales when control over the transferred assets has been relinquished. Otherwise the transfers are accounted for as repurchase/resale agreements and collateralized financing arrangements. Under repurchase agreements, securities transferred are recorded as assets and reported at estimated fair value and cash collateral received are recorded as liabilities and restricted cash. ADB monitors the fair value of the securities transferred under repurchase agreements and the collateral. Under resale arrangements, securities purchased are recorded as assets and are not re-pledged. Loans ADBs loans are made to or guaranteed by members, with the exception of nonsovereign loans, and have loan terms ranging between 5 and 32 years. Loan interest income and loan commitment fees are recognized on an accrual basis. In line with ADBs principle of cost pass-through pricing, the funding cost margin is passed to LIBOR-based loan borrowers as a surcharge or rebate. It is the policy of ADB to place loans in non-accrual status for which principal, interest, or other charges are overdue by six months. Interest and other charges on non-accruing loans are included in income only to the extent that payments have been received by ADB. Accordingly, loans are reinstated
59

to accrual status when all the principal, interest and other charges due on the loan have been paid. ADB maintains a position of not taking part in debt rescheduling agreements with respect to sovereign loans. In the case of nonsovereign loans, ADB may agree to debt rescheduling only after alternative courses of action have been exhausted. ADBs periodic evaluation of the adequacy of the allowance for loan losses is based on its past loan loss experience, known and inherent risks in existing loans, and adverse situations that may affect a borrowers ability to repay. For sovereign loans, ADB determines that a loan is impaired and therefore subject to provisioning when principal or interest is in arrears for more than one year. Specific provision for sovereign loan losses is written-back when the borrowers arrears have been fully settled and the borrower has re-established regular loan service payments. The nonsovereign loans are individually reviewed and subject to provisioning when the loan is considered impaired. The impairment is determined based on the difference between the loan carrying value and present value of expected future cash flows discounted at the loans effective interest rate. Starting 2010, ADB has expanded the provisioning policy for nonsovereign loans to include collective provisions based on the credit risk ratings and probability of default and assumed loss given default. ADB establishes loss reserve for both sovereign and nonsovereign credit exposures to be used as a basis for capital adequacy against expected losses in loans and guarantees. The amount of expected loss pertaining to credit exposures that are not impaired or subject to collective provision is recorded as loss reserve in the equity section of the balance sheet. Any adjustment to loan loss reserve following this methodology is subject to the approval of the Board of Governors. From 2000 to 2003, ADB levied front-end fees on all new sovereign loans. These fees are deferred and amortized over the life of the loans after offsetting deferred direct loan origination costs. Front-end fees were waived on sovereign loans approved from 2004 and were eliminated for sovereign loans negotiated on and after 1 October 2007. Since 1988, ADB has charged front-end fees for nonsovereign loans. ADB levies a commitment charge on the undisbursed balance of effective loans. Unless otherwise provided by the loan agreement, the charges take effect commencing on the 60th day after the loan signing date and are credited to loan income. Guarantees ADB provides guarantees under its sovereign and nonsovereign operations. Guarantees are regarded as outstanding when the underlying financial obligation of the borrower is incurred. ADB would be required to perform under its guarantees if the payments guaranteed were not made by the debtor, and the guaranteed party called the guarantee by demanding payments from ADB in accordance with the term of the guarantee. For guarantees issued and modified on or after 1 January 2003, ADB recognizes at the inception of a guarantee, a liability for the stand-by obligation to perform on guarantees. Front-end fee income on guarantees received is deferred and amortized over the term of the guarantee contract. ADB records a contingent liability for the probable losses related to guarantees outstanding. This provision, as well as the unamortized balance of the deferred guarantee fee income, and the unamortized balance of the obligation to stand ready, are included in Miscellaneous liabilities on the Balance Sheet.
60
cOntinUED
Collateral ADB requires collateral from individual swap counterparties in the form of approved liquid securities or cash to mitigate its credit exposure to these counterparties. It is the policy of ADB to restrict the collateral received from swap counterparties for fulfilling its obligations under the collateral agreement. ADB records the restricted cash in OTHER ASSETS with a corresponding obligation to return the cash in ACCOUNTS PAYABLE AND OTHER LIABILITIES. Collateral received in the form of liquid securities is disclosed in Note H and not recorded on OCRs Balance Sheet. Equity Investments Investments in equity securities with readily determinable market price are considered Available for Sale and are reported at fair value, with unrealized gains and losses reported in CAPITAL AND RESERVES as part of Accumulated other comprehensive income. ADB applies the equity method of accounting to investments where it has the ability to exercise influence such as in limited liability partnerships (LLPs) and certain limited liability companies (LLCs) that maintain a specific ownership account for each investor in accordance with ASC 323-30 Partnerships, Joint Ventures, and Limited Liability Entities and direct equity investment that fall under purview of ASC 323 InvestmentsEquity Method and Joint Ventures. The net asset value of equity investments under the equity method is considered an estimate of its fair value. Investments in equity securities without readily determinable fair values are reported at cost or at written down value. These investments are assessed each quarter to reflect the amount that can be realized using valuation techniques appropriate to the market and industry of each investment. When impairment is identified and is deemed to be other than temporary, the equity investment is written down to the impaired value, which becomes the new cost basis of the equity investments. Impairment losses are not reversed for subsequent recoveries in the value of the equity investments. ADB determined that it is not practicable to estimate the fair value of equity investments reported at cost or written down value and the reported amount is considered an estimate of its fair value. Variable Interest Entities ADB complies with ASC 810, Consolidated Financial Statements. ASC 810 requires an entity to consolidate and provide disclosures for any Variable Interest Entity (VIE) for which it is the primary beneficiary. On 1 January 2010, ASC 810 was amended to define the primary beneficiary to the entity that both has the (i) power to direct the activities that most significantly impact the economic performance of the VIE and the (ii) obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Prior to this amendment, the standard required the entity that would absorb the majority of VIEs expected losses or receive a majority of expected residual returns to be deemed as the primary beneficiary of the VIE. Variable interests can arise from equity investments, loans, and guarantees. ADB is required to disclose information about its involvement in VIE where ADB holds variable interest (see Note R).
61

Property, Furniture, and Equipment Property, furniture, and equipment are stated at cost and, except for land, depreciated over estimated useful lives on a straight-line basis. Maintenance, repairs, and minor betterments are charged to expense. Land is stated at cost and is not amortized. Borrowings Borrowings are used as one source to provide funds for ADBs operations. ADB diversifies its funding sources across markets, instruments, and maturities. ADB simultaneously enters into currency and/or interest rate swaps for asset/liability management. ADB reports all borrowings that have associated derivative instruments at fair value (FV), including ADBs credit risk (as a credit spread) by currency. Changes in FV are reported in net income. Legacy borrowings that do not have associated swaps continue to be reported at amortized cost. Amortization of discounts and premiums and issuance costs associated with new borrowings are deferred and amortized over the period during which the borrowing is outstanding. Accounting Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make reasonable estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the end of the year and the reported amounts of revenues and expenses during the year. The actual results could differ from those estimates. Judgments have been used in the valuation of certain financial instruments, the determination of the adequacy of the accumulated provisions for losses on loans and other exposures (irrevocable commitments and guarantees), the determination of net periodic cost from pension and other postretirement benefits plans, and the present value of benefit obligations. Accounting and Reporting Developments The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2011-02, Receivables (Topic 310) A Creditors Determination of Whether Restructuring Is a Troubled Debt Restructuring in April 2011. This update is effective for the first interim or annual period beginning on or after 15 June 2011 and is to be applied retrospectively to modifications occurring on or after the beginning of the annual period of adoption. This update did not have a material impact on OCRs 31 December 2011 financial statements. ASU 2010-06, Fair Value Measurements and Disclosures (Topic 820) Improving Disclosures about Fair Value Measurements with respect to the separate disclosures about gross purchases, sales, issuances, and settlements relating to Level 3 measurements, is effective for fiscal years beginning after 15 December 2010 and for interim periods within those fiscal years. See Note P for the required disclosures. In April 2011, the FASB issued ASU 2011-03, Transfers and Servicing (Topic 860) Reconsideration of Effective Control for Repurchase Agreements. The update removes from the assessment of effective control the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms, even in the event of default by the
62
cOntinUED
transferee. It does not change the other criteria used in the assessment of effective control. The revised guidance is applicable prospectively to new transactions and transactions that are modified on or after the first interim or annual period beginning 15 December 2011. This update did not have an impact on OCRs 31 December 2011 financial statements. In May 2011, the FASB issued ASU 2011-04, Fair Value Measurement (Topic 820) Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in US GAAP and IFRSs, which amends US GAAP and International Financial Reporting Standards (IFRSs) and results in common disclosure and FV measure requirements. The ASU does not require additional FV measurements and is not intended to establish valuation standards or affect valuation practices outside of financial reporting. The new guidance will require prospective application and are effective for interim and annual periods beginning on or after 15 December 2011. ADB is currently assessing the impact of this update on OCRs financial statements. In June 2011, the FASB issued ASU 2011-05, Comprehensive Income (Topic 220) Presentation of Comprehensive Income, which requires entities to present details of items that are reclassified from other comprehensive income to net income in the statement of comprehensive income. Subsequently, FASB issued ASU 2011-12 in December 2011 to effectively defer only those changes in ASU 2011-05 that relate to the presentation of reclassification adjustments out of accumulated other comprehensive income. ADB elected to adopt the provisions in ASU 2011-05 and presented in OCR-2 and OCR-3 on OCRs 31 December 2011 and 2010 financial statements the reclassification adjustments. In December 2011, the FASB issued ASU 2011-11, Balance Sheet (Topic 210) Disclosures about Offsetting Assets and Liabilities, to provide enhanced disclosures that will enable users of its financial statements to evaluate the effect or potential effect of netting arrangements on an entitys financial position. An entity is required to apply the amendments for annual reporting periods beginning on or after 1 January 2013, and interim periods within those annual periods. ADB is currently assessing the impact of this update on OCRs financial statements. Statement of Cash Flows For the purposes of the Statement of Cash Flows, ADB considers that its cash and cash equivalents are limited to DUE FROM BANKS, which consist of cash on hand and current accounts in banks used for (i) operational disbursements, (ii) receipt of funds from encashment of member countries promissory notes, and (iii) clearing accounts. NOTE CRESTRICTIONS ON USE OF CURRENCIES OF MEMBERS In accordance with Article 24, paragraph 2(i) of the Charter, the use by ADB or by any recipient from ADB of certain currencies may be restricted by members to payments for goods or services produced and intended for use in their territories. With respect to the currencies of 42 DMCs for 2011 (42 2010), cash in banks (due from banks) totaling $95,206,000 ($75,203,000 2010) may be, but are not currently so restricted. In accordance with Article 24, paragraphs 2(i) and (ii) of the Charter, one member (one 2010) has restricted the use by ADB or by any recipient from ADB of its currency to payments for goods or services produced in its territory. As such, cash in banks (due from banks) and investment totaling $43,000 and $3,282,000 ($198,000 and $3,088,000 2010), respectively, have been restricted.
63

NOTE DINVESTMENTS The main investment management objective is to maintain security and liquidity. Subject to these parameters, ADB seeks the highest possible return on its investments. Investments are governed by the Investment Authority approved by the Board of Directors in 2006. ADB may purchase and sell exchange traded financial futures and option contracts, and enter into currency and interest rate swaps, and forward rate agreements. Exposure to interest rate risk may be adjusted within defined bands to reflect changing market conditions. These adjustments are made through the purchase and sale of securities, and financial futures. Accordingly, financial futures are held for risk management purposes. As of 31 December 2011, there are no outstanding purchase and sales of futures contracts ($3,000,000 and $7,000,000, respectively 2010). Included in Other securities as of 31 December 2011 were corporate obligations and other debt securities amounting to $1,200,001,000 ($1,195,509,000 2010). As of 31 December 2011, there were no asset/mortgage-backed securities ($929,577,000 2010). ADB may engage in securities lending of government or government-guaranteed obligations and corporate obligations, for which ADB receives a guarantee from the securities custodian and a fee. Transfers of securities by ADB to counterparties are not accounted for as sales as the accounting criteria for the treatment of a sale have not been met. These securities must be available to meet ADBs obligation to counterparties. Included in Investments as of 31 December 2011 and 2010 were securities transferred under securities lending arrangements as follows:
2011 Government or governmentguaranteed obligations Corporate obligations total $47,564,000 3,948,000 $51,512,000 2010 $43,422,000 87,000 $43,509,000
The currency compositions of the investment portfolio as of 31 December 2011 and 2010 expressed in United States dollars are as follows:
currency United States dollar Japanese yen Euro Australian dollar Canadian dollar Swiss franc New Zealand dollar Others total 2011 $ 11,395,644,000 6,511,793,000 1,043,317,000 739,003,000 406,312,000 367,857,000 319,638,000 724,705,000 $21,508,269,000 2010 $12,582,676,000 2,427,673,000 950,746,000 666,185,000 330,735,000 437,811,000 251,227,000 606,306,000 $18,253,359,000
64
cOntinUED
The estimated fair value and amortized cost of the investments by contractual maturity at 31 December 2011 and 2010 are as follows:
2011 Estimated Fair Value Due in one year or less Due after one year through five years Due after five years through ten years Due after ten years through fifteen years total $ 8,093,610,000 11,895,876,000 1,415,163,000 103,620,000 $21,508,269,000 amortized cost $ 8,081,907,000 11,605,916,000 1,345,745,000 100,729,000 $21,134,297,000 Estimated Fair Value $ 6,366,579,000 9,833,354,000 2,028,176,000 25,250,000 $18,253,359,000 2010 amortized cost $ 6,349,386,000 9,584,033,000 1,971,706,000 24,484,000 $17,929,609,000
Additional information relating to investments in government or government-guaranteed obligations and other securities classified as available for sale are as follows:
2011 as of 31 December Amortized cost Estimated fair value Gross unrealized gains Gross unrealized losses For the years ended 31 December: Change in net unrealized gains from prior year Proceeds from sales Gross gain on sales Gross loss on sales 50,223,000 4,943,974,000 99,070,000 (7,746,000) (6,714,000) 5,202,162,000 58,185,000 (31,288,000) $19,982,334,000 20,356,306,000 410,314,000 (36,342,000) $15,643,835,000 15,967,586,000 354,897,000 (31,148,000) 2010
65

The table below provides a listing of investments that sustained unrealized losses as of 31 December 2011. Five government or government-guaranteed obligations (three 2010), two corporate obligations (nil 2010), one debt security (nil 2010), and no asset/mortgage-backed security (one 2010) sustained unrealized losses for over one year, representing 2.71% (0.31% 2010) of the total investments. Comparative details for 2011 and 2010 are as follows:
One year or less For the year 2011 Government or governmentguaranteed obligations Corporate bonds Asset/Mortgagebacked securities Others total Fair Value Unrealized Losses Over one year Fair Value Unrealized Losses Fair Value total Unrealized Losses
$ 6,636,536,000 242,784,000 $6,879,320,000
$ 25,247,000 2,243,000 $27,490,000
$ 279,106,000 297,627,000 5,730,000 $582,463,000
$4,850,000 2,373,000 1,629,000 $8,852,000
$6,915,642,000 540,411,000 5,730,000 $7,461,783,000
$30,097,000 4,616,000 1,629,000 $36,342,000
One year or less For the year 2010 Government or governmentguaranteed obligations Corporate bonds Asset/Mortgagebacked securities Others total Fair Value Unrealized Losses
Over one year Fair Value Unrealized Losses Fair Value
total Unrealized Losses
$ 3,521,005,000 351,855,000 139,631,000 6,939,000 $4,019,430,000
$ 23,028,000 3,366,000 3,852,000 420,000 $30,666,000
$59,698,000 204,000 $59,902,000
$456,000 26,000 $482,000
$3,580,703,000 351,855,000 139,835,000 6,939,000 $4,079,332,000
$23,484,000 3,366,000 3,878,000 420,000 $31,148,000
66
cOntinUED
NOTE ELOANS Loans The carrying amount and estimated fair value of loans outstanding at 31 December 2011 and 2010 are as follows:
2011 carrying Value Fixed rate multicurrency loans Pool-based single currency () loans Pool-based single currency (US$) loans LIBOR-based loans Fixed rate loans Local currency loans Loan arising from guarantee call total $ 11,488,000 1,970,499,000 5,137,483,000 41,772,348,000 867,394,000 48,000 $49,759,260,000 $ Estimated Fair Value $12,674,000 2,185,311,000 6,200,680,000 42,091,798,000 888,174,000 48,000 $51,378,685,000 $ carrying Value 15,863,000 2,391,854,000 5,856,886,000 37,049,539,000 2,479,000 627,120,000 70,000 $45,943,811,000 $ 2010 Estimated Fair Value 18,134,000 2,694,778,000 6,828,121,000 37,240,879,000 2,603,000 634,309,000 70,000 $47,418,894,000
ADB does not sell its sovereign loans, nor does it believe there is a market for its sovereign loans. The estimated fair value of all loans is based on the estimated cash flows from principal repayments and interest discounted at the applicable market yield curves for ADBs borrowing cost plus lending spread. Prior to 1 July 1986, the lending rate of ADB was based on a multicurrency fixed lending rate system under which loans carried interest rates fixed at the time of loan approval for the entire life of the loans. Effective 1 July 1986, ADB adopted a multicurrency pool-based variable lending rate system. In July 1992, ADB introduced a United States dollar pool-based variable lending rate system, and in November 1994, a market-based lending rate system was made available to sovereign and nonsovereign borrowers. The outstanding balances of pool-based multicurrency loans were subsequently transformed into pool-based single currency loans in Japanese yen, effective 1 January 2004. Commencing 1 July 2001, ADB introduced LIBOR-based loans (LBLs) in the following currencies euro, Japanese yen, and United States dollar. The LBL lending facility offers borrowers (i) choice of currency and interest rate basis; (ii) flexibility to change the original loan terms (currency and interest rate basis) at any time during the life of the loan; and (iii) options to cap or collar the floating lending rate at any time during the life of the loan. With the introduction of LBLs, prior loan windows are no longer offered to borrowers. ADB enhanced the LBL lending facility to sovereign LBLs negotiated after 1 January 2007, offering additional major currencies that ADB can efficiently intermediate, and additional repayment options including (i) annuity method with various discount factors, (ii) straightline repayment, (iii) bullet repayment, and (iv) custom-tailored repayment.
67

In November 2002, ADB started to offer local currency loan (LCL) to nonsovereign borrowers and extended the LCL to sovereign borrowers in 2005. In June 2009, ADB established a Countercyclical Support Facility (CSF) in response to the global economic crisis that spread to Asia and the Pacific. Loans approved under the CSF carry a lending spread of 2.0% that are charged above ADBs average funding cost and have a maturity of 5 years, including a 3-year grace period. As of 31 December 2011, five sovereign loans totaling $2,500,000,000 were outstanding. During 2011, ADB received prepayments for seven loans (four loans 2010) amounting to $104,677,000 ($33,483,000 2010) and collected prepayment premiums of $334,000 ($6,000 2010). 57% and 33% of the prepaid amounts in 2011 were LIBOR-based loans and pool-based single currency loan in US dollars, respectively, compared to 83% for LIBOR-based loans in 2010. Loan Charges In April 2010, the Board of Directors approved for all LIBOR-based loans to sovereign borrowers or with sovereign guarantees and local currency loans with sovereign guarantees (i) that are negotiated from 1 July 2010 to and including 30 June 2011, that the credit of 0.4% be reduced to 0.3% for the duration of the loan, to result to an effective contractual spread of 30 basis points over the base lending rate; and (ii) that are negotiated from 1 July 2011, that the credit of 0.4% be reduced to 0.2% for the duration of the loan, to result to an effective contractual spread of 40 basis points over the base lending rate. For loans negotiated before 1 July 2010 and on after 1 October 2007, the credit of 0.4% for the duration of the loan, resulting to an effective contractual spread of 0.2% continues to apply. In December 2010, with respect to all loans negotiated before 1 October 2007, the Board approved for borrowers or guarantors under ADBs sovereign operations that do not have any OCR loans in arrears with ADB, the continuation of waiver of 0.2% of the lending spread on outstanding loans that carry a lending spread of 0.6% to be applicable to all interest periods up to 31 December 2012. This extends the previous waivers that have been provided since July 2004. For loans negotiated before 1 January 2007, a flat commitment fee of 0.75% was charged for sovereign program loans and a progressive commitment fee of 0.75% was maintained for sovereign project loans. In October 2006, the Board approved a change in the commitment charge policy for sovereign project loans negotiated after 1 January 2007, from 0.75% on a progressive structure of undisbursed loan balances to a flat commitment fee of 0.35% on the full amount of undisbursed balances. Further to this, the Board also approved in April 2007, the waiver of 0.1% of the commitment charge on the undisbursed balances of sovereign project loans negotiated after 1 January 2007 and 0.5% of the commitment charge on the undisbursed balances of sovereign program loans. ADB has extended to provide waivers on commitment charges up to 31 December 2012. In December 2007, the Board approved the reduction of the commitment charge from 0.75% for sovereign program loans and 0.35% for sovereign project loans to a flat commitment fee of 0.15% for both sovereign program and project loans negotiated on or after 1 October 2007, and eliminated the waiver mechanism for such loans.
68
cOntinUED
Loans in Non-Accrual Status ADB places loans overdue in non-accrual status when they are past due by six months. One nonsovereign loan was in non-accrual status as of 31 December 2011 (two 2010). The principal outstanding was $22,826,000 ($31,861,000 2010) of which $22,826,000 ($30,028,000 2010) was overdue. Loans in non-accrual status resulted in $1,000 not being recognized as income from nonsovereign loans for the year ended 31 December 2011 (net recovery of $285,000 2010). There were no sovereign loans in non-accrual status in 2011 and 2010. An analysis of the age of the recorded loans outstanding including receivable arising from guarantee call, that are past due as of 31 December 2011 and 2010 are as follows:
Overdue Loan service payments 190 Days 2011 Sovereign Loans Nonsovereign Loans Total Allowance for loan losses Unamortized direct loan origination feesnet Loans Outstanding 2010 Sovereign Loans Nonsovereign Loans Total Allowance for loan losses Unamortized direct loan origination feesnet Loans Outstanding 53,441,000 $45,943,811,000 $ 1,980,000 9,396,000 $11,376,000 $ 20,817,000 $20,817,000 $ 1,980,000 30,213,000 $32,193,000 $43,565,048,000 2,335,634,000 $45,900,682,000 $ 43,567,028,000 2,365,847,000 45,932,875,000 (42,505,000) 64,900,000 $49,759,260,000 $ $ $ 23,003,000 $23,003,000 $ $46,972,115,000 2,734,272,000 $49,706,387,000 $ 46,972,115,000 2,757,275,000 49,729,390,000 (35,030,000) 23,003,000 $23,003,000 > 90 Days total current total Loans
As of 31 December 2011 and 2010, there were no loans 90 days or greater past due still accruing interest.
69

Undisbursed loan commitments and an analysis of loans by borrowers as of 31 December 2011 are shown in OCR-6. The carrying amounts of loans outstanding by loan product at 31 December 2011 and 2010 are as follows:
2011 Sovereign Loans Fixed rate multicurrency loans Pool-based single currency () loans Pool-based single currency (US$) loans LIBOR-based loans Local currency loans $ 11,488,000 1,970,499,000 5,137,821,000 39,702,802,000 149,505,000 46,972,115,000 Allowance for loan losses Unamortized direct loan origination costnet Subtotal Nonsovereign Loans Fixed rate loans LIBOR-based loans Local currency loans Others 2,024,470,000 732,628,000 177,000 2,757,275,000 Allowance for loan losses Unamortized front-end feenet Subtotal total (35,030,000) (15,634,000) (50,664,000) 2,706,611,000 $49,759,260,000 2,515,000 1,716,322,000 646,824,000 186,000 2,365,847,000 (42,505,000) (13,796,000) (56,301,000) 2,309,546,000 $45,943,811,000 80,534,000 80,534,000 47,052,649,000 $ 15,863,000 2,391,854,000 5,857,460,000 35,301,851,000 43,567,028,000 67,237,000 67,237,000 43,634,265,000 2010
70
cOntinUED
Allowance for Loan Losses ADB has not suffered any losses of principal on sovereign loans to date. During the year, no loan loss provision has been made against outstanding sovereign loans (write-back of $2,723,000 on one loan 2010). No accumulated loan loss provision for sovereign loans as of 31 December 2011 (nil 2010). A total of $7,475,000 in loss provision for nonsovereign loans was written back ($58,014,000 2010) consisting of $5,657,000 provision ($40,390,000 2010), $13,052,000 write back ($98,850,000 write back/off 2010), and $80,000 negative translation adjustment ($446,000 2010). The changes in the allowance for loan losses during 2011 and 2010 as well as information pertaining to loans which were subject to specific allowance for loan losses are as follows:
2011 sovereign Loans allowance for credit Losses: Beginning balance Provision during the year Written back/off Translation adjustment Ending Balance Ending balance individually evaluated for impairment Ending balance collectively evaluated for impairment Loans: Ending Balance Ending balance individually evaluated for impairment Ending balance collectively evaluated for impairment $46,972,115,000 $2,757,275,000 $49,729,390,000 $43,567,028,000 $2,365,847,000 $45,932,875,000 $ $ $ $ 42,505,000 5,657,000 (13,052,000) (80,000) 35,030,000 $ $ 42,505,000 5,657,000 (13,052,000) (80,000) 35,030,000 $ $ 2,723,000 (2,723,000) $ $ 100,519,000 40,390,000 (98,850,000) 446,000 42,505,000 $ $ 103,242,000 40,390,000 (101,573,000) 446,000 42,505,000 nonsovereign Loans total sovereign Loans 2010 nonsovereign Loans total
9,609,000
9,609,000
9,152,000
9,152,000
25,421,000
25,421,000
33,353,000
33,353,000
24,103,000
24,103,000
32,046,000
32,046,000
$2,733,172,000
$ 2,733,172,000
$2,333,801,000
$ 2,333,801,000
71

Allowance is recorded for all impaired loans. The recorded loan receivable in the impaired loans with related allowance for loan losses during 2011 and 2010 are as follows:
2011 Recorded Loan Receivable Sovereign Loans Nonsovereign Loans $ 24,103,000 Unpaid principal balance $ Related allowance $ Recorded Loan Receivable $ 2010 Unpaid principal balance $ Related allowance $
23,003,000
9,609,000
32,046,000
30,213,000
9,152,000
No loans were modified or restructured for the year ended 31 December 2011. Credit Risks and Quality of Loans ADB is exposed to credit risks in the loan portfolio if a borrower defaults or if its creditworthiness deteriorates. Credit risk represents the potential loss due to possible nonperformance by obligors and counterparties under the terms of the contract. ADB manages country risk for lending operations through continuous monitoring of creditworthiness of the borrowers and rigorous capital adequacy framework. ADB monitors credit quality of the loans by assigning a risk rating to each loan on an internal scale from 1 to 14 with 1 denoting the lowest expectation of credit risk and 14 denoting that the borrower has defaulted. The rating scale corresponds directly to the rating scales used by international rating agencies. For sovereign loans, ADB generally uses the average sovereign ratings assigned by external rating agencies which are mapped to ADBs internal scale. For nonsovereign loans, each transaction is reviewed and assigned a rating based on a methodology that is broadly aligned with the rating approach of international rating agencies. The risk ratings are used to monitor the credit risk in the portfolio, derive the expected losses in the loan portfolio, and monitor the capital adequacy. The following table summarizes the credit quality of sovereign and nonsovereign loans. High credit risk includes $24,103,000 in nonsovereign loans that were considered impaired ($32,046,000 nonsovereign loans 2010).
sovereign Loans Risk class Low credit risk Medium credit risk High credit risk total Risk Rating 15 (AAA to BBB) 611 (BB+ to B) 1214 (CCC+ to D) 2011 $ 23,006,067,000 23,938,700,000 27,348,000 $46,972,115,000 2010 $ 20,100,832,000 23,444,532,000 21,664,000 $43,567,028,000 $ nonsovereign Loans 2011 773,600,000 1,910,494,000 73,181,000 $2,757,275,000 $ 2010 705,631,000 1,378,401,000 281,815,000 $2,365,847,000
As of 31 December 2011, ADB had a significant concentration of credit risk to Asia and the Pacific region associated with loan products. The credit exposure determined based on fair value of loans and including the outstanding guarantees amounted to $53,373,873,000 ($49,388,003,000 2010).
72
cOntinUED
Cofinancing ADB functions as lead lender in cofinancing arrangements with other participating financial institutions who also provide funds to ADBs sovereign and nonsovereign borrowers. In such capacity, ADB provides loan administration services, which include loan disbursements and loan collections. The participating financial institutions have no recourse to ADB for their outstanding loan balances. These loans are not recorded as part of OCRs Balance Sheet. Loans administered by ADB on behalf of participating institutions during the year ending 31 December 2011 and 2010 are as follows:
2011 amount Sovereign loans Nonsovereign loans total $1,192,845,000 356,687,000 $1,549,532,000 no. of Loans 42 8 50 2010 amount $1,055,810,000 356,701,000 $1,412,511,000 no. of Loans 40 10 50
During the year ended 31 December 2011, a total of $65,000 ($105,000 2010) was received as compensation for arranging and administering such loans. This amount has been included in Revenue from other sources. NOTE FGUARANTEES ADB provides guarantees under its sovereign and nonsovereign operations. Such guarantees include (i) partial credit guarantees where certain principal and/or interest payments are covered; and (ii) political risk guarantees, which provide coverage against well-defined sovereign risks. While counterguarantees from the host government are required for all public sector guarantees, guarantees for nonsovereign projects may be provided with or without a host government counterguarantee. ADB also seeks risk-sharing arrangements that set ADBs net exposure under a guarantee at the lowest level required to mobilize the necessary financing while maintaining a participation that is meaningful to its financing partners. A counterguarantee takes the form of a counter-guarantors agreement to indemnify ADB for any payments it makes under the guarantee. In the event that a guarantee is called, ADB has the contractual right to require payment from the counter-guarantor, on demand, or as ADB may otherwise direct. The maturity of the underlying instruments for which ADB provided the partial credit guarantees is generally 10 or more years. ADBs political risk guarantee is callable when a guaranteed event has occurred and such an event has resulted in debt service default to the guaranteed lender. As of 31 December 2011, total loan arising from guarantee call was $177,000 ($186,000 2010) with corresponding allowance for losses of $129,000 ($116,000 2010). None of the outstanding amounts as of 31 December 2011 and 2010 were subject for call.
73

The committed and outstanding amounts of these guarantee obligations as of 31 December 2011 and 2010 covered:
2011 committed amount Partial Credit Guarantees with counterguarantee without counterguarantee $ 1,550,995,000 759,913,000 2,310,908,000 Political Risk Guarantees with counterguarantee without counterguarantee Others total 139,967,000 29,535,000 169,502,000 $2,480,410,000 92,093,000 14,180,000 106,273,000 $1,995,188,000 143,317,000 36,555,000 179,872,000 950,000 $2,331,671,000 112,870,000 19,409,000 132,279,000 950,000 $1,969,109,000 $1,533,445,000 355,470,000 1,888,915,000 $ 1,353,617,000 797,232,000 2,150,849,000 $1,270,701,000 565,179,000 1,835,880,000 Outstanding amount committed amount 2010 Outstanding amount
The committed amount represents the maximum potential amount of undiscounted future payment that ADB could be required to make, inclusive of standby portion for which ADB is committed but not currently at risk. The outstanding amount represents the guaranteed amount utilized under the related loans, which have been disbursed as of the end of the year, exclusive of the standby portion. As of 31 December 2011, a total liability of $13,857,000 ($17,604,000 2010) relating to standby ready obligation for two partial credit risk guarantees (three 2010) and two political risk guarantees (three 2010) has been included in ACCOUNTS PAYABLE AND OTHER LIABILITIES Miscellaneous on the Balance Sheet for all guarantees issued after 31 December 2002. As of 31 December 2011, no (one 2010) partial credit guarantee with nonsovereign counterguarantee had collateral from a counterguarantee. NOTE GEQUITY INVESTMENTS ADBs equity investments may be in the form of direct equity investments (e.g., common, preferred, or other capital stock) or through investment funds (e.g., private equity funds). They are classified and accounted into: (i) investments classified as available for sale; (ii) investments accounted under equity method; and (iii) investments in other non-controlled entities without readily available fair values are reported at cost or written down value.
74
cOntinUED
The carrying value of equity investments as of 31 December 2011 and 2010 are as follows:
2011 Equity method Available for sale Cost method total $460,708,000 297,741,000 212,173,000 $970,622,000 2010 $434,805,000 491,637,000 181,756,000 $1,108,198,000
As of 31 December 2011, there were five (eight 2010) equity investments which were classified as available for sale totaling $297,741,000 ($491,637,000 2010). There was one investment that sustained unrealized losses in 2011 (nil 2010). Additional information relating to equity investments classified as available for sale is as follows:
2011 as of 31 December Amortized cost Estimated fair value Gross unrealized gains Gross unrealized losses For the years ended 31 December: Change in net unrealized (losses) gains from prior year Proceeds from sales Gross gain on sales Gross loss on sales (151,175,000) 150,136,000 110,838,000 (320,000) 30,673,000 10,288,000 7,493,000 $ 76,040,000 297,741,000 221,718,000 (17,000) $118,762,000 491,637,000 372,875,000 2010
Approved equity investment facility that has not been disbursed was $611,500,000 at 31 December 2011 ($471,456,000 2010). NOTE HDERIVATIVE INSTRUMENTS ADB uses derivative instruments for asset and liability management of individual positions and portfolios. The fair value of outstanding currency and interest rate swap agreements is determined at the estimated amount that ADB would receive or pay to terminate the agreements using marketbased valuation models. The basis of valuation is the present value of expected cash flows based on market data.
75

Interest rate swaps: Under a typical interest rate swap agreement, one party agrees to make periodic payments based on a notional principal amount and an interest rate that is fixed at the outset of the agreement. The counterparty agrees to make floating rate payments based on the same notional principal amount. The terms of ADBs interest rate swap agreements usually match the terms of particular borrowings. Currency swaps: Under a typical currency swap agreement, one party agrees to make periodic payments in one currency while the counterparty agrees to make periodic payments in another currency. The payments may be fixed at the outset of the agreement or vary based on interest rates. A receivable is created for the currency swapped out, and a payable is created for the currency swapped in. The terms of ADBs currency swap agreements usually match the terms of particular borrowings. FX swaps: Under a typical foreign exchange swap, ADB agrees to make payment in one currency while the counterparty agrees to make payment in another currency, on the basis of agreed spot and forward rates. The terms of ADBs FX swaps agreement usually match the terms of particular investments. Exchange Traded Futures: Futures are contracts for delayed delivery of securities or money market instruments in which the seller agrees to make delivery at a specified future date of a specified instrument at a specified price or yield. Initial margin requirements are met with cash or securities, and changes in the market prices are generally settled daily in cash. ADB generally closes out open positions prior to maturity. Therefore, cash receipts or payments are limited to the change in market value of the future contracts. As of 31 December 2011, net payments on future contracts amounted to $556,000 ($398,000 2010). Included in Receivable/Payable from Swaps - Others are interest rate and currency swaps that ADB has entered into for the purpose of hedging specific investments and loans. The loan related swaps were executed to better align the composition of certain outstanding loans with funding sources.
76
cOntinUED
Fair Value of Derivative Instruments The table below provides information on the fair value amounts and the location of ADBs derivative instruments on the Balance Sheet as of 31 December 2011 and 2010:
Derivative assets Fair Value Balance sheet Location Borrowings related swaps Currency swaps Interest rate swaps FX swaps Total Investment related swaps Currency swaps Interest rate swaps FX swaps Total Loans related swaps Currency swaps Interest rate swaps Total total derivatives not designated as hedging instruments Receivable from Swaps - Others 620,385,000 50,982,000 671,367,000 320,421,000 93,243,000 413,664,000 Receivable from Swaps - Others 1,877,873,000 55,943,000 3,615,024,000 5,548,840,000 543,871,000 98,572,000 724,951,000 1,367,394,000 Payable for Swaps Others 608,110,000 114,209,000 722,319,000 318,178,000 173,574,000 491,752,000 Receivable from Swaps - Borrowings $26,014,414,000 5,139,633,000 219,057,000 31,373,104,000 $25,187,815,000 4,287,870,000 29,475,685,000 Payable for Swaps Others 2,104,936,000 116,731,000 3,632,380,000 5,854,047,000 703,710,000 140,782,000 741,597,000 1,586,089,000 2011 2010 Balance sheet Location Payable for Swaps Borrowings $23,742,774,000 3,505,734,000 216,857,000 27,465,365,000 $22,464,043,000 3,310,970,000 25,775,013,000 2011 Derivative Liabilities Fair Value 2010
$37,593,311,000
$31,256,743,000
$34,041,731,000
$27,852,854,000
77

Effect of Derivative Instruments on the Statement of Income and Expenses ADB reports changes in the fair value of its derivative instruments as part of net unrealized gains and losses in its Statement of Income and Expenses while all interest income, expenses, and related amortization of discounts, premiums, and fees are reported as part of revenue and expenses. These are summarized below:
amount of gain (Loss) recognized in income on Derivatives Location of gain (Loss) recognized in income on Derivatives Futures Investment related swaps Currency swaps Net Realized Gains (Losses) $ 2011 (556,000) $ 2010 (398,000)
Net Unrealized Gains Revenue from Investments Net Realized Gains from Investments
(1,883,000) (5,536,000) (18,920,000) (5,362,000) (6,990,000) 3,894,000 9,325,000 63,000 (25,409,000)
3,703,000 (7,124,000) 7,128,000 (4,576,000) (5,801,000) 177,000 975,000 6,335,000 817,000 14,292,000 (15,863,000) 7,050,000 (49,422,000) (43,943,000) 167,899,000 1,286,229,000 301,275,000 593,365,000 (1,000) 29,000 2,348,796,000 $2,305,272,000
Interest rate swaps
Net Unrealized Gains Revenue from Investments Net Realized Gains from Investments
FX swaps
Net Unrealized Gains Revenue from Investments
FX forward Loans related swaps Currency swaps
Net Realized Gains (Losses)
Net Unrealized Gains Revenue from Loans
(21,707,000) (17,641,000) 13,102,000 (44,525,000) (70,771,000)
Interest rate swaps
Net Unrealized Gains Revenue from Loans
Borrowings related swaps Currency swaps
Net Unrealized Gains Borrowings and related expenses
716,606,000 1,302,275,000 648,521,000 622,724,000 (2,000) 632,000 3,290,756,000 $3,194,020,000
Interest rate swaps
FX forward
total
78
cOntinUED
Counterparty Credit Risks ADB undertakes derivative transactions with its eligible counterparties and transacts in various financial instruments as part of liquidity and asset/liability management purposes that may involve credit risks. For all investment securities and their derivatives, ADB manages credit risks by following the policies set forth in the Investment Authority and other risk management guidelines (Note D). ADB has a potential risk of loss if the swap counterparty fails to perform its obligations. In order to reduce such credit risk, ADB only transacts with counterparties eligible under ADBs swap guidelines which include a requirement that the counterparties have a credit rating of A or higher and generally requires entering into master swap agreements which contain legally enforceable close-out netting provisions for all counterparties with outstanding swap transactions. The reduction in exposure as a result of these netting provisions can vary as additional transactions are entered into under these agreements. The extent of the reduction in exposure may therefore change substantially within a short period of time following the balance sheet date. ADB has entered into several agreements with its derivative counterparties under the Master Agreement of the International Swaps and Derivatives Association (ISDA) and the Master Agreement of the National Association of Financial Market Institutional Investors (NAFMII). The agreements provide for the right of a party to terminate if any of the various events of default and termination events specified occur. Events of default include failure to pay and cross default. Termination events include the situation where the long term unsecured and unsubordinated indebtedness of ADB or the counterparty ceases to be rated at least Baa3 by Moodys Investor Service, Inc. or BBB by Standard and Poors Ratings Group, or such indebtedness ceases to be rated by Moodys or S&P. If ADBs counterparties are entitled under the agreements to terminate their derivative transactions with ADB, ADB will be required to pay an amount equal to its net liability position with each counterparty (in the case of counterparties who have entered into the ISDA Master Agreement) and an amount equal to its gross liability position with each counterparty (in the case of counterparties who have entered into the NAFMII Master Agreement). The aggregate fair value of all derivative instruments that ADB has under ISDA Master Agreement that are in a net liability (negative marked-to-market) position as of 31 December 2011 is $456,030,000 ($520,347,000 2010). There is no gross liability position in the aggregate fair value of all derivative instruments that ADB has under the NAFMII Master Agreement as of 31 December 2011 (gross liability position of $3,106,000 2010). Counterparty credit risk is also mitigated by requiring counterparties to post collateral based on specified credit rating-driven thresholds. As of 31 December 2011, ADB had received collateral of $3,319,857,000 ($2,890,208,000 2010) in connection with the swap agreements. Of this amount, $1,942,954,000 ($1,588,350,000 2010) was recorded as swap related collateral (restricted cash). NOTE IPROPERTY, FURNITURE, AND EQUIPMENT In 1991, under the terms of an agreement with the Philippines (Government), ADB returned the former headquarters premises, which had been provided by the Government. In accordance with the agreement as supplemented by a memorandum of understanding, ADB was compensated $22,657,000 for the return of these premises. The compensation is in lieu of being provided premises under the agreement and accordingly, is deferred and amortized over the estimated life of the new headquarters building as a reduction of occupancy expense. The amortization for the year ended
79

31 December 2011 amounted to $396,000 ($388,000 2010) reducing depreciation expense for the new headquarters building from $4,342,000 ($4,342,000 2010) to $3,946,000 ($3,954,000 2010). At 31 December 2011, the unamortized deferred compensation balance (included in ACCOUNTS PAYABLE AND OTHER LIABILITIES Miscellaneous) was $7,527,000 ($7,931,000 2010). At 31 December 2011, accumulated depreciation for property, furniture, and equipment was $201,868,000 ($185,292,000 2010). The changes in the property, equipment, and intangible assets during 2011 and 2010, as well as information pertaining to accumulated depreciation, are as follows:
property, Furniture, and Equipment Land cost: Balance, 1 January 2011 Additions during the year Disposals during the year Balance, 31 December 2011 accumulated Depreciation: Balance, 1 January 2011 Depreciation during the year Disposals during the year Balance, 31 December 2011 net Book Value, 31 December 2011 $10,178,000 (96,205,000) (5,998,000) (102,203,000) $107,058,000 (89,087,000) (13,051,000) 2,473,000 (99,665,000) $ 31,764,000 $12,451,000 (185,292,000) (19,049,000) 2,473,000 (201,868,000) $161,451,000 10,178,000 $10,178,000 $ 201,607,000 7,654,000 209,261,000 $117,224,000 16,878,000 (2,673,000) 131,429,000 $17,460,000 (5,009,000) 12,451,000 $ 346,469,000 19,523,000 (2,673,000) 363,319,000 Buildings and Improvements Office Furniture and Equipment Work in Progress grand total
property, Furniture, and Equipment Land cost: Balance, 1 January 2010 Additions during the year Disposals during the year Balance, 31 December 2010 accumulated Depreciation: Balance, 1 January 2010 Depreciation during the year Disposals during the year Balance, 31 December 2010 net Book Value, 31 December 2010 $10,178,000 (91,009,000) (5,196,000) (96,205,000) $105,402,000 (78,812,000) (12,095,000) 1,820,000 (89,087,000) $ 28,137,000 $17,460,000 (169,821,000) (17,291,000) 1,820,000 (185,292,000) $161,177,000 $10,178,000 10,178,000 $ 197,064,000 4,543,000 201,607,000 $106,437,000 12,650,000 (1,863,000) 117,224,000 $14,854,000 2,606,000 17,460,000 $328,533,000 19,799,000 (1,863,000) 346,469,000 Buildings and Improvements Office Furniture and Equipment Work in Progress grand total
80
cOntinUED
NOTE JBORROWINGS The key objective of ADBs borrowing strategy is to raise funds at the most stable and lowest possible cost for the benefit of its borrowers. ADB uses financial derivative instruments in connection with its borrowing activities to increase cost efficiency, while achieving risk management objectives. Currency and interest rate swaps enable ADB to raise operationally needed currencies in a cost-efficient way and to maintain its borrowing presence in the major capital markets. Interest rate swaps are used to reduce interest rate mismatches arising from lending and liquidity operations. Refer to OCR-7 for Summary Statement of Borrowings. NOTE KCAPITAL STOCK, CAPITAL TRANSFERRED TO ASIAN DEVELOPMENT FUND, MAINTENANCE OF VALUE OF CURRENCY HOLDINGS, AND MEMBERSHIP Capital Stock On 29 April 2009, the Board of Governors of ADB adopted Resolution No. 336 increasing ADBs authorized capital stock by 7,092,622 shares (200%), and the corresponding subscriptions for such increase by its members. Each member is entitled to subscribe for that number of additional shares equivalent to 200% of its allocated shares immediately prior to the effective date of the Resolution. Each member may subscribe for the additional shares at any time up to 31 December 2010. On 26 January 2011, the Board of Directors approved the extension of the subscription deadline for the Fifth General Capital Increase (GCI V) to 30 June 2011. A further extension of the GCI V subscription period until 30 September 2011 was approved by the Board of Directors on 1 August 2011. The authorized capital stock of ADB as of 31 December 2011 consists of 10,638,933 shares (10,638,933 2010), of which 10,583,580 shares (9,347,201 2010) have been subscribed by members. Of the subscribed shares, 10,052,666 (8,865,741 2010) are callable and 530,914 (481,460 2010) are paid-in. The callable share capital is subject to call by ADB only as and when required to meet ADBs obligations incurred on borrowings of funds for inclusion in its OCR or on guarantees chargeable to such resources. The paid-in share capital has been paid or is payable in installments, partly in convertible currencies and partly in the currency of the subscribing member which may be convertible. In accordance with Article 6, paragraph 3 of the Charter, ADB accepts nonnegotiable, noninterest-bearing demand obligations in satisfaction of the portion payable in the currency of the member, provided such currency is not required by ADB for the conduct of its operations. Nonnegotiable, noninterest-bearing demand obligations received on demand amounted to $282,001,000 ($217,396,000 2010), while those notes received with fixed encashment schedules totaled $296,990,000 ($123,734,000 2010).
81

As of 31 December 2011, all matured installments amounting to $5,322,254,000 ($4,329,825,000 2010) were received. Installments not due aggregating $2,828,710,000 ($3,084,711,000 2010) are as follows:
For the year ending 31 December: 2012 2013 2014 2015 2016 $ 748,779,000 845,700,000 845,700,000 388,497,000 34,000 $2,828,710,000
Capital Transferred to Asian Development Fund Pursuant to the provisions of Article 19, paragraph 1(i) of the Charter, the Board of Governors has authorized the setting aside of 10% of the unimpaired paid-in capital paid by members pursuant to Article 6, paragraph 2(a) of the Charter and of the convertible currency portion paid by members pursuant to Article 6, paragraph 2(b) of the Charter as of 28 April 1973 to be used as a part of the Special Funds of ADB. The resources so set aside amounting to $73,094,000 as of 31 December 2011 ($73,320,000 2010) expressed in terms of the SDR on the basis of $1.53527 ($1.54003 2010) per SDR ($57,434,000 in terms of $1.20635 per 1966 dollarNote B), were allocated and transferred to the Asian Development Fund. Maintenance of Value of Currency Holdings Prior to 1 April 1978, the effective date of the Second Amendment to the IMF Articles, ADB implemented maintenance of value (MOV) in respect of holdings of member currencies in terms of 1966 dollars, in accordance with the provisions of Article 25 of the Charter and relevant resolutions of the Board of Directors. Since then, settlement of MOV has been put in abeyance. In as much as the valuation of ADBs capital stock and the basis of determining possible MOV obligations are still under consideration, notional amounts have been calculated provisionally in terms of the SDR as receivable from or payable to members in order to maintain the value of members currency holdings. The notional MOV amounts of receivables and payables are offset against one another and shown as net notional amounts required to maintain value of currency holdings in the CAPITAL AND RESERVES portion of the Balance Sheet. The carrying book value for such receivables and payables approximates its fair value. The net notional amounts as of 31 December 2011 consisted of (i) the increase of $1,044,331,000 ($835,309,000 2010) in amounts required to maintain the value of currency holdings to the extent of matured and paid-in capital subscriptions due to the increase in the value of the SDR in relation to the United States dollar during the period from 1 April 1978 to 31 December 2011 and (ii) the net
82
cOntinUED
decrease of $448,525,000 ($416,123,000 2010) in the value of such currency holdings in relation to the United States dollar during the same period. In terms of receivable from and payable to members, they are as follows:
2011 Notional MOV Receivables Notional MOV Payables total $1,132,513,000 536,707,000 $ 595,806,000 2010 $ 906,821,000 487,635,000 $419,186,000
Membership As of 31 December 2011 and 2010, ADBs shareholders consist of 67 member countries, 48 countries from the region and 19 countries from outside the region (OCR-8). NOTE LRESERVES Ordinary Reserve and Net Income Under the provisions of Article 40 of the Charter, the Board of Governors shall determine annually what part of the net income shall be allocated, after making provision for reserves, to surplus and what part, if any, shall be distributed to the members. In May 2011, the Board of Governors approved the allocation of 2010 net income of $614,489,000, after appropriation of guarantee fees to special reserve, as follows: (i) $45,900,000 be transferred from Loan Loss Reserve; (ii) $77,779,000 representing the ASC 815/825 adjustments and the unrealized portion of net income from equity investments accounted under equity method, to Cumulative Revaluation Adjustments account; (iii) $422,610,000 to Ordinary Reserve; (iv) $120,000,000 to Asian Development Fund (ADF); and (v) $40,000,000 to Technical Assistance Special Fund (TASF). In May 2010, $447,607,000 and $247,162,000 were transferred from Cumulative Revaluation Adjustments Account and Loan Loss Reserve, respectively, and added to the net loss of OCR for 2009 of $36,725,000 and were allocated as follows: (i) $230,882,000 to Ordinary Reserve; (ii) $247,162,000 to Surplus; (iii) $120,000,000 to Asian Development Fund; (iv) $40,000,000 to Technical Assistance Special Fund; and (v) $10,000,000 each to Regional Cooperation and Integration Fund and Climate Change Fund. The restatement of the capital stock for purposes of these financial statements on the basis of the SDR instead of the 1966 dollar (Note B) resulted in a net credit of $6,925,000 to the Ordinary Reserve during the year ended 31 December 2011 (net credit of $9,771,000 2010). That credit is the decrease in the value of the matured and paid-in capital subscriptions caused by the change during the year in the value of the SDR in relation to the United States dollar not allocated to members as notional maintenance of value adjustments in accordance with resolutions of the Board of Directors.
83

Cumulative Revaluation Adjustments Account In May 2002, the Board of Governors approved the allocation of net income representing the cumulative net unrealized gains (losses) on derivatives, as required by ASC 815 to a separate category of Reserves Cumulative Revaluation Adjustments Account. Beginning 2008, the unrealized portion of net income from equity investments accounted under equity method is also transferred to this account. During 2011, the 2010 net unrealized gains on derivatives of $42,738,000 (net unrealized losses on derivatives of $466,215,000 2010) and net gains from equity investments accounted under equity method of $35,041,000 ($18,608,000 2010) resulted in the credit balance of the Cumulative Revaluation Adjustments account at 31 December 2011 to $261,300,000 ($183,521,000 2010). Special Reserve The Special Reserve includes commissions on loans and guarantee fees received, which are required to be set aside pursuant to Article 17 of the Charter to meet liabilities on guarantees. For the year ended 31 December 2011, guarantee fees amounting to $15,722,000 ($11,322,000 2010) were appropriated to Special Reserve. Loan Loss Reserve In 2004, the Board of Directors approved the setting aside of Loan Loss Reserve as part of Capital and Reserves to be used as a basis for capital adequacy against the estimated expected loss in ADBs sovereign loans and guarantees portfolio. In 2006, the Board of Directors extended this policy to nonsovereign loans and guarantees. In 2011, the estimated loan loss reserve requirement was $200,100,000 resulting from a decrease in expected loss of $45,900,000. The estimated expected loss is determined using ADBs credit risk model net of allowance for loan losses recorded in the balance sheet. Surplus Surplus represents funds for future use to be determined by the Board of Governors. In 2011, there was no additional allocation to surplus. Comprehensive Income Comprehensive income has two major components: net income and other comprehensive income comprising gains and losses affecting equity that, under accounting principles generally accepted in the United States of America, are excluded from net income. Other comprehensive income includes items such as the effects of the implementation of ASC 815, unrealized gains and losses on financial instruments classified as available for sale, translation adjustments, and pension and postretirement liability adjustment.
84
cOntinUED
The changes in Accumulated Other Comprehensive Loss balances for the years ended 31 December 2011 and 2010 expressed in thousands of US dollars are as follow:
asc 815 adjustments and amortizations 2011 Balance, 1 January Changes from period activity Balance, 31 December $ $ $ 2010 $(1,620) 1,620 accumulated translation adjustments 2011 $125,727 18,358 $144,085 $ 2010 6,747 118,980 $125,727 Unrealized investment holding gains (Losses) 2011 $742,256 (124,678) 2010 $683,627 58,629 pension/postretirement Liability adjustmentasc 715 & 958 2011 2010 accumulated Other comprehensive (Loss) income 2011 2010
$(921,328) $(646,437) $ (53,345) $ 42,317 (261,605) (274,891) (367,925) (95,662)
$617,578 $742,256 $(1,182,933) $(921,328) $(421,270) $(53,345)
NOTE MINCOME AND EXPENSES Total income from loans for the year ended 31 December 2011 was $649,599,000 ($680,479,000 2010). The average yield on the loan portfolio during the year was 1.34% (1.61% 2010), excluding premium received on prepayment and other loan income. Premium on prepaid loans during 2011 amounted to $334,000 ($6,000 2010). Total income from investments including net realized gains on sales, net unrealized losses on derivatives, and interest earned for securities transferred under repurchase agreements and resale arrangements for the year ended 31 December 2011 was $432,663,000 ($401,406,000 2010). The annualized rate of return on the average investments held during the year, based on the portfolio held at the beginning and end of each month, was 2.04% (2.17% 2010) excluding unrealized gains and losses on investments and 2.20% (2.20% 2010) including unrealized gains and losses on investments. Including net realized gains, equity investment operations resulted in a net income of $164,644,000 ($106,505,000 2010) for the year ended 31 December 2011, excluding equity investments related expenses. This included a total of $28,989,000 share in the net gains of investee companies accounted under equity method; and dividend income, gains on disposals, and other income of $14,081,000, $122,723,000, and $961,000, respectively, offset by $2,109,000 impairment losses mostly associated with restructured accounts. Income from other sources primarily included income received as executing agency amounting to $9,189,000 ($13,888,000 2010), interest income earned on bank accounts, staff accounts, and various securities from troubled debt restructuring totaled $6,621,000 ($4,800,000 2010), and reversals of expenses charged to prior years of $4,437,000 ($4,502,000 2010). These were offset by the impairment losses on debt securities amounting to $19,798,000 ($2,959,000 2010). Total borrowing expense of $362,419,000 ($384,603,000 2010) consisted of interest expense of $352,800,000 ($369,592,000- 2010), amortization of borrowings issuance costs and other expenses
85

of $15,116,000 ($16,456,000 2010), and net realized gains on redemption of bonds of $5,497,000 ($1,444,000 2010). Total depreciation expense incurred for the year ended 31 December 2011 amounted to $18,653,000 ($16,904,000 2010). ADB leases office spaces and other assets. Rental expenses under operating leases for the years ended 31 December 2011 and 2010 were $9,485,000 and $8,321,000, respectively. The minimum rental payments required under operating leases that have initial or noncancelable lease terms in excess of one year as of 31 December 2011 are as follows:
year ending 31 December 2012 2013 2014 2015 Later years Minimum future rentals $5,778,000 5,005,000 3,428,000 1,844,000 1,433,000
Administrative expenses (other than those pertaining directly to ordinary operations and special operations) for the year ended 31 December 2011 were apportioned between OCR and ADF in proportion to the relative volume of operational activities. Of the total administrative expenses of $589,811,000 ($494,209,000 2010), $254,829,000 ($225,911,000 2010) was charged to ADF. The balance of administrative expenses after allocation charged to OCR was reduced by the deferral of direct loan origination costs of $19,037,000 ($12,800,000 2010) related to new loans made effective for the year ended 31 December 2011 (Note B). For the year ended 31 December 2011, write back of $7,395,000 ($44,713,000 2010) consisted of $5,657,000 additional loan loss provision ($40,390,000 2010) and $13,052,000 ($85,103,000 2010) write backs. Net unrealized gains incorporated $1,316,000 net gains (net losses of $5,414,000 2010) from the translation adjustments of financial instruments denominated in non-functional currencies (Brazilian real, Mexican peso, and South African rand) and net unrealized gains on derivatives of $4,367,000 ($48,152,000 unrealized gains 2010), which were made up of:
2011 Unrealized gains (losses) on: Borrowings and related swaps Investments related swaps Loan related swaps FX forward FX swaps Amortization of the ASC 815 transition adjustment total $30,161,000 (20,803,000) (8,605,000) 3,892,000 (278,000) $ 4,367,000 $28,416,000 (873,000) 21,342,000 (1,000) 975,000 (1,707,000) $48,152,000 2010
86
cOntinUED
NOTE NRELATED PARTY TRANSACTIONS At 31 December 2011 and 2010, ADB had the following receivables from/payables to special funds and externally funded trust funds under ADB administration (Agency Trust Funds) resulting from administrative arrangements and operating activities which are included in Miscellaneous under OTHER ASSETS and ACCOUNTS PAYABLE AND OTHER LIABILITIES:
2011 amounts receivable from: Asian Development Fund (Note M) Technical Assistance Special Fund Japan Special Fund Asian Development Bank Institute Asian Tsunami Fund Pakistan Earthquake Fund Regional Cooperation and Integration Fund Climate Change Fund Asia Pacific Disaster Response Fund Agency Trust Fundsnet Staff Retirement Plan total amounts payable to: Staff Retirement Plan $ 7,566,000 $ $41,432,000 2,000 12,000 174,000 7,000 50,000 76,000 8,000 7,000 4,421,000 $46,189,000 $28,628,000 95,000 134,000 267,000 225,000 54,000 44,000 53,000 56,000 1,651,000 343,000 $31,550,000 2010
NOTE OSTAFF RETIREMENT PLAN AND POSTRETIREMENT MEDICAL BENEFITS Staff Retirement Plan ADB has a contributory defined benefit Staff Retirement Plan (the Plan). Every employee, as defined under the Plan, shall, as a condition of service, become a participant from the first day of service, provided that at such a date, the employee has not reached the normal retirement age of 60. The Plan applies also to members of the Board of Directors who elect to join the Plan. Retirement benefits are based on length of service and highest average two years remuneration during eligible service. The Plan assets are segregated and are not included in the accompanying Balance Sheet. The costs of administering the Plan are absorbed by ADB, except for fees paid to the investment managers and related charges, including custodian fees, which are borne by the Plan. Participants hired on or before 30 September 2006 are required to contribute 9 1/3% of their salary to the Plan while those hired after that date are not required to contribute to the plan. Participants may also make discretionary contributions. ADBs contribution is determined at a rate sufficient to cover that part of the costs of the Plan not covered by the participants contributions. 87

Expected Contributions ADBs contribution to the SRP varies from year to year, as determined by the Pension Committee, which bases its judgment on the results of annual actuarial valuations of the assets and liabilities of the SRP. The expected amount of contributions to the Plan for 2012 amounts to $88,111,000 representing ADBs contributions of $43,903,000, based on budgeted contribution of 21%, participants mandatory contribution of $11,808,000 and discretionary contributions of $32,400,000. Investment Strategy Contributions in excess of current benefits payments are invested in international financial markets and in a variety of investment vehicles. The Plan employs eight external asset managers and one global custodian who function within the guidelines established by the Plans Investment Committee. The investment of these assets, over the long term, is expected to produce higher returns than short-term investments. The investment policy incorporates the Plans package of desired investment return and tolerance for risk, taking into account the nature and duration of the Plans liabilities. The Plans assets are diversified among different markets and different asset classes. The use of derivatives for speculation, leverage or taking risks is prohibited. Selected derivatives are used for hedging and transactional efficiency purposes. The Plans investment policy is periodically reviewed and revised to reflect the best interest of the Plans participants and beneficiaries. The current policy, adopted in January 2011, specifies an asset-mix structure of 70% of assets in equities and 30% in fixed income securities. At present, investments of the Plans assets are divided into three categories: US equity, Non-US equity, and Global fixed income. All investments excluding time deposits are valued using market prices. Time deposits are reported at cost which is a reasonable estimate of fair value. Fixed income securities include US government and non-US government or government-guaranteed obligations, corporate bonds and time deposits. Other assets include forward exchange contracts in various foreign currencies transacted to hedge currency exposure in the investment portfolio, which are reported at fair value. The Plans long-term target asset-mix is 40% US equity, 30% non-US equity and 30% global fixed income. For the year ended 31 December 2011 the net return on the Plan assets was negative 0.9% (11.4% 2010). ADB expects the long-term rate of return on the assets to be 7.5% (8.0% 2010). Assumptions The assumed overall rate of return takes into account long-term return expectations of the underlying asset classes within the investment portfolio mix, and the expected duration of the Plans liabilities. Return expectations are forward looking and, in general, not much weight is given to short-term experience. Unless there is a drastic change in investment policy or market environment, as well as in the liability/benefit policy side, the assumed investment return of 7.5% on the Plans assets is expected to remain broadly the same, year to year. Actuarial assumptions based on the 20052009 experience was used as the basis for the actuarial valuation as of 31 December 2011 and 2010. These include rates of withdrawal, incapacity retirement rates, mortality rates, percent of international staff who commute, currency reserve, and pattern of discretionary benefits withdrawal.
88
cOntinUED
Postretirement Medical Benefits Plan In 1993, ADB adopted a cost-sharing plan for retirees medical insurance premiums. Under the plan, ADB is obligated to pay 75% of the Group Medical Insurance Plan premiums for retirees, including retired members of the Board of Directors, and their eligible dependents who elected to participate. The cost-sharing plan is currently unfunded. Generally accepted accounting principles require an actuarially determined assessment of the periodic cost of postretirement medical benefits. The following table sets forth the pension and postretirement medical benefits at 31 December 2011 and 2010:
pension Benefits 2011 Change in projected benefit obligation: Projected benefit obligation at beginning of year Service cost Interest cost Plan participants contributions Actuarial loss Benefits paid Projected benefit obligation at end of year Change in plan assets: Fair value of plan assets at beginning of year Actual return on plan assets Employers contribution Plan participants contributions Benefits paid Fair value of plan assets at end of year Funded status $ 1,323,904,000 (11,442,000) 101,041,000 53,516,000 (89,093,000) $1,377,926,000 $(1,149,548,000) $1,113,539,000 135,535,000 99,637,000 41,479,000 (66,286,000) $1,323,904,000 $ (895,169,000) $ $ 2,899,000 (2,899,000) $ $ 2,601,000 (2,601,000) $ 2,219,073,000 62,795,000 124,079,000 53,516,000 157,104,000 (89,093,000) $ 2,527,474,000 $1,823,287,000 50,306,000 107,867,000 41,479,000 262,420,000 (66,286,000) $2,219,073,000 $ 273,085,000 14,466,000 15,661,000 22,318,000 (2,899,000) $ 322,631,000 $ 193,718,000 7,616,000 11,950,000 62,402,000 (2,601,000) $ 273,085,000 2010 postretirement Medical Benefits 2011 2010
$(322,631,000)
$(273,085,000)
continued on next page
89

table continued
pension Benefits 2011 Amounts recognized in the Balance sheet consist of: Current liabilities Noncurrent liabilities Net amount recognized Amounts recognized in the Accumulated other comprehensive income consist of: Net actuarial loss Prior service cost (credit) Total amount recognized Weighted-average assumptions as of 31 December Discount rate Expected return on plan assets Rate of compensation increase varies with age and averages 4.00% 5.25% 5.05% 7.50% 5.50% 8.00% $ 1,090,554,000 $ 1,090,554,000 $ 846,791,000 3,675,000 $ 850,466,000 (1,149,548,000) $(1,149,548,000) (895,169,000) $(895,169,000) 2010
postretirement Medical Benefits 2011 2010
(6,418,000) (316,213,000) $(322,631,000)
(5,620,000) (267,465,000) $(273,085,000)
$ 92,376,000 $ 92,376,000
$ 73,571,000 (2,710,000) $ 70,861,000
5.05% N/A 4.00%
5.50% N/A 5.25%
For measurement purposes, a 7.0% annual rate of increase in the per capita cost of covered health care benefits was assumed for the valuation as of 31 December 2011. The rate was assumed to decrease gradually to 5.0% for 2016 and remain at that level thereafter.
pension Benefits 2011 Components of net periodic benefit cost: Service cost Interest cost Expected return on plan assets Amortization of prior service cost Recognized actuarial loss net periodic benefit cost $ 62,795,000 124,079,000 (116,831,000) 3,675,000 41,614,000 $115,332,000 $ 50,306,000 107,867,000 (101,449,000) 4,079,000 20,390,000 $ 81,193,000 $14,466,000 15,661,000 (2,710,000) 3,513,000 $30,930,000 $ 7,616,000 11,950,000 (8,646,000) $10,920,000 2010 postretirement Medical Benefits 2011 2010
90
cOntinUED
The accumulated benefit obligation of the pension plan as of 31 December 2011 was $2,361,800,000 ($2,032,169,000 2010). The estimated net loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year amounted to $57,980,000. The estimated net loss for the other postretirement benefits plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $4,544,000. A one-percentage-point change in assumed health care trend rates would have the following effects:
1-percentagepoint increase Effect on total service and interest cost components Effect on postretirement benefit obligation 1-percentagepoint Decrease
$ 7,989,000
$ (5,998,000)
68,433,000
(53,222,000)
Estimated Future Benefits Payments The following table shows the benefit payments expected to be paid in each of the next five years and subsequent five years. The expected benefit payments are based on the same assumptions used to measure the benefit obligation at 31 December 2011:
postretirement Medical Benefits $ 6,418,000 7,268,000 8,103,000 8,996,000 9,923,000 65,194,000
pension Benefits 2012 2013 2014 2015 2016 20172021 $100,235,000 103,190,000 107,241,000 113,954,000 120,592,000 743,726,000
Fair Value Hierarchy ASC 820 establishes a fair value hierarchy that gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), next priority to observable market inputs or market corroborated data (Level 2), and the lowest priority to unobservable inputs without market corroborated data (Level 3). ASC 820 requires the fair value measurement to maximize the use of market observable inputs.
91

The fair value of the plan assets measured at fair value on a recurring basis of ADBs pension plan as of 31 December 2011 and 2010 were reported based on the following:
Fair Value Measurements Quoted prices in active Markets for identical assets (Level 1) $ 902,945,000 180,808,000 128,546,000 42,446,000 27,291,000 127,000 $1,282,163,000 significant Market Observable inputs (Level 2) $ 4,723,000 23,029,000 13,983,000 7,730,000 4,424,000 $ 53,889,000 significant Unobservable inputs (Level 3) $ 12,000 5,121,000 6,234,000 7,006,000 123,000 $18,496,000
31 December 2011 assets Corporate equity securities Government or governmentguaranteed securities Corporate debt securities Asset/mortgage-backed securities Temporary investments and time deposits Interest rate swapsnet Futuresnet Foreign exchange contractsnet total assets at fair value Liabilities Foreign exchange contractsnet $ $ 902,957,000 190,652,000 157,809,000 63,435,000 35,021,000 123,000 127,000 4,424,000 $1,354,548,000
Fair Value Measurements Quoted prices in active Markets for identical assets (Level 1) $ 903,609,000 119,215,000 803,000 $1,023,627,000 significant Market Observable inputs (Level 2) $ 20,007,000 106,311,000 185,698,000 40,853,000 $352,869,000 $ significant Unobservable inputs (Level 3) $
31 December 2010 assets Corporate equity securities Government or governmentguaranteed securities Corporate debt securities Asset/mortgage-backed securities Temporary investments and time deposits total assets at fair value Liabilities Foreign exchange contractsnet $ 29,000 $ 903,609,000 139,222,000 107,114,000 185,698,000 40,853,000 $1,376,496,000
29,000
92
cOntinUED
The table below provides the details of all inter-level transfers for the year ended 31 December 2011:
Level 1 Investments Government or government-guaranteed obligations Transfers into (out of) Corporate debt securities Transfers into (out of) Asset/mortgage-backed securities Transfers into (out of) 12,336,000 $62,751,000 (12,336,000) $(62,751,000) 38,458,000 (38,458,000) $11,957,000 $(11,957,000) Level 2
Government or government-guaranteed obligations, corporate debt securities, and asset/mortgagebacked securities totaling $62,751,000 were transferred from Level 2 to 1. Assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
investments corporate equity securities Balance, 31 December 2010 Total realized/unrealized (losses)/gains in: Net increase in net assets available for benefits Purchases Sales/Maturities Settlement and others Transfers into Level 3 Balance, 31 December 2011 Total unrealized (losses)/gains included in income related to financial assets and liabilities still held at the reporting date (56,000) 68,000 $ 12,000 384,000 900,000 3,837,000 $5,121,000 (267,000) 6,501,000 $6,234,000 107,000 3,818,000 3,081,000 $7,006,000 123,000 $123,000 $ government or governmentguaranteed obligations $ corporate debt securities $ asset/ Mortgagebacked securities $
interest rate swaps $
$(56,000)
$ 384,000
$ (267,000)
$ 107,000
$ 123,000
During 2011, ADB enhanced the approach for determining the fair value hierarchy of liquidity portfolio investments by introducing additional pricing sources and strengthening the internal analytics. The enhanced methodology provided more robust support for market observable inputs in pricing. Transfers into Level 3 in 2011 are primarily the result of refining ADBs valuation approach.
93

NOTE PFAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amounts and estimated fair values of ADBs financial instruments as of 31 December 2011 and 2010 are summarized below:
2011 carrying amounta On-balance sheet financial instruments: ASSETS: Due from banks Investments (Note D) Securities transferred under repurchase agreement Securities purchased under resale arrangement Loans outstanding (Note E) Equity investments (Note G) Receivable from swaps borrowings (Note H) Receivable from swaps others (Note H) Other assets Swap related collateral Future guarantee receivable LIABILITIES: Borrowings (Note J) Payable for swaps borrowings (Note H) Payable for swaps others (Note H) Other liabilities Payable for swap related collateral Guarantee liability
a
2010 Estimated Fair Value carrying amounta Estimated Fair Value
187,989,000
187,989,000
114,648,000
114,648,000
21,508,269,000 330,044,000 395,498,000 49,759,260,000 970,622,000 31,373,104,000 6,220,207,000 1,942,954,000 13,857,000
21,508,269,000 330,044,000 395,498,000 51,378,685,000 970,622,000 31,373,104,000 6,220,207,000 1,942,954,000 13,857,000
18,253,359,000 707,851,000 318,228,000 45,943,811,000 1,108,198,000 29,475,685,000 1,781,058,000 1,588,350,000 17,604,000
18,253,359,000 707,851,000 318,228,000 47,418,894,000 1,108,198,000 29,475,685,000 1,781,058,000 1,588,350,000 17,604,000
58,834,767,000 27,465,365,000 6,576,366,000
59,994,911,000 27,465,365,000 6,576,366,000
52,386,484,000 25,775,013,000 2,077,841,000
53,176,587,000 25,775,013,000 2,077,841,000
1,942,954,000 13,857,000
1,942,954,000 13,857,000
1,588,350,000 17,604,000
1,588,350,000 17,604,000
The carrying amount for borrowings and swaps are inclusive of accrued interest.
94
cOntinUED
Estimated Fair Value 2011 Off-balance sheet financial instruments: ASSETS: Future guarantee receivable LIABILITIES: Guarantee liability 19,031,000 20,153,000 $19,031,000 $20,153,000 2010
The Fair Value Option Effective 1 January 2008, ADB elected the Fair Value Option on all borrowings with associated derivative instruments. This election allows ADB to apply a consistent accounting treatment between borrowings and their related swaps. ADB continues to report its loans and borrowings that are not swapped at amortized cost and reports most of its investments (except time deposits that are recorded at cost) at fair value. Fair Value Hierarchy ASC 820 establishes a fair value hierarchy that gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), next priority to observable market inputs or market corroborated data (Level 2), and the lowest priority to unobservable inputs without market corroborated data (Level 3). ASC 820 requires the fair value measurement to maximize the use of market observable inputs. Inter-level transfers from one year to another may occur due to changes in market activities affecting the availability of quoted market prices or observable market data. Fair Value Measurement ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability at measurement date (exit price) in an orderly transaction among willing participants with an assumption that the transaction takes place in the entitys principal market, the most advantageous market for the asset or liability. The most advantageous market is the market where the sale of the asset or transfer of liability would maximize the amount received for the asset or minimize the amount paid to transfer the liability. The fair value measurement is not adjusted for transaction cost. ADB determines fair values using inputs based on quoted or observable market prices and discounted cash flow models. Inputs for the models are based on observable market data such as yield curves, interest rates, volatilities, credit curves, and foreign exchange rates. Parameters and models used for valuation are subject to internal review and periodic external validation. Following guidelines are applied in determining the fair values of financial instruments: Borrowings and associated derivative instruments. Structured borrowings issued by ADB are valued through the use of market data inputs and financial models that discount future cash flows and simulated expected cash flows for embedded options. These involve the use of pay-off profiles 95

within the realm of accepted market valuation models such as Hull-White and Black and Scholes, as applicable. Non-structured swapped borrowings, forward foreign exchange, interest rate, and cross currency swap contracts are fair valued with observable market inputs using discounted cash flow models. Market observable inputs, such as yield curves, foreign exchange rates, basis spreads, credit spreads, cross currency rates, and volatilities are applied to the models to determine fair value of borrowings. Classified under Level 2 are swapped borrowings and the related derivatives for which ADB can obtain observable market inputs in the form of primary broker quotes for similar debt instruments. Included in Level 3 category are swapped borrowings fair valued using significant unobservable inputs, including derived credit spreads for currencies that have no available quotes in the market. Investments, asset swaps, repurchase agreements, and resale arrangements. Readily marketable investments fair values using active market quotes in Level 1 category. Level 2 category includes investments and repurchase agreements fair valued with market observable inputs. Included in Level 3 category are investments fair valued using unobservable inputs including prices provided by third parties such as independent pricing services, custodians, and asset managers. Forward foreign exchange, interest rate, and cross currency swap contracts are fair valued with observable market inputs using discounted cash flow models. Market observable inputs, such as yield curves, foreign exchange rates, basis spreads, cross currency rates, and volatilities are applied to the models to determine fair value of investments. Equity investments. Readily marketable equity investments are fair valued using quoted prices in active markets (Level 1). The fair values of the following financial assets and liabilities measured at fair value on a recurring basis were reported based on the following as of 31 December 2011 and 2010:
Fair Value Measurements Quoted prices in active Markets for identical assets (Level 1) significant Market Observable inputs (Level 2) significant Unobservable inputs (Level 3)
31 December 2011 assets Investments Government or governmentguaranteed obligations Time deposits and other obligations of banks Corporate obligations Asset-backed/mortgage-backed securities Others Securities transferred under repurchase agreement Securities purchased under resale arrangement Borrowings related swaps Investments related swaps $ 19,156,304,000 1,151,963,000 1,186,472,000 13,530,000 330,044,000 395,498,000 31,373,104,000 5,548,840,000
$ 15,454,300,000 670,280,000 5,730,000 330,044,000
$ 3,499,267,000 1,151,963,000 511,588,000 7,194,000 395,498,000 25,422,716,000 5,548,840,000
202,737,000 4,604,000 606,000 5,950,388,000
continued on next page
96
cOntinUED
table continued
Fair Value Measurements Quoted prices in active Markets for identical assets (Level 1) 297,741,000 $16,758,095,000 significant Market Observable inputs (Level 2) 648,866,000 $37,185,932,000 significant Unobservable inputs (Level 3) 22,501,000 $ 6,180,836,000
31 December 2011 Loans related swaps Equity investments total assets at fair value Liabilities Borrowings Borrowings related swaps Investments related swaps Loans related swaps total liabilities at fair value $54,037,988,000 27,465,365,000 5,854,047,000 722,319,000 $88,079,719,000 671,367,000 297,741,000 $60,124,863,000
$47,609,798,000 27,381,806,000 5,854,047,000 112,353,000 $80,958,004,000
$6,428,190,000 83,559,000 609,966,000 $ 7,121,715,000
31 December 2010 assets Investments Government or governmentguaranteed obligations Time deposits and other obligations of banks Corporate obligations Asset-backed/mortgage-backed securities Others Securities transferred under repurchase agreement Securities purchased under resale arrangement Borrowings related swaps Investments related swaps Loans related swaps Equity investments total assets at fair value Liabilities Borrowings Borrowings related swaps Investments related swaps Loans related swaps total liabilities at fair value $ 48,075,055,000 25,775,013,000 1,586,089,000 491,752,000 $75,927,909,000 $ 13,842,500,000 2,285,773,000 1,158,235,000 929,577,000 37,274,000 707,851,000 318,228,000 29,475,685,000 1,367,394,000 413,664,000 491,637,000 $51,027,818,000
$9,507,917,000 275,494,000 6,939,000 707,851,000 490,011,000 $10,988,212,000
774,666,000 2,285,773,000 563,772,000 927,083,000 29,486,000 318,228,000 21,964,275,000 1,367,394,000 381,150,000 1,345,000
$ 3,559,917,000 318,969,000 2,494,000 849,000 7,511,410,000 32,514,000 281,000 $11,426,434,000
$28,613,172,000
$ 40,197,183,000 25,637,293,000 1,586,089,000 137,294,000 $67,557,859,000
$7,877,872,000 137,720,000 354,458,000 $ 8,370,050,000
97

The table below provides the details of all inter-level transfers for the year ended 31 December 2011 and 2010:
2011 Level 1 Investments Government or government-guaranteed obligations Transfers into (out of) Transfers (out of) into Corporate obligations Transfers into (out of) Transfers (out of) into 29,209,000 (116,520,000) $(539,548,000) (29,209,000) 116,520,000 $539,548,000 (15,475,000) $(74,183,000) 15,475,000 $ 74,183,000 $ 9,997,000 (462,234,000) $ (9,997,000) 462,234,000 $ 14,751,000 (73,459,000) $(14,751,000) 73,459,000 Level 2 Level 1 2010 Level 2
Government or government-guaranteed obligations and corporate obligations totaling $578,754,000 were transferred from Level 1 to 2 ($88,934,000 2010) and government or governmentguaranteed obligations and corporate obligations totaling $39,206,000 ($14,751,000 2010) were transferred from Level 2 to 1. Assets (liabilities) measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
investments government or governmentguaranteed obligations Balance, 1 January 2011 Total gains (losses) - (realized/unrealized) Included in earnings Included in other comprehensive income Purchases Sales/Maturities Settlement and others Transfers into Level 3 Transfers out of Level 3 Balance, 31 December 2011 The amount of total gains (losses) for the period recognized in other comprehensive income attributable to the change in net unrealized gains or losses relating to assets/liabilities still held at the reporting date
0 = Less than $500.
corporate obligations $318,969,000 (18,000) 120,000 4,502,000 (318,969,000) $ 4,604,000
asset-backed/ mortgage-backed securities $2,494,000 0 0 (2,356,000) (138,000) $
Others $849,000 (243,000) $606,000
$ 3,559,917,000 216,000 (5,015,000) 93,999,000 (1,326,221,000) 107,404,000 (2,227,563,000) $ 202,737,000
120,000
120,000
98
cOntinUED
investments government or governmentguaranteed obligations Balance, 1 January 2010 Total gains (losses) - (realized/unrealized) Included in earnings Included in other comprehensive income Purchases Sales/Maturities Settlement and others Transfers into Level 3 Balance, 31 December 2010 The amount of total gains (losses) for the period recognized in other comprehensive income attributable to the change in net unrealized gains or losses relating to assets/liabilities still held at the reporting date 2,636,000 (6,965,000) 1,471,283,000 2,092,963,000 $3,559,917,000 (74,000) (2,143,000) 300,000,000 21,186,000 $318,969,000 2,494,000 $2,494,000 849,000 $849,000 $ $ asset-backed/ mortgage-backed securities $ $
corporate obligations
Others
(14,028,000)
$ (2,143,000)
Borrowings related swaps swaps receivable Balance, 1 January 2011 Total gains (losses) - (realized/unrealized) Included in earnings Included in other comprehensive income Issuances Maturities/Redemptions Balance, 31 December 2011 The amount of total gains (losses) for the period included in earnings attributable to the change in net unrealized gains or losses relating to assets/liabilities still held at the reporting date
a
Loans related swaps swaps receivable $32,514,000 (7,577,000) (2,436,000) $22,501,000 swaps payable $(354,458,000) (12,644,000) 33,103,000 (306,961,000)a 30,994,000 $(609,966,000)
swaps payable $ (137,720,000) 55,456,000 (1,295,000) $ (83,559,000)
$7,511,410,000 (543,520,000) (380,073,000) 1,079,175,000 (1,716,604,000) $5,950,388,000
$ (104,257,000)
56,794,000
$ (7,776,000)
$ (10,859,000)
Includes accretion of $156,867,000. continued on next page
99

table continued
Borrowings related swaps swaps receivable Balance, 1 January 2010 Total gains (losses) - (realized/unrealized) Included in earnings Included in other comprehensive income Issuances Maturities/Redemptions Balance, 31 December 2010 The amount of total gains (losses) for the period included in earnings attributable to the change in net unrealized gains or losses relating to assets/liabilities still held at the reporting date
a
Loans related swaps swaps receivable $28,273,000 3,225,000 1,016,000 $32,514,000 $ swaps payable $ (296,239,000) (8,715,000) (14,964,000) (54,836,000)a 20,296,000 (354,458,000)
swaps payable $ (79,030,000) (55,538,000) (3,152,000) $ (137,720,000)
$7,306,317,000 435,107,000 47,968,000 1,877,314,000 (2,155,296,000) $7,511,410,000
(59,453,000)
(54,646,000)
$ 2,898,000
(8,603,000)
Includes accretion of $4,636,000.
2011 Equity investments Beginning of the period Total gains (losses) - (realized/unrealized) Included in earnings Included in other comprehensive income Paydowns Issuances Maturities/Redemptions End of the period The amount of total gains (losses) for the period included in earnings attributable to the change in net unrealized gains or losses relating to assets/liabilities still held at the reporting date $ (281,000) 427,826,000 373,524,000 (1,069,661,000) 1,717,993,000 $(6,428,190,000) $ 281,000 281,000 $ 281,000 Borrowings $(7,877,872,000) $
2010 Equity investments Borrowings $(7,403,678,000) (551,622,000) (71,865,000) (2,058,244,000) 2,207,537,000 $(7,877,872,000)
28,282,000
(15,009,000)
During 2011, ADB enhanced the approach for determining the fair value hierarchy of liquidity portfolio investments by introducing additional pricing sources and strengthening the internal analytics. The enhanced methodology provided more robust support for market observable inputs in pricing. Transfers out of Level 3 in 2011 are primarily the result of refining ADBs valuation approach. All investment securities, including those under Level 3, are of high credit quality. The government or government-guaranteed obligations are largely floating rate notes and callable bonds with a credit quality rating from Standard and Poors of AAA to AA. The corporate obligations are also floating rate notes with a credit quality rating from Standard and Poors of AAA. These valuations are provided by an independent pricing source. 100
cOntinUED
NOTE QSPECIAL AND TRUST FUNDS ADBs operations include special operations, which are financed from special funds resources. The OCR and special funds resources are at all times used, committed, and invested entirely separate from each other. The Board of Governors may approve allocation of the net income of OCR to special funds, based on the funding and operational requirements for the funds. The administrative and operational expenses pertaining to the OCR and special funds are charged to the respective special funds. The administrative expenses of ADB are allocated amongst OCR and special funds and are settled regularly between the OCR and the special funds. In addition, ADB, alone or jointly with donors, administers on behalf of the donors, including members of ADB, their agencies and other development institutions, projects/programs supplementing ADBs operations. Such projects/programs are funded with external funds administered by ADB and with external funds not under ADBs administration. ADB charges administrative fees for external funds administered by ADB. The funds are restricted for specific uses including technical assistance to borrowers and technical assistance for regional programs. The responsibilities of ADB under these arrangements range from project processing to project implementation including the facilitation of procurement of goods and services. These funds are held in trust with ADB, and are held in a separate investment portfolio. The assets of these funds are not commingled with ADBs resources, nor are they included in the assets of ADB. Special funds and funds administered by ADB on behalf of the donors are not included in the assets of OCR. The breakdown of the total of such funds together with the funds of the special operations as of 31 December 2011 and 2010 is as follows:
2011 total net assets special Funds Asian Development Fund Technical Assistance Special Fund Japan Special Fund Asian Development Bank Institute Asian Tsunami Fund Pakistan Earthquake Fund Regional Cooperation and Integration Fund Climate Change Fund Asia Pacific Disaster Response Fund Subtotal trust Funds Funds administered by ADB total 1,527,241,000 $34,953,205,000 91 100 1,392,366,000 $34,453,228,000 86 95 $33,054,725,000 225,111,000 94,133,000 9,836,000 6,861,000 4,553,000 4,143,000 14,242,000 12,360,000 33,425,964,000 1 1 1 1 1 1 1 1 1 9 $32,650,891,000 248,085,000 89,338,000 8,916,000 2,630,000 3,938,000 10,412,000 19,171,000 27,481,000 33,060,862,000 1 1 1 1 1 1 1 1 1 9 no. of Funds 2010 total net assets no. of Funds
During the year ended 31 December 2011, a total of $9,088,000 ($13,697,000 2010) was recorded as compensation for administering projects/programs under Trust Funds. The amount has been included in REVENUE From other sourcesnet. 101

NOTE RVARIABLE INTEREST ENTITIES An entity is subject to the ASC 810 VIE Subsections and is considered a variable interest entity (VIE) if it (i) lacks equity that is sufficient to permit the entity to finance its activities without additional subordinated financial support from other parties; or (ii) if holders of the equity investment at risk lack decision-making rights about the entitys activities that most significantly impact the entitys economic performance; or do not have the obligation to absorb the expected losses or the right to receive the expected residual returns of the entity. A VIE is consolidated by the primary beneficiary, which is the party that has the power to direct the VIEs activities that most significantly impact its economic performance and the obligation to absorb losses of or the right to receive benefits from the VIE that could potentially be significant to the VIE. As of 31 December 2011, ADB did not identify any VIE in which ADB is the primary beneficiary, requiring consolidation in OCR financial statements. ADB may hold variable interests in VIE, which requires disclosures. The review of ADBs loan, equity investments, and guarantee portfolio has identified two (two 2010) investments in VIEs in which ADB is not the primary beneficiary, where ADBs investment is significant and 11 VIEs (seven 2010) where ADBs investment is not significant. These non-consolidated VIEs are operating entities where the total equity invested is considered insufficient to finance its activities without additional subordinated financial support. These VIEs are in the finance, telecommunication, and energy sectors. ADBs involvement with these non-consolidated VIEs includes loans, guarantees and equity investments. Based on the most recent available data from these VIEs at 31 December 2011, the assets of these non-consolidated VIEs where ADBs investments are significant and insignificant totaled $484,507,000 and $1,310,632,000, respectively ($492,167,000 and $1,027,110,000, respectively 2010). The table below shows the carrying value of ADB interests in the non-consolidated VIEs and the maximum exposure to loss of these interests. For guarantees, the maximum exposure is the notional amount of such guarantee.
significant 2011 carrying Value of aDBs Variable interests Assets Liabilities Maximum Exposure to Loss in non-consolidated ViEs Loans Equity Investments Guarantees total $56,384,000 206,000 $56,590,000 $90,444,000 206,000 1,565,000 $92,215,000 $248,081,000 84,369,000 157,945,000 $490,395,000 $161,887,000 37,026,000 184,638,000 $383,551,000 $56,590,000 $90,660,000 10,000 $340,575,000 8,125,000 $208,774,000 9,860,000 2010 non-significant 2011 2010
102
cOntinUED
NOTE SSEGMENT REPORTING Based on an evaluation of OCRs operations, management has determined that OCR has only one reportable segment since OCR does not manage its operations by allocating resources based on a determination of the contribution to net income from individual borrowers. The following table presents OCRs loan, guarantee, and equity investments outstanding balances and associated revenue, by geographic region, as of and for the years ended 31 December 2011 and 2010:
2011 country Peoples Republic of China Indonesia India Philippines Pakistan Others total Outstanding Balance $12,543,421,000 10,044,028,000 10,721,780,000 6,150,159,000 5,672,813,000 7,592,869,000 $52,725,070,000 Revenue $215,674,000 168,538,000 82,133,000 67,901,000 49,111,000 125,994,000 $709,351,000 Outstanding Balance $11,340,632,000 10,358,102,000 9,606,121,000 6,079,481,000 5,394,121,000 6,241,711,000 $49,020,168,000 2010 Revenue $187,788,000 186,224,000 104,772,000 74,913,000 46,625,000 149,904,000 $750,226,000
Revenue comprises income from loan charges, earnings from equity investments, and guarantee fees. For the year ended 31 December 2011, sovereign loans to two countries (two 2010) generated in excess of 10 percent of revenue; this amounted to $162,394,000 and $158,802,000 ($181,194,000 and $167,372,000 2010). NOTE TSUBSEQUENT EVENTS ADB has evaluated subsequent events after 31 December 2011 through 14 March 2012, the date these Financial Statements are available for issuance. During this period, ADB has raised additional borrowings of approximately $5.9 billion in various currencies.
103
asian deVelOpMent Fund

MANAGEMENTS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING The management of Asian Development Bank (ADB) is responsible for establishing and maintaining adequate internal control over financial reporting. ADBs internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of special purpose financial statements in accordance with accounting policies as described in Note B of the special purpose financial statements. ADBs internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of ADB; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting policies as described in Note B of the special purpose financial statements, and that receipts and expenditures of ADB are being made only in accordance with authorizations of management and directors of ADB; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of ADBs assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. ADBs management assessed the effectiveness of ADBs internal control over financial reporting as of 31 December 2011. In making this assessment, ADBs management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control Integrated Framework. Based on that assessment, management believes that as of 31 December 2011, ADBs internal control over financial reporting is effective based upon the criteria established in Internal Control Integrated Framework.
104
INDEPENDENT AUDITORS REPORT To the Board of Directors and the Board of Governors of Asian Development Bank We have audited managements assertion, included in the accompanying Managements Report on Internal Control over Financial Reporting, that Asian Development Bank (ADB) maintained effective internal control over financial reporting as of December 31, 2011, based on the criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. ADBs management is responsible for maintaining effective internal control over financial reporting and for its assertion of the effectiveness of internal control over financial reporting, included in the accompanying Managements Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on managements assertion based on our audit. We conducted our audit in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. ADBs internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of special purpose financial statements in accordance with accounting policies as described in Note B of the special purpose financial statements. ADBs internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of ADB; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting policies as described in Note B of the special purpose financial statements, and that receipts and expenditures of ADB are being made only in accordance with authorizations of management and directors of ADB; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of ADBs assets that could have a material effect on the financial statements.
105
Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected and corrected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. In our opinion, managements assertion that ADB maintained effective internal control over financial reporting as of December 31, 2011, is fairly stated, in all material respects, based on the criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. We have also audited, in accordance with auditing standards generally accepted in the United States of America, the accompanying special purpose statement of assets, liabilities, and fund balances of Asian Development Bank (ADB) Asian Development Fund as of December 31, 2011 and 2010, and the related special purpose statements of revenue and expenses, comprehensive loss, changes in fund balances and cash flows for each of the years in the two-year period ended December 31, 2011 and our report dated March 14, 2012 expressed an unqualified opinion on those special purpose financial statements.
106
INDEPENDENT AUDITORS REPORT To the Board of Directors and the Board of Governors of Asian Development Bank We have audited the accompanying special purpose statement of assets, liabilities, and fund balances of Asian Development Bank (ADB) Asian Development Fund as of December 31, 2011 and 2010, and the related special purpose statements of revenue and expenses, comprehensive loss, changes in fund balances and cash flows for each of the years in the two-year period ended December 31, 2011. These special purpose financial statements are the responsibility of ADBs management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the special purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the special purpose financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. The accompanying special purpose financial statements were prepared in accordance with accounting policies as described in Note B of the special purpose financial statements and are not intended to be a presentation in conformity with accounting principles generally accepted in the United States of America. In our opinion, such special purpose financial statements present fairly, in all material respects, the assets, liabilities, and fund balances of ADB Asian Development Fund as of December 31, 2011 and 2010, and its revenues and expenses and cash flows for each of the years in the two-year period ended December 31, 2011, in conformity with accounting policies as described in Note B of the special purpose financial statements.
107
Our audits were conducted for the purpose of forming an opinion on the 2011 and 2010 special purpose financial statements taken as a whole. The special purpose summary statement of loans as of December 31, 2011 and 2010 and special purpose statement of resources as of December 31, 2011, are presented for the purpose of additional analysis and are not a required part of the special purpose financial statements. These schedules are the responsibility of ADBs management. Such 2011 and 2010 schedules have been subjected to the auditing procedures applied in our audit of the special purpose financial statements and, in our opinion are fairly stated in all material respects when considered in relation to the special purpose financial statements taken as a whole. We have also audited, in accordance with attestation standards established by the American Institute of Certified Public Accountants, managements assertion that ADB maintained effective internal control over financial reporting as of December 31, 2011, based on the criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 14, 2012 expressed an unqualified opinion on managements assertion that ADB maintained effective internal control over financial reporting. This report is intended solely for the information and use of the Board of Governors, Board of Directors, management, and members of the ADB and is not intended to be used and should not be used other than by these specified parties.
108
Asian Development Fund aDF-1
asian DEVELOpMEnt BanKasian DEVELOpMEnt FUnD

SPECIAL PURPOSE STATEMENT OF ASSETS, LIABILITIES, AND FUND BALANCES 31 December 2011 and 2010 Expressed in thousands of United states Dollars
2011 assEts DUE FROM BANKS INVESTMENTS (Notes C and K) Government or government-guaranteed obligations Time deposits SECURITIES PURCHASED UNDER RESALE ARRANGEMENT (Note K) LOANS OUTSTANDING (ADF-5) (Notes D and K) Sovereign Lessallowance for HIPC Debt Relief ACCRUED REVENUE On investments On loans OTHER ASSETS (Notes E and F) tOtaL LiaBiLitiEs anD FUnD BaLancEs PAYABLE TO RELATED FUNDS (Notes E and G) ADVANCE PAYMENTS ON CONTRIBUTIONS (Note F) UNDISBURSED COMMITMENTS (Notes J and K) DEFERRED CREDITS TOTAL LIABILITIES FUND BALANCES (ADF-4) Contributions received (ADF-7) Contributed resources (Note F) Unamortized discount Set-aside resources (Note H) Transfers from Ordinary Capital Resources and Technical Assistance Special Fund Nonnegotiable, noninterest-bearing demand obligations on account of contribution (Note F) Accumulated surplus Accumulated other comprehensive loss (Note I) tOtaL
The accompanying notes are an integral part of these special purpose financial statements (ADF-8).
2010
$ $ 4,124,683 1,672,716
2,559 $ 3,431,376 1,837,433
2,580
5,797,399 335,818
5,268,809 340,811
29,514,607 78,927 44,453 66,481
29,435,680
28,976,937 79,918 45,880 72,391
28,897,019
110,934 257,765 $35,940,155
118,271 209,012 $34,836,502
41,432 220,848 2,623,150 2,885,430
28,628 179,884 1,975,557 1,543 2,185,612
$36,515,272 (64,691) 36,450,581 73,094 1,103,556 37,627,231 (2,402,167) 1,642,581 (3,812,920) 33,054,725 $35,940,155
$34,456,844 (73,285) 34,383,559 73,320 983,636 35,440,515 (2,298,983) 2,619,361 (3,110,003) 32,650,890 $34,836,502
109
Asian Development Bank Annual Report 2011 aDF-2

SPECIAL PURPOSE STATEMENT OF REVENUE AND EXPENSES For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars
2011 REVENUE From loans (Note D) From investments (Note C) From other sources EXPENSES Grants (Note J) Administrative expenses (Note G) Amortization of discounts on contributions Provision for HIPC Debt Relief (Note D) Financial expenses NET REALIZED GAINS (LOSSES) From investments (Including gains reclassified from other comprehensive income of $9,094 2011 and $811 2010) From loans NET UNREALIZED LOSSES REVEnUE LEss than ExpEnsEs
2010 $ 290,518 107,773
$ 316,186 96,914 142 $ 413,242
51
$ 398,342
1,120,579 254,829 13,362 18 1,388,788
651,756 225,911 10,547 (859) 19 887,374
9,094 9,094 (10,328) $ (976,780)
854 (169,308) (168,454) (18,999) $ (676,485)
110

SPECIAL PURPOSE STATEMENT OF COMPREHENSIVE LOSS For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars
2011 REVENUE LESS THAN EXPENSES (ADF-2) Other comprehensive loss (Note H) Currency translation adjustments Unrealized investment holding losses Unrealized investment holding gains during the period Less: Reclassification adjustments for gains included in net income Total other comprehensive loss cOMpREhEnsiVE LOss
2010 $ (676,485) (363,808) (15,848) (811) (380,467) $(1,056,952)
$ (976,780) (687,552) (6,271) (9,094) (702,917) $(1,679,697)
111

SPECIAL PURPOSE STATEMENT OF CHANGES IN FUND BALANCES For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars
nonnegotiable, noninterestbearing Demand Obligations $(2,185,624) accumulated Other comprehensive Loss $(2,729,536) (380,467)
contributed Resources Balance, 1 January 2010 Comprehensive loss for the year 2010 (Note I) Change in amounts available for operational commitments Contributed Resources Unamortized Discount Change in nonnegotiable, noninterest-bearing demand obligations Transfer from ordinary capital resources Change in SDR value of set-aside resources Change in value of transfers from Technical Assistance Special Fund Balance, 31 December 2010 Comprehensive loss for the year 2011 (Note I) Change in amounts available for operational commitments Contributed Resources Unamortized Discount Change in nonnegotiable, noninterest-bearing demand obligations Transfer from ordinary capital resources Change in SDR value of set-aside resources Change in value of transfers from Technical Assistance Special Fund Balance, 31 December 2011 $36,450,581 $34,383,559 $32,654,449
set-aside Resources $74,366
transfers from OcR and tasF $ 863,892
accumulated surplus $3,295,846 (676,485)
total $31,973,393 (1,056,952)
1,716,597 12,513
1,716,597 12,513
(113,359) 120,000 (1,046) (256) $(2,298,983) $73,320 $ 983,636 $2,619,361 (976,780) $(3,110,003) (702,917)
(113,359) 120,000 (1,046) (256) $32,650,890 (1,679,697)
2,058,428 8,594
2,058,428 8,594
(103,184) 120,000 (226) (80) $(2,402,167) $73,094 $1,103,556 $1,642,581 $(3,812,920)
(103,184) 120,000 (226) (80) $33,054,725
112

SPECIAL PURPOSE STATEMENT OF CASH FLOWS For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars
2011 CASH FLOWS FROM OPERATING ACTIVITIES Interest charges on loans received Interest on investments received Interest received for securities purchased under resale arrangement Cash received from other sources Administrative expenses paid Grants disbursed Financial expenses paid Net Cash Used in Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Sales of investments Maturities of investments Purchases of investments Net receipts from (payments for) securities purchased under resale arrangement Principal collected on loans Loans disbursed Net Cash Used in Investing Activities CASH FLOWS FROM FINANCING ACTIVITIES Contributions received and encashed1 Cash received from Ordinary Capital Resources Net Cash Provided by Financing Activities Effect of Exchange Rate Changes on Due from Banks Net Decrease in Due from Banks Due from Banks at Beginning of Year Due from Banks at End of Year RECONCILIATION OF REVENUE LESS THAN EXPENSES TO NET CASH USED IN OPERATING ACTIVITIES: Revenue less than expenses (ADF-2) Adjustments to reconcile revenue less than expenses to net cash used in operating activities: Amortization of discounts/premiums on investments Amortization of discount under accelerated note encashment Grants approved and effective Capitalized charges on loans Net gain on sales of investments Provision for possible losses charged Change in disbursed grants Change in advances under technical assistance grants Change in accrued revenue on investments and loans Change in accrued expenses Change in other assets Exchange lossesnet Net Cash Used in Operating Activities $ (976,780) $ (676,485) $ $ 299,238 108,027 182 142 (242,025) (510,923) (18) (345,377) 197,793 143,575,619 (144,354,526) 19,565 1,066,602 (1,361,689) (856,636) 1,082,821 120,000 1,202,821 (829) (21) 2,580 2,559 $ $ 2010 260,929 126,780 204 51 (240,588) (359,341) (19) (211,984) 127,659 81,364,405 (81,435,209) (141,261) 906,012 (1,545,875) (724,269) 813,193 120,000 933,193 2,618 (442) 3,022 2,580
9,772 13,362 1,120,579 (23,540) (9,094) (473,343) (36,901) 8,114 12,805 (679) 10,328 $ (345,377) $
11,095 10,547 651,756 (25,329) (854) (859) (352,941) (4,907) 3,856 (15,658) (512) 188,307 (211,984)
Supplementary disclosure on noncash financing activities: 1 Nonnegotiable, noninterest-bearing demand promissory notes amounting to $1,023,942 ($873,329 2010) were received from contributing members. The accompanying notes are an integral part of these special purpose financial statements (ADF-8).
113

SPECIAL PURPOSE SUMMARY STATEMENT OF LOANS 31 December 2011 and 2010 Expressed in thousands of United states Dollars
Loans Outstanding $ 638,114 165,285 46,369 5,974,595 167,832 937,842 28,015 261,382 1,312,829 7,741 14,035 589,779 1,190,456 98,761 76,416 50,554 611,898 642,287 1,588,004 6,994,680 3,424 278,316 775,123 113,681 52,721 2,659,314 341,709 39,137 6,920 139,467 55,154 3,651,183 1,584 $29,514,607 (78,927) $29,435,680 $28,897,019 Undisbursed Balances of Effective Loans2, 3 $ 129,705 103,241 7,880 1,431,344 28,831 161,988 2,897 279,864 150,249 10,956 97,352 4,500 25,933 8,911 86,420 396,070 192,456 248,959 17,125 374,533 16,604 341,646 1,537,619 $ 5,655,083 $5,655,083 $5,104,341 $ Loans not yet Effective4 146,055 19,539 65,370 7,216 53,797 35,629 62,871 149,700 264,707 86,971 10,537 56,544 15,172 296,305 $1,270,413 $1,270,413 $1,469,618 $ total Loans 767,819 268,526 54,249 7,551,994 216,202 1,165,200 30,912 541,246 1,463,078 7,741 32,207 740,928 1,230,585 124,694 76,416 59,465 761,189 642,287 2,133,774 7,451,843 3,424 614,246 775,123 141,343 52,721 3,033,847 358,313 39,137 6,920 537,657 70,326 5,485,107 1,584 $36,440,103 (78,927) $36,361,176 $35,470,978 percent of total Loans 2.11 0.74 0.15 20.72 0.59 3.20 0.08 1.49 4.01 0.02 0.09 2.03 3.38 0.34 0.21 0.16 2.09 1.76 5.86 20.45 0.01 1.69 2.13 0.39 0.14 8.33 0.98 0.11 0.02 1.48 0.19 15.05 0.00 100.00
Borrowers/guarantors1 Afghanistan Armenia Azerbaijan Bangladesh Bhutan Cambodia Cook Islands Georgia Indonesia Kazakhstan Kiribati Kyrgyz Republic Lao Peoples Democratic Republic Maldives Marshall Islands Federated States of Micronesia Mongolia Myanmar Nepal Pakistan Palau Papua New Guinea Philippines Samoa Solomon Islands Sri Lanka Tajikistan Tonga Tuvalu Uzbekistan Vanuatu Viet Nam Regional TOTAL 31 December 2011 Allowance for HIPC Debt Relief nEt BaLancE 31 December 2011 nEt BaLancE 31 December 2010
1 2
3 4
Loans other than those made directly to a member or to its central bank have been guaranteed by the member. Loans negotiated before 1 January 1983 were denominated in current United States dollars. Loans negotiated after that date are denominated in Special Drawing Rights (SDR) for the purpose of commitment. The undisbursed portions of such SDR loans are translated into United States dollars at the applicable exchange rates as of the end of a reporting period. Of the undisbursed balances, ADB has entered into irrevocable commitments to disburse various amounts totaling $43,474 ($14,357 2010). Refer to the unwithdrawn portions of effective loans as of 31 December 2011. Refer to approved loans that have not become effective as of 31 December 2011, pending borrowers compliance with effectiveness conditions specified in the loan regulations and the loan agreements.
114
cOntinUED
MatURity OF EFFEctiVE LOans
twelve Months Ending 31 December 2012 2013 2014 2015 2016
amount $1,575,166 1,231,293 1,290,752 1,365,799 1,467,487
Five years Ending 31 December 2021 2026 2031 2036 2041 2046 2051 total
amount 8,538,518 7,892,777 6,034,678 3,712,870 1,625,301 397,169 37,880 $35,169,690
sUMMaRy OF cURREnciEs REcEiVaBLE On LOans OUtstanDing
currency Australian dollar Canadian dollar Danish krone Euro Japanese yen Korean won Malaysian ringgit New Zealand dollar $
2011 77,064 279,083 28,796 2,075,806 6,073,053 23,798 891 1,560 $
2010 79,946 297,760 30,706 2,130,493 5,962,893 25,144 940 1,622
currency Norwegian krone Pound sterling Singapore dollar Swedish krona Swiss franc Thai baht United States dollar Special Drawing Rights5
2011 116,944 232,739 88 94,539 120,328 873 2,122,491 18,266,554
2010 123,362 224,873 91 99,757 125,129 947 2,139,439 17,733,835
total
$29,514,607
$28,976,937
5 Basket of currencies defined by the International Monetary Fund consisting of the euro, Japanese yen, pound sterling, and US dollar. The accompanying notes are an integral part of these special purpose financial statements (ADF-8).
115

SPECIAL PURPOSE STATEMENT OF RESOURCES 31 December 2011 Expressed in thousands of United states Dollars
Effective amounts committed1 CONTRIBUTED RESOURCES Australia Austria Belgium Brunei Darussalam Canada Peoples Republic of China Denmark Finland France Germany Hong Kong, China Indonesia Ireland Italy Japan Republic of Korea Luxembourg Malaysia Nauru Netherlands New Zealand Norway Portugal Singapore Spain Sweden Switzerland Taipei,China Thailand Turkey United Kingdom United States Total SET-ASIDE RESOURCES TRANSFERS FROM ORDINARY CAPITAL RESOURCES TRANSFERS FROM TECHNICAL ASSISTANCE SPECIAL FUND2 tOtaL
At exchange rates per Resolutions. Includes translation adjustments of $84 as of 31 December 2011. The accompanying notes are an integral part of these special purpose financial statements (ADF-8).
2 1
contributions Received $ 1,570,304 273,336 233,934 13,175 1,759,790 52,142 278,641 154,897 1,319,510 1,878,261 72,563 14,960 55,339 869,872 20,091,724 316,295 46,879 16,969 303 801,348 127,954 213,786 97,713 13,050 424,820 321,891 484,775 76,208 11,815 110,513 1,064,054 3,683,760 36,450,581 73,094 1,100,000 3,556
$ 1,803,702 235,570 212,239 14,637 1,768,399 60,188 230,999 163,220 1,243,671 1,683,470 78,598 14,960 69,686 941,270 10,084,526 414,967 42,563 20,209 303 686,458 144,028 241,483 91,723 12,816 413,956 397,012 332,714 85,116 12,795 116,431 1,266,785 4,191,160 27,075,654
$27,075,654
$37,627,231
116

NOTES TO SPECIAL PURPOSE FINANCIAL STATEMENTS 31 December 2011 and 2010
NOTE ANATURE OF OPERATIONS The Asian Development Bank (ADB), a multilateral development financial institution, was established in 1966 with its headquarters in Manila, Philippines. ADB and its operations are governed by the Agreement Establishing the Asian Development Bank (the Charter). Its purpose is to foster economic development and co-operation in Asia and the Pacific region and to contribute to the acceleration of the process of economic development of the developing member countries (DMCs) in the region, collectively and individually. Since 1999, ADBs corporate vision and mission has been to help DMCs reduce poverty in the region. This was reaffirmed under the long-term strategic framework for 20082020 (Strategy 2020). Under Strategy 2020, ADBs corporate vision continues to be An Asia and Pacific Free of Poverty and its mission has been to help its DMCs reduce poverty and improve living conditions and quality of life. ADB has been pursuing its mission and vision by focusing on three complementary strategic agendas: inclusive growth, environmentally sustainable growth, and regional integration. ADB provides financial and technical assistance for projects and programs, which will contribute to achieving this purpose. These are financed through ordinary capital resources (OCR) and Special Funds.1 The Asian Development Fund (ADF) was established in 1974 to more effectively carry out the special operations of ADB by providing resources on concessional terms for economic and social development of the less developed member countries. The resources of ADF have been subsequently augmented by nine replenishments, the most recent (ADF X and the fourth regularized replenishment of the Technical Assistance Special Fund [TASF]) of which was approved by the Board of Governors in August 2008 and became effective on 16 June 2009 for the four-year period from January 2009. The new replenishment provides substantial resources to the ADF to finance ADBs concessional program, and to the TASF to finance technical assistance operations. Total replenishment size is SDR7,592,407,000, of which SDR2,665,765,000 will come from new donor contributions. The donors agreed to allocate 3% of the total replenishment size (equivalent to 8% of total donor contributions) to TASF. As of 31 December 2011, ADB has received instruments of contributions from 29 donors with a total amount equivalent to SDR2,578,687,000, including qualified contributions amounting to SDR502,451,000. ADB is immune from taxation pursuant to Chapter VIII, Article 56, Exemption from Taxation, of the Charter. NOTE BSUMMARY OF SIGNIFICANT ACCOUNTING POLICIES In May 2001, the Board of Directors approved the adoption of the special purpose financial statements for ADF. The financial statements have been prepared for the specific purpose of reflecting the sources and applications of member contributions and are presented in US dollar equivalents at the reporting dates. With the adoption of the special purpose financial statements, loan loss provisioning, other than those for the debt relief loan write-off resulting from the implementation
Asian Development Fund (ADF), Technical Assistance Special Fund (TASF), Japan Special Fund (JSF), ADB Institute (ADBI), Asian Tsunami Fund (ATF), Pakistan Earthquake Fund (PEF), Regional Cooperation and Integration Fund (RCIF), Climate Change Fund (CCF), and Asia Pacific Disaster Response Fund (APDRF).
117

of the Heavily Indebted Poor Countries (HIPC) initiatives discussed in Note D, has been eliminated. With the exceptions of the aforementioned, the ADF financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP). In November 2005, the Board of Governors accepted a resolution to adopt a special drawing rights (SDR) currency management framework to facilitate resource administration and operational planning for the benefit of borrowers. The currency management framework was implemented on 1 January 2006 whereby ADB is authorized to convert ADF resources held in various currencies into one of the SDR basket of currencies (currently US dollar, euro, pound sterling, and yen), to value disbursements, repayments and loan charges in terms of SDR, and to determine the value of contributors paid-in contributions and all other resources of the Fund in terms of SDR, in case of withdrawal of a Contributor or termination of ADF. In July 2007, ADB offered ADF borrowers the option to convert their existing liability (i.e., disbursed and outstanding loan balance) in various currencies into SDR, while the undisbursed portions will be treated as new loans. The conversion was made available beginning 1 January 2008, and as of 31 December 2011, 17 out of 30 ADF borrowing countries have opted to convert their loans, which were carried out on the nearest loan service payment dates at least one month from their concurrence. There were no loan conversions for the year ended 31 December 2011. Functional Currencies and Reporting Currency The United States dollar (USD) is the reporting currency of the ADF for the purpose of presenting the financial position and the result of its operations. With the implementation of the SDR currency management framework, ADF conducts its operations in SDRs and the SDR basket of currencies, which currently are US dollar, euro, pound sterling, and yen. The SDR and the SDR basket of currencies comprise the functional currencies of ADF. Translation of Currencies ADB adopts the use of daily exchange rates for accounting and financial reporting purposes. This allows transactions in currencies other than USD to be translated to the reporting currency using exchange rates applicable at the time of transactions. Assets and liabilities are translated using the applicable exchange rates at the end of each reporting period, except for Contributed Resources received in non-functional currencies. Translation adjustments relating to set-aside resources (Note H) are recorded as notional amounts receivable from or payable to OCR. Translation adjustments relating to revaluation of assets, liabilities, and fund balances denominated in ADFs functional currencies and all investments classified as available for sale are reported as Accumulated Translation Adjustments in FUND BALANCES as part of Accumulated other comprehensive loss. Translation adjustments relating to other non-functional currencies are reported as NET UNREALIZED GAINS (LOSSES) in the Special Purpose Statement of Revenue and Expenses. Investments Investment securities and negotiable certificates of deposit are classified as available for sale and are reported at fair value. Unrealized gains and losses are reported in FUND BALANCES as part of Accumulated other comprehensive loss. Realized gains and losses are measured by the difference
118
cOntinUED
between amortized cost and the net proceeds of sales. Time deposits are reported at cost which is a reasonable estimate of fair value. Interest income on investment securities and time deposits is recognized as realized and reported, net of amortizations of premiums and discounts. Securities Purchased Under Resale Arrangement ADF accounts for transfers of financial assets in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 860, Transfers and Servicing. In general, transfers are accounted for as sales when control over the transferred assets has been relinquished. Otherwise the transfers are accounted for as resale agreements and collateralized financing arrangements. Under resale arrangements, securities purchased are recorded as assets and are not re-pledged. Loans Loan interest income is recognized on accrual basis. It is the policy of ADF to place in non-accrual status loans made to eligible borrowing member countries if the principal or interest with respect to any such loans is overdue by six months. Interest on non-accruing loans is included in revenue only to the extent that payments have actually been received by ADF. ADB maintains a position of not taking part in debt rescheduling agreements with respect to sovereign loans. When ADB decides that a particular loan is no longer collectible, the entire amount is expensed during the period. Contributed Resources Contributions by donors are included in the special purpose financial statements as amounts committed and are reported in Contributed Resources as part of FUND BALANCES from the date Instruments of Contribution are deposited and related formalities are completed and made available for operational commitments. Contributions are generally received in the currency of the contributor either in cash or notes. Under ADF IX and ADF X, contributors have the option to pay their contributions under the accelerated note encashment program and receive a discount. ADF invests the cash generated from this program and the investment income is used to finance operations. The related contributions are recorded at the full undiscounted amount, and the discount is amortized over the standard encashment period of 10 years and 9 years for ADF IX and ADF X, respectively. Advanced Payments on Contributions Payments received in advance or as qualified contributions that cannot be made available for operational commitment are recorded as advance payments and included under LIABILITIES. Grants and Undisbursed Commitments Grants are recognized in the special purpose financial statements when the grant is approved and becomes effective. Upon completion of a project or cancellation of a grant, any undisbursed amount is written back as a reduction in the grants for the year and the corresponding undisbursed commitment is eliminated accordingly. 119

Accounting Estimates The preparation of special purpose financial statements in conformity with generally accepted accounting principles, with the exception of loan loss provisioning, requires management to make reasonable estimates and assumptions that affect the reported amounts of assets, liabilities, and fund balances as of the end of the year and the reported amounts of revenue and expenses during the year. The actual results could differ from those estimates. Judgments have been used in the valuation of certain financial instruments. Accounting and Reporting Developments The FASB issued Accounting Standard Update (ASU) 2011-02, Receivable (Topic 310) A Creditors Determination of Whether Restructuring Is a Troubled Debt Restructuring in April 2011. This update is effective for the first interim or annual period beginning on or after 15 June 2011 and is to be applied retrospectively to modifications occurring on or after the beginning of the annual period of adoption. This update did not have a material impact on ADFs 31 December 2011 special purpose financial statements. ASU 2010-06, Fair Value Measurements and Disclosures (Topic 820) Improving Disclosures about Fair Value Measurements with respect to the separate disclosures about gross purchases, sales, issuances, and settlements relating to Level 3 measurements is effective for fiscal years beginning after 15 December 2010 and for interim periods within those fiscal years. Note K provides the required disclosures in compliance with this update. In April 2011, the FASB issued ASU 2011-03, Transfers and Servicing (Topic 860) Reconsideration of Effective Control for Repurchase Agreements. The update removes from the assessment of effective control the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms, even in the event of default by the transferee. It does not change the other criteria used in the assessment of effective control. This update is applicable prospectively to new transactions and transactions that are modified on or after the first interim or annual period beginning 15 December 2011. This update did not have an impact on ADFs 31 December 2011 financial statements. In May 2011, the FASB issued ASU 2011-04, Fair Value Measurement (Topic 820) Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in US GAAP and IFRSs, which provides the consistency between US GAAP and International Financial Reporting Standards (IFRSs) on the definition of fair value (FV) and the guidance on how to measure FV and related disclosure requirements. The ASU does not require additional FV measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. The new guidance will require prospective application and are effective for interim and annual periods beginning on or after 15 December 2011. ADB is currently assessing the impact of this update on ADFs special purpose financial statements. In June 2011, the FASB issued ASU 2011-05, Comprehensive Income (Topic 220) Presentation of Comprehensive Income, which requires entities to present details of items that are reclassified from other comprehensive income to net income in the statement of comprehensive income. Subsequently, the FASB issued ASU 2011-12 in December 2011 to effectively defer only those changes in ASU 2011-05 that relate to the presentation of reclassification adjustments out of
120
cOntinUED
accumulated other comprehensive income. ADB has decided to adopt the provisions in ASU 2011-05 and presented in ADF-2 and ADF-3 on ADFs 31 December 2011 special purpose financial statements the reclassification adjustments. In December 2011, the FASB issued ASU 2011-11, Balance Sheet (Topic 210) Disclosures about Offsetting Assets and Liabilities, to provide enhanced disclosures that will enable users of its financial statements to evaluate the effect or potential effect of netting arrangements on an entitys financial position. An entity is required to apply the amendments for annual reporting periods beginning on or after 1 January 2013, and interim periods within those annual periods. ADB is currently assessing the impact of this update on ADFs special purpose financial statements. Special Purpose Statement of Cash Flows For the purposes of the Special Purpose Statement of Cash Flows, ADF considers that its cash and cash equivalents are limited to DUE FROM BANKS, which consists of cash on hand and current accounts in banks used for (i) operational disbursements, (ii) receipt of funds from encashment of donor countries promissory notes, and (iii) clearing accounts. NOTE CINVESTMENTS The main investment management objective is to maintain security and liquidity. Subject to these parameters, ADB seeks the highest possible return on its investments. Investments are governed by the Investment Authority approved by the Board of Directors in 2006. ADB may engage in securities lending of government or government-guaranteed obligations for which ADB receives guarantee from the securities custodian and a fee. Transfers of securities by ADB to counterparties are not accounted for as sales as the accounting criteria for the treatment of a sale have not been met. These securities must be available to meet ADBs obligation to counterparties. Included in Investments as of 31 December 2011 were government or government-guaranteed obligations transferred under securities lending arrangements amounting to $11,700,000 ($19,038,000 2010). The net unrealized gains on the outstanding accelerated note encashment portfolio amounted to $12,448,000 ($13,876,000 2010). The currency composition of the investment portfolio as of 31 December 2011 and 2010 expressed in United States dollars are as follows:
currency United States dollar Euro Pound sterling Japanese yen Brunei dollar New Zealand dollar Total 2011 $2,711,240,000 2,099,184,000 645,255,000 341,595,000 125,000 $5,797,399,000 2010 $2,495,315,000 1,894,269,000 605,923,000 271,948,000 250,000 1,104,000 $5,268,809,000
121

The estimated fair value and amortized cost of the investments as of 31 December 2011 and 2010 are as follows:
2011 Estimated Fair Value Due in one year or less Due after one year through five years Due after five years through ten years Total $3,408,919,000 2,371,229,000 17,251,000 $5,797,399,000 amortized cost $3,399,129,000 2,296,573,000 15,663,000 $5,711,365,000 Estimated Fair Value $3,058,961,000 2,160,119,000 49,729,000 $5,268,809,000 2010 amortized cost $3,053,835,000 2,064,614,000 48,961,000 $5,167,410,000
Additional information relating to investments in government or government-guaranteed obligations classified as available for sale is as follows:
2011 as of 31 December: Amortized cost Estimated fair value Gross unrealized gains Gross unrealized losses For the years ended 31 December: Change in net unrealized gains (losses) from prior year Proceeds from sales Gross gain on sales Gross loss on sales (15,365,000) 197,793,000 9,094,000 (16,660,000) 127,659,000 1,034,000 (180,000) $4,038,649,000 4,124,683,000 86,607,000 (573,000) $3,329,977,000 3,431,376,000 101,605,000 (206,000) 2010
The rate of return on the average investments held during the year, including securities purchased under resale arrangement, based on the portfolio held at the beginning and end of each month, was 1.71% (1.89% 2010) excluding unrealized gains and losses on investment securities, and 1.46% (1.60% 2010) including unrealized gains and losses on investments.
122
cOntinUED
As of 31 December 2011, gross unrealized losses resulting from market movements amounted to $573,000 ($206,000 2010) for government or government-guaranteed obligations. There was one security in 2011 (nil 2010) that sustained unrealized losses for over one year. Comparative details for 2011 and 2010 are as follows:
One year or less For the year 2011 Government or governmentguaranteed obligations Fair Value Unrealized Losses Over one year Fair Value Unrealized Losses Fair Value total Unrealized Losses
$370,738,000
$541,000
$220,049,000
$32,000
$590,787,000
$573,000
One year or less For the year 2010 Government or governmentguaranteed obligations Fair Value Unrealized Losses
Over one year Fair Value Unrealized Losses Fair Value
total Unrealized Losses
$428,243,000
$206,000
$428,243,000
$206,000
NOTE DLOANS AND HIPC DEBT RELIEF Prior to 1 January 1999, loans of ADF were extended to eligible borrowing member countries, which bore a service charge of 1% and required repayment over periods ranging from 35 to 40 years. On 14 December 1998, the Board of Directors approved an amendment to ADF loan terms, as follows: (i) for loans to finance specific projects, the maturity was shortened to 32 years including an 8-year grace period; (ii) for program loans to support sector development, the maturity was shortened to 24 years including an 8-year grace period; and (iii) all new loans bear a 1% interest charge during the grace period, and 1.5% during the amortization period, with equal amortization. The revised ADF lending terms took effect on 1 January 1999 for loans for which formal loan negotiations were completed on or after 1 January 1999. ADF requires borrowers to absorb exchange risks attributable to fluctuations in the value of the currencies disbursed. In September 2007, the Board of Directors approved a new hard-term ADF lending facility. The facility will have a fixed interest rate of 150 basis points below the weighted average of the ten-year fixed swap rates of the special drawing rights component currencies plus the OCR lending spread, or the current ADF rate, whichever is higher. Other terms are similar to those of regular ADF loans. The interest rate will be reset every January and will apply to all hard-term loans approved that year and will be fixed for the life of the loan. For hard-term ADF loans approved in 2011, the interest rate was set at 2.02% (2.22% 2010). Three loans were approved under this facility in 2011 (two 2010). In April 2008, the Board of Governors adopted the resolution on Providing Heavily Indebted Poor Countries (HIPC) Relief from Asian Development Fund Debt, which allowed ADB to participate in
123

the HIPC debt relief initiative. Subsequently, the Board of Directors approved the provision of debt relief under HIPC to Afghanistan. ADB believes that because there is no comparable market for ADF loans and because they do not intend to sell these loans, using market data to calculate the fair value of the loans is not meaningful. As such, the fair value of loans is determined based on the terms at which a similar loan would currently be made by ADB to a similar borrower. For such loans, fair value approximates the carrying amount. The estimated fair value of loans is not affected by credit risks because the amount of any such adjustment is considered not to have a material effect based on ADBs experience with its borrowers. Undisbursed loan commitments and an analysis of loans by country as of 31 December 2011 are shown in ADF-6. As of 31 December 2011 and 2010, loans to borrowers were as follows:
2011 Pakistan Bangladesh Viet Nam Sri Lanka Nepal Others (individually less than 5% of total loans) Total Outstanding Loans Allowance for HIPC Debt Relief net Outstanding Loans $ 6,994,680,000 5,974,595,000 3,651,183,000 2,659,314,000 1,588,004,000 8,646,831,000 29,514,607,000 (78,927,000) $29,435,680,000 2010 $ 7,054,459,000 5,936,625,000 3,324,517,000 2,679,933,000 1,588,078,000 8,393,325,000 28,976,937,000 (79,918,000) $28,897,019,000
As of 31 December 2011, there were 28 loans to Myanmar in non-accrual status representing 2.2% of the total outstanding loans (28 loans to Myanmar 2010). The total principal amount outstanding of such loans was $642,287,000 ($614,788,000 2010) of which $398,911,000 ($349,616,000 2010) was overdue. Loans in non-accrual status resulted in $6,280,000 ($5,800,000 2010) not being recognized as income from loans for the year ended 31 December 2011. The accumulated interest on these loans that was not recognized as income as of 31 December 2011 totaled $91,644,000 ($81,574,000 2010). Credit Quality of Loans ADF loans are provided for economic and social development of the less developed member countries, which generally have lower credit quality than OCR borrowers. ADB uses a performance based allocation (PBA) system to allocate ADF resources among the many competing needs in the region and to direct the funds to where they will be used most effectively. ADB regularly reviews the borrowers debt sustaining capacity in determining the proportion of grant and loan that would be provided to each borrower.
124
cOntinUED
The credit quality of ADF loans have been classified by mapping the external sovereign ratings of the borrowers to ADBs internal risk rating scale used for OCR loans. The credit quality of ADF loans are detailed as follows:
Risk class Low credit risk Medium credit risk High credit risk total Risk Rating 15 (AAA to BBB) 611 (BB+ to B) 1214 (CCC+ to D) $ 2011 54,109,000 24,238,827,000 5,221,671,000 $29,514,607,000 $ 2010 7,632,000 23,847,756,000 5,121,549,000 $28,976,937,000
Provision for HIPC Debt Relief amounting to $82,350,000 relating to the Afghanistan debt relief under the HIPC initiative was recognized and charged to income in 2008. Of this amount, a total of $3,423,000 was written-off as the loan service payments of affected loans fell due. This brought the balance of Allowance for HIPC debt relief as of 31 December 2011 to $78,927,000. NOTE ERELATED PARTY TRANSACTIONS The OCR and special funds resources are at all times used, committed, and invested entirely separate from each other. The administrative and operational expenses pertaining to the OCR and ADF are allocated based on operational activities and are settled regularly. Under ADF X and the fourth regularized replenishment of TASF, a specific portion of the total contributions is to be allocated to TASF. ADF receives contributions from members and subsequently transfers the specified portion to TASF. As of 31 December 2011, ADFs outstanding payable to related funds pertains to payable to OCR of $41,432,000 ($28,628,000 2010), representing administration and operational expenses. There were no outstanding payables to TASF (nil 2010) and to trust funds (nil 2010). NOTE FCONTRIBUTED RESOURCES AND ADVANCED CONTRIBUTIONS In May 2011, the Board of Governors approved the allocation of $120,000,000 from OCRs 2010 net income to ADF. ADF receives cash or nonnegotiable, noninterest-bearing demand obligations as payment for the contributions. These are nonnegotiable, noninterest-bearing, and subject to certain restrictions imposed by applicable Board of Governors resolutions, demand obligations are encashable by ADB at par upon demand. These are recorded as a reduction in the Fund Balances. ADB currently expects that the notes outstanding as of 31 December 2011 will be encashed in varying amounts over the standard encashment period ending 31 December 2014 for ADF IX and 31 December 2017 for ADF X.
125

Included in other assets as of 31 December 2011 are advance contributions received from donors totaling $163,605,000 ($150,631,000 2010). In July 2011, ADB received a confirmation from the Government of Italy that the remaining balance of 342,000 ($494,000 equivalent) of Italys promissory note received under ADF VI will no longer be used to fund any specific projects or trust funds. Consequently, the promissory note and corresponding amount recorded in Deferred Credits were considered exhausted. As of 31 December 2011, contributions from 29 donors totaling $4,139,089,000 (27 donors totaling $3,571,381,000 2010) were committed for ADF X. Of these, $2,849,194,000 ($1,774,564,000 2010), including amortized discount of $6,788,000 ($3,032,000 2010) were received and recorded in Contributed Resources. NOTE GADMINISTRATIVE EXPENSES Administrative expenses represent administration charge from OCR, which is an apportionment of all administrative expenses of ADB (other than those pertaining directly to ordinary operations and special operations), in the proportion of the relative volume of operational activities of each fund. NOTE HSET-ASIDE RESOURCES Pursuant to the provisions of Article 19, paragraph 1(i) of the Charter, the Board of Governors has authorized the setting aside of 10% of the unimpaired paid-in capital paid by member countries pursuant to Article 6, paragraph 2(a) of the Charter and of the convertible currency portion paid by member countries pursuant to Article 6, paragraph 2(b) of the Charter as of 28 April 1973, to be used as a part of the Special Funds of ADB. The capital so set aside was allocated and transferred from the OCR to ADF as Set-Aside Resources. The capital stock of ADB is defined in Article 4, paragraph 1 of the Charter, in terms of United States dollars of the weight and fineness in effect on 31 January 1966 (the 1966 dollar). Therefore, Set-Aside Resources had historically been translated into the current United States dollar (ADBs unit of account), on the basis of its par value in terms of gold. From 1973 until 31 March 1978, the rate arrived at on this basis was $1.20635 per 1966 dollar. Since 1 April 1978, at which time the Second Amendment to the Articles of Agreement of the International Monetary Fund (IMF) came into effect, currencies no longer had par values in terms of gold. Pending ADBs selection of the appropriate successor to the 1966 dollar, the Set-Aside Resources have been valued for purposes of the accompanying financial statements in terms of the SDR, at the value in current United States dollars as denominated by the IMF. As of 31 December 2011, the value of the SDR in terms of the current United States dollar was $1.53527 ($1.54003 2010). On this basis, Set-Aside Resources amounted to $73,094,000 ($73,320,000 2010). If the capital stock of ADB as of 31 December 2011 had been valued in terms of $12,063.50 per share, Set-Aside Resources would have been $57,434,000.
126
cOntinUED
NOTE ICOMPREHENSIVE INCOME Comprehensive Income has two major components: revenue less than expenses (ADF-2) and other comprehensive (loss) income (ADF-3). Other Comprehensive (Loss) Income includes unrealized gains and losses on Available for Sale securities and translation adjustments of assets and liabilities not recognized in the Special Purpose Statement of Revenue and Expenses. The changes in Accumulated Other Comprehensive Loss balances for the years ended 31 December 2011 and 2010 expressed in thousands of US dollars are as follows:
accumulated translation adjustments 2011 Balance, 1 January Changes from period activity Balance, 31 December $ (3,211,402) (687,552) $(3,898,954) 2010 $(2,847,594) (363,808) $(3,211,402) Unrealized investment holding gains 2011 $101,399 (15,365) $ 86,034 2010 $118,058 (16,659) $101,399 accumulated Other comprehensive Loss 2011 $ (3,110,003) (702,917) $(3,812,920) 2010 $ (2,729,536) (380,467) $(3,110,003)
NOTE JGRANTS AND UNDISBURSED COMMITMENTS The ADF IX introduced financing in the form of grants for the first time. During 2011, 16 grants (34 2010) totaling $596,760,000 ($967,190,000 2010) were approved, while $1,120,579,000 ($651,756,000 2010), net of $3,611,000 ($5,954,000 2010) write back of undisbursed commitments for completed grants, became effective. The fair value of undisbursed commitments approximates the amount outstanding, because ADB expects that disbursements will substantially be made for all the projects/programs covered by the commitments. NOTE KFAIR VALUE MEASUREMENTS ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability at measurement date (exit price) in an orderly transaction among willing participants with an assumption that the transaction takes place in the entitys principal market, the most advantageous market for the asset or liability. The most advantageous market is where the sale of the asset or transfer of liability would maximize the amount received for the asset or minimize the amount paid to transfer the liability. The fair value measurement is not adjusted for transaction cost. ASC 820 also establishes a fair value hierarchy that gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), next priority to observable market inputs or market corroborated data (Level 2), and the lowest priority to unobservable inputs without market corroborated data (Level 3). ASC 820 requires the fair value measurement to maximize the use of market observable inputs.
127

The following guidelines are applied in determining the fair values of financial instruments: Investments, securities purchased under resale arrangements, and forward contracts Readily marketable investments are fair valued using active market quotes in Level 1 category. Level 2 category includes investments, securities purchased under resale arrangements, and forward contracts which are fair valued with significant market observable inputs. Included in Level 3 category are investments fair valued using unobservable inputs including prices provided by third parties such as independent pricing services, custodians, and asset managers. Forward foreign exchange contracts are fair valued using discounted cash flow models. Market observable inputs, such as yield curves, foreign exchange rates, cross currency rates, and volatilities are applied to the models to determine fair value of investments. Inter-level transfers from one year to another may occur due to changes in market activities affecting the availability of quoted market prices or observable market data. The fair values of the following financial assets of ADF as of 31 December 2011 and 2010 were reported based on the following:
31 December 2011 assets Investments Government or governmentguaranteed obligations Time deposits Securities purchased under resale arrangement total assets at fair value $ 4,124,683,000 1,672,716,000 335,818,000 $6,133,217,000
$ 3,365,358,000 $3,365,358,000
759,325,000 1,672,716,000 335,818,000
$2,767,859,000
31 December 2010 assets Investments Government or governmentguaranteed obligations Time deposits Securities purchased under resale arrangement total assets at fair value $ 3,431,376,000 1,837,433,000 340,811,000 $5,609,620,000
$ 2,963,333,000 $2,963,333,000
1,837,433,000 340,811,000
$ 468,043,000 $468,043,000
$2,178,244,000
128
cOntinUED
The table below provides the details of transfers between Level 1 and Level 2 for the year ended 31 December 2011:
Level 1 Investments Government or government-guaranteed obligations Transfers (out of) into $(98,317,000) $98,317,000 Level 2
Government or government-guaranteed obligations totaling $98,317,000 were transferred from Level 1 to Level 2. Assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of 31 December 2011 and 2010 are as follows:
government or governmentguaranteed obligations 2011 Balance, 1 January Total gains (losses) realized/unrealized Included in earnings (or changes in net assets) Included in other comprehensive income Purchases Maturities Transfers into Level 3 Transfers out of Level 3 Balance, 31 December The amount of total losses for the period recognized in other comprehensive income attributable to the change in net unrealized gains or losses relating to assets still held at the reporting date. $ 130,000 6,896,000 (212,311,000) (262,758,000) 18,000 (6,577,000) 141,854,000 332,748,000 $468,043,000 $ 468,043,000 $ 2010
$ (2,270,000)
During 2011, ADB enhanced the approach for determining the fair value hierarchy of liquidity portfolio investments by introducing additional pricing sources and strengthening the internal analytics. The enhanced methodology provided more robust support for market observable inputs in pricing. Transfers out of Level 3 in 2011 are primarily the result of refining ADBs valuation approach. All investment securities, including those under Level 3, are of high credit quality. The government or government-guaranteed obligations are largely floating rate notes and callable bonds with a credit quality rating from Standard and Poors of AAA to AA. The corporate obligations are also floating rate notes.
129

See Notes C, D, and J for discussions relating to investments, loans, and undisbursed commitments, respectively. In all other cases, the carrying amounts of ADFs assets, liabilities, and fund balances are considered to approximate fair values for all significant financial instruments. NOTE LSUBSEQUENT EVENTS ADB has evaluated subsequent events after 31 December 2011 through 14 March 2012, the date these Special Purpose Financial Statements are available for issuance. As a result of this evaluation, there are no subsequent events, as defined, that require recognition or disclosure in the ADFs Special Purpose Financial Statements as of 31 December 2011.
130
tecHnical assistance special Fund

131
132
Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected and corrected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. In our opinion, managements assertion that ADB maintained effective internal control over financial reporting as of December 31, 2011, is fairly stated, in all material respects, based on the criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. We have also audited, in accordance with auditing standards generally accepted in the United States of America, the accompanying statement of financial position of Asian Development Bank (ADB) Technical Assistance Special Fund as of December 31, 2011 and 2010 and the related statements of activities and changes in net assets, and cash flows, for each of the years in the two-year period ended December 31, 2011 and our report dated March 14, 2012 expressed an unqualified opinion on those financial statements.
133
INDEPENDENT AUDITORS REPORT To the Board of Directors and the Board of Governors of Asian Development Bank We have audited the accompanying statement of financial position of Asian Development Bank (ADB) Technical Assistance Special Fund as of December 31, 2011 and 2010 and the related statements of activities and changes in net assets, and cash flows, for each of the years in the two-year period ended December 31, 2011. These financial statements are the responsibility of ADBs management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of ADB Technical Assistance Special Fund as of December 31, 2011 and 2010, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2011 in conformity with accounting principles generally accepted in the United States of America. Our audits were conducted for the purpose of forming an opinion on the basic 2011 and 2010 financial statements taken as a whole. The statement of resources as of December 31, 2011 and summary statement of technical assistance approved and effective for the year then ended, are presented for the purpose of additional analysis and are not a required part of the basic financial statements. These schedules are the responsibility of ADBs management. Such 2011 schedules have been subjected to the auditing procedures applied in our audit of the basic financial statements and, in our opinion are fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole.
134
We have also audited, in accordance with attestation standards established by the American Institute of Certified Public Accountants, managements assertion that ADB maintained effective internal control over financial reporting as of December 31, 2011, based on the criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 14, 2012 expressed an unqualified opinion on managements assertion that ADB maintained effective internal control over financial reporting.
135
Asian Development Bank Annual Report 2011 tasF-1
asian DEVELOpMEnt BanKtEchnicaL assistancE spEciaL FUnD

STATEMENT OF FINANCIAL POSITION 31 December 2011 and 2010 Expressed in thousands of United states Dollars
2011 assEts DUE FROM BANKS INVESTMENTS (Notes C and G) Time deposits SECURITIES PURCHASED UNDER RESALE ARRANGEMENT (Note G) ACCRUED REVENUE DUE FROM CONTRIBUTORS (Note F) ADVANCES FOR GRANTS AND OTHER ASSETS (Note D) tOtaL LiaBiLitiEs anD UncOMMittED BaLancEs ACCOUNTS PAYABLE AND OTHER LIABILITIES (Note D) UNDISBURSED COMMITMENTS (Notes E and G) TOTAL LIABILITIES UNCOMMITTED BALANCES (TASF-2 and TASF-4) (Note F), represented by: Unrestricted net assets tOtaL
The accompanying notes are an integral part of these financial statements (TASF-6).
2010
1,494
1,640 357,140 4,906 109 172,187 10,824
380,995 10,923 21 129,083 9,464 $531,980
$546,806
188
125 298,595 298,720 248,086
306,681 306,869 225,111 $531,980
$546,806
136
Technical Assistance Special Fund tasF-2

STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars
2011 changEs in UnREstRictED nEt assEts CONTRIBUTIONS (TASF-4) (Note F) REVENUE From investments (Note C) From other sourcesnet Total EXPENSES Technical assistancenet (TASF-5) (Note E) Financial expenses Total CONTRIBUTIONS AND REVENUE LESS THAN EXPENSES EXCHANGE GAINSnet DECREASE IN NET ASSETS NET ASSETS AT BEGINNING OF YEAR nEt assEts at EnD OF yEaR
2010
$ 81,733
$ 40,952
3,340 14 85,087
2,495 12 43,459
111,938 21 111,959 (26,872) 3,897 (22,975) 248,086 $225,111
134,658 16 134,674 (91,215) 16,593 (74,622) 322,708 $248,086
137

2011 CASH FLOWS FROM OPERATING ACTIVITIES Contributions received Interest on investments received Net cash received (paid for) from other activities Technical assistance disbursed Financial expenses paid Net Cash Provided by Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Maturities of investments Purchases of investments Net (payments for) receipts from securities purchased under resale arrangement Net Cash Used in Investing Activities Effect of Exchange Rate Changes on Due from Banks Net Decrease in Due from Banks Due from Banks at Beginning of Year Due from Banks at End of Year RECONCILIATION OF DECREASE IN NET ASSETS TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Decrease in net assets (TASF-2) Adjustments to reconcile decrease in net assets to net cash provided by operating activities: Change in accrued revenue Change in due from contributors Change in other assets Change in miscellaneous liabilities Change in undisbursed commitments Exchange losses (gains)net Net Cash Provided by Operating Activities
2010 $ 120,837 2,416 (10) (94,909) (16) 28,318
131,020 3,422 14 (102,563) (21) 31,872
12,249,980 (12,275,756) (6,338) (32,114) 96 (146) 1,640 $ 1,494 $
8,307,458 (8,341,153) 4,498 (29,197) 192 (687) 2,327 1,640
(22,975)
(74,622)
82 35,414 2,408 65 8,086 8,792 $ 31,872 $
(79) 70,946 5,917 (706) 39,750 (12,888) 28,318
138

STATEMENT OF RESOURCES 31 December 2011 Expressed in thousands of United states Dollars
contributions committed During 2011 $ 16 1,964 2,594 70 37,090 $ 41,733 Direct Voluntary contributions $ 2,484 159 47 1,394 3,346 1,600 1,963 237 1,697 3,315 100 3,948 250 774 47,710 1,900 909 1,338 1,096 3,279 1,876 1,100 190 6 862 1,035 200 5,617 1,500 $89,932 Regularized Replenishment1 $ 53,414 7,177 5,875 450 43,311 4,812 5,750 4,744 33,862 44,509 3,509 40 3,643 18,284 287,286 20,516 609 818 67 20,484 4,828 7,896 3,595 711 16,564 11,931 9,314 3,455 493 3,237 39,447 102,120 $762,751 total contributions $ 55,898 7,336 47 7,269 450 46,657 6,412 7,713 4,981 35,559 47,824 3,609 3,948 290 3,643 19,058 334,996 22,416 609 1,727 67 21,822 5,924 11,175 1,876 3,595 1,811 16,754 6 12,793 10,349 3,655 493 3,237 45,064 103,620 $ 852,683 (3,472) 40,000 809,000 186,588 $81,733 $1,844,799
contributor Australia Austria Bangladesh Belgium Brunei Darussalam Canada Peoples Republic of China Denmark Finland France Germany Hong Kong, China India Indonesia Ireland Italy Japan Republic of Korea Luxembourg Malaysia Nauru Netherlands New Zealand Norway Pakistan Portugal Singapore Spain Sri Lanka Sweden Switzerland Taipei,China Thailand Turkey United Kingdom United States Total Transfer to Asian Development Fund Allocation from OCR Net Income Other Resources2 tOtaL
Note: Numbers may not sum precisely because of rounding. 1 Represents TASF portion of contributions to the replenishment of the Asian Development Fund and the Technical Assistance Special Fund authorized by Governors Resolution Nos. 182, 214, 300, and 333 at historical values. 2 Represents income, repayments, and reimbursements accruing to TASF since 1980. The accompanying notes are an integral part of these financial statements (TASF-6).
139

SUMMARY STATEMENT OF TECHNICAL ASSISTANCE APPROVED AND EFFECTIVE For the Year Ended 31 December 2011 Expressed in thousands of United states Dollars
Recipient Afghanistan Bangladesh Bhutan Cambodia Peoples Republic of China Georgia India Indonesia Kazakhstan Kyrgyz Republic Lao Peoples Democratic Republic Maldives Marshall Islands Federated States of Micronesia Mongolia Nauru Nepal Pakistan Papua New Guinea Philippines Samoa Solomon Islands Sri Lanka Tajikistan Thailand Timor-Leste Turkmenistan Uzbekistan Viet Nam Regional Total Regional Activities tOtaL project preparation $ 1,695 600 3,000 6,050 (35) 174 (177) 512 1,000 (9) (1) 64 (782) 1,073 546 (80) (65) 1,618 (22) (74) 1,785 4,475 2,364 $23,710 advisory $ (42) (604) (647) (105) (39) (50) (29) (50) (125) (126) (1,098) (1,882) (571) (237) (750) (43) (436) $(9,312) Research and Development $ 20,231 $20,231 policy and advisory $ (325) 1,200 446 8,269 (145) (298) 225 300 (33) 1,500 (803) 800 (100) 300 600 450 750 8,006 $21,141 capacity Development $ 1,650 1,600 2,425 2,326 6,886 725 650 225 2,445 225 600 200 251 4,000 1,725 675 1,056 250 3,125 21,430 $52,469 $ total (325) 2,068 2,158 5,871 16,040 (180) 6,114 442 1,162 1,411 2,395 196 291 (50) 441 74 717 534 1,873 1,600 (80) 610 2,737 (150) 428 250 (74) 2,492 7,163 52,031 108,238 3,700 $111,938
(2,476)
Notes: (i) Numbers may not sum precisely because of rounding. (ii) Negative amounts represent net undisbursed commitments written back to balances available for future commitments (Notes B and E). The accompanying notes are an integral part of these financial statements (TASF-6).
140

NOTE ANATURE OF OPERATIONS The Asian Development Bank (ADB), a multilateral development financial institution, was established in 1966 with its headquarters in Manila, Philippines. ADB and its operations are governed by the Agreement Establishing the Asian Development Bank (the Charter). Its purpose is to foster economic development and co-operation in Asia and the Pacific region and to contribute to the acceleration of the process of economic development of the developing member countries (DMCs) in the region, collectively and individually. Since 1999, ADBs corporate vision and mission has been to help DMCs reduce poverty in the region. This was reaffirmed under the long-term strategic framework for 20082020 (Strategy 2020). Under Strategy 2020, ADBs corporate vision continues to be An Asia and Pacific Free of Poverty and its mission has been to help its DMCs reduce poverty and improve living conditions and quality of life. ADB has been pursuing its mission and vision by focusing on three complementary strategic agendas: inclusive growth, environmentally sustainable growth, and regional integration. ADB provides financial and technical assistance for projects and programs, which will contribute to achieving this purpose. These are financed through ordinary capital resources (OCR) and Special Funds.1 The TASF was established to provide technical assistance on a grant basis to DMCs of ADB and for regional technical assistance. TASF resources consist of regularized replenishments and direct voluntary contributions by members, allocations from the net income of OCR, and revenue from investments and other sources. In August 2008, the Board of Governors adopted the resolution providing for the ninth replenishment of the Asian Development Fund (ADF X) and the fourth regularized replenishment of the TASF. In conjunction with the ADF replenishment, the resolution provides for a replenishment of the TASF to finance technical assistance operations under the fund. Total replenishment size is SDR7,490,301,000, of which SDR2,665,765,000 will come from new donor contributions. Donors agreed to allocate 3% of the total replenishment size (equivalent to 8% of total donor contributions) to TASF. The replenishment became effective on 16 June 2009. As of 31 December 2011, ADB received instruments of contributions from 29 donors with a total amount equivalent to SDR2,578,687,000, including qualified contribution amounting to about SDR502,451,000. ADB is immune from taxation pursuant to Chapter VIII, Article 56, Exemption from Taxation, of the Charter. NOTE BSUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Presentation of the Financial Statements The financial statements of the TASF are prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP), and are presented on the basis of those for not-for-profit organizations. TASF reports donors contributions of cash and other assets as unrestricted assets as these are made available to TASF without conditions other than for the purpose of pursuing its objectives.
1
141

Functional and Reporting Currency The United States dollar is the functional and reporting currency, representing the currency of the primary economic operating environment of TASF. Translation of Currencies ADB adopts the use of daily exchange rates for accounting and financial reporting purposes. This allows transactions denominated in non-US dollar to be translated to the reporting currency using exchange rates applicable at the time of transactions. Contributions included in the financial statements during the year are recognized at applicable exchange rates as of the respective dates of commitment. At the end of each accounting month, translations of assets, liabilities, and uncommitted balances which are denominated in non-US dollar are adjusted using the applicable rates of exchange at the end of the reporting period. These translation adjustments are accounted for as exchange gains or losses and are credited or charged to operations. Investments All investment securities held by TASF are reported at fair value. Realized and unrealized gains and losses are included in Revenue from investments. Time deposits are reported at cost which is a reasonable estimate of fair value. Interest income on time deposits are recognized as realized and reported in revenue from investments. Securities Purchased under Resale Arrangement TASF accounts for the transfer of financial assets in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 860, Transfers and Servicing. In general, transfers are accounted for as sales under ASC 860 when control over the transferred assets has been relinquished. Otherwise, the transfers are accounted for as resale arrangements and collateralized financing arrangements. Securities purchased under resale arrangement are recorded as assets and are not re-pledged. Contributions The contributions from donors and the allocations from OCR net income are included in the financial statements from the date of effectivity of the contribution agreement, and the Board of Governors approval, respectively. Technical Assistance and Undisbursed Commitments Technical assistance (TA) and grants are recognized in the financial statements when the project is approved and becomes effective. Upon completion or cancellation of a TA project, any undisbursed amount is written back as a reduction in technical assistance for the year and the corresponding undisbursed commitment is eliminated accordingly.
142
cOntinUED
Advances are provided from TA and grants to the executing agency or co-operating institution, for the purpose of making payments for eligible expenses. The advances are subject to liquidation and charged against undisbursed commitment. Any unutilized portion is required to be returned to the fund. These are included in ADVANCES FOR GRANTS AND OTHER ASSETS. Accounting Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make reasonable estimates and assumptions that affect the reported amounts of assets and liabilities and uncommitted balances as of the end of the year and the reported amounts of revenue and expenses during the year. The actual results could differ from those estimates. Accounting and Reporting Developments Accounting Standards Update (ASU) 2010-06, Fair Value Measurements and Disclosures (Topic 820) Improving Disclosures about Fair Value Measurements with respect to the separate disclosures about gross purchases, sales, issuances, and settlements relating to Level 3 measurements is effective for fiscal years beginning after 15 December 2010 and for interim periods within those fiscal years. This update did not have a material impact on TASFs financial statements. In April 2011, the FASB issued ASU 2011-03, Transfers and Servicing (Topic 860) Reconsideration of Effective Control for Repurchase Agreements. The update removes from the assessment of effective control the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms, even in the event of default by the transferee. It does not change the other criteria used in the assessment of effective control. This update is applicable prospectively to new transactions and transactions that are modified on or after the first interim or annual period beginning 15 December 2011. This update did not have an impact on TASFs 31 December 2011 financial statements. In May 2011, the FASB issued ASU 2011-04, Fair Value Measurement (Topic 820) Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in US GAAP and IFRSs, which provides the consistency between US GAAP and International Financial Reporting Standards (IFRSs) on the definition of fair value (FV) and on the guidance on how to measure FV and on what to disclose about FV measurements. The amendments to the update do not require additional FV measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. The new guidance will require prospective application and are effective for interim and annual periods beginning on or after 15 December 2011. ADB is currently assessing the impact of this update on TASFs financial statements. Statement of Cash Flows For the purposes of the Statement of Cash Flows, the TASF considers that its cash and cash equivalents are limited to DUE FROM BANKS, which consists of cash on hand and current accounts in banks used for (i) operational disbursements, (ii) receipt of funds from encashment of donor countries promissory notes, and (iii) clearing accounts.
143

NOTE CINVESTMENTS The main investment management objective is to maintain security and liquidity. Subject to these parameters, ADB seeks the highest possible return on its investments. Investments are governed by the Investment Authority approved by the Board of Directors in 2006. All investments held as of 31 December 2011 and 2010 were in time deposits. The currency composition of the investment portfolio as of 31 December 2011 and 2010 expressed in United States dollars are as follows:
currency United States dollar Australian dollar Euro Pound sterling Canadian dollar total 2011 $ 249,069,000 50,306,000 40,186,000 21,279,000 20,155,000 $380,995,000 2010 $ 246,936,000 42,514,000 32,809,000 18,385,000 16,496,000 $357,140,000
The annualized rate of return on the average investments held during the year including securities purchased under resale arrangement, based on the portfolio held at the beginning and end of each month was 0.89% (0.74% 2010). NOTE DRELATED PARTY TRANSACTIONS The OCR and special funds resources are at all times used, committed, and invested entirely separate from each other. Under ADF IX and ADF X, a specific portion of the total contributions under each is to be allocated to TASF as third and fourth regularized replenishments, respectively. ADF receives the contributions from members and subsequently transfers the specified portion to TASF. Regional technical assistance projects and programs activities may be cofinanced by ADBs other special funds and trust funds administered by ADB (Agency Trust Funds). Interfund accounts are settled regularly between TASF and the other funds.
144
cOntinUED
The interfund account balances included in ADVANCES FOR GRANTS AND OTHER ASSETS and ACCOUNTS PAYABLE AND OTHER LIABILITIES are as follows:
2011 Receivable from: Japan Special Fund Regional Cooperation and Integration Fund Agency Trust Fundsnet Total payable to: Ordinary capital resources Regional Cooperation and Integration Fund Climate Change Fund Agency Trust Fundsnet Total $ 2,000 48,000 11,000 37,000 $98,000 $ 95,000 $ 95,000 $11,000 $11,000 $ 9,000 5,000 247,000 $261,000 2010
NOTE EUNDISBURSED COMMITMENTS Undisbursed commitments are denominated in United States dollars and represent effective ongoing grant-financed TA projects/programs, which are not yet disbursed and unliquidated as of the end of the year. During 2011, $18,982,000 ($11,752,000 2010) representing completed and cancelled TA projects was written back as a reduction in technical assistance of the period and the corresponding undisbursed commitment was eliminated. The fair value of undisbursed commitments approximates the amounts undisbursed, because ADB expects that disbursements will be made for all projects/ programs covered by the commitments. NOTE FCONTRIBUTIONS AND UNCOMMITTED BALANCES Since inception in 1967, direct contributions have been made by 29 member countries. In 2011, Pakistan made a direct and voluntary contribution amounting to $70,000. In 1986, 1992, 2005, and 2009, the Board of Governors of ADB, in authorizing replenishments of the ADF, provided for allocations to the TASF in aggregate amounts equivalent to $72,000,000, $141,000,000, $220,000,000, and $288,000,000, respectively, to be used for technical assistance to ADF-borrowing DMCs and for regional technical assistance. During the year, the fund received $1,964,000 and $75,112,000 under ADF IX and ADF X replenishments, respectively, leaving a total of $129,083,000 as DUE FROM CONTRIBUTORS. In 2011, $40,000,000 was allocated from OCR net income to TASF, bringing the accumulated allocation from OCR net income to $809,000,000.
145

Some of the direct contributions received can be subject to restricted procurement sources, while some are given on condition that the technical assistance be made on a reimbursable basis. The total contributions received for the years ended 31 December 2011 and 2010 were without any restrictions. Uncommitted balances comprise amounts which have not been committed by ADB as of 31 December 2011 and 2010. These balances include approved TA projects/programs that are not yet effective. NOTE GFAIR VALUE MEASUREMENTS ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability at measurement date (exit price) in an orderly transaction among willing participants with an assumption that the transaction takes place in the entitys principal market, the most advantageous market for the asset or liability. The most advantageous market is where the sale of the asset or transfer of liability would maximize the amount received for the asset or minimize the amount paid to transfer the liability. The fair value measurement is not adjusted for transaction cost. ASC 820 also establishes a fair value hierarchy that gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), next priority to observable market inputs or market corroborated data (Level 2), and the lowest priority to unobservable inputs without market corroborated data (Level 3). ASC 820 requires the fair value measurement to maximize the use of market observable inputs. The following guidelines are applied in determining the fair values of financial instruments: Investments and Securities Purchased under Resale Arrangements Readily marketable investments are fair valued using active market quotes in Level 1 category. Level 2 category includes investments and securities purchased under resale arrangements which are fair valued with significant market observable inputs.
146
cOntinUED
The fair value of the following financial assets of TASF as of 31 December 2011 and 2010 were reported based on the following:
31 December 2011 assets Investments Time deposits Securities purchased under resale arrangement total assets at fair value $ 380,995,000 10,923,000 $391,918,000
$ $
$ 380,995,000 10,923,000 $391,918,000
$ $
31 December 2010 assets Investments Time deposits Securities purchased under resale arrangement total assets at fair value $ 357,140,000 4,906,000 $362,046,000
$ $
$ 357,140,000 4,906,000 $362,046,000
$ $
See Notes C and E for discussions relating to investments and undisbursed commitments, respectively. In all other cases, the carrying amounts of TASFs assets, liabilities, and uncommitted balances are considered to approximate fair values for all significant financial instruments. nOtE hsUBsEQUEnt EVEnts ADB has evaluated subsequent events after 31 December 2011 through 14 March 2012, the date these Financial Statements are available for issuance. As a result of this evaluation, there are no subsequent events, as defined, that require recognition or disclosure in the TASFs Financial Statements as of 31 December 2011.
147
Japan special Fund

148
Japan Special Fund
149
Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected and corrected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. In our opinion, managements assertion that ADB maintained effective internal control over financial reporting as of December 31, 2011, is fairly stated, in all material respects, based on the criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. We have also audited, in accordance with auditing standards generally accepted in the United States of America, the accompanying statement of financial position of Asian Development Bank (ADB) Japan Special Fund as of December 31, 2011 and 2010 and the related statements of activities and changes in net assets, and cash flows, for each of the years in the two-year period ended December 31, 2011 and our report dated March 14, 2012 expressed an unqualified opinion on those financial statements.
150
Japan Special Fund
INDEPENDENT AUDITORS REPORT To the Board of Directors and the Board of Governors of Asian Development Bank We have audited the accompanying statement of financial position of Asian Development Bank (ADB) Japan Special Fund as of December 31, 2011 and 2010 and the related statements of activities and changes in net assets, and cash flows, for each of the years in the two-year period ended December 31, 2011. These financial statements are the responsibility of ADBs management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of ADB Japan Special Fund as of December 31, 2011 and 2010, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2011 in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with attestation standards established by the American Institute of Certified Public Accountants, managements assertion that ADB maintained effective internal control over financial reporting as of December 31, 2011, based on the criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 14, 2012 expressed an unqualified opinion on managements assertion that ADB maintained effective internal control over financial reporting.
151
Asian Development Bank Annual Report 2011 JsF-1
asian DEVELOpMEnt BanKJapan spEciaL FUnD

2011 JsF Regular and supplementary 2010 JsF Regular and supplementary
accsF assEts DUE FROM BANKS INVESTMENTS (Notes C and G) Government or government-guaranteed obligations Time deposits 2,991 33,546 36,537 ACCRUED REVENUE ADVANCES FOR TECHNICAL ASSISTANCE AND OTHER ASSETS (Note D)1 tOtaL1 LiaBiLitiEs anD nEt assEts ACCOUNTS PAYABLE AND OTHER LIABILITIES (Note D)1 UNDISBURSED COMMITMENTS (Notes E and G) Technical assistance TOTAL LIABILITIES1 NET ASSETS (JSF-2), represented by: Uncommitted balances (Note F) Unrestricted Temporarily restricted 28,199 28,199 Net accumulated investment income (Note F) Temporarily restricted 8,511 36,710 tOtaL1 $36,711 1 $ 1 2 $36,711 $ 172
total
accsF
total
216
388
70
285
355
93,890 93,890 4 1,807 $95,917
2,991 127,436 130,427 6 1,806 $132,627
36,582 36,582 3 $36,655
121,364 121,364 12 3,974 $125,635
157,946 157,946 15 3,973 $162,289
62
62
313
313
38,432 38,494
38,432 38,494
72,512 72,825
72,512 72,825
57,423 57,423 57,423 $95,917
57,423 28,199 85,622 8,511 94,133 $132,627
28,199 28,199 8,455 36,654 $36,655
52,810 52,810 52,810 $125,635
52,810 28,199 81,009 8,455 89,464 $162,289
1 Numbers may not sum precisely due to elimination of interfund account of $1,000 ($1,000 2010). The accompanying notes are an integral part of these financial statements (JSF-4).
152
Japan Special Fund JsF-2

2011 JsF Regular and supplementary 2010 JsF Regular and supplementary
accsF changEs in UnREstRictED nEt assEts REVENUE FROM INVESTMENTS (Note C) REVENUE FROM OTHER SOURCES NET ASSETS REVERTED FROM TEMPORARILY RESTRICTED ASSETS Total EXPENSES Technical assistancenet (Note E) Administrative and financial expenses Total REVENUE IN EXCESS OF (LESS THAN) EXPENSES EXCHANGE LOSSES INCREASE (DECREASE) IN UNRESTRICTED NET ASSETS changEs in tEMpORaRiLy REstRictED nEt assEts REVENUE FROM INVESTMENTS AND OTHER SOURCES NET ASSETS REVERTED TO TEMPORARILY RESTRICTED ASSETS INCREASE IN TEMPORARILY RESTRICTED NET ASSETS INCREASE (DECREASE) IN NET ASSETS NET ASSETS AT BEGINNING OF YEAR nEt assEts at EnD OF yEaR 57 (1) 56 56 36,654 $36,710 1 1 $ 1 1
total
accsF
total
217 14 231
217 14 1 232
0 1 1
375 18 393
375 18 1 394
(4,691) 304 (4,387) 4,618 (5) 4,613
(4,691) 305 (4,386) 4,618 (5) 4,613
1 1 0 0
14,687 732 15,419 (15,026) (5) (15,031)
14,687 733 15,420 (15,026) (5) (15,031)
4,613 52,810 $57,423
57 (1) 56 4,669 89,464 $94,133
92 (1) 91 91 36,563 $36,654
(15,031) 67,841 $52,810
92 (1) 91 (14,940) 104,404 $89,464
0 = Less than $500. The accompanying notes are an integral part of these financial statements (JSF-4).
153
Asian Development Bank Annual Report 2011 JsF-3

2011 JsF Regular and supplementary $ 226 (27,341) (438) 10 (27,543) $ 2010 JsF Regular and supplementary $ 372 (36,769) (769) 12 (37,154) $
accsF CASH FLOWS FROM OPERATING ACTIVITIES Interest on investments received Technical assistance disbursed Administrative and financial expenses paid Net cash received from other sources Net Cash Provided by (Used in) Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Maturities of investments Purchases of investments Net Cash Provided by (Used in) Investing Activities Effect of Exchange Rate Changes on Due from Banks Net Increase (Decrease) in Due from Banks Due from Banks at Beginning of Year Due from Banks at End of Year RECONCILIATION OF INCREASE (DECREASE) IN NET ASSETS TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Increase (decrease) in net assets (JSF-2) Adjustments to reconcile increase (decrease) in net assets to net cash provided by (used in) operating activities: Amortization of discounts on investments Unrealized investment gains Change in undisbursed commitments Othersnet Exchange losses (gains)net Net Cash Provided by (Used in) Operating Activities $ 56 $ 2,015,297 (2,015,259) 38 102 70 172 $ 65 0 (1) 0 64
total 291 (27,341) (439) 10 (27,479) $
accsF 90 (6) (1) 0 83
total 462 (36,775) (770) 12 (37,071)
5,085,747 (5,058,273) 27,474 0 (69) 285 $ 216
7,101,044 1,802,229 (7,073,532) (1,802,319) 27,512 0 33 355 $ 388 $ (90) (7) 77 70 $
3,712,223 (3,675,099) 37,124 0 (30) 315 285
5,514,452 (5,477,418) 37,034 0 (37) 392 $ 355
4,613
4,669
91
(15,031)
$ (14,940)
(0) 8 0 $ 64
(34,080) 1,923 1 $ (27,543)
(0) 8 (34,080) 1,923 1 $ (27,479) $
(8) 83 $
(21,569) (553) (1) (37,154)
(21,569) (561) (1) $ (37,071)
0 = Less than $500. The accompanying notes are an integral part of these financial statements (JSF-4).
154

NOTE ANATURE OF OPERATIONS The Asian Development Bank (ADB), a multilateral development financial institution, was established in 1966 with its headquarters in Manila, Philippines. ADB and its operations are governed by the Agreement Establishing the Asian Development Bank (the Charter). Its purpose is to foster economic development and co-operation in Asia and the Pacific region and to contribute to the acceleration of the process of economic development of the developing member countries (DMCs) in the region, collectively and individually. Since 1999, ADBs corporate vision and mission has been to help DMCs reduce poverty in the region. This was reaffirmed under the long-term strategic framework for 20082020 (Strategy 2020). Under Strategy 2020, ADBs corporate vision continues to be An Asia and Pacific Free of Poverty and its mission has been to help its DMCs reduce poverty and improve living conditions and quality of life. ADB has been pursuing its mission and vision by focusing on three complementary strategic agendas: inclusive growth, environmentally sustainable growth, and regional integration. ADB provides financial and technical assistance for projects and programs, which will contribute to achieving this purpose. These are financed through ordinary capital resources (OCR) and Special Funds.1 The JSF was established in March 1988 when the Government of Japan and ADB entered into a financial arrangement whereby the Government of Japan agreed to make an initial contribution and ADB became the administrator. The purpose of JSF is to help DMCs of ADB restructure their economies and broaden the scope of opportunities for new investments, thereby assisting the recycling of funds to DMCs of ADB. While JSF resources are used mainly to finance technical assistance (TA) operations, these resources may also be used for equity investment operations in ADBs DMCs. Under the agreement between ADB and Japan, ADB may invest the proceeds of JSF pending disbursement. In March 1999, the Board approved the acceptance and administration by ADB of the Asian Currency Crisis Support Facility (ACCSF) to assist Asian currency crisis-affected member countries (CAMCs). Funded by the Government of Japan, ACCSF was established within JSF to assist in the economic recovery of CAMCs through interest payment assistance (IPA) grants, TA grants, and guarantees. With the general fulfillment of the purpose of the facility, the Government of Japan and ADB agreed to terminate the ACCSF on 22 March 2002 and all projects were financially completed as of 31 December 2011. Subject to the Government of Japans instruction, the remaining funds will be retained in ACCSF until the completion of administrative matters. ADB is immune from taxation pursuant to Chapter VIII, Article 56, Exemption from Taxation, of the Charter. NOTE BSUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Presentation of the Financial Statements The financial statements of JSF are prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP), and are presented on the basis of those for not-for-profit organizations and as unrestricted and temporarily restricted net assets. ACCSF funds are separately reported in the financial statements.
1
155

JSF reports the contributions of cash and other assets as restricted support if they are received with donor stipulations that limit the use of the donated assets. When the donor restriction expires, that is, when a stipulated time or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statement of Activities and Changes in Net Assets as NET ASSETS REVERTED TO TEMPORARILY RESTRICTED ASSETS. Functional and Reporting Currency The United States dollar is the functional and reporting currency, representing the currency of the primary economic operating environment of JSF. Translation of Currencies ADB adopts the use of daily exchange rates for accounting and financial reporting purposes. This allows transactions denominated in non-US dollar to be translated to the reporting currency using exchange rates applicable at the time of transactions. Contributions included in the financial statements during the year are recognized at applicable exchange rates as of the respective dates of commitment. At the end of each accounting month, translations of assets, liabilities, and uncommitted balances which are denominated in non-US dollar are adjusted using the applicable rates of exchange at the end of the reporting period. These translation adjustments are accounted for as exchange gains or losses and are credited or charged to operations. Investments All investment securities held by JSF are reported at fair value. Realized and unrealized gains and losses are included in revenue. Time deposits are reported at cost which is a reasonable estimate of fair value. Interest income on investment securities and time deposits are recognized as realized and reported, net of amortizations of premiums and discounts, as REVENUE FROM INVESTMENTS. Contributions Contributions by Japan are included in the financial statements from the date indicated by Japan that funds are expected to be made available. Contributions, which are restricted by the donor for specific TA projects/programs or for IPA grants, are classified as temporarily restricted contributions. Those without any stipulation as to specific use are accounted for and reported as unrestricted contributions. Technical Assistance and Undisbursed Commitments Technical assistance is recognized in the financial statements when the project is approved and becomes effective. Upon completion of a TA project or cancellation of a grant, any undisbursed amount is written back as a reduction in the TA for the year and the corresponding undisbursed commitment is eliminated accordingly.
156
cOntinUED
Advances are provided from technical assistance grant funds to the executing agency or co-operating institution, for the purpose of making payments for eligible expenses. The advances are subject to liquidation and charged against undisbursed commitment. Any unutilized portion is required to be returned to the fund. These are included in ADVANCES FOR TECHNICAL ASSISTANCE AND OTHER ASSETS. Accounting Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make reasonable estimates and assumptions that affect the reported amounts of assets and liabilities as of the end of the year and the reported amounts of income and expenses during the year. The actual results could differ from those estimates. Accounting and Reporting Developments Accounting Standards Update (ASU) 2010-06, Fair Value Measurements and Disclosures (Topic 820) Improving Disclosures about Fair Value Measurements with respect to the separate disclosures about gross purchases, sales, issuances, and settlements relating to Level 3 measurements is effective for fiscal years beginning after 15 December 2010 and for interim periods within those fiscal years. This update did not have a material impact on JSFs financial statements as of 31 December 2011. In May 2011, the Financial Accounting Standards Board (FASB) issued ASU 2011-04, Fair Value Measurement (Topic 820) Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in US GAAP and IFRSs, which provides the consistency between US GAAP and International Financial Reporting Standards (IFRSs) on the definition of fair value (FV) and on the guidance on how to measure FV and on what to disclose about FV measurements. The amendments to the update do not require additional FV measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. The new guidance will require prospective application and are effective for interim and annual periods beginning on or after 15 December 2011. ADB is currently assessing the impact of this update on JSFs financial statements. Statement of Cash Flows For the purposes of the Statement of Cash Flows, the JSF considers that its cash and cash equivalents are limited to DUE FROM BANKS, which consists of cash on hand and current accounts in banks used for operational disbursements. NOTE CINVESTMENTS The main investment management objective is to maintain security and liquidity. Subject to these parameters, ADB seeks the highest possible return on its investments. Investments are governed by the Investment Authority approved by the Board of Directors in 2006.
157

The annualized rates of return on the average investments held under ACCSF and JSF during the year, based on the portfolio held at the beginning and end of each month were 0.16% and 0.21%, respectively (0.25% and 0.27%, respectively 2010). NOTE DRELATED PARTY TRANSACTIONS The OCR and special funds resources are at all times used, committed, and invested entirely separate from each other. The administrative and operational expenses pertaining to JSF are settled regularly with OCR and other funds. Regional technical assistance projects and programs may be combined activities financed by special and trust funds. The interfund balances between other funds, which are included in ADVANCES FOR TECHNICAL ASSISTANCE AND OTHER ASSETS and ACCOUNTS PAYABLE AND OTHER LIABILITIES are as follows:
2011 Amounts Receivable by: JSF from: ACCSF $ 1,000 $ 1,000 2010
Amounts Payable by: JSF to: OCR TASF RCIF Agency Trust Fundsnet Total ACCSF to: JSF $12,000 11,000 6,000 $29,000 $ 1,000 $134,000 9,000 94,000 15,000 $252,000 $ 1,000
NOTE EUNDISBURSED COMMITMENTS Undisbursed commitments are denominated in United States dollars and represent effective TA projects/programs not yet disbursed and unliquidated. Completed but partially cancelled TA projects amounting to $5,391,000 were written back as a reduction in technical assistance during 2011 ($8,770,000 2010), and the corresponding undisbursed commitments was eliminated. None of this amount corresponds to ACCSF (nil 2010). The fair value of undisbursed commitments approximates the amounts outstanding, because ADB expects that disbursements will substantially be made for all the projects/programs covered by the commitments.
158
cOntinUED
NOTE FCONTRIBUTIONS AND UNCOMMITTED BALANCES No contributions were received during 2011 and 2010. Effective 31 December 2002, all remaining temporarily restricted net assets under JSF were transferred and integrated into the unrestricted regular net assets, as concurred by Japan, in order to optimize the use of JSF. Similarly, Japan lifted the restriction over the use of net accumulated investment income, which under the original terms of agreement between ADB and Japan, may only be used for defraying JSFs administrative expenses. Japan agreed to use the net accumulated investment income as additional resources for funding future JSF operations. Uncommitted balances comprise amounts, which have not been committed by ADB as of 31 December 2011 and 2010. These balances include approved TA projects/programs that are not yet effective. As of 31 December 2011 and 2010 these balances are as follows:
2011 JsF Regular and supplementary $57,423,000 2010 JsF Regular and supplementary $ 52,810,000
accsF Uncommitted balances TA projects/programs approved by Japan and ADB but not yet effective TA projects/programs approved by Japan and not yet effective Uncommitted balances available for new commitments $28,199,000
total $85,622,000
accsF $28,199,000
total $ 81,009,000
(700,000)
(700,000)
(1,320,000)
(1,320,000)
(3,640,000)
(3,640,000)
$28,199,000
$56,103,000
$84,302,000
$28,199,000
$ 48,470,000
$ 76,669,000
The temporarily restricted uncommitted balance remaining available as of 31 December 2011 corresponds to funds under ACCSF of $28,199,000 ($28,199,000 2010) and the amount of net accumulated investment income of $8,511,000 ($8,455,000 2010) for settlement of all administrative expenses. Net assets reverted to temporarily restricted assets under ACCSF relate to savings on financially completed technical assistance net of amount from accumulated investment income, released from restrictions to defray the administrative expenses of ACCSF.
159

NOTE GFAIR VALUE MEASUREMENTS ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability at measurement date (exit price) in an orderly transaction among willing participants with an assumption that the transaction takes place in the entitys principal market, the most advantageous market for the asset or liability. The most advantageous market is the market where the sale of the asset or transfer of liability would maximize the amount received for the asset or minimize the amount paid to transfer the liability. The fair value measurement is not adjusted for transaction cost. ASC 820 also establishes a fair value hierarchy that gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), next priority to observable market inputs or market corroborated data (Level 2), and the lowest priority to unobservable inputs without market corroborated data (Level 3). ASC 820 requires the fair value measurement to maximize the use of market observable inputs. The following guidelines are applied in determining the fair values of financial instruments: Investments Readily marketable investments are fair valued using active market quotes in Level 1 category. Level 2 category includes investments which are fair valued with significant market observable inputs. The fair values of the following financial assets of JSF as of 31 December 2011 and 2010 were reported based on the following:
31 December 2011 assets Investments Government or governmentguaranteed obligations Time deposits total assets at fair value
2,991,000 127,436,000
$2,991,000 $2,991,000
127,436,000
$ $
$130,427,000
$127,436,000
31 December 2010 assets Investments Time deposits $157,946,000
$ 157,946,000
160
cOntinUED
See Notes C and E for discussions relating to investments and undisbursed commitments, respectively. In all other cases, the carrying amounts of JSFs assets, liabilities, and uncommitted balances are considered to approximate fair values for all significant financial instruments. NOTE HSUBSEQUENT EVENTS ADB has evaluated subsequent events after 31 December 2011 through 14 March 2012, the date these Financial Statements are available for issuance. As a result of this evaluation, there are no subsequent events, as defined, that require recognition or disclosure in the JSFs Financial Statements as of 31 December 2011.
161
Deloitte Touche Tohmatsu LLC MS Shibaura Building 4-13-23, Shibaura Minato-ku, Tokyo 108-8530 Japan Te l: +81 (3) 3457 7321 Fax: +81 (3) 3457 1694 www.deloitte.com/jp
INDEPENDENT AUDITORS REPORT
To the Board of Directors of Asian Development Bank: We have audited the accompanying statement of financial position of Asian Development Bank (ADB)Asian Development Bank Institute as of December 31, 2011 and 2010, and the related statements of activities and changes in net assets, and cash flows for each of the years in the two-year period ended December 31, 2011. These financial statements are the responsibility of Asian Development Bank Institutes (the Institute) management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Institutes internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of ADBAsian Development Bank Institute as of December 31, 2011 and 2010, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2011 in conformity with accounting principles generally accepted in the United States of America.
March 14, 2012
Member of Deloitte Touche Tohmatsu Limited
162
Asian Development Bank Institute aDBi-1
asian DEVELOpMEnt BanKasian DEVELOpMEnt BanK institUtE

2011 assEts DUE FROM BANKS SECURITIES PURCHASED UNDER RESALE ARRANGEMENT (Notes C and D) PROPERTY, FURNITURE, AND EQUIPMENT (Note E) Property, Furniture, and Equipment Lessallowance for depreciation DUE FROM CONTRIBUTORS (Note H) LONG-TERM GUARANTEE DEPOSITS (Note F) OTHER ASSETS tOtaL LiaBiLitiEs anD UncOMMittED BaLancEs ACCOUNTS PAYABLE AND OTHER LIABILITIES Accrued pension and postretirement medical benefits (Note L) Asset reinstatement obligations (Note G) Others (Note K) UNCOMMITTED BALANCES (ADBI-2) Unrestricted net assets tOtaL
The accompanying notes are an integral part of these financial statements (ADBI-4).
2010
$ 1,473 5,982
819 4,293
$ 4,344 4,189 155 8,779 2,081 654 $19,124
$ 4,097 3,990 107 8,616 2,384 530 $16,749
$ 6,553 1,406 1,329 $ 9,288
$ 5,368 1,327 1,138 $ 7,833
9,836 $19,124
8,916 $16,749
163
Asian Development Bank Annual Report 2011 aDBi-2

2011 changEs in UnREstRictED nEt assEts CONTRIBUTIONS (Note H) REVENUE From rental (Note I) From investments (Note C) From other sourcesnet Total EXPENSES Administrative expenses (Note J) Program expenses Total CONTRIBUTIONS AND REVENUE IN EXCESS OF EXPENSES EXCHANGE GAINSnet TRANSLATION ADJUSTMENTS PENSION/POSTRETIREMENT LIABILITY ADJUSTMENT ASC 715 AND 958 (Note L) INCREASE IN UNRESTRICTED NET ASSETS NET ASSETS AT BEGINNING OF YEAR nEt assEts at EnD OF yEaR
The accompanying notes are an integral part of these financial statements (ADBI-4).
2010
$ 17,663
$ 16,984
496 5 74 18,238
493 4 24 17,505
11,149 6,278 17,427 811 186 495 (572) 920 8,916 $ 9,836
10,781 4,717 15,498 2,007 321 754 (1,428) 1,654 7,262 $ 8,916
164

2011 CASH FLOWS FROM OPERATING ACTIVITIES Contributions received Interest on investments received Expenses paid Othersnet Net Cash Provided by Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Maturities of investments Purchases of investments Net payments for securities purchased under resale arrangement Acquisition of equipment Net Cash Used in Investing Activities Effect of Exchange Rate Changes on Due from Banks Net Increase in Due from Banks Due from Banks at Beginning of Year Due from Banks at End of Year RECONCILIATION OF INCREASE IN UNRESTRICTED NET ASSETS TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Increase in unrestricted net assets (ADBI-2) Adjustments to reconcile increase in unrestricted net assets to net cash provided by operating activities: Depreciation Change in due from contributors Change in long-term guarantee deposits Change in other assets Change in accrued pension retirement cost Change in asset reinstatement obligations Change in other liabilities Translation adjustments Othersnet Net Cash Provided by Operating Activities
0 = Less than $500. The accompanying notes are an integral part of these financial statements (ADBI-4).
2010 $ 16,323 4 (15,382) 838 1,783
$ 17,337 5 (16,298) 755 1,799
900 (900) (976) (111) (1,087) (58) 654 819 $ 1,473 $
(1,214) (1,214) (203) 366 453 819
920
$ 1,654
66 (326) 303 (123) 1,185 80 189 (495) 0 $ 1,799
86 (660) (281) (173) 1,696 156 59 (754) 0 $ 1,783
165

NOTE ANATURE OF OPERATIONS The Asian Development Bank (ADB), a multilateral development financial institution, was established in 1966 with its headquarters in Manila, Philippines. ADB and its operations are governed by the Agreement Establishing the Asian Development Bank (the Charter). Its purpose is to foster economic development and co-operation in Asia and the Pacific region and to contribute to the acceleration of the process of economic development of the developing member countries (DMCs) in the region, collectively and individually. Since 1999, ADBs corporate vision and mission has been to help DMCs reduce poverty in the region. This was reaffirmed under the long-term strategic framework for 20082020 (Strategy 2020). Under Strategy 2020, ADBs corporate vision continues to be An Asia and Pacific Free of Poverty and its mission has been to help its DMCs reduce poverty and improve living conditions and quality of life. ADB has been pursuing its mission and vision by focusing on three complementary strategic agendas: inclusive growth, environmentally sustainable growth, and regional integration. ADB provides financial and technical assistance for projects and programs, which will contribute to achieving this purpose. These are financed through ordinary capital resources (OCR) and Special Funds.1 In 1996, ADB approved the establishment of the Asian Development Bank Institute (the Institute) in Tokyo, Japan, as a subsidiary body of ADB. The Institute commenced its operations upon the receipt of the first funds from Japan on 24 March 1997, and it was inaugurated on 10 December 1997. The Institutes funds may consist of voluntary contributions, donations, and grants from ADB member countries, nongovernment organizations, and foundations. The objectives of the Institute, as defined under its Statute, are the identification of effective development strategies and capacity improvement for sound development management in DMCs. ADB is immune from taxation pursuant to Chapter VIII, Article 56, Exemption from Taxation, of the Charter. NOTE BSUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Presentation of the Financial Statements The financial statements of the Institute are prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP), and are presented on the basis of those for not-for-profit organizations. The Institute reports donors contributed cash and other assets as unrestricted support as these are made available to the Institute without conditions other than for the purposes of pursuing the objectives of the Institute.
166
cOntinUED
Functional Currency and Reporting Currency The functional currency of the Institute is Japanese yen. The reporting currency is the United States dollar. Translation of Currencies Assets, liabilities, and uncommitted balances are translated from the functional currency to the reporting currency at the applicable rates of exchange at the end of a reporting period. Commitments included in the financial statements during the year are recognized at the applicable exchange rates as of the respective dates of commitment. Revenue and expense amounts are translated for each semi-monthly period generally at the applicable rates of exchange at the beginning of each period; such practice approximates the application of average rates in effect during the period. Translation adjustments are recorded as translation adjustments account and included in changes in unrestricted net assets. Monetary assets and liabilities denominated in currency other than Japanese yen are translated into Japanese yen at year-end exchange rates. Exchange gains and losses are recorded as exchange gainsnet account and included in the changes in unrestricted net assets. Securities Purchased Under Resale Arrangement The Institute accounts for transfer of financial assets in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 860, Transfers and Servicing. In general, transfers are accounted for as sales under ASC 860 when control over the transferred assets has been relinquished. Otherwise, the transfers are accounted for as resale arrangements and collateralized financing arrangements. Securities purchased under resale arrangement are recorded as assets and are not re-pledged. Interest income on investment securities are recognized as realized and reported net of amortizations of premiums and discounts in Revenue from investments. Property, Furniture, and Equipment Property, furniture, and equipment are stated at cost and depreciated over their estimated useful lives using the straight-line method. Maintenance, repairs, and minor betterments are charged to expense. Expenditures amounting to more than $30,000 for a single asset or a combination of assets forming an integral part of a separate asset are capitalized. Contributions Contributions from donors are included in the financial statements from the date committed. Accounting Estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the end of the year and the reported amounts of revenue and expenses during the year. Actual results could differ from those estimates.
167

Accounting and Reporting Developments Accounting Standards Update (ASU) 2010-06, Fair Value Measurements and Disclosures (Topic 820) Improving Disclosures about Fair Value Measurements with respect to the separate disclosures about gross purchases, sales, issuances, and settlements relating to Level 3 measurements is effective for fiscal years beginning after 15 December 2010 and for interim periods within those fiscal years. Note D provides the required disclosures in compliance with this update. In April 2011, the FASB issued ASU 2011-03, Transfers and Servicing (Topic 860) Reconsideration of Effective Control for Repurchase Agreements. The update removes from the assessment of effective control the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms, even in the event of default by the transferee. It does not change the other criteria used in the assessment of effective control. This update is applicable prospectively to new transactions and transactions that are modified on or after the first interim or annual period beginning 15 December 2011. This update did not have an impact on ADBIs 31 December 2011 financial statements. In May 2011, the FASB issued ASU 2011-04, Fair Value Measurement (Topic 820) Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in US GAAP and IFRSs, which provides the consistency between US GAAP and International Financial Reporting Standards (IFRSs) on the definition of fair value (FV) and on the guidance on how to measure FV and on what to disclose about FV measurements. The amendments to the update do not require additional FV measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. The new guidance will require prospective application and are effective for interim and annual periods beginning on or after 15 December 2011. The Institute is currently assessing the impact of this update on ADBIs financial statements. Statement of Cash Flows For the purposes of the Statement of Cash Flows, the Institute considers that its cash and cash equivalents are limited to DUE FROM BANKS, which consists of cash on hand and current accounts in banks used for operational disbursements. Reclassification Certain non-material reclassifications of prior years amounts and information have been made to conform to the current years presentation. NOTE CSECURITIES PURCHASED UNDER RESALE ARRANGEMENT The annualized rate of return on the average investments held during the year including receivable for securities purchased under resale arrangement, based on the portfolio held at the beginning and end of each month was 0.05% (0.06% 2010).
168
cOntinUED
NOTE DFAIR VALUE MEASUREMENTS ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability at measurement date (exit price) in an orderly transaction among willing participants with an assumption that the transaction takes place in the entitys principal market, the most advantageous market for the asset or liability. The most advantageous market is the market where the sale of the asset or transfer of liability would maximize the amount received for the asset or minimize the amount paid to transfer the liability. The fair value measurement is not adjusted for transaction cost. ASC 820 also establishes a fair value hierarchy that gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), next priority to observable market inputs or market corroborated data (Level 2), and the lowest priority to unobservable inputs without market corroborated data (Level 3). ASC 820 requires the fair value measurement to maximize the use of market observable inputs. The following guidelines are applied in determining the fair values of financial instruments: Securities purchased under resale arrangement Readily marketable investments are fair valued using active market quotes in Level 1 category. Level 2 category includes securities purchased under resale arrangement, which are fair valued with significant market observable inputs. The fair value of the following financial assets of the Institute as of 31 December 2011 and 2010 were reported based on the following:
31 December 2011 assets Securities purchased under resale arrangement $ 5,982,000
$ 5,982,000
31 December 2010 assets Securities purchased under resale arrangement $ 4,293,000
$ 4,293,000
169

See Note B for discussions relating to securities purchased under resale arrangement. In all other cases, the carrying amounts of the Institutes assets, liabilities, and uncommitted balances are considered to approximate fair values for all significant financial instruments. NOTE EPROPERTY, FURNITURE, AND EQUIPMENT Property, furniture, and equipment consist of one-time establishment cost (comprising office furniture, fixtures and equipment purchased at inception for use in the operations of the Institute) and equipment. The changes in the property, furniture, and equipment during 2011 and 2010, as well as information pertaining to accumulated depreciation, are as follows:
property, Furniture, and Equipment One-time Establishment cost cost: Balance, 1 January 2011 Additions during the year Disposals during the year Translation adjustments Balance, 31 December 2011 accumulated Depreciation: Balance, 1 January 2011 Depreciation during the year Disposals during the year Translation adjustments Balance, 31 December 2011 net Book Value, 31 December 2011 $ 3,598,000 (110,000) 216,000 3,704,000 $ 74,000 4,000 78,000 49,000 66,000 6,000 121,000 $ 155,000 $ 269,000 17,000 286,000 $ 3,990,000 66,000 (110,000) 243,000 4,189,000 155,000 $ 3,598,000 (110,000) 216,000 3,704,000 $ 74,000 4,000 78,000 $ 156,000 111,000 9,000 276,000 $ 269,000 17,000 286,000 $ 4,097,000 111,000 (110,000) 246,000 4,344,000 Leased property
Furniture
Equipment
grand total
170
cOntinUED
property, Furniture, and Equipment One-time Establishment cost cost: Balance, 1 January 2010 Additions during the year Disposals during the year Translation adjustments Balance, 31 December 2010 accumulated Depreciation: Balance, 1 January 2010 Depreciation during the year Disposals during the year Translation adjustments Balance, 31 December 2010 net Book Value, 31 December 2010 $ 3,176,000 (3,000) 425,000 3,598,000 $ 65,000 9,000 74,000 9,000 36,000 4,000 49,000 $ 107,000 $ 190,000 50,000 29,000 269,000 $ 3,440,000 86,000 (3,000) 467,000 3,990,000 107,000 $ 3,176,000 (3,000) 425,000 3,598,000 $ 65,000 9,000 74,000 $ 137,000 19,000 156,000 $ 238,000 31,000 269,000 $ 3,616,000 (3,000) 484,000 4,097,000 Leased property
Furniture
Equipment
grand total
Total depreciation expense incurred for the year ended 31 December 2011 amounted to $66,000 ($86,000 2010). NOTE FLONG-TERM GUARANTEE DEPOSITS The Institute leases office space and deposits the equivalent of six months of office rent to the lessor, as stipulated in the contract of lease signed in 1997. The amount is updated every contract renewal. The last renewal date was 1 April 2011. NOTE GASSET REINSTATEMENT OBLIGATIONS The Institute has recorded the estimated asset reinstatement obligations related to leased office space.
NOTE HCONTRIBUTIONS In June 2010, the Governments of Japan and Australia committed its 15th and 1st contributions to the Institute, amounting to 702,462,000 ($7,927,000 equivalent) and A$500,000 ($439,000 equivalent), respectively.
171

In December 2010, the Government of Japan committed its 16th contribution to the Institute amounting to 702,462,000 ($8,616,000 equivalent), which was transferred to the Fund on 7 January 2011. At 31 December 2010, the amount committed was reported in the Statement of Financial Position as DUE FROM CONTRIBUTORS. In June 2011, the governments of Japan and Australia committed its 17th and 2nd contributions to the Institute, amounting to 675,081,000 ($8,357,000 equivalent) and A$500,000 ($527,000 equivalent), respectively. In December 2011, the Government of Japan committed its 18th contribution to the Institute amounting to 675,081,000 ($8,779,000 equivalent), which was transferred to the Fund on 12 January 2012. At 31 December 2011, the amount committed was reported in the Statement of Financial Position as DUE FROM CONTRIBUTORS. NOTE IREVENUE FROM RENTAL Revenue from rental in 2011 consists of sublease rental income of $496,000 ($493,000 2010), received according to a space sharing agreement with the Japanese Representative Office of ADB. The transactions with ADB were made in the ordinary course of business and were negotiated at arms length. NOTE JLEASES ADBI leases office space and other assets. Rental expenses under operating leases for the years ended 31 December 2011 and 2010 were $4,179,000 and $4,324,000, respectively. As of 31 December 2011, the Institute has the following operating lease commitments, which includes non-cancellable period through 31 March 2012 and cancellable period from 1 April 2012 through 31 March 2014:
year ending 31 December 2012 2013 2014 Minimum future rentals $ 4,163,000 4,163,000 1,041,000
NOTE KDUE TO OCR Accounts payable and other liabilities include amounts due to OCR of $174,000 and $267,000 at 31 December 2011 and 2010, respectively. The payable results from transactions in the normal course of business.
172
cOntinUED
NOTE LSTAFF RETIREMENT PLAN AND POSTRETIREMENT MEDICAL BENEFITS Staff Retirement Plan Eligible employees of the Institute are participants of the ADB Staff Retirement Plan (the Plan), a defined benefit plan. An eligible employee, as defined under the Plan, shall, as a condition of service, become a participant from the first day of service, provided that at such a date, the employee has not reached the normal retirement age of 60. Retirement benefits are based on length of service and highest average remuneration during two years of eligible service. The Plan assets are segregated and are not included in the accompanying Statement of Financial Position. The costs of administering the Plan are absorbed by ADB, except for fees paid to the investment managers and related charges, including custodian fees, which are borne by the Plan. Participants hired on or before 30 September 2006 are required to contribute 9 1/3% of their salary to the Plan while those hired after that date are not required to contribute to the Plan. Participants may also make additional voluntary contributions. The Institutes contribution is determined at a rate sufficient to cover that part of the costs of the Plan not covered by the participants contributions. Expected Contributions The expected amount of contributions to the Plan for 2012, based on the Institutes contribution rate for the coming year of 21%, and the participants mandatory contribution are $333,000 and $37,000, respectively (2011 $289,000 and $37,000). Investment Strategy Contributions in excess of current benefits payments are invested in international financial markets and in a variety of investment vehicles. The Plan employs eight external asset managers and one global custodian who function within the guidelines established by the Plans Investment Committee. The investment of these assets, over the long term, is expected to produce higher returns than short-term investments. The investment policy incorporates the Plans package of desired investment return, and tolerance for risk, taking into account the nature and duration of the Plans liabilities. The Plans assets are diversified among different markets and different asset classes. The use of derivatives for speculation, leverage, or taking risks is prohibited. Selected derivatives are used for hedging and transactional efficiency purposes. The Plans investment policy is periodically reviewed and revised to reflect the best interest of the Plans participants and beneficiaries. The current policy, adopted in January 2011, specifies an asset-mix structure of 70% of assets in equities and 30% in fixed income securities. At present, investments of the Plans assets are divided into three categories: US equity, Non-US equity, and Global fixed income. All investments, excluding time deposits, are valued using market prices. Time deposits are reported at cost which is deemed a reasonable estimate of fair value. Fixed income securities include US government and non-US government or government-guaranteed obligations, corporate bonds, and time deposits. Other assets include forward exchange contracts in various foreign currencies transacted to hedge currency exposure in the investment portfolio, which are reported at fair value. The Plans long-term asset-mix is 40% US equity, 30% non-US equity, and 30% global fixed income.
173

For the year ended 31 December 2011, the net return on the Plan assets was negative 0.9% (11.4% 2010). ADB expects the long-term rate of return on the assets to be 7.5% (8.0% 2010). Assumptions The assumed overall rate of return takes into account long-term return expectations of the underlying asset classes within the investment portfolio mix, and the expected duration of the Plans liabilities. Return expectations are forward looking and, in general, not much weight is given to short-term experience. Unless there is a drastic change in investment policy or market environment, the assumed investment return of 7.5% on the Plans assets is expected to remain broadly the same, year to year. Postretirement Medical Benefits Plan The Institute participates in the cost-sharing plan of ADB for retirees medical insurance premiums. Under the plan, the Institute is obligated to pay 75% of the Group Medical Insurance Plan premiums for retirees and their eligible dependents who elected to participate. The cost-sharing plan is currently unfunded. Generally accepted accounting principles require an actuarially determined assessment of the periodic cost of postretirement medical benefits. The following table sets forth the pension and postretirement medical benefits at 31 December 2011 and 2010:
pension Benefits 2011 Change in benefit obligation: Projected benefit obligation at beginning of year Service cost Interest cost Plan participants contributions Actuarial (gain) loss Benefits paid Projected benefit obligation at end of year Change in plan assets: Fair value of plan assets at beginning of year Actual return on plan assets Employers contribution Plan participants contributions Benefits paid Fair value of plan assets at end of year Funded Status Amounts recognized in the Balance sheet consist of: Current liabilities Noncurrent liabilities Net amount recognized $ (6,096,000) $(6,096,000) $ (4,954,000) $(4,954,000) $ (5,000) $ (413,000) $(413,000) (453,000) $(458,000) $ 3,480,000 (30,000) 306,000 109,000 (325,000) $ 3,540,000 $(6,096,000) $ 2,949,000 358,000 293,000 108,000 (228,000) $ 3,480,000 $(4,954,000) $ $ 26,000 (26,000) $ $ 29,000 (29,000) $ 8,434,000 256,000 470,000 109,000 692,000 (325,000) $ 9,636,000 $ 6,473,000 200,000 388,000 108,000 1,493,000 (228,000) $ 8,434,000 $ 413,000 119,000 29,000 (77,000) (26,000) $ 458,000 $ 148,000 33,000 11,000 250,000 (29,000) $ 413,000 2010 postretirement Medical Benefits 2011 2010
$(458,000)
$(413,000)
174
cOntinUED
pension Benefits 2011 Amounts recognized in the Unrestricted net assets consist of: Net actuarial loss (gain) Prior service cost (credit) Net amount recognized $ 3,722,000 $ 3,722,000 $ 3,072,000 $ 3,072,000 2010
postretirement Medical Benefits 2011 2010
$(100,000) $(100,000)
$ (23,000) $ (23,000)
Weighted-average assumptions as of 31 December Discount rate Expected return on plan assets Rate of compensation increase varies with age and averages 5.05% 7.50% 3.25% 5.50% 8.00% 4.50% 5.05% N/A 3.25% 5.50% N/A 4.50%
For measurement purposes, a 7.0% annual rate of increase in the per capita cost of covered health care benefits was assumed for the valuation as of 31 December 2011. The rate was assumed to decrease gradually to 5.0% for 2016 and remain at that level thereafter.
pension Benefits 2011 Components of net periodic benefit cost: Service cost Interest cost Expected return on plan assets Amortization of prior service cost Recognized actuarial loss Net periodic benefit cost 0 = Less than $500. $ 256,000 470,000 (264,000) 0 336,000 $ 798,000 $ 200,000 388,000 (212,000) 5,000 192,000 $ 573,000 $ 119,000 29,000 $ 148,000 $ 33,000 11,000 (27,000) $ 17,000 2010 postretirement Medical Benefits 2011 2010
The accumulated benefit obligation of the pension plan as of 31 December 2011 was $9,451,000 ($8,163,000 2010). A one-percentage-point change in assumed health care cost trend rates would have the following effects:
1-percentage-point increase Effect on total service and interest cost components Effect on postretirement benefit obligation $35,000 99,000 1-percentagepoint Decrease $(26,000) (80,000)
175

Estimated Future Benefits Payments The following table shows the benefits payments expected to be paid in each of the next five years and subsequent five years. The expected benefits payments are based on the same assumptions used to measure the benefit obligation at 31 December 2011:
pension Benefits 2012 2013 2014 2015 2016 20172021 $ 463,000 349,000 384,000 405,000 463,000 2,885,000 postretirement Medical Benefits $ 5,000 6,000 7,000 7,000 8,000 151,000
Fair Value Hierarchy ASC 820 establishes a fair value hierarchy that gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), next priority to observable market inputs or market corroborated data (Level 2), and the lowest priority to unobservable inputs without market corroborated data (Level 3). ASC 820 requires the fair value measurement to maximize the use of market observable inputs. The fair value of the plan assets measured at fair value on a recurring basis of the pension plan as of 31 December 2011 and 2010 were reported based on the following:
Fair Value Measurements Quoted prices in active Markets for identical assets (Level 1) $ 2,320,000 465,000 330,000 109,000 70,000 0 $ 3,294,000 significant Market Observable inputs (Level 2) $ 12,000 59,000 36,000 20,000 11,000 $ 138,000 significant Unobservable inputs (Level 3) $ 0 13,000 16,000 18,000 0 $ 47,000
31 December 2011 assets Corporate equity securities Government or government-guaranteed securities Corporate debt securities Asset/Mortgage-backed securities Temporary investments and time deposits Interest rate swaps Futuresnet Foreign exchange contractsnet total assets at fair value
0 = Less than $500.
$ 2,320,000 490,000 405,000 163,000 90,000 0 0 11,000 $ 3,479,000
176
cOntinUED
Fair Value Measurements Quoted prices in active Markets for identical assets (Level 1) $ 2,375,000 313,000 2,000 $ 2,690,000 significant Market Observable inputs (Level 2) $ 53,000 280,000 488,000 107,000 $ 928,000 $ significant Unobservable inputs (Level 3) $
31 December 2010 assets Corporate equity securities Government or government-guaranteed securities Corporate debt securities Asset/Mortgage-backed securities Temporary investments and time deposits total assets at fair value Liabilities Foreign exchange contractsnet
0 = Less than $500.
$ 2,375,000 366,000 282,000 488,000 107,000 $ 3,618,000
The table below provides the details of all inter-level transfers for the year ended 31 December 2011:
Level 1 Investments Government or government-guaranteed obligations Transfers into (out of) Corporate obligations Transfers into (out of) Asset/Mortgage-backed securities Transfers into (out of) $ 31,000 99,000 32,000 $162,000 $ (31,000) (99,000) (32,000) $(162,000) Level 2
Government or government-guaranteed obligations, corporate debt securities, and asset/ mortgage-backed securities totaling $162,000 were transferred from Level 2 to 1.
177

Assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
government or governmentguaranteed obligations $
corporate equity securities Balance, 31 December 2010 Total realized/unrealized (losses)/gains in: Net increase in net assets available for benefits Purchases Sales/Maturities Settlement and others Transfers into (out of) Level 3, net Balance, 31 December 2011 Total unrealized (losses)/gains included in income related to financial assets and liabilities still held at the reporting date
0 = Less than $500.
corporate debt securities $
asset/ Mortgagebacked securities $
interest rate swap $
0 0 $ 0
1,000 2,000 10,000 $13,000
(1,000) 17,000 $16,000
0 10,000 8,000 $18,000 $
0 0
$ 1,000
$ (1,000)
During 2011, ADB enhanced the approach for determining the fair value hierarchy of liquidity portfolio investments by introducing additional pricing sources and strengthening the internal analytics. The enhanced methodology provided more robust support for market observable inputs in pricing. Transfers out of Level 3 in 2011 are primarily the result of refining ADBs valuation approach. NOTE MSUBSEQUENT EVENTS The Institute has evaluated subsequent events after 31 December 2011 through 14 March 2012, the date these Financial Statements are available for issuance. In January 2012, the Government of the Republic of Korea, acting through the Republic of Korea e-Asia and Knowledge Partnership Fund, committed its 1st contribution to the Institute amounting to $1.5 million. This was received on 7 February 2012.
178
Asian Tsunami Fund
asian tsunaMi Fund

179
180
Asian Tsunami Fund
Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected and corrected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. In our opinion, managements assertion that ADB maintained effective internal control over financial reporting as of December 31, 2011, is fairly stated, in all material respects, based on the criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. We have also audited, in accordance with auditing standards generally accepted in the United States of America, the accompanying statement of financial position of ADB Asian Tsunami Fund as of December 31, 2011 and 2010 and the related statements of activities and changes in net assets, and cash flows, for each of the years in the two-year period ended December 31, 2011 and our report dated March 14, 2012 expressed an unqualified opinion on those financial statements.
181
INDEPENDENT AUDITORS REPORT To the Board of Directors and the Board of Governors of Asian Development Bank We have audited the accompanying statement of financial position of Asian Development Bank (ADB) Asian Tsunami Fund as of December 31, 2011 and 2010 and the related statements of activities and changes in net assets, and cash flows, for each of the years in the two-year period ended December 31, 2011. These financial statements are the responsibility of ADBs management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of ADB Asian Tsunami Fund as of December 31, 2011 and 2010, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2011 in conformity with accounting principles generally accepted in the United States of America. As discussed in Note A, ADB Asian Tsunami Fund was terminated on December 31, 2010 and all its projects were financially completed as of December 31, 2011. We have also audited, in accordance with attestation standards established by the American Institute of Certified Public Accountants, managements assertion that ADB maintained effective internal control over financial reporting as of December 31, 2011, based on the criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 14, 2012 expressed an unqualified opinion on managements assertion that ADB maintained effective internal control over financial reporting.
182
Asian Tsunami Fund atF-1
asian DEVELOpMEnt BanKasian tsUnaMi FUnD

2011 assEts DUE FROM BANKS INVESTMENTS (Notes C and G) Time deposits ADVANCES FOR GRANTS tOtaL LiaBiLitiEs anD UncOMMittED BaLancEs ACCOUNTS PAYABLE AND OTHER LIABILITIES (Note D) UNDISBURSED COMMITMENTS (Notes E and G) TOTAL LIABILITIES UNCOMMITTED BALANCES (ATF-2) (Note F), represented by: Unrestricted net assets tOtaL
The accompanying notes are an integral part of these financial statements (ATF-4).
2010
$ 275 6,600 $6,875
295 19,042 5,546
$24,883
14 14 6,861
232 22,021 22,253 2,630
$6,875
$24,883
183
Asian Development Bank Annual Report 2011 atF-2

2011 changEs in UnREstRictED nEt assEts REVENUE From investments (Note C) From other sources Total EXPENSES Grants (Note E) Administrative expenses (Note D) Financial expenses Total REVENUE LESS THAN EXPENSES EXCHANGE LOSSESnet INCREASE (DECREASE) IN NET ASSETS NET ASSETS AT BEGINNING OF YEAR nEt assEts at EnD OF yEaR
0 = Less than $500. The accompanying notes are an integral part of these financial statements (ATF-4).
2010
3 2 5
144 4 148
(4,644) 362 0 (4,282) 4,287 (56) 4,231 2,630 $6,861
1,909 1 1,910 (1,762) (139) (1,901) 4,531 $2,630
184

2011 CASH FLOWS FROM OPERATING ACTIVITIES Interest on investments received Grants disbursed Administrative and financial expenses paid Net cash received from other sources Net Cash Used in Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Maturities of investments Purchases of investments Net Cash Provided by Investing Activities Net Decrease in Due from Banks Due from Banks at Beginning of Year Due from Banks at End of Year RECONCILIATION OF INCREASE (DECREASE) IN NET ASSETS TO NET CASH USED IN OPERATING ACTIVITIES: Increase (Decrease) in net assets (ATF-2) Adjustments to reconcile increase (decrease) in net assets to net cash used in operating activities: Change in accrued revenue Change in advances for grants Change in accounts payable and other liabilities Change in undisbursed commitments Exchange gainsnet Net Cash Used in Operating Activities
0 = Less than $500. The accompanying notes are an integral part of these financial statements (ATF-4).
2010 $ 146 (76,948) (2,211) 4 (79,009) 9,635,673 (9,556,818) 78,855 (154) 449 $ 295
3 (11,886) (581) 2 (12,462)
164,817 (152,375) 12,442 (20) 295 $ 275
4,231
(1,901)
0 5,546 (218) (22,021) $ (12,462) $
2 18,019 (365) (94,763) (1) (79,009)
185

NOTE ANATURE OF OPERATIONS The Asian Development Bank (ADB), a multilateral development financial institution, was established in 1966 with its headquarters in Manila, Philippines. ADB and its operations are governed by the Agreement Establishing the Asian Development Bank (the Charter). Its purpose is to foster economic development and co-operation in Asia and the Pacific region and to contribute to the acceleration of the process of economic development of the developing member countries (DMCs) in the region, collectively and individually. Since 1999, ADBs corporate vision and mission has been to help DMCs reduce poverty in the region. This was reaffirmed under the long-term strategic framework for 20082020 (Strategy 2020). Under Strategy 2020, ADBs corporate vision continues to be An Asia and Pacific Free of Poverty and its mission has been to help its DMCs reduce poverty and improve living conditions and quality of life. ADB has been pursuing its mission and vision by focusing on three complementary strategic agendas: inclusive growth, environmentally sustainable growth, and regional integration. ADB provides financial and technical assistance for projects and programs, which will contribute to achieving this purpose. These are financed through ordinary capital resources (OCR) and Special Funds.1 The ATF was established on 11 February 2005 in response to the special circumstances surrounding the DMCs that were stricken by the effects of the tsunami on 26 December 2004. The purpose of ATF is to provide emergency grant financing promptly and effectively to affected DMCs in the form of technical assistance (TA) and investment projects to support reconstruction, rehabilitation, and associated development activities following the tsunami disaster. ATF will serve as a dedicated source of grant financing to support priority rehabilitation and reconstruction needs on a multi-sector basis. Resources from the Fund will be available to central governments and other suitable entities including non-governmental organizations. ATFs resources may consist of allocations from the net income of OCR and contributions from bilateral, multilateral, and individual sources. Unless otherwise agreed by the contributors and ADB, ATF will terminate on the earlier of (i) the date five years from the Board approval of the ATF, or (ii) such date as the ATF funds have been fully disbursed by ADB. The ATF was terminated on 31 December 2010 and all projects were financially completed as of 31 December 2011. ADB is immune from taxation pursuant to Chapter VIII, Article 56, Exemption from Taxation, of the Charter.
186
cOntinUED
NOTE BSUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Presentation of the Financial Statements The financial statements of the ATF are prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP), and are presented on the basis of those for not-for-profit organizations. ATF reports donors contributions of cash and other assets as unrestricted assets as these are made available to ATF without conditions other than for the purpose of pursuing its objectives. Functional and Reporting Currency The United States dollar is the functional and reporting currency, representing the currency of the primary economic operating environment of ATF. Translation of Currencies ADB adopts the use of daily exchange rates for accounting and financial reporting purposes. This allows transactions denominated in non-US dollar to be translated to the reporting currency using exchange rates applicable at the time of transactions. Contributions included in the financial statements during the year are recognized at applicable exchange rates as of the respective dates of commitment. At the end of each accounting month, translations of assets, liabilities, and uncommitted balances which are denominated in non-US dollar are adjusted using the applicable rates of exchange at the end of the reporting period. These translation adjustments are accounted for as exchange gains or losses and are credited or charged to operations. Investments All investment securities held by ATF are reported at fair value. Realized and unrealized gains and losses are included in revenue. Time deposits are reported at cost which is a reasonable estimate of fair value. Interest income on time deposits are recognized as realized and reported in revenue from investments. Grants and Undisbursed Commitments Grants are recognized in the financial statements when the project is approved and becomes effective. Upon completion or cancellation of a grant, any undisbursed amount is written back as a reduction in grants for the year and the corresponding undisbursed commitment is eliminated accordingly. Advances are provided from grants to the executing agency or co-operating institution, for the purpose of making payments for eligible expenses. The advances are subject to liquidation and charged against undisbursed commitment. Any unutilized portion is required to be returned to the fund. These are included in ADVANCES FOR GRANTS.
187

Accounting Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make reasonable estimates and assumptions that affect the reported amounts of assets and liabilities and uncommitted balances as of the end of the year and the reported amounts of revenue and expenses during the year. The actual results could differ from those estimates. Accounting and Reporting Developments Accounting Standards Update (ASU) 2010-06, Fair Value Measurements and Disclosures (Topic 820) Improving Disclosures about Fair Value Measurements with respect to the separate disclosures about gross purchases, sales, issuances, and settlements relating to Level 3 measurements is effective for fiscal years beginning after 15 December 2010 and for interim periods within those fiscal years. This update did not have a material impact on ATFs financial statements. In May 2011, the Financial Accounting Standards Board issued ASU 2011-04, Fair Value Measurement (Topic 820) Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in US GAAP and IFRSs, which provides the consistency between US GAAP and International Financial Reporting Standards (IFRSs) on the definition of fair value (FV) and on the guidance on how to measure FV and on what to disclose about FV measurements. The amendments to the update do not require additional FV measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. The new guidance will require prospective application and are effective for interim and annual periods beginning on or after 15 December 2011. ADB is currently assessing the impact of this update on ATFs financial statements. Statement of Cash Flows For the purposes of the Statement of Cash Flows, ATF considers that its cash and cash equivalents are limited to DUE FROM BANKS, which consists of cash on hand and current accounts in banks used for operational disbursements. NOTE CINVESTMENTS The main investment management objective is to maintain security and liquidity. Subject to these parameters, ADB seeks the highest possible return on its investments. Investments are governed by the Investment Authority approved by the Board of Directors in 2006. All investments held as of 31 December 2011 and 2010 were in time deposits. The annualized rate of return on the average investments held during the year, based on the portfolio held at the beginning and end of each month, was 0.18% (0.24% 2010). NOTE DRELATED PARTY TRANSACTIONS The OCR and special funds resources are at all times used, committed, and invested entirely separate from each other. The administrative and operational expenses pertaining to ATF are settled regularly
188
cOntinUED
with OCR and the other funds. Grants programs may be combined activities financed by special and trust funds. ADB charges a service fee to cover ADBs cost for the administration, management, supervision, and operation of the ATF. The service fee is currently 2% of the amount disbursed for grants and investment projects. As of 31 December 2011, $7,000 ($225,000 2010) was payable to OCR, which is included in ACCOUNTS PAYABLE AND OTHER LIABILITIES. NOTE EUNDISBURSED COMMITMENTS Undisbursed commitments are denominated in United States dollars and represent effective grants not yet disbursed and unliquidated. During 2011, $4,644,000 (nil 2010) representing completed and cancelled grant projects was written back as a reduction in grants of the period and the corresponding undisbursed commitment was eliminated. The fair value of undisbursed commitments approximates the amounts outstanding, because ADB expects that disbursements will substantially be made for all the projects/programs covered by the commitments. NOTE FCONTRIBUTIONS AND UNCOMMITTED BALANCES In April and May 2005, ADB contributed $600,000,000 from OCR surplus to ATF. Contributions were also received from Australia and Luxembourg amounting to $3,796,000 and $1,000,000, respectively. In November 2005, following the establishment of Pakistan Earthquake Fund (PEF) in response to the special circumstances surrounding the 8 October 2005 earthquake in Pakistan, unutilized ATF fund of $40,000,000 was transferred back to OCR, which was subsequently transferred to PEF. Another $10,000,000 was returned to OCR in June 2006 and was committed as ADBs contribution to the Java Reconstruction Fund in November 2008, to support post-disaster management, rehabilitation, immediate construction, and urgent vital development activities in Yogyakarta and Central Java in Indonesia. In May 2009, $40,000,000 was transferred to Asia Pacific Disaster Response Fund (APDRF). APDRF was established to provide incremental grant resources to DMCs affected by natural disasters. No contributions were received in 2011 and 2010. As of 31 December 2011, no further commitments were made. NOTE GFAIR VALUE MEASUREMENTS ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability at measurement date (exit price) in an orderly transaction among willing participants with an assumption that the transaction takes place in the entitys principal market, the most advantageous market for the asset or liability. The most advantageous market is where the sale of the asset or transfer of liability would maximize the amount received for the asset or minimize the amount paid to transfer the liability. The fair value measurement is not adjusted for transaction cost. ASC 820 also establishes a fair value hierarchy that gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), next priority to observable market inputs or market corroborated data (Level 2), and the lowest priority to unobservable inputs without market
189

corroborated data (Level 3). ASC 820 requires the fair value measurement to maximize the use of market observable inputs. The following guidelines are applied in determining the fair values of financial instruments: Investments Readily marketable investments are fair valued using active market quotes in Level 1 category. Level 2 category includes investments which are fair valued with significant market observable inputs. The fair value of the following financial assets of ATF as of 31 December 2011 and 2010 were reported based on the following:
31 December 2011 assets Investments Time deposits $ 6,600,000
$ 6,600,000
$19,042,000
See Notes C and E for discussions relating to investments and undisbursed commitments, respectively. In all other cases, the carrying amounts of the ATFs assets, liabilities, and uncommitted balances are considered to approximate fair values for all significant financial instruments. NOTE HSUBSEQUENT EVENTS ADB has evaluated subsequent events after 31 December 2011 through 14 March 2012, the date these Financial Statements are available for issuance. As a result of this evaluation, there are no subsequent events, as defined, that require recognition or disclosure in the ATFs Financial Statements as of 31 December 2011.
190
paKistan eartHQuaKe Fund

191
192
Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected and corrected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. In our opinion, managements assertion that ADB maintained effective internal control over financial reporting as of December 31, 2011, is fairly stated, in all material respects, based on the criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. We have also audited, in accordance with auditing standards generally accepted in the United States of America, the accompanying statement of financial position of Asian Development Bank (ADB) Pakistan Earthquake Fund as of December 31, 2011 and 2010 and the related statements of activities and changes in net assets, and cash flows, for each of the years in the two-year period ended December 31, 2011 and our report dated March 14, 2012 expressed an unqualified opinion on those financial statements.
193
INDEPENDENT AUDITORS REPORT To the Board of Directors and the Board of Governors of Asian Development Bank We have audited the accompanying statement of financial position of Asian Development Bank (ADB) Pakistan Earthquake Fund as of December 31, 2011 and 2010 and the related statements of activities and changes in net assets, and cash flows, for each of the years in the two-year period ended December 31, 2011. These financial statements are the responsibility of ADBs management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of ADB Pakistan Earthquake Fund as of December 31, 2011 and 2010, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2011 in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with attestation standards established by the American Institute of Certified Public Accountants, managements assertion that ADB maintained effective internal control over financial reporting as of December 31, 2011, based on the criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 14, 2012 expressed an unqualified opinion on managements assertion that ADB maintained effective internal control over financial reporting.
194
Pakistan Earthquake Fund pEF-1
asian DEVELOpMEnt BanKpaKistan EaRthQUaKE FUnD

2011 assEts DUE FROM BANKS INVESTMENTS (Notes C and G) Time deposits ACCRUED REVENUE ADVANCES FOR GRANTS tOtaL LiaBiLitiEs anD UncOMMittED BaLancEs ACCOUNTS PAYABLE AND OTHER LIABILITIES (Note D) UNDISBURSED COMMITMENTS (Notes E and G) TOTAL LIABILITIES UNCOMMITTED BALANCES (PEF-2) (Note F), represented by: Unrestricted net assets tOtaL
The accompanying notes are an integral part of these financial statements (PEF-4).
2010
575 20,791 4 2,964
470 30,322 57 7,130
$24,334
$37,979
57 19,724 19,781 4,553
61 33,980 34,041 3,938
$24,334
$37,979
195
Asian Development Bank Annual Report 2011 pEF-2

2011 changEs in UnREstRictED nEt assEts REVENUE From investments (Note C) From other sources Total EXPENSES Technical assistance (Note E) Administrative expenses (Note D) Total REVENUE IN EXCESS OF EXPENSES EXCHANGE LOSSESnet INCREASE IN NET ASSETS NET ASSETS AT BEGINNING OF YEAR nEt assEts at EnD OF yEaR
The accompanying notes are an integral part of these financial statements (PEF-4).
2010
$1,029 142 1,171
$1,254 132 1,386
(220) 295 75 1,096 (481) 615 3,938 $4,553
323 323 1,063 (439) 624 3,314 $3,938
196

2011 CASH FLOWS FROM OPERATING ACTIVITIES Interest on investments received Net cash received from other sources Grants and technical assistance disbursed Administrative and financial expenses paid Net Cash Used in Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Maturities of investments Purchases of investments Net Cash Provided by Investing Activities Effect of Exchange Rate Changes on Due from Banks Net Increase (Decrease) in Due from Banks Due from Banks at Beginning of Year Due from Banks at End of Year RECONCILIATION OF INCREASE IN NET ASSETS TO NET CASH USED IN OPERATING ACTIVITIES: Increase in net assets (PEF-2) Adjustments to reconcile increase in net assets to net cash used in operating activities: Change in accrued revenue Change in advances for grants Change in miscellaneous liabilities Change in undisbursed commitments Exchange lossesnet Net Cash Used in Operating Activities
0 = Less than $500. The accompanying notes are an integral part of these financial statements (PEF-4).
2010 $ 1,254 132 (19,589) (314) (18,517)
1,081 142 (9,870) (299) (8,946)
678,596 (669,435) 9,161 (110) 105 470 $ 575
981,089 (962,608) 18,481 (45) (81) 551 $ 470
615 51 4,166 (3) (14,256) 481
624 (0) (4,123) 9 (15,466) 439
(8,946)
$ (18,517)
197

NOTE ANATURE OF OPERATIONS The Asian Development Bank (ADB), a multilateral development financial institution, was established in 1966 with its headquarters in Manila, Philippines. ADB and its operations are governed by the Agreement Establishing the Asian Development Bank (the Charter). Its purpose is to foster economic development and co-operation in Asia and the Pacific region and to contribute to the acceleration of the process of economic development of the developing member countries (DMCs) in the region, collectively and individually. Since 1999, ADBs corporate vision and mission has been to help DMCs reduce poverty in the region. This was reaffirmed under the long-term strategic framework for 20082020 (Strategy 2020). Under Strategy 2020, ADBs corporate vision continues to be An Asia and Pacific Free of Poverty and its mission has been to help its DMCs reduce poverty and improve living conditions and quality of life. ADB has been pursuing its mission and vision by focusing on three complementary strategic agendas: inclusive growth, environmentally sustainable growth, and regional integration. ADB provides financial and technical assistance for projects and programs, which will contribute to achieving this purpose. These are financed through ordinary capital resources (OCR) and Special Funds.1 The PEF was established on 14 November 2005 in response to the special circumstances confronted by Pakistan resulting from the effects of an earthquake on 8 October 2005. The objective of the PEF is to deliver emergency grant financing promptly and effectively to Pakistan in the form of technical assistance and investment projects to support reconstruction, rehabilitation, and associated development activities. PEF resources will be available to the Government of Pakistan and other suitable entities acceptable to the Government of Pakistan and ADB, including, where appropriate, nongovernment organizations. PEFs resources may consist of allocations from the net income of OCR and contributions from bilateral, multilateral, and individual sources. Unless otherwise agreed by the contributors and ADB, PEF will terminate on the earlier of (i) the date three to four years from the Board approval of the PEF, or (ii) such date as the PEF funds have been fully disbursed by ADB. The PEF was terminated on 30 June 2011, but actions necessary to wind up its activities will continue after its termination. ADB is immune from taxation pursuant to Chapter VIII, Article 56, Exemption from Taxation, of the Charter. NOTE BSUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Presentation of the Financial Statements The financial statements of the PEF are prepared in accordance with accounting principles generally accepted in the United States of America, and are presented on the basis of those for not-for-profit organizations.
198
cOntinUED
PEF reports donors contributions of cash and other assets as unrestricted assets as these are made available to PEF without conditions other than for the purpose of pursuing its objectives. Functional and Reporting Currency The United States dollar is the functional and reporting currency, representing the currency of the primary economic operating environment of PEF. Translation of Currencies ADB adopts the use of daily exchange rates for accounting and financial reporting purposes. This allows transactions denominated in non-US dollar to be translated to the reporting currency using exchange rates applicable at the time of transactions. Contributions included in the financial statements during the year are recognized at applicable exchange rates as of the respective dates of commitment. At the end of each accounting month, translations of assets, liabilities, and uncommitted balances which are denominated in non-US dollar are adjusted using the applicable rates of exchange at the end of the reporting period. These translation adjustments are accounted for as exchange gains or losses and are credited or charged to operations. Investments All investment securities held by PEF are reported at fair value. Realized and unrealized gains and losses are included in revenue. Time deposits are reported at cost which is a reasonable estimate of fair value. Interest income on investment securities and time deposits are recognized as realized and reported, net of amortizations of premiums and discounts. Contributions The contributions from donors and the allocations from OCR net income are included in the financial statements, from the date of effectivity of the contribution agreement, and the Board of Governors approval, respectively. Technical Assistance, Grants, and Undisbursed Commitments Technical assistance (TA) and grants are recognized in the financial statements when the project is approved and becomes effective. Upon completion of a TA project or cancellation of a grant, any undisbursed amount is written back as a reduction in technical assistance or grants for the year and the corresponding undisbursed commitment is eliminated accordingly. Advances are provided from TA and grants to the executing agency or co-operating institution, for the purpose of making payments for eligible expenses. The advances are subject to liquidation and charged against undisbursed commitment. Any unutilized portion is required to be returned to the fund.
199

Accounting Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make reasonable estimates and assumptions that affect the reported amounts of assets and liabilities and uncommitted balances as of the end of the year and the reported amounts of revenue and expenses during the year. The actual results could differ from those estimates. Accounting and Reporting Developments Accounting Standards Update (ASU) 2010-06, Fair Value Measurements and Disclosures (Topic 820) Improving Disclosures about Fair Value Measurements with respect to the separate disclosures about gross purchases, sales, issuances, and settlements relating to Level 3 measurements is effective for fiscal years beginning after 15 December 2010 and for interim periods within those fiscal years. This update did not have a material impact on PEFs financial statements as of 31 December 2011. In May 2011, the Financial Accounting Standards Board issued ASU 2011-04, Fair Value Measurement (Topic 820) Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in US GAAP and IFRSs, which provides the consistency between US GAAP and International Financial Reporting Standards (IFRSs) on the definition of fair value (FV) and on the guidance on how to measure FV and on what to disclose about FV measurements. The amendments to the update do not require additional FV measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. The new guidance will require prospective application and are effective for interim and annual periods beginning on or after 15 December 2011. ADB is currently assessing the impact of this update on PEFs financial statements. Statement of Cash Flows For the purposes of the Statement of Cash Flows, PEF considers that its cash and cash equivalents are limited to DUE FROM BANKS, which consists of cash on hand and current accounts in banks used for operational disbursements. NOTE CINVESTMENTS The main investment management objective is to maintain security and liquidity. Subject to these parameters, ADB seeks the highest possible return on its investments. Investments are governed by the Investment Authority approved by the Board of Directors in 2006. All investments held as of 31 December 2011 and 2010 were in time deposits.
200
cOntinUED
The currency compositions of the investment portfolio as of 31 December 2011 and 2010 expressed in United States dollars are as follows:
currency Pakistan rupee United States dollar total 2011 $ 7,225,000 13,566,000 $20,791,000 2010 $ 14,573,000 15,749,000 $30,322,000
The annualized rate of return on the average investments held during the year, based on the portfolio held at the beginning and end of each month, was 5.08% (4.03% 2010). NOTE DRELATED PARTY TRANSACTIONS The OCR and special funds resources are at all times used, committed, and invested entirely separate from each other. The administrative and operational expenses pertaining to PEF are settled regularly with OCR and the other funds. Regional technical assistance projects and programs may be combined activities financed by special and trust funds. ADB charges a service fee to cover ADBs cost for the administration, management, supervision, and operation of the PEF. The service fee is currently 2% of the amount disbursed for technical assistance and investment projects. As of 31 December 2011, $50,000 was payable to OCR ($54,000 2010) which is included in ACCOUNTS PAYABLE AND OTHER LIABILITIES. NOTE EUNDISBURSED COMMITMENTS Undisbursed commitments are denominated in United States dollars and represent effective grants not yet disbursed and unliquidated. During 2011, $220,000 (nil 2010) representing completed and cancelled TA project was written back as a reduction in technical assistance of the period and the corresponding undisbursed commitment was eliminated. The fair value of undisbursed commitments approximates the amounts outstanding, because ADB expects that disbursements will substantially be made for all the projects/programs covered by the commitments. NOTE FUNCOMMITTED BALANCES Uncommitted balances comprise amounts which have not been committed by ADB as of 31 December 2011 and 2010.
201

NOTE GFAIR VALUE MEASUREMENTS ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability at measurement date (exit price) in an orderly transaction among willing participants with an assumption that the transaction takes place in the entitys principal market, the most advantageous market for the asset or liability. The most advantageous market is where the sale of the asset or transfer of liability would maximize the amount received for the asset or minimize the amount paid to transfer the liability. The fair value measurement is not adjusted for transaction cost. ASC 820 also establishes a fair value hierarchy that gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), next priority to observable market inputs or market corroborated data (Level 2), and the lowest priority to unobservable inputs without market corroborated data (Level 3). ASC 820 requires the fair value measurement to maximize the use of market observable inputs. The following guidelines are applied in determining the fair values of financial instruments: Investments Readily marketable investments are fair valued using active market quotes in Level 1 category. Level 2 category includes investments which are fair valued with significant market observable inputs. The fair value of the following financial assets of PEF as of 31 December 2011 and 2010 were reported based on the following:
$20,791,000
$30,322,000
202
cOntinUED
See Notes C and E for discussions relating to investments and undisbursed commitments, respectively. In all other cases, the carrying amount of PEFs assets, liabilities, and uncommitted balances are considered to approximate fair values for all significant financial instruments. NOTE HSUBSEQUENT EVENTS ADB has evaluated subsequent events after 31 December 2011 through 14 March 2012, the date these Financial Statements are available for issuance. As a result of this evaluation, there are no subsequent events, as defined, that require recognition or disclosure in the PEFs Financial Statements as of 31 December 2011.
203
reGiOnal cOOperatiOn and inteGratiOn Fund

204
205
Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected and corrected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. In our opinion, managements assertion that ADB maintained effective internal control over financial reporting as of December 31, 2011, is fairly stated, in all material respects, based on the criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. We have also audited, in accordance with auditing standards generally accepted in the United States of America, the accompanying statement of financial position of Asian Development Bank (ADB) Regional Cooperation and Integration Fund as of December 31, 2011 and 2010 and the related statements of activities and changes in net assets, and cash flows, for each of the years in the two-year period ended December 31, 2011 and our report dated March 14, 2012 expressed an unqualified opinion on those financial statements.
206
INDEPENDENT AUDITORS REPORT To the Board of Directors and the Board of Governors of Asian Development Bank We have audited the accompanying statement of financial position of Asian Development Bank (ADB) Regional Cooperation and Integration Fund as of December 31, 2011 and 2010 and the related statements of activities and changes in net assets, and cash flows, for each of the years in the two-year period ended December 31, 2011. These financial statements are the responsibility of ADBs management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of ADB Regional Cooperation and Integration Fund as of December 31, 2011 and 2010, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2011 in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with attestation standards established by the American Institute of Certified Public Accountants, managements assertion that ADB maintained effective internal control over financial reporting as of December 31, 2011, based on the criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 14, 2012 expressed an unqualified opinion on managements assertion that ADB maintained effective internal control over financial reporting.
207
Asian Development Bank Annual Report 2011 RciF-1
asian DEVELOpMEnt BanKREgiOnaL cOOpERatiOn anD intEgRatiOn FUnD

2011 assEts DUE FROM BANKS INVESTMENTS (Notes C and G) Time deposits ACCRUED REVENUE ADVANCES FOR GRANTS AND OTHER ASSETS (Note D) tOtaL 26,083 1 1,946 $28,209 37,421 3 2,268 $39,829 $ 179 $ 137 2010
LiaBiLitiEs anD UncOMMittED BaLancEs ACCOUNTS PAYABLE AND OTHER LIABILITIES (Note D) UNDISBURSED COMMITMENTS (Notes E and G) TOTAL LIABILITIES UNCOMMITTED BALANCES (RCIF-2) (Note F), represented by: Unrestricted net assets tOtaL
The accompanying notes are an integral part of these financial statements (RCIF-4).
84 23,982 24,066
55 29,392 29,447
4,143 $28,209
10,382 $39,829
208
Regional Cooperation and Integration Fund RciF-2

2011 changEs in UnREstRictED nEt assEts CONTRIBUTIONS (Note F) REVENUE From investments (Note C) From other sourcesnet Total EXPENSES Technical assistance (Note E) Administrative expenses (Note D) Total CONTRIBUTIONS AND REVENUE LESS THAN EXPENSES EXCHANGE (LOSSES) GAINSnet DECREASE IN NET ASSETS NET ASSETS AT BEGINNING OF YEAR nEt assEts at EnD OF yEaR
0 = Less than $500. The accompanying notes are an integral part of these financial statements (RCIF-4).
2010
$10,000
60 0 60
129 1 10,130
5,725 571 6,296 (6,236) (3) (6,239) 10,382 $ 4,143
11,991 301 12,292 (2,162) 7 (2,155) 12,537 $10,382
209
Asian Development Bank Annual Report 2011 RciF-3

2011 CASH FLOWS FROM OPERATING ACTIVITIES Contributions received Interest on investments received Technical assistance disbursed Administrative and financial expenses paid Net cash received from other sources Net Cash (Used in) Provided by Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Maturities of investments Purchases of investments Net Cash Provided by (Used in) Investing Activities Net Increase (Decrease) in Due From Banks Due from Banks at Beginning of Year Due from Banks at End of Year RECONCILIATION OF DECREASE IN NET ASSETS TO NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES: Decrease in net assets (RCIF-2) Adjustments to reconcile decrease in net assets to net cash (used in) provided by operating activities: Change in accrued revenue Change in accrued expenses Change in interfund receivables Change in interfund payables Change in advances for grants Change in undisbursed commitments Change in unrealized investment holding gains Exchange losses (gains)net Net Cash (Used in) Provided by Operating Activities
0 = Less than $500. The accompanying notes are an integral part of these financial statements (RCIF-4).
2010 $ 10,000 166 (7,401) (305) 1 2,461
63 (10,811) (548) 0 (11,296)
936,673 (925,335) 11,338 42 137 $ 179
527,595 (530,189) (2,594) (133) 270 $ 137
$ (6,239) 2 0 44 29 275 (5,410) 3 $ (11,296)
(2,155) 8 (47) (4) (1,607) 6,244 29 (7)
2,461
210

NOTE ANATURE OF OPERATIONS The Asian Development Bank (ADB), a multilateral development financial institution, was established in 1966 with its headquarters in Manila, Philippines. ADB and its operations are governed by the Agreement Establishing the Asian Development Bank (the Charter). Its purpose is to foster economic development and co-operation in Asia and the Pacific region and to contribute to the acceleration of the process of economic development of the developing member countries (DMCs) in the region, collectively and individually. Since 1999, ADBs corporate vision and mission has been to help DMCs reduce poverty in the region. This was reaffirmed under the long-term strategic framework for 20082020 (Strategy 2020). Under Strategy 2020, ADBs corporate vision continues to be An Asia and Pacific Free of Poverty and its mission has been to help its DMCs reduce poverty and improve living conditions and quality of life. ADB has been pursuing its mission and vision by focusing on three complementary strategic agendas: inclusive growth, environmentally sustainable growth, and regional integration. ADB provides financial and technical assistance for projects and programs, which will contribute to achieving this purpose. These are financed through ordinary capital resources (OCR) and Special Funds.1 The RCIF, together with the Regional Cooperation and Integration (RCI) Trust Funds, was established on 26 February 2007 under the umbrella of Regional Cooperation and Integration Financing Partnership Facility (RCIFPF), in response to the increasing demand for regional cooperation and integration activities among ADBs member countries in Asia and the Pacific. Its main objective is to enhance regional cooperation and integration in Asia and the Pacific by facilitating the pooling and provision of additional financial and knowledge resources to support RCI activities. Financial assistance will be provided in the form of untied grants for technical assistance (TA), including advisory, project preparatory, and regional TA. RCIFs resources may consist of contributions from ADB and other bilateral, multilateral, and individual sources, including companies and foundations. ADB is immune from taxation pursuant to Chapter VIII, Article 56, Exemption from Taxation, of the Charter. NOTE BSUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Presentation of the Financial Statements The financial statements of the RCIF are prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP), and are presented on the basis of those for notfor-profit organizations. RCIF reports donors contributions of cash and other assets as unrestricted assets as these are made available to RCIF without conditions other than for the purpose of pursuing its objectives.
211

Functional and Reporting Currency The United States dollar is the functional and reporting currency, representing the currency of the primary economic operating environment of RCIF. Translation of Currencies ADB adopts the use of daily exchange rates for accounting and financial reporting purposes. This allows transactions denominated in non-US dollar to be translated to the reporting currency using exchange rates applicable at the time of transactions. Contributions included in the financial statements during the year are recognized at applicable exchange rates as of the respective dates of commitment. At the end of each accounting month, translations of assets, liabilities, and uncommitted balances which are denominated in non-US dollar are adjusted using the applicable rates of exchange at the end of the reporting period. These translation adjustments are accounted for as exchange gains or losses and are credited or charged to operations. Investments All investment securities held by RCIF are reported at fair value. Realized and unrealized gains and losses are included in revenue. Time deposits are reported at cost which is a reasonable estimate of fair value. Interest income on time deposits are recognized as realized and reported in revenue from investments. Technical Assistance, Grants, and Undisbursed Commitments Technical assistance (TA) and grants are recognized in the financial statements when the project is approved and becomes effective. Upon completion of the TA project or cancellation of a grant, any undisbursed amount is written back as a reduction in TA or grants for the year and the corresponding undisbursed commitment is eliminated accordingly. Advances are provided from TA and grants to the executing agency or co-operating institution, for the purpose of making payments for eligible expenses. The advances are subject to liquidation and charged against undisbursed commitment. Any unutilized portion is required to be returned to the fund. These are included in ADVANCES FOR GRANTS AND OTHER ASSETS. Accounting Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make reasonable estimates and assumptions that affect the reported amounts of assets and liabilities and uncommitted balances as of the end of the year and the reported amounts of revenue and expenses during the year. The actual results could differ from those estimates.
212
cOntinUED
Accounting and Reporting Developments Accounting Standards Update (ASU) 2010-06, Fair Value Measurements and Disclosures (Topic 820) Improving Disclosures about Fair Value Measurements with respect to the separate disclosures about gross purchases, sales, issuances, and settlements relating to Level 3 measurements is effective for fiscal years beginning after 15 December 2010 and for interim periods within those fiscal years. This update did not have a material impact on RCIFs financial statements. In May 2011, the Financial Accounting Standards Board (FASB) issued ASU 2011-04, Fair Value Measurement (Topic 820) Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in US GAAP and IFRSs, which provides the consistency between US GAAP and International Financial Reporting Standards (IFRSs) on the definition of fair value (FV) and on the guidance on how to measure FV and on what to disclose about FV measurements. The amendments to the update do not require additional FV measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. The new guidance will require prospective application and are effective for interim and annual periods beginning on or after 15 December 2011. ADB is currently assessing the impact of this update on RCIFs financial statements. Statement of Cash Flows For the purposes of the Statement of Cash Flows, RCIF considers that its cash and cash equivalents are limited to DUE FROM BANKS, which consists of cash on hand and current accounts in banks used for operational disbursements. NOTE CINVESTMENTS The main investment management objective is to maintain security and liquidity. Subject to these parameters, ADB seeks the highest possible return on its investments. Investments are governed by the Investment Authority approved by the Board of Directors in 2006. All investments held as of 31 December 2011 and 2010 were in time deposits. The annualized rate of return on the average investments held during the period ended 31 December 2011, based on the portfolio held at the beginning and end of each month, was 0.20% (0.36% 2010). NOTE DRELATED PARTY TRANSACTIONS The OCR and special funds resources are at all times used, committed, and invested entirely separate from each other. The administrative and operational expenses pertaining to RCIF are settled regularly with OCR and the other funds. Regional technical assistance projects and programs may be combined activities financed by special and trust funds. ADB charges a service fee to cover ADBs incremental cost for the administration, management, supervision, and operation of the RCIF and RCI Trust Fund, a trust fund administered by ADB. The service fee is currently 5% of the amount disbursed for technical assistance and 2% of the amount disbursed for grant components of investment projects.
213

2011 Receivable from: Technical Assistance Special Fund Japan Special Fund Total payable to: Ordinary capital resources Technical Assistance Special Fund Total $76,000 $76,000 $44,000 5,000 $49,000 $48,000 $48,000 $ 94,000 $94,000 2010
NOTE EUNDISBURSED COMMITMENTS Undisbursed commitments are denominated in United States dollars and represent effective technical assistance and grants not yet disbursed and unliquidated. During 2011, $275,000 ($59,000 2010) representing completed and cancelled TA projects was written back as a reduction in technical assistance of the period and the corresponding undisbursed commitment was eliminated. The fair value of undisbursed commitments approximates the amounts outstanding, because ADB expects that disbursements will substantially be made for all the projects/programs covered by the commitments. NOTE FCONTRIBUTIONS AND UNCOMMITTED BALANCES In May 2010, the Board of Governors approved the transfer of $10,000,000 to the RCIF from the 2009 OCR allocable net income. Uncommitted balances comprise amounts which have not been committed by ADB as of 31 December 2011 and 2010. NOTE GFAIR VALUE MEASUREMENTS ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability at measurement date (exit price) in an orderly transaction among willing participants with an assumption that the transaction takes place in the entitys principal market, the most advantageous market for the asset or liability. The most advantageous market is where the sale of the asset or transfer of liability would maximize the amount received for the asset or minimize the amount paid to transfer the liability. The fair value measurement is not adjusted for transaction cost.
214
cOntinUED
ASC 820 also establishes a fair value hierarchy that gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), next priority to observable market inputs or market corroborated data (Level 2), and the lowest priority to unobservable inputs without market corroborated data (Level 3). ASC 820 requires the fair value measurement to maximize the use of market observable inputs. The following guidelines are applied in determining the fair values of financial instruments: Investments Readily marketable investments are fair valued using active market quotes in Level 1 category. Level 2 category includes investments which are fair valued with significant market observable inputs. The fair values of the following financial assets of RCIF as of 31 December 2011 and 2010 were reported based on the following:
$26,083,000
$37,421,000
See Notes C and E for discussions relating to investments and undisbursed commitments, respectively. In all other cases, the carrying amount of RCIFs assets, liabilities, and uncommitted balances are considered to approximate fair values for all significant financial instruments. NOTE HSUBSEQUENT EVENTS ADB has evaluated subsequent events after 31 December 2011 through 14 March 2012, the date these Financial Statements are available for issuance. As a result of this evaluation, there are no subsequent events, as defined, that require recognition or disclosure in the RCIFs Financial Statements as of 31 December 2011. 215
cliMate cHanGe Fund

216
Climate Change Fund
217
Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected and corrected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. In our opinion, managements assertion that ADB maintained effective internal control over financial reporting as of December 31, 2011, is fairly stated, in all material respects, based on the criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. We have also audited, in accordance with auditing standards generally accepted in the United States of America, the accompanying statement of financial position of Asian Development Bank (ADB) Climate Change Fund as of December 31, 2011 and 2010 and the related statements of activities and changes in net assets, and cash flows, for each of the years in the two-year period ended December 31, 2011 and our report dated March 14, 2012 expressed an unqualified opinion on those financial statements.
218
Climate Change Fund
INDEPENDENT AUDITORS REPORT To the Board of Directors and the Board of Governors of Asian Development Bank We have audited the accompanying statement of financial position of Asian Development Bank (ADB) Climate Change Fund as of December 31, 2011 and 2010 and the related statements of activities and changes in net assets, and cash flows, for each of the years in the two-year period ended December 31, 2011. These financial statements are the responsibility of ADBs management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of ADB Climate Change Fund as of December 31, 2011 and 2010, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2011 in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with attestation standards established by the American Institute of Certified Public Accountants, managements assertion that ADB maintained effective internal control over financial reporting as of December 31, 2011, based on the criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 14, 2012 expressed an unqualified opinion on managements assertion that ADB maintained effective internal control over financial reporting.
219
Asian Development Bank Annual Report 2011 ccF-1
asian DEVELOpMEnt BanKcLiMatE changE FUnD

2011 assEts DUE FROM BANKS INVESTMENTS (Notes C and G) Time deposits ACCRUED REVENUE ADVANCES FOR GRANTS AND OTHER ASSETS (Note D) tOtaL LiaBiLitiEs anD UncOMMittED BaLancEs ACCOUNTS PAYABLE AND OTHER LIABILITIES (Note D) UNDISBURSED COMMITMENTS (Notes E and G) TOTAL LIABILITIES UNCOMMITTED BALANCES (CCF-2) (Note F), represented by: Unrestricted net assets tOtaL
The accompanying notes are an integral part of these financial statements (CCF-4).
2010
164
175
37,724 2 1,327 $39,217
43,445 3 1,150 $44,773
14 24,961 24,975 14,242
59 25,578 25,637 19,136
$39,217
$44,773
220
Climate Change Fund ccF-2

2011 changEs in UnREstRictED nEt assEts CONTRIBUTIONS (Note F) REVENUE From investments (Note C) From other sources Total EXPENSES Technical assistance (Note E) Administrative and financial expenses (Note D) Total CONTRIBUTIONS AND REVENUE LESS THAN EXPENSES EXCHANGE LOSSESnet DECREASE IN NET ASSETS NET ASSETS AT BEGINNING OF YEAR nEt assEts at EnD OF yEaR
0 = Less than $500. The accompanying notes are an integral part of these financial statements (CCF-4).
2010
$10,000
77 0 77
149 1 10,150
4,603 367 4,970 (4,893) (1) (4,894) 19,136 $14,242
17,200 515 17,715 (7,565) (1) (7,566) 26,702 $19,136
221
Asian Development Bank Annual Report 2011 ccF-3

2011 CASH FLOWS FROM OPERATING ACTIVITIES Contributions received Interest on investments received Technical assistance disbursed Administrative and financial expenses paid Cash received from other sources Net Cash (Used in) Provided by Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Maturities of investments Purchases of investments Net Cash Provided by (Used in) Investing Activities Net Decrease in Due From Banks Due from Banks at Beginning of Year Due from Banks at End of Year RECONCILIATION OF DECREASE IN NET ASSETS TO NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES: Decrease in net assets (CCF-2) Adjustments to reconcile decrease in net assets to net cash (used in) provided by operating activities: Change in accrued revenue Change in miscellaneous assets Change in miscellaneous liabilities Change in advances for technical assistance/grants Change in undisbursed commitments Change in unrealized investment holding losses Exchange losses (gains)net Net Cash (Used in) Provided by Operating Activities
0 = Less than $500. The accompanying notes are an integral part of these financial statements (CCF-4).
2010 $ 10,000 194 (5,422) (558) 0 4,214
79 (5,400) (412) 0 (5,733)
1,205,923 (1,200,201) 5,722 (11) 175 $ 164
745,204 (749,452) (4,248) (34) 209 $ 175
(4,894) 1 (23) (45) (156) (617) 1
(7,566) 9 0 (43) (810) 12,589 35 (0)
(5,733)
4,214
222

NOTE ANATURE OF OPERATIONS The Asian Development Bank (ADB), a multilateral development financial institution, was established in 1966 with its headquarters in Manila, Philippines. ADB and its operations are governed by the Agreement Establishing the Asian Development Bank (the Charter). Its purpose is to foster economic development and co-operation in Asia and the Pacific region and to contribute to the acceleration of the process of economic development of the developing member countries (DMCs) in the region, collectively and individually. Since 1999, ADBs corporate vision and mission has been to help DMCs reduce poverty in the region. This was reaffirmed under the long-term strategic framework for 20082020 (Strategy 2020). Under Strategy 2020, ADBs corporate vision continues to be An Asia and Pacific Free of Poverty and its mission has been to help its DMCs reduce poverty and improve living conditions and quality of life. ADB has been pursuing its mission and vision by focusing on three complementary strategic agendas: inclusive growth, environmentally sustainable growth, and regional integration. ADB provides financial and technical assistance for projects and programs, which will contribute to achieving this purpose. These are financed through ordinary capital resources (OCR) and Special Funds.1 The CCF was established on 7 April 2008 to facilitate greater investments in DMCs to address the causes and consequences of climate change alongside ADBs own assistance in various related sectors. The CCF will be a key mechanism to pool resources within ADB to address climate change through (i) technical assistance (TA), (ii) investment components for both private and public sector projects, and (iii) any other form of cooperation that partners and ADB may agree upon for a defined program of activities. Financial assistance will be provided in the form of untied grants for components of investment projects, for advisory, project preparatory, and regional TA; as well as for any other activities that may be agreed between external contributors and ADB. CCFs resources may consist of contributions from ADB and other bilateral, multilateral, and individual sources, including companies and foundations. ADB is immune from taxation pursuant to Chapter VIII, Article 56, Exemption from Taxation, of the Charter. NOTE BSUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Presentation of the Financial Statements The financial statements of the CCF are prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP), and are presented on the basis of those for not-for-profit organizations. CCF reports donors contributions of cash and other assets as unrestricted assets as these are made available to CCF without conditions other than for the purpose of pursuing its objectives.
223

Functional and Reporting Currency The United States dollar is the functional and reporting currency, representing the currency of the primary economic operating environment of CCF. Translation of Currencies ADB adopts the use of daily exchange rates for accounting and financial reporting purposes. This allows transactions denominated in non-US dollar to be translated to the reporting currency using exchange rates applicable at the time of transactions. Contributions included in the financial statements during the year are recognized at applicable exchange rates as of the respective dates of commitment. At the end of each accounting month, translations of assets, liabilities, and uncommitted balances which are denominated in non-US dollar are adjusted using the applicable rates of exchange at the end of the reporting period. These translation adjustments are accounted for as exchange gains or losses and are credited or charged to operations. Investments All investment securities held by CCF are reported at fair value. Realized and unrealized gains and losses are included in revenue. Time deposits are reported at cost which is a reasonable estimate of fair value. Interest income on investment securities and time deposits are recognized as realized and reported, net of amortizations of premiums and discounts. Contributions The contributions from donors and the allocations from net income of OCR are included in the financial statements, from the date of effectivity of the contributions agreement, and the Board of Governors approval, respectively. Technical Assistance, Grants, and Undisbursed Commitments Technical assistance and grants are recognized in the financial statements when the project is approved and becomes effective. Upon completion of the TA project or cancellation of a grant, any undisbursed amount is written back as a reduction in TA or grants for the year and the corresponding undisbursed commitment is eliminated accordingly. Advances are provided from TA and grants to the executing agency or co-operating institution, for the purpose of making payments for eligible expenses. The advances are subject to liquidation and charged against undisbursed commitment. Any unutilized portion is required to be returned to the fund. Accounting Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make reasonable estimates and assumptions that affect the reported amounts
224
cOntinUED
of assets and liabilities and uncommitted balances as of the end of the year and the reported amounts of revenue and expenses during the year. The actual results could differ from those estimates. Accounting and Reporting Developments Accounting Standards Update (ASU) 2010-06, Fair Value Measurements and Disclosures (Topic 820) Improving Disclosures about Fair Value Measurements with respect to the separate disclosures about gross purchases, sales, issuances, and settlements relating to Level 3 measurements is effective for fiscal years beginning after 15 December 2010 and for interim periods within those fiscal years. This update did not have a material impact on CCFs financial statements. In May 2011, the Financial Accounting Standards Board issued ASU 2011-04, Fair Value Measurement (Topic 820) Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in US GAAP and IFRSs, which provides the consistency between US GAAP and International Financial Reporting Standards (IFRSs) on the definition of fair value (FV) and on the guidance on how to measure FV and on what to disclose about FV measurements. The amendments to the update do not require additional FV measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. The new guidance will require prospective application and are effective for interim and annual periods beginning on or after 15 December 2011. ADB is currently assessing the impact of this update on CCFs financial statements. Statement of Cash Flows For the purposes of the Statement of Cash Flows, CCF considers that its cash and cash equivalents are limited to DUE FROM BANKS, which consists of cash on hand and current accounts in banks used for operational disbursements. NOTE CINVESTMENTS The main investment management objective is to maintain security and liquidity. Subject to these parameters, ADB seeks the highest possible return on its investments. Investments are governed by the Investment Authority approved by the Board of Directors in 2006. All investments held as of 31 December 2011 and 2010 were in time deposits. The annualized rate of return on the average investments held during the period ended 31 December 2011, based on the portfolio held at the beginning and end of each month, was 0.20% (0.36% 2010). NOTE DRELATED PARTY TRANSACTIONS The OCR and special funds resources are at all times used, committed, and invested entirely separate from each other. The administrative and operational expenses pertaining to CCF are settled regularly with OCR and the other funds. Regional technical assistance projects and programs may be combined activities financed by special and trust funds. ADB charges a service fee to cover ADBs incremental cost for the administration, management, supervision and operation of the CCF. The service fee is currently 5% of the amount disbursed for technical assistance and 2% of the amount disbursed for grant components of investment projects. 225

2011 Receivable from: Technical Assistance Special Fund Japan Special Fund Total payable to: Ordinary capital resources $ 8,000 $53,000 $11,000 13,000 $24,000 $ $ 2010
NOTE EUNDISBURSED COMMITMENTS Undisbursed commitments are denominated in United States dollars and represent TA not yet disbursed and unliquidated. During 2011, $447,000 (nil 2010) representing completed and cancelled TA projects were written back as a reduction in technical assistance of the period and the corresponding undisbursed commitment was eliminated. The fair value of undisbursed commitments approximates the amounts outstanding, because ADB expects that disbursements will substantially be made for all the projects/programs covered by the commitments. NOTE FCONTRIBUTIONS AND UNCOMMITTED BALANCES In May 2010, the Board of Governors approved the transfer of $10,000,000 to the CCF from the 2009 OCR allocable net income. Uncommitted balances comprise amounts which have not been committed by ADB as of 31 December 2011 and 2010. NOTE GFAIR VALUE MEASUREMENTS ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability at measurement date (exit price) in an orderly transaction among willing participants with an assumption that the transaction takes place in the entitys principal market, the most advantageous market for the asset or liability. The most advantageous market is where the sale of the asset or transfer of liability would maximize the amount received for the asset or minimize the amount paid to transfer the liability. The fair value measurement is not adjusted for transaction cost. ASC 820 also establishes a fair value hierarchy that gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), next priority to observable market inputs
226
cOntinUED
or market corroborated data (Level 2), and the lowest priority to unobservable inputs without market corroborated data (Level 3). ASC 820 requires the fair value measurement to maximize the use of market observable inputs. The following guidelines are applied in determining the fair values of financial instruments: Investments Readily marketable investments are fair valued using active market quotes in Level 1 category. Level 2 category includes investments which are fair valued with significant market observable inputs. The fair value of the following financial assets of CCF as of 31 December 2011 and 2010 were reported based on the following:
$37,724,000
$43,445,000
See Notes C and E for discussions relating to investments and undisbursed commitments, respectively. In all other cases, the carrying amount of CCFs assets, liabilities, and uncommitted balances are considered to approximate fair values for all significant financial instruments. NOTE HSUBSEQUENT EVENTS ADB has evaluated subsequent events after 31 December 2011 through 14 March 2012, the date these Financial Statements are available for issuance. As a result of this evaluation, there are no subsequent events, as defined, that require recognition or disclosure in the CCFs Financial Statements as of 31 December 2011.
227
asia paciFic disaster respOnse Fund

228
229
Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected and corrected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. In our opinion, managements assertion that ADB maintained effective internal control over financial reporting as of December 31, 2011, is fairly stated, in all material respects, based on the criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. We have also audited, in accordance with auditing standards generally accepted in the United States of America, the accompanying statement of financial position of Asian Development Bank (ADB) Asia Pacific Disaster Response Fund as of December 31, 2011 and 2010 and the related statements of activities and changes in net assets, and cash flows, for each of the years in the two-year period ended December 31, 2011 and our report dated March 14, 2012 expressed an unqualified opinion on those financial statements.
230
INDEPENDENT AUDITORS REPORT To the Board of Directors and the Board of Governors of Asian Development Bank We have audited the accompanying statement of financial position of Asian Development Bank (ADB) Asia Pacific Disaster Response Fund as of December 31, 2011 and 2010 and the related statements of activities and changes in net assets, and cash flows, for each of the years in the two-year period ended December 31, 2011. These financial statements are the responsibility of ADBs management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of ADB Asia Pacific Disaster Response Fund as of December 31, 2011 and 2010, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2011 in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with attestation standards established by the American Institute of Certified Public Accountants, managements assertion that ADB maintained effective internal control over financial reporting as of December 31, 2011, based on the criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 14, 2012 expressed an unqualified opinion on managements assertion that ADB maintained effective internal control over financial reporting.
231
Asian Development Bank Annual Report 2011 apDRF-1
asian DEVELOpMEnt BanKasia paciFic DisastER REspOnsE FUnD

2011 assEts DUE FROM BANKS INVESTMENTS (Notes C and G) Time deposits ACCRUED REVENUE ADVANCES FOR GRANTS tOtaL LiaBiLitiEs anD UncOMMittED BaLancEs ACCOUNTS PAYABLE AND OTHER LIABILITIES (Note D) UNDISBURSED COMMITMENTS (Notes E and G) TOTAL LIABILITIES UNCOMMITTED BALANCES (APDRF-2) (Note F), represented by: Unrestricted net assets tOtaL
0 = Less than $500. The accompanying notes are an integral part of these financial statements (APDRF-4).
2010
$ 4,349
$ 7,411
11,162 0 17,862 $33,373
20,128 2 6,002 $33,543
13 21,000 21,013 12,360
63 6,000 6,063 27,480
$33,373
$33,543
232
Asia Pacific Disaster Response Fund apDRF-2

2011 changEs in UnREstRictED nEt assEts REVENUE From investments (Note C) From other sources Total EXPENSES Grants (Note E) Administrative expenses (Note D) Financial expenses Total REVENUE LESS THAN EXPENSES EXCHANGE (LOSSES) GAINSnet DECREASE IN NET ASSETS NET ASSETS AT BEGINNING OF YEAR nEt assEts at EnD OF yEaR
2010
33 1 34
66 2 68
15,000 13 0 15,013 (14,979) (141) (15,120) 27,480 $ 12,360
5,499 143 0 5,642 (5,574) 2 (5,572) 33,052 $27,480
233
Asian Development Bank Annual Report 2011 apDRF-3

2011 CASH FLOWS FROM OPERATING ACTIVITIES Interest on investments received Cash received from other sources Grants disbursed Administrative and financial expenses paid Net Cash Used in Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Maturities of investments Purchases of investments Net Cash Provided by Investing Activities Net (Decrease) Increase in Due From Banks Due from Banks at Beginning of Year Due from Banks at End of Year RECONCILIATION OF DECREASE IN NET ASSETS TO NET CASH USED IN OPERATING ACTIVITIES: Decrease in net assets (APDRF-2) Adjustments to reconcile decrease in net assets to net cash used in operating activities: Change in accrued revenue Change in advances for grants Change in miscellaneous liabilities Change in accrued expenses Change in undisbursed commitments Exchange losses (gains)net Net Cash Used in Operating Activities
2010 $ 65 2 (5,499) (93) (5,525)
34 1 (12,000) (63) (12,028)
1,393,039 (1,384,073) 8,966 (3,062) 7,411 $ 4,349 $
1,526,446 (1,517,011) 9,435 3,910 3,501 7,411
(15,120) 1 (12,000) (50) 0 15,000 141
(5,572) (1) 1,003 56 (6) (1,000) (5)
(12,028)
(5,525)
234

NOTE ANATURE OF OPERATIONS The Asian Development Bank (ADB), a multilateral development financial institution, was established in 1966 with its headquarters in Manila, Philippines. ADB and its operations are governed by the Agreement Establishing the Asian Development Bank (the Charter). Its purpose is to foster economic development and co-operation in Asia and the Pacific region and to contribute to the acceleration of the process of economic development of the developing member countries (DMCs) in the region, collectively and individually. Since 1999, ADBs corporate vision and mission has been to help DMCs reduce poverty in the region. This was reaffirmed under the long-term strategic framework for 20082020 (Strategy 2020). Under Strategy 2020, ADBs corporate vision continues to be An Asia and Pacific Free of Poverty and its mission has been to help its DMCs reduce poverty and improve living conditions and quality of life. ADB has been pursuing its mission and vision by focusing on three complementary strategic agendas: inclusive growth, environmentally sustainable growth, and regional integration. ADB provides financial and technical assistance for projects and programs, which will contribute to achieving this purpose. These are financed through ordinary capital resources (OCR) and Special Funds.1 The APDRF was established on 1 April 2009, to provide, in a timely fashion, incremental grant resources to DMCs affected by a natural disaster. The APDRF will help bridge the gap between existing ADB arrangements that assist DMCs to reduce disaster risk through hazard mitigation loans and grants, and longer-term post-disaster reconstruction lending. The APDRF will provide quickdisbursing grants to assist DMCs in meeting immediate expenses to restore life-saving services to affected populations following a declared disaster and in augmenting aid provided by other donors in times of national crisis. Financial assistance will be provided in the form of grants in an amount totaling up to $3,000,000 per event. APDRFs resources may consist of contributions from ADB and other bilateral, multilateral, and individual sources, including companies and foundations. ADB is immune from taxation pursuant to Chapter VIII, Article 56, Exemption from Taxation, of the Charter. NOTE BSUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Presentation of the Financial Statements The financial statements of the APDRF are prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP), and are presented on the basis of those for not-for-profit organizations. APDRF reports donors contributions of cash and other assets as unrestricted assets as these are made available to APDRF without conditions other than for the purpose of pursuing its objectives.
235

Functional and Reporting Currency The United States dollar is the functional and reporting currency, representing the currency of the primary economic operating environment of APDRF. Translation of Currencies ADB adopts the use of daily exchange rates for accounting and financial reporting purposes. This allows transactions denominated in non-US dollar to be translated to the reporting currency using exchange rates applicable at the time of transactions. Contributions included in the financial statements during the year are recognized at applicable exchange rates as of the respective dates of commitment. At the end of each accounting month, translations of assets, liabilities, and uncommitted balances which are denominated in non-US dollar are adjusted using the applicable rates of exchange at the end of the reporting period. These translation adjustments are accounted for as exchange gains or losses and are credited or charged to operations. Investments All investment securities held by APDRF are reported at fair value. Realized and unrealized gains and losses are included in revenue. Time deposits are reported at cost which is a reasonable estimate of fair value. Interest income on investment securities and time deposits are recognized as realized and reported, net of amortizations of premiums and discounts. Contributions The contributions from donors and the allocations from net income of OCR are included in the financial statements, from the date of effectivity of the contributions agreement, and the Board of Governors approval, respectively. Technical Assistance, Grants, and Undisbursed Commitments Technical assistance (TA) and grants are recognized in the financial statements when the project is approved and becomes effective. Upon completion of the TA project or cancellation of a grant, any undisbursed amount is written back as a reduction in TA or grants for the year and the corresponding undisbursed commitment is eliminated accordingly. Advances are provided from TA and grants to the executing agency or co-operating institution, for the purpose of making payments for eligible expenses. The advances are subject to liquidation and charged against undisbursed commitment. Any unutilized portion is required to be returned to the fund. Accounting Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make reasonable estimates and assumptions that affect the reported amounts
236
cOntinUED
of assets and liabilities and uncommitted balances as of the end of the year and the reported amounts of revenue and expenses during the year. The actual results could differ from those estimates. Accounting and Reporting Developments Accounting Standards Update (ASU) 2010-06, Fair Value Measurements and Disclosures (Topic 820) Improving Disclosures about Fair Value Measurements with respect to the separate disclosures about gross purchases, sales, issuances, and settlements relating to Level 3 measurements is effective for fiscal years beginning after 15 December 2010 and for interim periods within those fiscal years. This update did not have a material impact on APDRFs financial statements. In May 2011, the Financial Accounting Standards Board issued ASU 2011-04, Fair Value Measurement (Topic 820) Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in US GAAP and IFRSs, which provides the consistency between US GAAP and International Financial Reporting Standards (IFRSs) on the definition of fair value (FV) and on the guidance on how to measure FV and on what to disclose about FV measurements. The amendments to the update do not require additional FV measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. The new guidance will require prospective application and are effective for interim and annual periods beginning on or after 15 December 2011. ADB is currently assessing the impact of this update on APDRFs financial statements. Statement of Cash Flows For the purposes of the Statement of Cash Flows, APDRF considers that its cash and cash equivalents are limited to DUE FROM BANKS, which consists of cash on hand and current accounts in banks used for operational disbursements. NOTE CINVESTMENTS The main investment management objective is to maintain security and liquidity. Subject to these parameters, ADB seeks the highest possible return on its investments. Investments are governed by the Investment Authority approved by the Board of Directors in 2006. All investments held as of 31 December 2011 and 2010 were in time deposits. The annualized rate of return on the average investments held during the period ended 31 December 2011, based on the portfolio held at the beginning and end of each month, was 0.18% (0.26% 2010). NOTE DRELATED PARTY TRANSACTIONS The OCR and special funds resources are at all times used, committed, and invested entirely separate from each other. The administrative and operational expenses pertaining to APDRF are settled regularly with OCR and the other funds. Regional technical assistance projects and programs may
237

be combined activities financed by special and trust funds. ADB charges a service fee to cover ADBs cost for the administration, management, supervision and operation of the APDRF. The service fee is currently 2% of the amount disbursed for investment projects. As of 31 December 2011, $7,000 ($56,000 2010) was payable to OCR which is included in ACCOUNTS PAYABLE AND OTHER LIABILITIES. NOTE EUNDISBURSED COMMITMENTS Undisbursed commitments are denominated in United States dollars and represent grants not yet disbursed and unliquidated. The fair value of undisbursed commitments approximates the amounts outstanding, because ADB expects that disbursements will substantially be made for all the projects/ programs covered by the commitments. NOTE FCONTRIBUTIONS AND UNCOMMITTED BALANCES No contributions were received during 2011 and 2010. Uncommitted balances comprise amounts which have not been committed by ADB as of 31 December 2011 and 2010. NOTE GFAIR VALUE MEASUREMENTS ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability at measurement date (exit price) in an orderly transaction among willing participants with an assumption that the transaction takes place in the entitys principal market, the most advantageous market for the asset or liability. The most advantageous market is where the sale of the asset or transfer of liability would maximize the amount received for the asset or minimize the amount paid to transfer the liability. The fair value measurement is not adjusted for transaction cost. ASC 820 also establishes a fair value hierarchy that gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), next priority to observable market inputs or market corroborated data (Level 2), and the lowest priority to unobservable inputs without market corroborated data (Level 3). ASC 820 requires the fair value measurement to maximize the use of market observable inputs. The following guidelines are applied in determining the fair values of financial instruments: Investments Readily marketable investments are fair valued using active market quotes in Level 1 category. Level 2 category includes investments which are fair valued with significant market observable inputs.
238
cOntinUED
The fair value of the following financial assets of APDRF as of 31 December 2011 and 2010 were reported based on the following:
$11,162,000
$20,128,000
See Notes C and E for discussions relating to investments and undisbursed commitments, respectively. In all other cases, the carrying amount of APDRFs assets, liabilities and uncommitted balances are considered to approximate fair values for all significant financial instruments. NOTE HSUBSEQUENT EVENTS ADB has evaluated subsequent events after 31 December 2011 through 14 March 2012, the date these Financial Statements are available for issuance. As a result of this evaluation, there are no subsequent events, as defined, that require recognition or disclosure in the APDRFs Financial Statements as of 31 December 2011.
239
Statistical Annexes
1 2 3a 3b 4a 4b 5a 5b 6a 6b 6c 7 8 9 10 11 12 13 14 15 16 17 18 19 20 approvals by country Loan approvals by sector sectoral Distribution of Loans sectoral Distribution of grants projects involving Official cofinancing projects involving commercial cofinancing Loan Disbursements grant Disbursements policy-Based Loan Disbursements policy-Based grant Disbursements trends in policy-Based Lending and aDF grant nonsovereign approvals and total project costs by country nonsovereign approvals and total project costs by sector nonsovereign approvals by year nonsovereign approvals by country number of Loans/grants Under administration, and closed in 2011 amount of Loans Made Effective, contracts awarded, and Disbursements amount of grants Made Effective, contracts awarded, and Disbursements number of projects Under administration, projects at Risk, completed, and pcRs/xaRRs/ppERs circulated technical assistance grant approvals by country and Regional activities technical assistance grant approvals technical assistance grants by sector net transfer of Resources (Ordinary capital Resources, asian Development Fund, and Other special Funds grants) 20092011 net transfer of Resources (Ordinary capital Resources, asian Development Fund, and Other special Funds grants) asian Development Fund Resources and commitment authority 21 22 23 24 25a 25b 26a 26b 27a 27b 28a 28b 29 30 31 32 technical assistance special Fund Japan special FundRegular and supplementary contributions Japan special Fundasian currency crisis support Facility projects with aDB-administered grant cofinancing contracts awarded by country of Origin, project LoansOrdinary capital Resources contracts awarded by nationality of contractor, project LoansOrdinary capital Resources contracts awarded by country of Origin, project Loansasian Development Fund contracts awarded by nationality of contractor, project Loansasian Development Fund contracts awarded by country of Origin, project LoansOrdinary capital Resources and asian Development Fund combined contracts awarded by nationality of contractor, project LoansOrdinary capital Resources and asian Development Fund combined Estimates of payment to supplying countries for Foreign procurement Under program Lending (by country of Origin) Estimates of payment to supplying countries for Foreign procurement Under program Lending (by nationality of contractor) cumulative contracts awarded/by country of Origin (technical assistance Operations) contracts awarded by nationality of consultant, 20092011 (technical assistance Operations) contracts awarded by nationality of consultant, 20092011 (grant OperationsaDB-administered consulting services) contracts awarded by nationality of contractors, 20092011 (grant OperationsExecuting agency-administered goods, works, and consulting services)
Statistical Annexes
Statistical Annex 1 APPROVALS BY COUNTRY,a 2011 ($ million)
aDB special Funds OcR country
central and west asia Afghanistan Armenia Azerbaijan Georgia Kazakhstan Kyrgyz Republic Pakistan Tajikistan Turkmenistan Uzbekistan south asia Bangladesh Bhutan India Maldives Nepal Sri Lanka East asia China, Peoples Republic of Mongolia pacific Cook Islands Fiji Kiribati Marshall Islands Micronesia, Federated States of Nauru Palau Papua New Guinea Samoa Solomon Islands Timor-Leste Tonga Tuvalu Vanuatu southeast asia Brunei Darussalam Cambodia Indonesia Lao Peoples Democratic Republic Malaysia Myanmar Philippines Thailand Viet Nam Regional tOtaL
aDF Loans
601.64 48.64 120.00 55.00 320.00 58.00 706.17 450.00 19.87 154.00 82.30 65.00 65.00 108.32 7.56 74.12 10.82 15.82 473.72 67.00 41.92 364.80 1,954.85
Other special Funds grants tasF

11.51 1.50 0.70 0.57 0.45 4.00 1.05 3.25 19.92 5.75 1.20 6.45 1.13 3.16 2.24 18.78 18.76 0.01 7.68 0.50 0.80 0.30 0.20 2.00 1.28 1.43 0.68 0.50 22.88 4.38 0.23 2.26 1.00 4.88 1.55 8.60 59.52 140.28
cofinancing ta
5.08 1.50 0.60 1.25 1.73 29.63 3.61 1.50 12.25 10.43 1.85 8.00 2.80 5.20 5.73 1.63 0.70 1.40 0.50 1.50 74.73 9.10 9.33 5.30 14.70 1.50 34.80 88.20
Loans
2,897.24 65.00 500.00 140.00 207.00 940.24 125.00 920.00 3,552.24 480.00 2,872.94 199.30 1,439.84 1,439.84 169.70 4.70 165.00 2,591.59 580.00 448.20 362.00 170.00 1,031.39 10,650.61
Equity guarantees investments

266.61 66.61 200.00 150.00 150.00 416.61 20.00 20.00 25.00 25.00 9.00 9.00 185.00 239.00
grants ta grants project

3.00 3.00 4.30 1.30 3.00 0.80 0.80 9.00 3.00 3.00 3.00 17.10 0.10 0.10 1.35 1.35 6.30 7.75 1,976.95 65.40 143.58 1,552.20 215.77 1,862.07 1,351.82 5.00 65.00 337.29 102.96 130.49 105.10 25.39 133.53 13.95 49.00 4.04 22.94 43.60 3,375.19 18.90 219.79 56.70 914.77 2,165.03 5.00 7,483.23
total
6,159.02 300.40 114.34 643.58 260.60 207.57 55.45 2,886.05 167.30 125.00 1,398.74 6,460.44 2,292.48 27.57 3,126.73 1.13 620.88 391.65 1,688.46 1,592.85 95.60 478.51 6.00 23.94 0.30 0.70 0.20 300.52 10.82 10.32 24.43 39.88 61.42 6,587.10 102.38 809.34 537.68 1.00 441.28 1,090.82 3,604.62 344.02
397.00 232.00 165.00 116.00 116.00 43.76 5.00 23.00 15.76 40.00 40.00 596.76
211.36 21,717.55
= nil, ADF = Asian Development Fund, OCR = ordinary capital resources, TA = technical assistance, TASF = Technical Assistance Special Fund. a Including cofinancing.
241

Statistical Annex 2 LOAN APPROVALS BY SECTOR, 2011
$ Million OcR agRicULtURE anD natURaL REsOURcEs BAN IND LAO LAO NEP PAK PRC PRC PRC PRC VIE VIE Second Chittagong Hill Tracts Rural Development Agribusiness Infrastructure Development Investment Program Tranche 2 Nam Ngum River Basin Development Sector (Additional Financing) Smallholder Development (Additional Financing) Decentralized Rural Infrastructure and Livelihood (Additional Financing) Punjab Irrigated Agriculture Investment Program Tranche 2 Qinghai Rural Water Resources Management Forestry and Ecological Restoration in Three Northwest Provinces Hai River Estuary Area Pollution Control and Ecosystem Rehabilitation Jiangsu Yancheng Wetlands Protection Phuoc Hoa Water Resources (Supplementary) Development of the Northern Chu and Southern Ma Rivers Irrigation System Subtotal EDUcatiOn BAN LAO MON VIE Third Primary Education Development Secondary Education Sector Development Program Higher Education Reform University of Science and Technology of Hanoi Development (New Model University) Subtotal EnERgy BAN BAN IND IND IND IND IND IND IND IND LAO LAO NEP PAK PAK Power System Efficiency Improvement Industrial Energy Efficiency Program (Bangladesh Energy Efficiency Facility) Madhya Pradesh Energy Efficiency Improvement Investment Program Tranche 1 Gujarat Solar Power Transmission National Grid Improvement Himachal Pradesh Clean Energy Transmission Investment Program Tranche 1 Dahanu Solar Power Assam Power Sector Enhancement Investment Program Tranche 3 National Power Grid Development Investment Program Tranche 3 Madhya Pradesh Energy Efficiency Improvement Investment Program Tranche 2 Greater Mekong Subregion Nam Ngum 3 Hydropower Nam Ngum 3 Hydropower Electricity Transmission Expansion and Supply Improvement Patrind Hydropower Power Transmission Enhancement Investment Program Tranche 3 300.0 30.0 200.0 100.0 750.0 113.0 48.0 50.0 76.0 200.0 98.2 350.0 97.0 243.2 16.9 56.0 300.0 30.0 200.0 100.0 750.0 113.0 48.0 50.0 76.0 200.0 115.1 350.0 56.0 97.0 243.2 11 Aug 14 Dec 15 Jul 12 Sep 30 Sep 18 Oct 2 Nov 4 Nov 7 Dec 14 Dec 3 Nov 3 Nov 15 Nov 11 Oct 22 Dec 170.0 170.0 320.0 10.0 20.0 20.0 370.0 320.0 10.0 20.0 190.0 540.0 5 Jul 20 Sep 28 Jul 25 Apr 24.3 60.0 100.0 100.0 36.9 321.2 55.0 5.0 5.0 18.0 270.0 60.0 110.0 523.0 55.0 24.3 5.0 5.0 18.0 270.0 60.0 100.0 100.0 36.9 60.0 110.0 844.2 14 Jul 19 Dec 26 Sep 22 Nov 31 Oct 22 Dec 17 Mar 29 Mar 13 Dec 16 Dec 31 Mar 12 Dec aDF total Date approved
= nil, ADF = Asian Development Fund, BAN = Bangladesh, IND = India, LAO = Lao Peoples Democratic Republic, MON = Mongolia, NEP = Nepal, OCR = ordinary capital resources, PAK = Pakistan, PRC = Peoples Republic of China, VIE = Viet Nam.
242
Statistical Annexes CONTINUED

$ Million OcR PRC PRC PRC SRI THA UZB UZB VIE VIE Shandong Energy Efficiency and Emission Reduction Guangdong Energy Efficiency and Environment Improvement Investment Program Tranche 3 Hebei Energy Efficiency Improvement and Emission Reduction Sustainable Power Sector Support Nong Saeng Natural Gas Power Kandym Gas Field Development Advanced Electricity Metering O Mon IV Combined Cycle Power Plant Power Transmission Investment Program Tranche 1 Subtotal FinancE ARM ARM ARM ARM CAM INO Small and Medium-Sized Enterprise Finance Program (ACBA Credit Agricole Bank) Small and Medium-Sized Enterprise Finance Program (Ameriabank) Small and Medium-Sized Enterprise Finance Program (Ardshininvestbank) Small and Medium-Sized Enterprise Finance Program (Inecobank) Third Financial Sector Program Subprogram 1 Indonesia Eximbank Subtotal hEaLth anD sOciaL pROtEctiOn PNG Rural Primary Health Services Delivery Subtotal pUBLic sEctOR ManagEMEnt INO LAO PHI VIE Second Local Government Finance and Governance Reform Program Subprogram 2 Second Private Sector and Small and Medium-Sized Enterprises Development Program Subprogram 1 Governance in Justice Sector Reform Program Subprogram 2 Support for the Implementation of the Poverty Reduction Program V Subprogram 3 Subtotal tRanspORt anD ict ARM AZE BAN CAM COO GEO Sustainable Urban Development Investment Program Tranche 1 Road Network Development Program Tranche 3 Railway Sector Investment Program Tranche 2 Provincial Roads Improvement Avatiu Port Development (Supplementary) Road Corridor Investment Program Tranche 3 (Additional Financing) 200.0 150.0 4.7 140.0 48.6 52.0 48.6 200.0 150.0 52.0 4.7 140.0 9 May 14 Dec 22 Dec 16 Dec 24 Mar 22 Dec 200.0 300.0 500.0 5.0 24.8 29.8 200.0 5.0 300.0 24.8 529.8 4 Oct 4 Oct 16 Dec 9 Dec 20.0 20.0 20.0 20.0 30 Sep 20.0 20.0 15.0 10.0 100.0 165.0 15.0 15 0 20.0 20.0 15.0 10.0 15.0 100.0 180.0 22 Nov 22 Nov 22 Nov 22 Nov 29 Nov 25 Mar 100.0 42.9 100.0 110.0 170.0 100.0 150.0 309.9 120.5 3,858.8 aDF 10.0 82.9 total 100.0 42.9 100.0 120.0 170.0 100.0 150.0 309.9 120.5 3,941.7 Date approved 18 Aug 5 Sep 14 Dec 27 Jan 7 Jul 1 Sep 19 Sep 24 Nov 29 Dec
= nil, ADF = Asian Development Fund, ARM = Armenia, AZE = Azerbaijan, BAN = Bangladesh, CAM = Cambodia, COO = Cook Islands, GEO = Georgia, ICT = information and communication technology, INO = Indonesia, LAO = Lao Peoples Democratic Republic, OCR = ordinary capital resources, PHI = Philippines, PNG = Papua New Guinea, PRC = Peoples Republic of China, SRI = Sri Lanka, THA = Thailand, UZB = Uzbekistan, VIE = Viet Nam.
243
Asian Development Bank Annual Report 2011 CONTINUED

$ Million OcR IND IND IND IND INO KAZ Madhya Pradesh State Roads III Bangalore Metro Rail Transit System North Eastern State Roads Investment Program Tranche 1 Railway Sector Investment Program Tranche 1 Regional Roads Development CAREC Transport Corridor I (Zhambyl Oblast Section) [Western EuropeWestern Peoples Republic of China International Transit Corridor] Investment Program Tranche 4 CAREC Corridor 1 (Taraz Bypass) CAREC Corridor 1 (BishkekTorugart Road) Project 3 Western Regional Road Corridor Investment Program Tranche 1 Road Improvement and Institutional Development Bemobile Expansion Bridge Replacement for Improved Rural Access Sector Lae Port Development (Additional Financing) Railway Energy Efficiency and Safety Enhancement Investment Program Tranche 3 Xian Urban Road Network Improvement National Highways Sector (Additional Financing) NorthSouth Railway CAREC Corridor 2 Road Investment Program Tranche 2 Second CAREC Corridor 2 Road Investment Program Tranche 1 CAREC Corridor 6 (MarakandKarshi) Railway Electrification Interisland Shipping Support Ha Noi Metro Rail System (Line 3: NhonHa Noi Station Section) Transport Connections in Northern Mountainous Provinces Subtotal watER sUppLy anD OthER MUnicipaL inFRastRUctURE anD sERVicEs AZE BAN GEO GEO IND IND IND KIR NEP PRC Water Supply and Sanitation Investment Program Tranche 2 Khulna Water Supply Urban Services Improvement Investment Program Tranche 1 Urban Services Improvement Investment Program Tranche 2 Uttarakhand Urban Sector Development Investment Program Tranche 2 Infrastructure Development Investment Program for Tourism Tranche 2 North Eastern Region Capital Cities Development Investment Program Tranche 2 South Tarawa Sanitation Improvement Sector Kathmandu Valley Water Supply Improvement Municipal Water Distribution Infrastructure Development 300.0 100.0 43.8 72.0 100.0 75.0 80.0 40.0 7.6 80.0 300.0 75.0 80.0 40.0 100.0 43.8 72.0 7.6 80.0 100.0 22 Dec 14 Jun 12 Apr 23 Nov 3 Nov 15 Dec 16 Dec 17 Oct 16 Sep 25 Apr 300.0 250.0 74.8 150.0 180.0 aDF total 300.0 250.0 74.8 150.0 180.0 Date approved 10 Mar 31 Mar 22 Aug 18 Oct 24 Nov
112.0 95.0 62.0 40.0 40.0 85.0 250.0 150.0 85.0 125.0 240.0 130.0 100.0 293.0 3,256.5
55.0 45.0 50.0 4.1 10.8 80.0 345.6
112.0 95.0 55.0 45.0 62.0 40.0 90.0 89.1 250.0 150.0 85.0 125.0 240.0 130.0 100.0 10.8 293.0 80.0 3,602.1
21 Feb 7 Dec 7 Jun 22 Dec 15 Dec 25 Mar 28 Sep 10 Nov 20 Jul 8 Nov 5 Aug 15 Mar 31 Mar 2 Sep 28 Sep 30 Nov 29 Mar 30 Sep
KAZ KGZ MON PHI PNG PNG PNG PRC PRC SRI TKM UZB UZB UZB VAN VIE VIE
= nil, ADF = Asian Development Fund, AZE = Azerbaijan, BAN = Bangladesh, CAREC = Central Asia Regional Economic Cooperation, GEO = Georgia, IND = India, INO = Indonesia, KAZ = Kazakhstan, KGZ = Kyrgyz Republic, KIR = Kiribati, MON = Mongolia, NEP = Nepal, OCR = ordinary capital resources, PHI = Philippines, PNG = Papua New Guinea, PRC = Peoples Republic of China, SRI = Sri Lanka, TKM = Turkmenistan, UZB = Uzbekistan, VAN = Vanuatu, VIE = Viet Nam.
244
Statistical Annexes CONTINUED

$ Million OcR SRI SRI UZB VAN VIE Secondary Towns and Rural Community-Based Water Supply and Sanitation (Supplementary) Local Government Enhancement Sector Water Supply and Sanitation Services Investment Program Tranche 3 Port Vila Urban Development Water Sector Investment Program Tranche 1 Subtotal MULtisEctOR BHU IND IND INO PAK PRC PRC PRC SAM UZB VIE Urban Infrastructure Assam Urban Infrastructure Investment Tranche 1 Second India Infrastructure Project Financing Facility Tranche 3 Urban Sanitation and Rural Infrastructure Support to the PNPM Mandiri Flood Emergency Reconstruction Xinjiang Altay Urban Infrastructure and Environment Improvement Gansu Tianshui Urban Infrastructure Development Guangxi Beibu Gulf Cities Development Economic Recovery Support Program Subprogram 2 Housing for Integrated Rural Development Investment Program Tranche 1 Comprehensive Socioeconomic Urban Development in Viet Tri, Hung Yen, and Dong Dang Subtotal tOtaL 81.0 240.0 100.0 600.0 100.0 100.0 200.0 200.0 1,621.0 10,650.6 19.9 50.0 10.8 70.0 150.7 1,954.9 19.9 81.0 240.0 100.0 650.0 100.0 100.0 200.0 10.8 200.0 70.0 1,771.7 12,605.5 29 Nov 18 Nov 1 Dec 5 Aug 30 Mar 23 Jun 29 Jun 2 Dec 7 Nov 9 Sep 8 Dec 4.3 138.0 758.1 aDF 13.3 59.0 58.0 5.0 417.9 total 17.6 59.0 58.0 5.0 138.0 1,176.0 Date approved 8 Jun 29 Sep 7 Dec 13 Dec 7 Jun
= nil, ADF = Asian Development Fund, BHU = Bhutan, IND = India, INO = Indonesia, OCR = ordinary capital resources, PAK = Pakistan, PNPM = Program Nasional Pemberdayaan Masyarakat, PRC = Peoples Republic of China, SAM = Samoa, SRI = Sri Lanka, UZB = Uzbekistan, VAN = Vanuatu, VIE = Viet Nam.
245

Statistical Annex 3a SECTORAL DISTRIBUTION OF LOANS,a 2011, 19672011
2011 Loans OcR sector Agriculture and Natural Resources Education Energy Finance Health and Social Protection Industry and Trade Public Sector Management Transport and ICT Water Supply and Other Municipal Infrastructure and Services Multisector tOtaLc no. of Loans 5 1 24 5 2 23 7 8 75 $ Million 321.2 170.0 3,858.8 165.0 500.0 3,256.5 758.1 1,621.0 10,650.6 no. of Loans 7 4 3 1 1 2 8 9 4 39 aDF $ Million 523.0 370.0 82.9 15.0 20.0 29.8 345.6 417.9 150.7 1,954.9 no. of projectsb 12 4 24 3 1 4 29 15 12 104 total $ Million 844.2 540.0 3,941.7 180.0 20.0 529.8 3,602.1 1,176.0 1,771.7 12,605.5 cumulative as of 2011 no. of projectsb 531 150 381 271 69 107 88 440 259 127 2,423 $ Million 20,468.4 6,718.8 36,899.1 20,517.7 3,852.9 4,588.0 14,510.1 44,725.3 15,236.8 12,186.5 179,703.7 % 11 4 21 11 2 3 8 25 8 7 100
= nil, ADF = Asian Development Fund, ICT = information and communication technology, OCR = ordinary capital resources. a Includes nonsovereign loans. Excludes cofinancing. b A project with multiple loans is counted as one project. c Totals may not add up due to rounding.
Statistical Annex 3b SECTORAL DISTRIBUTION OF GRANTS,a 2011, 19672011

2011 grants aDF sector Agriculture and Natural Resources Education Energy Finance Health and Social Protection Industry and Trade Public Sector Management Transport and ICT Water Supply and Other Municipal Infrastructure and Services Multisector tOtaLc no. of grants 2 3 2 3 3 2 16 $ Million 27.0 107.0 62.0 5.0 60.0 318.7 17.1 596.8 Other special Funds no. of grants 2 1 1 1 2 7 $ Million 6.0 1.3 3.0 0.8 6.0 17.1 Other sources no. of grants 2 5 1 3 1 4 5 2 23 $ Million 7.1 62.4 2.0 42.2 1.9 56.6 53.4 4.7 230.3 total no. of projectsb 6 3 7 2 4 1 3 8 7 4 45 $ Million 40.1 107.0 125.7 7.0 45.2 1.9 60.0 376.1 70.5 10.7 844.1 cumulative as of 2011 no. of projectsb 100 46 40 22 58 9 24 57 38 49 443 $ Million 966.2 939.1 776.3 125.5 390.2 35.0 379.1 1,921.7 359.6 1,194.5 7,087.1 % 14 13 11 2 6 0.5 5 27 5 17 100
= nil, ADF = Asian Development Fund, ICT = information and communication technology. a Refers to grant-financed projects, and includes contractual cofinancing. Excludes cofinancing not administered by ADB. b A project with multiple grants is counted as one project. c Totals may not add due to rounding.
246
Statistical Annexes
Statistical Annex 4a PROJECTS INVOLVING OFFICIAL COFINANCING,a 2011 ($ million)
Official cofinancing project name cEntRaL anD wEst asia DVA cofinancingb Non-DVA cofinancingc aDB 232.00 grants 65.40 65.40 Loans source of cofinancing
afghanistan Energy Sector Development Investment Program Tranche 3 Transport Network Development Investment Program Tranche 1 East asia DVA cofinancing Non-DVA cofinancing
43.00 189.00 100.00
12.40 20.00 33.00 5.10 5.10
Denmark United Kingdom Afghanistan Infrastructure Trust Fund
china, peoples Republic of Forestry and Ecological Restoration in Three Northwest Provinces paciFic
100.00 59.14
5.10 126.73 124.53 2.20 13.95 40.00 1.20c 1.00c 9.00 9.00 9.00
Global Environment Facility
DVA cofinancing Non-DVA cofinancing
Kiribati South Tarawa Sanitation Improvement Sector papua new guinea Rural Primary Health Services Delivery
7.56 20.00
Australia Australia Japan International Cooperation Agency (JICA) OPEC Fund for International Development (OFID) World Health Organization Australia Australia World Bank New Zealand Australia 712.00 712.00 Germany Japan Fund for Poverty Reduction (JFPR) JICA Australia Canada European Union JICA Sweden United Kingdom United Nations Childrens Fund (UNICEF) World Bank
solomon islands Second Road Improvement (Sector) (Supplementary) tonga Nukualofa Urban Sector Development TongaFiji Submarine Cable Vanuatu Interisland Shipping Support Port Vila Urban Development sOUth asia DVA cofinancing Non-DVA cofinancing 6.06 9.70 10.82 5.00 1,131.30
4.04 6.44 16.50 12.60 31.00 762.77 762.77 14.86 2.00 35.00 65.00 70.00 30.00 45.00 190.00 0.50
Bangladesh City Region Developmentd Institutional Support for Migrant Workers Remittance Khulna Water Supply Third Primary Education Development
120.00 75.00 320.00
184.00
300.00
= nil, DVA = direct value-added, OPEC = Organization of the Petroleum Exporting Countries. a List excludes technical assistance projects. See Statistical Annex 24 for technical assistance projects with cofinancing. b DVA cofinancing: cofinancing with contractual or collaborative arrangements between ADB and financing partners. c Non-DVA cofinancing: cofinancing does not involve direct ADB support or collaborative arrangements. It is recorded for overall statistical purposes only. d Anchor project was approved in prior year(s) with cofinancing arranged this year.
247
CONTINUED
Official cofinancing project name Power System Efficiency Improvement PublicPrivate Infrastructure Development Facilityd Bhutan Advancing Economic Opportunities of Women and Girls nepal Decentralized Rural Infrastructure and Livelihood (Additional Financing) Electricity Transmission Expansion and Supply Improvement Establishing Women and Children Service Centers (Supplementary) Reducing Child Malnutrition through Social Protection School Sector Program aDB 300.00 1.30 grants 2.00 Loans 200.00 source of cofinancing Islamic Development Bank (IsDB) Asian Clean Energy Fund under the Clean Energy Financing Partnership Facility
1.95
JFPR
25.00 75.00
7.06 25.00 0.20 2.00 15.60 17.90 47.90 70.00 13.20 22.40 4.00 1.00 72.50 2.70
20.00
OFID Switzerland Norway United Kingdom JFPR Australia Denmark European Union Fast Track Initiative Finland Norway United Kingdom UNICEF World Bank JFPR
65.00
Support for Targeted and Sustainable Development Programs for Highly Marginalized Groups sri Lanka Improving Community-Based Rural Water Supply and Sanitation in Post-Conflict Areas of Jaffna and Kilinochchi National Highways Sectord Regional Improving Gender-Inclusive Access to Clean and Renewable Energy in Bhutan, Nepal, and Sri Lanka sOUthEast asia DVA cofinancing Non-DVA cofinancing 2,009.74
2.00 150.00 8.00
JFPR OFID
3.00 13.68 13.68 1,586.52 1,586.52
JFPR
cambodia Improving Market Access for the Poor in Central Cambodia Provincial Roads Improvement indonesia Regional Roads Development philippines Road Improvement and Institutional Development Viet nam Comprehensive Socioeconomic Urban Development in Viet Tri, Hung Yen, and Dong Dang
52.00
1.90 7.00
10.00
JFPR Pilot Program for Climate Resilience under the Strategic Climate Fund IsDB OFID
180.00 62.00
65.00 30.00
70.00
13.52
The ExportImport Bank of Korea (KEXIM), Republic of Korea
= nil, DVA = direct value-added. a List excludes technical assistance projects. See Statistical Annex 24 for technical assistance projects with cofinancing. b DVA cofinancing: cofinancing with contractual or collaborative arrangements between ADB and financing partners. c Non-DVA cofinancing: cofinancing does not involve direct ADB support or collaborative arrangements. It is recorded for overall statistical purposes only. d Anchor project was approved in prior year(s) with cofinancing arranged this year.
248
Statistical Annexes
CONTINUED
Official cofinancing project name Ha Noi Metro Rail System Project (Line 3: NhonHa Noi Station Section) Mong Duong 1 Thermal Power Tranche 2d O Mon IV Combined Cycle Power Plant Phuoc Hoa Water Resources (Supplementary) Transport Connections in Northern Mountainous Provinces Regional Developing Sustainable Alternative Livelihoods in Coastal Fishing Communities in the Coral Triangle tOtaL DVa cofinancing non-DVa cofinancing aDB 293.00 902.85 309.89 60.00 80.00 2.78 grants Loans 143.00 325.00 95.00 510.00 370.00 25.00 source of cofinancing Agence Franaise de Dveloppement (AFD), France Direction Gnrale du Trsor, France European Investment Bank KEXIM Germany AFD Nordic Development Fund
2.00 973.68 971.48 2.20 2,307.52 2,307.52
JFPR
= nil, DVA = direct value-added. a List excludes technical assistance projects. See Statistical Annex 24 for technical assistance projects with cofinancing. b DVA cofinancing: cofinancing with contractual or collaborative arrangements between ADB and financing partners. c Non-DVA cofinancing: cofinancing does not involve direct ADB support or collaborative arrangements. It is recorded for overall statistical purposes only. d Anchor project was approved in prior year(s) with cofinancing arranged this year.
249

Statistical Annex 4b PROJECTS INVOLVING COMMERCIAL COFINANCING, 2011 ($ million)
project name cEntRaL anD wEst asia DVA cofinancinga Non-DVA cofinancingb aDB 1,255.29 commercial cofinancing 1,940.26 1,911.55 28.72 source of cofinancing
azerbaijan Garadagh Cement Expansion and Energy Efficiency Improvement Project
27.00
143.58
European Bank for Reconstruction and Development, Deutsche Investitions-und Entwicklungsgesellschaft (DEG), and OPEC Fund for International Development Holcim Auslandsbeteiligung GmBH ExportImport Bank of Korea, Islamic Development Bank, International Finance Corporation (IFC) IFC IFC, ECO Trade and Development Bank, Habib Bank Limited Various international banks and financial institutions Islamic Development Bank Various international banks and financial institutions
Garadagh Cement Expansion and Energy Efficiency Improvement Project pakistan Patrind Hydropower Project Uch II Power Project Zorlu Enerji Power Project Transactions under ADBs Trade Finance Program Uzbekistan Kandym Gas Field Development Project Transactions under ADBs Trade Finance Program East asia 97.00 100.00 36.80 659.57
28.72 230.00 99.98 70.05 1,152.17
300.00 34.92 602.19
100.00 115.77 487.60 125.39 362.21 25.39
Mongolia Transactions under ADBs Trade Finance Program china, peoples Republic of Municipal Water Distribution Infrastructure Development Project Jilin Wind Power Project Xian Urban Road Network Improvement Project Gansu Tianshui Urban Infrastructure paciFic DVA cofinancing Non-DVA cofinancing papua new guinea and solomon islands Bemobile Expansion Project sOUth asia DVA cofinancing Non-DVA cofinancing
12.19
Various international banks and financial institutions
100.00 240.00 150.00 100.00 49.00
100.00 60.00 234.01 68.20 40.00 40.00 40.00 390.30 390.30 213.46
Commercial lenders under B loan IFC China Construction Bank China Development Bank
49.00 258.90
Bank of South Pacific Limited
Bangladesh Transactions under ADBs Trade Finance Program
120.13
Various international banks and financial institutions
= nil, DVA = direct value-added, OPEC = Organization of the Petroleum Exporting Countries. a In 2011, ADB clarified the definition of direct value-added (DVA) commercial cofinancing by providing detailed criteria for qualification of DVA cofinancing. Apart from B loans, DVA cofinancing now includes (i) a revised calculation for parallel loans, the debt portion of project costs financed by third parties provided that ADBs presence has been instrumental in mobilizing the third-party debt evidenced by a common terms agreement, common security arrangement, or a memorandum of understanding or other framework agreement; (ii) cofinancing for TFP transactions, including the amount of risk assumed by partner banks and risk distribution partners; (iii) third-party debt (net of guarantees) provided by ADB, unfunded risk participation by banks rated A and AA, and amounts reinsured with entities rated A and AA; (iv) parallel guarantees, third-party debt guaranteed by a co-guarantor of ADB, provided that ADBs presence has been instrumental in mobilizing additional capacity by other guarantors; and (v) parallel equity investments in funds where ADB acts as a general partner in the fund. b Recorded for statistical purposes only.
250
Statistical Annexes
CONTINUED
commercial cofinancing 3.05
project name Bhutan Transactions under ADBs Trade Finance Program india Dahanu Solar Power Project nepal Transactions under ADBs Trade Finance Program sri Lanka Transactions under ADBs Trade Finance Program sOUthEast asia
aDB 2.01
source of cofinancing Various international banks and financial institutions ExportImport Bank of the United States Various international banks and financial institutions Various international banks and financial institutions
48.00 12.93
65.00 15.83
75.82 490.94
92.96 1,776.99 1,776.99 100.00 54.79
indonesia Indonesia Eximbank Transactions under ADBs Trade Finance Program philippines Transactions under ADBs Trade Finance Program thailand Nong Saeng Natural Gas Power Project
100.00 60.79
ANZ, Bank of Nova Scotia, Sumitomo Mitsui Banking Corporation, Wells Fargo Bank Various international banks and financial institutions Various international banks and financial institutions Japan Bank for International Cooperation, Mizuho Corporate Bank, Siam Commercial Bank, and Karsikorn Public Company Limited (Onshore) Various international banks and financial institutions
26.70
26.70
170.00
914.77
Viet nam Transactions under ADBs Trade Finance Program
133.45
680.73
tOtaL DVa cofinancing non-DVa cofinancing
2,656.32
4,635.16 4,204.23 430.93
= nil, DVA = direct value-added.
251

Statistical Annex 5a LOAN DISBURSEMENTS, 2010 and 2011 (amounts in $ million)
2010 % of total OcR
47 4 51 24 14 11 100
OcR
Projecta Nondevelopment Finance Institution Development Finance Institution Total Project Loans Policy-Based Lendingb Sectorc Nonsovereignd tOtaLe 2,793 246 3,038 1,410 823 673 5,944
aDF
969 11 980 455 136 1,571
% of total aDF
62 1 62 29 9 100
total
3,762 256 4,018 1,865 959 673 7,516
% of total Disbursements
50 3 53 25 13 9 100
2011 % of total OcR

57 7 64 15 10 11 100
OcR
Projecta Nondevelopment Finance Institution Development Finance Institution Total Project Loans Policy-Based Lendingb Sectorc Nonsovereignd tOtaLe 3,616 434 4,051 966 604 715 6,337
aDF
1,014 55 1,069 245 71 1,385
% of total aDF
73 4 77 18 5 100
total
4,630 490 5,120 1,211 676 715 7,722
60 6 66 16 9 9 100
% change (2011/2010) OcR

29 77 33 (31) (27) 6 7
aDF
5 415 9 (46) (48) NA (12)
total
23 91 27 (35) (30) 6 3
= nil, ( ) = negative, NA = not applicable, ADF = Asian Development Fund, OCR = ordinary capital resources. a A project loan is a loan provided to finance specific projects. ADB uses development finance institutions in its developing member countries (DMCs) as vehicles to finance small to medium-sized projects in the private sector. b Policy-based lending formerly named program loan is a loan provided to support DMCs efforts to improve the policy, institutional, and investment environment of sector development. It helps meet short-term costs that policy adjustments entail. c A sector loan is provided to develop a specific sector or subsector. It finances a large number of subprojects in a single sector or subsector. d Includes nonsovereign public sector loans and excludes equity investments. e Numbers may not add up because of rounding.
252
Statistical Annexes
Statistical Annex 5b GRANT DISBURSEMENTS, 2010 and 2011 (amounts in $ million)
2010 % of total aDF
95.8 4.2 100.0
aDF
Project Policy-Basedb tOtaL 342.7 15.0 357.7
Other special Fundsa

101.8 101.8
% of total Other special Fundsa

100.0 100.0
total
444.5 15.0 459.5
96.7 3.3 100.0
2011 % of total aDF

73.7 26.3 100.0
aDF
Project Policy-Basedb tOtaL 375.6 134.3 509.9

34.3 34.3
% of total Other special Fundsa

100.0 100.0
% change (2011/2010) % of total Disbursements

75.3 24.7 100.0
total
409.8 134.3 544.1
aDF
9.6 795.3 42.5

(66.4) NA (66.4)
total
(7.8) 795.3 18.4
= nil, ( ) = negative, ADF = Asian Development Fund, NA = not applicable. a Includes grants funded by Asian Tsunami Fund (ATF), Pakistan Earthquake Fund (PEF), Climate Change Fund (CCF), and Asia Pacific Disaster Response Fund (APDRF). b Formerly named program grants.
Statistical Annex 6a POLICY-BASED LOAN DISBURSEMENTS,a 2011 (amounts in $ million)

country
Afghanistan Bangladesh Bhutan Cambodia Cook Islands Georgia India Indonesia Lao Peoples Democratic Republic Maldives Marshall Islands Nepal Pakistan Palau Philippines Thailand Samoa Sri Lanka Viet Nam tOtaL
OcR
60.00 400.00 200.00 6.40 200.00 100.00 966.40
aDF
2.80 44.73 41.45 8.00 25.35 3.47 118.75 244.55
total
2.80 44.73 41.45 60.00 400.00 8.00 25.35 200.00 9.87 200.00 100.00 118.75 1,210.95
= nil, ADF = Asian Development Fund, OCR = ordinary capital resources. a Refers to formerly named program loans.
253

Statistical Annex 6b POLICY-BASED GRANT DISBURSEMENTS,a 2011 (amounts in $ million)
country Afghanistan Bangladesh Bhutan Cambodia China, Peoples Republic of India Indonesia Kyrgyz Republic Lao Peoples Democratic Republic Maldives Mongolia Nepal Pakistan Papua New Guinea Philippines Samoa Solomon Islands Sri Lanka Tajikistan Timor-Leste Tonga Tuvalu Viet Nam tOtaL aDF 2.0 24.0 10.0 66.3 5.0 20.0 5.0 2.0 134.3 Other special Fundsb total 2.0 24.0 10.0 66.3 5.0 20.0 5.0 2.0 134.3
= nil, ADF = Asian Development Fund. a Refers to formerly named program grants. b Includes grants funded by Asian Tsunami Fund (ATF), Pakistan Earthquake Fund (PEF), Climate Change Fund (CCF), and Asia Pacific Disaster Response Fund (APDRF).
Statistical Annex 6c TRENDS IN POLICY-BASED LENDING AND ADF GRANT, 19992011

policy-Based Lending and aDF grant year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
ADF = Asian Development Fund.
project Loan and aDF grant $ Million 3,239.57 4,480.59 3,755.69 3,955.75 4,900.31 3,917.64 4,858.75 4,331.62 7,513.94 7,975.23 8,028.35 10,830.56 12,511.60 % 66 80 70 70 81 78 81 57 75 75 57 87 95
total $ Million 4,933.57 5,582.59 5,338.69 5,657.93 6,039.81 5,039.04 6,007.25 7,536.20 10,034.94 10,606.28 14,127.20 12,411.46 13,202.22
$ Million 1,694.00 1,102.00 1,583.00 1,702.18 1,139.50 1,121.40 1,148.50 3,204.58 2,521.00 2,631.05 6,098.85 1,580.90 690.62
% 34 20 30 30 19 22 19 43 25 25 43 13 5
254
Statistical Annexes
Statistical Annex 7 NONSOVEREIGN APPROVALS AND TOTAL PROJECT COSTS BY COUNTRY,a 2011 ($ million)
Equity investment

Loan
armenia Small and Medium-Sized Enterprise Finance Program Bangladesh Industrial Energy Efficiency Finance Program china, peoples Republic of Municipal Water Distribution Infrastructure Development Sino-Green Climate Investment Fund india Bangalore Metro Rail Transit System Solar Power Generation National Grid Improvement Project Dahanu Solar Power Project Climatech Venture Capital Funds VenturEast Life Fund IIIb indonesia Indonesia Eximbank Lao peoples Democratic Republic Nam Ngum 3 Hydropower Project pakistan Patrind Hydropower Project Foundation Wind Energy I and II Projects thailand Nong Saeng Natural Gas Power Project Uzbekistan Kandym Gas Field Development Project Regional Bemobile Expansion Projectb Climatech Venture Capital Funds Aloe Environment Fund IIIc Aureos South East Asia Fund IId tOtaL 65.00 30.00
total aDB Funds

65.00 30.00
complementary Loan (B Loan)

partial credit guarantee

political Risk guarantee

total aDB approvals

65.00 30.00
project cost/ Fund size

65.00 30.00
100.00 250.00 250.00 48.00 100.00 350.00 97.00 170.00 100.00 40.00 1,600.00
25.00 20.00 9.00 20.00 15.00 89.00
100.00 25.00 250.00 250.00 48.00 20.00 100.00 350.00 97.00 170.00 100.00 49.00 20.00 15.00 1,689.00
100.00 100.00 200.00
150.00 66.61 216.61
200.00 200.00
200.00 25.00 250.00 150.00 250.00 48.00 20.00 200.00 350.00 97.00 66.61 170.00 300.00 49.00 20.00 15.00 2,305.61
394.54 200.00 2,665.00 429.00 2,250.10 147.50 200.00 200.00 1,125.00 436.00 266.41 1,567.00 447.00 90.00 146.21 180.00 10,838.76
= nil. a Includes projects processed by the Private Sector Operations Department and various regional operations departments of ADB. b The project covers Papua New Guinea and Solomon Islands. c Counted as one project. d The fund will invest in a diversified and balanced portfolio of small and medium-sized enterprises in various developing member countries.
255

Statistical Annex 8 NONSOVEREIGN APPROVALS AND TOTAL PROJECT COSTS BY SECTOR,a 2011 ($ million)
Equity investment
15.00 65.00 9.00 89.00
sector
Energy Finance Multisector Transport and ICT Water and Other Municipal Infrastructure and Services tOtaL
Loan
1,045.00 165.00 290.00 100.00 1,600.00
total aDB Funds

1,045.00 180.00 65.00 299.00 100.00 1,689.00

100.00 100.00 200.00

216.61 216.61

200.00 200.00
total aDB approvals

1,461.61 280.00 65.00 299.00 200.00 2,305.61
total project cost

6,698.01 445.00 546.21 2,755.00 394.54 10,838.76
ICT = information and communication technology. a Includes projects processed by the Private Sector Operations Department and various regional operations departments of ADB.
Statistical Annex 9 NONSOVEREIGN APPROVALS BY YEAR,a, b 19832011 (amounts in $ million)

no. of projectsc
2 1 3 4 7 12 16 17 10 4 8 10 7 7 6 6 3 9 6 6 7 14 13 18 21 12 11 19 17 266
year
1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 tOtaL
Loan
6.46 20.50 58.00 95.70 78.85 156.80 50.00 182.10 68.00 98.50 45.00 136.12 101.50 152.00 37.50 110.00 122.00 92.50 513.02 450.00 650.27 1,296.58 437.87 1,034.70 1,600.00 7,593.97
Equity investmentd
2.96 0.42 3.40 6.01 27.61 35.67 67.59 35.94 20.52 5.42 20.70 48.70 99.41 80.15 49.50 39.44 7.40 77.65 30.36 25.53 35.65 164.37 175.50 230.50 79.75 103.08 220.00 235.00 89.00 2,017.23
total aDB Funds

2.96 0.42 3.40 12.47 48.11 93.67 163.29 114.79 177.32 55.42 202.80 48.70 167.41 178.65 94.50 175.56 108.90 229.65 67.86 135.53 157.65 256.87 688.52 680.50 730.02 1,399.66 657.87 1,269.70 1,689.00 9,611.20

5.00 51.10 24.00 81.50 19.30 5.83 91.50 151.08 61.50 45.00 170.00 330.00 200.00 425.00 276.20 320.00 200.00 2,457.01

65.00 18.40 109.80 251.00 500.00 216.61 1,160.81

60.00 10.00 15.00 200.00 285.00
tFp
150.00 850.00 1,000.00
grant
total aDB approvals

2.96 0.42 3.40 12.47 53.11 93.67 214.39 138.79 177.32 136.92 222.10 48.70 173.24 270.15 94.50 326.64 170.40 274.65 67.86 195.53 542.65 266.87 706.92 1,135.30 1,181.02 1,824.66 1,784.07 2,091.70 2,305.61 14,516.02
total project cost

36.00 2.80 26.50 20.32 519.24 502.32 1,038.66 2,026.13 1,325.18 402.29 1,505.70 919.20 1,050.32 1,788.77 1,239.69 1,152.70 847.70 1,629.84 648.00 1,136.60 2,300.00 2,227.70 8,676.42 7,678.34 3,494.54 9,667.49 4,333.52 5,942.42 10,838.76 72,977.15
2.00 2.00
= data not applicable, TFP = Trade Finance Program. a Includes nonsovereign projects processed by the Private Sector Operations Department and various regional operations departments of ADB. Regional operations departments started nonsovereign operations in 2007. b Net of facilities cancelled in full before signing. c Supplementary approvals are not included in the cumulative count of projects. d Includes equity investments, lines of equity, and equity underwriting.
256
Statistical Annexes
Statistical Annex 10 NONSOVEREIGN APPROVALS BY COUNTRY,a, b 19832011 (amounts in $ million)
no. of projectsc
6 2 5 9 1 1 29 3 39 17 4 3 2 2 2 2 4 28 1 26 1 12 12 1 7 47 266
country
Afghanistan Armenia Azerbaijan Bangladesh Bhutan Cambodia China, Peoples Republic of Georgia India Indonesia Kazakhstan Korea, Republic of Lao Peoples Democratic Republic Malaysia Maldives Mongolia Nepal Pakistan Papua New Guinea Philippines Samoa Sri Lanka Thailand Uzbekistan Viet Nam Regional tOtaL
Loan
135.00 105.00 93.00 167.20 8.00 1,120.77 95.00 1,944.97 957.00 175.00 400.00 10.00 12.00 14.50 49.55 662.90 25.00 595.32 99.50 445.76 100.00 193.50 185.00 7,593.97
Equity investmentd
8.10 14.98 0.53 429.30 297.30 63.85 8.96 2.00 4.50 1.60 3.26 53.38 39.85 0.40 13.58 77.07 998.57 2,017.23
total aDB Funds

143.10 105.00 93.00 182.18 0.53 8.00 1,550.07 95.00 2,242.27 1,020.85 175.00 8.96 400.00 12.00 16.50 16.10 52.81 716.28 25.00 635.17 0.40 113.08 522.83 100.00 193.50 1,183.57 9,611.20
complementary partial Loan credit (B Loan) guarantee

30.00 20.00 1,342.70 230.00 388.50 5.83 129.90 113.58 170.00 26.50 2,457.01 107.00 400.00 9.80 200.00 175.61 18.40 250.00 1,160.81

25.00 200.00 60.00 285.00
tFp
1,000.00 1,000.00
grant
total aDB approvals

198.10 105.00 93.00 202.18 0.53 8.00 2,999.77 95.00 2,872.27 1,419.15 375.00 8.96 400.00 12.00 16.50 16.10 58.64 1,021.79 25.00 767.15 0.40 113.08 694.83 300.00 280.00 2,433.57 14,516.02
total project cost

650.70 238.00 553.00 920.36 0.79 32.00 10,277.96 195.00 20,975.30 8,172.02 925.00 288.00 2,575.00 29.24 37.50 50.00 218.03 4,339.52 85.30 4,284.72 1.60 543.48 5,032.68 447.00 1,495.00 10,609.95 72,977.15
2.00
2.00
= data not applicable, TFP = Trade Finance Program. a Includes nonsovereign projects processed by the Private Sector Operations Department and various regional operations departments of ADB. Regional operations departments started nonsovereign operations in 2007. b Net of facilities cancelled in full before signing. c Supplementary approvals are not included in the cumulative count of projects. d Includes equity investments, lines of equity, and equity underwriting.
257

Statistical Annex 11 NUMBER OF LOANS/GRANTS UNDER ADMINISTRATION, AND CLOSED IN 2011 (as of 31 December 2011)
cumulative no. of Effective Loansa 22 12 15 211 25 56 183 16 19 13 5 156 310 21 7 81 31 69 77 20 13 8 44 32 1 124 290 2 69 211 33 14 16 160 12 22 89 14 1 3 35 9 121 8 2,680 cumulative no. of Effective grantsb 17 2 6 22 3 1 4 13 22 1 13 25 4 1 2 4 7 6 10 1 3 3 1 4 2 177 no. of Loans under administrationa, c 12 9 13 55 7 16 88 3 4 9 91 28 8 2 7 12 7 2 9 17 29 2 20 13 3 40 5 6 1 24 2 63 3 610
country Afghanistan Armenia Azerbaijan Bangladesh Bhutan Cambodia China, Peoples Republic of Cook Islands Fiji Georgia Hong Kong, China India Indonesia Kazakhstan Kiribati Korea, Republic of Kyrgyz Republic Lao Peoples Democratic Republic Malaysia Maldives Marshall Islands Micronesia, Federated States of Mongolia Myanmar Nauru Nepal Pakistan Palau Papua New Guinea Philippines Samoa Singapore Solomon Islands Sri Lanka Taipei,China Tajikistan Thailand Timor-Leste Tonga Turkmenistan Tuvalu Uzbekistan Vanuatu Viet Nam Regional tOtaL
= nil. a Data include nonsovereign loans. b Includes only ADF and other ADB Special Funds. c Covers loans/grants that have been approved but still awaiting effectivity; excludes projects exclusively financed from other sources. d Covers sovereign lending.
258
Statistical Annexes
no. of grants under administrationb, c 15 2 6 15 3 1 11 21 13 26 3 1 2 2 5 5 8 1 4 3 3 1 151
no. of Loans closed in 2011d 2 1 5 7 4 1 4 9 4 1 2 3 11 1 2 5 2 2 3 6 75
no. of grants closed in 2011b 1 5 2 1 2 1 2 1 1 1 1 1 19
259

Statistical Annex 12 AMOUNT OF LOANS MADE EFFECTIVE, CONTRACTS AWARDED, AND DISBURSEMENTS (amounts in $ million; as of 31 December 2011)
cumulative contracts awardedb, c, d 418.16 87.58 478.17 7,484.12 208.08 784.92 19,004.76 38.25 235.32 224.60 94.50 15,305.55 12,044.48 877.17 16.00 1,860.33 443.95 1,001.47 1,403.98 94.78 40.47 37.20 449.46 387.64 1,619.57 9,560.33 661.94 4,905.82 118.44 144.44 50.15 3,775.32 91.14 316.81 3,186.19 41.17 2.58 3.95 1,096.40 29.04 5,013.58 1.60 93,639.37
country Afghanistan Armenia Azerbaijan Bangladesh Bhutan Cambodia China, Peoples Republic of Cook Islands Fiji Georgia Hong Kong, China India Indonesia Kazakhstan Kiribati Korea, Republic of Kyrgyz Republic Lao Peoples Democratic Republic Malaysia Maldives Marshall Islands Micronesia, Federated States of Mongolia Myanmar Nauru Nepal Pakistan Palau Papua New Guinea Philippines Samoa Singapore Solomon Islands Sri Lanka Taipei,China Tajikistan Thailand Timor-Leste Tonga Turkmenistan Tuvalu Uzbekistan Vanuatu Viet Nam Regionalg tOtaLh
cumulative net Effective Loansa, b 908.99 527.18 661.21 10,942.84 253.76 1,141.29 22,654.13 53.28 284.45 716.93 94.50 21,404.10 21,580.24 1,985.74 25.42 5,560.33 720.62 1,213.51 1,413.98 143.18 74.13 65.99 753.76 411.83 2.30 2,326.34 18,914.44 16.07 1,137.04 10,634.45 167.09 144.44 65.82 5,134.36 91.14 363.80 4,946.92 52.26 125.00 7.92 1,953.76 48.99 9,077.16 270.48 149,071.19
contracts awarded in 2011b, c, d 7.43 4.24 61.15 558.74 8.15 41.46 1,293.04 18.81 36.72 1,357.79 153.14 123.81 2.29 40.06 3.11 3.85 8.24 8.36 59.98 478.61 26.25 60.50 5.39 283.69 4.32 2.58 0.00 256.07 1,226.14 6,133.92
= nil or data not applicable, ( ) = negative, 0.00 = amount less than $50,000. a Net refers to effective loan amounts less cancellations. b The US dollar equivalent is in accordance with the exchange rate prevailing in ADB on 31 December 2011. c Data exclude nonsovereign loans and policy-based lending. d Contracts awarded for financial intermediation loans are based on the amount of subloan disbursements. e Data include sovereign and nonsovereign loans. f The cumulative disbursements may exceed the cumulative contracts awarded due to disbursements without contracts, e.g., interest during constructions, contingencies, and nonsovereign loans, which do not require procurement. g Includes the Revolving Credit Facility of Trade Finance Program of $127 million as of 31 December 2011. h Totals may not add up because of rounding.
260
Statistical Annexes
% of cumulative contracts awarded to cumulative net Effective Loansc 83.91 24.27 44.07 73.83 83.90 84.17 82.20 88.63 88.98 37.30 100.00 80.96 94.53 58.85 49.01 100.00 77.19 88.52 100.00 93.60 100.00 83.12 77.82 100.00 79.23 83.31 55.05 89.20 92.47 100.00 100.00 81.94 100.00 96.14 97.64 100.00 2.07 100.00 43.50 65.69 57.11 100.00 80.01
Disbursements in 2011e 42.97 63.92 136.75 412.76 28.98 75.31 1,697.72 9.15 21.38 67.54 1,544.52 701.89 293.53 0.76 39.28 14.32 6.99 6.32 14.12 76.21 594.76 9.87 20.55 283.76 9.76 271.84 19.19 287.15 (0.00) 113.40 792.73 64.47 7,721.93
cumulative Disbursementsf 779.29 238.14 330.14 8,805.92 218.12 979.30 18,063.78 47.36 235.87 437.07 94.50 16,959.83 20,922.61 1,545.35 14.46 5,560.32 623.27 1,209.01 1,413.98 117.24 74.13 54.54 667.34 411.83 2.30 1,933.54 16,812.65 9.87 794.46 10,104.77 149.96 144.44 65.82 3,994.98 91.14 347.20 4,526.89 52.26 7.92 855.13 48.99 4,951.45 258.48 124,955.66
% of cumulative Disbursements to cumulative net Effective Loans 85.73 45.17 49.93 80.47 85.95 85.81 79.74 88.89 82.92 60.96 100.00 79.24 96.95 77.82 56.90 100.00 86.49 99.63 100.00 81.89 100.00 82.64 88.54 100.00 100.00 83.12 88.89 61.42 69.87 95.02 89.75 100.00 100.00 77.81 100.00 95.44 91.51 100.00 100.00 43.77 100.00 54.55 95.56 83.82
261

Statistical Annex 13 AMOUNT OF GRANTS MADE EFFECTIVE, CONTRACTS AWARDED, AND DISBURSEMENTSa (amounts in $ million; as of 31 December 2011)
cumulative contracts awardedb 665.32 9.43 74.39 105.80 0.98 100.00 303.85 154.79 139.81 17.17 88.19 180.84 135.95 14.38 14.63 36.84 171.58 182.01 26.83 7.47 39.93 31.58 2,501.78
country Afghanistan Armenia Azerbaijan Bangladesh Bhutan Cambodia China, Peoples Republic of Cook Islands Fiji Georgia Hong Kong, China India Indonesia Kazakhstan Kiribati Korea, Republic of Kyrgyz Republic Lao Peoples Democratic Republic Malaysia Maldives Marshall Islands Micronesia, Federated States of Mongolia Myanmar Nauru Nepal Pakistan Papua New Guinea Philippines Samoa Singapore Solomon Islands Sri Lanka Taipei,China Tajikistan Thailand Timor-Leste Tonga Turkmenistan Tuvalu Uzbekistan Vanuatu Viet Nam Regional tOtaL
cumulative net Effective grants 1,499.08 11.30 105.33 258.37 7.20 100.00 303.85 241.65 348.76 17.17 174.72 628.18 146.00 15.00 6.00 24.51 56.12 207.75 429.56 3.00 61.89 31.00 3.24 45.57 32.04 4,757.29
contracts awarded in 2011b 352.83 0.07 45.72 21.68 0.37 65.91 30.10 55.73 76.30 3.60 1.13 2.49 18.04 5.91 142.48 8.89 0.03 2.04 0.01 833.34
= nil. Note: Totals may not add up because of rounding. a Includes only Asian Development Fund and other ADB Special Funds. b Excludes policy-based grants.
262
Statistical Annexes
% of cumulative contracts awarded to cumulative net Effective grantsb 46.10 83.48 74.89 46.47 13.63 100.00 100.00 67.55 45.28 100.00 59.26 45.91 94.74 95.88 59.68 79.89 82.59 52.82 43.35 35.59 87.63 98.55 58.99
Disbursements in 2011 77.88 0.71 12.95 49.96 0.67 5.32 64.13 56.88 0.07 15.57 132.59 12.74 2.89 3.00 3.62 14.51 13.45 55.31 2.99 7.08 2.00 4.79 5.01 544.14
cumulative Disbursements 342.03 6.63 37.98 131.63 0.87 100.00 303.85 132.08 142.50 17.17 53.35 361.59 129.24 13.24 6.00 10.57 26.23 171.81 114.27 14.49 14.28 3.24 38.99 30.99 2,203.04
% of cumulative Disbursements to cumulative net Effective grants 22.82 58.71 36.06 50.95 12.05 100.00 100.00 54.66 40.86 100.00 30.54 57.56 88.52 88.24 100.00 43.13 46.75 82.70 26.60 23.42 46.05 100.00 85.58 96.71 46.31
country Afghanistan Armenia Azerbaijan Bangladesh Bhutan Cambodia China, Peoples Republic of Cook Islands Fiji Georgia Hong Kong, China India Indonesia Kazakhstan Kiribati Korea, Republic of Kyrgyz Republic Lao Peoples Democratic Republic Malaysia Maldives Marshall Islands Micronesia, Federated States of Mongolia Myanmar Nauru Nepal Pakistan Papua New Guinea Philippines Samoa Singapore Solomon Islands Sri Lanka Taipei,China Tajikistan Thailand Timor-Leste Tonga Turkmenistan Tuvalu Uzbekistan Vanuatu Viet Nam Regional tOtaL
263

Statistical Annex 14 NUMBER OF PROJECTS UNDER ADMINISTRATION, PROJECTS AT RISK, COMPLETED, AND PROJECT COMPLETION REPORTS (PCRs)/ EXTENDED ANNUAL REVIEW REPORTS (XARRs)/PROJECT/PROGRAM PERFORMANCE EVALUATION REPORTS (PPERs) CIRCULATED (as of 31 December 2011)
no. of projectsa, b under administration 27 9 11 53 12 27 90 2 3 8 92 33 8 2 12 29 6 2 2 30 42 29 1 14 18 4 5 41 10 7 5 3 1 21 2 65 16 742 no. of Effective projects at Riskc 2 2 1 4 3 1 1 4 2 1 3 2 1 1 3 2 2 1 3 1 1 3 6 1 51 no. of projectsb, d, e completed in 2011 1 1 5 1 4 4 1 2 2 1 1 2 1 1 5 1 3 6 42
= nil. a Includes policy-based lending/grants and nonsovereign loans, which have been approved but are still awaiting effectivity; excludes projects/loans exclusively financed from other sources. b Supplementary loans/grants are not counted as separate projects. c The portfolio performance rating system is applicable only to sovereign investment projects. d Covers sovereign lending. e Projects which were physically completed in 2011. f Regional projects with loans/grants to multiple countries are reported separately.
264
Statistical Annexes
cumulative no. of pcRs/xaRRs circulatedf 6 2 6 133 17 26 98 13 11 3 5 60 213 13 5 61 22 52 56 11 10 5 23 26 1 90 158 39 144 22 7 15 91 1 12 59 6 16 2 16 8 44 9 1,617
no. of pcRs/xaRRs circulated in 2011f 4 1 4 5 7 7 1 5 6 3 3 5 3 6 7 1 4 1 5 1 4 4 4 91
no. of ppERs circulated in 2011f 2 1 1 1 3 2 1 1 1 13
265

Statistical Annex 15 TECHNICAL ASSISTANCE GRANT APPROVALS BY COUNTRY AND REGIONAL ACTIVITIES,a, b 19672011, 2010, 2011 (amounts in $ thousand)
19672011 country
Afghanistan Armenia Azerbaijan Bangladesh Bhutan Brunei Darussalam Cambodia China, Peoples Republic of Cook Islands Fiji Georgia India Indonesia Kazakhstan Kiribati Korea, Republic of Kyrgyz Republic Lao Peoples Democratic Republic Malaysia Maldives Marshall Islands Micronesia, Federated States of Mongolia Myanmar Nauru Nepal Pakistan Palau Papua New Guinea Philippines Samoa Singapore Solomon Islands Sri Lanka Taipei,China Tajikistan Thailand Timor-Leste Tonga Turkmenistan Tuvalu Uzbekistan Vanuatu Viet Nam All DMCs Regional tOtaL
2010 %
1.61 0.10 0.29 4.72 1.11 0.01 2.81 8.46 0.25 0.61 0.13 5.24 7.82 0.63 0.36 0.11 0.97 3.11 0.59 0.54 0.44 0.56 1.99 0.24 0.05 3.61 4.36 0.07 1.40 4.28 0.64 0.01 0.47 2.56 0.002 0.84 1.50 0.72 0.42 0.02 0.13 1.07 0.46 5.40 70.75 29.25 100.00
no.
65 8 23 379 117 1 172 663 32 80 7 318 521 62 38 33 77 255 94 60 48 43 157 38 8 314 333 5 148 364 87 2 65 249 1 63 170 37 61 5 20 83 59 270
amount
72,497.70 4,575.00 13,122.00 212,086.17 49,643.15 600.00c 126,334.60 380,033.31 11,395.00 27,349.80 6,056.00 235,223.86 351,334.17 28,217.00 16,315.70 5,010.15 43,651.40 139,632.08 26,352.30 24,300.00 19,882.00 25,128.00 89,156.65 10,716.00 2,146.81 161,893.70 195,951.13 3,300.00 62,766.12 192,365.25 28,681.50 577.42 21,170.24 114,788.10 100.00 37,661.06 67,469.60 32,310.90 18,741.50 1,065.00 5,914.75 48,150.00 20,714.76 242,322.16
no.
3 15 4 8 40 1 4 29 9 1 1 1 10 1 1 10 18 4 3 9 2 7 1 3 4 2 1 3 1 18 214 117 331
tasF Financing
925.00 5,350.00 2,500.00 5,500.00 19,280.00 1,706.00 10,550.00 1,000.00 650.00 1,000.00 3,715.00 650.00 600.00 3,375.00 4,460.00 2,170.00 1,100.00 1,175.00 1,400.00 2,300.00 950.00 515.00 350.00 2,350.00 8,283.00 81,854.00 64,288.15
JsF Financing
1,500.00 700.00 2,000.00 4,200.00 7,500.00
RciF Financing
13,700.00 13,700.00
ccF Financing
2,550.00 400.00 2,950.00 2,950.00
JFpR Financing
1,500.00 500.00 300.00 3,000.00 2,000.00 2,680.00 2,000.00 3,900.00 2,700.00 800.00 2,500.00 825.00 500.00 1,000.00 24,205.00 1,181.00
Other sources
1,725.00 100.00 2,892.00 1,650.00 5,690.00 53,325.00 200.00 3,050.00 500.00 1,658.00 90.00 3,430.00 200.00 750.00 500.00 1,800.00
total
2,425.00 7,575.00 2,500.00 5,600.00 22,172.00 300.00 3,356.00 19,240.00 58,875.00 650.00 200.00 1,000.00 9,445.00 650.00 600.00 7,375.00 10,418.00 2,170.00 1,190.00 8,005.00 1,000.00 5,900.00 750.00 2,800.00 1,775.00 515.00 350.00 2,350.00 500.00 11,083.00
%
0.75 2.34 0.77 1.73 6.84 0.09 1.03 5.93 18.15 0.20 0.06 0.31 2.91 0.20 0.18 2.27 3.21 0.67 0.37 2.47 0.31 1.82 0.23 0.86 0.55 0.16 0.11 0.72 0.15 3.42 58.82 41.18 100.00
5,635 3,176,702.04 1,784 1,313,516.43 7,419 4,490,218.47
77,560.00 190,769.00 46,899.25 133,568.40
146,142.15 11,700.00
25,386.00 124,459.25 324,337.40
= nil or data not applicable, CCF = Climate Change Fund, DMC = developing member country, JFPR = Japan Fund for Poverty Reduction, JSF = Japan Special Fund, RCIF = Regional Cooperation and Integration Fund, TASF = Technical Assistance Special Fund. a Excludes technical assistance financed under loans that are included in ADBs loan data. b Data are adjusted to exclude technical assistance projects withdrawn by governments. c Reimbursable technical assistance.
266
Statistical Annexes
2011 no.
2 1 16 5 9 34 1 1 25 12 1 3 2 7 1 3 1 1 5 1 14 1 4 11 3 4 2 5 2 2 7 2 19 207 120 327
tasF Financing
1,500.00 700.00 5,750.00 1,200.00 4,375.00 18,764.20 500.00 6,449.00 225.00 565.00 800.00 450.00 2,255.00 1,000.00 1,125.00 300.00 11.00 200.00 3,160.00 4,000.00 2,000.00 4,875.00 1,275.00 2,240.00 1,050.00 1,550.00 1,425.00 675.00 3,245.00 500.00 8,595.00 80,759.20 59,523.00 140,282.20
RciF Financing
4,350.00 4,350.00
ccF Financing
1,350.00 100.00 1,450.00 1,950.00 3,400.00
JFpR Financing
2,400.00 1,000.00 4,400.00 6,500.00 1,700.00 700.00 4,200.00 1,800.00 1,400.00 4,500.00 1,500.00 500.00 1,500.00 4,300.00 36,400.00 11,011.50 47,411.50
Other sources
1,500.00 1,210.00 500.00 9,100.00 2,800.00 600.00 7,845.00 2,825.00 1,625.00 3,600.00 1,000.00 8,628.00 10,200.00 1,850.00 1,250.00 225.00 1,500.00 30,500.00 86,758.00 77,187.96 163,945.96
total
3,000.00 700.00 9,360.00 2,700.00 13,475.00 22,914.20 500.00 600.00 18,794.00 9,550.00 565.00 2,425.00 450.00 7,555.00 1,000.00 1,125.00 300.00 700.00 5,211.00 200.00 13,588.00 4,000.00 3,400.00 19,575.00 1,275.00 4,090.00 2,300.00 3,050.00 1,425.00 1,175.00 4,970.00 2,000.00 43,395.00 205,367.20 154,022.46 359,389.66
%
0.83 0.19 2.60 0.75 3.75 6.38 0.14 0.17 5.23 2.66 0.16 0.67 0.13 2.10 0.28 0.31 0.08 0.19 1.45 0.06 3.78 1.11 0.95 5.45 0.35 1.14 0.64 0.85 0.40 0.33 1.38 0.56 12.07 57.14 42.86 100.00
country
Afghanistan Armenia Azerbaijan Bangladesh Bhutan Brunei Darussalam Cambodia China, Peoples Republic of Cook Islands Fiji Georgia India Indonesia Kazakhstan Kiribati Korea, Republic of Kyrgyz Republic Lao Peoples Democratic Republic Malaysia Maldives Marshall Islands Micronesia, Federated States of Mongolia Myanmar Nauru Nepal Pakistan Palau Papua New Guinea Philippines Samoa Singapore Solomon Islands Sri Lanka Taipei,China Tajikistan Thailand Timor-Leste Tonga Turkmenistan Tuvalu Uzbekistan Vanuatu Viet Nam All DMCs Regional tOtaL
267
Statistical Annex 16 TECHNICAL ASSISTANCE GRANT APPROVALS, 2011 (amounts in $ thousand)

ta type
afghanistan Rural Finance Expansion Supporting Natural Resources Operations Subtotal armenia Solid Waste Management Improvement Investment Program Subtotal Bangladesh Capital Market Development Program II Supporting the Khulna Water Supply Project Support for Climate Change Mitigation and Renewable Energy Development Road Safety Improvement Programs Capacity Development for Bangladesh Bank Climate Change Capacity Building and Knowledge Management Power System Efficiency Improvement II Strengthening the Resilience of the Urban Water Supply, Drainage, and Sanitation to Climate Change in Coastal Towns Climate Resilient Infrastructure Improvement in Coastal Zone Governance and Capacity Development Public Private Partnership in Higher Education Strategic Master Plan for Chittagong Port Skills for Employment Industrial Energy Efficiency Finance Program Consolidation of Knowledge on Governance Initiatives Capacity Building of the Anti Corruption Commission Subtotal Bhutan Road Network II (Additional Financing) Developing a Revenue Administration Management Information System Green Power Development II Third Bhutan Living Standards Survey Strengthening Air Transport Regulatory and Operational Performance Subtotal cambodia Supporting Policy and Institutional Reforms and Capacity Development in the Water Sector (Supplementary) Enhance Project Readiness and Effectiveness Promoting Economic Diversification Subprogram 3 Climate Resilient Rice Commercialization Sector Development Program Implementing Subprogram 2 of the Third Financial Sector Program Strengthening Knowledge Solutions for the CambodiaADB Partnership Integrated Urban Environmental Management in the Tonle Sap Basin PP CD PP CD CD TAI PSM ENE PSM TAI PP CD CD PA CD CD PP CD PP CD CD PA PP PP CD CD FIN WMS ENE TAI FIN MUL ENE WMS ANR PSM EDU TAI EDU ENE PSM PSM PP WMS CD CD
sector
FIN ANR
tasF
1,500.00 1,500.00 700.00 700.00 600.00 700.00 500.00 600.00 500.00 700.00 200.00 225.00 1,500.00 225.00 5,750.00 600.00 300.00 300.00 1,200.00
RciF

ccF

JFpR
700.00 1,000.00 700.00 2,400.00 1,000.00 1,000.00
Others
source
total
1,500.00 1,500.00 3,000.00 700.00 700.00 600.00 700.00 500.00 600.00 500.00 500.00 700.00 700.00 600.00 200.00 225.00 1,000.00 700.00 1,500.00 225.00 110.00 9,360.00 600.00 500.00 1,000.00 300.00 300.00 2,700.00
1,500.00 NETWFPF 1,500.00 500.00 SCF-PPCR 600.00 SCF-PPCR 110.00 Denmark 1,210.00 500.00 EAKPF 500.00
CD CD PP PP CD PA PP
ANR MUL PSM ANR FIN PSM WMS
225.00 700.00 1,000.00 800.00 225.00 700.00
8,300.00 NDF/ Australia 500.00 SCF-PPCR 300.00 RTFSI
8,300.00 225.00 700.00 1,500.00 1,100.00 225.00 700.00
= nil or data not applicable, ANR = agriculture and natural resources, CCF = Climate Change Fund, CD = capacity and development, EAKPF = Korea e-Asia and Knowledge Partnership Fund, EDU = education, ENE = energy, FIN = finance, JFPR = Japan Fund for Poverty Reduction, MUL = multisector, NDF = Nordic Development Fund, NETWFPF = Netherlands Trust Fund for the Water Financing Partnership Facility, PA = policy and advisory, PP = project preparatory, PSM = public sector management, RCIF = Regional Cooperation and Integration Fund, RTFSI = Cooperation Fund for Regional Trade and Financial Security Initiative, SCF-PPCR = Strategic Climate Fund-Pilot Program for Climate Resilience, TA = technical assistance, TAI = transport and ICT (information and communication technology), TASF = Technical Assistance Special Fund, WMS = water supply and other municipal infrastructure and services.
268
Statistical Annexes
CONTINUED
ta type
Supporting Strengthening and Institutional Reform for the Department of Land Transport of the Ministry of Public Works and Transport Support for PublicPrivate Partnerships in Cambodia Subtotal peoples Republic of china Strengthening the Capacity of the Judiciary to Implement Economic Laws (Supplementary) ChongqingGuiyang Railway Development (Supplementary) Policy Study on Government Public Expenditure in Agricultural Production (Supplementary) Hebei Energy Efficiency Improvement and Emission Reduction Development of Energy Manager Program for Energy Conservation in Shandong Developing a Legal System for the Credit Market Urban Stormwater Management and Waterlogging Disaster Prevention Gansu Jiuquan Integrated Urban Environment Improvement Management System and Legislative Mechanism for Nonprofit Organizations Chongqing Urban and Rural Infrastructure Development II Managing the Water Resources of Boyang Lake Strengthening Institutional Reform and Capacity Building Yunnan Chuxiong Urban Environment Improvement Public Finance and Financial Management Reforms Strategies for Green Jobs Creation and Promotion Xinjiang Integrated Urban Development Innovations in Administrative Functions of Environmental Protection and Human Resources Development Improving Energy Efficiency and Reducing Emissions through Intelligent Railway Station Buildings Developing Multimodal Passenger Transport Hubs Sustainable Provincial Development Strategy for Guangdong Province Focused on Environmental Improvement in Rural Areas and Small Cities Promoting Market Innovation in Developing Social Infrastructure: Old Age Caring Nonpoint Source Pollution Control in Catchment Areas Developing Tianjin Emission Trading System Yunnan Sustainable Road Maintenance Enhancing the Energy Regulation System for Low-Carbon Development Jiangxi Jian Sustainable Urban Transport Promoting Partnerships for SouthSouth Cooperation YuxiMohan Subregional Railway Link Beijing Sustainable Urban Transport Technical and Vocational Education and Training Demonstration Capacity Development for Green Growth Demonstration Anhui Intermodal Sustainable Transport Development Study on Carbon Capture and Storage in Natural Gas-Based Power Plants HubeiYichang Sustainable Urban Transport Subtotal
sector
tasF
RciF
ccF
JFpR
Others
source
total
CD PA
TAI PSM
500.00 225.00 4,375.00
9,100.00
500.00 225.00 13,475.00
CD PP PA PP CD PA PA PP PA PP PA PA PP PA PA PP PA PA PA
PSM TAI ANR ENE ENE FIN WMS MUL PSM MUL ANR PSM MUL PSM PSM MUL ANR TAI TAI
14.20 320.00 200.00 700.00 450.00 400.00 650.00 400.00 700.00 200.00 500.00 700.00 1,200.00 400.00 700.00 450.00 400.00 500.00
800.00
1,000.00 CEF
14.20 320.00 200.00 700.00 1,000.00 450.00 400.00 650.00 400.00 700.00 1,000.00 500.00 700.00 1,200.00 400.00 700.00 450.00 400.00 500.00
PA PP PA CD PP PA PP PA PP PA PP CD PP CD PP
ANR HSP ANR ENE TAI ENE TAI MUL TAI TAI EDU ANR TAI ENE TAI
400.00 900.00 480.00 200.00 800.00 400.00 700.00 750.00 800.00 450.00 1,100.00 1,000.00 1,000.00 900.00 18,764.20
550.00 1,350.00
1,800.00 CCS 2,800.00
400.00 900.00 480.00 750.00 800.00 400.00 700.00 750.00 800.00 450.00 1,100.00 1,000.00 1,000.00 1,800.00 900.00 22,914.20
= nil or data not applicable, ANR = agriculture and natural resources, CCF = Climate Change Fund, CCS = Carbon Capture and Storage Fund, CD = capacity development, CEF = Clean Energy Fund, EDU = education, ENE = energy, FIN = finance, HSP = health and social protection, JFPR = Japan Fund for Poverty Reduction, MUL = multisector, PA = policy and advisory, PP = project preparatory, PSM = public sector management, RCIF = Regional Cooperation and Integration Fund, TA = technical assistance, TAI = transport and ICT (information and communication technology), TASF = Technical Assistance Special Fund, WMS = water supply and other municipal infrastructure and services.
269
CONTINUED
ta type
cook islands Implementing Public Sector Reforms Subtotal georgia Developing a Geospatial Urban Water Supply and Sanitation Utility Management System (Supplementary) Subtotal india Advanced Project Preparedness for Poverty Reduction Water Users Association Empowerment for Improved Irrigation Management in Chhattisgarh (Subproject 5) (Supplementary) Developing the Power System Master Plan for Bihar (Supplementary) Capacity Development to Enhance Project Readiness and Results Monitoring for Transport Projects (Supplementary) Himachal Pradesh Clean Energy Transmission Investment Program Capacity Building for Road Safety and PublicPrivate Participation (PPP) Support Capacity Building for Commercial Bank Lending for Solar Energy Projects Advanced Project Preparedness for Poverty Reduction Rajasthan Solar Park Capacity Development (Subproject 13) Advanced Project Preparedness for Poverty Reduction Gujarat Solar Vocational Training and Livelihoods (Subproject 14) Development of International Center for Application of Solar Energy Technologies Enhancing Readiness of the Railway Sector Investment Program as a Clean Development Mechanism Project Enhancing Energy-Based Livelihoods for Women Micro-Entrepreneurs Capacity Building for North Eastern State Roads Sector Advanced Project Preparedness for Poverty Reduction Capacity Building and Institutional Strengthening for the Assam Urban Infrastructure Investment Program (Subproject 15) Himachal Pradesh Power Sector Capacity Development and Implementation Support Advanced Project Preparedness for Poverty Reduction Capacity Building for Bihar Urban Infrastructure Development (Subproject 16) Advanced Project Preparedness for Poverty Reduction Supporting Clean Village Environments for MDGs (Subproject 17) Support to Jawaharlal Nehru National Solar Mission Introducing Best Practices for Septage Management Karnataka Integrated and Sustainable Water Resources Management Investment Program Advanced Project Preparedness for Poverty Reduction West Bengal North South Road Corridor (Subproject 18) CD
sector
PSM
tasF
500.00 500.00
RciF

ccF

JFpR

Others

source
total
500.00 500.00
CD
WMS
600.00 SPCF 600.00
600.00 600.00
CD
ANR
100.00 United Kingdom 750.00 ACEF 500.00 United Kingdom
100.00
CD CD PP CD CD CD
ENE TAI ENE TAI ENE ENE
24.00 600.00 1,000.00 500.00
500.00
24.00 600.00 500.00 1,000.00 1,250.00 500.00
CD
ENE
400.00 United Kingdom
400.00
CD CD CD CD
ENE TAI ENE TAI
300.00 1,000.00
2,000.00 1,200.00
2,000.00 300.00 1,000.00 1,200.00
CD
WMS
600.00
CD
ENE
600.00
600.00
CD
WMS
600.00
CD CD CD PP PP
HSP ENE WMS ANR TAI
225.00 1,100.00
100.00
700.00
600.00 United Kingdom 1,100.00 United Kingdom
600.00 225.00 700.00 1,200.00 1,100.00
= nil or data not applicable, ACEF = Asian Clean Energy Fund, ANR = agriculture and natural resources, CCF = Climate Change Fund, CD = capacity development, ENE = energy, HSP = health and social protection, JFPR = Japan Fund for Poverty Reduction, MDG = millennium development goal, PP = project preparatory, PSM = public sector management, RCIF = Regional Cooperation and Integration Fund, SPCF = Spanish Cooperation Fund for Technical Assistance, TA = technical assistance, TAI = transport and ICT (information and communication technology), TASF = Technical Assistance Special Fund, WMS = water supply and other municipal infrastructure and services.
270
Statistical Annexes
CONTINUED
ta type
Advanced Project Preparedness for Poverty Reduction Designing and Capacity Building for Strengthening State Finances and Service Delivery in West Bengal (Subproject 21) Skills Development for Inclusive Growth Advanced Project Preparedness for Poverty Reduction State Roads (Subproject 20) Advanced Project Preparedness for Poverty Reduction Rajasthan Renewable Energy Transmission Program (Subproject 19) Advanced Project Preparedness for Poverty Reduction Rajasthan Urban Development Program (Subproject 22) Subtotal indonesia Geothermal Power Development (Supplementary) Strengthening National Public Procurement Processes (Supplementary) Supporting Water Operators Partnerships (Supplementary) Preparation of the Forest Investment Strategy Institutional Capacity Building of Indonesia Eximbank Strengthening Sanitation Planning and Efficiency Improvement Water Resources and River Basin Management Integrated Citarum Water Resources Management Investment Program Periodic Financing Request 2 Implementing Effective Climate Change Adaptation Policy Water Supply and Sanitation Sector Development Improving Domestic Connectivity Metropolitan Sanitation Management and Health II Subtotal Kazakhstan Astana Light Rail Transit Subtotal Kiribati Economic Management and Public Sector Reform (Supplementary) Tarawa Sanitation Improvement (Supplementary) Strengthened Public Financial Management Subtotal Kyrgyz Republic Enabling Identification of PublicPrivate Partnership Projects and Capacity Building in the Kyrgyz Republic Support for Strategic Assessment of the Kyrgyz Economy to Promote Inclusive Growth Subtotal Lao peoples Democratic Republic National Integrated Water Resources Management Support Strengthening the Capacity of the State Audit Organization Renewable Energy Development in Remote Communities CD CD PP ANR PSM ENE PP TAI PP CD CD CD CD CD CD PP CD CD PA PP ENE PSM WMS ANR FIN MUL ANR ANR MUL WMS TAI WMS
sector
tasF
RciF
ccF
JFpR
Others
source
total
PP CD PP
PSM EDU TAI
1,100.00
220.00 United Kingdom 2,000.00 United Kingdom
220.00 1,100.00 2,000.00
PP
ENE
225.00 United Kingdom 750.00 United Kingdom 7,845.00 225.00 Australia 425.00 Australia 225.00 SCF-FIP 1,450.00 ACEF/FSDP 500.00 EAKPF 2,825.00
225.00
PP
WMS
6,449.00 225.00 225.00 565.00 565.00
100.00
4,400.00 1,000.00 1,800.00 1,500.00 700.00 500.00 1,000.00 6,500.00
750.00 18,794.00 225.00 225.00 425.00 225.00 1,450.00 1,000.00 1,800.00 1,500.00 700.00 500.00 500.00 1,000.00 9,550.00 565.00 565.00
CD PP CD
PSM WMS PSM
800.00 800.00
1,500.00 Australia 125.00 Australia 1,625.00
1,500.00 125.00 800.00 2,425.00
CD PA
MUL PSM
225.00 225.00 450.00 300.00 750.00
1,000.00
3,600.00 Australia/ SPCF
225.00 225.00 450.00 3,900.00 750.00 1,000.00
= nil or data not applicable, ACEF = Asian Clean Energy Fund, ANR = agriculture and natural resources, CCF = Climate Change Fund, CD = capacity development, EAKPF = Republic of Korea e-Asia and Knowledge Partnership Fund, EDU = education, ENE = energy, FIN = finance, FSDP = Financial Sector Development Partnership Fund, JFPR = Japan Fund for Poverty Reduction, MUL = multisector, PA = policy and advisory, PP = project preparatory, PSM = public sector management, RCIF = Regional Cooperation and Integration Fund, SCF-FIP = Strategic Climate Fund-Forest Investment Program, SPCF = Spanish Cooperation Fund for Technical Assistance, TA = technical assistance, TAI = transport and ICT (information and communication technology), TASF = Technical Assistance Special Fund, WMS = water supply and other municipal infrastructure and services.
271
CONTINUED
ta type
Strengthening Biodiversity Protection and Management in the Nam Ngum 3 Hydropower Project Strengthening Urban Water Supply Regulation Vientiane Sustainable Urban Transport Strengthening Capacity for Enhanced Operational Effectiveness Subtotal Malaysia Supporting the Tenth Malaysia Plan, 20112015 Subtotal Maldives Institutional Strengthening for Economic Management (Supplementary) Developing the Revenue Administration Management Information System Capacity Development of the Maldives Energy Authority Subtotal Marshall islands Supporting the Public Sector Program (Supplementary) Subtotal Micronesia, Federated states of Strengthening Infrastructure Planning and Implementation Subtotal Mongolia Strengthening Higher and Vocational Education (Supplementary) Road Sector Capacity Development Fifth Health Sector Development Ulaanbaatar Urban Services and Ger Areas Development Investment Program Government Bond Market Development Subtotal nauru Regulatory and Governance Reform for Improving Water and Electricity Supply in Nauru Subtotal nepal Strengthening the Town Development Fund Capacity for PublicPrivate Partnership (Supplementary) Support for the Implementation of School Sector Reform Program (Supplementary) Improving Access to Finance Sector Development Program Scaling Up Small Hydro Power Projects Scaling Up Micro and Mini Renewable Energy Initiatives Building Climate Resilience of Watersheds in Mountain Eco-Regions Gender-Focused Capacity Development in Clean Energy Capacity Development for School Sector Program Implementation Kathmandu Valley Urban Environment Improvement PP CD PP PP PA EDU TAI HSP WMS FIN CD MUL CD MUL CD CD PP CD
sector
ENE WMS TAI PSM
tasF
500.00 500.00 205.00 2,255.00 1,000.00 1,000.00
RciF

ccF

JFpR
700.00 1,700.00
Others
3,600.00
source
total
500.00 500.00 700.00 205.00 7,555.00 1,000.00 1,000.00
CD CD CD
PSM PSM ENE
225.00 500.00 400.00 1,125.00
225.00 500.00 400.00 1,125.00
PA
PSM
300.00 300.00 11.00 11.00
700.00 700.00 2,000.00 700.00 1,500.00 4,200.00
1,000.00 EAKPF/FSDP 1,000.00
300.00 300.00 700.00 700.00 11.00 2,000.00 700.00 1,500.00 1,000.00 5,211.00
CD
WMS
200.00 200.00
200.00 200.00
CD CD PP PA PA PP CD CD PP
PSM EDU FIN ENE ENE ANR ENE EDU WMS
60.00 250.00 500.00
600.00 700.00
190.00 Denmark 160.00 SCF-SREP 215.00 SCF-SREP 900.00 SCF-PPCR
60.00 190.00 600.00 160.00 215.00 900.00 250.00 500.00 700.00
= nil or data not applicable, ANR = agriculture and natural resources, CCF = Climate Change Fund, CD = capacity development, EAKPF = Republic of Korea e-Asia and Knowledge Partnership Fund, EDU = education, ENE = energy, FIN = finance, FSDP = Financial Sector Development Partnership Fund, HSP = health and social protection, JFPR = Japan Fund for Poverty Reduction, MUL = multisector, PA = policy and advisory, PP = project preparatory, PSM = public sector management, RCIF = Regional Cooperation and Integration Fund, SCF-PPCR = Strategic Climate Fund-Pilot Program for Climate Resilience, SCF-SREP = Strategic Climate Fund-Scaling Up Renewable Energy Program in Low Income Countries, TA = technical assistance, TAI = transport and ICT (information and communication technology), TASF = Technical Assistance Special Fund, WMS = water supply and other municipal infrastructure and services.
272
Statistical Annexes
CONTINUED
ta type
Urban Transport Planning and Management Skills Development Strengthening Higher Engineering Education Strengthening Municipalities for Urban Service Delivery Mainstreaming Climate Change Risk Management in Development Subtotal pakistan Capacity Building for the Flood Emergency Reconstruction Project Subtotal papua new guinea Facilitating PublicPrivate Partnerships Port Moresby Power Grid Development Maritime and Waterways Safety Major Bridges Study Subtotal philippines Rural Community-Based Renewable Energy Development in Mindanao Strengthening PublicPrivate Partnerships in the Philippines Results-Oriented Strategic Planning and Development Management for Inclusive Growth Support to Local Government Revenue Generation and Land Administration Reforms Strengthening Institutions for an Improved Investment Climate Strategic Policy Actions for Successful Structural Transformation and Inclusive Growth Education Improvement Sector Development Program Single Well Engineered Electrical Turbine System (SWEETS) Geothermal Power Capacity Development for the Judiciary and Justice Sector Agencies Capacity Development of Financial Regulators Developing a PublicPrivate Earthquake Pool in the Philippines Subtotal solomon islands State-Owned Enterprise Reform Supporting the Implementation of the National Development Strategy Renewable Energy for Telecom Networks Subtotal sri Lanka Implementation of Energy Efficiency Policy Initiatives Clean Energy and Network Efficiency Improvement Colombo Water Supply Service Improvement Local Government Service Enhancement Subtotal CD PP PP CD ENE ENE WMS WMS CD CD CD PSM PSM TAI CD PP PP PA PSM ENE TAI TAI CD MUL CD PP CD CD CD
sector
TAI EDU EDU WMS MUL
tasF
800.00 550.00 1,000.00 3,160.00 4,000.00 4,000.00 1,200.00 800.00 2,000.00
RciF

ccF

JFpR
500.00 1,800.00 800.00 600.00 1,400.00
Others

source
total
800.00 500.00 550.00 1,000.00 7,163.00 13,588.00 4,000.00 4,000.00 800.00 1,200.00 600.00 800.00 3,400.00
7,163.00 SCF-PPCR 8,628.00
PA CD
ENE PSM
1,500.00
2,000.00 ACEF 8,200.00 Canada/ Australia 10,200.00 1,850.00 ACEF 1,850.00
2,000.00 9,700.00
CD CD PA PA PP PP CD CD CD
PSM PSM IAT IAT EDU ENE PSM FIN FIN
225.00 1,500.00 425.00 1,000.00 225.00 4,875.00 225.00 600.00 450.00 1,275.00 1,000.00 700.00 540.00 2,240.00
1,000.00 1,500.00 1,000.00 1,000.00 4,500.00
1,000.00 1,500.00 1,000.00 225.00 1,500.00 425.00 1,000.00 1,000.00 225.00 19,575.00 225.00 600.00 450.00 1,275.00 1,850.00 1,000.00 700.00 540.00 4,090.00
= nil or data not applicable, ACEF = Asian Clean Energy Fund, CCF = Climate Change Fund, CD = capacity development, EDU = education, ENE = energy, FIN = finance, IAT = industry and trade, JFPR = Japan Fund for Poverty Reduction, MUL = multisector, PA = policy and advisory, PP = project preparatory, PSM = public sector management, RCIF = Regional Cooperation and Integration Fund, SCF-PPCR = Strategic Climate Fund-Pilot Program for Climate Resilience, TA = technical assistance, TAI = transport and ICT (information and communication technology), TASF = Technical Assistance Special Fund, WMS = water supply and other municipal infrastructure and services.
273
CONTINUED
ta type
tajikistan Strengthening Public Resource Management Program Building Climate Resilience in the Pyanj River Basin Subtotal thailand Waste to Energy Enhancing Strategic Alignment in the ThailandADB Partnership Southern Thailand Water Supply System Support for Thailands Flood Management Knowledge Forum Development of a Strategic Framework for Financial Inclusion Subtotal timor-Leste District Capital Power Distribution Strengthening Water Sector Management and Service Delivery Subtotal tonga Outer Island Renewable Energy Implementing Strategic Economic Management Subtotal Uzbekistan CASAREMTalimarjan Power Generation and Transmission (Supplementary) CAREC Corridor 2 Road Investment Program II Railway Electrification Investment Program Design and Strengthening of the Solar Energy Institute Amu Bukhara Irrigation System Rehabilitation Solid Waste Management Investment Program Solar Energy Development Subtotal Vanuatu Port Vila Urban Development (Supplementary) Establishment of the Maritime Safety Administration Subtotal Viet nam Support for PublicPrivate Development of the O Mon Thermal Power Complex (Supplementary) Da Nang Water Supply (Supplementary) Capacity Building for River Basin Water Resources Planning (Supplementary) Support for the National Target Program on Climate Change with a Focus on Energy and Transport Central Mekong Delta Region Connectivity Secondary Cities Development Implementation and Monitoring of Song Bung 4 Hydropower Project Resettlement and Ethnic Minority Development Plan Support to Central and Local Governments to Implement Urban Environmental Improvement Programs PP CD WMS TAI PP CD ENE PSM PP CD ENE WMS PP PA PP PA PA ENE MUL WMS MUL FIN PA PP
sector
PSM ANR
tasF
600.00 450.00 1,050.00 500.00 225.00 600.00 225.00 1,550.00 225.00 1,200.00 1,425.00 675.00 675.00
RciF

ccF

JFpR
1,500.00 1,500.00 500.00 500.00
Others
source
total
1,100.00 1,200.00 2,300.00 500.00 225.00 600.00 225.00 1,500.00 3,050.00 225.00 1,200.00 1,425.00 500.00 675.00 1,175.00
500.00 EAKPF 750.00 SCF-PPCR 1,250.00
PP PP PP CD PP PP PA
ENE TAI TAI ENE ANR WMS ENE
600.00 220.00 225.00 700.00 1,500.00 3,245.00 500.00 500.00
1,500.00 1,500.00
225.00 SPCF 225.00 500.00 Australia 1,000.00 New Zealand 1,500.00
600.00 220.00 225.00 225.00 1,500.00 700.00 1,500.00 4,970.00 500.00 1,500.00 2,000.00
PP PP CD PA CD PP CD CD
ENE WMS ANR ENE TAI WMS ENE WMS
200.00 750.00 420.00 1,000.00 225.00
2,000.00
2,500.00 NDF 26,000.00 Australia
200.00 750.00 420.00 2,500.00 26,000.00 1,000.00 225.00 2,000.00
= nil or data not applicable, ANR = agriculture and natural resources, CAREC = Central Asia Regional Economic Cooperation, CASAREM = Central AsiaSouth Asia Regional Electricity Market, CCF = Climate Change Fund, CD = capacity development, EAKPF = Korea e-Asia and Knowledge Partnership Fund, ENE = energy, FIN = finance, JFPR = Japan Fund for Poverty Reduction, MUL = multisector, NDF = Nordic Development Fund, PA = policy and advisory, PP = project preparatory, PSM = public sector management, RCIF = Regional Cooperation and Integration Fund, SCF-PPCR = Strategic Climate Fund-Pilot Program for Climate Resilience, SPCF = Spanish Cooperation Fund for Technical Assistance, TA = technical assistance, TAI = transport and ICT (information and communication technology), TASF = Technical Assistance Special Fund, WMS = water supply and other municipal infrastructure and services.
274
Statistical Annexes
CONTINUED
ta type
Sustainable Urban Transport for Ho Chi Minh City MRT Line 2 Strengthening Sustainable Urban Transport for Ha Noi Metro Line 3 Financial Sector Deepening Program Subprogram 1 Improvement of Road Safety and Climate Resilience on National Highways Second Greater Mekong Subregion Southern Coastal Corridor (Additional Financing) Water Resources Development in the Mid- and Northeast Red River Delta Energy Efficiency in the Industry Productive Rural Infrastructure Development in the Central Highlands Second Health Care in the Central Highlands Strengthening Support for State-Owned Enterprise Reform and Corporate Governance Facilitation Program Support to Improve Portfolio Performance and Aid Effectiveness Subtotal all DMcs Regional Promoting Gender Equality and Womens Empowerment (Supplementary) Core Environment Program and Biodiversity Conservation Corridors Initiative in the Greater Mekong Subregion (Supplementary) Managing the Cities in Asia (Supplementary) Private Sector Development Initiative (Supplementary) Energy Sector Strategy and Development 2007 (Supplementary) Strengthening Central Asia Regional Economic Cooperation, 20072012 (Supplementary) Supporting Strategic Knowledge Products and Research Networking (Supplementary) Supporting the Achievement of the Millennium Development Goals in the Asia and Pacific Region, Phase III (Supplementary) South Asia Subregional Economic Cooperation Transport Logistics and Trade Facilitation Project (Supplementary) Integrated Trade Facilitation Support for Central Asia Regional Economic Cooperation (Supplementary) Implementation of the Technical Support Facility under the Carbon Market Initiative (Supplementary) Support for Implementation of the Second Governance and Anticorruption Action Plan (Supplementary) Knowledge and Innovation Support for ADBs Water Financing Program (Supplementary) Establishment of the Pacific Infrastructure Advisory Center (Supplementary) Trade Finance Capacity Development (Supplementary) Greater Mekong Subregion Phnom Penh Plan for Development Management IV (Supplementary) Asia Pacific Procurement Partnership Initiative (Supplementary) PP PP PP PP PP PP PP PP PP CD CD
sector
TAI TAI FIN TAI TAI ANR ENE ANR HSP PSM PSM
tasF
600.00 1,000.00 800.00 1,000.00 600.00 1,200.00 800.00 8,595.00 80,759.20
RciF

ccF

JFpR
1,500.00 800.00 4,300.00
Others
source
total
1,000.00 1,000.00 600.00 1,500.00 1,000.00 800.00 800.00 1,000.00 600.00 1,200.00 800.00 43,395.00 205,367.20
1,000.00 CTF 1,000.00 CTF 30,500.00
1,450.00 36,400.00 86,758.00
CD
PSM
1,000.00
1,000.00
RD RD PA CD PA PA RD PP CD PP PA CD
ANR WMS PSM ENE PSM PSM PSM TAI IAT ENE PSM ANR
1,000.00 1,750.00 1,000.00 1,000.00 220.00 700.00
500.00
1,000.00
1,086.08 Sweden 2,330.00 Sweden 79.35 Australia 550.00 Austria 391.00 GCF 6,500.00 MDTF-WFPF/ NET-WFPF 2,678.00 Australia 500.00 EAKPF
2,086.08 2,330.00 79.35 1,000.00 1,750.00 1,000.00 1,000.00 220.00 1,200.00 550.00 391.00 6,500.00
PA CD CD CD
MUL FIN PSM PSM
2,500.00 300.00
2,678.00 2,500.00 500.00 300.00
= nil or data not applicable, ANR = agriculture and natural resources, CCF = Climate Change Fund, CD = capacity development, CTF = Clean Technology Fund, DMC = developing member country, EAKPF = Korea e-Asia and Knowledge Partnership Fund, ENE = energy, FIN = finance, GCF = Governance Cooperation Fund, HSP = health and social protection, IAT = industry and trade, JFPR = Japan Fund for Poverty Reduction, MDTF-WFPF = Multi-Donor Trust Fund under the Water Financing Partnership Facility, MRT = mass rapid transit, MUL = multisector, NET-WFPF = Netherlands Trust Fund for the Water Financing Partnership Facility, PA = policy and advisory, PP = project preparatory, PSM = public sector management, RCIF = Regional Cooperation and Integration Fund, RD = research and development, TA = technical assistance, TAI = transport and ICT (information and communication technology), TASF = Technical Assistance Special Fund, WMS = water supply and other municipal infrastructure and services.
275
CONTINUED
ta type
Support for South Asia Regional Economic Cooperation (Supplementary) Fourth High-Level Forum on Aid Effectiveness (Supplementary) 2011 International Comparison Program for Asia and the Pacific (Supplementary) Empowering the Poor through Increasing Access to Energy (Supplementary) Strengthening the Coordination of the GMS Program (Supplementary) Strengthening and Use of Country Safeguard Systems (Supplementary) Determining the Potential for Carbon Capture and Storage in Southeast Asia (Supplementary) Enabling Climate Change Responses in Asia and the Pacific Capacity Development to Address Climate Change (Subproject 3) (Supplementary) Greater Mekong Subregion: Corridor Towns Development (Supplementary) AsiaPacific Community of Practice on Managing for Development Results From Concept to Practice (Supplementary) Strengthening Coastal and Marine Resources Management in the Coral Triangle of the Pacific (Phase 2) (Supplementary) TurkmenistanAfghanistanPakistanIndia Natural Gas Pipeline (Phase 2) (Supplementary) Central Asia Regional Economic Cooperation Transport and Trade Facilitation: Border Crossing Point Improvement and Single Window Development Supporting Development Partnerships in East Asia Employment, Trade, and Inclusive Growth in Asia Pacific Regional Information and Communications Technology Connectivity (Phase 2) Capacity Building for Implementing Private Sector-Led Integration in South Asia Key Indicators for Asia and the Pacific 2011 Implementing the Pacific Regional Audit Initiative Building Capacity for Statistics in the Pacific Promoting Energy Efficiency in the Pacific (Phase 2) CD PA
sector
MUL PSM
tasF
225.00 400.00
RciF

ccF

JFpR

Others
source
total
225.00 1,529.62
1,129.62 HLF4/ Canada 161.00 World Bank 2,883.00 Switzerland/ Austria 350.00 CCS
RD PP
MUL ENE
1,700.00
1,861.00 2,883.00
PA CD CD
MUL PSM ENE
500.00 3,000.00
500.00 3,000.00 350.00
CD PP
MUL WMS
100.00 Sweden 900.00 SCF-PPCR/ UEIF
100.00 900.00
CD
PSM
711.50
820.00 MfDRCF/ EAKPF 18.18 GEF
1,531.50
PA RD
ANR ENE
300.00
18.18 300.00
PP PA RD PP CD RD CD CD CD
MUL PSM MUL TAI IAT PSM PSM PSM ENE
2,000.00 1,175.00 500.00 800.00 1,000.00 900.00
1,300.00 1,000.00
680.00 ICFF 7,754.55 GEF/ Australia/ ACEF 500.00 EAKPF 11,218.18 GEF 1,140.00 ICFF
2,000.00 1,175.00 500.00 900.00 680.00 800.00 1,300.00 1,000.00 8,754.55
Implementing the Urban Operational Plan: Financing Investments in Environmental Infrastructure Strengthening Support for the AsiaPacific Economic Cooperation Financial Regulators Training Initiative Coastal and Marine Resources Management in the Coral Triangle Southeast Asia Supporting and Enhancing Regional Surveillance for ASEAN+3 and the Chiang Mai Initiative Multilateralization Developing a Disaster Risk Financing Capability Promotion of Good Practices in Information and Communication Technology (ICT) for Education in Central and West Asia Region Establishing the Asian International Economists Network
RD CD PA CD PA
ENE FIN ANR PSM FIN
605.00 1,000.00
450.00
2,000.00
605.00 950.00 12,218.18 1,140.00 2,000.00
PA CD
EDU IAT
225.00 1,100.00
225.00 1,100.00
= nil or data not applicable; ACEF = Asian Clean Energy Fund; ANR = agriculture and natural resources; ASEAN+3 = Association of Southeast Asian Nations, plus the Peoples Republic of China, Japan, and the Republic of Korea; CCF = Climate Change Fund; CCS = Carbon Capture and Storage Fund; CD = capacity development; EAKPF = Korea e-Asia and Knowledge Partnership Fund; EDU = education; ENE = energy; FIN = finance; GEF = Global Environment Facility; GMS = Greater Mekong Subregion; HLF4 = Fourth High Level Forum on Aid Effectiveness Trust Fund; IAT = industry and trade; ICFF = Investment Climate Facilitation Fund; JFPR = Japan Fund for Poverty Reduction; MfDRCF = Cooperation Fund in Support of Managing for Development Results; MUL = multisector; PA = policy and advisory; PP = project preparatory; PSM = public sector management; RCIF = Regional Cooperation and Integration Fund; RD = research and development; SCF-PPCR = Strategic Climate Fund-Pilot Program for Climate Resilience; TA = technical assistance; TAI = transport and ICT (information and communication technology); TASF = Technical Assistance Special Fund; UEIF = Urban Environmental Infrastructure Fund; WMS = water supply and other municipal infrastructure and services.
276
Statistical Annexes
CONTINUED
ta type
2011 CWRD Client Survey Enhancing Government Capacity for Effective Project Design and Implementation Enhancing Gender Equality Results in South Asia Developing Member Countries (Phase 2) (Subproject 2) Strengthening Climate Risk and Resilience Capacity of Pacific Developing Member Countries, Phase 1 Capacity Building for the Efficient Utilization of Biomass for Bioenergy and Food Security in the Greater Mekong Subregion Policy Support for Regional and Global Economic Cooperation Pacific Financial Technical Assistance Centre 20112014 Assessment and Implications of Rationalizing and Phasing Out Fossil-Fuel Subsidies Enhancing Knowledge on Climate Technology and Financing Mechanisms Regional Program for Research and Capacity Development on Water Security Support for Implementing the Action Plan for Transport and Trade Facilitation in the Greater Mekong Subregion (Subproject 1) Nineteenth Tax Conference Afghanistan and Turkmenistan: Regional Power Interconnection Learning from e-learning: Testing Intelligent Learning Systems in South Asian Countries Asian Development Outlook 2012 Financial Regulatory Reforms in Asia KoreaADB Conference on Knowledge Sharing and Development Effectiveness in the Asia and Pacific Region Policies to Meet Global Economic Challenges - Asias Perspective Asian Bonds Online Website, Phase IV Education and Skills for Inclusive Growth and Green Jobs Disbursement, Loan Accounting/Servicing Training and Seminars for DMCs Selected Evaluation Studies for 2011 Support to Achieve the ASEAN Economic Community and Accelerate the Narrowing of Development Gaps by 2015 Collaborative Research and Advisory Services on Public Sector Management Developing the Services Sector as an Engine for Inclusive Growth Enhancing Knowledge Sharing and SouthSouth Cooperation between Asia and Latin America Strengthening Regulatory Capacity for Information and Communication Technology Development in the Pacific Regional Forum on Public Sector Accounting Strengthening Economic Assessment Capacity for Asia and the Pacific Region Assessment of Power Sector Reform in Asia and the Pacific Drivers of Poverty Reduction in Asia and the Pacific Broadening the Scope of Asian Bond Market Initiative under ASEAN+3 Solid Waste Management in the Pacific Harnessing Climate Change Mitigation Initiatives to Benefit Women Asia Regional Integration Center, Phase IV Support to Urban Infrastructure Development and Financing Supporting Water Operators Partnerships in Asia and the Pacific CD CD CD CD CD RD CD RD CD RD
sector
PSM PSM WMS MUL MUL MUL PSM ENE MUL ANR
tasF
225.00 1,300.00 500.00 225.00 1,000.00 1,000.00
RciF

ccF

JFpR

Others

source
total
225.00 1,300.00 500.00 750.00 4,000.00 225.00 1,000.00 1,000.00 1,500.00 500.00
750.00 SCF-PPCR 4,000.00 NDF 1,500.00 ACEF 500.00 PRC RPRF
PA CD PP RD RD RD CD RD RD RD CD RD PA CD RD RD CD CD RD RD RD RD RD CD RD CD CD
IAT PSM ENE EDU PSM FIN TAI PSM FIN EDU PSM MUL MUL PSM MUL MUL TAI PSM MUL ENE PSM FIN WMS MUL MUL MUL WMS
1,300.00 225.00 1,000.00 1,245.00 1,500.00 950.00 225.00 1,300.00 225.00 500.00 1,000.00 750.00 650.00 714.00 225.00 450.00 1,480.00
200.00 2,000.00
2,000.00 Australia 800.00 EAKPF/FSDP 124.00 EAKPF 500.00 EAKPF 500.00 EAKPF 145.00 EAKPF 2,700.00 NDF 1,700.00 UEIF
2,000.00 200.00 1,300.00 225.00 1,000.00 800.00 124.00 1,245.00 1,500.00 950.00 225.00 1,300.00 225.00 500.00 500.00 1,000.00 750.00 500.00 650.00 714.00 225.00 145.00 450.00 2,700.00 1,480.00 1,700.00 2,000.00
= nil or data not applicable; ACEF = Asian Clean Energy Fund; ANR = agriculture and natural resources; ASEAN = Association of Southeast Asian Nations; ASEAN+3 = Association of Southeast Asian Nations, plus the Peoples Republic of China, Japan, and the Republic of Korea; CCF = Climate Change Fund; CD = capacity development; CWRD = Central and West Asia Department; DMC = developing member country; EAKPF = Korea e-Asia and Knowledge Partnership Fund; EDU = education; ENE = energy; FIN = finance; FSDP = Financial Sector Development Partnership Fund; IAT = industry and trade; JFPR = Japan Fund for Poverty Reduction; MUL = multisector; NDF = Nordic Development Fund; PA = policy and advisory; PP = project preparatory; PRC RPRF = Peoples Republic of China Regional Cooperation and Poverty Reduction Fund; PSM = public sector management; RCIF = Regional Cooperation and Integration Fund; RD = research and development; SCF-PPCR = Strategic Climate Fund-Pilot Program for Climate Resilience; TA = technical assistance; TAI = transport and ICT (information and communication technology); TASF = Technical Assistance Special Fund; UEIF = Urban Environmental Infrastructure Fund; WMS = water supply and other municipal infrastructure and services.
277
CONTINUED
ta type
Asian Development Review 20122013 Sovereign Debt Crises in the US and the Eurozone: Potential Regional Impacts on Asia Preparing a Water Supply and Sanitation Handbook for Southeast Asia Addressing Disaster Risk through Improved Indicators and Land Use Management Promotion of Capital Market Instruments for Infrastructure Financing in the ASEAN Smart Grid Capacity Development Support for ASEAN Leaders Forum on Human Resource Development Towards an Integrated ASEAN Community Improving Employment Outcomes Innovations for More Food with Less Water Establishing Global Research Alliances (Phase 2) Quantum Leap in Wind Power Development in Asia and the Pacific Enabling Climate Change Responses in Asia and the Pacific Disaster Risk Finance for Total Climate Risk (Subproject 6) Core Environment Program and Biodiversity Conservation Corridors Initiative in the Greater Mekong Subregion, Phase 2 Support for Pan-Beibu Gulf Economic Cooperation Improving Agricultural and Rural Statistics for Food Security Strengthening Capacity of Developing Member Countries in Resource Mobilization and Implementation of Cofinanced Projects Lessons from DMC Project Processing Practices Strengthening Knowledge-Driven Development in South Asia Support for the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation II (BIMSTEC - II) South Asia Road Safety Programs (Phase 1: Kingdom of Bhutan and Nepal) Innovative Financing for Agriculture and Food Value Chains Master Plan on ASEAN Connectivity Implementation Support for Regional Multisector Investment Framework for Greater Mekong Subregion Development (Phase 1) Provision of Environment Technical Services Strengthening Evaluation of Poverty Reduction Innovations Support Capacity Building of Local Issuing Banks and Trade Finance Market Development AsiaPacific Trade Facilitation Forum 2012 Implementation of Sustainable Transport in Asia and the Pacific Better Transport Data for Sustainable Transport Policies and Investment Planning (Subproject 1) Establishing a Pilot Center to Facilitate Climate Technology Investments in Asia and the Pacific Promotion of Investment in Climate Technology Products through Venture Capital Funds (Subproject 1) Asia Life Sciences Fund SASEC Subregional Energy Efficiency Initiative Developing Water Resources Sector Strategies in Central and West Asia RD PA RD RD CD CD PA RD RD RD CD PA CD PA PA
sector
MUL PSM WMS PSM FIN ENE EDU EDU ANR MUL ENE FIN ANR MUL ANR
tasF
500.00 225.00 700.00 150.00 225.00 800.00 1,000.00 800.00 400.00 500.00
RciF

ccF

JFpR
1,400.00 1,400.00 1,000.00
Others

source
total
500.00 225.00 225.00 700.00 150.00 1,400.00 225.00 800.00 1,400.00 1,000.00 2,000.00 1,000.00 14,800.00 900.00 500.00
225.00 MDTF-WFPF 2,000.00 ACEF 14,000.00 Finland 500.00 PRC RPRF
CD PA CD CD CD RD CD PA CD CD CD CD
MUL PSM MUL MUL TAI ANR MUL MUL MUL MUL IAT IAT
500.00 200.00 1,500.00 750.00 700.00 1,500.00 1,000.00 97.00 950.00 200.00 225.00
500.00
975.00 JAIF
500.00 200.00 1,500.00 750.00 700.00 1,500.00 975.00 1,500.00 97.00 950.00 200.00 225.00
CD
TAI
1,000.00
1,000.00
PA PP CD PA
MUL HSP ENE ANR
842.00 1,500.00 225.00 1,000.00
950.00
1,500.00 ACEF 500.00 MDTF-WFPF
3,292.00 1,500.00 225.00 1,500.00
= nil or data not applicable, ACEF = Asian Clean Energy Fund, ANR = agriculture and natural resources, ASEAN = Association of Southeast Asian Nations, CCF = Climate Change Fund, CD = capacity development, DMC = developing member country, EDU = education, ENE = energy, FIN = finance, HSP = health and social protection, IAT = industry and trade, JAIF = JapanASEAN Integration Fund, JFPR = Japan Fund for Poverty Reduction, MDTF-WFPF = Multi-Donor Trust Fund under the Water Financing Partnership Facility, MUL = multisector, PA = policy and advisory, PP = project preparatory, PRC RPRF = Peoples Republic of China Regional Cooperation and Poverty Reduction Fund, PSM = public sector management, RCIF = Regional Cooperation and Integration Fund, RD = research and development, SASEC = South Asia Subregional Economic Cooperation, TA = technical assistance, TAI = transport and ICT (information and communication technology), TASF = Technical Assistance Special Fund, US = United States, WMS = water supply and other municipal infrastructure and services.
278
Statistical Annexes
CONTINUED
ta type
Impact Evaluation of Selected Projects in South Asia (Phase 2) Promoting Financially Sustainable Regulatory Framework for Water Tariff in South Asia Strengthening South Asian Developing Member Countries Capacity and Coordination for Mainstreaming Green Growth and Climate Change Resilience Supporting Evaluation Capacity Development and Networking in Selected Developing Member Countries Supporting Public Management through e-Government Capacity Development Support for the Preparation of Harmonized Regional CrossSector and Thematic Assessments, Strategies, and Roadmaps for a Regional Cooperation Strategy for Southeast Asia, 20132015 all Regional tOtaL CD CD
sector
MUL WMS
tasF
225.00 1,000.00
RciF

ccF

JFpR

Others

source
total
225.00 1,000.00
CD CD CD
MUL PSM PSM
225.00 400.00
500.00 EAKPF
225.00 400.00 500.00
PA
MUL
195.00
195.00 154,022.46 359,389.66
59,523.00 4,350.00 1,950.00 11,011.50 77,187.96 140,282.20 4,350.00 3,400.00 47,411.50 163,945.96
= nil or data not applicable, CCF = Climate Change Fund, CD = capacity development, EAKPF = Korea e-Asia and Knowledge Partnership Fund, JFPR = Japan Fund for Poverty Reduction, MUL = multisector, PA = policy and advisory, PSM = public sector management, RCIF = Regional Cooperation and Integration Fund, TA = technical assistance, TASF = Technical Assistance Special Fund, WMS = water supply and other municipal infrastructure and services.
Statistical Annex 17 TECHNICAL ASSISTANCE GRANTS BY SECTOR,a, b 19672011, 2010, 2011 (amounts in $ thousand)
19672011 no.
Agriculture and Natural Resources Education Energy Finance Health and Social Protection Industry and Trade Public Sector Management Transport and ICT Water Supply and Other Municipal Infrastructure and Services Multisector tOtaL
2010 % 21.86 5.10 9.96 7.77 3.98 4.07 21.89 11.35 7.22 6.81 no. 38 11 46 26 9 8 63 37 25 68 331 $ thousand 45,878.00 55,275.00 37,865.00 18,640.00 3,740.00 7,781.25 48,482.15 24,713.00 20,910.00 61,053.00 324,337.40 % 14.15 17.04 11.67 5.75 1.15 2.40 14.95 7.62 6.45 18.82 100.00 no. 32 15 54 20 5 8 67 42 35 49 327
2011 $ thousand 70,997.45 8,801.00 52,655.55 19,570.00 4,300.00 6,630.00 55,050.67 57,624.00 27,795.00 55,966.00 359,389.66 % 19.76 2.45 14.65 5.45 1.20 1.84 15.32 16.03 7.73 15.57 100.00
$ thousand 981,463.01 229,020.82 447,232.53 348,715.96 178,596.42 182,702.55 983,019.03 509,619.12 324,206.67 305,642.37
1,550 366 740 715 270 383 1,739 868 533 255 7,419
4,490,218.47 100.00
ICT = information and communication technology. a Excludes technical assistance financed under loans that are included in ADBs loan data and regional activities. b Data are adjusted to exclude technical assistance projects withdrawn by governments.
279

Statistical Annex 18 NET TRANSFER OF RESOURCES (ORDINARY CAPITAL RESOURCES, ASIAN DEVELOPMENT FUND, AND OTHER SPECIAL FUNDS GRANTS), 20092011 ($ million)
OcRa country
Afghanistan Armenia Azerbaijan Bangladesh Bhutan Cambodia China, Peoples Republic of Cook Islands Fiji Georgia Hong Kong, China India Indonesia Kazakhstan Kiribati Korea, Republic of Kyrgyz Republic Lao Peoples Democratic Republic Malaysia Maldives Marshall Islands Micronesia, Federated States of Mongolia Myanmar Nauru Nepal Pakistan Palau Papua New Guinea Philippines Samoa Singapore Solomon Islands Sri Lanka Taipei,China Tajikistan Thailand Timor-Leste Tonga Turkmenistan Tuvalu Uzbekistan Vanuatu Viet Nam Regional tOtaLc
aDFb 2011
(29.94) 42.05 109.77 19.18 14.93 (3.09) 1,015.11 5.53 13.92 22.85 1,054.59 (570.45) 264.16 (22.88) (4.00) (24.97) (1.77) (0.44) 2.04 (2.63) (0.40) (4.04) 85.46 6.40 (1.52) (157.27) 135.52 255.97 17.00 379.30 65.92 2,686.31
grantsc 2011
35.95 17.78 (0.84) (10.17) 7.31 39.12 2.39 39.74 23.10 (0.29) 0.22 14.19 (42.98) 3.23 (3.04) 2.22 (9.01) (12.69) (304.47) 3.47 (10.00) (60.03) 4.07 (3.61) (44.46) 7.60 (2.66) (0.43) 59.41 (2.40) 243.18 (0.02) (4.15)
2009
4.95 34.58 667.08 8.02 (0.63) 903.19 (1.58) (9.65) 1,164.77 (409.30) 512.07 (30.40) (2.27) (53.20) 6.01 (0.68) (4.32) (0.13) (5.91) 338.97 22.38 967.70 72.95 (10.43) 69.34 652.43 (1.88) 4,894.05
2010
(21.00) 23.62 34.84 133.03 20.91 (0.43) 929.14 9.98 9.94 107.41 1,398.51 (75.42) 18.18 (34.81) (1.22) (27.81) 1.75 (0.43) (0.00) (2.76) (0.26) (6.79) 184.45 7.57 (280.93) 169.80 11.14 12.15 137.82 138.60 2,896.97
2009
69.22 119.05 14.73 93.15 18.00 38.61 (1.24) 110.83 77.70 (0.27) (0.50) 5.70 (3.66) 2.99 (3.28) (0.63) 37.55 (1.00) 152.46 (12.17) (48.03) 1.61 (3.45) 34.53 59.86 (46.67) (1.59) 0.07 18.40 (1.98) 364.23 0.43 1,094.67
2010
59.60 20.97 4.65 15.29 14.71 25.57 (0.41) 36.20 53.01 (0.27) (0.50) (14.85) (23.49) 22.54 6.88 (0.85) (5.95) (0.43) 17.52 (8.43) (49.18) 20.39 (3.33) (9.89) 29.42 (1.96) 0.01 35.81 (2.17) 138.12 0.14 379.10
2009
45.12 1.24 4.63 21.58 16.65 59.27 21.18 33.02 0.36 19.09 126.04 15.87 2.56 3.00 3.90 0.95 41.43 44.18 3.30 1.02 1.24 10.19 5.98 481.80
2010
170.07 2.31 17.59 17.87 0.20 2.73 51.50 20.36 35.28 (0.77) 18.31 31.26 22.34 3.61 2.47 10.38 26.26 12.22 1.51 5.65 6.81 1.59 459.53
2011
77.88 0.71 12.95 49.96 0.67 5.32 64.13 56.88 0.07 15.57 132.59 12.74 2.89 3.00 3.62 14.51 13.45 55.31 2.99 7.08 2.00 4.79 5.01 544.14
= nil, ( ) = negative, 0.00 = amount is less than $0.01 million, ADF = Asian Development Fund, OCR = ordinary capital resources. a Net transfer of resources for OCR defined as loan disbursements less principal repayments/prepayments and interest/charges received. Includes nonsovereign loans and net equity investments. b Net transfer of resources for ADF defined as loan disbursements less principal repayments and interest/charges received. c Net transfer of resources for grants defined as disbursements funded by Asian Development Fund (ADF), Asian Tsunami Fund (ATF), Pakistan Earthquake Fund (PEF), Climate Change Fund (CCF), and Asia Pacific Disaster Response Fund (APDRF). d Totals may not add up because of rounding.
280
Statistical Annexes
Statistical Annex 19 NET TRANSFER OF RESOURCES (ORDINARY CAPITAL RESOURCES, ASIAN DEVELOPMENT FUND, AND OTHER SPECIAL FUNDS GRANTS),a 20022011 ($ million)
country Afghanistan Armenia Azerbaijan Bangladesh Bhutan Cambodia China, Peoples Republic of Cook Islands Fiji Georgia Hong Kong, China India Indonesia Kazakhstan Kiribati Korea, Republic of Kyrgyz Republic Lao Peoples Democratic Republic Malaysia Maldives Marshall Islands Micronesia, Federated States of Mongolia Myanmar Nauru Nepal Pakistan Palau Papua New Guinea Philippines Samoa Singapore Solomon Islands Sri Lanka Taipei,China Tajikistan Thailand Timor-Leste Tonga Turkmenistan Tuvalu Uzbekistan Vanuatu Viet Nam Regional tOtaLb 20022006 average 62.83 1.69 69.70 6.42 68.25 (232.38) 0.20 2.59 (323.17) (50.57) (33.72) 1.31 (820.34) 31.61 49.04 (59.56) 5.51 2.24 1.46 25.93 (0.29) 2.91 (7.28) (18.64) (67.60) (0.91) (0.04) 125.97 21.26 (461.32) 0.20 1.02 0.25 43.29 (0.80) 197.72 (4.43) (1,359.63) 2007 129.82 55.33 99.26 6.43 52.81 607.60 (0.72) 1.89 24.75 1,194.88 313.35 (14.17) (0.25) (20.47) 25.00 66.46 (37.11) 8.70 (2.85) 2.83 11.34 43.32 576.10 (34.65) 45.88 (2.47) 1.72 64.02 36.90 (55.06) 0.45 (1.55) 1.07 12.78 (1.28) 169.44 9.60 3,391.11 2008 63.14 8.03 11.49 326.55 3.67 127.38 703.60 0.40 1.69 68.10 1,268.09 1.28 (47.30) (0.29) (26.23) 33.45 25.34 (51.10) 4.56 (1.71) 2.27 16.52 (2.32) 51.92 1,423.88 (11.91) 195.01 (1.23) (1.86) 162.31 49.33 (18.19) 5.25 (1.11) 0.28 9.52 (1.74) 182.92 26.76 4,607.70 2009 119.29 119.05 49.31 761.48 30.65 59.56 903.19 (1.24) (1.58) 101.18 1,181.42 (272.33) 511.80 (0.50) (30.40) 26.89 27.08 (53.20) 9.36 (3.96) (0.63) 52.32 (0.13) 119.13 507.30 12.76 922.66 5.52 (2.50) 148.92 104.05 (57.10) 3.30 (0.57) 1.31 87.74 (1.98) 1,026.85 4.53 6,470.52 2010 208.67 44.58 39.49 150.63 53.21 43.01 929.34 9.57 9.94 143.61 1,401.25 29.08 17.91 (0.50) (34.81) 5.51 10.57 (27.81) 23.52 6.45 (0.86) 9.61 (0.26) 24.04 224.31 2.74 (330.12) 22.85 7.04 186.16 41.64 11.14 1.51 3.69 0.01 47.95 (2.17) 282.76 140.32 3,735.59 2011 83.90 59.83 108.93 9.73 35.19 85.99 1,015.78 7.92 13.92 62.59 1,054.59 (542.03) 263.87 0.22 (22.88) 78.32 9.90 (24.97) 1.52 (3.48) 4.26 3.93 (0.40) 115.86 (206.27) 9.87 (8.62) (214.29) 7.69 10.90 104.50 62.92 255.97 2.99 4.42 1.57 76.40 (2.40) 627.27 70.91 3,226.30
= nil, ( ) = negative. a Net transfer of resources defined as loan disbursements less principal repayments/prepayments and interest/charges received. Includes nonsovereign loans, net equity investments, and grants under Asian Development Fund and other special funds. b Totals may not add up because of rounding.
281

Statistical Annex 20 ASIAN DEVELOPMENT FUND RESOURCES AND COMMITMENT AUTHORITY ADF-CONTRIBUTED RESOURCES ($ million; as of 31 December 2011)
change in 2011 Valued as of 31 December 2010 ($ million)
1,446.34 271.73 233.27 11.85 1,709.31 42.49 273.59 152.02 1,346.78 1,920.97 66.53 14.96 47.91 865.64 18,454.46 273.69 47.12 15.18 0.30 799.42 100.76 202.05 99.04 11.42 409.65 305.29 467.00 70.64 10.69 109.50 1,016.75 3,587.21 34,383.56
country
Australia Austria Belgium Brunei Darussalam Canada China, Peoples Republic of Denmark Finland France Germany Hong Kong, China Indonesia Ireland Italy Japan Korea, Republic of Luxembourg Malaysia Nauru The Netherlands New Zealand Norway Portugal Singapore Spain Sweden Switzerland Taipei,China Thailand Turkey United Kingdom United States tOtaL
addition ($ equivalent)
81.15 9.19 6.79 1.32 49.72 9.66 5.05 7.35 4.64 5.27 6.03 9.42 26.61 515.89 33.15 0.95 1.51 22.87 24.39 10.84 1.17 1.52 27.87 15.18 15.98 5.57 0.93 1.03 40.54 96.55 1,038.15
Exchange Rate adjustment ($ equivalent)

42.81 (7.59) (6.13) 0.77 (4.47) (31.91) (47.98) (1.99) (22.37) 1,121.37 9.46 (1.18) 0.27 (20.95) 2.80 0.89 (2.50) 0.11 (12.70) 1.42 1.79 0.00 0.19 (0.01) 6.77 (0.00) 1,028.87
Valued as of 31 December 2011 net change ($ million)

123.96 1.61 0.67 1.32 50.48 9.66 5.05 2.88 (27.27) (42.71) 6.03 7.43 4.24 1,637.26 42.60 (0.24) 1.78 1.93 27.19 11.73 (1.33) 1.63 15.17 16.60 17.77 5.57 1.12 1.02 47.31 96.55 2,067.02
($ equivalent)
1,570.30 273.34 233.93 13.17 1,759.79 52.14 278.64 154.90 1,319.51 1,878.26 72.56 14.96 55.34 869.87 20,091.72 316.30 46.88 16.97 0.30 801.35 127.95 213.79 97.71 13.05 424.82 321.89 484.77 76.21 11.81 110.51 1,064.05 3,683.76 36,450.58
(SDR equivalent)a
1,022.82 178.04 152.37 8.58 1,146.24 33.96 181.49 100.89 859.46 1,223.41 47.26 9.74 36.05 566.59 13,086.77 206.02 30.53 11.05 0.20 521.96 83.34 139.25 63.65 8.50 276.71 209.66 315.76 49.64 7.70 71.98 693.07 2,399.42 23,742.13
= nil, SDR = special drawing right. Note: Totals may not add up because of rounding. a SDR equivalent of the US dollar amount valued at $1.53527 per SDR as of 31 December 2011.
ADF COMMITMENT AUTHORITYa 31 December 2011 and 2010 ($ million)

item
Carryover of ADF IX Commitment Authority ADF X Contributions ADF IX Contributions ADF VIII Contributions Reflow-based Resources OCR Net Income Transfer Savings and Cancellations Credits from Accelerated Note Encashment Program Total ADF X Commitment Authority Loans and Grants Committed
b
2011
121.6 2,818.2c 135.1d 8.2e 5,886.6f 360.0 830.5 0.9g 10,161.2 8,789.9 1,371.3
2010
122.0 1,802.1 111.8 8.2 4,520.8 240.0 650.0 7,454.8 6,306.6 1,148.2
ADF Commitment Authority Available for Future Commitments
ADF = Asian Development Fund, OCR = ordinary capital resources. Note: Totals may not add up because of rounding. a The Asian Development Bank monitors the ADF commitment authority based on special drawing rights. All reported figures are based on the US dollar to special drawing rights as of 31 December 2011. b The US dollar equivalent of SDR79.2 million at the year-end exchange rate, which reflects the cumulative commitment authority for ADF IX. c Following the partial payment of a qualified contributor, amounts from the installment payments of donors who exercised their pro rata rights have been withheld for operational commitment. d Represents the (i) balance of the third installment and 27.59% of the fourth installment payment of the United States, (ii) corresponding release of amounts withheld due to the pro rata exercise, and (iii) Italys full payment of the balance of its contribution. e Represents 99.16% of Austrias fourth installment payment, which was released and made available for operational commitment. f Includes the (i) liquidity drawdown of SDR1.1 billion, (ii) additional liquidity of SDR270 million released from the foreign exchange provision, and (iii) additional assistance to Afghanistan of $162 million as a result of the suspension of the post-conflict phaseout. g Represents the additional resources from the accelerated note encashment of the remaining balance of Italys ADF IX contribution.
282
Statistical Annexes
Statistical Annex 21 TECHNICAL ASSISTANCE SPECIAL FUND ($ thousand; as of 31 December 2011)
total contributions Direct Voluntary contributions Australia Austria Bangladesh Belgium Canada China, Peoples Republic of Denmark Finland France Germany Hong Kong, China India Indonesia Italy Japan Korea, Republic of Malaysia The Netherlands New Zealand Norway Pakistan Singapore Spain Sri Lanka Sweden Switzerland Taipei,China United Kingdom United States Subtotal Regularized Replenishment contributions transfer to asian Development Fund allocation from Ordinary capital Resources net income Subtotal tOtaL
b a
amount Utilized 2,484 159 47 1,394 3,346 1,600 1,963 237 1,697 3,315 100 3,948 250 774 47,710 1,900 909 1,338 1,096 3,279 1,876 1,100 190 6 862 1,035 200 5,617 1,500 89,932 643,915 (3,472) 889,313 1,529,756 1,619,688
2,484 159 47 1,394 3,346 1,600 1,963 237 1,697 3,315 100 3,948 250 774 47,710 1,900 909 1,338 1,096 3,279 1,876 1,100 190 6 862 1,035 200 5,617 1,500 89,932 762,751 (3,472) 995,588 1,754,867 1,844,799
( ) = negative. a Represents Technical Assistance Special Fund (TASF) portion of contributions to the replenishment of the Asian Development Fund and the TASF authorized by Board of Governors Resolutions 182, 214, 300, and 333 at historical values. b Includes income, repayments, and reimbursements to the TASF since 1980.
283

Statistical Annex 22 JAPAN SPECIAL FUNDRegular and Supplementary Contributions Statement of Activities and Change in Net Assets ($ million)
19882005a Contributions Committed Revenue Total Transfer to Cooperation Fund for Regional Trade and Financial Security Initiative Expenses Exchange Gain (Loss) Translation Adjustments Change in Net Assets 904.1 143.7 1,047.8 2006 24.5 10.7 35.2 2007 27.7 12.0 39.7 2008 17.4 6.6 24.0 2009 1.2 1.2 2010 0.4 0.4 2011 0.2 0.2 total 973.7 174.8 1,148.5
(1.0) 862.4 (25.1) (12.5) 146.8
51.1 (0.1) (16.0)
33.7 6.0
55.1 0.2 (30.9)
39.2 (0.1) (38.1)
15.4 (0.0) (15.0)
(4.4) (0.0) 4.6
(1.0) 1,052.5 (25.1) (12.5) 57.4
= nil, ( ) = negative, 0.0 = less than $50,000. Note: Totals may not add up because of rounding. a Prior years amounts have been restated to conform with the 1995 presentation.
Statistical Annex 23 JAPAN SPECIAL FUNDAsian Currency Crisis Support Facility Statement of Activities and Change in Net Assets ($ million)
19992006 Contributions Committed Revenue Total Transfer to Japan Fund for Poverty Reduction Interest Payment Assistance Written Back Expenses Exchange Gain (Loss) Translation Adjustments Change in Net Assets 241.0a 6.1 247.1 (90.0) 33.2 129.4 (1.7) (26.3) 32.9 2007 1.8 1.8 1.8 2008 1.1 1.1 (0.4) 1.5 2009 0.2 0.2 (0.2) 0.4 2010 0.1 0.1 0.0 0.1 2011 0.1 0.1 0.0 0.1 total 241.0 9.3 250.3 (90.0) 33.2 128.8 (1.7) (26.3) 36.7
= nil, ( ) = negative, 0.0 = less than $50,000. a A guarantee facility is provided under the Asian Currency Crisis Support Facility for which the Government of Japan has made available noninterest-bearing, nonnegotiable notes in the amount of 360 billion yen, encashable by ADB at any time to meet a call on any guarantee. In the absence of any concluded guarantee, the note was returned to the Government of Japan on 25 March 2002.
284
Statistical Annexes
Statistical Annex 24 PROJECTS WITH ADB-ADMINISTERED GRANT COFINANCING, 2011 ($ thousand)
amount source of cofinancing BiLatERaLs,a project specific australia BAN CAM INO INO KIR KIR LAO NEP PHI PNG TON VAN VIE REG REG REG Third Primary Education Development Supporting Policy and Institutional Reforms and Capacity Development in the Water Sector (2nd Supplementary) Geothermal Power Development (Supplementary) Supporting Water Operators Partnerships (Supplementary) Economic Management and Public Sector Reform (Supplementary) South Tarawa Sanitation Improvement Sector National Integrated Water Resources Management Support School Sector Program Strengthening PublicPrivate Partnerships in the Philippines Rural Primary Health Services Delivery Nukualofa Urban Sector Development Port Vila Urban Development Central Mekong Delta Region Connectivity Establishment of the Pacific Infrastructure Advisory Center (Supplementary) Establishment of the Pacific Infrastructure Advisory Center (2nd Supplementary) Support for Implementing the Action Plan for Transport and Trade Facilitation in the Greater Mekong Subregion (Subproject 1) Subtotal Empowering the Poor through Increasing Access to Energy (2nd Supplementary) Implementation of the Technical Support Facility under the Carbon Market Initiative (Supplementary) Subtotal Third Primary Education Development Strengthening PublicPrivate Partnerships in the Philippines Fourth High-Level Forum on Aid Effectiveness (4th Supplementary) Subtotal Energy Sector Development Investment Program Tranche 3 Capacity Building of the Anti Corruption Commission School Sector Program Support for the Implementation of School Sector Reform Program (Supplementary) Subtotal School Sector Program Core Environment Program and Biodiversity Conservation Corridors Initiative in the Greater Mekong Subregion, Phase 2 Subtotal 14,000.00 14,000.00 7,000.00 40,000.00 6,440.00 25,600.00 26,000.00 1,178.00 1,500.00 2,000.00 47,378.00 2,750.00 550.00 3,300.00 65,000.00 1,200.00 98.00 1,298.00 3,000.00 15,600.00 4,550.00 225.00 425.00 1,500.00 13,950.00 35,000.00 project name technical assistance project component
136,590.00
austria REG REG canada BAN PHI REG Denmark AFG BAN NEP NEP Finland NEP REG
65,000.00 12,400.00
110.00 17,900.00 190.00 300.00 30,300.00 13,200.00
13,200.00
AFG = Afghanistan, BAN = Bangladesh, CAM = Cambodia, INO = Indonesia, KIR = Kiribati, LAO = Lao Peoples Democratic Republic, NEP = Nepal, PHI = Philippines, PNG = Papua New Guinea, REG = regional, TON = Tonga, VAN = Vanuatu, VIE = Viet Nam. a Includes project-specific bilateral cofinancing. b Includes cofinancing from bilateral trust funds. c Includes cofinancing from multi-donor trust funds and cooperation funds. d Includes project-specific cofinancing from multilateral organizations. e Includes project-specific cofinancing from global trust funds.
285
CONTINUED
amount source of cofinancing germany BAN Japan BAN new Zealand VAN VAN norway NEP NEP spain GEO LAO UZB sweden BAN REG REG REG Developing a Geospatial Urban Water Supply and Sanitation Utility Management System (Supplementary) National Integrated Water Resources Management Support Design and Strengthening of the Solar Energy Institute Subtotal Third Primary Education Development Core Environment Program and Biodiversity Conservation Corridors Initiative in the Greater Mekong Subregion (Supplementary) Enabling Climate Change Responses in Asia and the Pacific Capacity Development to Address Climate Change (Subproject 3) (Supplementary) Managing the Cities in Asia (Supplementary) Subtotal 1,086.08 100.00 2,330.00 3,516.08 600.00 600.00 225.00 1,425.00 45,000.00 City Region Development Subtotal Third Primary Education Development Subtotal Establishment of the Maritime Safety Administration Interisland Shipping Support Subtotal Electricity Transmission Expansion and Supply Improvement School Sector Program Subtotal 1,000.00 1,000.00 12,600.00 12,600.00 25,000.00 22,400.00 47,400.00 project name technical assistance project component 14,860.00 14,860.00 30,000.00 30,000.00
45,000.00
switzerland NEP REG
Decentralized Rural Infrastructure and Livelihood (Additional Financing) Empowering the Poor through Increasing Access to Energy (Supplementary) Subtotal Energy Sector Development Investment Program Tranche 3 Third Primary Education Development Advanced Project Preparedness for Poverty Reduction Water Users Association Empowerment for Improved Irrigation Management in Chhattisgarh (Subproject 5) (Supplementary) Advanced Project Preparedness for Poverty Reduction Rajasthan Solar Park Capacity Development (Subproject 13) Advanced Project Preparedness for Poverty Reduction Gujarat Solar Vocational Training and Livelihoods (Subproject 14) Advanced Project Preparedness for Poverty Reduction Capacity Building and Institutional Strengthening for the Assam Urban Infrastructure Investment Program (Subproject 15)
7,060.00 133.00 133.00 7,060.00 20,000.00 190,000.00 100.00 500.00 400.00 600.00
United Kingdom AFG BAN IND IND IND IND
AFG = Afghanistan, BAN = Bangladesh, GEO = Georgia, IND = India, LAO = Lao Peoples Democratic Republic, NEP = Nepal, REG = regional, UZB = Uzbekistan, VAN = Vanuatu. a Includes project-specific bilateral cofinancing. b Includes cofinancing from bilateral trust funds. c Includes cofinancing from multi-donor trust funds and cooperation funds. d Includes project-specific cofinancing from multilateral organizations. e Includes project-specific cofinancing from global trust funds.
286
Statistical Annexes
CONTINUED
amount source of cofinancing IND IND IND IND IND IND IND NEP NEP project name Advanced Project Preparedness for Poverty Reduction Capacity Building for Bihar Urban Infrastructure Development (Subproject 16) Advanced Project Preparedness for Poverty Reduction Supporting Clean Village Environments for MDGs (Subproject 17) Advanced Project Preparedness for Poverty Reduction West Bengal North South Road Corridor (Subproject 18) Advanced Project Preparedness for Poverty Reduction Rajasthan Renewable Energy Transmission Program (Subproject 19) Advanced Project Preparedness for Poverty Reduction State Roads (Subproject 20) Advanced Project Preparedness for Poverty Reduction Designing and Capacity Building for Strengthening State Finances and Service Delivery in West Bengal (Subproject 21) Advanced Project Preparedness for Poverty Reduction Rajasthan Urban Development Program (Subproject 22) Establishing Women and Children Service Centers (Supplementary) School Sector Program Subtotal 7,095.00 technical assistance project component
600.00 600.00 1,100.00 225.00 2,000.00 220.00 750.00 200.00 4,000.00 214,200.00
singLE DOnOR tRUst FUnDsb australiacarbon capture storage Fund under the clean Energy Financing partnership Facility PRC Study on Carbon Capture and Storage in Natural Gas-Based Power Plants REG Determining the Potential for Carbon Capture and Storage in Southeast Asia (Supplementary) Subtotal australiapacific Region infrastructure Facility KIR Tarawa Sanitation Improvement (Supplementary) SOL Second Road Improvement (Sector) (Supplementary) VAN Port Vila Urban Development REG Promoting Energy Efficiency in the Pacific (Phase 2) Subtotal australian technical assistance grant VAN Port Vila Urban Development (Supplementary) REG Private Sector Development Initiative (Supplementary) Subtotal peoples Republic of china Regional cooperation and poverty Reduction Fund REG Regional Program for Research and Capacity Development on Water Security REG Support for Pan-Beibu Gulf Economic Cooperation Subtotal Japan asEan integration Fund REG Master Plan on ASEAN Connectivity Implementation Subtotal Japanasian clean Energy Fund under the clean Energy Financing partnership Facility BAN PublicPrivate Infrastructure Development Facility IND Capacity Building for Commercial Bank Lending for Solar Energy Projects INO Institutional Capacity Building of Indonesia Eximbank PHI Rural Community-Based Renewable Energy Development in Mindanao 1,800.00 350.00 2,150.00 125.00 4,040.00 5,400.00 1,000.00 1,125.00 500.00 79.35 579.35 500.00 500.00 1,000.00 975.00 975.00 2,000.00 750.00 1,100.00 2,000.00 9,440.00
ASEAN = Association of Southeast Asian Nations, BAN = Bangladesh, IND = India, INO = Indonesia, KIR = Kiribati, MDG = Millennium Development Goal, NEP = Nepal, PHI = Philippines, PRC = Peoples Republic of China, REG = regional, SOL = Solomon Islands, VAN = Vanuatu. a Includes project-specific bilateral cofinancing. b Includes cofinancing from bilateral trust funds. c Includes cofinancing from multi-donor trust funds and cooperation funds. d Includes project-specific cofinancing from multilateral organizations. e Includes project-specific cofinancing from global trust funds.
287
CONTINUED
amount source of cofinancing SRI REG REG REG REG project name Implementation of Energy Efficiency Policy Initiatives Enhancing Knowledge on Climate Technology and Financing Mechanisms Establishing a Pilot Center to Facilitate Climate Technology Investments in Asia and the Pacific Promotion of Investment in Climate Technology Products through Venture Capital Funds (Subproject 1) Promoting Energy Efficiency in the Pacific (Phase 2) Quantum Leap in Wind Power Development in Asia and the Pacific Subtotal technical assistance 1,850.00 1,500.00 1,500.00 1,500.00 2,000.00 12,200.00 project component
2,000.00 2,000.00
Japan Fund for poverty Reduction BAN Institutional Support for Migrant Workers Remittance BAN Skills for Employment BAN Strategic Master Plan for Chittagong Port BAN BHU BHU CAM FSM IND IND IND IND INO INO INO INO INO INO LAO LAO MON MON MON NEP NEP NEP NEP NEP PHI PHI PHI PHI PNG PNG Strengthening the Resilience of the Urban Water Supply, Drainage, and Sanitation to Climate Change in Coastal Towns Advancing Economic Opportunities of Women and Girls Green Power Development II Improving Market Access for the Poor in Central Cambodia Strengthening Infrastructure Planning and Implementation Capacity Building for North Eastern State Roads Sector Development of International Center for Application of Solar Energy Technologies Himachal Pradesh Clean Energy Transmission Investment Program Introducing Best Practices for Septage Management Implementing Effective Climate Change Adaptation Policy Improving Domestic Connectivity Integrated Citarum Water Resources Management Investment Program Periodic Financing Request 2 Metropolitan Sanitation Management and Health II Strengthening Sanitation Planning and Efficiency Improvement Water Resources and River Basin Management Renewable Energy Development in Remote Communities Vientiane Sustainable Urban Transport Fifth Health Sector Development Road Sector Capacity Development Ulaanbaatar Urban Services and Ger Areas Development Investment Program Improving Access to Finance Sector Development Program Kathmandu Valley Urban Environment Improvement Reducing Child Malnutrition through Social Protection Skills Development Support for Targeted and Sustainable Development Programs for Highly Marginalized Groups Capacity Development of Financial Regulators Results-Oriented Strategic Planning and Development Management for Inclusive Growth Strengthening Institutions for an Improved Investment Climate Support to Local Government Revenue Generation and Land Administration Reforms Facilitating PublicPrivate Partnerships Maritime and Waterways Safety
700.00 1,000.00 700.00 1,950.00 1,000.00 1,900.00 700.00 1,200.00 2,000.00 500.00 700.00 700.00 500.00 1,500.00 1,000.00 1,000.00 1,800.00 1,000.00 700.00 700.00 2,000.00 1,500.00 600.00 700.00 2,000.00 500.00 2,700.00 1,000.00 1,000.00 1,000.00 1,500.00 800.00 600.00
BAN = Bangladesh, BHU = Bhutan, CAM = Cambodia, FSM = Federated States of Micronesia, IND = India, INO = Indonesia, LAO = Lao Peoples Democratic Republic, MON = Mongolia, NEP = Nepal, PHI = Philippines, PNG = Papua New Guinea, REG = regional, SRI = Sri Lanka. a Includes project-specific bilateral cofinancing. b Includes cofinancing from bilateral trust funds. c Includes cofinancing from multi-donor trust funds and cooperation funds. d Includes project-specific cofinancing from multilateral organizations. e Includes project-specific cofinancing from global trust funds.
288
Statistical Annexes
CONTINUED
amount source of cofinancing SRI THA TON UZB VIE VIE VIE REG REG REG REG REG REG REG REG REG REG REG project name Improving Community-Based Rural Water Supply and Sanitation in Post-Conflict Areas of Jaffna and Kilinochchi Development of a Strategic Framework for Financial Inclusion Outer Island Renewable Energy Amu Bukhara Irrigation System Rehabilitation Improvement of Road Safety and Climate Resilience on National Highways Support to Central and Local Governments to Implement Urban Environmental Improvement Programs Water Resources Development in the Mid- and Northeast Red River Delta AsiaPacific Community of Practice on Managing for Development Results From Concept to Practice (Supplementary) Building Capacity for Statistics in the Pacific Developing a Disaster Risk Financing Capability Developing Sustainable Alternative Livelihoods in Coastal Fishing Communities in the Coral Triangle Enabling Climate Change Responses in Asia and the Pacific Disaster Risk Finance for Total Climate Risk (Subproject 6) Implementing the Pacific Regional Audit Initiative Improving Gender-Inclusive Access to Clean and Renewable Energy in Bhutan, Nepal, and Sri Lanka Innovations for More Food with Less Water Nineteenth Tax Conference Smart Grid Capacity Development Supporting Water Operators Partnerships in Asia and the Pacific Subtotal technical assistance project component
2,000.00 1,500.00 500.00 1,500.00 1,500.00 2,000.00 800.00 711.50 1,000.00 2,000.00 2,000.00 1,000.00 1,300.00 3,000.00 1,400.00 200.00 1,400.00 2,000.00 47,411.50
17,550.00
Japaninvestment climate Facilitation Fund under the Regional cooperation and integration Financing partnership Facility REG Capacity Building for Implementing Private Sector-Led Integration in South Asia 680.00 REG Supporting and Enhancing Regional Surveillance for ASEAN+3 and the Chiang Mai Initiative Multilateralization 1,140.00 Subtotal 1,820.00 Republic of Korea e-asia and Knowledge partnership Fund BHU Developing a Revenue Administration Management Information System INO Water Supply and Sanitation Sector Development MON Government Bond Market Development TAJ Strengthening Public Resource Management Program REG KoreaADB Conference on Knowledge Sharing and Development Effectiveness in the Asia and Pacific Region REG AsiaPacific Community of Practice on Managing for Development Results From Concept to Practice (2nd Supplementary) REG Broadening the Scope of Asian Bond Market Initiative Under ASEAN+3 REG Developing the Services Sector as an Engine for Inclusive Growth REG Financial Regulatory Reforms in Asia REG Greater Mekong Subregion Phnom Penh Plan for Development Management IV (Supplementary) REG Regional Forum on Public Sector Accounting REG Strengthening Support for the Asia-Pacific Economic Cooperation Financial Regulators Training Initiative REG Supporting Public Management through e-Government Capacity Development Subtotal 500.00 500.00 500.00 500.00 124.00 500.00 145.00 500.00 500.00 500.00 500.00 500.00 500.00 5,769.00
ASEAN+3 = Association of Southeast Asian Nations plus, the Peoples Republic of China, Japan, and the Republic of Korea; BHU = Bhutan; INO = Indonesia; MON = Mongolia; REG = regional; SRI = Sri Lanka; TAJ = Tajikistan; THA = Thailand; TON = Tonga; UZB = Uzbekistan; VIE = Viet Nam. a Includes project-specific bilateral cofinancing. b Includes cofinancing from bilateral trust funds. c Includes cofinancing from multi-donor trust funds and cooperation funds. d Includes project-specific cofinancing from multilateral organizations. e Includes project-specific cofinancing from global trust funds.
289
CONTINUED
amount source of cofinancing project name technical assistance 1,500.00 5,000.00 6,500.00 project component
netherlands trust Fund under the water Financing partnership Facility AFG Supporting Natural Resources Operations REG Knowledge and Innovation Support for ADBs Water Financing Program (Supplementary) Subtotal MULti-DOnOR tRUst FUnDsc afghanistan infrastructure trust Fund AFG Transport Network Development Investment Program Tranche 1 Subtotal cooperation Fund for Regional trade and Financial security initiative CAM Implementing Subprogram 2 of the Third Financial Sector Program Subtotal cooperation Fund in support of Managing for Development Results REG AsiaPacific Community of Practice on Managing for Development Results From Concept to Practice (Supplementary) Subtotal
33,000.00 33,000.00 300.00 300.00
320.00 320.00 350.00 500.00 300.00 1,150.00 763.69 208.96 58.97 1,031.62 391.00 391.00 1,000.00 1,000.00 500.00 1,500.00 225.00 2,225.00 300.00 1,700.00 2,000.00
Financial sector Development partnership Fund INO Institutional Capacity Building of Indonesia Eximbank MON Government Bond Market Development REG Financial Regulatory Reforms in Asia Subtotal Fourth high Level Forum REG Fourth High-Level Forum on Aid Effectiveness (2nd Supplementary) REG Fourth High-Level Forum on Aid Effectiveness (3rd Supplementary) REG Fourth High-Level Forum on Aid Effectiveness (5th Supplementary) Subtotal governance cooperation Fund REG Support for Implementation of the Second Governance and Anticorruption Action Plan (Supplementary) Subtotal
clean Energy Fund under the clean Energy Financing partnership Facility PRC Development of Energy Manager Program for Energy Conservation in Shandong Subtotal Multi-Donor trust Fund under the water Financing partnership Facility REG Developing Water Resources Sector Strategies in Central and West Asia REG Knowledge and Innovation Support for ADBs Water Financing Program (Supplementary) REG Preparing a Water Supply and Sanitation Handbook for Southeast Asia Subtotal Urban Environmental infrastructure Fund under the Urban Financing partnership Facility REG Greater Mekong Subregion: Corridor Towns Development (2nd Supplementary) REG Support to Urban Infrastructure Development and Financing Subtotal
AFG = Afghanistan, CAM = Cambodia, INO = Indonesia, MON = Mongolia, PRC = Peoples Republic of China, REG = regional. a Includes project-specific bilateral cofinancing. b Includes cofinancing from bilateral trust funds. c Includes cofinancing from multi-donor trust funds and cooperation funds. d Includes project-specific cofinancing from multilateral organizations. e Includes project-specific cofinancing from global trust funds.
290
Statistical Annexes
CONTINUED
amount source of cofinancing MULtiLatERaLsd European Union BAN Third Primary Education Development NEP School Sector Program Subtotal nordic Development Fund CAM Supporting Policy and Institutional Reforms and Capacity Development in the Water Sector (Supplementary) VIE Support for the National Target Program on Climate Change with a Focus on Energy and Transport VIE Transport Connections in Northern Mountainous Provinces REG Capacity Building for the Efficient Utilization of Biomass for Bioenergy and Food Security in the Greater Mekong Subregion REG Harnessing Climate Change Mitigation Initiatives to Benefit Women Subtotal United nations childrens Fund BAN Third Primary Education Development NEP School Sector Program Subtotal world Bank NEP TON REG School Sector Program TongaFiji Submarine Cable Project 2011 International Comparison Program for Asia and the Pacific (2nd Supplementary) Subtotal 70,000.00 47,900.00 117,900.00 project name technical assistance project component
3,750.00 2,500.00 2,780.00 4,000.00 2,700.00 12,950.00
2,780.00 500.00 1,000.00 1,500.00 72,500.00 16,500.00
161.00 161.00
89,000.00
gLOBaL tRUst FUnDse Fast track initiative NEP School Sector Program Subtotal global Environment Facility PRC Forestry and Ecological Restoration in Three Northwest Provinces REG Coastal and Marine Resources Management in the Coral Triangle Southeast Asia REG Promoting Energy Efficiency in the Pacific (Phase 2) REG Strengthening Coastal and Marine Resources Management in the Coral Triangle of the Pacific (Phase 2) (Supplementary) Subtotal clean technology Fund under the climate investment Fund VIE Strengthening Sustainable Urban Transport for Ha Noi Metro Line 3 VIE Sustainable Urban Transport for Ho Chi Minh City MRT Line 2 Subtotal strategic climate Fund under the climate investment Fund Forest investment program INO Preparation of the Forest Investment Strategy Subtotal 70,000.00 70,000.00 5,100.00 11,218.18 5,254.54 18.18 16,490.90 1,000.00 1,000.00 2,000.00
5,100.00
225.00 225.00
BAN = Bangladesh, BHU = Bhutan, CAM = Cambodia, INO = Indonesia, MRT= Mass Rapid Transit, NEP = Nepal, PRC = Peoples Republic of China, REG = regional, TON = Tonga, VIE = Viet Nam. a Includes project-specific bilateral cofinancing. b Includes cofinancing from bilateral trust funds. c Includes cofinancing from multi-donor trust funds and cooperation funds. d Includes project-specific cofinancing from multilateral organizations. e Includes project-specific cofinancing from global trust funds.
291
CONTINUED
amount source of cofinancing project name technical assistance project component
pilot program for climate Resilience BAN Climate Change Capacity Building and Knowledge Management BAN Climate Resilient Infrastructure Improvement in Coastal Zone CAM Climate Resilient Rice Commercialization Sector Development Program CAM Provincial Roads Improvement Project NEP Building Climate Resilience of Watersheds in Mountain Eco-Regions NEP Mainstreaming Climate Change Risk Management in Development TAJ Building Climate Resilience in the Pyanj River Basin REG Greater Mekong Subregion: Corridor Towns Development (Supplementary) REG Strengthening Climate Risk and Resilience Capacity of Pacific Developing Member Countries, Phase 1 Subtotal scaling Up Renewable Energy program in Low income countries NEP Scaling Up Micro and Mini Renewable Energy Initiatives NEP Scaling Up Small Hydro Power Projects Subtotal tOtaL
500.00 600.00 500.00 7,000.00 900.00 7,163.00 750.00 600.00 750.00 11,763.00 215.00 160.00 375.00 211,357.45 971,480.00
7,000.00
BAN = Bangladesh, CAM = Cambodia, NEP = Nepal, REG = regional, TAJ = Tajikistan. a Includes project-specific bilateral cofinancing. b Includes cofinancing from bilateral trust funds. c Includes cofinancing from multi-donor trust funds and cooperation funds. d Includes project-specific cofinancing from multilateral organizations. e Includes project-specific cofinancing from global trust funds.
292
Statistical Annexes
Statistical Annex 25a CONTRACTS AWARDED BY COUNTRY OF ORIGIN, 2011 PROJECT LOANSORDINARY CAPITAL RESOURCES (amounts in $ million)
Origin country
Afghanistan Armenia Australia Austria Azerbaijan Bangladesh Belgium Bhutan Brunei Darussalam Cambodia Canada China, Peoples Republic of Cook Islands Denmark Fiji Finland France Georgia Germany Hong Kong, China India Indonesia Ireland Italy Japan Kazakhstan Kiribati Korea, Republic of Kyrgyz Republic Lao Peoples Democratic Republic Luxembourg Malaysia Maldives Marshall Islands Micronesia, Federated States of Mongolia Myanmar Nauru Nepal The Netherlands New Zealand Norway Pakistan Palau Papua New Guinea Philippines Portugal Samoa Singapore Solomon Islands Spain Sri Lanka Sweden Switzerland Taipei,China Tajikistan Thailand Timor-Leste Tonga Turkey Turkmenistan Tuvalu United Kingdom United States Uzbekistan Vanuatu Viet Nam tOtaL
0.00 = amount or percentage is nil or less than 0.01. Note: Totals may not add up because of rounding.
goods and works

0.00 0.00 1.60 0.00 21.45 0.35 0.65 0.00 0.00 0.00 0.46 1,415.90 0.00 0.07 7.99 0.00 0.00 0.00 53.93 0.00 1,354.05 60.02 0.00 0.00 12.20 17.19 0.00 1,017.14 0.00 0.00 0.00 0.00 0.00 0.14 0.00 0.00 0.00 0.00 0.00 0.00 4.82 0.00 343.97 0.00 0.00 55.47 0.00 0.00 7.68 0.00 62.20 171.14 0.11 1.32 0.00 0.00 0.06 0.00 0.00 137.85 0.00 0.00 7.40 10.85 3.60 0.00 125.64 4,895.23
% Distribution
0.00 0.00 0.03 0.00 0.44 0.01 0.01 0.00 0.00 0.00 0.01 28.92 0.00 0.00 0.16 0.00 0.00 0.00 1.10 0.00 27.66 1.23 0.00 0.00 0.25 0.35 0.00 20.78 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.10 0.00 7.03 0.00 0.00 1.13 0.00 0.00 0.16 0.00 1.27 3.50 0.00 0.03 0.00 0.00 0.00 0.00 0.00 2.82 0.00 0.00 0.15 0.22 0.07 0.00 2.57 100.00
consulting services
0.00 0.00 7.55 0.00 1.69 0.00 0.00 0.00 0.00 0.00 0.06 5.25 0.00 0.01 0.00 0.02 1.07 0.00 0.15 1.06 31.36 3.09 0.00 0.00 3.58 0.00 0.00 8.03 0.00 0.00 0.00 2.60 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4.61 1.60 0.00 11.52 0.00 0.36 4.66 0.00 0.00 0.00 0.00 0.00 2.17 0.00 13.06 3.49 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11.01 2.98 0.04 0.00 0.00 121.01
% Distribution
0.00 0.00 6.24 0.00 1.40 0.00 0.00 0.00 0.00 0.00 0.05 4.34 0.00 0.01 0.00 0.01 0.88 0.00 0.12 0.88 25.91 2.55 0.00 0.00 2.95 0.00 0.00 6.64 0.00 0.00 0.00 2.15 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.81 1.32 0.00 9.52 0.00 0.29 3.85 0.00 0.00 0.00 0.00 0.00 1.79 0.00 10.79 2.88 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9.10 2.46 0.04 0.00 0.00 100.00
total contracts awarded

0.00 0.00 9.15 0.00 23.14 0.35 0.65 0.00 0.00 0.00 0.52 1,421.15 0.00 0.08 7.99 0.02 1.07 0.00 54.08 1.07 1,385.41 63.10 0.00 0.00 15.77 17.19 0.00 1,025.17 0.00 0.00 0.00 2.60 0.00 0.14 0.00 0.00 0.00 0.00 0.00 4.61 6.42 0.00 355.49 0.00 0.36 60.13 0.00 0.00 7.68 0.00 62.20 173.31 0.11 14.38 3.49 0.00 0.06 0.00 0.00 137.85 0.00 0.00 18.41 13.83 3.65 0.00 125.64 5,016.25
% Distribution
0.00 0.00 0.18 0.00 0.46 0.01 0.01 0.00 0.00 0.00 0.01 28.33 0.00 0.00 0.16 0.00 0.02 0.00 1.08 0.02 27.62 1.26 0.00 0.00 0.31 0.34 0.00 20.44 0.00 0.00 0.00 0.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.09 0.13 0.00 7.09 0.00 0.01 1.20 0.00 0.00 0.15 0.00 1.24 3.46 0.00 0.29 0.07 0.00 0.00 0.00 0.00 2.75 0.00 0.00 0.37 0.28 0.07 0.00 2.50 100.00
293

Statistical Annex 25b CONTRACTS AWARDED BY NATIONALITY OF CONTRACTOR, 2011 PROJECT LOANSORDINARY CAPITAL RESOURCES (amounts in $ million)
contractor country
goods and works

0.00 0.00 1.60 0.00 59.36 0.35 0.65 0.00 0.00 0.00 0.46 1,414.77 0.00 0.00 12.81 0.00 0.00 0.00 52.83 7.28 1,372.24 60.16 0.00 0.00 13.38 17.19 0.00 1,018.27 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 343.88 0.00 0.00 55.84 0.00 0.00 6.24 0.00 62.20 152.15 0.00 1.27 0.00 0.00 0.00 0.00 0.00 104.90 0.00 0.00 2.12 1.97 4.47 0.00 128.85 4,895.23
% Distribution
0.00 0.00 0.03 0.00 1.21 0.01 0.01 0.00 0.00 0.00 0.01 28.90 0.00 0.00 0.26 0.00 0.00 0.00 1.08 0.15 28.03 1.23 0.00 0.00 0.27 0.35 0.00 20.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7.02 0.00 0.00 1.14 0.00 0.00 0.13 0.00 1.27 3.11 0.00 0.03 0.00 0.00 0.00 0.00 0.00 2.14 0.00 0.00 0.04 0.04 0.09 0.00 2.63 100.00
consulting services
0.00 0.00 7.15 0.00 1.69 0.00 0.00 0.00 0.00 0.00 0.00 2.84 0.00 0.00 0.79 0.00 0.95 0.00 0.12 3.50 35.29 3.09 0.00 0.00 3.58 0.00 0.00 8.79 0.00 0.00 0.00 2.60 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.69 1.57 0.00 11.52 0.00 0.36 4.66 0.00 0.00 0.00 0.00 0.00 1.42 0.00 13.06 3.49 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.35 2.86 8.67 0.00 0.00 121.01
% Distribution
0.00 0.00 5.91 0.00 1.40 0.00 0.00 0.00 0.00 0.00 0.00 2.35 0.00 0.00 0.65 0.00 0.79 0.00 0.10 2.89 29.16 2.55 0.00 0.00 2.96 0.00 0.00 7.26 0.00 0.00 0.00 2.15 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.57 1.30 0.00 9.52 0.00 0.30 3.85 0.00 0.00 0.00 0.00 0.00 1.17 0.00 10.79 2.88 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.94 2.36 7.16 0.00 0.00 100.00

0.00 0.00 8.75 0.00 61.05 0.35 0.65 0.00 0.00 0.00 0.46 1,417.62 0.00 0.00 13.60 0.00 0.95 0.00 52.95 10.78 1,407.53 63.25 0.00 0.00 16.95 17.19 0.00 1,027.06 0.00 0.00 0.00 2.60 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.69 1.57 0.00 355.40 0.00 0.36 60.50 0.00 0.00 6.24 0.00 62.20 153.57 0.00 14.33 3.49 0.00 0.00 0.00 0.00 104.90 0.00 0.00 4.47 4.83 13.14 0.00 128.85 5,016.25
% Distribution
0.00 0.00 0.17 0.00 1.22 0.01 0.01 0.00 0.00 0.00 0.01 28.26 0.00 0.00 0.27 0.00 0.02 0.00 1.06 0.21 28.06 1.26 0.00 0.00 0.34 0.34 0.00 20.47 0.00 0.00 0.00 0.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.03 0.00 7.08 0.00 0.01 1.21 0.00 0.00 0.12 0.00 1.24 3.06 0.00 0.29 0.07 0.00 0.00 0.00 0.00 2.09 0.00 0.00 0.09 0.10 0.26 0.00 2.57 100.00
294
Statistical Annexes
Statistical Annex 26a CONTRACTS AWARDED BY COUNTRY OF ORIGIN, 2011 PROJECT LOANSASIAN DEVELOPMENT FUND (amounts in $ million)
Origin country
goods and works

7.07 3.88 4.45 1.43 0.00 167.44 1.84 4.30 0.00 24.68 0.49 45.39 0.00 0.00 0.00 0.02 3.91 27.25 44.14 0.00 72.78 70.36 0.00 0.53 1.51 0.00 0.00 27.66 18.59 3.11 0.96 10.21 1.64 0.00 0.00 4.80 0.00 0.00 40.79 0.00 2.91 0.00 47.50 0.00 7.38 0.04 0.00 2.23 0.03 0.00 6.37 58.71 0.00 0.45 0.14 3.96 0.01 0.00 0.00 0.92 0.00 0.00 1.70 2.08 51.63 0.00 252.93 1,028.22
% Distribution
0.69 0.38 0.43 0.14 0.00 16.28 0.18 0.42 0.00 2.40 0.05 4.41 0.00 0.00 0.00 0.00 0.38 2.65 4.29 0.00 7.08 6.84 0.00 0.05 0.15 0.00 0.00 2.69 1.81 0.30 0.09 0.99 0.16 0.00 0.00 0.47 0.00 0.00 3.97 0.00 0.28 0.00 4.62 0.00 0.72 0.00 0.00 0.22 0.00 0.00 0.62 5.71 0.00 0.04 0.01 0.39 0.00 0.00 0.00 0.09 0.00 0.00 0.17 0.20 5.02 0.00 24.60 100.00
consulting services
0.16 0.14 5.84 0.00 0.09 1.94 0.00 0.00 0.00 0.31 0.20 0.00 0.00 1.73 0.00 0.10 0.72 0.51 9.08 1.00 3.30 12.63 0.00 0.00 4.48 0.00 0.00 8.82 1.52 0.00 0.00 0.29 0.00 0.00 0.00 0.06 0.00 0.00 7.95 0.00 4.46 0.00 3.43 0.00 1.17 0.02 0.00 0.00 0.00 0.00 0.00 0.02 0.00 0.00 0.00 0.04 0.00 0.00 0.00 0.02 0.00 0.00 4.87 8.21 0.55 0.00 5.79 89.45
% Distribution
0.18 0.16 6.53 0.00 0.10 2.17 0.00 0.00 0.00 0.35 0.22 0.00 0.00 1.94 0.00 0.11 0.80 0.57 10.15 1.12 3.69 14.12 0.00 0.00 5.01 0.00 0.00 9.86 1.70 0.00 0.00 0.32 0.00 0.00 0.00 0.07 0.00 0.00 8.89 0.00 4.99 0.00 3.83 0.00 1.30 0.02 0.00 0.00 0.00 0.00 0.00 0.03 0.00 0.00 0.00 0.04 0.00 0.00 0.00 0.03 0.00 0.00 5.44 9.18 0.61 0.00 6.48 100.00

7.23 4.02 10.29 1.43 0.09 169.38 1.84 4.30 0.00 24.99 0.68 45.39 0.00 1.74 0.00 0.12 4.63 27.76 53.22 1.00 76.08 82.99 0.00 0.53 6.00 0.00 0.00 36.48 20.11 3.11 0.96 10.50 1.64 0.00 0.00 4.86 0.00 0.00 48.74 0.00 7.37 0.00 50.93 0.00 8.54 0.05 0.00 2.23 0.03 0.00 6.37 58.74 0.00 0.45 0.14 4.00 0.01 0.00 0.00 0.94 0.00 0.00 6.57 10.30 52.17 0.00 258.72 1,117.67
% Distribution
0.65 0.36 0.92 0.13 0.01 15.15 0.16 0.38 0.00 2.24 0.06 4.06 0.00 0.16 0.00 0.01 0.41 2.48 4.76 0.09 6.81 7.43 0.00 0.05 0.54 0.00 0.00 3.26 1.80 0.28 0.09 0.94 0.15 0.00 0.00 0.44 0.00 0.00 4.36 0.00 0.66 0.00 4.56 0.00 0.76 0.00 0.00 0.20 0.00 0.00 0.57 5.26 0.00 0.04 0.01 0.36 0.00 0.00 0.00 0.08 0.00 0.00 0.59 0.92 4.67 0.00 23.15 100.00
295

Statistical Annex 26b CONTRACTS AWARDED BY NATIONALITY OF CONTRACTOR, 2011 PROJECT LOANSASIAN DEVELOPMENT FUND (amounts in $ million)
contractor country
goods and works

7.13 3.99 4.23 1.43 0.00 188.79 1.84 4.30 0.00 24.68 0.48 27.34 0.00 0.26 0.00 0.00 3.90 27.65 86.95 0.00 14.27 74.12 0.00 0.00 2.02 0.00 0.00 27.46 18.59 3.11 0.00 9.72 1.64 0.00 0.00 4.80 0.00 0.00 40.95 0.96 3.12 0.00 47.48 0.00 8.24 0.04 0.00 2.23 1.51 0.00 14.94 58.55 0.00 0.34 0.00 4.11 0.00 0.00 0.00 0.51 0.00 0.00 0.00 0.82 51.63 0.00 254.05 1,028.22
% Distribution
0.69 0.39 0.41 0.14 0.00 18.36 0.18 0.42 0.00 2.40 0.05 2.66 0.00 0.03 0.00 0.00 0.38 2.69 8.46 0.00 1.39 7.21 0.00 0.00 0.20 0.00 0.00 2.67 1.81 0.30 0.00 0.95 0.16 0.00 0.00 0.47 0.00 0.00 3.98 0.09 0.30 0.00 4.62 0.00 0.80 0.00 0.00 0.22 0.15 0.00 1.45 5.69 0.00 0.03 0.00 0.40 0.00 0.00 0.00 0.05 0.00 0.00 0.00 0.08 5.02 0.00 24.71 100.00
consulting services
0.16 0.14 5.84 0.00 0.09 1.94 0.00 0.00 0.00 0.31 0.20 0.00 0.00 1.73 0.00 0.01 0.72 0.51 8.90 1.00 3.30 11.90 0.00 0.00 4.48 0.00 0.00 9.65 1.52 0.00 0.00 0.29 0.00 0.00 0.00 0.27 0.00 0.00 7.94 0.00 4.46 0.00 3.45 0.00 1.17 0.02 0.00 0.00 0.00 0.00 0.00 0.02 0.00 0.00 0.00 0.04 0.00 0.00 0.00 0.00 0.00 0.00 4.87 1.45 0.55 0.00 12.54 89.45
% Distribution
0.18 0.16 6.53 0.00 0.10 2.17 0.00 0.00 0.00 0.35 0.22 0.00 0.00 1.93 0.00 0.01 0.80 0.57 9.95 1.12 3.69 13.30 0.00 0.00 5.01 0.00 0.00 10.79 1.70 0.00 0.00 0.32 0.00 0.00 0.00 0.30 0.00 0.00 8.88 0.00 4.99 0.00 3.86 0.00 1.31 0.02 0.00 0.00 0.00 0.00 0.00 0.02 0.00 0.00 0.00 0.04 0.00 0.00 0.00 0.00 0.00 0.00 5.44 1.62 0.61 0.00 14.02 100.00

7.29 4.13 10.07 1.43 0.09 190.73 1.84 4.30 0.00 24.99 0.68 27.34 0.00 2.00 0.00 0.01 4.62 28.17 95.85 1.00 17.57 86.02 0.00 0.00 6.50 0.00 0.00 37.11 20.11 3.11 0.00 10.01 1.64 0.00 0.00 5.07 0.00 0.00 48.89 0.96 7.59 0.00 50.93 0.00 9.40 0.05 0.00 2.23 1.51 0.00 14.94 58.58 0.00 0.34 0.00 4.15 0.00 0.00 0.00 0.51 0.00 0.00 4.87 2.26 52.17 0.00 266.59 1,117.67
% Distribution
0.65 0.37 0.90 0.13 0.01 17.06 0.16 0.38 0.00 2.24 0.06 2.45 0.00 0.18 0.00 0.00 0.41 2.52 8.58 0.09 1.57 7.70 0.00 0.00 0.58 0.00 0.00 3.32 1.80 0.28 0.00 0.90 0.15 0.00 0.00 0.45 0.00 0.00 4.37 0.09 0.68 0.00 4.56 0.00 0.84 0.00 0.00 0.20 0.14 0.00 1.34 5.24 0.00 0.03 0.00 0.37 0.00 0.00 0.00 0.05 0.00 0.00 0.44 0.20 4.67 0.00 23.85 100.00
296
Statistical Annexes
Statistical Annex 27a CONTRACTS AWARDED BY COUNTRY OF ORIGIN, 2011 PROJECT LOANSORDINARY CAPITAL RESOURCES AND ASIAN DEVELOPMENT FUND COMBINED (amounts in $ million)
Origin country
goods and works

7.07 3.88 6.05 1.43 21.45 167.79 2.49 4.30 0.00 24.68 0.94 1,461.28 0.00 0.08 7.99 0.02 3.91 27.25 98.07 0.00 1,426.83 130.37 0.00 0.53 13.71 17.19 0.00 1,044.80 18.59 3.11 0.96 10.21 1.64 0.14 0.00 4.80 0.00 0.00 40.79 0.00 7.73 0.00 391.47 0.00 7.38 55.51 0.00 2.23 7.71 0.00 68.56 229.86 0.11 1.77 0.14 3.96 0.07 0.00 0.00 138.77 0.00 0.00 9.10 12.93 55.23 0.00 378.56 5,923.45
% Distribution
0.12 0.07 0.10 0.02 0.36 2.83 0.04 0.07 0.00 0.42 0.02 24.67 0.00 0.00 0.13 0.00 0.07 0.46 1.66 0.00 24.09 2.20 0.00 0.01 0.23 0.29 0.00 17.64 0.31 0.05 0.02 0.17 0.03 0.00 0.00 0.08 0.00 0.00 0.69 0.00 0.13 0.00 6.61 0.00 0.12 0.94 0.00 0.04 0.13 0.00 1.16 3.88 0.00 0.03 0.00 0.07 0.00 0.00 0.00 2.34 0.00 0.00 0.15 0.22 0.93 0.00 6.39 100.00
consulting services
0.16 0.14 13.39 0.00 1.78 1.94 0.00 0.00 0.00 0.31 0.26 5.25 0.00 1.75 0.00 0.11 1.78 0.51 9.23 2.07 34.66 15.72 0.00 0.00 8.06 0.00 0.00 16.85 1.52 0.00 0.00 2.89 0.00 0.00 0.00 0.06 0.00 0.00 7.95 4.61 6.06 0.00 14.95 0.00 1.52 4.67 0.00 0.00 0.00 0.00 0.00 2.19 0.00 13.06 3.49 0.04 0.00 0.00 0.00 0.02 0.00 0.00 15.88 11.20 0.59 0.00 5.79 210.46
% Distribution
0.08 0.07 6.36 0.00 0.85 0.92 0.00 0.00 0.00 0.15 0.12 2.49 0.00 0.83 0.00 0.05 0.85 0.24 4.39 0.98 16.47 7.47 0.00 0.00 3.83 0.00 0.00 8.01 0.72 0.00 0.00 1.37 0.00 0.00 0.00 0.03 0.00 0.00 3.78 2.19 2.88 0.00 7.10 0.00 0.72 2.22 0.00 0.00 0.00 0.00 0.00 1.04 0.00 6.21 1.66 0.02 0.00 0.00 0.00 0.01 0.00 0.00 7.54 5.32 0.28 0.00 2.75 100.00

7.23 4.02 19.44 1.43 23.23 169.73 2.49 4.30 0.00 24.99 1.20 1,466.53 0.00 1.82 7.99 0.13 5.69 27.76 107.30 2.07 1,461.49 146.10 0.00 0.53 21.77 17.19 0.00 1,061.65 20.11 3.11 0.96 13.10 1.64 0.14 0.00 4.86 0.00 0.00 48.74 4.61 13.79 0.00 406.42 0.00 8.90 60.18 0.00 2.23 7.71 0.00 68.56 232.05 0.11 14.83 3.62 4.00 0.07 0.00 0.00 138.79 0.00 0.00 24.98 24.13 55.82 0.00 384.36 6,133.92
% Distribution
0.12 0.07 0.32 0.02 0.38 2.77 0.04 0.07 0.00 0.41 0.02 23.91 0.00 0.03 0.13 0.00 0.09 0.45 1.75 0.03 23.83 2.38 0.00 0.01 0.35 0.28 0.00 17.31 0.33 0.05 0.02 0.21 0.03 0.00 0.00 0.08 0.00 0.00 0.79 0.08 0.22 0.00 6.63 0.00 0.15 0.98 0.00 0.04 0.13 0.00 1.12 3.78 0.00 0.24 0.06 0.07 0.00 0.00 0.00 2.26 0.00 0.00 0.41 0.39 0.91 0.00 6.27 100.00
297

Statistical Annex 27b CONTRACTS AWARDED BY NATIONALITY OF CONTRACTOR, 2011 PROJECT LOANSORDINARY CAPITAL RESOURCES AND ASIAN DEVELOPMENT FUND COMBINED (amounts in $ million)
Origin country
goods and works

7.13 3.99 5.83 1.43 59.36 189.15 2.49 4.30 0.00 24.68 0.94 1,442.12 0.00 0.26 12.81 0.00 3.90 27.65 139.79 7.28 1,386.51 134.28 0.00 0.00 15.39 17.19 0.00 1,045.73 18.59 3.11 0.00 9.72 1.64 0.00 0.00 4.80 0.00 0.00 40.95 0.96 3.12 0.00 391.36 0.00 8.24 55.87 0.00 2.23 7.75 0.00 77.14 210.71 0.00 1.61 0.00 4.11 0.00 0.00 0.00 105.41 0.00 0.00 2.12 2.79 56.09 0.00 382.89 5,923.45
% Distribution
0.12 0.07 0.10 0.02 1.00 3.19 0.04 0.07 0.00 0.42 0.02 24.35 0.00 0.00 0.22 0.00 0.07 0.47 2.36 0.12 23.41 2.27 0.00 0.00 0.26 0.29 0.00 17.65 0.31 0.05 0.00 0.16 0.03 0.00 0.00 0.08 0.00 0.00 0.69 0.02 0.05 0.00 6.61 0.00 0.14 0.94 0.00 0.04 0.13 0.00 1.30 3.56 0.00 0.03 0.00 0.07 0.00 0.00 0.00 1.78 0.00 0.00 0.04 0.05 0.95 0.00 6.46 100.00
consulting services
0.16 0.14 12.99 0.00 1.78 1.94 0.00 0.00 0.00 0.31 0.20 2.84 0.00 1.73 0.79 0.01 1.66 0.51 9.02 4.50 38.59 14.99 0.00 0.00 8.06 0.00 0.00 18.44 1.52 0.00 0.00 2.89 0.00 0.00 0.00 0.27 0.00 0.00 7.94 0.69 6.03 0.00 14.97 0.00 1.52 4.67 0.00 0.00 0.00 0.00 0.00 1.44 0.00 13.06 3.49 0.04 0.00 0.00 0.00 0.00 0.00 0.00 7.22 4.31 9.22 0.00 12.54 210.46
% Distribution
0.08 0.07 6.17 0.00 0.85 0.92 0.00 0.00 0.00 0.15 0.10 1.35 0.00 0.82 0.38 0.00 0.79 0.24 4.29 2.14 18.34 7.12 0.00 0.00 3.83 0.00 0.00 8.76 0.72 0.00 0.00 1.37 0.00 0.00 0.00 0.13 0.00 0.00 3.77 0.33 2.87 0.00 7.11 0.00 0.72 2.22 0.00 0.00 0.00 0.00 0.00 0.68 0.00 6.21 1.66 0.02 0.00 0.00 0.00 0.00 0.00 0.00 3.43 2.05 4.38 0.00 5.96 100.00

7.29 4.13 18.82 1.43 61.15 191.08 2.49 4.30 0.00 24.99 1.13 1,444.96 0.00 2.00 13.60 0.01 5.56 28.17 148.80 11.78 1,425.10 149.27 0.00 0.00 23.45 17.19 0.00 1,064.17 20.11 3.11 0.00 12.60 1.64 0.00 0.00 5.07 0.00 0.00 48.89 1.65 9.15 0.00 406.33 0.00 9.76 60.55 0.00 2.23 7.75 0.00 77.14 212.15 0.00 14.67 3.49 4.15 0.00 0.00 0.00 105.41 0.00 0.00 9.34 7.10 65.31 0.00 395.43 6,133.92
% Distribution
0.12 0.07 0.31 0.02 1.00 3.12 0.04 0.07 0.00 0.41 0.02 23.56 0.00 0.03 0.22 0.00 0.09 0.46 2.43 0.19 23.24 2.43 0.00 0.00 0.38 0.28 0.00 17.35 0.33 0.05 0.00 0.21 0.03 0.00 0.00 0.08 0.00 0.00 0.80 0.03 0.15 0.00 6.63 0.00 0.16 0.99 0.00 0.04 0.13 0.00 1.26 3.46 0.00 0.24 0.06 0.07 0.00 0.00 0.00 1.72 0.00 0.00 0.15 0.12 1.06 0.00 6.45 100.00
298
Statistical Annexes
Statistical Annex 28a ESTIMATES OF PAYMENT TO SUPPLYING COUNTRIES FOR FOREIGN PROCUREMENT UNDER PROGRAM LENDING, 2011 By country of Origin
Ordinary capital Resources (OcR) country
asian Development Fund (aDF) $ Million

0.00 0.00 4.46 0.36 0.00 0.11 1.04 0.05 0.00 0.33 1.65 55.67 0.43 0.00 0.00 0.55 2.67 0.00 4.67 11.31 25.94 5.88 0.11 2.09 18.56 0.01 0.00 16.60 0.00 0.40 0.02 8.48 0.00 0.00 0.00 0.00 0.31 0.00 0.07 1.44 0.61 0.22 1.00 0.00 0.00 1.36 0.03 0.00 24.52 0.00 0.46 0.08 0.64 2.75 0.49 0.07 27.56 0.00 0.00 0.46 0.08 0.00 1.58 8.56 1.02 0.00 7.04 241.75
combined OcR and aDF $ Million

2.27 0.00 42.94 4.01 1.96 1.80 14.37 0.10 7.12 0.38 20.34 303.46 2.92 0.00 0.00 5.02 23.70 0.00 46.44 31.87 40.43 18.04 4.68 9.54 134.67 0.21 0.00 62.35 0.00 0.84 0.14 59.09 0.05 0.00 0.00 0.00 3.32 0.01 0.23 7.63 5.44 1.37 1.67 0.00 0.97 6.52 0.20 0.00 131.97 0.16 3.05 0.59 5.94 10.06 1.38 0.07 63.39 0.00 0.00 3.77 0.09 0.00 10.38 94.04 1.04 0.21 15.88 1,208.15
$ Million
2.26 0.00 38.48 3.64 1.96 1.69 13.34 0.05 7.12 0.05 18.69 247.80 2.49 0.00 0.00 4.47 21.03 0.00 41.77 20.56 14.49 12.16 4.57 7.45 116.10 0.20 0.00 45.75 0.00 0.44 0.13 50.61 0.05 0.00 0.00 0.00 3.02 0.01 0.16 6.19 4.83 1.14 0.68 0.00 0.97 5.16 0.17 0.00 107.46 0.16 2.59 0.50 5.30 7.30 0.90 0.01 35.83 0.00 0.00 3.31 0.00 0.00 8.80 85.48 0.02 0.21 8.84 966.40
% Distribution
0.23 0.00 3.98 0.38 0.20 0.17 1.38 0.01 0.74 0.01 1.93 25.64 0.26 0.00 0.00 0.46 2.18 0.00 4.32 2.13 1.50 1.26 0.47 0.77 12.01 0.02 0.00 4.73 0.00 0.05 0.01 5.24 0.01 0.00 0.00 0.00 0.31 0.00 0.02 0.64 0.50 0.12 0.07 0.00 0.10 0.53 0.02 0.00 11.12 0.02 0.27 0.05 0.55 0.76 0.09 0.00 3.71 0.00 0.00 0.34 0.00 0.00 0.91 8.85 0.00 0.02 0.91 100.00
% Distribution
0.00 0.00 1.84 0.15 0.00 0.05 0.43 0.02 0.00 0.14 0.68 23.03 0.18 0.00 0.00 0.23 1.10 0.00 1.93 4.68 10.73 2.43 0.04 0.86 7.68 0.00 0.00 6.87 0.00 0.17 0.01 3.51 0.00 0.00 0.00 0.00 0.13 0.00 0.03 0.60 0.25 0.09 0.41 0.00 0.00 0.56 0.01 0.00 10.14 0.00 0.19 0.03 0.26 1.14 0.20 0.03 11.40 0.00 0.00 0.19 0.03 0.00 0.65 3.54 0.42 0.00 2.91 100.00
% Distribution
0.19 0.00 3.55 0.33 0.16 0.15 1.19 0.01 0.59 0.03 1.68 25.12 0.24 0.00 0.00 0.42 1.96 0.00 3.84 2.64 3.35 1.49 0.39 0.79 11.15 0.02 0.00 5.16 0.00 0.07 0.01 4.89 0.00 0.00 0.00 0.00 0.28 0.00 0.02 0.63 0.45 0.11 0.14 0.00 0.08 0.54 0.02 0.00 10.92 0.01 0.25 0.05 0.49 0.83 0.11 0.01 5.25 0.00 0.00 0.31 0.01 0.00 0.86 7.78 0.09 0.02 1.31 100.00
299

Statistical Annex 28b ESTIMATES OF PAYMENT TO SUPPLYING COUNTRIES FOR FOREIGN PROCUREMENT UNDER PROGRAM LENDING, 2011 By nationality of contractor
Ordinary capital Resources (OcR) country
= nil. Note: Totals may not add up because of rounding.
asian Development Fund (aDF) $ Million

24.79 10.37 10.36 4.97 1.81 8.00 25.35 3.47 2.79 0.01 134.03 15.80 241.75
combined OcR and aDF $ Million

24.79 10.37 10.36 64.97 200.00 1.81 8.00 25.35 200.00 9.87 102.79 0.01 534.03 15.80 1,208.15
$ Million
60.00 200.00 200.00 6.40 100.00 400.00 966.40
% Distribution
6.21 20.70 20.70 0.66 10.35 41.39 100.00
% Distribution
10.26 4.29 4.28 2.05 0.75 0.00 3.31 10.48 1.44 1.15 0.01 55.44 6.53 100.00
% Distribution
2.05 0.86 0.86 5.38 16.55 0.15 0.66 2.10 16.55 0.82 8.51 44.20 1.31 100.00
300
Statistical Annexes
Statistical Annex 29 CUMULATIVE CONTRACTS AWARDED BY COUNTRY OF ORIGIN TECHNICAL ASSISTANCE OPERATIONS (amounts in $ million; as of 31 December 2011)
aDBs Own Resources
1.59 199.17 1.52 0.59 28.06 7.14 0.86 3.11 117.77 38.38 0.10 13.67 2.50 10.46 38.63 0.41 34.15 38.18 83.54 22.07 2.69 6.33 37.76 1.94 0.03 8.81 2.52 3.77 15.20 0.17 0.32 0.01 2.71 0.99 0.01 14.50 29.85 79.40 5.94 33.44 0.02 1.47 131.51 0.45 0.90 24.21 0.66 11.71 16.85 7.99 18.36 1.15 1.03 16.56 1.49 1.17 0.46 0.18 0.06 204.82 294.73 3.17 0.89 6.33 23.21 3.31 0.56 1,661.52
country
Afghanistan Armenia Australia Austria Azerbaijan Bangladesh Belgium Bhutan Brunei Darussalam Cambodia Canada China, Peoples Republic of Cook Islands Denmark Fiji Finland France Georgia Germany Hong Kong, China India Indonesia Ireland Italy Japan Kazakhstan Kiribati Korea, Republic of Kyrgyz Republic Lao Peoples Democratic Republic Luxembourg Malaysia Maldives Marshall Islands Micronesia, Federated States of Mongolia Myanmar Nauru Nepal The Netherlands New Zealand Norway Pakistan Palau Papua New Guinea Philippines Portugal Samoa Singapore Solomon Islands Spain Sri Lanka Sweden Switzerland Taipei,China Tajikistan Thailand Timor-Leste Tonga Turkey Turkmenistan Tuvalu United Kingdom United States Uzbekistan Vanuatu Viet Nam International Organizations Regional Others tOtaL
% Distribution
0.09 11.98 0.09 0.03 1.68 0.43 0.05 0.18 7.08 2.31 0.00 0.82 0.15 0.63 2.32 0.02 2.05 2.29 5.02 1.32 0.16 0.38 2.27 0.11 0.00 0.53 0.15 0.22 0.91 0.01 0.01 0.00 0.16 0.05 0.00 0.87 1.79 4.77 0.35 2.01 0.00 0.08 7.91 0.02 0.05 1.45 0.04 0.70 1.01 0.48 1.10 0.06 0.06 0.99 0.08 0.07 0.02 0.01 12.32 17.73 0.19 0.05 0.38 1.39 0.19 0.03 100.00
administered trust Funds

1.78 88.88 0.12 0.29 10.26 1.38 0.42 3.61 56.33 12.31 0.27 10.55 1.88 7.21 23.74 0.03 23.79 14.81 40.68 20.65 0.41 1.45 19.68 1.57 0.05 3.57 0.95 2.73 0.10 2.69 0.06 0.19 1.68 0.70 0.02 8.10 28.46 35.55 5.25 13.70 0.01 0.71 42.14 0.07 0.19 7.28 0.24 6.23 6.82 7.13 6.68 0.07 1.37 16.11 0.48 0.07 0.27 0.05 0.02 85.53 127.19 0.78 0.14 6.14 4.07 9.20 774.85
% Distribution
0.23 11.47 0.01 0.03 1.32 0.17 0.05 0.46 7.27 1.58 0.03 1.36 0.24 0.93 3.06 0.00 3.07 1.91 5.24 2.66 0.05 0.18 2.53 0.20 0.00 0.46 0.12 0.35 0.01 0.34 0.00 0.02 0.21 0.09 0.00 1.04 3.67 4.58 0.67 1.76 0.00 0.09 5.43 0.01 0.02 0.94 0.03 0.80 0.88 0.92 0.86 0.00 0.17 2.08 0.05 0.00 0.03 0.00 0.00 11.03 16.41 0.10 0.01 0.79 0.52 1.18 100.00
Japan special Fund

0.20 134.70 0.92 0.02 7.54 2.26 0.15 0.54 69.47 8.08 19.04 0.47 9.59 26.76 36.84 22.02 38.85 12.42 0.17 2.68 32.59 0.13 0.01 4.18 0.22 1.16 0.09 4.57 0.03 0.01 0.22 0.84 0.01 3.68 32.28 70.23 3.48 4.67 1.78 37.91 0.10 0.90 10.85 0.22 1.01 3.97 10.12 13.81 2.71 0.18 12.31 0.15 0.25 0.05 0.03 141.85 177.98 0.81 1.20 3.42 4.90 3.12 980.74
% Distribution
0.02 13.73 0.09 0.00 0.76 0.23 0.01 0.05 7.08 0.82 1.94 0.04 0.97 2.72 3.75 2.24 3.96 1.26 0.01 0.27 3.32 0.01 0.00 0.42 0.02 0.11 0.00 0.46 0.00 0.00 0.02 0.08 0.00 0.37 3.29 7.16 0.35 0.47 0.18 3.86 0.01 0.09 1.10 0.02 0.10 0.40 1.03 1.40 0.27 0.01 1.25 0.01 0.02 0.00 0.00 14.46 18.14 0.08 0.12 0.34 0.50 0.31 100.00

3.58 422.75 2.56 0.89 45.86 10.78 1.43 7.25 243.57 58.78 0.37 43.26 4.85 27.26 89.13 0.44 94.79 75.01 163.06 55.14 3.26 10.46 90.03 3.63 0.09 16.56 3.69 7.66 0.18 22.47 0.25 0.52 0.23 5.23 1.70 0.04 26.28 90.60 185.18 14.67 51.81 0.02 3.95 211.57 0.62 1.99 42.35 1.11 18.95 27.64 25.25 38.85 3.93 2.58 44.98 2.12 1.48 0.78 0.23 0.11 432.20 599.90 4.75 2.23 15.89 32.17 15.63 0.56 3,417.11
% Distribution
0.10 12.37 0.07 0.02 1.34 0.31 0.04 0.21 7.12 1.72 0.01 1.26 0.14 0.79 2.60 0.01 2.77 2.19 4.77 1.61 0.09 0.30 2.63 0.10 0.00 0.48 0.10 0.22 0.00 0.65 0.00 0.01 0.00 0.15 0.05 0.00 0.76 2.65 5.41 0.42 1.51 0.00 0.11 6.19 0.01 0.05 1.23 0.03 0.55 0.80 0.73 1.13 0.11 0.07 1.31 0.06 0.04 0.02 0.00 0.00 12.64 17.55 0.13 0.06 0.46 0.94 0.45 0.01 100.00
= nill, 0.00 = amount or percentage is less than 0.01. Note: Totals may not add up because of rounding.
301

Statistical Annex 30 CONTRACTS AWARDED BY NATIONALITY OF CONSULTANT, 20092011 TECHNICAL ASSISTANCE OPERATIONS (amounts in $ million)
2009 country
2010 %
0.17 0.04 15.63 0.10 0.00 2.43 0.35 0.08 0.00 0.20 4.87 4.74 0.07 0.34 0.42 0.37 3.14 0.00 2.03 1.87 9.08 1.49 0.45 0.21 5.28 0.07 0.01 0.69 0.32 0.19 0.07 0.43 0.01 0.01 0.00 0.22 0.00 0.01 1.60 4.73 3.63 0.07 1.63 0.00 0.08 5.89 0.02 0.00 1.67 0.03 1.34 0.59 0.59 3.14 0.00 0.05 0.44 0.00 0.23 0.00 0.01 0.00 9.78 8.28 0.33 0.01 0.46 100.00
2011 %
0.07 0.13 9.88 0.04 0.02 4.57 0.20 0.19 0.01 0.23 5.24 3.86 0.01 2.04 0.09 0.09 2.77 0.17 3.17 3.36 9.87 1.44 0.42 0.29 1.17 0.27 0.01 0.68 0.21 0.42 0.00 0.44 0.00 0.02 0.11 0.48 0.00 0.01 1.44 2.52 4.71 0.03 1.81 0.00 0.21 9.20 0.05 0.05 1.16 0.02 1.58 0.89 0.53 0.15 0.02 0.15 0.80 0.06 0.14 0.01 0.00 0.00 9.15 12.41 0.28 0.07 0.61 100.00
amount
0.31 0.07 28.66 0.18 0.01 4.46 0.63 0.15 0.00 0.37 8.94 8.69 0.13 0.62 0.77 0.68 5.75 0.00 3.72 3.43 16.65 2.74 0.82 0.39 9.69 0.13 0.02 1.26 0.58 0.35 0.13 0.80 0.01 0.01 0.00 0.40 0.00 0.02 2.94 8.67 6.66 0.13 2.99 0.00 0.15 10.81 0.05 0.00 3.07 0.05 2.46 1.08 1.08 5.75 0.00 0.10 0.81 0.00 0.42 0.00 0.01 0.00 17.93 15.18 0.61 0.01 0.85 183.40
amount
0.13 0.24 18.30 0.07 0.03 8.46 0.37 0.34 0.02 0.43 9.70 7.15 0.01 3.79 0.17 0.16 5.13 0.31 5.87 6.23 18.29 2.67 0.78 0.54 2.16 0.50 0.01 1.27 0.40 0.78 0.01 0.82 0.00 0.05 0.20 0.88 0.00 0.01 2.67 4.68 8.72 0.06 3.36 0.00 0.39 17.04 0.10 0.10 2.15 0.04 2.92 1.65 0.98 0.28 0.04 0.28 1.48 0.11 0.26 0.01 0.01 0.00 16.94 22.99 0.51 0.13 1.13 185.25
amount
0.21 0.32 20.12 0.13 0.02 4.09 1.44 0.14 0.00 0.48 9.06 8.09 0.00 2.77 1.10 0.67 8.80 0.03 7.90 4.74 13.04 5.25 0.98 0.74 6.59 0.25 0.00 2.81 0.20 0.42 0.00 2.18 0.06 0.12 0.00 0.81 0.00 0.01 1.31 4.44 17.91 1.48 2.92 0.00 0.19 12.66 0.10 0.10 1.53 0.12 2.38 3.13 0.20 0.43 0.04 0.27 7.20 0.05 0.17 0.00 0.02 0.05 14.93 37.87 0.83 0.13 0.80 214.86
%
0.10 0.15 9.37 0.06 0.01 1.90 0.67 0.07 0.00 0.22 4.22 3.77 0.00 1.29 0.51 0.31 4.10 0.01 3.68 2.21 6.07 2.44 0.46 0.34 3.07 0.12 0.00 1.31 0.09 0.20 0.00 1.01 0.03 0.06 0.00 0.37 0.00 0.00 0.61 2.07 8.34 0.69 1.36 0.00 0.09 5.89 0.05 0.05 0.71 0.06 1.11 1.46 0.09 0.20 0.02 0.13 3.35 0.02 0.08 0.00 0.01 0.02 6.95 17.63 0.38 0.06 0.37 100.00
302
Statistical Annexes
Statistical Annex 31 CONTRACTS AWARDED BY NATIONALITY OF CONSULTANT, 20092011 GRANT OPERATIONSADB-Administered Consulting Services (amounts in $ million)
2009 country
= nil, 0.00 = amount or percentage is less than 0.01. Note: Totals may not add up because of rounding.
2010 %
0.22 23.70 0.85 3.04 2.22 3.32 0.59 3.33 4.86 0.66 0.24 1.68 0.42 3.10 0.75 13.04 17.39 19.90 0.70 100.00
2011 %
5.86 6.93 18.07 4.36 3.88 11.05 1.60 5.09 9.21 2.91 7.08 1.55 5.48 3.88 7.17 5.88 100.00
amount
0.03 2.79 0.10 0.36 0.26 0.39 0.07 0.39 0.57 0.08 0.03 0.20 0.05 0.37 0.09 1.54 2.05 2.35 0.08 11.79
amount
0.12 0.14 0.37 0.09 0.08 0.23 0.03 0.11 0.19 0.06 0.15 0.03 0.11 0.08 0.15 0.12 2.06
amount
2.78 0.07 0.11 1.55 0.39 0.03 0.03 0.05 0.10 0.15 0.35 0.06 0.08 5.74
%
48.50 1.20 1.90 27.03 6.71 0.47 0.53 0.78 1.78 2.53 6.14 1.09 1.34 100.00
303

Statistical Annex 32 CONTRACTS AWARDED BY NATIONALITY OF CONTRACTOR, 20092011 GRANT OPERATIONSExecuting Agency-Administered Goods, Works, and Consulting Services (amounts in $ million)
2009 country
2010 %
0.74 1.49 4.87 0.69 0.02 1.06 0.01 0.49 0.00 2.84 0.59 3.46 0.00 0.01 0.01 0.05 8.26 0.00 3.47 5.54 1.68 3.00 0.00 0.10 1.59 0.05 0.00 10.92 2.12 1.57 0.05 0.06 0.03 0.00 0.03 1.91 0.00 0.00 4.74 0.27 3.22 0.00 1.67 0.00 0.28 0.30 0.00 0.12 0.13 0.33 0.01 1.70 0.11 1.07 0.00 0.14 2.07 0.01 0.02 0.07 0.00 0.53 0.16 0.78 23.30 0.00 2.26 100.00
2011 %
19.74 0.03 3.62 0.00 0.86 2.27 0.00 0.53 0.00 3.97 0.19 16.22 0.00 0.06 0.10 1.01 0.98 0.00 0.83 0.00 1.98 1.26 1.07 0.00 1.54 0.28 0.00 0.12 1.59 8.68 0.00 0.94 0.00 0.00 0.04 5.66 0.00 0.00 6.89 0.07 1.74 0.00 1.30 0.00 0.55 0.89 0.00 0.82 1.39 0.83 0.00 4.41 0.02 0.00 0.00 0.58 0.19 0.05 2.33 0.00 0.00 0.00 0.81 2.29 0.04 0.00 1.24 100.00
amount
4.52 9.10 29.71 4.20 0.10 6.50 0.05 2.97 0.00 17.34 3.59 21.15 0.00 0.04 0.05 0.33 50.46 0.01 21.16 33.81 10.27 18.33 0.02 0.62 9.70 0.29 0.00 66.68 12.95 9.57 0.28 0.36 0.18 0.00 0.19 11.63 0.00 0.00 28.95 1.65 19.66 0.00 10.18 0.00 1.72 1.84 0.00 0.74 0.77 1.99 0.05 10.40 0.69 6.56 0.00 0.87 12.62 0.04 0.12 0.43 0.00 3.24 0.96 4.76 142.27 0.00 13.82 610.48
amount
77.04 0.12 14.11 0.00 3.37 8.87 0.00 2.06 0.00 15.48 0.76 63.30 0.00 0.25 0.38 3.93 3.81 0.00 3.23 0.00 7.72 4.91 4.17 0.01 5.99 1.10 0.00 0.47 6.19 33.88 0.00 3.67 0.00 0.00 0.17 22.09 0.00 0.00 26.90 0.29 6.79 0.00 5.06 0.00 2.16 3.48 0.00 3.19 5.41 3.24 0.00 17.22 0.09 0.00 0.00 2.26 0.74 0.21 9.09 0.00 0.00 0.00 3.14 8.93 0.14 0.00 4.85 390.27
amount
3.96 0.00 32.56 0.00 0.00 9.11 0.00 61.06 0.00 14.00 39.01 143.94 0.06 18.05 0.29 17.09 8.86 0.00 39.51 1.93 33.14 2.30 0.00 10.07 30.44 0.00 0.00 38.96 32.27 20.96 38.05 4.96 0.00 0.32 0.26 12.79 0.00 0.00 54.19 0.00 1.31 2.57 4.36 0.00 2.39 9.94 0.00 3.56 2.94 9.83 0.39 10.31 0.00 3.29 0.00 8.24 1.16 4.80 0.13 23.72 0.00 0.00 8.88 478.44 4.09 0.00 11.76 1,260.24
%
0.31 0.00 2.58 0.00 0.00 0.72 0.00 4.85 0.00 1.11 3.10 11.42 0.00 1.43 0.02 1.36 0.70 0.00 3.14 0.15 2.63 0.18 0.00 0.80 2.42 0.00 0.00 3.09 2.56 1.66 3.02 0.39 0.00 0.03 0.02 1.01 0.00 0.00 4.30 0.00 0.10 0.20 0.35 0.00 0.19 0.79 0.00 0.28 0.23 0.78 0.03 0.82 0.00 0.26 0.00 0.65 0.09 0.38 0.01 1.88 0.00 0.00 0.70 37.96 0.32 0.00 0.93 100.00
304
overall production Department of External Relations Fulfillment Office of Administrative Services, Printing Unit The Annual Report 2011 is printed using vegetable oil-based inks on recycled paper. The Annual Report 2011 can be downloaded from ADBs website at www.adb.org
About the Asian Development Bank

ADBs vision is an Asia and pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the regions many successes, it remains home to two-thirds of the worlds poor: 1.8 billion people who live on less than $2 a day, with 903 million struggling on less than $1.25 a day. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration. Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance.
ISBN 978-92-9092-634-4
Asian Development Bank 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, philippines www.adb.org
printed on recycled paper
9 789290 926344
printed in the philippines

ADB Annual Report 2011 - Financial Report

Diunggah oleh

Informasi Dokumen

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

ADB Annual Report 2011 - Financial Report

Diunggah oleh

Hak Cipta:

Format Tersedia

2011

Annual Report 2011

Note: In this report, $ refers to US dollars.

Printed on recycled paper

Managements Discussion and Analysis

ORDINARY CAPITAL RESOURCES

Basis of Financial Reporting

Selected Financial Data

Overall Financial Results

Managements Discussion and Analysis

(Write Back on) Provision for Loan Losses

586.6 69,098.6 0.85 3.58 1.36 2.11 0.69

548.0 62,555.4 0.88 3.54 1.56 2.16 0.81

420.1 54,828.0 0.77 2.84 2.55 2.87 1.83

699.8 50,443.0 1.39 4.82 4.14 3.70 3.29

711.4 42,757.0 1.66 5.20 5.14 4.72 4.68

Table 1b: Selected US Dollar Interest Rates

Item 6-Month US Dollar LIBOR 2-Year US Treasury

2011 0.81 0.24

2010 0.46 0.60

2009 0.43 1.14

2008 1.75 0.77

2007 4.60 3.06

Asian Development Bank Annual Report 2011

Table 2: Overall Financial Results for the year Ended 31 December

Managements Discussion and Analysis

2011 1 January 1.53 4.11 1 July 1.53 4.19

2010 1.62 4.14 1.62 3.83

pscLs yen US dollar yen US dollar

Managements Discussion and Analysis

Table 4: Funding cost Margin

Financing Resources Capital and Reserves

Asian Development Bank Annual Report 2011

2011 14,008.8 4.6 6.8 16 52 6 7 620.6 8 2

2010 14,940.1 4.9 6.1 20 72 6 7 30.0 1 1

Figure 1: Effect of swaps on currency composition of Borrowings

Currency Composition of Outstanding Borrowings

Currency Composition of Outstanding Borrowings

Other Currenciesb 1.4%

Managements Discussion and Analysis

Figure 2: Effect of swaps on interest Rate structures of Borrowings

Interest Rate Structure of Outstanding Borrowings

Interest Rate Structure of Outstanding Borrowings

2011 14,399.5 195.9 2,136.0 4,407.5 562.4 21,701.3

2010 12,591.6 218.2 1,933.0 3,090.5 453.1 18,286.4

Asian Development Bank Annual Report 2011

Table 7: Return on Liquidity portfolio

2011 3.44 0.09 0.57 0.44 3.57

2010 3.50 0.15 0.46 0.30 1.36

Spread over funding cost at 31 December.

2011 56,902.6 28,349.9 611.5 2,480.4 1,573.9 89,918.3

2010 52,142.8 24,577.0 471.5 2,331.7 1,267.6 80,790.6

Managements Discussion and Analysis

2010 Rating (114)

Figure 3: sovereign Exposure by credit Quality

Low credit risk 44.9

Table 12: Sovereign portfolio Expected Loss

Low credit risk 29.0

Table 13: nonsovereign country Exposure

Managements Discussion and Analysis

Table 14: nonsovereign sector Exposure

Table 15: nonsovereign portfolio Expected Loss

2010 % of nsO portfolioa

Asian Development Bank Annual Report 2011