ASIAN DEVELOPMENT BANK — Annual Report 2011

May 9, 2012

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V o l u M e 2 2011 Financial Report

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Annual Report 2011

V O L U M E 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. 3. Asian Development Bank. 4. Annual report. I. Asian Development Bank.

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

ManagEMEnt’s DiscUssiOn anD anaLysis

ManagEMEnt’s DiscUssiOn anD anaLysis
i. OVERViEw	7
ii. ORDinaRy capitaL REsOURcEs	7
Basis of Financial Reporting	7
selected Financial Data	8
Overall Financial Results	8
Operating activities	11
Loans	11
guarantees	13
syndications	14
Equity investments	14
Financing Resources	14
capital and Reserves	14
Borrowings	15
Liquidity portfolio	17
contractual Obligations	18
Risk Management	18
credit Risk	18
Market Risk	25
Liquidity Risk	26
Operational Risk	26
capital adequacy	26
asset and Liability Management	27
internal control over Financial Reporting	27
critical accounting policies and Estimates	27
iii. spEciaL FUnDs	28
asian Development Fund	28
technical assistance special Fund	31
Japan special Fund	32
aDB institute	32
asian tsunami Fund	32
pakistan Earthquake Fund	33
Regional cooperation and integration Fund	33
climate change Fund	33
asia pacific Disaster Response Fund	34
iV. gRant cOFinancing	34
Japan Fund for poverty Reduction	35
Japan scholarship program	35
appEnDix: cOnDEnsED ManagEMEnt REpORting BaLancE shEEts	37

FinanciaL statEMEnts

FinanciaL statEMEnts
i. Ordinary capital Resources (OcR)
Management’s Report on internal control over Financial Reporting	39
independent auditors’ Report on internal control over Financial Reporting	40
independent auditors’ Report on Financial statements	42
OcR-1 Balance sheet, 31 December 2011 and 2010	44
OcR-2 statement of income and Expenses for the years Ended 31 December 2011 and 2010	46
OcR-3 statement of comprehensive income for the years Ended 31 December 2011 and 2010	47
OcR-4 statement of changes in capital and Reserves for the years Ended
31 December 2011 and 2010	48
OcR-5 statement of cash Flows for the years Ended 31 December 2011 and 2010	50
OcR-6 summary statement of Loans, 31 December 2011 and 2010	51
OcR-7 summary statement of Borrowings, 31 December 2011 and 2010	53
OcR-8 statement of subscriptions to capital stock and Voting power, 31 December 2011	55
OcR-9 notes to Financial statements, 31 December 2011 and 2010	57
ii. asian Development Fund (aDF)
Management’s Report on internal control over Financial Reporting	104
independent auditors’ Report on internal control over Financial Reporting	105
independent auditors’ Report on Financial statements	107
aDF-1 special purpose statement of assets, Liabilities, and Fund Balances,
31 December 2011 and 2010	109
aDF-2 special purpose statement of Revenue and Expenses for the years Ended
31 December 2011 and 2010	110
aDF-3 special purpose statement of comprehensive Loss for the years Ended
31 December 2011 and 2010	111
aDF-4 special purpose statement of changes in Fund Balances for the years Ended
31 December 2011 and 2010	112
aDF-5 special purpose statement of cash Flows for the years Ended
31 December 2011 and 2010	113
aDF-6 special purpose summary statement of Loans, 31 December 2011 and 2010	114
aDF-7 special purpose statement of Resources, 31 December 2011	116
aDF-8 notes to special purpose Financial statements, 31 December 2011 and 2010	117
iii. technical assistance special Fund (tasF)
Management’s Report on internal control over Financial Reporting	131
independent auditors’ Report on internal control over Financial Reporting	132
independent auditors’ Report on Financial statements	134
tasF-1 statement of Financial position, 31 December 2011 and 2010	136
tasF-2 statement of activities and changes in net assets for the years Ended
31 December 2011 and 2010	137
tasF-3 statement of cash Flows for the years Ended 31 December 2011 and 2010	138
tasF-4 statement of Resources, 31 December 2011	139
tasF-5 summary statement of technical assistance approved and Effective for the year Ended
31 December 2011	140
tasF-6 notes to Financial statements, 31 December 2011 and 2010	141
iV. Japan special Fund (JsF)
Management’s Report on internal control over Financial Reporting	148
independent auditors’ Report on internal control over Financial Reporting	149
independent auditors’ Report on Financial statements	151
JsF-1 statement of Financial position, 31 December 2011 and 2010	152
JsF-2 statement of activities and changes in net assets for the years Ended
31 December 2011 and 2010	153
JsF-3 statement of cash Flows for the years Ended 31 December 2011 and 2010	154
JsF-4 notes to Financial statements, 31 December 2011 and 2010	155

V. asian Development Bank institute (aDBi)
independent auditors’ Report	162
aDBi-1 statement of Financial position, 31 December 2011 and 2010	163
aDBi-2 statement of activities and changes in net assets for the years Ended
31 December 2011 and 2010	164
aDBi-3 statement of cash Flows for the years Ended 31 December 2011 and 2010	165
aDBi-4 notes to Financial statements, 31 December 2011 and 2010	166
Vi. asian tsunami Fund (atF)
Management’s Report on internal control over Financial Reporting	179
independent auditors’ Report on internal control over Financial Reporting	180
independent auditors’ Report on Financial statements	182
atF-1 statement of Financial position, 31 December 2011 and 2010	183
atF-2 statement of activities and changes in net assets for the years Ended
31 December 2011 and 2010	184
atF-3 statement of cash Flows for the years Ended 31 December 2011 and 2010	185
atF-4 notes to Financial statements, 31 December 2011 and 2010	186
Vii. pakistan Earthquake Fund (pEF)
Management’s Report on internal control over Financial Reporting	191
independent auditors’ Report on internal control over Financial Reporting	192
independent auditors’ Report on Financial statements	194
pEF-1 statement of Financial position, 31 December 2011 and 2010	195
pEF-2 statement of activities and changes in net assets for the years Ended
31 December 2011 and 2010	196
pEF-3 statement of cash Flows for the years Ended 31 December 2011 and 2010	197
pEF-4 notes to Financial statements, 31 December 2011 and 2010	198
Viii. Regional cooperation and integration Fund (RciF)
Management’s Report on internal control over Financial Reporting	204
independent auditors’ Report on internal control over Financial Reporting	205
independent auditors’ Report on Financial statements	207
RciF-1 statement of Financial position, 31 December 2011 and 2010	208
RciF-2 statement of activities and changes in net assets for the years Ended
31 December 2011 and 2010	209
RciF-3 statement of cash Flows for the years Ended 31 December 2011 and 2010	210
RciF-4 notes to Financial statements, 31 December 2011 and 2010	211
ix. climate change Fund (ccF)
Management’s Report on internal control over Financial Reporting	216
independent auditors’ Report on internal control over Financial Reporting	217
independent auditors’ Report on Financial statements	219
ccF-1 statement of Financial position, 31 December 2011 and 2010	220
ccF-2 statement of activities and changes in net assets for the years Ended
31 December 2011 and 2010	221
ccF-3 statement of cash Flows for the years Ended 31 December 2011 and 2010	222
ccF-4 notes to Financial statements, 31 December 2011 and 2010	223
x. asia pacific Disaster Response Fund (apDRF)
Management’s Report on internal control over Financial Reporting	228
independent auditors’ Report on internal control over Financial Reporting	229
independent auditors’ Report on Financial statements	231
apDRF-1 statement of Financial position, 31 December 2011 and 2010	232
apDRF-2 statement of activities and changes in net assets for the years Ended
31 December 2011 and 2010	233
apDRF-3 statement of cash Flows for the years Ended 31 December 2011 and 2010	234
apDRF-4 notes to Financial statements, 31 December 2011 and 2010	235
statisticaL annExEs	240

Management’s Discussion and Analysis

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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 TAgreement 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 ADB’s 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 ADB’s 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.

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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 ADB’s 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 income[1] 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.

1 Operating income is defined as statutory net income before unrealized gains (or losses) on fair value changes of borrowings and derivatives, and ADB’s proportionate share in unrealized gains (or losses) from equity investment accounted under the equity method.

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Management’s Discussion and Analysis

Table 1a:selected Financial Data for the year ($ million)	Ended 31 December
item	2011 2010 2009 2008 2007
statutory Reporting Basis Revenue From Loans From Investments From Guarantees From Equity Investments From Other Sources total Revenue Borrowings and Related Expenses Administrative Expensesa (Write Back on) Provision for Loan Losses 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 (%)	649.6 680.5 959.8 1,358.0 1,442.3 365.3 367.5 459.4 677.2 683.2 15.7 11.3 9.2 6.9 5.1 44.0 58.4 24.5 3.7 58.9 20.5 24.2 18.6 18.7 18.8
	1,095.1 1,141.9 1,471.5 2,064.5 2,208.3
	367.9 386.0 741.7 1,208.4 1,389.8 315.9 294.3 193.6 141.0 127.3 (7.4) (44.7) 115.8 (3.5) (0.6) 5.0 3.5 5.1 14.7 3.3
	681.4 639.1 1,056.2 1,360.6 1,519.8
	190.1 80.3 23.3 (28.1) 22.9 5.7 42.7 (466.2) 450.6 53.8
	609.5 625.8 (27.5) 1,126.3 765.2 69,111.9 62,444.5 54,655.0 50,394.0 42,780.0 0.88 1.00 (0.05) 2.24 1.79 3.74 3.97 (0.18) 7.65 11.29 1.34 1.61 2.67 3.84 5.00 2.04 2.17 2.93 3.20 4.68 1.13 2.06 2.91 4.11 4.32
Management Reporting Basis Operating Incomec Average Earning Assetsb Annual Return on Average Earning Assetsd(%) Return on Equity (%) Return on Loans (%) Return on Investments (%) Cost of Borrowings (%)	586.6 548.0 420.1 699.8 711.4 69,098.6 62,555.4 54,828.0 50,443.0 42,757.0 0.85 0.88 0.77 1.39 1.66 3.58 3.54 2.84 4.82 5.20 1.36 1.56 2.55 4.14 5.14 2.11 2.16 2.87 3.70 4.72 0.69 0.81 1.83 3.29 4.68

( ) = 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 ADB’s 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 2011 2010 2009 2008 2007 6-Month US Dollar LIBOR 0.81 0.46 0.43 1.75 4.60 2-Year US Treasury 0.24 0.60 1.14 0.77 3.06 LIBOR = London interbank offered rate, US = United States.

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Asian Development Bank Annual Report 2011

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

($ million)

Table 2:Overall Financial Results for the year Ended 31 December ($ million)
item	2011 2010 change
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/expenses—net Borrowings and related expenses Interest and other expenses Realized gain administrative expenses—OcR Operating income net unrealized gains net unrealized gains on proportionate share of income from Ei accounted under the equity method net income	657.0 703.4 (46.4) 664.3 688.0 (23.7) 7.4 22.9 (15.5) (14.7) (7.5) (7.2) 449.6 401.3 48.3 365.3 367.5 (2.2) 84.3 33.8 50.5 146.8 71.5 75.3 122.7 55.7 67.0 11.8 4.8 7.0 (2.1) (7.6) 5.5 14.1 17.8 (3.8) 0.3 0.7 (0.4) 11.5 50.7 (39.2) 362.4 384.6 (22.2) 367.9 386.0 (18.1) (5.5) (1.4) (4.1) 315.9 294.3 21.6 586.6 548.0 38.6 5.7 42.7 (37.1) 17.2 35.0 (17.8) 609.5 625.8 (16.3)
EI = equity investments, OCR = ordinary capital resources. Note: Numbers may not sum precisely because of rounding.

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 ADB’s credit spreads.

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Management’s Discussion and Analysis

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.

ADB’s 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 borrower’s request. The lending rates for pool-based single currency loans are based

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Asian Development Bank Annual Report 2011

on the previous semester’s 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 ADB’s 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.

ADB’s 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 ADB’s 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 2010 pscLs 1 January 1.53 1.62 yen 4.11 4.14 US dollar 1 July 1.53 1.62 yen 4.19 3.83 US dollar PSCL = pool-based single currency loan, US = United States. aLending 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.

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Management’s Discussion and Analysis

	Table 4:Funding cost Margin (% per year) (Rebate) or surcharge type 1 July 2011 1 January 2011 1 July 2010 1 January 2010 LIBOR-based Loans US dollar (0.21) (0.23) (0.26) (0.28) yen (0.27) (0.27) (0.27) (0.28) CSF Loans – US dollar 0.18 0.18 0.18 0.22 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 ADB’s 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 ADB’s 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 ADB’s 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 guarantees[2] 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.

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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 ADB’s 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-loans[4] 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 ADB’s 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 ADB’s 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 member’s advice that it will no longer

3 Depending on whether ADB retains risk or not, ADB may or may not have a contingent liability.

4 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

Management’s 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 ADB’s obligations incurred on borrowings or guarantees under OCR. No call has ever been made on ADB’s callable capital.

In accordance with Article 40 of the Charter, the Board of Governors annually approves the allocation of the previous year’s 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 Board’s 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 ADB’s 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

ADB’s 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.

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Asian Development Bank Annual Report 2011

Table 5: Borrowings ($ million)

item	2011	2010
Long term
Total Principal Amount	14,008.8	14,940.1
Average Maturity to First Call (years)	4.6	4.9
Average Final Maturity (years)	6.8	6.1
Number of Transactions
Public Offerings	16	20
Private Placements	52	72
Number of Currencies (before swaps)
Public Offerings	6	6
Private Placements	7	7
short terma
Total Principal Amountb	620.6	30.0
Number of Transactions	8	1
Number of Currencies	2	1
aAll euro-commercial papers.
bAt year-end, the outstanding principal amount was $437.6 million in 2011 and nil in 2010.

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Figure 1: Effect of swaps on currency composition of Borrowings
As of 31 December 2011
Currency Composition of Currency Composition of
Outstanding Borrowings Outstanding Borrowings
(Before Swaps) (After Swaps)
Other Currencies [a] Japanese yen
19.5% 7.2%
Japanese yen
6.4%
US dollar
57.3%
Australian dollar
16.8% US dollar
91.4%
Other Currenciesb
1.4%
----- End of picture text -----

a 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. b 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

Management’s Discussion and Analysis

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Figure 2: Effect of swaps on interest Rate structures of Borrowings
As of 31 December 2011
Interest Rate Structure of Interest Rate Structure of
Outstanding Borrowings Outstanding Borrowings
(Before Swaps) (After Swaps)
Variable Variable
6.1% 91.8%
Fixed Fixed
93.9% 8.2%
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and highly structured cross-currency swap to finance the disbursement of ADB’s 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 ADB’s 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 ADB’s earning base. ADB’s Investment Authority governs management of ADB’s 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 hoc—all 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	2011	2010
Core Liquidity Portfolio	14,399.5	12,591.6
Operational Cash Portfolio	195.9	218.2
Cash Cushion Portfolio	2,136.0	1,933.0
Discretionary Liquidity Portfolio	4,407.5	3,090.5
Other Portfolio	562.4	453.1
total	21,701.3	18,286.4

a 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.

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Asian Development Bank Annual Report 2011

	Table 7:Return on Liquidity portfolio (%)	annualized Financial Return 2011 2010 3.44 3.50 0.09 0.15 0.57 0.46 0.44 0.30 3.57 1.36
	item
	Core Liquidity Portfolio Operational Cash Portfolio Cash Cushion Portfolio Discretionary Liquidity Portfolioa Other Portfolio
	aSpread 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 ADB’s 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 ADB’s 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 ADB’s 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

Table 8:contractual cash Obligations
($ million)
item	2011	2010
Long-Term Debt	56,902.6	52,142.8
Undisbursed Loan Commitments	28,349.9	24,577.0
Undisbursed Equity Investment Commitments	611.5	471.5
Guarantee Commitments	2,480.4	2,331.7
Other Long-Term Liabilities	1,573.9	1,267.6
total	89,918.3	80,790.6

18

Management’s Discussion and Analysis

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 ADB’s 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 ADB’s 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. ADB’s risk management framework also includes the Risk Committee, which provides high-level oversight of ADB’s 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 ADB’s capital adequacy—ADB’s ultimate protection against unexpected losses—and 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

Table 9:aDB internal Risk Rating scal	e
aDB internal Rating scale	credit Rating agency Equivalent	aDB Definitions
1	AAA/Aaa to A/A2	Lowest expectation of credit risk
2	A–/A3	Very low credit risk
3	BBB+/Baa1	Low credit risk
4	BBB/Baa2	Low credit risk
5	BBB–/Baa3	Low to medium credit risk
6	BB+/Ba1	Medium credit risk
7	BB/Ba2	Medium credit risk
8	BB–/Ba3	Medium credit risk
9	B+/B1	Significant credit risk
10	B/B2	Significant credit risk
11	B–/B3	Significant credit risk
12	CCC+/Caa1	High credit risk
13	CCC/Caa2 to C	Very high credit risk
14	D	Default
ADB = Asian Development Bank.

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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

Table 10:Exposure to credit Risk As of 31 December 2011 and 2010
item	2011 Exposure ($ million) Rating (1–14)	2010 Exposure ($ million) Rating (1–14)
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	47,930.5 5.4 / BBB– 4,622.7 3,466.1 6.3 / BB+ 297.7 n/a 858.9 n/a 22,981.0 1.0 / AA 16,605.7 1.0 / AA+ 5,771.3 1.1 / AA– 604.0 1.4 / A+	44,424.2 5.7 / BB+ 4,416.3 3,138.6 7.1 / BB 491.6 n/a 786.1 n/a 20,486.5 1.0 / AA+ 15,472.2 1.0 / AA+ 3,916.3 1.0 / AA 1,098.0 1.0 / AA–
aggregate Exposure	75,534.2 4.1 / BBB	69,327.0 4.4 / BBB

n/a = not applicable. Note: Numbers may not sum precisely because of rounding.

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Figure 3: sovereign Exposure by credit Quality
As of 31 December 2011 and 2010
(%)
2011 2010
High High
credit risk credit risk
0.1 0.0
Low Low
credit risk credit risk
48.0 44.9
Medium Medium
credit risk credit risk
51.9 55.1
Notes:
(i) 0.0 = % is less than 0.05.
(ii) low credit risk = exposures with risk rating 1–5, medium credit risk = exposures with risk rating 6–11, high credit risk = exposures with risk rating 12–14.
----- End of picture text -----

20

Management’s 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 ADB’s 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 ADB’s DMCs and more disbursements to high rated countries, such as the People’s Republic of China (PRC) (Figure 3). Refer to Note E of OCR Financial Statements for additional information.

Sovereign concentrations. Because Asia’s 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 borrowers—the PRC, India, and Indonesia—represented 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. ADB’s nonsovereign credit risk is considered more significant because of the uncertain economic environment in some of ADB’s markets. In addition, ADB’s 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 portfolio’s risks and approves provisions for impaired transactions.

Table 11: sovereign country Exposure As of 31 December 2011 and 2010

Table 11:sovereign country Exposure As of 31 December 2011 and 2010
country	2011 $ million %	2010 $ million %
People’s Republic of China India Indonesia Philippines Pakistan Others	11,693.4 24.4 9,844.3 20.5 9,503.5 19.8 5,569.0 11.6 5,296.6 11.1 6,023.7 12.6	10,462.6 23.6 8,736.2 19.7 9,887.8 22.3 5,465.0 12.3 5,089.1 11.5 4,783.5 10.8
Note: Percentages may not total 100% because of rounding.

Table 12: Sovereign portfolio Expected Loss As of 31 December 2011 and 2010

Table 12: Sovereign portfolio Expected Loss As of 31 December 2011 and 2010
item	2011 $ million % of sO portfolio	2010 $ million % of sO portfolio
Provision for Loan Losses Loan Loss Reserve Requirementa	– – 158.2 0.3	– – 164.2 0.4
Expected Loss	158.2 0.3	164.2 0.4
– = nil, SO = sovereign operations. aLoan loss reserve requirement is subject to Board of Governors’ approval during the Annual Meeting in May 2012.

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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 Moody’s Investors Service that is mapped to ADB’s portfolio. ADB annually tests whether this external data reasonably corresponds to ADB’s 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 ADB’s expected loss for nonsovereign operations.

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Figure 4: nonsovereign Exposure by credit Quality
As of 31 December 2011 and 2010
(%)
2011 2010
High High
credit risk credit risk
2.6 9.4
Low Low
credit risk credit risk
39.4 29.0
Medium Medium
credit risk credit risk
58.0 61.7
Notes:
(i) Percentages may not total 100% because of rounding.
(ii) low credit risk = exposures with risk rating 1–5, medium credit risk = exposures with risk rating 6–11, high credit risk = exposures with risk rating 12–14.
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Table 13: nonsovereign country Exposure As of 31 December 2011 and 2010

Table 13:nonsovereign country Exposure As of 31 December 2011 and 2010
country	2011 $ million %	2010 $ million %
People’s Republic of China India Pakistan Philippines Indonesia Viet Nam Others	1,055.0 22.8 668.1 14.5 394.6 8.5 288.1 6.2 227.2 4.9 214.3 4.6 1,775.4 38.4	1,058.5 24.0 690.5 15.6 293.6 6.6 326.7 7.4 193.4 4.4 396.1 9.0 1,457.5 33.0
Note: Percentages may not total 100% because of rounding.

22

Management’s Discussion and Analysis

Table 14: nonsovereign sector Exposure As of 31 December 2011 and 2010

Table 14:nonsovereign sector Exposure As of 31 December 2011 and 2010
sector	2011 $ million %	2010 $ million %
Energy Finance Investment Funds Others	2,082.7 45.1 1,739.4 37.6 374.7 8.1 425.9 9.2	1,966.3 44.5 1,682.0 38.1 355.0 8.0 413.1 9.3

Note: Percentages may not total 100% because of rounding.

Table 15: nonsovereign portfolio Expected Loss As of 31 December 2011 and 2010

Table 15:nonsovereign portfolio Expected Loss As of 31 December 2011 and 2010
item	2011 $ million % of nsO portfolioa	2010 $ million % of nsO portfolioa
Specific Provision for Loan Losses Collective Provision for Loan Losses Loan Loss Reserve Requirementb	9.6 0.3 25.4 0.7 35.5 1.0	9.2 0.3 33.4 1.1 35.9 1.1
Expected Loss	70.6 2.0	78.4 2.5
NSO = nonsovereign operations. Note: Numbers may not sum precisely because of rounding. aPercentage only applies to the loan and guarantee operations of the nonsovereign portfolio. bThe 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, ADB’s 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 ADB’s 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 ADB’s 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

Asian Development Bank Annual Report 2011

Table 16: Fixed income portfolio by asset class As of 31 December 2011 and 2010

Table 16:Fixed income portfolio by asset class As of 31 December 2011 and 2010
item	2011 $ million %	2010 $ million %
Government Government Guaranteed Government-Sponsored Enterprises and Supranationals Asset-Backed and Mortgage-Backed Securities Rated AAA Corporations	7,332.4 44.2 3,982.7 24.0 3,722.7 22.4 – – 1,567.9 9.4	5,672.2 36.7 4,476.9 28.9 3,067.9 19.8 934.9 6.0 1,320.4 8.5
total	16,605.7 100.0	15,472.2 100.0
Note: Numbers may not sum precisely because of rounding.

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 counterparty’s 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 ADB’s 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. ADB’s 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).

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Management’s Discussion and Analysis

Table 17: treasury country Exposure As of 31 December 2011 and 2010

Table 17:treasury country Exposure As of 31 December 2011 and 2010
country	2011 $ million %	2010 $ million %
Japan United States Australia Germany France Others	7,740.0 33.7 5,088.0 22.1 1,757.3 7.6 1,622.1 7.1 1,123.6 4.9 5,650.0 24.6	4,439.7 21.7 6,213.7 30.3 2,273.9 11.1 1,404.8 6.9 1,490.5 7.3 4,663.8 22.8
total	22,981.0 100.0	20,486.5 100.0
Note: Numbers may not sum precisely because of rounding.

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 ADB’s borrowing expenses. Therefore, the borrower must assume or hedge the risk of fluctuating interest rates, whereas ADB’s 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 portfolio’s 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 ADB’s market risks and

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Asian Development Bank Annual Report 2011

account for 66% of ADB’s 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 CLP’s 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 ADB’s 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 ADB’s 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

ADB’s 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 institution’s 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 ADB’s 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

Management’s Discussion and Analysis

protects its shareholders but also supports its AAA credit rating, which reduces ADB’s borrowing costs and consequently its lending rates.

Second, the framework evaluates ADB’s ability to generate sufficient income to support loan growth after a credit shock. As a development institution, ADB’s 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 ADB’s net worth and capital adequacy, promote steady growth in ADB’s 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 ADB’s financial strength. ADB’s 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 ADB’s 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, ADB’s 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 OCR’s financial statements.

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Asian Development Bank Annual Report 2011

The pricing models used to determine the fair value of ADB’s 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 ADB’s nonsovereign operations to a risk-based model. Provision against loan losses for impaired loans reflects management’s judgment and estimate of the present value of expected future cash flows discounted at the loan’s 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 loan’s 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 Moody’s 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 management’s best estimate of future benefit changes and economic conditions. For further details, refer to Notes to Financial Statements—Note O—Staff 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 ADF’s, which are special purpose financial statements.

Asian Development Fund

The ADF is ADB’s 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 ADB’s 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 Afghanistan’s post-conflict phase out during 2011–2012. As of 31 December 2011, the total replenishment size of SDR7.6 billion ($12.0 billion) consisted

28

Management’s 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 borrower’s 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 Afghanistan’s 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 Afghanistan’s debt service from

5 These included Bhutan, Kyrgyz Republic, Lao People’s 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.

6 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.

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Asian Development Bank Annual Report 2011

Table 18: asian Development Fund commitment authority[a]

Table 18:asian Development Fund commitment authoritya
31 December 2011 and 2010 ($ million)
item	2011	2010
Carryover of ADF IX Commitment Authorityb 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	121.6 2,818.2c 135.1d 8.2e 5,886.6f 360.0 830.5 0.9g 10,161.2 8,789.9	122.0 1,802.1 111.8 8.2 4,520.8 240.0 650.0 – 7,454.8 6,306.6
aDF commitment authority available for Future commitments	1,371.3	1,148.2

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) Italy’s full payment of the balance of its contribution.

e Represents 99.16% of Austria’s 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 Italy’s 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 2009–2012, 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 OCR’s 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 Management’s 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.

7 At US dollar equivalent at 31 December 2011 exchange rates.

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Management’s 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 portfolio[8] 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 ADB’s 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 2009–2012.

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 OCR’s 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 2011 2010 Regularized Replenishment Contributions 762.8 721.1 Allocations from OCR Net Income 809.0 769.0 Direct Voluntary Contributions 89.9 89.9 Income from Investment and Other Sources 186.6 183.2 Transfers from the TASF to the ADF (3.5) (3.5) total 1,844.8 1,759.7 ( ) = negative, ADF = Asian Development Fund, OCR = ordinary capital resources, TASF = Technical Assistance Special Fund.

8 Includes securities purchased under resale arrangement.

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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 ADB’s DMCs restructure their economies and broaden the scope of opportunities for new investments, mainly through TA operations.

Contributed resources. As of 31 December 2011, Japan’s 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 ADBI’s 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

Management’s 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 ADB’s 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 fund’s 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 ADB’s assistance in related sectors.

Contributed resources. ADB provided the initial contribution of $40.0 million in May 2008, as part of OCR’s 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 fund’s 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 ADB’s 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 funds[9] 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

9 Trust funds not related to financing partnership facilities and including the Japan Scholarship Program.

34

Management’s 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) $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;

• (ii) $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;

• (iii) $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;

• (iv) $6.0 million from the Government of the Republic of Korea for the e-Asia and Knowledge Partnership Fund;

• (v) $2.1 million from the Government of Luxembourg for the Financial Sector Development Partnership Fund;

• (vi) $8.3 million from the Government of Norway for the multi-donor Clean Energy Fund under the Clean Energy Financing Partnership Facility; and

• (vii) $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

Asian Development Bank Annual Report 2011

Table 20: schedule of contributions and net assets grants from External sources

Table 20:schedule of contributions and net assets grants from External sources
As of 31 December 2011
($ million)
item	contribution	netassetsa
administered by aDB
Country
Australia	448.4	131.5
Austria	15.3	4.2
Belgium	49.2	44.7
Brunei Darussalam	5.9	5.6
Cambodia	0.1	0.1
Canada	132.2	11.8
People’s Republic of China	220.1	203.3
Denmark	24.9	3.2
European Community	273.8	22.6
Finland	79.1	41.4
France	35.9	2.7
Germany	0.1	0.1
India	1.0	(0.0)
Indonesia	12.6	–
Ireland	2.4	0.4
Italy	2.2	–
Japanb	971.0	453.9
Republic of Korea	153.5	130.4
Lao People’s Democratic Republic	0.1	0.1
Luxembourg	22.0	17.1
Malaysia	12.6	12.7
Myanmar	0.1	0.1
Netherlands	356.6	40.8
New Zealand	31.7	0.9
Norway	138.2	35.9
Philippines	12.6	6.4
Portugal	12.7	12.0
Singapore	12.6	12.7
Spain	55.8	37.2
Sweden	191.2	61.0
Switzerland	50.1	22.8
Thailand	12.6	12.7
United Kingdom and Northern Ireland	503.6	113.3
United States	3.4	0.3
Viet Nam	1.1	1.1
Subtotal	3,844.7	1,442.8
Others
Cities Alliance	0.5	0.0
Clean Technology Fund	2.9	2.5
Fourth High Level Forum on Aid Effectiveness Trust Fund	0.2	0.2
Future Carbon Fund	35.0	33.8
Global Environment Facility	140.9	12.2
Special Climate Change Fund	0.1	0.0
International Fund for Agricultural Development	22.3	0.0
Islamic Financial Services Board	0.4	0.1
Kreditanstalt für Wiederaufbau (KfW)	0.4	(0.0)
Nordic Development Fund	17.7	0.3
Private Sector and Foundations	4.6	0.3
Public Private Infrastructure Advisory Facility	0.6	0.0
Strategic Climate Fund	40.6	34.5
Trust Fund for Forest	16.3	0.5
United Nations Children’s Fund	0.2	–
United Nations Development Programme	111.0	0.0
Subtotal	393.5	84.4
not administered by aDB
Country
Switzerland	19.0	–
Kuwait	14.0	–
Subtotal	33.0	–
grand total	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

Management’s Discussion and Analysis

Appendix: condensed Management Reporting Balance sheets As of 31 December 2011 and 2010 ($ thousand)

Appendix:condensed Management Reporting Balan As of 31 December 2011 and 2010 ($ thousand)	ce sheets
item	2011 statutory Reporting Basis adjustmentsa Management Reporting Basis	2010 Management Reporting Basis
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	187,989 – 187,989 21,625,785 – 21,625,785 330,044 – 330,044 395,498 – 395,498 49,910,812 – 49,910,812 29,871 – 29,871 970,622 (76,907) 893,715 31,373,104 (4,559,486) 26,813,618 6,220,207 (128,900) 6,091,307 2,266,123 578,991 2,845,114	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
tOtaL	113,310,055 (4,186,302) 109,123,753	97,094,640
Borrowings and accrued interest Payable for swaps Borrowings Others Payable for swap related collateral Payable under securities repurchase agreement Accounts payable and other liabilities	58,834,767 (941,826) 57,892,941 27,465,365 (3,171,613) 24,293,752 6,576,366 (279,230) 6,297,136 1,942,954 – 1,942,954 330,820 – 330,820 1,626,244 – 1,626,244	52,623,262 22,786,794 1,753,375 1,588,350 714,490 1,749,535
total Liabilities	96,776,516 (4,392,669) 92,383,847	81,215,806
Paid-in capital Net notional maintenance of value receivable Ordinary reserve Special reserve Loan loss reserve Surplus Cumulative revaluation adjustments account Net incomeb Accumulated other comprehensive loss	4,657,781 578,991 5,236,772 (595,806) – (595,806) 10,459,995 (887) 10,459,108 245,948 – 245,948 200,100 – 200,100 1,131,756 – 1,131,756 261,300 (261,300) – 593,735 (22,882) 570,853 (421,270) (87,555) (508,825)	4,255,678 (419,186) 10,032,097 230,226 246,000 1,131,756 – 536,710 (134,447)
total Equity	16,533,539 206,367 16,739,906	15,878,834
tOtaL	113,310,055 (4,186,302) 109,123,753	97,094,640

• = nil, ( ) = negative.

a Includes reversal of ASC 815 and 825 effects, ADB’s 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

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Ordinary Capital Resources

Ordinary capital resOurces

MANAGEMENT’S 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. ADB’s 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.

ADB’s 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 ADB’s 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.

ADB’s management assessed the effectiveness of ADB’s internal control over financial reporting as of 31 December 2011. In making this assessment, ADB’s 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, ADB’s internal control over financial reporting is effective based upon the criteria established in Internal Control – Integrated Framework .

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----- Start of picture text -----

Haruhiko Kuroda
President
Thierry de Longuemar
Vice-President (Finance and Administration)
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Hiroshi Fukukawa Officer-in-Charge, Controller’s Department

14 March 2012

39

Asian Development Bank Annual Report 2011

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 management’s assertion, included in the accompanying Management’s 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. ADB’s 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 Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on management’s 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.

ADB’s 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. ADB’s 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 ADB’s 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

Ordinary Capital Resources

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, management’s 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.

==> picture [181 x 29] intentionally omitted <==

Public Accountants and Certified Public Accountants

Singapore March 14, 2012

41

Asian Development Bank Annual Report 2011

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 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 ADB’s 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 ADB’s 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.

Deloitte Touche LLP (Unique Entity No. T08LL0721A) is an accounting limited liability partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A).

42

Ordinary Capital Resources

We have also audited, in accordance with attestation standards established by the American Institute of Certified Public Accountants, management’s 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 management’s assertion that ADB maintained effective internal control over financial reporting.

==> picture [182 x 30] intentionally omitted <==

Public Accountants and Certified Public Accountants

Singapore March 14, 2012

43

Asian Development Bank Annual Report 2011

asian DEVELOpMEnt BanK—ORDinaRy capitaL REsOURcEs

BALANCE SHEET

31 December 2011 and 2010

Expressed in thousands of United states Dollars

BALANCE SHEET 31 December 2011 and 2010 Expressed in thousands of United states Dollars
		a s s E t s
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 Less—allowance 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)		2011 $ 187,989 $19,156,304 1,151,963 1,200,002 21,508,269 330,044 395,498 47,052,649 2,741,641 49,794,290 35,030 49,759,260 970,622 117,516 181,423 298,939 31,373,104 6,220,207 37,593,311 161,451 2,428 1,942,954 159,290 2,266,123		2010 $ 114,648 $13,842,500 2,285,773 2,125,086 18,253,359 707,851 318,228 43,634,265 2,352,051 45,986,316 42,505 45,943,811 1,108,198 117,493 183,534 301,027 29,475,685 1,781,058 31,256,743 161,177 272,544 1,588,350 144,246 2,166,317
tOtaL		$113,310,055		$100,170,182

The accompanying notes are an integral part of these financial statements (OCR-9).

44

Ordinary Capital Resources

OcR-1

cOntinUED

				cOntinUED	cOntinUED
LiaBiLitiEs, capitaL, anD REsERVEs
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) Less—“callable” shares subscribed “Paid-in” shares subscribed Less—subscription installments not due Subscription installments matured Less—capital transferred to the Asian Development Fund and discount 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)	2011 $ 4,240,356 54,037,988 $ 58,278,344 556,423 27,465,365 6,576,366 34,041,731 330,820 2,321 1,942,954 – 1,472,179 151,744 3,569,198 96,776,516 162,486,521 154,335,557 8,150,964 2,828,710 5,322,254 85,482 5,236,772 (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			2010 $ 3,771,063 48,075,055 $ 51,846,118 540,366 25,775,013 2,077,841 27,852,854 714,490 411,988 1,588,350 1,347 1,168,252 167,948 3,337,885 84,291,713 143,949,700 136,535,071 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
				$ 3,771,063 48,075,055 25,775,013 2,077,841 411,988 1,588,350 1,347 1,168,252 167,948 143,949,700 136,535,071 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)
	$ 4,240,356
	54,037,988
	27,465,365
	6,576,366
	2,321
	1,942,954
	–
	1,472,179
	151,744
	162,486,521
	154,335,557
	8,150,964
	2,828,710
	5,322,254
	85,482
	5,236,772
	(578,991)
	4,657,781
	(595,806)
	10,459,995
	245,948
	200,100
	1,131,756
	261,300
	593,735
	(421,270)
tOtaL		$113,310,055			$100,170,182

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STATEMENT OF INCOME AND EXPENSES

For the Years Ended 31 December 2011 and 2010

Expressed in thousands of United states Dollars

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 sources—net (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)		2011 $649,599 365,263 15,722 44,030 20,439 $1,095,053 367,916 315,945 (7,395) 4,938 681,404 84,306 120,614 5,497 (20,292) 190,125 5,683			2010 $680,479 367,499 11,322 58,425 24,160 $1,141,885 386,048 294,251 (44,713) 3,544 639,130 33,805 48,080 1,444 (3,011) 80,318 42,738
				$688,006 58,151 (65,678)
	$664,313
	50,814
	(65,528)
nEt incOME		$ 609,457			$ 625,811

The accompanying notes are an integral part of these financial statements (OCR-9).

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STATEMENT OF COMPREHENSIVE INCOME

For the Years Ended 31 December 2011 and 2010

Expressed in thousands of United states Dollars

STATEMENT OF COMPREHENSIVE INCOME For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars
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		2011 $ 609,457 – (307,697) 45,127 965 18,358 47,037 (171,715) (367,925)		2010 $ 625,811 1,620 (290,714) 20,390 (4,567) 118,980 86,426 (27,797) (95,662)
cOMpREhEnsiVE incOME		$241,532		$530,149

The accompanying notes are an integral part of these financial statements (OCR-9).

47

Asian Development Bank Annual Report 2011

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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,						cumulative		accumulated
		noninterest-	net notional					Revaluation	net income	Other
		bearing Demand	Maintenance	Ordinary	special	Loan Loss		adjustments	after	comprehensive
	capital stock	Obligations	of Value	Reserve	Reserve	Reserve	surplus	account	appropriations	Loss	total
Balance, 1 January 2010	$3,818,297	$(142,181)	$(523,220)	$ 9,789,807	$218,903	$493,162	$ 884,594	$631,129	$ (36,725)	$ 42,317	$15,176,083
Comprehensive income (loss)
for the year 2010 (OCR-3)
(Note L)									625,811	(95,662)	530,149
Appropriation of
guarantee fees to
Special Reserve (Note L)					11,322				(11,322)		–
Change in SDR value of
paid-in shares subscribed	51,871										51,871
Change in subscription
installments not due	(2,248,259)										(2,248,259)
Additional paid-in shares
subscribed during
the year	2,632,723										2,632,723
Change in SDR value of
capital transferred to
Asian Development Fund	1,046										1,046
Change in notional
maintenance of value
(Note K)			104,034								104,034
Demand obligations on
account of subscription
received during the year		(189,276)									(189,276)
Encashment of demand
obligations during the year		14,235									14,235
Change in US Dollar value
of demand obligations		(23,908)									(23,908)
Allocation of prior year
income to ordinary
reserve, loan loss reserve,
surplus and transfer from
cumulative revaluation
account (Note L)				230,882		(247,162)	247,162	(447,607)	216,725		–
Allocation of prior year
income to ADF, TASF, RCIF,
and CCF (Note L)									(180,000)		(180,000)
Charge to ordinary reserve
for change in SDR value
of capital stock (Note L)				9,771							9,771
Balance, 31 December 2010	$4,255,678	$(341,130)	$(419,186)	$10,030,460	$230,226	$246,000	$1,131,756	$183,521	$614,489	$(53,345)	$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).

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		nonnegotiable,						cumulative		accumulated
		noninterest-	net notional					Revaluation	net income	Other
		bearing Demand	Maintenance	Ordinary	special	Loan Loss		adjustments	after	comprehensive
	capital stock	Obligations	of Value	Reserve	Reserve	Reserve	surplus	account	appropriations	Loss	total
Balance, 31 December 2010	$4,255,678	$(341,130)	$(419,186)	$10,030,460	$230,226	$246,000	$1,131,756	$183,521	$614,489	$ (53,345)	$15,878,469
Comprehensive income (loss)
for the year 2011 (OCR-3)
(Note L)									609,457	(367,925)	241,532
Appropriation of guarantee
fees to Special Reserve
(Note L)					15,722				(15,722)		–
Change in SDR value of
paid-in shares subscribed	202,085										202,085
Change in subscription
installments not due	193,663										193,663
Additional paid-in shares
subscribed during
the year	585,119										585,119
Change in SDR value of
capital transferred to
Asian Development Fund	227										227
Change in notional
maintenance of value
(Note K)			(176,620)								(176,620)
Demand obligations on
account of subscription
received during the year		(263,627)									(263,627)
Encashment of demand
obligations during the year		18,171									18,171
Change in US Dollar value
of demand obligations		7,595									7,595
Allocation of prior year
income to ordinary
reserve, loan loss reserve,
surplus and transfer from
cumulative revaluation
account (Note L)				422,610		(45,900)	–	77,779	(454,489)		–
Allocation of prior year
income to ADF and TASF
(Note L)									(160,000)		(160,000)
Charge to ordinary reserve
for change in SDR value
of capital stock (Note L)				6,925							6,925
Balance, 31 December 2011	$5,236,772	$(578,991)	$(595,806)	$10,459,995	$245,948	$200,100	$1,131,756	$261,300	$593,735	$(421,270)	$16,533,539

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STATEMENT OF CASH FLOWS

For the Years Ended 31 December 2011 and 2010

Expressed in thousands of United states Dollars

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 Others—net 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 back—net 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 Others—net Net Cash Provided by Operating Activities		2011 $ 563,092 400,085 (1,342) (326,928) (260,447) 42,431 416,891 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	2010 $ 669,427 387,861 (2,293) (299,183) (258,601) 24,561 521,772 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).

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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 $ 42,941 $ – $ – $ 42,941 0.05 Armenia 69,204 185,796 20,000 275,000 0.35 Azerbaijan 242,288 323,191 500,000 1,065,479 1.36 Bangladesh 1,455,030 716,630 1,019,000 3,190,660 4.09 Bhutan 44,177 6,823 – 51,000 0.06 Cambodia 4,025 – – 4,025 0.01 People’s Republic of China 12,147,533 4,590,346 1,622,137 18,360,016 23.51 Cook Islands 15,604 3,026 4,700 23,330 0.03 Fiji 124,209 48,583 – 172,792 0.22 Georgia 150,178 – 160,000 310,178 0.40 India 10,516,894 4,444,264 2,540,540 17,501,698 22.42 Indonesia 10,011,508 507,383 480,000 10,998,891 14.09 Kazakhstan 1,005,030 440,389 378,000 1,823,419 2.34 Republic of Korea 32,356 – – 32,356 0.04 Lao People’s Democratic Republic 61,240 – 448,200 509,440 0.65 Malaysia 131,168 – – 131,168 0.17 Maldives 6,137 – – 6,137 0.01 Marshall Islands 2,060 – – 2,060 0.00 Federated States of Micronesia 2,246 2,546 – 4,792 0.01 Mongolia 4,611 – – 4,611 0.01 Nauru 558 – – 558 0.00 Nepal 1,100 – – 1,100 0.00 Pakistan 5,491,202 1,909,536 377,040 7,777,778 9.96 Palau 6,400 6,200 – 12,600 0.02 Papua New Guinea 165,077 93,618 165,900 424,595 0.54 Philippines 4,928,453 529,688 362,000 5,820,141 7.45 Sri Lanka 723,031 765,850 85,000 1,573,881 2.02 Thailand 337,469 420,026 – 757,495 0.97 Turkmenistan – 125,000 – 125,000 0.16 Uzbekistan 569,744 756,988 680,000 2,006,732 2.57 Viet Nam 1,399,260 2,588,099 1,031,390 5,018,749 6.43 49,690,733 18,463,982 9,873,907 78,028,622 99.94 Regional 38,657 12,000 – 50,657 0.06 TOTAL – 31 December 2011 49,729,390 18,475,982 9,873,907 78,079,279 100.00 Allowance for loan losses (35,030) – – (35,030) Unamortized loan origination cost—net 64,900 – – 64,900 nEt BaLancE – 31 December 2011 $49,759,260 $18,475,982 $9,873,907 $78,109,149 Made up of: Sovereign Loans $ 47,052,649 $ 18,059,010 $ 7,729,810 $ 72,841,469 Nonsovereign Loans Private Sector 2,485,257 386,972 1,509,797 4,382,026 Public Sector 221,354 30,000 634,300 885,654 Net Balance – 31 December 2011 $ 49,759,260 $ 18,475,982 $ 9,873,907 $ 78,109,149 TOTAL – 31 December 2010 $ 45,932,875 $15,827,624 $ 8,749,419 $ 70,509,918 Allowance for loan losses (42,505) – – (42,505) Unamortized loan origination cost—net 53,441 – – 53,441 nEt BaLancE – 31 December 2010 $45,943,811 $15,827,624 $8,749,419 $70,520,854 Made up of: Sovereign Loans $ 43,634,265 $ 15,260,098 $ 7,642,108 $ 66,536,471 Nonsovereign Loans Private Sector 2,141,113 452,956 973,011 3,567,080 Public Sector 168,433 114,570 134,300 417,303 Net Balance – 31 December 2010 $ 45,943,811 $ 15,827,624 $ 8,749,419 $ 70,520,854

1 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).

• 2 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).

• 3 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.

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MatURity OF EFFEctiVE LOans

twelve Months Ending 31 December 2012 2013 2014 2015 2016	amount $3,293,234 4,736,726 4,612,439 3,624,451 3,954,839	Five years Ending 31 December 2021 2026 2031 2036 over 2036 total	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	currency Pakistan rupee Philippine peso Swiss franc Thailand baht United States dollar total		2011 177 67,254 1,697 181,924 44,291,447 $49,729,390		2010 186 85,719 2,429 31,692 40,350,211 $45,932,875

4 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).

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SUMMARY STATEMENT OF BORROWINGS 31 December 2011 and 2010

Expressed in thousands of United states Dollars

	Borrowings principal Outstanding1 2011 2010	Borrowings principal Outstanding1 2011 2010	swap arrangements2	swap arrangements2		net currency	weighted average cost (%) after swaps Obligation3 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 0.69 0.49 (0.05) 1.13
			payable (Receivable)3
	2011		2011	2010		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	$ 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 21,083 $58,278,3444	$ 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 24,250 $51,846,118	$ (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)	$ (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)		$ (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	$ (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

• 1 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:

currency Australian dollar Brazilian real Canadian dollar South African rand Swiss franc Turkish lira United States dollar	aggregate Face amount 2011 2010 $1,793,937 $1,555,452 214,941 75,000 783,392 800,000 1,308,981 1,276,835 521,544 522,883 1,241,471 1,998,714 4,079,042 2,887,736	Discounted Value	Discounted Value
	2011 $1,793,937 214,941 783,392 1,308,981 521,544 1,241,471 4,079,042	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

• 2 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.

• 3 Adjusted by the cumulative effect of the adoption of ASC 815 effective 1 January 2001.

• 4 Excludes accrued interest and commission.

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MatURity stRUctURE OF BORROwings OUtstanDing[5]

twelve Months Ending 31 December 2012 2013 2014 2015 2016	amount $10,626,473 8,597,904 11,135,267 8,024,622 8,553,797	Five years Ending 31 December 2021 2026 2031 2036 over 2036 total	amount
			8,123,926 305,619 2,864,090 46,646 –
			$58,278,344

intEREst RatE swap aRRangEMEnts

Receive Fixed swaps: Australian dollar8 Chinese yuan Indian rupee United States dollar United States dollar9 Receive Floating swaps: Japanese yen United States dollar total		notional amount	average	Rate (%) pay Maturing through7 Floating6
			Receive
		$ 65,020 308,016 94,153 27,524,960 65,020 65,020 771,000 $28,893,189	2.64 3.34 5.40 2.58 2.14 3.22 0.87	(0.03) 2027–2032 4.47 2015–2020 7.83 2014 0.50 2012–2041 (0.06) 2016–2027 (0.06) 2016–2032 0.60 2012–2020

5 Bonds with put and call options were considered maturing on the first put or call date.

6 Represents average current floating rates, net of spread.

7 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).

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STATEMENT OF SUBSCRIPTIONS TO CAPITAL STOCK AND VOTING POWER 31 December 2011

Expressed in thousands of United states Dollars

MEMBERs	sUBscRiBED capitaL number of shares percent of total par Value of shares total callable paid-in	sUBscRiBED capitaL number of shares percent of total par Value of shares total callable paid-in	VOting pOwER
	number of shares percent of total		number of Votes percent of total
REgiOnaL Afghanistan Armenia Australia Azerbaijan Bangladesh Bhutan Brunei Darussalam Cambodia People’s Republic of China Cook Islands Fiji Georgia Hong Kong, China India Indonesia Japan Kazakhstan Kiribati Republic of Korea Kyrgyz Republic Lao People’s 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	3,585 0.03 31,671 0.30 614,220 5.80 47,208 0.45 108,384 1.02 660 0.01 37,386 0.35 5,250 0.05 684,000 6.46 282 0.003 7,218 0.07 36,243 0.34 57,810 0.55 672,030 6.35 547,268 5.17 1,656,630 15.65 85,608 0.81 426 0.004 534,738 5.05 31,746 0.30 1,476 0.01 289,050 2.73 426 0.004 282 0.003 426 0.004 1,596 0.02 57,810 0.55 426 0.004 15,606 0.15 163,020 1.54 231,240 2.19 342 0.003 9,960 0.09 252,912 2.39 348 0.003 36,120 0.34 708 0.01 61,560 0.58 115,620 1.09 30,402 0.29 144,522 1.37 1,050 0.01 426 0.004 26,874 0.25 150 0.001 71,502 0.68 708 0.01 36,228 0.34	$ 55,039 $ 47,701 $ 7,339 486,235 461,871 24,365 9,429,935 8,958,347 471,589 724,770 688,446 36,324 1,663,987 1,580,775 83,212 10,133 9,503 629 573,976 545,220 28,756 80,602 73,877 6,724 10,501,247 9,976,016 525,231 4,329 4,115 215 110,816 105,273 5,542 556,428 528,563 27,865 887,540 843,140 44,400 10,317,475 9,801,501 515,974 8,402,041 7,977,129 424,912 25,433,743 24,161,788 1,271,956 1,314,314 1,248,574 65,740 6,540 6,218 322 8,209,672 7,799,126 410,547 487,387 463,007 24,380 22,661 21,248 1,412 4,437,698 4,215,759 221,939 6,540 6,218 322 4,329 4,115 215 6,540 6,218 322 24,503 23,275 1,228 887,540 843,140 44,400 6,540 6,218 322 239,594 227,604 11,990 2,502,797 2,377,642 125,155 3,550,158 3,372,620 177,539 5,251 4,990 261 152,913 145,283 7,630 3,882,882 3,688,716 194,166 5,343 5,020 322 554,540 526,813 27,727 10,870 10,332 537 945,112 897,841 47,271 1,775,079 1,686,325 88,754 466,753 443,355 23,398 2,218,803 2,107,834 110,969 16,120 15,307 814 6,540 6,218 322 412,588 391,908 20,680 2,303 2,180 123 1,097,749 1,042,848 54,901 10,870 10,332 537 556,198 520,103 36,094	43,075 0.33 71,161 0.54 653,710 4.94 86,698 0.66 147,874 1.12 40,150 0.30 76,876 0.58 44,740 0.34 723,490 5.47 39,772 0.30 46,708 0.35 75,733 0.57 97,300 0.74 711,520 5.38 586,758 4.44 1,696,120 12.82 125,098 0.95 39,916 0.30 574,228 4.34 71,236 0.54 40,966 0.31 328,540 2.48 39,916 0.30 39,772 0.30 39,916 0.30 41,086 0.31 97,300 0.74 39,916 0.30 55,096 0.42 202,510 1.53 270,730 2.05 39,832 0.30 49,450 0.37 292,402 2.21 39,838 0.30 75,610 0.57 40,198 0.30 101,050 0.76 155,110 1.17 69,892 0.53 184,012 1.39 40,540 0.31 39,916 0.30 66,364 0.50 39,640 0.30 110,992 0.84 40,198 0.30 75,718 0.57
total Regional(Forward)	6,713,153 63.43	103,065,024 97,889,649 5,175,376	8,608,673 65.07

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			cOntinUED
MEMBERs	sUBscRiBED capitaL number of shares percent of total par Value of shares total callable paid-in		VOting pOwER
	number of shares percent of total		number of Votes percent of total
total Regional(Forward)	6,713,153 63.43	103,065,024 97,889,649 5,175,376	8,608,673 65.07
nOnREgiOnaL Austria Belgium Canada Denmark Finland France Germany Ireland Italy Luxembourg Netherlands Norway Portugal Spain Sweden Switzerland Turkey United Kingdom United States	36,120 0.34 36,120 0.34 555,258 5.25 36,120 0.34 36,120 0.34 247,068 2.33 459,204 4.34 36,120 0.34 191,850 1.81 36,120 0.34 108,882 1.03 36,120 0.34 12,040 0.11 36,120 0.34 36,120 0.34 61,950 0.59 36,120 0.34 216,786 2.05 1,656,189 15.65	554,540 526,813 27,727 554,540 526,813 27,727 8,524,709 8,098,396 426,314 554,540 526,813 27,727 554,540 526,813 27,727 3,793,161 3,603,463 189,698 7,050,021 6,697,446 352,575 554,540 526,751 27,788 2,945,415 2,798,106 147,309 554,540 526,751 27,788 1,671,633 1,588,037 83,595 554,540 526,813 27,727 184,847 171,843 13,004 554,540 526,813 27,727 554,540 526,813 27,727 951,100 903,522 47,578 554,540 526,813 27,727 3,328,250 3,161,812 166,439 25,426,966 24,155,281 1,271,685	75,610 0.57 75,610 0.57 594,748 4.50 75,610 0.57 75,610 0.57 286,558 2.17 498,694 3.77 75,610 0.57 231,340 1.75 75,610 0.57 148,372 1.12 75,610 0.57 51,530 0.39 75,610 0.57 75,610 0.57 101,440 0.77 75,610 0.57 256,276 1.94 1,695,679 12.82
total nonregional	3,870,427 36.57	59,421,498 56,445,909 2,975,589	4,620,737 34.93
tOtaL	10,583,580 100.00	$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 ADB’s 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).

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NOTES TO FINANCIAL STATEMENTS

31 December 2011 and 2010

NOTE A— NATURE 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, ADB’s corporate vision and mission has been to help DMCs reduce poverty in the region. This was reaffirmed under the long-term strategic framework for 2008–2020 (Strategy 2020). Under Strategy 2020, ADB’s 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 ADB’s operational activities, where ADB, alone or jointly, administers on behalf of donors funds provided for specific uses.

ADB’s 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 ADB’s unimpaired subscribed capital, reserves, and surplus, exclusive of the special reserve. ADB’s 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 ADB’s 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.

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NOTES TO FINANCIAL STATEMENTS

31 December 2011 and 2010

NOTE B—SUMMARY 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 (ADB’s 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 ADB’s 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 ADB’s 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.

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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 ADB’s 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

ADB’s 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 ADB’s 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

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NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010

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.

ADB’s 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 borrower’s 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 borrower’s 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 loan’s 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.

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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 OCR’s 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 “Investments—Equity 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 VIE’s 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).

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NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010

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 ADB’s 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 ADB’s 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 Creditor’s 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 OCR’s 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

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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 OCR’s 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 OCR’s 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 OCR’s 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 entity’s 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 OCR’s 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 C—RESTRICTIONS 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.

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NOTES TO FINANCIAL STATEMENTS

31 December 2011 and 2010

NOTE D—INVESTMENTS

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 ADB’s obligation to counterparties. Included in “Investments” as of 31 December 2011 and 2010 were securities transferred under securities lending arrangements as follows:

Government or government- guaranteed obligations Corporate obligations total	2011 $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

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The estimated fair value and amortized cost of the investments by contractual maturity at 31 December 2011 and 2010 are as follows:

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	2011	2011	2011	amortized cost $ 8,081,907,000 11,605,916,000 1,345,745,000 100,729,000 $21,134,297,000	2010	2010	amortized cost $ 6,349,386,000 9,584,033,000 1,971,706,000 24,484,000 $17,929,609,000
	Estimated Fair Value				Estimated Fair Value $ 6,366,579,000 9,833,354,000 2,028,176,000 25,250,000 $18,253,359,000
		$ 8,093,610,000
		11,895,876,000
		1,415,163,000
		103,620,000
		$21,508,269,000

Additional information relating to investments in government or government-guaranteed obligations and other securities classified as available for sale are as follows:

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	2011	2010 $15,643,835,000 15,967,586,000 354,897,000 (31,148,000) (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)
	50,223,000
	4,943,974,000
	99,070,000
	(7,746,000)

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NOTES TO FINANCIAL STATEMENTS

31 December 2011 and 2010

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:

==> picture [511 x 164] intentionally omitted <==

----- Start of picture text -----

One year or less Over one year total
Fair Unrealized Fair Unrealized Fair Unrealized
For the year 2011 Value Losses Value Losses Value Losses
Government or
government-
guaranteed
obligations $ 6,636,536,000 $ 25,247,000 $ 279,106,000 $4,850,000 $6,915,642,000 $30,097,000
Corporate bonds 242,784,000 2,243,000 297,627,000 2,373,000 540,411,000 4,616,000
Asset/Mortgage-
backed securities – – – – – –
Others – – 5,730,000 1,629,000 5,730,000 1,629,000
total $6,879,320,000 $27,490,000 $582,463,000 $8,852,000 $7,461,783,000 $36,342,000
----- End of picture text -----

	One year or less	One year or less	Over one year	Over one year	total
	Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
For the year 2010	Value	Losses	Value	Losses	Value	Losses
Government or
government-
guaranteed
obligations	$ 3,521,005,000	$ 23,028,000	$59,698,000	$456,000	$3,580,703,000	$23,484,000
Corporate bonds	351,855,000	3,366,000	–	–	351,855,000	3,366,000
Asset/Mortgage-
backed securities	139,631,000	3,852,000	204,000	26,000	139,835,000	3,878,000
Others	6,939,000	420,000	–	–	6,939,000	420,000
total	$4,019,430,000	$30,666,000	$59,902,000	$482,000	$4,079,332,000	$31,148,000

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NOTE E—LOANS

Loans

The carrying amount and estimated fair value of loans outstanding at 31 December 2011 and 2010 are as follows:

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	2011	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	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
	carrying Value		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
	$ 11,488,000
	1,970,499,000
	5,137,483,000
	41,772,348,000
	–
	867,394,000
	48,000
	$49,759,260,000

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 ADB’s 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.

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NOTES TO FINANCIAL STATEMENTS

31 December 2011 and 2010

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 ADB’s 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 ADB’s 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.

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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:

2011 Sovereign Loans Nonsovereign Loans Total Allowance for loan losses Unamortized direct loan origination fees—net Loans Outstanding 2010 Sovereign Loans Nonsovereign Loans Total Allowance for loan losses Unamortized direct loan origination fees—net Loans Outstanding			Overdue Loan service payments	Overdue Loan service payments	Overdue Loan service payments	Overdue Loan service payments	Overdue Loan service payments
			1–90 Days		> 90 Days		total	current	total Loans
			$ –		$ –		$ –	$46,972,115,000	$ 46,972,115,000
			–		23,003,000		23,003,000	2,734,272,000	2,757,275,000
			$ –		$23,003,000		$23,003,000	$49,706,387,000	49,729,390,000
									(35,030,000)
									64,900,000
									$49,759,260,000
			$ 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) 53,441,000 $45,943,811,000

As of 31 December 2011 and 2010, there were no loans 90 days or greater past due still accruing interest.

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NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010

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:

Sovereign Loans Fixed rate multicurrency loans Pool-based single currency (¥) loans Pool-based single currency (US$) loans LIBOR-based loans Local currency loans Allowance for loan losses Unamortized direct loan origination cost—net Subtotal Nonsovereign Loans Fixed rate loans LIBOR-based loans Local currency loans Others Allowance for loan losses Unamortized front-end fee—net Subtotal total		2011 $ 11,488,000 1,970,499,000 5,137,821,000 39,702,802,000 149,505,000 46,972,115,000 – 80,534,000 80,534,000 47,052,649,000 – 2,024,470,000 732,628,000 177,000 2,757,275,000 (35,030,000) (15,634,000) (50,664,000) 2,706,611,000 $49,759,260,000		2010 $ 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 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

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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:

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		2011	total $ 42,505,000 5,657,000 (13,052,000) (80,000) $ 35,030,000 $ 9,609,000 $ 25,421,000 $49,729,390,000 $ 24,103,000 $ 2,733,172,000		2010	total $ 103,242,000 40,390,000 (101,573,000) 446,000 $ 42,505,000 $ 9,152,000 $ 33,353,000 $45,932,875,000 $ 32,046,000 $ 2,333,801,000
	sovereign Loans	nonsovereign Loans		sovereign Loans $ 2,723,000 – (2,723,000) – $ – $ – $ – $43,567,028,000 $ – $ –	nonsovereign Loans $ 100,519,000 40,390,000 (98,850,000) 446,000 $ 42,505,000 $ 9,152,000 $ 33,353,000 $2,365,847,000 $ 32,046,000 $ 2,333,801,000
	$ –	$ 42,505,000
	–	5,657,000
	–	(13,052,000)
	–	(80,000)
	$ –	$ 35,030,000
	$ –	$ 9,609,000
	$ –	$ 25,421,000
	$46,972,115,000	$2,757,275,000
	$ –	$ 24,103,000
	$ –	$2,733,172,000

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NOTES TO FINANCIAL STATEMENTS

31 December 2011 and 2010

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:

Sovereign Loans Nonsovereign Loans			2011	Related allowance $ – 9,609,000			2010
		Recorded Loan Receivable	Unpaid principal balance			Recorded Loan Receivable $ – 32,046,000	Unpaid principal balance $ – 30,213,000	Related allowance $ – 9,152,000
		$ –	$ –
		24,103,000	23,003,000

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 ADB’s 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).

Risk class Low credit risk Medium credit risk High credit risk total	Risk Rating 1–5 (AAA to BBB–) 6–11 (BB+ to B–) 12–14 (CCC+ to D)		sovereign Loans 2011 2010 $ 23,006,067,000 $ 20,100,832,000 23,938,700,000 23,444,532,000 27,348,000 21,664,000 $46,972,115,000 $43,567,028,000		nonsovereign Loans	nonsovereign Loans
			2011 $ 23,006,067,000 23,938,700,000 27,348,000 $46,972,115,000		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).

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Cofinancing

ADB functions as lead lender in cofinancing arrangements with other participating financial institutions who also provide funds to ADB’s 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 OCR’s Balance Sheet.

Loans administered by ADB on behalf of participating institutions during the year ending 31 December 2011 and 2010 are as follows:

Sovereign loans Nonsovereign loans total	2011	no. of Loans 42 8 50	2010	no. of Loans 40 10 50
	amount		amount $1,055,810,000 356,701,000 $1,412,511,000
	$1,192,845,000
	356,687,000
	$1,549,532,000

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 F—GUARANTEES

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 ADB’s 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. ADB’s 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.

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NOTES TO FINANCIAL STATEMENTS

31 December 2011 and 2010

The committed and outstanding amounts of these guarantee obligations as of 31 December 2011 and 2010 covered:

Partial Credit Guarantees with counterguarantee without counterguarantee Political Risk Guarantees with counterguarantee without counterguarantee Others total	2011 committed amount Outstanding amount $ 1,550,995,000 $1,533,445,000 759,913,000 355,470,000 2,310,908,000 1,888,915,000 139,967,000 92,093,000 29,535,000 14,180,000 169,502,000 106,273,000 – – $2,480,410,000 $1,995,188,000	2010 committed amount Outstanding amount $ 1,353,617,000 $1,270,701,000 797,232,000 565,179,000 2,150,849,000 1,835,880,000 143,317,000 112,870,000 36,555,000 19,409,000 179,872,000 132,279,000 950,000 950,000 $2,331,671,000 $1,969,109,000
	committed amount	committed amount $ 1,353,617,000 797,232,000 2,150,849,000 143,317,000 36,555,000 179,872,000 950,000 $2,331,671,000
	$ 1,550,995,000
	759,913,000
	2,310,908,000
	139,967,000
	29,535,000
	169,502,000
	–
	$2,480,410,000

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 G—EQUITY INVESTMENTS

ADB’s 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.

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The carrying value of equity investments as of 31 December 2011 and 2010 are as follows:

Equity method Available for sale Cost method total		2011 $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:

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	2011 $ 76,040,000 297,741,000 221,718,000 (17,000) (151,175,000) 150,136,000 110,838,000 (320,000)	2010 $118,762,000 491,637,000 372,875,000 – 30,673,000 10,288,000 7,493,000 –

Approved equity investment facility that has not been disbursed was $611,500,000 at 31 December 2011 ($471,456,000 – 2010).

NOTE H—DERIVATIVE 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.

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NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010

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 ADB’s 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 ADB’s 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 ADB’s 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.

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Fair Value of Derivative Instruments

The table below provides information on the fair value amounts and the location of ADB’s derivative instruments on the Balance Sheet as of 31 December 2011 and 2010:

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		Derivative assets	Derivative assets		Derivative Liabilities	Derivative Liabilities
	Balance sheet Location	Fair Value		Balance sheet Location	Fair Value
		2011	2010		2011	2010
	Receivable from Swaps - Borrowings Receivable from Swaps - Others Receivable from Swaps - Others		$25,187,815,000 4,287,870,000 – 29,475,685,000 543,871,000 98,572,000 724,951,000 1,367,394,000 320,421,000 93,243,000 413,664,000 $31,256,743,000	Payable for Swaps - Borrowings Payable for Swaps - Others Payable for Swaps - Others		$22,464,043,000 3,310,970,000 – 25,775,013,000 703,710,000 140,782,000 741,597,000 1,586,089,000 318,178,000 173,574,000 491,752,000 $27,852,854,000
		$26,014,414,000			$23,742,774,000
		5,139,633,000			3,505,734,000
		219,057,000			216,857,000
		31,373,104,000			27,465,365,000
		1,877,873,000			2,104,936,000
		55,943,000			116,731,000
		3,615,024,000			3,632,380,000
		5,548,840,000			5,854,047,000
		620,385,000			608,110,000
		50,982,000			114,209,000
		671,367,000			722,319,000
		$37,593,311,000			$34,041,731,000

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NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010

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:

Futures Investment related swaps Currency swaps Interest rate swaps FX swaps FX forward Loans related swaps Currency swaps Interest rate swaps Borrowings related swaps Currency swaps Interest rate swaps FX forward total	Location of gain (Loss) recognized in income on Derivatives			amount of gain (Loss) recognized in income on Derivatives	amount of gain (Loss) recognized in income on Derivatives	amount of gain (Loss) recognized in income on Derivatives
				2011		2010 $ (398,000) 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
	Net Realized Gains (Losses) Net Unrealized Gains Revenue from Investments Net Realized Gains from Investments Net Unrealized Gains Revenue from Investments Net Realized Gains from Investments Net Unrealized Gains Revenue from Investments Net Realized Gains (Losses) Net Unrealized Gains Revenue from Loans Net Unrealized Gains Revenue from Loans Net Unrealized Gains Borrowings and related expenses Net Unrealized Gains Borrowings and related expenses Net Unrealized Gains Borrowings and related expenses
				$ (556,000)
				(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)
				(21,707,000)
				(17,641,000)
				13,102,000
				(44,525,000)
				(70,771,000)
				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

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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 ADB’s 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 Moody’s Investor Service, Inc. or BBB– by Standard and Poor’s Ratings Group, or such indebtedness ceases to be rated by Moody’s or S&P. If ADB’s 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 I—PROPERTY, 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

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NOTES TO FINANCIAL STATEMENTS

31 December 2011 and 2010

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:

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		property, Furniture, and Equipment	property, Furniture, and Equipment	property, Furniture, and Equipment
	Land	Buildings and Improvements	Office Furniture and Equipment	Work in Progress		grand total
	$10,178,000	$ 201,607,000	$117,224,000	$17,460,000		$ 346,469,000
	–	7,654,000	16,878,000	(5,009,000)		19,523,000
		–	(2,673,000)	–		(2,673,000)
	10,178,000	209,261,000	131,429,000	12,451,000		363,319,000
	–	(96,205,000)	(89,087,000)	–		(185,292,000)
	–	(5,998,000)	(13,051,000)	–		(19,049,000)
	–	–	2,473,000	–		2,473,000
	–	(102,203,000)	(99,665,000)	–		(201,868,000)
	$10,178,000	$107,058,000	$ 31,764,000	$12,451,000		$161,451,000

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	property, Furniture, and Equipment
	Land Buildings and Improvements Office Furniture and Equipment Work in Progress	grand total $328,533,000 19,799,000 (1,863,000)
	$10,178,000 $ 197,064,000 $106,437,000 $14,854,000 – 4,543,000 12,650,000 2,606,000 – – (1,863,000) –
	10,178,000 201,607,000 117,224,000 17,460,000	346,469,000
	– (91,009,000) (78,812,000) – – (5,196,000) (12,095,000) – – – 1,820,000 –	(169,821,000) (17,291,000) 1,820,000
	– (96,205,000) (89,087,000) –	(185,292,000)
	$10,178,000 $105,402,000 $ 28,137,000 $17,460,000	$161,177,000

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NOTE J—BORROWINGS

The key objective of ADB’s 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 K— CAPITAL 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 ADB’s 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 ADB’s 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).

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NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010

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:	For the year ending 31 December:
2012	$ 748,779,000
2013	845,700,000
2014	845,700,000
2015	388,497,000
2016	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 dollar— Note 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 ADB’s 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

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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:

Notional MOV Receivables Notional MOV Payables total	2011 $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, ADB’s shareholders consist of 67 member countries, 48 countries from the region and 19 countries from outside the region (OCR-8) .

NOTE L—RESERVES

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.

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NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010

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 ADB’s 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 ADB’s 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.

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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:

Balance, 1 January Changes from period activity Balance, 31 December	asc 815 adjustments and amortizations 2011 2010 $ – $(1,620) – 1,620 $ – $ –	accumulated translation adjustments 2011 2010 $125,727 $ 6,747 18,358 118,980 $144,085 $125,727	Unrealized investment holding gains (Losses) 2011 2010 $742,256 $683,627 (124,678) 58,629	Unrealized investment holding gains (Losses) 2011 2010 $742,256 $683,627 (124,678) 58,629	pension/postretirement Liability adjustment- asc 715 & 958 2011 2010 $(921,328) $(646,437) (261,605) (274,891) $(1,182,933) $(921,328)	pension/postretirement Liability adjustment- asc 715 & 958 2011 2010 $(921,328) $(646,437) (261,605) (274,891) $(1,182,933) $(921,328)	accumulated Other comprehensive (Loss) income 2011 2010 $ (53,345) $ 42,317 (367,925) (95,662)	accumulated Other comprehensive (Loss) income 2011 2010 $ (53,345) $ 42,317 (367,925) (95,662)
	2011 $ – – $ –	2011	2011		2011		2011
		$125,727	$742,256		$(921,328)		$ (53,345)
		18,358	(124,678)		(261,605)		(367,925)
		$144,085	$617,578	$742,256	$(1,182,933)	$(921,328)	$(421,270)	$(53,345)

NOTE M—INCOME 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

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NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010

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	Minimum future rentals
2012 2013 2014 2015 Later years	$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:

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		2011		2010 $28,416,000 (873,000) 21,342,000 (1,000) 975,000 (1,707,000) $48,152,000
		$30,161,000
		(20,803,000)
		(8,605,000)
		–
		3,892,000
		(278,000)
		$ 4,367,000

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NOTE N—RELATED 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”:

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 Funds—net Staff Retirement Plan total amounts payable to: Staff Retirement Plan		2011		2010 $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 $ –
		$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
		$ 7,566,000

NOTE O—STAFF 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. ADB’s contribution is determined at a rate sufficient to cover that part of the costs of the Plan not covered by the participants’ contributions.

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NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010

Expected Contributions

ADB’s 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 ADB’s 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 Plan’s 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 Plan’s package of desired investment return and tolerance for risk, taking into account the nature and duration of the Plan’s liabilities. The Plan’s 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 Plan’s investment policy is periodically reviewed and revised to reflect the best interest of the Plan’s 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 Plan’s 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 Plan’s 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 Plan’s 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 Plan’s assets is expected to remain broadly the same, year to year.

Actuarial assumptions based on the 2005–2009 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.

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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:

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 Employer’s contribution Plan participants’ contributions Benefits paid Fair value of plan assets at end of year Funded status			pension Benefits	pension Benefits	pension Benefits			postretirement Medical Benefits 2011 2010 $ 273,085,000 $ 193,718,000 14,466,000 7,616,000 15,661,000 11,950,000 – – 22,318,000 62,402,000 (2,899,000) (2,601,000) $ 322,631,000 $ 273,085,000 $ – $ – – – 2,899,000 2,601,000 – – (2,899,000) (2,601,000) $ – $ – $(322,631,000) $(273,085,000)	postretirement Medical Benefits 2011 2010 $ 273,085,000 $ 193,718,000 14,466,000 7,616,000 15,661,000 11,950,000 – – 22,318,000 62,402,000 (2,899,000) (2,601,000) $ 322,631,000 $ 273,085,000 $ – $ – – – 2,899,000 2,601,000 – – (2,899,000) (2,601,000) $ – $ – $(322,631,000) $(273,085,000)
			2011		2010			2011
					$1,823,287,000 50,306,000 107,867,000 41,479,000 262,420,000 (66,286,000) $2,219,073,000 $1,113,539,000 135,535,000 99,637,000 41,479,000 (66,286,000) $1,323,904,000 $ (895,169,000)
			$ 2,219,073,000					$ 273,085,000
			62,795,000					14,466,000
			124,079,000					15,661,000
			53,516,000					–
			157,104,000					22,318,000
			(89,093,000)					(2,899,000)
			$ 2,527,474,000					$ 322,631,000
			$ 1,323,904,000					$ –
			(11,442,000)					–
			101,041,000					2,899,000
			53,516,000					–
			(89,093,000)					(2,899,000)
			$1,377,926,000					$ –
			$(1,149,548,000)					$(322,631,000)

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31 December 2011 and 2010

table continued

table continued
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			pension Benefits					postretirement Medical Benefits 2011 2010 (6,418,000) (5,620,000) (316,213,000) (267,465,000) $(322,631,000) $(273,085,000) $ 92,376,000 $ 73,571,000 – (2,710,000) $ 92,376,000 $ 70,861,000 5.05% 5.50% N/A N/A 4.00% 5.25%
			2011		2010			2011
					– (895,169,000) $(895,169,000) $ 846,791,000 3,675,000 $ 850,466,000 5.50% 8.00% 5.25%
			–					(6,418,000)
			(1,149,548,000)					(316,213,000)
			$(1,149,548,000)					$(322,631,000)
			$ 1,090,554,000					$ 92,376,000
			–					–
			$ 1,090,554,000					$ 92,376,000
			5.05%					5.05%
			7.50%					N/A
			4.00%					4.00%

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.

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			pension Benefits	pension Benefits	pension Benefits			postretirement Medical Benefits 2011 2010 $14,466,000 $ 7,616,000 15,661,000 11,950,000 – – (2,710,000) (8,646,000) 3,513,000 – $30,930,000 $10,920,000	postretirement Medical Benefits 2011 2010 $14,466,000 $ 7,616,000 15,661,000 11,950,000 – – (2,710,000) (8,646,000) 3,513,000 – $30,930,000 $10,920,000
			2011		2010			2011
					$ 50,306,000 107,867,000 (101,449,000) 4,079,000 20,390,000 $ 81,193,000
			$ 62,795,000					$14,466,000
			124,079,000					15,661,000
			(116,831,000)					–
			3,675,000					(2,710,000)
			41,614,000					3,513,000
			$115,332,000					$30,930,000

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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:

Effect on total service and interest cost components Effect on postretirement benefit obligation	1-percentage- point increase $ 7,989,000 68,433,000	1-percentage- point Decrease
		$ (5,998,000) (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:

2012 2013 2014 2015 2016 2017–2021	pension Benefits $100,235,000 103,190,000 107,241,000 113,954,000 120,592,000 743,726,000	postretirement Medical Benefits
		$ 6,418,000 7,268,000 8,103,000 8,996,000 9,923,000 65,194,000

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.

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31 December 2011 and 2010

The fair value of the plan assets measured at fair value on a recurring basis of ADB’s pension plan as of 31 December 2011 and 2010 were reported based on the following:

assets Corporate equity securities Government or government- guaranteed securities Corporate debt securities Asset/mortgage-backed securities Temporary investments and time deposits Interest rate swaps—net Futures—net Foreign exchange contracts—net total assets at fair value Liabilities Foreign exchange contracts—net 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 contracts—net			Fair Value Measurements	Fair Value Measurements	Fair Value Measurements	Fair Value Measurements
			Quoted prices in active Markets for identical assets		significant Market Observable inputs			significant Unobservable inputs
	31 December 2011			(Level 1)		(Level 2)		(Level 3)
		$ 902,957,000		$ 902,945,000		$ –		$ 12,000
		190,652,000		180,808,000		4,723,000		5,121,000
		157,809,000		128,546,000		23,029,000		6,234,000
		63,435,000		42,446,000		13,983,000		7,006,000
		35,021,000		27,291,000		7,730,000		–
		123,000		–		–		123,000
		127,000		127,000		–		–
		4,424,000		–		4,424,000		–
		$1,354,548,000		$1,282,163,000		$ 53,889,000		$18,496,000
		$ –		$ –		$ –		$ –
	31 December 2010 $ 903,609,000 139,222,000 107,114,000 185,698,000 40,853,000 $1,376,496,000 $ 29,000			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 $ 29,000			significant Unobservable inputs (Level 3)
								$ – – – – – $ – $ –

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The table below provides the details of all inter-level transfers for the year ended 31 December 2011:

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)		Level 1 $11,957,000 38,458,000 12,336,000 $62,751,000		Level 2
				$(11,957,000) (38,458,000) (12,336,000) $(62,751,000)

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):

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			investments	investments	investments	investments
	corporate equity securities		government or government- guaranteed obligations			corporate debt securities		asset/ Mortgage- backed securities	interest rate swaps
		$ –		$ –		$ –		$ –		$ –
		(56,000)		384,000		(267,000)		107,000		123,000
		68,000		900,000		6,501,000		3,818,000		–
		–		–		–		–		–
		–		–		–		–		–
		–		3,837,000		–		3,081,000		–
		$ 12,000		$5,121,000		$6,234,000		$7,006,000		$123,000
		$(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 ADB’s valuation approach.

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31 December 2011 and 2010

NOTE P—FAIR VALUE OF FINANCIAL INSTRUMENTS

The carrying amounts and estimated fair values of ADB’s financial instruments as of 31 December 2011 and 2010 are summarized below:

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	2011	2011	2010 carrying amounta Estimated Fair Value $ 114,648,000 $ 114,648,000 18,253,359,000 18,253,359,000 707,851,000 707,851,000 318,228,000 318,228,000 45,943,811,000 47,418,894,000 1,108,198,000 1,108,198,000 29,475,685,000 29,475,685,000 1,781,058,000 1,781,058,000 1,588,350,000 1,588,350,000 17,604,000 17,604,000 52,386,484,000 53,176,587,000 25,775,013,000 25,775,013,000 2,077,841,000 2,077,841,000 1,588,350,000 1,588,350,000 17,604,000 17,604,000
	carrying amounta	Estimated Fair Value	carrying amounta $ 114,648,000 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 52,386,484,000 25,775,013,000 2,077,841,000 1,588,350,000 17,604,000
	$ 187,989,000	$ 187,989,000
	21,508,269,000	21,508,269,000
	330,044,000	330,044,000
	395,498,000	395,498,000
	49,759,260,000	51,378,685,000
	970,622,000	970,622,000
	31,373,104,000	31,373,104,000
	6,220,207,000	6,220,207,000
	1,942,954,000	1,942,954,000
	13,857,000	13,857,000
	58,834,767,000	59,994,911,000
	27,465,365,000	27,465,365,000
	6,576,366,000	6,576,366,000
	1,942,954,000	1,942,954,000
	13,857,000	13,857,000

a The carrying amount for borrowings and swaps are inclusive of accrued interest.

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Off-balance sheet financial instruments: ASSETS: Future guarantee receivable LIABILITIES: Guarantee liability		Estimated Fair Value	Estimated Fair Value
		2011	2010 $20,153,000 20,153,000
		$19,031,000
		19,031,000

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 entity’s 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

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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:

assets Investments Government or government- guaranteed 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		Fair Value Measurements	Fair Value Measurements	Fair Value Measurements
		Quoted prices in active Markets for identical assets	significant Market Observable inputs	significant Unobservable inputs
	31 December 2011	(Level 1)	(Level 2)	(Level 3)
	$ 19,156,304,000	$ 15,454,300,000	$ 3,499,267,000	$ 202,737,000
	1,151,963,000	–	1,151,963,000	–
	1,186,472,000	670,280,000	511,588,000	4,604,000
	–	–	–	–
	13,530,000	5,730,000	7,194,000	606,000
	330,044,000	330,044,000	–	–
	395,498,000	–	395,498,000	–
	31,373,104,000	–	25,422,716,000	5,950,388,000
	5,548,840,000	–	5,548,840,000	–

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table continued

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			Fair Value Measurements	Fair Value Measurements	Fair Value Measurements	Fair Value Measurements	Fair Value Measurements	Fair Value Measurements
			Quoted prices in active Markets for identical assets			significant Market Observable inputs		significant Unobservable inputs
	31 December 2011			(Level 1)		(Level 2)		(Level 3)
		671,367,000		–		648,866,000		22,501,000
		297,741,000		297,741,000		–		–
		$60,124,863,000		$16,758,095,000		$37,185,932,000		$ 6,180,836,000
		$54,037,988,000		$ –		$47,609,798,000		$6,428,190,000
		27,465,365,000		–		27,381,806,000		83,559,000
		5,854,047,000		–		5,854,047,000		–
		722,319,000		–		112,353,000		609,966,000
		$88,079,719,000		$ –		$80,958,004,000		$ 7,121,715,000

				Fair Value Measurements
		Quoted prices		significant	significant
		in active Markets		Market Observable	Unobservable
		for identical assets		inputs	inputs
	31 December 2010	(Level 1)		(Level 2)	(Level 3)
assets
Investments
Government or government-
guaranteed obligations	$ 13,842,500,000	$9,507,917,000		$ 774,666,000	$ 3,559,917,000
Time deposits and other obligations of banks	2,285,773,000		–	2,285,773,000	–
Corporate obligations	1,158,235,000	275,494,000		563,772,000	318,969,000
Asset-backed/mortgage-backed securities	929,577,000		–	927,083,000	2,494,000
Others	37,274,000	6,939,000		29,486,000	849,000
Securities transferred under
repurchase agreement	707,851,000	707,851,000		–	–
Securities purchased under resale arrangement	318,228,000		–	318,228,000	–
Borrowings related swaps	29,475,685,000		–	21,964,275,000	7,511,410,000
Investments related swaps	1,367,394,000		–	1,367,394,000	–
Loans related swaps	413,664,000		–	381,150,000	32,514,000
Equity investments	491,637,000	490,011,000		1,345,000	281,000
total assets at fair value	$51,027,818,000	$10,988,212,000		$28,613,172,000	$11,426,434,000
Liabilities
Borrowings	$ 48,075,055,000	$	–	$ 40,197,183,000	$7,877,872,000
Borrowings related swaps	25,775,013,000		–	25,637,293,000	137,720,000
Investments related swaps	1,586,089,000		–	1,586,089,000	–
Loans related swaps	491,752,000		–	137,294,000	354,458,000
total liabilities at fair value	$75,927,909,000	$	–	$67,557,859,000	$ 8,370,050,000

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31 December 2011 and 2010

The table below provides the details of all inter-level transfers for the year ended 31 December 2011 and 2010:

Investments Government or government-guaranteed obligations Transfers into (out of) Transfers (out of) into Corporate obligations Transfers into (out of) Transfers (out of) into	2011	2011	2011		2010 Level 1 Level 2 $ 14,751,000 $(14,751,000) (73,459,000) 73,459,000 – – (15,475,000) 15,475,000 $(74,183,000) $ 74,183,000	2010 Level 1 Level 2 $ 14,751,000 $(14,751,000) (73,459,000) 73,459,000 – – (15,475,000) 15,475,000 $(74,183,000) $ 74,183,000
	Level 1		Level 2		Level 1 $ 14,751,000 (73,459,000) – (15,475,000) $(74,183,000)
	$ 9,997,000		$ (9,997,000)
	(462,234,000)		462,234,000
	29,209,000		(29,209,000)
	(116,520,000)		116,520,000
	$(539,548,000)		$539,548,000

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):

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				investments	investments	investments
		government or government- guaranteed obligations		corporate obligations	asset-backed/ mortgage-backed securities			Others
		$ 3,559,917,000		$318,969,000		$2,494,000		$849,000
		216,000		(18,000)		0		–
		(5,015,000)		120,000		0		–
		93,999,000		–		–		–
		(1,326,221,000)		–		(2,356,000)		–
		–		–		(138,000)		(243,000)
		107,404,000		4,502,000
		(2,227,563,000)		(318,969,000)		–		–
		$ 202,737,000		$ 4,604,000		$ –		$606,000
		$ 120,000		$ 120,000		$ –		$ –

0 = Less than $500.

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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				investments	investments
		government or government- guaranteed obligations $ – 2,636,000 (6,965,000) 1,471,283,000 – – 2,092,963,000 $3,559,917,000 $ (14,028,000)		corporate obligations $ – (74,000) (2,143,000) 300,000,000 – – 21,186,000 $318,969,000 $ (2,143,000)	asset-backed/ mortgage-backed securities $ – – – 2,494,000 – – – $2,494,000 $ –		Others
							$ – – – 849,000 – – – $849,000 $ –

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		Borrowings related swaps	Borrowings related swaps		Loans related swaps	Loans related swaps	Loans related swaps
		swaps receivable	swaps payable		swaps receivable		swaps payable
		$7,511,410,000	$ (137,720,000)		$32,514,000		$(354,458,000)
		(543,520,000)	55,456,000		(7,577,000)		(12,644,000)
		(380,073,000)	(1,295,000)		(2,436,000)		33,103,000
		1,079,175,000	–		–		(306,961,000)a
		(1,716,604,000)	–		–		30,994,000
		$5,950,388,000	$ (83,559,000)		$22,501,000		$(609,966,000)
		$ (104,257,000)	$ 56,794,000		$ (7,776,000)		$ (10,859,000)

a Includes accretion of $156,867,000.

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31 December 2011 and 2010

table continued

table continued
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		Borrowings related swaps swaps receivable swaps payable $7,306,317,000 $ (79,030,000) 435,107,000 (55,538,000) 47,968,000 (3,152,000) 1,877,314,000 – (2,155,296,000) – $7,511,410,000 $ (137,720,000) $ (59,453,000) $ (54,646,000)		Loans related swaps
		swaps receivable $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)		swaps receivable $28,273,000 3,225,000 1,016,000 – – $32,514,000 $ 2,898,000		swaps payable
						$ (296,239,000) (8,715,000) (14,964,000) (54,836,000)a 20,296,000 $ (354,458,000) $ (8,603,000)

a Includes accretion of $4,636,000.

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	2011	2011	2011	2010 Equity investments Borrowings $ – $(7,403,678,000) – (551,622,000) – (71,865,000) 281,000 – – (2,058,244,000) – 2,207,537,000 $ 281,000 $(7,877,872,000) $ – $ (15,009,000)	2010 Equity investments Borrowings $ – $(7,403,678,000) – (551,622,000) – (71,865,000) 281,000 – – (2,058,244,000) – 2,207,537,000 $ 281,000 $(7,877,872,000) $ – $ (15,009,000)
	Equity investments		Borrowings	Equity investments $ – – – 281,000 – – $ 281,000 $ –
		$ 281,000	$(7,877,872,000)
		(281,000)	427,826,000
		–	373,524,000
		–	–
		–	(1,069,661,000)
		–	1,717,993,000
		$ –	$(6,428,190,000)
		$ –	$ 28,282,000

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 ADB’s 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 Poor’s of AAA to AA–. The corporate obligations are also floating rate notes with a credit quality rating from Standard and Poor’s of AAA. These valuations are provided by an independent pricing source.

100

Ordinary Capital Resources

OcR-9

cOntinUED

NOTE Q—SPECIAL AND TRUST FUNDS

ADB’s 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 ADB’s operations. Such projects/programs are funded with external funds administered by ADB and with external funds not under ADB’s 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 ADB’s 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:

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	2011	no. of Funds 1 1 1 1 1 1 1 1 1 9 91 100	2010	no. of Funds 1 1 1 1 1 1 1 1 1 9 86 95
	total net assets		total net assets $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 1,392,366,000 $34,453,228,000
	$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
	1,527,241,000
	$34,953,205,000

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 sources—net.”

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asian DEVELOpMEnt BanK—ORDinaRy capitaL REsOURcEs

NOTES TO FINANCIAL STATEMENTS

31 December 2011 and 2010

NOTE R—VARIABLE 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 entity’s activities that most significantly impact the entity’s 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 VIE’s 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 ADB’s loan, equity investments, and guarantee portfolio has identified two (two – 2010) investments in VIEs in which ADB is not the primary beneficiary, where ADB’s investment is significant and 11 VIEs (seven – 2010) where ADB’s 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.

ADB’s 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 ADB’s 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.

carrying Value of aDB’s Variable interests Assets Liabilities Maximum Exposure to Loss in non-consolidated ViEs Loans Equity Investments Guarantees total			significant	significant	significant			non-significant 2011 2010 $340,575,000 $208,774,000 8,125,000 9,860,000 $248,081,000 $161,887,000 84,369,000 37,026,000 157,945,000 184,638,000 $490,395,000 $383,551,000	non-significant 2011 2010 $340,575,000 $208,774,000 8,125,000 9,860,000 $248,081,000 $161,887,000 84,369,000 37,026,000 157,945,000 184,638,000 $490,395,000 $383,551,000
			2011		2010			2011
					$90,660,000 10,000 $90,444,000 206,000 1,565,000 $92,215,000
			$56,590,000					$340,575,000
			–					8,125,000
			$56,384,000					$248,081,000
			206,000					84,369,000
			–					157,945,000
			$56,590,000					$490,395,000

102

Ordinary Capital Resources

OcR-9

cOntinUED

NOTE S—SEGMENT REPORTING

Based on an evaluation of OCR’s 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 OCR’s 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:

country People’s Republic of China Indonesia India Philippines Pakistan Others total	2011	2011	Revenue $215,674,000 168,538,000 82,133,000 67,901,000 49,111,000 125,994,000 $709,351,000	2010	2010	Revenue $187,788,000 186,224,000 104,772,000 74,913,000 46,625,000 149,904,000 $750,226,000
	Outstanding Balance			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
	$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 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 T—SUBSEQUENT 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.

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asian deVelOpMent Fund

MANAGEMENT’S 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. ADB’s 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.

ADB’s 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 ADB’s 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.

ADB’s management assessed the effectiveness of ADB’s internal control over financial reporting as of 31 December 2011. In making this assessment, ADB’s 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, ADB’s internal control over financial reporting is effective based upon the criteria established in Internal Control – Integrated Framework.

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----- Start of picture text -----

Haruhiko Kuroda
President
Thierry de Longuemar
Vice-President (Finance and Administration)
Hiroshi Fukukawa
Officer-in-Charge, Controller’s Department
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14 March 2012

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Asian Development Fund

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 management’s assertion, included in the accompanying Management’s 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. ADB’s 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 Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on management’s 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.

ADB’s 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. ADB’s 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 ADB’s 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).

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Asian Development Bank Annual Report 2011

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, management’s 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.

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Public Accountants and Certified Public Accountants

Singapore March 14, 2012

106

Asian Development Fund

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 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 ADB’s 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.

Deloitte Touche LLP (Unique Entity No. T08LL0721A) is an accounting limited liability partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A).

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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 ADB’s 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, management’s 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 management’s 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.

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Public Accountants and Certified Public Accountants

Singapore March 14, 2012

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aDF-1

asian DEVELOpMEnt BanK—asian DEVELOpMEnt FUnD

SPECIAL PURPOSE STATEMENT OF ASSETS, LIABILITIES, AND FUND BALANCES 31 December 2011 and 2010

Expressed in thousands of United states Dollars

31 December 2011 and 2010 Expressed in thousands of United states Dollars
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 Less—allowance for HIPC Debt Relief ACCRUED REVENUE On investments On loans OTHER ASSETS (Notes E and F)		2011 $ 2,559 $ 4,124,683 1,672,716 5,797,399 335,818 29,514,607 78,927 29,435,680 44,453 66,481 110,934 257,765			2010 $ 2,580 $ 3,431,376 1,837,433 5,268,809 340,811 28,976,937 79,918 28,897,019 45,880 72,391 118,271 209,012
					$ 3,431,376 1,837,433 28,976,937 79,918 45,880 72,391
		$ 4,124,683
		1,672,716
		29,514,607
		78,927
		44,453
		66,481
tOtaL			$35,940,155			$34,836,502
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)			$ 41,432 220,848 2,623,150 – 2,885,430 33,054,725		$34,456,844 (73,285) 34,383,559 73,320 983,636 35,440,515 (2,298,983) 2,619,361 (3,110,003)	$ 28,628 179,884 1,975,557 1,543 2,185,612 32,650,890
		$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)
tOtaL			$35,940,155			$34,836,502

The accompanying notes are an integral part of these special purpose financial statements (ADF-8).

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Asian Development Bank Annual Report 2011

aDF-2

asian DEVELOpMEnt BanK—asian DEVELOpMEnt FUnD

SPECIAL PURPOSE STATEMENT OF REVENUE AND EXPENSES

For the Years Ended 31 December 2011 and 2010

Expressed in thousands of United states Dollars

For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars
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		2011 $ 316,186 96,914 142 $ 413,242 1,120,579 254,829 13,362 – 18 1,388,788 9,094 – 9,094 (10,328)		2010 $ 290,518 107,773 51 $ 398,342 651,756 225,911 10,547 (859) 19 887,374 854 (169,308) (168,454) (18,999)
REVEnUE LEss than ExpEnsEs		$ (976,780)		$ (676,485)

The accompanying notes are an integral part of these special purpose financial statements (ADF-8).

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asian DEVELOpMEnt BanK—asian DEVELOpMEnt FUnD

SPECIAL PURPOSE STATEMENT OF COMPREHENSIVE LOSS

For the Years Ended 31 December 2011 and 2010

Expressed in thousands of United states Dollars

SPECIAL PURPOSE STATEMENT OF COMPREHENSIVE LOSS For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars
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		2011 $ (976,780) (687,552) (6,271) (9,094) (702,917)		2010 $ (676,485) (363,808) (15,848) (811) (380,467)
cOMpREhEnsiVE LOss		$(1,679,697)		$(1,056,952)

The accompanying notes are an integral part of these special purpose financial statements (ADF-8).

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Asian Development Bank Annual Report 2011

aDF-4

asian DEVELOpMEnt BanK—asian DEVELOpMEnt FUnD

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

The accompanying notes are an integral part of these special purpose financial statements (ADF-8).

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SPECIAL PURPOSE STATEMENT OF CASH FLOWS

For the Years Ended 31 December 2011 and 2010

Expressed in thousands of United states Dollars

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 losses—net Net Cash Used in Operating Activities	2011 $ 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 $ (976,780) 9,772 13,362 1,120,579 (23,540) (9,094) – (473,343) (36,901) 8,114 12,805 (679) 10,328 $ (345,377)		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 $ (676,485) 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).

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SPECIAL PURPOSE SUMMARY STATEMENT OF LOANS 31 December 2011 and 2010

Expressed in thousands of United states Dollars

		Undisbursed	Loans
	Loans	Balances of	not yet	total	percent of
Borrowers/guarantors1	Outstanding	Effective Loans2, 3	Effective4	Loans	total Loans
Afghanistan	$ 638,114	$ 129,705	$ –	$ 767,819	2.11
Armenia	165,285	103,241	–	268,526	0.74
Azerbaijan	46,369	7,880	–	54,249	0.15
Bangladesh	5,974,595	1,431,344	146,055	7,551,994	20.72
Bhutan	167,832	28,831	19,539	216,202	0.59
Cambodia	937,842	161,988	65,370	1,165,200	3.20
Cook Islands	28,015	2,897	–	30,912	0.08
Georgia	261,382	279,864	–	541,246	1.49
Indonesia	1,312,829	150,249	–	1,463,078	4.01
Kazakhstan	7,741	–	–	7,741	0.02
Kiribati	14,035	10,956	7,216	32,207	0.09
Kyrgyz Republic	589,779	97,352	53,797	740,928	2.03
Lao People’s Democratic Republic	1,190,456	4,500	35,629	1,230,585	3.38
Maldives	98,761	25,933	–	124,694	0.34
Marshall Islands	76,416	–	–	76,416	0.21
Federated States of Micronesia	50,554	8,911	–	59,465	0.16
Mongolia	611,898	86,420	62,871	761,189	2.09
Myanmar	642,287	–	–	642,287	1.76
Nepal	1,588,004	396,070	149,700	2,133,774	5.86
Pakistan	6,994,680	192,456	264,707	7,451,843	20.45
Palau	3,424	–	–	3,424	0.01
Papua New Guinea	278,316	248,959	86,971	614,246	1.69
Philippines	775,123	–	–	775,123	2.13
Samoa	113,681	17,125	10,537	141,343	0.39
Solomon Islands	52,721	–	–	52,721	0.14
Sri Lanka	2,659,314	374,533	–	3,033,847	8.33
Tajikistan	341,709	16,604	–	358,313	0.98
Tonga	39,137	–	–	39,137	0.11
Tuvalu	6,920	–	–	6,920	0.02
Uzbekistan	139,467	341,646	56,544	537,657	1.48
Vanuatu	55,154	–	15,172	70,326	0.19
Viet Nam	3,651,183	1,537,619	296,305	5,485,107	15.05
Regional	1,584	–	–	1,584	0.00
TOTAL – 31 December 2011	$29,514,607	$ 5,655,083	$1,270,413	$36,440,103	100.00
Allowance for HIPC Debt Relief	(78,927)	–	–	(78,927)
nEt BaLancE – 31 December 2011	$29,435,680	$5,655,083	$1,270,413	$36,361,176
nEt BaLancE – 31 December 2010	$28,897,019	$5,104,341	$1,469,618	$35,470,978

1 Loans other than those made directly to a member or to its central bank have been guaranteed by the member.

2 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).

3 Refer to the unwithdrawn portions of effective loans as of 31 December 2011.

4 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.

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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		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 total				2010
	2011				2011
							123,362 224,873 91 99,757 125,129 947 2,139,439 17,733,835 $28,976,937
	$ 77,064				116,944
	279,083				232,739
	28,796				88
	2,075,806				94,539
	6,073,053				120,328
	23,798				873
	891				2,122,491
	1,560				18,266,554
					$29,514,607

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).

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SPECIAL PURPOSE STATEMENT OF RESOURCES 31 December 2011

Expressed in thousands of United states Dollars

SPECIAL PURPOSE STATEMENT OF RESOURCES 31 December 2011 Expressed in thousands of United states Dollars
	Effective amounts committed1 contributions Received
CONTRIBUTED RESOURCES Australia Austria Belgium Brunei Darussalam Canada People’s 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	$ 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	$ 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
tOtaL	$27,075,654	$37,627,231

1 At exchange rates per Resolutions.

2 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).

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NOTES TO SPECIAL PURPOSE FINANCIAL STATEMENTS 31 December 2011 and 2010

NOTE A—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, ADB’s corporate vision and mission has been to help DMCs reduce poverty in the region. This was reaffirmed under the long-term strategic framework for 2008–2020 (Strategy 2020). Under Strategy 2020, ADB’s 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 ADB’s 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 B—SUMMARY 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

1 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).

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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 ADF’s 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

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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.

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NOTES TO SPECIAL PURPOSE FINANCIAL STATEMENTS 31 December 2011 and 2010

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 Creditor’s 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 ADF’s 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 ADF’s 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 ADF’s 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

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accumulated other comprehensive income. ADB has decided to adopt the provisions in ASU 2011-05 and presented in ADF-2 and ADF-3 on ADF’s 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 entity’s 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 ADF’s 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 C—INVESTMENTS

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 ADB’s 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

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NOTES TO SPECIAL PURPOSE FINANCIAL STATEMENTS 31 December 2011 and 2010

The estimated fair value and amortized cost of the investments as of 31 December 2011 and 2010 are as follows:

Due in one year or less Due after one year through five years Due after five years through ten years Total	2011	amortized cost $3,399,129,000 2,296,573,000 15,663,000 $5,711,365,000	2010	amortized cost $3,053,835,000 2,064,614,000 48,961,000 $5,167,410,000
	Estimated Fair Value		Estimated Fair Value $3,058,961,000 2,160,119,000 49,729,000 $5,268,809,000
	$3,408,919,000
	2,371,229,000
	17,251,000
	$5,797,399,000

Additional information relating to investments in government or government-guaranteed obligations classified as available for sale is as follows:

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	2011 $4,038,649,000 4,124,683,000 86,607,000 (573,000) (15,365,000) 197,793,000 9,094,000 –	2010 $3,329,977,000 3,431,376,000 101,605,000 (206,000) (16,660,000) 127,659,000 1,034,000 (180,000)

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.

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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:

For the year 2011 Government or government- guaranteed obligations For the year 2010 Government or government- guaranteed obligations		One year or less	One year or less	One year or less		Over on	e year	e year		total	total
		Fair Value	Unrealized Losses			Fair Value	Unrealized Losses			Fair Value	Unrealized Losses
		$370,738,000		$541,000		$220,049,000		$32,000		$590,787,000	$573,000
		One year or less Fair Value Unrealized Losses $428,243,000 $206,000				Over on	e year Unrealized Losses $ –			total
		Fair Value $428,243,000				Fair Value $ –				Fair Value $428,243,000	Unrealized Losses
											$206,000

NOTE D—LOANS 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

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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 ADB’s 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:

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		2011 $ 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.

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The credit quality of ADF loans have been classified by mapping the external sovereign ratings of the borrowers to ADB’s 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 1–5 (AAA to BBB–) 6–11 (BB+ to B–) 12–14 (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 E—RELATED 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, ADF’s 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 F—CONTRIBUTED RESOURCES AND ADVANCED CONTRIBUTIONS

In May 2011, the Board of Governors approved the allocation of $120,000,000 from OCR’s 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.

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NOTES TO SPECIAL PURPOSE FINANCIAL STATEMENTS 31 December 2011 and 2010

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 Italy’s 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 G—ADMINISTRATIVE 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 H—SET-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 (ADB’s 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 ADB’s 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.

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NOTE I—COMPREHENSIVE 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	accumulated translation adjustments	accumulated translation adjustments	accumulated translation adjustments		Unrealized investment holding gains	Unrealized investment holding gains	Unrealized investment holding gains	Unrealized investment holding gains		accumulated Other comprehensive Loss	accumulated Other comprehensive Loss	accumulated Other comprehensive Loss	accumulated Other comprehensive Loss
Balance, 1 January Changes from period activity Balance, 31 December		2011			2010 $(2,847,594) (363,808) $(3,211,402)		2011			2010 $118,058 (16,659) $101,399		2011			2010 $ (2,729,536) (380,467) $(3,110,003)
		$ (3,211,402)					$101,399					$ (3,110,003)
		(687,552)					(15,365)					(702,917)
		$(3,898,954)					$ 86,034					$(3,812,920)

NOTE J—GRANTS 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 K—FAIR 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 entity’s 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.

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NOTES TO SPECIAL PURPOSE FINANCIAL STATEMENTS 31 December 2011 and 2010

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:

				Fair Value Measurements	Fair Value Measurements	Fair Value Measurements
	31 December 2011		Quoted prices in active Markets for identical assets (Level 1)		significant Market Observable inputs (Level 2)	significant Unobservable inputs (Level 3)
assets
Investments
Government or government-
guaranteed obligations		$ 4,124,683,000	$ 3,365,358,000		$ 759,325,000	$ –
Time deposits		1,672,716,000	–		1,672,716,000		–
Securities purchased under
resale arrangement		335,818,000	–		335,818,000		–
total assets at fair value		$6,133,217,000	$3,365,358,000		$2,767,859,000	$ –
				Fair Value Measurements
			Quoted prices		significant		significant
			in active Markets		Market Observable	Unobservable
			for identical assets		inputs		inputs
	31 December 2010		(Level 1)		(Level 2)		(Level 3)
assets
Investments
Government or government-
guaranteed obligations		$ 3,431,376,000	$ 2,963,333,000		$ –	$ 468,043,000
Time deposits		1,837,433,000	–		1,837,433,000		–
Securities purchased under
resale arrangement		340,811,000	–		340,811,000		–
total assets at fair value		$5,609,620,000	$2,963,333,000		$2,178,244,000	$468,043,000

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The table below provides the details of transfers between Level 1 and Level 2 for the year ended 31 December 2011:

Investments Government or government-guaranteed obligations Transfers (out of) into	Level 1 $(98,317,000)	Level 2
		$98,317,000

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:

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.			government or government- guaranteed obligations	government or government- guaranteed obligations	government or government- guaranteed obligations
			2011 $ 468,043,000 130,000 6,896,000 – (212,311,000) – (262,758,000) $ – $ –		2010 $ – 18,000 (6,577,000) 141,854,000 – 332,748,000 – $468,043,000 $ (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 ADB’s 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 Poor’s of AAA to AA–. The corporate obligations are also floating rate notes.

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NOTES TO SPECIAL PURPOSE FINANCIAL STATEMENTS 31 December 2011 and 2010

See Notes C, D, and J for discussions relating to investments, loans, and undisbursed commitments, respectively. In all other cases, the carrying amounts of ADF’s assets, liabilities, and fund balances are considered to approximate fair values for all significant financial instruments.

NOTE L—SUBSEQUENT 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 ADF’s Special Purpose Financial Statements as of 31 December 2011.

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MANAGEMENT’S 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. ADB’s 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.

ADB’s 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 ADB’s 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.

ADB’s management assessed the effectiveness of ADB’s internal control over financial reporting as of 31 December 2011. In making this assessment, ADB’s 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, ADB’s internal control over financial reporting is effective based upon the criteria established in Internal Control – Integrated Framework .

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Haruhiko Kuroda
President
Thierry de Longuemar
Vice-President (Finance and Administration)
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Hiroshi Fukukawa Officer-in-Charge, Controller’s Department

14 March 2012

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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 management’s assertion, included in the accompanying Management’s 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. ADB’s 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 Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on management’s 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.

ADB’s 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. ADB’s 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 ADB’s 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).

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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, management’s 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.

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Public Accountants and Certified Public Accountants

Singapore March 14, 2012

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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 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 ADB’s 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 ADB’s 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.

Deloitte Touche LLP (Unique Entity No. T08LL0721A) is an accounting limited liability partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A).

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We have also audited, in accordance with attestation standards established by the American Institute of Certified Public Accountants, management’s 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 management’s assertion that ADB maintained effective internal control over financial reporting.

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Public Accountants and Certified Public Accountants

Singapore March 14, 2012

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tasF-1

asian DEVELOpMEnt BanK—tEchnicaL assistancE spEciaL FUnD

STATEMENT OF FINANCIAL POSITION

31 December 2011 and 2010

Expressed in thousands of United states Dollars

STATEMENT OF FINANCIAL POSITION 31 December 2011 and 2010 Expressed in thousands of United states Dollars
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)		2011 $ 1,494 380,995 10,923 21 129,083 9,464		2010 $ 1,640 357,140 4,906 109 172,187 10,824
tOtaL		$531,980		$546,806
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		$ 188 306,681 306,869 225,111		$ 125 298,595 298,720 248,086
tOtaL		$531,980		$546,806

The accompanying notes are an integral part of these financial statements (TASF-6).

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tasF-2

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STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS For the Years Ended 31 December 2011 and 2010

Expressed in thousands of United states Dollars

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

The accompanying notes are an integral part of these financial statements (TASF-6).

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tasF-3

asian DEVELOpMEnt BanK—tEchnicaL assistancE spEciaL FUnD

STATEMENT OF CASH FLOWS

For the Years Ended 31 December 2011 and 2010

Expressed in thousands of United states Dollars

STATEMENT OF CASH FLOWS For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars
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		2011 $ 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 $ (22,975) 82 35,414 2,408 65 8,086 8,792 $ 31,872		2010
				$ 120,837 2,416 (10) (94,909) (16) 28,318 8,307,458 (8,341,153) 4,498 (29,197) 192 (687) 2,327 $ 1,640 $ (74,622) (79) 70,946 5,917 (706) 39,750 (12,888) $ 28,318

The accompanying notes are an integral part of these financial statements (TASF-6).

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tasF-4

asian DEVELOpMEnt BanK—tEchnicaL assistancE spEciaL FUnD

STATEMENT OF RESOURCES

31 December 2011

Expressed in thousands of United states Dollars

STATEMENT OF RESOURCES 31 December 2011 Expressed in thousands of United states Dollars	STATEMENT OF RESOURCES 31 December 2011 Expressed in thousands of United states Dollars	STATEMENT OF RESOURCES 31 December 2011 Expressed in thousands of United states Dollars	STATEMENT OF RESOURCES 31 December 2011 Expressed in thousands of United states Dollars
contributor contributions committed During 2011 Direct Voluntary contributions Regularized Replenishment1				total contributions
Australia Austria Bangladesh Belgium Brunei Darussalam Canada People’s 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	$ – – – – – – – – 16 – – – – – – 1,964 – – – – – – 2,594 – 70 – – – – – – – – – – 37,090 $ 41,733 40,000	$ 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	$ 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	$ 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) 809,000 186,588
tOtaL	$81,733			$ 1,844,799

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).

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tasF-5

asian DEVELOpMEnt BanK—tEchnicaL assistancE spEciaL FUnD

SUMMARY STATEMENT OF TECHNICAL ASSISTANCE APPROVED AND EFFECTIVE

For the Year Ended 31 December 2011

Expressed in thousands of United states Dollars

Recipient project preparation	Recipient project preparation	advisory Research and Development policy and advisory capacity Development	advisory Research and Development policy and advisory capacity Development	advisory Research and Development policy and advisory capacity Development	advisory Research and Development policy and advisory capacity Development	total
Afghanistan Bangladesh Bhutan Cambodia People’s Republic of China Georgia India Indonesia Kazakhstan Kyrgyz Republic Lao People’s 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	$ – 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	$ – (2,476) (42) – (604) – (647) (105) – (39) (50) (29) – (50) (125) (126) (1,098) (1,882) – (571) – – (237) (750) – – – (43) (436) – $(9,312)	$ – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 20,231 $20,231	$ (325) 1,200 – 446 8,269 (145) (298) – – 225 – – 300 – (33) – 1,500 (803) 800 (100) – – 300 600 450 – – 750 – 8,006 $21,141	$ – 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	$ (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
tOtaL						$111,938

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).

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NOTES TO FINANCIAL STATEMENTS

31 December 2011 and 2010

NOTE A—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, ADB’s corporate vision and mission has been to help DMCs reduce poverty in the region. This was reaffirmed under the long-term strategic framework for 2008–2020 (Strategy 2020). Under Strategy 2020, ADB’s 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 B—SUMMARY 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 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).

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NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010

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.

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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 TASF’s 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 TASF’s 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 TASF’s 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.

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NOTES TO FINANCIAL STATEMENTS

31 December 2011 and 2010

NOTE C—INVESTMENTS

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 D—RELATED 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 ADB’s other special funds and trust funds administered by ADB (Agency Trust Funds). Interfund accounts are settled regularly between TASF and the other funds.

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cOntinUED

tasF-6

The interfund account balances included in “ADVANCES FOR GRANTS AND OTHER ASSETS” and “ACCOUNTS PAYABLE AND OTHER LIABILITIES” are as follows:

Receivable from: Japan Special Fund Regional Cooperation and Integration Fund Agency Trust Funds—net Total payable to: Ordinary capital resources Regional Cooperation and Integration Fund Climate Change Fund Agency Trust Funds—net Total		2011 $11,000 – – $11,000 $ 2,000 48,000 11,000 37,000 $98,000		2010 $ 9,000 5,000 247,000 $261,000 $ 95,000 – – – $ 95,000

NOTE E—UNDISBURSED 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 F—CONTRIBUTIONS 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.

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NOTES TO FINANCIAL STATEMENTS

31 December 2011 and 2010

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 G—FAIR 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 entity’s 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.

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The fair value of the following financial assets of TASF as of 31 December 2011 and 2010 were reported based on the following:

assets Investments Time deposits Securities purchased under resale arrangement total assets at fair value			Fair Value Measurements	Fair Value Measurements	Fair Value Measurements	Fair Value Measurements	Fair Value Measurements
			Quoted prices in active Markets for identical assets		significant Market Observable inputs			significant Unobservable inputs
	31 December 2011			(Level 1)		(Level 2)		(Level 3)
		$ 380,995,000		$ –		$ 380,995,000		$ –
		10,923,000		–		10,923,000		–
		$391,918,000		$ –		$391,918,000		$ –

			Fair	Value Measurements
		Quoted prices		significant	significant
		in	active Markets	Market Observable	Unobservable
		for	identical assets	inputs	inputs
	31 December 2010		(Level 1)	(Level 2)	(Level 3)
assets
Investments
Time deposits	$ 357,140,000	$	–	$ 357,140,000	$	–
Securities purchased under resale arrangement	4,906,000		–	4,906,000		–
total assets at fair value	$362,046,000	$	–	$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 TASF’s assets, liabilities, and uncommitted balances are considered to approximate fair values for all significant financial instruments.

nOtE h—sUBsEQUEnt 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 TASF’s Financial Statements as of 31 December 2011.

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Japan special Fund

MANAGEMENT’S 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. ADB’s 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.

ADB’s 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 ADB’s 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.

ADB’s management assessed the effectiveness of ADB’s internal control over financial reporting as of 31 December 2011. In making this assessment, ADB’s 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, ADB’s internal control over financial reporting is effective based upon the criteria established in Internal Control – Integrated Framework .

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Haruhiko Kuroda
President
Thierry de Longuemar
Vice-President (Finance and Administration)
Hiroshi Fukukawa
Officer-in-Charge, Controller’s Department
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14 March 2012

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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 management’s assertion, included in the accompanying Management’s 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. ADB’s 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 Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on management’s 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.

ADB’s 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. ADB’s 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 ADB’s 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).

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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, management’s 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.

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Public Accountants and Certified Public Accountants

Singapore March 14, 2012

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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 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 ADB’s 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, management’s 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 management’s assertion that ADB maintained effective internal control over financial reporting.

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Public Accountants and Certified Public Accountants

Singapore March 14, 2012

Deloitte Touche LLP (Unique Entity No. T08LL0721A) is an accounting limited liability partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A).

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STATEMENT OF FINANCIAL POSITION

31 December 2011 and 2010

Expressed in thousands of United states Dollars

assEts DUE FROM BANKS INVESTMENTS (Notes C and G) Government or government-guaranteed obligations Time deposits ACCRUED REVENUE ADVANCES FOR TECHNICAL ASSISTANCE AND OTHER ASSETS (Note D)1		2011	2011			2010	2010	total $ 355 – 157,946 157,946 15 3,973
	accsF	JsF Regular and supplementary		total	accsF $ 70 – 36,582 36,582 3 –	JsF Regular and supplementary $ 285 – 121,364 121,364 12 3,974
	$ 172		$ 216	$ 388
	2,991		–	2,991
	33,546		93,890	127,436
	36,537		93,890	130,427
	2		4	6
	–		1,807	1,806
tOtaL1	$36,711		$95,917	$132,627	$36,655		$125,635	$162,289
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 Net accumulated investment income (Note F) Temporarily restricted					$ 1 – 1 – 28,199 28,199 8,455 36,654		$ 313 72,512 72,825 52,810 – 52,810 – 52,810	$ 313 72,512 72,825 52,810 28,199 81,009 8,455 89,464
	$ 1		$ 62	$ 62
	–		38,432	38,432
	1		38,494	38,494
	–		57,423	57,423
	28,199		–	28,199
	28,199		57,423	85,622
	8,511		–	8,511
	36,710		57,423	94,133
tOtaL1	$36,711		$95,917	$132,627	$36,655		$125,635	$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).

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STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS For the Years Ended 31 December 2011 and 2010

Expressed in thousands of United states Dollars

changEs in UnREstRictED nEt assEts REVENUE FROM INVESTMENTS (Note C) REVENUE FROM OTHER SOURCES NET ASSETS REVERTED FROM TEMPORARILY RESTRICTED ASSETS Total EXPENSES Technical assistance—net (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		2011	2011	total $ 217 14 1 232 (4,691) 305 (4,386) 4,618 (5) 4,613 57 (1) 56 4,669 89,464		2010	2010	total $ 375 18 1 394 14,687 733 15,420 (15,026) (5) (15,031) 92 (1) 91 (14,940) 104,404
	accsF	JsF Regular and supplementary			accsF $ – 0 1 1 – 1 1 0 – 0 92 (1) 91 91 36,563	JsF Regular and supplementary $ 375 18 – 393 14,687 732 15,419 (15,026) (5) (15,031) – – – (15,031) 67,841
	$ –		$ 217
	–		14
	1		–
	1		231
	–		(4,691)
	1		304
	1		(4,387)
	–		4,618
	–		(5)
	–		4,613
	57		–
	(1)		–
	56		–
	56		4,613
	36,654		52,810
nEt assEts at EnD OF yEaR	$36,710		$57,423	$94,133	$36,654		$52,810	$89,464

0 = Less than $500.

The accompanying notes are an integral part of these financial statements (JSF-4).

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JsF-3

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STATEMENT OF CASH FLOWS

For the Years Ended 31 December 2011 and 2010

Expressed in thousands of United states Dollars

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 Others—net Exchange losses (gains)—net Net Cash Provided by (Used in) Operating Activities		2011	2011		accsF $ 90 (6) (1) 0 83 1,802,229 (1,802,319) (90) – (7) 77 $ 70 $ 91 – – – (8) – $ 83	2010	total $ 462 (36,775) (770) 12 (37,071) 5,514,452 (5,477,418) 37,034 0 (37) 392 $ 355 $ (14,940) – – (21,569) (561) (1) $ (37,071)
	accsF	JsF Regular and supplementary		total		JsF Regular and supplementary $ 372 (36,769) (769) 12 (37,154) 3,712,223 (3,675,099) 37,124 0 (30) 315 $ 285 $ (15,031) – – (21,569) (553) (1) $ (37,154)
	$ 65		$ 226	$ 291
	0		(27,341)	(27,341)
	(1)		(438)	(439)
	0		10	10
	64		(27,543)	(27,479)
	2,015,297		5,085,747	7,101,044
	(2,015,259)		(5,058,273)	(7,073,532)
	38		27,474	27,512
	–		0	0
	102		(69)	33
	70		285	355
	$ 172		$ 216	$ 388
	$ 56		$ 4,613	$ 4,669
	(0)		–	(0)
	8		–	8
	–		(34,080)	(34,080)
	0		1,923	1,923
	–		1	1
	$ 64		$ (27,543)	$ (27,479)

0 = Less than $500.

The accompanying notes are an integral part of these financial statements (JSF-4).

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NOTES TO FINANCIAL STATEMENTS

31 December 2011 and 2010

NOTE A—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, ADB’s corporate vision and mission has been to help DMCs reduce poverty in the region. This was reaffirmed under the long-term strategic framework for 2008–2020 (Strategy 2020). Under Strategy 2020, ADB’s 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 ADB’s 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 Japan’s 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 B—SUMMARY 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 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).

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NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010

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.

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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 JSF’s 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 JSF’s 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 C—INVESTMENTS

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.

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NOTES TO FINANCIAL STATEMENTS

31 December 2011 and 2010

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 D—RELATED 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:

Amounts Receivable by: JSF from: ACCSF Amounts Payable by: JSF to: OCR TASF RCIF Agency Trust Funds—net Total ACCSF to: JSF		2011 $ 1,000 $12,000 11,000 – 6,000 $29,000 $ 1,000		2010 $ 1,000 $134,000 9,000 94,000 15,000 $252,000 $ 1,000

NOTE E—UNDISBURSED 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.

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NOTE F—CONTRIBUTIONS 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 JSF’s 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:

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			2011	2011					2010		total $ 81,009,000 (700,000) (3,640,000) $ 76,669,000
		accsF	JsF Regular and supplementary			total		accsF $28,199,000 – – $28,199,000	JsF Regular and supplementary $ 52,810,000 (700,000) (3,640,000) $ 48,470,000
		$28,199,000		$57,423,000		$85,622,000
		–		–		–
		–		(1,320,000)		(1,320,000)
		$28,199,000		$56,103,000		$84,302,000

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.

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NOTES TO FINANCIAL STATEMENTS

31 December 2011 and 2010

NOTE G—FAIR 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 entity’s 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:

assets Investments Government or government- guaranteed obligations Time deposits total assets at fair value assets Investments Time deposits			Fair Value Measurements	Fair Value Measurements	Fair Value Measurements	Fair Value Measurements	Fair Value Measurements
	31 December 2011		Quoted prices in active Markets for identical assets (Level 1)		significant Market Observable inputs (Level 2)			significant Unobservable inputs (Level 3)
		$ 2,991,000		$2,991,000		$ –		$ –
		127,436,000		–		127,436,000		–
		$130,427,000		$2,991,000		$127,436,000		$ –
	31 December 2010 $157,946,000			Fair Value Measurements
			Quoted prices in active Markets for identical assets (Level 1) $ –		significant Market Observable inputs (Level 2) $ 157,946,000			significant Unobservable inputs (Level 3)
								$ –

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See Notes C and E for discussions relating to investments and undisbursed commitments, respectively. In all other cases, the carrying amounts of JSF’s assets, liabilities, and uncommitted balances are considered to approximate fair values for all significant financial instruments.

NOTE H—SUBSEQUENT 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 JSF’s Financial Statements as of 31 December 2011.

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Deloitte Touche Tohmatsu LLC MS Shibaura Building 4-13-23, Shibaura Minato-ku, Tokyo 108-8530 Japan Tel: +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 Institute’s (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 Institute’s 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 ADB—Asian 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.

==> picture [230 x 26] intentionally omitted <==

March 14, 2012

Member of Deloitte Touche Tohmatsu Limited

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STATEMENT OF FINANCIAL POSITION 31 December 2011 and 2010

Expressed in thousands of United states Dollars

STATEMENT OF FINANCIAL POSITION 31 December 2011 and 2010 Expressed in thousands of United states Dollars
assEts DUE FROM BANKS SECURITIES PURCHASED UNDER RESALE ARRANGEMENT (Notes C and D) PROPERTY, FURNITURE, AND EQUIPMENT (Note E) Property, Furniture, and Equipment Less—allowance for depreciation DUE FROM CONTRIBUTORS (Note H) LONG-TERM GUARANTEE DEPOSITS (Note F) OTHER ASSETS		2011 $ 1,473 5,982 $ 4,344 4,189 155 8,779 2,081 654		2010 $ 819 4,293 $ 4,097 3,990 107 8,616 2,384 530
tOtaL		$19,124		$16,749
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		$ 6,553 1,406 1,329 $ 9,288 9,836		$ 5,368 1,327 1,138 $ 7,833 8,916
tOtaL		$19,124		$16,749

The accompanying notes are an integral part of these financial statements (ADBI-4).

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STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS

For the Years Ended 31 December 2011 and 2010

Expressed in thousands of United states Dollars

STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars
changEs in UnREstRictED nEt assEts CONTRIBUTIONS (Note H) REVENUE From rental (Note I) From investments (Note C) From other sources—net Total EXPENSES Administrative expenses (Note J) Program expenses Total CONTRIBUTIONS AND REVENUE IN EXCESS OF EXPENSES EXCHANGE GAINS—net TRANSLATION ADJUSTMENTS PENSION/POSTRETIREMENT LIABILITY ADJUSTMENT – ASC 715 AND 958 (Note L) INCREASE IN UNRESTRICTED NET ASSETS NET ASSETS AT BEGINNING OF YEAR		2011 $ 17,663 496 5 74 18,238 11,149 6,278 17,427 811 186 495 (572) 920 8,916		2010 $ 16,984 493 4 24 17,505 10,781 4,717 15,498 2,007 321 754 (1,428) 1,654 7,262
nEt assEts at EnD OF yEaR		$ 9,836		$ 8,916

The accompanying notes are an integral part of these financial statements (ADBI-4).

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STATEMENT OF CASH FLOWS

For the Years Ended 31 December 2011 and 2010

Expressed in thousands of United states Dollars

STATEMENT OF CASH FLOWS For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars
CASH FLOWS FROM OPERATING ACTIVITIES Contributions received Interest on investments received Expenses paid Others—net 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 Others—net Net Cash Provided by Operating Activities		2011 $ 17,337 5 (16,298) 755 1,799 900 (900) (976) (111) (1,087) (58) 654 819 $ 1,473 $ 920 66 (326) 303 (123) 1,185 80 189 (495) 0 $ 1,799		2010 $ 16,323 4 (15,382) 838 1,783 – – (1,214) – (1,214) (203) 366 453 $ 819 $ 1,654 86 (660) (281) (173) 1,696 156 59 (754) 0 $ 1,783

0 = Less than $500.

The accompanying notes are an integral part of these financial statements (ADBI-4).

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NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010

NOTE A—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, ADB’s corporate vision and mission has been to help DMCs reduce poverty in the region. This was reaffirmed under the long-term strategic framework for 2008–2020 (Strategy 2020). Under Strategy 2020, ADB’s 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 Institute’s 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 B—SUMMARY 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 donor’s 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.

1 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).

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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 gains—net 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.

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NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010

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 ADBI’s 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 ADBI’s 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 year’s amounts and information have been made to conform to the current year’s presentation.

NOTE C—SECURITIES 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).

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NOTE D—FAIR 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 entity’s 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:

assets Securities purchased under resale arrangement assets Securities purchased under resale arrangement			Fair Value Measurements	Fair Value Measurements	Fair Value Measurements	Fair Value Measurements	Fair Value Measurements	Fair Value Measurements
			Quoted prices in active Markets for identical assets		significant Market Observable inputs		significant Unobservable inputs
	31	December 2011		(Level 1)		(Level 2)		(Level 3)
		$ 5,982,000		$ –		$ 5,982,000		$ –
	31	December 2010 $ 4,293,000		Fair Value Measurements
			Quoted prices in active Markets for identical assets (Level 1) $ –		significant Market Observable inputs (Level 2) $ 4,293,000		significant Unobservable inputs (Level 3)
							$ –

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NOTES TO FINANCIAL STATEMENTS

31 December 2011 and 2010

See Note B for discussions relating to securities purchased under resale arrangement. In all other cases, the carrying amounts of the Institute’s assets, liabilities, and uncommitted balances are considered to approximate fair values for all significant financial instruments.

NOTE E—PROPERTY, 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:

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			property, Furniture, and Equipment	property, Furniture, and Equipment	property, Furniture, and Equipment
	One-time Establishment cost		Furniture Equipment		Leased property		grand total
		$ 3,598,000	$ 74,000	$ 156,000	$ 269,000		$ 4,097,000
		–	–	111,000	–		111,000
		(110,000)	–	–	–		(110,000)
		216,000	4,000	9,000	17,000		246,000
		3,704,000	78,000	276,000	286,000		4,344,000
		3,598,000	74,000	49,000	269,000		3,990,000
		–	–	66,000	–		66,000
		(110,000)	–	–	–		(110,000)
		216,000	4,000	6,000	17,000		243,000
		3,704,000	78,000	121,000	286,000		4,189,000
		$ –	$ –	$ 155,000	$ –		$ 155,000

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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			property, Furniture, and Equipment	property, Furniture, and Equipment	property, Furniture, and Equipment
	One-time Establishment cost		Furniture Equipment		Leased property		grand total
		$ 3,176,000 – (3,000) 425,000 3,598,000 3,176,000 – (3,000) 425,000 3,598,000 $ –	$ 65,000 – – 9,000 74,000 65,000 – – 9,000 74,000 $ –	$ 137,000 – – 19,000 156,000 9,000 36,000 – 4,000 49,000 $ 107,000	$ 238,000 – – 31,000 269,000 190,000 50,000 – 29,000 269,000 $ –		$ 3,616,000 – (3,000) 484,000 4,097,000 3,440,000 86,000 (3,000) 467,000 3,990,000 $ 107,000

Total depreciation expense incurred for the year ended 31 December 2011 amounted to $66,000 ($86,000 – 2010).

NOTE F—LONG-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 G—ASSET REINSTATEMENT OBLIGATIONS

The Institute has recorded the estimated asset reinstatement obligations related to leased office space.

NOTE H—CONTRIBUTIONS

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.

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NOTES TO FINANCIAL STATEMENTS

31 December 2011 and 2010

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 I—REVENUE 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 arm’s length.

NOTE J—LEASES

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 K—DUE 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.

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NOTE L—STAFF 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 Institute’s 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 Institute’s 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 Plan’s 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 Plan’s package of desired investment return, and tolerance for risk, taking into account the nature and duration of the Plan’s liabilities. The Plan’s 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 Plan’s investment policy is periodically reviewed and revised to reflect the best interest of the Plan’s 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 Plan’s 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 Plan’s long-term asset-mix is 40% US equity, 30% non-US equity, and 30% global fixed income.

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NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010

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 Plan’s 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 Plan’s 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:

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 Employer’s 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		pension Benefits 2011 2010 $ 8,434,000 $ 6,473,000 256,000 200,000 470,000 388,000 109,000 108,000 692,000 1,493,000 (325,000) (228,000) $ 9,636,000 $ 8,434,000 $ 3,480,000 $ 2,949,000 (30,000) 358,000 306,000 293,000 109,000 108,000 (325,000) (228,000) $ 3,540,000 $ 3,480,000 $(6,096,000) $(4,954,000) $ – $ – (6,096,000) (4,954,000) $(6,096,000) $(4,954,000)	pension Benefits 2011 2010 $ 8,434,000 $ 6,473,000 256,000 200,000 470,000 388,000 109,000 108,000 692,000 1,493,000 (325,000) (228,000) $ 9,636,000 $ 8,434,000 $ 3,480,000 $ 2,949,000 (30,000) 358,000 306,000 293,000 109,000 108,000 (325,000) (228,000) $ 3,540,000 $ 3,480,000 $(6,096,000) $(4,954,000) $ – $ – (6,096,000) (4,954,000) $(6,096,000) $(4,954,000)		postretirement Medical Benefits	postretirement Medical Benefits	postretirement Medical Benefits
		2011 $ 8,434,000 256,000 470,000 109,000 692,000 (325,000) $ 9,636,000 $ 3,480,000 (30,000) 306,000 109,000 (325,000) $ 3,540,000 $(6,096,000) $ – (6,096,000) $(6,096,000)			2011 $ 413,000 119,000 29,000 – (77,000) (26,000) $ 458,000 $ – – 26,000 – (26,000) $ – $(458,000) $ (5,000) (453,000) $(458,000)		2010
							$ 148,000 33,000 11,000 – 250,000 (29,000) $ 413,000 $ – – 29,000 – (29,000) $ – $(413,000) $ – (413,000) $(413,000)

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Amounts recognized in the Unrestricted net assets consist of: Net actuarial loss (gain) Prior service cost (credit) Net 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		pension Benefits 2011 2010 $ 3,722,000 $ 3,072,000 – – $ 3,722,000 $ 3,072,000 5.05% 5.50% 7.50% 8.00% 3.25% 4.50%	pension Benefits 2011 2010 $ 3,722,000 $ 3,072,000 – – $ 3,722,000 $ 3,072,000 5.05% 5.50% 7.50% 8.00% 3.25% 4.50%		postretirement Medical Benefits	postretirement Medical Benefits	postretirement Medical Benefits
		2011 $ 3,722,000 – $ 3,722,000 5.05% 7.50% 3.25%			2011 $(100,000) – $(100,000) 5.05% N/A 3.25%		2010
							$ (23,000) – $ (23,000) 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.

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		pension Benefits 2011 2010 $ 256,000 $ 200,000 470,000 388,000 (264,000) (212,000) 0 5,000 336,000 192,000 $ 798,000 $ 573,000	pension Benefits 2011 2010 $ 256,000 $ 200,000 470,000 388,000 (264,000) (212,000) 0 5,000 336,000 192,000 $ 798,000 $ 573,000		postretirement Medical	postretirement Medical	Benefits
		2011 $ 256,000 470,000 (264,000) 0 336,000 $ 798,000			2011 $ 119,000 29,000 – – – $ 148,000		2010
							$ 33,000 11,000 – – (27,000) $ 17,000

0 = Less than $500.

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:

Effect on total service and interest cost components Effect on postretirement benefit obligation	1-percentage-point increase $35,000 99,000	1-percentage- point Decrease
		$(26,000) (80,000)

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NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010

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:

2012 2013 2014 2015 2016 2017–2021	pension Benefits $ 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:

assets Corporate equity securities Government or government-guaranteed securities Corporate debt securities Asset/Mortgage-backed securities Temporary investments and time deposits Interest rate swaps Futures—net Foreign exchange contracts—net total assets at fair value			Fair Value Measurements	Fair Value Measurements	Fair Value Measurements	Fair Value Measurements	Fair Value Measurements	Fair Value Measurements
			Quoted prices in active Markets for identical assets		significant Market Observable inputs		significant Unobservable inputs
	31	December 2011		(Level 1)		(Level 2)		(Level 3)
		$ 2,320,000		$ 2,320,000		$ –		$ 0
		490,000		465,000		12,000		13,000
		405,000		330,000		59,000		16,000
		163,000		109,000		36,000		18,000
		90,000		70,000		20,000		–
		0		–		–		0
		0		0		–		–
		11,000		–		11,000		–
		$ 3,479,000		$ 3,294,000		$ 138,000		$ 47,000

0 = Less than $500.

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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 contracts—net	31	December 2010 $ 2,375,000 366,000 282,000 488,000 107,000 $ 3,618,000 $ 0	Fair Value Measurements	Fair Value Measurements	Fair Value Measurements	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 $ 0	significant Unobservable inputs (Level 3)
						$ – – – – – $ – $ –

0 = Less than $500.

The table below provides the details of all inter-level transfers for the year ended 31 December 2011:

		Level 1		Level 2
Investments
Government or government-guaranteed obligations
Transfers into (out of)	$ 31,000		$ (31,000)
Corporate obligations
Transfers into (out of)		99,000		(99,000)
Asset/Mortgage-backed securities
Transfers into (out of)		32,000		(32,000)
	$162,000		$(162,000)

Government or government-guaranteed obligations, corporate debt securities, and asset/ mortgage-backed securities totaling $162,000 were transferred from Level 2 to 1.

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NOTES TO FINANCIAL STATEMENTS

31 December 2011 and 2010

Assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

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	corporate equity securities $ – 0 0 – – – $ 0 $ 0	government or government- guaranteed obligations $ – 1,000 2,000 – – 10,000 $13,000 $ 1,000	corporate debt securities $ – (1,000) 17,000 – – – $16,000 $ (1,000)	asset/ Mortgage- backed securities $ – 0 10,000 – – 8,000 $18,000 $ 0		interest rate swap
						$ – 0 – – – – $ 0 $ 0

0 = Less than $500.

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 ADB’s valuation approach.

NOTE M—SUBSEQUENT 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.

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MANAGEMENT’S 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. ADB’s 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.

ADB’s 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 ADB’s 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.

ADB’s management assessed the effectiveness of ADB’s internal control over financial reporting as of 31 December 2011. In making this assessment, ADB’s 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, ADB’s internal control over financial reporting is effective based upon the criteria established in Internal Control – Integrated Framework .

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Haruhiko Kuroda
President
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Thierry de Longuemar Vice-President (Finance and Administration)

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Hiroshi Fukukawa Officer-in-Charge, Controller’s Department

14 March 2012

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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 management’s assertion, included in the accompanying Management’s 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. ADB’s 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 Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on management’s 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.

ADB’s 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. ADB’s 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 ADB’s 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).

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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, management’s 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.

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Public Accountants and Certified Public Accountants

Singapore March 14, 2012

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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 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 ADB’s 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, management’s 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 management’s assertion that ADB maintained effective internal control over financial reporting.

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Public Accountants and Certified Public Accountants

Singapore March 14, 2012

Deloitte Touche LLP (Unique Entity No. T08LL0721A) is an accounting limited liability partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A).

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STATEMENT OF FINANCIAL POSITION

31 December 2011 and 2010

Expressed in thousands of United states Dollars

STATEMENT OF FINANCIAL POSITION 31 December 2011 and 2010 Expressed in thousands of United states Dollars
assEts DUE FROM BANKS INVESTMENTS (Notes C and G) Time deposits ADVANCES FOR GRANTS		2011 $ 275 6,600 –		2010 $ 295 19,042 5,546
tOtaL		$6,875		$24,883
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		$ 14 – 14 6,861		$ 232 22,021 22,253 2,630
tOtaL		$6,875		$24,883

The accompanying notes are an integral part of these financial statements (ATF-4).

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STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS

For the Years Ended 31 December 2011 and 2010

Expressed in thousands of United states Dollars

STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars
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—net INCREASE (DECREASE) IN NET ASSETS NET ASSETS AT BEGINNING OF YEAR		2011 $ 3 2 5 (4,644) 362 0 (4,282) 4,287 (56) 4,231 2,630		2010 $ 144 4 148 – 1,909 1 1,910 (1,762) (139) (1,901) 4,531
nEt assEts at EnD OF yEaR		$6,861		$2,630

0 = Less than $500.

The accompanying notes are an integral part of these financial statements (ATF-4).

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STATEMENT OF CASH FLOWS

For the Years Ended 31 December 2011 and 2010

Expressed in thousands of United states Dollars

STATEMENT OF CASH FLOWS For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars
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 gains—net Net Cash Used in Operating Activities		2011 $ 3 (11,886) (581) 2 (12,462) 164,817 (152,375) 12,442 (20) 295 $ 275 $ 4,231 0 5,546 (218) (22,021) – $ (12,462)		2010
				$ 146 (76,948) (2,211) 4 (79,009) 9,635,673 (9,556,818) 78,855 (154) 449 $ 295 $ (1,901) 2 18,019 (365) (94,763) (1) $ (79,009)

0 = Less than $500.

The accompanying notes are an integral part of these financial statements (ATF-4).

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NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010

asian DEVELOpMEnt BanK—asian tsUnaMi FUnD

NOTE A—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, ADB’s corporate vision and mission has been to help DMCs reduce poverty in the region. This was reaffirmed under the long-term strategic framework for 2008–2020 (Strategy 2020). Under Strategy 2020, ADB’s 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.

ATF’s 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.

1 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).

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cOntinUED

NOTE B—SUMMARY 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.”

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NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010

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 ATF’s 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 ATF’s 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 C—INVESTMENTS

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 D—RELATED 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

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atF-4

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 ADB’s 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 E—UNDISBURSED 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 F—CONTRIBUTIONS 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 ADB’s 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 G—FAIR 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 entity’s 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

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NOTES TO FINANCIAL STATEMENTS

31 December 2011 and 2010

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:

assets Investments Time deposits assets Investments Time deposits			Fair Value Measurements	Fair Value Measurements	Fair Value Measurements	Fair Value Measurements
			Quoted prices in active Markets for identical assets		significant Market Observable inputs			significant Unobservable inputs
	31	December 2011		(Level 1)		(Level 2)		(Level 3)
		$ 6,600,000		$ –		$ 6,600,000		$ –
	31	December 2010 $19,042,000		Fair Value Measurements
			Quoted prices in active Markets for identical assets (Level 1) $ –		significant Market Observable inputs (Level 2) $19,042,000			significant Unobservable inputs (Level 3)
								$ –

See Notes C and E for discussions relating to investments and undisbursed commitments, respectively. In all other cases, the carrying amounts of the ATF’s assets, liabilities, and uncommitted balances are considered to approximate fair values for all significant financial instruments.

NOTE H—SUBSEQUENT 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 ATF’s Financial Statements as of 31 December 2011.

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paKistan eartHQuaKe Fund

MANAGEMENT’S 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. ADB’s 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.

ADB’s 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 ADB’s 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.

ADB’s management assessed the effectiveness of ADB’s internal control over financial reporting as of 31 December 2011. In making this assessment, ADB’s 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, ADB’s internal control over financial reporting is effective based upon the criteria established in Internal Control – Integrated Framework .

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Haruhiko Kuroda
President
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Thierry de Longuemar Vice-President (Finance and Administration)

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Hiroshi Fukukawa Officer-in-Charge, Controller’s Department

14 March 2012

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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 management’s assertion, included in the accompanying Management’s 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. ADB’s 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 Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on management’s 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.

ADB’s 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. ADB’s 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 ADB’s 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).

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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, management’s 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.

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Public Accountants and Certified Public Accountants

Singapore March 14, 2012

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Asian Development Bank Annual Report 2011

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 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 ADB’s 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, management’s 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 management’s assertion that ADB maintained effective internal control over financial reporting.

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Public Accountants and Certified Public Accountants

Singapore March 14, 2012

Deloitte Touche LLP (Unique Entity No. T08LL0721A) is an accounting limited liability partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A).

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pEF-1

asian DEVELOpMEnt BanK—paKistan EaRthQUaKE FUnD

STATEMENT OF FINANCIAL POSITION 31 December 2011 and 2010

Expressed in thousands of United states Dollars

STATEMENT OF FINANCIAL POSITION 31 December 2011 and 2010 Expressed in thousands of United states Dollars
assEts DUE FROM BANKS INVESTMENTS (Notes C and G) Time deposits ACCRUED REVENUE ADVANCES FOR GRANTS		2011 $ 575 20,791 4 2,964		2010 $ 470 30,322 57 7,130
tOtaL		$24,334		$37,979
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		$ 57 19,724 19,781 4,553		$ 61 33,980 34,041 3,938
tOtaL		$24,334		$37,979

The accompanying notes are an integral part of these financial statements (PEF-4).

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pEF-2

asian DEVELOpMEnt BanK—paKistan EaRthQUaKE FUnD

STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS

For the Years Ended 31 December 2011 and 2010

Expressed in thousands of United states Dollars

STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars
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 LOSSES—net INCREASE IN NET ASSETS NET ASSETS AT BEGINNING OF YEAR		2011 $1,029 142 1,171 (220) 295 75 1,096 (481) 615 3,938		2010 $1,254 132 1,386 – 323 323 1,063 (439) 624 3,314
nEt assEts at EnD OF yEaR		$4,553		$3,938

The accompanying notes are an integral part of these financial statements (PEF-4).

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pEF-3

asian DEVELOpMEnt BanK—paKistan EaRthQUaKE FUnD

STATEMENT OF CASH FLOWS

For the Years Ended 31 December 2011 and 2010

Expressed in thousands of United states Dollars

STATEMENT OF CASH FLOWS For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars
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 losses—net Net Cash Used in Operating Activities		2011 $ 1,081 142 (9,870) (299) (8,946) 678,596 (669,435) 9,161 (110) 105 470 $ 575 $ 615 51 4,166 (3) (14,256) 481 $ (8,946)		2010 $ 1,254 132 (19,589) (314) (18,517) 981,089 (962,608) 18,481 (45) (81) 551 $ 470 $ 624 (0) (4,123) 9 (15,466) 439 $ (18,517)

0 = Less than $500.

The accompanying notes are an integral part of these financial statements (PEF-4).

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NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010

NOTE A—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, ADB’s corporate vision and mission has been to help DMCs reduce poverty in the region. This was reaffirmed under the long-term strategic framework for 2008–2020 (Strategy 2020). Under Strategy 2020, ADB’s 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.

PEF’s 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 B—SUMMARY 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.

1 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).

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pEF-4

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.

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NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010

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 PEF’s 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 PEF’s 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 C—INVESTMENTS

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.

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pEF-4

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 D—RELATED 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 ADB’s 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 E—UNDISBURSED 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 F—UNCOMMITTED BALANCES

Uncommitted balances comprise amounts which have not been committed by ADB as of 31 December 2011 and 2010.

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NOTES TO FINANCIAL STATEMENTS

NOTE G—FAIR 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 entity’s 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:

assets Investments Time deposits assets Investments Time deposits			Fair Value Measurements	Fair Value Measurements	Fair Value Measurements	Fair Value Measurements
			Quoted prices in active Markets for identical assets		significant Market Observable inputs			significant Unobservable inputs
	31	December 2011		(Level 1)		(Level 2)		(Level 3)
		$20,791,000		$ –		$20,791,000		$ –
	31	December 2010 $30,322,000		Fair Value Measurements
			Quoted prices in active Markets for identical assets (Level 1) $ –		significant Market Observable inputs (Level 2) $30,322,000			significant Unobservable inputs (Level 3)
								$ –

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See Notes C and E for discussions relating to investments and undisbursed commitments, respectively. In all other cases, the carrying amount of PEF’s assets, liabilities, and uncommitted balances are considered to approximate fair values for all significant financial instruments.

NOTE H—SUBSEQUENT 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 PEF’s Financial Statements as of 31 December 2011.

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reGiOnal cOOperatiOn and inteGratiOn Fund

MANAGEMENT’S 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. ADB’s 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.

ADB’s 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 ADB’s 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.

ADB’s management assessed the effectiveness of ADB’s internal control over financial reporting as of 31 December 2011. In making this assessment, ADB’s 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, ADB’s internal control over financial reporting is effective based upon the criteria established in Internal Control – Integrated Framework .

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==> picture [214 x 167] intentionally omitted <==

----- Start of picture text -----

Haruhiko Kuroda
President
Thierry de Longuemar
Vice-President (Finance and Administration)
Hiroshi Fukukawa
Officer-in-Charge, Controller’s Department
----- End of picture text -----

14 March 2012

204

Regional Cooperation and Integration Fund

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 management’s assertion, included in the accompanying Management’s 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. ADB’s 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 Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on management’s 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.

ADB’s 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. ADB’s 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 ADB’s 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).

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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, management’s 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.

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Public Accountants and Certified Public Accountants

Singapore March 14, 2012

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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 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 ADB’s 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, management’s 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 management’s assertion that ADB maintained effective internal control over financial reporting.

==> picture [181 x 29] intentionally omitted <==

Public Accountants and Certified Public Accountants

Singapore March 14, 2012

Deloitte Touche LLP (Unique Entity No. T08LL0721A) is an accounting limited liability partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A).

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RciF-1

asian DEVELOpMEnt BanK—REgiOnaL cOOpERatiOn anD intEgRatiOn FUnD

STATEMENT OF FINANCIAL POSITION

31 December 2011 and 2010

Expressed in thousands of United states Dollars

STATEMENT OF FINANCIAL POSITION 31 December 2011 and 2010 Expressed in thousands of United states Dollars
assEts DUE FROM BANKS INVESTMENTS (Notes C and G) Time deposits ACCRUED REVENUE ADVANCES FOR GRANTS AND OTHER ASSETS (Note D)	2011 $ 179 26,083 1 1,946		2010 $ 137 37,421 3 2,268
tOtaL	$28,209		$39,829
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	$ 84 23,982 24,066 4,143		$ 55 29,392 29,447 10,382
tOtaL	$28,209		$39,829

The accompanying notes are an integral part of these financial statements (RCIF-4).

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RciF-2

asian DEVELOpMEnt BanK—REgiOnaL cOOpERatiOn anD intEgRatiOn FUnD

STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS

For the Years Ended 31 December 2011 and 2010

Expressed in thousands of United states Dollars

STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars
changEs in UnREstRictED nEt assEts CONTRIBUTIONS (Note F) REVENUE From investments (Note C) From other sources—net Total EXPENSES Technical assistance (Note E) Administrative expenses (Note D) Total CONTRIBUTIONS AND REVENUE LESS THAN EXPENSES EXCHANGE (LOSSES) GAINS—net DECREASE IN NET ASSETS NET ASSETS AT BEGINNING OF YEAR		2011 $ – 60 0 60 5,725 571 6,296 (6,236) (3) (6,239) 10,382		2010 $10,000 129 1 10,130 11,991 301 12,292 (2,162) 7 (2,155) 12,537
nEt assEts at EnD OF yEaR		$ 4,143		$10,382

0 = Less than $500.

The accompanying notes are an integral part of these financial statements (RCIF-4).

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STATEMENT OF CASH FLOWS

For the Years Ended 31 December 2011 and 2010

Expressed in thousands of United states Dollars

STATEMENT OF CASH FLOWS For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars
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		2011 $ – 63 (10,811) (548) 0 (11,296) 936,673 (925,335) 11,338 42 137 $ 179 $ (6,239) 2 0 44 29 275 (5,410) – 3 $ (11,296)		2010 $ 10,000 166 (7,401) (305) 1 2,461 527,595 (530,189) (2,594) (133) 270 $ 137 $ (2,155) 8 – (47) (4) (1,607) 6,244 29 (7) $ 2,461

0 = Less than $500.

The accompanying notes are an integral part of these financial statements (RCIF-4).

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NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010

NOTE A—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, ADB’s corporate vision and mission has been to help DMCs reduce poverty in the region. This was reaffirmed under the long-term strategic framework for 2008–2020 (Strategy 2020). Under Strategy 2020, ADB’s 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 ADB’s 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.

RCIF’s 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 B—SUMMARY 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.

1 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).

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NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010

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.

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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 RCIF’s 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 RCIF’s 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 C—INVESTMENTS

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 D—RELATED 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 ADB’s 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.

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NOTES TO FINANCIAL STATEMENTS

31 December 2011 and 2010

The interfund account balances included in “ADVANCES FOR GRANTS AND OTHER ASSETS” and “ACCOUNTS PAYABLE AND OTHER LIABILITIES” are as follows:

Receivable from: Technical Assistance Special Fund Japan Special Fund Total payable to: Ordinary capital resources Technical Assistance Special Fund Total		2011 $48,000 – $48,000 $76,000 – $76,000		2010 $ – 94,000 $94,000 $44,000 5,000 $49,000

NOTE E—UNDISBURSED 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 F—CONTRIBUTIONS 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 G—FAIR 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 entity’s 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.

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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:

assets Investments Time deposits assets Investments Time deposits			Fair Value Measurements	Fair Value Measurements	Fair Value Measurements	Fair Value Measurements	Fair Value Measurements
			Quoted prices in active Markets for identical assets		significant Market Observable inputs			significant Unobservable inputs
	31	December 2011		(Level 1)		(Level 2)		(Level 3)
		$26,083,000		$ –		$26,083,000		$ –
	31	December 2010 $37,421,000		Fair Value Measurements
			Quoted prices in active Markets for identical assets (Level 1) $ –		significant Market Observable inputs (Level 2) $37,421,000			significant Unobservable inputs (Level 3)
								$ –

See Notes C and E for discussions relating to investments and undisbursed commitments, respectively. In all other cases, the carrying amount of RCIF’s assets, liabilities, and uncommitted balances are considered to approximate fair values for all significant financial instruments.

NOTE H—SUBSEQUENT 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 RCIF’s Financial Statements as of 31 December 2011.

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cliMate cHanGe Fund

MANAGEMENT’S 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. ADB’s 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.

ADB’s 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 ADB’s 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.

ADB’s management assessed the effectiveness of ADB’s internal control over financial reporting as of 31 December 2011. In making this assessment, ADB’s 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, ADB’s internal control over financial reporting is effective based upon the criteria established in Internal Control – Integrated Framework .

==> picture [133 x 31] intentionally omitted <==

==> picture [214 x 167] intentionally omitted <==

----- Start of picture text -----

Haruhiko Kuroda
President
Thierry de Longuemar
Vice-President (Finance and Administration)
Hiroshi Fukukawa
Officer-in-Charge, Controller’s Department
----- End of picture text -----

14 March 2012

216

Climate Change Fund

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 management’s assertion, included in the accompanying Management’s 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. ADB’s 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 Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on management’s 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.

ADB’s 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. ADB’s 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 ADB’s 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).

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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, management’s 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.

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Public Accountants and Certified Public Accountants

Singapore March 14, 2012

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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 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 ADB’s 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, management’s 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 management’s assertion that ADB maintained effective internal control over financial reporting.

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Public Accountants and Certified Public Accountants

Singapore March 14, 2012

Deloitte Touche LLP (Unique Entity No. T08LL0721A) is an accounting limited liability partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A).

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STATEMENT OF FINANCIAL POSITION

31 December 2011 and 2010

Expressed in thousands of United states Dollars

STATEMENT OF FINANCIAL POSITION 31 December 2011 and 2010 Expressed in thousands of United states Dollars
assEts DUE FROM BANKS INVESTMENTS (Notes C and G) Time deposits ACCRUED REVENUE ADVANCES FOR GRANTS AND OTHER ASSETS (Note D)		2011 $ 164 37,724 2 1,327		2010 $ 175 43,445 3 1,150
tOtaL		$39,217		$44,773
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		$ 14 24,961 24,975 14,242		$ 59 25,578 25,637 19,136
tOtaL		$39,217		$44,773

The accompanying notes are an integral part of these financial statements (CCF-4).

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STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS

For the Years Ended 31 December 2011 and 2010

Expressed in thousands of United states Dollars

STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars
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 LOSSES—net DECREASE IN NET ASSETS NET ASSETS AT BEGINNING OF YEAR		2011 $ – 77 0 77 4,603 367 4,970 (4,893) (1) (4,894) 19,136		2010 $10,000 149 1 10,150 17,200 515 17,715 (7,565) (1) (7,566) 26,702
nEt assEts at EnD OF yEaR		$14,242		$19,136

0 = Less than $500. The accompanying notes are an integral part of these financial statements (CCF-4).

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STATEMENT OF CASH FLOWS

For the Years Ended 31 December 2011 and 2010

Expressed in thousands of United states Dollars

STATEMENT OF CASH FLOWS For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars
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		2011 $ – 79 (5,400) (412) 0 (5,733) 1,205,923 (1,200,201) 5,722 (11) 175 $ 164 $ (4,894) 1 (23) (45) (156) (617) – 1 $ (5,733)		2010 $ 10,000 194 (5,422) (558) 0 4,214 745,204 (749,452) (4,248) (34) 209 $ 175 $ (7,566) 9 0 (43) (810) 12,589 35 (0) $ 4,214

0 = Less than $500.

The accompanying notes are an integral part of these financial statements (CCF-4).

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NOTES TO FINANCIAL STATEMENTS

31 December 2011 and 2010

NOTE A—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, ADB’s corporate vision and mission has been to help DMCs reduce poverty in the region. This was reaffirmed under the long-term strategic framework for 2008–2020 (Strategy 2020). Under Strategy 2020, ADB’s 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 ADB’s 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.

CCF’s 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 B—SUMMARY 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.

1 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).

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NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010

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

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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 CCF’s 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 CCF’s 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 C—INVESTMENTS

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 D—RELATED 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 ADB’s 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.

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NOTES TO FINANCIAL STATEMENTS

31 December 2011 and 2010

The interfund account balances included in “ADVANCES FOR GRANTS AND OTHER ASSETS” and “ACCOUNTS PAYABLE AND OTHER LIABILITIES” are as follows:

Receivable from: Technical Assistance Special Fund Japan Special Fund Total payable to: Ordinary capital resources		2011 $11,000 13,000 $24,000 $ 8,000		2010 $ – – $ – $53,000

NOTE E—UNDISBURSED 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 F—CONTRIBUTIONS 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 G—FAIR 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 entity’s 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

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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:

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----- Start of picture text -----

Fair Value Measurements
Quoted prices significant significant
in active Markets Market Observable Unobservable
for identical assets inputs inputs
31 December 2011 (Level 1) (Level 2) (Level 3)
assets
Investments
Time deposits $37,724,000 $ – $37,724,000 $ –
Fair Value Measurements
Quoted prices significant significant
in active Markets Market Observable Unobservable
for identical assets inputs inputs
31 December 2010 (Level 1) (Level 2) (Level 3)
assets
Investments
Time deposits $43,445,000 $ – $43,445,000 $ –
----- End of picture text -----

See Notes C and E for discussions relating to investments and undisbursed commitments, respectively. In all other cases, the carrying amount of CCF’s assets, liabilities, and uncommitted balances are considered to approximate fair values for all significant financial instruments.

NOTE H—SUBSEQUENT 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 CCF’s Financial Statements as of 31 December 2011.

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MANAGEMENT’S 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. ADB’s 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.

ADB’s 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 ADB’s 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.

ADB’s management assessed the effectiveness of ADB’s internal control over financial reporting as of 31 December 2011. In making this assessment, ADB’s 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, ADB’s internal control over financial reporting is effective based upon the criteria established in Internal Control – Integrated Framework .

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----- Start of picture text -----

Haruhiko Kuroda
President
Thierry de Longuemar
Vice-President (Finance and Administration)
Hiroshi Fukukawa
Officer-in-Charge, Controller’s Department
----- End of picture text -----

14 March 2012

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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 management’s assertion, included in the accompanying Management’s 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. ADB’s 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 Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on management’s 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.

ADB’s 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. ADB’s 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 ADB’s 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).

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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, management’s 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.

==> picture [182 x 29] intentionally omitted <==

Public Accountants and Certified Public Accountants

Singapore March 14, 2012

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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 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 ADB’s 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, management’s 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 management’s assertion that ADB maintained effective internal control over financial reporting.

==> picture [181 x 30] intentionally omitted <==

Public Accountants and Certified Public Accountants

Singapore March 14, 2012

Deloitte Touche LLP (Unique Entity No. T08LL0721A) is an accounting limited liability partnership registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A).

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asian DEVELOpMEnt BanK—asia paciFic DisastER REspOnsE FUnD

STATEMENT OF FINANCIAL POSITION

31 December 2011 and 2010

Expressed in thousands of United states Dollars

STATEMENT OF FINANCIAL POSITION 31 December 2011 and 2010 Expressed in thousands of United states Dollars
assEts DUE FROM BANKS INVESTMENTS (Notes C and G) Time deposits ACCRUED REVENUE ADVANCES FOR GRANTS		2011 $ 4,349 11,162 0 17,862		2010 $ 7,411 20,128 2 6,002
tOtaL		$33,373		$33,543
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		$ 13 21,000 21,013 12,360		$ 63 6,000 6,063 27,480
tOtaL		$33,373		$33,543

0 = Less than $500.

The accompanying notes are an integral part of these financial statements (APDRF-4).

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STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS

For the Years Ended 31 December 2011 and 2010

Expressed in thousands of United states Dollars

STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars
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) GAINS—net DECREASE IN NET ASSETS NET ASSETS AT BEGINNING OF YEAR		2011 $ 33 1 34 15,000 13 0 15,013 (14,979) (141) (15,120) 27,480		2010 $ 66 2 68 5,499 143 0 5,642 (5,574) 2 (5,572) 33,052
nEt assEts at EnD OF yEaR		$ 12,360		$27,480

0 = Less than $500. The accompanying notes are an integral part of these financial statements (APDRF-4).

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STATEMENT OF CASH FLOWS

For the Years Ended 31 December 2011 and 2010

Expressed in thousands of United states Dollars

STATEMENT OF CASH FLOWS For the Years Ended 31 December 2011 and 2010 Expressed in thousands of United states Dollars
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		2011 $ 34 1 (12,000) (63) (12,028) 1,393,039 (1,384,073) 8,966 (3,062) 7,411 $ 4,349 $ (15,120) 1 (12,000) (50) 0 15,000 141 $ (12,028)		2010 $ 65 2 (5,499) (93) (5,525) 1,526,446 (1,517,011) 9,435 3,910 3,501 $ 7,411 $ (5,572) (1) 1,003 56 (6) (1,000) (5) $ (5,525)

0 = Less than $500.

The accompanying notes are an integral part of these financial statements (APDRF-4).

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asian DEVELOpMEnt BanK—asia paciFic DisastER REspOnsE FUnD

NOTES TO FINANCIAL STATEMENTS

31 December 2011 and 2010

NOTE A—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, ADB’s corporate vision and mission has been to help DMCs reduce poverty in the region. This was reaffirmed under the long-term strategic framework for 2008–2020 (Strategy 2020). Under Strategy 2020, ADB’s 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.

APDRF’s 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 B—SUMMARY 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.

1 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).

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asian DEVELOpMEnt BanK—asia paciFic DisastER REspOnsE FUnD

NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010

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

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apDRF-4

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 APDRF’s 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 APDRF’s 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 C—INVESTMENTS

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 D—RELATED 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

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NOTES TO FINANCIAL STATEMENTS 31 December 2011 and 2010

be combined activities financed by special and trust funds. ADB charges a service fee to cover ADB’s 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 E—UNDISBURSED 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 F—CONTRIBUTIONS 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 G—FAIR 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 entity’s 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.

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The fair value of the following financial assets of APDRF as of 31 December 2011 and 2010 were reported based on the following:

assets Investments Time deposits assets Investments Time deposits			Fair Value Measurements	Fair Value Measurements	Fair Value Measurements	Fair Value Measurements	Fair Value Measurements
	31 December 2011		Quoted prices in active Markets for identical assets (Level 1)		significant Market Observable inputs (Level 2)			significant Unobservable inputs (Level 3)
		$11,162,000		$ –		$11,162,000		$ –
	31 December 2010 $20,128,000			Fair Value Measurements
			Quoted prices in active Markets for identical assets (Level 1) $ –		significant Market Observable inputs (Level 2) $20,128,000			significant Unobservable inputs (Level 3)
								$ –

See Notes C and E for discussions relating to investments and undisbursed commitments, respectively. In all other cases, the carrying amount of APDRF’s assets, liabilities and uncommitted balances are considered to approximate fair values for all significant financial instruments.

NOTE H—SUBSEQUENT 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 APDRF’s Financial Statements as of 31 December 2011.

239

Statistical Annexes

• 1 approvals by country

• 2 Loan approvals by sector

• 3a sectoral Distribution of Loans

• 3b sectoral Distribution of grants

• 4a projects involving Official cofinancing

• 4b projects involving commercial cofinancing

• 5a Loan Disbursements

• 5b grant Disbursements

• 6a policy-Based Loan Disbursements

• 6b policy-Based grant Disbursements

• 6c trends in policy-Based Lending and aDF grant

• 7 nonsovereign approvals and total project costs by country

• 8 nonsovereign approvals and total project costs by sector

• 9 nonsovereign approvals by year

• 10 nonsovereign approvals by country

• 11 number of Loans/grants Under administration, and closed in 2011

• 12 amount of Loans Made Effective, contracts awarded, and Disbursements

• 13 amount of grants Made Effective, contracts awarded, and Disbursements

• 14 number of projects Under administration, projects at Risk, completed, and pcRs/xaRRs/ppERs circulated

• 15 technical assistance grant approvals by country and Regional activities

• 16 technical assistance grant approvals

• 17 technical assistance grants by sector

• 18 net transfer of Resources (Ordinary capital Resources, asian Development Fund, and Other special Funds grants) 2009–2011

• 19 net transfer of Resources (Ordinary capital Resources, asian Development Fund, and Other special Funds grants)

• 20 asian Development Fund Resources and commitment authority

• 21 technical assistance special Fund

• 22 Japan special Fund—Regular and supplementary contributions

• 23 Japan special Fund—asian currency crisis support Facility

• 24 projects with aDB-administered grant cofinancing 25a contracts awarded by country of Origin, project Loans—Ordinary capital Resources

• 25b contracts awarded by nationality of contractor, project Loans—Ordinary capital Resources

• 26a contracts awarded by country of Origin, project Loans—asian Development Fund

• 26b contracts awarded by nationality of contractor, project Loans—asian Development Fund

• 27a contracts awarded by country of Origin, project Loans—Ordinary capital Resources and asian Development Fund combined

• 27b contracts awarded by nationality of contractor, project Loans—Ordinary capital Resources and asian Development Fund combined

• 28a Estimates of payment to supplying countries for Foreign procurement Under program Lending (by country of Origin)

• 28b Estimates of payment to supplying countries for Foreign procurement Under program Lending (by nationality of contractor)

• 29 cumulative contracts awarded/by country of Origin (technical assistance Operations)

• 30 contracts awarded by nationality of consultant, 2009–2011 (technical assistance Operations)

• 31 contracts awarded by nationality of consultant, 2009–2011 (grant Operations—aDB-administered consulting services)

• 32 contracts awarded by nationality of contractors, 2009–2011 (grant Operations—Executing agency-administered goods, works, and consulting services)

==> picture [612 x 34] intentionally omitted <==

Statistical Annexes

Statistical Annex 1

APPROVALS BY COUNTRY,[a] 2011 ($ million)

Statistical Annex 1 APPROVALS BY COUNTRY,a2011 ($ million)
country	OcR Loans guarantees Equity investments	aDB special Funds aDF Other special Funds Loans grants tasF grants ta grants		cofinancing project ta total
			grants ta grants
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, People’s 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 People’s Democratic Republic Malaysia Myanmar Philippines Thailand Viet Nam Regional	2,897.24 266.61 – – – – 65.00 – – 500.00 – – 140.00 – – 207.00 – – – – – 940.24 66.61 – – – – 125.00 – – 920.00 200.00 – 3,552.24 150.00 20.00 480.00 – – – – – 2,872.94 150.00 20.00 – – – – – – 199.30 – – 1,439.84 – 25.00 1,439.84 – 25.00 – – – 169.70 – 9.00 4.70 – – – – – – – – – – – – – – – – – – – – 165.00 – 9.00 – – – – – – – – – – – – – – – – – – 2,591.59 – – – – – – – – 580.00 – – 448.20 – – – – – – – – 362.00 – – 170.00 – – 1,031.39 – – – – 185.00	601.64 397.00 11.51 – 232.00 1.50 48.64 – 0.70 – – – 120.00 – – – – 0.57 55.00 – 0.45 320.00 – 4.00 – 165.00 1.05 – – – 58.00 – 3.25 706.17 116.00 19.92 450.00 – 5.75 19.87 – 1.20 – – 6.45 – – 1.13 154.00 116.00 3.16 82.30 – 2.24 65.00 – 18.78 – – 18.76 65.00 – 0.01 108.32 43.76 7.68 – – 0.50 – – – 7.56 – 0.80 – – 0.30 – – – – – 0.20 – – – 74.12 – 2.00 10.82 – – – 5.00 1.28 – 23.00 1.43 – 15.76 0.68 – – – 15.82 – 0.50 473.72 40.00 22.88 – – – 67.00 – 4.38 – – 0.23 41.92 40.00 2.26 – – 1.00 – – – – – 4.88 – – 1.55 364.80 – 8.60 – – 59.52	3.00 – – – – – – – – – – – – – 3.00 – – – – – – – 4.30 0.10 1.30 – – – – 0.10 – – – – 3.00 – – 1.35 – 1.35 – – 0.80 – 0.80 – – – – – – – – – – – – – – – – – – – – – – – – – – – 9.00 – – – 3.00 – – – – – – – – – 3.00 – 3.00 – – – – 6.30	1,976.95 5.08 6,159.02 65.40 1.50 300.40 – – 114.34 143.58 – 643.58 – 0.60 260.60 – – 207.57 – – 55.45 1,552.20 – 2,886.05 – 1.25 167.30 – – 125.00 215.77 1.73 1,398.74 1,862.07 29.63 6,460.44 1,351.82 3.61 2,292.48 5.00 1.50 27.57 65.00 12.25 3,126.73 – – 1.13 337.29 10.43 620.88 102.96 1.85 391.65 130.49 8.00 1,688.46 105.10 2.80 1,592.85 25.39 5.20 95.60 133.53 5.73 478.51 – – 6.00 – – – 13.95 1.63 23.94 – – 0.30 – 0.70 0.70 – – 0.20 – – – 49.00 1.40 300.52 – – 10.82 4.04 – 10.32 – – 24.43 22.94 0.50 39.88 – – – 43.60 1.50 61.42 3,375.19 74.73 6,587.10 – – – 18.90 9.10 102.38 219.79 9.33 809.34 – 5.30 537.68 – – 1.00 – – – 56.70 14.70 441.28 914.77 1.50 1,090.82 2,165.03 34.80 3,604.62 5.00 88.20 344.02
tOtaL	10,650.61 416.61 239.00	1,954.85 596.76 140.28	17.10 7.75	7,483.23 211.36 21,717.55

– = nil, ADF = Asian Development Fund, OCR = ordinary capital resources, TA = technical assistance, TASF = Technical Assistance Special Fund. a Including cofinancing.

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Statistical Annex 2

LOAN APPROVALS BY SECTOR, 2011

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

– = nil, ADF = Asian Development Fund, BAN = Bangladesh, IND = India, LAO = Lao People’s Democratic Republic, MON = Mongolia, NEP = Nepal, OCR = ordinary capital resources, PAK = Pakistan, PRC = People’s Republic of China, VIE = Viet Nam.

242

Statistical Annexes

CONTINUED

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

243

Asian Development Bank Annual Report 2011

CONTINUED

			$ Million	Date approved total
		OcR	aDF
IND Madhya Pradesh State Roads III IND Bangalore Metro Rail Transit System IND North Eastern State Roads Investment Program – Tranche 1 IND Railway Sector Investment Program – Tranche 1 INO Regional Roads Development KAZ CAREC Transport Corridor I (Zhambyl Oblast Section) [Western Europe–Western People’s Republic of China International Transit Corridor] Investment Program – Tranche 4 KAZ CAREC Corridor 1 (Taraz Bypass) KGZ CAREC Corridor 1 (Bishkek–Torugart Road) Project 3 MON Western Regional Road Corridor Investment Program – Tranche 1 PHI Road Improvement and Institutional Development PNG Bemobile Expansion PNG Bridge Replacement for Improved Rural Access Sector PNG Lae Port Development (Additional Financing) PRC Railway Energy Efficiency and Safety Enhancement Investment Program – Tranche 3 PRC Xi’an Urban Road Network Improvement SRI National Highways Sector (Additional Financing) TKM North–South Railway UZB CAREC Corridor 2 Road Investment Program – Tranche 2 UZB Second CAREC Corridor 2 Road Investment Program – Tranche 1 UZB CAREC Corridor 6 (Marakand–Karshi) Railway Electrification VAN Interisland Shipping Support VIE Ha Noi Metro Rail System (Line 3: Nhon–Ha Noi Station Section) VIE Transport Connections in Northern Mountainous Provinces Subtotal watER sUppLy anD OthER MUnicipaL inFRastRUctURE anD sERVicEs AZE Water Supply and Sanitation Investment Program – Tranche 2 BAN Khulna Water Supply GEO Urban Services Improvement Investment Program – Tranche 1 GEO Urban Services Improvement Investment Program – Tranche 2 IND Uttarakhand Urban Sector Development Investment Program – Tranche 2 IND Infrastructure Development Investment Program for Tourism – Tranche 2 IND North Eastern Region Capital Cities Development Investment Program – Tranche 2 KIR South Tarawa Sanitation Improvement Sector NEP Kathmandu Valley Water Supply Improvement PRC Municipal Water Distribution Infrastructure Development		300.0 250.0 74.8 150.0 180.0 112.0 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 – 3,256.5 300.0 – – – 100.0 43.8 72.0 – – 100.0	– – – – – – – 55.0 45.0 – – 50.0 4.1 – – – – – – – 10.8 – 80.0 345.6 – 75.0 80.0 40.0 – – – 7.6 80.0 –	300.0 10 Mar 250.0 31 Mar 74.8 22 Aug 150.0 18 Oct 180.0 24 Nov 112.0 21 Feb 95.0 7 Dec 55.0 7 Jun 45.0 22 Dec 62.0 15 Dec 40.0 25 Mar 90.0 28 Sep 89.1 10 Nov 250.0 20 Jul 150.0 8 Nov 85.0 5 Aug 125.0 15 Mar 240.0 31 Mar 130.0 2 Sep 100.0 28 Sep 10.8 30 Nov 293.0 29 Mar 80.0 30 Sep 3,602.1 300.0 22 Dec 75.0 14 Jun 80.0 12 Apr 40.0 23 Nov 100.0 3 Nov 43.8 15 Dec 72.0 16 Dec 7.6 17 Oct 80.0 16 Sep 100.0 25 Apr

– = 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 = People’s Republic of China, SRI = Sri Lanka, TKM = Turkmenistan, UZB = Uzbekistan, VAN = Vanuatu, VIE = Viet Nam.

244

Statistical Annexes

CONTINUED

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

– = nil, ADF = Asian Development Fund, BHU = Bhutan, IND = India, INO = Indonesia, OCR = ordinary capital resources, PAK = Pakistan, PNPM = Program Nasional Pemberdayaan Masyarakat, PRC = People’s Republic of China, SAM = Samoa, SRI = Sri Lanka, UZB = Uzbekistan, VAN = Vanuatu, VIE = Viet Nam.

245

Asian Development Bank Annual Report 2011

Statistical Annex 3a

SECTORAL DISTRIBUTION OF LOANS,[a] 2011, 1967–2011

SECTORAL DISTRIBUTION OF LOANS	,a2011, 1967–2011
sector		2011 Loans	total no. of projectsb $ Million	cumulative as of 2011 no. of projectsb $ Million %
	OcR no. of Loans $ Million	aDF no. of Loans $ Million
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	5 321.2 1 170.0 24 3,858.8 5 165.0 – – – – 2 500.0 23 3,256.5 7 758.1 8 1,621.0	7 523.0 4 370.0 3 82.9 1 15.0 1 20.0 – – 2 29.8 8 345.6 9 417.9 4 150.7	12 844.2 4 540.0 24 3,941.7 3 180.0 1 20.0 – – 4 529.8 29 3,602.1 15 1,176.0 12 1,771.7	531 20,468.4 11 150 6,718.8 4 381 36,899.1 21 271 20,517.7 11 69 3,852.9 2 107 4,588.0 3 88 14,510.1 8 440 44,725.3 25 259 15,236.8 8 127 12,186.5 7
tOtaLc	75 10,650.6	39 1,954.9	104 12,605.5	2,423 179,703.7 100

• = 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, 1967–2011

sector		2011	grants		cumulative as of 2011 no. of projectsb $ Million %
	aDF	Other special Funds	Other sources	total
	no. of grants $ Million	no. of grants $ Million	no. of grants $ Million	no. of projectsb $ Million
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	2 27.0 3 107.0 2 62.0 – 5.0 – – – – 3 60.0 3 318.7 2 17.1 – –	2 6.0 – – 1 1.3 – – 1 3.0 – – – – 1 0.8 – – 2 6.0	2 7.1 – – 5 62.4 1 2.0 3 42.2 1 1.9 – – 4 56.6 5 53.4 2 4.7	6 40.1 3 107.0 7 125.7 2 7.0 4 45.2 1 1.9 3 60.0 8 376.1 7 70.5 4 10.7	100 966.2 14 46 939.1 13 40 776.3 11 22 125.5 2 58 390.2 6 9 35.0 0.5 24 379.1 5 57 1,921.7 27 38 359.6 5 49 1,194.5 17
tOtaLc	16 596.8	7 17.1	23 230.3	45 844.1	443 7,087.1 100

• = 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)

Statistical Annex 4a PROJECTS INVOLVING OFFICIAL COFINANCING,a2011 ($ million)
project name aDB	Official cofinancing source of cofinancing grants Loans
cEntRaL anD wEst asia 232.00 DVA cofinancingb Non-DVA cofinancingc afghanistan Energy Sector Development Investment Program – Tranche 3 43.00 Transport Network Development Investment Program – Tranche 1 189.00 East asia 100.00 DVA cofinancing Non-DVA cofinancing china, people’s Republic of Forestry and Ecological Restoration in Three Northwest Provinces 100.00 paciFic 59.14 DVA cofinancing Non-DVA cofinancing Kiribati South Tarawa Sanitation Improvement Sector 7.56 papua new guinea Rural Primary Health Services Delivery 20.00 solomon islands Second Road Improvement (Sector) (Supplementary) tonga Nuku’alofa Urban Sector Development 6.06 Tonga–Fiji Submarine Cable 9.70 Vanuatu Interisland Shipping Support 10.82 Port Vila Urban Development 5.00 sOUth asia 1,131.30 DVA cofinancing Non-DVA cofinancing Bangladesh City Region Developmentd 120.00 Institutional Support for Migrant Workers’ Remittance Khulna Water Supply 75.00 Third Primary Education Development 320.00	65.40 – 65.40 – – – 12.40 Denmark 20.00 United Kingdom 33.00 Afghanistan Infrastructure Trust Fund 5.10 – 5.10 – – – 5.10 Global Environment Facility 126.73 9.00 124.53 9.00 2.20 – 13.95 Australia 40.00 Australia 1.20c Japan International Cooperation Agency (JICA) 9.00 OPEC Fund for International Development (OFID) 1.00c World Health Organization 4.04 Australia 6.44 Australia 16.50 World Bank 12.60 New Zealand 31.00 Australia 762.77 712.00 762.77 712.00 – – 14.86 Germany 2.00 Japan Fund for Poverty Reduction (JFPR) 184.00 JICA 35.00 Australia 65.00 Canada 70.00 European Union 30.00 JICA 45.00 Sweden 190.00 United Kingdom 0.50 United Nations Children’s Fund (UNICEF) 300.00 World Bank

• = 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.

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Asian Development Bank Annual Report 2011

CONTINUED

project name aDB

Official cofinancing source of cofinancing grants Loans

Power System Efficiency Improvement 300.00 Public–Private Infrastructure Development Facilityd 1.30 Bhutan Advancing Economic Opportunities of Women and Girls nepal Decentralized Rural Infrastructure and Livelihood 25.00 (Additional Financing) Electricity Transmission Expansion and Supply Improvement 75.00 Establishing Women and Children Service Centers (Supplementary) Reducing Child Malnutrition through Social Protection School Sector Program 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 150.00 Regional Improving Gender-Inclusive Access to Clean and Renewable Energy in Bhutan, Nepal, and Sri Lanka sOUthEast asia 2,009.74 DVA cofinancing Non-DVA cofinancing cambodia Improving Market Access for the Poor in Central Cambodia Provincial Roads Improvement 52.00 indonesia Regional Roads Development 180.00 philippines Road Improvement and Institutional Development 62.00 Viet nam Comprehensive Socioeconomic Urban Development in Viet Tri, Hung Yen, and Dong Dang 70.00

200.00 Islamic Development Bank (IsDB) 2.00 Asian Clean Energy Fund under the Clean Energy Financing Partnership Facility 1.95 JFPR 20.00 OFID 7.06 Switzerland 25.00 Norway 0.20 United Kingdom 2.00 JFPR 15.60 Australia 17.90 Denmark 47.90 European Union 70.00 Fast Track Initiative 13.20 Finland 22.40 Norway 4.00 United Kingdom 1.00 UNICEF 72.50 World Bank 2.70 JFPR 2.00 JFPR 8.00 OFID 3.00 JFPR 13.68 1,586.52 13.68 1,586.52 – – 1.90 JFPR 7.00 10.00 Pilot Program for Climate Resilience under the Strategic Climate Fund 65.00 IsDB 30.00 OFID 13.52 The Export–Import 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

project name aDB	Official cofinancing source of cofinancing grants Loans
Ha Noi Metro Rail System Project (Line 3: Nhon–Ha Noi Station Section) 293.00 Mong Duong 1 Thermal Power – Tranche 2d 902.85 O Mon IV Combined Cycle Power Plant 309.89 Phuoc Hoa Water Resources (Supplementary) 60.00 Transport Connections in Northern Mountainous Provinces 80.00 Regional Developing Sustainable Alternative Livelihoods in Coastal Fishing Communities in the Coral Triangle	143.00 Agence Française de Développement (AFD), France 325.00 Direction Générale du Trésor, France 95.00 European Investment Bank 510.00 KEXIM 370.00 Germany 25.00 AFD 2.78 Nordic Development Fund 2.00 JFPR
tOtaL DVa cofinancing non-DVa cofinancing	973.68 2,307.52 971.48 2,307.52 2.20 –

– = 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

Asian Development Bank Annual Report 2011

Statistical Annex 4b

PROJECTS INVOLVING COMMERCIAL COFINANCING, 2011

($ million)

($ million)
		commercial
project name	aDB	cofinancing	source of cofinancing
cEntRaL anD wEst asia	1,255.29	1,940.26
DVA cofinancinga		1,911.55
Non-DVA cofinancingb		28.72
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
Garadagh Cement Expansion and Energy Efficiency
Improvement Project		28.72	Holcim Auslandsbeteiligung GmBH
pakistan
Patrind Hydropower Project	97.00	230.00	Export–Import Bank of Korea, Islamic
			Development Bank, International Finance
			Corporation (IFC)
Uch II Power Project	100.00	99.98	IFC
Zorlu Enerji Power Project	36.80	70.05	IFC, ECO Trade and Development Bank,
			Habib Bank Limited
Transactions under ADB’s Trade Finance Program	659.57	1,152.17	Various international banks and
			financial institutions
Uzbekistan
Kandym Gas Field Development Project	300.00	100.00	Islamic Development Bank
Transactions under ADB’s Trade Finance Program	34.92	115.77	Various international banks and
			financial institutions
East asia	602.19	487.60
DVA cofinancing		125.39
Non-DVA cofinancing		362.21
Mongolia
Transactions under ADB’s Trade Finance Program	12.19	25.39	Various international banks and
			financial institutions
china, people’s Republic of
Municipal Water Distribution Infrastructure
Development Project	100.00	100.00	Commercial lenders under B loan
Jilin Wind Power Project	240.00	60.00	IFC
Xi’an Urban Road Network Improvement Project	150.00	234.01	China Construction Bank
Gansu Tianshui Urban Infrastructure	100.00	68.20	China Development Bank
paciFic	49.00	40.00
DVA cofinancing		–
Non-DVA cofinancing		40.00
papua new guinea and solomon islands
Bemobile Expansion Project	49.00	40.00	Bank of South Pacific Limited
sOUth asia	258.90	390.30
DVA cofinancing		390.30
Non-DVA cofinancing		–
Bangladesh
Transactions under ADB’s Trade Finance Program	120.13	213.46	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 ADB’s 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 ADB’s 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
project name	aDB	cofinancing	source of cofinancing
Bhutan
Transactions under ADB’s Trade Finance Program	2.01	3.05	Various international banks and
			financial institutions
india
Dahanu Solar Power Project	48.00	65.00	Export–Import Bank of the United States
nepal
Transactions under ADB’s Trade Finance Program	12.93	15.83	Various international banks and
			financial institutions
sri Lanka
Transactions under ADB’s Trade Finance Program	75.82	92.96	Various international banks and
			financial institutions
sOUthEast asia	490.94	1,776.99
DVA cofinancing		1,776.99
Non-DVA cofinancing		–
indonesia
Indonesia Eximbank	100.00	100.00	ANZ, Bank of Nova Scotia, Sumitomo Mitsui
			Banking Corporation, Wells Fargo Bank
Transactions under ADB’s Trade Finance Program	60.79	54.79	Various international banks and
			financial institutions
philippines
Transactions under ADB’s Trade Finance Program	26.70	26.70	Various international banks and
			financial institutions
thailand
Nong Saeng Natural Gas Power Project	170.00	914.77	Japan Bank for International Cooperation,
			Mizuho Corporate Bank, Siam Commercial Bank,
			and Karsikorn Public Company Limited (Onshore)
Viet nam
Transactions under ADB’s Trade Finance Program	133.45	680.73	Various international banks and
			financial institutions
tOtaL	2,656.32	4,635.16
DVa cofinancing		4,204.23
non-DVa cofinancing		430.93

– = nil, DVA = direct value-added.

251

Asian Development Bank Annual Report 2011

Statistical Annex 5a

LOAN DISBURSEMENTS, 2010 and 2011

(amounts in $ million)

Statistical Annex 5a LOAN DISBURSEMENTS, 2010 and 2011 (amounts in $ million)
	2 0 1 0
	OcR % of total OcR aDF % of total aDF	total % of total Disbursements
Projecta Nondevelopment Finance Institution Development Finance Institution Total Project Loans Policy-Based Lendingb Sectorc Nonsovereignd	2,793 47 969 62 246 4 11 1 3,038 51 980 62 1,410 24 455 29 823 14 136 9 673 11 – –	3,762 50 256 3 4,018 53 1,865 25 959 13 673 9
tOtaLe	5,944 100 1,571 100	7,516 100

	2 0 1 1 % of total OcR % of total aDF % of total Disbursements OcR aDF total	% change (2011/2010) OcR aDF total
Projecta Nondevelopment Finance Institution Development Finance Institution Total Project Loans Policy-Based Lendingb Sectorc Nonsovereignd	3,616 57 1,014 73 4,630 60 434 7 55 4 490 6 4,051 64 1,069 77 5,120 66 966 15 245 18 1,211 16 604 10 71 5 676 9 715 11 – – 715 9	29 5 23 77 415 91 33 9 27 (31) (46) (35) (27) (48) (30) 6 NA 6
tOtaLe	6,337 100 1,385 100 7,722 100	7 (12) 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)

(amounts in $ million)
	2 0 1 0 aDF % of total aDF Other special Fundsa % of total Other special Fundsa total % of total Disbursements
Project Policy-Basedb	342.7 95.8 101.8 100.0 444.5 96.7 15.0 4.2 – – 15.0 3.3
tOtaL	357.7 100.0 101.8 100.0 459.5 100.0

	2 0 1 1 aDF % of total aDF Other special Fundsa % of total Other special Fundsa total % of total Disbursements	% change (2011/2010) aDF Other special Fundsa total
Project Policy-Basedb	375.6 73.7 34.3 100.0 409.8 75.3 134.3 26.3 – – 134.3 24.7	9.6 (66.4) (7.8) 795.3 NA 795.3
tOtaL	509.9 100.0 34.3 100.0 544.1 100.0	42.5 (66.4) 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)

POLICY-BASED LOAN DISBURSEMEN (amounts in $ million)	TS,a2011
country	OcR	aDF	total
Afghanistan	–	2.80	2.80
Bangladesh	–	44.73	44.73
Bhutan	–	–	–
Cambodia	–	41.45	41.45
Cook Islands	–	–	–
Georgia	–	–	–
India	60.00	–	60.00
Indonesia	400.00	–	400.00
Lao People’s Democratic Republic	–	8.00	8.00
Maldives	–	–	–
Marshall Islands	–	–	–
Nepal	–	25.35	25.35
Pakistan	200.00	–	200.00
Palau	6.40	3.47	9.87
Philippines	200.00	–	200.00
Thailand	100.00	–	100.00
Samoa	–	–	–
Sri Lanka	–	–	–
Viet Nam	–	118.75	118.75
tOtaL	966.40	244.55	1,210.95

– = nil, ADF = Asian Development Fund, OCR = ordinary capital resources. a Refers to formerly named program loans.

253

Asian Development Bank Annual Report 2011

Statistical Annex 6b

POLICY-BASED GRANT DISBURSEMENTS,[a] 2011 (amounts in $ million)

(amounts in $ million)
country	aDF	Other special Fundsb	total
Afghanistan	–	–	–
Bangladesh	–	–	–
Bhutan	2.0	–	2.0
Cambodia	24.0	–	24.0
China, People’s Republic of	–	–	–
India	–	–	–
Indonesia	–	–	–
Kyrgyz Republic	–	–	–
Lao People’s Democratic Republic	10.0	–	10.0
Maldives	–	–	–
Mongolia	–	–	–
Nepal	66.3	–	66.3
Pakistan	–	–	–
Papua New Guinea	–	–	–
Philippines	–	–	–
Samoa	–	–	–
Solomon Islands	5.0	–	5.0
Sri Lanka	–	–	–
Tajikistan	20.0	–	20.0
Timor-Leste	–	–	–
Tonga	5.0	–	5.0
Tuvalu	2.0	–	2.0
Viet Nam	–	–	–
tOtaL	134.3	–	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, 1999–2011

year	policy-Based Lending and aDF grant $ Million %	project Loan and aDF grant $ Million %	total $ Million
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011	1,694.00 34 1,102.00 20 1,583.00 30 1,702.18 30 1,139.50 19 1,121.40 22 1,148.50 19 3,204.58 43 2,521.00 25 2,631.05 25 6,098.85 43 1,580.90 13 690.62 5	3,239.57 66 4,480.59 80 3,755.69 70 3,955.75 70 4,900.31 81 3,917.64 78 4,858.75 81 4,331.62 57 7,513.94 75 7,975.23 75 8,028.35 57 10,830.56 87 12,511.60 95	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

ADF = Asian Development Fund.

254

Statistical Annexes

Statistical Annex 7

NONSOVEREIGN APPROVALS AND TOTAL PROJECT COSTS BY COUNTRY,[a] 2011 ($ million)

NONSOVEREIGN APPROVALS AND TOTAL P ($ million)	ROJECT C	OSTS BY C	OUNTRY,	a2011
			total	complementary	partial	political	total	project
		Equity	aDB	Loan	credit	Risk	aDB	cost/
	Loan	investment	Funds	(B Loan)	guarantee	guarantee	approvals	Fund size
armenia
Small and Medium-Sized Enterprise Finance Program	65.00	–	65.00	–	–	–	65.00	65.00
Bangladesh
Industrial Energy Efficiency Finance Program	30.00	–	30.00	–	–	–	30.00	30.00
china, people’s Republic of
Municipal Water Distribution
Infrastructure Development	100.00	–	100.00	100.00	–	–	200.00	394.54
Sino-Green Climate Investment Fund	–	25.00	25.00	–	–	–	25.00	200.00
india
Bangalore Metro Rail Transit System	250.00	–	250.00	–	–	–	250.00	2,665.00
Solar Power Generation	–	–	–	–	150.00	–	150.00	429.00
National Grid Improvement Project	250.00	–	250.00	–	–	–	250.00	2,250.10
Dahanu Solar Power Project	48.00	–	48.00	–	–	–	48.00	147.50
Climatech Venture Capital Funds – VenturEast Life
Fund IIIb	–	20.00	20.00	–	–	–	20.00	200.00
indonesia
Indonesia Eximbank	100.00	–	100.00	100.00	–	–	200.00	200.00
Lao people’s Democratic Republic
Nam Ngum 3 Hydropower Project	350.00	–	350.00	–	–	–	350.00	1,125.00
pakistan
Patrind Hydropower Project	97.00	–	97.00	–	–	–	97.00	436.00
Foundation Wind Energy I and II Projects	–	–	–	–	66.61	–	66.61	266.41
thailand
Nong Saeng Natural Gas Power Project	170.00	–	170.00	–	–	–	170.00	1,567.00
Uzbekistan
Kandym Gas Field Development Project	100.00	–	100.00	–	–	200.00	300.00	447.00
Regional
Bemobile Expansion Projectb	40.00	9.00	49.00	–	–	–	49.00	90.00
Climatech Venture Capital Funds – Aloe Environment
Fund IIIc	–	20.00	20.00	–	–	–	20.00	146.21
Aureos South East Asia Fund IId	–	15.00	15.00	–	–	–	15.00	180.00
tOtaL	1,600.00	89.00	1,689.00	200.00	216.61	200.00	2,305.61	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

Asian Development Bank Annual Report 2011

Statistical Annex 8

NONSOVEREIGN APPROVALS AND TOTAL PROJECT COSTS BY SECTOR,[a] 2011 ($ million)

NONSOVEREIGN APPROVALS AND ($ million)	TOTAL PRO	JECT COSTS	BY SECT	OR,a2011
			total	complementary	partial	political	total	total
		Equity	aDB	Loan	credit	Risk	aDB	project
sector	Loan	investment	Funds	(B Loan)	guarantee	guarantee	approvals	cost
Energy	1,045.00	–	1,045.00	–	216.61	200.00	1,461.61	6,698.01
Finance	165.00	15.00	180.00	100.00	–	–	280.00	445.00
Multisector	–	65.00	65.00	–			65.00	546.21
Transport and ICT	290.00	9.00	299.00	–	–	–	299.00	2,755.00
Water and Other Municipal Infrastructure
and Services	100.00	–	100.00	100.00	–	–	200.00	394.54
tOtaL	1,600.00	89.00	1,689.00	200.00	216.61	200.00	2,305.61	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] 1983–2011 (amounts in $ million)

				total	complementary	partial		political			total	total
	no. of		Equity	aDB	Loan	credit		Risk			aDB	project
year	projectsc	Loan	investmentd	Funds	(B Loan)	guarantee		guarantee	tFp	grant	approvals	cost
1983	2	–	2.96	2.96	–		–	–	–		2.96	36.00
1984	1	–	0.42	0.42	–		–	–	–		0.42	2.80
1985	3	–	3.40	3.40	–		–	–	–		3.40	26.50
1986	4	6.46	6.01	12.47	–		–	–	–		12.47	20.32
1987	7	20.50	27.61	48.11	5.00		–	–	–		53.11	519.24
1988	12	58.00	35.67	93.67	–		–	–	–		93.67	502.32
1989	16	95.70	67.59	163.29	51.10		–	–	–		214.39	1,038.66
1990	17	78.85	35.94	114.79	24.00		–	–	–		138.79	2,026.13
1991	10	156.80	20.52	177.32	–		–	–	–		177.32	1,325.18
1992	4	50.00	5.42	55.42	81.50		–	–	–		136.92	402.29
1993	8	182.10	20.70	202.80	19.30		–	–	–		222.10	1,505.70
1994	10	–	48.70	48.70	–		–	–	–		48.70	919.20
1995	7	68.00	99.41	167.41	5.83		–	–	–		173.24	1,050.32
1996	7	98.50	80.15	178.65	91.50		–	–	–		270.15	1,788.77
1997	6	45.00	49.50	94.50	–		–	–	–		94.50	1,239.69
1998	6	136.12	39.44	175.56	151.08		–	–	–		326.64	1,152.70
1999	3	101.50	7.40	108.90	61.50		–	–	–		170.40	847.70
2000	9	152.00	77.65	229.65	45.00		–	–	–		274.65	1,629.84
2001	6	37.50	30.36	67.86	–		–	–	–		67.86	648.00
2002	6	110.00	25.53	135.53	–		–	60.00	–		195.53	1,136.60
2003	7	122.00	35.65	157.65	170.00	65.00		–	150.00		542.65	2,300.00
2004	14	92.50	164.37	256.87	–		–	10.00	–		266.87	2,227.70
2005	13	513.02	175.50	688.52	–	18.40		–	–		706.92	8,676.42
2006	18	450.00	230.50	680.50	330.00	109.80		15.00	–		1,135.30	7,678.34
2007	21	650.27	79.75	730.02	200.00	251.00		–	–		1,181.02	3,494.54
2008	12	1,296.58	103.08	1,399.66	425.00		–	–			1,824.66	9,667.49
2009	11	437.87	220.00	657.87	276.20		–		850.00		1,784.07	4,333.52
2010	19	1,034.70	235.00	1,269.70	320.00	500.00		–	–	2.00	2,091.70	5,942.42
2011	17	1,600.00	89.00	1,689.00	200.00	216.61		200.00	–	–	2,305.61	10,838.76
tOtaL	266	7,593.97	2,017.23	9,611.20	2,457.01	1,160.81		285.00	1,000.00	2.00	14,516.02	72,977.15

– = 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] 1983–2011 (amounts in $ million)

				total	complementary	partial	political			total	total
	no. of		Equity	aDB	Loan	credit	Risk			aDB	project
country	projectsc	Loan	investmentd	Funds	(B Loan)	guarantee	guarantee	tFp	grant	approvals	cost
Afghanistan	6	135.00	8.10	143.10	30.00	–	25.00	–		198.10	650.70
Armenia	2	105.00		105.00						105.00	238.00
Azerbaijan	5	93.00	–	93.00	–	–	–	–		93.00	553.00
Bangladesh	9	167.20	14.98	182.18	20.00	–	–	–		202.18	920.36
Bhutan	1	–	0.53	0.53	–	–	–	–		0.53	0.79
Cambodia	1	8.00	–	8.00	–	–	–	–		8.00	32.00
China, People’s
Republic of	29	1,120.77	429.30	1,550.07	1,342.70	107.00	–	–		2,999.77	10,277.96
Georgia	3	95.00	–	95.00	–	–	–	–		95.00	195.00
India	39	1,944.97	297.30	2,242.27	230.00	400.00	–	–		2,872.27	20,975.30
Indonesia	17	957.00	63.85	1,020.85	388.50	9.80	–	–		1,419.15	8,172.02
Kazakhstan	4	175.00	–	175.00	–	200.00	–	–		375.00	925.00
Korea, Republic of	3	–	8.96	8.96	–	–	–	–		8.96	288.00
Lao People’s
Democratic Republic	2	400.00	–	400.00	–	–	–	–		400.00	2,575.00
Malaysia	2	10.00	2.00	12.00	–	–	–	–		12.00	29.24
Maldives	2	12.00	4.50	16.50	–	–	–	–		16.50	37.50
Mongolia	2	14.50	1.60	16.10	–	–	–	–		16.10	50.00
Nepal	4	49.55	3.26	52.81	5.83	–	–	–		58.64	218.03
Pakistan	28	662.90	53.38	716.28	129.90	175.61	–	–		1,021.79	4,339.52
Papua New Guinea	1	25.00	–	25.00	–	–	–	–		25.00	85.30
Philippines	26	595.32	39.85	635.17	113.58	18.40	–	–		767.15	4,284.72
Samoa	1	–	0.40	0.40	–	–	–	–		0.40	1.60
Sri Lanka	12	99.50	13.58	113.08	–	–	–	–		113.08	543.48
Thailand	12	445.76	77.07	522.83	170.00	–	–	–	2.00	694.83	5,032.68
Uzbekistan	1	100.00	–	100.00	–	–	200.00	–		300.00	447.00
Viet Nam	7	193.50	–	193.50	26.50	–	60.00	–		280.00	1,495.00
Regional	47	185.00	998.57	1,183.57	–	250.00	–	1,000.00		2,433.57	10,609.95
tOtaL	266	7,593.97	2,017.23	9,611.20	2,457.01	1,160.81	285.00	1,000.00	2.00	14,516.02	72,977.15

– = 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

Asian Development Bank Annual Report 2011

Statistical Annex 11

NUMBER OF LOANS/GRANTS UNDER ADMINISTRATION, AND CLOSED IN 2011 (as of 31 December 2011)

(as of 31 December 2011)
	cumulative	cumulative	no. of
	no. of	no. of	Loans
	Effective	Effective	under
country	Loansa	grantsb	administrationa, c
Afghanistan	22	17	12
Armenia	12	–	9
Azerbaijan	15	–	13
Bangladesh	211	2	55
Bhutan	25	6	7
Cambodia	56	22	16
China, People’s Republic of	183	3	88
Cook Islands	16	–	3
Fiji	19	–	4
Georgia	13	–	9
Hong Kong, China	5	–	–
India	156	1	91
Indonesia	310	4	28
Kazakhstan	21	–	8
Kiribati	7	–	2
Korea, Republic of	81	–	–
Kyrgyz Republic	31	13	7
Lao People’s Democratic Republic	69	22	12
Malaysia	77	–	–
Maldives	20	1	7
Marshall Islands	13	–	–
Micronesia, Federated States of	8	–	2
Mongolia	44	13	9
Myanmar	32	–	–
Nauru	1	–	–
Nepal	124	25	17
Pakistan	290	4	29
Palau	2	–	2
Papua New Guinea	69	1	20
Philippines	211	2	13
Samoa	33	4	3
Singapore	14	–	–
Solomon Islands	16	7	–
Sri Lanka	160	6	40
Taipei,China	12	–	–
Tajikistan	22	10	5
Thailand	89	1	6
Timor-Leste	–	3	–
Tonga	14	3	–
Turkmenistan	1	–	1
Tuvalu	3	1	–
Uzbekistan	35	–	24
Vanuatu	9	–	2
Viet Nam	121	4	63
Regional	8	2	3
tOtaL	2,680	177	610

– = 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	no. of	no. of
grants	Loans	grants
under	closed	closed
administrationb, c	in 2011d	in 2011b	country
15	–	1	Afghanistan
–	2	–	Armenia
–	1	–	Azerbaijan
2	5	–	Bangladesh
6	–	–	Bhutan
15	7	5	Cambodia
3	4	–	China, People’s Republic of
1	–	–	Cook Islands
–	–	–	Fiji
–	1	–	Georgia
–	–	–	Hong Kong, China
–	4	–	India
–	9	2	Indonesia
–	–	–	Kazakhstan
–	–	–	Kiribati
–	–	–	Korea, Republic of
11	–	–	Kyrgyz Republic
21	4	–	Lao People’s Democratic Republic
–	–	–	Malaysia
–	–	1	Maldives
–	1	–	Marshall Islands
–	–	–	Micronesia, Federated States of
13	2	–	Mongolia
–	–	–	Myanmar
–	–	–	Nauru
26	3	2	Nepal
3	11	–	Pakistan
–	–	–	Palau
1	–	–	Papua New Guinea
2	1	–	Philippines
2	2	1	Samoa
–	–	–	Singapore
5	–	2	Solomon Islands
5	5	1	Sri Lanka
–	–	–	Taipei,China
8	2	–	Tajikistan
1	–	–	Thailand
4	–	–	Timor-Leste
3	–	1	Tonga
–	–	–	Turkmenistan
–	2	1	Tuvalu
–	3	–	Uzbekistan
–	–	–	Vanuatu
3	6	1	Viet Nam
1	–	1	Regional
151	75	19	tOtaL

259

Asian Development Bank Annual Report 2011

Statistical Annex 12

AMOUNT OF LOANS MADE EFFECTIVE, CONTRACTS AWARDED, AND DISBURSEMENTS

(amounts in $ million; as of 31 December 2011)

			cumulative
	cumulative net	contracts	contracts
country	Effective Loansa, b	awarded in 2011b, c, d	awardedb, c, d
Afghanistan	908.99	7.43	418.16
Armenia	527.18	4.24	87.58
Azerbaijan	661.21	61.15	478.17
Bangladesh	10,942.84	558.74	7,484.12
Bhutan	253.76	8.15	208.08
Cambodia	1,141.29	41.46	784.92
China, People’s Republic of	22,654.13	1,293.04	19,004.76
Cook Islands	53.28	–	38.25
Fiji	284.45	18.81	235.32
Georgia	716.93	36.72	224.60
Hong Kong, China	94.50	–	94.50
India	21,404.10	1,357.79	15,305.55
Indonesia	21,580.24	153.14	12,044.48
Kazakhstan	1,985.74	123.81	877.17
Kiribati	25.42	2.29	16.00
Korea, Republic of	5,560.33	–	1,860.33
Kyrgyz Republic	720.62	40.06	443.95
Lao People’s Democratic Republic	1,213.51	3.11	1,001.47
Malaysia	1,413.98	–	1,403.98
Maldives	143.18	3.85	94.78
Marshall Islands	74.13	–	40.47
Micronesia, Federated States of	65.99	8.24	37.20
Mongolia	753.76	8.36	449.46
Myanmar	411.83	–	387.64
Nauru	2.30	–	–
Nepal	2,326.34	59.98	1,619.57
Pakistan	18,914.44	478.61	9,560.33
Palau	16.07	–	–
Papua New Guinea	1,137.04	26.25	661.94
Philippines	10,634.45	60.50	4,905.82
Samoa	167.09	5.39	118.44
Singapore	144.44	–	144.44
Solomon Islands	65.82	–	50.15
Sri Lanka	5,134.36	283.69	3,775.32
Taipei,China	91.14	–	91.14
Tajikistan	363.80	4.32	316.81
Thailand	4,946.92	–	3,186.19
Timor-Leste	–	–	–
Tonga	52.26	–	41.17
Turkmenistan	125.00	2.58	2.58
Tuvalu	7.92	0.00	3.95
Uzbekistan	1,953.76	256.07	1,096.40
Vanuatu	48.99	–	29.04
Viet Nam	9,077.16	1,226.14	5,013.58
Regionalg	270.48	–	1.60
tOtaLh	149,071.19	6,133.92	93,639.37

– = 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			% of cumulative
contracts awarded			Disbursements
to cumulative net	Disbursements	cumulative	to cumulative net
Effective Loansc	in 2011e	Disbursementsf	Effective Loans	country
83.91	42.97	779.29	85.73	Afghanistan
24.27	63.92	238.14	45.17	Armenia
44.07	136.75	330.14	49.93	Azerbaijan
73.83	412.76	8,805.92	80.47	Bangladesh
83.90	28.98	218.12	85.95	Bhutan
84.17	75.31	979.30	85.81	Cambodia
82.20	1,697.72	18,063.78	79.74	China, People’s Republic of
88.63	9.15	47.36	88.89	Cook Islands
88.98	21.38	235.87	82.92	Fiji
37.30	67.54	437.07	60.96	Georgia
100.00	–	94.50	100.00	Hong Kong, China
80.96	1,544.52	16,959.83	79.24	India
94.53	701.89	20,922.61	96.95	Indonesia
58.85	293.53	1,545.35	77.82	Kazakhstan
49.01	0.76	14.46	56.90	Kiribati
100.00	–	5,560.32	100.00	Korea, Republic of
77.19	39.28	623.27	86.49	Kyrgyz Republic
88.52	14.32	1,209.01	99.63	Lao People’s Democratic Republic
100.00	–	1,413.98	100.00	Malaysia
93.60	6.99	117.24	81.89	Maldives
100.00	–	74.13	100.00	Marshall Islands
83.12	6.32	54.54	82.64	Micronesia, Federated States of
77.82	14.12	667.34	88.54	Mongolia
100.00	–	411.83	100.00	Myanmar
–	–	2.30	100.00	Nauru
79.23	76.21	1,933.54	83.12	Nepal
83.31	594.76	16,812.65	88.89	Pakistan
–	9.87	9.87	61.42	Palau
55.05	20.55	794.46	69.87	Papua New Guinea
89.20	283.76	10,104.77	95.02	Philippines
92.47	9.76	149.96	89.75	Samoa
100.00	–	144.44	100.00	Singapore
100.00	–	65.82	100.00	Solomon Islands
81.94	271.84	3,994.98	77.81	Sri Lanka
100.00	–	91.14	100.00	Taipei,China
96.14	19.19	347.20	95.44	Tajikistan
97.64	287.15	4,526.89	91.51	Thailand
–	–	–	–	Timor-Leste
100.00	–	52.26	100.00	Tonga
2.07	–	–	–	Turkmenistan
100.00	(0.00)	7.92	100.00	Tuvalu
43.50	113.40	855.13	43.77	Uzbekistan
65.69	–	48.99	100.00	Vanuatu
57.11	792.73	4,951.45	54.55	Viet Nam
100.00	64.47	258.48	95.56	Regional
80.01	7,721.93	124,955.66	83.82	tOtaL

261

Asian Development Bank Annual Report 2011

Statistical Annex 13

AMOUNT OF GRANTS MADE EFFECTIVE, CONTRACTS AWARDED, AND DISBURSEMENTS[a] (amounts in $ million; as of 31 December 2011)

==> picture [577 x 49] intentionally omitted <==

----- Start of picture text -----

cumulative
cumulative net contracts contracts
country Effective grants awarded in 2011 [b] awarded [b]
----- End of picture text -----

country	cumulative net Effective grants	contracts awarded in 2011b	cumulative contracts awardedb
Afghanistan	1,499.08	352.83	665.32
Armenia	–	–	–
Azerbaijan	–	–	–
Bangladesh	11.30	0.07	9.43
Bhutan	105.33	45.72	74.39
Cambodia	258.37	21.68	105.80
China, People’s Republic of	7.20	0.37	0.98
Cook Islands	–	–	–
Fiji	–	–	–
Georgia	–	–	–
Hong Kong, China	–	–	–
India	100.00	–	100.00
Indonesia	303.85	–	303.85
Kazakhstan	–	–	–
Kiribati	–	–	–
Korea, Republic of	–	–	–
Kyrgyz Republic	241.65	65.91	154.79
Lao People’s Democratic Republic	348.76	30.10	139.81
Malaysia	–	–	–
Maldives	17.17	–	17.17
Marshall Islands	–	–	–
Micronesia, Federated States of	–	–	–
Mongolia	174.72	55.73	88.19
Myanmar	–	–	–
Nauru	–	–	–
Nepal	628.18	76.30	180.84
Pakistan	146.00	3.60	135.95
Papua New Guinea	15.00	1.13	14.38
Philippines	6.00	–	–
Samoa	24.51	2.49	14.63
Singapore	–	–	–
Solomon Islands	56.12	18.04	36.84
Sri Lanka	207.75	5.91	171.58
Taipei,China	–	–	–
Tajikistan	429.56	142.48	182.01
Thailand	3.00	–	–
Timor-Leste	61.89	8.89	26.83
Tonga	31.00	0.03	7.47
Turkmenistan	–	–	–
Tuvalu	3.24	–	–
Uzbekistan	–	–	–
Vanuatu	–	–	–
Viet Nam	45.57	2.04	39.93
Regional	32.04	0.01	31.58
tOtaL	4,757.29	833.34	2,501.78

– = 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

==> picture [579 x 49] intentionally omitted <==

----- Start of picture text -----

% of cumulative % of cumulative
contracts awarded Disbursements
to cumulative net Disbursements cumulative to cumulative net
Effective grants [b] in 2011 Disbursements Effective grants country
----- End of picture text -----

% of cumulative contracts awarded to cumulative net Effective grantsb	Disbursements in 2011	cumulative Disbursements	% of cumulative Disbursements to cumulative net Effective grants	country
46.10	77.88	342.03	22.82	Afghanistan
–	–	–	–	Armenia
–	–	–	–	Azerbaijan
83.48	0.71	6.63	58.71	Bangladesh
74.89	12.95	37.98	36.06	Bhutan
46.47	49.96	131.63	50.95	Cambodia
13.63	0.67	0.87	12.05	China, People’s Republic of
–	–	–	–	Cook Islands
–	–	–	–	Fiji
–	–	–	–	Georgia
–	–	–	–	Hong Kong, China
100.00	–	100.00	100.00	India
100.00	5.32	303.85	100.00	Indonesia
–	–	–	–	Kazakhstan
–	–	–	–	Kiribati
–	–	–	–	Korea, Republic of
67.55	64.13	132.08	54.66	Kyrgyz Republic
45.28	56.88	142.50	40.86	Lao People’s Democratic Republic
–	–	–	–	Malaysia
100.00	0.07	17.17	100.00	Maldives
–	–	–	–	Marshall Islands
–	–	–	–	Micronesia, Federated States of
59.26	15.57	53.35	30.54	Mongolia
–	–	–	–	Myanmar
–	–	–	–	Nauru
45.91	132.59	361.59	57.56	Nepal
94.74	12.74	129.24	88.52	Pakistan
95.88	2.89	13.24	88.24	Papua New Guinea
–	3.00	6.00	100.00	Philippines
59.68	3.62	10.57	43.13	Samoa
–	–	–	–	Singapore
79.89	14.51	26.23	46.75	Solomon Islands
82.59	13.45	171.81	82.70	Sri Lanka
–	–	–	–	Taipei,China
52.82	55.31	114.27	26.60	Tajikistan
–	–	–	–	Thailand
43.35	2.99	14.49	23.42	Timor-Leste
35.59	7.08	14.28	46.05	Tonga
–	–	–	–	Turkmenistan
–	2.00	3.24	100.00	Tuvalu
–	–	–	–	Uzbekistan
–	–	–	–	Vanuatu
87.63	4.79	38.99	85.58	Viet Nam
98.55	5.01	30.99	96.71	Regional
58.99	544.14	2,203.04	46.31	tOtaL

263

Asian Development Bank Annual Report 2011

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)

(as of 31 December 2011)
	no. of	no. of	no. of
	projectsa, b	Effective	projectsb, d, e
	under	projects	completed
country	administration	at Riskc	in 2011
Afghanistan	27	2	1
Armenia	9	2	–
Azerbaijan	11	1	1
Bangladesh	53	4	5
Bhutan	12	–	–
Cambodia	27	3	1
China, People’s Republic of	90	–	4
Cook Islands	2	–	–
Fiji	3	1	–
Georgia	8	1	–
Hong Kong, China	–	–	–
India	92	4	4
Indonesia	33	2	1
Kazakhstan	8	–	–
Kiribati	2	1	–
Korea, Republic of	–	–	–
Kyrgyz Republic	12	3	–
Lao People’s Democratic Republic	29	2	2
Malaysia	–	–	–
Maldives	6	1	2
Marshall Islands	2	1	–
Micronesia, Federated States of	2	–	–
Mongolia	30	–	1
Myanmar	–	–	–
Nauru	–	–	–
Nepal	42	3	1
Pakistan	29	2	2
Palau	1	–	–
Papua New Guinea	14	2	–
Philippines	18	1	1
Samoa	4	–	–
Singapore	–	–	–
Solomon Islands	5	–	1
Sri Lanka	41	3	5
Taipei,China	–	–	–
Tajikistan	10	–	1
Thailand	7	1	–
Timor-Leste	5	1	–
Tonga	3	–	–
Turkmenistan	1	–	–
Tuvalu	–	–	–
Uzbekistan	21	3	3
Vanuatu	2	–	–
Viet Nam	65	6	6
Regional	16	1	–
tOtaL	742	51	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	no. of
no. of	pcRs/xaRRs	ppERs
pcRs/xaRRs	circulated	circulated
circulatedf	in 2011f	in 2011f	country
6	4	–	Afghanistan
2	1	–	Armenia
6	4	2	Azerbaijan
133	5	–	Bangladesh
17	–	–	Bhutan
26	7	–	Cambodia
98	7	–	China, People’s Republic of
13	–	–	Cook Islands
11	–	1	Fiji
3	1	–	Georgia
5	–	–	Hong Kong, China
60	5	1	India
213	6	1	Indonesia
13	3	–	Kazakhstan
5	–	–	Kiribati
61	–	–	Korea, Republic of
22	3	–	Kyrgyz Republic
52	5	–	Lao People’s Democratic Republic
56	–	–	Malaysia
11	3	–	Maldives
10	–	–	Marshall Islands
5	–	–	Micronesia, Federated States of
23	–	–	Mongolia
26	–	–	Myanmar
1	–	–	Nauru
90	6	–	Nepal
158	7	–	Pakistan
–	–	–	Palau
39	1	–	Papua New Guinea
144	4	3	Philippines
22	–	2	Samoa
7	–	–	Singapore
15	1	–	Solomon Islands
91	5	1	Sri Lanka
1	–	–	Taipei,China
12	–	–	Tajikistan
59	–	1	Thailand
6	–	–	Timor-Leste
16	–	1	Tonga
–	–	–	Turkmenistan
2	1	–	Tuvalu
16	4	–	Uzbekistan
8	–	–	Vanuatu
44	4	–	Viet Nam
9	4	–	Regional
1,617	91	13	tOtaL

265

Asian Development Bank Annual Report 2011

Statistical Annex 15

TECHNICAL ASSISTANCE GRANT APPROVALS BY COUNTRY AND REGIONAL ACTIVITIES,[a, b] 1967–2011, 2010, 2011 (amounts in $ thousand)

TECHNICAL ASSISTANCE (amounts in $ thousand)	GRANT APPROVALS BY CO	UNTRY AND REGIONAL ACTIVITIES,a, b1967–2011, 2010, 2011
country	1967–2011	2010 no. tasF Financing JsF Financing RciF Financing ccF Financing JFpR Financing Other sources total %
	no. amount %
Afghanistan Armenia Azerbaijan Bangladesh Bhutan Brunei Darussalam Cambodia China, People’s Republic of Cook Islands Fiji Georgia India Indonesia Kazakhstan Kiribati Korea, Republic of Kyrgyz Republic Lao People’s 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	65 72,497.70 1.61 8 4,575.00 0.10 23 13,122.00 0.29 379 212,086.17 4.72 117 49,643.15 1.11 1 600.00c 0.01 172 126,334.60 2.81 663 380,033.31 8.46 32 11,395.00 0.25 80 27,349.80 0.61 7 6,056.00 0.13 318 235,223.86 5.24 521 351,334.17 7.82 62 28,217.00 0.63 38 16,315.70 0.36 33 5,010.15 0.11 77 43,651.40 0.97 255 139,632.08 3.11 94 26,352.30 0.59 60 24,300.00 0.54 48 19,882.00 0.44 43 25,128.00 0.56 157 89,156.65 1.99 38 10,716.00 0.24 8 2,146.81 0.05 314 161,893.70 3.61 333 195,951.13 4.36 5 3,300.00 0.07 148 62,766.12 1.40 364 192,365.25 4.28 87 28,681.50 0.64 2 577.42 0.01 65 21,170.24 0.47 249 114,788.10 2.56 1 100.00 0.002 63 37,661.06 0.84 170 67,469.60 1.50 37 32,310.90 0.72 61 18,741.50 0.42 5 1,065.00 0.02 20 5,914.75 0.13 83 48,150.00 1.07 59 20,714.76 0.46 270 242,322.16 5.40	3 925.00 – – – 1,500.00 – 2,425.00 0.75 – – – – – – – – – – – – – – – – – – 15 5,350.00 – – – 500.00 1,725.00 7,575.00 2.34 4 2,500.00 – – – – – 2,500.00 0.77 – – – – – – – – – 8 5,500.00 – – – – 100.00 5,600.00 1.73 40 19,280.00 – – – – 2,892.00 22,172.00 6.84 1 – – – – 300.00 – 300.00 0.09 – – – – – – – – – 4 1,706.00 – – – – 1,650.00 3,356.00 1.03 29 10,550.00 – – – 3,000.00 5,690.00 19,240.00 5.93 9 1,000.00 – – 2,550.00 2,000.00 53,325.00 58,875.00 18.15 1 650.00 – – – – – 650.00 0.20 1 – – – – – 200.00 200.00 0.06 – – – – – – – – – 1 1,000.00 – – – – – 1,000.00 0.31 10 3,715.00 – – – 2,680.00 3,050.00 9,445.00 2.91 – – – – – – – – – 1 650.00 – – – – – 650.00 0.20 1 600.00 – – – – – 600.00 0.18 – – – – – – – – – 10 3,375.00 1,500.00 – – 2,000.00 500.00 7,375.00 2.27 – – – – – – – – – – – – – – – – – – 18 4,460.00 – – 400.00 3,900.00 1,658.00 10,418.00 3.21 4 2,170.00 – – – – – 2,170.00 0.67 – – – – – – – – – 3 1,100.00 – – – – 90.00 1,190.00 0.37 9 1,175.00 700.00 – – 2,700.00 3,430.00 8,005.00 2.47 – – – – – – – – – – – – – – – – – – 2 – – – – 800.00 200.00 1,000.00 0.31 7 1,400.00 2,000.00 – – 2,500.00 – 5,900.00 1.82 – – – – – – – – – 1 – – – – – 750.00 750.00 0.23 3 2,300.00 – – – – 500.00 2,800.00 0.86 4 950.00 – – – 825.00 – 1,775.00 0.55 2 515.00 – – – – – 515.00 0.16 1 350.00 – – – – – 350.00 0.11 – – – – – – – – – 3 2,350.00 – – – – – 2,350.00 0.72 1 – – – – 500.00 – 500.00 0.15 18 8,283.00 – – – 1,000.00 1,800.00 11,083.00 3.42
All DMCs Regional	5,635 3,176,702.04 70.75 1,784 1,313,516.43 29.25	214 81,854.00 4,200.00 – 2,950.00 24,205.00 77,560.00 190,769.00 58.82 117 64,288.15 7,500.00 13,700.00 – 1,181.00 46,899.25 133,568.40 41.18
tOtaL	7,419 4,490,218.47 100.00	331 146,142.15 11,700.00 13,700.00 2,950.00 25,386.00 124,459.25 324,337.40 100.00

– = 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 ADB’s loan data.

b Data are adjusted to exclude technical assistance projects withdrawn by governments.

c Reimbursable technical assistance.

266

Statistical Annexes

	2011 no. tasF Financing RciF Financing ccF Financing JFpR Financing Other sources total % country
	2 1,500.00 – – – 1,500.00 3,000.00 0.83 Afghanistan 1 700.00 – – – – 700.00 0.19 Armenia – – – – – – – – Azerbaijan 16 5,750.00 – – 2,400.00 1,210.00 9,360.00 2.60 Bangladesh 5 1,200.00 – – 1,000.00 500.00 2,700.00 0.75 Bhutan – – – – – – – – Brunei Darussalam 9 4,375.00 – – – 9,100.00 13,475.00 3.75 Cambodia 34 18,764.20 – 1,350.00 – 2,800.00 22,914.20 6.38 China, People’s Republic of 1 500.00 – – – – 500.00 0.14 Cook Islands – – – – – – – – Fiji 1 – – – – 600.00 600.00 0.17 Georgia 25 6,449.00 – 100.00 4,400.00 7,845.00 18,794.00 5.23 India 12 225.00 – – 6,500.00 2,825.00 9,550.00 2.66 Indonesia 1 565.00 – – – – 565.00 0.16 Kazakhstan 3 800.00 – – – 1,625.00 2,425.00 0.67 Kiribati – – – – – – – – Korea, Republic of 2 450.00 – – – – 450.00 0.13 Kyrgyz Republic 7 2,255.00 – – 1,700.00 3,600.00 7,555.00 2.10 Lao People’s Democratic Republic 1 1,000.00 – – – – 1,000.00 0.28 Malaysia 3 1,125.00 – – – – 1,125.00 0.31 Maldives 1 300.00 – – – – 300.00 0.08 Marshall Islands 1 – – – 700.00 – 700.00 0.19 Micronesia, Federated States of 5 11.00 – – 4,200.00 1,000.00 5,211.00 1.45 Mongolia – – – – – – – – Myanmar 1 200.00 – – – – 200.00 0.06 Nauru 14 3,160.00 – – 1,800.00 8,628.00 13,588.00 3.78 Nepal 1 4,000.00 – – – – 4,000.00 1.11 Pakistan – – – – – – – – Palau 4 2,000.00 – – 1,400.00 – 3,400.00 0.95 Papua New Guinea 11 4,875.00 – – 4,500.00 10,200.00 19,575.00 5.45 Philippines – – – – – – – – Samoa – – – – – – – – Singapore 3 1,275.00 – – – – 1,275.00 0.35 Solomon Islands 4 2,240.00 – – – 1,850.00 4,090.00 1.14 Sri Lanka – – – – – – – – Taipei,China 2 1,050.00 – – – 1,250.00 2,300.00 0.64 Tajikistan 5 1,550.00 – – 1,500.00 – 3,050.00 0.85 Thailand 2 1,425.00 – – – – 1,425.00 0.40 Timor-Leste 2 675.00 – – 500.00 – 1,175.00 0.33 Tonga – – – – – – – – Turkmenistan – – – – – – – – Tuvalu 7 3,245.00 – – 1,500.00 225.00 4,970.00 1.38 Uzbekistan 2 500.00 – – – 1,500.00 2,000.00 0.56 Vanuatu 19 8,595.00 – – 4,300.00 30,500.00 43,395.00 12.07 Viet Nam
	207 80,759.20 – 1,450.00 36,400.00 86,758.00 205,367.20 57.14 All DMCs 120 59,523.00 4,350.00 1,950.00 11,011.50 77,187.96 154,022.46 42.86 Regional
	327 140,282.20 4,350.00 3,400.00 47,411.50 163,945.96 359,389.66 100.00 tOtaL

267

Asian Development Bank Annual Report 2011

Statistical Annex 16

TECHNICAL ASSISTANCE GRANT APPROVALS, 2011

(amounts in $ thousand)

Statistical Annex 16 TECHNICAL ASSISTANCE GRANT APPROVALS, 2011 (amounts in $ thousand)
ta type sector	tasF	RciF	ccF	JFpR	Others source	total
afghanistan Rural Finance Expansion CD FIN Supporting Natural Resources Operations CD ANR Subtotal armenia Solid Waste Management Improvement Investment Program PP WMS Subtotal Bangladesh Capital Market Development Program II PP FIN Supporting the Khulna Water Supply Project CD WMS Support for Climate Change Mitigation and Renewable Energy Development CD ENE Road Safety Improvement Programs PA TAI Capacity Development for Bangladesh Bank CD FIN Climate Change Capacity Building and Knowledge Management CD MUL Power System Efficiency Improvement II PP ENE Strengthening the Resilience of the Urban Water Supply, Drainage, and Sanitation to Climate Change in Coastal Towns CD WMS Climate Resilient Infrastructure Improvement in Coastal Zone PP ANR Governance and Capacity Development CD PSM Public Private Partnership in Higher Education CD EDU Strategic Master Plan for Chittagong Port PA TAI Skills for Employment PP EDU Industrial Energy Efficiency Finance Program PP ENE Consolidation of Knowledge on Governance Initiatives CD PSM Capacity Building of the Anti Corruption Commission CD PSM Subtotal Bhutan Road Network II (Additional Financing) PP TAI Developing a Revenue Administration Management Information System CD PSM Green Power Development II PP ENE Third Bhutan Living Standards Survey CD PSM Strengthening Air Transport Regulatory and Operational Performance CD TAI Subtotal cambodia Supporting Policy and Institutional Reforms and Capacity Development in the Water Sector (Supplementary) CD ANR Enhance Project Readiness and Effectiveness CD MUL Promoting Economic Diversification Subprogram 3 PP PSM Climate Resilient Rice Commercialization Sector Development Program PP ANR Implementing Subprogram 2 of the Third Financial Sector Program CD FIN Strengthening Knowledge Solutions for the Cambodia–ADB Partnership PA PSM Integrated Urban Environmental Management in the Tonle Sap Basin PP WMS	1,500.00 –	– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –	– –	– –	– 1,500.00 NET–WFPF 1,500.00 – – – – – – – 500.00 SCF-PPCR – – 600.00 SCF-PPCR – – – – – – 110.00 Denmark 1,210.00 – 500.00 EAKPF – – – 500.00 8,300.00 NDF/ Australia – – 500.00 SCF-PPCR 300.00 RTFSI – –	1,500.00 1,500.00
	1,500.00		–	–		3,000.00
	700.00		–	–		700.00
	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 –		– – – – – – – – – – – – – – – –	– – – – – – – 700.00 – – – 1,000.00 700.00 – – –		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
	5,750.00		–	2,400.00		9,360.00
	600.00 – – 300.00 300.00		– – – – –	– – 1,000.00 – –		600.00 500.00 1,000.00 300.00 300.00
	1,200.00		–	1,000.00		2,700.00
	– 225.00 700.00 1,000.00 800.00 225.00 700.00		– – – – – – –	– – – – – – –		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, 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, 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 sector	tasF	RciF	ccF	JFpR	Others source	total
Supporting Strengthening and Institutional Reform for the Department of Land Transport of the Ministry of Public Works and Transport CD TAI Support for Public–Private Partnerships in Cambodia PA PSM Subtotal people’s Republic of china Strengthening the Capacity of the Judiciary to Implement Economic Laws (Supplementary) CD PSM Chongqing–Guiyang Railway Development (Supplementary) PP TAI Policy Study on Government Public Expenditure in Agricultural Production (Supplementary) PA ANR Hebei Energy Efficiency Improvement and Emission Reduction PP ENE Development of Energy Manager Program for Energy Conservation in Shandong CD ENE Developing a Legal System for the Credit Market PA FIN Urban Stormwater Management and Waterlogging Disaster Prevention PA WMS Gansu Jiuquan Integrated Urban Environment Improvement PP MUL Management System and Legislative Mechanism for Nonprofit Organizations PA PSM Chongqing Urban and Rural Infrastructure Development II PP MUL Managing the Water Resources of Boyang Lake PA ANR Strengthening Institutional Reform and Capacity Building PA PSM Yunnan Chuxiong Urban Environment Improvement PP MUL Public Finance and Financial Management Reforms PA PSM Strategies for Green Jobs Creation and Promotion PA PSM Xinjiang Integrated Urban Development PP MUL Innovations in Administrative Functions of Environmental Protection and Human Resources Development PA ANR Improving Energy Efficiency and Reducing Emissions through Intelligent Railway Station Buildings PA TAI Developing Multimodal Passenger Transport Hubs PA TAI Sustainable Provincial Development Strategy for Guangdong Province Focused on Environmental Improvement in Rural Areas and Small Cities PA ANR Promoting Market Innovation in Developing Social Infrastructure: Old Age Caring PP HSP Nonpoint Source Pollution Control in Catchment Areas PA ANR Developing Tianjin Emission Trading System CD ENE Yunnan Sustainable Road Maintenance PP TAI Enhancing the Energy Regulation System for Low-Carbon Development PA ENE Jiangxi Ji’an Sustainable Urban Transport PP TAI Promoting Partnerships for South–South Cooperation PA MUL Yuxi–Mohan Subregional Railway Link PP TAI Beijing Sustainable Urban Transport PA TAI Technical and Vocational Education and Training Demonstration PP EDU Capacity Development for Green Growth Demonstration CD ANR Anhui Intermodal Sustainable Transport Development PP TAI Study on Carbon Capture and Storage in Natural Gas-Based Power Plants CD ENE Hubei–Yichang Sustainable Urban Transport PP TAI Subtotal	500.00 225.00	– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –	– –	– –	– – 9,100.00 – – – – 1,000.00 CEF – – – – – – – – – – – – – – – – – – – – – – – – – – – 1,800.00 CCS – 2,800.00	500.00 225.00
	4,375.00		–	–		13,475.00
	14.20 320.00 200.00 700.00 – 450.00 400.00 650.00 400.00 700.00 200.00 500.00 700.00 1,200.00 400.00 700.00 450.00 400.00 500.00 400.00 900.00 480.00 200.00 800.00 400.00 700.00 750.00 800.00 450.00 1,100.00 1,000.00 1,000.00 – 900.00		– – – – – – – – – – 800.00 – – – – – – – – – – – 550.00 – – – – – – – – – – –	– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –		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 1,200.00 400.00 700.00 450.00 400.00 500.00 400.00 900.00 480.00 750.00 800.00 400.00 700.00 750.00 800.00 450.00 1,100.00 1,000.00 1,000.00 1,800.00 900.00
	18,764.20		1,350.00	–		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

Asian Development Bank Annual Report 2011

CONTINUED

ta type sector	tasF	RciF	ccF	JFpR	Others source	total
cook islands Implementing Public Sector Reforms CD PSM Subtotal georgia Developing a Geospatial Urban Water Supply and Sanitation Utility Management System (Supplementary) CD WMS Subtotal india Advanced Project Preparedness for Poverty Reduction – Water Users Association Empowerment for Improved Irrigation Management in Chhattisgarh (Subproject 5) (Supplementary) CD ANR Developing the Power System Master Plan for Bihar (Supplementary) CD ENE Capacity Development to Enhance Project Readiness and Results Monitoring for Transport Projects (Supplementary) CD TAI Himachal Pradesh Clean Energy Transmission Investment Program PP ENE Capacity Building for Road Safety and Public–Private Participation (PPP) Support CD TAI Capacity Building for Commercial Bank Lending for Solar Energy Projects CD ENE Advanced Project Preparedness for Poverty Reduction – Rajasthan Solar Park Capacity Development (Subproject 13) CD ENE Advanced Project Preparedness for Poverty Reduction – Gujarat Solar Vocational Training and Livelihoods (Subproject 14) CD ENE Development of International Center for Application of Solar Energy Technologies CD ENE Enhancing Readiness of the Railway Sector Investment Program as a Clean Development Mechanism Project CD TAI Enhancing Energy-Based Livelihoods for Women Micro-Entrepreneurs CD ENE Capacity Building for North Eastern State Roads Sector CD TAI Advanced Project Preparedness for Poverty Reduction – Capacity Building and Institutional Strengthening for the Assam Urban Infrastructure Investment Program (Subproject 15) CD WMS Himachal Pradesh Power Sector Capacity Development and Implementation Support CD ENE Advanced Project Preparedness for Poverty Reduction – Capacity Building for Bihar Urban Infrastructure Development (Subproject 16) CD WMS Advanced Project Preparedness for Poverty Reduction – Supporting Clean Village Environments for MDGs (Subproject 17) CD HSP Support to Jawaharlal Nehru National Solar Mission CD ENE Introducing Best Practices for Septage Management CD WMS Karnataka Integrated and Sustainable Water Resources Management Investment Program PP ANR Advanced Project Preparedness for Poverty Reduction – West Bengal North South Road Corridor (Subproject 18) PP TAI	500.00	– – – – – – – – – – – – – – – – – – – – – – – –	–	–	– – 600.00 SPCF 600.00 100.00 United Kingdom – – – – 750.00 ACEF 500.00 United Kingdom 400.00 United Kingdom – – – – 600.00 United Kingdom – 600.00 United Kingdom 600.00 United Kingdom – – – 1,100.00 United Kingdom	500.00
	500.00		–	–		500.00
	–		–	–		600.00
	–		–	–		600.00
	– 24.00 600.00 – 1,000.00 500.00 – – – 300.00 1,000.00 – – 600.00 – – 225.00 – 1,100.00 –		– – – – – – – – – – – – – – – – – – 100.00 –	– – – 500.00 – – – – 2,000.00 – – 1,200.00 – – – – – 700.00 – –		100.00 24.00 600.00 500.00 1,000.00 1,250.00 500.00 400.00 2,000.00 300.00 1,000.00 1,200.00 600.00 600.00 600.00 600.00 225.00 700.00 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 sector	tasF	RciF	ccF	JFpR	Others source	total
Advanced Project Preparedness for Poverty Reduction – Designing and Capacity Building for Strengthening State Finances and Service Delivery in West Bengal (Subproject 21) PP PSM Skills Development for Inclusive Growth CD EDU Advanced Project Preparedness for Poverty Reduction – State Roads (Subproject 20) PP TAI Advanced Project Preparedness for Poverty Reduction – Rajasthan Renewable Energy Transmission Program (Subproject 19) PP ENE Advanced Project Preparedness for Poverty Reduction – Rajasthan Urban Development Program (Subproject 22) PP WMS Subtotal indonesia Geothermal Power Development (Supplementary) PP ENE Strengthening National Public Procurement Processes (Supplementary) CD PSM Supporting Water Operators’ Partnerships (Supplementary) CD WMS Preparation of the Forest Investment Strategy CD ANR Institutional Capacity Building of Indonesia Eximbank CD FIN Strengthening Sanitation Planning and Efficiency Improvement CD MUL Water Resources and River Basin Management CD ANR Integrated Citarum Water Resources Management Investment Program Periodic Financing Request 2 PP ANR Implementing Effective Climate Change Adaptation Policy CD MUL Water Supply and Sanitation Sector Development CD WMS Improving Domestic Connectivity PA TAI Metropolitan Sanitation Management and Health II PP WMS Subtotal Kazakhstan Astana Light Rail Transit PP TAI Subtotal Kiribati Economic Management and Public Sector Reform (Supplementary) CD PSM Tarawa Sanitation Improvement (Supplementary) PP WMS Strengthened Public Financial Management CD PSM Subtotal Kyrgyz Republic Enabling Identification of Public–Private Partnership Projects and Capacity Building in the Kyrgyz Republic CD MUL Support for Strategic Assessment of the Kyrgyz Economy to Promote Inclusive Growth PA PSM Subtotal Lao people’s Democratic Republic National Integrated Water Resources Management Support CD ANR Strengthening the Capacity of the State Audit Organization CD PSM Renewable Energy Development in Remote Communities PP ENE	– 1,100.00 – – –	– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –	– – – – –	– – – – –	220.00 United Kingdom – 2,000.00 United Kingdom 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 – – 1,500.00 Australia 125.00 Australia – 1,625.00 – – – 3,600.00 Australia/ SPCF – –	220.00 1,100.00 2,000.00 225.00 750.00
	6,449.00		100.00	4,400.00		18,794.00
	– 225.00 – – – – – – – – – –		– – – – – – – – – – – –	– – – – – 1,000.00 1,800.00 1,500.00 700.00 – 500.00 1,000.00		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
	225.00		–	6,500.00		9,550.00
	565.00		–	–		565.00
	565.00		–	–		565.00
	– – 800.00		– – –	– – –		1,500.00 125.00 800.00
	800.00		–	–		2,425.00
	225.00 225.00		– –	– –		225.00 225.00
	450.00		–	–		450.00
	300.00 750.00 –		– – –	– – 1,000.00		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

Asian Development Bank Annual Report 2011

CONTINUED

ta type sector	tasF	RciF	ccF	JFpR	Others source	total
Strengthening Biodiversity Protection and Management in the Nam Ngum 3 Hydropower Project CD ENE Strengthening Urban Water Supply Regulation CD WMS Vientiane Sustainable Urban Transport PP TAI Strengthening Capacity for Enhanced Operational Effectiveness CD PSM Subtotal Malaysia Supporting the Tenth Malaysia Plan, 2011–2015 CD MUL Subtotal Maldives Institutional Strengthening for Economic Management (Supplementary) CD PSM Developing the Revenue Administration Management Information System CD PSM Capacity Development of the Maldives Energy Authority CD ENE Subtotal Marshall islands Supporting the Public Sector Program (Supplementary) PA PSM Subtotal Micronesia, Federated states of Strengthening Infrastructure Planning and Implementation CD MUL Subtotal Mongolia Strengthening Higher and Vocational Education (Supplementary) PP EDU Road Sector Capacity Development CD TAI Fifth Health Sector Development PP HSP Ulaanbaatar Urban Services and Ger Areas Development Investment Program PP WMS Government Bond Market Development PA FIN Subtotal nauru Regulatory and Governance Reform for Improving Water and Electricity Supply in Nauru CD WMS Subtotal nepal Strengthening the Town Development Fund Capacity for Public–Private Partnership (Supplementary) CD PSM Support for the Implementation of School Sector Reform Program (Supplementary) CD EDU Improving Access to Finance Sector Development Program PP FIN Scaling Up Small Hydro Power Projects PA ENE Scaling Up Micro and Mini Renewable Energy Initiatives PA ENE Building Climate Resilience of Watersheds in Mountain Eco-Regions PP ANR Gender-Focused Capacity Development in Clean Energy CD ENE Capacity Development for School Sector Program Implementation CD EDU Kathmandu Valley Urban Environment Improvement PP WMS	500.00 500.00 – 205.00	– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –	– – – –	– – 700.00 –	– – – – 3,600.00 – – – – – – – – – – – – – – 1,000.00 EAKPF/FSDP 1,000.00 – – – 190.00 Denmark – 160.00 SCF-SREP 215.00 SCF-SREP 900.00 SCF-PPCR – – –	500.00 500.00 700.00 205.00
	2,255.00		–	1,700.00		7,555.00
	1,000.00		–	–		1,000.00
	1,000.00		–	–		1,000.00
	225.00 500.00 400.00		– – –	– – –		225.00 500.00 400.00
	1,125.00		–	–		1,125.00
	300.00		–	–		300.00
	300.00		–	–		300.00
	–		–	700.00		700.00
	–		–	700.00		700.00
	11.00 – – – –		– – – – –	– 2,000.00 700.00 1,500.00 –		11.00 2,000.00 700.00 1,500.00 1,000.00
	11.00		–	4,200.00		5,211.00
	200.00		–	–		200.00
	200.00		–	–		200.00
	60.00 – – – – – 250.00 500.00 –		– – – – – – – – –	– – 600.00 – – – – – 700.00		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 sector	tasF	RciF	ccF	JFpR	Others source	total
Urban Transport Planning and Management CD TAI Skills Development PP EDU Strengthening Higher Engineering Education CD EDU Strengthening Municipalities for Urban Service Delivery CD WMS Mainstreaming Climate Change Risk Management in Development CD MUL Subtotal pakistan Capacity Building for the Flood Emergency Reconstruction Project CD MUL Subtotal papua new guinea Facilitating Public–Private Partnerships CD PSM Port Moresby Power Grid Development PP ENE Maritime and Waterways Safety PP TAI Major Bridges Study PA TAI Subtotal philippines Rural Community-Based Renewable Energy Development in Mindanao PA ENE Strengthening Public–Private Partnerships in the Philippines CD PSM Results-Oriented Strategic Planning and Development Management for Inclusive Growth CD PSM Support to Local Government Revenue Generation and Land Administration Reforms CD PSM Strengthening Institutions for an Improved Investment Climate PA IAT Strategic Policy Actions for Successful Structural Transformation and Inclusive Growth PA IAT Education Improvement Sector Development Program PP EDU Single Well Engineered Electrical Turbine System (SWEETS) Geothermal Power PP ENE Capacity Development for the Judiciary and Justice Sector Agencies CD PSM Capacity Development of Financial Regulators CD FIN Developing a Public–Private Earthquake Pool in the Philippines CD FIN Subtotal solomon islands State-Owned Enterprise Reform CD PSM Supporting the Implementation of the National Development Strategy CD PSM Renewable Energy for Telecom Networks CD TAI Subtotal sri Lanka Implementation of Energy Efficiency Policy Initiatives CD ENE Clean Energy and Network Efficiency Improvement PP ENE Colombo Water Supply Service Improvement PP WMS Local Government Service Enhancement CD WMS Subtotal	800.00 – 550.00 1,000.00 –	– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –	– – – – –	– 500.00 – – –	– – – – 7,163.00 SCF-PPCR 8,628.00 – – – – – – – 2,000.00 ACEF 8,200.00 Canada/ Australia – – – – – – – – – 10,200.00 – – – – 1,850.00 ACEF – – – 1,850.00	800.00 500.00 550.00 1,000.00 7,163.00
	3,160.00		–	1,800.00		13,588.00
	4,000.00		–	–		4,000.00
	4,000.00		–	–		4,000.00
	– 1,200.00 – 800.00		– – – –	800.00 – 600.00 –		800.00 1,200.00 600.00 800.00
	2,000.00		–	1,400.00		3,400.00
	– 1,500.00 – – – 225.00 1,500.00 425.00 1,000.00 – 225.00		– – – – – – – – – – –	– – 1,000.00 1,500.00 1,000.00 – – – – 1,000.00 –		2,000.00 9,700.00 1,000.00 1,500.00 1,000.00 225.00 1,500.00 425.00 1,000.00 1,000.00 225.00
	4,875.00		–	4,500.00		19,575.00
	225.00 600.00 450.00		– – –	– – –		225.00 600.00 450.00
	1,275.00		–	–		1,275.00
	– 1,000.00 700.00 540.00		– – – –	– – – –		1,850.00 1,000.00 700.00 540.00
	2,240.00		–	–		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

Asian Development Bank Annual Report 2011

CONTINUED

ta type sector	tasF	RciF	ccF	JFpR	Others source	total
tajikistan Strengthening Public Resource Management Program PA PSM Building Climate Resilience in the Pyanj River Basin PP ANR Subtotal thailand Waste to Energy PP ENE Enhancing Strategic Alignment in the Thailand–ADB Partnership PA MUL Southern Thailand Water Supply System PP WMS Support for Thailand’s Flood Management Knowledge Forum PA MUL Development of a Strategic Framework for Financial Inclusion PA FIN Subtotal timor-Leste District Capital Power Distribution PP ENE Strengthening Water Sector Management and Service Delivery CD WMS Subtotal tonga Outer Island Renewable Energy PP ENE Implementing Strategic Economic Management CD PSM Subtotal Uzbekistan CASAREM–Talimarjan Power Generation and Transmission (Supplementary) PP ENE CAREC Corridor 2 Road Investment Program II PP TAI Railway Electrification Investment Program PP TAI Design and Strengthening of the Solar Energy Institute CD ENE Amu Bukhara Irrigation System Rehabilitation PP ANR Solid Waste Management Investment Program PP WMS Solar Energy Development PA ENE Subtotal Vanuatu Port Vila Urban Development (Supplementary) PP WMS Establishment of the Maritime Safety Administration CD TAI Subtotal Viet nam Support for Public–Private Development of the O Mon Thermal Power Complex (Supplementary) PP ENE Da Nang Water Supply (Supplementary) PP WMS Capacity Building for River Basin Water Resources Planning (Supplementary) CD ANR Support for the National Target Program on Climate Change with a Focus on Energy and Transport PA ENE Central Mekong Delta Region Connectivity CD TAI Secondary Cities Development PP WMS Implementation and Monitoring of Song Bung 4 Hydropower Project Resettlement and Ethnic Minority Development Plan CD ENE Support to Central and Local Governments to Implement Urban Environmental Improvement Programs CD WMS	600.00 450.00	– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –	– –	– –	500.00 EAKPF 1,100.00 750.00 SCF-PPCR 1,200.00 1,250.00 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 – 600.00 – 220.00 – 225.00 225.00 SPCF 225.00 – 1,500.00 – 700.00 – 1,500.00 225.00 4,970.00 500.00 Australia 500.00 1,000.00 New Zealand 1,500.00 1,500.00 2,000.00 – 200.00 – 750.00 – 420.00 2,500.00 NDF 2,500.00 26,000.00 Australia 26,000.00 – 1,000.00 – 225.00 – 2,000.00	1,100.00 1,200.00
	1,050.00		–	–		2,300.00
	500.00 225.00 600.00 225.00 –		– – – – –	– – – – 1,500.00		500.00 225.00 600.00 225.00 1,500.00
	1,550.00		–	1,500.00		3,050.00
	225.00 1,200.00		– –	– –		225.00 1,200.00
	1,425.00		–	–		1,425.00
	– 675.00		– –	500.00 –		500.00 675.00
	675.00		–	500.00		1,175.00
	600.00 220.00 225.00 – – 700.00 1,500.00		– – – – – – –	– – – – 1,500.00 – –		600.00 220.00 225.00 225.00 1,500.00 700.00 1,500.00
	3,245.00		–	1,500.00		4,970.00
	– 500.00		– –	– –
	500.00		–	–		2,000.00
	200.00 750.00 420.00 – – 1,000.00 225.00 –		– – – – – – – –	– – – – – – – 2,000.00		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 Asia–South 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 sector	tasF	RciF	ccF	JFpR	Others source	total
Sustainable Urban Transport for Ho Chi Minh City MRT Line 2 PP TAI Strengthening Sustainable Urban Transport for Ha Noi Metro Line 3 PP TAI Financial Sector Deepening Program – Subprogram 1 PP FIN Improvement of Road Safety and Climate Resilience on National Highways PP TAI Second Greater Mekong Subregion Southern Coastal Corridor (Additional Financing) PP TAI Water Resources Development in the Mid- and Northeast Red River Delta PP ANR Energy Efficiency in the Industry PP ENE Productive Rural Infrastructure Development in the Central Highlands PP ANR Second Health Care in the Central Highlands PP HSP Strengthening Support for State-Owned Enterprise Reform and Corporate Governance Facilitation Program CD PSM Support to Improve Portfolio Performance and Aid Effectiveness CD PSM Subtotal all DMcs Regional Promoting Gender Equality and Women’s Empowerment (Supplementary) CD PSM Core Environment Program and Biodiversity Conservation Corridors Initiative in the Greater Mekong Subregion (Supplementary) RD ANR Managing the Cities in Asia (Supplementary) RD WMS Private Sector Development Initiative (Supplementary) PA PSM Energy Sector Strategy and Development 2007 (Supplementary) CD ENE Strengthening Central Asia Regional Economic Cooperation, 2007–2012 (Supplementary) PA PSM Supporting Strategic Knowledge Products and Research Networking (Supplementary) PA PSM Supporting the Achievement of the Millennium Development Goals in the Asia and Pacific Region, Phase III (Supplementary) RD PSM South Asia Subregional Economic Cooperation Transport Logistics and Trade Facilitation Project (Supplementary) PP TAI Integrated Trade Facilitation Support for Central Asia Regional Economic Cooperation (Supplementary) CD IAT Implementation of the Technical Support Facility under the Carbon Market Initiative (Supplementary) PP ENE Support for Implementation of the Second Governance and Anticorruption Action Plan (Supplementary) PA PSM Knowledge and Innovation Support for ADB’s Water Financing Program (Supplementary) CD ANR Establishment of the Pacific Infrastructure Advisory Center (Supplementary) PA MUL Trade Finance Capacity Development (Supplementary) CD FIN Greater Mekong Subregion Phnom Penh Plan for Development Management IV (Supplementary) CD PSM Asia Pacific Procurement Partnership Initiative (Supplementary) CD PSM	– – 600.00 – 1,000.00 – 800.00 1,000.00 600.00 1,200.00 800.00	– – – – – – – – – – – – – – – – – – – – – – 500.00 – – – – – – –	– – – – – – – – – – –	– – – 1,500.00 – 800.00 – – – – –	1,000.00 CTF 1,000.00 CTF – – – – – – – – – 30,500.00 86,758.00 – 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 –	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
	8,595.00		–	4,300.00		43,395.00
	80,759.20		1,450.00	36,400.00		205,367.20
	1,000.00 – – – 1,000.00 1,750.00 1,000.00 1,000.00 220.00 700.00 – – – – 2,500.00 – 300.00		– 1,000.00 – – – – – – – – – – – – – – –	– – – – – – – – – – – – – – – – –		1,000.00 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 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

Asian Development Bank Annual Report 2011

CONTINUED

	ta
	type	sector	tasF	RciF	ccF		JFpR	Others	source	total
Support for South Asia Regional Economic Cooperation
(Supplementary)	CD	MUL	225.00	–		–	–	–		225.00
Fourth High-Level Forum on Aid Effectiveness (Supplementary)	PA	PSM	400.00	–		–	–	1,129.62	HLF4/	1,529.62
									Canada
2011 International Comparison Program for Asia and the Pacific
(Supplementary)	RD	MUL	1,700.00	–		–	–	161.00	World Bank	1,861.00
Empowering the Poor through Increasing Access to Energy
(Supplementary)	PP	ENE	–	–		–	–	2,883.00	Switzerland/	2,883.00
									Austria
Strengthening the Coordination of the GMS Program
(Supplementary)	PA	MUL	500.00	–		–	–	–		500.00
Strengthening and Use of Country Safeguard Systems
(Supplementary)	CD	PSM	3,000.00	–		–	–	–		3,000.00
Determining the Potential for Carbon Capture and Storage in
Southeast Asia (Supplementary)	CD	ENE	–	–		–	–	350.00	CCS	350.00
Enabling Climate Change Responses in Asia and the Pacific –
Capacity Development to Address Climate Change (Subproject 3)
(Supplementary)	CD	MUL	–	–		–	–	100.00	Sweden	100.00
Greater Mekong Subregion: Corridor Towns Development
(Supplementary)	PP	WMS	–	–		–	–	900.00	SCF-PPCR/	900.00
									UEIF
Asia–Pacific Community of Practice on Managing for
Development Results – From Concept to Practice
(Supplementary)	CD	PSM	–	–		–	711.50	820.00	MfDRCF/	1,531.50
									EAKPF
Strengthening Coastal and Marine Resources Management in the
Coral Triangle of the Pacific (Phase 2) (Supplementary)	PA	ANR	–	–		–	–	18.18	GEF	18.18
Turkmenistan–Afghanistan–Pakistan–India Natural Gas Pipeline
(Phase 2) (Supplementary)	RD	ENE	300.00	–		–	–	–		300.00
Central Asia Regional Economic Cooperation – Transport and
Trade Facilitation: Border Crossing Point Improvement and
Single Window Development	PP	MUL	–	2,000.00		–	–	–		2,000.00
Supporting Development Partnerships in East Asia	PA	PSM	1,175.00	–		–	–	–		1,175.00
Employment, Trade, and Inclusive Growth in Asia	RD	MUL	500.00	–		–	–	–		500.00
Pacific Regional Information and Communications Technology
Connectivity (Phase 2)	PP	TAI	–	900.00		–	–	–		900.00
Capacity Building for Implementing Private Sector-Led Integration
in South Asia	CD	IAT	–	–		–	–	680.00	ICFF	680.00
Key Indicators for Asia and the Pacific 2011	RD	PSM	800.00	–		–	–	–		800.00
Implementing the Pacific Regional Audit Initiative	CD	PSM	–	–		–	1,300.00	–		1,300.00
Building Capacity for Statistics in the Pacific	CD	PSM	–	–		–	1,000.00	–		1,000.00
Promoting Energy Efficiency in the Pacific (Phase 2)	CD	ENE	1,000.00	–		–	–	7,754.55	GEF/	8,754.55
									Australia/
									ACEF
Implementing the Urban Operational Plan: Financing Investments
in Environmental Infrastructure	RD	ENE	605.00	–		–	–	–		605.00
Strengthening Support for the Asia–Pacific Economic
Cooperation Financial Regulators Training Initiative	CD	FIN	–	450.00		–	–	500.00	EAKPF	950.00
Coastal and Marine Resources Management in the Coral
Triangle – Southeast Asia	PA	ANR	1,000.00	–		–	–	11,218.18	GEF	12,218.18
Supporting and Enhancing Regional Surveillance for ASEAN+3
and the Chiang Mai Initiative Multilateralization	CD	PSM	–	–		–	–	1,140.00	ICFF	1,140.00
Developing a Disaster Risk Financing Capability	PA	FIN	–	–		–	2,000.00	–		2,000.00
Promotion of Good Practices in Information and
Communication Technology (ICT) for Education in Central and
West Asia Region	PA	EDU	225.00	–		–	–	–		225.00
Establishing the Asian International Economists Network	CD	IAT	1,100.00	–		–	–	–		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 People’s 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	sector	tasF	RciF		ccF		JFpR	Others	source	total
2011 CWRD Client Survey	CD	PSM	225.00		–		–	–	–		225.00
Enhancing Government Capacity for Effective Project Design
and Implementation	CD	PSM	1,300.00		–		–	–	–		1,300.00
Enhancing Gender Equality Results in South Asia Developing
Member Countries (Phase 2) (Subproject 2)	CD	WMS	500.00		–		–	–	–		500.00
Strengthening Climate Risk and Resilience Capacity of Pacific
Developing Member Countries, Phase 1	CD	MUL	–		–		–	–	750.00	SCF-PPCR	750.00
Capacity Building for the Efficient Utilization of Biomass for
Bioenergy and Food Security in the Greater Mekong Subregion	CD	MUL	–		–		–	–	4,000.00	NDF	4,000.00
Policy Support for Regional and Global Economic Cooperation	RD	MUL	225.00		–		–	–	–		225.00
Pacific Financial Technical Assistance Centre 2011–2014	CD	PSM	1,000.00		–		–	–	–		1,000.00
Assessment and Implications of Rationalizing and Phasing Out
Fossil-Fuel Subsidies	RD	ENE	1,000.00		–		–	–	–		1,000.00
Enhancing Knowledge on Climate Technology and
Financing Mechanisms	CD	MUL	–		–		–	–	1,500.00	ACEF	1,500.00
Regional Program for Research and Capacity Development on
Water Security	RD	ANR	–		–		–	–	500.00	PRC RPRF	500.00
Support for Implementing the Action Plan for Transport
and Trade Facilitation in the Greater Mekong Subregion
(Subproject 1)	PA	IAT	–		–		–	–	2,000.00	Australia	2,000.00
Nineteenth Tax Conference	CD	PSM	–		–		–	200.00	–		200.00
Afghanistan and Turkmenistan: Regional Power Interconnection	PP	ENE	1,300.00		–		–	–	–		1,300.00
Learning from e-learning: Testing Intelligent Learning Systems in
South Asian Countries	RD	EDU	225.00		–		–	–	–		225.00
Asian Development Outlook 2012	RD	PSM	1,000.00		–		–	–	–		1,000.00
Financial Regulatory Reforms in Asia	RD	FIN	–		–		–	–	800.00	EAKPF/FSDP	800.00
Korea–ADB Conference on Knowledge Sharing and Development
Effectiveness in the Asia and Pacific Region	CD	TAI	–		–		–	–	124.00	EAKPF	124.00
Policies to Meet Global Economic Challenges - Asia’s Perspective	RD	PSM	1,245.00		–		–	–	–		1,245.00
Asian Bonds Online Website, Phase IV	RD	FIN	1,500.00		–		–	–	–		1,500.00
Education and Skills for Inclusive Growth and Green Jobs	RD	EDU	950.00		–		–	–	–		950.00
Disbursement, Loan Accounting/Servicing Training and Seminars
for DMCs	CD	PSM	225.00		–		–	–	–		225.00
Selected Evaluation Studies for 2011	RD	MUL	1,300.00		–		–	–	–		1,300.00
Support to Achieve the ASEAN Economic Community and
Accelerate the Narrowing of Development Gaps by 2015	PA	MUL	225.00		–		–	–	–		225.00
Collaborative Research and Advisory Services on Public Sector
Management	CD	PSM	500.00		–		–	–	–		500.00
Developing the Services Sector as an Engine for Inclusive Growth	RD	MUL	–		–		–	–	500.00	EAKPF	500.00
Enhancing Knowledge Sharing and South–South Cooperation
between Asia and Latin America	RD	MUL	1,000.00		–		–	–	–		1,000.00
Strengthening Regulatory Capacity for Information and
Communication Technology Development in the Pacific	CD	TAI	750.00		–		–	–	–		750.00
Regional Forum on Public Sector Accounting	CD	PSM	–		–		–	–	500.00	EAKPF	500.00
Strengthening Economic Assessment Capacity for Asia and the
Pacific Region	RD	MUL	650.00		–		–	–	–		650.00
Assessment of Power Sector Reform in Asia and the Pacific	RD	ENE	714.00		–		–	–	–		714.00
Drivers of Poverty Reduction in Asia and the Pacific	RD	PSM	225.00		–		–	–	–		225.00
Broadening the Scope of Asian Bond Market Initiative
under ASEAN+3	RD	FIN	–		–		–	–	145.00	EAKPF	145.00
Solid Waste Management in the Pacific	RD	WMS	450.00		–		–	–	–		450.00
Harnessing Climate Change Mitigation Initiatives
to Benefit Women	CD	MUL	–		–		–	–	2,700.00	NDF	2,700.00
Asia Regional Integration Center, Phase IV	RD	MUL	1,480.00		–		–	–	–		1,480.00
Support to Urban Infrastructure Development and Financing	CD	MUL	–		–		–	–	1,700.00	UEIF	1,700.00
Supporting Water Operators’ Partnerships in Asia and the Pacific	CD	WMS	–		–		–	2,000.00	–		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 People’s 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 = People’s 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

Asian Development Bank Annual Report 2011

CONTINUED

	ta
	type	sector	tasF	RciF	ccF	JFpR	Others	source	total
Asian Development Review 2012–2013	RD	MUL	500.00	–	–	–	–		500.00
Sovereign Debt Crises in the US and the Eurozone: Potential
Regional Impacts on Asia	PA	PSM	225.00	–	–	–	–		225.00
Preparing a Water Supply and Sanitation Handbook for
Southeast Asia	RD	WMS	–	–	–	–	225.00	MDTF-WFPF	225.00
Addressing Disaster Risk through Improved Indicators and Land
Use Management	RD	PSM	700.00	–	–	–	–		700.00
Promotion of Capital Market Instruments for Infrastructure
Financing in the ASEAN	CD	FIN	150.00	–	–	–	–		150.00
Smart Grid Capacity Development	CD	ENE	–	–	–	1,400.00	–		1,400.00
Support for ASEAN Leaders Forum on Human Resource
Development Towards an Integrated ASEAN Community	PA	EDU	225.00	–	–	–	–		225.00
Improving Employment Outcomes	RD	EDU	800.00	–	–	–	–		800.00
Innovations for More Food with Less Water	RD	ANR	–	–	–	1,400.00	–		1,400.00
Establishing Global Research Alliances (Phase 2)	RD	MUL	1,000.00	–	–	–	–		1,000.00
Quantum Leap in Wind Power Development in
Asia and the Pacific	CD	ENE	–	–	–	–	2,000.00	ACEF	2,000.00
Enabling Climate Change Responses in Asia and the Pacific –
Disaster Risk Finance for Total Climate Risk (Subproject 6)	PA	FIN	–	–	–	1,000.00	–		1,000.00
Core Environment Program and Biodiversity Conservation
Corridors Initiative in the Greater Mekong Subregion, Phase 2	CD	ANR	800.00	–	–	–	14,000.00	Finland	14,800.00
Support for Pan-Beibu Gulf Economic Cooperation	PA	MUL	400.00	–	–	–	500.00	PRC RPRF	900.00
Improving Agricultural and Rural Statistics for Food Security	PA	ANR	500.00	–	–	–	–		500.00
Strengthening Capacity of Developing Member Countries
in Resource Mobilization and Implementation of
Cofinanced Projects	CD	MUL	500.00	–	–	–	–		500.00
Lessons from DMC Project Processing Practices	PA	PSM	200.00	–	–	–	–		200.00
Strengthening Knowledge-Driven Development in South Asia	CD	MUL	1,500.00	–	–	–	–		1,500.00
Support for the Bay of Bengal Initiative for Multi-Sectoral
Technical and Economic Cooperation II (BIMSTEC - II)	CD	MUL	750.00	–	–	–	–		750.00
South Asia Road Safety Programs (Phase 1: Kingdom of Bhutan
and Nepal)	CD	TAI	700.00	–	–	–	–		700.00
Innovative Financing for Agriculture and Food Value Chains	RD	ANR	1,500.00	–	–	–	–		1,500.00
Master Plan on ASEAN Connectivity Implementation	CD	MUL	–	–	–	–	975.00	JAIF	975.00
Support for Regional Multisector Investment Framework for
Greater Mekong Subregion Development (Phase 1)	PA	MUL	1,000.00	500.00	–	–	–		1,500.00
Provision of Environment Technical Services	CD	MUL	97.00	–	–	–	–		97.00
Strengthening Evaluation of Poverty Reduction Innovations	CD	MUL	950.00	–	–	–	–		950.00
Support Capacity Building of Local Issuing Banks and Trade
Finance Market Development	CD	IAT	200.00	–	–	–	–		200.00
Asia–Pacific Trade Facilitation Forum 2012	CD	IAT	225.00	–	–	–	–		225.00
Implementation of Sustainable Transport in Asia and the Pacific –
Better Transport Data for Sustainable Transport Policies and
Investment Planning (Subproject 1)	CD	TAI	1,000.00	–	–	–	–		1,000.00
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)	PA	MUL	842.00	–	950.00	–	1,500.00	ACEF	3,292.00
Asia Life Sciences Fund	PP	HSP	1,500.00	–	–	–	–		1,500.00
SASEC Subregional Energy Efficiency Initiative	CD	ENE	225.00	–	–	–	–		225.00
Developing Water Resources Sector Strategies in
Central and West Asia	PA	ANR	1,000.00	–	–	–	500.00	MDTF-WFPF	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 = Japan–ASEAN 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 = People’s 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 sector	tasF	RciF	ccF	JFpR	Others source	total
Impact Evaluation of Selected Projects in South Asia (Phase 2) CD MUL Promoting Financially Sustainable Regulatory Framework for Water Tariff in South Asia CD WMS Strengthening South Asian Developing Member Countries’ Capacity and Coordination for Mainstreaming Green Growth and Climate Change Resilience CD MUL Supporting Evaluation Capacity Development and Networking in Selected Developing Member Countries CD PSM Supporting Public Management through e-Government Capacity Development CD PSM Support for the Preparation of Harmonized Regional Cross- Sector and Thematic Assessments, Strategies, and Roadmaps for a Regional Cooperation Strategy for Southeast Asia, 2013–2015 PA MUL all Regional tOtaL	225.00 1,000.00 225.00 400.00 – 195.00 59,523.00	– – – – – – 4,350.00 4,350.00	– – – – – – 1,950.00	– – – – – – 11,011.50	– – – – 500.00 EAKPF – 77,187.96 163,945.96	225.00 1,000.00 225.00 400.00 500.00 195.00 154,022.46
	140,282.20		3,400.00	47,411.50		359,389.66

– = 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] 1967–2011, 2010, 2011 (amounts in $ thousand)

TECHNICAL ASSISTANCE GRANTS BY SECTO (amounts in $ thousand)	R,a, b1967–2011, 2010, 2011
	1967–2011 no. $ thousand %	2010 no. $ thousand %	2011 no. $ thousand %
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	1,550 981,463.01 21.86 366 229,020.82 5.10 740 447,232.53 9.96 715 348,715.96 7.77 270 178,596.42 3.98 383 182,702.55 4.07 1,739 983,019.03 21.89 868 509,619.12 11.35 533 324,206.67 7.22 255 305,642.37 6.81	38 45,878.00 14.15 11 55,275.00 17.04 46 37,865.00 11.67 26 18,640.00 5.75 9 3,740.00 1.15 8 7,781.25 2.40 63 48,482.15 14.95 37 24,713.00 7.62 25 20,910.00 6.45 68 61,053.00 18.82	32 70,997.45 19.76 15 8,801.00 2.45 54 52,655.55 14.65 20 19,570.00 5.45 5 4,300.00 1.20 8 6,630.00 1.84 67 55,050.67 15.32 42 57,624.00 16.03 35 27,795.00 7.73 49 55,966.00 15.57
tOtaL	7,419 4,490,218.47 100.00	331 324,337.40 100.00	327 359,389.66 100.00

ICT = information and communication technology.

a Excludes technical assistance financed under loans that are included in ADB’s loan data and regional activities. b Data are adjusted to exclude technical assistance projects withdrawn by governments.

279

Asian Development Bank Annual Report 2011

Statistical Annex 18

NET TRANSFER OF RESOURCES

(ORDINARY CAPITAL RESOURCES, ASIAN DEVELOPMENT FUND, AND OTHER SPECIAL FUNDS GRANTS) , 2009–2011 ($ million)

(ORDINARY CAPITAL RESOURCES, ASI ($ million)	AN DEVELOPMENT FUND, AND	OTHER SPECIAL FUNDS GRANTS)	, 2009–2011
country	OcRa 2009 2010 2011	aDFb 2009 2010 2011	grantsc
			2009 2010 2011
Afghanistan Armenia Azerbaijan Bangladesh Bhutan Cambodia China, People’s Republic of Cook Islands Fiji Georgia Hong Kong, China India Indonesia Kazakhstan Kiribati Korea, Republic of Kyrgyz Republic Lao People’s 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	4.95 (21.00) (29.94) – 23.62 42.05 34.58 34.84 109.77 667.08 133.03 19.18 8.02 20.91 14.93 (0.63) (0.43) (3.09) 903.19 929.14 1,015.11 – 9.98 5.53 (1.58) 9.94 13.92 (9.65) 107.41 22.85 – – – 1,164.77 1,398.51 1,054.59 (409.30) (75.42) (570.45) 512.07 18.18 264.16 – – – (30.40) (34.81) (22.88) – – – (2.27) (1.22) (4.00) (53.20) (27.81) (24.97) 6.01 1.75 (1.77) (0.68) (0.43) (0.44) – (0.00) 2.04 (4.32) (2.76) (2.63) – – – (0.13) (0.26) (0.40) (5.91) (6.79) (4.04) 338.97 184.45 85.46 – – 6.40 22.38 7.57 (1.52) 967.70 (280.93) (157.27) – – – – – – – – – 72.95 169.80 135.52 – – – – – – (10.43) 11.14 255.97 – – – – – – – – – – – – 69.34 12.15 17.00 – – – 652.43 137.82 379.30 (1.88) 138.60 65.92	69.22 59.60 35.95 119.05 20.97 17.78 14.73 4.65 (0.84) 93.15 15.29 (10.17) 18.00 14.71 7.31 38.61 25.57 39.12 – – – (1.24) (0.41) 2.39 – – – 110.83 36.20 39.74 – – – – – – 77.70 53.01 23.10 (0.27) (0.27) (0.29) (0.50) (0.50) 0.22 – – – 5.70 (14.85) 14.19 (3.66) (23.49) (42.98) – – – 2.99 22.54 3.23 (3.28) 6.88 (3.04) (0.63) (0.85) 2.22 37.55 (5.95) (9.01) – – – – – – (1.00) (0.43) (12.69) 152.46 17.52 (304.47) – – 3.47 (12.17) (8.43) (10.00) (48.03) (49.18) (60.03) 1.61 20.39 4.07 – – – (3.45) (3.33) (3.61) 34.53 (9.89) (44.46) – – – 59.86 29.42 7.60 (46.67) – – – – – (1.59) (1.96) (2.66) – – – 0.07 0.01 (0.43) 18.40 35.81 59.41 (1.98) (2.17) (2.40) 364.23 138.12 243.18 0.43 0.14 (0.02)	45.12 170.07 77.88 – – – – – – 1.24 2.31 0.71 4.63 17.59 12.95 21.58 17.87 49.96 – 0.20 0.67 – – – – – – – – – – – – 16.65 2.73 – 59.27 51.50 5.32 – – – – – – – – – 21.18 20.36 64.13 33.02 35.28 56.88 – – – 0.36 (0.77) 0.07 – – – – – – 19.09 18.31 15.57 – – – – – – 126.04 31.26 132.59 15.87 22.34 12.74 – – – 2.56 3.61 2.89 3.00 – 3.00 3.90 2.47 3.62 – – – 0.95 10.38 14.51 41.43 26.26 13.45 – – – 44.18 12.22 55.31 – – – 3.30 1.51 2.99 1.02 5.65 7.08 – – – 1.24 – 2.00 – – – – – – 10.19 6.81 4.79 5.98 1.59 5.01
tOtaLc	4,894.05 2,896.97 2,686.31	1,094.67 379.10 (4.15)	481.80 459.53 544.14

• = 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] 2002–2011 ($ million)

(ORDINARY CAPITAL RESOURCES, AS ($ million)	IAN DEVELOPMENT F	UND, AND OTH	ER SPECIAL FU	NDS GRANTS)	,a2002–2011
	2002–2006
country	average	2007	2008	2009	2010	2011
Afghanistan	62.83	129.82	63.14	119.29	208.67	83.90
Armenia	–	–	8.03	119.05	44.58	59.83
Azerbaijan	1.69	55.33	11.49	49.31	39.49	108.93
Bangladesh	69.70	99.26	326.55	761.48	150.63	9.73
Bhutan	6.42	6.43	3.67	30.65	53.21	35.19
Cambodia	68.25	52.81	127.38	59.56	43.01	85.99
China, People’s Republic of	(232.38)	607.60	703.60	903.19	929.34	1,015.78
Cook Islands	0.20	(0.72)	0.40	(1.24)	9.57	7.92
Fiji	2.59	1.89	1.69	(1.58)	9.94	13.92
Georgia	–	24.75	68.10	101.18	143.61	62.59
Hong Kong, China	–	–	–	–	–	–
India	(323.17)	1,194.88	1,268.09	1,181.42	1,401.25	1,054.59
Indonesia	(50.57)	313.35	1.28	(272.33)	29.08	(542.03)
Kazakhstan	(33.72)	(14.17)	(47.30)	511.80	17.91	263.87
Kiribati	1.31	(0.25)	(0.29)	(0.50)	(0.50)	0.22
Korea, Republic of	(820.34)	(20.47)	(26.23)	(30.40)	(34.81)	(22.88)
Kyrgyz Republic	31.61	25.00	33.45	26.89	5.51	78.32
Lao People’s Democratic Republic	49.04	66.46	25.34	27.08	10.57	9.90
Malaysia	(59.56)	(37.11)	(51.10)	(53.20)	(27.81)	(24.97)
Maldives	5.51	8.70	4.56	9.36	23.52	1.52
Marshall Islands	2.24	(2.85)	(1.71)	(3.96)	6.45	(3.48)
Micronesia, Federated States of	1.46	2.83	2.27	(0.63)	(0.86)	4.26
Mongolia	25.93	11.34	16.52	52.32	9.61	3.93
Myanmar	(0.29)	–	–	–	–	–
Nauru	–	–	(2.32)	(0.13)	(0.26)	(0.40)
Nepal	2.91	43.32	51.92	119.13	24.04	115.86
Pakistan	(7.28)	576.10	1,423.88	507.30	224.31	(206.27)
Palau	–	–	–	–	–	9.87
Papua New Guinea	(18.64)	(34.65)	(11.91)	12.76	2.74	(8.62)
Philippines	(67.60)	45.88	195.01	922.66	(330.12)	(214.29)
Samoa	(0.91)	(2.47)	(1.23)	5.52	22.85	7.69
Singapore	–	–	–	–	–	–
Solomon Islands	(0.04)	1.72	(1.86)	(2.50)	7.04	10.90
Sri Lanka	125.97	64.02	162.31	148.92	186.16	104.50
Taipei,China	–	–	–	–	–	–
Tajikistan	21.26	36.90	49.33	104.05	41.64	62.92
Thailand	(461.32)	(55.06)	(18.19)	(57.10)	11.14	255.97
Timor-Leste	0.20	0.45	5.25	3.30	1.51	2.99
Tonga	1.02	(1.55)	(1.11)	(0.57)	3.69	4.42
Turkmenistan	–	–	–	–	–	–
Tuvalu	0.25	1.07	0.28	1.31	0.01	1.57
Uzbekistan	43.29	12.78	9.52	87.74	47.95	76.40
Vanuatu	(0.80)	(1.28)	(1.74)	(1.98)	(2.17)	(2.40)
Viet Nam	197.72	169.44	182.92	1,026.85	282.76	627.27
Regional	(4.43)	9.60	26.76	4.53	140.32	70.91
tOtaLb	(1,359.63)	3,391.11	4,607.70	6,470.52	3,735.59	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

Asian Development Bank Annual Report 2011

Statistical Annex 20

ASIAN DEVELOPMENT FUND RESOURCES AND COMMITMENT AUTHORITY

ADF-CONTRIBUTED RESOURCES

($ million; as of 31 December 2011)

ADF-CONTRIBUTED RESOURCES ($ million; as of 31 December 2011)
country Valued as of 31 December 2010 ($ million)	change in 2011 addition ($ equivalent) Exchange Rate adjustment ($ equivalent) net change ($ million)	Valued as of 31 December 2011 ($ equivalent) (SDR equivalent)a
Australia 1,446.34 Austria 271.73 Belgium 233.27 Brunei Darussalam 11.85 Canada 1,709.31 China, People’s Republic of 42.49 Denmark 273.59 Finland 152.02 France 1,346.78 Germany 1,920.97 Hong Kong, China 66.53 Indonesia 14.96 Ireland 47.91 Italy 865.64 Japan 18,454.46 Korea, Republic of 273.69 Luxembourg 47.12 Malaysia 15.18 Nauru 0.30 The Netherlands 799.42 New Zealand 100.76 Norway 202.05 Portugal 99.04 Singapore 11.42 Spain 409.65 Sweden 305.29 Switzerland 467.00 Taipei,China 70.64 Thailand 10.69 Turkey 109.50 United Kingdom 1,016.75 United States 3,587.21	81.15 42.81 123.96 9.19 (7.59) 1.61 6.79 (6.13) 0.67 1.32 – 1.32 49.72 0.77 50.48 9.66 – 9.66 5.05 – 5.05 7.35 (4.47) 2.88 4.64 (31.91) (27.27) 5.27 (47.98) (42.71) 6.03 – 6.03 – – – 9.42 (1.99) 7.43 26.61 (22.37) 4.24 515.89 1,121.37 1,637.26 33.15 9.46 42.60 0.95 (1.18) (0.24) 1.51 0.27 1.78 – – – 22.87 (20.95) 1.93 24.39 2.80 27.19 10.84 0.89 11.73 1.17 (2.50) (1.33) 1.52 0.11 1.63 27.87 (12.70) 15.17 15.18 1.42 16.60 15.98 1.79 17.77 5.57 0.00 5.57 0.93 0.19 1.12 1.03 (0.01) 1.02 40.54 6.77 47.31 96.55 (0.00) 96.55	1,570.30 1,022.82 273.34 178.04 233.93 152.37 13.17 8.58 1,759.79 1,146.24 52.14 33.96 278.64 181.49 154.90 100.89 1,319.51 859.46 1,878.26 1,223.41 72.56 47.26 14.96 9.74 55.34 36.05 869.87 566.59 20,091.72 13,086.77 316.30 206.02 46.88 30.53 16.97 11.05 0.30 0.20 801.35 521.96 127.95 83.34 213.79 139.25 97.71 63.65 13.05 8.50 424.82 276.71 321.89 209.66 484.77 315.76 76.21 49.64 11.81 7.70 110.51 71.98 1,064.05 693.07 3,683.76 2,399.42
tOtaL 34,383.56	1,038.15 1,028.87 2,067.02	36,450.58 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 AUTHORITY[a]

31 December 2011 and 2010

($ million)

ADF COMMITMENT AUTHORITYa 31 December 2011 and 2010 ($ million)
item	2011	2010
Carryover of ADF IX Commitment Authorityb	121.6	122.0
ADF X Contributions	2,818.2c	1,802.1
ADF IX Contributions	135.1d	111.8
ADF VIII Contributions	8.2e	8.2
Reflow-based Resources	5,886.6f	4,520.8
OCR Net Income Transfer	360.0	240.0
Savings and Cancellations	830.5	650.0
Credits from Accelerated Note Encashment Program	0.9g	–
Total ADF X Commitment Authority	10,161.2	7,454.8
Loans and Grants Committed	8,789.9	6,306.6
ADF Commitment Authority Available for Future Commitments	1,371.3	1,148.2

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) Italy’s full payment of the balance of its contribution.

e Represents 99.16% of Austria’s 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 Italy’s ADF IX contribution.

282

Statistical Annexes

Statistical Annex 21

TECHNICAL ASSISTANCE SPECIAL FUND ($ thousand; as of 31 December 2011)

Statistical Annex 21 TECHNICAL ASSISTANCE SPECIAL FUND ($ thousand; as of 31 December 2011)
	total contributions	amount Utilized
Direct Voluntary contributions
Australia	2,484	2,484
Austria	159	159
Bangladesh	47	47
Belgium	1,394	1,394
Canada	3,346	3,346
China, People’s Republic of	1,600	1,600
Denmark	1,963	1,963
Finland	237	237
France	1,697	1,697
Germany	3,315	3,315
Hong Kong, China	100	100
India	3,948	3,948
Indonesia	250	250
Italy	774	774
Japan	47,710	47,710
Korea, Republic of	1,900	1,900
Malaysia	909	909
The Netherlands	1,338	1,338
New Zealand	1,096	1,096
Norway	3,279	3,279
Pakistan	1,876	1,876
Singapore	1,100	1,100
Spain	190	190
Sri Lanka	6	6
Sweden	862	862
Switzerland	1,035	1,035
Taipei,China	200	200
United Kingdom	5,617	5,617
United States	1,500	1,500
Subtotal	89,932	89,932
Regularized Replenishment contributionsa	762,751	643,915
transfer to asian Development Fund	(3,472)	(3,472)
allocation from Ordinary capital Resources net incomeb	995,588	889,313
Subtotal	1,754,867	1,529,756
tOtaL	1,844,799	1,619,688

( ) = 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

Asian Development Bank Annual Report 2011

Statistical Annex 22

JAPAN SPECIAL FUND—Regular and Supplementary Contributions Statement of Activities and Change in Net Assets

($ million)

Statement of Activities and Change in Net Assets ($ million)	Statement of Activities and Change in Net Assets ($ million)
1988–2005a			2006	2007	2008	2009	2010	2011	total
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 (1.0) 862.4 (25.1) (12.5) 146.8		24.5	27.7	17.4	–	–	– 0.2 0.2 – (4.4) (0.0) – 4.6	973.7 174.8 1,148.5 (1.0) 1,052.5 (25.1) (12.5) 57.4
			10.7	12.0	6.6	1.2	0.4
			35.2	39.7	24.0	1.2	0.4
			–	–	–	–	–
			51.1	33.7	55.1	39.2	15.4
			(0.1)	–	0.2	(0.1)	(0.0)
			–	–	–	–	–
			(16.0)	6.0	(30.9)	(38.1)	(15.0)

– = 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 FUND—Asian Currency Crisis Support Facility Statement of Activities and Change in Net Assets

($ million)

Statement of Activities and Change in Net Assets ($ million)	Statement of Activities and Change in Net Assets ($ million)
1999–2006			2007	2008	2009	2010	2011	total
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		–	–	–	–	– 0.1 0.1 – – 0.0 – – 0.1	241.0 9.3 250.3 (90.0) 33.2 128.8 (1.7) (26.3) 36.7
			1.8	1.1	0.2	0.1
			1.8	1.1	0.2	0.1
			–	–	–	–
			–	–	–	–
			–	(0.4)	(0.2)	0.0
			–	–	–	–
			–	–	–	–
			1.8	1.5	0.4	0.1

– = 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)

Statistical Annex 24 PROJECTS WITH ADB-ADMINISTERED GRANT COFINANCING, 2011 ($ thousand)
source of cofinancing project name		amount technical assistance project component
		technical assistance
BiLatERaLs,aproject specific australia BAN Third Primary Education Development CAM Supporting Policy and Institutional Reforms and Capacity Development in the Water Sector (2nd Supplementary) INO Geothermal Power Development (Supplementary) INO Supporting Water Operators’ Partnerships (Supplementary) KIR Economic Management and Public Sector Reform (Supplementary) KIR South Tarawa Sanitation Improvement Sector LAO National Integrated Water Resources Management Support NEP School Sector Program PHI Strengthening Public–Private Partnerships in the Philippines PNG Rural Primary Health Services Delivery TON Nuku’alofa Urban Sector Development VAN Port Vila Urban Development VIE Central Mekong Delta Region Connectivity REG Establishment of the Pacific Infrastructure Advisory Center (Supplementary) REG Establishment of the Pacific Infrastructure Advisory Center (2nd Supplementary) REG Support for Implementing the Action Plan for Transport and Trade Facilitation in the Greater Mekong Subregion (Subproject 1) Subtotal austria REG Empowering the Poor through Increasing Access to Energy (2nd Supplementary) REG Implementation of the Technical Support Facility under the Carbon Market Initiative (Supplementary) Subtotal canada BAN Third Primary Education Development PHI Strengthening Public–Private Partnerships in the Philippines REG Fourth High-Level Forum on Aid Effectiveness (4th Supplementary) Subtotal Denmark AFG Energy Sector Development Investment Program – Tranche 3 BAN Capacity Building of the Anti Corruption Commission NEP School Sector Program NEP Support for the Implementation of School Sector Reform Program (Supplementary) Subtotal Finland NEP School Sector Program REG Core Environment Program and Biodiversity Conservation Corridors Initiative in the Greater Mekong Subregion, Phase 2 Subtotal		4,550.00 225.00 425.00 1,500.00 3,000.00 7,000.00 26,000.00 1,178.00 1,500.00 2,000.00 47,378.00 2,750.00 550.00 3,300.00 1,200.00 98.00 1,298.00 110.00 190.00 300.00 14,000.00 14,000.00	35,000.00 13,950.00 15,600.00 40,000.00 6,440.00 25,600.00 136,590.00 65,000.00 65,000.00 12,400.00 17,900.00 30,300.00 13,200.00 13,200.00

AFG = Afghanistan, BAN = Bangladesh, CAM = Cambodia, INO = Indonesia, KIR = Kiribati, LAO = Lao People’s 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

Asian Development Bank Annual Report 2011

CONTINUED

source of cofinancing project name		amount technical assistance project component	amount technical assistance project component
		technical assistance
germany BAN City Region Development Subtotal Japan BAN Third Primary Education Development Subtotal new Zealand VAN Establishment of the Maritime Safety Administration VAN Interisland Shipping Support Subtotal norway NEP Electricity Transmission Expansion and Supply Improvement NEP School Sector Program Subtotal spain GEO Developing a Geospatial Urban Water Supply and Sanitation Utility Management System (Supplementary) LAO National Integrated Water Resources Management Support UZB Design and Strengthening of the Solar Energy Institute Subtotal sweden BAN Third Primary Education Development REG Core Environment Program and Biodiversity Conservation Corridors Initiative in the Greater Mekong Subregion (Supplementary) REG Enabling Climate Change Responses in Asia and the Pacific – Capacity Development to Address Climate Change (Subproject 3) (Supplementary) REG Managing the Cities in Asia (Supplementary) Subtotal switzerland NEP Decentralized Rural Infrastructure and Livelihood (Additional Financing) REG Empowering the Poor through Increasing Access to Energy (Supplementary) Subtotal United Kingdom AFG Energy Sector Development Investment Program – Tranche 3 BAN Third Primary Education Development IND Advanced Project Preparedness for Poverty Reduction – Water Users Association Empowerment for Improved Irrigation Management in Chhattisgarh (Subproject 5) (Supplementary) IND Advanced Project Preparedness for Poverty Reduction – Rajasthan Solar Park Capacity Development (Subproject 13) IND Advanced Project Preparedness for Poverty Reduction – Gujarat Solar Vocational Training and Livelihoods (Subproject 14) IND Advanced Project Preparedness for Poverty Reduction – Capacity Building and Institutional Strengthening for the Assam Urban Infrastructure Investment Program (Subproject 15)		1,000.00 1,000.00 600.00 600.00 225.00 1,425.00 1,086.08 100.00 2,330.00 3,516.08 133.00 133.00 100.00 500.00 400.00 600.00	14,860.00 14,860.00 30,000.00 30,000.00 12,600.00 12,600.00 25,000.00 22,400.00 47,400.00 45,000.00 45,000.00 7,060.00 7,060.00 20,000.00 190,000.00

AFG = Afghanistan, BAN = Bangladesh, GEO = Georgia, IND = India, LAO = Lao People’s 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

source of cofinancing project name		amount technical assistance project component	amount technical assistance project component
		technical assistance
IND Advanced Project Preparedness for Poverty Reduction – Capacity Building for Bihar Urban Infrastructure Development (Subproject 16) IND Advanced Project Preparedness for Poverty Reduction – Supporting Clean Village Environments for MDGs (Subproject 17) IND Advanced Project Preparedness for Poverty Reduction – West Bengal North South Road Corridor (Subproject 18) IND Advanced Project Preparedness for Poverty Reduction – Rajasthan Renewable Energy Transmission Program (Subproject 19) IND Advanced Project Preparedness for Poverty Reduction – State Roads (Subproject 20) IND Advanced Project Preparedness for Poverty Reduction – Designing and Capacity Building for Strengthening State Finances and Service Delivery in West Bengal (Subproject 21) IND Advanced Project Preparedness for Poverty Reduction – Rajasthan Urban Development Program (Subproject 22) NEP Establishing Women and Children Service Centers (Supplementary) NEP School Sector Program Subtotal singLE DOnOR tRUst FUnDsb australia–carbon 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 australia–pacific 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 people’s 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 Japan–asian clean Energy Fund under the clean Energy Financing partnership Facility BAN Public–Private 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		600.00 600.00 1,100.00 225.00 2,000.00 220.00 750.00 7,095.00 1,800.00 350.00 2,150.00 125.00 1,000.00 1,125.00 500.00 79.35 579.35 500.00 500.00 1,000.00 975.00 975.00 750.00 1,100.00 2,000.00	200.00 4,000.00 214,200.00 4,040.00 5,400.00 9,440.00 2,000.00

ASEAN = Association of Southeast Asian Nations, BAN = Bangladesh, IND = India, INO = Indonesia, KIR = Kiribati, MDG = Millennium Development Goal, NEP = Nepal, PHI = Philippines, PRC = People’s 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

Asian Development Bank Annual Report 2011

CONTINUED

source of cofinancing project name		amount technical assistance project component	amount technical assistance project component
		technical assistance
SRI Implementation of Energy Efficiency Policy Initiatives REG Enhancing Knowledge on Climate Technology and Financing Mechanisms REG 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) REG Promoting Energy Efficiency in the Pacific (Phase 2) REG Quantum Leap in Wind Power Development in Asia and the Pacific Subtotal Japan Fund for poverty Reduction BAN Institutional Support for Migrant Workers’ Remittance BAN Skills for Employment BAN Strategic Master Plan for Chittagong Port BAN Strengthening the Resilience of the Urban Water Supply, Drainage, and Sanitation to Climate Change in Coastal Towns BHU Advancing Economic Opportunities of Women and Girls BHU Green Power Development II CAM Improving Market Access for the Poor in Central Cambodia FSM Strengthening Infrastructure Planning and Implementation IND Capacity Building for North Eastern State Roads Sector IND Development of International Center for Application of Solar Energy Technologies IND Himachal Pradesh Clean Energy Transmission Investment Program IND Introducing Best Practices for Septage Management INO Implementing Effective Climate Change Adaptation Policy INO Improving Domestic Connectivity INO Integrated Citarum Water Resources Management Investment Program Periodic Financing Request 2 INO Metropolitan Sanitation Management and Health II INO Strengthening Sanitation Planning and Efficiency Improvement INO Water Resources and River Basin Management LAO Renewable Energy Development in Remote Communities LAO Vientiane Sustainable Urban Transport MON Fifth Health Sector Development MON Road Sector Capacity Development MON Ulaanbaatar Urban Services and Ger Areas Development Investment Program NEP Improving Access to Finance Sector Development Program NEP Kathmandu Valley Urban Environment Improvement NEP Reducing Child Malnutrition through Social Protection NEP Skills Development NEP Support for Targeted and Sustainable Development Programs for Highly Marginalized Groups PHI Capacity Development of Financial Regulators PHI Results-Oriented Strategic Planning and Development Management for Inclusive Growth PHI Strengthening Institutions for an Improved Investment Climate PHI Support to Local Government Revenue Generation and Land Administration Reforms PNG Facilitating Public–Private Partnerships PNG Maritime and Waterways Safety		1,850.00 1,500.00 1,500.00 1,500.00 2,000.00 12,200.00 700.00 1,000.00 700.00 1,000.00 700.00 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 1,500.00 600.00 700.00 500.00 1,000.00 1,000.00 1,000.00 1,500.00 800.00 600.00	2,000.00 2,000.00 1,950.00 1,900.00 2,000.00 2,700.00

BAN = Bangladesh, BHU = Bhutan, CAM = Cambodia, FSM = Federated States of Micronesia, IND = India, INO = Indonesia, LAO = Lao People’s 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

source of cofinancing project name		amount technical assistance project component	amount technical assistance project component
		technical assistance
SRI Improving Community-Based Rural Water Supply and Sanitation in Post-Conflict Areas of Jaffna and Kilinochchi THA Development of a Strategic Framework for Financial Inclusion 1,500.00 TON Outer Island Renewable Energy 500.00 UZB Amu Bukhara Irrigation System Rehabilitation 1,500.00 VIE Improvement of Road Safety and Climate Resilience on National Highways 1,500.00 VIE Support to Central and Local Governments to Implement Urban Environmental Improvement Programs 2,000.00 VIE Water Resources Development in the Mid- and Northeast Red River Delta 800.00 REG Asia–Pacific Community of Practice on Managing for Development Results – From Concept to Practice (Supplementary) 711.50 REG Building Capacity for Statistics in the Pacific 1,000.00 REG Developing a Disaster Risk Financing Capability 2,000.00 REG Developing Sustainable Alternative Livelihoods in Coastal Fishing Communities in the Coral Triangle REG Enabling Climate Change Responses in Asia and the Pacific – Disaster Risk Finance for Total Climate Risk (Subproject 6) 1,000.00 REG Implementing the Pacific Regional Audit Initiative 1,300.00 REG Improving Gender-Inclusive Access to Clean and Renewable Energy in Bhutan, Nepal, and Sri Lanka REG Innovations for More Food with Less Water 1,400.00 REG Nineteenth Tax Conference 200.00 REG Smart Grid Capacity Development 1,400.00 REG Supporting Water Operators’ Partnerships in Asia and the Pacific 2,000.00 Subtotal 47,411.50 Japan–investment 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 500.00 INO Water Supply and Sanitation Sector Development 500.00 MON Government Bond Market Development 500.00 TAJ Strengthening Public Resource Management Program 500.00 REG Korea–ADB Conference on Knowledge Sharing and Development Effectiveness in the Asia and Pacific Region 124.00 REG Asia–Pacific Community of Practice on Managing for Development Results – From Concept to Practice (2nd Supplementary) 500.00 REG Broadening the Scope of Asian Bond Market Initiative Under ASEAN+3 145.00 REG Developing the Services Sector as an Engine for Inclusive Growth 500.00 REG Financial Regulatory Reforms in Asia 500.00 REG Greater Mekong Subregion Phnom Penh Plan for Development Management IV (Supplementary) 500.00 REG Regional Forum on Public Sector Accounting 500.00 REG Strengthening Support for the Asia-Pacific Economic Cooperation Financial Regulators Training Initiative 500.00 REG Supporting Public Management through e-Government Capacity Development 500.00 Subtotal 5,769.00			2,000.00 2,000.00 3,000.00 17,550.00

ASEAN+3 = Association of Southeast Asian Nations plus, the People’s 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

Asian Development Bank Annual Report 2011

CONTINUED

source of cofinancing project name		amount technical assistance project component	amount technical assistance project component
		technical assistance
netherlands trust Fund under the water Financing partnership Facility AFG Supporting Natural Resources Operations REG Knowledge and Innovation Support for ADB’s 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 Asia–Pacific Community of Practice on Managing for Development Results – From Concept to Practice (Supplementary) Subtotal 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 ADB’s 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		1,500.00 5,000.00 6,500.00 300.00 300.00 320.00 320.00 350.00 500.00 300.00 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	33,000.00 33,000.00

AFG = Afghanistan, CAM = Cambodia, INO = Indonesia, MON = Mongolia, PRC = People’s 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

source of cofinancing project name		amount technical assistance project component	amount technical assistance project component
		technical assistance
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 nation’s children’s Fund BAN Third Primary Education Development NEP School Sector Program Subtotal world Bank NEP School Sector Program TON Tonga–Fiji Submarine Cable Project REG 2011 International Comparison Program for Asia and the Pacific (2nd Supplementary) Subtotal 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		3,750.00 2,500.00 4,000.00 2,700.00 12,950.00 161.00 161.00 11,218.18 5,254.54 18.18 16,490.90 1,000.00 1,000.00 2,000.00 225.00 225.00	70,000.00 47,900.00 117,900.00 2,780.00 2,780.00 500.00 1,000.00 1,500.00 72,500.00 16,500.00 89,000.00 70,000.00 70,000.00 5,100.00 5,100.00

BAN = Bangladesh, BHU = Bhutan, CAM = Cambodia, INO = Indonesia, MRT= Mass Rapid Transit, NEP = Nepal, PRC = People’s 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

Asian Development Bank Annual Report 2011

CONTINUED

source of cofinancing project name		amount technical assistance project component	amount technical assistance project component
		technical assistance
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		500.00 600.00 500.00 900.00 7,163.00 750.00 600.00 750.00 11,763.00 215.00 160.00 375.00	7,000.00 7,000.00
tOtaL		211,357.45	971,480.00

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 LOANS—ORDINARY CAPITAL RESOURCES (amounts in $ million)

PROJECT LOANS—ORDINARY C	APITAL RESOURCE	S(amounts in $	million)
	goods				total contracts
Origin country	and works	% Distribution	consulting services	% Distribution	awarded	% Distribution
Afghanistan	0.00	0.00	0.00	0.00	0.00	0.00
Armenia	0.00	0.00	0.00	0.00	0.00	0.00
Australia	1.60	0.03	7.55	6.24	9.15	0.18
Austria	0.00	0.00	0.00	0.00	0.00	0.00
Azerbaijan	21.45	0.44	1.69	1.40	23.14	0.46
Bangladesh	0.35	0.01	0.00	0.00	0.35	0.01
Belgium	0.65	0.01	0.00	0.00	0.65	0.01
Bhutan	0.00	0.00	0.00	0.00	0.00	0.00
Brunei Darussalam	0.00	0.00	0.00	0.00	0.00	0.00
Cambodia	0.00	0.00	0.00	0.00	0.00	0.00
Canada	0.46	0.01	0.06	0.05	0.52	0.01
China, People’s Republic of	1,415.90	28.92	5.25	4.34	1,421.15	28.33
Cook Islands	0.00	0.00	0.00	0.00	0.00	0.00
Denmark	0.07	0.00	0.01	0.01	0.08	0.00
Fiji	7.99	0.16	0.00	0.00	7.99	0.16
Finland	0.00	0.00	0.02	0.01	0.02	0.00
France	0.00	0.00	1.07	0.88	1.07	0.02
Georgia	0.00	0.00	0.00	0.00	0.00	0.00
Germany	53.93	1.10	0.15	0.12	54.08	1.08
Hong Kong, China	0.00	0.00	1.06	0.88	1.07	0.02
India	1,354.05	27.66	31.36	25.91	1,385.41	27.62
Indonesia	60.02	1.23	3.09	2.55	63.10	1.26
Ireland	0.00	0.00	0.00	0.00	0.00	0.00
Italy	0.00	0.00	0.00	0.00	0.00	0.00
Japan	12.20	0.25	3.58	2.95	15.77	0.31
Kazakhstan	17.19	0.35	0.00	0.00	17.19	0.34
Kiribati	0.00	0.00	0.00	0.00	0.00	0.00
Korea, Republic of	1,017.14	20.78	8.03	6.64	1,025.17	20.44
Kyrgyz Republic	0.00	0.00	0.00	0.00	0.00	0.00
Lao People’s Democratic Republic	0.00	0.00	0.00	0.00	0.00	0.00
Luxembourg	0.00	0.00	0.00	0.00	0.00	0.00
Malaysia	0.00	0.00	2.60	2.15	2.60	0.05
Maldives	0.00	0.00	0.00	0.00	0.00	0.00
Marshall Islands	0.14	0.00	0.00	0.00	0.14	0.00
Micronesia, Federated States of	0.00	0.00	0.00	0.00	0.00	0.00
Mongolia	0.00	0.00	0.00	0.00	0.00	0.00
Myanmar	0.00	0.00	0.00	0.00	0.00	0.00
Nauru	0.00	0.00	0.00	0.00	0.00	0.00
Nepal	0.00	0.00	0.00	0.00	0.00	0.00
The Netherlands	0.00	0.00	4.61	3.81	4.61	0.09
New Zealand	4.82	0.10	1.60	1.32	6.42	0.13
Norway	0.00	0.00	0.00	0.00	0.00	0.00
Pakistan	343.97	7.03	11.52	9.52	355.49	7.09
Palau	0.00	0.00	0.00	0.00	0.00	0.00
Papua New Guinea	0.00	0.00	0.36	0.29	0.36	0.01
Philippines	55.47	1.13	4.66	3.85	60.13	1.20
Portugal	0.00	0.00	0.00	0.00	0.00	0.00
Samoa	0.00	0.00	0.00	0.00	0.00	0.00
Singapore	7.68	0.16	0.00	0.00	7.68	0.15
Solomon Islands	0.00	0.00	0.00	0.00	0.00	0.00
Spain	62.20	1.27	0.00	0.00	62.20	1.24
Sri Lanka	171.14	3.50	2.17	1.79	173.31	3.46
Sweden	0.11	0.00	0.00	0.00	0.11	0.00
Switzerland	1.32	0.03	13.06	10.79	14.38	0.29
Taipei,China	0.00	0.00	3.49	2.88	3.49	0.07
Tajikistan	0.00	0.00	0.00	0.00	0.00	0.00
Thailand	0.06	0.00	0.00	0.00	0.06	0.00
Timor-Leste	0.00	0.00	0.00	0.00	0.00	0.00
Tonga	0.00	0.00	0.00	0.00	0.00	0.00
Turkey	137.85	2.82	0.00	0.00	137.85	2.75
Turkmenistan	0.00	0.00	0.00	0.00	0.00	0.00
Tuvalu	0.00	0.00	0.00	0.00	0.00	0.00
United Kingdom	7.40	0.15	11.01	9.10	18.41	0.37
United States	10.85	0.22	2.98	2.46	13.83	0.28
Uzbekistan	3.60	0.07	0.04	0.04	3.65	0.07
Vanuatu	0.00	0.00	0.00	0.00	0.00	0.00
Viet Nam	125.64	2.57	0.00	0.00	125.64	2.50
tOtaL	4,895.23	100.00	121.01	100.00	5,016.25	100.00

0.00 = amount or percentage is nil or less than 0.01. Note: Totals may not add up because of rounding.

293

Asian Development Bank Annual Report 2011

Statistical Annex 25b

CONTRACTS AWARDED BY NATIONALITY OF CONTRACTOR, 2011 PROJECT LOANS—ORDINARY CAPITAL RESOURCES (amounts in $ million)

PROJECT LOANS—ORDINARY C	APITAL RESOURCE	S(amounts in $	million)
	goods				total contracts
contractor country	and works	% Distribution	consulting services	% Distribution	awarded	% Distribution
Afghanistan	0.00	0.00	0.00	0.00	0.00	0.00
Armenia	0.00	0.00	0.00	0.00	0.00	0.00
Australia	1.60	0.03	7.15	5.91	8.75	0.17
Austria	0.00	0.00	0.00	0.00	0.00	0.00
Azerbaijan	59.36	1.21	1.69	1.40	61.05	1.22
Bangladesh	0.35	0.01	0.00	0.00	0.35	0.01
Belgium	0.65	0.01	0.00	0.00	0.65	0.01
Bhutan	0.00	0.00	0.00	0.00	0.00	0.00
Brunei Darussalam	0.00	0.00	0.00	0.00	0.00	0.00
Cambodia	0.00	0.00	0.00	0.00	0.00	0.00
Canada	0.46	0.01	0.00	0.00	0.46	0.01
China, People’s Republic of	1,414.77	28.90	2.84	2.35	1,417.62	28.26
Cook Islands	0.00	0.00	0.00	0.00	0.00	0.00
Denmark	0.00	0.00	0.00	0.00	0.00	0.00
Fiji	12.81	0.26	0.79	0.65	13.60	0.27
Finland	0.00	0.00	0.00	0.00	0.00	0.00
France	0.00	0.00	0.95	0.79	0.95	0.02
Georgia	0.00	0.00	0.00	0.00	0.00	0.00
Germany	52.83	1.08	0.12	0.10	52.95	1.06
Hong Kong, China	7.28	0.15	3.50	2.89	10.78	0.21
India	1,372.24	28.03	35.29	29.16	1,407.53	28.06
Indonesia	60.16	1.23	3.09	2.55	63.25	1.26
Ireland	0.00	0.00	0.00	0.00	0.00	0.00
Italy	0.00	0.00	0.00	0.00	0.00	0.00
Japan	13.38	0.27	3.58	2.96	16.95	0.34
Kazakhstan	17.19	0.35	0.00	0.00	17.19	0.34
Kiribati	0.00	0.00	0.00	0.00	0.00	0.00
Korea, Republic of	1,018.27	20.80	8.79	7.26	1,027.06	20.47
Kyrgyz Republic	0.00	0.00	0.00	0.00	0.00	0.00
Lao People’s Democratic Republic	0.00	0.00	0.00	0.00	0.00	0.00
Luxembourg	0.00	0.00	0.00	0.00	0.00	0.00
Malaysia	0.00	0.00	2.60	2.15	2.60	0.05
Maldives	0.00	0.00	0.00	0.00	0.00	0.00
Marshall Islands	0.00	0.00	0.00	0.00	0.00	0.00
Micronesia, Federated States of	0.00	0.00	0.00	0.00	0.00	0.00
Mongolia	0.00	0.00	0.00	0.00	0.00	0.00
Myanmar	0.00	0.00	0.00	0.00	0.00	0.00
Nauru	0.00	0.00	0.00	0.00	0.00	0.00
Nepal	0.00	0.00	0.00	0.00	0.00	0.00
The Netherlands	0.00	0.00	0.69	0.57	0.69	0.01
New Zealand	0.00	0.00	1.57	1.30	1.57	0.03
Norway	0.00	0.00	0.00	0.00	0.00	0.00
Pakistan	343.88	7.02	11.52	9.52	355.40	7.08
Palau	0.00	0.00	0.00	0.00	0.00	0.00
Papua New Guinea	0.00	0.00	0.36	0.30	0.36	0.01
Philippines	55.84	1.14	4.66	3.85	60.50	1.21
Portugal	0.00	0.00	0.00	0.00	0.00	0.00
Samoa	0.00	0.00	0.00	0.00	0.00	0.00
Singapore	6.24	0.13	0.00	0.00	6.24	0.12
Solomon Islands	0.00	0.00	0.00	0.00	0.00	0.00
Spain	62.20	1.27	0.00	0.00	62.20	1.24
Sri Lanka	152.15	3.11	1.42	1.17	153.57	3.06
Sweden	0.00	0.00	0.00	0.00	0.00	0.00
Switzerland	1.27	0.03	13.06	10.79	14.33	0.29
Taipei,China	0.00	0.00	3.49	2.88	3.49	0.07
Tajikistan	0.00	0.00	0.00	0.00	0.00	0.00
Thailand	0.00	0.00	0.00	0.00	0.00	0.00
Timor-Leste	0.00	0.00	0.00	0.00	0.00	0.00
Tonga	0.00	0.00	0.00	0.00	0.00	0.00
Turkey	104.90	2.14	0.00	0.00	104.90	2.09
Turkmenistan	0.00	0.00	0.00	0.00	0.00	0.00
Tuvalu	0.00	0.00	0.00	0.00	0.00	0.00
United Kingdom	2.12	0.04	2.35	1.94	4.47	0.09
United States	1.97	0.04	2.86	2.36	4.83	0.10
Uzbekistan	4.47	0.09	8.67	7.16	13.14	0.26
Vanuatu	0.00	0.00	0.00	0.00	0.00	0.00
Viet Nam	128.85	2.63	0.00	0.00	128.85	2.57
tOtaL	4,895.23	100.00	121.01	100.00	5,016.25	100.00

0.00 = amount or percentage is nil or less than 0.01. Note: Totals may not add up because of rounding.

294

Statistical Annexes

Statistical Annex 26a

CONTRACTS AWARDED BY COUNTRY OF ORIGIN, 2011 PROJECT LOANS—ASIAN DEVELOPMENT FUND (amounts in $ million)

	goods				total contracts
Origin country	and works	% Distribution	consulting services	% Distribution	awarded	% Distribution
Afghanistan	7.07	0.69	0.16	0.18	7.23	0.65
Armenia	3.88	0.38	0.14	0.16	4.02	0.36
Australia	4.45	0.43	5.84	6.53	10.29	0.92
Austria	1.43	0.14	0.00	0.00	1.43	0.13
Azerbaijan	0.00	0.00	0.09	0.10	0.09	0.01
Bangladesh	167.44	16.28	1.94	2.17	169.38	15.15
Belgium	1.84	0.18	0.00	0.00	1.84	0.16
Bhutan	4.30	0.42	0.00	0.00	4.30	0.38
Brunei Darussalam	0.00	0.00	0.00	0.00	0.00	0.00
Cambodia	24.68	2.40	0.31	0.35	24.99	2.24
Canada	0.49	0.05	0.20	0.22	0.68	0.06
China, People’s Republic of	45.39	4.41	0.00	0.00	45.39	4.06
Cook Islands	0.00	0.00	0.00	0.00	0.00	0.00
Denmark	0.00	0.00	1.73	1.94	1.74	0.16
Fiji	0.00	0.00	0.00	0.00	0.00	0.00
Finland	0.02	0.00	0.10	0.11	0.12	0.01
France	3.91	0.38	0.72	0.80	4.63	0.41
Georgia	27.25	2.65	0.51	0.57	27.76	2.48
Germany	44.14	4.29	9.08	10.15	53.22	4.76
Hong Kong, China	0.00	0.00	1.00	1.12	1.00	0.09
India	72.78	7.08	3.30	3.69	76.08	6.81
Indonesia	70.36	6.84	12.63	14.12	82.99	7.43
Ireland	0.00	0.00	0.00	0.00	0.00	0.00
Italy	0.53	0.05	0.00	0.00	0.53	0.05
Japan	1.51	0.15	4.48	5.01	6.00	0.54
Kazakhstan	0.00	0.00	0.00	0.00	0.00	0.00
Kiribati	0.00	0.00	0.00	0.00	0.00	0.00
Korea, Republic of	27.66	2.69	8.82	9.86	36.48	3.26
Kyrgyz Republic	18.59	1.81	1.52	1.70	20.11	1.80
Lao People’s Democratic Republic	3.11	0.30	0.00	0.00	3.11	0.28
Luxembourg	0.96	0.09	0.00	0.00	0.96	0.09
Malaysia	10.21	0.99	0.29	0.32	10.50	0.94
Maldives	1.64	0.16	0.00	0.00	1.64	0.15
Marshall Islands	0.00	0.00	0.00	0.00	0.00	0.00
Micronesia, Federated States of	0.00	0.00	0.00	0.00	0.00	0.00
Mongolia	4.80	0.47	0.06	0.07	4.86	0.44
Myanmar	0.00	0.00	0.00	0.00	0.00	0.00
Nauru	0.00	0.00	0.00	0.00	0.00	0.00
Nepal	40.79	3.97	7.95	8.89	48.74	4.36
The Netherlands	0.00	0.00	0.00	0.00	0.00	0.00
New Zealand	2.91	0.28	4.46	4.99	7.37	0.66
Norway	0.00	0.00	0.00	0.00	0.00	0.00
Pakistan	47.50	4.62	3.43	3.83	50.93	4.56
Palau	0.00	0.00	0.00	0.00	0.00	0.00
Papua New Guinea	7.38	0.72	1.17	1.30	8.54	0.76
Philippines	0.04	0.00	0.02	0.02	0.05	0.00
Portugal	0.00	0.00	0.00	0.00	0.00	0.00
Samoa	2.23	0.22	0.00	0.00	2.23	0.20
Singapore	0.03	0.00	0.00	0.00	0.03	0.00
Solomon Islands	0.00	0.00	0.00	0.00	0.00	0.00
Spain	6.37	0.62	0.00	0.00	6.37	0.57
Sri Lanka	58.71	5.71	0.02	0.03	58.74	5.26
Sweden	0.00	0.00	0.00	0.00	0.00	0.00
Switzerland	0.45	0.04	0.00	0.00	0.45	0.04
Taipei,China	0.14	0.01	0.00	0.00	0.14	0.01
Tajikistan	3.96	0.39	0.04	0.04	4.00	0.36
Thailand	0.01	0.00	0.00	0.00	0.01	0.00
Timor-Leste	0.00	0.00	0.00	0.00	0.00	0.00
Tonga	0.00	0.00	0.00	0.00	0.00	0.00
Turkey	0.92	0.09	0.02	0.03	0.94	0.08
Turkmenistan	0.00	0.00	0.00	0.00	0.00	0.00
Tuvalu	0.00	0.00	0.00	0.00	0.00	0.00
United Kingdom	1.70	0.17	4.87	5.44	6.57	0.59
United States	2.08	0.20	8.21	9.18	10.30	0.92
Uzbekistan	51.63	5.02	0.55	0.61	52.17	4.67
Vanuatu	0.00	0.00	0.00	0.00	0.00	0.00
Viet Nam	252.93	24.60	5.79	6.48	258.72	23.15
tOtaL	1,028.22	100.00	89.45	100.00	1,117.67	100.00

0.00 = amount or percentage is nil or less than 0.01. Note: Totals may not add up because of rounding.

295

Asian Development Bank Annual Report 2011

Statistical Annex 26b

CONTRACTS AWARDED BY NATIONALITY OF CONTRACTOR, 2011 PROJECT LOANS—ASIAN DEVELOPMENT FUND (amounts in $ million)

	goods				total contracts
contractor country	and works	% Distribution	consulting services	% Distribution	awarded	% Distribution
Afghanistan	7.13	0.69	0.16	0.18	7.29	0.65
Armenia	3.99	0.39	0.14	0.16	4.13	0.37
Australia	4.23	0.41	5.84	6.53	10.07	0.90
Austria	1.43	0.14	0.00	0.00	1.43	0.13
Azerbaijan	0.00	0.00	0.09	0.10	0.09	0.01
Bangladesh	188.79	18.36	1.94	2.17	190.73	17.06
Belgium	1.84	0.18	0.00	0.00	1.84	0.16
Bhutan	4.30	0.42	0.00	0.00	4.30	0.38
Brunei Darussalam	0.00	0.00	0.00	0.00	0.00	0.00
Cambodia	24.68	2.40	0.31	0.35	24.99	2.24
Canada	0.48	0.05	0.20	0.22	0.68	0.06
China, People’s Republic of	27.34	2.66	0.00	0.00	27.34	2.45
Cook Islands	0.00	0.00	0.00	0.00	0.00	0.00
Denmark	0.26	0.03	1.73	1.93	2.00	0.18
Fiji	0.00	0.00	0.00	0.00	0.00	0.00
Finland	0.00	0.00	0.01	0.01	0.01	0.00
France	3.90	0.38	0.72	0.80	4.62	0.41
Georgia	27.65	2.69	0.51	0.57	28.17	2.52
Germany	86.95	8.46	8.90	9.95	95.85	8.58
Hong Kong, China	0.00	0.00	1.00	1.12	1.00	0.09
India	14.27	1.39	3.30	3.69	17.57	1.57
Indonesia	74.12	7.21	11.90	13.30	86.02	7.70
Ireland	0.00	0.00	0.00	0.00	0.00	0.00
Italy	0.00	0.00	0.00	0.00	0.00	0.00
Japan	2.02	0.20	4.48	5.01	6.50	0.58
Kazakhstan	0.00	0.00	0.00	0.00	0.00	0.00
Kiribati	0.00	0.00	0.00	0.00	0.00	0.00
Korea, Republic of	27.46	2.67	9.65	10.79	37.11	3.32
Kyrgyz Republic	18.59	1.81	1.52	1.70	20.11	1.80
Lao People’s Democratic Republic	3.11	0.30	0.00	0.00	3.11	0.28
Luxembourg	0.00	0.00	0.00	0.00	0.00	0.00
Malaysia	9.72	0.95	0.29	0.32	10.01	0.90
Maldives	1.64	0.16	0.00	0.00	1.64	0.15
Marshall Islands	0.00	0.00	0.00	0.00	0.00	0.00
Micronesia, Federated States of	0.00	0.00	0.00	0.00	0.00	0.00
Mongolia	4.80	0.47	0.27	0.30	5.07	0.45
Myanmar	0.00	0.00	0.00	0.00	0.00	0.00
Nauru	0.00	0.00	0.00	0.00	0.00	0.00
Nepal	40.95	3.98	7.94	8.88	48.89	4.37
The Netherlands	0.96	0.09	0.00	0.00	0.96	0.09
New Zealand	3.12	0.30	4.46	4.99	7.59	0.68
Norway	0.00	0.00	0.00	0.00	0.00	0.00
Pakistan	47.48	4.62	3.45	3.86	50.93	4.56
Palau	0.00	0.00	0.00	0.00	0.00	0.00
Papua New Guinea	8.24	0.80	1.17	1.31	9.40	0.84
Philippines	0.04	0.00	0.02	0.02	0.05	0.00
Portugal	0.00	0.00	0.00	0.00	0.00	0.00
Samoa	2.23	0.22	0.00	0.00	2.23	0.20
Singapore	1.51	0.15	0.00	0.00	1.51	0.14
Solomon Islands	0.00	0.00	0.00	0.00	0.00	0.00
Spain	14.94	1.45	0.00	0.00	14.94	1.34
Sri Lanka	58.55	5.69	0.02	0.02	58.58	5.24
Sweden	0.00	0.00	0.00	0.00	0.00	0.00
Switzerland	0.34	0.03	0.00	0.00	0.34	0.03
Taipei,China	0.00	0.00	0.00	0.00	0.00	0.00
Tajikistan	4.11	0.40	0.04	0.04	4.15	0.37
Thailand	0.00	0.00	0.00	0.00	0.00	0.00
Timor-Leste	0.00	0.00	0.00	0.00	0.00	0.00
Tonga	0.00	0.00	0.00	0.00	0.00	0.00
Turkey	0.51	0.05	0.00	0.00	0.51	0.05
Turkmenistan	0.00	0.00	0.00	0.00	0.00	0.00
Tuvalu	0.00	0.00	0.00	0.00	0.00	0.00
United Kingdom	0.00	0.00	4.87	5.44	4.87	0.44
United States	0.82	0.08	1.45	1.62	2.26	0.20
Uzbekistan	51.63	5.02	0.55	0.61	52.17	4.67
Vanuatu	0.00	0.00	0.00	0.00	0.00	0.00
Viet Nam	254.05	24.71	12.54	14.02	266.59	23.85
tOtaL	1,028.22	100.00	89.45	100.00	1,117.67	100.00

0.00 = amount or percentage is nil or less than 0.01. Note: Totals may not add up because of rounding.

296

Statistical Annexes

Statistical Annex 27a

CONTRACTS AWARDED BY COUNTRY OF ORIGIN, 2011 PROJECT LOANS—ORDINARY CAPITAL RESOURCES AND ASIAN DEVELOPMENT FUND COMBINED (amounts in $ million)

	goods				total contracts
Origin country	and works	% Distribution	consulting services	% Distribution	awarded	% Distribution
Afghanistan	7.07	0.12	0.16	0.08	7.23	0.12
Armenia	3.88	0.07	0.14	0.07	4.02	0.07
Australia	6.05	0.10	13.39	6.36	19.44	0.32
Austria	1.43	0.02	0.00	0.00	1.43	0.02
Azerbaijan	21.45	0.36	1.78	0.85	23.23	0.38
Bangladesh	167.79	2.83	1.94	0.92	169.73	2.77
Belgium	2.49	0.04	0.00	0.00	2.49	0.04
Bhutan	4.30	0.07	0.00	0.00	4.30	0.07
Brunei Darussalam	0.00	0.00	0.00	0.00	0.00	0.00
Cambodia	24.68	0.42	0.31	0.15	24.99	0.41
Canada	0.94	0.02	0.26	0.12	1.20	0.02
China, People’s Republic of	1,461.28	24.67	5.25	2.49	1,466.53	23.91
Cook Islands	0.00	0.00	0.00	0.00	0.00	0.00
Denmark	0.08	0.00	1.75	0.83	1.82	0.03
Fiji	7.99	0.13	0.00	0.00	7.99	0.13
Finland	0.02	0.00	0.11	0.05	0.13	0.00
France	3.91	0.07	1.78	0.85	5.69	0.09
Georgia	27.25	0.46	0.51	0.24	27.76	0.45
Germany	98.07	1.66	9.23	4.39	107.30	1.75
Hong Kong, China	0.00	0.00	2.07	0.98	2.07	0.03
India	1,426.83	24.09	34.66	16.47	1,461.49	23.83
Indonesia	130.37	2.20	15.72	7.47	146.10	2.38
Ireland	0.00	0.00	0.00	0.00	0.00	0.00
Italy	0.53	0.01	0.00	0.00	0.53	0.01
Japan	13.71	0.23	8.06	3.83	21.77	0.35
Kazakhstan	17.19	0.29	0.00	0.00	17.19	0.28
Kiribati	0.00	0.00	0.00	0.00	0.00	0.00
Korea, Republic of	1,044.80	17.64	16.85	8.01	1,061.65	17.31
Kyrgyz Republic	18.59	0.31	1.52	0.72	20.11	0.33
Lao People’s Democratic Republic	3.11	0.05	0.00	0.00	3.11	0.05
Luxembourg	0.96	0.02	0.00	0.00	0.96	0.02
Malaysia	10.21	0.17	2.89	1.37	13.10	0.21
Maldives	1.64	0.03	0.00	0.00	1.64	0.03
Marshall Islands	0.14	0.00	0.00	0.00	0.14	0.00
Micronesia, Federated States of	0.00	0.00	0.00	0.00	0.00	0.00
Mongolia	4.80	0.08	0.06	0.03	4.86	0.08
Myanmar	0.00	0.00	0.00	0.00	0.00	0.00
Nauru	0.00	0.00	0.00	0.00	0.00	0.00
Nepal	40.79	0.69	7.95	3.78	48.74	0.79
The Netherlands	0.00	0.00	4.61	2.19	4.61	0.08
New Zealand	7.73	0.13	6.06	2.88	13.79	0.22
Norway	0.00	0.00	0.00	0.00	0.00	0.00
Pakistan	391.47	6.61	14.95	7.10	406.42	6.63
Palau	0.00	0.00	0.00	0.00	0.00	0.00
Papua New Guinea	7.38	0.12	1.52	0.72	8.90	0.15
Philippines	55.51	0.94	4.67	2.22	60.18	0.98
Portugal	0.00	0.00	0.00	0.00	0.00	0.00
Samoa	2.23	0.04	0.00	0.00	2.23	0.04
Singapore	7.71	0.13	0.00	0.00	7.71	0.13
Solomon Islands	0.00	0.00	0.00	0.00	0.00	0.00
Spain	68.56	1.16	0.00	0.00	68.56	1.12
Sri Lanka	229.86	3.88	2.19	1.04	232.05	3.78
Sweden	0.11	0.00	0.00	0.00	0.11	0.00
Switzerland	1.77	0.03	13.06	6.21	14.83	0.24
Taipei,China	0.14	0.00	3.49	1.66	3.62	0.06
Tajikistan	3.96	0.07	0.04	0.02	4.00	0.07
Thailand	0.07	0.00	0.00	0.00	0.07	0.00
Timor-Leste	0.00	0.00	0.00	0.00	0.00	0.00
Tonga	0.00	0.00	0.00	0.00	0.00	0.00
Turkey	138.77	2.34	0.02	0.01	138.79	2.26
Turkmenistan	0.00	0.00	0.00	0.00	0.00	0.00
Tuvalu	0.00	0.00	0.00	0.00	0.00	0.00
United Kingdom	9.10	0.15	15.88	7.54	24.98	0.41
United States	12.93	0.22	11.20	5.32	24.13	0.39
Uzbekistan	55.23	0.93	0.59	0.28	55.82	0.91
Vanuatu	0.00	0.00	0.00	0.00	0.00	0.00
Viet Nam	378.56	6.39	5.79	2.75	384.36	6.27
tOtaL	5,923.45	100.00	210.46	100.00	6,133.92	100.00

0.00 = amount or percentage is nil or less than 0.01. Note: Totals may not add up because of rounding.

297

Asian Development Bank Annual Report 2011

Statistical Annex 27b

CONTRACTS AWARDED BY NATIONALITY OF CONTRACTOR, 2011 PROJECT LOANS—ORDINARY CAPITAL RESOURCES AND ASIAN DEVELOPMENT FUND COMBINED (amounts in $ million)

	goods				total contracts
Origin country	and works	% Distribution	consulting services	% Distribution	awarded	% Distribution
Afghanistan	7.13	0.12	0.16	0.08	7.29	0.12
Armenia	3.99	0.07	0.14	0.07	4.13	0.07
Australia	5.83	0.10	12.99	6.17	18.82	0.31
Austria	1.43	0.02	0.00	0.00	1.43	0.02
Azerbaijan	59.36	1.00	1.78	0.85	61.15	1.00
Bangladesh	189.15	3.19	1.94	0.92	191.08	3.12
Belgium	2.49	0.04	0.00	0.00	2.49	0.04
Bhutan	4.30	0.07	0.00	0.00	4.30	0.07
Brunei Darussalam	0.00	0.00	0.00	0.00	0.00	0.00
Cambodia	24.68	0.42	0.31	0.15	24.99	0.41
Canada	0.94	0.02	0.20	0.10	1.13	0.02
China, People’s Republic of	1,442.12	24.35	2.84	1.35	1,444.96	23.56
Cook Islands	0.00	0.00	0.00	0.00	0.00	0.00
Denmark	0.26	0.00	1.73	0.82	2.00	0.03
Fiji	12.81	0.22	0.79	0.38	13.60	0.22
Finland	0.00	0.00	0.01	0.00	0.01	0.00
France	3.90	0.07	1.66	0.79	5.56	0.09
Georgia	27.65	0.47	0.51	0.24	28.17	0.46
Germany	139.79	2.36	9.02	4.29	148.80	2.43
Hong Kong, China	7.28	0.12	4.50	2.14	11.78	0.19
India	1,386.51	23.41	38.59	18.34	1,425.10	23.24
Indonesia	134.28	2.27	14.99	7.12	149.27	2.43
Ireland	0.00	0.00	0.00	0.00	0.00	0.00
Italy	0.00	0.00	0.00	0.00	0.00	0.00
Japan	15.39	0.26	8.06	3.83	23.45	0.38
Kazakhstan	17.19	0.29	0.00	0.00	17.19	0.28
Kiribati	0.00	0.00	0.00	0.00	0.00	0.00
Korea, Republic of	1,045.73	17.65	18.44	8.76	1,064.17	17.35
Kyrgyz Republic	18.59	0.31	1.52	0.72	20.11	0.33
Lao People’s Democratic Republic	3.11	0.05	0.00	0.00	3.11	0.05
Luxembourg	0.00	0.00	0.00	0.00	0.00	0.00
Malaysia	9.72	0.16	2.89	1.37	12.60	0.21
Maldives	1.64	0.03	0.00	0.00	1.64	0.03
Marshall Islands	0.00	0.00	0.00	0.00	0.00	0.00
Micronesia, Federated States of	0.00	0.00	0.00	0.00	0.00	0.00
Mongolia	4.80	0.08	0.27	0.13	5.07	0.08
Myanmar	0.00	0.00	0.00	0.00	0.00	0.00
Nauru	0.00	0.00	0.00	0.00	0.00	0.00
Nepal	40.95	0.69	7.94	3.77	48.89	0.80
The Netherlands	0.96	0.02	0.69	0.33	1.65	0.03
New Zealand	3.12	0.05	6.03	2.87	9.15	0.15
Norway	0.00	0.00	0.00	0.00	0.00	0.00
Pakistan	391.36	6.61	14.97	7.11	406.33	6.63
Palau	0.00	0.00	0.00	0.00	0.00	0.00
Papua New Guinea	8.24	0.14	1.52	0.72	9.76	0.16
Philippines	55.87	0.94	4.67	2.22	60.55	0.99
Portugal	0.00	0.00	0.00	0.00	0.00	0.00
Samoa	2.23	0.04	0.00	0.00	2.23	0.04
Singapore	7.75	0.13	0.00	0.00	7.75	0.13
Solomon Islands	0.00	0.00	0.00	0.00	0.00	0.00
Spain	77.14	1.30	0.00	0.00	77.14	1.26
Sri Lanka	210.71	3.56	1.44	0.68	212.15	3.46
Sweden	0.00	0.00	0.00	0.00	0.00	0.00
Switzerland	1.61	0.03	13.06	6.21	14.67	0.24
Taipei,China	0.00	0.00	3.49	1.66	3.49	0.06
Tajikistan	4.11	0.07	0.04	0.02	4.15	0.07
Thailand	0.00	0.00	0.00	0.00	0.00	0.00
Timor-Leste	0.00	0.00	0.00	0.00	0.00	0.00
Tonga	0.00	0.00	0.00	0.00	0.00	0.00
Turkey	105.41	1.78	0.00	0.00	105.41	1.72
Turkmenistan	0.00	0.00	0.00	0.00	0.00	0.00
Tuvalu	0.00	0.00	0.00	0.00	0.00	0.00
United Kingdom	2.12	0.04	7.22	3.43	9.34	0.15
United States	2.79	0.05	4.31	2.05	7.10	0.12
Uzbekistan	56.09	0.95	9.22	4.38	65.31	1.06
Vanuatu	0.00	0.00	0.00	0.00	0.00	0.00
Viet Nam	382.89	6.46	12.54	5.96	395.43	6.45
tOtaL	5,923.45	100.00	210.46	100.00	6,133.92	100.00

0.00 = amount or percentage is nil or less than 0.01. Note: Totals may not add up because of rounding.

298

Statistical Annexes

Statistical Annex 28a

ESTIMATES OF PAYMENT TO SUPPLYING COUNTRIES FOR FOREIGN PROCUREMENT UNDER PROGRAM LENDING, 2011 By country of Origin

By country of Origin
country	Ordinary capital Resources (OcR) $ Million % Distribution	asian Development Fund (aDF) $ Million % Distribution	combined OcR and aDF $ Million % Distribution
Afghanistan Armenia Australia Austria Azerbaijan Bangladesh Belgium Bhutan Brunei Darussalam Cambodia Canada China, People’s 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 People’s 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	2.26 0.23 0.00 0.00 38.48 3.98 3.64 0.38 1.96 0.20 1.69 0.17 13.34 1.38 0.05 0.01 7.12 0.74 0.05 0.01 18.69 1.93 247.80 25.64 2.49 0.26 0.00 0.00 0.00 0.00 4.47 0.46 21.03 2.18 0.00 0.00 41.77 4.32 20.56 2.13 14.49 1.50 12.16 1.26 4.57 0.47 7.45 0.77 116.10 12.01 0.20 0.02 0.00 0.00 45.75 4.73 0.00 0.00 0.44 0.05 0.13 0.01 50.61 5.24 0.05 0.01 0.00 0.00 0.00 0.00 0.00 0.00 3.02 0.31 0.01 0.00 0.16 0.02 6.19 0.64 4.83 0.50 1.14 0.12 0.68 0.07 0.00 0.00 0.97 0.10 5.16 0.53 0.17 0.02 0.00 0.00 107.46 11.12 0.16 0.02 2.59 0.27 0.50 0.05 5.30 0.55 7.30 0.76 0.90 0.09 0.01 0.00 35.83 3.71 0.00 0.00 0.00 0.00 3.31 0.34 0.00 0.00 0.00 0.00 8.80 0.91 85.48 8.85 0.02 0.00 0.21 0.02 8.84 0.91	0.00 0.00 0.00 0.00 4.46 1.84 0.36 0.15 0.00 0.00 0.11 0.05 1.04 0.43 0.05 0.02 0.00 0.00 0.33 0.14 1.65 0.68 55.67 23.03 0.43 0.18 0.00 0.00 0.00 0.00 0.55 0.23 2.67 1.10 0.00 0.00 4.67 1.93 11.31 4.68 25.94 10.73 5.88 2.43 0.11 0.04 2.09 0.86 18.56 7.68 0.01 0.00 0.00 0.00 16.60 6.87 0.00 0.00 0.40 0.17 0.02 0.01 8.48 3.51 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.31 0.13 0.00 0.00 0.07 0.03 1.44 0.60 0.61 0.25 0.22 0.09 1.00 0.41 0.00 0.00 0.00 0.00 1.36 0.56 0.03 0.01 0.00 0.00 24.52 10.14 0.00 0.00 0.46 0.19 0.08 0.03 0.64 0.26 2.75 1.14 0.49 0.20 0.07 0.03 27.56 11.40 0.00 0.00 0.00 0.00 0.46 0.19 0.08 0.03 0.00 0.00 1.58 0.65 8.56 3.54 1.02 0.42 0.00 0.00 7.04 2.91	2.27 0.19 0.00 0.00 42.94 3.55 4.01 0.33 1.96 0.16 1.80 0.15 14.37 1.19 0.10 0.01 7.12 0.59 0.38 0.03 20.34 1.68 303.46 25.12 2.92 0.24 0.00 0.00 0.00 0.00 5.02 0.42 23.70 1.96 0.00 0.00 46.44 3.84 31.87 2.64 40.43 3.35 18.04 1.49 4.68 0.39 9.54 0.79 134.67 11.15 0.21 0.02 0.00 0.00 62.35 5.16 0.00 0.00 0.84 0.07 0.14 0.01 59.09 4.89 0.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.32 0.28 0.01 0.00 0.23 0.02 7.63 0.63 5.44 0.45 1.37 0.11 1.67 0.14 0.00 0.00 0.97 0.08 6.52 0.54 0.20 0.02 0.00 0.00 131.97 10.92 0.16 0.01 3.05 0.25 0.59 0.05 5.94 0.49 10.06 0.83 1.38 0.11 0.07 0.01 63.39 5.25 0.00 0.00 0.00 0.00 3.77 0.31 0.09 0.01 0.00 0.00 10.38 0.86 94.04 7.78 1.04 0.09 0.21 0.02 15.88 1.31
tOtaL	966.40 100.00	241.75 100.00	1,208.15 100.00

0.00 = amount or percentage is nil or less than 0.01. Note: Totals may not add up because of rounding.

299

Asian Development Bank Annual Report 2011

Statistical Annex 28b

ESTIMATES OF PAYMENT TO SUPPLYING COUNTRIES FOR FOREIGN PROCUREMENT UNDER PROGRAM LENDING, 2011 By nationality of contractor

By nationality of contractor
country	Ordinary capital Resources (OcR)	asian Development Fund (aDF) $ Million % Distribution	combined OcR and aDF $ Million % Distribution
	$ Million % Distribution
Afghanistan Armenia Australia Austria Azerbaijan Bangladesh Belgium Bhutan Brunei Darussalam Cambodia Canada China, People’s 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 People’s 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	– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 60.00 6.21 200.00 20.70 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 200.00 20.70 6.40 0.66 – – – – – – – – – – – – – – – – – – – – – – – – 100.00 10.35 – – – – – – – – – – – – 400.00 41.39 – – – – – –	– – – – – – – – – – 24.79 10.26 – – – – – – 10.37 4.29 – – 10.36 4.28 – – – – – – – – – – – – – – – – 4.97 2.05 – – – – – – – – – – – – 1.81 0.75 – 0.00 8.00 3.31 – – – – – – – – – – – – – – – – 25.35 10.48 – – – – – – – – 3.47 1.44 – – – – – – – – – – – – – – – – – – – – – – – – 2.79 1.15 – – – – – – 0.01 0.01 – – – – 134.03 55.44 – – – – 15.80 6.53	– – – – – – – – – – 24.79 2.05 – – – – – – 10.37 0.86 – – 10.36 0.86 – – – – – – – – – – – – – – – – 64.97 5.38 200.00 16.55 – – – – – – – – – – 1.81 0.15 – – 8.00 0.66 – – – – – – – – – – – – – – – – 25.35 2.10 – – – – – – 200.00 16.55 9.87 0.82 – – – – – – – – – – – – – – – – – – – – – – – – 102.79 8.51 – – – – – – 0.01 – – – – – 534.03 44.20 – – – – 15.80 1.31
tOtaL	966.40 100.00	241.75 100.00	1,208.15 100.00

– = nil.

Note: Totals may not add up because of rounding.

300

Statistical Annexes

Statistical Annex 29

CUMULATIVE CONTRACTS AWARDED BY COUNTRY OF ORIGIN TECHNICAL ASSISTANCE OPERATIONS (amounts in $ million; as of 31 December 2011)

	aDB’s		administered		Japan		total
	Own	%	trust	%	special	%	contracts	%
country	Resources	Distribution	Funds	Distribution	Fund	Distribution	awarded	Distribution
Afghanistan	1.59	0.09	1.78	0.23	0.20	0.02	3.58	0.10
Armenia	–	–	–	–	–	–	–	–
Australia	199.17	11.98	88.88	11.47	134.70	13.73	422.75	12.37
Austria	1.52	0.09	0.12	0.01	0.92	0.09	2.56	0.07
Azerbaijan	0.59	0.03	0.29	0.03	0.02	0.00	0.89	0.02
Bangladesh	28.06	1.68	10.26	1.32	7.54	0.76	45.86	1.34
Belgium	7.14	0.43	1.38	0.17	2.26	0.23	10.78	0.31
Bhutan	0.86	0.05	0.42	0.05	0.15	0.01	1.43	0.04
Brunei Darussalam	–	–	–	–	–	–	–	–
Cambodia	3.11	0.18	3.61	0.46	0.54	0.05	7.25	0.21
Canada	117.77	7.08	56.33	7.27	69.47	7.08	243.57	7.12
China, People’s Republic of	38.38	2.31	12.31	1.58	8.08	0.82	58.78	1.72
Cook Islands	0.10	0.00	0.27	0.03	–	–	0.37	0.01
Denmark	13.67	0.82	10.55	1.36	19.04	1.94	43.26	1.26
Fiji	2.50	0.15	1.88	0.24	0.47	0.04	4.85	0.14
Finland	10.46	0.63	7.21	0.93	9.59	0.97	27.26	0.79
France	38.63	2.32	23.74	3.06	26.76	2.72	89.13	2.60
Georgia	0.41	0.02	0.03	0.00	–	–	0.44	0.01
Germany	34.15	2.05	23.79	3.07	36.84	3.75	94.79	2.77
Hong Kong, China	38.18	2.29	14.81	1.91	22.02	2.24	75.01	2.19
India	83.54	5.02	40.68	5.24	38.85	3.96	163.06	4.77
Indonesia	22.07	1.32	20.65	2.66	12.42	1.26	55.14	1.61
Ireland	2.69	0.16	0.41	0.05	0.17	0.01	3.26	0.09
Italy	6.33	0.38	1.45	0.18	2.68	0.27	10.46	0.30
Japan	37.76	2.27	19.68	2.53	32.59	3.32	90.03	2.63
Kazakhstan	1.94	0.11	1.57	0.20	0.13	0.01	3.63	0.10
Kiribati	0.03	0.00	0.05	0.00	0.01	0.00	0.09	0.00
Korea, Republic of	8.81	0.53	3.57	0.46	4.18	0.42	16.56	0.48
Kyrgyz Republic	2.52	0.15	0.95	0.12	0.22	0.02	3.69	0.10
Lao People’s Democratic Republic	3.77	0.22	2.73	0.35	1.16	0.11	7.66	0.22
Luxembourg	–	–	0.10	0.01	0.09	0.00	0.18	0.00
Malaysia	15.20	0.91	2.69	0.34	4.57	0.46	22.47	0.65
Maldives	0.17	0.01	0.06	0.00	0.03	0.00	0.25	0.00
Marshall Islands	0.32	0.01	0.19	0.02	0.01	0.00	0.52	0.01
Micronesia, Federated States of	0.01	0.00	–	–	0.22	0.02	0.23	0.00
Mongolia	2.71	0.16	1.68	0.21	0.84	0.08	5.23	0.15
Myanmar	0.99	0.05	0.70	0.09	0.01	0.00	1.70	0.05
Nauru	0.01	0.00	0.02	0.00	–	–	0.04	0.00
Nepal	14.50	0.87	8.10	1.04	3.68	0.37	26.28	0.76
The Netherlands	29.85	1.79	28.46	3.67	32.28	3.29	90.60	2.65
New Zealand	79.40	4.77	35.55	4.58	70.23	7.16	185.18	5.41
Norway	5.94	0.35	5.25	0.67	3.48	0.35	14.67	0.42
Pakistan	33.44	2.01	13.70	1.76	4.67	0.47	51.81	1.51
Palau	0.02	0.00	0.01	0.00	–	–	0.02	0.00
Papua New Guinea	1.47	0.08	0.71	0.09	1.78	0.18	3.95	0.11
Philippines	131.51	7.91	42.14	5.43	37.91	3.86	211.57	6.19
Portugal	0.45	0.02	0.07	0.01	0.10	0.01	0.62	0.01
Samoa	0.90	0.05	0.19	0.02	0.90	0.09	1.99	0.05
Singapore	24.21	1.45	7.28	0.94	10.85	1.10	42.35	1.23
Solomon Islands	0.66	0.04	0.24	0.03	0.22	0.02	1.11	0.03
Spain	11.71	0.70	6.23	0.80	1.01	0.10	18.95	0.55
Sri Lanka	16.85	1.01	6.82	0.88	3.97	0.40	27.64	0.80
Sweden	7.99	0.48	7.13	0.92	10.12	1.03	25.25	0.73
Switzerland	18.36	1.10	6.68	0.86	13.81	1.40	38.85	1.13
Taipei,China	1.15	0.06	0.07	0.00	2.71	0.27	3.93	0.11
Tajikistan	1.03	0.06	1.37	0.17	0.18	0.01	2.58	0.07
Thailand	16.56	0.99	16.11	2.08	12.31	1.25	44.98	1.31
Timor-Leste	1.49	0.08	0.48	0.05	0.15	0.01	2.12	0.06
Tonga	1.17	0.07	0.07	0.00	0.25	0.02	1.48	0.04
Turkey	0.46	0.02	0.27	0.03	0.05	0.00	0.78	0.02
Turkmenistan	0.18	0.01	0.05	0.00	–	–	0.23	0.00
Tuvalu	0.06	–	0.02	0.00	0.03	0.00	0.11	0.00
United Kingdom	204.82	12.32	85.53	11.03	141.85	14.46	432.20	12.64
United States	294.73	17.73	127.19	16.41	177.98	18.14	599.90	17.55
Uzbekistan	3.17	0.19	0.78	0.10	0.81	0.08	4.75	0.13
Vanuatu	0.89	0.05	0.14	0.01	1.20	0.12	2.23	0.06
Viet Nam	6.33	0.38	6.14	0.79	3.42	0.34	15.89	0.46
International Organizations	23.21	1.39	4.07	0.52	4.90	0.50	32.17	0.94
Regional	3.31	0.19	9.20	1.18	3.12	0.31	15.63	0.45
Others	0.56	0.03	–	–	–	–	0.56	0.01
tOtaL	1,661.52	100.00	774.85	100.00	980.74	100.00	3,417.11	100.00

– = nill, 0.00 = amount or percentage is less than 0.01. Note: Totals may not add up because of rounding.

301

Asian Development Bank Annual Report 2011

Statistical Annex 30

CONTRACTS AWARDED BY NATIONALITY OF CONSULTANT, 2009–2011 TECHNICAL ASSISTANCE OPERATIONS (amounts in $ million)

TECHNICAL ASSISTANCE OPERA	TIONS(amounts in $ million)
country	2009 amount %	2010 amount %	2011
			amount %
Afghanistan Armenia Australia Austria Azerbaijan Bangladesh Belgium Bhutan Brunei Darussalam Cambodia Canada China, People’s 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 People’s 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	0.31 0.17 0.07 0.04 28.66 15.63 0.18 0.10 0.01 0.00 4.46 2.43 0.63 0.35 0.15 0.08 0.00 0.00 0.37 0.20 8.94 4.87 8.69 4.74 0.13 0.07 0.62 0.34 0.77 0.42 0.68 0.37 5.75 3.14 0.00 0.00 3.72 2.03 3.43 1.87 16.65 9.08 2.74 1.49 0.82 0.45 0.39 0.21 9.69 5.28 0.13 0.07 0.02 0.01 1.26 0.69 0.58 0.32 0.35 0.19 0.13 0.07 0.80 0.43 0.01 0.01 0.01 0.01 0.00 0.00 0.40 0.22 0.00 0.00 0.02 0.01 2.94 1.60 8.67 4.73 6.66 3.63 0.13 0.07 2.99 1.63 0.00 0.00 0.15 0.08 10.81 5.89 0.05 0.02 0.00 0.00 3.07 1.67 0.05 0.03 2.46 1.34 1.08 0.59 1.08 0.59 5.75 3.14 0.00 0.00 0.10 0.05 0.81 0.44 0.00 0.00 0.42 0.23 0.00 0.00 0.01 0.01 0.00 0.00 17.93 9.78 15.18 8.28 0.61 0.33 0.01 0.01 0.85 0.46	0.13 0.07 0.24 0.13 18.30 9.88 0.07 0.04 0.03 0.02 8.46 4.57 0.37 0.20 0.34 0.19 0.02 0.01 0.43 0.23 9.70 5.24 7.15 3.86 0.01 0.01 3.79 2.04 0.17 0.09 0.16 0.09 5.13 2.77 0.31 0.17 5.87 3.17 6.23 3.36 18.29 9.87 2.67 1.44 0.78 0.42 0.54 0.29 2.16 1.17 0.50 0.27 0.01 0.01 1.27 0.68 0.40 0.21 0.78 0.42 0.01 0.00 0.82 0.44 0.00 0.00 0.05 0.02 0.20 0.11 0.88 0.48 0.00 0.00 0.01 0.01 2.67 1.44 4.68 2.52 8.72 4.71 0.06 0.03 3.36 1.81 0.00 0.00 0.39 0.21 17.04 9.20 0.10 0.05 0.10 0.05 2.15 1.16 0.04 0.02 2.92 1.58 1.65 0.89 0.98 0.53 0.28 0.15 0.04 0.02 0.28 0.15 1.48 0.80 0.11 0.06 0.26 0.14 0.01 0.01 0.01 0.00 0.00 0.00 16.94 9.15 22.99 12.41 0.51 0.28 0.13 0.07 1.13 0.61	0.21 0.10 0.32 0.15 20.12 9.37 0.13 0.06 0.02 0.01 4.09 1.90 1.44 0.67 0.14 0.07 0.00 0.00 0.48 0.22 9.06 4.22 8.09 3.77 0.00 0.00 2.77 1.29 1.10 0.51 0.67 0.31 8.80 4.10 0.03 0.01 7.90 3.68 4.74 2.21 13.04 6.07 5.25 2.44 0.98 0.46 0.74 0.34 6.59 3.07 0.25 0.12 0.00 0.00 2.81 1.31 0.20 0.09 0.42 0.20 0.00 0.00 2.18 1.01 0.06 0.03 0.12 0.06 0.00 0.00 0.81 0.37 0.00 0.00 0.01 0.00 1.31 0.61 4.44 2.07 17.91 8.34 1.48 0.69 2.92 1.36 0.00 0.00 0.19 0.09 12.66 5.89 0.10 0.05 0.10 0.05 1.53 0.71 0.12 0.06 2.38 1.11 3.13 1.46 0.20 0.09 0.43 0.20 0.04 0.02 0.27 0.13 7.20 3.35 0.05 0.02 0.17 0.08 0.00 0.00 0.02 0.01 0.05 0.02 14.93 6.95 37.87 17.63 0.83 0.38 0.13 0.06 0.80 0.37
tOtaL	183.40 100.00	185.25 100.00	214.86 100.00

0.00 = amount or percentage is nil or less than 0.01. Note: Totals may not add up because of rounding.

302

Statistical Annexes

Statistical Annex 31

CONTRACTS AWARDED BY NATIONALITY OF CONSULTANT, 2009–2011 GRANT OPERATIONS—ADB-Administered Consulting Services (amounts in $ million)

country	2009 amount %	2010 amount %	2011
			amount %
Afghanistan Armenia Australia Austria Azerbaijan Bangladesh Belgium Bhutan Brunei Darussalam Cambodia Canada China, People’s 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 People’s 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	0.03 0.22 – – 2.79 23.70 – – – – 0.10 0.85 0.36 3.04 – – – – 0.26 2.22 0.39 3.32 – – – – – – – – – – – – – – 0.07 0.59 0.39 3.33 0.57 4.86 0.08 0.66 – – – – – – – – – – 0.03 0.24 – – – – – – – – – – – – – – – – – – – – 0.20 1.68 – – – – – – 0.05 0.42 0.37 3.10 – – – – – – – – – – 0.09 0.75 – – – – – – 1.54 13.04 – – – – – – – – – – – – 2.05 17.39 2.35 19.90 – – – – 0.08 0.70	– – – – 0.12 5.86 – – – – – – – – 0.14 6.93 – – 0.37 18.07 0.09 4.36 – – – – – – – – – – – – – – 0.08 3.88 0.23 11.05 0.03 1.60 – – 0.11 5.09 – – – – – – – – – – – – – – – – – – – – – – – – – – 0.19 9.21 0.06 2.91 0.15 7.08 – – – – – – 0.03 1.55 0.11 5.48 – – – – – – – – – – 0.08 3.88 – – – – – – – – – – – – – – – – – – – – – – 0.15 7.17 – – – – 0.12 5.88	– – – – 2.78 48.50 – – – – – – – – 0.07 1.20 – – 0.11 1.90 – – – – – – – – – – – – – – – – 1.55 27.03 0.39 6.71 0.03 0.47 – 0.03 0.53 – – – – – – – – – – – – – – – – 0.05 0.78 – – – – – – – – 0.10 1.78 – 0.15 2.53 – – – – – – – – 0.35 6.14 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 0.06 1.09 0.08 1.34 – – – – – –
tOtaL	11.79 100.00	2.06 100.00	5.74 100.00

– = nil, 0.00 = amount or percentage is less than 0.01. Note: Totals may not add up because of rounding.

303

Asian Development Bank Annual Report 2011

Statistical Annex 32

CONTRACTS AWARDED BY NATIONALITY OF CONTRACTOR, 2009–2011 GRANT OPERATIONS—Executing Agency-Administered Goods, Works, and Consulting Services (amounts in $ million)

country	2009 amount %	2010 amount %	2011
			amount %
Afghanistan Armenia Australia Austria Azerbaijan Bangladesh Belgium Bhutan Brunei Darussalam Cambodia Canada China, People’s 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 People’s 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	4.52 0.74 9.10 1.49 29.71 4.87 4.20 0.69 0.10 0.02 6.50 1.06 0.05 0.01 2.97 0.49 0.00 0.00 17.34 2.84 3.59 0.59 21.15 3.46 0.00 0.00 0.04 0.01 0.05 0.01 0.33 0.05 50.46 8.26 0.01 0.00 21.16 3.47 33.81 5.54 10.27 1.68 18.33 3.00 0.02 0.00 0.62 0.10 9.70 1.59 0.29 0.05 0.00 0.00 66.68 10.92 12.95 2.12 9.57 1.57 0.28 0.05 0.36 0.06 0.18 0.03 0.00 0.00 0.19 0.03 11.63 1.91 0.00 0.00 0.00 0.00 28.95 4.74 1.65 0.27 19.66 3.22 0.00 0.00 10.18 1.67 0.00 0.00 1.72 0.28 1.84 0.30 0.00 0.00 0.74 0.12 0.77 0.13 1.99 0.33 0.05 0.01 10.40 1.70 0.69 0.11 6.56 1.07 0.00 0.00 0.87 0.14 12.62 2.07 0.04 0.01 0.12 0.02 0.43 0.07 0.00 0.00 3.24 0.53 0.96 0.16 4.76 0.78 142.27 23.30 0.00 0.00 13.82 2.26	77.04 19.74 0.12 0.03 14.11 3.62 0.00 0.00 3.37 0.86 8.87 2.27 0.00 0.00 2.06 0.53 0.00 0.00 15.48 3.97 0.76 0.19 63.30 16.22 0.00 0.00 0.25 0.06 0.38 0.10 3.93 1.01 3.81 0.98 0.00 0.00 3.23 0.83 0.00 0.00 7.72 1.98 4.91 1.26 4.17 1.07 0.01 0.00 5.99 1.54 1.10 0.28 0.00 0.00 0.47 0.12 6.19 1.59 33.88 8.68 0.00 0.00 3.67 0.94 0.00 0.00 0.00 0.00 0.17 0.04 22.09 5.66 0.00 0.00 0.00 0.00 26.90 6.89 0.29 0.07 6.79 1.74 0.00 0.00 5.06 1.30 0.00 0.00 2.16 0.55 3.48 0.89 0.00 0.00 3.19 0.82 5.41 1.39 3.24 0.83 0.00 0.00 17.22 4.41 0.09 0.02 0.00 0.00 0.00 0.00 2.26 0.58 0.74 0.19 0.21 0.05 9.09 2.33 0.00 0.00 0.00 0.00 0.00 0.00 3.14 0.81 8.93 2.29 0.14 0.04 0.00 0.00 4.85 1.24	3.96 0.31 0.00 0.00 32.56 2.58 0.00 0.00 0.00 0.00 9.11 0.72 0.00 0.00 61.06 4.85 0.00 0.00 14.00 1.11 39.01 3.10 143.94 11.42 0.06 0.00 18.05 1.43 0.29 0.02 17.09 1.36 8.86 0.70 0.00 0.00 39.51 3.14 1.93 0.15 33.14 2.63 2.30 0.18 0.00 0.00 10.07 0.80 30.44 2.42 0.00 0.00 0.00 0.00 38.96 3.09 32.27 2.56 20.96 1.66 38.05 3.02 4.96 0.39 0.00 0.00 0.32 0.03 0.26 0.02 12.79 1.01 0.00 0.00 0.00 0.00 54.19 4.30 0.00 0.00 1.31 0.10 2.57 0.20 4.36 0.35 0.00 0.00 2.39 0.19 9.94 0.79 0.00 0.00 3.56 0.28 2.94 0.23 9.83 0.78 0.39 0.03 10.31 0.82 0.00 0.00 3.29 0.26 0.00 0.00 8.24 0.65 1.16 0.09 4.80 0.38 0.13 0.01 23.72 1.88 0.00 0.00 0.00 0.00 8.88 0.70 478.44 37.96 4.09 0.32 0.00 0.00 11.76 0.93
tOtaL	610.48 100.00	390.27 100.00	1,260.24 100.00

0.00 = amount or percentage is nil or less than 0.01. Note: Totals may not add up because of rounding.

304

overall production

Department of External Relations

Fulfillment

Office of Administrative Services, Printing Unit

Annual Report 2011 is printed using vegetable oil-based inks on recycled paper.

The Annual Report 2011 can be downloaded from ADB’s website at www.adb.org

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About the Asian Development Bank
ADB’s 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
region’s many successes, it remains home to two-thirds of the world’s 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
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1550 Metro Manila, philippines
www.adb.org
9 789290 926344
printed on recycled paper printed in the philippines
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