adb - 亞行清潔技術(shù)基金的法律和運(yùn)營變化 Legal and Operational Changes to the ADB Clean Technology Fund

FinancingPartnerships

AsianDevelopmentBank

PUBLIC

August2024

LegalandOperationalChangestotheADBCleanTechnologyFund

ThisdocumentisbeingdisclosedtothepublicpriortoitsconsiderationbyADB’sBoardofDirectorsinaccordancewithADB’sAccesstoInformationPolicy.

ABBREVIATIONS

ADB

-

AsianDevelopmentBank

CCMM

-

CIFCapitalMarketsMechanism

CCSD

-

ClimateChangeandSustainableDevelopmentDepartment

CIF

-

ClimateInvestmentFunds

CTF

-

CleanTechnologyFund

CTFPF

-

CleanTechnologyFundParallelFund

FPA

-

FinancialProceduresAgreement

MDB

-

multilateraldevelopmentbank

ORM

-

OfficeofRiskManagement

SCF

-

StrategicClimateFund

NOTE

Inthisreport,"$"referstoUnitedStatesdollars.

Vice-PresidentFatimaYasmin,OfficeoftheVice-President(SectorsandThemes)

DirectorGeneralBrunoCarrasco,ClimateChangeandSustainableDevelopmentDepartment

(CCSD)

SeniorDirectorToruKubo;ClimateChange,Resilience,andEnvironmentCluster(CCRE);

CCSD

DirectorNoelleO’Brien,CCRE,CCSD

TeamleaderChristianEllermann,SeniorClimateChangeSpecialist,CCRE,CCSD

TeammembersAbderrahimAssab,ClimateChangeSpecialist,CCRE,CCSD

DainaemiBell-Gam,SeniorCounsel,OfficeoftheGeneralCounsel(OGC)RyanAnthonyBestre,ClimateChangeOfficer,CCRE,CCSD

ZoiloAntonioCastrillo,SeniorRiskManagementOfficer,Treasuryand

LiquidityRiskDivision(RMTL),OfficeofRiskManagement(ORM)Lily-AnneDayog,AssociateRiskManagementAnalyst,RMTL,ORM

ShielaDelaTorre;PartnershipsOfficer;StrategicPartnershipsDivision;

Strategy,Policy,andPartnershipsDepartment(SPD)

ArleenDoctor,AssociateFinancialControlOfficer,LoanandTreasuryAccountingSection(CTAC-LTA),Controller'sDepartment(CTL)

LaniGomez,SeniorFinancialControlOfficer,TrustFundSection(CTFA-TF),CTL

Ma.JemimahJamolangue,ClimateChangeOfficer,CCRE,CCSD

DavidLeBrun,SeniorRiskManagementSpecialist,RiskPolicyandArchitectureDivision(RMPA),ORM

EloiseValerieMartinez,SeniorFinancingPartnershipsOfficer,PartnerFundsDivision(CCPF),CCSD

AlfieMartirez,AssociateFinancialControlOfficer,CTAC-LTA,CTLGerrmaiMondragon,SeniorLegalOfficer,OGC

PerOlaNilsson,PrincipalRiskManagementSpecialist,RMPA,ORMDonNishimoto,PrincipalFinancialControlSpecialist,CTFA-TF,CTLCristineOpena,FinancialControlAnalyst,CTFA-TF,CTL

JayantiPandey,TreasurySpecialist,FinancialPolicyandPlanningDivision,TreasuryDepartment

DouglasPerkins,AssistantGeneralCounsel,OGCKengSim,PrincipalCounsel,OGC

RajeevSingh,PrincipalFinancingPartnershipsSpecialist,CCPF,CCSDLyndonValmoria,SeniorRiskManagementOfficer,RMPA,ORM

Inpreparinganycountryprogramorstrategy,financinganyproject,orbymakinganydesignationoforreferencetoaparticularterritoryorgeographicareainthisdocument,theAsianDevelopmentBankdoesnotintendtomakeanyjudgmentsastothelegalorotherstatusofanyterritoryorarea.

CONTENTS

Page

I.THEPROPOSAL1

II.BACKGROUND1

III.THECIFCAPITALMARKETSMECHANISM’SVALUEPROPOSITION2

IV.AMENDMENTSTOTHEADBCLEANTECHNOLOGYFUND’SADMINISTRATION2

A.RoleofADB2

B.FundTransfersfromtheClimateInvestmentFunds3

C.AdministrativeArrangements4

V.ESTABLISHMENTOFTHEADBCLEANTECHNOLOGYFUNDPARALLELFUND6

A.RoleofADB6

B.FundTransfersfromtheClimateInvestmentFunds7

C.AdministrativeArrangements7

VI.RISKSANDMITIGATION8

VII.RECOMMENDATION9

APPENDIX

ComparisonoftheADBCleanTechnologyFund,Pre-andPost-ADBCIFCapitalMarkets

Mechanism,andtheNewADBCleanTechnologyFundParallelFund11

I.THEPROPOSAL

1.TheClimateInvestmentFunds(CIF),oneofthestrategicclimatefinancepartnersoftheAsianDevelopmentBank(ADB),willlaunchtheCIFCapitalMarketMechanism(CCMM)bytheendof2024.TheCCMMwillenabletheCIFtoleveragetheresourcesofoneofitsfundsintheinternationalcapitalmarketstocontinueprovidingconcessionalfinanceatscaletomultilateraldevelopmentbanks(MDBs)andrecipientcountries,irrespectiveofneworadditionaldevelopmentpartnercontributions.ThispaperseeksapprovalforthenecessarylegalandoperationalchangesthatADBmustundertaketocomplywiththeCCMMrequirements.

II.BACKGROUND

2.TheInternationalBankforReconstructionandDevelopment,thelendingarmoftheWorldBankGroup,establishedtheCleanTechnologyFund(CTF)andtheStrategicClimateFund(SCF),thepairoffundscomprisingtheCIF,in2008topromoteinternationalcooperationonclimatechange.In2009,ADB’sBoardofDirectorsapproved(i)theestablishmentandadministrationoftheADBCTFandtheADBSCF;and(ii)thenegotiationandexecutionofthenecessarylegalagreementswiththeWorldBankandthecommitteesgoverningtheCIF,i.e.,theFinancialProceduresAgreements(FPA)

.1

3.TheCTFTrustFundCommittee,theCTF’sgoverningbody,hasbeenworkingwiththeCIFSecretariatandotherstakeholderstolaunchtheCCMM.TheCCMMwouldenabletheCTFtoleverageitsresourcesintheinternationalcapitalmarketstocontinueprovidingconcessionalfinanceatscaletoMDBsandrecipientcountries,irrespectiveofneworadditionaldevelopmentpartnercontributions.

4.InpreparationfortheCCMM’slaunch,whichisplannedbeforetheendof2024,theCTFTrustFundCommitteehasapprovedmaterialchangestotheCTFgovernancepolicies,procedures,andlegalarrangements.ThesechangesrequireamendmentstotheADBCTFandtheestablishmentoftheADBCleanTechnologyFundParallelFund(CTFPF)

.2

5.Specifically,ADBmustimplement:

(i)specificamendmentstotheadministrationoftheADBCTFTrustFundtocomply

withtherequirementsforADB’sparticipationintheCTFaftertheCCMM’slaunch;(ii)theestablishmentandadministrationoftheADBCTFPFbyADB;and

(iii)thenegotiationandexecutionbyADBofsuchagreements,includingan

amendmenttotheADBCTFFPA,andotherlegalinstrumentswiththeWorldBank,asCTFtrustee,andwiththecommitteesgoverningtheCIFasmaybeconducivetoADB’scontinuedadministrationofADBCTFandADBCTFPFresources,followingtheprovisionssetforthinthispaper.

6.BoardapprovalisnecessarybecauseaftertheCCMM’slaunch,theCTFwillbecomeaglobalfundinginitiative,whichreflectsanoveldesignandcomplexityandmustbesubmittedto

theBoardforapprovalfollowingpara.51(i)(b)oftheoperationalefficiencypaper

.3

1ADB.2009.EstablishmentoftheADBCleanTechnologyFundandtheADBStrategicClimateFund.

2AportionoftheCTFresourcesweregeneratedfromloancontributionsfromdevelopmentpartners.ThisarrangementprohibitstheseresourcesfromparticipatingintheCCMM.TheseresourceshavebeenmaintainedandmonitoredbytheCTFtrusteeinaseparatetrustfundaccount—theCTFPF,whichwasestablishedin2022.

3ADB.2015.EnhancingOperationalEfficiencyoftheAsianDevelopmentBank.

2

7.ADBhasinitiatedmajorreformsandadapteditsnewoperationalmodeltobecometheclimatebankofAsiaandthePacific,includingannouncinganambitiontoprovide$100billionofitsownfunds,acrosspublicandprivatesectoroperations,toclimatefinanceby2030.Consequently,ADBhasdevelopedapipelineofhigh-qualityclimateprojectsandprogramstosupportclimateoutcomes,aligneditssovereignandnonsovereignoperationswiththegoalsoftheParisAgreement,anduseditsownfundstomobilizeandenableclimateinvestmentbyworkingwithpartnerstoachievecriticalclimateoutcomes.

8.TheClimateChangeActionPlan2023–2030specificallycommitsADBtoleverage

partnershipsthatgenerateanddeliverfinanceandknowledgetomultiplyitsownclimateimpact

.4

TheCIFhasbeenareliableandimportantfinancingpartnertoADBsince2009.AsofMay2024,theCIFprovided$1.41billioninproject-specificcofinancingtovariousADBprojectsacrossdifferentsectorsandcontributed$17milliontoADB-administeredtrustfunds.

III.THECIFCAPITALMARKETSMECHANISM’SVALUEPROPOSITION

9.TheCCMMwilluseCTFloanassetstoattractprivatesectorcapitalthroughdebtissuanceinthecapitalmarkets.ProceedsoftheCIF-issuedbondswillbechanneledtotheCTF,tobeprovidedasconcessionalfinancethroughADBanditsfellowCIF-implementingMDBsforclimatemitigationprojects.BondholderswillbepaidbackwithreflowsfromtheCTFloanportfolio.TheCCMMwillcontinuetorelyontheCTF’sprovenoperatingmodel,withCTFdecision-making,governance,andadministrationremaininglargelyunchanged.

10.TheCCMM’smainvaluepropositionisthecreationofastableandpredictablesourceoflow-costclimatefinanceforpublicandprivatesectorbeneficiariesinrecipientcountries,followingtheCTF’soriginalmissionandobjectives.TheCCMM’sestablishmentwillalsoensurethatADBandotherCIFMDBsbenefitfromacontinuingandreliablesourceofconcessionalfinancingatscale,tousewiththeirownfinancing,topromotenewandinnovativelow-carbontechnologiesincleanenergyandtransportsolutionsinmiddle-incomecountries.

IV.AMENDMENTSTOTHEADBCLEANTECHNOLOGYFUND’SADMINISTRATION

11.TheCCMMwillrequiretwoadditionalCIFstakeholders:theissueroftheCIFbondsandthecreditratingagencies.TheCIFwillestablishan“issuer”thatwillborrowininternationaldebtcapitalmarketstofundtheCTF’sbusinessaccordingtofinancialpoliciesdesignedtosustainastronginvestment-gradecreditrating.CreditratingagencieswillassesstheCTFportfolio.

12.ThesechangestotheCIFgovernanceandoperationalframeworksarematerialandtriggertheneedforlegalamendmentstotheADBCTF’sFPAwiththeCTFtrustee.TheADBSCF’sFPAwillnotbeaffectedinanyway.

13.TheAppendixpresentstheoperationalandadministrativechangesanddifferencesbetweentheADBCTFandtheamendmentsnecessarytoaccommodatetheCCMM.TheADBCTFPFisalsoshownforcomparison.

A.RoleofADB

14.ADB,aswithotherMDBs,willcontinuetoprepare,process,andadministerprogramsandprojectsfinancedfromtheCTFresourcesfollowingitsownprogramming,processing,and

4ADB.2023.ClimateChangeActionPlan,2023-2030.

3

implementationpolicies,guidelines,andprocedures.AlthoughitsFPAwillbeamended,theADBCTFwillremainasisandwillreceive,holdintrust,andadministertheresourcesthattheCTFtrusteewilltransfertoADBfromtheCTF,includingfromtheCCMMproceeds.ADB’sClimateChangeandSustainableDevelopmentDepartment(CCSD)willcontinuetocoordinateandmanagetheADBCTF,withtheClimateChange,Resilience,andEnvironment(CCRE)servingastheoverallfocal.

15.CCSD,particularlythePartnerFundsDivision,willcontinuetofacilitatecontributionsfromtheCTFtotheADBCTFandactastheofficialchannelofcommunicationforfinancingissuesbetweentheCTFtrustee,theCIFSecretariat,andADB.

16.ADB’sStrategy,Policy,andPartnershipsDepartment,particularlytheStrategicPartnershipsDivision,willleadnegotiationsanddiscussionswiththeCTFtrusteeontherevisedFPAfortheADBCTFbeforetheCCMM’slaunch,aswellasonotherrelatedlegalmechanisms,whereapplicable.ADB’sOfficeoftheGeneralCounselandotherdepartmentswillprovidesupport.

17.ProgrammingofactivitieswillcontinuetobeintegratedinADB’scountryandsectordialogue.Regionalvice-presidentsand/ordirectorsgeneralofregionaldepartmentswillberesponsibleforidentifying,appraising,andsupervisingoperationsaspartoftheirannualworkprograms.ADBwillcontinuetofollowitsownoperationalpolicies,procedures,andguidelines,asamendedfromtimetotime,forprocessing,implementing,monitoring,andevaluatingactivitiesfinancedwithresourcesfromtheADBCTF

.5

Thesamedocumentationrequirementsandmanagementreviewarrangementswillcontinuetoapply,includingforriskassessmentandriskcontrol.Inthecaseofprivatesectoroperations,ADB’sOfficeofRiskManagement(ORM)willcontinuereviewingallprojectsfinancedfromtheADBCTF.ResourcesintheADBCTFwillcontinuetobemeasuredseparatelyregardingthelimitsapplicabletononsovereignoperations.

18.SinceADBwillholdtheresourcestransferredintotheADBCTFintrust,ADBwillcontinuetoassertitsprivileges,exemptions,andimmunitiesinrelationtothoseresourcesandfundsandactasthelenderand/orgrantorofrecordforborrowersandrecipientsoffundsfromtheADBCTF.

B.FundTransfersfromtheClimateInvestmentFunds

19.ADBwillcontinuetoaccept,onanuntiedbasis,CTFresourcesfromtheCTFtrustee.ThetransferofCTFresourcestoADBwillcontinuetorequirespecificfinancialproceduresandadministrativearrangementsagreedbetweentheCIFandADB.ThesewillbelaidoutintheamendedFPA.

20.Accordingtoestablishedpractice,followingtheinstructionsoftheCTFTrustFundCommittee,theCTFtrusteewilltransferresourcesapprovedbytheCTFTrustFundCommitteeforADBtotheADBCTF.TheADBCTFwillcontinuetobeusedformeetingthecostsoftheCTF-financedprojectcomponentsapprovedbytheCTFTrustFundCommitteeandotheragreedrelatedcosts.DisbursementoffundsfromtheADBCTFwillcontinuetofollowADB’sdisbursementandaccountingprocedures.

5GiventhatCIFfundsaresubjecttothesameprogramming,processing,implementation,andreviewpoliciesandproceduresasforADB’sordinarylendingoperations,ADB’sexposureandprudentiallimitationframeworkwillapplyasregardsthelimitsforsingleobligors,groups,andcountryexposures.CIFfundsadministeredbyADB,however,willnotbeaggregatedwithfundsinvestedbyADBfromitsownresourcesastheprudentiallimitframeworkwillapplytoeachentityinisolation.

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21.Accordingtoestablishedpractice,transfersfromtheCTFtrusteetotheADBCTFwillcontinuetobemadeincashanddepositedintointerest-bearingaccounts.

22.Transferredresourceswillcontinuetobeheld,administered,andinvestedatADB’sdiscretion.Pendingdisbursement,ADBmayinvestandreinvestthetransferredresourcesinanyinstrumentinwhichADBisauthorizedtoinvestitsownfunds.ADBwillcontinuetonotbeheldliableforanylossesthatmayarisefromsuchinvestment,providedtheinvestmentwasmadeinaprudentmannerfollowingADB’sguidelinesandpolicies.Anyincomeearnedinrespectofsuchinvestmentandreinvestment,aswellasinterestearnedandaccruedinrespectoftheaccounts(collectively,theavailablefundsnetofexpenses),willcontinuetobecreditedtotheaccountsandreturnedtotheCTFtrusteeunlessotherwiseagreedwiththeCTFtrustee.

23.ADBwillmaintaintherighttoconvertthetransferredresourcesintoothercurrenciestofacilitatetheadministrationoftheADBCTF.IfADBfinancedaprojectfromtheADBCTFinacurrencyotherthanthecurrencyinwhichthecommitmentbytheCTFtrusteewasmade,unlessotherwiseagreedbytheCTFTrustFundCommittee,ADBwillcontinuetobearanyexchangerisksarisingfromsuchconversionofcurrencies.

24.TheCCMMwillintroduceanewpracticeforfundingnewCTFprojects,basingitondisbursementneedsratherthandevelopmentpartnercontributions.UndertheCCMM,theCTFwillmovetoamarket-basedliquiditypolicy(suchastheoneusedbyMDBs)forfundingnewprojects.CTF-approvedprojectsaftertheCCMM’simplementation(i.e.,newCTFprojects)willbefundedunderaCTFliquiditypolicybasedon24-monthprojectednetcashrequirements.ThisimpliesthatADBandotherCIFMDBswouldinformtheCIFSecretariatabouttheirestimateddisbursementneedsovera24-monthforwardperiod.

C.AdministrativeArrangements

25.Althoughunchanged,theadministrativearrangementsforthetransferofCTFresourcestotheADBCTF,includingfeestructures,willbecoveredintheamendedFPA.ADBwillcontinuetoadministerADBCTFresourcesfollowingitsownpolicies,guidelines,andprocedures.InadministeringtheADBCTFfunds,ADBwillcontinuetoexercisethesamecareinthedischargeofitsfunctionsasitexerciseswithrespecttoitsownaffairs.

26.ADBwillcontinuetoholdandadministerresourcesintheADBCTFseparatelyfromitsotherresources.

27.Reflows.ADBwillremainobligatedtoreturntotheCTFtrusteeanyreflowoffundsreceivedintotheADBCTFfromrecipientsand/orborrowers.TheCTFwillcontinuetobeartheriskofanypaymentdefaultsbyborrowersoffundsfromtheADBCTF.

28.UndertheCCMM,ADBwillcontinueitspracticeofrequestingcashfromtheCTFtrusteebasedonits6-monthprojecteddisbursementneeds,asdeterminedbyprojectteams.However,undertheamendedFPA,ADBmayhavetoreturntotheCTFtrusteeanyresourcesintheADBCTFthatexceedtheprojecteddisbursementneedsforthenext6months.ThisstipulationisnecessaryforthesuccessfulimplementationoftheCTFliquiditypolicy(mentionedinparagraph24),whichaimstomaintainappropriatelevelsofresourcesforoperationsacrossallCIFMDBsovera24-monthwindow.

29.Intheory,thisproposedchangecouldaffectthepredictabilityofresourcesforADB.Further,projectsmaydisbursetowardtheendofthe6-monthwindow,sothecashpositionatthe

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timetheCTFtrusteereviewstheportfoliomaynotrepresenttheactualscenario.Nevertheless,withtheexpectedchangestotheCIFoperationalprocedures,theADBriskhasbeendeemedsmall,witheasilyenforceablemitigatingactions,suchaskeepinggoodrecordsofdisbursementprojectionsforthefollowingyearsandverifyingtheseprojectionsagainstrealizeddisbursements.

30.Accounting.ADBwillcontinuetomaintainseparaterecordsandaccountsforadministeringtheADBCTFfollowingitsstandardprocedures.ADBwillcontinuetoprovidetheCTFtrusteewithfinancialstatements,auditedannuallybyexternalauditors,ontheserecordsandaccounts.TheCTFwillcontinuetocoverthecostoftheseaudits.

31.FollowingtheCCMM’slaunch,newriskmanagementandfinancialpolicies,aimedatmaintaininganinvestment-gradeissuerrating,willbeintroducedfortheCTF.ReportingrequirementsfortheCIFMDBswillexpandbeyondtheCTF’sreportingpracticestomeetthestatutoryregulationsofinternationalcapitalmarketsandcreditratingassessments.

32.TheintroductionofnewoperatingandgovernancestakeholdersandrequirementsintheCTFwillentailnewresponsibilitiesandprotectionsforADBandotherCIFMDBs,whichwillbereflectedintheamendedFPA.Themainnewresponsibilitiesandprotectionsconcern(i)reportingrequirementsaimedatensuringthattheCCMMmaintainsappropriatecreditratingsandinvestorshaveadequateinformation,and(ii)thepredictabilityofdisbursementsfollowingthenewCTFliquiditypolicy(mentionedinparagraphs24and28).

33.ThenewreportingtimelinesmayrequireADBoperationaladjustments,butthedatarequesteddonotposesignificantchallenges.Followingestablishedpractice,ADB’sController’sDepartmentwillcontinuetoprovidetheaccounting,reporting,andrangefortheexternalaudits.Additionally,thenewlyrequesteddatadonotraiseissuesofconfidentialityforADB.CCSDiscollaboratingwiththeController’sDepartmentandORMtoensureADB’scompliancewiththenewreportingtimelines.TheCTFwillcoverthecostofanyoperationaladjustmentsnecessaryforthiscompliance.TheCTFwillalsocovertheincreaseinreportingcosts,especiallyrelatedtotheauditingofunderlyinginvestmentssupportedbytheCTF.

34.TheCTFTrustFundCommitteewillcontinuetoapprovetheannualbudgetforADB’sincrementaladministrativeexpensesformanagingCTF-relatedactivities.TheCTFwillcontinuetoreimburseADBforincurredexpenseswithintheapprovedbudgetuponrequestandsubmissionofsupportingdocuments.

35.ADBmayaccept,fromtimetotime,additionalrulesproposedbytheCTFTrustFundCommitteeforadministeringresourcesfromtheCTFthataresubstantiallyinlinewiththeprovisionssetoutinthispaper.

36.Sunsetarrangements.TheCIFwasoriginallydesignedasaninteriminstrumentthatwouldceasetofunctionfollowingtheeffectiveoperationalizationoftheGreenClimateFund.However,implementationoftheCIFsunsetclausehasbeensuspendedrepeatedlyand,in2019,indefinitely.

37.UnlessotherwisedecidedoragreedbytheCTFtrusteeandADB,theADBCTFwillbeterminatedonsuchdateasallreflowsforactivitiessupportedbytheADBCTFintheformofloanshavebeencollectedandtransferredbacktotheCTFtrustee.Atsuchtime,exceptforactionsnecessaryfortheorderlyandexpeditiouswindingupoftheactivitiesoftheADBCTF,ADB’sfunctionsinrelationtothetransferswillbeconsideredterminated.

6

38.UponterminationoftheADBCTFandsubsequentliquidationoftheaccounts,unlessotherwiseagreedwiththeCTFtrustee,anyavailablefundswillbereturnedtotheCTFtrustee.Within6monthsafterterminationoftheADBCTF,ADBwillprovidetotheCTFtrusteeafinalreportandfinancialstatementonthefundandtheactivitiesitsupported.

V.ESTABLISHMENTOFTHEADBCLEANTECHNOLOGYFUNDPARALLELFUND

39.AportionoftheCTFfundswillnotparticipateintheCCMMtomeetspecificdevelopmentpartnerpreferencesandtoallowforincreasedconcessionality,whichisotherwiseincompatiblewithparticipationinthecapitalmarkets.TheseresourceswillthereforebemaintainedandmonitoredbytheCTFtrusteeinaseparatetrustfundaccount–theCTFPF.

40.ADBwillreceivefundsfromtheCTFPFtofundprojectsandprogramsfortheADBCTFportfolio.Accordingly,ADBmustestablishanewtrustfundaccount,theADBCTFPFtrustfundaccount,toallowthemonitoringofthisstreamofcommitmentsandexpectedcashflows.ThelegalrequirementsoftheADBCTFPF,thoughlaidoutinanewandspecificlegalagreement,willbemateriallysimilartothoseoftheADBCTF.

A.RoleofADB

41.ADB,aswithotherMDBs,willprepare,process,andadministerprogramsandprojectsfinancedfromCTFPFresourcesfollowingitsownprogramming,processing,andimplementationpolicies,guidelines,andprocedures.FollowingtheCTFPF’sestablishment,ADBwillestablishtheADBCTFPFtoreceive,holdintrust,andadministerresourcesthattheCTFPFtrusteewilltransfertoADBfromtheCTFPF.TheADBCTFPF,whichwillrequireexecutinganewFPA,willreceive,holdintrust,andadministertheresourcesthattheCTFtrusteewilltransfertoADBfromtheCTFPF.CCSDwillcoordinateandmanagetheADBCTFPF,withtheCCREservingastheoverallfocalpoint.

42.CCSD,particularlythePartnerFundsDivision,willfacilitatecontributionsfromtheCTFPFtotheADBCTFPFandactastheofficialchannelofcommunicationforfinancingissuesbetweentheCTFPFtrustee,theCIFSecretariat,andADB.

43.ADB’sStrategy,Policy,andPartnershipsDepartment,particularlytheStrategicPartnershipsDivision,willleadnegotiationsanddiscussionswiththeCTFPFtrusteeonthenewFPAconcerningtheCTFPF,aswellasonotherrelatedlegalmechanisms,whereapplicable.ADB’sOfficeoftheGeneralCounselandotherdepartmentswillprovidesupport.

44.ProgrammingofactivitieswillbeintegratedinADB’scountryandsectordialogue.Regionalvice-presidentsand/ordirectorsgeneralofregionaldepartmentswillberesponsibleforidentifying,appraising,andsupervisingoperationsaspartoftheirannualworkprograms.ADBwillfollowitsownoperationalpolicies,procedures,andguidelines,asamendedfromtimetotime,forprocessing,implementing,monitoring,andevaluatingactivitiesfinancedwithresourcesfromtheADBCTFPF(footnote

55

).Thesamedocumentationrequirementsandmanagementreviewarrangementswillapply,includingforriskassessmentandriskcontrol.Inthecaseofprivatesectoroperations,ORMwillreviewallprojectsfinancedfromtheADBCTFPF.ResourcesintheADBCTFPFwillbemeasuredseparatelyregardingthelimitsapplicabletononsovereignoperations.

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45.SinceADBwillholdtheresourcestransferredintotheADBCTFPFintrust,ADBwillassertitsprivileges,exemptions,andimmunitiesinrelationtothoseresourcesandfundsandactasthelenderand/orgrantorofrecordforborrowersandrecipientsoffundsfromtheADBCTFPF.

B.FundTransfersfromtheClimateInvestmentFunds

46.ADBwillaccept,onanuntiedbasis,CTFPFresourcesfromtheCTFPFtrustee.ThetransferofCTFPFresourcestoADBwillrequirespecificfinancialproceduresandadministrativearrangementsagreedbetweentheCIFandADB.AswiththeADBCTF,thesewillbelaidoutinthenewFPA.

47.Accordingtoesta