Multilateral Aid Review summary - The Asian Development Fund (AsDF)

AsDF is a major provider of concessionary loans and grants in Asia and the Pacific.  It focuses on basic infrastructure (energy, transport, water) and committed $3.3bn in 2009.  As part of the Asian Development Bank (AsDB), AsDF also leverages finance for private sector projects in low income countries, as well as transferring knowledge and experience from middle income countries and supporting regional integration.

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Contribution to UK development objectives	Strong
	+	Critical role in sustainable economic development across Asia and the Pacific.
	+	Strong focus on wealth creation through infrastructure and regional integration.
	+	Good engagement with governments.
	_	Sometimes limited collaboration with other donors.
	_	Limited role in health and activities directly addressing MDGs.
	+	Demonstrates good delivery against challenging poverty focused objectives.
	+	Strong results systems at headquarters and country level.
	+	Strong operational performance in Afghanistan.  Maintains staff in country at difficult times (Pakistan). Conflict sensitive (Nepal).
	+	Robust environmental and social safeguards
	+	Good integration of climate into existing development work, with good policy and strategy documents.
	_	Good policy and evaluations on gender equality but limited evidence of impact.
Organisational strengths	Strong
	+	Administrative costs are low compared to peers.  Administrative budgets have been controlled as volume of loans and grants has increased significantly.
	_	No evidence of emphasis on securing cost effectiveness in the design of development projects.
	+	Very strong partnerships with governments.
	+	Strong results focus with frameworks used at all levels.
	_	Weaknesses in HR policies and practices are being tackled but more needs to done.
	+	Clear mandate and independent evaluation and lesson learning culture
	_	Very limited in-country re-allocation possible.
	+	Good financial management systems.
	+	Strong mechanism for redress of grievances from people directly affected by AsDF projects.
Capacity for positive change	Likely
	+	Various major reform initiatives have already been undertaken with good results.  Management is responsive.