Cover -- Contents -- 1 THE HANDBOOK -- 1.1 Purpose -- 1.2 Scope and Applicability -- 1.5 Inquiries -- 2 THE ASIAN DEVELOPMENT BANK -- 2.3 Inquiries -- 3 DISBURSEMENT POLICIES -- 3.1 Basic Principles -- 3.3 Definitions -- 3.4 Loan or Grant Regulations -- 3.5 Loan Documents -- 3.6 Loan Milestone Event Dates -- 3.7 Retroactive Financing -- 3.10 Reallocating Loan Proceeds -- 3.11 Loan Cancellation -- 3.14 Suspending Withdrawals -- 3.15 Accelerating Maturity -- 4 DISBURSEMENT GUIDELINES AND PRACTICES -- 4.1 General Guideline -- 4.2 Loan Account -- 4.3 Discussion of Disbursement Procedures during Project Preparation -- 4.4 Disbursement Letter -- 4.5 Actions to be Taken by the Borrower -- 4.6 Basic Requirements for Disbursement -- 4.7 Eligible and Ineligible Expenditures -- 4.8 Disbursement Percentage and Financing Percentage -- 4.10 Disallowances and Nonpayments -- 4.12 Capitalization of Interest, Commitment Charges, and Other Fees and Charges -- 4.13 Changes during Project Implementation -- 4.15 Loan Account Closing -- 4.15 Project Completion Date and Loan Closing Date -- 4.16 Final Disbursement -- 4.17 Winding-up Period -- 4.19 Payment of Final Audit Fees -- 4.20 Refunds -- 4.24 Retention Money and Bank Guarantee -- 4.25 Audited Project Financial Statements -- 4.27 Follow-Up Action for Audit Findings of a Serious Nature -- 4.28 Delay in Submission of Audited Project Financial Statements -- 4.29 Retention Period of Supporting Documents -- 4.30 Disbursement under Suspension of Loan -- 5 INSTRUCTIONS FOR DISBURSEMENT -- 5.1 Authorized Signatory -- 5.2 Allocating Loan Proceeds -- 5.4 Withdrawal Application -- 5.8 Currency of Payment -- 5.10 Payment Instructions -- 5.11 ADB's Contract Reference Number: Procurement Contract Summary Sheet Number -- 5.14 Sample Forms of Withdrawal Application -- 6 DISBURSEMENT PROCEDURES -- 6.1 Four Major Types.

6.2 Simplified Documentation under the Reimbursement Procedure -- 6.3 Disbursement Procedures and Suggested Types of Payment -- 6.4 Modes of Loan Disbursement -- 7 DIRECT PAYMENT PROCEDURE -- 7.1 Description -- 7.2 Basic Requirements -- 7.4 Supporting Documents -- 8 COMMITMENT PROCEDURE -- 8.1 Description -- 8.5 Basic Requirements -- 8.6 Supporting Documents -- 8.7 Issuing the Commitment Letter -- 8.11 Accepting the Commitment Letter -- 8.12 Payment to Commercial Banks -- 8.14 Amendments Requiring ADB's Prior Approval -- 8.16 Amendments to the Letter of Credit -- 8.21 Limitation of ADB's Commitment -- 8.22 Discrepancies -- 8.23 Linking the Letter of Credit to the Commitment Letter -- 9 REIMBURSEMENT PROCEDURE -- 9.1 Description -- 9.4 Basic Requirements -- 9.6 Supporting Documents -- 9.7 Simplified Documentation -- 9.8 Narrative Procedures -- 9.9 Statement of Expenditures Procedure -- 9.15 Conditions for Approval to Use the Statement of Expenditures Procedure -- 9.16 Approval of the Statement of Expenditures Procedure -- 9.18 Statement of Expenditures Ceiling -- 9.21 Ineligible Payments -- 9.22 Audit Arrangements -- 9.23 Review by ADB Staff -- 9.24 Suspending Use of the Statement of Expenditure Procedure -- 9.25 Force Account Works Procedure -- 9.27 Conditions for Approval to Use the Force Account Works Procedure -- 9.28 Details on the Certificates for Force Account Works -- 9.29 Mutually Exclusive Use of Simplified Documentation -- 10 IMPREST FUND PROCEDURE -- 10.1 Description -- 10.2 Objectives -- 10.3 Conditions for Approval to Use the Imprest Fund Procedure -- 10.4 Approval of Procedure -- 10.5 Basic Requirements -- 10.6 Establishing the Imprest Account -- 10.8 Location of the Imprest Account -- 10.10 Currency of the Imprest Account -- 10.11 Using the Imprest Account -- 10.12 Ceiling of Advances -- 10.14 Request for Advances.

10.17 Liquidation and Replenishment -- 10.22 Final Liquidation of Advance to the Imprest Account -- 10.24 Refund of Advance -- 10.26 Use of Sub-Accounts under the Imprest Account -- 10.30 Audit Arrangements -- 10.31 Review by ADB Staff -- 10.32 Suspending Replenishment -- 10.34 Narrative Procedures -- 10.35 Supporting Documents -- 11 FINANCIAL INTERMEDIATION LOANS AND POLICY-BASED LOANS -- Financial Intermediation Loans -- 11.1 Description -- 11.4 Free Limit -- 11.5 Disbursement Procedures -- Policy-Based Loans -- 11.10 Purpose of the Policy-Based Loan -- 11.11 Fiduciary Safeguard -- 11.12 Loan Proceeds and Disbursement Procedures -- 11.17 Audit Arrangement -- 12 COFINANCING OPERATIONS -- 12.1 Description -- 12.2 Disbursement Procedures -- 12.4 Types of Cofinancing Disbursement -- 13 PRIVATE SECTOR (NONSOVEREIGN) OPERATIONS -- 13.1 Description -- 13.3 Disbursement Procedures -- 13.8 Trade Finance Program Disbursement Procedures for Revolving Credit Facilities -- 13.9 Trade Finance Program Disbursement Procedures for Revolving Partial Credit Guarantees -- 14 LOAN AND GRANT FINANCIAL INFORMATION SERVICES -- APPENDIXES -- Chapter 3. DISBURSEMENT POLICIES -- 3A: ADB's Operations Manual Section J6: Disbursement -- 3B: Illustrative Tables for Operations Manual Section J6 -- Chapter 4. DISBURSEMENT GUIDELINES AND PRACTICES -- 4A: Sample of a Disbursement Letter -- 4B: Evidence of Authority to Sign Withdrawal Applications -- 4C: Eligible and Ineligible Expenditures -- 4D: Payment of Final Audit Fees -- Chapter 7. DIRECT PAYMENT PROCEDURE -- 7A: Withdrawal Application for Direct Payment and Reimbursement (Form ADB-DRP/RMP) -- 7B: Summary Sheet for Direct Payment/Reimbursement/Replenishment/ Liquidation (Form ADB-DRP/RMP/IFP-SS) -- 7C: Narrative Procedures and Check List for Direct Payment Procedure -- Chapter 8. COMMITMENT PROCEDURE.

8A: Application for Issuance of Commitment Letter (Form ADB-CL) -- 8B: Summary Sheet for Issuance of Commitment Letter (Form ADB-CL-SS) -- 8C: Sample of SWIFT-Based Commitment Letter -- 8D: Sample of Paper-Based Commitment Letter -- 8E: Application for Approval of Amendment of Letter of Credit -- 8F: Approval of Amendment of Letter of Credit -- 8G: Borrower's Advice of Extension of Letter of Credit Expiry and Shipping Dates -- 8H: Narrative Procedures and Check List for the Commitment Procedure -- Chapter 9. REIMBURSEMENT PROCEDURE -- 9A: Narrative Procedures and Check List for the Reimbursement Procedure -- 9B: Statement of Expenditures for Payments not Exceeding Approved Statement of Expenditures Ceiling -- 9C: Statement of Expenditures for Financial Intermediation Loans -- 9D: Certificate (Parts I and II) for Force Account Works -- Chapter 10. IMPREST FUND PROCEDURE -- 10A: Withdrawal Application Form for Imprest Fund (Form ADB-IFP) -- 10B: Estimate of Expenditures Sheet (Form ADB-IFP-EES) -- 10C: Imprest Account Reconciliation Statement Attachment to Imprest Account Reconciliation Statement, Estimation of Imprest Account Turnover Ratio -- 10D: Example of Sub-Account Reconciliation Statement -- 10E: Narrative Procedures and Check List for Imprest Fund Procedure -- Chapter 11. FINANCIAL INTERMEDIATION LOANS, POLICY-BASED LOANS -- 11A: Certificate under Policy-Based Loan (Format of Support Document Attached to a Withdrawal Application) -- Chapter 13. PRIVATE SECTOR (NONSOVEREIGN) OPERATIONS -- 13A: Certificate of Incumbency and Authority -- 13B: Disbursement Request for Private Sector Loan -- 13C: Disbursement Receipt Form -- 13D: Promissory Note -- 13E: Form of Disbursement Request (Trade Finance Program) -- 13F: Subloan Summary Report -- 13G: Notice of Unpaid Claim.

13H: Notice of Participation Contribution - Trade Finance Program Risk Participation Agreement -- Chapter 14. LOAN AND GRANT FINANCIAL INFORMATION SERVICES -- 14A: Loan Financial Information System Reports -- 14B: Grant Financial Information System Reports -- 14C: Reference -- 14D: Downloads -- 14E: Request for LFIS/GFIS/LAS Web Access Definition/Renewal/ Termination.