Quarterly Portfolio Update for Sovereign Operations As of 31 December 2020
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March 2021 Quarterly Portfolio Update for Sovereign Operations as of 31 December 2020 This document is being disclosed to the public in accordance with ADB's Access to Information Policy. Vice-President Bruce Gosper, Administration and Corporate Management Director General Risa Zhijia Teng, Procurement, Portfolio and Financial Management Department (PPFD) Director Rehan Kausar, Portfolio Management Division (PFPM), PPFD Team leader Yuji Ono, Principal Portfolio Management Specialist, PFPM, PPFD Team members Jennifer Baento, Portfolio Management Analyst, PFPM, PPFD Maria Madonna Carreon, Portfolio Management Analyst, PFPM, PPFD Paulita Comia, Portfolio Management Officer, PFPM, PPFD Regina Angela Ladaban, Portfolio Management Analyst, PFPM, PPFD Ma. Charina Lantican, Associate Portfolio Management Analyst, PFPM, PPFD Cerissa Camelle Obillos, Associate Portfolio Management Analyst, PFPM, PPFD Melinda Platon, Portfolio Management Analyst, PFPM, PPFD Michelle Luz Tan, Senior Portfolio Management Officer, PFPM, PPFD Luz Vargas, Portfolio Management Officer (Systems Support), PFPM, PPFD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CONTENTS Page Overview of the Sovereign Portfolio Statistics as of 31 December 2020 1 Sovereign Loan and Grant Portfolio 3 Status of Project Completion Report (PCR), Extended Annual Review Report (XARR) 4 and Technical Assistance Completion Report ADB Sovereign Portfolio Management Indicators 5 Sovereign Loans Approved and Committed 7 Grants Approved and Committed 10 Technical Assistance Grants Approved and Committed 12 Loans Not Yet Signed 20 Grants Not Yet Signed 21 Loans That Became Effective 22 Grants That Became Effective 26 Loans Awaiting Effectiveness 30 Grants Awaiting Effectiveness 32 Loans Closed 34 Loans Closed in the Previous Year but Reported Only in the Current Year 37 Grants Closed 38 Grants Closed in the Previous Year but Reported Only in the Current Year 41 Loans and Grants with Age 8 Years or More 42 TAs Active 90 Days After Completion Date 43 Project Loan Contract Awards 44 Project Grant Contract Awards 45 Project and Policy-Based Loan Disbursements 46 Project Loan Disbursements 47 Policy-Based Loan Disbursements 48 Project and Policy-Based Grant Disbursements 49 Project Grant Disbursements 50 Policy-Based Grant Disbursements 51 Status of Policy-Based Loan Tranche Releases 52 Status of Policy-Based Grant Tranche Releases 56 Loans and Grants with Cost Overruns 57 Cancellation of Loan and Grant Proceeds 58 Project Performance Ratings 69 Project Performance Ratings by Indicator 70 Loan Projects with Changes 71 Grant Projects with Changes 79 CONTENTS Page TAs with Major Change in Scope, Implementation Arrangements, or Both 85 Multitranche Financing Facility with Changes 86 2020 Project Completion Report (PCR) Program 87 2020 Extended Annual Review Report (XARR) Program 88 2020 Technical Assistance Completion Report (TCR) Program 89 Project Administration Missions 91 Technical Assistance Administration Missions 92 OVERVIEW OF THE SOVEREIGN PORTFOLIO1 STATISTICS AS OF 31 DECEMBER 2020 1. Performance of Key Sovereign Portfolio Indicators. The performance of key portfolio indicators is in Table 1 and 2. Table 1: Loans/Grants Portfolio Indicators Loans Grants No. Amount No. Amount Approvals 133 $25.5 billion 114 $1.3 billion Commitments 139 $25.8 billion 117 $1.3 billion Active Committed Portfolio 736 $92.4 billion 398 $7.3 billion Awaiting Signing 8 $1.6 billion 5 $96.6 million Became Effective 135 $24.6 billion 101 $1.5 billion Awaiting Effectiveness 48 $7.3 billion 38 $536.2 million Contract Awards $9.6 billion $603.0 million Disbursements $20.5 billion $1.0 billion Cancellations 102 $1.6 billion 55 $162.7 million Project Completion Reports Circulated 102 Project Administration Missions 622 No. = number. Source = Asian Development Bank data. Table 2: TA Portfolio Indicatorsa TAs No. Amount Approvals 357 $452.5 million Commitments 358 $479.3 million Active Committed Portfolio 950 $1.8 billion TAs Active 90 days after Completion Date 11 TA Completion Reports Circulated 180 TA Administration Missions 147 No. = number, TA = technical assistance. a Includes nonsovereign TAs. Source = Asian Development Bank data. 2. Revised Project Performance Rating. The new rating methodology comprising: (i) contract awards, (ii) disbursements, (iii) financial management, (iv) output and (v) safeguards, was applied to project loans and grants from January 2020. To ensure that ratings are reflective of actual project implementation status, ‘on track’, 'for attention' and 'at risk' are used in the new rating system. As of 31 December 2020, 83 projects (13.1%) were rated ‘at risk’ compared with the same period of 63 projects (9.8%) that were rated as ‘actual problem’ in the old rating system. This was due to the strengthening of the financial management, output, and safeguard indicators, and the impact of coronavirus disease (COVID-19). A project rated “at risk” consecutively for 4 quarters or more needs strong attention. The percentage of projects with “at risk” ratings for 4 quarters in 2020 was approximately 6% of active projects (39 projects). 1 The portfolio is based on commitments (signing). Includes fully administered cofinanced loans and grants. Excludes one equity investment ($150.0 million) and one sovereign guarantee ($498.3 million). 2 No. of Projects %* On Track 405 63.9% For Attention 146 23.0% At Risk 83 13.1% Total No. of Projects 634 100.0% * Numbers may not sum precisely because of rounding. 3. Approvals and Commitments in Response to COVID-19. Summary of newly approved and committed projects and programs for COVID-19 is in Table 3. Table 3: 2020 Approvals and Commitments Approvals Commitments No. of No. of Amount Amount Projects Projects Loans 41 $12,731.6 million 41 $12,701.4 million Of which: CPRO 28 $9,913.6 million 28 $9,913.6 million Grants 38 $464.6 million 37 $461.6 million Of which: CPRO 9 $276.9 million 9 $276.9 million TAs 77 $147.3 million 76 $145.3 million Total 156 $13,343.6 million 154 $13,308.3 million CPRO = COVID-19 Pandemic Response Option, TA = technical assistance. 4. COVID-19 Portfolio and Disbursement. The active committed portfolio in support of COVID-19 response, including (i) commitments under newly approved projects; (ii) support under ongoing projects within their current scope and (iii) repurposing2 of ongoing projects, were$13.2 billion, of which $12.7 billion were for loans, $356.6 million for grants, and $146.6 million for TAs. COVID-19 project disbursements for loans and grants amounted to $748.5 million while policy-based were $264.2 million and $8.6 billion were CPRO. 5. COVID-19 Related Impact on Existing Portfolio. Actual contract awards for project loans and grants were $10.2 billion (of which $557.7 million was for COVID-19 response projects), or an increase of 13.5% compared with 2019 ($9.0 billion). Disbursements of project loans and grants were $9.2 billion, or a decrease of 2.4% compared with 2019 ($9.5 billion). Ratios of ‘at risk’ project ratings for contract awards and disbursement indicators (the two of five indicators that were not revised in 2020) increased from 14.6% and 14.9% at the end of 2019 to 15.6% and 19.9% at the end of 2020, respectively. 6. COVID-19 Related Impact on Completion Report Circulation. One hundred two PCRs were circulated to the Board, against 107 PCRs programmed to be circulated in 2020. Twenty-nine XARRs covering 31 projects were circulated to the Board, against 33 programmed XARRs in 2020. This is considered as a big achievement in view of restrictions on mission travels, difficulty in mobilizing consultants, slow responses from borrowers, clients, and stakeholders, and prioritizing urgently required COVID-19 response projects. 2 Reallocation of existing resources from an ongoing project with scope changes. SOVEREIGN LOAN AND GRANT PORTFOLIOa 3 (as of 31 December 2020) Active Committed Loans Active Committed Grants ($ million) ($ million) SERD Total: $92,422 $880 Total: $7,312 CWRD 12% SERD $19,223 $23,476 21% 25% SARD $810 11% EARD $14,676 PARD 16% $1,042 14% CWRD $4,449 PARD 61% SARD $2,240 EARD $32,806 2% 35% $130 2% At Risk Projects Project Performance Ratings ADB: 83 projects 40 40% 100% 4% 11% 16% 13% 13% 36% 90% 22% 35 35% 24% 80% 17% 23% 23% 30 30% 24% 70% 28% 30 26% 60% 25 25% 50% 23 20 20% 40% 66% Number 18% 72% 70% Percentage 30% 64% 15 15% 60% 51% 15 20% 10 10% 10% 10% 8% 8 7 0% 5 5% CWRD SARD EARD PARD SERD ADB 0 0% CWRD SARD EARD PARD SERD On Track For Attention At Risk 2020 Contract Awards Performance Historical Loan and Grant Contract Awards Performance (without Policy-Based Loans and Grants) (without Policy-Based Loans and Grants, 2016 - 2020) 12,000 16,000 14,079 10,179 14,000 10,000 8,971 8,475 8,554 8,590 12,000 10,830 8,000 10,000 8,277 10,179 6,000 million 8,000 $ $ million $ 6,000 5,122 4,000 6,097 4,000 2,000 4,267 2,000 1,860 0 0 Actual Qtr1 Qtr2 Qtr3 Qtr4 Projections Actual 2016 2017 2018 2019 2020 2020 Disbursement Performance Historical Loan and Grant Disbursements Performance (with Policy-Based Loans and Grants) (with Policy-Based Loans and Grants, 2016 - 2020) 25,000 30,000 21,556 20,000 25,000 23,821 21,556 14,509 20,000 17,448 15,000 12,807 11,066 15,000 10,434 $ million $ 14,712 11,645 million $ 10,000 10,000 4,305 8,937 5,000 5,000 2,318 0 0 Qtr1 Qtr2 Qtr3 Qtr4 Actual Projections Actual 2016 2017 2018 2019 2020 4 CONTINUED 2020 Disbursement Performance Historical Loan and Grant Disbursements Performance (without Policy-Based Loans and Grants) (without Policy-Based Loans and Grants, 2016 - 2020) 10,000 14,000 9,469 11,509 9,500 9,244 12,000 9,168 10,000 9,000 8,004 9,244 8,550 8,000 8,500 $ million $ 5,596 6,000 million $ 7,954 5,268 8,000 4,000 3,344 2,887 2,000 7,500 1,357 0 7,000 Qtr1 Qtr2 Qtr3 Qtr4 Actual Projections Actual 2016 2017 2018 2019 2020 Note: Numbers may not sum precisely because of rounding.