Technical Assistance Disbursement Handbook

1 JULY 2020 Technical Assistance Disbursement hanDbookASIAN DEVELOPMENT BANKASIAN DEVELOPMENT BANKT echnical Assistance Disbursement hanDbookJULY 2020 Creative Commons Attribution IGO license (CC BY IGO) 2020 Asian Development Bank6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, PhilippinesTel +63 2 8632 4444; Fax +63 2 8636 rights reserved. Published in 2020. ISBN 978-92-9262-291-6 (print); 978-92-9262-292-3 (electronic); 978-92-9262-293-0 (ebook)Publication Stock No. TIM200207-2 DOI: The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use.

2 The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not 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 work is available under the Creative Commons Attribution IGO license (CC BY IGO) By using the content of this publication, you agree to be bound by the terms of this license. For attribution, translations, adaptations, and permissions, please read the provisions and terms of use at # CC license does not apply to non-ADB copyright materials in this publication. If the material is attributed to another source, please contact the copyright owner or publisher of that source for permission to reproduce it.

3 ADB cannot be held liable for any claims that arise as a result of your use of the contact if you have questions or comments with respect to content, or if you wish to obtain copyright permission for your intended use that does not fall within these terms, or for permission to use the ADB to ADB publications may be found at : In this publication, $ refers to United States dollars. Tables and figures without explicit sources are those of design by Mike Cortes. Printed on recycled paperiiiconTenTs ForeworD ---------------------------------------- ---------------------------------------- ----v abbreviaTions ---------------------------------------- -------------------------------------vi1 The Handbook Purpose .. Applicability .. Inquiries ..22 Technical Assistance oPeraTions aT aDb Objectives.

4 Definitions .. Types of Technical Assistance .. Scope of Technical Assistance .. Technical Assistance Products .. Technical Assistance Disbursement Administration .. Roles and Responsibilities .. Disbursement Arrangements .. Key Technical Assistance Key Dates ..73 Technical Assistance aDminisTraTion Policies anD GuiDelines Basic Principles .. Eligible Expenditures .. Retroactive Financing .. Cost Sharing .. Cofinancing .. Technical Assistance Cost Recovery .. Procurement of Goods, and Consulting and Nonconsulting Services .. Development Partnerships .. Technical Assistance Changes .. Cancellation of Technical Audit Arrangements .. Closing a Technical Assistance contract .. Closing a Technical Assistance Account ..14 CONTENTSiv4 Technical Assistance Disbursement ProcessinG reQuiremenTs Technical Assistance Account.

5 Standard Cost Categories .. Technical Assistance contract Numbering .. Key Requirements for Technical Assistance Disbursement .. Authorized Signatory .. Technical Assistance Claims .. Supporting Documents .. Disbursement Currency .. Exchange Rates Used to Value Disbursement .. Payment Instructions .. Endorsement of Disbursement .. Disallowances and Nonpayments ..215 Disbursement ProceDures Disbursement Procedures .. Minimum Value .. Reimbursement .. Direct Payment .. Advance Procedure .. Statement of Expenditures Procedure ..25aPPenDiXes ---------------------------------------- ---------------------------------------- -------26chaPTer 3: Technical Assistance aDminisTraTion Policies anD GuiDelines ---273a Eligible and Ineligible Expenditures ..273b Technical Assistance contract Closing Sample E-Mail ..313c Technical Assistance Closing Forms.

6 32chaPTer 4: Technical Assistance Disbursement ProcessinG reQuiremenTs ---344a Cost Estimate and Financing Plan ..344b Confirmation of Acceptance ..384c Technical Assistance Claim Forms ..394D Supporting Documents ..45chaPTer 5: Disbursement ProceDures ---------------------------------------- -------------535a Technical Assistance Claim Review Checklist ..535b Quick Reference Guide for Claim Submission ..545c Advance Fund Forms ..555D Statement of Expenditures Sheet ..58vForeworDThe Technical Assistance Disbursement Handbook ( Handbook ) provides guidance on Disbursement arrangements for Technical Assistance (TA) financing provided or administered by the Asian Development Bank (ADB).This Handbook is intended to serve as a reference guide for ADB staff and TA stakeholders consultants, executing agencies, cooperating institutions, cofinanciers, suppliers, and other contracting parties in designing and operating TA Disbursement activities to ensure efficient and effective project Handbook incorporates reforms and changes in organization, policies, and procedures related to TA projects, since 2010.

7 Such changes include ADB s Technical Assistance Claims Partner (TACP) portal introduced in 2018 to enable online submission and processing of TA claims. Additionally, the Handbook is streamlined and restructured so all users can easily follow Handbook is available electronically on the ADB website: The Controller s Department will amend the Handbook from time to time, to reflect further changes in TA Disbursement administration policies and Asian Development BankAPF Advance Payment FacilityAPFS audited project financial statementsBIC Bank Identifier CodeCMS consultant Management SystemCTL Controller s DepartmentCTLA Controller s Department, Loan Administration DivisionCTLA-TA Controller s Department, Loan Administration Division Technical Assistance SectionDMC developing member countryEA executing agencyIA implementing agencyKSTA knowledge and support Technical assistanceNTP notice to proceedOAI Office of Anticorruption and IntegrityOM Operations ManualMOU memorandum of understandingPAI Project Administration Instructions RRP Report and Recommendation of the PresidentRETA regional Technical assistanceSOE statement of expendituresSSTA small-scale Technical assistanceSDPF Sustainable Development Partner Funds DivisionSWIFT Society for Worldwide Interbank Financial TelecommunicationTA Technical assistanceTACP Technical Assistance Claims Partner (portal)

8 TAFA Technical Assistance framework agreementTAIS Technical Assistance Information SystemTAS transaction advisory servicesTASU Technical Assistance Supervising UnitTRTA transaction Technical assistance1 The hanDbook1 The hanDbook1 Purpose The Handbook is intended to familiarize executing agencies (EAs) or implementing agencies (IAs), cooperating institutions,1 consultants, service providers, suppliers, and others,2 as well as ADB staff with the procedures for disbursing Technical Assistance (TA) This Handbook covers the policies and procedures of ADB for disbursing TA grants,3 funded in whole or in part from ADB s Special Funds resources, as well as from external funding sources administered by ADB, except when ADB and the relevant cofinancier agree otherwise. Consulting services in this Handbook refer to services contracted to help prepare, implement, and/or operate projects and to carry out TA activities.

9 The terms consultant , consulting firm, service provider, supplier, and knowledge partner, as used in this Handbook , refer to any private or public entity with the capacity to provide consulting Reference to the term TA project in this Handbook includes programs, projects, transactions, and facilities financed with TA The Handbook should be used in conjunction with TA documents (para. ) and relevant ADB policies and This Handbook does not provide comprehensive guidance on all documents, policies, and procedures that are referenced. Therefore, readers should refer to the relevant source This Handbook supersedes all previous handbooks and guidelines on TA Disbursement and takes effect immediately. However, this Handbook does not override specific arrangements stipulated in TA agreements or Cooperating institutions include government-constituted bodies, regional and international organizations, and training Others include any entity or individual other than those previously mentioned, who are entitled to receive TA funds, pursuant to an agreement or a TA financed by loans is disbursed in accordance with ADB Loan Disbursement Handbook , 2017, as amended from time to time.

10 4 Such entities may include international and national consulting firms, engineering or construction firms, management firms, procurement agents, auditors, United Nations (UN) agencies and other multilateral organizations, universities, research institutions, government agencies, civil society organizations and nongovernment organizations, when such entities provide consulting Key guidelines governing TA operations include: ADB. 1966. Agreement Establishing Asian Development Bank - ADB Charter. Manila; Operations Manual; Project Administration Instructions; Procurement Guidelines. For projects approved before 1 July 2017: Guidelines on the Use of Consultants by Asian Development Bank and Its Borrowers. For projects approved on or after 1 July 2017: ADB Procurement Policy and administrative Assistance Disbursement HANDBOOK2chapter TA Disbursement is handled by the Technical Assistance Section of the Loan Administration Division within the Controller s Department (CTL).