What is the Asian Development Fund?

The Asian Development Fund (ADF) provides grants to ADB's poorest and most vulnerable developing member countries (DMCs). Established in 1974, the ADF initially provided loans on concessional terms. Grants were introduced in 2005, and beginning in 2017, with ADB’s concessional lending financed from its ordinary capital resources (OCR), the ADF has become a grant-only facility.

How is ADF Funded?

ADF resources mainly come from contributions of ADB's member countries, which are mobilized under periodic replenishments, and net income transfers from OCR. Initial contributions to the ADF were pledged in 1973 and designated as ADF I. Since then, the ADF has been replenished several times. The thirteenth replenishment (ADF 14) will support grant operations during the period 2025–2028.

Thirty-nine members of ADB have provided direct contributions to the ADF since its establishment:

Who is eligible for ADF assistance?

ADB uses a three-tier DMC classification system: groups A, B, and C. Classification is determined by two criteria: gross national income (GNI) per capita (based on the Atlas method) and creditworthiness. ADB uses the operational cutoff for eligibility of the World Bank’s International Development Association as the income threshold. Group A DMCs are eligible only for concessional resources; group B DMCs are eligible for concessional resources and have access to regular OCR lending; and group C DMCs have access only to regular OCR lending.

Among group A countries, 13 DMCs are eligible to receive ADF grant country allocations in 2025: Bhutan, Federated States of Micronesia, Kiribati, Kyrgyz Republic, Maldives, Marshall Islands, Nauru, Samoa, Solomon Islands, Tajikistan, Tonga, Tuvalu, and Vanuatu.

In addition, under the ADF 14 framework, theme-based ADF grants are available for group A countries, and, on a selective basis, for group B countries:

• The thematic window provides ADF grants to incentivize governments to consider projects with strong national and regional positive externalities with a focus on the following strategic areas: (i) supporting climate change adaptation and disaster risk reduction; (ii) fostering regional cooperation and integration, including the provision of regional public goods; and (iii) achieving Sustainable Development Goal 5 transformative gender agenda.
• The community development window for the People of Afghanistan and Myanmar provides ADF grants to support the people of Afghanistan and Myanmar, including displaced persons from Myanmar in Bangladesh, to preserve development gains and provide livelihood and development opportunities.
• The crisis response window provides ADF grants to cover the costs of relief, early recovery, and reconstruction following disasters and emergencies; and for ex ante financing instruments that enhance disaster preparedness and resilience.
• The private sector window provides ADF grants for eligible nonsovereign operations to promote private sector growth, expand investment, and mobilize private finance.

How are ADF resources utilized?

ADF-financed operations serve many of the economic, strategic, and humanitarian interests of contributing members in a cost-effective manner. No other multilateral fund is as directly and broadly involved in the economic and social development of the poorest and most vulnerable countries in Asia and the Pacific.

ADB member countries see ADF financing as important for achieving ADB's vision of "Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific" as presented in Strategy 2030. In support of this overarching objective, ADF financing is used to support development projects and programs that include:

• infrastructure;
• policy support and policy reform;
• production capacity, human development, and environmentally sustainable investments;
• good governance and capacity building for development management; and
• regional cooperation.