Final disbursement.Preparation of WA(s) for final disbursement(s) of project loan
and tranche disbursement of a policy-based loan should be closely coordinated
between ADB and the borrower and/or EA, particularly if the remaining unutilized
balance is expected to be fully utilized.
4.17 Winding-up period.10
The borrower may make withdrawals from the loan account
for expenditures incurred on or before the loan closing date. Expenditures incurred
after the loan closing date will not be financed under the loan. ADB may allow up to
4 months after the loan closing date (i) for the borrower’s WAs to be submitted to ADB
for expenditures incurred on or before the loan closing date, and (ii) for the borrower
to fully liquidate expenditures incurred on or before the loan closing date. After the
winding-up period, WAs, including requests for liquidation, will not be accepted.
Extension of the winding-up period, on an exceptional basis, may be approved by ADB
(Section 4.14).
4.18 Within 2 months after the winding-up period for submission of documents, the
borrower should fully refund any outstanding imprest account balances to ADB. If the
borrower fails to fully refund such balances, ADB may, among other corrective actions,
decide not to allow the use of the imprest fund procedure under the borrower’s new
projects until such time as the refund is received.
4.19 Payment of final audit fees.If external auditor’s fees are financed by ADB, it is
best practice to pay the audit fee before the loan closing date after completing the
final audit (Section 4.15). When audit fees under a project need to be paid after the
closing date, special arrangements may be required for payment of the final audit fee
from the loan account. External auditor’s fees for the final fiscal year may be disbursed
from the loan account, under condition that (i) the borrower signs a contract for the
final audit prior to the loan closing date, and (ii) the contract is a lump-sum or fixedprice contract that requires completion
11
of audit within 6 months after the loan
closing date. If the audit work cannot be completed during the winding-up period, and
the final audit fee will be paid through the escrow account, full supporting documents
should be attached to the WA (see Appendix 4D for more details).
4.20 Refunds.All refunds must be paid to ADB’s accounts at its depository banks with
payment details indicating (i) references such as loan number, (ii) description or
nature of the refund, and (iii) currency and amount of refund. The borrower and/or
EA should send advice to ADB’s Treasury Services Division (TDTS) and CTLA once
a refund is made.

Authorized Signatory 5.1 Each withdrawal application (WA)

9:10 AM    

Authorized Signatory
5.1  Each withdrawal application (WA) is signed by the borrower’s duly authorized
representative(s). In accordance with the Loan Regulations and loan agreement, the
Asian Development Bank (ADB) requires the borrower’s representative designated
in the loan agreement to furnish sufficient evidence of the authority of the person(s)
who will sign the WA, together with their authenticated specimen signatures
(Appendix 4B). The evidence must reach ADB before the borrower submits the
first WA.
Allocating Loan Proceeds
5.2  Items to be financed by ADB loans are usually grouped into cost categories.
The loan agreement between the borrower and ADB presents the amount allocated
to each category of project expenditure (normally, this is presented in “Attachment to
Schedule 3” of the loan agreement). Reallocation from one category to another may be
allowed unless prohibited in the loan agreement.
5.3  The allocation of loan proceeds to the various categories must be completed and
inserted for all types of project loan agreements (including sector loans, unless the
information necessary to complete the allocation is not available at the time of the
approval). For financial intermediation loans, the allocation of loan proceeds may or
may not be attached to the loan agreement.
Withdrawal Application
5.4   For all disbursement,
1
ADB must receive a WA in the prescribed form. A WA is a
written request from the borrower2
to ADB to disburse funds from the borrower’s loan
account. A WA consists of
ȕ the application itself in letter form (Appendixes 7A, 8A, 10A, and 11A);
ȕ summary sheet(s) for each cost category claimed (Appendixes 7B and 8B);
ȕ supporting documents; and
ȕ summary sheet(s) and supporting documents, which may be substituted by
simplified documentation, if approved (Sections 9.7–9.30).