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
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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.

financing, the borrower must arrange a refund as instructed by ADB

9:01 AM    

If funds withdrawn from the loan account are determined to be in excess or ineligible
for ADB financing, the borrower must arrange a refund as instructed by ADB.
The refund is normally credited to the borrower’s loan account on the date of receipt
in ADB’s depository account. A money transfer fee or bank charge deducted from
the refund amount, if any, may be absorbed by the loan account with due attention to
considerations of economy and efficiency.
4.22  For closed loans, ADB may apply the amount refunded to debt service (e.g., interest or
principal) if the amount of refund is small.
4.23  ADB applies the current value of the refund. In some cases it may convert the currency
refunded into one of the currencies outstanding on the loan account. In the event
there is exchange difference between the amount charged to the loan account when
the original payment was made and the equivalent amount at the time of refund, the
exchange difference may be absorbed by the borrower’s loan account, if no restriction
is imposed (see Sections 10.22–10.23 for the refund of advance to the imprest account).
4.24  Retention money and bank guarantee.Payments of retention money under civil
works and supply contracts are usually made at the end of warranty or operational
acceptance or after the issuance of a performance certificate by the employer and/or
buyer. Where payment of retention money is due more than 4 months past the loan
closing date, and no extension of the closing date is intended, ADB may disburse the
retention money to the contractor or supplier against an unconditional bank guarantee
of equivalent amount provided by the contractor or supplier to the EA, or based on
other financial arrangements acceptable to ADB.
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The unconditional bank guarantee is
issued in compliance with the borrowing government’s financial rules and regulations
by a reputable bank in a manner acceptable to ADB.