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.

If, during project implementation, the borrower finds it necessary to use the procedure, it may request ADB

10:38 AM    

Approval of Procedure
10.4  During project preparation, ADB staff assesses the need for the imprest fund
procedure. Use of the procedure must be provided for in the project administration
manual (PAM). If, during project implementation, the borrower finds it necessary to
use the procedure, it may request ADB’s approval (Sections 4.13–4.14).
Basic Requirements
10.5  A signed WA for imprest fund (Appendix 10A) must be submitted to ADB, together
with required supporting documents (Section 10.33).
Establishing the Imprest Account
10.6  The borrower, EA, or IA is required to open a separate bank account3
for depositing
advances and for the exclusive use of the project (unless otherwise approved by ADB).
The imprest account should be maintained in a bank account without restriction on
withdrawing funds at any time (e.g., current account) and is opened in the name of the
borrower, EA, IA, or project, as appropriate.
10.7  The borrower, EA, or IA who established the imprest account in its name shall be
accountable and responsible for proper use of advances to the imprest account,
including advances to the subaccounts, if approved and used (Sections 10.24–10.27).
Location of the Imprest Account
10.8  The imprest account may be opened at the central bank of the borrower’s country or
in a commercial bank the borrower, EA, or IA designates as appropriate, provided that
the institution chosen is capable of
ȕ executing foreign exchange and local currency transactions;
ȕ opening letters of credit (LCs) and handling a large volume of transactions; and
ȕ issuing detailed monthly bank statements promptly.
10.9   ADB may decide not to accept a financial institution for the opening and/or
maintenance of the imprest account if the institution retains the right to assert or
asserts a claim to set off, seize, or attach amounts on deposits to the imprest account
maintained by the financial institution in order to satisfy amounts due to the bank by
the borrower, EA, or IA.
3
Some countries require transferring the ADB loan proceeds to the borrower’s bank account or budget
account before transferring advances to the imprest account. Such borrower’s account is not separately
established for the purpose of a project and does not directly pay out project expenditures; therefore, it is
considered as a “conduit” or “pass-through” purpose account, but not the imprest account. The conduit or
pass-through purpose account should be identified and reflected in the fund flow chart and disbursement
arrangements of the PAM.
ISSUED: FEBRUARY 2015