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.

which is provided to ADB separately

10:24 AM    

To support the cumulative progress stated on the first certificate (Part 1 of Appendix 9D),
information on the physical progress of civil works being undertaken under FAW is
included in a periodic project progress report,
6
which is provided to ADB separately
from the WA and the certificates for FAW.
Conditions for Approval to Use the Force Account Works Procedure
9.28  This procedure is applicable to projects in which the borrower uses its own work
force, equipment, and other resources. It is also applicable when the size, nature, and
location of the works make competitive bidding unsuitable. ADB must also be satisfied
that the borrower’s construction facilities are adequate and efficient and the borrower
is capable of doing the work expeditiously at reasonable cost. The use of FAW
procedure should be provided for in the PAM.
Details on the Certificates for Force Account Works
9.29  Details on the certificates are as shown in the following table.
Item First Certificate Second Certificate
Indicates Cumulative percentage of completion of
physical progress of work
Cumulative amount in US dollars
which can be withdrawn
Current amount of claim based on
the percentage of work completed
Certified and
signed by
Project engineer or representative of
executing agency or project consultant
Representative of executing or
implementing agency
Mutually Exclusive Use of Simplified Documentation
9.30  The SOE and FAW procedures are separate simplified documentation procedures and,
therefore, should not be used in combination. For instance, expenditures under FAW
should not be listed in the SOE form for liquidation.