/France

ADB works with the Agence Française de Développement (AFD), responsible for France’s official development aid. The Inter-Ministerial Committee for International Cooperation and Development, chaired by the Prime Minister, defines the guidelines for France’s development cooperation policy. Three ministries steer and implement the cooperation policy: the Ministry of Foreign and European Affairs; the Ministry of the Economy and Finance; and the Ministry of the Interior, Overseas France, Local Authorities and Immigration.

France’s support to Asia focuses on but is not limited to climate change, natural resource management and biodiversity, blue economy, and social imbalances and inequalities. Other areas that may be focused on are regional cooperation and integration, social development, inclusive business, contribution to the Sustainable Development Goals, mobilizing private sector financing, and working with partners or coalitions of various stakeholders. This support is provided in countries of mutual interest to ADB and the AFD in the following regions: Central and West Asia, East Asia, Pacific, South Asia, and Southeast Asia.

In October 2022, ADB and the AFD signed a partnership framework agreement (PFA) for 2022–2028 on the sidelines of the World Bank’s annual meeting in Washington, DC. Under the PFA, both institutions aim to reach $3 billion in combined financing for the first 3 years of collaboration. ADB and the AFD hold biannual technical clinics to discuss projects for possible cofinancing and annual high-level meetings to share priorities and promote strategic partnerships. In 2022, the clinic took place on 25 October and was followed by the high-level meeting on 26–27 October.

Sovereign Cofinancing. The AFD cofinances ADB’s sovereign investment and technical assistance (TA) projects through joint- or component-based untied grants and loans. Since 2003, the AFD has cofinanced 61 investment projects and TA across the Central and West, East, South, and Southeast Asian regions. In 2022, the AFD supported two TA projects through grants from their single-partner trust fund Cooperation Fund for Project Preparation in the Greater Mekong Subregion and Other Specific Asian Countries (AFD GMS). The AFD also supported five investment projects through loan project-specific cofinancing, which includes $171.7 million for a policy-based loan that addresses climate change in the Philippines.

ADB and the AFD established the AFD GMS in 2004. This trust fund finances project preparatory technical assistance operations that could lead to cofinancing opportunities with the AFD. Specific focus is placed on the implementation of subregional projects in infrastructure and urban planning (sustainable cities, urban transport, railways); education and vocational training; agriculture and food security; sustainable development and climate change (adaptation and mitigation); and health and social protection (elderly care, universal health coverage). As of 31 December 2022, the trust fund has a total contribution commitment of €8.8 million (around $10.8 million) with an available balance of about $2.4 million. A replenishment of €1 million (around $1 million) was committed in June 2022.

Nonsovereign Cofinancing. The Trade and Supply Chain Finance Program (TSCFP) supported over 360 transactions valued at $2.1 billion with banks domiciled in France from inception to December 2022. During the same period, the TSCFP supported over 250 French exports and/or imports valued at $208.6 million. In 2022 alone, the TSCFP supported 21 transactions valued at $55.7 million with banks domiciled in France and supported 26 French exports and/or imports valued at $17.7 million. Exports and/or imports were mainly to/from Viet Nam, Pakistan, and Bangladesh. Underlying goods involved mostly food and agriculture-related goods, industrial machinery and capital goods, as well as raw and non-energy commodities.

Special funds. France contributes to ADB special funds where contributions from financing partners are administered with the same level of care as ADB’s own resources. Since becoming a member in 1970, France has committed a total of $1.52 billion to special funds, of which $1.45 billion went to the Asian Development Fund (ADF). The ADF provides grants to ADB’s low-income developing member countries to promote poverty reduction and improvements in the quality of life.