Technical Assistance Report

Transcription

1 Technical Assistance Report Project Number: Knowledge and Support Technical Assistance (KSTA) December 2017 Islamic Finance for Inclusive Growth (Financed by the Investment Climate Facilitation Fund under the Regional Cooperation and Integration Financing Partnership Facility) This The views document expressed is being herein disclosed are those to of the the public consultant in accordance and do not with necessarily ADB's Public represent Communications those of ADB s Policy members, Board of Directors, Management, or staff, and may be preliminary in nature.

2 ABBREVIATIONS ADB Asian Development Bank DMCs developing member countries TA technical assistance NOTE In this report, "$" refers to US dollars. Vice-President Wencai Zhang, Operations 1 Director General Sean O'Sullivan, Central and West Asia Department (CWRD) Christopher Stephens, Office of the General Counsel (OGC) Directors Werner Liepach, Officer-in-Charge, Public Management, Financial Sector, and Trade Division, CWRD Ashraf Mohammed, Assistant General Counsel, OGC Team leaders Team members Peer reviewer Joao Farinha-Fernandes, Senior Financial Sector Economist, CWRD Asghar Ali Syed, Senior Counsel, OGC Shauzab Ali, Senior Project Officer (Financial Sector), CWRD Marvis Francisco, Legal Operations Assistant, OGC Lyle Raquipiso, Senior Economics Officer, CWRD Maria Celeste Yabut, Senior Operations Assistant, CWRD Mohd Sani Mohd Ismail, Senior Financial Sector Specialist, Southeast Asia Department In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

3 CONTENTS Page KNOWLEDGE AND SUPPORT TECHNICAL ASSISTANCE AT A GLANCE I. INTRODUCTION 1 II. ISSUES 1 III. THE TECHNICAL ASSISTANCE 3 A. Impact and Outcome 3 B. Outputs, Methods, and Activities 3 C. Cost and Financing 4 D. Implementation Arrangements 5 IV. THE PRESIDENT'S DECISION 5 APPENDIXES 1. Design and Monitoring Framework 6 2. Cost Estimates and Financing Plan 9 3. List of Linked Documents 10

4 Project Classification Information Status: Complete KNOWLEDGE AND SUPPORT TECHNICAL ASSISTANCE AT A GLANCE 1. Basic Data Project Number: Project Name Islamic Finance for Inclusive Growth Department CWRD/CWPF /Division OGC Country REG (AFG, KAZ, KGZ, PAK, TAJ) Executing Asian Development Bank Agency qq 2. Sector Subsector(s) Financing ($ million) Finance Finance sector development 2.00 Total 0.00 qq 3. Strategic Agenda Subcomponents Climate Change Information Inclusive economic Pillar 1: Economic opportunities, Climate Change impact on the growth (IEG) including jobs, created and expanded Project Low qq 4. Drivers of Change Components Gender Equity and Mainstreaming Partnerships (PAR) Bilateral institutions (not client government) Official cofinancing No gender elements (NGE) Private sector development (PSD) Conducive policy and institutional environment qq 5. Poverty and SDG Targeting Location Impact Geographic Targeting No Not Applicable Household Targeting SDG Targeting No Yes SDG Goals SDG8 Qq 6. Risk Categorization Low Qq 7. Safeguard Categorization Safeguard Policy Statement does not apply qq 8. Financing Modality and Sources Amount ($ million) ADB 0.00 None 0.00 Cofinancing 2.00 Investment Climate Facilitation Fund under the Regional Cooperation and 2.00 Integration Financing Partnership Facility Counterpart 0.00 Qq None 0.00 Total 2.00 Source: Asian Development Bank This document must only be generated in eops Generated Date: 15-Dec :17:09 PM

5 I. INTRODUCTION 1. Islamic finance is one of the fastest growing segments of international finance in the world. 1 The total worth of the Islamic finance industry across its three main sectors banking, capital markets, and takaful 2 was estimated at $1.89 trillion in 2016, 3 and global Islamic finance assets are forecast to reach $3.5 trillion by Based on the exponential growth and the increasing importance of Islamic finance globally, the governments of Afghanistan, Kazakhstan, Kyrgyz Republic, Pakistan, and Tajikistan are seeking to further develop their respective Islamic finance industries. The knowledge and support technical assistance (TA) will support the development of the Islamic finance industries in these target Asian Development Bank (ADB) developing member countries (DMCs) through (i) Islamic finance-related legal and regulatory reforms; (ii) capacity building for governmental, regulatory, and private sector entities to strengthen their ability to develop, regulate, and deliver Islamic financial services; and (iii) efforts to improve public understanding of the Islamic financial services available in their respective DMCs. 5 II. ISSUES 2. Asia is home to around 60% of the world s Muslims and is at the forefront of the development of Islamic finance. Its Islamic financial services industry accounts for 22.5% of global Islamic finance assets. Much of this growth stems from the efforts of specific Asian governments (e.g., Malaysia and Brunei) to support and develop their domestic Islamic finance industries. Malaysia s Islamic financial institutions hold 23.8% of the country s total domestic banking assets, and the country accounts for 9.3% of Islamic banking assets globally; in Brunei, Islamic banking now accounts for 57% of the total domestic banking market (footnote 3). However, apart from these developed markets, where growth of Islamic finance has been significant, the lack of legal, regulatory, and institutional structures and poor understanding of Islamic finance has restricted its development in Asia. 3. Islamic finance can be a source of infrastructure financing, enable portfolio diversification for institutional and high net-worth investors, and serve as an alternative source of financing for lower-income populations that prefer Sharia-compliant financial services. Sukuk has been increasingly used recently to fund infrastructure development projects. 6 The volume of annual sukuk issuances reached $75 billion in 2016, bringing the volume of outstanding sukuk close to $320 billion (footnote 3). Although Muslim-majority countries including Brunei, Indonesia, Malaysia, and Pakistan are leading the way in sukuk issuances, non-muslim majority countries are increasingly looking towards sukuk to tap into a new investor base. The United Kingdom, Hong Kong, China, and Luxembourg issued their inaugural sukuk in 2014, which were heavily oversubscribed. Similarly, sukuk issued in Bahrain, Pakistan and the United Arab Emirates have also been vastly oversubscribed. Given the interest that sukuk are generating among global investors, infrastructure sukuk seems to be an effective instrument for countries to raise funds to support their development projects. 1 Islamic Financial Services Board Islamic Financial Services Industry Stability Report. Kuala Lumpur. 2 Takaful is a type of Islamic insurance where members contribute money into a pooling system to guarantee each other against loss or damage. 3 Islamic Financial Services Board Islamic Financial Services Industry Stability Report. Kuala Lumpur. 4 Thomson Reuters State of the Global Islamic Economy Report 2016/ The TA first appeared in the business opportunities section of ADB s website on 30 March A sukuk is an investment instrument (traded like a conventional bond) that provides the investor with undivided ownership of an underlying asset.

6 2 4. Islamic finance may also increase financial inclusion. Some Muslim households abstain from opening conventional saving accounts because of their interest-generating feature, which is prohibited under Islamic jurisprudence. For example, in Afghanistan, 33% of adults surveyed in a recent study cited religious reasons as a barrier to finance, compared to less than 2% in Malaysia and Kuwait. 7 Islamic finance can serve as an alternative financing source for unbanked individuals (including women) who have refrained from using conventional financing services because of religious considerations. 5. Despite its growth and potential, Islamic finance faces challenges, which are particularly evident in emerging Islamic finance markets, and include the following: (i) (ii) (iii) Inadequate financial sector laws and regulations. Conventional financial sector laws and regulations (including banking, taxation, and insurance regulations) do not normally recognize the requirements of Islamic finance. 8 A holistic legal and regulatory framework is needed to enable parity of treatment to enable Islamic banks and conventional banks to operate on an equal footing). 9 Shortage of professionals. Outside the developed Islamic finance markets, there are insufficient qualified Islamic finance professionals proficient in both conventional and Islamic financial principles. Training of government officers, regulators, and market professionals in this complex area of expertise is complicated by the lack of opportunities to gain operational experience and acquire a level of comfort through learning-by-doing in markets where Islamic finance is still incipient. Lack of public awareness. Apart from developed Islamic finance markets and sophisticated institutional investors, the public understanding and appreciation of Islamic finance is very limited, with many investors seeing it as a type of financing solely for Muslims. However, investors can benefit from the risk diversification features of Islamic financing, while the poor who have shunned conventional banking for religious reasons can be provided with information on the benefits and risks of Islamic finance products for savings purposes. 6. The selection criteria for the target DMCs included these challenges to the growth of Islamic finance in combination with an assessment of the potential for growth of Islamic finance in these countries. Pakistan has a relatively more advanced regulatory framework, and Islamic finance has deeper market penetration; although capacity constraints remain evident and public awareness requires improvement, Pakistan s potential for growth is probably largest among the countries that fall under ADB s Central and West Asia Department. Afghanistan s potential is also promising, but its regulatory framework is still in its infancy, capacity is severely limited, and public understanding (particularly in rural areas) is very low. In terms of their level of development, the remaining three target DMCs fit broadly between Afghanistan and Pakistan. In Kazakhstan, the Astana International Financial Centre was established in 2016 with the objective of transforming the country into a regional hub for Islamic finance in Central Asia by The financial hub is currently in the process of developing a comprehensive regulatory framework for its Islamic 7 Malaysia International Islamic Finance Center Global Financial Inclusion Islamic Finance Meets the Challenge. 8 M. Iqbal and P Molyneux Thirty Years of Islamic Banking: History, Performance, and Prospects. New York: Palgrave Macmillan. p M.M. Husain Islamic Finance: Stability, Resilience and Regulatory Issues. Background paper for the conference on Islamic Finance for Asia: Development, Prospects, and Inclusive Growth. Manila. 4 5 November. For example, the tax systems (including land tax and stamp duties) in many countries have historically catered for conventional finance, and Islamic finance products typically do not come to enjoy equal treatment.

7 3 financial system. Kazakhstan currently has one full-fledged Islamic bank, the Al-Hilal Bank. In 2014, Tajikistan adopted legislation introducing Islamic banking in the country. The legislation defines the scope of Islamic banking operations and sets out the licensing requirements for financial institutions intending to operate in accordance with Sharia-compliant principles. Following approval of the Islamic banking legislation, Bonki Rushdi Tojikiston, a Tajikistan-based bank, signed an agreement with the private sector arm of the Islamic Development Bank to support its conversion to a full-fledged Islamic Bank, which is expected to be the first Islamic bank in the country. With respect to the Kyrgyz Republic, according to the International Finance Corporation, almost 80% of the country s micro, small, and medium-sized enterprises have indicated their strong preference for Islamic banking products and services. 10 However, regulatory impediments have resulted in slow growth of Islamic finance in the Kyrgyz Republic, with only one Islamic bank currently operating in the country. Therefore, although the constraints across these target DMCs are similar, each DMC has unique challenges that requires tailoring of the various inputs. 7. The proposed TA is designed to address the key constraints in the development of a holistic Islamic finance sector in the target DMCs, and thereby contribute to the sustainability and long-term growth of Islamic finance sectors in these DMCs. The proposed TA will build on previous regional ADB TA for Islamic finance sector development; 11 one lesson (from the 2009 TA project) is that a framework is needed to assist the sharing, by countries that already implemented Islamic finance standards, of their implementation experience with countries that seek to achieve that. The proposed TA aims to facilitate such cross-border dialogue between DMCs. A. Impact and Outcome III. THE TECHNICAL ASSISTANCE 8. The TA is aligned with the following impact: an effective and well-functioning Islamic finance sector operating in the target DMCs developed. The TA will have the following outcome: Islamic finance in the target DMCs expanded. 12 B. Outputs, Methods and Activities 9. Experience in established Islamic financial markets indicates that once a robust legal and regulatory framework is established, market forces ensure the sustainability of the Islamic finance sector. Accordingly, ensuring Islamic finance sector sustainability requires that (i) an appropriate regulatory framework is in place; 13 (ii) regulators develop sound technical knowledge of Islamic finance products such that they can provide appropriate regulatory oversight and can regulate innovative Islamic financial products that the private sector may develop; and (iii) consumers are aware of available Islamic financial products, and the products are considered compliant with 10 International Finance Corporation Islamic Banking and Finance Opportunities across Micro, Small, and Medium Enterprises in the Kyrgyz Republic. Bishkek. 11 Including (i) ADB Technical Assistance for Implementing Prudential Standards in Islamic Finance. Manila, which supported implementation of Islamic prudential standards developed by the Islamic Financial Services Board in Afghanistan, Bangladesh, Indonesia and Pakistan; and (ii) ADB Technical Assistance for the Development of Prudential and Supervision Standards for Islamic Financial Markets. Manila, which sought to harmonize Islamic prudential standards, data collection and risk measurement in selected common member countries of ADB and the Islamic Financial Services Board. 12 The design and monitoring framework is in Appendix Several Islamic financial products require multiple transactions to achieve functional equivalence with conventional counterparts, and are subject to additional tax burdens under most existing legal and tax systems. Countries seeking to develop indigenous Islamic financial markets should consider taxation and regulatory changes.

8 4 Islamic jurisprudence. 10. Output 1: Legal and regulatory reforms in Islamic finance commenced. A gap analysis will be carried out in each DMC to identity (i) gaps and impediments in current legislative, regulatory, and institutional frameworks (including banking, taxation, insurance, and governance); and (ii) the legal, regulatory, and institutional reforms required to support development of a robust Islamic finance system within the DMC. 14 Based on the gap analyses, legal, regulatory, and institutional reforms will be recommended for the target DMCs. Subsequent to ADB and DMC endorsement, draft legislation and regulations will be prepared. 11. Output 2: Regulatory and private sector capacity to deliver Islamic finance services strengthened. Relevant governmental departments, regulatory bodies (such as central banks and securities and exchange commissions), and private sector participants in the target DMCs will receive training to improve governmental, regulatory, and private sector capacity for Islamic finance. Training methods will include conferences, intensive workshops, and training courses developed by expert consultants. 15 Conferences will be held in Pakistan and Kazakhstan at the beginning of the TA to discuss the impediments, issues, and scope for Islamic finance; 16 a single conference to be held at the end of the TA implementation period will provide the opportunity to improve collaboration and knowledge sharing among all target DMCs. 12. Theoretical training for governmental, regulatory, and private sector participants will be followed by practical training initiatives, to enable them to identify priority public and private sector projects in the target DMCs that may be financed through Islamic finance. Participants will be instructed on how to structure Islamic finance transactions and prepare financing proposals for such priority projects. At least two of the priority projects (which may be financed by ADB) for which financing proposals have been developed will be earmarked for Islamic financing in the target DMCs. 13. Output 3: Public understanding of Islamic products in the target developing member countries improved. This output will raise awareness by disseminating information to the public via the media, including radio public service messages, brochures, and awareness events, with a special effort to address a female audience on the benefits and risks of available Islamic finance products for saving and borrowing. C. Cost and Financing 14. The TA is estimated to cost $2,150,000, of which $2,000,000 will be financed on a grant basis by the Investment Climate Facilitation Fund under the Regional Cooperation and Integration Financing Partnership Facility and administered by ADB. 17 The key expenditure items are listed in Appendix 2. Participating regulators in the target DMCs will provide counterpart staff, office space, logistical support, and other in-kind contributions. 14 ADB Technical Assistance to the Islamic Republic of Afghanistan for Rural Finance Expansion. Manila. This TA undertook a legal examination of the Islamic finance regulatory framework and the draft banking bill in Afghanistan. The Banking Law was subsequently passed, but no analysis has been done to determine whether the Banking Law included recommendations on how Islamic finance may be expanded under this new legislation. 15 Capacity development under the TA will use a training of trainers approach to maximize the impact of the capacity development initiatives. The TA will focus on providing intensive training to select governmental, regulatory, and private sector participants rather than generic trainings for many participants. 16 These will be subregional conferences; participants from the Kyrgyz Republic and Tajikistan will be invited to attend the conference in Kazakhstan, and participants from Afghanistan will be invited to attend the conference in Pakistan. Private sector participants will be expected to finance their own attendance at these conferences. 17 Established by the Government of Japan.

9 5 D. Implementation Arrangements 15. ADB will administer the TA through the Public Management, Financial Sector, and Trade Division of the Central and West Asia Department (CWPF) and the Office of the General Counsel (OGC). CWPF and OGC will devise coordination routines to enable effective joint leadership, and will be jointly responsible for TA implementation and supervision. Consultant engagement and knowledge products will be collaboratively managed. 18 Implementation Arrangements Aspects Arrangements Indicative implementation period December 2017 December 2019 Executing agency Asian Development Bank (ADB) Consultants To be selected and engaged by ADB Individual consultant selection 117 person-months $1,253,000 Consultants qualification selection 16 person-months $147,000 Disbursement The TA resources will be disbursed following ADB's Technical Assistance Disbursement Handbook (2010, as amended from time to time). Source: Asian Development Bank. 16. A combination of individuals and a firm (using consultants qualification selection) will be contracted, with regulatory, legal, capacity building, financial education, public communications, and project management expertise. All consultants will be engaged in accordance with ADB s Guidelines on the Use of Consultants (2013, as amended from time to time). 19 To reduce the administrative burden and improve economy, efficiency, and value for money, lump-sum payments and output-based contracts will be considered for consulting services under the proposed TA. All disbursements under the proposed TA will be made in accordance with ADB s Technical Assistance Disbursement Handbook (2010, as amended from time to time). 17. All publications, training programs, seminars, and workshops financed under the TA will clearly indicate that the activities in question have received funding from the government of Japan; all press releases issued by ADB with respect to the TA will refer to the financial contribution from the government of Japan; and the support of the government of Japan as a source of funding will be acknowledged in all official notices, reports, and publications. IV. THE PRESIDENT'S DECISION 18. The President, acting under the authority delegated by the Board, has approved the Asian Development Bank administering technical assistance not exceeding the equivalent of $2,000,000 to be financed on a grant basis by the Investment Climate Facilitation Fund under the Regional Cooperation and Integration Financing Partnership Facility for Islamic Finance for Inclusive Growth, and hereby reports this action to the Board. 18 It may be more effective to hold training using facilities in Islamic finance hubs (e.g., Qatar, Saudi Arabia and the United Arab Emirates), which could save travel time and costs. More developed institutions such as the Central Bank of Qatar, Bank Negara Malaysia, and the Islamic Development Bank could be requested to provide training to leverage their experience in establishing and developing adequate legal and regulatory frameworks for Islamic finance. The appropriate ADB approvals will be sought for any events in a non-adb member country. 19 Terms of Reference for Consultants (accessible from the list of linked documents in Appendix 3).

10 6 Appendix 1 Impact the TA is Aligned with DESIGN AND MONITORING FRAMEWORK An effective and well-functioning Islamic finance sector operating in the target DMCs developed. (Strategic Plan: Islamic Banking Industry of Pakistan; Da Afghanistan Bank, Financial Supervision Department; Bank of the Kyrgyz Republic, Strategy for Banking Sector Development; National Bank of Tajikistan, Financial Sector Development Strategy for Tajikistan; and Constitutional Law on AIFC) a Results Chain Outcome Islamic finance in the target DMCs expanded Outputs 1. Legal and regulatory reforms in Islamic finance commenced 2. Regulatory and private sector capacity to deliver Islamic finance services strengthened Performance Indicators with Targets and Baselines Number of banks providing Islamic financial services increased to 30 by June 2020 (2016 Baseline: 26) 1a. Gap analysis completed in target DMCs by July 2018 (2016 Baseline: 0) 1b. Legal or regulatory reforms in at least three target DMCs commenced by October 2019 (2016 Baseline: 0) 2a. At least 35 of the trained governmental and regulatory participants indicated their increased knowledge in Islamic finance development, regulation, and supervision issues across target DMCs by October 2019; at least 20% are women b (2016 Baseline: 0) Data Sources and Reporting Central Bank annual reports Data and annual reports from financial institutions providing Islamic financial services 1a. TA periodic reports 1b. Governmentissued gazettes and notifications, TA periodic reports, central bank reports 2a. Central bank statistical reports, financial institutions statistical and annual reports Risks Limited expansion of Islamic financial products provided by financial institutions once the legal environment is established. Disputes of a religious nature regarding draft legislation are not resolved in a timely manner. Legislators do not approve the necessary legislative revisions. Financial institutions do not dedicate sufficient resources to expanding their personnel and changing internal systems. 2b. At least two priority projects earmarked for Islamic financing in target DMCs by December 2019 (2016 Baseline: 0) 2b. Central bank statistical reports, financial institutions statistical and annual reports

11 Appendix 1 7 Results Chain 3. Public understanding of Islamic products in the target DMCs improved Performance Indicators with Targets and Baselines 3a. At least 150 people attended workshops on Islamic finance across the target DMCs by October 2019; at least 30% are women (2016 Baseline: 0) Data Sources and Reporting 3a. TA surveys at inception and completion Risks 3b. Knowledge on Islamic finance initiatives disseminated to at least 500 people by October 2019; at least 30% are women (2016 Baseline: 0) c 3b. TA surveys at inception and completion Key Activities with Milestones 1. Legal and regulatory reforms for Islamic finance commenced 1.1 Establish coordinating groups with central banks, governments, the private sector, and NGOs by March Establish baselines for measurements, including finalizing any surveys, by May Conduct gap analysis, review draft, undertake extensive consultations with stakeholders, and finalize with coordinating groups and other interested stakeholders by July Present findings to governments and support drafting of revised legislation and consultation and/or information processes to legislators by September Support governments in commencing legal and regulatory reforms for Islamic finance by October Regulatory and private sector capacity to deliver Islamic financial services strengthened 2.1 Establish coordinating groups with central banks, governments, the private sector, and NGOs by March 2018 (same as the groups constituted under paragraph 1.1 above). 2.2 Establish baselines for measurements, including finalizing any surveys, by May Conduct needs assessment of (i) governmental entities; (ii) financial regulatory agencies; and (iii) private sector financial services providers about Islamic finance by June Conduct capacity development training on a multi-country and individual basis (using a train-the-trainer approach) to address selected needs identified in 2.3 above, through March Systematically prepare financing proposals to illustrate and showcase the structuring concerns and necessary due diligence in Islamic finance transactions, through June Disseminate financing proposals used in capacity development training initiatives, by September 2019, and promote the piloting of at least two priority projects using Islamic financing by December Complete assessments of training results and further needs by December Public understanding of Islamic products in the target DMCs improved 3.1 Complete small baseline survey of selected households in target DMCs on Islamic financial services understanding by March Complete assessments of current methods and delivery agents for financial information to citizens, by May Design methods and materials for effective communication and broad dissemination

12 8 Appendix 1 strategies, and run pilots in selected DMCs, by August Arrange for delivery and forwarding of knowledge products and services by September 2018, for delivery through October Inputs Investment Climate Facilitation Fund under the Regional Cooperation and Integration Financing Partnership Facility: $2,000,000 Note: Participating DMC governments will provide counterpart support in the form of counterpart staff; office space for meetings and trainings, logistical support to facilitate meetings and discussions with relevant stakeholders at all levels, and other in-kind contributions. Assumptions for Partner Financing Not Applicable AIFC = Astana International Financial Centre, DMC = developing member country, NGO = nongovernment organization, TA = technical assistance. a State Bank of Pakistan, Islamic Banking Department. Strategic Plan Islamic Banking Industry of Pakistan ; Da Afghanistan Bank. Financial Supervision Department; Kyrgyz Bank Strategy for the banking sector development for the period till the end of 2011; National Bank of Tajikistan. Tajikistan Financial Sector Development Strategy ; and Astana International Financial Centre. b The TA will actively seek to emphasize the importance of identifying and including women participants in the trainthe-trainer initiatives. c The financing amount allocated to this output across the five target DMCs is $400,000. Therefore, to ensure that information on Islamic finance is properly disseminated to the public it will be essential to rely on mass media techniques to impart information. This may involve radio public service messages, brochures and small-scale awareness events, wherein a national consultant recruited under the TA would visit neighborhoods to provide information on available Islamic finance products. In addition, where possible ADB will partner with public sector entities that have existing public awareness-raising initiatives to increase the impact of TA dissemination efforts. Source: Asian Development Bank.

13 Appendix 2 9 COST ESTIMATES AND FINANCING PLAN ($'000) Item Amount Investment Climate Facilitation Fund a under the Regional Cooperation and Integration Financing Partnership Facility 1. Consultants a. Remuneration and per diem i. International consultants ii. National consultants b. International and local travel c. Reports and communications (including translations) Training, seminars, and conferences Surveys Miscellaneous administration and support costs b Contingencies Total 2,000.0 Note: The technical assistance (TA) is estimated to cost $2,150,000, of which contributions from the Investment Climate Facilitation Fund under the Regional Cooperation and Integration Financing Partnership Facility are presented above. The governments will provide counterpart support in the form of office accommodation and transport, remuneration and per diem of counterpart staff, and other in-kind contributions. The value of the governments contributions is estimated to account for 7% of the total TA cost. a Established by the Government of Japan and administered by the Asian Development Bank. b Includes reports, editing, printing, communication, translation, interpretation, and secretarial services. Source: Asian Development Bank estimates.

14 10 Appendix 3 LIST OF LINKED DOCUMENTS 1. Terms of Reference for Consultants