West Kalimantan Power Grid Strengthening Project

When the minimum amount of disbursement needs to be established for some administrative reasons from ADB's co-financiers, it is beneficial to set it at the lowest possible level to enable financiers to respond flexibly to the disbursement needs on the ground. The Agence Française de Développement (AFD) required the minimum amount of $5 million to process disbursements, except for the first disbursement of $300,000, while the ADB did not impose such a threshold. As a result, the AFD loan was not disbursed as much as the ADB loan since the executing agency needed more flexibility to match disbursements with project implementation progress.