The multitranche financing facility (MFF) mode was mainstreamed into ADB's financial operations in July 2008. (The MFF was introduced in August 2005.) TA and investment loans can be combined in an MFF as separate tranches. However, use of an MFF should not be recommended for large and complex projects such as the project highway because there is high risk of project cost overrun. The estimated total cost increased from $620 million at the TA loan appraisal to $1,216 million at the investment loan appraisal. The project cost would have considerably exceeded the maximum financing amount if an MFF had been used. However, if an MFF had been used the borrower could have benefited from the flexibility in timing of ADB financing and ADB's early commitment to the investment loans without incurring the commitment charges.
Kunming-Haiphong Transport Corridor-Noi Bai-Lao Cai Highway Technical Assistance Project