These policies were prepared for use by ADB staff and are not necessarily a complete treatment of the

OM Section G2/BP Issued on 29 October 2003 Page 1 of 3 OPERATIONS MANUAL BANK POLICIES (BP) These policies were prepared for use by ADB staff and are not necessarily a complete treatment of the subject. FINANCIAL MANAGEMENT SYSTEMS, FINANCIAL ANALYSIS, AND FINANCIAL PERFORMANCE INDICATORS A. Introduction 1. Article 14(xi) of the Agreement Establishing the Asian Development Bank (the Charter) requires ADB to take necessary measures to ensure that the proceeds of any loan made, guaranteed, or participated in by ADB are used only for the purposes for which the loan was granted and with due attention to considerations of economy and efficiency. In addition, Article 14(xiv) of the Charter requires ADB to be guided by sound banking principles in its operations. B. Definitions 1. Executing Agencies 2. Executing agencies are agencies that are responsible for designing, implementing, and/or operating a project. The term “executing agency” also applies to the borrower. 3. Executing agencies may be classified broadly as (i) public sector agencies, which include central government line ministries, departments, or agencies; and provincial or state government tments or agencies; and local governments; (ii) semiautonomous government agencies, public sector enterprises, or parastatal bodies such as agriculture or industrial credit banks, fertilizer corporations, public utilities, railways, and port authorities; or (iii) ...