ANSWER:
The approving authority for TA cancellation will depend on the specific circumstances relating to the proposed cancellation. PAI 5.11 includes procedures for partial TA cancellations and for TA cancellation when there has been no disbursement for a continuous 12 month period. PAI 4.04 provides the procedures for loan cancellation, and can be used as a guide for TA cancellation and the approving authority. If TA cancellation has been requested by the beneficiary (DMC government), ADB cannot delay or deny the request. In this specific case, a DMC government has requested both the cancellation of an undisbursed loan and an undisbursed, piggy-backed TA. Accordingly, in the memo to the concerned Vice President seeking approval for loan cancellation, also request approval for TA cancellation. [see PAI 4.04, para 11(i), and 12]. We will review options for clarifying this issue in the PAIs.
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