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PROJECT ADMINISTRATION INSTRUCTIONS
PAI No. 6.01
Revised on June 2024

PORTFOLIO MANAGEMENT INDICATORS AND PORTFOLIO REVIEWS1

      1 In this PAI, the term “loan(s)” includes grant(s) and the term “project(s)” includes program(s), unless the context requires otherwise. This PAI also applies to loans from external sources that are administered by Asian Development Bank (ADB), unless agreed otherwise between ADB and cofinancier(s).

1. This Project Administration Instruction (PAI) describes the organizational framework of portfolio management indicators (PMIs) and portfolio reviews.

A. Portfolio Management Indicators

2. PMIs are used to measure the performance of portfolio which are mostly reported in quarterly portfolio updates and annual portfolio performance reports. To highlight certain issues, PMIs may be flexibly adopted.

3. The regional departments (RDs) lead target-setting of PMIs for the region, in consultation with the Sectors Group (SG) and other relevant departments/offices. PMIs will be measured by region, country, sector, and at corporate level.

4. The RDs are accountable for monitoring and achieving regional and country PMIs. The SG is accountable for monitoring and achieving sector PMIs. The RDs and SG have shared accountability in achieving relevant PMIs. The Portfolio Management Division (PFPM) of Procurement, Portfolio, and Financial Management Department is responsible for monitoring and achieving corporate PMIs by leading in-depth portfolio analysis to identify corporate-level issues and recommending actions for improvement.

B. Portfolio Review Meetings

5. Regional portfolio review meetings are held quarterly by the RDs to (i) discuss PMI targets and achievements, (ii) review the performance of their projects, and (iii) discuss action plans. The regional head, operations coordination leads the regional portfolio review meetings with support from the relevant country operations head and sector directors or sector project administration unit heads. A summary of agreed actions is recorded and shared within the department and other relevant departments/offices.

6. Sector portfolio analysis meetings are held biannually or more frequently to review the sector/subsector portfolio performance and discuss sector-specific commonly faced project implementation issues, lessons learned, and development impacts. The senior sector director or sector director leads the sector portfolio analysis meetings with support from PFPM and sector project administration unit heads. Minutes of the meetings are normally maintained and circulated within the SG and shared with other relevant departments/offices.

C. Operations Review Meetings

7. Operations Review Meetings (ORMs) serve as a management tool for reviewing implementation of the ADB-wide operational program (loan and TA processing and administration) and portfolio performance. They also serve as a mechanism to seek Management’s guidance on specific issues and recommendations.

8. ORMs are normally held quarterly. ORMs are chaired by the Management, organized by PFPM and the Strategy, Policy, and Partnerships Department, and attended by the RDs, SG, Private Sector Operations Department, Climate Change and Sustainable Development Department, Office of Safeguards, and other departments/offices invited at the option of the chair.