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Review of the Bank Group’s Cost-Sharing Formula
The African Development Bank Group (the Bank Group) delivers its operational programs through three entities: The African Development Bank (ADB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). The Group has a single combined administrative expense budget and records expenses, when incurred, against such budget. While the three windows are complementary, they are statutorily required to be legally separate and distinct. Statutorily (under Article 31 of ADF agreement and Article IX of the NTF Agreement), the ADF and NTF are required to reimburse the ADB for the fair value of their use of the offices, staff, organization, services and facilities in accordance with arrangements made between these two entities and the ADB. These arrangements take the form of a sharing of costs through a defined cost sharing formula. The separation principles enshrined in both the ADF and ADB Agreements prohibit each institution from bearing the expenses, costs or losses of the other.