ADB's private sector investments top US $4.7 b
Manila, Philippines: The Asian Development Bank's (ADB) private
sector operations performed strongly in 2013, with better project
success rates and more than US $ 4.75 billion of cumulative investments
in several sectors including clean energy, agriculture, and health, a
performance report showed.
"The results show that our private sector operations are making a
significant contribution to ADB's overall financial and developmental
goals," said Director General of ADB's Private Sector Operations
Department (PSOD), Todd Freeland.
In 2013, ADB approved a record number of private sector transactions,
expanding its investment activities in core industry sectors such as
renewable energy, clean water, and financial services, while continuing
to grow its operations in newer markets such as the health and
agribusiness sectors. PSOD's investment portfolio is now above US $6.2
billion - more than double the level prior to the financial crisis of
"The growth in private sector operations is consistent with our
belief that the private sector is vital to the development of inclusive
and environmentally sustainable growth throughout Asia," Freeland said.
"We expect to continue to expand our private sector operations
significantly over the next five years in support of this objective," he
The 2013 Development Effectiveness Report for PSOD shows the success
rate for completed private sector transactions over the three-year
period from 2011 to 2013 rose to 67% from 53% in the previous period
The report indicated that private sector operations generally met or
exceeded output targets and delivered a variety of significant
For instance, over 4,600 megawatts of new energy generation capacity
was added, over 70,000 households received new or improved water supply,
over 13,000 jobs were created and over 600,000 mobile communications
customers benefited from investment and financing activities.
In the clean energy sector, the volume and innovation of private
sector investment approvals increased substantially. Examples included a
first ever non-sovereign sustainable transport loan of US $275 million
to the People's Republic of China to finance the leasing of electric and
hybrid fuel buses and a US $250 million loan to partially finance a
geothermal power plant in North Sumatra, Indonesia - the first such
private financing in Asia for over a decade.
There was also a US $2 million equity investment in an innovative
mobile phone-based, pay-as-you-go system for roof-top solar systems in
This financing provides affordable and accessible solar energy for
poor, remote households in rural India where millions lack access to
In health, an equity investment of US $60 million in a new health
care fund was ADB's first private sector health care intervention in
many years. The fund aims at investing in end-to-end health care, from
diagnostics and drug development to hospital care.
In agribusiness, the ADB approved a guarantee facility for local
banks to extend credit to small dairy farmers in Pakistan, and a first
time commercial agribusiness loan in Central Asia to expand milk and
juice production facilities for a company in Kazakhstan.
In the finance sector, the Trade Finance Program assisted more than
1,800 small and medium-sized businesses (SMEs) in 2013, with
transactions valued at more than US $4 billion.
Over 1,100 SMEs benefitted from ADB support through targeted lending
programs to local banks and the ADB continued to be an active investor
in private equity funds that support SME development. SMEs are major
income and job providers across most developing economies in the region
and can play a major role in inclusive growth.