ADB approves record $27b for Asia's development
Manila, Philippines: The Asian Development Bank's (ADB) operations -
comprising approvals of loans and grants, technical assistance, and
co-financing - reached an all-time high of $27.15 billion in 2015, an
increase of about 19% over the $22.89 billion in 2014, according to
provisional figures released recently.
ADB's approvals of loans and grants, sovereign (government) and
non-sovereign (primarily private sector), reached a record $16.58
billion, a 23% increase compared to 2014. Technical assistance amounted
to $144 million and co-financing increased by 13% to a record $10.43
billion in 2015.
Of the $16.58 billion, sovereign loan and grant approvals increased
by 21% to $13.95 billion in 2015.
Non-sovereign approvals made a big leap from $1.92 billion in 2014 to
$2.63 billion in 2015. In addition to a volume increase, ADB increased
its allocation to the poorest countries to 40% of non-sovereign
approvals.
The ADB introduced a fast-track approval process to expedite small
non-sovereign transactions. The ADB is now making active use of local
currency lending to the private sector and increased bond issuances in
local currencies to support the lending.
Unless loans and grants are disbursed, they will have no impact on
development. In 2015, total disbursements of loans and grants reached a
record $12.34 billion, an increase of 21% over the previous year.
ADB President Takehiko Nakao said, "Our record performance last year
reflected a strong and growing demand from the Asian and Pacific region.
Infrastructure and other development needs are huge and poverty remains
pervasive despite the region's robust growth performance."
The ADB Board of Governors last year unanimously endorsed the merger
of ADB's concessional Asian Development Fund and its market-based
ordinary capital resource balance sheet to help meet the increased
demand for its operations. With this path-breaking reform, ADB's
financing capacity (annual approvals of loans and grants) will increase
up to $20 billion by 2020.
The ADB is well on track to achieve this scaling up.
Among ADB's operational highlights last year were the quick response
to natural disasters, especially the Nepal earthquake in April and the
Vanuatu cyclone in March; and support for fiscal measures of countries
suffering from lower commodity prices and volatility in financial
markets, such as Kazakhstan and Mongolia.
In 2015, ADB was among the first multilateral development banks to
commit a sizable climate finance target. In late September, ADB doubled
its annual climate financing to $6 billion by 2020, up from the current
$3 billion. ADB issued its first green bond. to support its climate
work. The ADB approved its first policy-based loan in the People's
Republic of China to improve air quality in the Beijing-Tianjin-Hebei
area.
To help effectively mobilize financial resources and management
skills from the private sector for infrastructure development, ADB
established an Office of Public-Private Partnership (PPP). The office
offered active transaction advisory services for PPP projects in the
region such as the North-South Railway project in the Philippines.
ADB made further progress in streamlining procedures for country
programing, project processing, and procurement. One example was the
introduction of tailor-made procurement procedures specifically for
small Pacific Island countries. ADB has been providing greater resources
and delegating more authority to its 31 field offices to improve its
responsiveness on the ground.
Last year, ADB operationalized seven sector groups such as energy and
transport, and eight thematic groups such as governance and gender,
which work across operations departments. This will strengthen ADB's
knowledge services and provide innovative solutions to client countries.
"As we approach our 50th anniversary this year, we are committed to
scaling up our operations, and achieving poverty reduction and
sustainable development in the region," Nakao said. "We will be a
stronger, better, and faster bank by deepening our partnerships with
member countries, other international financial institutions, and civil
society."
ADB, based in Manila, is dedicated to reducing poverty in Asia and
the Pacific through inclusive economic growth, environmentally
sustainable growth, and regional integration. Established in 1966, it is
owned by 67 members, 48 from the region.
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