Asian Development Bank An Overview

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ASIAN DEVELOPMENT BANK

An Overview
BASIC FACTS

 A multilateral development bank, founded in 1966


 A working partnership of 67 members :

- 48 members within ASIA- PACIFIC region


- 19 members from outside region
 Japan and the United States, coequally the largest
shareholders (15.8% each)
 Vision : “An ASIA and PACIFIC free of poverty”
MEMBER NATIONS
MAJOR OFFICES
HISTORY
Phase I :1962- 1972
- initiated by Japanese
- contributed $173.7 million to the ordinary capital resources
and $122.6 million to the special funds.
Phase II :1972-1986
- tie between the ADB and the Japanese Ministry of Finance,
Phase III :Since 1986
- share of cumulative contributions increased from 41.9 % in
1986 to 50.0 % in 1993.

The ADB also committed itself to increasing loans for social issues such
as education, health and population, urban development and
environment, to 40 percent of its total loans from around 30 percent at
the time.
QUICK PROFILE
 Since 1966, ADB has provided over $82 billion to finance more than
1,500 projects in the Asian and Pacific region

 ADB has a Triple A credit rating

 In August 2000, the Asiaweek magazine recognized ADB as Asia’s best


agency over the period 1975-2000

 ADB mobilizes co-financing from bilateral, multilateral, and commercial


sources

 ADB is restructuring its operations to focus on poverty reduction and 40


percent of ADB loans must now help to reduce poverty
ORGANIZATION

Board of Governors

Board of Directors

Bank's President

The Current President of ADB is Haruhiko Kuroda, who


succeeded Tadao Chino in 2005
MAIN INSTRUMENTS

 Policy Dialogue
 Loans

LIBOR based loans

Local currency loans

Pilot financing instruments
 Equity Investments
 Guarantees
 Grants
 Technical Assistance (TA).
FINANCIAL RESOURCES

Trust Funds Managed by ADB

 Asian development funds


Ordinary Capital
 Japan special funds Special Funds Resources

Japan scholarship program

Japan fund for poverty reduction

Asia pacific carbon fund

co operation fund for the water sector

e-Asia and knowledge partnership fund


PARTNERSHIPS

 Governments
 Other international organizations
 Civil society including
 nongovernmental organizations
 Private sector

Partnerships in the news

 ADB signs $300 million loan to develop thailand’s


capital market

 Luxemburg supports ADB fund targeting financial


sector development in Asia
 ADB and Corporacion Andina de Fomento Sign MOU for
Economic Collaboration
ACTIVITIES OF ADB

 Makes loans
 Provides Technical Assistance
 Offers advice
 Provides information
STRATEGIC AGENDA

 Long-Term Strategic Framework (2008–2020)

 Emphasizes three agenda



support for inclusive growth

environmentally sustainable growth

regional integration to reduce poverty in the Asia and
Pacific region

 The 5 drivers of change are :



private sector development

private sector operations

good governance

capacity building,

gender equity, knowledge solutions, and partnerships
CRITICISM

 Extensive influence of Japan and US


 Large scale projects cause social and environmental damage
due to lack of oversight
 Criticized over its role and relevance in the food crisis
 Criticism by china on approval of the India Country
Partnership Strategy
ASIAN DEVELOPMENT BANK
AND INDIA
QUICK PROFILE

 Since the beginning of operations in 1986, ADB has approved


144 loans (sovereign and nonsovereign) amounting to
$22,228.15 million
 As of 31 December 2009, the portfolio included 53 ongoing
loans for $8.4 billion with

transport ($2.8 billion)

water supply($1.5 billion)

energy sector($2.0 billion)

finance sector($2.1 billion)
 lending assistance to India increased from an annual average
of about $1.16 billion in 2000–2005 to $1.83 billion in 2006–
2009.
ADB PARTNERS FOR INDIA

 DFID-A poverty-focused $50 million Trust Fund( 2009–2013)

 Government of Japan-water supply project in Bisalpur

 ADB and the Japan International Cooperation Agency


(JICA)

 Germany is currently co financing ADB’s loan on the Rural


Cooperative Credit Restructuring and Development
Program (for about $200 million)

 Civil Society Organizations- nearly 200 in no. including the


Japan Fund for Poverty Reduction.
PROJECTS APPROVED BY ADB

 Capital Cities Development Investment Program ($200 Million)

 The Assam Power Sector Enhancement Investment Program


($200 Million)

 The Mizoram Public Resource Management And Development


Program ($100 Million)

 The $20 Million Regional South Asia Tourism Infrastructure


Development Project Was Also Approved In 2009.

 $40 Million In Equity Investment under its Private Sector Window


for Public–private Partnership for Renewable Energy Development

 More than 1,100 Kilometers of highway expansion is being


funded, and more than 22 Million person-days of employment
will be Created, largely in the rural sector.
IMPACT OF ASSISTANCE

 Power sector

The Assam Power Sector Development Program
($100.0 million,2003–2009) has lowered transmission and
distribution system losses from 41% to 25%.

 Agriculture and Natural Resources Sector



the Chhattisgarh Irrigation Development Project resulted
in a 50% yield increase in irrigated rice; 30% yield
increase in wheat; and facilitated the successful
introduction of new rabi (dry season) crops, such as
groundnut and maize
INDIA: PROJECT SUCCESS RATES

By Sector Percentages No. of Rated


Projects/ Programs
Energy 81.3 16
Finance 71.4 7
Multisector 66.7 3
Public Sector Management 33.3 3
Transport and ICT 45.5 11
Water Supply and Other Municipal
Infrastructure and Services 66.7 3
Total 65.1 43
FUTURE DIRECTIONS

 ADB’s India Country Partnership Strategy (CPS) ,2009–


2012
 The strategic pillars of the CPS are as follows:
(i) support for inclusive and environmentally sustainable
growth
(ii) catalyzing investment through the use of innovative
business and financing solutions
(iii) strengthening results orientation and emphasizing
knowledge solutions
(iv) support for regional cooperation
CHALLENGES AHEAD

 Weakness in enabling policy and regulatory


frameworks, and a lack of shelf of bankable
infrastructure projects
 Supply gap in long-term financing, a lack of
innovative financial instruments, and slow
progress in corporate debt market development
 Lack of capacity in public institutions and officials
to manage various processes

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RECENT UPDATES

 ADB to provide $7.4 billion assistance to India for 2011-2013


 ADB lends $250 million to help build Metro Rail System in
Bangalore
 ADB steps up investments in Clean Energy with $40 million
funds injection
 ADB provides $250 million to help India turn tourism into
growth , jobs driver
 $300 million loan for roads to spur growth in Madhya
Pradesh
RECENT UPDATES

 ADB $500 million to improve services in Georgia's growing


towns
 ADB $ 100 million loan to PRC to improve productivity,
incomes from forestry
 Turkmenistan gets first ADB loan for regional rail link
 ADB target more clean energy benefits for women in south
Asia
 ADB partners to help manage pacific's marine resources
against climate change
EVENTS UPDATES

 5 Apr 2011: Regional workshop on safeguards for indigenous


peoples in development projects

 5 Apr 2011 to 8 Apr 2011 : ADBI-OECD-APEC Symposium


and Round table on investment for balanced and sustainable
growth
THANK YOU
QUERIES ?

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