The Asian Development Bank’s (ADB) operations, comprising approvals of loans and grants, technical assistance, and co-financing, reached an all-time high of US$27.15 billion in 2015, an increase of about 19 per cent over the US$22.89 billion in 2014, according to provisional figures released recently.
ADB’s approvals of loans and grants, sovereign (governments) and non-sovereign (primarily private sector), reached a record US$16.58 billion, a 23 per cent increase from 2014. Technical assistance amounted to US$144 million and co-financing increased by 13 per cent to a record US$10.43 billion in 2015.
Out of the US$16.58 billion, sovereign loan and grant approvals increased by 21 per cent to US$13.95 billion in 2015.
Non-sovereign approvals made a big leap from US$1.92 billion in 2014 to US$2.63 billion in 2015. In addition to a volume increase, ADB increased its allocation to the poorest countries to 40 per cent of non-sovereign approvals. To expedite small non-sovereign transactions, ADB introduced a fast-track approval process. 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 US$12.34 billion, an increase of 21 per cent over the previous year.
ADB President Takehiko Nakao said, “Our record performance last year reflected 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.”
To help meet the increased demand for its operations, 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. With this path-breaking reform, ADB’s financing capacity (annual approvals of loans and grants) will dramatically increase up to US$20 billion by 2020. ADB is well on track to achieve this scaling up.
In 2015, ADB was among the first multilateral development banks to commit a sizeable climate finance target. In late September, ADB announced it would double its annual climate financing to US$6 billion by 2020, up from the current US$3 billion. To support its climate work, ADB issued its first green bond. ADB approved its first policy-based loan in China to improve air quality in the Beijing-Tianjin-Hebei area.
ADB made further progress in streamlining procedures for country programming, 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 operationalised 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,” Mr 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.”
Quynh Anh
Vietnamese
