Surpasses $30 billion mark
YOKOHAMA: The Asian Development Bank (ADB) lending surpassed the $30 billion mark for the first time in 2016 on growing demand in the region for infrastructure finance, the bank said on Friday.
"Co-financing operations of the ADB hit a new record in 2016, exceeding the $14 billion mark and reflecting the importance of partnerships in addressing Asia and the Pacific's continuously growing development needs," the bank's donor report highlighted.
The ADB leveraged $14.06 billion in co-financing in 2016, boosting the bank's total annual operations to $31.7 billion — the highest-ever in the ADB's 50-year history.
Of the total co-financing, a record $8.46 billion was mobilised through official and other concessional financing sources, an increase of 37 percent from 2015, while commercial co-financing sources accounted for $5.6 billion.
"Our operational performance in 2016 proves that the ADB's partnerships with bilateral and multilateral organisations, trust funds, other public agencies, and foundations remain as strong as ever," said Kai Preugschat, Head of the ADB's Office of Co-financing Operations.
The report includes key partnership milestones in 2016 such as the renewed co-financing arrangements with Agence Française de Développement, the Eurasian Development Bank, and the OPEC Fund for International Development. These will bring in potential additional co-financing of $3.1 billion in the next few years.
The ADB successfully engaged new partners in 2016, entering into co-financing agreements with the Bank of Beijing for an energy project in the People's Republic of China, and with the Saudi Fund for Development for a transport project in the Kyrgyz Republic.
Two new trust funds were also established last year, according to the report. The ADB and the Japan International Cooperation Agency (JICA) established the Leading Asia's Private Sector Infrastructure Fund to support private infrastructure investments in Asia and the Pacific.
The fund is capitalised by $1.5 billion in equity from JICA and will help mobilise $6 billion in investments. In addition, the multi-donor Project Readiness Improvement Trust Fund (PRIF) was established to help countries in the Southeast Asian region improve project readiness and develop climate-resilient projects.
"The renewed commitment and additional resources from our financing partners is crucial to scale up the ADB operations, as we prepare to meet the Sustainable Development Goals and our climate change commitments," Preugschat said.
"We are; therefore, grateful to our partners for their continued support to the ADB."
The report also highlights the ADB's efforts towards stronger accountability to both its developing member countries and financing partners through the sharing of success stories and results from co-financed projects.
