ADB annual operations top $30 billion for first time
The Asian Development Bank’s (ADB) annual operations exceeded the $30 billion mark for the first time in its 50-year history in 2016r as regional demand for development finance and knowledge ? particularly on infrastructure ? continues to grow, according to the bank’s 2016 annual report released Tuesday.
ADB’s total lending in 2016, including co-financing, reached $31.70 billion ? an 18 percent increase from 2015, according to the annual report.
The total include $17.47 billion in approvals for loans and grants, $169 million for technical assistance, and $14.06 billion for co-financing, which increased by a record 31 percent over 2015. Disbursements, a key indicator for successful project implementation, also reached a new high of $12.26 billion in 2016.
Private sector operations reached $2.5 billion for only the second time in ADB’s history ? a result reflecting ADB’s long-term strategy to significantly boost support for private enterprise to create more high quality jobs and increase living standards across Asia and the Pacific.
Apart from its own funds, ADB’s private sector operations also generated a record $5.84 billion in co-financing ? a $1.2 billion increase from 2015 ? which included $238 million in official co-financing to support non-sovereign operations.
These figures update the provisional operations numbers released by ADB in January.
“The increase in our development financing to Asia and the Pacific reflects our strong commitment to improving the lives of the people in the region,” said ADB President Takehiko Nakao. “As ADB celebrates 50 years of providing development assistance, we will strive even harder to meet the changing needs of our developing member countries.”
The report notes that while the region’s economic growth and success in reducing poverty have exceeded the most optimistic forecasts, there remain significant challenges to be addressed.
“We cannot be complacent,” said President Nakao. “The fact remains there are still 330 million people living in absolute poverty across Asia and the Pacific. A lack of infrastructure continues to limit economic growth, inhibit poverty reduction, and restrict improvements to quality of life.”
ADB estimates that the region requires $1.7 trillion a year to meet its infrastructure financing needs.
There are other pressing challenges such as climate change, health, education, and gender equality.
To help address these development needs, ADB has scaled up its operations and expanded its financing capacity through the merger of its Asian Development Fund (ADF) lending operations with the Ordinary Capital Resources (OCR) balance sheet, which became effective on January 1 this year.
OCR equity almost tripled, from $17.3 billion to $48.1 billion, as $30.8 billion of ADF loans and other assets were transferred from the ADF. The merger is expected to increase ADB’s annual loan and grant approvals by over 50 percent to more than $20 billion by 2020. DMS