Asian Development Bank

The Asian Development Bank was

conceived in the early 1960s as a
financial institution
 ADB History

• The Asian Development Bank was conceived in

the early 1960s as a financial institution that
would be Asian in character and foster
economic growth and cooperation in one of
the poorest regions in the world.
• A resolution passed at the first Ministerial
Conference on Asian Economic Cooperation
held by the United Nations Economic
Commission for Asia and the Far East in 1963
set that vision on the way to becoming reality.
• The Philippines capital of Manila was chosen to
host the new institution, which opened on 19
December 1966, with 31 members that came
together to serve a predominantly agricultural
region. Takeshi Watanabe was ADB's first
President.
• During the 1960s, ADB focused much of its
assistance on food production and rural
development.
• When the world suffered its first oil price
shock, ADB increased its support for energy
projects, especially those promoting the
development of domestic energy sources in
member countries. A
major landmark was the establishment in
1974 of the Asian Development Fund to
provide low-interest loans to ADB's poorest
members.
 ADB@50

• Over 50 years, the Asian Development Bank

has mobilized more than $250 billion in
infrastructure, research, and knowledge
sharing to expand opportunities and build
prosperity across Asia and the Pacific,
contributing significantly to the region's
historic global rise.
 How We're Organized

• Members
• ADB has 67 shareholding members including
48 from the Asia and Pacific region. View a
complete list of our members.
 Board of Governors

• ADB's highest policy-making body is the Board

of Governors, which comprises one
representative from each member nation – 48
from the Asia-Pacific and 19 from outside the
region.
• The Agreement Establishing the Asian
Development Bank, known as the ADB Charter
, vests all the powers of the institution in the
Board of Governors, which in turn delegates
some of these powers to the
Board of Directors. The Board of Governors
meets formally once a year during ADB's
Annual Meeting.
 Board of Directors

• The Governors elect 12 members to form the

Board of Directors, which performs its duties
full time at the ADB headquarters.
The Directors supervise ADB's financial
statements, approve its administrative budget,
and review and approve all policy documents
and all loan, equity, and technical assistance
operations.
 Management

• The ADB President chairs the Board of

Directors and heads a management team
comprising six Vice-Presidents, who supervise
the work of ADB's operational, administrative,
and knowledge departments.
 Our Work

• Together We Deliver: Building Partnerships for

Shared Prosperity
• A special edition of this flagship publication
tells 50 stories of how ADB’s partnerships with
government, civil society, the private sector,
and other development partners help to meet
the needs of a rapidly changing region
 Improving Lives for a Better Futu
re

• In its 50th year of operation, ADB’s total

lending reached a record high in response to
increasing demand from developing Asia and
the Pacific. Read the ADB Annual Report 2016.
 What Infrastructure Do
es Asia Need, and Why?

• Asia and the Pacific economies invest nearly

$900 billion a year in infrastructure, but the
region needs much more to keep pace with
rising demand spurred by economic growth.
 Data Shows 50 Years of C
hanging Asia

• From 12% of global GDP in the early 1960s to

almost one third today, Asia's enviable
economic growth has been consistent and
robust. Greater wealth has brought social
progress in Asia and the Pacific. But as the
region has prospered, its share of carbon
dioxide emissions has reached nearly half the
global total.
• The Asian Development Bank aims for an Asia
and Pacific free from poverty. Its mission is to
help developing member countries reduce
poverty and improve the quality of life of their
people. Despite the region's many successes,
it remains home to a large share of the world's
poor: 330 million living on less than $1.90 a
day and 1.2 billion on less than $3.10 a day.
• ADB in partnership with member
governments, independent specialists and
other financial institutions is focused on
delivering projects in developing member
countries that create economic and
development impact
• As a multilateral development finance institution, ADB
provides:
• loans
• technical assistance
• grants
• Our clients are our member governments, who are also
our shareholders. In addition, we provide direct
assistance to private enterprises of developing
member countries through equity investments and
loans.
 Areas of Focus and
Results

• ADB operations are designed to support the three complementary

agendas of inclusive economic growth, environmentally sustainable
growth, and regional integration. ADB employs its limited resources
in its areas of comparative strength—the core areas of:
• Infrastructure (energy,
information and communications technology, transport,
urban development, water)
• Environment
• Regional cooperation and integration
• Finance sector development
• Education
• ADB also operates on a limited scale in other
areas, including
• Health
• Agriculture and natural resources
• Public sector management
 Where does ADB get its
funding?

• ADB raises funds through bond issues on the

world's capital markets. We also rely on our
members' contributions, retained earnings
from our lending operations, and the
repayment of loans. We also provide loans
and grants from a number of special funds.
 How much assistance
does ADB provide?

• ADB’s total lending in 2016, including

cofinancing, reached $31.70 billion — an 18%
increase from 2015.
• The total include $17.47 billion in approvals for
loans and grants, $169 million for technical
assistance, and $14.06 billion for cofinancing,
which increased by a record 31% over 2015.
Disbursements also reached a new high of
$12.26 billion in 2016
• Private sector operations reached $2.5 billion.
Apart from its own funds, ADB’s private sector
operations also generated a record $5.84
billion in cofinancing — a $1.2 billion increase
from 2015 — which included $238 million in
official cofinancing to support nonsovereign
operations
 Why does ADB work in
infrastructure?

• Infrastructure – defined as a country’s physical

facilities, such as roads, power plants, and bridges –
is critical for regional development. Poor
infrastructure slows economic growth and limits the
investment needed to create the jobs that help lift
people out of poverty. Power outages hurt factory
productivity. Bad roads, ports and airports stifle
flows of people, goods, and services. Inadequate
water and sanitation prevent millions from leading
healthy, productive lives.
 How is ADB supporting
infrastructure?

• ADB provides loans, grants and technical assistance

to its developing member countries, to the private
sector and through public-private partnerships to
support the building and maintenance of
infrastructure. The majority is in water, energy,
transport, urban development, and information and
communications technology. ADB is scaling up its
operations by 50% from $14 billion in 2014 to more
than $20 billion in 2020, with 70% of this amount
going toward infrastructure
 How much
infrastructure does Asia and the Pacific need?

• Though nearly $900 billion is spent a year on

infrastructure in Asia and the Pacific, that’s substantially
less than the $1.7 trillion that ADB estimates the region
needs annually from 2016 until 2030 to keep pace with
climate change and economic growth. Energy and
transport account for nearly 90% of total investment
needs. If our vision of a region free of poverty is to
become reality, new ways of funding regional
infrastructure need to be developed, along with a
greater role for the private sector.
 ADB's Focus on Social
Development

• ADB supports social protection programs such

as government pensions, cash assistance for
poor families with children, and national
health care systems. In the Philippines, for
example, more than four million poor
households receive ADB-supported cash grants
if they keep their children in school and meet
other conditions. Many infrastructure projects
have strong social development components.
 Inclusive business and
migration

• Another important aspect of social development involves

bringing the power of the private sector to the task of
directly helping the poor. This is done through the
promotion of inclusive business, which targets those on a
low income with the dual purpose of making a profit
while also helping the poor by providing services they
need or giving them jobs and other income-generating
opportunities. Migration is a powerful contributor to
economic and social development. ADB works to
maximize the benefits of migration and mobility while
minimizing its risks and impacts.
 How does ADB design and
manage projects?

• ADB provides financing for projects with developing

member countries (DMCs) that will support
inclusive economic growth, environmentally
sustainable growth, and regional integration.
Projects are identified in partnership with DMCs
during strategic sector and country planning
processes. The various stages from country
programming, project design to project completion
and evaluation are known collectively as ADB's
project cycle.
 Project Administration In
structions

• The Project Administration Instructions (PAIs)

outline the policies and procedures to be
followed by ADB staff involved in the
administration of ADB-financed loan and
technical assistance (TA) projects.
 Financial Management
• Financial management is an integral component of ADB’s
fiduciary duty to ensure that funds are used for their
intended purpose. In order to fulfill this duty, ADB seeks
to obtain reasonable assurance that projects are
financially viable and sustainable, and that borrowers
have the capacity to perform their obligations under the
legal agreements. ADB develops and applies policies,
frameworks and guidelines to support, assess and
monitor the adequacy and effectiveness of country-,
sector-, program- and project-related financial
management systems
 Policies and Strategies.
Policies 2020
• ADB’s long-term strategic framework
promotes three complementary agendas on
inclusive economic growth, environmentally
sustainable growth, and regional integration.
• Strategy 2020: The Long-Term Strategic Fram
ework of the Asian Development Bank 2008-20
20
• Strategy 2020 midterm review
• Corporate results framework
• Key accomplishments under Strategy 2020
 Core Operational
Areas

• 80% of ADB lending is in five core operational areas,

identified as comparative strengths of ADB.
• Infrastructure
– Water Operational Plan 2011-2020
– Energy Policy
– Sustainable Transport Initiative Operational Plan
– Urban Operational Plan 2012–2020
– Toward E-Development in Asia and the Pacific: A Strategic
Approach for Information and Communication Technology
• Education by 2020: A Sector Operations Plan
• Environment