YOKOHAMA: Scaling new heights, the Asian Development Bank (ADB) cofinancing operations touched dollar 14 billion mark, reflecting the importance of partnerships in meeting Asian and the Pacific’s persistently growing development needs.
The bank leveraged dollar 14.06 billion in cofinancing last year, boosting its annual operations to dollars 31.7 billion – the highest even in ADB’s 50 year history, according to a new Partnering for Development Donor Report 2016.
A record dollar 8.46 billion was mobilized out of total cofinancing through official and other concessional financing sources, depicting a surge of 37% from calendar 2015, while commercial co-financing sources accounted for dollars 5.6 billion.
Head of ADB’s Cofinancing operations, Mr Kai Preugschat said “our operational performance in 2016 proved that ADB’s partnerships with bilateral and multilateral organizations, trust funds, other public agencies and foundations remained as strong as ever”.
The report included key partnership milestones in 2016 such as the renewed confinancing arrangements with Agence Francaise de Development, the Eurasain Development Bank, and the OPEC Fund for International Development which will bring in potential additional cofinancing of dollars 31.1 billion in the next few years.
The Bank successfully engaged new partners during last calendar year, entering into cofinancing agreements with the Bank of Beijing for an energy project in the People’s Republic of China and with the Saudi Fund for Development of a transport project in the Kyrgyz Republic.
“Renewed commitment and additional resources from our financing partners is crucial to scale up ADB operations as we prepare to meet the Sustainable Development Goals and our climate change commitments” stated Mr Preugschat adding, “we are therefore grateful to our partners for their continued support to ADB”.
The Report further said two new trust funds were set up last year, adding ADB and the Japan International Cooperation Agency (JICA) established the Leading Asia’s Private Sector Infrastructure Fund to support private infrastructure investment in Asia and the Pacific.
The fund is capitalized by dollars 1.5 billion in equity from JICA and will help mobilize dollar six billion in investments. The multi-donor Project Readiness Improvement Trust Fund (PRIF) was established to help countries in the Southeast Asian Region to improve project readiness and develop climate-resilient projects.
The Donor Report also showcased Bank’s efforts towards stronger accountability to both its developing member countries and financing partners through the sharing of success stories and results from cofinanced projects.
