ADB cofinancing operations hit new high, reaches $ 14 b in 2016

Cofinancing operations of the Asian Development Bank (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, says a new ADB report.

As stated in its new Partnering for Development: Donor Report 2016, ADB leveraged $14.06 billion in cofinancing last year, boosting the bank’s total annual operations to $31.7 billion — the highest ever in ADB’s 50-year history.

Of the total cofinancing, a record $8.46 billion was mobilised through official and other concessional financing sources, an increase of 37% from 2015, while commercial cofinancing sources accounted for $5.6 billion.

“Our operational performance in 2016 proves that 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 ADB’s Office of Cofinancing Operations.

The report includes key partnership milestones in 2016 such as the renewed cofinancing arrangements with Agence Française de Développement, the Eurasian Development Bank, and the OPEC Fund for International Development. These will bring in potential additional cofinancing of $3.1 billion in the next few years.

ADB successfully engaged new partners in 2016, 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 for a transport project in the Kyrgyz Republic.

Two new trust funds were also established last year, according to the report. 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 Nordic Development Fund became the first contributor with €7 million ($7.66 million) to the PRIF.

“The 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,” said Mr. Preugschat. “We are therefore grateful to our partners for their continued support to ADB.”

The Donor Report 2016 also highlights ADB’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.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB is celebrating 50 years of development partnership in the region. It is owned by 67 members—48 from the region.