The Asian Development Bank (ADB) extended loan support of around US$31.5 billion to Asia Pacific in 2016, marking a rise of 17 percent on the previous year, according to figures released by the bank.
The Manila-based bank, which observes its 51st year in 2017, also recorded its highest disbursement of loans and grants at US$12.5 billion, while approvals for government and private sector funding rose 9 percent to US$17.5 billion.
“We will strive to remain the region’s premiere development bank by providing financing, knowledge, and partnership,” said Takehiko Nakao, ADB President.
Around US$13.9 billion in co-financed Asia projects by the ADB and its partners have closed, all of which according to Nakao aim at “reducing poverty and improving people’s lives”. Nakao warned however that steady strong growth in the region, which consists of 45 countries and accounts for 60 percent of global growth each year, could distract from economic disparities within Asian societies. According to the ADB’s own reports, 14 out of 37 Asian economies have a Gini coefficient score of 0.40 or more, placing them on the threshold of high inequality.
“Asia is growing at a steady pace, but more needs to be done to achieve development that is both sustainable and inclusive,” Nakao added.
Co-financed projects in 2016 included the ADB’s collaboration with the Asian Infrastructure Investment Bank (AIIB) in lending a total of US$200 million to building new roads in Pakistan connecting the northern and southern borders to stimulate trade, business opportunities and job creation. It also financed the first privately financed solar project in Cambodia.
Another of ADB’s US$227 million lending packages with the AIIB closed in November 2016 with the goals of financing natural gas production in Bangladesh’s largest gas field to increase the country’s output of sustainable energy. ADB funding accounted for US$167 million of the total loan amount.
The ADB’s largest fund, the Asian Development Fund (ADF), has replenished its US$3.1 billion holding, and is expected to continue providing Asia Pacific’s poorest countries with disaster risk management and regional health initiatives in 2017.