2. Introduction to ADB
Formation 19 December 1966
Type Multilateral Development Bank
Headquarters Manila, Philippines
Region served Asia-Pacific
Membership 67 countries
President Takehiko Nakao
Staff 3,092 employees
Main organ Board of Governors
Primary Mission To foster growth and co-operation among
countries in the Asia-Pacific region
Non-governmental organization providing funds and technical assistance
4. Vietnam 1966
Vanuatu 1981
Uzbekistan 1995
Tuvalu 1993
Turkmenistan 2000
Tonga 1972
Timor-Leste 2002
Thailand 1966
Tajikistan 1998
Taipei, China 1966
Sri Lanka 1966
Solomon Islands 1973
Singapore 1966
Samoa 1966
Philippines 1966
Papua New Guinea 1971
Palau 2003
Pakistan 1966
New Zealand 1966
Nepal 1966
Nauru 1991
Mongolia 1991
Micronesia, Federated States of 1990
Marshall Islands 1990
Maldives 1978
Malaysia 1966
Lao People's Democratic
Republic
1966
Kyrgyz Republic 1994
Korea, Republic of 1966
Kiribati 1974
Kazakhstan 1994
Japan 1966
Indonesia 1966
India 1966
Hong Kong, China 1969
Georgia 2007
Fiji 1970
Cook Islands 1976
China, People's Republic of 1986
Cambodia 1966
Burma 1973
Brunei Darussalam 2006
Bhutan 1982
Bangladesh 1973
Azerbaijan 1999
Australia 1966
Armenia 2005
Afghanistan 1966
Asia- Pacific Region Countries
5. Austria 1966
Belgium 1966
Canada 1966
Denmark 1966
Finland 1966
Germany 1966
Italy 1966
Netherlands 1966
Norway 1966
Sweden 1966
United Kingdom 1966
United States 1966
Switzerland 1967
France 1970
Spain 1986
Turkey 1991
Portugal 2002
Luxembourg 2003
Ireland 2006
Outside Region Countries
8. Functions
To provide loans and equity investments for economic and social
development of its developing member countries.
Example: loans; India- Orissa Integrated Irrigated Agriculture and Water
Management Investment Program (US$ 120.00 million)
Equity Investment; to Boost Renewable Energy in India-ReNew Power
Ventures Private Limited (2014)
To provide for technical assistance for the preparation and implementation of
development projects and advisory services.
Example:Myanmar: Nationwide Telecommunications Project (USD 300.00
million) 2015 approved
China Rural Smart Wastewater Treatment Project (USD 100.00 million) 2014
approved
proposed
Viet Nam: Northern to Central 500 kV Transmission Grid Reinforcement
Project (US$ 200.00 million) 2020
9. Advisory services
ADB provide advisory services relating to the development and implementation of
PPP projects which includes:
a.Screening and identification of bankable PPP projects
b. Advice on commercial and financial structures
c.Conducting detailed due diligence
d.Preparation of bidding documents and project contracts
e.Marketing to potential investors and lenders
f.Assistance in bid evaluation processes
g.Facilitation of financial closing.
Assisting in co-ordination development policies and plans of its developing
member countries
Co-ordination
a.Decentralized approaches for providing educational assistance
b.ADB will scale up its programming of loans, grants, and technical assistance in
the education sector
c.ADB will also support broad policy reforms and capacity development, as well
as the strengthening of social protection measures that help girls and
disadvantaged students to attend school.
10. Promotes and facilitates investment of public and private capital for
development
Bank constituted Asian development fund in 1974, to provide loans to Asian
countries on concessional interest rates.
11. Classification of DMCs
Group A
Afghanistan, Bhutan, Cambodia, Kiribati, Kyrgyz Republic, Lao People’s
Democratic Republic, Maldives, Marshall Islands, Federated States of
Micronesia, Myanmar, Nauru, Nepal, Samoa, Solomon Islands, Tajikistan,
Tonga, Tuvalu, Vanuatu
Group B
Bangladesh, India, Mongolia, Pakistan, Palau, Papua New Guinea, Sri
Lanka, Timor-Leste, Uzbekistan, Viet Nam
Group C
Armenia, Azerbaijan, People’s Republic of China, Cook Islands, Fiji,
Georgia, Indonesia, Kazakhstan, Malaysia, Philippines, Thailand,
Turkmenistan
Developing member countries concessional rates
12. Terms and conditions of ADB's
concessional loans
Maturity
Grace
Period
Interest
Group A : Project
Loans
32 yrs 8 yrs 1% during the grace
period
1.5% during the
amortization period
Group A
:Program Loans
24 yrs 8 yrs 1% during the grace
period
1.5% during the
amortization period
Group B
blend
25 yrs 5 yrs 2% interest per year
13. Area of focus
ADB employs its limited resources in its areas of
• Infrastructure
a) Energy
b) Information and communications technology
c) Transport
d) Urban development
e) Water
• Environment
• Finance sector development
• Education
• Agriculture and natural resources
• Public sector management
14. Source of funds and Assistance provided
Sources of funds for ADB
• ADB raises funds through bond issues on the world’s capital
market.
• Members’ contributions
• Retained earnings from lending operations and repayment of loans
How much assistance does ADB provide
• 2017
Out of total operations of 32.2 billion US $
i.20.1$ billion- loans, grants and investments
ii.11.9 billion US$ - co-financing from bilateral and multilateral
agencies.
iii.201$ US million- technical assistance