ASIAN DEVELOPMENT BANK

VISION AND MISSION

Vision : An Asia and Pacific Free of

Poverty

Mission: to help its developing member countries reduce poverty and improve the quality of life of their people.

ADB’s Goals

1. Promoting economic growth2. Reducing poverty3. Developing human resources4. Improving the status of women5. Protecting the environment

ADB’s Principal Functions

(i) to extend loans and equity investments for the economic and social development of its developing member countries (DMCs);

(ii) to provide technical assistance for the preparation and execution of development projects and programs, and for advisory services;

(iii) to promote and facilitate investment of public and private capital for development purposes; and

(iv) to respond to requests for assistance in coordinating development policies and plans of its DMCs.

Projects & Programme

Supported Projects 1. Agriculture and natural resources,

2. Energy, 3. Finance, 4. Industry and non-fuel minerals, 5. Social infrastructure, 6. Transport and communications.

MEMBERSHIP

31 members at its establishment in 1966 has grown to encompass 67 members Georgia is the 67th and newest member,

having joined ADB effective 2 February 2007

of which 48 are from within the Asia and Pacific the region and 19 are from other parts of the globe.

ADB PARTNERS

Governments, Private sector, Nongovernment organisations, Development agencies, Community-based organizations, and

foundations.

Organizational Structure

ADB’s President

Takeshi Watanabe1966 - 1972

Shiro Inoue 1972 - 1976

Taroichi Yoshida 1976 - 1981

Masao Fujioka1981 - 1989

Kimimasa Tarumizu 1989 - 1993

Mitsuo Sato 1993 - 1999

Tadao Chino 1999 - 2005

Haruhiko Kuroda 2005-present

HISTORICAL BACKGROUND

19 December 1966, established at Manila with 31 members to serve a predominantly agricultural region .

1970 - Assistance expanded into education, health, infrastructure and industry.

ADB's first bond issue in Asia - worth $16.7 million - in Japan. 1973 - set up Asian Development Fund 1974 - Asian Development Fund to provide concessional lending

to ADB's poorest members. 1980 - made its first direct equity investment, began to use its track record to mobilize additional resources for

development from the private sector. also increased its support to social infrastructure, including

gender, microfinance, environmental, education, urban planning, and health issues.

Cont…. 1982 - ADB opened its first field office - a

Resident Mission in Bangladesh - to bring operations closer to their intended beneficiaries

approved a policy supporting collaboration with nongovernment organizations to address the basic needs of disadvantaged groups in its developing member countries.

1990 - promoting regional cooperation, forging close ties among neighboring countries through an economic cooperation program in the Greater Mekong Subregion.

Cont…..

1995 - ADB became the first multilateral organization to have a Board-approved governance policy to ensure that development assistance fully benefits the poor. Policies on the inspection function, involuntary resettlement, and indigenous peoples - designed to protect the rights of people affected by a project - were also approved.

1997 - ADB approved its largest single loan-a $4 billion emergency loan to the Republic of Korea-and established the Asian Currency Crisis Support Facility to accelerate assistance.

1999 - recognizing that development was still bypassing so many in the region, ADB adopted poverty reduction as its overarching goal.

Cont….

Into the 21st Century new focus on helping its developing members achieve the

Millennium Development Goals and to enhance development effectiveness.

providing support at national and regional levels to help countries more effectively respond to HIV/AIDS and the growing threat of avian influenza.

ADB had to respond to other unprecedented natural disasters, committing more than $850 million for recovery in areas of India, Indonesia, Maldives, and Sri Lanka hit by the Asian tsunami disaster of December 2004 and a $1 billion line of assistance to help victims of the October 2005 earthquake in Pakistan.

Strategy 2020

Long-term Strategic Framework 2008- 2020

approved in April 2008 Three strategic agendas:

1. Inclusive growth,

2. Environmentally sustainable growth

3. Regional integration Five drivers of change:

(i) private sector development/operations,

(ii) good governance and capacity development,

(iii) gender equity,

(iv) knowledge solutions,

(v) partnerships

Cont…….

Five core specializations: (i) infrastructure, (ii) environment including climate change, (iii) regional cooperation and integration, (iv) financial sector development, (v) education

Cont…..

Operational Activities1. Public Sector Lending Operations2. Co-financing and Guarantee Operations3. Grants4. Technical Assistance5. Private Sector Operations

Asian Development Fund (ADF)

Since 2000, helped build 38,000 schools and build or improve 6,700 health facilities helped provide over 200,000 safe water

connections irrigate more than 300,000 hectares of

land build or rehabilitate 42,000 kilometers of

roads

ADB’s lending volume

In 2008, lending volume was $10.49 billion (86 projects), with TA at $274.5 million (299 projects) and grant-financed projects at $811.4 million (49 projects).

Over the last 5 years (2004–2008), ADB’s annual lending volume averaged $7.70 billion, with TA averaging $231.5 million and grant-financed projects $655.1 million.

As of 31 December 2008,the cumulative totals were $143.53 billion in loans for 2,147 projects in 41 countries,$4.08 billion for 263 grant projects, and $3.55 billion for 6,599 TA projects.

INDIA & ADB

founding member of the ADB and its fourth largest shareholder.

ADB Membership Joined 1966 Shares held 224,010 (6.32%) Votes 237,242 (5.35%) Ashok K. Lahiri is the Executive Director and Md. Aminul Islam Bhuiyan is the Alternate

Executive Director representing India on the ADB Board of Directors.

Tadashi Kondo is the ADB Country Director for India.

The India Resident Mission (INRM)

was opened in 1992. provides the primary operational link between

ADB and the government, private-sector, and civil-

society stakeholders in its activities. INRM engages in policy dialogue and acts as a

knowledge base on development issues in India. The India government agency handling ADB

affairs is the Ministry of Finance.

Relationship with ADB

ADB has approved 130 loans (sovereign and nonsovereign) amounting to $20,586.5 million since 1986.

Since 1988, ADB has approved 254 technical assistance (TA)

projects amounting to $181.6 million, of which 58 (amounting to $78.4 million) are under implementation.

In 2008, India was the largest borrower As of 31 December 2008, the portfolio included 44

ongoing loans for $8.2 billion with $3.3 billion to transport, $1.7 billion to urban infrastructure, $1.5 billion to the energy sector, and $1.0 billion to the financial sector.

11th Five-Year Plan 2007–2012

Objective - Focus on poverty reduction and social development through faster and more inclusive growth

identifies several developmental challenges in:• creating jobs;• providing essential services to the poor; • reinvigorating the rural economy;• increasing manufacturing competitiveness; • developing human resources; • protecting theenvironment; and • bridging the divides between regions, sectors, and

genders.

Key constraints will have to be addressed: infrastructure bottlenecks and lack of long-term

funds for infrastructure investment the weak performance of agriculture and the

urgent need to reinvigorate this sector and the overall rural economy

interstate disparities in terms of economic and social indicators

relatively poor education and health indicators despite the economic progress made over the past decade; and

ensuring that growth is environmentally sustainable.

Impact of Assistance

1. The Housing Finance II project, consisting of loans 1759 and 1761(March 2002–June 2007),

provided loans to low-income households or home purchases or improvements through financial intermediaries, both in the formal and informal sectors

resulted in improved living conditions for the sub-borrowers and helped build linkages between theformal and informal institutions in the housing finance sector.

Impact of Assistance

2. The Gujarat Earthquake Rehabilitation and Reconstruction Project(May 2001–November 2007)

helped in reconstructing and restoring damaged infrastructure in the earthquake-affected areas of Gujarat state, India.

enabled early restoration of economic and social activity, especially for poor and lower-income groups, by reconstructing houses in rural areas; improving the urban and rural water supply,sewerage, drainage, and sanitation; onstructing power substations;and improving transmission and distribution.

India: Cumulative ADB Lending as of 31 December 2008

Sector Loans (no.) Amount ($ million)%

Agriculture and Natural Resources

2 93.31 0.45

Energy 41 6,799.39 33.03

Finance 13 2,410.00 11.71

Health, Nutrition, and Social Protection

2 58.64 0.28

Industry and Trade 9 335.9 1.63

Law, Economic Management,

6 950 4.61

and Public Policy

Multisector 20 2,958.00 14.37

Transport and Communications

32 6,366.85 30.93

Water Supply, Sanitation, 5 614.4 2.98

and Waste Management

Total 130 20,586.50100

India: Contractors/suppliers involved in ADB loan projects,

1 January 2004-31 December 2008

Contractor/Supplier Sector Contract Amount ($ million)

Daelim Industrial Company, Ltd. - Nagarjuna Const.

Transport and Communications 207.83

Bharat Heavy Electricals, Ltd. Energy 156.92

Larsen and Toubro, Ltd. Multisector 149.19

KEC International, Ltd. Multisector 119.64

Sterlite Industiries (India), Ltd. Energy 100.64

Sadbhav Engineering, Ltd. Energy 71.76

IVRCL Infrastructures and Projectd, Ltd.

Multisector 59.01

KMC Construction, Ltd., India Transport and Communications 57.05

Simplex Infrastructure, Ltd., India

Multisector 51.6

HCIL-Adhikarya-ARSS JV Transport and Communications 51.17

Thank You