Asian Development Bank lent $3bn to public sector last year

22 Apr 14

The Asian Development Bank lent more than $3bn to public sectors across the Asia and Pacific region last year, according to the bank’s annual report.

Of the $21.02bn lent out by the ADB, last year, around one seventh went to public sector projects.

Half of this public sector support went to projects designed to improve public sector management, 15% for energy projects and 10% for transport initiatives. Emergency assistance to the Philippines in the wake of the Typhoon Haiyan disaster accounted for 27% of lending support.

The report noted that the economy of the Asia Pacific region is expected to grow by 6.3% in 2014/15. Yet despite this, the bank estimates that 733 million people in the region still live on less than $1.25 a day and the gap between rich and poor is widening.

ABD president and chair Takehiko Nakao said: ‘Asia’s development landscape has changed dramatically over the past several decades. Impressive growth has brought equally impressive poverty reduction, and raised many developing member countries of the ADB to middle-income status. Yet the region has a long way to go on its development journey.’

He said Asian countries needed to find ways to generate good jobs for young people, provide for aging populations and help cities cope with the intense pressures brought about by rapid urbanisation on housing, infrastructure, and public services.

Nakao went on: ‘As it continues to grow, Asia must increase its focus on environmentally sustainable development. The Asia and Pacific region is the fastest growing source of new greenhouse gas emissions in the world. Several of its countries are particularly vulnerable to climate change and natural hazards.’

In 2013, ADB’s clean energy investments reached $2.35bn, stated the report.

The report highlighted that the bank made investments of $644m in education, $575m in support for economic and social reforms and debt relief in Myanmar and approved two electricity generation projects in Pakistan totalling $1.07bn.

Meanwhile, the report also noted that ADB continued to boost its efficiency and effectiveness, introducing initiatives to improve business processes, fight corruption, streamline procurement, and enhance its presence in developing member countries.