DNVN - The Asian Development Bank (ADB) will expand its operations by 50% over the next decade, raising its annual funding commitment from 24 billion USD in 2024 to more than 36 billion USD in 2034.
On February 18, the Asian Development Bank (ADB) announced the approval of its expansion plan. ADB's capital utilization plan will aim to maximize the existing capital base, create momentum to promote sustainable growth, and support developing member countries to address important socio-economic challenges.
Mr. Masatsugu Asakawa - President of ADB emphasized that this plan meets the development needs of the region, creates transformational impacts, contributes to improving people's lives and protecting the environment. By leveraging the expanded financial capacity, ADB will promote strategic investments, towards sustainable and effective solutions.
The plan is the next step in ADB’s reform process, building on measures to strengthen capital management to be implemented from 2023, which will significantly enhance its financing capacity. At the same time, the plan also inherits and builds on the bank’s updated operational strategy, which sets ambitious targets in key areas.
Notably, ADB will continue to step up concessional lending and expand the Asian Development Fund – an important source of aid for member countries with difficult economic conditions. Funding commitments are expected to increase sharply in the next 2-3 years, accompanied by increased human resources and technical assistance, before moving to a phase of stable, sustainable growth.
Private sector financing is expected to grow at a faster pace, from the current 20% to 27% of total commitments over the next decade, while sovereign financing will remain stable, ensuring a balanced ADB portfolio.
ADB plans to use part of its net proceeds to support member countries in implementing high-quality development projects, while also mobilizing additional funds from financial markets.
Some of the key initiatives planned by ADB include a concessional lending facility to promote investment in adaptation and sustainable development projects, flexible financing instruments to enhance project preparation as well as strategies for private sector development, digital transformation, and regional cooperation.
These measures aim to ensure ADB meets its target of increasing its share of climate finance to 50% of total commitments by 2030, while mobilizing a total of $13 billion in private sector financing through own-source financing and direct mobilization.
The implementation of the plan will be reviewed annually by ADB to ensure flexibility and suitability to the development needs of the region. Thereby, it will continue to promote its role as an important financial institution, accompanying countries in the process of sustainable socio-economic development.
Galaxy
Source: https://doanhnghiepvn.vn/kinh-te/adb-mo-rong-quy-mo-hoat-dong/20250218032612970
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