MANILA, Philippines - Manila-based Asian Development Bank (ADB) has approved a record $27.17 billion in financial assistance last year as demand for infrastructure financing in Asia “shows no sign of slowing,” the multilateral lending institution said yesterday.
Of the total financial assistance provided last year, $16.29 billion were approved as loans and grants, $141 million as technical assistance and $10.74 for cofinancing.
Disbursements also hit a record high $14.22 billion, up 22 percent from the previous year.
Financial assistance provided to the private sector rose to $2.63 billion last year from $1.92 billion in 2014. Engagement with the private sector is seen as an important component of ADB’s long-term strategy for boosting growth in the region.
The lender said demand for financial assistance for major infrastructure projects in the region showed no sign of slowing as economies in the region seek ways to “address moderating economic growth.”
“Our record performance in 2015 reflects a growing demand from the Asia and Pacific region for ADB’s development assistance,” said ADB president Takehiko Nakao. “Poverty persists despite the region’s impressive growth, and infrastructure and other development needs are monumental.”
ADB sees the region needing about $800 billion for infrastructure investments annually. This corresponds to around six percent of the region’s gross domestic product. Funding deficit, however, restricts investments to only about two to three percent of the regional GDP.
ADB announced last year it would be significantly boosting its capacity to increase financing. It also became the first multilateral development bank to commit to doubling its annual climate financing to $6 billion by 2020.
“Tackling climate change is critical in Asia and the Pacific, where rising sea levels, melting glaciers, and weather extremes like floods and droughts are increasingly costing jobs and lives,” said ADB.
On Wednesday, ADB announced plans to raise around $20 billion from the capital markets this year.
The lender recently returned to the US dollar bond market to boost its resources with the issuance of $2.5 billion two-year bonds and $1 billion 10-year bonds.