DUSHANBE, May 6, Asia-Plus — The Asian Development Bank (ADB) has secured US$11.3 billion for the next four-year phase of its concessional development fund to fight poverty in the Asia and Pacific region – a significant jump of over 60% from the previous period, press release issued by ADB on May 6 said.
“The generous contribution of donor nations will help developing Asia-Pacific countries meet Millennium Development Goal targets, and bring better opportunities and a brighter future to people living in the region’s poorest nations,” ADB President Haruhiko Kuroda said.
The Asian Development Fund (ADF) provides grants and low-interest loans to the Asia and Pacific’s poorest countries, which are home to some 400 million people living on less than $2 a day. The new ADF will cover the period of 2009-2012.
Roads, clean water and sanitation, electricity networks and other essential infrastructure that improve the lives of the impoverished and accelerate growth will continue to be a cornerstone of ADF support.
ADF negotiations concluded in the Spanish capital on the eve of ADB’s 41st Annual Meeting of the Board of Governors in Madrid.
The fund will provide support to further enhance regional cooperation and integration in the Asia and Pacific region. It will continue to support the agriculture sector through the funding of irrigation systems, rural roads and rural finance mechanisms.
A significant proportion of future ADF resources is also expected to fund education initiatives. “Education is the key to young persons’ advancement and nations’ development, and an investment today pays off many-fold in the future,” President Kuroda said.
The fund will also provide support for climate change mitigation and other environmental measures.
The last replenishment of the ADF, which covered 2005 to 2008, totaled $7 billion.
ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2007, it approved $10.1 billion of loans, $673 million of grant projects, and technical assistance amounting to $243 million.
