Catalog

	Table of Contents
p. 2 of 24 BACK | NEXT The Asian Development Bank Mobilizing Private Capital Assistance to Private Enterprises Eligibility for ADB Assistance Advantages of Working with ADB Extent of ADB Assistance Appraisal Criteria Loan Terms Security Procurement Accounting and Auditing Arrangements Corporate Governance Environmental Considerations Role of ADB in Supervising Investments Risk Principles for Investment Funds Sale of ADB Equity Investment Commercial Cofinancing Complementary Financing Scheme Guarantees Export Credit Agency Cofinancing Applying for ADB Assistance Processing Procedures Illustrative Private Sector Projects of ADB Contact Information

ADB’s Private Sector Operations: Catalyzing Private Investments Across Asia and the Pacific

---

Mobilizing Private Capital

The demand for private capital has increased considerably in the region,influenced by the financing needs of large infrastructure develop- ment programs as well as the capitalization needs of financial institutions. While official development aid continues to be an important element in the development strategies of ADB and its DMCs,it is inadequate to meet their growing capital requirements.Attracting private capital has become a strategic objective of many DMC governments.

ADB is in a unique position to assist in mobilizing international private capital for its DMCs.It has considerable regional experience accumulated over decades and,through policy dialogue with member governments,has assisted in formulating policies designed to encourage private initiatives. However,structural reforms alone are not enough to attract long-term investors.The presence of a multilateral bank investing alongside private partners also helps by providing comfort to the private investors.Innovative financial solutions involving a mixture of private and official funding sources may be needed for commercial lenders and equity investors to manage the risks associated with investing in developing countries.ADB has been directly supporting private sector projects through its nonsovereign window since 1983.

Currently,private sector operations are carried out by ADB ’s Private Sector Operations Department (PSOD),to provide focus for the catalytic role of ADB in mobilizing private capital for DMCs.PSOD has helped ADB respond to new opportunities and challenges created by the increasing role of the private sector in economic development,actively promoted by DMC governments.

Back The Asian Development Bank	Next Assistance to Private Enterprises