Catalog

Annual Report 2000

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From Vision to Action

Message from the Chairman of the Board of Directors

The year 2000 marked a new beginning for us all. For the Asian Development Bank, it was particularly significant. It was the year we put vision into action in our fight against poverty. In 1999, we got a new map-the poverty reduction strategy-to guide us. In 2000, the strategy-founded on the three pillars of pro-poor sustainable economic growth, social development, and good governance-led us forward.

ADB has long been working for development, and over the years has contributed significantly to the economic and social advancement of the region. In 2000, we continued to contribute, but this time with a renewed commitment on the basis of the newly adopted strategy. We also reaffirmed our commitment to halving by 2015 the proportion of people living in extreme poverty. We took the steps needed to get us closer to that goal.

As the first step, we began work on a detailed analysis of poverty in the region. We involved stakeholders. We used our knowledge and experience in the region—ADB’s competitive edge—to analyze and understand the different causes and characteristics of poverty in each country. We began reorienting our strategies, projects, and programs. Crosscutting and sector priorities were reassessed with poverty reduction in mind.

We moved further forward by signing poverty partnership agreements: two were signed and others were prepared. These emphasize the uniqueness of each country’s circumstances and the crucial role of stakeholder participation. In-country operations received support with the approval of the resident mission policy. For closer consultation with governments, stakeholders, and civil society, we opened two more missions, a country office, and a special liaison office; and we laid plans for others.

In working to create an environment conducive to pro-poor sustainable economic growth—the first pillar of our poverty reduction strategy—and recognizing that the private sector is an indispensable partner for poverty reduction, we approved a new private sector development strategy in 2000. At the same time we were mindful that social development and the governance agenda are central to reducing poverty.

For an end to poverty, our region needs close cooperation. Many governments and agencies are now focusing on poverty as the real challenge. In 2000, we strengthened our alliances not only with governments but also with other multilateral and bilateral agencies. We developed new mechanisms and institutions to work more closely with stakeholders, including nongovernment organizations.

To turn vision into action, we need resources. We turned to our member countries in 2000, and they responded wholeheartedly. The successful replenishment of the Asian Development Fund—ADB’s main source of concessional assistance—was the highlight of the year. Further help came with the establishment of the Japan Fund for Poverty Reduction, which is supporting innovative poverty reduction projects on a grant basis.

In 2000, ADB also made new friends: Hafeez and his family in Bangladesh, whose meager earnings from doing odd jobs in the village provide barely enough to feed his children; Aminah, a young woman in Indonesia who had spent most of her life on the streets, sniffing glue and singing on the street corner for a few rupiah; Seng Horng (who graces the cover of this Annual Report) who lives in Kampong Cham, one of the poorest towns in Cambodia; and Boyet, a young boy in the Philippines who wakes each night coughing.

We reached out to Hafeez, Aminah, Seng Horng, Boyet, and many others in similar situations, developing projects that promote the three pillars of the poverty reduction strategy with them and their families in mind. The Chittagong Hill Tracts Rural Development Project in Bangladesh is increasing the opportunities for many like Hafeez. Aminah and others now have jobs and homes off the streets as a result of an ADB social development project. Little Seng Horng may soon be reading from a book provided under ADB’s Basic Education Textbook Project. And Boyet will breathe easier someday because of an ADB project to promote clean air legislation.

ADB has been helping Asia and the Pacific for a long time. In 1999, we reaffirmed our dedication to the people of our region and underlined our commitment to our vision: an Asian and Pacific region free of poverty. Now, we are moving forward with resolve, a determination to make a difference, to give every child in the region a brighter tomorrow. Together, we can reach our goal.

Operational Highlights

Loan approvals

• Lending for both public and private sector operations totaled $5.85 bil-lion for 90 loans in 74 projects.

• Of the total lending, loans with government guarantee were $5.7 billion for 70 projects, comprising $4.1 billion from ordinary capital resources (OCR) and $1.6 billion from the Asian Development Fund (ADF).

• Lending to the private sector without government guarantee totaled $156 million for four loans.

• Twenty-two developing member countries (DMCs) and one regional project received ADB loans in 2000. India received the largest amount ($1.3 billion or 23 percent), followed by People's Republic of China, Indonesia, and Pakistan.

• Social infrastructure received the highest share of loans with $1.4 billion or 24 percent of the total lending in 2000.

• The average loan size in 2000 was $65 million.

• Sixty-seven loans approved in 2000, involving $4.2 billion, resulted from earlier technical assistance. Of this, $2.9 billion was from OCR and $1.4 billion from ADF.

   

Poverty reduction

• Forty percent of project approvals, excluding private sector and technical assistance loans, had poverty reduction as their primary or secondary objective.

• The Japan Fund for Poverty Reduction (JFPR) was established with an initial contribution from the Government of Japan of 10 billion yen ($92.6 million) to support, on a grant basis, ADB-financed projects with innovative poverty reduction and related social development activities in line with ADB's poverty reduction strategy. Five projects and programs totaling $7.5 million were approved for JFPR financing.

• Negotiations on the seventh ADF replenishment (ADF VIII), which is intended to provide resources for ADB's concessional lending operations during 2001-2004, were concluded in September 2000. The replenishment agreed upon was $5.65 billion: 25 donors will contribute $2.91 billion, and the balance will be met from existing and internal resources.

Loan disbursements

• A total of $4.0 billion was disbursed in 2000. Of this, 63 percent was for project loans, followed by program, sector, and private sector loans. Equity investments

• ADB approved seven equity investments in the private sector, total-ing $78.2 million.

   

Technical assistance

• In 2000, 306 technical assistance grants totaling $172 million were approved.

• Of the total amount for technical assistance, $77.7 million came from the Technical Assistance Special Fund, $77.1 million from the regular and supplementary contributions to the Japan Special Fund, $7.6 million from the Asian Currency Crisis Support Facility, and $9.6 million from other sources.

• Of the technical assistance projects, 59 were for project preparation, 174 for advisory and operational purposes, and 73 for regional activities.

• The largest share (18 percent) of total technical assistance went to social infrastructure, followed by agriculture and natural resources, finance, and transport and communications.

• Technical assistance components of loans in 2000 totaled $245 million.

• The People’s Republic of China received the largest share of technical assistance grants with $16.7 million or 9.7 percent of total, including regional technical assistance. Other top recipients were Indonesia, India, and Viet Nam.

Cofinancing

• Cofinancing mobilized from all sources amounted to about $3 billion for 41 projects—equivalent to 51 percent of ADB’s total lending in 2000.

• Cofinancing arrangements made with commercial sources totaled $2,261 million; official sources, $557 million; and export credit agencies, $148 million.