Central and West Asia
Afghanistan, Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyz Republic, Pakistan, Tajikistan, Turkmenistan, Uzbekistan
ADB helped improve regional transport connectivity, energy security, basic urban services, and the business climate for private sector investment and trade. New regional cooperation agreements were reached. Lending was close to $2.5 billion; disbursements exceeded $2.0 billion, a record by ADB in this region.
Overview
The ADB strategic stance in the region targets basic infrastructure (transport networks, logistics, and irrigation facilities); power and energy; urban services (water, sanitation, waste management, and urban transport); and public sector reforms (banking, nonbanking and financial resource management). ADB responded to long-term investment needs and also to short-term financing gaps in Georgia and Pakistan. Lending was close to $2.5 billion, with disbursements at $2.2 billion, a record high. ADB's nonsovereign approvals in the region totaled $70.0 million plus an estimated portion of $5.0 million from the Equity Investment in Asian Clean Energy Private Equity Funds, a regional project (Statistical Annex 10). The quality of the portfolio improved because of better project management. ADB operated mainly through investment programs rather than stand-alone projects. This increased efficiency and improved project management. ADB also increased its proximity to clients through new offices in Armenia and Georgia and delegated more authority and people to field offices. The 7th Ministerial Conference on Central Asia Regional Cooperation (CAREC), held in Baku, Azerbaijan, deepened economic cooperation among the participating countries with new agreements on energy, transport, and trade. A flagship regional transport project was approved, creating a major east-west corridor through Kazakhstan. This will better connect all neighboring countries and open the way for future north-south corridors through Afghanistan, India, and Pakistan. It will also open routes into the Caspian and Black Sea.
Portfolio Management
ADB increased contract awards and disbursements. By year-end, it exceeded annual targets for contract awards ($2.1 billion) and disbursements ($2.2 billion). ADB redoubled efforts to restructure its project and technical assistance portfolio, especially in Pakistan.
ADB improved portfolio management by introducing early warning systems; using better project management tools; and discontinuing automatic extensions of loans and technical assistance More authority was delegated to resident missions, and field staff expanded. New working arrangements between field and headquarter teams were set up. |
HIGHLIGHTS
- Made major advances in regional cooperation on trade policy, transport, and energy, under the Central Asia Regional Economic Cooperation (CAREC) Program; CAREC participating countries endorsed the Action Plan for the Transport and Trade Facilitation, the Trade Policy Strategic Action Plan, the CAREC Energy Strategy, and the CAREC Institute Work Plan
- Invested more than $600 million in power projects and almost $500 million in transport infrastructure, including regional road projects
- Helped Pakistan with its short-term stabilization program arranged with the International Monetary Fund via a $500 million loan
- Extend a $70 million Emergency Assistance for Post-Conflict Recovery to Georgia anchored on a joint needs assessment with other donors
- Provided a $164 million grant to improve energy transmission and supply in Afghanistan and finance the construction of a 60-kilometer transmission line from Kunduz to Taloqan, power distribution in Kunduz and Baghlan municipalities, development of small hydropower plants, and a gas project in Sherberghan
- Improved portfolio quality, restructured or closed nonperforming loans and technical assistance. Contract awards and disbursements exceeded targets by 6% and 27%, respectively
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A transmission line between Uzbekistan and Kabul increased electricity supply in the city from 2 to 12 hours |
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