Annual Report 2008

Southeast Asia

Brunei Darussalam, Cambodia, Indonesia, Lao People's Democratic Republic, Malaysia, Myanmar, Philippines, Singapore, Thailand, Viet Nam

With 117 ongoing projects, the achievement of 199% of the annual projection for contract awards and 216% of its disbursement targets, ADB is exceeding 2007 performance in the region while strengthening regional cooperation.

Overview

ADB's operations in Southeast Asia were closely aligned to Strategy 2020 and its other major policies. ADB approved 25 loans and 12 grants (30 projects) amounting to $2.9 billion for the region. ADB also provided 77 technical assistance projects for $93.0 million. ADB's nonsovereign approvals in the region totaled $645.0 million plus an estimated portion of $25.0 million from the Equity Investment in Asian Clean Energy Private Equity Funds, a regional project (Statistical Annex 10).

ADB's operations in 2008 aimed to help developing member countries institute legal and regulatory reforms, formulate and implement economic and public policy, improve urban and rural infrastructure, ensure environmentally sustainable natural resources management, and improve education systems.

ADB's operations continued to emphasize development results. All programs and projects addressed quality-at-entry and project readiness throughout preparation, rigorously monitoring portfolio indicators and identifying delays and other risk factors.

Portfolio Management

As of 31 December, ADB had 140 ongoing loans and Asian Development Fund grants (equivalent to 117 ongoing projects), with a net amount of $10.6 billion. ADB had achieved 199% of its annual projections for contract awards and 216% of its disbursement targets, exceeding 2007 performance by 96% and 107%. The technical assistance portfolio had 194 active projects with a total revised amount of $284.3 million.

Advance actions and tracking systems enabled timely closure of loans and technical assistance projects and early detection of projects at risk. Improvements in the automation of performance reports highlighted problem areas. Rigorous monitoring of the portfolio continued.

Regional Cooperation

ADB strengthened cooperation within archipelagic SoutheastAsia (aSEA), which includes the Brunei Darussalam-Indonesia-Malaysia-PhilippinesEast ASEAN Growth Area (BIMP-EAGA), the Indonesia-Malaysia-Thailand GrowthTriangle (IMT-GT), and the Greater Mekong Subregion (GMS). It also furtherimproved coordination with the Association of Southeast Asian Nations (ASEAN)secretariat.

ADB supported the Third GMS Summit in Vientiane, Lao People'sDemocratic Republic (Lao PDR), in March; the First GMS Economic Corridors Forumin Kunming, Yunnan Province, People's Republic of China, in June; and thecompletion of the GMS regional cooperation operations business plan for2009-2011. This plan has 39 proposed subregional investment projects amountingto around $1.9 billion and nonlending products and services totaling almost$23.0 million.

ADB intensified its assistance to subregional institutionswithin BIMP-EAGA and to helping the private sector communicate with developmentpartners. Studies for streamlined customs, immigration, quarantine, andsecurity procedures and harmonized border-crossing formalities were completed,along with a comprehensive midterm review of the BIMP-EAGA road map for2006-2010.

ADB worked closely with the three IMT-GT countries to implementthe IMT-GT road map for 2007-2011. ADB supported IMT-GT connectivity corridordevelopment through studies on logistical costs and constraints on maritimelink development. ADB also assisted the Center for IMT-GT SubregionalCooperation.