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Statement of ADB Operations in 2001

In 2001, ADB approved 76 loans and three equity investments amounting to $5.4 billion compared to the previous year's 90 loans and seven equity investments worth $5.9 billion.

For technical assistance (TA) operations, ADB approved 257 TAs for $146.4 million by the end of 2001, compared with 306 TAs for $172 million in 2000.



Lending

Lending with government guarantee amounted to $5.4 billion for 72 loans - 57 projects and programs, comprising $3.9 billion from 26 OCR loans and $1.4 billion from 46 ADF loans.

This represents a 7 percent decrease from the 2000 level of $5.7 billion - a decrease of 4 percent for OCR and 14 percent for ADF. The average loan amount was $73.6 million, compared with $66.2 million in 2000.

Lending without government guarantee to the private sector amounted to $37.5 million for four loans - three projects, compared with $156 million for four loans - four projects - in 2000.

A total of 22 countries and one regional project received loans in 2001. Among these, India received the largest aggregate loan amount - $1,500 million or 28.1 percent, followed by

  • People's Republic of China - $997 million or 18.7 percent
  • Pakistan - $956.8 million or 17.9 percent
  • Indonesia - $500 million or 9.4 percent
  • Bangladesh - $297.9 million or 5.6 percent
  • Viet Nam - $260.6 million or 4.9 percent
  • Sri Lanka - $146 million or 2.7 percent
  • Philippines - $105 million or 2 percent
  • Nepal - $95.6 million or 1.8 percent
  • Papua New Guinea - $75.9 million or 1.4 percent
  • Cambodia - $75.2 million or 1.4 percent
  • Kyrgyz Republic - $75 million or 1.4 percent
  • Uzbekistan - $72 million or 1.3 percent
  • Lao PDR - $65 million or 1.2 percent

The balance of approximately 2 percent went to

  • Mongolia - $35.7 million
  • Regional - $20 million
  • Maldives - $17.5 million
  • Federated States of Micronesia - $13 million
  • Marshall Islands - $12 million
  • Bhutan - $7 million
  • Samoa - $6 million
  • Tajikistan - $3.6 million
  • Cook Islands - $2.2 million

Of the 57 public sector projects approved in 2001, nine projects have been categorized as core poverty intervention and 18 as poverty intervention.

Below is the number of projects for each theme.

  • Economic growth - 22 projects or 38.6 percent
  • Environmental protection - 3 projects or 5.3 percent
  • Gender and development - 2 projects or 3.5 percent
  • Good governance - 2 projects or 3.5 percent
  • Human development - 13 projects or 22.8 percent
  • Private Sector development - 2 projects or 3.5 percent
  • Multithemes/others - 13 projects or 22.8 percent

By sector, transport and communications received the largest share of loans with 26.7 percent of the total lending, followed by

  • multisector - 14.2 percent
  • others - 14 percent
  • energy - 12.4 percent
  • agriculture and natural resources - 11.3 percent
  • finance - 10.6 percent
  • social infrastructure - 9.2 percent
  • industry and nonfuel minerals - 1.6 percent

The 44 public and private sector investment projects - 57 loans - will require a total investment of $7.6 billion.

ADB will finance $3.7 billion or 49 percent, $2.3 billion or 31 percent by government and other borrowers, $1.4 billion or 18 percent by cofinancing sources, equity sponsors, and local financial institutions, and $165 million or 2 percent by project beneficiaries.

Nine of the investment projects, amounting to $547.8 million, were financed under the sector lending modality compared with 11 projects amounting to $925.3 million in 2000.

Sixteen policy-based programs - 19 loans - were approved in 2001 amounting to $1.6 billion. It increased from the previous year's 11 programs - 13 loans, amounting to $1.1 billion.

Policy-based programs include program loans and policy loan components of sector development program facilities. In 2001, these programs accounted for 30 percent of total lending with government guarantee. Eight of the programs approved were coupled with an investment project loan, a sector loan or a TA loan.

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Equity Operations

Three equity investments totaling $30.36 million were approved in 2001 compared with 7 investments for $78.15 million in the previous year.

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Cofinancing and Guarantee Operations

In 2001, cofinancing mobilized from all sources amounted to about $1.4 billion for 25 projects, equivalent to about 26 percent of ADB's total lending of $5.3 billion.

This level of cofinancing is significantly lower than last year's figure of nearly $3.0 billion for 41 projects.

A Partial Credit Guarantee of up to $90 million was approved to support commercial cofinancing for the Small and Medium Enterprise Credit Assistance Project in Sri Lanka.

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Grant-Financed Projects

Seventeen projects - 14 country-specific projects and three regional projects - received grant financing amounting to $93.8 million in 2001. Of the total amount approved, $24 million will be financed from the Japan Fund for Poverty Reduction, $9 million from the Global Environment Facility, and $60.8 million from Australia, Denmark, The Netherlands and the United Kingdom.

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Technical Assistance Operations

A total of 257 TAs for $146.4 million were approved in 2001. This represents a 15 percent decrease compared to the $172 million approved in 2000.

Of the 257 TAs approved during the year, 64 were for project preparation, 142 for advisory and operational assistance and 51 for regional assistance.

Of the total amount approved, $59.8 million will be financed from the ADB's TASF, $53.8 million from the Japan Special Fund, $16.1 million from the Asian Currency Crisis Support Facility, and the remaining $16.7 million from other bilateral sources.

The largest recipient of country-specific TA grants was Indonesia with $15.9 million or 13.7 per cent, followed by

  • People's Republic of China - $12.4 million or 10.7 percent
  • Viet Nam - $8.4 million or 7.2 percent
  • India - $8 million or 6.9 percent

By sector, excluding regional TAs, others received the largest share - $33.3 million or 28.6 percent, followed by

  • agriculture and natural resources - $22.2 million or 19.1 percent
  • social infrastructure - $19.3 million or 16.6 percent
  • finance - $13.2 million or 11.3 percent
  • transport and communications - $10.5 million or 9 percent
  • multisector - $7.2 million or 6.2 percent
  • energy - $9.4 million or 8 percent
  • industry and nonfuel minerals - $1.5 million or 1.2 percent

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