Global Environment Facility Assembly Meeting
Statement by
Joseph B. Eichenberger
Vice-President (Operations 2)
Asian Development Bank
People's Republic of China
16 October 2002
The Asian Development Bank is honored to address the Assembly of the Global Environment Facility for the first time as a member of the GEF extended family. President Chino of the Asian Development Bank has asked me to convey his best wishes for a successful meeting.
ADB has long been eager to expand collaboration with the GEF, beginning with the earliest stages of the GEF's pilot phase. I recall the efforts of the Presidents of the Regional Development Banks at Rio to seek a role in GEF back in 1992, and the framework agreements that were negotiated with such enthusiasm between the World Bank and RDBs in the early nineties and then abandoned. These discussions failed because the Council was not ready at that time to transfer accountability for GEF projects from GEF Implementing Agencies to RDBs.
Lack of a formal role in the GEF has not stopped ADB from developing - over the last ten years - a strong and varied portfolio of global environmental projects and technical assistance activities in renewable energy and climate change, biodiversity conservation, and management of regional seas and coastal resources. More recently, we are working on mainstreaming global environmental concerns across our operations. For example, in collaboration with Canada, Denmark and the Netherlands, we have embarked on a program that will accelerate and deepen ADB's efforts to promote an Asian shift towards renewable energy and energy efficiency. Another example is ADB's initiative on Combating Desertification in Asia in conjunction with the Global Mechanism of the Convention to Combat Desertification.
Nevertheless, ADB and the other regional banks have remained convinced that the GEF would be stronger if it could work more closely with a wider range of institutions. That is why we worked so enthusiastically with the GEF secretariat to secure the landmark May 1999 decision of the GEF Council to expand opportunities for regional development banks. Although a modest first step, this decision was instrumental in removing some formidable barriers to RDB involvement in the selection and preparation of GEF projects. These barriers included a pipeline entry process that included so many layers of decisions and so much uncertainty and conflicts of interest, that only three RDB projects entered the GEF pipeline in the period 1991-1998.
Since May 1999, in comparison ADB has entered eleven ADB/GEF projects in the formal GEF pipeline covering climate change, biodiversity and integrated ecosystem management. We have requested and been granted 6 PDF block B grants to co-finance our own project preparatory technical assistance grants. Building on the two ADB/GEF projects approved before May 1999, four additional ADB/GEF projects have been approved by the GEF Council, including the pathbreaking PRC/GEF Partnership on Land Degradation which was considered by the Council two days ago. We at ADB are especially grateful to Mohammed El-Ashry, Ken King and the GEF Secretariat staff for their vision, leadership and collegial spirit that have paved the way. The three Implementing Agencies have also been helpful and accommodating, and have generously shared their experience and knowledge of GEF operations with us.
Naturally, it is too early to declare victory. At the strategic level, RDBs can play a much greater part in GEF business planning and in the programming of GEF resources. We have a significant role in financing sustainable development in our respective regions, and are actively engaged in relevant policy dialogue. At the level of projects, a legitimate fear of transactions costs and unnecessary delays in project implementation continues to be the single most important stumbling block to working with the GEF. As recognized by many council members, direct access by RDBs would remove this problem. It simply doesn't make sense to transfer GEF resources from the GEF Trustee through an IA to an RDB and then on to the client country, when these resources can be transferred more directly. We trust this issue can be resolved once and for all.
Mr. Chairman,
ADB's Board and Management have accorded high priority to broadening and deepening the partnership with GEF. ADB's new environment policy to be considered by our Board in November, includes a strategic focus on global and regional life-support systems and specifically highlights the desirability of increased partnership with the GEF.
I can assure you that ADB is firmly committed to make this relationship work and we will continue to pursue this vigorously.
Thank you.
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