Asian Development Bank

Focus of ADB private sector support

We support specific types of private sector projects in our developing member countries. We focus on infrastructure (including social services) and finance. Projects in these two sectors can have a significant development impact, and stimulate private investment. Moreover, each project is an opportunity to demonstrate good governance and influence government reforms.

Why fund infrastructure projects?

Developing countries urgently need more and better power sources, roads, railways, communication systems, water supply and sewerage systems, for example. Countries cannot develop fully until their infrastructure is in place. Private enterprise can frequently provide these systems more efficiently and more cheaply than the public system of a developing country.

Infrastructure projects need heavy financing, and when we get involved, international investors are attracted. Also, when we fund infrastructure projects, government money is freed for social services.

Why fund financial markets projects?

Fully functional financial systems are necessary to promote the private sector. When we strengthen financial institutions, this develops a country's own capacity to finance private sector-led growth.

Why fund social service projects?

Social services are a significant part of a country's infrastructure. In particular, good public health and education services enable the poor to earn more and be more productive. The private sector can often build and manage health and education facilities cost-effectively for government.