Building Strong Partnerships for Shared Progress
By working with partners, ADB makes additional financial and technical resources available for its developing member countries (DMCs). Working with partners also helps improve coordination and reduce fragmentation of the support provided to DMCs. Finally, partnerships can help deliver outcomes that would not have been possible if either the ADB or the partner had operated in isolation.
The 2019 ADB Partnership Report highlights many exciting and impactful examples of ADB financing partnerships (“cofinancing”) in both the ADB’s sovereign operations and its nonsovereign operations. These examples illustrate and explain how cofinancing partnerships are delivering concrete impacts on the ground, how they are aligned with Strategy 2030’s seven operational priorities, and how cofinancing amplifies ADB’s private sector operations.
Sovereign cofinancing—that is, partner financing mobilized because it is necessary to deliver ADB project outcomes— reached $4.89 billion in 2019, adding to ADB sovereign operations worth $18.86 billion. Of this, $4.51 billion were loans that ADB’s partners provided alongside its own loans. ADB also mobilized $372.3 million in grant cofinancing, which allowed technical assistance or other components to be added to ADB’s sovereign projects for the benefit of its developing members. In 2019, ADB successfully collaborated with 33 different partners on 148 individual cofinancing operations that supported sovereign operations in 24 DMCs.
Cofinancing for ADB's private sector operations was also very strong in 2019. ADB’s private sector operations, totaling $3.03 billion, successfully mobilized $6.97 billion. Of this, $3.56 billion came from short-term cofinancing, such as trade finance, while $3.41 billion were long-term cofinancing. For every $1 of ADB private sector long term investments, an additional $1.50 in long term financing from partners was mobilized.
As the COVID-19 global pandemic unfolds, and new priorities emerge on top of the existing needs of the region—from bolstering health systems of DMCs to setting up economic and social safeguards for the vulnerable sectors to stimulating economies that stalled or slowed down in the pandemic—ADB’s partnerships need to be all the stronger to continue working for a prosperous, inclusive, resilient, and sustainable Asia and the Pacific.
All figures in the Partnership Report 2019 are based on commitments. As defined by ADB, “commitment” is the financing approved by ADB’s Board of Directors or Management for which the investment agreement has been signed by the borrower, recipient, or the investee company and ADB. It is the amount indicated in the investment agreement that may or may not be equal to the approved amount, depending on the exchange rate at the time of signing.