Project Name Enabling Green Recovery in Central and West Asia through a Sustainable Financing Program
Project Number 56117-001
Country / Economy Regional
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 10042-REG: Enabling Green Recovery in Central and West Asia through a Sustainable Financing Program
Technical Assistance Special Fund US$ 1.80 million
Financial Sector Development Partnership Special Fund US$ 125,000.00
Operational Priorities OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP6: Strengthening governance and institutional capacity
Sector / Subsector

Finance / Infrastructure finance and investment funds

Gender Some gender elements
Description The knowledge and support technical assistance (TA) program will address requests from the governments of the developing member countries (DMCs) of the Central and West Asia Department (CWRD) of the Asian Development Bank (ADB) to support their post-coronavirus disease (COVID-19) green recovery by enabling the strategic adoption of globally acceptable sustainable financing standards and practices by their sovereign institutions. To achieve the Strategy 2030 objectives, the TA program will help enhance the capabilities of CWRD DMC sovereign institutions to conceptualize sustainable financing strategies, identify priority investment projects, facilitate appropriate private sector participation, address institutional barriers, and adopt internationally accepted sustainable financing practices.
Project Rationale and Linkage to Country/Regional Strategy

Coronavirus disease impact and constrained fiscal bandwidth. Sovereign institutions in the CWRD region dominate the key economic sectors and control a significant share of public resources that will be central to developing an effective COVID-19 green economic recovery approach for the region. The immediate consequences of COVID-19 have been rising public debt levels, increased sovereign risk, rating downgrades, and capital outflow, all which have been a cause of extreme concern among ADB DMCs. With more than 90% of Asia's overall infrastructure investment being provided by the public sector, the limited tax revenues, drop in overseas remittances, slower economic growth, and crisis relief packages have created a possible threat for reversal of green economic development policy mandates in favor of short-term revenue recovery measures and are further constraining public investments.

Enhanced role of public sector in green recovery. It is important that the private sector supplements the public sector's role in recovery strategies by scoping and identifying opportunities associated with climate change benefits. As DMCs contemplate and strategize the revitalization and the restart of their economies, it is critical that the recovery strategies they adopt do not neutralize past efforts toward creating a sustainable economy (footnote 11) and appropriately diversify their sources of financing to meet their nationally determined contributions (NDCs).

Limited uptake of sustainability-labeled financial securities. A main challenge limiting the growth of the sustainability-labeled financial securities market is the lack of supply of securities with good credit ratings owing to high transaction costs, lack of effective tools to validate projects, and ineffective risk mitigation tools. DMC governments are further constrained because of limited fiscal resources, sub-investment-grade sovereign ratings, small project sizes, and lack of asset securitization mechanisms. Sustainability-labeled financial securities like green bonds (footnote 11) complement the DMC governments' efforts in mobilizing private capital for meeting their NDCs through market-based approaches.

Weak institutional implementation mechanisms for green financing. Although work has been initiated on greening of the financial systems by many DMCs in the CWRD region, to accelerate the adoption of green financing guidelines and environmental, social, and governance (ESG) frameworks, the domestic financial institutions still need to design new financial products, develop internal systems and controls, educate relevant stakeholders (including staff), and identify target industries and technologies for requisite financing.


Institutional capacity of DMCs strengthened and sustainable economic growth facilitated

Project Outcome
Description of Outcome

Capacity of CWRD DMCs for sustainable financing enhanced

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Sustainable financing strategy for sovereign institutions developed

2. Institutional capability of sovereign institutions for sustainable financing enhanced

3. Knowledge support to sovereign institutions for mainstreaming of international sustainable financing standards and practices provided

4. Capacity for development of a national blended sustainable financing facility enhanced

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Armenia - Nation-wide; Kazakhstan - Nation-wide; Pakistan - Nation-wide; Uzbekistan - Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Hegde, Abhishek Naveen
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Private Sector Development Unit, CWRD (CWPS)
Executing Agencies
Asian Development Bank
Concept Clearance 11 Oct 2022
Fact Finding 24 Oct 2022 to 26 Oct 2022
Approval 13 Dec 2022
Last Review Mission -
Last PDS Update 13 Dec 2022

TA 10042-REG

Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Dec 2022 - 13 Dec 2022 31 Oct 2024 30 Jun 2025 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,925,000.00 0.00 0.00 0.00 0.00 0.00 1,925,000.00 22 May 2024 40,666.40
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