Regional : Enabling Green Recovery in Central and West Asia through a Sustainable Financing Program
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.
Hegde, Abhishek Naveen
Central and West Asia Department
Request for information
|Project Name||Enabling Green Recovery in Central and West Asia through a Sustainable Financing Program|
|Country / Economy||Regional
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|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
|Description of Outcome||
Capacity of CWRD DMCs for sustainable financing enhanced
|Progress Toward Outcome|
|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|
|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)|
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|
|Approval||Signing Date||Effectivity Date||Closing|
|13 Dec 2022||-||13 Dec 2022||31 Oct 2024||-||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|1,925,000.00||0.00||0.00||0.00||0.00||0.00||1,925,000.00||19 Jul 2023||294.00|
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|Title||Document Type||Document Date|
|Enabling Green Recovery in Central and West Asia through a Sustainable Financing Program: Technical Assistance Report||Technical Assistance Reports||Dec 2022|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
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Requests for information may also be directed to the InfoUnit.
|Tender Title||Type||Status||Posting Date||Deadline|
|Enabling Green Recovery in Central and West Asia through a Sustainable Financing Program - Senior Green Bond Specialist||Individual - Consulting||Closed|
None currently available.