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.
Project Details
-
Project Officer
Hegde, Abhishek Naveen
Central and West Asia Department
Request for information -
Country/Economy
Regional -
Sector
- Finance
- Project Name
- Enabling Green Recovery in Central and West Asia through a Sustainable Financing Program
- Project Number
- 56117-001
- Country / Economy
- Regional
- Armenia
- Kazakhstan
- Pakistan
- Uzbekistan
- 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 Source Amount 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.
- Impact
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
Contact
- 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
Timetable
- Concept Clearance
- 11 Oct 2022
- Fact Finding
- 24 Oct 2022 to 26 Oct 2022
- MRM
- -
- Approval
- 13 Dec 2022
- Last Review Mission
- -
- Last PDS Update
- 13 Dec 2022
Funding
TA 10042-REG
| Approval | Signing Date | Effectivity Date | Closing | ||
|---|---|---|---|---|---|
| Original | Revised | Actual | |||
| 13 Dec 2022 | - | 13 Dec 2022 | 31 Oct 2024 | 30 Jun 2025 | - |
| ADB | Cofinancing | Counterpart | Total | |||
|---|---|---|---|---|---|---|
| Gov | Beneficiaries | Project Sponsor | Others | |||
| 1,925,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,925,000.00 |
| Date | Amount |
|---|---|
| 22 May 2024 | 118,186.44 |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
| 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
None currently available.
Related Publications
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
Tenders
Contracts Awarded
Procurement Plan
None currently available.