ADB committed $3.23bln in 2021 to tackle Covid, promote green recovery in Pakistan

Islamabad: The Asian Development Bank (ADB) committed $3.32 billion in 2021 to help Pakistan tackle the immediate effects of the coronavirus disease (COVID-19) pandemic and promote a green recovery.

Financial and operational results published on Monday in ADB’s Annual Report 2021 depict how ADB supported its developing member countries (DMCs) through a combination of finance, knowledge, and partnerships.

The commitment made by the ADB in 2021 includes loans and guarantees, grants, equity investments, and technical assistance provided to governments and the private sector. In addition, ADB also mobilized $2.019 billion in co-financing.

According to the report, the ADB committed $600 million for Pakistan’s Integrated Social Protection Development Program and $235 million for the Central Asia Regional Economic Cooperation Corridor Development Investment Program – Tranche 2.

Similarly $300 million were committed for Balakot Hydropower Development, $372 million for Khyber Pakhtunkhwa Cities Improvement, and $5 million were committed for Preparing Kurram Tangi Integrated Water Resources Development Project.

The ADB also committed $300 million concessional loan for Pakistan’s Energy Sector Reforms and Financial Sustainability Program, and $500 million concessional loan for COVID-19 Vaccine Support under the Asia Pacific Vaccine Access Facility.

Overall the ADB committed $22.8 billion from its own resources in 2021 to help Asia and the Pacific tackle the immediate effects of the coronavirus disease (COVID-19) pandemic and promote a green recovery. In addition, ADB also mobilized $12.9 billion in co-financing.

Of ADB’s 2021 commitments, $13.5 billion, or 59%, was for pandemic response, although many of these commitments, such as strengthening the health sector, will also help the region long after the pandemic is over.

The bank’s pandemic response support included $4.9 billion in rapid disbursing financing for governments to support structural reforms and address debt sustainability. The financing included $4.6 billion in policy-based lending and $250 million through the COVID-19 Pandemic Response Option.

As part of the pandemic response, ADB committed $4.1 billion to enable the procurement and delivery of safe and effective vaccines for its DMCs. The bank also provided $3.3 billion to the private sector to keep businesses open, trade flowing, and make medical products and services available. A broad range of knowledge support guided COVID-19 response and recovery plans.

“ADB firmly believes that addressing the impacts of the pandemic and supporting long-term development are not mutually exclusive,” said ADB President Masatsugu Asakawa. “Our sustained COVID-19 response has laid the foundations for an inclusive, resilient, and green recovery, ensuring progress toward our Strategy 2030 objectives.”

Addressing longer-term development challenges, such as climate change, remained an important focus of ADB’s 2021 operations.

“The battle against climate change will be won or lost in Asia and the Pacific. To succeed, our region needs to accelerate the transition to a low-carbon future,” said Mr. Asakawa.

To help meet its new elevated ambition of $100 billion in cumulative climate financing by 2030, the bank announced a series of financing initiatives to bolster the region’s low-carbon development.

For example, ADB launched the Energy Transition Mechanism that will leverage private and public investments to finance the early retirement of coal-power assets, scale up clean and renewable energy solutions, and ensure the transition is just and affordable.

All of ADB’s 2021 commitments include elements that will specifically benefit women and girls. The bank also ramped up efforts to assist governments to mobilize domestic financial resources essential for sustainable growth, including through the launch of the Asia Pacific Tax Hub, a vehicle to support tax and related reforms region-wide.

ADB’s 2021 commitments were funded by its second-largest borrowing program to date, which raised $35.8 billion through the capital markets. ADB sold a record volume of thematic bonds last year and issued education bonds and blue bonds for ocean health for the first time.

The Annual Report also details a series of internal reforms underway to ensure ADB has the right skills, culture, structure, and tools to fulfill its mission.

SOURCE: APP