MANILA, May 4 (NNN-PNA) – Donors and the Asian Development Bank (ADB), have agreed to a replenishment of five billion U.S. dollars, for the ADB’s Asian Development Fund (ADF) 14, and Technical Assistance Special Fund (TASF) 8, the ADB announced, yesterday.
The commitment was made during the ADB’s 57th annual meeting in Tbilisi, Georgia.
The ADF is ADB’s largest source of grants for operations in its poorest and most vulnerable developing member countries, and is replenished every four years.
The ADF 14, marking the 13th replenishment since the fund’s establishment, will support grant operations from 2025 to 2028. The ADF 14 replenishment is about 22 percent higher than the 4.1 billion dollars available in the ADF 13, and will provide eligible ADB members with the largest-ever volume of ADF grants.
The ADF 14 prioritises dedicated assistance to small island developing states, that are particularly vulnerable to climate change, and to countries in fragile and conflict-affected situations. It will continue to play a critical role in supporting climate change adaptation and disaster risk reduction. Through its crisis response window, it will provide agile assistance in emergencies.
The TASF 8 will provide grants that help prepare projects, build capacity, and provide technical or policy advice.
Donor contributions, including those from two new countries, Armenia and Georgia, will fund more than 2.5 billion dollars, or 51 percent, of the replenishment.
The ADB will significantly increase its net income transfers to ADF, from just under 1.2 billion dollars in the ADF 13, to almost 1.6 billion dollars in the ADF 14, an increase of 35 percent. The remaining 0.9 billion dollars will comprise transfers from earlier ADF cycles and income from liquidity investments.
In parallel, the ADB intends to provide 16.7 billion dollars in concessional loans, which have low-interest rates over long repayment periods, during the ADF 14 period. It can provide more than eight dollars in grants and concessional loans, for every one dollar in donor contributions.– NNN-PNA
