ADB

Asian Development Bank

The Asian Development Bank, a multilateral development finance institution, was founded in 1966 by 31 member governments to promote the social and economic progress of the Asian and Pacific region. Over the past 31 years, the Bank's membership has grown to 57, of which 41 are from within the region and 16 from outside the region.

The Bank gives special attention to the needs of the smaller or less-developed countries and priority to regional, subregional, and national projects and programs.

The Bank's principal functions are (i) to extend loans and equity investments for the economic and social development of its developing member countries (DMCs); (ii) to provide technical assistance for the preparation and execution of development projects and programs, and for advisory services; (iii) to promote and facilitate investment of public and private capital for development purposes; and (iv) to respond to requests for assistance in coordinating development policies and plans of its DMCs.

The desirable project mix between social and economic development—adopted by the Bank for all of its public sector lending operations—is a 50:50 ratio; at least 50 percent of the total number of projects will have social or environmental objectives either as primary or secondary objectives; the remaining will support projects with economic growth as the primary objective. In terms of lending volume, the Bank's desirable lending mix is to have 40 percent of total public sector lending for projects with social or environmental objectives by the end of the decade.

Before any project is identified for Bank financing, Bank staff review a country's economy, particularly its national and sectoral development programs, and determine the prospects for its success. Country programming missions visit DMCs regularly to discuss topics of mutual interest with government officials and to select suitable projects for Bank assistance. Since the levels of economic growth, as well as the priorities for development, vary from one DMC to another, the Bank tries to select those projects that will contribute most effectively to the economic and social development of the country concerned, in conformity with the country and Bank-wide strategies. Once it is confirmed that investment in the project is justified, the Bank evaluates the project.

In responding to requests from member governments for loans, the Bank assesses the technical and economic viability, social impact, and financial soundness of projects and the way in which the projects fit into the economic framework and development priorities of the borrowing countries. Standards of accounting and project implementation are maintained. Most contracts are awarded on the basis of international competitive bidding, local competitive bidding, or international shopping, as appropriate. Projects are analyzed and executed and, where appropriate, external consultants are hired to ensure that high standards of performance are achieved throughout the life of the project.