The Asian Development Bank’s (ADB) financing partners mobilized $1.1 billion in funding across Southeast Asia in 2021 to support developing member countries (DMCs) with their COVID-19 response and to help spur economic growth, says a new report.
According to the ADB Partnership Report 2021: Partnerships for a Green, Inclusive, and Resilient Recovery, Southeast Asia received the second-highest volume of cofinancing among the regions, coming after South Asia.
Per country, the Philippines received the biggest cofinancing commitments in Southeast Asia with $560 million, followed by Indonesia with $466.7 million.
The Philippines was among the countries that received cofinancing commitments under the Asia Pacific Vaccine Access Facility (APVAX), set up in 2020 to promote safe, equitable, and effective access to COVID-19 vaccines. The Philippines was the first recipient of financing support under APVAX, securing an initial $400 million loan to purchase COVID-19 vaccines, augmented with $250 million in additional financing. This loan was complemented by $300 million in initial cofinancing from the AIIB, augmented with $250 million in additional cofinancing.
The Energy Transmission Mechanism (ETM) is another major thrust for ADB in Southeast Asia that received cofinancing commitments in 2021. The ETM is a collaborative initiative designed to help the DMCs transition from fossil fuels to clean energy. ADB partnered with the governments of Indonesia and the Philippines to pilot the ETM in Southeast Asia. The Government of Japan committed a grant of $25 million as seed financing.
Another Indonesia project that received cofinancing commitment focused on improving labor productivity to bolster economic growth. Cofinanced with $462 million from the KfW Bankengruppe, the project recognizes that human capital development, combined with growth drivers, such as technology and innovation, is key to boosting labor productivity.
The Partnership Report highlights the work of ADB and its partners in cofinancing development work in 2021.
Building strong alliances
“Through partnerships, we build strong alliances, promote knowledge-based solutions, and expand funding for our developing member countries. The focus is increasingly turning to laying the foundation for a green, resilient, and inclusive recovery,” said ADB Managing Director General Woochong Um in a news release.
Across Asia and the Pacific, a total of $12.9 billion in financing was mobilized by ADB’s financing partners in 2021 to support countries address short-term COVID-19 pandemic concerns and to ensure the recovery is green, resilient, and inclusive.
Some $8.9 billion, or 69% of total partner financing, supported COVID-19 pandemic response and recovery interventions. The remaining $4 billion supported targeted growth and job creation among farmers, businesses, women, and sectors such as health and transportation.
Numerous private sector partners, 11 bilateral partners, and 11 multilateral partners cofinanced 135 sovereign and 52 nonsovereign projects with ADB in 2021.
Cofinancing for sovereign projects reached $5 billion, with $2.7 billion from multilateral partners and $2.1 billion from bilateral partners. The remainder was mobilized from global funds and philanthropic and private organizations.
Cofinancing for nonsovereign operations—comprising private sector projects and technical assistance; transaction advisory services; and programs for trade finance, supply chain finance, and microfinance—reached a record $8 billion in 2021. Trade finance drove this volume, rising to $5.4 billion in 2021 from $2.9 billion in 2020.
Fully digital, the Partnership Report is prepared by ADB’s Strategy, Policy, and Partnerships Department.
