ADB aims to make a ‘comeback’ as vital targets fall short in 2017

The Asian Development Bank (ADB) fell short of disbursements and cofinancing targets in 2017, but the Manila-based multilateral lender aims to make a “comeback” this year.

ADB president Takehiko Nakao noted in the bank’s annual report that the lender “fell short of our targets.”

Disbursements for loans and grants stood at $11.126 billion in 2017, down 9.26 percent from $12.262 billion in 2016. This was mainly due to lower disbursements of policy-based loans.

The projected disbursements were $12.8 billion for 2017.

Disbursements are a key indicator if a project was successfully implemented.

The shortfall in cofinancing and disbursements maybe attributed to delays in some projects, ADB vice president for Private Sector Operations and Cofinancing Diwakar Gupta told GMA News Online.

“Cofinancing operations remains strong, and we have to come back this year with a much better performance,” Gupta noted.

ADB has projected about $14.3 billion in cofinancing for investment projects last year.

Cofinancing from bilateral and multilateral agencies and other financing partners totaled $11.922 billion last year, down 0.83 percent from $12.022 billion in 2016.

“What happens is in projects we have a pipeline and we have an expected number, sometimes projects don’t conclude during that year. Some projects get delayed, in some cases there are issues with a particular sector or geography,” said Gupta.

To address the shortfalls, the lender intends to “continuously look at our policies, processes, and strategies. The bank will be taking a “holistic view of what more can be done.”

“Disbursements are essential to make a difference on the ground, while mobilizing cofinancing is critical to realizing the Sustainable Development Goals,” Nakao noted in the annual report.

“We will come up with concrete measures to increase disbursements and cofinancing, building on the new ADB procurement policy approved in April 2017 and ongoing efforts to leverage the bank’s resources,” he said.

Performance measure

The bank has come up with new performance measure of “commitments” or the amount of loans, grants, and investments signed.

The performance measure introduced last year promotes project readiness at approval stage, expedites post-approval steps, and gets closer to project disbursement by placing more emphasis on when the projects are signed, rather than when they are approved by the board.

Around 4,000 delegates from member countries of the ADB are in Manila for the 51st Board of Governors’ annual meeting on May 3 to 6.

The ADB said it is dedicated to reducing poverty in Asia-Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.

Since its inception in 1966, the ADB has been a strong partner in the development of the Philippines—the host country.

The bank is one of the country’s largest sources of official development assistance focusing on infrastructure investments, promoting local economic development, and increasing social investments.

The ADB’s cumulative assistance to the Philippines has reached $16.85 billion in 213 public sector loans and $82.6 million in grants.

Cumulative disbursements to the country for lending and grants ?nanced by ordinary capital resources, the Asian Development Fund, and other special funds amount to $13.94 billion. —VDS, GMA News