2 Plenary - Introducing ADB by RSubramaniam 15Mar2016

8/19/2019 2 Plenary - Introducing ADB by RSubramaniam 15Mar2016

1/20

7 th ADB Business Opportunities Fair

16 March 2016

Introducing ADBBy: Ramesh Subramaniam, Director General, Operations Servicesand Financial Management Department


2/20

Outline

• Part 1: ADB’s Presence, Strategy andDevelopment Context

•

Part 2: ADB’s Operations & BusinessOpportunities


3/20

Part 1: ADB’s Presence, Strategyand Development Context


4/20

ADB’sPresence

HQ in Manila

29 Resident Missions & 3 Rep Offices

(Tokyo; Frankfurt; Wash DC)

• Total Capital Stock: $188 billion from 1 Jan 2017 (Paid-in and Retained Income o$53 billion; Callable Capital of $135 billion)

•

About 3,000 staff


5/20

ADB Strategy 2020

Vision: Asia and the Pacific free of poverty.

ADB’s core operations• Infrastructure• Environment• Regional cooperation• Finance sector• Education

Drivers of Change• Private sector development

and private sector operations• Good governance and

capacity development• Gender equity• Knowledge solutions• Partnerships

http://www.adb.org/Strategy2020/default.asphttp://www.adb.org/Strategy2020/default.asp


6/20

Development Context 1

• Evolvingchallengesfor DMCs andMICs

• Changingdeliverymechanisms


7/20

7

Development Context 2: Subset ofChallenges facing DMCs

AddressingInequitiesand

Disparities

Avoiding the Middle Income Trap

GlobalWarming &Competition

for FiniteResources

FinancialTransformation

& Emerging

Market Concerns

RapidUrbanization

ResourceEfficiency

Innovation &TechnologySolutions

Growth toQuality of

Life


8/20


9/20

Part 2: ADB’s Operations andBusiness Opportunities


10/20

ADB OperationsMain Instruments• Loans and Grants• Technical Assistance• Finance ++:

– Significant leveraging through official and commercial co-financing

– Policy Advice, Knowledge Provision & Capacity DevelopmentLending• Sovereign engagement with Governments• Non-Sovereign lending to private/corporatized

enterprises in developing countries through loans,equity investments, guarantees• AAA credit rating helps mobilize funds for

development activities


11/20

ADB 2006-2015 Approvals

11

Table 1: Approvals*, 2006 –2015($million)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Sovereign 7,115 9,415 9,310 13,702 11,361 11,344 11,127 12,589 11,571 13,669Nonsovereign 805 981 1,400 1,474 1,240 1,561 1,375 1,539 1,918 2,626 Subtotal 7,920 10,396 10,709 15,176 12,601 12,905 12,502 14,128 13,490 16,295

Technical Assistance 148 161 189 202 174 145 151 155 159 141

Cofinancing 1,541 1,135 5,085 5,355 5,162 7,324 8,272 6,645 9,222 10,735

Total Operations 9,609 11,691 15,983 20,733 17,936 20,374 20,925 20,928 22,871 27,171* Approvals include loans, grants, equity investments, and guarantees.Source: Operations Services and Financial Management Department, ADB.


12/20

ADB 2014-2015 Operations ($ million)

12

Approvals by Financing Source, 2014-2015 ($ million)2014 2015

Project Approvals

Ordinary Capital Resources 10,399 13,416Loans 10,194 12,941Guarantees 20 341Equity Investments 185 134

Asian Development Fund 3,091 2,872Loans 2,686 2,514Grants 405 358

Special Funds4 0 7Grants 0 7

Subtotal 13,490 16,295

Technical AssistanceTechnical Assistance Special Fund 152 139Special Funds 7 3

Subtotal 159 141

Subtotal of OCR, ADF and Special Funds 13,649 16,436

Cofinancing Including Trust FundsProject Cofinancing 9,077 10,610Technical Assistance Cofinancing 144 125

Subtotal 9,222 10,735

TOTAL 22,870 27,171


13/20

Annual Approvals, Contract Awards,Disbursements (Projects, OCR & ADF)

• 2006-2015 indicates contract awards and disbursements level lag approvals between $1 to $5billion every year.

• Backlog of contract awards and disbursements keep increasing.• OCR-ADF merger will have increased approvals and bring more pressure on contract awards and

disbursement ratios.

3.9

6.5 6.77.6

9.810.5

8.7

11.4

9.310.3

4.24.6 4.8

6.55.6

7.5 7.36.2

7.98.1

3.23.9

4.6 5.05.3

6.2 6.0 6.57.2 7.0

0

2

4

6

8

10

12

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$ b i l l i o n

Annual Approvals Annual Contract Awards Annual Disbursements

13


14/20

Portfolio Distribution by Sub-Region

Central-West$19.5

billion26%

East Asia$12.4billion16%

Pacific$2.0

billion3%

South Asia$23.3billion31%

South-East$17.5billion

23%

Non-Ops $0.3billion0.4%

14


15/20

Portfolio Distribution by Large Countries

40%

8%

9%

12%

15%

16%

60%

Others Bangladesh

Pakistan Viet Nam

People's Republic of China India

15


16/20

ADB Business Opportunities - by Sector

Agriculture, NaturalResources and RuralDevelopment; 3,310

Education; 1,808

Energy; 7,721

Finance; 1,091

Health; 455

Industry and Trade;120

Information andCommunicationTechnology; 72

Multisector; 220

Public SectorManagement; 742

Transport; 8,009

Water and OtherUrban Infrastructureand Services; 4,064

Uncontracted Loan and Grant Funds - by Sector(in US$ million at 31 Dec 2015) - Total = $27,613M

Transport - 29%Energy - 28%Water/Urban- 15%Agriculture- 12%Education- 7%

16


17/20

ADB Business Opportunities – By Country

1,128

278348

2,309

136419

12 84 6292

3,595

1,139

439233

11280

41391257

11

905

2,933

40

884

245

5,027

4 9 44 36

996

2057 78 31 2

1,560

59

3,140

0

1,000

2,000

3,000

4,000

5,000

6,000

A F G

A R M

A Z E

B A N

B H U

C A M

C O O F I

J

F S M

G E O I N

D I N O

K A Z

K G Z

K I R

L A O

M L D

M O N

M Y A

N A U

N E P

P A K

P A L

P H I

P N G

P R C

R E G

R M I

S A M

S O L

S R I

T A J

T H A

T I M

T K M

T O N

T U V

U Z B

V A N

V I E

Uncontracted Loan & Grant Funds - by Country(in US$ million at 31 Dec 2015) - Total = $27,613M

PRC- 18%IND - 13%VIE- 11%PAK- 11%BAN- 8%

17


18/20

TA Portfolio

1,321 1,379 1,626 1,665 1,599

957 9911069 1070

965

0

200

400

600

800

1000

1200

2011 2012 2013 2014 2015 -

200

400

600

800

1,000

1,200

1,400 1,600

1,800

N um b e

r $

m i l l i o n

Net TA Amount ($mn) No. of Active TAs

898 838

513 466

121122

68 73

0

200

400

600

800

1000

1200

2014 2015 2014 2015

Undisbursed Uncommitted

$

m i l l i o n

Non-PPTA PPTA

18


19/20

Why do Business with ADB?• Worthy development mission: An Asia and

Pacific Free of Poverty • $25+ billion of uncommitted portfolio• A broad range of opportunities across the

region, and sectors• Strong focus on several important thematic

priorities (e.g. gender, governance,environment & climate change etc)

• Working with ADB can unlock the door forbusiness in emerging economies

• ADB is your partner in achieving procurementoutcomes that are fair and transparent


20/20

Thank you!• For further information, please contact:

Ramesh SubramaniamDirector GeneralOperations Services and Financial Management

[email protected]
mailto:[email protected]:[email protected]

2 Plenary - Introducing ADB by RSubramaniam 15Mar2016

Documents

Transcript of 2 Plenary - Introducing ADB by RSubramaniam 15Mar2016