Asian Development BankFINAL PROJECT

Group Members

08208010 •AROOSHA EJAZ

08208008 •SEHRISH NAZ

08208025 •ASMA YOUNAS

08208016 •SAQIB MUKHTAR

08208013 •UMER GILL

Introduction of ADB

• A multilateral development bank, founded in 1966

• ADB has grown to encompass 67 members – of which 48 are from within the Asia and Pacific region and 19 outside.

• Georgia is the 67th and newest member, having joined ADB effective 2 February 2007.

History of ADB Headquarters: Manila, Philippines

Regional members: 48

Members: 67

Founded: 1966

Non regional members: 19

Field offices: 26

History of ADB

Total employe

es: 2,400+

Nationalities

employed: 50+

Total grants in

2007: $672.7 million

Total loans

in 2007: US$10.1 billion

Technical assistance in 2007:

$243.4 million

Private Sector

Assistance in 2007:

$1.75 billion

Vision

ADB is an international development finance institution whose mission is to help its developing member countries reduce poverty and improve the quality of life of their people.

MISSION

Its mission is to help its developing member countries reduce poverty and improve the quality of life of their citizens.

CHALLENGE

Asia and Pacific remains home to two thirds of the world's poor. In addition to the hundreds of millions of Asians who survive on less than $1 a day, some 1.7 billion people make ends meet on less than $2 a day.

FOCUS

ADB Focuses on poverty reduction. In doing so, It emphasizes :

• Promotion of pro-poor , sustainable economic growth

• Social development • Good governanceIn support of the above,ADB concentrates on:• Protection of environment• Promotion of gender & development• Private sector development• Regional co-operation

FUNCTIONS

• To fulfill its purpose, the Bank shall have the following functions:

• To promote investment in the region of public and private capital for development purposes;

• To undertake such other activities and provide such other services as may advance its purpose

FUNCTIONS

• To utilize the resources at its disposal for financing development of the developing member countries in the region, giving priority to those regional, sub-regional as well as national projects and programmes which will contribute most effectively to the harmonious economic growth of the region as a whole, and having special regard to the needs of the smaller or less developed member countries in the region;

SOURCES OF FUNDS

Issuing the bond

Retained earnings

from lending's

Members Contributi

on

Borrowing from

worlds capital market

Sources of Finance

• ADB raises fund through bond issues on the world's capital markets. Also rely on members' contributions, retained earnings from its lending operations, and the repayment of loans.

• ADB has provided over $575 mill for road projects in Afghanistan(ADF)

Sources of Finance

• ADB is a multilateral development finance institution that engages in mostly public sector lending for development purposes in its developing member countries.

• In 2008, India was the largest borrower with $2.9 billion, or 27.4% of the total loans ADB extended last year.

What does ADB do ?

ADB's overarching goal is to reduce

poverty in Asia and the Pacific. It

helps to improve the quality of

people's lives by providing loans and

technical assistance for a broad

range of development activities.

OBJECTIVES

• To promote investment in ESCAP region of public & private capital for development

• To utilize the resources for financing development, giving priority to the projects

Features

Asian character

Concern for small economies

Particular emphasis on regional and sub regional cooperation

FEATURES

DEPARTMENTS •OFFICE OF THE AUDITOR GENERAL

•OFFICE OF ANTICORRUPTION AND INTEGRITY

•STRATEGY AND POLICY DEPARTMENT (SPD)

•OFFICE OF REGIONAL ECONOMIC INTEGRATION

•OFFICE OF THE SPECIAL PROJECT FACILITATOR

•DEPARTMENT OF EXTERNAL RELATIONS

DEPARTMENTS •REGIONAL AND SUSTAINABLE DEVELOPMENT DEPARTMENT

•ECONOMIC AND RESEARCH DEPARTMENT-ERD

•OFFICE AND CO-FINANCING OPERATIONS-OCO

•SOUTH ASIA DEPARTMENT

•CENTRAL AND WEST ASIA DEPARTMENT

•Private sector operations department

DEPARTMENTS •EAST ASIA DEPARTMENT

•SOUTHEAST ASIA DEPARTMENT

•PACIFIC DEPARTMENT

•THE CENTRAL OPERATIONS SERVICE OFFICE

•BUDGET, PERSONNEL & MANAGEMENT SYSTEMS DEPARTMENT

•CONTROLLER’S DEPARTMENT

•TREASURY DEPARTMENT

SECTORS

SECTOR OVERVIEW

PRODUCTS• These are some of the products ADB

provide to support private sector projects in the Asia Pacific region with a positive developmental impact. E

QUITY INVESTMENT

LOANS

GUARANTEES

B LOAN

PRODUCTS

o Equity investment in the private sector

We can either invest in projects

• Directly or• Through financial intermediaries such

as investment funds.

Products Cntd…

Equity Investments

DIRECT EQUITY INVESTMENTS

INDIRECT EQUITY INVESTMENTS

Product Cntd…

LOANS TO PRIVATE SECTOR

GUARANTEESPartial Credit Guarantees

Political Risk Guarantees

B-LOAN (COMPLEMENTARY

FINANCING SCHEME)

B LOAN DOCUMENTATION

SUCCESS STORIES

• ADB says China growth in 2008 at 10 percent

• ADB: Vietnam’s slowing economy to bounce back in future

Terms and Conditions of lending

• For loans $250 million An amount equal to 25% of total project cost, in the

case of a limited recourse project financing, or total assets of the relevant borrower, in the case of a corporate loan, provided that in the event project costs or total assets, as the case may be, are less than $50 million, whichever is lower

up to $400 million, or 70% of project cost or total assets, as the case may be,

whichever is lower, provided that there is a guarantee from an entity with an international credit rating of A- or better for that class transaction.

Terms and Condition of lending Cntd…

• For guarantees: $400 millionan amount equal to 40% of total project cost,

in the case of a limited recourse project financing or total assets of the relevant borrower, in the case of a corporate loan, whichever is lower.

• For equity investments: $75 million 25% of the aggregate issued share capital of

the investee at the time of ADBs commitment to invest, whichever is lower.

STRATEGIES

Public communications policy • Awareness and understanding of ADB activities,

policies, strategies, objectives, and results among ADB’s constituents, other stakeholders, and the general public

• Sharing and exchange of development knowledge and lessons learned, so as to provide fresh and innovative perspectives on development issues

• Greater two-way flow of information between ADB and its stakeholders

STRATEGIES

OPERATIONAL : formulates operational strategies for individual countries, including economic, thematic and sector policy analyses, and undertakes country performance reviews which provide a basis for policy dialogue with the governments of developing member countries.

STRATEGIES

COUNTRY PARTENERSHIP STRATEGY(CPS) :Includes an indicative rolling country business plan composed of individual technical assistance and loan projects and programs for priority sectors

FUTURE STRATEGIES 2020

• Under Strategy 2020, a long-term strategic framework

• adopted in 2008, ADB will follow three complementary

• strategic agendas:• Inclusive growth,• Environmentally sustainable growth,& Regional

integration.

STRENGTHS OF ADB

• STRENGTHS• Presence in throughout Asia and Pacific: 20

resident missions, 3 sub-regional offices, and 2 special offices ensure close communications with national governments;

• Main counterpart is Ministry of Finance/Ministry of Planning

• ADB has a strong infrastructure portfolio (transport, energy, water resources) that can be developed with LDCF financing.

• ADB has adaptation experience

STRENGTHS OF ADB

• STRENGTHS• Presence in throughout Asia and Pacific: 20

resident missions, 3 subregional offices, and 2 special offices ensure close communications with national governments;

• Main counterpart is Ministry of Finance/Ministry of Planning

• ADB has a strong infrastructure portfolio (transport, energy, water resources) that can be developed with LDCF financing.

• ADB has adaptation experience

Pakistan

ADB and Pakistan • Pakistan is the ninth largest shareholder in ADB

among its regional members. • Overall, Pakistan is the 13th largest shareholder. • Pakistan has received about $18.59 billion in • loans since joining ADB in 1966 • ADB is working with the Government and the

private sector to improve the country’sinfrastructure, energy security, and basic public services

Projects• Last Update: 21 May 2010

Preparing Railway Development Investment Program • Last Update: 4 May 2010

PAK: JS PRIVATE EQUITY FUND I • Last Update: 3 May 2010

PAK: DAHARKI POWER PROJECT • Last Update: 3 May 2010

NEW BONG ESCAPE HYDROPOWER • Last Update: 30 April 2010

Punjab MDG • Last Update: 29 April 2010

Sindh Public Resource Management Program II • Last Update: 29 April 2010

Punjab Government Efficiency Improvement Program • Last Update: 29 April 2010

Punjab Irrigated Agriculture Sector Development • Last Update: 29 April 2010

Private Participation in Infrastructure and Utilities Sector Development • Last Update: 29 April 2010

Punjab Cities Improvement Program - MFF PFR I

INTERNATIONAL PROJECTS

• It is involved in so many projects; in so many its member countries like:

CHINA : 1. Road safety improvementINDIA:2. North Karnataka Urban sector Investment

program3. Karnataka highway 4. network improvement 5. strategy(apan spl fund). etc

Ordinary Capital ResourcesBorrowings

Paid-in capital from shareholders

Accumulated retained income (reserves)

Repayment of loans

THANK YOU For listening to us.