Asian Development Bank

Two thirds of the world's poorest people live in Asia and the Pacific. The aim of the Asian Development Bank (ADB), based in Manila, is to reduce poverty and promote sustainable economic growth throughout the region that benefits poor people.

As well as providing finance and technical expertise, the ADB has extensive knowledge and experience of working in Asia and the Pacific and has built close ties with governments. The UK's shareholding is around 2%.

Value for money, clear results

Between 2007-2010, money provided by the ADB had a wide range of benefits in Asia and the Pacific, including:

  • 13 million children benefitted from school improvements or direct support
  • 49,200 classrooms were built or upgraded
  • 2.5 million houses were given access to a water supply
  • 44,200 kilometres of road and 1,700 kilometres of railway were built or upgraded
  • 3.8 million houses were connected to electricity
  • 3.7 million microfinance accounts were opened.

The UK's multilateral aid review assessed ADB to provide very good value for money, with clear strategic management focusing on delivering results in areas important to the UK. The bank works effectively in South Asia and finances the basic infrastructure needed for sustainable economic development.

The multilateral aid review also identified the following priorities for reform:

  • Greater focus on poverty impact in country strategies and projects, explicitly identifying the rationale and outcomes
  • Continued improvement in addressing the needs of girls and women through the design and implementation of projects
  • Tackling climate change, including leveraging private sector finance for projects in low income countries
  • Innovative approaches to support policy dialogue with governments.  

How we work with the ADB

Donor countries, including the UK, have agreed to contribute almost $4.2 billion (USD) to the ADB fund between 2009-2012. This money will provide concessional loans and grants for projects which include:

  • providing safe water to 510,000 people in small towns across Nepal
  • upgrading irrigation and water supply systems in Tajikistan helping 830,000 people to expand and diversify their fruit and vegetable crops
  • enhancing regional cooperation through the establishment of an electric grid interconnection between Bangladesh and India
  • promoting economic diversification and financial sector development in Cambodia
  • tackling regional health, conservation and transport problems in Vietnam and neighbouring countries.

On the ground: Energy in Afghanistan

For more than 20 years the availability of secure energy supplies in Afghanistan was significantly disrupted by conflict. Until recently, more than 90% of the population had no access to electricity. The ADB has played a key role in the construction and rehabilitation of the North East Power system (NEPS), a 420 kilometre transmission line which has brought electricity to the capital Kabul, allowing many of the four million inhabitants to enjoy the benefits of power.

Before now, electricity in Kabul was only available for a few hours at a time and often only once or twice a week. However in early 2009, parts of Kabul started receiving 24 hour power for the first time in decades.

Shopkeeper Mohammed Isaq knows the value of electricity. As a television shop owner he has seen his sales greatly improved. "The season for selling televisions is the Afghan New Year, and we sold twice as many this year," he said. "Electricity is our life".

In addition to the construction of the NEPS, the ADB is also improving energy links with Uzbekistan and Tajikistan, and financing a package that will help connect 1.2 million people in rural Afghanistan to the electricity network.

Last updated: 03 Oct 2011
Kabul lights up: The Asian Development Bank has played a key role in the construction and rehabilitation of the North East Power system in Afganistan. Picture: Asian Development Bank

Kabul lights up: The Asian Development Bank has played a key role in the construction and rehabilitation of the North East Power system in Afganistan. Picture: Asian Development Bank

In recent years many countries in South Asia have seen rapid economic and social development. However, the ADB estimates that around 900 million people are surviving on less than $1.25 a day