PHNOM PENH: Donors and the Asian Development Bank (ADB) have agreed to a replenishment of US$5 billion for the bank’s Asian Development Fund (ADF) and its Technical Assistance Special Fund.
Replenished every four years, the development fund of US$4.1 billion for 2025-2028 will provide eligible members including Cambodia with the “largest-ever volume of ADF grants,” the bank said.
In a statement released Friday, the ADB said the agreement was reached during the bank’s annual meeting in the Georgian capital of Tbilisi which is running from May 2 to 5.
The ADF is the bank’s largest source of grants for its poorest and most vulnerable member countries.
In Southeast Asia, ADF grants in the upcoming four-year period will be available for “transformative projects” in Cambodia, Laos and Timor-Leste, the bank said. Grants will also be available to “support the people” in Myanmar.
‘GRANTS ARE MORE IMPORTANT THAN EVER’
“This remarkable replenishment demonstrates ADF donors’ continued partnership with ADB to address the pressing development challenges of those most in need,” ADB President Masatsugu Asakawa said.
“Grants are more important than ever as our poorest and most vulnerable members seek to reverse recent development setbacks and take urgent action to combat the climate crisis.”
The statement said the latest ADF replenishment would “continue to play a critical role in supporting climate change adaptation and disaster risk reduction.
“It will enable expanded assistance for regional cooperation and regional public goods, and for transformative gender action. It will also provide agile assistance in the event of emergencies through its crisis-response window.”
In parallel to the upcoming four-year ADF phase, the bank said it planned to provide US$16.7 billion in concessional loans with very low interest rates over long repayment periods.
SOUTH KOREA COMMITS US$2 BILLION IN COFINANCING WITH BANK
In a separate statement released Saturday, the bank said President Masatsugu Asakawa and South Korea Deputy Prime Minister Choi Sang Mok signed a memorandum of understanding for US$2 billion in cofinancing over the next three years.
“The cofinancing will support climate change-related projects as well as transport, energy, agriculture, education, governance reform, health, and information and communication technology (ICT) projects,” the bank said.