The Asian Development Bank (ADB) significantly amplified its development impact in Asia and the Pacific in 2024, mobilizing a record $14.9 billion in co-financing. This substantial figure underscores the pivotal and expanding role of strategic partnerships in addressing the region’s complex challenges.
A key driver of this success was the unprecedented $8.7 billion in non-sovereign co-financing secured during the year. This record mobilization highlights the increasing engagement of the private sector in advancing development outcomes across the region. This non-sovereign contribution complemented ADB’s own investment of $24.3 billion, demonstrating the power of collaborative financing.
The growth in non-sovereign co-financing was broad-based across various modalities. Long-term project co-financing saw a steady increase of 3.3%, reaching $3.4 billion. Notably, trade finance, supply chain finance, and microfinance programs experienced a 2.4% expansion. This increased activity was further reflected in a significant jump in transaction volumes within trade and supply chain finance, rising from 21,400 deals in 2023 to 27,600 in 2024, signaling robust demand. A prominent example of this collaboration is the Gulf Solar and battery energy storage project in Thailand, which benefited from a $260 million contribution from ADB alongside a substantial $529 million from its partners.
Furthermore, ADB’s sovereign operations received significant support, with $6.2 billion in co-financing directed towards assisting governments in strengthening critical infrastructure, essential services, and resilience against various shocks. Multilateral partners emerged as the leading contributors to sovereign cofinancing, providing $3.1 billion across 43 projects, representing 50% of the total. Bilateral partners also played a crucial role, contributing $2.9 billion to 35 projects.
The significance and impact of these partnerships are detailed in the Partnership Report 2024, launched at ADB’s 58th Annual Meeting in Milan. The report showcases how cofinancing facilitated a diverse range of crucial initiatives, from supporting early childhood care and maternal health in India to implementing disaster risk financing and insurance solutions in Mongolia and driving essential power sector reforms in Uzbekistan.
“Through bold actions, innovative solutions, and stronger partnerships, we are committed to driving progress, protecting the most vulnerable, and sustaining ecosystems for millions,” affirmed Xinning Jia, ADB Strategy, Policy, and Partnerships Director General. “Together, we are building a stronger, more resilient future for Asia and the Pacific.”
ADB’s collaborative approach is evident in its diverse network of partners, encompassing governments, multilateral institutions, and private investors, all working together to tackle pressing issues such as poverty, environmental degradation, and limited access to basic services. In 2024, a significant indicator of this collaborative spirit was that two out of every five ADB projects benefited from joint funding with its partners, underscoring the centrality of partnerships to the bank’s development strategy.
Trust funds also played a vital role in amplifying ADB’s impact. The Japan Fund for Prosperous and Resilient Asia and the Pacific supported 33 projects, while the Republic of Korea e-Asia and Knowledge Partnership Fund and the High-Level Technology Fund backed 17 and 14 projects, respectively. In the private sector, the ADB Ventures Investment Fund 1 and Leading Asia’s Private Infrastructure Fund 2 provided crucial early-stage and long-term financing to 15 projects focused on promoting innovation and green growth.
Looking ahead, ADB continued to forge new alliances in 2024 to further expand its reach and effectiveness. This included a new partnership with the South Asian Association for Regional Cooperation Development Fund, aimed at bolstering economic growth and alleviating poverty across South Asia.