Manila: The Asian Development Bank (ADB) achieved a record-breaking milestone by mobilizing $8.7 billion in nonsovereign cofinancing in 2024, demonstrating the increasing significance of private sector involvement in the development landscape of Asia and the Pacific. This achievement contributed to a total cofinancing amount of $14.9 billion for the year, on top of ADB’s own investment of $24.3 billion.
According to Bangladesh Sangbad Sangstha, the year 2024 witnessed comprehensive growth across all nonsovereign cofinancing modalities. Long-term project cofinancing increased by 3.3% to $3.4 billion, while programs related to trade finance, supply chain, and microfinance experienced a 2.4% rise, as indicated in an ADB press release. The volume of transactions in trade and supply chain finance surged from 21,400 in 2023 to 27,600 in 2024, highlighting the stronger demand in these sectors.
A noteworthy project was the gulf solar and battery energy storage project in Thailand, which received $260 million from ADB and an additional $529 million from partners. ADB also mobilized $6.2 billion in sovereign cofinancing, bolstering sovereign operations to help governments enhance infrastructure, services, and resilience.
Multilateral partners emerged as the primary contributors to sovereign cofinancing, providing $3.1 billion for 43 projects, which accounted for 50% of the total sovereign cofinancing. Bilateral partners followed with contributions of $2.9 billion across 35 projects. The Partnership Report 2024, unveiled at ADB’s 58th Annual Meeting in Milan, underscored the role of cofinancing in supporting a diverse range of initiatives, from early childcare and maternal health in India to disaster risk financing and insurance solutions in Mongolia, and 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,’ stated ADB Strategy, Policy, and Partnerships Director General Xinning Jia. ‘Together, we are building a stronger, more resilient future for Asia and the Pacific,’ Jia added.
ADB collaborates with a wide array of partners, including governments, multilateral institutions, and private investors, to tackle complex challenges such as poverty, environmental degradation, and access to basic services. In 2024, two out of every five ADB projects were co-funded by ADB and its partners, illustrating the centrality of partnerships in its developmental strategy.
Trust funds played a significant role, with the Japan Fund for Prosperous and Resilient Asia and the Pacific supporting 33 projects. The Republic of Korea e-Asia and Knowledge Partnership Fund and the High-Level Technology Fund supported 17 and 14 projects, respectively.
In the private sector, ADB Ventures Investment Fund 1 and Leading Asia’s Private Infrastructure Fund 2 offered early-stage and long-term financing to 15 projects focused on innovation and green growth. ADB also established new partnerships in 2024, including one with the South Asian Association for Regional Cooperation Development Fund, to foster economic growth and alleviate poverty in South Asia.
ADB is a prominent multilateral development bank committed to promoting inclusive, resilient, and sustainable growth across Asia and the Pacific. By working with its members and partners, ADB employs innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and protect the planet. Established in 1966, ADB is owned by 69 members, 50 of whom are from the Asia and Pacific region.