ADB expanded support for COVID-19 response in 2021

ADB expanded support for COVID-19 response in 2021

Private sector operations of Asian Development Bank (ADB) stepped up support for the region’s response to the COVID-19 last year, according to ADB’s Private Sector Operations in 2021 - Report on Development Effectiveness.
The report also said that the lending agency dedicated 78 percent of $4.3 billion in total project and program commitments to help developing member countries manage the pandemic’s economic and social impacts.
ADB extended $3.3 billion in project and program assistance to help tackle pandemic impacts, including support for agribusinesses, private health care providers, small and medium-sized enterprises (SMEs), and transport operators, said a press release.
Over $2.8 billion was committed for COVID-19-related assistance under ADB’s Trade and Supply Chain Finance Program, including support for intraregional trade and efficient distribution of medicines and medical equipment. Total co-financing mobilized for pandemic-related support reached $5.5 billion.
“The private sector will play a vital role in helping Asia and the Pacific’s communities and economies to recover from the pandemic,” said ADB Vice-President for Private Sector Operations and Public-Private Partnerships Ashok Lavasa.
“ADB’s work with the private sector is mobilizing high-impact capital and delivering new technologies to help countries build back better, secure strong and clean economic growth, and meet their development goals.” added Lavasa.
The milestones for ADB’s Private Sector Operations Department in 2021 include pioneer investments in animal health in India, affordable housing in Georgia, support to scale up bank financing for women-led SMEs in Vietnam.
ADB Ventures made seven equity investments in early-stage businesses, with a focus on technology solutions to climate change. The Microfinance Program extended its highest-ever annual volume of loans, lending $482.5 million to microfinance institutions which on-lent the funds to 1.5 million individual borrowers.
There were 35 new projects committed in 2021, with investments totaling $1.2 billion. In line with the department’s operational plan, 80 percent of committed projects directly promote gender equality, more than half of its operations were in new and frontier markets, and over a third support climate change mitigation and adaptation. Long-term co-financing of almost $1.8 billion helped ADB achieve $2.2 raised for every $1 of its own resources.
The projects committed in 2021 are expected to deliver 1.1 million COVID-19 tests each year, reduce more than 560,800 tons of annual greenhouse gas emissions, and support over 622,200 micro, small, and medium-sized enterprises (MSMEs).
About 40 million MSMEs and 10 million farmers have been benefited from ADB’s Private Sector Operations active portfolio. These projects have also delivered more than 372.6 million antiviral medications, created almost 520,000 jobs, and is also delivering over 57,800 gigawatt hours of electricity a year.