Asian Development Bank

Sir Mubashar Ali

ACKNOWLEDGEMENT
We offer our humblest thanks to ALMIGHTY ALLAH, The most Merciful and Most compassionate and the entire source of all knowledge and wisdom. We thank ALMIGHTY, ALLAH, who gave me the capability to do this project efficiently and successfully. We had to face a lot of difficulties during this period of developing the report. But Allah gave me the patience and due to the continuous encouragement of my teachers and other people concerned, we were able to complete this work. We offer my humblest respects to the HOLY PROPHET HAZRAT MUHAMMAD (Peace Be upon Him) who is, forever a torch of guidance and knowledge for humanity as a whole. Its very difficult for me to find the right words to express my gratitude to our worthy teacher Sir Mubasher Ali his keen interest, in time and useful suggestions, continuous encouragement. Apart from my respectable advisor, there are many other people who have been very helpful to me right from the beginning. At the end we thank, my class fellow whose company was a source of encouragement and inspiration, because without naming him this acknowledgement will not be complete.

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Asian Development Bank

Sir Mubashar Ali

Asian Development Bank

Superior University Lahore

Asian Development Bank

Sir Mubashar Ali

EXECUTIVE SUMMARY
Climate change is regarded today as an urgent issue to be dealt with at the international, national and local levels. However, climate change concerns are rarely, if ever, considered in the environmental decision-making process, especially during the process of evaluating and granting of approval to a range of projects under any spectral investment or development models. The link between climate change and development is evident. The World Summit on Sustainable Development (WSSD 2002) accepted the concept of mainstreaming which involves the integration of policies and measures that address climate change into development planning. While it should now be a common practice to mainstream climate change into developmental models as pursued by countries and multilateral developmental banks, the Asian Development Bank (ADB) has failed to follow suit so far. Mainstreaming ascertains the extent to which existing development projects already consider climate risks or address vulnerability to climate variability and change or contribute to climate change, and then identify opportunities for incorporating climate change explicitly into future projects. To evaluate ADBs, as well as respective borrowing countries, credibility in mainstreaming climate change, the NGO Forum on ADB (hereafter Forum) has initiated a study Accelerating the Mainstreaming of Climate Change in National Policy Development using Environmental Impact Assessment (EIA) Processes in four countries across Asia. The Banks Safeguard Policy Statement (SPS) earlier known as the Safeguard Policy requires a set of obligations on the EIA process to be followed and adhered to by the borrowing countries.

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Sir Mubashar Ali

Organization:
The highest policy-making body of the bank is the Board of Governors composed of one representative from each member state. The Board of Governors, in turn, elect among themselves the 12 members of the Board of Directors and their deputy. Eight of the 12 members come from regional (Asia-Pacific) members while the others come from non-regional members. The Board of Governors also elects the bank's President who is the chairperson of the Board of Directors and manages ADB. The president has a term of office lasting five years, and may be reelected. Traditionally, and because Japan is one of the largest shareholders of the bank, the President has always been Japanese. The current President is Haruhiko Kuroda, who succeeded Tadao Chino in 2005. The headquarters of the bank is at 6 ADB Avenue, Mandaluyong City, Metro Manila, Philippines, and it has representative offices around the world. The bank employs approximately 2,400 people, coming from 55 of its 67 member countries, and with more than half of the staff being Filipino.

History/Background:
ADB was conceived amid the postwar rehabilitation and reconstruction of the early 1960s. The vision was of a financial institution that would be Asian in character and foster economic growth and cooperation in the region - then one of the poorest in the world. A resolution passed at the first Ministerial Conference on Asian Economic Cooperation held by the United Nations Economic Commission for Asia and the Far East in 1963 set that vision on the way to becoming reality. The Philippines capital of Manila was chosen to host the new institution - the Asian Development Bank - which opened on 19 December 1966, with 31 members to serve a predominantly agricultural region. Takeshi Watanabe was the first President. For the rest of the 1960s, ADB focused much of its assistance on food production and rural development. The next three years saw ADB's first technical assistance, loans (including a first on concessional terms in 1969) and bond issue (in Germany). 1970s Assistance expanded in the 1970s into education and health, and then to infrastructure and industry. The gradual emergence of Asian economies in the late 1970s spurred demand for better infrastructure to support economic growth. ADB focused on improving roads and providing electricity. When the world suffered its first oil price shock, ADB shifted more of its assistance to support energy projects, especially those promoting the development of domestic energy sources in member countries. Co financing operations began to provide additional resources for ADB projects and programs. 1970 saw ADB's first bond issue in Asia - worth $16.7 million - in Japan. A major landmark was the establishment in 1974 of the Asian Development Fund to provide concessional lending to ADB's poorest members. At the close of the decade, some Asian economies had improved considerably and graduated from ADB's regular assistance.

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1980s It was also becoming clear that the private sector was an important ally in driving growth. ADB thus in the 1980s made its first direct equity investment. ADB also began to use its track record to mobilize additional resources for development from the private sector. In the wake of the second oil crisis, ADB continued its support in the 1980s to infrastructure development, particularly energy projects. ADB also increased its support to social infrastructure, including gender, microfinance, environmental, education, urban planning, and health issues. In 1982, ADB opened its first field office - a Resident Mission in Bangladesh - to bring operations closer to their intended beneficiaries. Later in the decade, ADB approved a policy supporting collaboration with nongovernment organizations to address the basic needs of disadvantaged groups in its developing member countries. 1990s The start of the 1990s saw ADB begin promoting regional cooperation, forging close ties among neighboring countries through an economic cooperation program in the Greater Mekong Sub region. In 1995, ADB became the first multilateral organization to have a Board-approved governance policy to ensure that development assistance fully benefits the poor. Policies on the inspection function, involuntary resettlement, and indigenous peoples - designed to protect the rights of people affected by a project - were also approved. ADB's membership, meanwhile, continued to expand, with the addition of several Central Asian countries following the end of the Cold War. But in mid-1997, a severe financial crisis hit the region, setting back Asia's spectacular economic gains. ADB responded with projects and programs to strengthen financial sectors and create social safety nets for the poor. ADB approved its largest single loan-a $4 billion emergency loan to the Republic of Korea-and established the Asian Currency Crisis Support Facility to accelerate assistance. A milestone came in 1999 when, recognizing that development was still bypassing so many in the region, ADB adopted poverty reduction as its overarching goal. Into the 21st Century The new century brought hope and tragedy, as well as a new focus on helping its developing members achieve the Millennium Development Goals and to enhance development effectiveness. 2003 saw severe acute respiratory syndrome (SARS) hit the region, making it clear that fighting infectious diseases was a public good that required regional cooperation. ADB began providing support at national and regional levels to help countries more effectively respond to HIV/AIDS and the growing threat of avian influenza. ADB had to respond to other unprecedented natural disasters, committing more than $850 million for recovery in areas of India, Indonesia, Maldives, and Sri Lanka hit by the Asian tsunami disaster of December 2004 and a $1 billion line of assistance to help victims of the October 2005 earthquake in Pakistan. As 2007 drew to a close, ADB celebrated 41 years of fruitful cooperation with the governments and peoples of the Asia and Pacific region, looking back on phenomenal economic growth in the region alongside abiding development challenges. In 2008, ADB's Board of Directors approved Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank 2008-2020. It is the paramount ADB-wide strategic framework to guide all its operations to 2020. In 2009, ADB's Board of Governors has agreed to triple ADB's capital
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base from $55 billion to $165 billion, giving it much-needed resources to respond to the global economic crisis and to the longer-term development needs of the Asia and Pacific region. Voting by ADB's 67 member countries on GCI V closed on 29 April 2009, with an overwhelming majority of members endorsing it. The 200% increase is ADB's largest, and the first since ADB increased its capital by 100% in 1994.

Introduction:
Throughout the 1990s, the Asian Development Bank (ADB) has faced numerous challenges and taken on new, complex policy initiatives, culminating in the adoption of the Poverty Reduction Strategy in 1999. All these initiatives have been consolidated in the Long-Term Strategic Framework, 2001-2015 (LTSF), which charts ADBs agenda for the next 15 years. The LTSF recognizes that implementing ADBs strategic agenda requires a review of its organization, business processes and products. On 18 January 2001, the President established a framework for a review of the organization of ADB. The objective of the review is to assess the capacity of the current organization of ADB to effectively and efficiently implement the LTSF, and to recommend changes where necessary. The review has been guided by the President who chairs a steering committee of senior ADB staff. A working group undertook detailed work, with the support of a small secretariat. The review was divided into three phases: phase I undertook a diagnosis of the current organization; phase II developed and analyzed options to address the issues raised by the diagnosis; and phase III, in which the selected option was developed in detail. Previous organizational changes in ADB and the experience of other development agencies were taken into account. Staff was consulted through focus groups and individual meetings, and three external advisers were invited to provide guidance during the early stages of the review. A working paper with proposals for changes in the organization was presented to the Board on 31 July 2001. Following the Board discussion of the working paper, the issues raised have been addressed in a detailed Question and Answer paper, and through a Board seminar. This paper presents the revised recommendations for organizational change.

Our Vision:
An Asia and Pacific Free of Poverty.

Our Mission:
ADB is an international development finance institution whose mission is to help its developing member countries reduce poverty and improve the quality of life of their people.

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Sir Mubashar Ali

Purpose of Establish:
The purpose of the Bank shall be to foster economic growth and co-operation in the region of Asia and the Far East (hereinafter referred to as the "region") and to contribute to the acceleration of the process of economic development of the developing member countries in the region, collectively and individually. Wherever used in this Agreement, the terms "region of Asia and the Far East" and "region" shall comprise the territories of Asia and the Far East included in the Terms of Reference of the United Nations Economic Commission for Asia and the Far East.

Authorized capital:
The authorized capital stock of the Bank shall be one billion dollars ($l, 000,000,000) in terms of United States dollars of the weight and fineness in effect on 31 January 1966. The dollar wherever referred to in this Agreement shall be understood as being a United States dollar of the above value. The authorized capital stock shall be divided into one hundred thousand (100,000) shares having a par value often thousand dollars ($10,000) each, which shall be available for subscription only by members in accordance with the provisions of Article 5 of this Agreement. The original authorized capital stock shall be divided into paid-in shares and callable shares. Shares having an aggregate par value of five hundred million dollars ($500,000,000) shall be paid in shares, and shares having an aggregate par value of five hundred million dollars ($500,000,000) shall be callable shares. The authorized capital stock of the Bank may be increased by the Board of Governors, at such time and under such terms and conditions as it may deem advisable, by a vote of two-thirds of the total number of Governors, representing not less than three-fourths of the total voting power of the members.

Executive Board of Director:

At the Asian Development Bank, each member country is represented by an Executive Director (ED) and Alternate Executive Director (Alt ED). In total, there are 12 EDs and 12 Alternate EDs that form the Bank's Board of Directors. Big shareholder countries like the United States, Japan, and the People's Republic of China have their own Executive Directors. Smaller shareholding countries are clustered together under shared representation. Citizens of ADB member countries should feel free to contact their ED/Alt ED to share their concerns and complaints. The Board should be responsive to and accountable for the citizens of the countries they represent. It is therefore important that more civil society groups approach them and ask them to address their concerns.

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Asian Development Bank 1. Japan: Mr. Masakazu Sakaguchi Executive Director Phone: (632) 632-6095, 632-6014 Fax: (632) 632-6176 Email: [email protected] Location: East, Suite 12, and Room 9724 (Executive Assistant: Josie Coscolluela) 2. United States: Curtis Chin Executive Director Phone: (632) 632-6050/6053 Fax: (632) 636-4003/ 636-2084 Email: [email protected] Location: South, Suite 7, and Room 9444 (Executive Assistant: Marites Perfecto

Sir Mubashar Ali

3. India, Bangladesh, Bhutan, Lao People's Democratic Republic, Tajikistan, Afghanistan: Ashok Lahiri Executive Director Phone: (632) 632-6040 Fax: (632) 632-5780 Email: [email protected] Location: South, Suite 10, and Room 9644 (Executive Assistant: N. Srinivasan) 4. China: Wen Cai Zhang Executive Director Phone: (632) 632-6026, (632) 632 6071 Fax: (632) 632-2052 Email: [email protected] Location: West, Suite 6, Room 9330 (Executive Assistant: Maridel Capulong)

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5. Australia, Azerbaijan, Cambodia, Hong Kong, China, Kiribati, Federated States of Micronesia, Nauru, Solomon Islands, Tuvalu: Phil Bowen Executive Director Phone: (632) 632-6065 Fax: (632) 636-2072 Email: [email protected] Location: West, Suite 4, and Room 9232 (Executive Assistant: Marilou Tabangay) 6. Cook Islands, Indonesia, Fiji Islands, Kyrgyz Republic, New Zealand, Samoa, Tonga Ceppie Kurniadi Sumadilaga Executive Director Phone: (632) 632-6055 Fax: (632) 636-2076 Email: [email protected] Location: West, Suite 5, and Room 9316 (Executive Assistant: Muhammad Jumbeli) 7. Thailand, Malaysia, Myanmar, Nepal, Singapore Md. Saad Hashim Executive Director Phone: (632) 632-6081 Fax: Email: [email protected] Location: South, Suite 8, Room 9464 8. Austria, Germany, Turkey, UK, Luxembourg Sebastian Paust Executive Director Phone: (632) 632-6075 Fax: (632) 636-2056 Email: [email protected] Location: East, Suite 11, and Room 9704 (Administrative Assistant: Bles Maca)

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Asian Development Bank 9. Belgium, France, Italy, Spain, Switzerland Michele Miari Fulcis Executive Director Phone: (632) 632-6035/6032 Fax: (632) 636-2044 Email: [email protected] Location: South, Suite 9, and Room 9624 (Executive Assistant: Gems Gonzalez)

Sir Mubashar Ali

10. Republic of Korea, Papua New Guinea, Sri Lanka, Taipei, Uzbekistan, Vanuatu, Vietnam Kyung Ho-Kim Executive Director Phone: (632) 632-6045/6038 Fax: (632) 632-5599 Email: [email protected] Location: East, Suite 1, and Room 9144 (Executive Assistant: Young-Mi Shin) 11. Kazakhstan, Maldives, Marshall Islands, Mongolia, Pakistan, Philippines Ms. Magpili Jimenez Executive Director Phone: (632) 632-6030/18 Fax: (632) 636-2040 Email:[email protected] Location: North, Suite 2, Room 9152 (Executive Assistant: Marimil Francisco) 12. Finland, Canada, Denmark, Netherlands, Norway, Sweden Howard Brown Executive Director Phone: (632) 632-6060/6023 Fax: (632) 636-2048 Email: [email protected] Location: North, Suite 3, and Room 9224 (Executive Assistant: Zeny Pangan)

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Sir Mubashar Ali

Functions of ADB:
To fulfill its purpose, the Bank shall have the following functions: 1. To promote investment in the region of public and private capital for development purposes. 2. To utilize the resources at its disposal for financing development of the developing member countries in the region, giving priority to those regional, sub-regional as well as national projects and programmers which will contribute most effectively to the harmonious economic growth of the region as a whole, and having special regard to the needs of the smaller or less developed member countries in the region. 3. To meet requests from members in the region to assist them in the coordination of their development policies and plans with a view to achieving better utilization of their resources, making their economies more complementary, and promoting the orderly expansion of their foreign trade, in particular, intra-regional trade. 4. To provide technical assistance for the preparation, financing and execution of development projects and programmers, including the formulation of specific project proposals. 5. To co-operate, in such manner as the Bank may deem appropriate, within the terms of this Agreement, with the United Nations, its organs and subsidiary bodies including, in particular, the Economic Commission for Asia and the Far East, and with public international organizations and other international institutions, as well as national entities whether public or private, which are concerned with the investment of development funds in the region, and to interest such institutions and entities in new opportunities for investment and assistance; and 6. To undertake such other activities and provide such other services as may advance its purpose.

Membership:
1. Membership in the Bank shall be open to: (i) members and associate members of the United Nations Economic Commission for Asia and the Far East; and (ii) other regional countries and no regional developed countries which are members of the United Nations or of any of its specialized agencies. 2. Countries eligible for membership under which do not become members in accordance with Article 64 of this Agreement may be admitted, under such terms and conditions as the Bank may determine, to membership in the Bank upon the affirmative vote of twothirds of the total number of Governors, representing not less than three-fourths of the total voting power of the members. 3. In the case of associate members of the United Nations Economic Commission for Asia and the Far East which are not responsible for the conduct of their international relations,

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application for membership in the Bank shall be presented by the member of the Bank responsible for the international relations of the applicant and accompanied by an undertaking by such member that, until the applicant itself assumes such responsibility, the member shall be responsible for all obligations that may be incurred by the applicant by reason of admission to membership in the Bank and enjoyment of the benefits of such membership. "Country" as used in this Agreement shall include a territory which is an associate member of the United Nations Economic Commission for Asia and the Far East.

ADB Members:
ADB was established in 1966 with 31 members. There are now 67 members, both within and outside the Asian and Pacific region. The year in the list below indicates the year of joining.

Developing Member Countries

Afghanistan (1966) Armenia (2005) Azerbaijan (1999) Bangladesh (1973) Bhutan (1982) Cambodia (1966) China, People's Republic of (1986) Cook Islands (1976) Fiji Islands (1970) Georgia (2007) Hong Kong, China (1969) India (1966) Indonesia (1966) Kazakhstan (1994) Kiribati (1974) Korea, Republic of (1966) Kyrgyz Republic (1994) Lao People's Democratic Republic (1966) Malaysia (1966) Maldives (1978) Marshall Islands, Republic of the (1990) Micronesia, Federated States of (1990) Mongolia (1991) Myanmar (1973) Nauru (1991) Nepal (1966) Pakistan (1966) Palau (2003) Papua New Guinea (1971) Philippines (1966) Samoa (1966) Singapore (1966) Solomon Islands (1973) Sri Lanka (1966) Taipei,China (1966) Tajikistan (1998) Thailand (1966) Timor-Leste (2002) Tonga (1972) Turkmenistan (2000) Tuvalu (1993) Uzbekistan (1995) Vanuatu (1981) Viet Nam, Socialist Republic of (1966)

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Countries within the Asian and Pacific region

Afghanistan (1966) Australia (1966) Azerbaijan (1999) Bangladesh (1973) Bhutan (1982) Brunei Darussalam (2006) Cambodia (1966) China, People's Republic of (1986) Cook Islands (1976) Fiji Islands (1970) Georgia (2007) Hong Kong, China (1969) India (1966) Indonesia (1966) Japan (1966) Kazakhstan (1994) Kiribati (1974) Korea, Republic of (1966) Kyrgyz Republic (1994) Lao People's Democratic Republic (1966) Malaysia (1966) Maldives (1978) Marshall Islands, Republic of the (1990) Micronesia, Federated States of (1990) Mongolia (1991) Myanmar (1973) Nauru (1991) Nepal (1966) New Zealand (1966) Pakistan (1966) Palau (2003) Papua New Guinea (1971) Philippines (1966) Samoa (1966) Singapore (1966) Solomon Islands (1973) Sri Lanka (1966) Tajikistan (1998) Taipei,China (1966) Thailand (1966) Timor-Leste (2002) Tonga (1972) Turkmenistan (2000) Tuvalu (1993) Uzbekistan (1995) Vanuatu (1981) Viet Nam, Socialist Republic of (1966)

Countries outside the Asian and Pacific region

Austria (1966) Belgium (1966) Canada (1966) Denmark (1966) Finland (1966) France (1970) Germany (1966) Ireland (2006) Italy (1966) Luxembourg (2003) The Netherlands (1966) Norway (1966) Portugal (2002) Spain (1986) Sweden (1966) Switzerland (1967) Turkey (1991) United Kingdom (1966) United States (1966)

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Asian Development Bank

Sir Mubashar Ali

Working of ADB:
1.Financial Assistance: The Bank provides financial assistance in the form of grants and loans. It gives three types of loans; project loans, sector loans and programme loans. Project loans are tied to specific projects. Sector loans are given to number of related projects in a given sector. Programme loans cover more than one sector and relate to the implementation of policy or programme for bringing about certain changes. The Bank advances loans out of its Ordinary Funds Reserve and Special Funds Reserve. Ordinary Funds Reserve refers to the Banks ordinary capital resources out of which direct loans are given for the development projects or specific projects. These consist of the financing of foreign exchange or local currency components of the cost of specific projects. The Bank also lends to development banks of member countries for re-lending to specific projects. All direct loans are hard loans repayable over 15 years with a three-year grace period. The interest rate is determined in accordance with ADBs pool based variable lending rate system for US dollar loans. For sector lending, the Bank has established Special Funds such as the Asian Development Fund, Multipurpose Special Fund and Agriculture Special Fund. Loans out of these funds are given for projects of high development priority, for longer periods and at lower rates of interest than for ordinary loans. These are called Soft-loans. The Special Funds are different from the Banks Ordinary Capital resources. The Bank contributes 10 percent of its paid in capital to these funds and the remaining amount comes as donations from its member countries. For lending out of Special Funds, the sanction by two thirds to the total number of Governors of the Bank is required. The ADB grants loans on the basis of certain criteria. At the time of evaluating projects that it proposes to finance, the Bank considers their economic, technical and financial feasibility their effects on the general activity of the concerned country their contribution to the removal of economic bottle necks, and their capacity to repay the loans. In granting loans to the various types of projects, the ADB charter does not impose any restrictions. Even the minimum limits of loans are left open to be decided by the Bank on merits and viability of the projects. 2. Technical Assistance: The ADB also provides technical assistance to member countries out of the Technical Assistance Special Fund. The technical assistance is provided to the members in ECAFE region through their governments, agencies, regional institutions and private firms. It may be in the form of grants or loans or both. The Banks technical assistance has two main objectives. First to prepare and finance and implement specific national and regional development plans and projects, and second to help in working of existing institutions and the creation of new institutions on a national or regional basis in such areas as agriculture, industry, public administration etc. The Bank also provides advisory services under its technical assistance

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programme. It sends its own experts and even hires consultants from other institutions on short and long missions for setting up or reorganising institutions for project implementation in member countries. 3. Survey and Research: One of the functions of ADB is to conduct surveys and research in order to formulate policies for the future and to promote regional economic integration. It brings out an annual report in which it highlights the achievements, prospects and failure relating to the economic development of the member countries of ECAFA region and also suggests measures to solve their problems. 4. Poverty Reduction: One the basis of a report submitted by a Panel of ADB Experts in 1989, the bank has pledged its future direction towards achieving the twin objectives of maximising its impact on developing member countries, achievement of sustainable economic growth and corresponding reductions in poverty in the Asia Pacific region. The Banks greater emphasis in the 1990s was on poverty reduction, social infrastructure and conservation of natural environment. In promoting economic growth, the Bank stresses the importance of increasing productivity. Productivity improvements depend on new investment, the efficiency with which new and existing capitals are used and incorporation of technological changes. The Bank encourages domestic resource mobilization to finance new investments, private sector development and public sector reform to improve efficiency. The Bank targets resources where private sector provision is inadequate and seeks to involve the private sector in services formerly left to the public sector. The ADB now pays more attention to human resource development in order to develop suitably skilled and capable manpower in developing member countries. Progress of Asian Development Bank: The ADB has been playing an important role in providing finance in the form of loans and grants to the member developing countries for their development. The ADB was setup in 1966, for the first time it sanctioned loans amounting to $41.6 million in 1968. Its total assistance to developing member countries has risen to $32 billion in 1991. The Bank has been providing assistance in the fields of agriculture and agro-based industries, energy industry and non-fuel minerals, development banking, education health and population planning.

Asian Development in Pakistan:

ADB's partnership priorities aim to attract investment, create industries and jobs, and improve the quality of life of citizens. Pakistan has received about $ 20 billion in loans since joining ADB in 1966, with more than $15 billion disbursed as of 31 December 2009. In 2009, ADB disbursed $1.10 billion and invested $942.7 million in newly approved assistance, with bulk of these supporting development initiatives in infrastructure, energy, social sectors, governance, and transport in the four provinces and at the national level.

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Pakistans economy faces considerable challenges. Floods in summer 2010 hit agricultural output and damaged transport and communication. Still high inflation, though recently falling, may well accelerate. Fiscal developments are worrisome: the rollback in recent oil price rises, a partial increase in electricity tariffs, delays in carrying out revenue-increasing measures, broad tax exemptions for residents of flood affected areas, and continued heavy fiscal support to stateowned enterprises add to pressures on the fiscal deficit. The current account balance is improving, but capital and financial inflows continue to decline. Still, despite devastation and economic distress, growth will likely stay positive.

ADB to Extend $650 Million to Pakistan to Rebuild Flood Damaged Infrastructure

The Asian Development Bank (ADB) is extending $650 million in emergency assistance loans to help Pakistan rebuild vital infrastructure destroyed during last year's floods. The ADB Board of Directors today approved the loan assistance, along with a supporting technical assistance grant, for the Flood Emergency Reconstruction Project. The loans will be used to reconstruct damaged roads, bridges, irrigation systems, as well as flood and drainage protection works in the worst affected areas. "This assistance comes in direct response to a request from the Government of Pakistan and represents ADB's strong and continued commitment to the people of Pakistan," said Juan Miranda, Director General for ADB's Central and West Asia Department. "The outcome of the project will be the restoration of critical infrastructure to restore livelihoods and access to markets which will support economic and social recovery." The emergency loan will reconstruct over 790 km of national highways and 800 km of provincial roads and bridges to safer, higher standards. It will also upgrade flood protection embankments and other drainage infrastructure in 1.5 million hectares of agricultural land. Along with quickly restoring damaged infrastructure, the project will aim to build back better. The assistance will include $600 million to be taken from Ordinary Capital Resources with a 32-year term, an eight year grace period and interest set in accordance with ADB's LIBOR-based lending facility. Another $50 million equivalent will be tapped from ADB's concessional Asian Development Fund, which will have a repayment term of 40 years, with a 10 year grace period, and interest charges at 1% per annum

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Bahawalpur Rural Development Project:

          Country Loan Number Project Title Borrower Executing Agency Amount of Loan Project Completion Report Number Interest Rate Maturity (number of years) Grace Period (number of years) Pakistan 1467 Bahawalpur Rural Development Project Islamic Republic of Pakistan Planning and Development Department SDR26, 070,000 PCR: PAK 1087 1% per annum 35 10

PROJECT DESCRIPTION: The Bahawalpur Rural Development Project was designed for the now defunct 1 Bahawalpur Division of Punjab Province. At appraisal, this Division was considered one of the least developed divisions in Pakistan, with more than 50% of the population living below the poverty line.2 The Project intended to target poor communities in newly settled areas within the division that were least served by infrastructure services and most isolated from social services. The poverty level in the newly settled areas was much higherapproximately 80%and therefore needed urgent investment. The expected impact of the Project was poverty reduction in the project area. The expected outcome was increased rural incomes, employment, and quality of life through improvements in infrastructure services, agricultural production, and economic/market activities. The project scope, components, and targets in the report and recommendation of the President (RRP) were as follows: 1. Rural roads: improvement of about 100 existing roads totaling an estimated 400 kilometers (km), with emphasis on roads linking agricultural areas with markets. Targets were the widening of about 60 km of the existing road from Ahmad purr East Town to Yaz-man Town from a single-lane to a double-lane paved carriageway, upgrading of 10 existing farm-to-market roads (FMR), and upgrading of 90 existing link roads or tracks; 2. Watercourse improvement: organization of about 480 water users associations (WUA), and improvement of 1,440 km of watercourses with an irrigated area of about 52,800 hectares (ha); 3. Small-scale infrastructure (SSI): implementation of an estimated 450 works 3 identified by the communities; 4. Rural electrification: connection of about 150 selected villages to existing transmission lines; and 5. Institutional strengthening: capacity building and institutional strengthening of government agencies and community organizations of project beneficiaries to (a) prepare

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an investment program based on participatory approaches, (b) implement the Project, (c) update and maintain databases relevant to the monitoring and evaluation (M&E) of the Project, and (d) establish an M&E system.

Sindh Rural Development Project:

             11 June 1997 30 June 2003 74 months Pakistan 1934-PAK (SF) Sindh Rural Development Project Islamic Republic of Pakistan Local Government, Karachi Abadies and Spatial Development Department Amount of Loan SDR37, 885,000 Project Completion Report Number PCR: PAK 0004 Interest Rate 1% per annum grace period and 1.5% Maturity (number of years) 32 Grace Period (number of years) 8 Effective Date Original Closing Date Time Interval Country Loan Number Project Title Borrower Executing Agency

Project description:
The Sindh Rural Development Project was designed to address diverse and interdependent factors constraining the ability of rural households in Sindh Province to make significant improvements in their livelihoods. At the time of project formulation, overall poverty levels in Sindh were estimated at 37%, with 20% of the urban and 53% of the rural population living in poverty. Adult literacy rates in the four project districts were 10.5% for women and 34.7% for men. Rural link roads were in urgent need of upgrading and community infrastructure was deficient. Only 10.5% of the rural population had access to safe drinking water and sanitation. A majority of rural households in the four districts did not own agricultural or homestead land. A large proportion (44%) of all private farms were tenant farms; fewer than 20% of rural landowners were large landlords (with at least 10 hectares), but these large landlords owned over 60% of the private farms.1 Tenants had a high risk of incurring debts with the landlord that they would be unable to repay at the end of a production cycle.2 Lack of access to extension services, appropriate technologies, and formal credit were additional factors limiting the ability of tenants to improve their livelihoods. The major characteristics of rural poverty stemmed from the complex social, cultural, legal, and political environment, with the feudal relationship between landlords, tenants, and landless laborers at its core. A sharecropping tenancy system prevailed in the canal-irrigated areas of the

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Sir Mubashar Ali

project districts, and changes in the tenancy system over time worked to the disadvantage of the haris (tenants and sharecropper). The haris were becoming "bonded", in the sense that their right to move and seek employment freely was restricted until their debts were settled. Low levels of compliance hampered the effectiveness of the Sindh Tenancy Act (STA), 1950, which was enacted to regulate the tenancy arrangements and protect the rights of the cultivators. The project was designed to reduce poverty in the canal-irrigated areas of Badin, Mirpurkhas, Sanghar, and Thatta districts in southern Sindh by increasing empowerment, improving governance and access of the rural poor to public services, transferring technology for improved livelihoods, and providing essential infrastructure. The objective of the project was to improve the social status and economic wellbeing of the poorest groups in the project area with a focus on the following target groups: (i) tenants and agricultural laborers, (ii) marginal owners-cumtenants, and (iii) small village-based artisans. The project focused in particular on women as the most disadvantaged among the target groups. The project framework included the goal of reduced poverty in selected districts of southern Sindh; the impact was improved social status and increased income of the rural poor in the project area. It included four components in addition to project management support: (I) improved governance and legal support; (ii) enhanced social processes at the community level; (iii) improved rural livelihoods; (IV) up graded rural infrastructure and settlement improvement.

Restructuring of the Technical Education and Vocational Training System Project (North-West Frontier Province)
      Effective Date Original Closing Date Time Interval Country Loan Number Project Title 29 September 2005 30 April 2011 67 months Pakistan 2135 Restructuring of the Technical Education and Vocational Training System Project (North-West Frontier Province) Islamic Republic of Pakistan Department of Industries SDR 7,339,000 ($11 million equivalent) PCR: PAK 1199 1.0% per year during the grace period and 1.5% 32 years 8 years

   

Borrower Executing Agency Amount of Loan Project Completion Report Loan Number  Interest Rate  Maturity  Grace Period

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Project description:
On 14 December 2004, the Asian Development Bank (ADB) approved the Restructuring of the Technical Education and Vocational Training System Project (North-West Frontier Province) loan for $11 million equivalent, funded from its Special Funds resources (Asian Development Fund). The goal of the project was to help the government reduce poverty by enhancing competitiveness of technical education and vocational training (TEVT) and the employability of graduates in line with market needs. The projects specific objectives were to (I) restructure and strengthen institutional capacity, efficiency, and autonomy of TEVT institutions; (ii) Improve quality and relevance of TEVT programs; and (iii) Enhance access to quality TEVT, particularly among the rural poor and women. The project completion report provides an overview of the role the project played in the improvement of the competitiveness of the TEVT system in the province of KHYBER PAKTHUNKHWA (formerly North-West Frontier Province [NWFP]).

Mega City Development Project:

          Effective Date Original Closing Date Time Interval Country Loan Number Project Title Borrower Executing Agency Amount of Loan Project Completion Report Loan Number  Interest Rate  Maturity  Grace Period 16 September 2006 6 November 2008 25.7 months Pakistan 2229-PAK Mega City Development Project Islamic Republic of Pakistan The Finance Department SDR7,010,000 PCR:PAK 1230 0% 32 years 8 years

Project description:
1. In its medium-term development framework prepared during 2005/2006, the Government of Pakistan made a commitment to enhance the competitiveness of and quality of life in its large cities. The government constituted a high-level committee led by the Planning Commission for coordinated development of its megacities, starting with Karachi as a central anchor and driver

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of growth in its long-term economic development strategy. In this context, the government requested Asian Development Bank (ADB) assistance to address the megacity challenges facing Pakistan. The immense size of Karachi, the magnitude of its investment requirements, and the scale of the needs for urban policy and institutional reforms suggested that a traditional approach of one-off projects will not work. A clear need was felt for a series of sequenced and integrated interventions whose cumulative effect will act as a catalyst to speed up the development process in Karachi. The expected impact of the technical assistance (TA) loan was larger and sustained contribution of Karachi to national development and competitiveness, and improved quality of life for its residents, including the poor. The anticipated outcomes were (i) improved city planning, management, and financing; (ii) improved and expanded urban infrastructure and services; and (iii) sustainable and efficient financing of megacity urban infrastructure and services. 2. Previous external assistance to Karachi city has been piecemeal and has not been based on an integrated approach to improve urban infrastructure and services on a sustainable basis. The purpose of the TA loan was to address the megacity development needs through a long-term and holistic approach by (i) Building capacities within the city district government of Karachi (CDGK) and the various tehsil municipal authorities (TMAs) for effective city planning and management, (ii) Adopting and implementing commercial principles in the provision of infrastructure and services, (iii) Supporting the preparation of bankable projects for megacity development that might subsequently be funded by ADB through its loans to Karachi city, and (iv) Promoting reforms for sustainable financing. The TA loan was intended to represent the first intervention of long-term assistance from ADB, and it was to establish the required foundation for effectively utilizing and sustaining future infrastructure investments in the megacity. The TA loan specifically aimed to establish a dedicated project preparation facility, and a specialized financing vehicle (SFV) to catalyze infrastructure investments. 3: The TA loan was viewed as a key as well as a general intervention as part of the long-term partnership between ADB and Pakistan for sustainable urban development of Karachi in the specific sub-sectors (water supply and sanitation, waste management, integrated, multimodal transportation).

ADB to provide $35m for 30 MW hydropower projects in GB

The Asian Development Bank (ADB) will provide an assistance of $35 million for exploring energy potential of Gilgit-Baltistan. "I am pleased to note the ADB has a planned assistance of $35 million for development of two mini hydropower projects included in its 2011 assistance pipeline for Pakistan," the bank's country director, Pakistan Resident Mission Rune Stroem said while addressing at a launching ceremony of economic report on GB on Thursday. He said these energy-oriented initiatives included 26 MW Shigar thang project and 4 MW projects of Chilas.

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He said the ADB was the largest development partner of the government of Pakistan as reflective in the Partnership Strategy-2009-13 to provide assistance in different areas including infrastructure, water and transport besides other sectors. Stressing collective efforts for GB's uplift, the dignitary said" Gilgit-Baltistan is important not just to elevate living standards and create economic opportunities for its local people. It is equally critical in furthering Pakistan's own economic prospects and ensuring water and energy security for the country." Highlighting the region's economic potential, the country director said the Gilgit-Baltistan had important location which was the gateway to Pakistan's regional cooperation and trade route with China and eventually with the Central Asian countries. He underlined the need for working out a policy taking all stakeholders on board to ensure more investments for the GB as it could transform into an attractive transit hub, catalyzing greater regional trade cooperation and economic integration. He also appreciated the government for its measures for utilizing the GB natural resources. He said the major water storage and hydel generation projects of Bhasha and Bunji Dams demonstrated and recognized potential of power generation of the areas, which would go a long way in tide over the country's power crisis. He said Pakistan's economic and energy security in this way was interconnected with developing GB's natural resource base, protecting its ecology and environment, upgrading its infrastructure base, raising the level and quality of its human resources, and creating livelihood and employment opportunities for its people. The GB report, while recognizing the recent transformation in the GB area, highlights several challenges, which are hampering its economic growth, obstructing its social development as well as affecting the employment generation.

Recent ADB projects/loans in power sector:

ADB Project Assistan ce ($Millio n) Type of Project Type of ADB Investme nt Date of Approv al Date of Close

WAPDA ELEVENTH POWER PROJECT WAPDA TWELFTH POWER (SECTOR) PROJECT WAPDA TWELFTH POWER (SECTOR) PROJECT

215.0

Project

Loan

Dec-90

Aug97 Nov00 Nov00

125.0

Sector

Loan

Dec-91

91.5

Sector

Loan

Dec-91

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Asian Development Bank KESC SIXTH POWER (SECTOR) PROJECT KESC SIXTH POWER (SECTOR) PROJECT GHAZI BAROTHA HYDROPOWER PROJECT FAUJI KABIRWALA COMPANY LIMITED (FKPC) 100.0 Sector Loan

Sir Mubashar Ali Sep-94 Oct-03

69.3

Sector

Loan

Sep-94

Oct-03

300.0

Project

Loan

Jan-96

Oct-03

5.3

Private Sector Operation s Private Sector Operation s Program

Equity

Apr-96

FAUJI KABIRWALA COMPANY LIMITED (FKPC)

97.0

Loan

Apr-96

ENERGY SECTOR RESTRUCTURING PROGRAM ENERGY SECTOR RESTRUCTURING PROGRAM ENERGY SECTOR RESTRUCTURING SUPPORT TA LOAN (TA = Technical Assistance) POWER TRANSMISSION ENHANCEMENT

300.0

Loan

Dec-00

39.1

Program

Loan

Dec-00

3.9

TA

Loan

Dec-00

PPTA (Project Preparatio n TA)

Jun-05

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Sir Mubashar Ali

Projects Recently Updated Projects

1. Second Community Water Transport Sector Project Last Update: 23 March 2011 2. Increasing Road Maintenance Financing Last Update: 2 March 2011 3. Port Moresby Power Grid Development Project Last Update: 28 February 2011 4. Bridge Replacement for Improved Rural Access Last Update: 28 February 2011 5. Town Electrification Investment Program Last Update: 25 February 2011 6. HIV/AIDs Last Update: 24 February 2011 7. Health Sector Last Update: 24 February 2011 8. Highlands Highway/Feeder Roads Upgrading Last Update: 24 February 2011 9. Financial Management Last Update: 16 February 2011 10. Microfinance Expansion Project Last Update: 5 November 2010 11. DIGICEL MOBILE TELECOMMUNICATION EXPANSION PROJECT Last Update: 19 October 2010 12. Road Upgrading and Maintenance Project Last Update: 20 July 2010

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Sir Mubashar Ali

13. National Airport Development Sector Project Last Update: 16 July 2010 14. Lea Port Development Project Last Update: 8 July 2010

15. Infrastructure Sector Development Implementation Support Last Update: 2 July 2010 16. Maritime Infrastructure Last Update: 24 June 2010 17. Microfinance Last Update: 22 April 2010 18. Policies for Private Sector Development Last Update: 18 January 2010 19. Pilot Border Trade and Investment Development Project Last Update: 19 August 2009 20. Power Sector Last Update: 22 July 2009 21. Support for Surveys Last Update: 17 July 2009 22. Statistical Systems Last Update: 17 July 2009 23. Public Expenditure Review and Rationalization Last Update: 19 January 2009 24. PNG Gas Project Last Update: 19 January 2009 25. Improving Provincial Agriculture Support Services

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Asian Development Bank Last Update: 16 January 2009

Sir Mubashar Ali

26. Financial Management Last Update: 20 May 2008 27. Replacement and Restoration of Navigation Aids Last Update: 17 April 2008 28. Establishment of HIV/AIDS Outpatient Department Last Update: 25 February 2008 29. Literacy is for Everyone Last Update: 19 February 2008 30. Nucleus Enterprise Based Agro-Industry Development Last Update: 9 January 2007

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