Asian Development Bank (ADB)
Why in news?
The Government of India and the Asian Development Bank (ADB) recently signed a $126.42 million loan agreement aimed at promoting sustainable, climate-resilient tourism development in Uttarakhand, specifically focusing on the Tehri Lake region in Tehri Garhwal district.
About Asian Development Bank (ADB)
- The Asian Development Bank (ADB) is a regional multilateral development bank founded in 1966 with its headquarters in Manila, Philippines.
- It aims to promote social and economic development in Asia and the Pacific by providing loans, technical assistance, grants, and equity investments to its member countries.
- Members: 69 members including 50 from the Asia-Pacific region.
- Funding: Provides both public (sovereign) and private sector financing. It raises capital via bond markets, member contributions, and loan repayments.
- Sectors Supported: Agriculture, education, energy, environment, healthcare, finance, information technology, and infrastructure.
- Development Areas: Works on education, health, transport, energy, finance, climate change, and strives to meet Sustainable Development Goals (SDGs).
- Governance: Managed by a Board of Governors (one representative per member country) and a Board of Directors.
Notable member and stakeholders:
- 50 regional members from Asia and the Pacific, including countries such as India, China, Japan, South Korea, Australia, Bangladesh, Bhutan, Nepal, Pakistan, Sri Lanka, and many others.
- 19 non-regional members from outside Asia-Pacific, including countries from Europe, North America, and elsewhere such as the United States, Canada, United Kingdom, France, Germany, and Israel (which recently became the 69th member).
- Major shareholders with significant voting rights are Japan and the United States (each holding 15.6%), followed by China (6.4%), India (6.3%), and Australia (5.8%).
Key Aspects of ADB's Engagement with India
- Project Financing: In 2024, ADB committed $4.25 billion for 21 development projects across sectors like transport, energy, water and urban services, finance, agriculture.
- Infrastructure and Urban Development: Projects include highways, railways, ports, and urban environmental management such as water supply, sanitation, sewerage, and solid waste management.
- Industrial Corridors: ADB supports India's industrial corridors, such as the Vizag-Chennai Industrial Corridor, providing funding and conceptual development planning.
- Climate and Green Growth: ADB focuses on climate resilience and green growth, funding renewable energy projects and coastal protection initiatives.
- Recent Program: The Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) program aims to reform and improve India's logistics sector with a $350 million policy-based loan, focusing on efficient, low-emission logistics infrastructure and policy frameworks to boost manufacturing competitiveness and supply chain resilience.
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