Tag: Asian Development Bank (ADB)

ADB sanctions $295 million loan for Bihar state highways upgradation

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The Indian government has signed an agreement with the The Asian Development Bank (ADB) for a $295 million loan to upgrade about 265 km of state highways in Bihar. The state highways would be upgraded with climate and disaster resilient design, and road safety elements.

Additional Secretary, Department of Economic Affairs, Vumlunmang Vualnam and Takeo Konishi, Country Director for ADB in India, were the two signatories for the Indian government and ADB, respectively.

This project would support Bihar government to upgrade all state highways to standard two-lane widths and improve road safety. The state government aims to increase connectivity in some of Bihar’s poorest rural districts and promote access to health and education facilities.

“Besides upgrading roads, the ADB project builds on earlier efforts to enhance the state road agency’s management and implementation capacity and will strengthen the systems for planning, road safety, and sustainability,” Konishi said.

To strengthen the state roads, Bihar State Road Development Corporation Limited (BSRDCL) will develop a road asset management system which will include climate change and disaster risk information.

The BSRDCL will also establish research laboratories in the Bihar Road Research Institute to enable investigation of materials, including reusable, and sustainable materials, to alleviate the effects of climate change. The research laboratories will also conduct studies on congestion management and climate adaptation, and create guidelines for gender-inclusive practices in road safety measures.

The project will also provide employment to female workers on construction sites, hence encouraging women’s participation. The project also promises to provide awareness on livelihood, road safety, health, hygiene, abuse and harassment to women in the project areas.

The project will also encourage women’s participation by providing employment to female workers in construction works. Trainings in livelihood as well as awareness on road safety, health, hygiene, abuse and harassment will be offered to women from communities in the project areas.

Since 2008, ADB has provided five loans totalling $1.63 billion to Bihar, for upgradation of around 1,696 km of state highways and construction of a new bridge over the Ganga River.

ALSO READ: Bihar overtakes Tamil Nadu to become India’s largest MFI market

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asian Development Bank slashes India’s economic growth to 6.4% in FY24

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The Manila-based Asian Development Bank on Tuesday said that India’s economic growth is expected to moderate to 6.4 percent in the current financial year. The bank, however, in December, last year, predicted 7.2 percent growth in FY23-24. 

As per the bank, it slashed the estimates of country’s growth to 6.4 percent due to tight monetary conditions and elevated oil prices as compared to 6.8 percent expansion for the financial year ended March 2023. “The growth moderation for India in FY24 is premised on an ongoing global economic slowdown, tight monetary conditions, and elevated oil prices,” the report said.

ADB, however, said that it expects the country will witness the economic growth of 6.7 percent in FY25 driven by private consumption and private investment on the back of government policies to improve transport infrastructure, logistics, and the business ecosystem.

The projections are part of the latest edition of ADB’s flagship economic publication, Asian Development Outlook (ADO) April 2023.

Also Read: Anantha Nageshwaran says India will see 6.5% average GDP growth

“FY25 is expected to see faster growth in investment, thanks to supportive government policies and sound macroeconomic fundamentals, lower non-performing loans in banks, and significant corporate deleveraging that will enhance bank lending,” the report added.

ADB Country Director for India, Takeo Konishi, said that despite the global slowdown, India’s economic growth rate is stronger than many peer economies and reflects relatively robust domestic consumption and lesser dependence on global demand.

“The Government of India’s strong infrastructure push under Prime Minister’s Gati Shakti (National Master Plan for Multimodal Connectivity) initiative, logistics development, and industrial corridor development will contribute significantly to raising industrial competitiveness and boosting future growth,” he said.

Improving labour market conditions and consumer confidence will drive growth in private consumption, ADB said, adding that the central government’s commitment to significantly increase capital expenditure in FY24 despite targeting a lower fiscal deficit of 5.9 percent of GDP will also spur demand.

Helped by recovery in tourism and other contact services, the services sector will grow strongly in FY24 and FY25 as the impact of COVID-19 wanes, it said.

However, ADB noted that manufacturing growth in FY24 is expected to be tamped down by a weak global demand but it will likely improve in FY25.

Recent announcements to boost agricultural productivity such as setting up digital services for crop planning and support for agriculture startups will be important in sustaining agriculture growth in the medium term.

“Inflation will likely moderate to 5 percent in 2023-24, assuming moderation in oil and food prices, and slow further to 4.5 percent in 2024-25 as inflationary pressures subside,” it said.

In tandem, ADB said that monetary policy in FY24 is expected to be tighter as core inflation persists while becoming more accommodative in FY25.

The current account deficit is projected to decline to 2.2 per cent of GDP in FY24 and 1.9 percent in FY25.

Growth in goods exports is forecast to moderate in FY24 before improving in 2024 as production-linked incentive schemes and efforts to improve the business environment such as streamlined labour regulations, improved performance in electronics and other areas of manufacturing growth.

Services exports growth has been robust and is expected to continue to strengthen India’s overall balance of payments position. However, geopolitical tensions and weather-related shocks are key risks to India’s economic outlook, it said.

Also Read: World Bank lowers India’s FY23-24 GDP growth forecast to 6.3% from 6.6% earlier

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ADB hints at providing $2.5 billion loan to cash-strapped Pakistan

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The Asian Development Bank (ADB) has indicated that it will provide $2.5 billion in additional loans to Pakistan, including $1.5 billion before the end of this year, to help the cash-starved country which is in dire need of foreign assistance due to its depleting forex reserves and growing repayments and import financing requirements.

The Ministry of Finance said on Thursday after a meeting between Minister of State for Finance and Revenue Aisha Ghous Pasha and Country Director of the ADB Yong Ye, The Express Tribune newspaper reported on Friday.

The ADB indicated the additional support of $2.5 billion for the next fiscal year, from which $1.5 billion to $2 billion can be available in the ongoing calendar year, according to the finance ministry.

Also read: Pakistan’s foreign exchange reserves plunge to lowest level since December 2019

The finance ministry sources said the ADB indicated that it could provide $1.5 billion under the Counter-Cyclical Finance Facility and another roughly $400 million under the energy sector policy loans, the report said.

However, it will be an uphill task to secure the $1.5 billion facility on priority due to the requirements and a slow-moving bureaucracy in the Ministry of Economic Affairs that has so far failed to even write a formal letter to the ADB for availing the loan, it said.

The Economic Affairs Division (EAD) secretary has not been able to focus on the disbursements of foreign loans that are now falling behind the goals for the third and the fourth quarters, it said.

The indicated $2.5 billion additional financings are said to be over and above the regular $2 billion annual envelopes in the shape of policy and project loans. Cash-strapped Pakistan is currently in dire need of foreign loans due to depleting foreign exchange reserves coupled with growing repayments and import financing requirements.

The rupee-dollar parity slipped to the lowest ever level of Rs 191.77 to a dollar on Thursday amid uncertainty in the market over the fate of the IMF programme, the report said.

In order to get the ADB’s additional financing, Pakistan has to meet many requirements for qualifying for the facility that has been designed to help the member countries to cope with the challenges posed by the COVID-19 pandemic, it said.

Also read: Pakistan Prime Minister Sharif says country is ‘drowning’ in debt

The ADB board already approved the Counter Cyclical Finance Facility on May 3 and Pakistan’s share includes a mix of both the concessional and commercial facility, the report said.

However, the $1.5 billion loan approval by the ADB board will require that Pakistan’s debt burden is sustainable and it is not following imprudent fiscal policies the two requirements that will need hectic efforts to meet, it said.

Sources said the negative impact of the Russia-Ukraine war on Pakistan’s economy will also be a factor in deciding the loan approval. The government will also require submitting a sound macroeconomic plan to the ADB board, which means a departure from the existing expansionary fiscal policies and withdrawal of the fuel subsidies.

The government will also have to secure an assessment letter from the IMF, which should validate that the country’s economic policies were on the right track. However, it will not be an easy task to get an assessment letter from the IMF until Islamabad addresses the outstanding issues like the withdrawal of fuel subsidies and the tax amnesty scheme.

Pakistan and the IMF are scheduled to hold policy-level talks for the revival of the IMF programme in Doha on May 18. Due to the deteriorating external sector situation and the resultant reduction in the foreign exchange reserves, China has delayed the processing of USD 2.3 billion in commercial loans and has placed a condition that Islamabad cannot effectively utilise the money.

Also read: Pakistan PM requests China’s support in reviving Karachi Circular Railway

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ADB scales down India growth estimate further to 9.7% in FY22

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The Asian Development Bank for the second time in three months has scaled down India’s growth estimate for the fiscal year ending March 2022 due to supply chain issue of industries. The Manila-based multilateral development bank pegged India’s growth estimate at 9.7 percent for the current fiscal year in its latest supplement. The ADB had projected a growth rate of 10 per cent for FY22 in its September supplement.

In a supplement to the Asian Development Outlook (ADO) 2021, it said South Asia is forecast to grow at 8.6 per cent in 2021, compared with the September’s forecast of 8.8 per cent. “India, South Asia’s largest economy, is now expected to grow 9.7 per cent in fiscal year (FY) 2021, which ends 31 March 2022. The reduction of 0.3 percentage points comes amid supply chain issues that are affecting industry. India’s outlook for FY2022 is maintained at 7.5 per cent, as domestic demand is expected to normalize,” as per the ADB supplement.

In September, it had revised down India’s economic growth forecast for the current fiscal to 10 per cent, from 11 per cent predicted earlier, citing the adverse impact of the second wave of the pandemic.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ADB approves $1.5 billion loan to India for COVID-19 vaccines

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The Asian Development Bank (ADB) on Thursday approved a $1.5 billion loan to India to purchase safe and effective vaccines for COVID-19.

The Asian Infrastructure Investment Bank (AIIB) is expected to co-finance an additional $500 million for the project, ADB said in a statement.

The loans will fund at least 667 million COVID-19 vaccine doses for an estimated 317 million people and will support India’s National Deployment and Vaccination Plan, which aims to fully vaccinate 944.7 million people aged 18 years and above, accounting for 68.9 percent of the population, it said.

Priority groups for the vaccination include healthcare and frontline workers, senior citizens, and those aged 45–59 years with comorbidities.

Also Read: Children at lower risk from COVID-19, vaccines should go to poor, says WHO

“ADB’s support will help the government protect its citizens from further transmission of this disease and save lives,” said ADB President Masatsugu Asakawa.

“Vaccines are critical in overcoming the intertwined health, social, and economic impacts of the pandemic, including rejuvenating economic activities, sustaining health services, restoration of livelihoods, and reopening of educational institutions, with renewed focus on social and human development priorities.”

ADB said a technical assistance grant of $4 million, which includes $2 million support from ADB’s Japan Fund for Poverty Reduction, is helping strengthen India’s vaccine delivery system.

This includes improving the monitoring of biomedical waste management, risk communication, and community engagement to raise awareness on COVID-19-appropriate behavior and the benefits of vaccination, with a focus on women and vulnerable groups.

This support is being provided in collaboration with the World Health Organization (WHO) and the United Nations Children’s Fund (UNICEF), the bank said.

The project is financed through ADB’s $9 billion Asia Pacific Vaccine Access Facility launched in December 2020 to provide rapid and equitable vaccine-related support to developing member countries.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ADB commits record $3.92 billion loan to India in 2020

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The Asian Development Bank on Friday said it has committed a record USD 3.92 billion in sovereign loans for 13 projects to India in 2020, including USD 1.8 billion in COVID-19 related projects to support the government’s pandemic response.

As part of the pandemic support to India, the Manila-headquartered multilateral agency said it has provided emergency assistance to contain the disease and establish social protection measures for relief to the poor and other vulnerable groups. ADB also approved financing to help the government improve equitable access to comprehensive primary health care in urban areas. This is ADB’s highest-ever annual lending commitment to India since the start of its lending operations in 1986, it said, adding it has also committed USD 356.1 million through its non-sovereign operations to India, including three COVID-19 support projects.

Going forward, ADB stands ready to provide additional resources to address India’s many COVID-19 related challenges, including funds to expedite the country’s ongoing vaccination programme and build the health system’s resilience against future shocks, with supplementary support to protect small businesses, and underpin education and social protection, said Takeo Konishi,

Country Director for ADB in India. It further said throughout 2020, ADB continued its regular assistance to energy, transport, urban development, and public sector management in India. As per the ADB’s release, among the new projects committed in 2020 include USD 500 million to build a high-speed 82-kilometre Delhi-Meerut Regional Rapid Transit system corridor; energy sector loans to strengthen distribution network in Maharashtra, Karnataka, Uttar Pradesh, and Meghalaya and to build a 120-megawatt hydroelectric power plant in Assam. In the urban sector,

ADB approved loans for sustainable urban development in secondary and smaller towns in Rajasthan and Madhya Pradesh. ADB also granted funds to support the West Bengal government’s fiscal consolidation programme. Through its project readiness financing, ADB committed funds to provide Tripura and Himachal Pradesh with capacity development support for planning and designing.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ADB launches $9 bn COVID-19 vaccine initiative for its developing member economies

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The Asian Development Bank (ADB) on Friday said it has launched a USD 9 billion vaccine initiative that will offer support to its developing member economies to procure and deliver COVID-19 vaccines. ADB has launched a USD 9 billion vaccine initiative the Asia Pacific Vaccine Access Facility (APVAX) offering rapid and equitable support to its developing members as they procure and deliver effective and safe coronavirus disease (COVID-19) vaccines, it said in a release.

”As ADB’s developing members prepare to vaccinate their people as soon as possible, they need financing to procure vaccines as well as appropriate plans and knowledge to be able to safely, equitably, and efficiently manage the vaccination process,” ADB President Masatsugu Asakawa said. He further noted that ”APVAX will play a critical role in helping our developing members meet these challenges, overcome the pandemic, and focus on economic recovery.” ADB said more than 14.3 million positive cases have been identified in Asia and the Pacific, causing more than 2,00,000 deaths.

Also Read: UN chief warns `vaccine nationalism’ is moving at full speed

As the pandemic persists, economic growth in developing Asia is projected to contract by 0.4 percent in 2020 the first regional gross domestic product contraction since the early 1960s, it added.

Click here: For the latest news and updates on COVID-19

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ADB approves $190 million loan for upgrade of Bengaluru power distribution system

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Asian Development Bank (ADB) has approved a USD 190 million (over Rs 1,400 crore) loan for modernisation and upgradation of power distribution system in Karnataka’s capital city of Bengaluru.

“ADB has approved a combined sovereign and non-sovereign loan of USD 190 million to modernize and upgrade the power distribution system in Bengaluru city in the state of Karnataka, India,” ADB said in a release on Friday.

The funding for the Bengaluru Smart Energy Efficient Power Distribution Project by ADB includes a USD 100 million sovereign loan and a USD 90 million without sovereign guarantee loan to Bangalore Electricity Supply Company Limited (BESCOM). BESCOM is one of five state-owned distribution utilities and the largest in Karnataka.

“Reliable and sustainable electricity distribution and service is an important aspect of India’s growth and development,” said ADB Principal Energy Specialist for South Asia Teruhisa Oi. “We believe that this project will improve the efficient distribution and delivery of electricity supply to residents of Bengaluru and support the Government of India’s strategy of building an energy-efficient distribution network,” the official said. While ADB has supported several power distribution projects in India since 2010, this combination of sovereign and nonsovereign loans is being deployed on a pilot basis for the first time, said the Manila-headquartered multi-lateral funding agency.

“This features an innovative financing arrangement, the first of its kind for ADB, combining public and private sector loans to a state government-owned enterprise. This financing structure reduces BESCOM’s sovereign exposure while helping it raise resources for capital expenditure using a market-based approach,” said Mayank Choudhary, Principal Investment Specialist at ADB’s Private Sector Operations Department. ADB said the project will convert 7,200 kilometers (km) of overhead distribution lines to underground cables with parallel installation of 2,800 km of fiber optic communication cables. Moving the distribution lines underground protects them from natural hazards and interference, reducing technical and commercial losses by about 30 per cent. The fiber optic cables will be used for smart metering systems, distribution automation system (DAS) in the distribution grid, and other communication networks. The project will install 1,700 automated ring main units adapted with a DAS to monitor and control the distribution line switchgears from the control center, it said. “The loan will strengthen the capacity of BESCOM in operation and maintenance, environment and social safeguards, financial management and commercial financing, and corporate gender equality and social inclusion. Improved financial management capability will help BESCOM access the domestic and international commercial financing market,” ADB said further.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asia needs to leverage stronger regional cooperation to boost COVID-19 recovery: ADB

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Stronger regional cooperation strategies including in health, trade, finance, and disaster risk can help governments in Asia and the Pacific accelerate economic growth and a robust recovery from the 63COVID-19 pandemic, according to a new book released by the Asian Development Bank (ADB).

”Regional cooperation and integration has been an effective driver for strong economic growth and a sharp reduction in poverty,” ADB vice-president for knowledge management and sustainable development Bambang Susantono said in a statement.

Further, ”the COVID-19 pandemic is a wake-up call to all of us that our usual assumptions and approaches to regional cooperation and integration have to change in ways that promote resilience and sustainability,” it noted. Susantono highlighted the need for Asia and the Pacific to reassess its regional cooperation and integration strategies and pathways.

This new book, Future of Regional Cooperation in Asia and the Pacific, provides insights and a foundation for deeper and more effective regional cooperation for a world reshaped by the pandemic. The book provides a critical examination of regional cooperation initiatives and explores opportunities for economies in the region to work together to recover and rebuild from the COVID-19 pandemic.

Moreover, the book examines approaches to strengthen regional trade and investment; improve intraregional infrastructure and connectivity; reduce financial risk; coordinate health systems and approaches; and enhance coordination on cross-border issues such as climate change and ocean health. Enhanced regional cooperation can, for example, help expand trade and investment by opening avenues and opportunities for small and medium-sized enterprises (SMEs) to participate more actively in local and global supply chains through better transportation and connectivity, it said.

Innovative financing, which accepts collateral other than land, can empower women-led businesses, which currently suffer from approximately 2.5 times less access to credit than male-led businesses, it noted. Noting that Asia and the Pacific remain as a hotspot for emerging diseases, natural disasters, and climate hazards, the book has recommended a range of multilateral interventions including strengthening national health systems to ensure regional health security; building the capacity of personal protective equipment producers; and providing knowledge support and financing for ocean health initiatives to build resilience.

Regional cooperation and integration is among the operational priorities in ADB’s Strategy 2030 and focuses on four pillars: infrastructure connectivity; regional public goods; regional trade and investment; and financial cooperation. Established in 1966, it is owned by 68 members49 from the region.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ADB approves USD 3 million grant to India to combat COVID-19

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Multilateral funding agency ADB on Wednesday said it has approved USD 3 million (about Rs 22 crore) grant to India from its Asia Pacific Disaster Response Fund to further support the government’s emergency response to COVID-19 pandemic.

The grant, which is financed by the Japanese government, will be used to procure thermal scanners and essential commodities to strengthen the India’s COVID-19 response, Asian Development Bank (ADB) said in a statement. “The new grant complements ADB’s ongoing support to the Government of India in strengthening its COVID-19 response. This support will enhance disease surveillance and help in early detection, contact tracing, and treatment. This will be further supplemented by other public health measures,” it said.

On April 28, ADB approved USD 1.5 billion COVID-19 Active Response and Expenditure Support (CARES) programme to support India in its immediate pandemic response efforts, including disease containment and prevention, as well as social protection measures for the poor and economically vulnerable, particularly women and disadvantaged groups.

The CARES programme is funded through the COVID-19 pandemic response option (CPRO) under ADB’s Counter-cyclical Support Facility. CPRO was established as part of ADB’s USD 20 billion expanded assistance for developing member countries’ pandemic response, which was announced on April 13.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow