The Board of Governors of the Asian Development Bank (ADB) has greenlit a historic $1.42 billion net income allocation from its ordinary capital resources, marking the highest allocation in the bank’s history.
The decision was announced alongside the approval of the bank’s 2023 financial statements, as reported by UNB.
The allocated net income for 2023 will be distributed across various avenues:
- $1.005 billion will be channeled to ADB’s ordinary reserve to bolster the bank’s capital growth and provide a solid earnings base to generate income.
- $292.5 million will be directed to the Asian Development Fund, which extends grants to ADB’s poorest and most vulnerable member countries, supporting their developmental endeavors.
- $110 million is earmarked for the Technical Assistance Special Fund, which provides technical assistance grants to borrowing members, aids in project preparation, and conducts technical or policy studies.
- $15 million will be allocated to the Asian Pacific Disaster Response Fund, facilitating immediate post-disaster grants to member countries to restore lifesaving services.
The term ‘allocable net income’ refers to the net income after the appropriation of guarantee fees to the special reserve and certain adjustments reported in the cumulative revaluation adjustments account.
On May 3, donors and the ADB agreed to replenish $5 billion for ADB’s Asian Development Fund (ADF) 14 and Technical Assistance Special Fund (TASF) 8. This commitment was formalized during the ADB’s 57th Annual Meeting.
The ADF is the primary source of grants for operations in the ADB’s poorest and most vulnerable member countries, replenished every four years.
ADF 14, spanning from 2025 to 2028, marks the 13th replenishment since its establishment. With a substantial 22% increase compared to its predecessor, ADF 13, it now provides eligible ADB members with the largest-ever volume of ADF grants.
TASF 8 will extend grants to aid in project preparation, capacity building, and technical or policy advice provision.
Established in 1966, the ADB, owned by 68 members, 49 from the region, remains steadfast in its commitment to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while persisting in efforts to eradicate extreme poverty.
