‘ADB must expedite loans for projects’

Economic Affairs secretary Subhash Chandra Garg said the Asian Development Bank should continue to focus on infrastructure funding and disburse loans within one year from the time a request is made.

“ADB should continue to place its primary focus on infrastructure creation, energy, communication, transportation, cities, river cleaning..,” Mr. Garg said while speaking at the ADB’s 51st Annual Board meeting. India is one of the founding members of the multilateral agency.

‘More international staff’

“We should aim at delivering project financing within one year of it being posed. ADB may also need to post more international staff from headquarters to resident missions. ADB should open its missions in major business locations,” he said.

He said new technologies are the new revolution and one should not ignore the fact that digital age is going to shape the future.

“ADB should become a facilitator of ushering in the digital age in Asia. It should invest in innovation, in start-ups and venture capital [firms] to help countries produce goods and services using technologies in the digital age,” he said.

He emphasised that ADB should invest in fintech and healthcare to improve the quality of life.

“It should invest in fintech, healthtech and other ways in which public services can be delivered to the people of Asia to improve their quality of life.”

The multilateral agency has embarked on ‘Strategy 2030’, designed to eradicate extreme poverty and achieve sustainable growth in Asia and the Pacific region.

‘Review process’

Mr. Garg also pointed out that the ADB should review its administrative process and encourage adoption of country systems.

“ADB should encourage adoption of country systems. Many countries in the region, including India, have sound country systems and social and environmental safeguards. We would do well to adopt country systems for procurement safeguards and other fiduciary policies,” he said.

Mr. Garg also cautioned ADB against adopting different approaches while lending to countries, and said, “We do not believe differential pricing will either add to its capital, which is not needed at this moment, or lead to any significant revenue. Therefore, probably, pursuing this idea may not be... advisable.”

He also said ADB should substantially expand its private sector operations, especially equity financing and investment in new instruments of financing, such as infrastructure investment trusts.

(The writer is in Manila at the invitation of ADB)