Pacific island countries, including Palau, will benefit from a $5 billion replenishment to the Asian Development Bank’s (ADB) Asian Development Fund (ADF) 14 and Technical Assistance Special Fund (TASF) 8. Donors and the ADB agreed to the increased funding during the ADB’s 57th Annual Meeting in Georgia last week.
“Grants are more critical than ever for our poorest and most vulnerable members grappling with development setbacks and the urgent need to combat climate change,” said ADB President Masatsugu Asakawa. “This significant replenishment signifies the continued partnership between ADF donors and the ADB to address pressing development challenges faced by those most in need.”
President Asakawa highlighted that the increased funding will prioritize small island developing states, “which are among the most vulnerable, especially to climate change.”
ADF 14 focuses on climate change adaptation, disaster risk reduction, promoting gender equality, and driving regional cooperation and integration. It is ADB’s largest source of grants for its poorest and most vulnerable developing member countries and is replenished every four years. ADF 14, the 13th replenishment since the fund’s establishment, will support grant operations from 2025 to 2028.
This replenishment is 22% higher than the $4.1 billion available in ADF 13, providing eligible ADB members with the largest-ever volume of ADF grants.
More than half of the funds, $2.5 billion, will be provided by donors, including two new contributors: Armenia and Georgia. Notably, ADB will significantly increase its net income transfers to ADF, from $1.2 billion in ADF 13 to $1.6 billion in ADF 14, representing a 35% increase.
Donors to ADF 14 include Armenia, Australia, Austria, Canada, Denmark, Finland, France, Georgia, Germany, Hong Kong, China, India, Indonesia, Ireland, Italy, Japan, Luxembourg, Malaysia, Netherlands, New Zealand, Norway, People’s Republic of China, Philippines, Portugal, Republic of Korea, Spain, Sweden, Switzerland, Taipei, China, Türkiye, United Kingdom, and the United States.
Grants from ADF 14 will be available to the Federated States of Micronesia, Kiribati, Kyrgyz Republic, Maldives, Marshall Islands, Nauru, Samoa, Solomon Islands, Tajikistan, Tonga, Tuvalu, and Vanuatu. Additionally, grants will support the people of Afghanistan and Myanmar and transformative projects in Bangladesh, Bhutan, Cambodia, Cook Islands, Fiji, Lao People’s Democratic Republic, Mongolia, Nepal, Niue, Pakistan, Palau, Papua New Guinea, Sri Lanka, Timor-Leste, and Uzbekistan.