Asian Development Bank (ADB) president Masatsugu Asakawa (right) prepares to address a press conference about the planned $5 billion replenishment in Tbilisi, Georgia. Sam Rith
The Asian Development Bank (ADB) announced a historic replenishment of $5 billion for its Asian Development Fund (ADF) during its 57th Annual Meeting held in Tbilisi, Georgia.
The ADF, the bank’s largest source of grants for its poorest and most vulnerable member countries, will provide crucial support for development operations from 2025 to 2028.
The replenishment, known as ADF 14, marks the 13th replenishment since the fund's establishment. With a 22 per cent increase over ADF 13, it represents the largest-ever commitment to ADF grants, enabling eligible ADB members, including Cambodia, to access a significant volume of financial assistance.
ADB president Masatsugu Asakawa expressed his gratitude during the press conference on May 3 for the generous pledges received from donors during the pledging session, saying, "Grants are more important than ever as our poorest and most vulnerable members seek to reverse recent development setbacks and take urgent action to combat the climate crisis”.
"The generous backing from our donors not only fuels these initiatives but fosters a spirit of international cooperation that is crucial in times of global crisis. This collaboration enhances our collective capacity to face challenges that no single country can overcome alone. Our efforts will pave the way for a resilient, inclusive, and sustainable region, ensuring that the ADF remains a powerful tool for change," he added.
The ADF 14 will prioritise assistance to small island developing states, which are particularly vulnerable to climate change, as well as countries facing fragile or conflict-affected situations. It will play a critical role in supporting climate change adaptation, disaster risk reduction, regional cooperation, gender equality, and transformative projects.
More than $2.5 billion – or 51 percent of the replenishment – is funded by contributions from donors, including two new countries, Armenia and Georgia.
The ADB will significantly increase its net income transfers to ADF, reaching nearly $1.6 billion in ADF 14. The remaining $0.9 billion will come from transfers from earlier ADF cycles and income from liquidity investments.
In parallel to the ADF 14 grants, the ADB intends to provide $16.7 billion in concessional loans during the same period. These loans will have low interest rates and long repayment periods, further supporting development efforts in the region.
“The contributions from donors demonstrate their continued commitment to addressing the pressing development challenges faced by the most vulnerable communities. The collaboration between ADB and its donors fosters international cooperation, enhancing the collective capacity to tackle global crises,” said ADB president Asakawa.
