MANILA, Philippines — The Asian Development Bank (ADB) and the UK, through its Department for International Development (DFID), launched yesterday the Asia Regional Trade and Connectivity Fund (ARTCF) ahead of the annual meeting of ADB’s board of governors.
The fund, to be administered by ADB, would support so-called “frontier challenges” ADB members face in improving regional integration, such as enabling private sector development and addressing regional public goods. DFID would provide an initial contribution of up to $30 million to the fund.
The fund would initially focus on eight Central and South Asian countries: Afghanistan, Bangladesh, India, the Kyrgyz Republic, Myanmar, Nepal, Pakistan and Tajikistan.
ADB said that in line with its Operational Plan for Regional Cooperation and Integration 2016–2020, ARTCF will help the selected ADB developing member countries to identify and design projects that improve cross-border transport, energy, and information and communications technology infrastructure.
The bank said the fund would also help recipients tackle red tape and regulatory bottlenecks; provide financing for regional projects to increase their poverty reduction and gender impacts; and strengthen the capacity of the member countries for prospective investments.
“ADB’s partnership with DFID will help further our ambitious knowledge-driven agenda and ensure that our members have access to the most effective, evidence-based solutions to further their regional integration goals,” said Bambang Susantono, ADB vice president for knowledge management and sustainable development.
Since joining in 1966 as a founding member, the UK government has contributed $3.09 billion in capital subscription to ADB and committed $1.43 billion to the bank’s special funds as of December 2017.
ADB and DFID’s first co-financing collaboration was conducted in 1996 and since then, the two institutions have partnered on projects for poverty alleviation, infrastructure development, finance, health, climate change, and public and private partnerships.