ADB to expand operations by 50% over next decade to boost regional development

The Asian Development Bank (ADB) has approved a Capital Utilization Plan (CUP) to scale up its operations by 50% over the next decade, increasing its annual financing commitments from $24 billion in 2024 to over $36 billion by 2034.

The expansion aims to enhance development impact across Asia and the Pacific by addressing critical economic and environmental challenges.

“This dynamic plan responds to the changing needs of our region and strengthens the transformative impact of ADB’s work, improving the lives of people and safeguarding our planet,” said ADB President Masatsugu Asakawa.

The CUP builds on ADB’s capital management reforms from 2023, which expanded its financing capacity and strengthened concessional lending for poorer and more vulnerable member countries.

The plan envisions a sharp increase in lending over the next two to three years, supported by an expansion in staff and technical assistance, followed by steady and sustained growth.

Non-sovereign operations, which involve private sector projects, are expected to grow from 20% to 27% of ADB’s total commitments over the next decade, while sovereign operations will expand at a moderate pace with a more diverse and balanced portfolio.

ADB also intends to invest part of its growing net income into high-quality, bankable projects that can attract sustainable financing through capital markets. The plan includes new initiatives such as a borrowing facility with financial and non-financial incentives to drive investments in resilience and sustainability, as well as more flexible financial instruments to enhance project preparation.

The bank will develop operational strategies to guide its future focus on private sector development, digital transformation, and regional cooperation.

These efforts align with ADB’s 2030 corporate targets, which include increasing climate finance to 50% of total commitments and mobilizing $13 billion in private sector financing through a mix of ADB’s own resources and external investments.

ADB will conduct annual progress reviews to ensure the CUP remains aligned with the region’s evolving development needs and priorities.

Established in 1966, ADB is owned by 69 members, including 49 from Asia and the Pacific. Its mission is to promote a prosperous, inclusive, resilient, and sustainable region, with a continued focus on poverty eradication and long-term economic stability.