THE Asian Development Bank (ADB) said it is considering setting up a $500,000 technical assistance special fund to enhance the financial resilience of developing member countries.
In a disclosure dated May 21, the bank said the concept for the sovereign project, known as “Improving Developing Member Countries’ Access to Innovative Financing for Resilience,” was approved on May 21.
“The technical assistance will help respond to a rapidly evolving operating environment marked by rising climate and disaster risks (and) geopolitical and economic volatility,” the ADB said.
The bank said the initiative also seeks to address the “growing demand from developing member countries (DMCs) for more flexible and transformative financing solutions, while also addressing concerns over the institution’s financial sustainability.”
“It will support the design and initial operationalization of the Asia Resilience Facility (ARF) and complementary innovative financing mechanisms aimed at strengthening fiscal, social, and infrastructure resilience of DMCs,” it added.
According to the ADB, the ARF pilot had been successful, prompting the technical assistance project to be directed towards exploring additional financing options.
“The technical assistance is expected to advance innovative financing solutions while responding directly to DMC priorities. It generally aligns with ADB’s strategic priorities on climate action, resilience, private sector development, and regional cooperation and public goods,” it added.
The ADB said the project underwent a fact-finding phase on May 8. — Justine Irish D. Tabile
