UK provides $23M grant to ADB for poverty reduction programs in India

Microfinance Focus, Dec. 4, 2009: The Asian Development Bank (ADB)and the UK Department for International Development (DFID) have signed a new five-year
strategic partnership to fight poverty in India.
The partnership, to run from 2009-2013, builds on a collaboration between the two
institutions that began in 2001, and will be supported by a £14 million ($23 million) grant from the UK government. The grant will co-finance specific components, such as poverty reduction and capacity building, in ADB-assisted projects in India’s poorest states.
In 2009-10, 17 ADB infrastructure projects have been identified for grant cofinancing, including road-building in Madhya Pradesh and Jharkhand, power sector capacity development in Bihar, preparing an investment plan for urban development in Himachal Pradesh, land transport management in Sikkim, improved irrigation management in Chhattisgarh and an integrated coastal protection and management project.
Tadashi Kondo, Head, ADB’s Office of Cofinancing Operations, said that shared
interests in state-level operations in India have led to a strong partnership between ADB and DFID.
“The partnership between ADB and DFID since 2001 has significantly helped the
government of India maximize the impact of ADB loans on poverty reduction,” said Mr.
Kondo. “Every $1 million contribution from DFID supports infrastructure investments of $300 million that directly benefits the poor. The new partnership offers the opportunity to maximize the impact of ADB lending operations.”
DFID has provided $50.58 million in grant co-financing since the collaboration began
in 2001.

DFID is the biggest bilateral grant donor in India. In 2008, DFID published a seven-year Country Plan to reduce poverty in India. DFID is providing £825m to India between 2008-2011, £500m of which will be devoted to health and education.
ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region
through inclusive economic growth, environmentally sustainable growth, and regional
integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2008, it approved $10.5 billion of loans, $811.4 million of grant projects, and technical assistance amounting to $274.5 million.

© 2009, Microfinance News. All rights reserved. 2008-09

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