ADB Review November 2008 Issue by pengxiang


NEWS FROM THE ASiAN DEvElOpMENT BANk                                                                                                                                November 2008

New Pacific Study Calls
for More Consultations,
Participatory Governance
MANILA—A new capacity development study for Pacific
nations shows that sustained capacity development of people and
organizations can lead to better service delivery and increased
poverty reduction in the region.
     The Pacific Capacity Development Study is sponsored by
ADB and Australian Agency for International Development
                                                                        Rollie Del Rosario

     The study highlights good governance and increased participa-
tion of people in the decision-making process on development issues
as key factors in helping build capacity in the Pacific islands.
                                                (Continued on page 3)                   Developing pacific nations must intensify their structural reform efforts

Leaders to Forge New Plan                                                               Pacific Nations Must Boost
to Protect Coral Triangle                                                               Structural Reform to Withstand
MANILA—Senior officials from six Asia and Pacific nations,
whose territories include some of the most unique and threatened
                                                                                        Global Crisis, Says ADB Study
marine species in the world, are forging a comprehensive draft                          MANILA—Developing Pacific nations must intensify their structural reform efforts to
plan to protect these natural treasures.                                                achieve sustainable economic growth and protect themselves from the global economic
    Representatives from Indonesia, Malaysia, Papua New                                 crisis, a new ADB study says.
Guinea, Philippines, Solomon Islands, and Timor-Leste—                                       The Pacific’s banking system is well shielded from the most immediate effects of
the six countries that make up the so-called “Coral Triangle”—                          the global financial crisis, as it has generally sound health and raises and invests most
are expected to finalize The Coral Reefs, Fisheries, and Food                           of its funds within the region. However, the island economies are not immune to the
Security Plan of Action at a meeting held in Manila.                                    ripple effects of a global slowdown—with exports and tourism likely to weaken, overseas
                                                (Continued on page 2)                   remittances expected to decline, and pricing to international capital seen to rise. Offshore
                                                                                        investments of national trust funds and pension schemes have fallen in value.

  What’s Inside
                                                                                                                                                                     (Continued on page 4)

                                                                                        IN THIS ISSUE
                                                                                        NEWS Governance and Service Delivery Emphasized in Two New Strategies for Samoa and
  Climate Change and Disaster Risk                                                      Tuvalu 2 ADB, Sri lanka Agree on partnership Strategy 3 ADB's Managing Director General
  Management: Legislating Gender-Responsive                                             speaks at World Economic Forum on Europe and Central Asia 4 Country Director in kyrgyz
  Mitigation, Adaptation, and Women’s                                                   Republic Meets prime Minister 4 ADB, SMBC Enter Risk Mitigation pact to Facilitate Trade
  Participation ADB Vice-President Ursula Shaefer-                                      in Developing Asia 4 PROJECT NEWS ADB, Japan to Help lao pDR Strengthen Higher
  Preuss discusses women’s participation in decision making                             Education System 8 ADB Supports innovative project for Cross-Border power Trade, Rural
  on climate change and disaster preparedness. Read the                                 Electrification in Bhutan 10 ADB Reinforces Support for Urban Development in Bangladesh
  speech on page 5.                                                                     11 ADB Helping pRC prepare Framework for Water Resources Management 11 ADB Targets
                                                                                        Coordinated Water Management in Central Asian Nations 12 ADB
  Cambodia Braced for Upsurge in HIV from                                               Supports Expressway projects in viet Nam to Boost Economic Growth
  Injecting Drug Use Injecting drug use accounts for                                    12 ADB to Help india’s Himachal pradesh Become “Hydropower State”
  almost 10% of the total drug use in the streets of Phnom                              via Multitranche loan 13 ADB to Help Nepal improve local Governance,
  Penh. Read the feature on page 9.
                                                                                        Community-led Development 13 REGULAR SECTIONS Publications 14
                                                                                        Upcoming Events 14 Opportunities 15 Operations Updates 16

       Governance and Service Delivery Emphasized
       in Two New Strategies for Samoa and Tuvalu
                                                                                                                      has been revised to 3.3% in 2008, up from
                                                                                                                      3.0% projected earlier in the year. Overseas
                                                                                                                      remittances have risen and tourism revenues
                                                                                                                      have increased. Amid these gains, sharp
                                                                                                                      increases in oil and food prices are affecting
                                                                                                                      Samoa’s highly import-dependant economy.
                                                                                                                           Tuvalu’s economy has been adversely affected
                                                                                                                      by high fuel and food prices, pushing up inflation
                                                                                                                      and electricity and transport costs—threatening the
                                                                                                                      pace of future economic growth and the delivery of
                                                                                                                      social services, particularly to outer islands. The
                                                                                                                      financing envelope is expected to be $5.85 million
                                                                                                                      which will be provided in the form of program
                                                                                                                      grants. The CPS for Tuvalu will also include
Ian Gill

                                                                                                                      assistance of about $300,000 per year to help develop
       ADB and the governments of Samoa and Tuvalu have entered into new country partnership strategies               and implement capacity development to support
                                                                                                                      public financial management process, review tariff
       MANILA—ADB and the governments of Samoa                serves to monitor and evaluate the country’s            arrangements for public enterprises—especially in
       and Tuvalu entered into new country partnership        development performance during the timeframe            the telecommunications and electricity sectors—and
       strategies (CPS). The CPS for Samoa will focus         of the strategy.                                        support to the National Bank of Tuvalu to operate
       on improved delivery of power, water, sanitation,           Samoa has made significant progress in             on sound commercial principles.
       and education services through private sector          human development since the early 1980s.                     Samoa has received almost $156.6 million in
       participation. The Tuvalu CPS will support             However, not all Samoans have fully shared              loans since joining ADB at the bank’s founding
       budget management and good governance.                 the benefits of growth, with the poorest 10% of         in 1966, while Tuvalu has received $7.82 million
           A CPS is A DB’s pr ima r y pla nning               households still earning just 1.8% of the national      in loans and $4.79 million in technical assistance
       instrument for member countries that also              income. Samoa’s gross domestic product growth           since joining ADB in 1993. n

       Leaders to Forge New Plan… (Continued from page 1)

            ADB is hosting a parallel meeting of partner
                                                                     The plan will include local, national, and
       agencies that support the Coral Triangle Initia-          regional projects that work toward common
       tive. The Global Environment Facility (GEF);
       United States and Australian governments, and             objectives agreed on by the countries
       environmental groups Conservation Interna-
       tional, The Nature Conservancy, and the World
       Wide Fund for Nature have all reaffirmed their         dinating the mobilization of financial support for      for families depending on the sea for their income,
       strong support.                                        the plan of action.                                     and help address pressures on reefs and local fish-
            The Coral Triangle, dubbed the "Amazon of              “Elements of the action plan are already           eries. ADB will provide grant-financed technical
       the Seas," covers a 5.7 million square kilometer       getting under way, and it will be fully operational     assistance for the project, which will also include
       expanse of ocean with 75% of all known coral           after its endorsement by leaders of the partici-        funding from the Government of Finland.
       species in the world.                                  pating countries at a Coral Triangle Initiative              A second project will support Southeast
            This region is facing a grave threat from         Summit in Indonesia, planned for May 2009,”             Asian nations’ efforts to protect the marine
       climate change, which many scientists believe          says David McCauley, ADB Principal Environ-             environment, ensure that fishing remains sus-
       is causing sea water temperatures to rise,             ment Specialist.                                        tainable, and develop models for the sustainable
       bleaching, and killing off reefs. Harmful fish-             The plan focuses on a series of steps to           financing of marine protected areas through
       ing practices have also caused serious damage          protect and sustain marine life in the triangle. It     strengthened policies and institutions.
       to vital ecosystems, with the rising sea level         will include local, national, and regional projects          A third, triangle-wide project will support
       from climate change further threatening these          that work toward common objectives agreed on            regional information exchange—including the
       resources in the longer run.                           by the countries.                                       latest scientific data on climate change—and
            The Coral Triangle Initiative (CTI), a                 ADB initially expects to implement three           will help strengthen country collaboration in
       regional effort to preserve and manage the             subprojects under the CTI plan, all of which            carrying out the overall action plan, and in
       region’s marine resources, was launched last           will receive GEF funding.                               monitoring coastal and marine environments.
       year by the six countries, along with interna-              One project in the Western Pacific region of the   ADB will provide regional technical assistance
       tional partners, including ADB, which is coor-         Coral Triangle will generate sustainable livelihoods    for this project. n

       2                         November 2008

                ADB, Sri Lanka Agree on Partnership Strategy
                                                                                                                                       “The CPS will focus on provinces outside
                                                                                                                                  the relatively wealthy western province, targeting
                                                                                                                                  electrification of rural areas, linking provincial
                                                                                                                                  roads to rural roads and villages, upgrading water
                                                                                                                                  supply in lagging regions, and supporting urban
                                                                                                                                  development in selected secondary towns,” says
                                                                                                                                  Johanna Boestel, team leader for the strategy.
                                                                                                                                       To help achieve this, it will also seek to increase
                                                                                                                                  the capacity of provincial councils and local
Rollie Del Rosario

                                                                                                                                  authorities to improve public service delivery. By
                                                                                                                                  strengthening rural infrastructure, ADB’s support
                                                                                                                                  will also help boost agricultural efficiency, which
                The Sri lanka CpS will focus on provinces outside the relatively wealthy western province                         has become increasingly important with the spike
                                                                                                                                  in global food prices.
                MANILA—ADB and the Government of Sri                       risks have increased, compounded by further                 Because of uncertainties sparked by renewed
                Lanka have forged a new country partnership                signs that the global slowdown is more profound        fighting since 2006 in the more-than-two-decade
                strategy (CPS) 2009–2011 designed to help                  than many had expected, and this could have            conflict between the Government of Sri Lanka
                improve the investment climate, unclog                     a significant negative impact on Sri Lanka’s           and the Liberation Tigers of Tamil Eelam—and to
                infrastructure bottlenecks, and ensure all                 economy,” says Richard Vokes, Country Director         provide greater operational flexibility—ADB has
                segments of society benefit from the nation’s solid        of ADB’s Sri Lanka Resident Mission.                   reduced the term of the CPS from the usual five
                economic growth.                                               The partnership strategy has a twin focus.         years to three years.
                     Sri Lanka has posted an average economic              First, ADB will continue to back stronger fiscal            The issue of the conflict and how best ADB
                growth of 5% per year over the past 30 years,              management to improve the macroeconomic                can contribute to its resolution have been central to
                putting it on the point of becoming a middle-              environment and will step up support for               the work of the CPS team. To this end, ADB will
                income country. However, it has failed to reach            infrastructure development, particularly in power      strive to provide a balance of support throughout
                its full potential because of civil conflict, weak         and transport, and public-private investment           the country while continuing implementation of
                infrastructure, and high public debt. Recent high          partnerships. Currently, many private sector           ongoing projects and initiating new projects in areas
                global oil and food prices, a surge in inflation,          investors are reluctant to plough significant funds    that have been affected by the conflict, wherever
                and worsening prospects for the global economy             into the economy because of poor infrastructure,       possible. ADB will also ensure that its interventions
                also pose a threat to future growth and poverty            high taxes, policy uncertainty, civil conflict, and    are conflict sensitive, with strong emphasis on
                reduction efforts.                                         high financing costs.                                  transparency and full and active consultation
                     “The aim of the CPS is to unlock the growth               Second, ADB will target better delivery of         among all stakeholders.
                potential in an as equitable a way as possible.            power, water, transport and other essential services        The strategy supports the Government’s
                Economic growth in the first half of 2008 has              in poorer provinces to make sure the fruits of         10-year Development Framework that targets
                remained strong at 6.6%. However, the external             development reach those most in need.                  inclusive economic growth. n

                New Pacific Study… (Continued from page 1)
                                                                                Capacity is often associated with individual      issues such as greater competition, reduced payroll,
                    The study investigates 21 case studies from            skills or organizational abilities. The ADB            land registration, public utility fees, budget manage-
                11 Pacific developing countries: Cook Islands,             study uses the definition of Organisation for          ment, and foreign investment.
                Kiribati, Nauru, Papua New Guinea, Republic of             Economic Co-operation and Development’s                     ADB is working closely with Pacific developing
                the Marshall Islands, Samoa, Solomon Islands,              (OECD) Development Assistance Committee,               member countries and other development partners
                Timor-Leste, Tonga, Tuvalu, and Vanuatu. The               which terms it as “the process whereby people,         to implement more efficient, effective, and demand-
                cases cover a range of experiences including               organizations, and society as a whole, unleash,        driven capacity development interventions.
                economic planning, infrastructure development,             strengthen, create, adapt, and maintain capac-              Capacity development is one of the main
                health and legal sector reform, and civil society          ity over time.”                                        assistance areas identified in ADB’s Long Term
                enhancement.                                                    The report says the core functions of Pacific     Strategic Framework for 2008–2020 (Strat-
                    The study also identifies a number of key              governments, such as financial management and          egy 2020). Strategy 2020 will serve as ADB’s
                factors contributing success to the case studies:          formulation of policy, must be strengthened.           corporate-wide planning document and give ADB
                leadership, participation, right incentives, an            Pacific people should become more involved in          a more relevant and innovative role in helping
                enabling environment, and flexibility.                     the decision-making process, especially on critical    shape the region’s future. n
                    “Genuine consultation and participation are
                central to improving capacity development in the
                Pacific,” says S. Hafeez Rahman, Director General                 Pacific people should become more involved in the
                of ADB’s Pacific Department. “Future approaches
                to building capacity in the Pacific may involve              decision-making process, especially on critical issues
                changing the way we do business in the Pacific.”

                                                                                                                                            November 2008                               3
Eric Sales

         Rajat M. Nag, ADB Managing Director General

         ADB's Managing Director
         General Speaks at World
         Economic Forum on Europe
         and Central Asia
         MANILA—ADB’s Managing Director General
         Rajat M. Nag spoke at the World Economic Forum's
         first meeting on Europe and Central Asia in Istanbul
         about the importance of strategic leadership and
         initiatives like CAREC to further drive regional
         cooperation in Central Asia. The meeting was
         attended by more than 500 delegates including heads
         of state, ministers, business leaders, academics, and
                                                                 Joe Cantrell

         policymakers from across Europe, Turkey, Russia,
         the Middle East, and Central Asia. n
                                                                            The Risk participation Agreement initiative will expand trade finance facilities

         Country Director in Kyrgyz
         Republic Meets Prime Minister
                                                                           ADB, SMBC Enter Risk Mitigation Pact to
                                                                           Facilitate Trade in Developing Asia
         BISHkEk—In a meeting with ADB’s Lan
         Wu, the Prime Minister requested that ADB                         MANILA—ADB and Sumitomo Mitsui Banking                        which falls under the umbrella of ADB’s Trade
         conduct a comprehensive needs assessment of                       Corp. (SMBC) announced that they have entered                 Finance Facilitation Program (TFFP), will
         infrastructure in the aftermath of the 5 October                  a risk-sharing agreement that will enhance                    expand trade finance facilities to selected
         earthquake in the southern part of the Kyrgyz                     support for international trade in developing                 financial institutions on a risk-sharing basis, with
         Republic, and based on this, mobilize resources                   countries in Asia.                                            the transactions ranging from short-term letters
         from ADB and other donors. n                                          The Risk Participation Agreement initiative,              of credit to tenors that last up to two years. n

         Pacific Nations… (Continued from page 1)

              “The impact of the financial crisis on the                             The impact of the financial crisis on the Pacific may
         Pacific may be lessened through sound economic
         management,” says S. Hafeez Rahman, Director                           be lessened through sound economic management
         General of ADB’s Pacific Department, in the
         foreword of “Navigating the Global Storm”,
         which was published recently.                                      Federated States of Micronesia, Papua New                    toward a tighter regulatory system that is more
              “The key response to the global financial                     Guinea, Solomon Islands, Timor-Leste, and                    integrated, involving cross-border coordination
         crisis should be to reinvigorate structural reform,                Vanuatu.                                                     and collaboration among supervisors, regulators,
         which is crucial to achieving sustained economic                        Private sector investment is important,                 and central banks.
         growth,” he says. “The priority is to address                      especially for tourism-based economies. The                      Closer engagement with financial institutions
         constraints to private sector-led economic growth                  deregulation of the air transport industry in Cook           and new strategic approaches to managing
         in the region.”                                                    Islands, Samoa, and Vanuatu and competition                  the region’s offshore investments need serious
              Efforts to improve rural productivity are                     among new telecommunications operators have                  consideration, the study further suggested.
         important for the bulk of the population in                        lowered transport and communications costs                       “Through it all, ADB remains firmly
         the agriculture-based economies. Structural                        for the local population who are still coping with           committed to help the region mitigate risks and
         reform should include initiatives to improve                       relatively high oil and food prices.                         alleviate adverse impacts of the crisis in close
         transport and communications and other basic                            Once the immediate global financial crisis              cooperation with our development partners,”
         services including agriculture extension in                        subsides, there are likely to be international moves         says Mr. Rahman. n

         4                           November 2008

Climate Change and Disaster Risk Management:
Legislating Gender-Responsive Mitigation,
Adaptation, and Women's Participation
The following is an excerpt from a speech given by ADB Vice-President
Ursula Schaefer-Preuss at the Third Global Congress of Women in Politics
and Governance Gender in Climate Change Adaptation and Disaster Risk
Reduction, in Makati City, Philippines, on 20 October 2008.

Our fundamental concerns are two-fold:             migrate to look for a job. Women may
                                                   save food for their children, risking
•	 First,	 climate	 change	 and	 disasters	        their own health.
   have gender-differentiated impacts.          •	 Loss	 of	 shelters,	 assets,	 and	 infra-

                                                                                               Richie Abrina
   Therefore, gender-responsive mitigation         structure affect men and women
   and adaptation strategies for climate           differently.
   change and gender-responsive disaster        •	 And	 loss	 of	 family	 and	 community	                  Ursula Schaefer-preuss, ADB vice-president knowledge
                                                                                                           Management and Sustainable Development
   risk management are essential.                  support due to disaster and migration
•	 Second,	 women's	 participation	 in	            particularly hit heavily on women.
   decision-making fora on climate                                                                             Third, these impacts and vulnerabilities
   change and disaster preparedness is             Second, women may experience                            mean that women have different needs
   unfortunately very low at the global,        specific vulnerabilities. For example,                     and priorities from men when it comes
   national, and local levels. Yet women                                                                   to climate change mitigation, adaptation,
   can contribute significantly to this         •	 They	 may	 need	 to	 spend	 more	 time	                 and disaster risk management. Women
   process, and when they do, the                  collecting water and firewood, for                      tend to prioritize their health, safety and
   resulting decisions are better. These           example, making it difficult for poor                   resource needs at the household and
   two dimensions are equally important            women to engage in other tasks and                      community levels. With regard to climate
   and they enhance one another.                   negatively impacting on their health                    change mitigation, for example, renewable
                                                   for the increased work burden;                          energy technology choices tend to lean
Gender-Differentiated Impacts,                  •	 Deaths	from	disaster	are	often	higher	                  toward “large scale” endeavors and
Vulnerabilities, and Priorities                    among women than men. Six t y                           neglect women's household energy and
                                                   one percent of deaths by cyclone                        small enterprise needs. The latter needs
First of all, men and women experience             Nargis in Myanmar were women;                           to be more explicitly recognized and
climate change and disaster impacts                70-80% of deaths by the indian Ocean                    financially and technically supported.
differently.                                       tsunami were women; 91% of deaths
                                                   were women in the 1991 cyclone in                       Limited Participation of Women
•	 Environmental	 degradation	 such	 as	           Bangladesh. But there are also cases                    in Decision Making
   shortage of water, deforestation,               where more men than women died.
   and desertification put women under          •	 Malaria,	 cholera,	 impaired	 psycho-                   institutions making decisions on climate
   extreme pressure for daily survival, for        social health and other health-related                  change adaptation and mitigation at the
   their primary roles in collecting water         impacts not only affect women's                         international, national and local levels,
   and fuel wood.                                  health but also increase burdens on                     and disaster risk management policy,
•	 Such	degradation	results	in	a	significant	      their care responsibility;                              framework, and legislation are invariably
   decline in productivity, income, and         •	 Increased	 conflicts	 driven	by	climate	                male dominated.
   food security. Men and women use                change and disasters can also increase                      For example, women comprised only
   different coping strategies. Men may            women's vulnerability to violence.                      28% of delegation of parties and 12% of
                                                                                                           heads of delegation at the 13th Annual
                                                                                                           Conference of the parties in Bali in 2007
                                                                                                           under the United Nations Framework
       Institutions making decisions on climate change                                                     Convention on Climate Change. This is a
                                                                                                           mixed progress from the 17% and 14%,
  adaptation and mitigation at the international,                                                          respectively, in 2001 when the declaration
                                                                                                           was adopted to increase the number of
  national and local levels, and disaster risk                                                             women participants. Not only lawmakers
  management policy, framework, and legislation                                                            and bureaucrats but also researchers and
                                                                                                           experts are predominantly male. Gender
  are invariably male dominated                                                                            diversit y brings wider perspectives
                                                                                                           into decision making, and yields better

                                                                                                                    November 2008                            5

    in both climate change and disaster         country are closely monitored. While                            empowerment of women through
debates, women are more often seen as           neither CEDAW nor the Beijing platform                          legal awareness training and legal
vulnerable “victims” rather than active         for Action has specific provisions on                           aid support in indonesia, Cambodia,
change agents. Greater participation of         women's rights related to climate change                        and Bangladesh in relation to health,
women is essential in global and national       or disaster risks, their support for gender                     water supply, and urban development
level policy-related decision making, as        equality and women's rights in general                          projects. Women who were trained on
well as at the local level.                     provides opportunities to raise women's                         their legal entitlements and how to
                                                awareness, resilience, and capacity.                            access to legal aid under the project
Implications for Policies and Legislation           ADB, together with other development                        are now in a better position to demand
                                                partners, has supported many countries in                       better economic opportunities and
These concerns highlight the need to            the region in developing and implementing                       social services.
consider two essential dimensions when          policies, laws, and strategies to promote
developing or revising climate change and       gender equality. For example:                                The Second Dimension? Legislating
disaster risk policies and legislation:                                                                      Gender-Equal Participation in Decision
                                                •	 ADB	has	supported	its	partner	countries	                  Making Bodies at All Levels
•	 One	 is	 the	 integration	 of	 gender	          in developing gender strategies in
   concerns into climate change                    agriculture, rural development, and                       Turning to the second dimension, we have
   mitigation, adaptation, and disaster risk       natural resources management in                           been making notable progress legislating
   management policy and legislation;              viet Nam, Cambodia, and lao pDR.                          women's participation in decision-making
•	 The	other	is	legislating	gender-equal	          For example, under the ADB-assisted                       at the local level through a range of
   par ticipation in decision-making               Agriculture Sector Development                            affirmative actions.
   bodies at all levels.                           program in Cambodia that started in
                                                   the late 2004, a nationwide gender                        •	 In	a	number	of	South	Asian	countries,	
   The good news is that we have                   strategy is being developed for the                          seats for women have been earmarked
been already successful at some levels             agriculture sector. A 15-member                              at the local elections level, and in
in le gislating the s e t wo e s s e ntial         high level gender working group has                          some cases, like Afghanistan, at the
dimensions outside of the specific realm           been established in the Ministry of                          national parliament level. With the
of climate change and disaster risk                Agriculture, Forestry and Fisheries to                       support of NGOs and development
management. let us take a close look at            prepare a strategy that will (i) increase                    partners, these locally elected women
our accomplishments.                               rural women's access to and control                          have been trained on a range of
                                                   of agricultural and environmental                            issues. Many of them now regularly
The First Dimension? Integrating                   resources to improve their income,                           raise key gender concerns with their
Gender Concerns into Policy and                    (ii) enhance awareness of gender                             administration, and in their work with
Legislation                                        issues in the agriculture sector, (iii)                      citizens‘ representatives.
                                                   institutionalize gender analysis in                               On the other hand, women's
incorporating legal and policy provisions          agriculture policies and programs,                           participation in decision making at
that guarantee women's rights and access
to resources has been essential to ensure
women are resilient against shocks and
dwindling assets, and to strengthen
                                                       ADB, together with other development partners,
their ability to cope. Women's rights;            has supported many countries in the region in
their access to property, land, natural
re-sources, credit, skills, information, edu-     developing and implementing policies, laws, and
cation, and health; and their safety and
freedom from gender-based violence also
                                                  strategies to promote gender equality
appear to be relevant to climate change
and disaster management concerns.                  and (iv) enhance the capacity of the                         the national level has not made major
    Over the past decade or so, the                ministry.                                                    strides. virtually the entire world is
legal and legislative environment to            •	 ADB	has	also	provided	technical	support	                     behind parity in terms of seats held by
address these issues has significantly             to the drafting of gender equality laws                      women in national parliaments. The
improved. This is encouraging. in Asia             in viet Nam, Nepal, and Mongolia.                            2008 MDG Report for Asia and the
and the pacific, most significantly, nearly        Equal gender rights on property and                          pacific tells us that except for several
all countries are signatories to the               inheritance, and equal access to safety                      transition economies, most countries
Convention on the Elimination of All               nets, education and health are key                           are even below the global average of
Forms of Discrimination Against Women              elements in these laws. With the                             15% representation. But there is also
(CEDAW) and have adopted the Beijing               assistance of ADB, the Nepal parliament                      good news.
platform for Action. Through regular               passed legislation in September 2006 to                   •	 Of	the	nearly	20	countries	recording	
reporting to the Commission on the Status          amend gender-discriminatory provisions                       less than 10% representation, some
of Women, the status of gender equality            in 19 existing laws.                                         progress is being made. For example,
legislation and its implementation in each      •	 A D B 	 h a s 	 a l s o 	 s up p o r t e d 	 l e g a l	      in india representation doubled

6                   October 2008

   from 2004 to 8.3% in 2007 and                   indonesia, Republic of the Marshall                       •	 Are	 women's	 groups	 and	 gender	
   in Bangladesh the rate also nearly              islands, and pakistan in 2004-2006,                          experts involved in the process of
   doubled during the same period.                 introducing a range mechanisms                               discussing the policy or strategy?
                                                   for civil society organizations and                       •	 Have	 women	 played	 a	 substantive	
   ADB supports these initiatives at the           municipal governments to work                                role in identifying the key elements
local and national levels. For example,            together in budget decision making.                          of disaster preparedness plans? What
                                                   This allowed a number of women and                           media or other information channels
•	 ADB	has	supported	capacity	building	            women's groups to participate in this                        are used for disaster warnings and
   in Bangladesh, Nepal, and pakistan              process.                                                     evacuation information? Are these
   for locally elected women through
   its technical assistance projects.
   intensive training has been conducted               Our success in gender-responsive policies
   by local nongovernment organizations
   (NGOs) on key terms of reference               and legislation as well as women's participation in
   as a local legislator, the functions
   of government, key development
                                                  decision making process outside of climate change
   and gender issues, and confidence              and disaster risk management must be maintained
   building. ADB also supported pakistan
   in establishing affirmative action             and further strengthened
   policies for female judges under its
   Access to Justice program. Thanks to
   this, the percentage of female judges                                                                          normally used by women? What about
   nearly doubled from 5.3% in 2001 to         Towards Gender-Responsive and Gender-                              training? is this offered at times and
   9.8% in 2007.                               Inclusive Climate Change and Disaster                              in settings in which women are able
•	 Throughout	 Asia	 and	 the	 Pacific,	       Risk Management Policies and Legislation                           to participate?
   ADB-financed projects in rural and                                                                        •	   Is	 there	 an	 efficient	 mechanism	 for	
   urban development tend to include               Our success in gender-responsive                               immediate delivery of food, shelter,
   quota for women's participation             policies and legislation as well as women's                        and medical supplies for women and
   in community-based organizations            participation in decision making process                           children in the case of a disaster?
   such as water user associations,            outside of climate change and disaster                             Do emergency shelters provide at
   farmer or fisher associations, local        risk management must be maintained                                 least minimum privacy and safety
   health volunteer groups, and urban          and further strengthened.                                          for women? (e.g., during Hurricane
   slum neighborhood groups. This                  But we now also ne e d to look                                 katrina, several women were raped
   has increased the representation of         specifically into climate change and                               in the stadium in public!) Are gender
   women in these organizations.               disaster risk management related policies                          equal entitlements and responsibilities
•	 At	 th e	 national	 le ve l,	 A D B	 has	   and legislation.                                                   of individuals clearly specified?
   worked with partner governments                 The types of policies and legislation                          (indonesia's law of 2007 Concerning
   to increase women professionals'            we are talking about at the national and                           Disaster Management could be a good
   represent ation in the te chnic al          local administration levels include those                          example.)
   ministries, national water resource         pertaining to                                                 •	   Is	 gender	 analysis	 institutionalized	
   management boards (e.g., Sri lanka,                                                                            as part of the post-disaster needs
   viet Nam, and Bangladesh), and              •	 renewable	energy	and	greenhouse	gas	                            assessment? Are women part of the
   project management committees,                 emission reduction;                                             reconstruction planning process?
   although the success is limite d            •	 natural	resources	conservation;	                           •	   Is	 there	 sufficient	 decentralization	
   compared with the local level.              •	 national	 or	 local	 climate	 change	                           of decision making and authority
•	 Gender-responsive	 budgeting	 has	             adaptation strategies;                                          at loc al leve ls? This may allow
   been adopted in many countries,             •	 disaster	 risk	 management	 strategies	                         more opportunities for women to
   encouraging gender- equal                      and plans;                                                      par ticipate. Also, are NGOs and
   participation in this process. ADB          •	 m i g r a t i o n 	 p o l i c i e s 	 a n d 	 l e g a l	        communit y-based organizations
   is preparing a new project in                  frameworks for migrants' rights.                                involved in the process? is the Ministry
   Nepal, indonesia, and Cambodia to                                                                              of Women part of the task force?
   assess whether the local budgeting              What specific actions can we take along                   •	   A r e	 th e r e	 s uf f i ci e nt	 e x p e r t is e,	
   process has adequately reflected            with these policies and legislation? What                          finance, and political commitment
   gender priorities and concerns. The         does it mean in reality to 'engender' policies                     in the country to implement gender
   project will also introduce gender-         and legislation AND legislate women's                              provisions in the policy and strategy? is
   responsive budgeting and expenditure        participation in the decision-making process?                      donor or external support needed?
   monitoring in selected districts,           let us take disaster risk management policy
   involving both men and women at             and strategy as an example. The first step                       The second step is to apply these
   the local level. ADB also supported         could be to ask a series of gender-related                    questions to your real circumstances,
   par ticipator y local budgeting in          questions. For example:                                       whether it is at the national or local level.

                                                                                                                        November 2008                               7

To do so, you need to bring yourself to                                  with a relevant message on the need for                on climate change and disaster risk
the drafting or monitoring committees                                    more women's participation in climate                  management. The role of civil society
and build alliances. legislators, scientists,                            change and disaster risk management                    is par ticularly essential in bringing
NGOs and development agencies who                                        matters could be useful as well.                       the voice of women among the most
are concerned about gender responsive                                        Finally, from my own perspective, i                vulnerable groups such as indigenous
legislation in the context of climate                                    believe that the role of an organization               groups, poor, and those most exposed
change and disaster risk management                                      like ADB can be essential in forging                   to environmental and disaster risks.
must work together. To date, the focus                                   such partnerships, particularly to bridge              By partnering with regional research
has been to build alliances among                                        the gaps between the stakeholders                      institutes and government statistics
ourselves. However, to be effective,                                     concerned with gender and those that                   offices, we as ADB can also help countries
we now urgently need to scale up our                                     are in the 'mainstream' of the sector                  collect the evidence that gender does
efforts to build alliances with those who                                whose awareness level needs to be raised               matter in policy and law making for
are NOT particularly concerned with                                      significantly.                                         climate change mitigation, adaptation,
gender-responsive and women inclusive                                        We can use our knowledge,                          and disaster risk reduction.
legislation process. Good evidence that                                  experience and resources to help the                       We know that our past experience
gender matters in climate change and                                     consultative process in this region in                 in advancing policy dialogue on gender
disaster risk management can make a                                      developing gender-responsive and                       equality and empowerment of women
powerful tool. intensive media campaigns                                 women-inclusive policies and legislation               will be useful in this regard. n


ADB, Japan to Help Lao PDR Strengthen Higher Education System
MANILA—Japan and ADB are supporting                                      the country out of least developed country             workforce through improved higher education.
moves to strengthen higher education in the Lao                          status by 2020.                                            The technical assistance work will run for
People’s Democratic Republic (Lao PDR) to                                    Lao PDR, a key player in the Greater Mekong        8 months starting November 2008. The project
reduce poverty and boost the economy.                                    Subregion, can also support moves toward closer        design is expected to be agreed upon by Lao
     The Japan Special Fund, through ADB, is                             regional integration by boosting the quality of its    PDR and ADB by May 2009. n
providing a $600,000 technical assistance grant
to lay the groundwork for the Strengthening
Higher Education Project. An additional
$120,000 equivalent is being contributed by the                                    The higher education system still lacks a clear
Lao PDR Government.                                                           vision, policy, and strategies to reach regional and
     The fund will be used to conduct feasibility
studies and draw up a 2010-2020 master plan                                   international standards
that focuses on improving standards at the
National University of Laos, Souphanouvong
University, Champasak University, and other
key tertiary institutions.
     It will address current sector constraints,
including lack of equitable access to higher
education especially for women and ethnic
minorities; low-quality teaching, equipment,
research, and management; and the mismatch
between the supply of graduates and current
market requirements.
     “The higher education system still lacks a
clear vision, policy, and strategies to reach regional
and international standards in terms of quality,
relevance, attractiveness, and competitiveness,”
said Yasushi Hirosato, Senior Education Specialist
with ADB’s Southeast Asia Department.
     After years of stagnation, Lao PDR’s
                                                         Rollie Del Rosario

economy has been growing strongly in recent
years. The Government has identified education
as one of the key pillars for its plan to sustain
economic expansion, reduce poverty, and lift                             Japan and ADB are supporting moves to strengthen higher education in the lao people’s Democratic Republic

8                       November 2008
ADB Photo Library

               There is now growing concern that drug use—bringing with it Hiv/AiDS infections—could spread rapidly through the provinces

               Cambodia Braced for Upsurge in HIV
               from Injecting Drug Use
             Just 4 years after the first case was reported, injecting drug use accounted for almost
             10% of the total drug use in the streets of phnom penh
               Before 2000, injecting drug users were unknown              Kampong Speu. “We have seen the needles and                      “I used yamato to keep me awake to work, to
               in Cambodia. But just four years after the first            syringes next to the road.”                                 stop feeling hungry, and to feel better,” he recalls.
               case was reported that year by local NGO Mith                    Friends-International, an NGO partner                  But he couldn’t stop. “I had to keep taking it. If I
               Samlanh, injecting drug use accounted for                   of Mith Samlanh, is implementing an ADB                     didn’t, my skin would crawl like snakes, I would
               almost 10% of the total drug use in the streets             financed project, NGO Initiatives to Prevent                get a pain in my gut, and feel very sad. The yama
               of Phnom Penh.                                              HIV/AIDS in Asia and the Pacific in the                     was my medicine to stop these things.”
                   There is now growing concern that drug                  country. Friends-International is collaborating                  As he became sicker, Nol went to a DSAVY
               use—bringing with it HIV/AIDS infections—                   with seven local NGOs across Cambodia,                      day center. It then referred him to a clinic in
               could spread rapidly through the provinces,                 and with DSAVY officers of two provinces—                   Phnom Penh for treatment. His withdrawal days
               unless the population is informed and prepared              Kampong Speu and Kratie.                                    at the Green House drug treatment center run by
               to combat the twin threat.                                       The collaboration involves training the officers       Mith Samlanh were tough. He remembers: “It
                   There are no official figures in Cambodia               to implement projects, developing awareness about           was very hard. I got sick and crazy in my mind,
               on the extent of drug use, but local and foreign            the linkage between drug use and HIV/AIDS,                  but people helped me and I got clean.”
               NGOs estimate there are between 2,000 and                   setting up day centers to care for vulnerable children           After 10 weeks of detoxification, he was offered
               2,500 injecting heroin users. These are mostly in           and youth, and establishing outreach services.              training as an electrician. He needs to continue his
               Phnom Penh. But some cases have been reported                    The training, says the DSAVY officer from              education for another year. Meanwhile, the DSAVY
               in Siem Reap, a popular tourist destination, and            Kampong Speu, will enable the officers to start             helped him reconcile with his estranged family.
               nearby Kampong Cham, neighboring the capital                running “when the first smoke appears,” and not                  Nol is now drug free and goes home to visit
               and heavily populated.                                      wait to “fight a bigger fire” later.                        his folks twice a month, usually accompanied
                   The agencies estimate HIV infection rates                                                                           by a friend from the DSAVY office because he
               to be running at between 20% and 30%, with                  The Hard Road to Recovery                                   always felt nervous.
               the drug injections presumed to be a major                  One example of a little smoke the NGOs have                      “I don’t feel sick now, I feel strong,” he
               driver.                                                     put out before it becomes a big fire is the case of         remarks. Often he flashes back to his yama-
                   Anecdotal evidence suggests that drug use               19-year-old Nol, a street kid in Kampong Speu               addiction days. But, he concludes, “I am reminded
               and HIV is traveling fast with a commuting                  who was addicted to smoking methamphetamine                 how sick I was before, and on the streets. I don’t
               population traveling from Phnom Penh up                     or “yama” in the local dialect.                             want to go back there.” n
               north to Siem Reap, Battambang, and the Thai
                   “We have seen evidence that people have                         We have seen evidence that people have stopped
               stopped in our town and injected drugs,” says
               a team leader from the Department of Social                    in our town and injected drugs
               Affairs, Veterans and Youth (DSAVY) in

                                                                                                                                                 November 2008                            9

               ADB Supports Innovative Project                                                                                     set up a joint venture company for the Dagachhu
                                                                                                                                   project, which will serve as a showcase for public-

               for Cross-Border Power Trade, Rural                                                                                 private partnerships, leading to increased foreign
                                                                                                                                   direct investments in energy development and a

               Electrification in Bhutan                                                                                           reduced state debt burden.
                                                                                                                                        The rural electrification initiative will receive
                                                                                                                                   an ADB grant of $25.2 million, $6.7 million
                                                                                                                                   from the Government and $1 million from the
                                                                                                                                   Asian Clean Energy Fund, subject to Japanese
                                                                                                                                   Government’s approval. The Asian Clean
                                                                                                                                   Energy Fund is administered by the Clean
                                                                                                                                   Energy Financing Partnership Facility, set up
                                                                                                                                   by ADB and development partners to support
                                                                                                                                   clean energy projects.
                                                                                                                                        The project is also expected to install over
                                                                                                                                   100 solar power systems generating energy for
                                                                                                                                   off-grid rural users including schools, health
                                                                                                                                   clinics and other community facilities in isolated
                                                                                                                                   remote areas.
                                                                                                                                        Additional assistance to help build the
                                                                                                                                   capacity of power sector agencies involved
                                                                                                                                   in the project is also being provided, with
                                                                                                                                   ADB’s Regional Cooperation and Integration
Takeshi Takahara

                                                                                                                                   Fund granting $888,000 and ADB’s technical
                                                                                                                                   assistance funding program providing $600,000.
                                                                                                                                   The Austrian Government, which is one of the
               The rural electrification initiative will receive an ADB grant of $25.2 million                                     major proponents of the project, will support
                                                                                                                                   engineering implementation of Dagachhu
               MANILA—ADB is supporting an innovative                       regional trade in clean energy and reduce              hydropower development.
               power project in Bhutan that will produce clean              pollution,” says Kaoru Ogino, Energy Specialist             Bhutan—the only South Asian country with
               energy for export to India and increase electric-            with ADB’s South Asia Department.                      surplus energy available for export—has large
               ity coverage in rural areas where the bulk of the                The project is seeking a Clean Development         reserves of untapped hydropower resources.
               poor live.                                                   Mechanism (CDM) status on a cross-border               While it exports the bulk of its power supply, most
                    The Green Power Development Project—                    basis. By replacing fossil fuels currently used by     of its rural dwellers still do not have electricity.
               which includes Bhutan’s first public-private                 power companies in India, the project will help        The Government uses some of its royalty
               partnership for an infrastructure project—will               cut greenhouse gases and entitle the operators         revenues from power exports to cross-subsidize
               help tap the country’s underutilized hydropower              to carbon emission credits that can be sold for        electricity prices for poorer customers, while
               resources, increase government revenues                      additional revenue. The governments of Bhutan          the rest goes for development needs including
               for development spending, and improve the                    and India have already approved the project’s          infrastructure, health and education.
               standard of living for nearly 9,000 rural power              CDM eligibility.                                            The Government is aiming for 100% electricity
               consumers.                                                       The Dagachhu power plant will cost                 coverage by 2013. It also has forged an agreement
                    It will also help promote clean energy                  $201.5 million to be split 60:40 between debt and      with India to raise generating capacity to
               development, foster cross-border cooperation,                equity. ADB will provide a 30-year, $51 million loan   10,000 MW by 2020, with the power available for
               and provide a potential model for future private             from its ordinary capital resources and a 32-year,     export. Bhutan currently has installed capacity
               investments in the sector.                                   $29 million loan from the Asian Development            of 1,500 MW.
                    The project will help finance the construction          Fund. Additional financing of $55.5 million is              “Accelerating the development of hydropower
               of the 114-megawatt (MW) Dagachhu hydropower                 expected from the Austrian government export           for export will generate more revenue that will
               plant that will generate 500,000 megawatt-                   credit agency, OeKB, along with $45 million from       enable the Government to continue providing
               hours of power annually, mostly for export to                the Government and its company and fund, and           cross-subsidies to maintain low-cost supply to
               India. It will also support a rural electrification          $21 million from India’s Tata Power Company.           rural customers, making the power industry
               program that will provide electricity to domestic                The state-owned Druk Green Power Corp.,            environmentally, economically and financially
               households and businesses in remote regions of               Bhutan and Tata Power Company, India have              sustainable,” says Mr. Ogino. n
               the country using renewable energy sources of
               hydropower and solar power.
                    “Expanding generating capacity for the                          Bhutan—the only South Asian country with
               export of clean power and increasing rural access
               to electricity will enhance energy and social                   surplus energy available for export—has large
               security. It will provide the Government a long-                reserves of untapped hydropower resources
               term revenue stream to finance its development
               needs and to cut poverty. It will help stimulate

               10                       November 2008

            ADB Reinforces Support for Urban
            Development in Bangladesh
                                                                                                                             and solid waste collection are either minimal or
                                                                                                                             non-existent and management is weak with little
                                                                                                                             citizen participation, especially from women and
                                                                                                                             the poor. There is little or no planning for future
                                                                                                                             developments. Bangladesh’s urban dwellers are
                                                                                                                             expected to double by 2035, making up 40% of
                                                                                                                             the country’s total population.
                                                                                                                                  By linking financial help to governance
                                                                                                                             change, ADB will be providing an incentive
                                                                                                                             for town leaders to reform their governance
                                                                                                                             procedures and engage people who were previously
                                                                                                                             excluded from the decision-making process. The
                                                                                                                             amount of funds to be allocated to each town will
                                                                                                                             depend on progress made on reforms.
Richie Abrina

                                                                                                                                  Each participating town will have to use at
                                                                                                                             least 5% of their allocated funds to improve basic
                                                                                                                             services in slum areas, while gender action plans
            The project expects increases in income, employment, and land values                                             will be established to ensure women are fully
                                                                                                                             involved in governance and planning process.
            MANILA—ADB is providing additional funds to                  ongoing Urban Governance and Infrastructure              The project expects increases in income,
            improve the basic services and infrastructure in             Improvement (Sector) Project, which found           employment, and land values in all participating
            small- and medium-sized towns of Bangladesh.                 that improvements to urban infrastructure and       towns by 2015, with 60% of residents in targeted
                As many as 3.8 million people are expected to            services are more effective and lasting when they   slums to have access to improved services.
            benefit from the Second Urban Governance and                 are tied to governance reforms.                          G e r ma n d evel op me nt i n s t it ut i o n s ,
            Infrastructure Improvement (Sector) Project,                      “Good governance is a critical factor in       Gesellschaft für Technische Zusammenarbeit
            which will expand access to and delivery of water,           encouraging economic growth and reducing            (GTZ) and Kreditanstalt für Wiederaufbau
            sanitation, solid waste management, and other                poverty. The performance criteria linked to the     (KfW), will provide cofinancing equivalent to
            urban services in an initial 35 targeted towns,              fund allocation emphasize citizen participation,    $4.7 million and $36.1 million, respectively.
            including slum areas. More towns will be included            urban planning and financial management and         The Government of Bangladesh will provide an
            as the project is implemented.                               this participatory approach makes elected leaders   additional $31.7 million. The towns involved in the
                The $87 million loan, sourced from ADB’s                 and town officials more accountable to the public   project will supply the equivalent of $7.3 million,
            Special Funds, will be released in phases. The               and transparent in their use of resources,” says    and the beneficiaries an additional $700,000.
            fund disbursements to each town are linked to                Masayuki Tachiiri, an Urban Economist with               The project will be carried out from 2009 to
            governance reform and improvement in urban                   ADB’s South Asia Department.                        2014 in three phases with the Government, ADB,
            services.                                                         Services in urban areas currently fall well    GTZ and KfW jointly reviewing progress at least
                The project draws on lessons from the                    short of public requirements. Water, sewerage,      twice a year. n

            ADB Helping PRC Prepare Framework                                                                                maintaining human health and welfare, the
                                                                                                                             safety of the environment, and economic growth.

            for Water Resources Management                                                                                   The challenge is not only how to manage a
                                                                                                                             declining resource but also how to respond to
                                                                                                                             its scarcity and the mismatch between supply
            MANILA—ADB is helping the People’s Republic                      With an effective allocation system, water      and demand,” says Yaozhou Zhou, Water
            of China (PRC) prepare a framework for                       can be distributed equally among regions and        Resources Management specialist of ADB’s
            managing the allocation of water resources to                users, and priority areas identified during         East Asia Department, “An effective water
            meet the needs of a growing population and a                 periods of scarcity. Rules will also be put in      allocation system will promote river basin and
            rapidly expanding economy.                                   place for sharing limited water resources while     water security, stability, and prosperity at local
                ADB will provide a $500,000 grant for the                preserving the environment for sustainable          and national levels.”
            project from its technical assistance program. The           development.                                             Populat ion grow t h, rapid economic
            Multi-Donor Trust Fund of the Water Financing                    The new framework will protect water            development, and the absence of a clear
            Partnership Facility managed by ADB will extend              resources from over-exploitation. It will also      framework to govern water rights and allocation
            a $250,000 grant. The fund is backed by the                  incorporate measures to accommodate new             have increased water use and competition among
            governments of Australia, Austria, and Norway. The           users while protecting existing ones.               users, depleting supply and worsening water
            PRC will allot $200,000 to complete the funding.                 “Water resources play a central role in         pollution. n

                                                                                                                                       November 2008                            11

       ADB Targets Coordinated Water                                                                                       their shared water systems has been a key
                                                                                                                           constraint that threatens to undermine the

       Management in Central Asian Nations                                                                                 region’s development.
                                                                                                                                “The lack of regional cooperation on water
                                                                                                                           resources poses a major threat to economic
                                                                                                                           integration and growth in Central Asia,” says
                                                                                                                           Thomas Panella, Senior Water Resources
                                                                                                                           Management Specialist with ADB’s Central and
                                                                                                                           West Asia Department.
                                                                                                                                ADB has approved a $998,000 regional
                                                                                                                           technical assistance grant, which will be used to
                                                                                                                           support knowledge-sharing on water resources
                                                                                                                           in the region and strengthen the capacity of
                                                                                                                           institutions tasked with managing them.
                                                                                                                                The grant came from a multidonor trust
                                                                                                                           fund under an ADB-administered Water
                                                                                                                           Financing Partnership Facility. The Trust Fund
                                                                                                                           contributors are the governments of Australia,
                                                                                                                           Austria, and Norway.
                                                                                                                                The assistance will involve regional initiatives
                                                                                                                           covering the Amu Darya and Syr Darya river
Ian Gill

                                                                                                                           basins and the Chu and Talas river basins, as
       The lack of regional cooperation on water resources poses a major threat to economic integration and                well as help establish a forum for exchanging
       growth in Central Asia
                                                                                                                           ideas and developing future action plans.
                                                                                                                                The project builds on previous ADB
       MANILA—ADB is aiming to enhance regional               and potential. A lack of cooperation among                   technical assistance from 2004 to 2007 that
       cooperation on vital Central Asian waterways           the Central Asian countries—Afghanistan,                     helped initiate regional water policy dialogues
       whose management and protection are crucial            Kazakhstan, Kyrgyz Republic, Tajikistan,                     and the development of water management
       to the region’s economic growth and social             Turkmenistan, and Uzbekistan—in managing                     capacity. n
           The Syr Darya and Amu Darya rivers, which
       criss-cross a large part of Central Asia, support
       most of the agricultural output in the Aral Sea                  The assistance will involve regional initiatives
       basin and have significant hydropower capacity

       ADB Supports Expressway Projects
       in Viet Nam to Boost Economic Growth
       MANILA—ADB is financing preparations for               economic exchanges, as well as reducing
       three expressway projects in Viet Nam that             poverty and increasing livelihood opportunities
       will support sustainable economic growth and           in the project areas,” says Yasushi Tanaka, a
       enhance socioeconomic development in the               Transport Specialist with ADB’s Southeast
       project areas.                                         Asia Department.
           The two expressways will connect Ha Noi                To lay the groundwork for the projects,
       and Lang Son, and Ha Long and Mong Cai in the          ADB will provide a $26 million technical
       northeastern region of Viet Nam (Greater Mekong        assistance loan in special drawing rights. In
       Subregion [GMS] Eastern Corridor). They are            addition, ADB will provide a separate grant
       expected to strengthen economic ties with the          of $1.5 million for a feasibility study on the
       People’s Republic of China (PRC), especially the       section of the GMS Eastern Corridor, and a
       Guangxi Zhuang Autonomous Region.                      $1.5 million grant from its Japan Special Fund
           The other expressway will connect Ben              for a feasibility study on the expressway of the
       Luc and Long Thanh in the southern region of           GMS Southern Corridor.
       Viet Nam (GMS Southern Corridor). This will                The ADB loan funds will be used to draw up
       boost economic activities in the greater Ho Chi        detailed designs so the expressways are built to
                                                                                                                  Eric Sales

       Minh City area.                                        high technical and safety standards, and to build
           “The expressways will reduce travel costs          up the capacity and management expertise of
       and improve road safety; and ultimately support        the Viet Nam Expressway Corporation, which                   The expressways will reduce travel costs and improve
       sustainable economic growth and enhanced               will implement the projects. n                               road safety

       12                     November 2008

ADB to Help India‘s Himachal Pradesh Become
‘Hydropower State’ Via Multitranche Loan
MANILA—ADB is helping Himachal Pradesh
become India’s “hydropower state” through an
$800 million multitranche financing facility.
    The 8-year loan package will help finance the
construction of several run-of-river hydropower
generating plants that will bring in combined
capacity of 808 megawatts (MW) for the small
mountainous state.
    Himachal Pradesh has abundant water
resources, with five major rivers flowing from
the western Himalayas. Its power generation
potential is 20,415 MW—about 25% of India’s
                                                      Rollie Del Rosario

total hydropower potential—out of which only
6,150 MW has been developed.
    Recognizing the state’s comparative
advantage, the state government in 2006 approved                      Himachal pradesh has abundant water resources, with five major rivers flowing from the western Himalayas
a Hydro Power Policy that aims to make Himachal
Pradesh the “hydropower state” of India.                                   The projects will provide affordable and                finance $450 million for the projects, and the
    “Himachal Pradesh’s focus on hydropower                           reliable power supply to local residents and                 remaining $250 million will be financed by other
development will provide jobs to state residents                      industrial users in the state. Any excess supply             financial institutions.
and will further the state’s and the country’s goal                   can be exported to other parts of India.                          Aside from infrastructure projects, the loan
of maximizing this clean, indigenous resource                              At present, ADB and Himachal Pradesh                    also has a training component to help state-owned
to help meet its energy needs,” says Andrew                           government have identified two projects ready                Himachal Pradesh Power Corp. prepare future
Jeffries, an Energy Economist at ADB’s South                          for financing through the first loan tranche of              projects, implement approved projects, and monitor
Asia Department.                                                      $150 million—the construction of the 111-MW                  program and project implementation. Training will
    The multitranche financing facility allows                        Sawra Kuddu Hydroelectric Project on the                     also broaden their functional expertise as the state’s
ADB to engage the state government in a                               Pabber river in Shimla district, and civil works             power generating company.
continuous long-term dialogue on its clean energy                     for the 65-MW Kashang I Hydroelectric Project                     The multitranche financing facility will be
policies. It provides multiple loans to support a                     located in Kinnaur district. The loan has a 25-year          sourced from ADB’s ordinary capital resources,
range of projects under the state’s clean energy                      repayment period.                                            with final terms and conditions to be established
development program. The loans will be allocated                           The overall estimated cost of all projects is           under individual loan agreements based on
based on the readiness of the project.                                about $1.5 billion. The state government will                prevailing ADB policies. n

ADB to Help Nepal Improve Local Governance,                                                                                        administering safety nets and social assistance
                                                                                                                                   programs to the poorest people; budgeting grants
Community-Led Development                                                                                                          to education, health, and agriculture sectors; and
                                                                                                                                   testing coordination with other districts.
MANILA—ADB is helping Nepal improve                                   community organizations,” says Gambhir                            The overall program is estimated to cost
local governance and promote community                                Bhatta, senior governance specialist at the South            $470 million, with the Nepal Government
development through a program grant of                                Asia Department. “In the medium term, this is                contributing $260.8 million. The rest will come from
$106.3 million.                                                       expected to bring good local governance, and                 other development partners, such as the Canadian
     The grant, which will be disbursed in three                      ultimately, inclusive development.”                          International Development Agency (which
tranches, will support the active engagement of                           The program will increase the involvement                will provide its support through a cofinancing
communities in local governance and improve                           of women, as well as caste, ethnic, and minority             arrangement with ADB), United Kingdom’s
resource management and service delivery by                           groups in the local governance process.                      Department for International Development, the
local government agencies.                                                The program will also undertake new ways                 Swiss Agency for Development and Cooperation,
     The post-conflict Nepal Government is                            of monitoring local finances by incorporating                the governments of Denmark and Norway, and
moving towards a federal form of government,                          gender equality and social inclusion indicators;             several United Nations agencies. n
with the Three-Year Interim Plan (FY2008–2010)
calling for decentralization as the main means
for good governance.                                                           The program will increase the involvement
     “The grant will support the Government’s
move to improve local service delivery through                             of women
strong local bodies and engaged and strong

                                                                                                                                             November 2008                           13

     New Publications                                                                            UPCOMING EVENTS
                                                                                                 November 2008
                              Navigating the Global Storm - A Policy Brief on the
                              Global Financial Crisis
                                                                                                 Regional Meeting on Hydro-informatics
                              The global financial crisis emerged at an alarming rate. A
                              global credit squeeze led to large falls in international stock    and Developing knowledge Hub
                              markets and the world economy is weakening rapidly. The            Networks
                              pacific is largely shielded from the most immediate effects        Zhengzhou, people's Republic of China
                              of the crisis, but it is not immune. This policy brief provides
                              early advice on what the global financial crisis could mean for    Contact:
                              the pacific and what it could do to lessen its adverse impacts.    Wouter lincklaen Arriens
                              The key response should be to reinvigorate structural reform,      lead Water Resources Specialist
                              which is crucial to achieving sustained economic growth.
                                                                                                 Tel +63 2 632 6754
                              Access to Energy for the Poor - an Asia-Pacific          
                              Regional Initiative
                              in support of its poverty alleviation mandate, ADB is committed    16–17
                              to increasing access to clean and affordable energy for people     2nd National Conference of Small
                              throughout Asia and the pacific, particularly the poor. ADB's      Water Service providers
                              Energy policy, approved in 1995, emphasizes the acceleration of    Cebu City, philippines
                              the widespread application of clean/cleaner/ renewable energy
                              and energy efficiency in its developing member countries.
                                                                                                 Ellen pascua
                                                                                                 Water Fund Manager, Cooperation
                                                                                                 Fund for the Water Sector
     Economic Analysis Retrospective 2007: Strengthening the Quality of
     Project Economic Analysis in ADB Operations                                       
     This report is the sixth in an annual series of economic analysis retrospectives prepared
     by the Economics and Research Department of ADB. The retrospectives aim to                  16–17
     promote the use of rigorous economic analysis by ADB staff in formulating country           Asian EXiM Banks Forum:
     partnership strategies and designing projects to ensure quality-at-entry and achieve        Changing Business landscape
     greater aid effectiveness. This report assesses the quality of economic analysis of         Auditorium Zone A, ADB Headquarters
     ADB’s public sector investment projects approved in 2006 and 2007. it is intended to
     be a reference for ADB staff and consultants involved in preparing feasibility studies
     and economic analysis for investment projects.
                                                                                                 Ma. Josefina Fuellas
     East Asia Department Knowledge Management Initiatives in 2007                               Senior Cofinancing Assistant
     This compendium of knowledge products represents the results of the active knowledge        Tel +63 2 632 6153
     management campaign taken by the East Asia Department in 2006–2007. it contains             Fax +63 2 636 2456
     abstracts from 27 key knowledge products completed in 2007.                       

     Transforming Tonga: A Private Sector Assessment                                             Roland pladet
     The current momentum and appetite for change bring the opportunity for Tonga to             Senior Guarantees and Syndications
     become one of the more advanced reformers among pacific island countries. This
     private sector assessment provides a framework for private sector–oriented reform
     that will help improve the Tongan business environment, making it a more attractive         Tel +63 2 632 6918
     and profitable place to invest in, and allowing it to create jobs and bring prosperity      Fax +63 2 636 2456
     throughout the nation.                                                            

     ADBI Working Paper: Sources of FDI Flows to Developing Asia:                                27–29
     The Roles of Distance and Time Zones                                                        Sanitation and Water Conference 2008:
     This paper investigates sources and determinants of foreign direct investment (FDi)         Meeting the Challenge in East Asia and
     flows to developing Asia using bilateral FDi flows for 1990–2005.
                                                                                                 the pacific
                                                                                                 Melbourne, Australia
     ADBI Working Paper: No Through Road: The Limitations of Food Miles
     The concept of food miles is flawed because it ignores the costs of production, the
     mode and scale of transport, and the importance of other inputs such as capital and
     labor. Nonetheless, the notion has become popular recently with the rise in the costs
     of both food and transport.
                                                                                                 For more information, visit
     For more information, visit

14                   November 2008

  Business Opportunities
  The proposed ADB projects below offer business opportunities for contractors, consultants, and investors:

 Agriculture and Natural Resources                                       Transport and Communications                         Regional
 •	 Bangladesh,	AOTA:	Developing	                                         •	 China,	People’s	Republic	of,	AOTA:	              •	 Regional	Public	Goods	for	Health:	
    innovative Approaches to                                                  Railway Sector Energy Efficiency                   Combating Dengue in ASEAN
    Management of Major irrigation                                            Strategy (piggybacked to lanzhou-               •	 Quantifying	the	Costs	and	Benefits	of	
    Systems                                                                   Chongqing Railway)                                 Regional Economic integration in Asia
 •	 Bangladesh,	PPTA:	Crop	Diversification	                               •	 China,	People’s	Republic	of,	PPTA:	              Multisector
    ii                                                                       Chongqing-Guiyang Railway                        •	 China,	People’s	Republic	of,	Loan:	
 Energy                                                                      Development project                                 Shanxi Small Cities and Towns
 •	 Bangladesh,	AOTA:	Supporting	                                        Water Supply, Sanitation & Waste                        Development Demonstration Sector
    National Climate Change Action plan                                  Management                                              project
 •	 Bangladesh,	PPTA:	Power	System	                                      •	 China,	People’s	Republic	of,	PPTA:	               •	 Indonesia,	AOTA:	Institutional	
    Efficiency improvement                                                   Wuhan Urban Environmental                           Strengthening for integrated Water
 Industry and Trade                                                          improvement project                                 Resources Management in the 6 Ci's
 Bangladesh, ppTA: SME Sector                                            •	 Pakistan,	AOTA:	Improving	Efficiency	                River Basin Territory
 Development program ii                                                      and public Accountability of North
                                                                             Sindh Urban Services Corporation                 Regional
 Law, Economic Management and                                                                                                 •	 Accelerating	the	Implementation	of	
 Public Policy                                                           Multisector                                             the Core Agriculture Support program
 •	 Cambodia,	AOTA:	Capacity	Building	                                   •	 Bangladesh,	PPTA:	Preparing	the	City	             •	 South	Asian	Bond	Markets	
    for National Economic policy Analysis                                   Region Development project                           Conference
    and Development Management,                                          •	 China,	People’s	Republic	of,	Loan:	               •	 Strengthening	Governance	and	
    phase iii                                                               Shanxi Small Cities and Towns                        Accountability in the pacific islands
 •	 Indonesia,	AOTA:	Social	Security	                                       Development Demonstration Sector                     Countries, phase ii
    Reform and Economic Modeling                                            project
    Capacity Building                                                                                                         For more information, visit www.adb.

AOTA=advisory and operational technical assistance, PPTA=project preparatory technical assistance.

 Career Opportunities                                                                                •	 coordinating	the	CRP's	activities,	to	the	extent	appropriate,	with	
                                                                                                        those of the compliance review mechanism of any other cofinancing
                                                                                                        institution conducting a separate compliance review of the same
 Chair, Compliance Review Panel (CRP)
                                                                                                     •	 conducting	thorough	and	objective	reviews	of	policy	compliance;	
 Headquarters, Manila
                                                                                                     •	 consulting	with	Management	and	staff,	the	requester,	the	EA/DMC	
                                                                                                        government or the ppS, and the Board member representing the
 Reporting Arrangement
                                                                                                        country concerned, on the CRp's preliminary findings and
 The CRp reports directly to the Board of Directors, including post
 compliance review monitoring and its outcome, except on specific
                                                                                                     •	 issuing	draft	reports	to	Management	and	requesters	that	include	
 activities for which the CRp reports to the Board Compliance Review
                                                                                                        findings and recommendations on policy compliance;
 Committee (BCRC).
                                                                                                     •	 issuing	final	reports	to	the	Board	of	Directors	with	CRP's	findings	
                                                                                                        and recommendations;
 Role of the Compliance Review Panel
                                                                                                     •	 monitoring	 implementation	 of	 decisions	 made	 by	 the	 Board	 of	
 The CRp investigates alleged violations by ADB of its operational policies
 and procedures in any ADB-assisted project that directly, materially,
                                                                                                     •	 issuing	annual	reports	that	provide	advice	based	on	lessons	learned	
 and adversely affect local people in the course of the formulation,
                                                                                                        from past cases;
 processing, or implementation of the ADB-assisted project. Specific
                                                                                                     •	 developing	a	roster	of	independent	technical	experts	who	can	assist	
 responsibilities include
                                                                                                        the CRp in carrying out its work; and
 •	 receiving	and	determining	the	eligibility	of	requests	for	compliance	
                                                                                                     •	 liaising	with	accountability	mechanisms	at	other	institutions
 •	 engaging	with	all	stakeholders,	including	Management	and	staff,	
                                                                                                     Deadline: 18 November
    requesters, executing agencies (EA)/governments of developing
    member countries or private project sponsors (ppS), and the Board
    member representing the country concerned, to obtain a thorough                                  For more career opportunities and information,
    understanding of the issues during the compliance review;                                        visit

                                                                                                                                        November 2008                          15

                                             Operations Updates, 2008*
Volume 40, Number 11 • November 2008
                                             Sovereign Lending
publisher: Ann Quon                          ADB has approved this year 49 loans to 14 developing member countries totaling $5.37 billion.
Editorial Adviser: Carolyn D. Cabrera        Approved loans from ADB’s ordinary capital resources (OCR) total $4.36 billion, while
Editor: Graham Dwyer                         $1.01 billion came from ADB’s concessional Asian Development Fund (ADF). About 29% of
                                             the loans went to transport and communications projects, 24% to energy projects, 20% to
Associate Editor: Wickie Mercado-Baguisi
                                             multisector projects, 16% to law, economic management and public policy projects, 4% to
layout Artist: Ronnie R. Elefaño
                                             agriculture and natural resources projects, 3% to industry and trade projects, 2% to education
                                             projects and 1% to water supply, sanitation, and waste management projects.
ADB Review provides a monthly
electronic digest of activities of           Nonsovereign Operations
the Asian Development Bank.                  ADB has approved 13 nonsovereign projects worth $2,279.66 million.

Opinions and materials in ADB Review do      Grants
not necessarily reflect the official views   ADB has approved 32 grant-financed projects totaling $313.84 million, 123 country technical
of ADB. Materials may be reprinted with      assistance projects worth $97.52 million, and 74 regional technical assistance projects totaling
credit given to ADB Review.                  $89.71 million.

Comments may be e-mailed to                  Recipients of ADB Loans,                                       Source of ADB Loans, 2008                              2008 ($ million)                                                                                 Asian
                                             Country             Amount              ADF     OCR                                              Fund
To subscribe, send an e-mail to              Azerbaijan           215.40             –      215.40                                             19%; fax a message to             Bangladesh           592.00           510.00    82.00
+63 2 636 2648; or write to                  Bhutan                80.00            29.00    51.00
ADB Review, Department of External           Cambodia              23.50            23.50     –
                                             PRC                  648.00             –      648.00          Ordinary
Relations, Asian Development Bank,                                                                           Capital
6 ADB Avenue, Mandaluyong City,              Georgia               40.00            40.00     –             Resources
1550 Metro Manila, philippines.              India              1,745.85             –    1,745.85            81%
                                             Indonesia            130.00           130.00     –
                                             Maldives               7.50             7.50     –
For the web version, go to
                                             Pakistan             833.00           236.00   597.00         Source of Grant-Financed
                                             Philippines          320.00             –      320.00         Projects, 2008 ($ million)
                                             Samoa                  2.78             2.78     –
                                                                                                            ADF                                   257.92
                                             Sri Lanka             90.00             –       90.00
                                                                                                            ATF/PEF                                 0.00
ISSN:0118-8674                               Viet Nam             642.20            36.00       606.20      Other Sources                          55.92
                                             Total              5,370.23 1,014.78 4,355.45                  Total                                 313.84

  ADB Online
                                             PRC=People's Republic of China.

                                             Source of Country Technical                                   Source of Regional Technical
                                             Assistance Grants, 2008                                       Assistance Grants, 2008                                ($ million)                                                   ($ million)
                                             ADB-funded                                     43.53           ADB-funded                             31.90
  n To read ADB Review online, go to         Japan Special Fund                             31.11           Japan Special Fund                     11.70                       RCIF                                            1.54           RCIF                                    6.92
                                             Other Sources                                  21.35           Other Sources                          39.19
  n For information, send an e-mail to
                                             Total                                          97.52           Total                                  89.71 or go to                              Nonsovereign Operations, 2008 ($ million)
                                                                                                                                 political Risk
  n To explore business opportunities with   Sector                                     Equity           loan        Total        Guarantee          B-loan
    ADB, go to         Energy                                    100.00        1,099.08       1,199.08         90.00           200.00
                                             Finance                                    23.08             82.50      105.58            –             225.00
  n For publications, go to     Transport and Communications                   –            250.00      250.00            –             140.00
    publications                             Multisector                                    –             60.00         60.00        10.00             –
                                             Total                                     123.08        1,391.58       1,514.66       100.00            425.00
  n For the latest news, go to
                                             * As of 31 October 2008.
                                             Totals may not add due to rounding.

16                  November 2008

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