$6.5 billion initial response to COVID-19 pandemic

The ADB is extending its COVID-19 response with a new financing package

The initial package includes approximately $3.6 billion in sovereign operations for a range of responses to the health and economic consequences of the pandemic and $1.6 billion in non-sovereign operations for micro-, small-, and medium-sized enterprises, domestic and regional trade, and firms directly impacted. The ADB will also mobilise about $1 billion in concessional resources through reallocations from ongoing projects and assessing possible needs for contingencies. It will also make available $40 million in technical assistance and quick-disbursing grants.

"This pandemic has become a major global crisis. It requires forceful action at national, regional, and global levels,” said ADB president Masatsugu Asakawa. “With our developing member countries (DMCs), we are formulating an aggressive set of actions to combat the pandemic; to protect the poor, the vulnerable, and wider populations across the region; and to ensure economies will rebound as swiftly as possible. Based on close dialogues with our members and peer institutions, we are deploying this $6.5 billion rescue package to meet the immediate needs of our members.”

Asakawa stressed that, “The ADB stands ready to provide further financial assistance and policy advice down the road whenever the situation warrants, on top of the $6.5 billion package.”

To provide the support package to DMCs as quickly and flexibly as possible, the ADB will seek adjustments in its financing instruments and business processes, including faster access to emergency budget support for economies facing severe fiscal constraints, streamlined procedures for policy-based lending, and universal procurement with flexible and faster processes.

The pandemic demands a co-ordinated response and strong collaboration among countries and organisations. The ADB will further strengthen its close collaboration with the International Monetary Fund, the World Bank, regional development banks, the World Health Organization, and major bilateral funding agencies including the Japan International Cooperation Agency, as well as the US Centers for Disease Control and private sector organisations to ensure the effective implementation of its COVID-19 response.

Since its first COVID-19 response on February 7, 2020, the ADB has already provided more than $225 million to meet the urgent needs of both governments and businesses in DMCs. The ADB’s COVID-19 response to date includes:

• February 7, 2020: A $2 million grant to enhance infectious disease prevention, detection, and response in the People’s Republic of China (PRC) and the Greater Mekong Subregion (GMS);

• January 27 to February 17, 2020: $1.5 million in loan savings from the ongoing GMS Health Security Project allocated to procure essential equipment for detection and personal protection;

• February 25, 2020: A CNY130 million ($18.6 million) private sector loan to a Wuhan, PRC-based pharmaceutical distributor to enable the continued supply of essential medicines and personal protective equipment;

• February 26, 2020: A second grant window was established with an initial $2 million allocation to help DMCs contain COVID-19 and improve resilience. Additional financing is being mobilised for this grant window;

• March 12, 2020: $200 million made available through the ADB’s Supply Chain Finance Program for companies manufacturing and distributing medicines and other items needed to combat COVID-19. Through its partner financial institutions, the ADB can provide essential working capital to such companies;

• March 13, 2020: A $3 million grant to support the Philippine government’s response to COVID-19, including the purchase of emergency medical supplies and the delivery of effective healthcare services;

• March 13, 2020: A $600,000 grant from the Health System Enhancement Project to finance preventive and response efforts in Sri Lanka, including disease surveillance and the provision of medical supplies and equipment;

• March 13, 2020: $100,000 was reallocated from the Tajikistan Maternal and Child Health Integrated Care Project to finance COVID-19 prevention and mitigation, medical supplies, and equipment;

• March 18, 2020: $1.4 million was reallocated from the Fifth Health Sector Development Project in Mongolia to procure essential medical equipment for early detection, emergency care, and management of severe respiratory diseases. The ADB also approved a $225,000 small-scale technical assistance to strengthen Mongolia’s national capacity for infection prevention and control.

The financial instruments that provided the above measures are available for all ADB DMCs.