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Statement at the 48th Annual Meeting of the ADB (Baku, Azerbaijan / May 4, 2015)

Statement by the Honorable Taro Aso
Deputy Prime Minister of Japan and ADB Governor for Japan
at the Forty-Eighth Annual Meeting of the Board of Governors of
the Asian Development Bank
(Baku, Azerbaijan, May 4, 2015)

Introduction
Mr. Chairman of the Board of Governors, Mr. President, Governors, and Distinguished Guests:

I would like to express my sincere gratitude to the Government of Azerbaijan and the citizens of Baku for their warm welcome.

Before I begin, I would like to offer my deepest condolences to all those affected by the earthquake in Nepal, which caused serious damages including massive casualties. Japan has dispatched the Japan Disaster Relief Team and provided emergency relief goods. In addition, Japan will provide an Emergency Grant Aid worth 14 million US dollars. And, we are committed to providing further assistance for recovery and reconstruction in a seamless manner based on the needs of the affected areas in close collaboration with the international community. In this regard, Japan is willing to jointly organize a conference to support Nepal for the upcoming recovery and reconstruction phase in close cooperation with the ADB and other interested development partners, provided that Nepal welcomes such an initiative. I wish for the earliest recovery.

The ADB has so far supported Asia as the development bank of this region, and I am firmly convinced that the ADB will play an even larger role for Asia’s development.

Today, I would like to share my thoughts on the ADB’s assistance in Asia towards its sustainable and inclusive development as well as Japan’s efforts for supporting the ADB.

Enhancing lending capacity and strengthening organizational functions of the ADB
The ADB has been implementing various measures to address Asia’s huge financing needs.
First, the ADB has decided to combine the resources of the Asian Development Fund (ADF) with the Ordinary Capital Resources (OCR). I strongly supported this innovative idea from the very initial concept stage. Once again, I appreciate President Nakao for his efforts to make this happen.

The ADF-OCR Combination enables the ADB to efficiently utilize the existing resources to effectively meet Asia’s enormous needs. I see it as one of most innovative initiatives in the history of not only the ADB, but also the entire Multilateral Development Banks.

Second, the ADB intends to reinforce support for private sector development. The dynamism of the private sector is indispensable for long-term economic growth. The contribution by the ADB to private sector development is very valuable.

Third, the ADB is streamlining business processes to meet clients’ needs in a more expeditious manner.

I hope the ADB will continue to be committed to efforts for enhancing its functions. Specifically, the ADB needs to strengthen its organization to handle the expected growth of its lending volume due to the increased lending capacity by the ADF-OCR Combination, especially, to address the increasing assistance in private sector development. To push forward with these efforts, the ADB needs to carry out various bold organizational reforms and secure a sufficient number of staff and administrative resources. Japan will provide full support for such reform efforts of the ADB.

Infrastructure Investment
Next, I would like to touch upon infrastructure investment.

Infrastructure is fundamental for sustainable growth. To promote infrastructure investments, Japan is developing a new initiative for promoting “Quality Infrastructure Investment” which will contribute to desirable growth in Asia in the medium to long term. This initiative consists of the following four policy packages:

First, Japan will significantly increase the volume of quality infrastructure investments in Asia in close collaboration between Japan’s public and private sectors.

We will not only make the best use of all policy tools, but also further accelerate the implementation.

Second, we will promote Quality Infrastructure Investments as an international standard. Quality infrastructure investments are more environment-friendly and more harmonious to local communities. They promote transfer of technologies and capacity building. They pay due consideration to debt sustainability. Japan will actively share its knowledge and experiences with the international community. While initial costs may look somewhat higher, quality infrastructure investments will lead to lower fiscal burden and higher development impact for recipient countries in the long run.

Third, we will promote PPP infrastructure investments in Asia by establishing a new cooperative framework between JICA and the ADB. For this purpose, Japan will contribut to the ADB in terms of human resources, knowledge, and finance.

Fourth, we will promote infrastructure investments in Asia through further use of our world’s most advanced technologies and know-how such as high-efficient coal-fired power plants and Shinkansen, bullet trains. In this context, we will strengthen the capacity of JBIC and other institutions in terms of finance and human resources.

Through these packages, Japan will contribute to achieving sustainable growth in Asia.

Annual Meeting at Yokohama
Since the establishment of the ADB in 1966, the Bank has played a vital role in poverty reduction and economic development of the region.
The ADB is required to continuously play an active role as the most important partner of the region.

The ADB will hold its 50th anniversary of Annual Meetings in 2017, marking a significant milestone in its history. The Board of Governors, today, approved holding the Annual Meeting in 2017 in Yokohama. I express my deep appreciation for the approval.

Yokohama, a city with a high-quality urban environment, has its know-how in urban management which is one of the main challenges for Asian countries. The Yokohama city government and the ADB signed a Memorandum of Understanding for cooperation in urban development.

Therefore, I believe Yokohama is the most suitable place for discussions on the future of Asia and the ADB. Japan will thoroughly prepare for the memorable meeting.

Conclusion
Ladies and gentlemen,

I expect the ADB, led by President Nakao, to address the needs of clients even more effectively and continue to play an important role in supporting sustainable and inclusive development of the region.

Thank you very much.

(END)