Analysis of the CDD-Type Portfolio in ADB

4.3.2 Analysis of the CDD-Type Portfolio in ADB

110. Portfolio Growth. The use of CDD features in project design was quite uneven in 2001–2005. (Figure 6). While the total number of CBD projects is generally increasing, the number of projects with most CDD features experienced a decrease in 2004 with a slight recovery in 2005. A similar trend can be seen in the lending amount for the CDD-type portfolio (Figure 7). This decline may be reflection of removal of the quota requirement for targeted poverty interventions in ADB. The quota was set up in 2001 and removed on adoption of the enhanced Poverty Reduction Strategy in 2004. However, Figure 6 shows that the number of projects that can be considered to be CBD has definitely increased over time.

Figure 6: ADB CBD/CDD-Type Portfolio by Project Number

cts 20

je

ro 15

fP

CBD

o 10

CDD

er 5

mb u

Year

Figure 7: ADB's CDD-Type Portfolio by Project Amount

rtfo o ($ P

ADB = Asian Development Bank; CDD = community-driven development.

111. Sector Distribution. The CBD

Figure 8: Sector Distribution by Number of Projects

projects were spread across nine sectors, but the projects with most CDD features

FI, 4%

TC, 4%

were only in 5 sectors: multisectoral

MS, 36%

(MS); agriculture and natural resources

WS, 14%

(AG); water supply, sanitation, and waste management (WS); transport and communications (TC); and finance (FI). MS and AG projects were about equal in number and share of CDD portfolio and they dominated the sectoral projects. WS was a far third. Their distributions in terms of number of projects and the share

AG, 42%

of the loan portfolio are shown in figures

8 and 9. 112.

Distribution by Loan Type.

Figure 9: Sector Distribution by Share of Loan Portfolio

ADF-funded loan projects far outnumbered OCR-funded projects and made up 76% of total financing of the 28

FI, 6%

TC, 4%

projects. There were only 2 purely OCR

MS, 42%

WS, 17%

loans and another 4 joint OCR-ADF projects, putting the total value of OCR lending under the CDD-type portfolio at $269.3 million (24% of the total). These loans ranged in value from $20 million to $60 million. Four were MS projects for a total value of $114 million. The other two were FI ($60.0 million) and AG ($46.1

AG, 31%

million). The total value of ADF loans was $867.2 million and they ranged in amounts from $10 million to $69 million. CDD was utilized for OCR loans only in 2003 and 2005. The average loan amount of projects with most CDD features was $40 million. The larger loans (more than $40 million) were used in the top 3 sectors (i.e., MS, AG, and WS).

113. Regional Distribution. The 28 projects with most CDD features were in three ADB subregions but concentrated in Southeast Asia and South Asia in terms of number of projects (Table 5 and

Figure 10). In the World Bank portfolio for Asia and Pacific countries, more than half of the CDD loans were in South Asia. ADB’s portfolio would be similar if its former subregional structure, with Pakistan being part of South Asia, is considered. 104

Table 5: Regional Distribution of ADB Projects with Most CDD Features

Project No. of

Central and West Asia

2 103.1 Southeast Asia Indonesia 5

Viet Nam

South Asia

Sri Lanka

114. Main Focus Areas. Most of the 28 projects (87%) were aimed explicitly to reduce poverty, improve quality of life, and/or were targeted at the poor. The rest, although geared toward sectoral or policy reforms could still be viewed as ultimately having a poverty focus.

Figure 10: Re gional Distribution by Portfolio Share

Central and

South Asia,

West Asia,

South East Asia, 44.4%

In the World Bank portfolio, the share of South Asia was 63.6%, while that of East Asia and Pacific (which covers Southeast Asia in terms of ADB regions) was 33%. (See also Table 2). With ADB’s realignment in April 2006, Pakistan and Afghanistan were realigned with Central and West Asia from South Asia.

115. Only four projects were urban, the rest (86%) were in rural areas. The four urban projects involved community upgrading. Two were in urban poor housing and community upgrading while the other two involved urban community infrastructure upgrading. Most of the rural projects were for primary/basic infrastructure (four were in water supply and sanitation) but a few were for road or rural infrastructure. There were two projects on livestock development, both in the South Asia region.

116. Five projects were primarily focused on livelihood development/improvement. Two projects were on natural resource management, both in coastal resource management. There was only one project in an emergency situation, a post-conflict area in Sri Lanka. None of the projects related the 2004 tsunami disaster could be considered CDD in nature. There was one project on gender development and women empowerment in Nepal. Unfortunately, the project is stalled due to the peace and order situation in the country.