Georgia becomes ADB donor country for first time with contribution to $5bln fund

Georgia has become a donor country of the Asian Development Fund for the first time after making a contribution to the Asian Development Bank’s $5 billion fund designated to support the most vulnerable populations in Asia and the Pacific.

While the exact amount of money Georgia is contributing has not been officially disclosed, more than $2.5 billion, or 51 percent, of the replenishment of the fund will be funded through contributions from donors including Armenia and Georgia - the two new countries in the donor list.

The announcement was made earlier today by the ADB President Masatsugu Asakawa within the 57the annual meeting of the Bank in Tbilisi.

Grants are more important than ever as our poorest and most vulnerable members seek to reverse recent development setbacks and take urgent action to combat the climate crisis. This remarkable replenishment demonstrates ADF donors’ continued partnership with ADB to address the pressing development challenges of those most in need”, he said.

In comments for Agenda.ge, Tomoyuki Kimura, the Director General of ADB’s Strategy, Policy and Partnerships Department, highlighted Georgia’s role as a donor was “highly appreciated”.

Previously, Georgia used to be a beneficiary of the ADF, but now it has become a middle-income country, and it is time for Georgia to contribute to the ADF to address poverty and climate change issues in the Asia-Pacific region”, Kimura told the website.

Tomoyuki Kimura, the Director General of ADB’s Strategy, Policy and Partnerships Department. Photo: Agenda.ge

In the ADB’s “business model” countries that used to receive financing or grants from the Bank are encouraged to contribute when they become “stronger and richer”, he explained.

Georgia used to be the beneficiary of this ADF, but now it has actually developed and become a middle-income country. Georgia is now ready to contribute to the development of Asia as a donor, despite still borrowing from ADB. We very much appreciate that”, the official said.

The fact that Georgia now has become an ADF donor means basically that the country has grown, become stronger”, the Bank representative added.

The ADF is ADB’s largest source of grants for operations in its poorest and most vulnerable developing member countries and is replenished every four years, with the next period set to span between 2025­­­–2028.