The 58th Annual Meeting (AM) of the Board of Governors of Manila (The Philippines)-based Asian Development Bank (ADB) was held from May 4 to 7, 2025 at Allianz MiCo-Milano Convention Centre in Milan, Italy. This was for the 1st time that Italy hosted AM of ADB and thus, became the 1st European country to host this AM in almost a decade.
- Theme of 58th AM of ADB: ‘Sharing Experience, Building Tomorrow’.
Highlights of 58th AM of the Board of Governors of ADB:
i.Masato Kanda, President of ADB, inaugurated the 58th AM of Board of Governors of ADB.
ii.The annual meeting witnessed the participation of over 5,000 participants, which included the representatives from various governments, private sector, civil society, and academia.
iii.This year’s AM was focused on 4 key areas to driving transformational changes across Asia and the Pacific:
- ADB will mobilize financing for food systems transformation to USD 40 billion by 2030, to address the vulnerability of the region’s food systems.
- ADB is investing in digital technologies to enhance access to education, finance, and markets.
- ADB is investing in advancing and connecting the energy system, which includes readiness to pledge up to USD 10 billion to support work on the ASEAN Power Grid.
- ADB is making investments to build resilience by bolstering infrastructure, restoring and protecting ecosystems, and helping vulnerable communities adapt to the impacts of climate change.
iv.The 59th AM of Board Governors of ADB is scheduled to be held in Samarkand(one of the oldest continuously inhabited cities in the world), Uzbekistan from May 03 to May 06, 2026.
- With this announcement, Uzbekistan will host the ADB annual meeting for the 2nd time after the successful 43rd AM of ADB held in Tashkent, capital city of Uzbekistan in 2010.
Note: Tbilisi, the capital city of Georgia hosted the 57th AM of the Board of Governors of ADB in 2024.
India at 58th AM of Board of Governors of ADB:
i.Union Minister Nirmala Sitharaman, Ministry of Finance (MoF) and Ministry of Corporate Affairs (MoCA) led the Indian delegation of officials from the Department of Economic Affairs (DoEA), MoF at the 4-day long AM of board of governors of ADB.
ii.While addressing the event, Union Minister Nirmala Sitharaman highlighted India’s ambitious goal of becoming a developed nation by 2047 (Viksit Bharat) and called the ADB a ‘valued partner’ in the development journey of India.
iii.She also participated at a Plenary Session of the NEXT Milan Forum at the Bocconi University on ‘Balancing Economic and Climate Resilience’.
- While addressing the session, she underscored the increasing need for universal regulatory mechanisms to keep pace with rapidly evolving technologies like Artificial Intelligence (AI).
iv.She held discussions with leaders from global financial institutions like the International Fund for Agricultural Development (IFAD) and Japan Bank for International Cooperation (JBIC) and others, on the sidelines of ADB meetings.
Key Announcements:
ADB Committed USD 5 billion for India’s healthcare, education, and infrastructure in 2024
ADB has committed USD 5 billion in the forms of loans, grants, and other assistance to India in 2024. This also includes USD 2.2 billion through cofinancing, to strengthen India’s efforts in tackling key developmental challenges.
- This loan arrangement is primarily focused on key sectors like: healthcare, education, and infrastructure development across various Indian states.
Key Points:
i.In order to address the healthcare requirements, the ADB facilitated a significant USD 500 million loan to the Maharashtra government.
ii.The ADB has also extended its financial support of USD 64 million to Meghalaya, to enhance access to quality education and skills training, particularly targeted less privileged youth.
iii.ADB committed USD 794 million to the Amaravati Inclusive and Sustainable Capital City Development Programme.
ADB Records Highest Net Income Allocation in History at USD 1.539 Billion for 2024
The Board of Governors of ADB approved its 2024 financial statements and a registered a record-breaking USD 1.539 billion (approximately USD 1.54 billion) allocation from its net income. This marks the Highest Net Income (HNI) allocation ever recorded in nearly 60 year-long history of ADB.
Key Allocations:
i.Of the total amount USD 1.539 billion, USD 1.016 billion is allocated to the Ordinary Reserve
ii.Total USD 393.5 million is allocated to the Asian Development Fund (ADF), which offers grants to poorest and most vulnerable developing member nations of ADB.
iii.USD 130 million is allocated to the Technical Assistance Special Fund (TASF), which facilitates technical assistance grants to borrowing members to help prepare projects and undertake technical or policy studies.
ADB Pledged Additional USD 26 Billion to Food & Nutrition Security in APAC
During the meeting, the ADB announced plan to expand its long-term food and nutrition security support in Asia and Pacific Countries (APAC), by pledging additional USD 26 billion, thereby, bringing its total funding for food security initiatives to USD 40 billion over 2022-2030.
- This expanded financial support will help APAC to reduce hunger, improve diets, and protect the natural environment.
Point to Note: By the end of December 2024, ADB had pledged USD 11 billion (accounts 80% of the original allocation), with an additional investment of USD 3.3 billion programmed for 2025.
Key Points:
i.Of the additional USD 26 billion, USD 18.5 billion in direct ADB support for governments and USD 7.5 billion in private sector investments.
- ADB has projected that by 2030, private sector investments will account for over 27% of the total USD 40 billion program.
ii.To further support sustainable agriculture, ADB is planning to establish the Natural Capital Fund, a USD 150 million blended finance vehicle, with anchor support from Global Environment Facility (GEF) and contributions expected from other partners like: the Global Agriculture and Food Security Program.
ADB Collaborated with 10 Global Insurers to Mobilize USD 2.75 billion for Sustainable Infrastructure
During the meeting, the ADB has signed the ‘Master Framework Agreement for Sustainable Infrastructure’ with 10 leading global insurance companies to mobilize a maximum USD 2.75 billion of private capital to support ADB’s sustainable development financing across Asia and the Pacific region.
Key Details:
i.ADB has collaborated with 10 global insurers: Tokyo (Japan)-based Tokio Marine Group, Warren, New Jersey (the United States of America, USA)-based Chubb Corporation, Stamford, Connecticut (the USA)-based AXA XL Limited, London (the United Kingdom, UK)-based Liberty Specialty Markets, Bois-Colombes (France)-based Coface SA, Zurich (Switzerland)-based Swiss Re Limited, Hamilton(Bermuda)- based Everest Re Group, Ltd, Pembroke Parish (Bermuda)-based AXIS Capital Holdings Limited, Hartford, Connecticut (the USA)-based The Hartford Insurance Group Inc. , and Paris (France)-based Allianz Trade.
- These insurers will help ADB in expanding its support for sustainable infrastructure by facilitating substantial credit risk capacity.
ii.This newly signed agreement signifies a major step in unlocking private sector investment in Asia and the Pacific region by derisking infrastructure projects that are important for climate resilience and inclusive economic growth.
- As per the agreement, ADB will be able to transfer credit risk from its portfolio to insurers’ balance sheets, freeing up ADB’s capital, managing its exposures, and increasing its lending capacity.
iii.This agreement is likely to benefit sectors like: Renewable Energy (RE), sustainable transport, green buildings, and data centres that adopt eco-friendly technologies.
FAO & ADB Signed a Framework Agreement:
On the sidelines of 58th AM of the Board Governors of ADB, Rome (Italy)-based Food and Agriculture Organisation (FAO) signed a framework agreement with ADB to boost digital and AI-powered agricultural investment solutions across 9 Central and South Asian countries to empower smallholders and build resilience.
- The agreement was signed in the presence of QuDongu, Director-General (DG) of FAO and Masato Kanda, President of ADB.
Key Focus Areas of Agreement:
i.The agreement aims to conduct in-depth economic and financial analyses which will support nature-based and climate-smart investments in China, the Philippines, and Central Asia.
ii.The agreement involves strengthening policy dialogue and investment planning to promote inclusive Public-Private Partnerships (PPP) in countries like: Bangladesh, Pakistan and Uzbekistan.
ADB and Japan Launch Market Acceleration Platform:
i.During the meeting, the ADB and the Government of Japan jointly launched the ADB Market Acceleration Platform for Asia and the Pacific (AMAP), a new multi-donor trust fund aimed at bolstering private sector development across the region.
ii.The initiative was formalized with ADB President Masato Kanda and Japanese Finance Minister Katsunobu Katō signing the contribution agreement. Japan has committed an initial USD 20 million as the founding contributor to the platform .
iii.The ADB aims to quadruple its private investment financing to $13 billion annually by 2030, reinforcing its role as both an enabler and mobilizer of private capital.
India-Italy Strategic Action Plan 2025-29:
On the sidelines of 58th AM of Board of Governors of ADB, Union Finance Minister Nirmala Sitharaman held a bilateral meeting with Giancarlo Giorgetti, FM of Italy. During the meeting, both leaders explored ways to bolster India-Italy economic ties and improve cooperation on international and multilateral platforms on issues of mutual interest.
- FMs of both countries highlighted the implementation of the Joint-Strategic Action Plan (JSAP)2025-2029, which was announced by Prime Minister (PM) Narendra Modi and his Italian counterpart Giorgia Meloni on the sidelines of 19th G-20 Summit held in Brazil in November 2024.
- JSAP 2025-2029 aims to promote bilateral cooperation in the areas of trade and investment, defence and security, space, science and technology, clean energy transition, culture, tourism and people-to-people ties.
Key Points:
i.FM Nirmala Sitharaman highlighted that the bilateral trade between two countries reached USD 14.56 billion in Financial Year 2023-24 (FY24).
ii.During the meeting, FMs of both countries discussed the significance of reforming Multilateral Development Banks (MDBs) to make them more responsive in order to cater the requirements of developing countries, adequately aligned capitalized and better aligned with the Sustainable Development Goals (SDGs).
About Asian Development Bank(ADB):
President– Masato Kanda (Japan)
Headquarters– Manila, the Philippines
Members Nations- 69
Established– 1966
About Italy:
Prime Minister (PM)- Giorgia Meloni
Capital- Rome
Currency- the Euro (EUR)
