ADB endorses new funding for water and sanitation

The board of governors of the African Development Bank (ADB) ended their annual meetings in the Ugandan capital, Kampala, on Wednesday after approving a funding initiative to improve water and sanitation in rural areas of Africa and a programme to help countries emerging from conflict to pay outstanding loans. Under the Rural Water Supply and Sanitation Initiative, member countries will be able to seek funding from the bank to accelerate access to sustainable water supplies and sanitation in rural areas, according to an ADB statement issued at the end of the meeting. The post-conflict initiative is designed to enable countries coming out of conflict to source funding from other international financial institutions to help them clear their arrears with the ADB group. The bank had also endorsed a decentralisation programme which envisaged the opening of 25 country offices to facilitate dialogue with client countries and improve implementation of projects, the statement added. Speaking to the media after the closing session, the chairman of the board and Ugandan Finance Minister Gerald Ssendaula and the ADB President, Omar Kabbaj, underlined the satisfaction that had prevailed during the meetings, saying that this was bolstered by evidence of improved economic performance in many parts of the continent. "A strong bank is necessary for the development of Africa," Kabbaj said. "Strong African economies in turn underpin the strength of the bank." Kabbaj earlier presented a positive balance sheet, which showed that the bank had continued to maintain a strong financial base through 2003 and was currently better placed to continue providing development assistance on favourable terms to its member countries. The ADB group loan and grants portfolio recorded a 21.5 percent growth and two soft-loan windows registered important increases. According to the statement, the African Development Fund provided US $1.5 billion in loans and grants - a 56-percent rise from 2002 - while the Nigerian Trust Fund operations rose to $33.5 million from $13.5 million a year earlier. The non-concessional ADB window, however, saw a slight decline in commitments to $1.1 billion. Overall, the bank, through its co-financing operations, had succeeded in significantly increasing the total volume of resources for regional development from $5.7 billion in 2002 to $6.4 billion in 2003, Kabbaj said. The annual meetings were attended by 1,318 participants, comprising governors, alternative governors, members of the board of directors, staff, and observers, as well as local participants. The 2005 annual meetings will take place in Abuja, Nigeria.