Yokohama, Japan: The 50th Annual Meeting of the Board of Governors of the Asian Development Bank (ADB) concluded here on Sunday as its President Takehiko Nakao said the member states have insisted on crowd-in larger private sector financing to support the region's development needs, especially for infrastructure, which will require US$ 1.7 trillion per year till 2030.

Nakao underscored the need for bridging the gap between the available resources and required funding to meet Asia's development needs like maintaining its growth momentum, tackling poverty, and responding to climate change till 2030.

Addressing the closing press conference at Pacifico Yokohama Conference Centre, Nakao said investment equivalent of five percent of Asia's GDP (excluding China) is required to carry forward the development projects in the Asia and the Pacific.

Three percent of that has to come through public-private partnerships (PPPs) while the remaining two percent from the governments of the Asian countries, he said reminding all that "Asia will need $1.7 trillion per year in investments in power, transport, telecommunications, and water through 2030."

The ADB President promised, "We'll scale up to help meet this large infrastructure deficit, increasingly use high-level technology in infrastructure, vigorously pursue our commitment to climate finance, and actively promote public-private partnerships."

He also assured the Bank's governors that ADB will increase its private-sector operations to 25 percent of its regular Ordinary Capital Resources (OCR) operations by 2020. And, he noted that the expansion of such private sector involvements in resource mobilisation will be more visible in poorer countries.

This is for the fifth time Japan hosted the annual meeting and the theme of the meeting was 'Building Together the Prosperity of Asia'.

The next year's meeting will be held in Manila, the capital city of the Philippines while the Pacific island Fiji will host the mega event in 2019.

Governors of the ADB Board, who are ex-officio finance ministers of the Bank's member countries, also encouraged ADB to crowd-in larger private sector financing to support the region's development, especially for infrastructure.

The ADB President said, "We're placing a strong emphasis on public-private partnerships. In our private sector operations, we plan to expand our guarantee operations, equity investments, and cofinancing."

He added, "I would like to note that in a way ADB was created to mobilise private sector resources by leveraging our equity to tap capital markets. The merger of our Asian Development Fund (ADF) lending operations and Ordinary Capital Resources (OCR) balance sheet allows us to further leverage these resources."

Nakao went on saying, "Our experience in the past 50 years demonstrates that both public and private sector investments by ADB through preparing necessary infrastructure and setting conducive policy environment help crowd-in private sector resources and activities."

Answering to a question, he said though the new US administration has recalled its representative from ADB, it will soon depute one as alternate executive director and he hoped the United States will continue to engage in Asia-Pacific's development.

In response to a perceived notion that Japanese companies are getting most of ADB work orders, Nakao said, "Our system is open. We go by the rules of international tenders."

On Indian proposal of opening up ADB's regional hub in New Delhi, the ADB President made it clear that there was no decision of opening up such an hub but there are ADB outposts like Delhi, Islamabad, Jakarta, Hanoi where already more staff are posted than usual in ADB resident missions in 28 countries.

Earlier in his closing remarks at the ADB Board of Governors meeting, Nakao said, "While progress in Asia has been impressive, many of them reminded us that the battle against poverty is not over yet. Reducing poverty will remain our major focus. ADB will continue to prioritise the needs of the poorest and the most fragile countries, including small island countries in the Pacific."

"Growing inequalities are a major concern for many countries. We'll enhance our support for addressing inequality across groups and regions. Strengthening financial inclusion and supporting inclusive business will be integral components of our approach to deepen inclusiveness," he continued.

In summing up, the ADB chief touched upon a wide range of issues, including climate change and disaster risk reduction actions, lifting social development, strengthening gender equality, improving governance, supporting different needs of countries, deepening regional cooperation and integration, expanding knowledge support, procurement and project implementation reforms, human resources reforms, cofinancing and partnerships.

He also promised that through an inclusive and meaningful consultative process ADB will develop and finalise its 'Strategy 2030' by 2018 when the Bank's headquarters in Manila will host the 51st annual meeting of the Board of Governors.

With the theme "Linking People and Economies for Inclusive Development," the 51st ADB Annual Meeting, scheduled from May 3 to 6 next year, will put the spotlight on connectivity, and how the region can leverage to make economic growth sustainable and truly inclusive.