What is a Multilateral Development Bank S Samuel

What is a Multilateral Development Bank? S. Samuel Tumiwa Deputy Representative North America Representative Office Canada Business Opportunities Seminar Halifax – Montreal – Calgary – Saskatoon September 2015 1

Multilateral Development Banks 2

Multilateral Development Banks 3

The Asian Development Bank How We are Different • Infrastructure – 85% of investments are in energy, water, transport, urban • Regional Cooperation – Central Asia, Greater Mekong Subregion, South Asia, etc. • Specific Focus on the Pacific Islands Our Challenge • Rapidly Changing Region – By 2030, all of the region will be middle income, except for AFG, NEP, and • Not just about financing – Also about knowledge and 4 Partnership

Why Asia? S. Samuel Tumiwa Deputy Representative North America Representative Office Canada Business Opportunities Seminar Halifax – Montreal – Calgary – Saskatoon September 2015 5

Why Asia? 6

Economic Outlook: Developing Asia extends steady growth… GDP growth (%) 10 8 10 -year average: 7. 6 5 -year average: 7. 1 6 4 9, 3 7, 3 2 6, 5 6, 3 2012 2013 2014 2015 f 2016 f 0 2011 f: forecast Asian Development Outlook 2015 7

…contributing the most to global growth Percentage contributions to global GDP growth 40 Global cumulative GDP growth, 2009– 2014 = 21. 4%, annual growth=4. 0% 31, 2 20 0 40 11, 8 PRC 31, 9 PRC 9, 6 ASEAN US 1, 8 1, 6 Japan Euro area 1, 4 3, 7 Japan Euro area Global GDP growth, 2015 = 3. 6% 15, 2 20 0 India 7, 9 India 8, 0 ASEAN 14, 4 US Þ Asia accounts for about 60% of global growth; Asian Development still fastest-growing region Outlook 2015 8

High overall growth, but divergence across countries 12 2014 2015 f 2016 f 5 -year ave. 10 8 6 4 2 0 East Asia f: forecast South Asia Southeast Central Asia The Pacific Asian Development Outlook 2015 9

What Does All This Mean Re-emergence of Asia’s Share of Global GDP, 1700 -2010 • Asia accounted for about 60% of world economy before Industrial Revolution • In the following two centuries, Asia’s share declined to 15% • Asia’s share today is 28% Asian Growth Rates 12, 0% GDP Growth Rate 10, 0% 8, 0% Japan 6, 0% NIC's China & India 4, 0% 2, 0% 0, 0% 1960 -1970 -1980 -1990 -2010 • Asia began to re-emerge after 1950, spurred first by Japan, then NICs • Starting in 1980 s, first PRC then India, Indonesia and Viet Nam, gave further boost

The Asian Century Scenario Middle East & North Africa, 3% Rest of World, 2% Sub Saharan Africa, 2% Middle Income Trap Scenario Middle East & North Africa, 5% Sub Saharan Africa, 4% Europe, 18% Asia; 52% Asia; 31% Europe, 28% North America; 21% Latin America & Caribbean; 10% North America; 13% Asian GDP: $174 trillion Asian GDP per capita: $40, 800 Rest of World, 2% Latin America & Caribbean, 9% Asian GDP: $65 trillion Asian GDP per capita: $20, 600 Asian century driven by Asia 7: India, Indonesia, Japan, Malaysia, PRC, Republic of Korea, and Thailand - projected to account for 90% of Asia’s growth between 2010 and 2050

Asia’s urbanization is unprecedented Increase in Urban Population (million) Increase in Urban Population in Asia and the Pacific (millions) 1200 1. 06 billion 1000 800 600 400 200 0 1980 -2010 -2040 Bangladesh Pakistan Indonesia India China, People's Rep. of Rest of Asia & Pacific Source: ADB estimates using UN(2012).

Unique feature 1: very fast speed Number of Years from about 10% to 50% of Urbanization Rate Latin America and Caribbean 210 years 10% North America 105 years 9% Europe 49% 51% 150 years 12% 51% Asia and the Pacific 95 years 11% Viet Nam 12% Indonesia 12% Lao PDR 90 years 65 years 10% Bhutan 10% China, People's Rep. of 11% 1750 1775 1800 1825 1850 1875 1900 Source: ADB estimates using Bairoch (2008) and UN(2012). 1925 51% 1950 54% 60 years 52% 55 years 61 years 1975 50% 2000 51% 2025 2050

um Ko bai lk Ka ata ra ch i L a S g Se he o ou n s l/I zhe Ta nch n ip eo ei n , C h Ch ina en n Bo ai Sh got an a gh a Lim i Be a iji n De g Ki lh ns i ha M sa an Te ila hr Ja an ka rta Ho B Tian Ch ang jin i M alo in re h Ci ty Ca Ba iro g Sh hda e d Hy nya de ng r Sã aba o d Pa ul o M Density (person/m 2) Unique feature 2: highest densities in the world… Top 25 World's Cities Ranked by Density, 2007 35000 30000 25000 Source: www. citymayors. com Asia & the Pacific (17/25) Africa Europe Latin America & Caribbean Middle East & North Africa 20000 15000 10000 5000 0

Unique feature 3: many megacities Megacities, 2010 ASIA: 12/23 Note: The circles indicate population sizes ranging from (10 million) to (39 million). The circles do not reflect the physical extents of the cities and any overlap between them merely reflects their relative population sizes and not any official acceptance or endorsement of any geographical sovereignty. Source: UN (2012).

Unique feature 4: low starting base Level of Urbanization by Region (%) 100 90 erica Northern Am Level of Urbanization (%) 80 67% 70 ope r u E 60 50 40 30 20 tin La a ric e Am n ea b rib a &C 63% 52% D L WOR 43% FIC I C A P & A I AS a Afric 10 0 1950 1960 1970 1980 1990 2000 Source: ADB estimates using Bairoch (2008) and UN(2012). 2010 2020 2030 2040 2050

Unique feature 5: the largest cities are likely to grow bigger Urban Primacy (%, 2009) Ratio of Population in Largest Cities over Urban Population (%) 25 21 20 15 12 10 5 0 Asia Source: ADB estimates using UN(2012). Non-Asia

… thus more and bigger megacities are emerging Megacities, 2025 ASIA: 21/37 Note: The circles indicate population sizes ranging from (10 million) to (39 million). The circles do not reflect the physical extents of the cities and any overlap between them merely reflects their relative population sizes and not any official acceptance or endorsement of any geographical sovereignty. Source: UN (2012).

Asia’s financing requirements are huge Source: ADB, 2009. Infrastructure for a Seamless Asia. Manila Total of $8. 3 trillion (2010– 2020) or $750 billion/year 19

In Asia the infrastructure gap means People without Access to: Water and Sanitation 900 million people Electricity 800 million people Roads 1. 2 billion people Internet 80% of Asia Source: Various reports compiled by ADB 20

Deep Dive Sustainable Infrastructure S. Samuel Tumiwa Deputy Representative North America Representative Office Canada Business Opportunities Seminar Halifax – Montreal – Calgary – Saskatoon September 2015 21

Asia’s Urban Challenge • Globally, 6. 2 billion people in urban areas and 53% in Asia by 2050 (World Urban Prospects, 2011 Revision) • By 2050, 64. 4% of population of Asia is in urban areas • 23 megacities, 13 of which are in Asia • Approximately 75% of GDP today comes from the urban areas- urban areas of engines of growth in Asia • 44 million people are added to city populations in Asia every year o equivalent to 120, 000 people each day who require construction of more than 20, 000 new dwellings, 250 km of new roads and additional infrastructure to supply more than 6000 liters of potable water

Increasing Energy Demand (1990 -2010 -2035) Non-Energy Other Transport Industry 6000 5000 Mtoe 4000 3000 2000 1000 0 1990 2000 2010 2020 2035 23

Road to Nowhere Beijing, 2010 24

ADB’s Water Financing Program 2006 -2020 • Rural water – rural water supply and sanitation; irrigation and drainage • Urban water – urban water supply, sanitation and wastewater management • Basin water – water resources development and management, flood management, wetlands and watershed protection, hydropower Rural Water Urban Water Basin Water

How Does it Really Work? S. Samuel Tumiwa Deputy Representative North America Representative Office Canada Business Opportunities Seminar Halifax – Montreal – Calgary – Saskatoon September 2015 26

ADB Business Opportunities 27

ADB Business Opportunities Almost all ADB projects rely on Consultants and Contractors 28

7 -Step Plan to Win ADB-Financed Consulting Contracts 1. Collect relevant business intelligence 2. 3. 4. 5. 6. 7. • Study Country Partnership Strategy (CPS) and Country Operations Business Plans (COBP) • Obtain information from procurement plans (and project documents) • Check ADB website for opportunities in the Consulting Services Recruitment Notices (CSRN) section Build your brand name – Visit ADB Express interest Visit the country of the assignment and project site Offer partnership to firms likely to be shortlisted Prepare a responsive and strong technical proposal 29 Do good work

Business Opportunities Fair and ADB’s Project Pipeline ADB’s yearly Business Opportunities Fair - How to register http: //www. adb. org/news/events/6 th-adb-businessopportunities-fair-2015 Background on the 2015 Business Opportunities Fair including Project Pipelines across countries and sectors http: //adbprocurementforum. net/? page_id=2362 30

Supplemental Slides S. Samuel Tumiwa Deputy Representative North America Representative Office Canada Business Opportunities Seminar Halifax – Montreal – Calgary – Saskatoon September 2015 31

Vision An Asia and Pacific region free of poverty Strategic Agenda 1. Inclusive Economic Growth 2. Environmentally Sustainable 3. Regional Integration

Core Areas of Operations 1. 2. 3. 4. 5. Infrastructure Environment Regional Cooperation and Integration Finance Sector Development Education Other Areas of Operations 1. Health 2. Agriculture 3. Disaster and Emergency Assistance

ADB’s Services to Foster Development Impacts Technical Assistance and Knowledge Sharing • • • Project preparatory feasibility studies Research and analytical work Policy dialogue and advisory activities Training and capacity building programs Dissemination of best practices Program and Project Financing • Grants • Low interest loan • LIBOR based loan

Samuel Tumiwa Deputy Representative North America Representative Office 900 17 th Street, N. W. Suite 900 Washington, DC 2006 202 728 1500 stumiwa@adb. org 35