Royal Bank of Scotland : ADB President Takehiko Nakao Steps Down After Nearly 7 Years in Office

MANILA, PHILIPPINES (16 January 2020) - Asian Development Bank (ADB) President Mr. Takehiko Nakao steps down today after nearly seven years in office.

'During the past seven years, with the support of member governments, Board members, management team, and staff, we have achieved many things,' Mr. Nakao said in his Farewell Address to staff. 'My time at ADB has been rewarding. I am departing ADB with a deep sense of satisfaction and gratitude.'

Mr. Nakao assumed office as ADB President on 28 April 2013 and announced on 17 September 2019 his intent to resign.

He expressed his sincere gratitude to ADB's host country, the Philippines. He said ADB benefits from diligent, kind, and capable Filipino staff. He appreciated the attendance in the event of Finance Secretary and ADB Governor Mr. Carlos G. Dominguez, who had supported ADB's operations and offered him advice. Mr. Nakao was encouraged that ADB's operations in the Philippines have grown significantly.

As he bid farewell, Mr. Nakao asked his staff to remember three points. The first was to focus on clarity and value addition, without blurring with rhetoric, making clear ADB's objective in each of its operations and how this is achieved. The second was to show courage to change and a willingness to challenge the status quo. The third was to take pride in working for ADB, which is a unique organization in the Asia and Pacific region that implements projects, offers knowledge, and promotes friendship and cooperation between countries. He, at the same time, asked staff to have a sense of humbleness because ADB is supported through the contributions of taxpayers in member countries and ADB is working for the poor people in the region.

ADB lending and grant commitments expanded from $14 billion in 2013 to $22 billion in 2019, while incorporating more advanced technologies into projects. Out of this amount, private sector operations (lending, equity investment, and guarantees to private companies) increased from $670 million to about $3 billion. ADB's operations in social sectors such as health and education were also strengthened.

Under Mr. Nakao's leadership, ADB implemented a number of major reforms. The merger of the lending operations of the Asian Development Fund (ADF) with ADB's ordinary capital resources in 2017 roughly tripled the bank's equity and enabled a significant increase in lending. ADB successfully completed the ADF 12 replenishment and obtained broad support for the ADF 13 replenishment covering 2021-2024, aiming to strengthen grant support for poorer and more fragile countries.

In 2018, ADB launched Strategy 2030, which set ADB priorities, including continued efforts to reduce poverty, and with clear targets for climate change, gender, private sector operations, and cofinancing. ADB was the first multilateral development bank to commit to a sizable climate finance target of doubling its annual climate financing from $3 billion in 2015 to $6 billion by 2020. ADB achieved this target a year early in 2019.

During his term, ADB strengthened its knowledge work. ADB regularly holds major knowledge forums for clean energy, sustainable transport, urban, water, digital transformation, and others. ADB produced landmark reports on infrastructure needs, the impact of new technologies on jobs, and disaster prevention. In 2017, ADB published Banking on the Future of Asia and the Pacific for its 50th anniversary, depicting the evolution of ADB since it was founded in 1966. Yesterday, on 15 January 2020, ADB launched a new book, Asia's Journey to Prosperity: Policy, Market, and Technology Over 50 Years, which provides a comprehensive historical narrative of the rapid transformation of Asia in 15 thematic chapters.

To ensure that ADB efficiently carries out its mission, Mr. Nakao led many initiatives in areas such as human resources, procurement, and information technology. Fifteen sector and thematic groups were established to share knowledge across departments and promote a 'One ADB' approach. The Office of Public-Private Partnership was created to provide transaction advisory services. ADB is starting a Singapore office to strengthen private sector operations.

Mr. Nakao will be succeeded on 17 January by Mr. Masatsugu Asakawa, Vice Minister of Finance for International Affairs of Japan until July 2019.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members-49 from the region.