ADB set to become ASEAN's main bank

The Asian Development Bank (ADB) is set to become ASEAN’s main bank, taking a bigger role in financing major infrastructure projects and driving regional economic integration.

ADB President Masato Kanda said Saturday that the bank would formalize its designation through a memorandum of understanding with ASEAN to mobilize financing, prepare investment-ready projects and coordinate cross-border development.

“I will sign a new Memorandum of Understanding (MOU) with ASEAN. This MOU designates ADB as the region’s main bank, locking our financing and expertise directly into ASEAN’s priorities over the years to come,” Kanda said at the ASEAN Business and Investment Summit in Manila.

The agreement will put ADB at the center of ASEAN's regional development agenda, particularly in power, transport, and digital infrastructure, as the bloc seeks to attract more private capital.

"We will put our balance sheet behind ASEAN regional priorities. We will invest upstream in preparing bankable projects. And we will drive coordination across borders, where no single country can act alone," he said.

According to ADB, ASEAN faces $7.1 trillion in infrastructure investment requirements through 2040, with an estimated annual funding gap of $261 billion.

Kanda pointed to regional integration to help sustain ASEAN's competitiveness amid shifting global trade and investment flows.

"While others may turn inward, ASEAN keeps integrating. That is its advantage in a fragmenting world," he said.

To recall, ADB committed to provide up to $30 billion by 2030 for ASEAN priorities, including the ASEAN Power Grid, capital markets, and the blue economy.

"The needs are clear. The capital exists," Kanda said. "So bring us your projects. We will help prepare them. And we will invest alongside you."