Australia Increases Funding to Asian Development Bank, but Demands Reforms
Australia has pledged $492 million to the Asian Development Bank (ADB) for the 2025-28 period, a slight increase from the $423 million contributed in 2020. However, the Albanese government has expressed concerns about the ADB's funding practices, particularly in the Pacific region.
Minister for the Pacific and International Development Pat Conroy highlighted several issues, including the funding of low-quality infrastructure projects and the awarding of contracts to Chinese state-owned enterprises with questionable bidding practices. These companies often use their own workers instead of hiring locals, and contracts rarely include maintenance costs.
Conroy acknowledged the ADB's crucial role in the Pacific but emphasized the need for reforms. He cited the ADB's agreement to brand projects with its own logo instead of contractor logos, a move aimed at preventing confusion about funding sources.
Australia is also pushing for changes in procurement rules to prioritize value for money over the lowest bid. The government is prepared to "top up" projects to ensure high standards and quality, as demonstrated by its $20 million contribution to a port development project in Tonga.
The ADB has not yet responded to the ABC's request for comment.