ANNUAL REPORT 2017 www.adb.org/ar2017

Keywords: membership, capital stock, stock, voting power

Members, Capital Stock, and Voting Power (as of 31 December 2017)

Year Subscribed Voting Year Subscribed Voting a b a b of Capital Power of Capital Power Membership (% of total) (% of total) Membership (% of total) (% of total) REGIONAL NONREGIONAL Afghanistan 1966 0.034 0.326 Austria 1966 0.340 0.571 Armenia 2005 0.298 0.537 Belgium 1966 0.340 0.571 Australia 1966 5.786 4.928 Canada 1966 5.231 4.483 Azerbaijan 1999 0.445 0.654 Denmark 1966 0.340 0.571 Bangladesh 1973 1.021 1.115 Finland 1966 0.340 0.571 Bhutan 1982 0.006 0.303 France 1970 2.328 2.161 Brunei Darussalam 2006 0.352 0.580 Germany 1966 4.326 3.759 Cambodia 1966 0.049 0.338 Ireland 2006 0.340 0.571 China, People’s Italy 1966 1.807 1.744 Republic of 1986 6.444 5.454 Luxembourg 2003 0.340 0.571 Cook Islands 1976 0.003 0.301 The Netherlands 1966 1.026 1.119 Fiji 1970 0.068 0.353 Norway 1966 0.340 0.571 Georgia 2007 0.341 0.572 Portugal 2002 0.113 0.389 Hong Kong, China 1969 0.545 0.734 Spain 1986 0.340 0.571 1966 6.331 5.363 Sweden 1966 0.340 0.571 Indonesia 1966 5.446 4.655 Switzerland 1967 0.584 0.765 Japan 1966 15.607 12.784 Turkey 1991 0.340 0.571 Kazakhstan 1994 0.806 0.944 United Kingdom 1966 2.042 1.932 Kiribati 1974 0.004 0.302 United States 1966 15.607 12.784 Korea, Republic of 1966 5.038 4.329 Subtotal 36.467 34.845 Kyrgyz Republic 1994 0.299 0.538 TOTAL 100.000 100.000 Lao People’s Notes: Numbers may not sum precisely because of rounding. For other details, Democratic Republic 1966 0.014 0.310 see table on Statement of Subscriptions to Capital Stock and Voting Power (OCR- Malaysia 1966 2.723 2.477 8) in the Financial Statements of Annual Report 2017.

Maldives 1978 0.004 0.302 a Subscribed capital refers to a member's subscription to shares of the capital Marshall Islands 1990 0.003 0.301 stock of ADB. b Micronesia, Federated The total voting power of each member consists of the sum of its basic votes and proportional votes. The basic votes of each member consist of such number of States of 1990 0.004 0.302 votes as results from the equal distribution among all members of 20% of the Mongolia 1991 0.015 0.311 aggregate sum of the basic votes and proportional votes of all members. Myanmar 1973 0.545 0.734 The number of proportional votes of each member is equal to the number of shares of the capital stock of ADB held by that member. Nauru 1991 0.004 0.302 Nepal 1966 0.147 0.416 New Zealand 1966 1.536 1.527 Pakistan 1966 2.178 2.041 Palau 2003 0.003 0.301 Papua New Guinea 1971 0.094 0.374 Philippines 1966 2.383 2.205 Samoa 1966 0.003 0.301 Singapore 1966 0.340 0.571 Solomon Islands 1973 0.007 0.304 Sri Lanka 1966 0.580 0.762 Taipei,China 1966 1.089 1.170 Tajikistan 1998 0.286 0.528 Thailand 1966 1.362 1.388 Timor-Leste 2002 0.010 0.306 Tonga 1972 0.004 0.302 Turkmenistan 2000 0.253 0.501 Tuvalu 1993 0.001 0.300 Uzbekistan 1995 0.674 0.837 Vanuatu 1981 0.007 0.304 Viet Nam 1966 0.341 0.572 Subtotal 63.533 65.155 ANNUAL REPORT 2017 www.adb.org/ar2017

Keywords: resolutions, board of governors

Resolutions of the Board of Governors Adopted in 2017

Resolution No. Subject Date Adopted

391 Procedures for the Election of Directors 19 May

390 Place and Date of Fifty-Second Annual Meeting 6 May 389 Financial Statements, Management’s Report on Internal Control 6 May over Financial Reporting and Independent Auditor’s Reports

388 Allocation of Net Income 6 May

387 Allocation of Income from the Transfer of ADF Loans and Certain 15 March Other Assets to Ordinary Capital Resources

ADF = Asian Development Fund. ANNUAL REPORT 2017 www.adb.org/ar2017

Keywords: policies, strategies, finance, financial, board

Selected Policy, Strategy, and Financial Papers Discussed by the Board in 2017

Subject Date

Review of the Asian Development Bank's Capital Adequacy Framework 9 March (DOC.R8-17 issued 16 February 2017)

Review of the Asian Development Bank`s Loss Reserve and Provisioning Policies 22 March (Issued 16 February 2017)

2017 Annual Evaluation Review: Learning from the Lessons of Project Evaluations 11 April (DOC.Sec.M4-17 issued 21 March 2017)

Review of the Asian Development Bank's Allocation of 2016 Net Income 11 April (DOC.R16-17 issued 21 March 2017)

Annual Financial Statements (DOC.R18-17 issued 21 March 2017) 11 April

2016 Development Effectiveness Review (DOC.Sec.M6-17 issued 22 March 2017) 12 April

Improving ADB Project Performance through Procurement Reforms 12 April (DOC.R22-17 issued 22 March 2017)

Annual Report for 2016 (DOC.R24-17 [and Corrigendum 1 and 2] issued 31 March 2017) 21 April

Reform of Staff Retirement and Introduction of Defined Contribution Plan 5 June (DOC.R38-17 issued 15 May 2017)

Review of the Asian Development Bank's Exposure Limits on Nonsovereign Operations 27 September (DOC.R84-17 [and Corrigendum 1] issued 05 September 2017)

Work Program and Budget Framework, 2018–2020 (DOC.Sec.M21-17 [and Corrigendum 1] 20 October issued 29 September 2017)

Review of Salary and Benefits for IS, NS and AS 5 December

Review of ADB's Loan Charges and Allocation of 2017 Net Income 13 December

Borrowing Program for 2018 13 December

2018 Budget of Asian Development Bank 15 December

ADBI Three-Year Rolling Work Program and Budget 2018–2020 15 December

ANNUAL REPORT 2017 www.adb.org/ar2017

Keywords: board of governors, governors, board

Board of Governors (as of 31 December 2017)

Member Governor Alternate Governor

Afghanistan Eklil Ahmad Hakimi Mohammad Khalid Payenda1 Armenia Vache Gabrielyan Armen Hayrapetyan Australia Scott Morrison MP Kelly O'Dwyer MP Austria Johann Georg Schelling Elisabeth Gruber2 Azerbaijan Samir Sharifov Shahin Mustafayev Bangladesh Abul Maal A. Muhith Kazi Shofiqul Azam Belgium Johan Van Overtveldt Alexander De Croo3 Bhutan Lyonpo Namgay Dorji Nim Dorji Brunei Darussalam Pehin Dato Abdul Rahman Ibrahim Ahmaddin Abdul Rahman4 Cambodia Aun Pornmoniroth Vongsey Vissoth Canada Chrystia Freeland5 (vacant) China, People’s Republic of Xiao Jie Shi Yaobin Cook Islands Mark Brown Garth Henderson Denmark Morten Jespersen Jan Top Christensen6 Fiji Aiyaz Sayed-Khaiyum Ariff Ali7 Finland Elina Kalkku Satu Santala France Bruno Le Maire8 Odile Renaud-Basso Georgia Mamuka Bakhtadze9 Dimitry Kumsishvili10 Germany Hans-Joachim Fuchtel Marianne Kothe Hong Kong, China Paul Chan Mo-po11 Norman Chan India Subhash Chandra Garg12 Indonesia Sri Mulyani Indrawati Bambang P.S. Brodjonegoro Ireland Paschal Donohoe13 Paul Ryan Italy Ignazio Visco Gelsomina Vigliotti14 Japan Taro Aso Haruhiko Kuroda Kazakhstan Timur Suleimenov15 Ruslan Bekatayev16

1 Succeeded Mohammad Mustafa Mastoor in August. 2 Succeeded Gunther Schönleitner in March. 3 Succeeded Ronald de Swert in January. 4 Succeeded Nazmi Mohamad in April. 5 Succeeded Stephane Dion in January. 6 Succeeded Christian Dons Christensen in March. 7 Succeeded Barry Whiteside in May. 8 Succeeded Michel Sapin in July. 9 Succeeded Dimitry Kumsishvili in November. 10 Succeeded Giorgi Gakharia in November. 11 Succeeded John Tsang Chun-wah in January. 12 Succeeded in July. 13 Succeeded Michael Noonan in July. 14 Succeeded Filippo Giansante in October. 15 Succeeded Kuandyk Valikhanovich Bishimbayev in January. 16 Succeeded Ruslan Erbolatovich Dalenov in September. CONTINUED

Member Governor Alternate Governor

Kiribati Teuea Toatu Saitofi Mika17 Korea, Republic of Dong Yeon Kim18 Juyeol Lee Kyrgyz Republic Adylbek Aleshovich Kasymaliev Artem Novikov19 Lao People’s Democratic Republic Somdy Douangdy Vathana Dalaloy Luxembourg Pierre Gramegna Arsène Jacoby Malaysia Dato’ Sri Mohd Najib Bin Tun Haji Tan Sri Dr. Mohd Irwan Serigar Abdul Razak bin Abdullah Maldives Ahmed Munawar Abdulla Ali Marshall Islands Brenson S. Wase Maybelline A. Bing Micronesia, Federated States of Sihna N. Lawrence Lorin Robert Mongolia Khurelbaatar Chimed20 Nadmid Bayartsaikhan Myanmar Kyaw Win Tun Tun Naing Nauru David Adeang MP Martin Hunt Nepal Gyanendra Bahadur Karki21 Shankar Prasad Adhikari22 The Netherlands S.A.M. (Sigrid) Kaag23 A.C.C. (Christiaan) Rebergen New Zealand Grant Robertson24 Gabriel Makhlouf Norway Marianne Hagen25 Alsak Brun26 Pakistan Mohammad Ishaq Dar Arif Ahmed Khan27 Palau Elbuchel Sadang Casmir Remengesau28 Papua New Guinea Charles Abel29 Dairi Vele Philippines Carlos G. Dominguez III Nestor A. Espenilla, Jr.30 Portugal Mário Centeno Eurico Brilhante Dias31 Samoa Sili Sâlâ Epa Tuioti Lavea Tupa’imatuna lulai Lavea Singapore Heng Swee Keat Tan Ching Yee Solomon Islands Manasseh Damukana Sogavare32 Harry Degruit Kuma Spain Luis de Guindos Jurado Irene Garrido Sri Lanka Mangala Samaraweera33 M I M Rafeek Sweden Ulrika Modéer Magnus Lennartsson Switzerland Raymund Furrer Denise Lüthi Crisan Taipei,China Yu-Jer Sheu Tzung-Ta Yen Tajikistan Davlatali S. Said Nematullo Khikmatullozoda Thailand Apisak Tantivorawong Somchai Sujjapongse Timor-Leste Santina J.R.F. Viegas-Cardoso Helder Lopes

17 Succeeded Tukabu Tauati in December. 18 Succeeded Ilho Yoon in June. 19 Succeeded Arzybek Orozbekovich Kojoshev in August. 20 Succeeded Choijilsuren Battogtokh in October. 21 Succeeded Krishna Bahadur Mahara in June. 22 Succeeded Shanta Raj Subedi in October. 23 Succeeded Lilianne Ploumen in October. 24 Succeeded Steven Joyce in November; Steven Joyce succeeded Bill English in January. 25 Succeeded Tone Skogen in November. 26 Succeeded Henrik Harboe in September. 27 Succeeded Shahid Mahmood in September; Shahid Mahmood succeeded Tariq Mahmood Pasha in July; Tariq Mahmood Pasha replaced Tariq Bajwa in February. 28 Succeeded Rhinehart Silas in January. 29 Succeeded Patrick Pruaitch in August. 30 Succeeded Amando Tetangco in July. 31 Succeeded Jorge Costa Oliveira in August. 32 Succeeded John Maneniaru in December; John Maneniaru succeeded Snyder Rini in October. 33 Succeeded Ravi Karunanayake in May. CONTINUED

Member Governor Alternate Governor

Tonga Pohiva Tu’l’onetoa34 Pilimilose Balwyn Fa’otusia35 Turkey Osman Ҫelik Raci Kaya 36 Turkmenistan Merdan Annadurdyyev Muhammetgeldi Atayev Tuvalu Maatia Toafa Talavai Iona37 United Kingdom Penny Mordaunt MP38 Lord Bates39 United States Andrew Baukol40 (vacant) Uzbekistan Sukhrob R. Kholmuradov41 Azim I. Akhmedkhadjaev42 Vanuatu Gaetan Pikioune Letlet August43 Viet Nam Le Minh Hung Nguyen Thi Hong

34 Succeeded Tevita Lavemaau in September; Tevita Lavemaau succeeded ’Aisake Valu Eke in March. 35 Succeeded Tatafu Moeaki in January. 36 Succeeded Burhanettin Aktas in February. 37 Succeeded Vavau Fatuuga in October; Vavau Fatuuga succeeded Letasi lulai in July. 38 Succeeded Priti Patel in December. 39 Succeeded Rory Stewart in June. 40 Succeeded Jacob J. Lew in January. 41 Succeeded Batir Khodjaev in December. 42 Succeeded Sunnatillo Bekenov in December. 43 Succeeded Tony Amos Sewen in June. ANNUAL REPORT 2017 www.adb.org/ar2017

Keywords: voting groups, voting power, board, board of directors

Board of Directors and Voting Groups (January–December 2017)

Director Alternate Director Members Represented Kshatrapati Shivaji Sharafjon Sheraliev Afghanistan, Bangladesh, Bhutan, India, (Replaced by Mahbub Lao People’s Democratic Republic, Ahmed effective 9 Mar 2017) Tajikistan, Turkmenistan

Bhimantara Widyajala Mario Di Maio Armenia, Cook Islands, Fiji, Indonesia, (Replaced by Syurkani Ishak Kyrgyz Republic, New Zealand, Samoa, Kasim effective 1 Jul 2017) Tonga

Mathew Fox Scott Dawson Australia; Azerbaijan; Cambodia; Georgia; Hong Kong, China; Kiribati; Federated States of Micronesia; Nauru; Palau; Solomon Islands; Tuvalu

Mario Sander Philip Rose Austria, Germany, Luxembourg, Turkey, (Replaced by Helmut Fischer United Kingdom effective 1 Jul 2017)

Maurizio Ghirga Johannes Schneider Belgium, France, Italy, Portugal, Spain, (Replaced by Pierre-Emmanuel Switzerland Beluche effective 1 Oct 2017)

Philaslak Yukkasemwong Rokiah Hj Badar Brunei Darussalam, Malaysia, Myanmar, (Replaced by Anuar bin Ariffin (Replaced by Som Lal Subedi Nepal, Singapore, Thailand effective 1 Nov 2017) effective 16 Jul 2017)

David Murchison Joar Strand Canada, Denmark, Finland, Ireland, (vacant – since 1 Oct 2017) The Netherlands, Norway, Sweden

Zhongjing Wang Wenxing Pan People’s Republic of China (Replaced by Zhijun Cheng effective 21 Jan 2017)

Koichi Hasegawa Masashi Tanabe Japan (Replaced by Takeshi Kurihara effective 18 Jul 2017)

Muhammad Sami Saeed Paul Dominguez Kazakhstan, Maldives, Marshall Islands, (effective 1 Jul 2017) (effective 1 Jul 2017) Mongolia, Pakistan, Philippines, Timor-Leste

Hyoung Kwon Ko Bobur Khodjaev Republic of Korea; Papua New Guinea; (Replaced by In-chang Song (effective 25 Sep 2017) Sri Lanka; Taipei,China; Uzbekistan; effective 26 Sep 2017) Vanuatu; Viet Nam

Swati Dandekar Michael Strauss United States (vacant since 2 Jul 2017)

ANNUAL REPORT 2017 www.adb.org/ar2017

Keywords: committees, board of directors, board

Committees of the Board of Directors (as of 31 December 2017)

Audit Committee (ACB) Muhammad Sami Saeed (Chair) Pierre-Emmanuel Beluche Zhijun Cheng Kshatrapati Shivaji US ED Som Lal Subedi

Budget Review Committee (BRC) Kshatrapati Shivaji (Chair) Helmut Fischer Mathew Fox Takeshi Kurihara Wenxing Pan Michael Strauss

Compliance Review Committee (BCRC) Helmut Fischer (Chair) Anuar bin Ariffin Mahbub Ahmed Paul Dominguez Bobur Khodjaev Joar Strand

Development Effectiveness Committee (DEC) Syurkani Ishak Kasim (Chair) Muhammad Sami Saeed In-chang Song Scott Dawson Philip Rose Masashi Tanabe

Human Resources Committee (HRC) Zhijun Cheng (Chair) Anuar bin Ariffin Canadian ED Takeshi Kurihara Mario di Maio Johannes Schneider

Ethics Committee (ECB) Pierre-Emmanuel Beluche (Chair) Canadian ED Syurkani Ishak Kasim In-chang Song US ED*

* For a quorum, ED Fox will be a member of the Ethics Committee until the US ED commences. ANNUAL REPORT 2017 www.adb.org/ar2017

Keywords: ADB, ADBI, Asian Development Bank Institute

ADB Institute Advisory Council 2016–2018 (until September 2018)

Cinnamon Dornsife Senior Advisor, International Development Senior Fellow, Foreign Policy Institute The Paul H. Nitze School of Advanced International Studies Johns Hopkins University

Masahisa Fujita Professor, Konan University Project Professor, Kyoto University

Mohamad Ikhsan Special Advisor to the Vice-President of Indonesia

Pradeep K. Sinha Cabinet Secretary

Ulrich Volz Head of Department of Economics School of Oriental and African Studies (SOAS), University of London Senior Research Fellow, German Development Institute (DIE)

Yaobin Shi Vice Minister of Finance (and ADB Alternative Governor), People’s Republic of China

Yasuyuki Sawada Chief Economist Economic Research and Regional Cooperation Department Asian Development Bank

ANNUAL REPORT 2017 www.adb.org/ar2017

Keywords: organizational structure, organization, structure

Organizational Structure1 (as of 31 December 2017)

Board of Governors

Board of DIRECTORS

OFFICE OF THE COMPLIANCE REVIEW PANEL2 INDEPENDENT EVALUATION DEPARTMENT3 D. Tang, Chair President M. Taylor-Dormond, Director General T. Nakao SPECIAL SENIOR ADVISOR TO THE PRESIDENT A. Konishi J. Nugent X.Yao

asian development Vice-President Vice-President Vice-President Vice-President Vice-President Vice-President bank institute (Knowledge Management (Operations 1) (Operations 2) (Private Sector and (Finance and Risk Management) (Administration and N. Yoshino, Dean and Sustainable Development) W. Zhang S. Groff Cofinancing Operations) I. van Wees Corporate Management) B. Susantono D. Gupta D. Stokes

OFFICE OF DEPARTMENT OF south asia department east asia department PRIVATE SECTOR OPERATIONS OFFICE OF RISK MANAGEMENT Office of THE OMBUDSPERSON EXTERNAL RELATIONS H. Kim, Director General I. Bhushan, Director General DEPARTMENT (Under recruitment) the Secretary (Staff to join Q1 2018) S. Bindra, Principal Director M. Barrow, Director General W. Um, The Secretary

bangladesh PRC OFFICE OF COFINANCING Office of ECONOMIC RESEARCH AND REGIONAL COOPERATION Resident Mission Resident Mission OPERATIONS the Auditor General M. Parkash, Country Director B. Bingham, Country Director K. Preugschat, Head Controller’s OFFICE OF H. Ong, Auditor General DEPARTMENT Department ADMINISTRATIVE SERVICES Y. Sawada, Chief Economist C. Kim, Controller (Staff to join Q1 2018) and Director General BHUTAN mongolia Resident Mission Office of Resident Mission K. Lao-Araya, Country Director Y. Fernandez Lommen, ANTICORRUPTION SUSTAINABLE DEVELOPMENT Country Director AND CLIMATE CHANGE AND INTEGRITY Treasury Office of J. Versantvoort, Head DEPARTMENT A. Leung, Director General India Department the General Counsel Resident Mission P. Van Peteghem, Treasurer C. Stephens, General Counsel K. Yokoyama, Country Director SOUTHEAST ASIA OFFICE OF PUBLIC–PRIVATE DEPARTMENT PARTNERSHIP R. Subramaniam, Director General (Staff to join Q1 2018) nepal Budget, personnel, and Resident Mission Management Systems M. Khadmukhanov, CAMBODIA Department Country Director office of Resident Mission T. Oya, Director General the special project S. Tukuafu, Country Director facilitator sri lanka W. Evans, Special Project Facilitator Resident Mission S. Widowati, Country Director INDONESIA Operations Services and Resident Mission Financial Management W. Wicklein, Country Director Department Strategy and Policy R.Z. Teng, Director General Department T. Kimura, Director General CENTRAL AND WEST ASIA LAO PDR DEPARTMENT Resident Mission S. O’Sullivan, Director General Y. Negishi, Country Director OFFICE OF INFORMATION european SYSTEMS AND TECHNOLOGY representative office S. Hamid, Principal Director D. Kertzman, Representative afghanistan Myanmar Resident Mission Resident Mission S. Tumiwa, Country Director N. Sinsiri, Country Director

japanese representative office Armenia PHILIPPINES T. Matsuo, Representative Resident Mission COUNTRY OFFICE S. Rosenthal, Country Director R. Bolt, Country Director

north american AZERBAIJAN Thailand representative office Resident Mission Resident Mission B. Edes, Representative N. Mannapbekov, Country Director H. Iwasaki, Country Director

Georgia VIET NAM RESIDENT MISSION Resident Mission Y. Elhan-Kayalar, Country Director E. Sidgwick, Country Director

kazakhstan Resident Mission G. Capannelli, Country Director PACIFIC DEPARTMENT C. Locsin, Director General kyrgyz Republic Resident Mission C. McDeigan, Country Director PACIFIC liaison AND coordination OFFICE X. Fan, Regional Director pakistan Resident Mission X. Yang, Country Director PACIFIC SUBREGIONAL OFFICE R. Jauncey, Regional Director TAJIKISTAN RESIDENT MISSION P. Srivastava, Country Director PAPUA NEW GUINEA Resident Mission D. Hill, Country Director Turkmenistan resident mission C. Denizer, Country Director Timor-Leste Resident Mission P. Spantigati, Country Director uzbekistan resident mission T. Konishi, Country Director

1 To contact ADB Management and senior staff, go to www.adb.org/contacts/management-senior-staff. 2 The Compliance Review Panel reports to the Board of Directors. 3 The Independent Evaluation Department reports to the Board of Directors through the Development Effectiveness Committee. ANNUAL REPORT 2017 www.adb.org/ar2017

Keywords: internal administrative expenses, budget, administrative expenses

Summary of Internal Administrative Expenses 2017 and Budget for 2018 ($’000)

2017 Item Budget Actual 2018 Budget A. Board of Governors 2,187 1,816 2,417 B. Board of Directors 33,225 28,842 33,500 Offices of the Directors 18,502 15,878 17,791 Accountability Mechanism 2,638 2,409 2,851 Independent Evaluation 12,085 10,554 12,858 C. Operational Expenses 483,927 441,873 502,639 Salaries 251,065 231,897 261,088 Benefits 151,189 138,257 158,423 Contribution to Staff Retriement Plan a 55,997 51,919 55,997 Staff development 7,500 8,007 8,898 Relocation 9,104 8,088 7,170 Consultants 29,564 25,477 31,229 Business travel 34,925 29,700 35,294 Representation 580 446 537 D. Administrative Expenses 129,926 109,406 129,373 Communications 8,477 5,834 9,541 Office occupancy 34,549 28,882 33,273 Library and subscription 5,794 5,082 6,104 Office supplies 1,565 1,358 1,348 Equipment, maintenance, and support 11,619 11,765 13,370 Contractual services 33,928 29,002 34,300 Insurance 7,540 6,362 7,505 Depreciation 25,110 20,262 23,106 Miscellaneous 1,344 859 826 Total Regular Premiums 649,265 581,937 667,929 E. General Contingency 6,493 0 6,679 Gross IAE 655,758 581,937 674,608 F. Fee Reimbursements (8,770) (8,717) b (9,000) G. Net IAE 646,988 573,220 665,608 SRP Switch Incentive Scheme … … 6,656 H. Net IAE after ESP Swith Incentive Scheme 646,988 573,220 672,264 c I. Carryover of IAE Budget … 12,940 d … J. Net IAE after Carryover and ESP Switch Incentive Scheme 646,988 586,160 672,264 Sponsor Funded Program 1,025 1,039 1,518

2017 aaaaaa2018 Estimate Actual Estimate Memo Item (A) (B) (C) Gross Administrative Expenses 655,758 581,937 e 681,264 Accounting Adjustments 114,052 52,089 25,062 Accrual for SRP 112,600 79,396 50,939 Accrual for GMIP/PRGMIP 29,260 11,666 11,494 Loan origination cost f (27,808) (36,964) (37,371) Other adjustments g … (2,009) … Overall Administrative Expenses 769,810 634,026 706,326 … = not available or not calculated, ( ) = negative, GMIP = Group Medical insurance Plan, IAE = internal administrative expenses, PRGMIP = post-retirement group medical insurance plan, SRP = staff retirement plan. Note: Numbers may not sum precisely because of rounding. a Excludes SRP contribution for the Board of Directors. The SRP budget for the Board of Directors is included under the Board of Directors budget category. b This amount reflects the estimated total expenses apportioned during the year for administering external funds, excluding Japan funds for which the costs are charged to the funds. c Net IAE for 2018 consists of $657.6 million (including $6.7 million for SRP switch incentive scheme) for ADB, $12.9 million for Independent Evaluation Department, and $1.8 million for the Compliance Review Panel and Office of the Compliance Review Panel. d The purpose of budget carryover is to ensure funding for urgent, unplanned special initiatives, delayed projects, and the unfinished program of prior year’s activities without distorting the funding for the current year’s regular work program and without placing pressure on the general contingency. ADB carried over $12.9 million to 2018—2.0% of the 2017 net IAE budget. The unspent balance of the budget carryover will lapse at the end of the budget calendar year. e Refers to actual gross IAE before adjusting for fee reimbursements. f Refers to administrative expenses related to loan origination. Accounting standards requires that a portion of the loan origination costs be deferred and amortized over the life of the loan. ADB defers 20 basis points of the amount of loans that become effective to represent the amount of loan origination costs that need to be deferred. g Refers to adjustments net of accrued resettlement and repatriation allowances and severance payments, costs for Afghanistan Guest House and Country Director Residence and Public Information Center and other miscellaneous items, and expenses of the Japan Special Fund. ANNUAL REPORT 2017 www.adb.org/ar2017

Keywords: salaries, board of directors, management, remuneration

Remuneration of the Board of Directors and ADB Management

The salaries of Directors and Alternate Directors and the President are determined by the Board of Governors, while the salary of the Vice-Presidents is determined by the Board of Directors.1

For 2017, the annual base salaries2 of the President, Directors and their Alternates, and Vice-Presidents are:

2017 Annual Base Salary of the Board of Directors and ADB Management (in US dollars per annum)

$

a,c President 459,579 b,c Directors 243,942 b,c Alternate Directors 208,570 b,c Vice-Presidents 295,841

a Effective 1 June 2016. b Effective 1 August 2016. c ADB maintained the 2016 salaries of the Board and Vice-Presidents until the next convening of the Remuneration Committee.

1 The salaries are denominated in US dollars and are tax-exempt, unless the official's government authorities determine that the income from ADB is subject to taxation. ADB's Directors and Alternate Directors, President, and Vice-Presidents also receive an expatriate benefits package similar to that of ADB's international staff that includes housing subsidy, education assistance, worldwide medical insurance, pension plan, life and disability insurance, and home leave. ADB's President receives a special representation allowance determined by the Board of Governors in accordance with Section 5 of the By-Laws of the Asian Development Bank. The President's special representation allowance for 2017 is $38,836. 2 ADB's Public Communications Policy requires that ADB make publicly available the annual base salaries of the members of the Board of Directors and Management. ANNUAL REPORT 2017 www.adb.org/ar2017

Keywords: representation, members

Staff Representation of ADB Members (as of 31 December 2017)

National Staff and/or International Administrative Member Management Staff Staff Total Regional Afghanistan 0 2 19 21 Armenia 0 3 6 9 Australia 1 69 8 78 Azerbaijan 0 1 8 9 Bangladesh 0 5 48 53 Bhutan 0 3 2 5 Brunei Darussalam 0 1 0 1 Cambodia 0 0 29 29 China, People’s Republic of 1 63 58 122 Cook Islands 0 0 0 0 Fiji 0 1 16 17 Georgia 0 2 8 10 Hong Kong, China 0 8 0 8 India 1 80 61 142 Indonesia 1 30 31 62 Japan 1 143 3 147 Kazakhstan 0 7 11 18 Kiribati 0 0 0 0 Korea, Republic of 0 63 1 64 Kyrgyz Republic 0 8 13 21 Lao People’s Democratic Republic 0 2 21 23 Malaysia 0 19 0 19 Maldives 0 0 0 0 Marshall Islands 0 1 0 1 Micronesia, Federated States of 0 0 0 0 Mongolia 0 2 21 23 Myanmar 0 2 9 11 Nauru 0 0 0 0 Nepal 0 13 40 53 New Zealand 0 23 0 23 Pakistan 0 31 40 71 Palau 0 0 0 0 Papua New Guinea 0 0 13 13 Philippines 0 45 1,381 1,426 Samoa 0 1 1 2 Singapore 0 14 1 15 Solomon Islands 0 0 1 1 Sri Lanka 0 12 32 44 Taipei,China 0 5 0 5 Tajikistan 0 2 15 17 Thailand 0 8 10 18 Timor-Leste 0 0 7 7 Tonga 0 3 2 5 Turkmenistan 0 0 4 4 Tuvalu 0 1 0 1 Uzbekistan 0 11 16 27 Vanuatu 0 1 1 2 Viet Nam 0 12 50 62 Subtotal 5 697 1,987 2,689 CONTINUED

National Staff and/or International Administrative Member Management Staff Staff Total Nonregional Austria 0 7 0 7 Belgium 0 7 0 7 Canada 0 51 0 51 Denmark 0 5 0 5 Finland 0 4 0 4 France 0 37 1 38 Germany 0 42 2 44 Ireland 0 5 0 5 Italy 0 23 0 23 Luxembourg 0 1 0 1 The Netherlands 1 17 0 18 Norway 0 0 0 0 Portugal 0 6 0 6 Spain 0 22 0 22 Sweden 0 5 0 5 Switzerland 0 8 0 8 Turkey 0 4 0 4 United Kingdom 0 56 0 56 United States 1 139 1 141 Subtotal 2 439 4 445 TOTAL 7 1,136 1,991 3,134 ANNUAL REPORT 2017 www.adb.org/ar2017

Keywords: resident mission, staffing, field office

Number of Authorized Positions in Resident Missionsa (as of 31 December 2017)

International National Administrative Country Staff Staff Staff Total Resident Missions I. Operations 1 South Asia Bangladesh 8 21 27 56 Bhutan 2 2 4 8 India 18 34 33 85 Nepal 6 17 18 41 Sri Lanka 6 15 16 37 Central and West Asia Afghanistan 8 12 12 32 Armenia 3 4 3 10 Azerbaijan 3 5 3 11 Georgia 5 6 4 15 Kazakhstan 3 7 5 15 Kyrgyz Republic 2 6 7 15 Pakistan 9 20 19 48 Tajikistan 2 5 11 18 Turkmenistan 1 3 1 5 Uzbekistan 5 10 10 25 II. Operations 2 East Asia China, People’s Republic of 17 32 27 76 Mongolia 4 11 8 23 Southeast Asia Cambodia 7 14 14 35 Indonesia 16 15 15 46 Lao People’s Democratic Republic 6 12 12 30 Myanmar 10 5 5 20 Philippines 6 7 3 16 Thailand 12 6 5 23 Viet Nam 18 24 23 65 Pacific Pacific Liaison and Coordination Office in Sydney, Australiab 5 8 7 20 Pacific Subregional Office in Suva, Fijic 7 10 11 28 Papua New Guinea 5 6 9 20 Timor-Leste 3 4 3 10 Subtotal 197 321 315 833

Representative Offices Europe 2 1 2 5 Japan 2 1 2 5 North America 2 1 2 5 d Subtotal 6 3 6 15

Headquarterse 943 509 962 2,414

TOTAL 1,146 833 1,283 3,262 a Includes outposted positions. b Covers Nauru, Solomon Islands, and Vanuatu. c Covers the Cook Islands, Fiji, Kiribati, Samoa, Tonga, and Tuvalu. d Excludes outposted staff from Treasury Department and Controller’s Department for organizational resilience. e Excludes Young Professionals and Board of Directors. ANNUAL REPORT 2017 www.adb.org/ar2017

Keywords: resident mission, staffing, field office

Growth in Resident Missions and Authorized Staff Positions at Resident Missions (as of 31 December 2017)

Number of Resident Missions and Authorized Positions Item 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 a a b c a Number of resident missions (RMs) 23 23 24 25 26 26 28 29 29 28 28 28 Total authorized positions at RMs 448 490 520 553 604 662 680 694 708 735 780 833 International staff (IS) and national staff (NS) positions at RMs 267 300 321 339 368 409 423 423 437 452 479 518 d International staff 96 112 119 130 134 141 145 141 151 159 176 197 d National staff 171 188 202 209 234 268 278 282 286 293 303 321 Administrative staff 181 190 199 214 236 253 257 271 271 283 301 315

Total authorized positions at ADB 2,340 2,381 2,498 2,550 2,800 2,960 3,050 3,062 3,068 3,096 3,148 3,262 IS and NS positions at ADB 1,271 1,304 1,378 1,418 1,596 1,761 1,828 1,828 1,834 1,851 1,887 1,979 e International staff 824 836 875 892 982 1,028 1,072 1,072 1,074 1,080 1,098 1,146 National staff 447 468 503 526 614 733 756 756 760 771 789 833 Administrative staff 1,069 1,077 1,120 1,132 1,204 1,199 1,222 1,234 1,234 1,245 1,261 1,283

Percent of authorized positions at RMs to total authorized positions at ADB 19.1 20.6 20.8 21.7 21.6 22.4 22.3 22.7 23.1 23.7 24.8 25.5 Percent of IS and NS positions at RMs to total IS and NS positions at ADB 21.0 23.0 23.3 23.9 23.1 23.2 23.1 23.1 23.8 24.4 25.4 26.2 International staff 11.7 13.4 13.6 14.6 13.6 13.7 13.5 13.2 14.1 14.7 16.0 17.2 National staff 38.3 40.2 40.2 39.7 38.1 36.6 36.8 37.3 37.6 38.0 38.4 38.5 Administrative staff 16.9 17.6 17.8 18.9 19.6 21.1 21.0 22.0 22.0 22.7 23.9 24.6 a Excludes Turkey Regional Office. b Includes Extended Mission to Myanmar and Turkey Regional Office. c Includes Bhutan Resident Mission. d Includes outposted positions, excludes outposted staff from Treasury Department and Controller's Department for organizational resilience. e Excludes Young Professionals and Board of Directors.