Summary of Proceedings Thirty-Eighth Annual Meeting of the Board of Governors Istanbul, Turkey 4-6 May 2005 Asian Development Bank INTRODUCTORY NOTE The Thirty-Eighth Annual Meeting of the Board of Governors of the Asian Development Bank was held in Istanbul, Turkey from 4 to 6 May 2005. This Summary of Proceedings of the Meeting is presented in accordance with the provisions of Section 9 of the Rules of Procedure of the Board of Governors. JEREMY H. HOVLAND The Secretary Asian Development Bank June 2005 CONTENTS Summary of Proceedings of the Thirty-Eighth Annual Meeting of the Board of Governors ............................................. 1 Schedule of Meeting .......................................................................................... 4 Provisions Relating to Conduct of Meeting ...................................................... 5 Agenda ................................................................................................................ 7 Address by the Prime Minister of Turkey.......................................................... 8 Opening Address by the Minister of State in-charge of Economy of Turkey ................................................................................. 12 Address by the Chairperson of the Board of Governors and Governor for Turkey ........................................................................ 18 Address by the President of ADB .................................................................... 22 Order of Speaking . .............................................................................................28 Statements by Governors Afghanistan .............................................................................................. 29 Australia .................................................................................................. 32 Austria .................................................................................................. 34 Azerbaijan ................................................................................................ 37 Bangladesh .............................................................................................. 39 Belgium .................................................................................................. 44 Bhutan .................................................................................................. 47 Cambodia ................................................................................................ 50 Canada .................................................................................................. 53 China, People's Republic of.................................................................... 56 Denmark . ...................................................................................................58 Finland .................................................................................................. 59 France .................................................................................................. 62 Germany .................................................................................................. 64 Hong Kong, China .................................................................................. 66 India .................................................................................................. 69 Indonesia ................................................................................................ 76 Italy .................................................................................................. 78 Japan .................................................................................................. 82 Kazakhstan ............................................................................................... 89 Republic of Korea.................................................................................... 94 Kyrgyz Republic ....................................................................................... 96 Lao People's Democratic Republic ......................................................... 99 Luxembourg .......................................................................................... 101 Malaysia ................................................................................................ 103 Maldives ................................................................................................ 105 Mongolia ................................................................................................ 108 Myanmar ................................................................................................ 109 Nepal ................................................................................................ 112 The Netherlands .................................................................................. 116 New Zealand ......................................................................................... 119 Norway ................................................................................................ 122 Pacific Developing Member Countries ................................................ 125 Pakistan ................................................................................................ 131 Philippines ............................................................................................ 135 Portugal ................................................................................................ 138 Singapore .............................................................................................. 140 Solomon Islands ................................................................................... 142 Spain ................................................................................................ 145 Sri Lanka ............................................................................................... 147 Sweden ................................................................................................ 149 Switzerland ............................................................................................ 151 Taipei,China .......................................................................................... 155 Tajikistan ............................................................................................... 155 Thailand ................................................................................................ 160 Turkmenistan ........................................................................................ 163 United Kingdom ................................................................................... 164 United States ........................................................................................ 167 Uzbekistan ............................................................................................. 170 Viet Nam ............................................................................................... 173 vi Remarks by the Chairperson-Elect of the Board of Governors and Governor for India ........................................................................ 176 Closing Remarks by the President of ADB ................................................... 177 Closing Remarks by the Chairperson of the Board of Governors and Governor for Turkey ..................................... 180 Reports of the Board of Directors Presented at the Meeting: Financial Statements and Independent Auditors' Reports ........................................................................... 181 Allocation of Net Income ..................................................................... 182 Budget for 2005 .................................................................................... 183 Resources of ADB ................................................................................. 191 Review of Rules and Regulations: ........................................................ 193 (i) Amendments to Statute of ADB Institute (ii) Amendments to Special Operations Loan Regulations (iii) Amendments to the Regulations of the Asian Development Fund and Adoption of Special Operations Grant Regulations (iv) Adoption of Asian Tsunami Fund Technical Assistance Grant Regulations and the Asian Tsunami Fund Grant Regulations Report of the Procedures Committee for 2004/2005 .................................... 298 Resolutions Adopted at the Meeting No. 306 - Place and Date of Fortieth Annual Meeting (2007) .......... 301 No. 307 - Financial Statements and Independent Auditors' Reports ................................................................. 301 No. 308 - Allocation of Net Income ................................................... 302 vii List of Official Participants Governors and their Delegations ...........................................................303 Observers ............................................................................................... 327 Board of Directors ................................................................................. 330 Principal Officers and Senior Staff Who Attended the Meeting........................................................... 331 Officers of the Board of Governors and Procedures Committee for 2004/2005 and 2005/2006 ............................................ 334 viii SUMMARY OF PROCEEDINGS OF THE THIRTY-EIGHTH ANNUAL MEETING OF THE BOARD OF GOVERNORS The Thirty-Eighth Annual Meeting of the Board of Governors was held in Lutfi Kirdar Istanbul Convention and Exhibition Centre in Istanbul, Turkey