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Luxembourg

The Development Cooperation Directorate, part of Luxembourg’s Ministry of Foreign and European Affairs, manages the country’s official development assistance, while the Ministry of Finance oversees cooperation with international financial institutions. Lux-Development formulates and conducts the country’s cooperation projects with partner states.

Luxembourg’s development cooperation focuses on four priority themes: (i) improvement of access to quality basic social services, (ii) socioeconomic integration of women and youth, (iii) promotion of sustainable and inclusive growth, and (iv) promotion of inclusive governance. In addition, three crosscutting themes are emphasized: human rights, women’s equality, and environmental sustainability. In Asia, the priority countries are the Lao People’s Democratic Republic, Mongolia, and Viet Nam.

Lux-Development’s Vision 2030 aligns with the 2030 Agenda for Sustainable Development and Sustainable Development Goals, particularly Luxembourg’s General Cooperation Strategy, The Road to 2030, which sets out Luxembourg’s commitments on development cooperation and humanitarian action.

Since becoming a member in 2003, Luxembourg has committed $94 million to special funds, of which $64.8 million is for the Asian Development Fund (ADF). The ADF provides grants to ADB’s low-income, developing member countries to help reduce poverty and improve the quality of life.

Priorities

  • Access to quality basic social services
  • Socioeconomic integration of women and youth
  • Inclusive and sustainable growth
  • Inclusive governance
Source:

The Road to 2030

News

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$5 Billion Asian Development Fund Replenishment Agreed to Support Most Vulnerable People in Asia and Pacific

3 May 2024

Donors and ADB have agreed to a replenishment of $5 billion for ADB’s Asian Development Fund (ADF) 14 and Technical Assistance Special Fund (TASF) 8. The commitment was made during ADB’s 57th Annual Meeting.

Stories

Knowledge

ADB and Luxembourg collaborated on several knowledge products, including the following:

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Asia and the Pacific Futures Dialogue

ADB, in partnership with the Ministry of Finance Luxembourg and the University of Luxembourg, conducted the Asia Pacific Futures Dialogue from 12 to 13 June 2024 in Luxembourg. The event aimed to understand the developments and challenges in the financial landscape of developing Asia and the Pacific region and explore differentiated approaches for achieving a sustainable finance sector, including the roles of potential donors with innovative financial solutions and mechanisms.

Active Trust Funds

Active trust funds are those a) with ongoing projects; or b) with no active projects but have remaining funds.

Financing Commitments

Luxembourg contributes to ADB’s development initiatives through two key avenues: Cofinancing and Special Funds.

Over the last 5 years, there are no project-specific cofinancing and trust funds contribution.

Luxembourg’s contribution to ADB’s Special Funds are as follows: Asian Development Fund ($64.8 million); Technical Assistance Special Fund ($4.3 million); Financial Sector Development Partnership Special Fund ($23.9 million); and Asian Tsunami Fund ($1 million).

2024 cofinancing highlights

Nonsovereign Cofinancing. The Trade and Supply Chain Finance Program (TSCFP) supported 8 transactions valued at $1.4 million with a bank operating in Luxembourg from 2009 to 2024. During the same period, the TSCFP supported over 20 Luxembourg exports and/or imports valued at $27.7 million. In 2024 alone, the TSCFP supported 2 Luxembourg exports and/or imports valued at $1.3 million. Exports and/or imports were mainly to/from Pakistan, Bangladesh, and Viet Nam. Underlying goods involve mostly raw and non-energy commodities, industrial machinery and capital goods, as well as technology and communications.

Projects