with 28 per cent; and transport and com- munications with 17 per cent. Bank lending to the energy sector decreased markedly to 13 per cent of total loans, and development finance institutions accounted for about 13 per cent.
The Bank approved four equity investments totaling $3.7 million during the year, bringing the cumulative amount to $7 million since the start of equity investment in 1983. Early this month the initial $10 million allocation for equity operations was raised by $25 million.
Twenty-three projects were co-financed during the year, the same number as in 1984, though the amount declined by nearly half to $640 million. This was partly as a conse- quence of the decline in Bank lending itself and partly because of prudent debt manage- ment policies of major borrowers, designed to reduce their commercial borrowings.
The Bank continues to improve its reputation as a sound development financing institution producing high quality projects. Post-evaluation of completed projects shows that a high proportion have been successful in achieving their objectives. Aiming for even better performance, the Bank, in recent years, has become more deliberate in programming its assistance and has increasingly engaged in policy dialogues, particularly on sectoral issues that affect project performance.
In an effort to speed up project implementation, major advances were made to improve the Bank's project monitoring
system. A streamlined management informa- tion system was installed, and monthly reviews by heads of Project Departments and quarterly reviews by Management of all on- going projects were instituted.
In 1985, the Bank approved technical assistance amounting to $181 million for 142 projects which was notably higher than in 1984. Of this total, $34 million was provided on a grant basis. A proposal to earmark a cer- tain amount of ADF replenishment for the Bank's Technical Assistance Special Fund has been agreed on by the donor countries as a means of ensuring its adequate and regular funding.
Total loan disbursements increased by only 1 per cent in 1985 despite a substantial increase in disbursement of ADF loans. The decline in disbursements on loans from or- dinary capital resources in 1985 reflects a slowdown in project implementation in many borrowing countries caused by domestic resource constraints.
During 1985, the Bank reassessed its overall strategy for assisting the private sec- tor and introduced a new initiative designed to promote private sector development: lend- ing to the private sector without government guarantees. A new Private Sector Division was established within the Bank this March to function as the focal point for and coordinate all the ADB's private sector activities in our developing member countries. The Division will identify opportunities for Bank Involve- ment in private sector projects; process loan, technical assistance and equity proposals;
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