Faced with the demand from activists of an estimated 150 nongovernmental organisations (NGOs) here that development cannot be at the cost of environment, the Asian Development Bank (ADB) announced it would allocate one billion dollar loan towards clean energy.

Ahead of the bank's annual meeting starting here today, ADB President Haruhiko Kuroda of Japan said the bank was equally worried over the impact of rapid development on environment. Apart from providing basic services like clean water and

sanitation along with training and education for jobs, “we must ensure growth does not come at the expense of the environment”, he added.

He said the bank has high on its agenda a growth agenda that is inclusive of environment concerns and the one billion dollar energy efficiency initiative is aimed at promoting clean energy development projects.

Kuroda's remarks assume significance against the backdrop of the protests by NGOs like Greenpeace against ADB's funding of what termed as “dirty coal plants.”

However, the NGOs are not

impressed by the ADB chief's announcement and plan to ramp up their protests in the next few days starting tomorrow when Indian Prime Minister Manmohan Singh inaugurates the annual meeting.

ADB sources said participants at the Bank's meeting are likely to stress on tackling environmental concerns including issues like rehabilitation.

India is expected to emphasise that ADB should not insist on their standards but should rather honour the established procedures followed by individual countries.