Regions and Countries

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p. 7 of 7 BACK | NEXT I. Current Development Trends and Issues II. Implementation of the Country Strategy and Program III. Portfolio Management Issues IV. Country Performance and Assistance Levels

Country Strategy and Program Update 2007-2008: People's Republic of China

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IV. Country Performance and Assistance Levels

A. Proposed Lending Level

30. The CSPU has programmed total lending of $3.0 billion for 2007–2008 (Appendix 1, Table A1.10). Annual average lending of around $1.5 billion is programmed as follows: 41.0% for transport, 25.3% for agriculture and natural resources, 22.5% for social infrastructure, and 11.3% for energy. About 85% of these projects will be in the central and western provinces.

B. Nonlending Program

31. The annual nonlending program will be $12.65 million for 2007 and $10.90 million for 2008 (Appendix 1, Table A1.11). The focus of the TA programs has been sharpened further to enhance the strategic focus of ADB operations and help the Government’s achieve the objectives of the 11th FYP. These will include (i) policy and institutional reforms; (ii) legal reforms and governance; (iii) capacity building of agencies that are or will be EAs/IAs for ADB-financed projects; and (iv) sectors or subsectors where advisory TA assistance is expected to create lending opportunities for ADB. The outputs of advisory TAs should contribute to making ADB a knowledge bank.

C. Summary of Changes to Lending and Nonlending Program

32. Compared with the CSP’s (2004–2006) lending program, ¹³ the 2007–2008 lending program will be spread more evenly across sectors. Most notably, the proportion of lending to agriculture and natural resources will more than double from 10.0% to 25.3%, and the social infrastructure sector’s share will increase from 15.0% to 22.5%. Gansu Heihe Hydropower Development projects, which are included in the lending program, will be the first to adopt the MFF in the PRC. The nonlending program has been adjusted in line with the lending program.

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