Annual Report 2007

The People’s Republic of China (PRC) has emerged as a leading producer of manufactured exports, with strong growth occurring across a range of sectors. Mongolia has also experienced strong growth recently. Both countries are active in regional cooperation programs.

A new country partnership strategy for 2008–2010 was drafted for the PRC in consultation with the Government. The strategy focuses on resource efficiency and environmental sustainability, inclusive growth and balanced development, regional cooperation, and private sector development. Knowledge, innovation, and governance support are crosscutting themes. In Mongolia, ADB’s assistance is directed mainly at private sector–led economic growth and inclusive social development to achieve the country’s Millennium Development Goals. Infrastructure projects remain a key component of the program. ADB’s nonsovereign approvals in the region totaled $534 million (Statistical Annex 10).

The PRC has been active in regional cooperation programs and initiatives, including the Central Asia Regional Economic Cooperation (CAREC) Program and the Greater Mekong Subregion (GMS). Demand from the PRC has strengthened economies in the region and beyond. Regional transport development is a focus of Mongolia’s participation in CAREC. Mongolia also participates in CAREC’s Coordination Committee on Trade Facilitation to promote cross-border trade and customs cooperation. Both the PRC and Mongolia have participated as well in subregional cooperation initiatives to prevent sand and dust storms and reduce transboundary pollution in Northeast Asia. Technical assistance to the PRC and Mongolia has helped develop investment regulations, economic development strategies, competition policy, laws, and standards.

The comprehensive project performance management system and portfolio management action plan of the East Asia Department have constantly guided project processing and implementation, and have improved project design from concept design to project completion. Project-readiness filters and checklists specific to countries are an important component of the action plan. In the case of the PRC, a six-point portfolio management action plan was reconfirmed with the Government during the country portfolio review mission in August. A strong focus on project administration and more mission days spent on prob-lem projects helped resolve implementation issues.

At the end of December, 52 loans were under administration in the PRC. Contract awards and disbursements under sovereign loans reached 118% and 108% of projections, respectively. In Mongolia, 14 loans were under administration (Table 19). Contract awards and disbursements under sovereign loans reached 52% and 100% of projections, respectively. Two loans—the PRC’s Southern Gansu Roads Development Project and Mongolia’s Urban Development Sector Project—were at risk because of delays in loan effectiveness.