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MANILA, PHILIPPINES (26 September 2005) - ADB plans loan assistance totaling about $4.5 billion for the People's Republic of China (PRC) over the three years 2006-2008, according to a Country Strategy and Program Update endorsed by ADB's Board of Directors.
The thrust of ADB's operations in the PRC is to help reduce poverty by promoting pro-poor equitable and inclusive growth. In the three-year period, ADB will continue to focus on reducing the inequality between the coastal and interior provinces and the income gap between urban and rural populations. About 85% of the projects will be located in the relatively deprived central and western provinces of the country.
Planned projects will support road and railway infrastructure to underdeveloped consumer markets, strengthen agriculture development, provide electricity to rural areas, and support integrated water resource management to minimize damage from droughts and floods in poor provinces.
The projects will draw on knowledge-based products that can promote growth that benefits the poor, including rural water management reform, agriculture taxation, town-based urbanization, distance learning in poor areas, HIV/AIDS protection on road projects, and financing compulsory education.
The PRC has made remarkable progress in poverty alleviation, reducing the number of rural poor (using the official poverty line) from about 250 million in 1978 to 26 million in 2004. There has also been progress on several non-income aspects of poverty, with the PRC poised to achieve the Millennium Development Goals pertaining to maternal health and primary education.
"ADB is committed to continue our partnership with the PRC to sharpen the fight against poverty to ensure that the country's progress on alleviating poverty can be sustained. More targeted and innovative approaches are needed to achieve the MDGs and to help remote and disadvantaged communities and the large population on the brink of poverty," says Toru Shibuichi, ADB Country Director for the PRC.
"ADB's proposed projects will target the provinces that contain more than 80% of the country's poor. We will continue to focus on poverty-related policy work in such areas as social protection, strengthening the role of nongovernment organizations, and cooperating with other development partners."
Recognizing the strong correlation between poverty and the environment, the Government has asked for ADB's continual support in protecting and improving the environment. The 2006-2008 program will therefore include soil and water resource management, urban environmental improvement, and clean energy and energy conservation development.
ADB also strongly supports the Government's fight against corruption and its efforts to strengthen governance. ADB will continue to provide training to government officials on how to detect fraud and corruption, while nonlending assistance will include helping the Government to strengthen its project inspection system.
ADB will continue to discuss strengthening trade and transport coordination with the Government and includes projects related to regional cooperation in the Greater Mekong subregion and Central Asia Regional Economic Cooperation in the program. ADB is also working with the PRC to support regional cooperation on combating dust and sandstorms in
The lending program will be complemented by grants amounting to about $11 million annually over the three-year period. They will focus on operational support and policy-related and knowledge-based products. Operational support will include work on transport, energy, land management, water supply and wastewater treatment, urban development, education and health, and environment.
Policy and knowledge-based products will cover support for policy reform and deepening the impact of ADB lending projects, financial sector reform, law and development, fiscal reform, and support for education and health.
CSPs define ADB's medium-term development strategy as agreed with the country. A CSP update is usually prepared every year taking into account the continued relevance of the CSP, its implementation, and ADB's operational program.
Read the full CSP Update.
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