China, People's Republic of: People's Republic of China: Supporting Fiscal Reforms in High Priority Sectors

Sovereign Project | 42003-012 Status: Closed


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Project Name People's Republic of China: Supporting Fiscal Reforms in High Priority Sectors
Project Number 42003-012
Country China, People's Republic of
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7095-PRC: People's Republic of China: Supporting Fiscal Reforms in High Priority Sectors
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Public sector management - Public expenditure and fiscal management

Gender Equity and Mainstreaming No gender elements
Project Rationale and Linkage to Country/Regional Strategy

Project Outcome

Description of Outcome
Progress Toward Outcome Policy research work on health care financing was completed in September 2012, with the macro analysis of current fiscal investment on the health sector prepared in February 2012. Analysis and policy recommendations on local management of government debt are complete, with blueprint for local government debt management, and conference was held in June 2012. Policy research work on local treasury cash management is complete and policy note on local treasury cash management was published in 2012.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

Output A: Work under Output A is complete.

(1.1) Preparatory work commenced following the finalization of health sector policy reforms in April 2009. ADB discussed implementation arrangements for this component with the Government in August 2009 and consultants were fielded in November 2009 and April 2010. In June 2010, agreement on the policy framework of TA implementation was reached: (i) analysis of status of implementation of healthcare system reform; and (ii) select 4 ongoing experiments on subsidy mechanism on grassroots healthcare facilities.

(1.2) The Senior Health Evaluation Specialist was recruited in November 2009. The Health Economics and Financing Specialist and the Senior Health Reform and Evaluation Specialist (team leader) were recruited in April 2010 and May 2010, respectively.

(1.3) Consultants were fielded in June 2010 to work on analysis of status of implementation of health care system reform. The research work plan and budget for strengthening the evaluation component of the 4 ongoing experiements on reforming subsidy mechanisms for grassroot facilities was approved in January 2011. The health monitoring and evaluation specialist started work in February 2011. Consultants implemented the research plan: (i) survey instruments were

developed; and (ii) initial drafts of some reports in Chinese were available, with macro-analysis on the current fiscal investment in the health sector completed.

(1.4) Field survey was conducted in Tieling, Liaoning Province in April 2011. This was followed by the survey work in Suqian, Jiangsu Province in May 2011. Survey work in Zhichang was done in October 2011.

(1.5) A midterm workshop on health sector reform, with 20 participants, was held in July 2011 to discuss preliminary findings of the study and health policy issues in PRC.

(1.6) A study tour of health officials to Canada was conducted on 16-21 October 2011 to learn from the Canadian experience and best practices. The study tour included Vancouver, Ottawa, and Toronto.

(1.7) The final English language report titled "Government Investment Model and Compensation Mechanism for Healthcare Facilities" was received in September 2012 and was endorsed by the Government.

Output B - Work under Output B is complete.

(2.1) Progress in implementing Output B was achieved. The draft inception report was discussed with MOF in August 2009 and recommended changes in the report. The revised inception report was submitted in March 2010 and accepted by ADB as the interim/draft report.

(2.2) The final report on the blueprint for better management of subnational government implicit and explicit debt was submitted in December 2010 and presented/discussed in January 2011. Agreement was reached on the preparation of a publication on the policy recommendations and the conduct of an international workshop on local government indebtedness by early 2012. Due to sensitivity of issues on local government debt, the publication was not pursued and only the international workshop pushed through in June 2012.

Output C - Work on Output C is complete.

(3.1) Output C has progressed well and is complete. The report on international treasury cash management was submitted in April 2010. The report (English version) on domestic treasury cash management was submitted in October 2010 (Chinese version was done in June 2010). An updated and combined treasury cash management report was completed in September 2011. A policy note on local treasury cash management was prepared and published as ADB's Observations and Suggestions.

(3.2) Pilot research visits were conducted in June-September 2010. Draft reports on the pilot research visits were submitted in October 2010 and key findings were presented in January 2011.

(3.3) Two conferences on local treasury cash management (Sanya, Hainan and Guilin, Guangxi) and one expert group meeting had been conducted.

Geographical Location PRC

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design ADB conducted consultations with key government institutions like the Ministry of Finance, National Development and Reform Commission, Ministry of Health and the Institute of Fiscal Studies.
During Project Implementation ADB conducted consultations with the Ministry of Finance, Ministry of Health, National Development and Reform Commission, China Financial Policy Research Center of Renmin University of China, and development partners like the World Bank, World Health Organization, USAID, among others.

Business Opportunities

Consulting Services

Consulting services for the following expertise are estimated:

A. Component on Fiscal Policy Support for the Health Sector Reforms:

1. National Senior Health Reform and Evaluation Specialist/Team Leader (4 person-months);

2. National Health Economics and Financing Specialist (3 person-months);

3. International Senior Health Evaluation Specialist (2.7 person-months); and

4. National Health Systems Reform and Evaluation Specialist (duration of engagement still to be determined).

B. Component on Management of Subnational Government Liabilities:

1. International Public Debt Management Expert (4.6 person-months); and

2. National Debt Management Specialist (firm) (18 person-months).

C. Component on Local Treasury Cash Management:

1. International Treasury Management Specialist (1 person-month);

2. National Budget Specialist (5.8 person-months);

3. International Treasury Management Expert (1 person-month);

4. National Treasury Management Expert (2 person-months).

Responsible Staff

Responsible ADB Officer Jorn Brommelhorster
Responsible ADB Department East Asia Department
Responsible ADB Division Office of the Director General, EARD
Executing Agencies
Ministry of Finance
Xiaolong Mo
International Department, Ministry of Finance


Concept Clearance 18 Mar 2008
Fact Finding 14 Apr 2008 to 21 Apr 2008
Approval -
Last Review Mission -
PDS Creation Date 22 Apr 2008
Last PDS Update 27 Mar 2013

TA 7095-PRC

Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Jul 2008 29 Jul 2008 29 Jul 2008 31 Jul 2011 28 Feb 2013 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 300,000.00 0.00 0.00 0.00 1,300,000.00 10 Jul 2008 914,144.46
Title Document Type Document Date
Supporting Fiscal Reforms in High Priority Sectors TA Completion Reports Aug 2013
Supporting Fiscal Reforms in High Priority Sectors Technical Assistance Reports Jul 2008

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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