China, People's Republic of : Support for Deepening Policy Reform and Capacity Building

Project Name

Support for Deepening Policy Reform and Capacity Building

Project Number

48108-001

Country / Economy

• China, People's Republic of

Project Status

Closed

Project Type / Modality of Assistance

• Technical Assistance

Source of Funding / Amount

TA 8780-PRC: Support for Deepening Policy Reform and Capacity Building

Source	Amount
Technical Assistance Special Fund	US$ 800,000.00

Strategic Agendas

• Environmentally sustainable growth
• Inclusive economic growth

Drivers of Change

• Governance and capacity development
• Knowledge solutions
• Private sector development

Sector / Subsector

• Public sector management / Public administration

Gender

No gender elements

Description

The TA objective is to support the government to deepen policy reforms and accelerate capacity building in areas prioritized in the PRC''s reform agenda. The TA is consistent with the strategic pillar of inclusive and environmentally sustainable growth, highlighted in ADB''s PRC country partnership strategy, 2011-2015 and aligned with the Midterm Review of Strategy 2020. The TA will provide policy recommendations and knowledge services to promote the PRC''s inclusive development and environmentally sustainable growth, develop government capacities at central and local levels, and increase ADB''s policy impact and operational efficiency. The TA will support the implementation of the PRC''s 12th and 13th five-year plans and reinforce the PRC-ADB partnership.

The TA consists of two parts: component A for policy advice, and component B for capacity building. The outputs will include (i) policy synopses and 'just-in-time policy advice, and (ii) capacity-building activities.

Component A for policy advice. Under this component, central and local governments will be provided sound policy advice on priority development issues including in (i) economic restructuring (e.g., industrial upgrading, development modality changes, publicprivate partnership initiatives, and fiscal reforms); (ii) urban and rural integration (e.g., interregional cooperation, migration of workers and urbanization, inclusive social security system and public health services); (iii) energy conservation and environment protection to promote ecological civilization (e.g., low-carbon pilots, energy-saving, emissions reduction, ecosystem protection, and pollution treatment and control); and (iv) social sector and welfare development (e.g., social security reforms, elderly care services, food and drug safety, vocational education, employment, and governance). By 2015, a TA mobilization workshop will have been organized. During the TA, some bilingual synopses and 'just-in-time advice that provide the government with policy recommendations will be produced on selected studies relating to the above mentioned four areas. Workshops to disseminate the studies' main results will be conducted to enhance policy impact. By 2018, a TA wrap-up workshop will be held to create knowledge solutions for implementation of the 12th and 13th five-year plans.

Component B for capacity building. Under this component, the capacity of selected central and local government agencies will be created or strengthened for implementation of the 12th and 13th five-year plans through capacity assessments, training programs, workshops, conferences, and knowledge management interventions. By 2018, workshops and seminars with participation from government think tanks, decision makers, executing and implementing agency representatives, academia, and civil society on introducing best practice, knowledge sharing, enhancing PRC-ADB strategic TA programming partnership, and training for executing and implementing agencies will have been conducted. By TA completion, capacity-building activities will have helped increase the capacities of central and local governments and promote knowledge solutions in the PRC.

Project Rationale and Linkage to Country/Regional Strategy

After 30 years of rapid growth, the PRC is the world's second-largest economy. However, as reform continues, the country needs to find new engines for growth. The PRC faces challenges of deleveraging, maintaining growth momentum, especially in the face of unbalanced urban and rural development, and increasing environmental degradation. Problems include (i) barriers in driving and sustaining growth; (ii) potential risks in public finance and the banking sector; (iii) excess production capacity burdening some industries; (iv) unbalanced growth between urban and rural areas; (v) severe air, soil, and water pollution that hinders environment protection and ecosystem conservation; and (vi) social development problems, such as social security, elderly care services, food and drug safety, income distribution, housing, education, land acquisition, resettlement, and governance. These problems have been accompanied by incomplete reforms and limited capacity and institutional development.

To encourage sustainable development, the Third Plenum of the 18th National Congress of the PRC''s Communist Party announced its 'Decision on Major Issues Regarding Comprehensively Deepening Reform in November 2013. The decisions provide a blueprint for the PRC''s development in the next decade and beyond, encompassing the 12th and 13th five-year plans. By 2020, the government aims to have achieved reform results by (i) allowing the market to play a decisive role in resource allocation; (ii) enabling the government to function in a service-oriented and law-based manner; (iii) building a modern fiscal system that supports central and local governments' initiatives; (iv) accelerating reforms for social security, employment, income distribution, education, and public health; and (v) establishing a comprehensive system that protects the ecosystem and environment. The government recognizes the need to tackle structural problems that constrain balanced economic development, equality, resources conservation, and ecosystem protection, and has decided to address key development issues by deepening reforms and accelerating capacity building progress.

Since 2003, ADB has granted six 'facility-type TA projects to the PRC for the government to meet emerging policy advisory and capacity development requirements. The government highly appreciated the projects, as they helped advance PRC''s reforms and contributed significantly to the implementation of the government's five-year plans.

According to the evaluation report by the ADB Independent Evaluation Department, 'facility-type TA projects have had substantial impact on the development of the government's five-year plans. The TA for the Fund for Strategic Policy Conferences and Studies for Poverty Reduction contributed to the PRC''s poverty reduction discourse by widening the research's range into rural poverty reduction; improving understanding of industrialization and labor issues in rural areas; and increasing the participation of research organizations, educational institutes, and civil society organizations in the poverty reduction agenda. The TA for the Facility for Reform Support and Capacity Building contributed policy advice to the State Council directives for handling employment and entrepreneurship development issues during the 2008 global financial crisis and contributed to the establishment of the rural di-bao system nationwide. In some cases, 'facility-type TA subproject findings and recommendations have been incorporated into new regulations and law formulations in the PRC, such as the new internationally compatible internal audit standards and procedures produced by the Technical Assistance to the PRC for Facility for Policy Reform and Capacity Building III, as well as the revised Land Acquisition Regulation and Land Administration Law, the revised Budget Law (Article 28) and the new 'Law on Alternative Dispute Resolution supported by the TA for the Facility for Reform Support and Capacity Building. The Independent Evaluation Department confirmed that such 'facility-type TA projects were effective and recommended that ADB continue to work via this type of TA projects in the PRC.

Impact

Deepened reforms and enhanced government capacities for promoting sustainable development.

Project Outcome

Description of Outcome

Adoption by relevant government agencies of policy advice, regulations, new ideas, and best practices that are introduced or recommended by the TA to deepen reforms and increase government capacity at central and local levels.

Progress Toward Outcome

It was evaluated after the project completion.

Implementation Progress

Description of Project Outputs

Component A: Policy Advice

Central and local governments are provided with sound policy advice on priority development issues in (i) economic restructuring; (ii) urban and rural integration; (iii) energy conservation and environment protection to promote ecological civilization; and (iv) social sector and welfare development.

Component B: Capacity Building

Capacity assessments, training programs, workshops, conferences, and knowledge management interventions are provided to further develop the government's capacity in implementing the 12th and 13th five-year plans.

Status of Implementation Progress (Outputs, Activities, and Issues)

The TA was effective on 20 January 2015. A Joint Review MOU was co-signed with the EA on 16 June 2015. The TA has two TA components consisting of 18 subprojects, among which 4 are policy research under Component A, and 14 for capacity building under Component B. The TA completion date was extended to 30 November 2019 to meet the emerging TA needs. It was completed physically on 30 Nov 2019 and financially closed on 17 Feb. 2020. Component A: Policy Research SP1.1: Qinghai Low Carbon Development to Address Climate Change Challenges was approved on 24 Dec. 2015. On 8 February 2018, a memo was approved by ADB/MOF to reduce SP1.1 amount from $100,000 to $50,000 due to institutional reform. SP1.2: Demonstration of Integrated Management of Forest and Water Resources in Guanting Reservoir Watershed was approved on 28 April 2016. TA inception workshop was held in Dec. 2016. A training workshop was conducted on 26-27 April 2017. Key outputs was published in a book. SP1.3: Practice and Thoughts of Domestic and Overseas Internet Finance was approved on 3 March 2016. TA Inception Workshop and Mid-term review workshop were held in Aug. 2016 and Feb. 2017 respectively. The TA was closed with a Final Review Workshop. SP1.4: Gansu Internet Based Agricultural Service System was approved on 16 May 2016. Final TA workshop was held on 3 Feb. 2018. Component B: Capacity Building SP2.1: The 3rd PRC-ADB Strategic TA Programming Workshop was conducted on 28-29 April 2015. SP2.2: Support for TA Operations: The recruited consultant was fielded on 31 Jul. 2015 and accomplished all assigned tasks. SP2.3: Orientation Workshop on ADB Lending Program was organized on 29-30 March 2016. SP2.4: The 4th PRC-ADB Strategic TA Programming Workshop was conducted on 12-13 May 2016. SP2.5: Introducing Third-party Review Mechanism in ADB TA Management: Consultants fielded on 20 July 2016. All activities were completed in Sept. 2016. SP2.6: Promotion and Application of Public-Private-Partnership (PPP) Demonstration Projects in Social Sector. A PPP training workshop was held in Xi'an on 22-23 November 2016. SP2.7: The 2016 CPRM was conducted on 15-16 Dec. 2016. SP2.8: Workshop on Actuarial Accounting and Unfunded Liabilities of Insurance Fund. The workshop was conducted on 28-29 Mar. 2017. SP2.9: The 2017 PRC-ADB Strategic TA Programming Workshop was conducted on 23-24 May 2017. SP2.10: 2018 CPM-TA Traning Workshop was conducted in Xi'an on 20-21 June 2018. SP2.11: 2018 CPCM was held in Manila on 27-29 November 2018. SP2.12: A consultant was recruited during June-August 2019 to support project programming/management/dissemination and the Board visit to the PRC. SP2.13: ADB-PRC KSTA training workshop was held on 20 September 2019 in Beijing to provide guidance on EAs for preparing new KSTA proposals in support for CPM and strengthen knowledge-sharing activities in the PRC nationwide. Sp2.14: Innovative Lending Modality Workshop was held on 15 Nov. 2019 in Beijing to provide guidance on quality production of loan proposals for CPM. The approved TCR was circulated to the Board on 15 Dec. 2020.

Geographical Location

Summary of Environmental and Social Aspects

Environmental Aspects

Involuntary Resettlement

Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design

Consultations were conducted with the EA (Ministry of Finance) and relevant government agencies, research institutes and stakeholders during project design period.

During Project Implementation

Stakeholder communication, participation and consultation were conducted along with the TA implementation.

Business Opportunities

Consulting Services

ADB will recruit individual consultants in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). A total of 40 person-months of individual consulting services (10 person-months of international consultants, and 30 person-months of national consultants) will be provided, including resource persons and task-specific experts. TORs for individual subprojects will be developed in consultation with relevant implementing agencies and ADB's Operations Services and Financial Management Department and approved by the PRC Resident Mission country director, as appropriate.

Procurement

All procurement under the TA will be carried out in accordance with ADB's Procurement Guidelines (2013, as amended from time to time).

Contact

Responsible ADB Officer

Yang, Junmei

Responsible ADB Department

East Asia Department

Responsible ADB Division

PRC Resident Mission (PRCM)

Executing Agencies

Ministry of Finance

Timetable

Concept Clearance

26 Aug 2014

Fact Finding

20 Aug 2014 to 22 Aug 2014

MRM

-

Approval

03 Dec 2014

Last Review Mission

-

Last PDS Update

22 Jan 2021

Funding

TA 8780-PRC