fbpx 49432-001: Microfinance in Poverty-Stricken Counties | Asian Development Bank

China, People's Republic of: Microfinance in Poverty-Stricken Counties

Nonsovereign (Private) Project | 49432-001 Status: Active

ADB will provide a senior secured loan of up to $50 million (or CNY equivalent) with a 3-year tenor to CFPA Microfinance Management (CFPAMM) in the PRC. The proposed loan will fund CFPAMM's microfinance operations in counties designated by central and local government as poverty stricken areas.

Project Details

Project Officer
Doukidis, Doukas Private Sector Operations Department Request for information
Country
  • China, People's Republic of
Sector
  • Finance
 
Project Name Microfinance in Poverty-Stricken Counties
Project Number 49432-001
Borrower/Company CFPA Microfinance Management
Country China, People's Republic of
Location Nation-wide
Type or Modality of Assistance
3390 Loan Ordinary capital resources USD 50.00 million Committed
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Finance / Finance sector development

Gender Equity and Mainstreaming Gender equity
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Doukidis, Doukas
Project Sponsor(s)
Description ADB will provide a senior secured loan of up to $50 million (or CNY equivalent) with a 3-year tenor to CFPA Microfinance Management (CFPAMM) in the PRC. The proposed loan will fund CFPAMM's microfinance operations in counties designated by central and local government as poverty stricken areas.
Objectives and Scope The sub-loans will be primarily used for agricultural and farming purposes, and may also be used to support individual microbusinesses in trade, manufacturing, and services as well as other rural economic activities. The proposed loan will benefit women, as CFPAMM specifically targets women in rural areas as its core customers and currently women represent 94% of CFPAMM's borrowers. It will promote gender equity by improving rural women's access to finance through 121,000 collateral free microloans to women borrowers.
Status of Development Objectives To date, most of the objectives had already been achieved, with actual figures exceeding the baseline.
Status of Operation/Construction On-going.
Linkage to Country/Regional Strategy

The project supports two priorities identified by the Mid-term Review of Strategy 2020: (i) poverty reduction and inclusive economic growth; and (ii) private sector development and operations. The Midterm Review of Strategy 2020 highlights ADB's focus on reducing vulnerability and inequality and promoting inclusive growth in middle income countries. It is consistent with the PRC Country Partnership Strategy, and the current PRC country operations business plan, 2015 2017, which prioritizes promoting balanced development of rural and urban areas, supporting catalytic nonsovereign projects, and private sector development. The project is also aligned with ADB's Gender Equality and Women's Empowerment and Operational Plan, 2013-2020.

The proposed project is aligned with ADB's Financial Sector Operational Plan, which notes that ADB will support broad-based household access to microfinance. ADB's Microfinance Development Strategy calls for tapping the increasing potential of the poor by expanding access to microfinance. ADB's enhanced poverty reduction strategy also states that ADB seeks to promote sound and efficient financial markets to improve access to finance and achieve pro-poor growth. The proposed project is also consistent with ADB's earlier support in the microfinance sector.

Safeguard Categories
Environment FI-C
Involuntary Resettlement FI-C
Indigenous Peoples FI-C
Summary of Environmental and Social Aspects
Environmental Aspects The sub-loans under the proposed ADB loan are expected to have minimal environmental and social impacts.
Involuntary Resettlement No land acquisition, physical or economic displacements.
Indigenous Peoples No impact on Indigenous Peoples communities is foreseen in relation to any activities of the sub-borrowers.
Stakeholder Communication, Participation, and Consultation Aligned with CFPAMM's social mission to enable micro-entrepreneurs to realize their dreams through provision of financial access to women in the rural regions, measures to further benefit and empower women borrowers and staff have been identified and will be incorporated in the project design. Some of the measures include: (i) conducting induction training for all women borrowers, (ii) holding relevant formal and informal trainings (e.g. financial literacy, farming techniques, pesticides handling, storage and disposal, and handicrafts) to enhance skills and capacity of women borrowers, (iii) establishing a network of women entrepreneurs to facilitate knowledge exchange, and (iv) conducting annual training for CFPAMM loan officers and other staff to better understand women borrowers' special needs. CFPAMM will also enhance its data collection to track and monitor information on women borrowers, as well as refine its client satisfaction survey to increase focus on women borrowers' experience. CFPAMM's annual report will also include implementation of the gender action plan.
Timetable for assistance design, processing and implementation
Concept Clearance -
Credit Committee Meeting 09 Mar 2016
Approval 17 May 2016
Last PDS Update 22 Mar 2019

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.