fbpx 50050-003: Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 1 | Asian Development Bank

China, People's Republic of: Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 1

Sovereign (Public) Project | 50050-003 Status: Active

The Asian Development Bank is working with the People's Republic of China to help the Guangxi Zhuang Autonomous increase regional cooperation and integration with countries of the Association of the Southeast Asian Nations (ASEAN), particularly the Greater Mekong Subregion (GMS).

 
Project Name Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 1
Project Number 50050-003
Country China, People's Republic of
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3501-PRC: Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 1
Ordinary capital resources US$ 66.42 million
Loan 3508-PRC: Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 1
Ordinary capital resources US$ 63.58 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
Sector / Subsector

Industry and trade / Industry and trade sector development - Small and medium enterprise development - Trade and services

Information and communication technology / ICT industries and ICT-enabled services

Gender Equity and Mainstreaming Some gender elements
Description The Guangxi Regional Cooperation and Integration Promotion Investment Program will help the Guangxi Zhuang Autonomous Region (GZAR) of the People's Republic of China (PRC) implement its strategies and action plans for regional cooperation and integration (RCI) with countries of the Association of the Southeast Asian Nations (ASEAN), particularly the Greater Mekong Subregion (GMS).
Project Rationale and Linkage to Country/Regional Strategy

RCI is an integral part of Asian Development Bank's (ADB) operations in the PRC, as one of five strategic priorities of the Country Partnership Strategy 2016 2020. RCI is highlighted as a priority in the PRC's 13th Five Year Plan for 2016 2020. In 2015, PRC announced the Silk Road Economic Belt and 21st Century Maritime Silk Road Initiative (_Belt and Road Initiative_), which aims to promote connectivity and strengthen economic partnerships between and among Asian, European and African continents in a spirit of open regionalism. GZAR has also mainstreamed RCI into its own development strategies, especially its 13th Five Year Plan (2016 2020). GZAR has issued guidelines and recommendations, with emphasis on strengthening cooperation with the ASEAN, particularly the GMS countries. The _Recommendations_ outlines the strategic vision for GZAR's participation in RCI the major international transport and economic corridors linking GZAR and the ASEAN will be established; and GZAR will serve as the gateway for the further opening up of the PRC's Southwest region.

GZAR has also formulated a Strategy and Action Plan for Participation in the GMS Program. The Plan defines six priority actions: (i) enhancing connectivity with a focus on transport in border areas, border crossing points, and information connectivity by developing China ASEAN Information Harbor and cross-border e-commerce; (ii) accelerating development of economic corridors with a focus on special economic zones and industrial parks, including the joint development of BEZs with Viet Nam; (iii) deepening industrial cooperation with other GMS countries in energy, agriculture, manufacturing, and tourism; (iv) improving infrastructure and services in the key nodal cities along the economic corridors; (v) strengthening cooperation in human resource development, including cross-border technical and vocational training, health, and joint control of transboundary diseases; and (vi) strengthening environment cooperation with the GMS countries, particularly Viet Nam.

GZAR's GMS Strategy and Action Plan include a Priority Investment Program for 2015 2020, covering six priority areas with a total investment of $45 billion. Special attention is given to investment in the border areas including Fangchenggang, Chongzuo, Baise, and Qinzhou municipalities. The Investment Program is intended for financing by various sources including the PRC central and GZAR governments, multilateral development banks and the private sector. The PRC government has requested ADB to provide a $450 million MFF to fund a group of priority projects in the four border municipalities.

Impact The impacts of the investment program are that economic growth potential is realized for border areas in the PRC and Viet Nam; efficient transport and trade operations along NSEC achieved; and economic integration between GZAR and rest of the GMS further strengthened.
Project Outcome
Description of Outcome Benefits of regional cooperation and integration in border areas of Guangxi and northern Viet Nam are captured
Progress Toward Outcome The Subproject 5: Development of Smart Port for Longbang Border Economic Zone is expected to be completed by Q4 2020 due to the procurement delays.
Implementation Progress
Description of Project Outputs

Support for SMEs in border areas expanded

Integrated and interoperable crossborder e-commerce platforms for the PRC and Viet Nam developed

Key infrastructure and trade-related services in BEZs provided

Technical and institutional capacity in project management and preparation strengthened

Status of Implementation Progress (Outputs, Activities, and Issues) The Guangxi Foreign Loans Project Management Office (GPMO) has been established at the Government of Guangxi Zhuang Autonomous Region through Guangxi Foreign Loans Project Management Office. Project Implementing Entities (PIEs) have been established at the following implementing agencies: Baise Municipal Government Foreign Loans Project Management OfficeChongzuo Municipal Government Foreign Loans Project Management Office; Fangchenggang Municipal Government Foreign Loans Project Management Office; Qinzhou Municipal Government Foreign Loans Project Management Office; and Guangxi Branch of Bank of Communications. The GPMO is currently management by an executive deputy director, 1 project managers for Tranche 1, and two fully staffed municipal GPMOs to assist. The inception mission for Tranche 1 was fielded on 20-27 August 2018, followed by a review mission on 22-25 January 2019, review mission on 24-31 May, and a midterm review mission on 14 17 October 2019. A minor change in implementation arrangements to replace Baise Baidong Investment Co., Ltd. by Baise Investment Co., Ltd. in 2017 subsequent to loan effectiveness as the new PIE has been proposed for Subproject 5. Development of Smart Port for Longbang Border Economic Zone, which requires approval by the Ministry of Finance. By end of March 2020, 6 out of 13 consulting services contracts have awarded and fielded (i) ICT and e-commerce (contract has ended), (ii) financial management (replacement candidate); (iii) project management and procurement, (iv) external monitoring (environment), (v) external monitoring (resettlement); (vi) project management and capacity development. As of 15 October 2019 (midterm), the total contract awards for Tranche 1 (Loan 3051) was only $13.59 million or 20.46%, and disbursement at $5.28 million or 7.94% of the net loan amount.
Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects Tranche 1 (other than the SME financing component) has been classified category B for environment. A consolidated initial environmental examination and environmental management plan has been prepared for the three subprojects involving infrastructure. The environmental management plan identifies appropriate design, construction, and operational mitigation and monitoring measures to reduce the potential impacts to acceptable levels. An environmental assessment and review framework was prepared for screening, categorization, assessment, preparation and implementation of safeguard plans, if required, for components, projects, and subprojects to be prepared after MFF approval. These documents comply with the PRC's regulatory requirements and ADB's Safeguard Policy Statement (2009), and have been disclosed on the ADB website. Public consultation and information disclosure were carried out during the project design and will continue during project implementation. Environmental training will be provided to build capacity. Environmental complaints will be handled through a grievance redress mechanism. A wildlife trafficking study has been carried out to assess the risks, and mitigation measures will be implemented in tranche 1 and subsequent tranches.The SME financing subcomponent is categorized as financial intermediary. An environmental and social management system (ESMS) has been developed by the financial intermediary, covering environmental and social policies; the safeguards screening, categorization, and review process; institutional arrangements; and monitoring and reporting procedures for subprojects under the Financial Intermediation Loan. The ESMS will exclude subprojects that will trigger category A for environment and category A and B for social safeguards, and that are in the prohibited investment list according to ADB's Safeguard Policy Statement. Subprojects classified as category B or C for environment will be subject to requirements set out in the ESMS. The ESMS will ensure that SME subborrowers are not engaged in commercial development of the cultural resources of indigenous peoples without their consent. Each subproject will undergo due diligence based on the criteria in the ESMS.
Involuntary Resettlement Tranche 1 of the investment program is classified as category C for involuntary resettlement. Due diligence reports for the three subprojects involving infrastructure have been prepared, confirming that all land acquisition is in compliance with ADB's Safeguard Policy Statement, the PRC's Land Law (1999), and other related regulations without any pending land acquisition and resettlement issues. No additional land acquisition or house demolition will be required for Tranche 1. A resettlement framework was prepared to guide the preparation of resettlement plans for the subsequent tranches, if required.
Indigenous Peoples Tranche 1 is classified as category B for indigenous peoples. The Zhuang people constitute the dominant population in the project areas and there is no concentrated settlement of any other ethnic group. Based on due diligence in accordance with ADB's Safeguard Policy Statement, tranche 1 will not incur any adverse impacts on ethnic minorities. Indigenous peoples plan elements were included in the project design following ADB's Safeguard Policy Statement. An indigenous peoples planning framework was prepared to guide the preparation of any indigenous peoples plan for future tranches. Each subsequent tranche of the MFF will be screened, classified, and assessed in accordance with the indigenous peoples planning framework.
Stakeholder Communication, Participation, and Consultation
During Project Design The project was designed in close consultation with various stakeholders, including (i) government agencies at the provincial, prefectural and county levels; (ii) intended beneficiaries such as small and medium sized enterprises in the border areas, local traders and representatives of border area residents, local technical and vocational training institutions and representatives of migrant workers; and (iii) representatives of potentially affected persons (including those to be resettled).
During Project Implementation
Responsible ADB Officer Xia, Heng
Responsible ADB Department East Asia Department
Responsible ADB Division PRC Resident Mission
Executing Agencies
Government of Guangxi Zhuang Autonomous Region, through Guangxi Foreign Loans Project Management Office
[email protected]
18th Floor, Guangxi Development Plaza
East Building, No. 111-1 Minzu_Avenue
Nanning, Guangxi
Timetable
Concept Clearance -
Fact Finding -
MRM 29 Sep 2016
Approval 12 Dec 2016
Last Review Mission -
Last PDS Update 31 Mar 2020

Loan 3501-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Dec 2016 18 May 2017 21 Aug 2017 30 Jun 2022 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 216.42 Cumulative Contract Awards
ADB 66.42 12 Dec 2016 17.93 0.00 27%
Counterpart 150.00 Cumulative Disbursements
Cofinancing 0.00 12 Dec 2016 7.55 0.00 11%

Loan 3508-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Dec 2016 18 May 2017 28 Jul 2017 30 Jun 2022 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 63.58 Cumulative Contract Awards
ADB 63.58 12 Dec 2016 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 12 Dec 2016 1.90 0.00 37%

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.

Title Document Type Document Date
Guangxi Regional Cooperation and Integration Promotion Investment Program – Tranche 1: Loan 3508 Audited Project Financial Statements (January-December 2019) Audited Project Financial Statements Jun 2020
Guangxi Regional Cooperation and Integration Promotion Investment Program – Tranche 1: Loan 3501 Audited Project Financial Statements (January-December 2019) Audited Project Financial Statements Jun 2020
Loan Agreement (Ordinary Operations) for Loan 3508-PRC: Guangxi Regional Cooperation and Integration Promotion Investment Program - Project 1 (Financial Intermediary Loan Component) Loan Agreement (Ordinary Resources) May 2017
Project Agreement for Loan 3508-PRC: Guangxi Regional Cooperation and Integration Promotion Investment Program - Project 1 (Financial Intermediary Loan Component) Project/Program Agreements May 2017
Loan Agreement (Ordinary Operations) for Loan 3501-PRC: Guangxi Regional Cooperation and Integration Promotion Investment Program - Project 1 (Investment Loan Component) Loan Agreement (Ordinary Resources) May 2017
Project Agreement for Loan 3501-PRC: Guangxi Regional Cooperation and Integration Promotion Investment Program - Project 1 (Investment Loan Component) Project/Program Agreements May 2017
广西区域合作与一体化投资项目——第一批次 : 项目数据表 Translated PDS Dec 2016
Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 1: Periodic Financing Request Report Periodic Financing Request Reports Oct 2016
Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 1: Procurement Plan Procurement Plans Oct 2016

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.

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.

Tenders

Tender Title Type Status Posting Date Deadline
Project Advisory Support on Improving Cross-Border Guarantees for Noncommercial Risks Firm - Consulting Closed 08 Feb 2020 14 Apr 2020
Improvement of Training for PRC and Vietnamese Workers and Local SMEs Firm - Consulting Closed 14 Dec 2019 17 Feb 2020
Financial Management Specialist Individual - Consulting Closed 11 Jul 2019 30 Jul 2019
3501-PRC: Guangxi Regional Cooperation and Integration Promotion Project Tranche 1 [BS-E1] Invitation for Bids Closed 14 May 2019 20 Jun 2019
Project Management and Capacity Building: Institutional Support for EA, IAs and PIEs for Project Management and Implementation Firm - Consulting Closed 15 Mar 2019 25 Apr 2019
Financial Management Specialist Individual - Consulting Closed 27 Feb 2019 18 Mar 2019
External Resettlement and Social Monitor Individual - Consulting Closed 19 Dec 2018 14 Jan 2019
External Environmental Monitor Individual - Consulting Closed 18 Dec 2018 14 Jan 2019
Project Management and Procurement Specialist Individual - Consulting Closed 09 Mar 2018 15 Mar 2018
Project Management and Procurement Specialist Individual - Consulting Closed 08 Oct 2017 14 Oct 2017
ICT and E-Commerce Specialist (National) Individual - Consulting Closed 30 Aug 2017 14 Sep 2017

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
GX-CS1: PROJECT MANAGEMENT AND IMPLEMENTATION SUPPORT FOR EXECUTING AND IMPLEMENTING AGENCIES Loan 3501 22 Jan 2020 ENERGY AND ENVIRONMENTAL DEV. RESEARCH CENTER ROOM 2504, BLDG. T2 HAN'S PLAZA, ETOWN ECONOMIC & TECH. DEV. ZONE, BEIJING CHINA,PEOPLE'SREP.OF Govt of GZAR, thru Guangxi Foreign Lns_Prj Mgt Off CONSULTANCY 1,324,536.98 1,324,536.98
LONGBANG SMART PORT: SECURITY AND VEHICLE MANAGE- MENT SYSTEMS Loan 3501 08 Nov 2019 BEIMING SOFTWARE CO., LTD CHINA 7TH & 8TH FLOOR, BEIJING SOFTWARE BLDG.1 SICHENG ROAD, TIANHE DISTRICT, GUANGZHOU CHINA,PEOPLE'SREP. Govt of GZAR, thru Guangxi Foreign Lns_Prj Mgt Off SUPPLY OF GOODS 3,820,641.24 3,792,775.86
CONSTRUCTION OF FANGCHENGGANG TRAINING CENTER FOR PRC AND VIETNAMESE WORKERS OF FANGCHENGGANG CITY POLYTECH VOCATIONAL SCHOOL - PACKAGE FGS-C1 Loan 3501 05 Sep 2019 CHENGXIN GROUP CO.,LTD. MINZU AVENUE, FANGCHENG TOWN, FNAGCHENG DISTRICT,FANGCHENGGANG CITY CHINA,PEOPLE'SREP.OF Govt of GZAR, thru Guangxi Foreign Lns_Prj Mgt Off CONSTRUCTION 10,324,527.09 7,150,550.47
PX-C2: PINBXIANG CROSS-BORDER LABOR COOPERATION PARK Loan 3501 29 Apr 2019 GUANGXI CONSTRUCTION ENG'G.GRP NO.2 CONST.ENG GUANGXI P.R.C. CHINA,PEOPLE'SREP.OF Govt of GZAR, thru Guangxi Foreign Lns_Prj Mgt Off CONSTRUCTION 6,482,037.83 6,429,430.88