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
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 The outcome is that RCI opportunities in border areas in GZAR are tapped.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

The investment program will deliver five major outputs, namely:

(i) Sustainable SME development in border areas achieved. The investment program will (a) provide credit support to SMEs under the financial intermediation loan (FIL) modality; (b) strengthen business development services (BDS) for SMEs; and (c) support GZAR's pilot of cross-border labor cooperation with Viet Nam by improving training facilities and providing well-designed training programs for Vietnamese and local workers from SMEs.

(ii) Cost-competitive, safe, and expeditious cross-border financial transactions and investments realized. The investment program will support development of demonstration cross-border financial service centers, and explore measures to mitigate the non-commercial risks faced by cross-border investment.

(iii) E-commerce to facilitate access to markets adopted. The investment program will develop demonstration e-commerce incubation parks which will provide improved common infrastructure for e-commerce enterprises.

(iv) Key infrastructure and trade-related services in BEZs provided. The investment program will (a) improve infrastructure within BEZs (including roads, water supply and sewage treatment); (b) improve conditions at border trade centers to facilitate border trade and provide better services to the domestic and international tourists; and (c) improve logistics facilities and services to avoid delays and lower cost for shipment of goods.

(v) Cross-border connectivity improved. The investment program will improve border roads and upgrade infrastructure in the key border crossing points. The investment program will also promote cross-border policy and operational dialogues and coordination, including coordinating transport and logistics planning; finalizing joint master plan for BEZ development; and simplifying and harmonizing customs and sanitary and phytosanitary procedures.

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

Under the investment loan (L3501), two consulting services packages have been awarded to date. This includes procurement package GX-CS3, Project Management and Procurement Specialist, to support the Guangxi Project Management Office. Procurement package GX-CS1 for Project Management and Implementation Support to the Executing and Implementing Agencies, is planned for advertising in Q4 2018 and will further strengthen project management capacity and performance.

The bidding documents for implementation of two of the subprojects are in advanced stages of preparation and anticipated for advertising in Y18. These comprise of subproject 1: Fangchenggang Training Center for PRC and Vietnamese Workers and SMEs, and subproject 2: Development of Pingxiang Cross-Border Labor Cooperation Demonstration Park. Civil works for these two subprojects will begin in Y19. Other goods and consultancy services packages are in various stages of preparation and anticipated for award in Y19 and Y20.

Under the financial intermediation loan (L3508), a first disbursement of $25 million was made on 13 February 2018. 51 sub-loan applications have been received to date. Of these, 2 applications have been approved so far. The first sub-loan agreement was signed on 14 August 2018 for RMB 6 million. The disbursement of the second subloan was conducted in the last quarter of 2018 with total amount of RMB 26 million in 2018.

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 An, Bo
Responsible ADB Department East Asia Department
Responsible ADB Division Public Mgt, Financial Sector and Regional Coop Division, EARD
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
Concept Clearance -
Fact Finding -
MRM 29 Sep 2016
Approval 12 Dec 2016
Last Review Mission -
Last PDS Update 25 Mar 2019

Loan 3501-PRC

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 0.19 0.00 0%
Counterpart 150.00 Cumulative Disbursements
Cofinancing 0.00 12 Dec 2016 5.14 0.00 8%

Loan 3508-PRC

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 25.00 0.00 43%

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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

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Tender Title Type Status Posting Date Deadline
Project Management and Capacity Building: Institutional Support for EA, IAs and PIEs for Project Management and Implementation Firm - Consulting Active 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

No contracts awarded for this project were found