China, People's Republic of: Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 3
The Asian Development Bank (ADB) and the People's Republic of China (PRC) signed a framework financing agreement for the Guangxi Regional Cooperation and Integration Promotion Investment Program (GRIP) on 15 October 2016. Under the program, a roadmap was developed to help the Guangxi Zhuang Autonomous Region (GZAR) and Viet Nam capture regional cooperation and integration benefits in their border areas through small and medium-sized enterprise (SME) support enhancement, cross-border financial transaction and investment promotion, cross-border e-commerce platforms development, border economic zone (BEZ) infrastructure construction, and policy coordination improvement. On 1 December 2016, ADB approved the provision of a $450 million multitranche financing facility (MFF) to the PRC for the GRIP to be implemented through three tranches from 2017-2024. Tranche 1 amounting to $130 million of ADB financing was approved on 12 December 2016 with the current loan closing date of 30 June 2022.
Project Details
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Project Officer
Xia, Heng
East Asia Department
Request for information -
Approval Date
1 October 2021 -
Country/Economy
China, People's Republic of -
Sector
- Industry and trade
Related Projects
Project Name | Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 3 | ||||
Project Number | 50050-005 | ||||
Country / Economy | China, People's Republic of |
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Project Status | Approved | ||||
Project Type / Modality of Assistance | Loan |
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Source of Funding / Amount |
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Strategic Agendas | Environmentally sustainable growth Inclusive economic growth Regional integration |
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Drivers of Change | Gender Equity and Mainstreaming Knowledge solutions Partnerships Private sector development |
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Sector / Subsector |
Agriculture, natural resources and rural development / Agro-industry, marketing, and trade Industry and trade / Industry and trade sector development - Small and medium enterprise development - Trade and services |
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Gender Equity and Mainstreaming | Effective gender mainstreaming | ||||
Description | The Asian Development Bank (ADB) and the People's Republic of China (PRC) signed a framework financing agreement for the Guangxi Regional Cooperation and Integration Promotion Investment Program (GRIP) on 15 October 2016. Under the program, a roadmap was developed to help the Guangxi Zhuang Autonomous Region (GZAR) and Viet Nam capture regional cooperation and integration benefits in their border areas through small and medium-sized enterprise (SME) support enhancement, cross-border financial transaction and investment promotion, cross-border e-commerce platforms development, border economic zone (BEZ) infrastructure construction, and policy coordination improvement. On 1 December 2016, ADB approved the provision of a $450 million multitranche financing facility (MFF) to the PRC for the GRIP to be implemented through three tranches from 2017-2024. Tranche 1 amounting to $130 million of ADB financing was approved on 12 December 2016 with the current loan closing date of 30 June 2022. Tranche 2 of $180 million was approved on 4 April 2018 with the current loan closing date of 30 November 2023. The Government of the PRC submitted a request for a loan up to $140 million from ADB's ordinary capital resources for tranche 3 on 6 August 2021. Tranche 3 of the MFF will align with the program strategic roadmap to support (i) SME development in the border areas through vocational training capacity enhancement and expansion of the Sino-ASEAN Agricultural Products Trade Center in Baise City, (ii) integrated cross-border e-commerce platforms development for the PRC and Viet Nam, (iii) provision of key infrastructure and trade-related services in BEZs, and (iv) physical and informational connectivity and policy coordination through development of the Sino-Viet Nam Cross-Border Tourism Cooperation Zone in Chongzuo City. |
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Project Rationale and Linkage to Country/Regional Strategy | The border areas of the Guangxi Zhuang Autonomous Region (GZAR) in the People's Republic of China (PRC) and Viet Nam are key areas for regional cooperation and integration (RCI) along the North-South Economic Corridor (NSEC) under the Greater Mekong Subregion Economic Cooperation Program (GMS). However, transport and trade along NSEC are inefficient, and the presence of various critical bottlenecks hinders the border areas from realizing their economic growth potential. Major challenges include (i) the low level of development of small and medium-sized enterprises (SMEs) due to limited access to bank credit, lack of reliable market information, challenges in hiring and retaining skilled staff and labor; (ii) costly, risky, and time-consuming cross-border financial transactions; (iii) difficulties faced by local traders in adopting e-commerce to access to markets due to a lack of common platforms and inadequate trade facilitation measures for cross-border e-commerce; (iv) inadequate infrastructure and services in border economic zones (BEZs); and (v) poor infrastructure for connectivity, especially at key border crossing points. Addressing these constraints will require a strategic, holistic, multisector approach to promote cross-border economic activities. The multitranche financing facility (MFF) is a suitable modality to help GZAR address aforementioned constraints as well as creating spill over benefits to Viet Nam. With the outbreak of the coronavirus disease (COVID-19), regional economic cooperation between Guangxi and Viet Nam is impacted. The pandemic is largely contained in the PRC but remains a risk, particularly to border trade and regional cooperation on tourism. With the growing recognition of the need for measures to prevent cross-border spread of the pandemic, other public health threats, and the broad cross border risks, regional cooperation is a key part of the recovery of the GZAR and neighboring areas of Viet Nam from COVID-19. Providing and expanding regional public goods in areas such as supporting climate change mitigation and adaption, protecting the environment, and mitigating cross border public health and other risks are also called for in ADB's new country partnership strategy for the PRC (2021-2025). |
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Impact | Economic growth potential for border areas in the PRC and Viet Nam realized Efficient transport and trade operations along GMS North-South Economic Corridor achieved Economic integration between GZAR and the rest of GMS further strengthened |
Project Outcome | |
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Description of Outcome | Benefits of regional cooperation and integration in border areas of Guangxi and northern Viet Nam captured |
Progress Toward Outcome | |
Implementation Progress | |
Description of Project Outputs | Support for SME in border areas expanded Integrated cross-border e-commerce platforms for the PRC and Viet Nam developed Key infrastructure and trade-related services for BEZs improved Physical and informational connectivity and policy coordination improved |
Status of Implementation Progress (Outputs, Activities, and Issues) | |
Geographical Location | Nation-wide |
Safeguard Categories | |
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Environment | B |
Involuntary Resettlement | B |
Indigenous Peoples | B |
Summary of Environmental and Social Aspects | |
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Environmental Aspects | |
Involuntary Resettlement | |
Indigenous Peoples | |
Stakeholder Communication, Participation, and Consultation | |
During Project Design | |
During Project Implementation |
Business Opportunities | |
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Consulting Services | ADB will engage international and national consultants following the ADB Procurement Policy and its associated project administration instructions and/or staff instructions. |
Procurement | All procurement of goods and works will be undertaken in accordance to ADB's Procurement Guidelines (2015, as amended from time to time). Open competitive bidding with national advertising will be used for procurement of ADB-financed works and contracts. |
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 | |
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Concept Clearance | - |
Fact Finding | - |
MRM | 20 Jul 2021 |
Approval | 01 Oct 2021 |
Last Review Mission | - |
Last PDS Update | 04 Oct 2021 |
Loan 4122-PRC
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
01 Oct 2021 | 02 Dec 2021 | 25 Mar 2022 | 31 Dec 2024 | - | - |
Financing Plan | Loan Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 326.70 | Cumulative Contract Awards | |||
ADB | 140.00 | 01 Apr 2022 | 0.00 | 0.00 | 0% |
Counterpart | 186.70 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 01 Apr 2022 | 0.00 | 0.00 | 0% |
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.
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Title | Document Type | Document Date |
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Program Agreement for Loan 4122-PRC: Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 3 | Project/Program Agreements | Dec 2021 |
Loan Agreement (Ordinary Operations) for Loan 4122-PRC: Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 3 | Loan Agreement (Ordinary Resources) | Dec 2021 |
Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 3: Periodic Financing Request Report | Periodic Financing Request Reports | Sep 2021 |
Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 3: Project Administration Manual | Project/Program Administration Manual | Sep 2021 |
Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 3: Social Development and Gender Action Plan | Gender Action Plans | Sep 2021 |
Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 3: Procurement Plan | Procurement Plans | Apr 2021 |
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.
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Tenders
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Contracts Awarded
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Procurement Plan
Title | Document Type | Document Date |
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Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 3: Procurement Plan | Procurement Plans | Apr 2021 |