China, People's Republic of: Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 3

Sovereign Project | 50050-005

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 Name Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 3
Project Number 50050-005
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4122-PRC: Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 3
Ordinary capital resources US$ 140.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Knowledge solutions
Partnerships
Private sector development
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

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.

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).

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
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
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
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 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
18th Floor, Guangxi Development Plaza
East Building, No. 111-1 Minzu_Avenue
Nanning, Guangxi
Timetable
Concept Clearance -
Fact Finding -
MRM 20 Jul 2021
Approval 01 Oct 2021
Last Review Mission -
Last PDS Update 04 Oct 2021

Loan 4122-PRC

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 326.70 Cumulative Contract Awards
ADB 140.00 - 0.00 0.00 %
Counterpart 186.70 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

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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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.

Title Document Type Document Date
Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 3: Environmental Management Plan Environmental Management Plans May 2021
Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 3: Initial Environmental Examination Initial Environmental Examination Mar 2021
Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 3: Chongzuo (Daxin County) China-Viet Nam Cross-Border Tourism Comprehensive Improvement Subproject Resettlement Plan Resettlement Plans Mar 2021
Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 3: Fangchenggang Sino-ASEAN Trade and Cultural Exchange Center Subproject Resettlement Plan Resettlement Plans Mar 2021
Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 3: Chongzuo Cold Chain Logistics Demonstration Subproject Resettlement Plan Resettlement Plans Mar 2021
Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 3: Chongzuo China-Viet Nam Border Economic Cooperation Zone Demonstration (Phase II) Subproject Resettlement Plan Resettlement Plans Feb 2021
Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 3: Updated Environmental Assessment and Review Framework Environmental Assessment and Review Framework Jan 2021
Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 3: Baise Sino-Vietnam Cross-Border Training Center Subproject Resettlement Due Diligence Report Safeguards Due Diligence Reports Nov 2020
Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 3: Baise Cross-Border Agricultural Products Industry Chain Upgrade Subproject Resettlement Due Diligence Report Safeguards Due Diligence Reports Nov 2020

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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