China, People's Republic of: Reform and Diversification of the Local Government Bond Market

Sovereign Project | 51025-001

The Government of the People's Republic of China (PRC) requested technical assistance (TA) from the Asian Development Bank (ADB) for the Reform and Diversification of the Local Government Bond Market.

Project Details

  • Project Officer
    Van Rijn, Johannes Jacobus Frederik
    East Asia Department
    Request for information
  • Country/Economy
    China, People's Republic of
  • Sector
    • Finance
Project Name Reform and Diversification of the Local Government Bond Market
Project Number 51025-001
Country / Economy China, People's Republic of
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9563-PRC: Reform and Diversification of the Local Government Bond Market
Technical Assistance Special Fund US$ 400,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

Finance / Banking systems and nonbank financial institutions

Gender Equity and Mainstreaming Some gender elements
Description The Government of the People's Republic of China (PRC) requested technical assistance (TA) from the Asian Development Bank (ADB) for the Reform and Diversification of the Local Government Bond Market.
Project Rationale and Linkage to Country/Regional Strategy The TA is included in ADB's country operations business plan, 2016-2018 for the PRC.
Impact Quality of the environment for local government bond market issuance improved
Project Outcome
Description of Outcome Investor confidence in the local government bond market increased
Progress Toward Outcome The international consultant and the national firm have been recruited and contracted. The project inception occurred at the end of March 2019. A plan of work was drafted and agreed to with the Ministry of Finance. Work has begun successfully.
Implementation Progress
Description of Project Outputs

Local government bond issuance framework improved

Local governments' capability to structure and issue bonds expanded

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

Consultants have been fielded and the TA inception has occurred the week of 25 March 2019. Missions were held by the team in May to Shanghai and Beijing and again in August to Shenzhen and Beijing. These missions met with financial sector stakeholders and counterparts in local government to begin compilation of the status of local government bond markets and identify early recommendations. Initial observations and very preliminary recommendations were identified and presented to the MOF. Plans to hold a mission to another province in late Fall of 2019 were initially deferred to 2020 due to other commitments by MOF. Restrictions due to the CoronaVirus outbreack then halted further work and mission plans for the first half of 2020.

TA activities are expected to gradually resume in the fourth quarter of 2020, including the recruitment of the national expert in sub-sovereign credit ratings and bond market. The TA is anticipated to be completed in the third quarter of 2021.

ADB project officer was changed in February 2021. Meeting with project team held on 10 March 2021 internal agreement reached on proposed work plan for the remainder of the project. Meeting with MoF scheduled for week 5 April 2021. The TA completion date is extended until 30 June 2022.

Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Ministry of Finance was actively consulted during the project design to formulate the tasks and project outputs.
During Project Implementation The Ministry of Finance is the implementing agency of the TA and cooperation is effective.
Business Opportunities
Consulting Services ADB will engage an international expert in local government bond market, a national expert in sub-sovereign credit ratings and bond markets; and a national firm in local government finance and bond markets.
Procurement no procurement
Responsible ADB Officer Van Rijn, Johannes Jacobus Frederik
Responsible ADB Department East Asia Department
Responsible ADB Division Public Mgt, Financial Sector and Regional Coop Division, EARD
Executing Agencies
Ministry of Finance
Sanlihe, Xicheng District
Beijing,100820
People's Republic of China
Timetable
Concept Clearance 22 Jun 2018
Fact Finding 19 May 2018 to 23 May 2018
MRM -
Approval 28 Aug 2018
Last Review Mission -
Last PDS Update 29 Sep 2021

TA 9563-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Aug 2018 20 Sep 2018 20 Sep 2018 31 Oct 2020 30 Jun 2022 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
400,000.00 0.00 0.00 0.00 0.00 0.00 400,000.00 17 Jun 2022 94,782.64

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.

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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.

None currently available.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


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Tenders

Tender Title Type Status Posting Date Deadline
National Consulting Firm Firm - Consulting Closed 06 Sep 2018 23 Sep 2018
International Expert in Local Government Bond Markets Individual - Consulting Closed 03 Aug 2018 16 Aug 2018

Contracts Awarded

No contracts awarded for this project were found


Procurement Plan

None currently available.