China, People's Republic of : Reform and Diversification of the Local Government Bond Market
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
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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 |
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| Project Status | Closed | ||||
| Project Type / Modality of Assistance | Technical Assistance |
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| Source of Funding / Amount |
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| Strategic Agendas | Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development |
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| Sector / Subsector | Finance / Banking systems and nonbank financial institutions |
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| Gender | 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 |
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| 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 Corona Virus outbreak 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. In May 2022, a webinar was held, jointly organized by MOF and ADB. Resource persons from Japan and the Republic of Korea were recruited to present international good practices around the management of local government bonds. A closing session with MOF was organized in June 2022. The TA activities were completed on 30 June 2022. The financial closing of the TA account is ongoing. Substantial savings were recorded because none of the originally scheduled travel-related activities could take place due to the global COVID-19 pandemic. |
| 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 |
| 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 | 27 Sep 2022 |
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 | 30 Sep 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 | 06 Oct 2022 | 182,361.57 |
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 |
|---|---|---|
| Reform and Diversification of the Local Government Bond Market: Technical Assistance Report | Technical Assistance Reports | Aug 2018 |
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 | ||
| International Expert in Local Government Bond Markets | Individual - Consulting | Closed |
Contracts Awarded
Procurement Plan
None currently available.