China, People's Republic of : Jointown COVID-19 Pharmaceutical Distribution Expansion Project

Nonsovereign Project | 54077-002

This project will increase access to more affordable pharmaceutical drugs, and medical devices and equipment for the under-served populations of the PRC's Tier 2 and Tier 3 cities, and rural areas. As part of the Asian Development Bank (ADB)'s broader response to the needs of its developing member countries (DMCs) during the ongoing coronavirus disease (COVID-19) pandemic, this project will also support readiness for pharmaceutical surge capacity if the COVID-19 pandemic resurfaces and intensifies in the PRC.

Project Details

  • Project Officer
    Wong, Yee To
    Private Sector Operations Department
    Request for information
  • Approval Date
    13 November 2020
  • Country/Economy
    China, People's Republic of
  • Sector
    • Health

Related Projects

Project Name Jointown COVID-19 Pharmaceutical Distribution Expansion Project
Project Number 54077-002
Borrower / Company Jointown Pharmaceutical Group Co., Ltd.
Country / Economy China, People's Republic of
Location Nation-wide
Type or Modality of Assistance
4002 Loan Ordinary capital resources EUR 30.00 million Committed
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
Sector / Subsector

Health / Health system development
Gender Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Office of the Director General, PSOD
Responsible ADB Officer Wong, Yee To
Project Sponsor(s)
Description This project will increase access to more affordable pharmaceutical drugs, and medical devices and equipment for the under-served populations of the PRC's Tier 2 and Tier 3 cities, and rural areas. As part of the Asian Development Bank (ADB)'s broader response to the needs of its developing member countries (DMCs) during the ongoing coronavirus disease (COVID-19) pandemic, this project will also support readiness for pharmaceutical surge capacity if the COVID-19 pandemic resurfaces and intensifies in the PRC.
Objectives and Scope The project will provide a loan of up to 30,000,000 (or its equivalent in Chinese yuan) to Jointown Pharmaceutical Group Co., Ltd. The proceeds of the ADB's proposed loan will be used to construct and/or expand three pharmaceutical distribution facilities in the PRC provinces of Hainan, Hebei, and Jiangsu, and for Jointown's working capital needs. Jointown is the PRC's fourth largest pharmaceutical distributor and the only private company in the top five.
Status of Development Objectives The project is aligned with the following impacts: (i) reform of the logistics systems for pharmaceuticals and consumables deepened and medicine supply mechanisms improved; and (ii) capabilities in emergency medical assistance and disease prevention and control strengthened
Status of Operation/Construction ADB loan supported the construction of three warehouses in Hainan, Hebei, and Jiangsu, respectively, all of which commenced operation from 4Q 2022.
Linkage to Country/Regional Strategy The project is aligned with one of the priority areas of ADB's country partnership strategy in the People's Republic of China for private sector development. The project supports ADB's Operational Plan for Health which includes supporting regional health security with a focus on regional health governance. The project is also in line with pillar 3 of ADB's Operational Plan, to increase and diversify regional public goods to foster regional cooperation and integration, and this pillar aims to reduce cross-border health risks through regional public goods initiatives.
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects In compliance with ADB SPS requirements, a Corporate Audit of the company's environmental and social management system (ESMS) and Existing Facility Audits of the three pharmaceutical distribution facilities (Tangshan Jointown, Hainan Jointown and Nanjing Jointown), that will be financed by the ADB loan, were undertaken. Remote audits were conducted by an external consultant due to COVID-19 travel restrictions in the PRC. The audit of Jointown's existing ESMS confirmed that the corporate level management ensures that the environment, health and safety (EHS) procedures during construction and operation are implemented by its pharmaceutical distribution facilities, and there were no outstanding non-compliances against national regulatory requirements or complaints related to EHS. The audit also confirmed that the construction and operation of the Tangshan Jointown, Hainan Jointown and Nanjing Jointown will not cause significant, adverse, irreversible, or diverse environmental impacts. Enhancements to the company's existing ESMS and implementation of facility-specific EHS corrective actions were identified during the audits and were developed into time-bound corporate level and facility level Corrective Action Plans (CAPs) to ensure compliance with ADB SPS. ADB's corporate level and facility level CAPs were consolidated with DEG's environmental and social action plan (ESAP). Jointown agreed to implement the joint ADB-DEG ESAP. ADB will require Jointown to report annually on its E&S performance.
Involuntary Resettlement In addition to the corporate review of Jointown's ESMS, a Social Compliance Audit for the three pharmaceutical distribution facilities (Tangshan Jointown, Hainan Jointown and Nanjing Jointown) that will be financed by the ADB loan, was undertaken by a third-party social safeguard specialist. The audit included site visits to each of the three subproject sites, engagement with company representatives, local community members and local government authorities. The audit found that all three subproject sites are leased sites located within pre-existing industrial parks for which land acquisition was undertaken by the local government prior to Jointown obtaining lease. The audit confirmed that the land was acquired by the government according to statutory land laws and there were no reports or evidence of unpaid compensation or grievances associated with the land acquisition for the industrial park sites. At the corporate level, Jointown actively screens for sites in locations within industrial parks or locations whereby displacement impacts would be minimized. Jointown has agreed to enhance its ESMS to adopt an ADB aligned screening, categorization and planning procedure for land acquisition and lease to avoid or minimize involuntary resettlement impacts, and avoid or actively plan to manage sites with potential land acquisition legacy issue and report performance to ADB in its annual E&S reporting.
Indigenous Peoples The Social Compliance Audit for the three subprojects found that all three subproject sites are leased sites located within pre-existing industrial parks in areas where there are no ethnic minority groups present. The audit confirmed that when land acquisition was undertaken by the local government prior to Jointown obtaining lease no ethnic minority groups owned, used or claimed the locations acquired and that consequently there were no outstanding complaints or claims associated with ethnic group impacts or the creation of project induced ethnic minority group vulnerability. Jointown has agreed to enhance its ESMS to adopt an ADB aligned screening, categorization and planning procedure for indigenous peoples / ethnic minorities to help avoid sites with ethnic minority impacts, and report performance to ADB in its annual E&S reporting
Stakeholder Communication, Participation, and Consultation The three pharmaceutical facilities are inside industrial zones established by the government and have been operating since 1992 (Tangshan and Nanjing) and 2012 (Hainan). The audits confirmed that Jointown has existing client and employee complaint management procedures and its existing Information disclosure, consultation and participation are aligned with national regulatory requirements. The joint ADB-DEG ESAP includes enhancements to its existing policies and procedures to include concerns from external stakeholders in addition to clients, improve the procedures for its internal grievance redress mechanism for employees and make this accessible to contractors' employees including at the construction sites.
Timetable for assistance design, processing and implementation
Concept Clearance 15 Jul 2020
Credit Committee Meeting 09 Oct 2020
Approval 13 Nov 2020
Last PDS Update 06 Oct 2022

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.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Jointown COVID-19 Pharmaceutical Distribution Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Oct 2020
Jointown COVID-19 Pharmaceutical Distribution Expansion Project: Report and Recommendation of the President Reports and Recommendations of the President Oct 2020

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
Jointown COVID-19 Pharmaceutical Distribution Project: Social Compliance Audit Report Social Compliance Audit Report Aug 2020
Jointown COVID-19 Pharmaceutical Distribution Project: Environmental Compliance Audit Report Environment Compliance Audit Reports Aug 2020
Jointown COVID-19 Pharmaceutical Distribution Project: Environmental and Social Management System Arrangement Environment and Social Management System Arrangements Aug 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.

Requests for information may also be directed to the InfoUnit.