World Bank's Board of Executive Directors yesterday approved a
US$20 million loan to support China's economic reform. It is the
fifth in a series of technical cooperation projects that the Bank
has funded since 1983.
The China Economic Reform Implementation Project aims to
significantly increase the adoption and use of sound reform and
development strategies, policies and plans in China.
This will be achieved through institutional capacity building
through a series of technical assistance subprojects tailored to
address specific challenges facing the government at the national
and sub-national levels. The project has a strong focus on learning
of new knowledge as well as on replication and scaling up efforts
that work.?
"The key words to describe this project are "reform and
development" and "technical assistance," said Chunlin Zhang, World
Bank task manager for the project. "It is designed to assist
government decision makers who are determined to implement a reform
and development agenda in their departments or regions, but face a
lack of technical knowledge and capacity. In supplying the
knowledge and capacity they need, the project is driven by real
demand and focused on achieving results. "
Subprojects will focus on a range of objectives reducing
poverty, inequality and social exclusion; improving public and
market institutions; managing scarce resources and environmental
challenges; financing sustained and efficient growth; integrating
China into the world economy; or promoting achievement by China of
the Millennium Development Goals.
The Department for International Development (DfID) of the
Government of the United Kingdom has approved a grant of 5.71
million pounds to co-finance this project. It aims to support
sub-national governments implementing projects focused on poverty
reduction and the achievement of the Millennium Development
Goals.
"DFID grant funding will enable the poorer parts of China to
benefit from the access to external expertise this project will
support, and so help promote achievement of the more equitable and
harmonious society that is the objective of the new 11th Five Year
Plan". DFID's Deputy Representative Chris Athayde said.
The project will be implemented by Ministry of Finance of China.
Central government departments and local governments can apply for
subproject funding from Ministry of Finance any time during the
period of project implementation (2006-2011). The proceeds of the
loan and grant will finance consulting services, workshops,
training, study tours and other capacity building activities. The
International Department of Ministry of Finance will issue detailed
guidelines for preparation of subproject proposals. Subprojects
will be required to produce "strategies, policies, implementation
plans and mechanisms" that may significantly contribute to the
achievement of a project objective, and to be clearly defined in
light of the practical challenges that the subproject is designed
to address.?
The US$20 million loan from the International Bank for
Reconstruction and Development is repayable in 20 years with a
five-year grace period.
(China.org.cn April 12, 2006)