partnership brief: cofinancing with the people's republic of china

7/31/2019 Partnership Brief: Cofinancing with the People's Republic of China

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Partnership BriefCofinancing with the Peoples Republic of China


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3 Defining the Partnership

6 Highlights

Box and Tables

5

Capacity Building in the Greater

Mekong and Central Asia

8 Direct Value-Added Cofinancing

10 Trust Fund Commitments

Contents

2012 Asian Development Bank

All rights reserved. Published 2012.Printed in the Philippines.

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Note:

In this publication, $ refers to US dollars.

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n a unique cofinancing

relationship, the Peoples

Republic of China (PRC) and

the Asian Development Bank

(ADB) have been working

together to support regional

cooperation and poverty reductionfor ADB developing member

countries in Asia and the Pacific.

Through the establishment

in 2005 of the PRCs Poverty

Reduction and Regional

Cooperation Fund (PRC Fund)

the first and only trust fund

financed by contributions from

an ADB developing member

countryprojects totaling almost

$20 million were approved during

20052011, to support capacity-building and knowledge-sharing

activities. Priority support was

given to countries in the Greater

Mekong Subregion (GMS) and the

Central Asia Regional Economic

Cooperation (CAREC). The PRC

has since replenished the fund,

with another $20 million in 2012.1

When established, the PRC

Fund was the only ADB-managed

trust fund supporting regional

cooperation and integration, oneof five core operational areas

prioritized in Strategy 2020, ADBs

long-term strategic framework.

The funds objectives include to

accelerate poverty reduction and

economic and social development

in the region with tangible results.

1The GMS countries include Cambodia, the

Peoples Republic of China (Yunnan Province

and Guangxi Zhuang Autonomous Region), the

Lao Peoples Democratic Republic, Myanmar,

Thailand, and Viet Nam. The CAREC countries

include Afghanistan, Azerbaijan, the Peoples

Republic of China (Xinjiang Uygur Autonomous

Region and Inner Mongolia Autonomous

Region), Kazakhstan, the Kyrgyz Republic,

Mongolia, Pakistan, Tajikistan, Turkmenistan, and

Uzbekistan.

The PRC Fund finances

activities that promote regional

cooperation and integration

through capacity-building

and knowledge-sharing

programs; contribute to poverty

reduction through cross-borderharmonization and regional public

goods provision; and contribute to

SouthSouth knowledge sharing

through knowledge dissemination

and network building among ADBs

developing member countries.

In 2009, the PRC, represented

by the ExportImport Bank of

[the Peoples Republic of] China,

signed a framework cofinancing

agreement with ADB to deepen the

institutional partnership based on aprogrammatic approach. Under the

agreement, the bank earmarked an

amount equivalent to $1.5 billion

over 3 years for cofinancing

ADB projects.

The PRC replenished the PRC Fund with $20 million in 2012

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4 Partnership Brief

PRC FundInstitutionalStructure Executing agency: Ministry

of Finance of the Peoples

Republic of China

Implementing agency: Asian

Development Bank

Management responsibility

in ADB: Office of Regional

Economic Integration

Communication on financial

aspects and reporting: Office

of Cofinancing Operations

Regional Cooperation andIntegrationAs of April 2012, the PRC Fund

had approved funding applications

amounting to $18.84 million

for 47 ADB projects. Of these,

22 have been completed and 25

are ongoing. Most projects (39)

support capacity building and

institutional strengthening, one

of four priority areas in which thePRC Fund is active.

Among the most successful

activities funded by the PRC

Fund were projects supporting

the Phnom Penh Plan for

Development Management in

the GMS and several projects

providing capacity building in

CAREC. These projects trained

civil servants associated with

the GMS and CAREC programs

to better manage regionalcooperation and included learning

and skills development, research,

networking, the establishment

of research institutes, and

fellowship grants for short-term

training courses for public policy

management in top international

institutions (see box, page 5).

Among its many

achievements, the PRC Fund

contributed to the development

of GMS partner institutions, as

well as the activities of the CAREC

Institute and the establishment

of the Asia-Pacific Institute for

Water Security.

Support to other focus areas

of the PRC Fund included research

and analytical work (16 projects);

dissemination, networking, and

cross-learning (14 projects); and

piloting of innovative approaches

(6 projects). Public sector

management received the biggest

share of funding (40%), followed

by industry and trade (22%),

agriculture and natural resources

(18%), multisector (13%), finance

(4%), and energy (3%). The most

significant share of the funds

financial support was directed toprojects in the GMS (43%) and

CAREC (24%).

Several PRC Fund projects

also helped reduce poverty more

directly. These projects worked

to harmonize regulations for

investment and trade and to

boost cross-border employment

opportunities. They also

supported agriculture and

trade sectors, where many poor

households are engaged, and

provided the poor with skills for

better managing outbreaks of

communicable diseases.

For example, the project

Transboundary Animal Disease

Control for Poverty Reduction

in the GMS, completed in 2011,

addressed regional public health

concerns related to animal

diseases. It identified targeted

disease control approaches

and improved the diagnostic

capacities of national and regional

laboratories. This improved the

flow of information on diseases

among GMS countries. The project

also applied disease control

programs to improve the incomes

of poor livestock holders along theMekong River.

The PRC Fund also supports

private sector participation in the

implementation of the CAREC

trade facilitation component.

The CAREC Federation of Carrier

and Forwarder Associations,

the only private-sector-led sub-


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Defining the Partnership

regional cooperation mechanism,

provides the essential link

between CAREC public and private

sector programs.

Generating CofinancingImportantly, the PRC Fund has

also helped catalyze additional

support for regional cooperation

and integration from multilateral

development partners, such

as the International Fund for

Agricultural Development, the

International Institute for Trade

and Development, and the Food

and Agriculture Organization,

and from bilateral development

partners including Australia,

Finland, France, Japan, the

Republic of Korea, New Zealand,

Sweden, and the United

Kingdom. Altogether, the PRC

Fund has helped mobilize morethan $45 million in additional

financing for 27 of the 47 projects

it supports, including counterpart

funding from governments.

Capacity Building in the GreaterMekong and Central Asia

Among the most successful programs of the PRCs PovertyReduction and Regional Cooperation Fund (PRC Fund) is a

series of projects under the Phnom Penh Plan for Development

Management, which focused on improving the capacity for public policy

management among senior and mid-career civil servants in the Greater

Mekong Subregion (GMS).

The fund provided a total of $1.5 million to the Phnom Penh Plan,

which conducted 90 learning programs benefiting over 1,770 civil servants

from the six GMS countries. About 11% of these programs were supported

by the PRC Fund.

A fellowship program under the plan allowed 31 mid-career and

13 senior GMS civil servants to participate in executive and leadership

programs in top international business schools and institutions.

In addition, GMS Development Dialogues were conducted on energysecurity, climate change, food security, labor migration, economic

corridors, and on complementarities between the GMS and the Association

of Southeast Asian Nations.

The plan also established the Leaders Networking for Knowledge (LINK)

program to Phnom Penh Plan alumni to allow them to share knowledge

and to network. PRC Fund support has so far organized 10 LINK events.

Central AsiaIn three regional technical assistance grants, the PRC Fund supported a

series of programs involving training and knowledge sharing to increase

capacity among officials associated with the Central Asia Regional

Economic Cooperation (CAREC) program for work in regional cooperation.

The first of theseCapacity Building for Regional Cooperation inCentral Asia from February 2006 to July 2007conducted seminars

and training workshops to expand awareness of regional cooperation

and encourage discussion of the various approaches for deepening

cooperation. It also conducted a study tour to expose CAREC civil servants

to experiences in the more advanced GMS cooperation program. Over the

course of the project, 323 people received training.

During 20072008, 491 participants took part in the project,

Capacity Development for Regional Cooperation in CAREC Participating

Countries (Phase I), which provided training and a better understanding

of the role and potential of regional cooperation. The project helped civil

servants examine opportunities and challenges in implementing regional

programs and initiatives and completed eight studies to support more

effective regional cooperation in Central Asia.The CAREC Institute project of January 2009 to March 2012,

meanwhile, has supported the development and delivery of training and

research aligned with the work of the CAREC program. The PRC Fund

supported the Leadership Development Initiative, which improved the

analytical tools and skills of public officials. It also financed the launch

of the CAREC Institute Research Program. The project conducted sector

training, knowledge-sharing activities, and workshops through March

2012. As of January 2011, 1,026 participants had received training.


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Pakistan

Uzbekistan

Afghanistan

Azerbaijan Kyrgyz Republic

Tajikistan

6 Highlights

Cumulative Direct Value-Added Cofinancing

(as of 30 Apr 2012)

Direct Value-Added Cofinancing

Investment projects No grants No loans

Technical assistance: $18.88 million for 48 projects(including one project not funded by the PRC Fund).

See tables, pages 810, for projects.

Kazakhstan

Turkmenistan

Central Asia Regional EconomicCooperation countries

Greater Mekong Subregion countries

Distribution of PRC FundProjects by Priority Activity

(number of projects, as of 30 Apr 2012)

Note: Based on project numbers. Some projects arecounted more than once as they cut across severalpriority activities.

Capacity building

and institutionalstrengthening

39

Research and

analytical

work

16Piloting of

innovative

approaches

6

Dissemination,

networking,

and cross-

learning

14


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Viet Nam

Mongolia

Cambodia

LaoPeoples

DemocraticRepublic

PeoplesRepublicof China

Projects Funded by the PRC Fundby Sector

(%, as of 30 Apr 2012)

Public Sector

Management

40.00

Agriculture

and Natural

Resources

18.00

Industry

and Trade

22.00

Multisector

13.00

Energy3.00

Finance

4.00

Thailand

ASEAN = Association of Southeast Asian Nations;ASEAN+3 = ASEAN plus the Peoples Republic ofChina, Japan, and the Republic of Korea; CAREC =Central Asia Regional Economic Cooperation;DMC = developing member country.

ASEAN/

ASEAN+3

11.00

Asia and the

Pacific/

Selected DMCs

16.00

Central

Asia/CAREC

24.00

Greater

Mekong

Subregion

43.00

Northeast Asia

6.00

Distribution of PRC Fund Projectsby Subregion

(%, as of 30 Apr 2012)


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Year Project Amount

Cambodia

2009 Capacity Development for National Economic Policy Analysis and DevelopmentManagement, Phase III

500.00

Regional

2011 Regional Program for Research and Capacity Development on Water Security 500.00

2010 Supporting the Boao Forum for Asia and the Asian Exim Banks Forum in Dialogues

on Regional Economic Integration and Partnership

500.00

2010 Strengthening the Coordination of the GMS Program 500.00

2010 Strengthening Carbon Financing for Regional Grassland Management in

Northeast Asiac300.00

2010 Strengthening Carbon Financing for Regional Grassland Management in

Northeast Asiac, d100.00

2010 Strengthening CAREC, 20072009 (Supplementary)d 500.00

2010 GMS Phnom Penh Plan for Development Management IV 500.00

2009 Asia Pacific Procurement Partnership Initiative 500.00

2009 CAREC: Working with the Private Sector in Trade Facilitation 500.00

2009 Capacity Development in Results-Based Monitoring and Evaluation for Countries

under ADBs CAREC Program

500.00

2009 Deposit Insurance Establishment 500.00

2009 Implementing the GMS Human Resource Development Strategic Framework andAction Plan

500.00

2009 Transboundary Animal Disease Control for Poverty Reduction in the GMS(Supplementary)d

200.00

2008 Accelerating the Implementation of the Core Agriculture Support Program 500.00

2008 Regional Knowledge and Partnership Networks for Poverty Reduction and

Inclusive Growth

500.00

2008 Small-Scale Technical Assistance for Developing a Computable General EquilibriumModeling Framework for Analyzing the Impacts of Power Trading between Mongoliaand the Peoples Republic of China

150.00

2008 CAREC Institute, 20092012 500.00

2008 Development Study of the GMS Corridor (Supplementary)d 400.00

2008 Enhancing Transport and Trade Facilitation in the GMS 500.00

2008 Capacity Building and Institutional Strengthening of the Free Trade Agreement Unitsin Selected ASEAN Member Countries

500.00

Direct Value-Added Cofinancinga ($ 000, Mar 2005Apr 2012)bTechnical Assistance Projects

8

a Cofinancing with contractual or collaborative arrangements between a financing partner and ADB. In addition,the Peoples Republic of China and ADB have common projects that are considered under other cofinancing.Other cofinancing is cofinancing in which a financing partner and ADB cofinance a project independently with nocontractual or collaborative arrangements between them.

b All figures are given in US dollar equivalents unless otherwise indicated.c Funding was approved under separate applications.dThe cumulative number of projects excludes supplementary technical assistance grants.


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2008 GMS Phnom Penh Plan for Development Management III 500.00

2008 Supporting the Boao Forum for Asia 500.00

2008 Core Environment Program and Biodiversity Conservation Corridors Initiativein the GMS 500.00

2007 Strengthening Human Resource Development Cooperation in the GMS 22.00

2007 Enhancing the Development Effectiveness of the GMS Economic

Cooperation Program

500.00

2007 Capacity Development for Monitoring and Evaluation 500.00

2007 Strengthening CAREC, 20072009 500.00

2007 Transboundary Animal Disease Control for Poverty Reduction in the GMS 300.00

2007 CAREC Members Electricity Regulators Forum 500.00

2006 ASEAN+3 Regional Guarantee Mechanism (Project-specific)e 35.00

2006 ASEAN+3 Regional Guarantee and Investment Mechanism Phase 2 300.00

2006 Capacity Development for Regional Cooperation in CAREC Participating

Countries Phase I

500.00

2006 Enhancement of Subregional Cooperation in BIMP-EAGA and IMT-GT 250.00

2006 Capacity Building for Designing, Negotiating, and Implementing Free TradeAgreements in Selected ADB DMCs

500.00

2006 Second ASEAN+3 Seminar on Poverty Reduction 70.00

2006 Technical Training and Capacity Building for Selected ASEAN+3 Countries onRegional Economic and Financial Monitoring

500.00

2006 Partnership on Persistent Organic Pollutants Pesticides Management for Agricultural

Production in Central Asian Countries

400.00

2006 Support Preparations for CAREC Business Development Forum 200.002006 Support to Trade Facilitation and Capacity Building in the GMS 400.00

2006 Human Resources Development for Trade in the GMSd, f 250.00

2006 Expansion of Subregional Cooperation in Agriculture in the GMSg 250.00

2006 Expansion of Subregional Cooperation in Agriculture in the GMSd, g 350.00

2006 Development Study GMS Corridor 400.00

2006 Implementation of the GMS Cross-Border Transport Agreement 400.00

2005 Capacity Building for Regional Cooperation under the CAREC Program 400.00

2005 Enhancing the Business Environment in the GMS 200.00

2005 GMS Phnom Penh Plan for Development Management III 500.00

Year Project Amount

e Not financed by the Peoples Republic of China Poverty Reduction and Regional Cooperation Fund.fThis application was for the project Support to Trade Facilitation and Capacity Building in the

Greater Mekong Subregion.gFunding was approved under separate applications.

ASEAN = Association of Southeast Asian Nations; ASEAN+3 = ASEAN plus the Peoples Republ ic of China,Japan, and the Republic of Korea; BIMP-EAGA = Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEANGrowth Area; CAREC = Central Asia Regional Economic Cooperation; DMC = developing member country;GMS = Greater Mekong Subregion; IMT-GT = Indonesia-Malaysia-Thailand Growth Triangle.


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10

Trust Fund Commitments ($ million, as of 30 Apr 2012)a

Year Fund Amount Status

2012 Poverty Reduction and Regional

Cooperation Fund

20.00 Available for commitment:

$20.38 millionb

2005 Poverty Reduction and RegionalCooperation Fund

20.00

a Commitments in US dollars are as of the time of commitment. For commitments made in currencies other thanUS dollars, the amounts are converted to US dollars using the exchange rates at the time of commitment.

b Out of the total commitment of $40 million.


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Partnership Brief

Cofinancing with the Peoples Republic of China

The Partnership Brief series, compiled by the Office of Cofinancing Operations of the Asian DevelopmentBank (ADB), presents key details of cofinancing with ADBs main development partners.

About the Asian Development Bank

ADBs vision is an Asia and Pacific region free of poverty. Its mission is to help its developing membercountries reduce poverty and improve the quality of life of their people. Despite the regions manysuccesses, it remains home to two-thirds of the worlds poor: 1.8 billion people who live on less than $2 aday, with 903 million struggling on less than $1.25 a day. ADB is committed to reducing poverty throughinclusive economic growth, environmentally sustainable growth, and regional integration.

Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instrumentsfor helping its developing member countries are policy dialogue, loans, equity investments, guarantees,grants, and technical assistance.

For further information, please contact:

Asian Development BankOffice of Cofinancing OperationsCcile L.H.F. GregoryHeadRiccardo LoiDirector

Karen DeckerPrincipal Financing Partnerships Specialist

Asian Development Bank6 ADB Avenue, Mandaluyong City1550 Metro Manila, Philippineswww.adb.orgPublication Stock No. ARM124765

May 2012

Printed on recycled paper Printed in the Philippines

partnership brief: cofinancing with the people's republic of china

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