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Overview of China's Projects & Programs

(worldbank.org)
Updated: 2008-02-18 14:54

The lending program supports key Government priorities in infrastructure, rural poverty reduction, and natural resource management with financial resources as well as with knowledge and capacity building embedded in lending projects. Since the first loan in 1981 supporting development of Chinese universities, the World Bank’s cumulative lending to China as of June 30, 2007 was close to US$42.2 billion for a total of 284 development projects. 70 of these projects are under implementation, making China’s portfolio one of the largest in the Bank. World Bank-supported projects can be found in almost all parts of China and in many sectors of the economy.

Currently the portfolio is concentrated in transportation, urban development, rural development, energy, and human development, but the focus of projects in each of these areas has shifted as China’s development needs have changed. Whereas early projects focused on introducing modern project appraisal, management, and construction techniques, more recent projects have increasingly concentrated on the social and environmental externalities resulting from China’s rapid growth.

Today, over 60 percent Bank-financed projects include a strong focus on the environment. Urban projects focus on urban environment, including sustainable water supply, sanitation, and urban transport; and energy projects have focused increasingly on introducing new approaches to encourage energy efficiency and use of renewable energy. Transport projects, which have traditionally focused on connecting the poorer inner provinces to the dynamic coast increasingly focused on rural roads and on urban transport. Lending in support of the social sectors and pro-poor rural development has been maintained in recent years through innovative blending of the Bank’s International Bank of Reconstruction and Development (IBRD) resources with grants from Britain’s Department for International Development (DfID). China is among the World Bank’s best-performing member countries in terms of project implementation.

As a result of the impressive growth of China over the last twenty years, China graduated from IDA on July 1, 1999 and is now eligible only for IBRD loans. China's improved financial situation and lower domestic interest rates have reduced its need for external assistance.

A three-year rolling cooperation program between China and the World Bank is reviewed and updated once a year. The Ministry of Finance is the chief counterpart agency for all World Bank Group operations in China. The National Development and Reform Commission also plays a central role in program formulation. Program proposals may be submitted by either side. All project proposals are thoroughly appraised technically, economically, financially, environmentally and socially before being submitted for final approval by both lender and borrower.

For analytical and advisory work, an annual program of major activities is agreed, supplemented by ad hoc requests from the Government for work on emerging issues. The World Bank's China program is managed through its office in Beijing.


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