Asian Development Bank to Grant China US$3.5 Billion of Loans

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Last updated at: (Beijing Time) Friday, January 25, 2002

Asian Development Bank to Grant China US$3.5 Billion of Loans

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The Asian Development Bank (ADB) has decided to provide US$3.5 billion of loans to support China's infrastructure construction, environmental protection, poverty alleviation and western development strategy over the next three years.

Tadao Chino, the bank's president, said his bank will continue its active partnership with China because China's reform offers rich opportunities for the bank to pursue its objective of fighting poverty in the Asia-Pacific region.

Chino said that about 70 per cent of the bank's future lending would be used to support projects in China's central and western provinces.

"This means the loans will be mainly used in infrastructure, human-resource development, tackling land degradation and managing scarce water resources," he said at a ceremony to launch a picture book celebrating the 15th anniversary of co-operation between China and the bank.

Jin Liqun, vice-finance minister, said China had become the second largest country to use loans from the bank and the largest country to use the bank's technical-assistance grants.

By the end of last year, the bank had provided China with US$11.3 billion in loans and about US$200 million in technical-assistance grants, Jin said.

Through their co-operation, China has won the bank's support in such aspects as funds, technology and management, Jin said.

On the other hand, the successful co-operation between China and the bank has enriched the bank's own experience and practice, he said.

According to Chino, the Asian financial crisis of 1997 and the September 11 terrorist attacks in the United States last year reinforce the importance of regional co-operation.

"Despite the rapid progress during the past two decades, China still needs to continue its economic-reform efforts and its fight against poverty," Chino said.

China faces many challenges in the coming years. These challenges include eradicating poverty, accelerating rural development, developing a social security system, protecting the environment, restructuring State-owned companies, strengthening the financial sector and promoting further development of the private sector, Chino noted.

The bank will continue to seek creative and effective ways to co-operate with China to help move closer to the goal of an end to poverty, he said.

He added that, with China's support, the Greater Mekong Subregional Co-operation initiative is promoting co-operation between Southwest China's Yunnan Province and the Southeast Asian countries through which the Mekong River passes.

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