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									                      NEWS FROM                                                                          

                      A Newsletter of the People’s Republic of China Resident Mission                                             August 2006
                      of the Asian Development Bank                                                                               2006 8

ADB and the PRC Celebrate 20 Years of Partnership

                                                                                                     In its transition to a market economy,
                                                                                                the PRC faces many challenges such as
                                                                                                eradicating poverty, accelerating rural
                                                                                                development, maintaining rapid growth
                                                                                                and job creation, addressing inequalities
                                                                                                in income and opportunity, promoting
                                                                                                private sector development, increasing
                                                                                                reliance on the rule of law, and educating
                                                                                                children so that they can fully participate
                                                                                                in future economic activities.
                                                                                                     Jointly with the PRC Government,
                                                                                                ADB has been preparing a new partner-
                                                                                                ship strategy for the PRC. The strategy
                                                                                                will review the changing development
                                                                                                setting, discuss opportunities for ADB to
                                                                                                help combat poverty in the country, and
                                                                                                examine how to further enhance the PRC-
 ADB President Haruhiko Kuroda delivers the opening speech.                                     ADB partnership.
                                                                                                       I am confident that ADB can continue to

         DB and the People’s Republic             ADB-funded projects and ADB studies           make an important contribution to economic
         of China (PRC) marked their 20           in the PRC on poverty reduction, transport,   and social development in the PRC, Mr. Kuroda
         years of partnership during a            agriculture and rural development, urban      said. And by deepening our partnership with
conference held in Beijing on 6 July.             development, and renewable energy             the PRC, I know we can also increase our
ADB President Haruhiko Kuroda, PRC                development. The participants also dis-       contribution to poverty reduction in Asia and
Finance Minister Jin Renqing, and Na-             cussed international experiences and les-     the Pacific as a whole.
tional Development and Reform Com-                sons in foreign capital utilization, rural
mission Deputy Secretary General Yang             development, energy and environment,
Weimin opened the celebration.                    and labor market and employment.
       It is a partnership in which ADB                After years of remarkable growth,
takes great pride, said Mr. Kuroda in his         the PRC is entering into a new phase of
opening speech. The 20th anniversary              development. Its 11th Five-Year Program
is a time not only to celebrate our fruitful      lays out a vision for improved standard of
past collaboration, but also to look to the       living for the country’s citizens, broaden-
future of this important relationship.            ing the benefits of growth to less devel-
                                                  oped regions, and ensuring environmen-         A great place to meet old and new friends.
     During the conference, implement-
                                                  tal sustainability.
ing agencies presented best practices of

        The PRC joined ADB in 1986. ADB’s
    cumulative lending to the PRC amounted
    to $16.2 billion by the end of 2005. In
    2005, ADB approved eight loans totaling
    $1.5 billion and 34 technical assistance
    grants amounting to $18.33 million.
         While building on its operational
    base in infrastructure, ADB is diversify-
    ing its operations into rural and urban
    development, environment, energy
    conservation, regional cooperation, and
    social development, both through lend-
    ing and knowledge-based non-lending                                                                Signing ceremony for Guangxi Nanning Urban Infrastructure
    operations.                                                                                        Development loan project.

              2006            7           6

                                                                                                                                                                                                                162                         2005
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    ADB New and Revised Policies and Procedures

                                                                                                            day after the PRC-ADB 20th                                                      Innovation and Efficiency Initiative

                                                                                                   A        Anniversary celebration, ADB
                                                                                                            and the Ministry of Finance
                                                                                                            (MOF) jointly organized a
                                                                                                                                                                                                ADB has established the Innovation
                                                                                                                                                                                            and Efficiency Initiative to streamline
                                                                                                                                                                                            some of its business processes and de-
                                                                                                   workshop on ADB’s new and revised                                                        velop new financing instruments and
                                                                                                   disbursement, procurement, and lending                                                   modalities, making ADB more client-
                                                                                                   policies and procedures for the local                                                    and results-oriented and efficient.
        Innovation and Efficiency InitiativesWorkshop
                                                                                                   finance bureaus. Over 100 participants
                                                                                                   from 23 provinces across the PRC at-                                                     New Instruments and Modalities
        was held in Beijing on 7 July.
             7 7                                                                                   tended the workshop.                                                                             ADB is testing five new financing

    cial management; (v) results-based moni-
    toring of projects; and (vi) on-lending
    agreements. On signing the memorandum
    of understanding with MOF, the Six-Point
                                                                                                                                                                          H.                                                                                         2
    Action Plan will be implemented.
                                                                                              Satish Rao                                                                                                                                 3
         The workshop brought together 135                                                                                                                                                                                                               4
    participants from MOF, National Devel-
    opment and Reform Commission, line                                                                                                                                                                  5                                                            6
    ministries, local government agencies, EAs,
    and IAs. During the workshop, Mr. Rao
    also met with the Governor of Inner
    Mongolia Autonomous Region to discuss
    future cooperation.
                                                                      2006                                                                                                                                  135
                                                                        8 9

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    ADB Board of Governors 39th Annual Meeting Held

              DB’s Board of Governors held
              its 39th Annual Meeting on 3-6
              May in Hyderabad, India. India’s
    Prime Minister Manmohan Singh; India’s
    Minister of Finance P. Chidambaram, who is
    also Chairman of ADB’s Board of Governors;
    and ADB President Haruhiko Kuroda for-
    mally opened the meeting on 4 May.

                                                                                                   Investment rates in Asia seem too                                                                                                             Manmohan
                                                                                              low to sustain growth and poverty reduc-                                                 Singh
                                                                                              tion in the future, President Kuroda told                                                                                             (P. Chidambaram)
                                                                                              the Governors’ Seminar on the second
                                                                                              day. A panel of ADB Governors shared
                                                                                              their perspectives on a Shared
                                                                                              Responsibility: Fixing Global Payments
         ADB President Haruhiko Kuroda delivers a                                             Imbalances.
         keynote speech at the Governors' seminar.
                                                                                                                      2006            5       3       6
                                                                                                                                              5       4

ADB’s Events Related to the PRC

 Workshop on Competition Policy and                                                  Controller’s Department, PRCM, and
 Laws. 11 May. Co-organized by ADB’s                                                 Ministry of Finance (MOF) conducted
 PRC Resident Mission (PRCM) and                                                     these series of seminars for central and
 Organisation of Economic Co-op-                                                     provincial government officials and
 eration and Development (OECD),                                                     representatives of project executing
 the workshop discussed with experts                                                 agencies.
 and the press the roles of policy, law,
                                                                                     On the following day, PRCM Country
 and institutional setups in strength-
                                                                                     Director Toru Shibuichi (second from
 ening the competition mechanism in
                                                                                     right) visited a poor county and a voca-
 the PRC’s market economy. Interna-
                                                                                     tional training school.
 tional and domestic media partici-
 pated in this event and showed their
 high interest in the topic.

                                            Second PRC Soy Product Industry
                                           Roundtable Summit. Shanghai. 22-24
                                           May. PRCM staff presented a paper on
                                           nutrition in developing countries, out-
                                           lining findings of a TA project in the
                                           PRC and regional support on public
                                           nutrition at the summit.
 5    11
                                           5   22       24

                                                                                     5    23      6    1

 International Conference on Poverty
 Reduction Strategy in the New
 Millennium. Beijing. 23-24 May.
                                                                                     ADB Vice President Liqun Jin’s Visit
 PRCM presented a paper on the role of
                                                                                     to the PRC. 11-13 June. Mr. Jin (right)
 nongovernment organizations (NGOs)
                                                                                     met with senior officials from MOF,
 as partners in government-funded pov-
                                                                                     People's Bank of China, China Bank-
 erty programs, including pioneering
                                           Seminar Series on ADB’s Loan Dis-         ing Regulatory Commission, and the
 work in the PRC under a technical
                                           bursement and Accounting Policies         private sector. They discussed bank-
 assistance (TA) project.
                                           and Practices. Luoyang, Henan             ing sector reforms, including
                    5   23    24           Province; and Taiyuan, Shanxi             nonperforming loans, impact of for-
                                           Province. 23 May-1 June. ADB              eign entries, and capital market devel-

    opment in the PRC. Mr. Jin also met         Visit of Kazakhstan Small and Medium       7   26                            2
    with private enterprises in Zhejiang        Enterprise Delegation. 25 July. The
    Province and discussed with them pri-       Chief Vice Chair of the Social Eco-
    vate sector development in the PRC.         nomic Analytical Department of the
                                                Kazakhstan President's Office headed?
                                                the delegation to PRCM. PRCM’s
                                                Yuanyuan Wang (left) gave a presenta-
                                                tion on ADB’s private sector operations.
                                                7    25

                                                    ( )

    6   11     13

                                                                                           Central Asia Regional Economic Co-
                                                                                           operation (CAREC) In-country Con-
                                                                                           sultation Workshop. Taiyuan, Shanxi
     PRCM and NGO Roundtable                                                               Province. 26-29 July. Toru Shibuichi
    Discussion. 15 July. The roundtable         Conference on Rural Road Develop-          (third from right), Country Director,
    discussion was held as part of the stake-   ment and Poverty Impact. Beijing. 26       PRCM gave opening remarks at the
    holder dialogue in preparation for the      July. H. Satish Rao (second from right),   workshop on the Comprehensive Ac-
    next Country Strategy and Program for       Director General, ADB East Asia            tion Plan for Central Asia Regional
    the PRC. Domestic and international         Department, and Weng Mengyong              Economic Cooperation (CAREC)
    NGOs discussed ADB's recent PRC             (middle), Communications First Vice        Program, cosponsored by MOF and
    programs and emerging directions.           Minister opened the conference. Mr.        ADB. The participants also discussed
                                                Rao met with senior officials from MOF     the PRC’s initiative in developing a
                                                and the National Development and Re-       country strategy for CAREC, the first
                                                form Commission.                           among CAREC countries.
                                                                                           7   26      29


    7   15                                      Mr. Rao also made a 3-day visit in
                                                western Gansu Province. He met with
                                                Vice Governor Feng Jianshen (right)
                                                and exchanged views on ADB’s ongo-
                                                ing and planned assistance for the
                                                Gansu Province to support the PRC’s
                                                Western Development Strategy.

Roundtable of Donors and Government        8   25                                    part of a TA project for preparing the
Officials on the PRC’s Food Safety.                                                  PRC’s 11th 5-year Program. Resource
Beijing. 17 August. ADB and WHO                                3000                  persons from India, Indonesia, Repub-
held a meeting to review findings and                         5%                     lic of Korea, and Thailand shared coun-
policy recommendations under a TA                    3                               try experiences. PRCM CD Toru
project for a national food safety stra-                                             Shibuichi (pictured at lectern) deliv-
tegic and regulatory framework, as a                                                 ered opening remarks.
precursor to an inter-ministerial meet-
                                           Senior Officials' Meeting on CAREC.
ing that took place on 21 August. The
meeting was held a week after another      Urumqi, Xinjiang Uygur Autonomous
                                           Region of the PRC. 28-29 August. Of-
food safety scandal hit Beijing front-
page headlines. High-level officials       ficials from Afghanistan, Azerbaijan,
                                           PRC, Kazakhstan, Kyrgyz Republic,
from the MOF, State Food and Drug
Administration, and other crosscutting     Mongolia, Tajikistan, and Uzbekistan;
                                           and representatives of ADB, European
agencies reviewed the TA project’s
final findings and recommendations         Bank for Reconstruction and
                                           Development, International Monetary
for policy and institutional reform.
                                           Fund, Islamic Development Bank,
8    17                                    United Nations Development                6    19
                                           Programme, and World Bank reviewed
                                           the proposed strategic framework for a
                                           comprehensive action plan and dis-
                                           cussed program activities.

           8   21
                                                                                     Forum on Economic Cooperation of
                                                                                     Beibu Gulf Rim. Nanning, Guangxi
                                                                                     Province. 20-21 July. ADB Vice Presi-
Signing Ceremony for ADB’s Invest-                                                   dent van der Linden opened the forum
ment in Hangzhou City Commercial                                                     and met with provincial government
Bank. Hangzhou, Zhejiang Province.                                                   officials. He also visited an ADB road
25 August. ADB invested $30 million,                                                 project that is part of the Greater Mekong
equivalent to about 5% of total out-                                                 Subregional economic corridor.
                                           8   28        29
standing shares in the Hangzhou City
Commerical Bank. Country Director
Shibuichi (third from left) delivered a
speech at the ceremony. ADB’s del-
egation also met with the Vice Mayor
of Hangzhou City.

                                           International Seminar on Utilization of
                                           International Financial Institutions                                7     20-21
                                           (IFIs) and commercial loans. Beijing.                                         . .
                                           19 June. Seminar participants discussed
                                           the PRC’s strategies in using loans
                                           from IFIs and commercial sources, as

    ADB Publications

     Medium-Term Strategy II (MTS II),                             II     MTS II                  ments/books/key_indicators/2006/.
     2006-2008 in Chinese
                    II 2006        2008                                                                                            8    16

                               This new
                          Strategy aims
                          to strengthen
                          poverty reduc-    Key Indicators (KI) 2006                              Second Governance and Anticorruption
                          tion impact of
                                             2006                                                 Action Plan
                          ADB’s opera-
                          tions through                                   This an-
                          five strategic                              nual statistical                 On 21 August, ADB launched
     priorities: catalyzing investment,                               databook on 44              this action plan, which aims to im-
     strengthening inclusiveness, promot-                             of ADB’s devel-             prove the effectiveness of ADB’s de-
     ing regional cooperation and                                     oping member                velopment assistance and contribute
     integration, managing the                                        countries was               to poverty reduction throughout the
     environment, and improving gover-                                launched on 16              region. See
     nance and preventing corruption. The                             August. The                 ments/Policies/Governance/GACAP-
     Chinese version of MTS II is avail-                              37th issue of KI            II.pdf.
     able online:                                 features a spe-
     Documents/Translations/Chinese/.       cial chapter on Measuring Policy Effec-                              8    21
     Hard copies can be obtained from       tiveness in Health and Education. The
     PRCM.                                  Statistical Database System has also been
                                            updated. See                          (               )

                                                                                                The quarterly newsletter of the People's Repub-
                                                                                                lic of China Resident Mission (PRCM) of the
                                                                                                Asian Development Bank (ADB) aims to en-
                                                                                                hance communications between ADB and its
                                                                                                client groups. News from the PRC disseminates
                                                                                                information on ADB activities and provides a
    Asian Development Bank
                                                                                                forum on development issues in the People's
    PRC Resident Mission                                                    156
                                                                                                Republic of China. Articles in the newsletter,
    7th Floor, Block D,                                                           D    7        however, do not necessarily reflect the official
    Beijing China Merchants                         (8610) 6642 6601                            ADB view. We welcome comments and sug-
    International Financial Center                  (8610) 6642 6606                            gestions from readers.
    156 Fuxingmennei Ave.,Beijing 100031       
    Tel: (8610) 6642 6601                  
    Fax: (8610) 6642 6606                         In this publication,   $    refers to US dollars.                                     $


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