|Project Name||Emergency Assistance Program in Supporting China’s Economic Recovery from COVID-19|
|Country||The People’s Republic of China|
|Sector||COVID-19 Emergency Program Loan|
|Board Approval Date||26 February 2021|
|Total Project Cost||RMB 7 billion|
|Loan Amount||RMB 7 billion|
|Borrower||The People’s Republic of China|
|Implementation Agency||Export-Import Bank of China (EximBank) and the Agricultural Development Bank of China (ADBC)|
|Project Context||Through supporting the Government’s prioritized sectors, the Program will contribute to mitigating the adverse impacts of COVID-19 on Chinese economy, particularly for the restoration of economic activities and production that will generate employment in the near term.
More importantly, the Program also reinforces the achievements of early economic recovery, and helps meet mid- and longer-term needs of sustainable economic recovery, through stimulating infrastructure development.
|Project Objective||The Loan is to support the Government’s priorities for economic recovery efforts in response to COVID-19. The intervention aims to: i) support restoration of production capacity in key sectors adversely affected by the pandemic; and ii) reinforce early economic recovery, including through further infrastructure development to continuously enhance economic growth and employment.|
|Project Description||Based on the current stage of economic recovery in China, the Program will support China’s urgent need to restore production and create jobs. To reinforce the efforts and achievements made by the Government, it will also extend support to sustainable development of China’s economy over the long term.
The loan proceeds will be utilized for projects in the sectors directly hit by the COVID-19 pandemic such as trade, logistics, agriculture, health, labor intensive infrastructure sectors, as well as innovative and high-tech infrastructure promoted by the Chinese Government to sustain recovery, and to support sustainable development.
|Expected Benefits||Through supporting the Government’s prioritized sectors, the Program will contribute to mitigating the adverse impacts of COVID-19 on Chinese economy. More specifically, the Program will help in reviving economic activities and resuming productivity in the key sectors, and consequently generate employment opportunities in the near term. In addition to supporting China’s urgent needs for the economic recovery, the Program will also help to achieve sustainable economic development over the medium- to longer-term and contribute to full restoration and further development of supply chains, as well as development of important “21st century infrastructures” (New Infrastructure Initiative).|
|Environmental and Social Aspect||The Program is classified as Category “FI-B” in line with NDB’s Environmental and Social Framework (ESF). The Borrower shall cause the Implementing Agencies to carry out the Program in accordance with (i) the applicable Law relating to environmental and social aspects in China; (ii) the scope of the Program; and (iii) the relevant Transitional Requirements, including applicable transitional policies and regulations issued by the Chinese Government for purpose of combating COVID-19.|
|Financing Aspect||The total Loan amount of RMB 7 billion will be on lent to EximBank and ADBC in the amounts of RMB 4.9 billion and RMB 2.1 billion, respectively.|
|Implementation||EximBank and ADBC will be the Implementing Agencies (IAs) for the Program.
The Loan will be provided to Ministry of Finance, which will then on-lend to EximBank and ADBC. The two banks, in turn, will use the loan proceeds to provide loans to projects in the eligible sectors. The IAs will take overall responsibility for the Program’s implementation, ensuring timely disbursement and strict compliance of the use of the funds. The implementation arrangement maximizes the envisaged impacts of the Program through on-lending by the leading development banks in China.
|Project Portfolio Management Department:
|Yue Ding|| Yao Lv