China’s Guangxi Zhuang region gets ADB infrastructure loan
27 July 2010
The Asian development Bank (ADB) is to provide a US$ 150 million loan to the Guangxi Zhuang autonomous region of China to fund the development of infrastructure in the cities of Fangchenggang, Chongzuo and Baise.
The loan will be used to build over 53 km of roads in the three cities as well as for the construction of bridges, water supply, drainage and sewer systems. In Fangchenggang, dykes will also be built for coastal protection.
Principal urban development specialist in the ADB's East Asia department, Fei Yue said, "The project is part of the national government's strategy to cut poverty and promote inclusive growth in less developed weatern parts of the country.
"It also supports the ADB's ongoing efforts to convert Greater Mekong Subregion transport corridors into fully-fledged economic corridors, providing increased opportunities for trade and development."
The 25 year term loan has a grace period of five years and will cover 50% of the project's estimated cost of US$ 299 million. Counterpart funding of US$ 73.4 million will be provided by the municipal governments of Fangchenggang, Chongzuo and Baise, with US$ 75.5 million of further loans to be provided by domestic banks.
Construction work is expected to be completed by June 2015.
