VALUE ADDITION FROM ADB SUPPORT

Transcription

1 CAPE PRC, Linked Document 8 VALUE ADDITION FROM ADB SUPPORT 1. The tables below are examples of value addition of Asian Development Bank s lending and nonlending operations to the People s Republic of China. Chapter 5 in the main text of the country assistance program evaluation refers to these tables. Table 1: Value Addition from ADB-Supported Loan Projects Primary Primary ADB Intervention CPS Objective a PRC Reform Agenda b Loan No. and Sector Value-Adding Contribution Status ESG ENV 2426, 2611 Financial intermediation approach to financing Completed industry energy efficiency subprojects ESG ENV 2237 (UD) Demonstration of water reuse and clean development Completed mechanism application for small-scale landfill RCI SSC 3074 (TPT) Road asset management system for entire trunk road Ongoing network in a border province ESG ENV 3075 Demonstration of state-of-the-art renewable energy Ongoing technology to provide hands-on experience and mitigate some perceived and real risks ESG URD 3014 (TPT) Expansion of the original project concept to include Ongoing bus rapid transit and nonmotorized transport systems ESG ENV 2616 Construction of a demonstration IGCC plant, and Ongoing development of a pre-combustion CCS pilot ESG ENV 2607 Demonstration of water conservation and energyefficient Ongoing water use practices to farmers ESG ENV 2973, 2943 Demonstration and promotion of dry land watersaving Ongoing technologies, such as drip irrigation ESG ENV 2941 (UD) Demonstration of geohazard control engineering Ongoing measures to convert an evacuated geohazard-risk area in to a geohazard-free zone for urban development ESG ENV 2436 Demonstration of integrated ecosystem management Ongoing approach for sustainability of ecological processes ESG ENV 2448 (TPT) Integration of environmental protection measures in the design and construction of project expressway to tackle severe geological challenges Ongoing ADB = Asian Development Bank, ANR = agriculture and natural resources, CCS = carbon capture and storage, CPS = country partnership strategy, EGY = energy, ENV = environmental protection, ESG = environmentally sustainable growth, IGCC = integrated gasification combined cycle, No. = number, PRC = People s Republic of China, RCI = regional cooperation and integration, SSC = South South cooperation, TPT = transport, UD = urban development, URD = urban rural development. a Only the primary (or most prominent) CPS objective is specified. b Only the primary PRC reform agenda is specified. Other reform agendas are also addressed, given the strong linkages between them. Source: ADB Independent Evaluation Department.

2 2 Linked Document 8 Table 2: Value Addition from ADB-Supported Technical Assistance Projects Primary Primary ADB Intervention CPS Objective a PRC Reform Agenda b Reference No. and Sector Value-Adding Contribution ESG URD TA 8165 (UD) Technical guidelines and recommendations for a national framework on uncontrolled landfill management ESG URD TA 7839 (UD) Policy framework and guidelines on sustainable urban storm water management and utilization, and waterlogging prevention ESG URD TA 7083 (UD) Policies and tariff guidelines to promote reuse of wastewater and sustainable sludge disposal (including energy recovery) ESG URD TA 7261 ESG URD TA 8185 Nonstructural measures for drought management and water conservation; recommendations adopted in National Flood Management Plan Nonstructural measures for drought management and water conservation; recommendations adopted in National Flood Management Plan ESG URD KP (2012) Flood risk management strategy shifting from flood control approaches to integrated flood management ESG URD TA 7976 (TPT) Innovative transport demand management options for large cities (congestion charging, parking management, public transport improvement) ESG URD TA 7533 (UD) Guidance on sustainable urban development ESG URD TA 7925 (TPT) International best practices in design of user-friendly multimodal hubs that are linked to the high-speed rail program ESG URD TA 7975 (TPT) Design of multimodal access to railway station link and introducing bus rapid transit link for improved access to city ESG ENV TA 7916 (TPT) Recommendations for intelligent (green) railway station buildings that are energy efficient, have low carbon emissions, and conform to the requirements for green building certification ESG ENV TA 4967 ESG ENV TA 7699 ESG ENV TA 7328 ESG ENV TA 7146 ESG ENV TA 8421 ESG ENV TA 8544 Recommendations for policy framework for market-based instruments for water pollution control, and on how to apply economic policy instruments to address water pollution control Basis for policy framework and institutional arrangements for ecocompensation mechanisms and payment systems for ecosystem services Policy recommendations for waste coal utilization using energyefficient technologies for power generation Capacity development for planning and implementing a leading-edge clean coal technology solution Address regulatory and policy gaps for an eco-compensation mechanism in a provincial river watershed, and make recommendations for its design and implementation Establish a knowledge hub to share innovations on eco-compensation of various types, e.g., in forestland, grasslands, wetlands, desert land, wastelands, mining zones, and marine resource areas and ecosystems ESG ENV TA 7687 (UD) National low-carbon development strategy and policy guidelines for small and medium-sized cities ESG ENV TA 4912 Case study in a provincial capital on strengthening water resource management for water demand management as a pathway to increased resilience to droughts ESG ENV TA 7839 (UD) Policy framework and guidelines on sustainable urban storm water management and utilization, and waterlogging prevention ESG ENV TA 7021 ESG ENV TA 7212, TA 7963 Building capacity for integrated ecosystem management that considers ecological, social, and economic components of ecosystems in an integrated way Development of policies and instruments to enhance market-driven low-carbon development

3 Value Addition from ADB Support 3 Primary Primary ADB Intervention CPS Objective a PRC Reform Agenda b Reference No. and Sector Value-Adding Contribution ESG ENV TA 8563 Strategy to achieve the PRC s stated low-carbon goal for 2020, with recommendations for 13th five-year plan ESG ENV TA 7564 Recommendations on financial mechanisms to reduce energy intensity of SMEs ESG ENV TA 7589 Development of an environment exchange into a major carbon market ESG ENV TA 7956, TA Development of carbon markets through emission trading 8178 ESG ENV TA 4967 (UD) Policy recommendations to introduce market-based instruments and mechanisms to combat severe water pollution problems ESG ENV TA 7484 Strategy to achieve the PRC s stated low-carbon goal for 2020, with recommendations for 12th five-year plan ESG ENV TA 4812 Recommendations on governance structure, procedures for levy collection, project selection and management, risk management and compliance, and capacity development for CCDMF IG LW TA 6321 (TPT) New approach to HIV prevention in the context of road construction projects IG LW TA 4849 Technology assessment (particularly drainage technologies) for accident prevention and control in coal mines IG LW TA 7317 (FIN) Pilot test of new two-tiered rural pension system that combined personal accounts with a government-funded flat rate pension IG FSR TA 7606 (FIN) Capacity development to administer new rural pension system IG FSR TA 7765 (FIN) Development of a credit review process and risk management system to assist partner banks conduct wholesale lending to microcredit companies IG FSR TA 8282 (FIN) Development of financial and social performance rating systems for microcredit companies IG FSR TA 7322 (FIN) Development of a statistical system to track progress in agricultural and rural finance IG FSR TA 7187 (FIN) Reform rural credit cooperatives and help develop microfinance institutions IG LW TA 4868 (EDU) Policy recommendations on measures and mechanisms to improve TVET in a labor-importing province and a labor-exporting province IG LW TA 4949 (EDU) IG LW TA 8092 (EDU) IG LW TA 7438 (HSP) IG LW TA 7702 (HSP) IG LW TA 4931 (HSP) IG LW TA 7592 (HSP) IG LW TA 7391 IG URD TA 7533 Policy recommendations on making the TVET system more demandand employment-driven and competence-based to support economic development Recommendations to strengthen school enterprise and school school partnerships for TVET development Policy recommendations on design and implementation of social welfare assistance to strengthen poverty reduction function Contribution to the 12th five-year plan goal of creating a national integrated social assistance program that ensures equitable provision of benefits and access to services and adequate human resources for service delivery Policy recommendations to improve government investment decisions regarding rural health services Reform of provider payment methods for the new rural cooperative medical scheme to contain spiraling costs and improve quality of medical care Policy recommendations to strengthen public employment services in a province (including urban and rural areas, and disadvantaged groups) Strategy for urban development, input for 12th five-year plan reorienting to inclusive development and social and environmental concerns

4 4 Linked Document 8 Primary Primary ADB Intervention CPS Objective a PRC Reform Agenda b Reference No. and Sector Value-Adding Contribution RCI SSC TA 7174 (TPT) Solutions, based on international best practices, for improving logistics efficiency GOV FIS TA 7456, TA 7694 (TPT) Strategy to ascertain availability of sufficient financial resources for road maintenance and further investment in road development GOV FSR TA 4016, TA 7454 (FIN) Strengthen legal framework with respect to anti-money-laundering provisions and combating the financing of terrorism GOV FIS TA 7568 Recommendations on a revenue-neutral broadening of the tax base that would allow a reduction in some tax rates GOV FIS TA 7763 Recommendations and road map for local government debt management, on the basis of international good practices GOV FIS TA 7192 Strategic inputs for fiscal policy and fiscal support to accelerate economic growth focused on sustainable infrastructure, improved services, sustainable livelihoods, and export promotion GOV URD TA 7036 GOV URD TA 7170 GOV URD TA 7361 Strategy and policy recommendations for 12th five-year plan for a province (focused on institutional and fiscal matters related to equipment manufacturing, logistics, energy conservation, and environmental protection) Strategic inputs to 12th five-year plans for two provinces focused on rural finance, agricultural modernization, rural infrastructure, SME development, and public private partnerships Strategic inputs to 12th five-year plans for a more balanced development in one province and unified urban rural development in one large municipality Recommendations for draft law on anti-money-laundering, and accompanying regulations Policy frameworks for wastewater and solid waste tariffs (in small cities and towns) GOV FSR TA 4824 PSD URD TA 7002 (UD) ADB = Asian Development Bank, ANR = agriculture and natural resources, CCDMF = China Clean Development Mechanism Fund, CCS = carbon capture and storage, CPS = country partnership strategy, EDU = education, EGY = energy, ENV = environmental protection, ESG = environmentally sustainable growth, FIN = finance, FIS = fiscal reform, FSR = financial sector reform, GOV = governance, IG = inclusive growth, IGCC = integrated gasification combined cycle, KP = knowledge product, LW = labor and welfare, PRC = People s Republic of China, PSD = private sector development, PSM = public sector management, RCI = regional cooperation and integration, SMEs = small and medium-sized enterprises, SSC = South South cooperation, TA = technical assistance, TPT = transport, UD = urban development, URD = urban rural development. a Only the primary (or most prominent) CPS objective is specified. Other CPS objectives may also be addressed to some degree. b Only the primary PRC reform agenda is specified. Other reform agendas are also addressed given the strong linkages between them. Source: ADB Independent Evaluation Department.

5 Value Addition from ADB Support 5 Primary CPS Objective Table 3: Multiple Country Partnership Strategy Objectives and the People's Republic of China Priorities of a Facility-Type Technical Assistance a Primary PRC Reform Priority ADB Intervention Subproject Focus Value-Adding Contribution ESG ENV Environment Beijing-Hebei water resource compensation mechanisms and approaches ESG ENV Environment Breaking Environment Poverty Linkages IG URD Regional cooperation and integration Model development and pilot-testing of village poverty reduction cooperatives in Yunnan and Hebei IG URD Regional cooperation and integration New mechanisms for eastern western region cooperation in poverty reduction GOV URD Regional cooperation and integration Role and operational channels for NGOs in Wenchuan postearthquake reconstruction GOV LW Governance Pilot-testing and plan design for mobilizing the PRC poverty reduction volunteers GOV LW Governance Empowerment and opportunity: study on new strategies and system for the PRC poverty reduction GOV URD Governance Traditional culture and poverty reduction in building a new countryside IG LW Social protection and health Scale up and policy framework for supporting left behind children IG LW Social protection and health Operational mechanisms for rural dibao (rural minimum living standard guarantee program) and medical financial assistance IG LW Social protection and health Capacity building for post-earthquake child psychological support ADB = Asian Development Bank, CPS = country partnership strategy, ENV = environment reform, GOV = governance, ESG = environmentally sustainable growth, IG = inclusive growth, LW = labor and welfare, NGO = nongovernment organization, PRC = People s Republic of China, TA = technical assistance, URD = urban rural development. a Example of Technical Assistance to the People's Republic of China for Facility for Policy Reform and Poverty Reduction (TA 4933). Source: Independent Evaluation Department Technical Assistance Performance Evaluation Report: Facility-Type Technical Assistance for the People s Republic of China. Manila: ADB.

6 6 Linked Document 8 Project Name Table 4: Examples of Mutually Benefiting Interventions Loan 2395: Henan Sustainable Agriculture and Productivity Improvement Project; approved in 2007 TA 7027: Strengthening the Capacity of Sanmenxia Municipality Government in Strategic Planning and Management; approved in 2007 Loan 2260: Inner Mongolia Autonomous Region Environment Improvement Project; approved in 2006 TA 7443: Energy Efficiency Improvements in Inner Mongolia Autonomous Region; approved in 2009 Loan 2658: Inner Mongolia Autonomous Region Environment Improvement, Phase II; approved in 2010 Loan 2980: Shaanxi Weinan Luyang Integrated Saline Land Management Project; approved in 2012 TA 8293: Management and protection of Wetlands in Weinan City in Shaanxi Province, approved in 2012 TA 4061: Songhua River Water Quality and Pollution Control Management; approved in 2002 Loan 2175: Jilin Water Supply and Sewerage Development Project; approved in 2005 TA 4971: Songhua River Basin Water Pollution Control and Management; approved in 2007 Loan 2360: Jilin Urban Environmental Improvement Project; approved in 2007 Loan 2487: Songhua River Basin Water Pollution Control and Management Project; approved in 2008 EI 7301/Loan 2627: Songhua River Basin Water Pollution Control and Management Project; approved in 2010 EI 7375/Loan 2933: Songhua River Basin Water Pollution Control and Management Project ; approved in 2012 ADB = Asian Development Bank, EI = equity investment, TA = technical assistance. Source: ADB Independent Evaluation Department. Description The loan aimed to achieve a shift from grains to higher-value fruits and vegetables in Sanmexia area, using more sustainable agricultural practices that include irrigation system efficiency, greater use of organic fertilizer obtained from livestock waste in biogas plants (which also supplied energy for residential use), and crop management. The TA project was approved to address three priority issues for implementation of contract farming scheme in Sanmexia; significant progress has been made in one aspect (devising a mechanism to monitor and ensure effective contract execution). The TA was approved after it became clear (while implementing the first loan), that there was a need to enhance the skills base of municipal level district heating entities regarding design of energy efficient district heating systems. It provided useful inputs for the subsequent ADB loan to district heating companies in Inner Mongolia, which was approved in The Executive Agency had showed limited interest during the project preparatory TA phase to implement the urban-rural environment master plan under the loan project. The piggy-backed capacity development TA helped develop skills for the required mitigation measures under the master plan. The first TA for water quality and pollution control management in the Songhua River Basin developed a long-term vision for the basin and identified water quality objectives, targets and reforms, and proposed a long-term physical investment program. The TA also provided capacity building support, identified sources of pollution and produced a strategic plan to be implemented over 15 years that provided a coordinated approach across institutions. Three sovereign supported pollution control projects in the basin with an additional TA in the areas of cost recovery and tariff reform, corporate governance and enterprise reform, and private sector participation contributed to the enabling environment for private sector participation and led to two equity investments.

7 Value Addition from ADB Support 7 Table 5: ADB Policy Notes That Have Led to Government Action ADB Recommendation Background Information Government Action Moderately relax one-child policy to ease burden of individuals without siblings who must support elderly parents in the context of rapid population The United Nations began classifying the PRC as an ageing population in the year (i) To consider relaxing the onechild policy to address demographic trends (Chinese People s Consultative Conference, March 2011) aging (O&S No : Socioeconomic Implications of Population Aging) (ii) To allow couples to have 2 children if one of them is an only-child (Standing Committee of the National People s Congress, December 2013) Reform the VAT system to include services to set the sector on equal footing with manufacturing (O&S No : Rebalancing growth in the PRC: The Role of Fiscal Policy) Increase budget support to improve social protection in rural areas, in particular minimum benefit standards for health insurance and coverage of old-age pension (O&S No : Toward Universal Social Security Coverage in the PRC) Increase minimum salaries closer to average salaries (O&S No : The 12th FYP: Overview and Policy Recommendations) Address mismatch in revenue and expenditure at the local government level (O&S No : Reducing inequality in the PRC through Fiscal Reforms) Further increase payout of SOEs dividends up to international standards (O&S No : Reducing Inequality in the PRC through Fiscal Reforms) Replace the volume- based tax on the production of all natural resources by an ad valorem The first pilot in January 2012 was in Shanghai; replaced business tax with VAT for transportation (11% VAT) and modern service sectors (6%). Launched the National Rural Cooperative Medical Scheme in 2003; per-capita coverage has remained low, although it increased relatively quickly from CNY80 in 2009 to CNY250 in Labor law regulations stipulate that wages should be determined locally, taking into account (among other factors) the minimum living costs of local employees and their dependents and average wage of employees in the locality. And that minimum wages should be 40% 60% of average monthly wages, and that local governments should adjust the wages at least once every 2 years. Rising mismatch as local government expenditure responsibilities far exceeded their revenue base. This led to excessive reliance on land rights sales and shadowy financial platforms to finance investments in infrastructure. SOE dividend payouts to the PRC government have been in the 3% 5% range. The traditional volume-based tax benefited the natural resource extracting enterprises, encouraged 2013 (Decision 18): Advance valueadded tax reform and appropriately reduce rates 2013 (Decision 6): Transfer a portion of state-owned capital to replenish social security funds (Decision 44): Strive to protecting labor income, ensure that labor remuneration increases in parallel with labor productivity increases, and improve decision mechanisms for regular salary increases 2013 (Decision 19): Establish systems in which responsibilities and expenditure match each other across all levels of government 2013 (Decision 6): Transfer a portion of state-owned capital to replenish social security funds; raise the proportion of income from state-owned capital that is turned over to public finance to 30% by 2020 Adopted the ad-valorem method in November 2011 when the resource tax pilot was extended nationwide

8 8 Linked Document 8 ADB Recommendation Background Information Government Action natural resource tax nationwide; increase natural resource taxation beyond 5% to serve as a steady source of local revenue (O&S No : Natural Resource Taxation in the PRC) natural resource depletion, and did not serve local revenue needs. Strengthen eco-compensation system for natural resources (O&S No : Reducing Inequality in the PRC through Fiscal Reforms) Improved eco-compensation is a key to realizing ecological civilization (Decision 53): Accelerate pricing reform of natural resources and their products, to completely reflect market supply and demand, the extent of resource scarcity, costs of ecological and environmental harm and the benefit of restoration ADB = Asian Development Bank, O&S = observations and suggestions, PRC = People s Republic of China, SOE = state-owned enterprise, VAT = value-added tax. Source: Asian Development Bank Independent Evaluation Department.

9 Value Addition from ADB Support 9 Table 5: Value Addition from the Private Sector Operations Department Nonsovereign Operations PSOD Value Addition Specific Value Added Projects Finance for multiple small PPP projects/ Demonstration of PPP projects Enhanced corporate governance Enhanced safeguards practices DVA cofinancing Financing specific to the global financial crisis Local currency financing Financing structure specifically developed by PSOD to support new decentralized PPP structures and contractual agreements implemented between municipal governments and the private sector sponsor, supporting PPPs that are too small to finance individually; replicated for multiple sponsors Requirements for increased transparency, documented approval or other procedures, specifically trained and/or dedicated staff to implement Compliance with substantive additional requirements due to ADB s policies, documented new procedures, specifically trained and/or dedicated staff to implement B Loans/Unfunded risk participations/partial credit guarantees (completed) a Provision of finance to provide support during times of constrained lending activities by financial institutions Provision of local currency loans and/or equity investments to mitigate currency risks (completed); b (Note: these financings also support the Panda and Dim Central and Western Airports Development Project Municipal District Energy Infrastructure (Dalkia) Inner Mongolia Wind Power (Datang Sino-Japan (Chifeng)) Small Hydropower Project (Sanchuan Clean Energy) CWAG Urban-Rural Integration Water Distribution Project CEBEIL Agricultural and Municipal Waste to Energy Songhua River Basin Water Pollution Control Songhua River Basin Water Pollution Control Dynagreen Waste to Energy Beijing Enterprises Water Group Wastewater Treatment and Reuse Rural Smart Wastewater Treatment (Beijing Sound Environmental Engineering) Dynagreen Waste to Energy Bank of Hangzhou (Phase 1) BEWG Wastewater Treatment and Reuse Energy Efficiency Multi-Project Financing Program HNA Airport Group Central and Western Airports Development Trade Finance Facilitation Program (Phase 1) Dynagreen Waste to Energy Municipal District Energy Infrastructure (Dalkia) Inner Mongolia Wind Power (Datang Sino-Japan

10 10 Linked Document 8 PSOD Value Addition Specific Value Added Projects Sum bond markets and highlight ADB s pioneering (Chifeng)) role in these markets as an CWAG Urban-Rural Integration Water Distribution early issuer). Project Songhua River Basin Water Pollution Control Songhua River Basin Water Pollution Control Bank of Hangzhou Banking sector reform Financing in central and western provinces Environmental sustainability Provision of finance and support for improved operations of a city commercial bank, supporting implementation new banking regulations Provision of finance to support development in the lessdeveloped PRC provinces Provision of finance to support development of practices contributing to clean air and water Bank of Hangzhou (Phase 1) Dynagreen Waste to Energy Inner Mongolia Wind Power (Datang Sino-Japan (Chifeng)) CWAG Urban-Rural Integration Water Distribution Project BSEE Rural Smart Wastewater Treatment Loan Program for Clean Bus Leasing HNA Airport Group Central and Western Airports Development (Phase 1) CGH Natural Gas for Land and River Transportation Project CEBEIL Agricultural and Municipal Waste to Energy Dynagreen Waste to Energy Municipal District Energy Infrastructure (Dalkia) Inner Mongolia Wind Power (Datang Sino-Japan (Chifeng)) CECIC HKE Wind Power Zhangbei Wind Power Sanchuan Small Hydropower Development (REG) Asia Environmental Partners II (REG) Climate Public-Private Partnership Fund Sino-Green Climate Investment Fund (REG) Clean Energy Private Equity Funds Energy Efficiency Mulit-Project Financing Program Songhua River Basin Water Pollution Control and

11 Value Addition from ADB Support 11 PSOD Value Addition Specific Value Added Projects Management Project (Phase 1) Songhua River Basin Water Pollution Control and Management Project CWAG Urban-Rural Integration Water Distribution Project BEWG Wastewater Treatment and Reuse BSEE Rural Smart Wastewater Treatment Le Gaga Holdings Greenhouse Agricultural Development Project Loan Program for Clean Bus Leasing BEWG = Beijing Enterprises Water Group, BSEE = Beijing Sound Environmental Engineering, CEBEIL = China Everbright Biomass Energy Investment, CECIC HKE = China Energy Conservation Investment Corporation, CEEEL = China Everbright Environmental Energy, CGH = China Gas Holdings, CWAG = China Water Affairs Group, DVA = direct value-added, HNA = Hainan Airlines Company, PPP = public-private partnership, PSOD = Private Sector Operations Department, REG = regional. a DVA cofinancing is recognized only when the funds have been committed to the approved financing by the third party cofinancier (generally international financial institutions). Only those approvals that have achieved DVA cofinancing are included in the table. b Not all approvals intended to offer local currency financing provided the local currency financing either because (i) the financing was agreed to be in US dollars, (ii) the local currency was not available, or (iii) the approved transaction was delayed or cancelled. Only those approvals that have achieved local currency financing are in the table. Source: Asian Development Bank Independent Evaluation Department.