Economy

ADB extends loan to finance projects in China

(Xinhua)
Updated: 2010-07-27 17:43

MANILA - The Asian Development Bank (ADB) is extending a $150 million loan to the People's Republic of China to develop three gateway cities in the Guangxi Zhuang autonomous region.

In a statement issued Tuesday, the ADB said the loan will be used to build roads and other urban infrastructure in the cities of Fangchenggang, Chongzuo, and Baise. The three key urban centers are located at the southwestern part of China and serve as gateway to Vietnam and other countries in the Greater Mekong Subregion (GMS). ?

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The loan will be coursed through the Guangxi Southwestern Cities Development Project. The Government of Guangxi Zhuang autonomous region is the executing agency for the project, which is expected to be completed by June 2015.

"The project is part of the national government's strategy to cut poverty and promote inclusive growth in less developed western parts of the country. It also supports ongoing ADB efforts to convert GMS transport corridors into full-fledged economic corridors, providing increased trade and development opportunities, " said Fei Yue, Principal Urban Development Specialist in ADB's East Asia Department.

ADB's loan from ordinary capital resources has a 25-year term, with a grace period of five years, and an interest rate determined in accordance with ADB's LIBOR-based lending facility.