The Asian Development Bank has approved its first loan to China to boost the country's industrial sector. The loan is worth $100 million.
China's industrial sector has grown more than 10 percent a year over the past three decades. But it is plagued with problems such as low productivity, outmoded technology, obsolete design of many products and inefficient consumption of energy and raw materials. China's seventh five-year plan gives priority to modernizing industry by upgrading technology.
ADB's loan will benefit about 80 projects, primarily in the eastern region. It will finance imports of machinery and equipment for small and medium-sized industrial enterprises.
The loan is scheduled to be disbursed within four years from the date of loan effectiveness.
ADB also has approved a technical assistance grant to the China Investment Bank that is intended to help it develop into a model financial institution. The grant will be used to pay for consultants with expertise in project supervision, evaluation and financial management.
The grant is financed by the United Nations Development Program and is administered by the bank.
ADB also has approved a $5.75 million loan to Vanuatu, a small South Pacific island west of Fiji, to provide a new earthquake-resistant wharf at Santo Port for overseas ships.
The docks at Santo Port, which handles 75 percent of all copra exports, have been severely damaged by earthquakes.
ADB's grant will be used to build an earthquake-resistant wharf and provide consulting services. A better wharf should reduce ship service time and keep cargo damage to a minimum.
The total project cost is $7.18 million.