Manila, Philippines (BBN)- - The Asian Development Bank (ADB) is providing a $150 million loan to China to help develop three gateway cities in southwest Guangxi Zhuang Autonomous Region.
The ADB Board of Directors approved the Guangxi Southwestern Cities Development Project which will build roads and other urban infrastructure in the cities of Fangchenggang, Chongzuo, and Baise, an ADB announcement said on Tuesday.
The three urban centers are located at key points of an extensive regional transport network which links neighboring landlocked provinces with deepwater seaports. It also provides gateways to Viet Nam and other countries in the Greater Mekong Subregion (GMS).
“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,” Fei Yue, Principal Urban Development Specialist in ADB’s East Asia Department said in the announcement..
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.
It will make up 50 percent of the total project cost of just over $299 million. Counterpart funding of $73.48 million will come from the municipal governments of Fangchenggang, Chongzuo and Baise, and loans of $75.5 million from domestic banks.
The government of Guangxi Zhuang Autonomous Region is the executing agency for the project, which is expected to be completed by June 2015.
BBN/SSR/SI/AD-27JUly10-2:38 pm (BST)
