CHINA INVEST. BANK I

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The Industrial Credit Project supports the establishment of a new institution, the China Investment Bank (CIB), which will provide investment loans for small- and medium-size light industrial projects needing foreign exchange. The project is part of the ongoing economic reforms in China. The objective will be to help raise investment efficiency through import of technology and the introduction of improved project design and selection methodology. Subborrowers will be state enterprises primarily in Shanghai, Tianjin and Jiangsu. The main project risks relate to the capacity of CIB, which is a new institution, to develop and implement suitable subproject selection, appraisal and supervision procedures and standards, and to the need for continued Government commitment to the process of economic reform. The project provides for training and technical assistance for CIB, and the process of economic reform in expected to continue.