CHINA INVEST.BK.II

closed

Closed

The Second Industrial Credit Project furthers the development of CIB, which provides investment loans for small- and medium-size industrial projects needing foreign exchange. 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 some 60-80 state and collective enterprises primarily in coastal provinces and municipalities. Based on the experience under CIB I, the investments are expected to have high financial and economic returns. The main project risks relate to the capacity of CIB, which is a young institution, to strengthen its appraisal standards, especially in the technical, economic and marketing areas, and to the need for continued government commitment to CIB within the process of economic reform. However, the project provides for recruitment of additional technical and economic staff, plus training and marketing consultancy for CIB's ability to identify and evaluate projects. Furthermore, the Government's commitment to economic reforms and to CIB remain firm.

World Bank Group

Project

Manufacturing (Industrial), Government