MOU On Proposed Loan Signed By ADB And Xinyu, China
March 10, 2015
A Memorandum of Understanding (MOU) on a proposed loan for the “Jiangxi Xinyu Kongmu River Flood Control and Environmental Management Project,” was signed between ADB and the Xinyu Municipal Government on 6 March. This project was screened by CDIA through CIIPP and was given PFS assistance in 2012. After 2 years of joint efforts with Xinyu, and CDIA engaging with stakeholders, the proposed loan for this project is now included in ADB’s lending program as a 2016 standby loan.
Before CDIA’s intervention, Xinyu was looking for funds to connect nine natural lakes for their new district, which was a simple landscaping project. With CDIA’s inputs, however, it became a sustainable flood management infrastructure investment for the whole city with multiple functions, including flood control (including structural and non-structural flood management measures), climate change adaptation, storm water quality management, and comes with an international standard public amenity function. According to Xinyu City partners “All the new ideas in the PFS made the project itself much more attractive and comprehensive, which makes the city sustainable and resilient.”
The project estimated cost is about US$ 306 million, of which ADB is requested to finance US$ 150 million (49%) of the total project cost; and Xinyang will contribute the balance of US$156 million (51%).