OREANDA-NEWS. Asian Development Bank (ADB) President Takehiko Nakao today met Premier Li Keqiang of the People’s Republic of China and discussed deepening the partnership between ADB and the PRC. During his two day visit to Beijing, Mr. Nakao also participated in the China Development Forum and held a bilateral meeting with Finance Minister Lou Jiwei.

“I am committed to continue working closely with the PRC to help address its development challenges,” Mr. Nakao said. “At the same time, I welcome the PRC government’s intention to deepen the partnership with ADB.’’

At the invitation of the National Economic and Reform Commission (NDRC), ADB has conducted a series of in-depth studies, making recommendations for the PRC’s 13th Five Year Plan, currently under preparation. These studies address challenges such as industrial transformation, balanced rural urban development, human resource transformation, water security, further integration with the global economy as well as public finance reform. In January 2014, ADB signed a Memorandum of Understanding with the Ministry of Environmental Protection and another one with the NDRC, to collaborate closely on environmental protection and climate change, respectively.

On 22 March, at the China Development Forum, a high profile international gathering of officials and business leaders, Mr. Nakao spoke about public finance reform under the “new normal.” He specifically discussed the importance of providing local governments with resources to meet the increased demand for infrastructure and social services.

“Advancing urbanization requires substantial investment in infrastructure to accommodate the increasing number of urban residents -- this will pose a significant challenge,” said Mr. Nakao. “Yet, rapid urbanization provides China a great opportunity to become a world model in developing clean, green and livable cities.” Mr. Nakao recommended strengthening local finance by: (i) bolstering fiscal transfers from the central government to local authorities, especially through general purpose transfers; (ii) designing tax solutions such as property tax and “green’’ tax; and (iii) developing a municipal bond market.

Since 1986, ADB has provided \$29.4 billion in loans to the PRC on the sovereign side, and \$5.1 billion loans/investment through its private sector window. As a knowledge partner, ADB has provided \$447 million in technical assistance. In recent years, ADB’s support has focused on addressing environmental issues, promoting renewable energy and energy efficiency and enhancing rural and urban water management.

So far the PRC has contributed \$110 million to the Asian Development Fund (ADB’s concessional lending and grant window for supporting poorest countries), and established the People's Republic of China Poverty Reduction and Regional Cooperation Fund in ADB, with a contribution of \$40 million. This fund was the first ever established by the PRC in a multilateral development bank.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region.