Chengdu, May 12, 2006
—The International Finance Corporation today launched the second five year cycle of its Technical Assistance and Advisory Services program for China. IFC Executive Vice President Lars Thunell and a senior representative from the Sichuan will marked the occasion. IFC will extend successful experiences from its first five years of operation in Sichuan to other less advanced regions in China and continue to innovate in addressing key development issues.
The program, initially called the China Project Development Facility, will be renamed the Private Enterprise Partnership for China, or PEP-China, in line with IFC programs in other parts of the world.
CPDF was established in 2001 in Chengdu as a multi-donor facility managed by IFC, to support small and medium enterprise development in Sichuan. The IFC Board recently approved a $12 million contribution to extend and expand the scale of its operations, with aiming to contribute to sustainable private sector development across China, especially in less developed Western regions.
Other donors are also supporting the operations of PEP-China. The Department for International Development of the United Kingdom has approved a $3 million contribution. The Ministry of Trade and Industry of Finland and the Global Environment Facility are providing over $8 million to an ambitious energy efficiency program to support related investments by small and medium enterprises.
“We want to build on the successes of the first phase of our technical assistance and advisory program to extend its scope and impact. Technical assistance is an integral part of IFC’s strategy to promote sustainable private sector development,” said Mr. Lars Thunell.
“Our program has achieved many important results in its first five years, such as helping improve the institutional framework for small and medium enterprise finance and creating critically needed management tools for smaller businesses,” said PEP-China General Manager Mario Fischel. “We hope that in its second phase, PEP-China will build on these achievements to help China achieve more sustainable private sector development in its less-developed regions.”
PEP-China
In its next five year cycle, from July 1, 2006, through June 30, 2011, PEP-China will focus on extending successful experiences from its first five years of operation in Sichuan to other less-advanced regions; and continue to develop innovative ways to address key development issues facing China. It will act as a platform for delivery of all relevant IFC and World Bank Group services needed in China. PEP-China will focus on four main business lines: improving access to finance for underprivileged groups, in particular micro, small and medium size enterprises; helping improve the sustainability performance of China’s private sector; further strengthening the investment climate in specific sectors and regions; and building management skills for China’s emerging SME sector.
International Finance Corporation
IFC is the private sector arm of the World Bank Group. Its mission is to promote sustainable private sector investment in emerging economies, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in emerging economies, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. Technical assistance and advisory services is a core part of IFC’s strategy and has been growing rapidly in recent years, reflecting its importance in achieving IFC’s development goals. For more information, visit
www.ifc.org
.
