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Lenders lighten the load

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BIG multilateral lenders such as the Asian Development Bank (ADB) are important sources of capital for China.

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ADB project manager Bruce Murray said the bank's strategy recognised that energy shortages and transport and communications bottlenecks were major constraints for China's economic growth.

As at the middle of August, the ADB had lent about US$17.5 billion to China, the majority of it in technical assistance to road, power and rail projects.

Of the $16.7 billion in technical assistance, $5 billion went to road and road transport, $4.9 billion to power projects, $4 billion to rail projects, $1.5 billion to ports projects, and $1 billion to the telecommunications sectors.

Straight out loans totalled $1.5 billion.

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Over the next four years, about 60 per cent of the ADB's lending to China would be in physical infrastructure, Mr Murray said.

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