People's Republic of China Poverty Reduction and Regional Cooperation Fund

The People’s Republic of China Poverty Reduction and Regional Cooperation Fund (PRCF) supports the process of poverty reduction, regional cooperation, and knowledge sharing for ADB developing member countries (DMCs) in Asia and the Pacific. The fund aims to contribute to poverty reduction, regional cooperation, knowledge sharing, and economic and social development in DMCs in an accelerated manner and with tangible results.

In 2023, the PRCF committed to support technical assistance (TA) projects that aim to strengthen knowledge sharing among DMCs while leveraging the experience of the People’s Republic of China (PRC) in achieving rapid economic growth and develop local currency financing in the ASEAN+3. The PRC committed $750,000 for the Strengthening the Regional Knowledge Sharing Initiative, which aims to deepen and widen south–south knowledge sharing, particularly in promoting development knowledge among ADB’s DMCs, while leveraging PRC’s experience in achieving rapid economic growth in the past 40 years. The fund also committed $750,000 for the Strengthening Ecosystem for Sustainable Finance Development in ASEAN+3, to develop and strengthen an ecosystem necessary to develop sustainable local currency financing in the region. The technical assistance is designed to increase the supply of sustainable finance products, which include but are not limited to green, blue, social, sustainability, and sustainability-linked bonds and loans.

The PRCF participated in the Asia-Pacific Green and Low-Carbon Forum held in October 2023 by supporting a session hosted by the ADB–PRC Regional Knowledge Sharing Initiative. An in-depth exchange on future cooperation between representatives from ADB and the PRC Ministry of Finance was held after the forum.

The PRCF also supported the Water Supply Scheme for Tete Settlement Project, which constructed a piped water system connecting the settlement to Port Moresby’s water supply. The informal settlement is home to about 5,000–7,000 people in over 500 households who had to walk vast distances to collect water for over 10 years before the formal commissioning of the water supply system in February 2023.

With support from the PRCF, capacity development initiatives were held in the People‘s Republic of China. The Sustainable, Inclusive, and Resilient Tourism Recovery and Development in Asia and the Pacific called for greater product and market diversification, digital acceleration, improved collaboration and coordination among stakeholders, and better understanding of sustainability principles in tourism. The Regional Knowledge Workshop on Port Greening and Decarbonization stressed the importance of identifying quick wins to build momentum and identified three critical elements that countries should share to support green port development: information, technology, and finance.