CHINA> Int'l Aid to Quake Zone
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France provides loans for post-quake reconstruction in China's Sichuan
(Xinhua)
Updated: 2009-04-25 09:45 WASHINGTON -- Chinese and French officials on Friday signed two agreements on utilizing French loans to support the post-earthquake restoration and reconstruction projects in China's Sichuan Province and a railway electrification project in southern China. Li Yong, vice minister of finance of China, and Jean-Michel Severino, chief executive officer of the French Development Agency (AFD), signed the two Credit Facility Agreements of loans amounting to about $300 million at the World Bank. According to the State Overall Plan for the Post-Wenchuan Earthquake Restoration and Reconstruction, a 200-million-dollar AFD loan, with 20-year maturity including a 7-year grace period, will be mainly used for reconstructing municipal infrastructures in six worst-hit counties and districts and rebuilding rural domestic biogas units in twelve counties and districts in Sichuan Province. The region in southwest China was hit by a devastating earthquake on May 12, 2008, which claimed tens of thousands of lives and displaced millions of people. The project will play a positive role in restoring production and living order, as well as in improving infrastructure of the benefited areas. Besides, the AFD will provide a loan up to 80 million euros ( approximately $100 million) to support the Xiang-Gui railway electrification project, which will be implemented by the Ministry of Railways of China. The Finance Ministry of China and the AFD initiated their cooperation in the year of 2003 and signed the Framework Agreement in October 2004. According to the Framework Agreement, the AFD will provide to China untied loans amounting to 120-150 million euros every year, which are mainly to be used for projects aiming to improve global atmosphere environment. Up to now, ten projects have been implemented, with a total amount of 552 million euros. |
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