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Description |
CENTRAL AND WESTERN AIRPORTS DEVELOPMENT PROJECT |
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Objectives and Scope |
The Project will serve as an important catalyst for the overall economic growth of the less-developed central and western regions in the PRC. Through assistance to HAG in increasing airport capacity and improving airport efficiency in the central and western PRC, the Project will directly benefit people in the area by (i) providing direct access to and from markets located in the relatively developed coastal regions of the PRC and in other countries, (ii) improving aviation safety and service, (iii) reducing the cost and duration of long-distance travel, and (iv) creating more employment demand and opportunities. The Project also aims to ease financial constraints faced by provincial/municipal governments by mobilizing private sector funding for airport development and support the economic growth in central and western PRC. |
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Linkage to Country/Regional Strategy |
While ADB does not have a sector policy covering transportation, civil aviation or airports, the Project targets investment needs in the PRC's less developed regions, which are the focal areas of ADB's operations, in accordance with the country strategy and the Government's expectations with respect to ADB's operations. ADB recognizes that transportation is an operational priority and that the economic growth of many developing member countries remains hobbled by inadequate and substandard transportation infrastructure. ADB's transport intervention plays a pivotal role in achieving developmental impact targets by making its assistance more relevant to sector needs, responsive to client requirements, and flexible in implentation. |
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Status of Development Objectives |
HAG is still open to acquire other airports and is in process to streamline operations and improve operating efficiency and profitability of its portfolio of airports. ADB has been assisting HAG in enhancing its corporate governance and environmental and management system to enhance confidence in the sector. Airport acquisition was halted as an offshoot of CAAC head's opposition to further privatization of government-owned airports. |
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Material Changes |
N/A |
