Announcement of China Modernizes Key Industries in Tianjin on February 23, 1989

FOR IMMEDIATE RELEASE lWorld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 89/34 Contact: Richard Kollodge (202) 477-4507 CHINA MODERNIZES KEY INDUSTRIES IN TIANJIN WASHINGTON, February 23, 1989 -- A major industrial region of China is moving ahead with a project designed to modernize several important industries. The World Bank is supporting the project with a $154 million loan. The project will channel funds through the China Investment Bank to enterprises in Tianjin's textile, paper and packaging industries to help them modernize production facilities. Technical assistance will also be provided to strengthen educational institutions, including research, design and vocational training schools that support the region's industrial development and to streamline enterprise- management systems and procedures. The project is expected to speed up market-oriented industrial reforms under way in Tianjin that are aimed at developing light industries in the region. The reforms and the modernization of key industries will result in the production of better quality products, more cost-efficient operations and higher export earnings for the country. Industry accounts for almost half of China's gross domestic product and employs more than 83 million workers. Tianjin, China's third largest city, is home to many of the country's more important industries. The World Bank loan is for 20 years, including a five-year grace period, with a variable interest rate, currently 7.65 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on the undisbursed balance. NOTE: Money figures are expressed in U.S. dollar equivalents.