DUTCH DEVELOPMENT COOPERATION WITH CHINA

Dutch bilateral assistance differentiates between two different sets of countries: countries which qualify for a structural development cooperation relationship and countries which qualify for assistance from one of the thematic programmes: good governance and human rights, environment and private sector. The Netherlands does not have a structural bilateral development cooperation programme in China, but China qualifies for assistance from each of the three thematic programmes. For Dutch bilateral development cooperation activities full authority has been delegated to the embassies. The embassy is responsible for the whole project cycle from identification, formulation, approval to implementation.

Good governance and human rights
The good governance programme with China started in 2000. The budget available for 2001 is NLG 1.25 million. The focus of the cooperation is on assisting China with the promotion of the rule of law. In particular attention will be given to (i) reducing the gap between laws and regulations as promulgated and the implementation of these laws and regulations; (ii) improve the legal apparatus; (iii) stimulate the development of a legal culture; (iv) development of administrative law; and (v) reform of criminal law; professionalize judges, prosecutors and lawyers. Sofar one activity has been approved: training of judges with the National Judges College.

Dutch programme on legal co-operation

Environment
The environmental programme started in 1998 with the Forest Conservation and Community Development project in Yunnan. For 2001 an amount of NLG 15 million is available for environmental projects. The programme assists China with the implementation of the UN Convention on Biodiversity and the UN Convention on Climate Change. Support to wetlands activities is now under consideration. Activities in support of the implementation of the Climate Convention focus on CO2 mitigation through improving energy efficiency as well as stimulating the introduction of clean production technologies in small scale and medium enterprises. It includes activities directed at capacity building .

Public sector programme
The public sector programme (ORET or development related export transactions) is a mixed financing programme combining a development cooperation grant with commercial financing. The ORET-programme enables developing countries to buy Dutch goods and services at an attractive price as well as assisting Dutch companies to get access to markets in developing countries and participate in projects aimed at stimulating economic development in the recipient country For China an amount of NLG 500 million of tied grant funding is available under the ORET-programme for the period 1995-2002. For each transaction 35% will be financed by an ORET-grant and the remaining 65% has to be financed by commercial loan. There are no sectoral limitations for ORET but the Dutch supplier has to ensure that 60% of the transaction is of Dutch origin. Transactions have to fit into the Chinese priorities as defined by the Ministry of Finance and the State Development and Planning Commission.

Small activities Fund
The embassy has an amount of NLG 110,000 available on an annual basis to fund small scale poverty alleviation activities through local organisations and NGO’s

Dutch Development Cooperation Disbursements in China

The level of Dutch development cooperation funding in China over the past two years has been as follows. Total disbursements (all grant funding) for the regular bilateral development cooperation programme were:
1999     NLG 18.908 million (USD 9.156 million)
2000     NLG 19.482 million (USD 8.146 million)

The majority of these disbursements was made for activities in the environmental sector in support of the implementation of the UN Conventions on Biodiversity and Climate Change, respectively NLG 13.799 million (USD 6.682 million) in 1999 and NLG 12.693 million (USD 5.307 million) in 2000. It is not possible to make a distinction between technical assistance and other expenditure. All Dutch assistance is in the form of grants and is used to fund a mix of foreign and local consultancies, equipment and local expenditures, which will vary per project.

In addition to our regular bilateral programme the following amounts were disbursed for development related export activities. These activities are financed by a mix of development cooperation grants and commercial loans. The figures presented here only cover the grant element and not the total transaction value of these activities.

In addition to our regular bilateral programme the following amounts were disbursed for development related export activities. These activities are financed by a mix of development cooperation grants and commercial loans. The figures presented here only cover the grant element and not the total transaction value of these activities.
1999     NLG 67.851 million (USD 32.856 million)
2000     NLG 52.485 million (USD 21.946 million)

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