Study On ADB Financed Road Project Administration In Yunnan Province

In the past two decades, the Asian Development Bank (ADB) has provided a great deal of loan and grant funds which ranked second in terms of accumulated amount in China, this greatly made up insufficiency of the public investment in Yunnan Province. Since the first ADB-financed road project implementation in the Yunnan Province, the systems of employer legal person, the third-party supervision and competitive bidding procedure have been introduced into the transport sector reform, which provided policy advice and intellectual support to the government. However, the advanced technology and best international practices were not extended due to systematical and cultural difference between international and domestic administration practices as well as the block up of interest group, which resulted in a standstill of administration system reform, unsuccessful efficiency promotion and waste of resources. The ADB takes a full range of guidance and supervision in loans and grants throughout project implementation, positive reference would comes from the best practice of the ADB-financed project implementation which would benefit the domestic project implementation in terms of administration system reform.First of all, this paper discussed the theory of transaction costs, equity theory and principal-agent theory, introduced categories and characteristics of the ADB loan and the result-based project performance monitoring system, studied six ADB-financed road projects in Yunnan Province in aspects of bidding procedure, contract management, social safeguard and PPME, and etc. the paper also summarized main reasons for good performance such as international and domestic management conflicts, nominal project legal representative system, rapid turnover of staff and insufficient training and etc. finally proposed policy suggestions in improving project management law, regulation, administration, supervision, market and other aspects.