The Asian Development Bank (ADB) and Jointown Pharmaceutical Group Co., Ltd. (Jointown) signed an agreement of up to €30 million ($37 million) to expand pharmaceutical distribution facilities in the People’s Republic of China (PRC).
Director General of ADB’s Private Sector Operations Department Suzanne Gaboury, said: “This financing will help Jointown to expand its distribution capacity of medical supplies and medicines to hospitals and retail pharmacy outlets in underserved areas of the PRC. It will contribute to the PRC’s pharmaceutical surge capacity to further strengthen resilience to a future potential pandemic.”
The loan will support the construction and expansion of Jointown facilities in Haikou, Hainan Province; Tangshan, Hebei Province; and Nanjing, Jiangsu Province. These pharmaceutical distribution facilities will include cold chain warehouses for temperature-sensitive pharmaceutical products, including vaccines.
Deutsche Investitions und Entwicklungsgesellschaft mbH (DEG) will cofinance the project with an additional €30 million.
Jointown Vice Chairman Liu Zhaonian, said: “We are very grateful to ADB and DEG for supporting Jointown’s effort to strengthen our distribution network,” said. “With the loan facilities, we will be able to reach out to the broader population, including in the second and third-tier cities and rural areas with essential medicines and medical supplies.”
During the COVID-19 outbreak in early 2020, Jointown was designated by the Hubei provincial government to procure and distribute drugs and medical supplies. In February 2020, ADB provided an emergency loan of CNY130 million ($18.6 million) to Jointown to support its efforts to ensure a continued supply of essential medicines and personal protective equipment.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
It assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development.