"It is the same amount of money. The difference is both public and private sectors can compete for its management and the one with higher efficiency gets the bid."

The partnership will improve transparency and thus reduce corruption, Kang said.

For NGOs, the opportunity to work with the government and use its funds presents an opportunity to broaden their scope, particularly when most of the NGOs in China remain highly reliant on international funding.

"This project comes at a time when China is embarking on a balanced, science-based and people-centered development towards a harmonious society," said Christopher Spohr, an ADB social sector economist based in Beijing.

"It links directly to calls for expanding the role of nongovernmental players in rural development under a recent key Chinese government directive and also to efforts to expand the role of farmer associations."

The Jiangxi initiative will receive 11 million yuan (US$1.3 million) in funding and will be carried out by the LGOP and its Jiangxi counterparts.

The project is supported under an ADB technical assistance scheme. The China Foundation for Poverty Alleviation, a leading NGO active in poverty reduction, will be the implementing agency for the pilot test component.

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