According to the Rural China Poverty Reduction and Development Program (2001-2010), "effective measures and actions should be taken to lead NGOs to participate in or carry out governmental projects for poverty reduction." To operationalize this agenda, the State Council Leading Group Office of Poverty Alleviation and Development (LGOP), the Ministry of Finance (MOF), the ADB, the Jiangxi Poverty Alleviation and Development Office (PADO) and CFPA have agreed to carry out an NGO-Government Partnership in Village-level Poverty Alleviation project in Jiangxi Province.

In January 2005, LGOP, MOF and ADB1 signed the memorandum of understanding on technical assistance to the People's Republic of China on NGO-Government Partnership in Village-level Poverty Alleviation. In April, the execution document of this project won approval from the ADB headquarters, which means that the project began its implementation.