Advance Action on Procurement and Retroactive Financing

Country/Borrower: People's Republic of China

Title of Proposed Project: Chongqing Urban-Rural Infrastructure Development Demonstration Project

Name and address of the Executing Agency

Chongqing Municipal Government
Room 301, Jianfa Plaza No. 16 Honghuxi Road, Yube District Chongqing, PRC 401121
Tel: +8623 6757 5733
Fax: +8623 6757 5730
Email: liangp023@163.com
Contact: Mr. Liang Ping, Director, Foreign Fund Utilization, Chongqing Municipal DRC
Brief description of project:

The Project is a pioneering urban-rural infrastructure development initiative of the Chongqing municipal government (CMG), which furthers CMG's commitment to reduce economic and social inequalities between its urban and rural areas. The Project provides new and improved rural roads and potable water supply systems to eight poverty districts/counties of Chongqing municipality, enhancing economic, public health, and environmental conditions for about 377,000 people. This will be achieved through physical and nonphysical investments in priority basic road infrastructure and capacity building support. The Project includes three components, (i) rural road construction and rehabilitation; (ii) water supply systems to boost service coverage, quality, and reliability; and (iii) project implementation support and targeted capacity building for the Project's implementing entities on district and county-level governments.

The Project targets the poorer rural areas of Chongqing municipality, areas which have low per capita gross domestic product and suffer from poor infrastructure provision, primarily due to their relative remoteness, terrain difficulties, and either lack of water sources or lack of ability to harness them. Water supply and rural roads represent crucial infrastructure for these communities, and are intricately linked; the Project's demonstration strength is to address water scarcity and water management while ensuring that selected areas are supported by road accessibility. By providing new and improved rural roads and water supply infrastructure, the Project supports CMG's targeting of poverty-stricken and minority nationality counties, prioritizing production and improving living standards of communities in these outlying areas.

The Project outputs are: (i) improved road accessibility and conditions in the eight poverty districts/counties; (ii) enhanced water supply services in five poverty counties; and (iii) increased capacity building of the executing agency (EA), the implementing agencies (IAs), and the implementing units (IUs). The Project will have 21 road sub-components and 9 water supply sub-components. The Project includes institutional capacity building measures to ensure effective and smooth implementation and sustainable O&M of Project facilities. The capacity building component includes consulting services on project management and other training for the EA, CPMO, PMOs, district/county agencies, and IAs during loan implementation. The Project implementation consultants shall assist the EA to manage the Project, which covers a wide range of sub-components, and provide targeted assistance to the other agencies.

Brief Description of Goods and Related Services, Works or Consulting Services to be Procured:

ADB has approved the CMG's requests for advance contracting, which includes recruitment of consulting services, procurement of goods and civil works; and retroactive financing to cover eligible expenditures related to the subcomponents Youyang and Qinajiang not exceeding $20 million, which equals 20% of the loan amount, incurred before loan effectiveness, but not earlier than 12 months before signing of the Loan Agreement, in order to expedite project implementation. Advance contracting will include (i) prequalification of contractors, tendering, and bid evaluation for civil works contract packages; (ii) preparation of tender documents for the procurement of materials and equipment; (iii) award of contracts; and (iv) recruitment of consultants. The issuance of invitations to bid under advance procurement action will be subject to ADB approval. All advance actions will be undertaken in accordance with ADB's Procurement Guidelines or Guidelines on the Use of Consultants by Asian Development Bank and Its Borrowers.

Date of Advance Contracting and Retroactive Financing Approval: 12 January 2010