Advance Action on Procurement and Retroactive Financing

Country/Borrower: People's Republic of China

Title of Proposed Project: Wuhan Urban Environmental Improvement Project

Name and address of the Executing Agency

Wuhan Urban Construction Utilization of Foreign Investment Project
Management OfficeNo. 40, Chang Qing Road, Wuhan,
Hubei, PRC (P.C. 430030)
Fax No.: +8627 6565 5354
Tel No.: +8627 8588 8940
Email: wangli5827@yahoo.com.cn
Contacts: Mr. Zhang Hanhua, Director
                Ms. Wang Li, Section Chief
Brief description of project:

The Project consists of four components: (i) sludge treatment and disposal, (ii) Wuhan new zone lakes/channels rehabilitation and pumping station, (iii) Yangchun lake secondary urban center lake/channel rehabilitation, and (iv) capacity development and project management.

The Project is a key urban environmental initiative of the Wuhan Municipal Government (WMG) with nationwide demonstration potential. The Project will help WMG to (i) design and implement sustainable solutions for the management of wastewater treatment plant (WWTP) sludge, including its energy recovery and reuse of biosolids; (ii) improve water quality in urban lakes and water channels; (iii) reestablish water circulation and improve resilience to flood; (iv) improve the environment, living conditions, and public health standards; and (v) enhance public awareness of urban environmental and related public health issues.

The Project will include four components and 19 subcomponents:

(a) Integrated Sludge Treatment and Disposal Component will provide facilities able to treat sludge produced by six of Wuhan's WWTPs, reducing half of Wuhan's daily sludge volume required for disposal by two-thirds (from 313 m3 to 102 m3). The Sanjintan WWTP Biogas Utilization and Sludge Drying Plant will support the biogas utilization from Sanjintan WWTP sludge digestion to dry its own sludge and the sludge of other WWTPs. The dried sludge will be sent to the nearby Fertilizer Plant for soil conditioner beneficial utilization. The existing WWTP units include the anaerobic digestion facility commissioned in August 2009. The sludge design treatment capacity is 100 tons/day. The Tangxunhu WWTP Sludge Drying Plant will support the sludge drying facility of 200 tons/day capacity for two WWTPs. After the extension of the nearby Baoxie WWTP, its raw sludge will also be treated by the sludge facility. The sludge will be disposed of as fill-in construction material, for soil remediation, or as soil conditioner. The steam for sludge drying will be supplied by the nearby Gaoxin Heat Power Plant. The Nantaizihu WWTP Sludge Lime Stabilization Plant will support the sludge lime stabilization facility with the treatment capacity of 50 tons/day. The stabilized sludge will be utilized for the Tang Mountain soil remediation or as a building material. The Project will modify and improve existing sludge treatment in the related WWTPs to meet the needs of the project and the respective requirements of the Drainage Company. The project will also provide sludge transportation trucks and laboratory instruments to monitor and analyze the quality of dried sludge. In case of noncompliance, the sludge will be sent to the landfill.

(b) Wuhan New Zone Lakes/Channels Rehabilitation Component includes: (i) Longyang Lake Rehabilitation includes sediment dredging, wetland park, artificial wetland, aquatic plant, and Tang Mountain rehabilitation; (ii) Moshui Lake Rehabilitation includes sediment dredging, artificial wetland ecological project, and aquatic plants; (iii) Nantaizi Lake Rehabilitation includes sediment dredging, artificial wetlands, aquatic plants, and biological buffer area; (iv) rehabilitation of six water channels including dredging, slope protection, greening, and provision of gates to control flows; and (v) Sixin pumping station with the initial capacity of 35 cubic meters per second (m3/s) will control the water flood in Hanyang area.

(c) Yangchun Lake Secondary Urban Center Lake/Channel Rehabilitation Component includes: (i) Yangchun Lake rehabilitation component includes recovery of 64 hectares (ha) lake surface, ecological treatment, greening, construction of storm water treatment system, and 18 ha of artificial wetland; and (ii) Heping water channels will also be rehabilitated including dredging, slope protection, greening, and provision of gates to control flows.

(d) Institutional Strengthening and Capacity Building Component includes 42 person-months of international and 164 person-months of national consulting services, grouped into three packages (i) project implementation management consulting services, (ii) wastewater operation and maintenance improvement and sludge treatment support, and (iii) surface water management study and public awareness to support the WPMO and the IA in project implementation and for capacity development of other key stakeholders.

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

ADB has approved the WMG's request for advance contracting, which includes recruitment of consulting services and procurement of goods and civil works and retroactive financing to cover eligible expenditures not exceeding $10 million, which equals 10% 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) awarding 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 procurement actions will be undertaken in accordance with ADB's Procurement Guidelines or Guidelines on the Use of Consultants.

Date of Advance Contracting and Retroactive Financing Approval: 15 December 2009