Projects

Project Information

Tianjin Wastewater Treatment and Water Resources Protection

Borrower

The People's Republic of China (PRC)

Project Description

The Project will help to reduce pollution; protect water resources; and improve the environment, living conditions, and public health standards in Tianjin's urban areas. The Project has two parts. Part A consists of wastewater collection and treatment, including construction of sewer mains and pump stations connected to a treatment plant in the Beicang area. Part B consists of protecting Tianjin's sole raw water supply, including the watershed of the Yuqiao Reservoir; a dedicated 34-kilometer closed conduit downstream to avoid the pollution in the passage through the Zhou River; and improvements to the existing open channel further downstream.

Cost Estimates

The total project cost is $340.7 million equivalent, including a foreign exchange cost of $169.2 million (49 percent) and a local currency cost of $171.5 million equivalent (51 percent).

Executing Agency

Tianjin Municipal Government

Loan Terms

The loan will be repaid in a period of 15 years including a 3 year grace period. The interest rate will be determined according to ADB's pool-based variable lending rate system for US dollar loans. The standard commitment charge of 0.75 percent per annum will be applied. A front-end fee will be payable in an amount equivalent to 1 percent of the amount of the loan, and will be capitalized in the loan.

Executing Agencies

Tianjin Municipal Government

Procurement

ADB-financed equipment and materials will be procured in accordance with ADB's Guidelines for Procurement. Major contracts for equipment and materials will be tendered through international competitive bidding or international shopping procedures, depending on the contract amount. In accordance with ADB requirements, foreign contractors may participate in the bidding for local competitive bidding contracts.

Consulting Services & Technical Support

About 65 person-months of international and 130 person-months of domestic consulting will be required, with expertise in international competitive bidding and international shopping procedures, including international specifications, bid evaluation, contracts, quality control, and project performance management systems. The consultants will provide guidance and training for capacity building to ensure that (i) the two Implementing Agencies are able to function as effective project management units; (ii) appropriate institutional, managerial, financial, and operational arrangements are in place to enhance operational effectiveness, management efficiency, and financial sustainability; (iii) the Implementation Agencies are converted from construction into operating companies upon completion of implementation; and (iv) social, resettlement, and environmental impacts are monitored. Consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants. Detailed design engineering and construction supervision will be carried out by qualified local design institutes recruited by TMDPC; these services will not be financed by ADB.

Estimated Date of Completion

31 December 2005