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China,People'sRep.of
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LOAN: PRC 38660-02
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Ningxia Integrated Ecosystem and Agricultural Development Project
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Location
The project area lies in and around the oasis of Yinchuan Plain, including the piedmont zone and the Helan mountains, and covers about 3,655 km2 including three districts (Jinfeng, Xingqing, and Xixia), two counties (Helan and Yongning), and Yinchuan City
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Sector
Agriculture & Natural Resources /Environment & Biodiversity
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Initial Listing
18 April 2005
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Most Recent Update
12 September 2008
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Executing Agency(ies)
Ningxia Department of Finance
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- Missions
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| TA Fact-Finding |
Loan Fact-Finding |
Pre-Appraisal |
Appraisal |
| 28 Feb-18 Mar 2005 |
20 Nov-6 Dec 2006 |
TBD |
15-27 Apr 2007 |
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Loan Approval Date
29 August 2008
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Estimated Completion Date
October 2014
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- Cost and Financing Plan (in US$ million)
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| Source |
Foreign Cost |
Local Cost |
Total |
| Bank |
100.00 |
0.00 |
100.00 |
| Cofinancing |
4.55 |
0.00 |
4.55 |
| Borrower |
116.47 |
0.00 |
116.47 |
| Beneficiaries |
0.00 |
0.00 |
0.00 |
| Others |
0.00 |
0.00 |
0.00 |
| Project/Program Cost |
221.01 |
0.00 |
221.01 |
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OCR |
ADF |
Total |
| Loan Amount |
100.00 |
0.00 |
100.00 |
- Description
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The Project covers 3,655 square kilometers of the oasis of the Yinchuan Plain extending into the Helan Mountains to the west of the Yellow River in Ningxia Hui Autonomous Region. It comprises three districts and two counties that surround the ancient city of Yinchuan, the capital. The Project will support the policies and plans of the Ningxia Hui Autonomous Region government (NHARG) to combat land degradation through an integrated ecosystem management (IEM) approach. Since 2003, the PRC has been selectively introducing IEM in acknowledgment of the multidimensional nature of land degradation. IEM approaches emphasize the links between natural ecosystem capacities and socioeconomic activities, and seek to holistically rehabilitate damaged ecosystem services and functions by tackling the root causes of damaging practices, including reduction of rural poverty. The Project will reform enabling policies and regulations, as well as build institutional, regulatory, and policy capacity to combat land degradation using an IEM approach. It will demonstrate measures to achieve improved water and land use planning and management, support sustainable rural livelihoods in poor communities through contracts with commercial enterprises, and link commercial and conservation values to rehabilitate the degraded wetlands and grasslands. A Global Environment Facility (GEF) grant will ensure that an IEM approach is used in project implementation and provide support measures to protect 15 globally threatened species. A market-based approach will be taken to promote sustainable resource use and protect and conserve wetlands, grasslands, transboundary flyways, and cultural sites. Tourism and recreation opportunities will be provided for 1.1 million local residents and visitors.
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- Thematic Classification
- Environmental Protection
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- Target Classification
- General Intervention
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- Rationale
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The PRC has some of the worst land degradation problems in the world, especially in the vast western region where more than 350 million people live and poverty incidence is the highest. In recent decades, the pressures of intensified use, increased population, and rapid economic growth have led to losses of vital ecosystem services, and reduced productivity of grasslands, farmlands, wetlands, forests, and mountain areas.
Programs to combat land degradation were initiated under the 9th (1996?2000) and 10th (2001?2005) five-year plans, and have resulted in some environmental improvements. However, the high cost of top-down and uncoordinated sector approaches are of concern. The root causes, such as rural poverty and alternative livelihood options to reduce activities that damage the environment, were inadequately addressed. The project area typifies problems found in many parts of the western region. Very fast economic growth in recent years, overuse of water and agrochemicals in agriculture, conversion of marginal desert-edge lands to irrigation for poor farming households, and rapid urban and industrial spread with high pollution have resulted in significant loss of vital ecosystem services and values. Reversing this trend requires strengthening the quality of the policy and regulatory framework, coordinating land and water planning and management, and expanding the role of markets in activities that are compatible with the rehabilitation of ecosystems and their sustainable future use.
- Project Impact
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The impact of the Project will be improved environmental management to rehabilitate ecosystems and increased rural incomes in the Yinchuan area. An increased number of smallholders and poor rural communities will be linked to enterprises in conservation-oriented industries to provide alternatives to current agricultural practices that are damaging to ecosystems. Farmland degradation (e.g., soil quality) and wetland water quality will be improved, and conservation agriculture will be practiced on 35,000 hectares (ha) of farmland. The wildlife conservation area will be approximately 115,360 ha; and wetland conservation will be practiced on 8,825 ha. Visitors to tourism sites will expand to 1.1 million each year.
- Project Outcome
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The Project's main outcome is to introduce an IEM approach to provide sustainable livelihoods for the population of the project area. In line with successful experience in the PRC and internationally, a comprehensive approach to address the multidimensional root causes is needed to effectively address ecosystem degradation. The main targets and indicators are (i) demonstration of the IEM approach through policy, regulatory, and institutional reforms; (ii) livelihood improvement for up to 140,000 smallholder farmers, including six poor communities, and increased incomes for 20 enterprises through a transition to higher value and more resource-efficient industries; (iii) reduction of agrochemical and water use per unit of cultivated area; (iv) increase in water allocations for nine major lakes and wetland systems, and less runoff from agriculture; and (v) protection of 15 globally threatened wild species.
- Project Outputs
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The Project has four outputs: (i) IEM capacity building and project management, (ii) land and water resource management, (iii) rural livelihood improvement, and (iv) ecosystem conservation.
- Policy Dialogue
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- Environment Category:
A
- Environment Impact and Mitigation
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- Social Aspects and Remedies
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Rural poor, especially smallholders, are unable to access capital for investment into improved livelihoods. The Project will provide mechanisms to address this through the provision of credit guarantees, the use of grants provided by Yinchuan Municipality and Ningxia State Farm Group, and contract farming agreements to access land and technical, financial, and marketing services.
The Project will require adjustment of livelihood and land use to suit long-term and sustainable ecosystem management. The Government will need to ensure smooth implementation of the Project. Current plans include employment guarantees, subsidies provided for alternative livelihood, contract farming agreements, provision of interest free credit to rural poor, and natural hazard insurance.
- Benefits and Beneficiaries
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Income benefits will be achieved for about 46,400 rural households, including previously resettled poor communities and Hui minority people. These will result from linkages to enterprises in conservation-oriented production of beef, dairy, grapes, and other agricultural activities such as Chinese dates, wolfberry, and other fruits; fodder; and significant production of vegetables, mushrooms, medicinal herbs, and cut flowers. Vocational and technical training will be provided for rural households. About 5,200 nonfarming jobs will be created in the livestock, perennial crops, and other agricultural industries.
Project activities will enhance the environment and improve the habitats of Shahu Lake, Yuehai Lake, and the Yinchuan City wetlands. Water resources and livelihood improvement will directly benefit about 10% of the land area and an estimated 32% of the rural population. About 124,195 hectares of the piedmont zone of the Helan Mountains, wetlands, and the Helan Nature Reserve will benefit from improved protection and conservation management. The benefits from investments to restore and conserve ecosystem functions, services, and values to help protect the habitat of threatened wild species have not been quantified but are believed to be substantial.
- Public Consultation
- Arranged by
- Date for Consultation :
- Groups Consulted :
- Beneficiary Participation in Formulation
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The project design process was linked and extended the ongoing OP12 PRC-GEF Capacity Building to Combat Land Degradation Projectc and its development of a Ningxia Land Degradation Strategy and Action Plan using local experts working in a multistakeholder, and multisector planning procedure. For the design of the Project, consultation has taken place with stakeholders, beneficiaries, and directly affected people, and will continue during implementation. A participatory and consultative methodology was adopted to undertake the social analysis and rural livelihood survey during the project preparatory technical assistance. It involved (i) a formal questionnaire survey with 270 households; (ii) discussions with project stakeholders; (iii) a series of stakeholder workshops with the four subborrowers; and (iv) interviews with key informants in rural communities, key Government staff and nongovernment organizations, ethnic minorities, and women. Detailed discussions were maintained using both sector and cross-sector working groups that included the provincial project management office (PPMO) and its expert groups, project implementing agencies and associated state-owned enterprises, design institutes, academics, and safeguard agencies including environment and poverty reduction officials under the leadership of the PPMO. The working groups' findings were collectively discussed and reviewed through a series of stakeholder workshops.
- Beneficiary Participation in Implementation
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The project design process was linked and extended the ongoing OP12 PRC-GEF Capacity Building to Combat Land Degradation Projectc and its development of a Ningxia Land Degradation Strategy and Action Plan using local experts working in a multistakeholder, and multisector planning procedure. For the design of the Project, consultation has taken place with stakeholders, beneficiaries, and directly affected people, and will continue during implementation. A participatory and consultative methodology was adopted to undertake the social analysis and rural livelihood survey during the project preparatory technical assistance. It involved (i) a formal questionnaire survey with 270 households; (ii) discussions with project stakeholders; (iii) a series of stakeholder workshops with the four subborrowers; and (iv) interviews with key informants in rural communities, key Government staff and nongovernment organizations, ethnic minorities, and women. Detailed discussions were maintained using both sector and cross-sector working groups that included the provincial project management office (PPMO) and its expert groups, project implementing agencies and associated state-owned enterprises, design institutes, academics, and safeguard agencies including environment and poverty reduction officials under the leadership of the PPMO. The working groups' findings were collectively discussed and reviewed through a series of stakeholder workshops.
- Consulting Services
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The Project will finance three consulting packages. Package A, financed by the GEF grant, will comprise 4 international and 7 national person-months of individual consultants to strengthen the project management capabilities of the PPMO. ADB will be responsible for the selection with concurrence of NHARG and the PPMO for contract negotiations and contract management. Package B, financed under the GEF grant, will comprise a team of 12 international and 77 national person-months to provide technical specialists. In selecting the firm, the quality- and cost-based selection method, with a quality-cost weighing of 80:20, will be used and short-listed firms will be required to submit simplified technical proposals. The PPMO will be responsible for the selection, contract negotiations, and contract management. Package C, financed under the loan, will comprise 11 international and 16 national person-months of individual consulting services in the field of water resource management to be financed directly from the loan. Individual consultant selection will be applied. The PPMO will be responsible for the selection, contract negotiations, and contract management. A summary of all consulting packages is included in Appendix 8 of the RRP while detailed terms of reference for consulting services are in Supplementary Appendix C. All recruitment will follow ADB's Guidelines on the Use of Consultants (2007, as amended from time to time).
- Procurement
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Goods, related services, and civil works financed partly or wholly by ADB and GEF will be procured in accordance with ADB's Procurement Guidelines (2007, as amended from time to time) and the procurement plan described in Appendix 7, which will be reviewed and updated on an annual basis. Contract packages for goods and related services exceeding $1,000,000 will be awarded on the basis of international competitive bidding or limited international bidding, while those costing between $100,000 and $1 million will be awarded through national competitive bidding. Contracts below $100,000 will be procured through shopping. For contracts below $10,000, direct contracting can be used. Civil works contracts costing more than
$10 million will be procured using international competitive bidding, while those valued at the equivalent of $10 million or less can be procured using national competitive bidding procedures acceptable to ADB. Small-scale works and contracts in rural areas may be awarded using community participation procedures. The selection of suppliers and/or contractors and award of contracts will be subject to ADB approval. The relevant sections of ADB's Anticorruption Policy (1998, as amended to date) will be included in all procurement documents and contracts. A procurement plan setting out an indicative list of all procurement packages and the procurement methods is provided in Appendix 7 of the RRP.
Three PPMO staff will be assigned procurement management activities, including monitoring of the procurement plan and coordinating procurement activities under the Project. Measures to strengthen the capacity of PPMO staff in undertaking procurement activities will be implemented, including the engagement of project management consultants, financed by the GEF grant, to provide training on procurement and other aspects of project implementation. PPMO staff will be nominated to attend ADB-sponsored courses and seminars on procurement and project implementation. NFD will appoint a procurement agent to help with procurement and to ensure compliance with ADB policies and procedures, on terms and conditions satisfactory to ADB.
- Contacts
- Bank
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Yue-Lang Feng
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Principal Natural Resources Management Specialist
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EAAE
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Tel. No.:
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(632) 632-6769
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E-mail:
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fengyuelang@adb.org
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- Executing Agency
- Ningxia Department of Finance
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Contact Person
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Madame Ma Minxia, Deputy Director General
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Tel. No.
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Fax. No.
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+86 951 5045930
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