Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date
PDS Updated as of 29 Apr 2014

Project Name Hunan Xiangjiang Inland Waterway Transport Project
Country China, People's Republic of
Project/Program Number 43031-013
Status Approved
Geographical Location
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector Transport and ICT
Subsector Water transport (non-urban)
Strategic Agendas
Drivers of Change
Gender Equity and Mainstreaming Categories Effective gender mainstreaming

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Loan2962Ordinary capital resources150,000
Counterpart 177,920
TOTAL US$ 327,920

Safeguard Categories

For more information about the safeguard categories, please see http://www.adb.org/site/safeguards/safeguard-categories

Environment A
Involuntary Resettlement A
Indigenous Peoples C

Summary of Environmental and Social Issues

Environmental Aspects
The project is classified as environmental category A. There are no nature reserves or protected areas near the complex site. The structure of the complex is a run-of-the-river type with a low head of 10 meter. An environmental impact assessment (EIA) was prepared in compliance with the PRC regulatory framework and ADB s Safeguard Policy Statement (2009). Two rounds of public consultation, including a community survey were undertaken. The EIA was circulated to ADB s Board of Directors and made public through the ADB website on 4 August 2011. The potential impacts include incremental adverse impacts on water quality through re-suspension heavy metals in sediments and subsequent impacts to downstream water quality, incremental adverse impacts on fish resources through creation of a new barrier to upstream migration of fish and to downstream movement of fish spawn and fish fry, and loss of critical spawning habitat for fish. The EIA s detailed environmental management plan (EMP) provides $16.5 million for mitigation measures to prevent and reduce these and other potential impacts.
Involuntary Resettlement
The project is classified as category A for involuntary resettlement. A resettlement plan was developed in accordance with local laws and regulations and ADB s Safeguard Policy Statement (2009), with active participation of local governments and the affected people. Resettlement information booklets have been distributed to affected villages. The project will affect a total of 53 villages of 14 township/towns in 3 counties. The project will permanently acquire 5,791.5 mu (386.1 ha) of land and will temporarily occupy 196 mu (13.1 ha) of land. Most of the affected households will only lose part of their total landholding. It is estimated that 5,286 persons will be directly affected by land acquisition and house demolition. A total of 30 households (127 persons) will need to be relocated. The resettlement budget is estimated at CNY467 million, or about 19% of the project cost.
Indigenous Peoples
The project is classified as indigenous peoples category C as there are no minority groups present in the project area.

Stakeholder Communication, Participation and Consultation

During Project Design
Consultation meetings were held during processing.
During Project Implementation
To continue holding meeting with stakeholders during project implementation.

Description

Hunan is a land-locked province located in central PRC. It has a population of 68.4 million. It is one of the six central provinces supported by Government s Central Region Development Strategy. Hunan is rich in navigable waterway resources. It has the third longest provincial IWT network in the PRC, with over 11,495 km of waterways, 107 ports and 1,880 berths. However, only 5% of the waterway and berths can accommodate vessels of up to 1,000 tons carrying capacity. Historically, IWT used to be the most important transport mode in the province. By 2009 it was carrying 10% of total freight ton-km, reflecting past low public investment in IWT compared to other modes. In 2009 the total IWT investment was CNY551 million, about 1% of total road investment. The Xiang River (Xiangjiang) is one of the largest tributaries of the Yangtze and the largest river in the province. Originating in Guangxi Zhuang Autonomous Region, it is 969 km long, with 773 km in Hunan before it flows into the Yangtze River (Map). The Xiang waterway network runs from south to north, via the Yangtze River, connecting six of Hunan s cities and major concentrations of population with the PRC s east coast seaports. Habitation and industry in Hunan is oriented along the river valleys. There is a great potential for further development of Xiang waterway to support transport of minerals and agricultural products from their sources inland to the major markets on the eastern seaboard, including by inland shipping services linking the Yangtze and Xiang rivers. With the encouragement from the MOT s vessel standardization programs, the average vessel capacity in Hunan has increased from 213 deadweight tons (dwt) in 2005 to 318 dwt in 2010. The largest vessel in operation at present is 5,600 dwt. Traffic on the Xiang waterway has grown at 21% per annum since 2000. However, these increases in vessel size and traffic have taken place in the downstream part of Xiang River and the areas close to the Yangtze River. The middle and upper reaches currently have limited water depth and long rocky shoals prevent safe year-round access by large vessels. Further growth is also constrained by obsolete and insufficient port infrastructure and landing facilities. These bottlenecks restrict the utilization of the middle and upper streams of the Xiang River, and increase the transport cost and voyage time, which reduce the competiveness of the waterway compared with other modes of transport. Removal of these bottlenecks is a priority.

Project Rationale and Linkage to Country/Regional Strategy

The Project builds upon ADB s past involvement in the transport sector in Hunan Province, which previously focused on road development. It is a significant step toward realizing the considerable potential for using IWT and thereby contributing to a more sustainable transport system in the PRC. Since this is ADB s first IWT project in the PRC, it also demonstrates ADB s intention to focus future transport sector support on more sustainable forms of transport, in line with the Sustainable Transport Initiative. The Project is a high priority project in the NIWPP. It is fully in line with ADB s Country Partnership Strategy (2008 2010) since it will contribute to greening of ADB s transport portfolio; address issues of managing resource scarcity and environmental conservation through reducing air pollution, and conserving water resources; and enhance accessibility for the rural poor. ADB s involvement will enhance efforts to strengthen IWT policy, institutions, capacity and efficiency in Hunan. Through preparation of the project, ADB has been assisting HPG in drawing up a provincial policy for IWT development, which will provide further IWT policy reform.

Development Impact

An efficient, safe, affordable, and sustainable inland waterway transport system developed in Hunan province

Project Outcome

Description of Outcome
A low carbon waterway transport system improved on the Xiang River in Hunan province
Progress Towards Outcome
Project implementation is ongoing.

Outputs and Implementation Progress

Description of Project Outputs
Tugutang navigation-cum-hydropower generation complex constructed Cargo terminal berths at Songbai and Yunji and public landing stages improved Capacity and performance of waterway management agencies enhanced
Status of Implementation Progress (Outputs, Activities, and Issues)
1. ADB-financed civil works and equipment contracts were all awarded in 2013, and construction of Tugutang complex is ongoing. 2. During 2012 to 2013, three consultations were held, and five gender awareness training workshops were organized for 220 representatives from the IA, government resettlement offices, women federations, disease control centers, and contractors. Three hundred and twenty (320) manuals on HIV/AIDS prevention were distributed to three (3) villages at the project site and contractors. One hundred fifty seven (157) women received farm and non-farm skill trainings on lotus planting, fish farming, office support, and catering services. Of 157 women trained, 74 were employed under the Project. In 2013, the IA also provided CNY10,000 education subsidy for 20 poor students including 12 female students. For the berths at Songbai and Yunji, the engineering design started in September 2013 and completed in December 2013. 3. The Water Transport Devt Committee was established and held its 1st annual meeting in December 2012, and the second in February 2014. On 30 October 2013, Hunan Xiangjiang Navigation Construction and Development Company (XNCD), the IA for Output 1 and 2, was restructured to be Hunan Provincial Water Transportation Construction & Investment Group Go. Ltd. (HPWTCIG).
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing 2013 Sep 16
Consulting Services
23. An international consulting firm will be engaged to provide services in the areas of institutional strengthening, capacity building and port development study. A total of 37 person-months (5 international and 32 national) of inputs will be required with expertise in inland waterway policy, public concession management, port planning and management. ADB will select and hire the consultants using full technical proposal procedures through QCBS with quality-cost ratio of 80:20. In addition, five (5) individual consultants with expertise in hydraulic structures, geological engineering, hydropower, resettlement and waterway engineering will be hired to serve in a Technical Advisory Panel. All consultants will be recruited according to ADB s Guidelines on the Use of Consultants.
Procurement
The Goods component consists in the procurement hydropower generation equipment, metalworks (powerhouse, sluices and shiplock gates), navigation equipment and ancillary electromechanical equipment. ADB will provide full financing for five (5) packages covering the procurement of i) hydropower generation equipment (turbines, generators and ancillary equipment), ii) metalworks (powerhouse and sluices), iii) shiplock gates) and iv) emergency response vessels. All goods under ADB financing will be procured through ICB or NCB. The Civil Works component covers procurement i) construction of a barrage and powerhouse, ii) construction of a shiplock, iii) protection of banks, iv) construction of berths. ADB will finance partially the two largest civil works packages namely i) the construction of the barrage and powerhouse, and ii) the construction of the shiplock. ADB will finance the construction of the Barrage and Shiplock both to be procured through ICB.
Procurement and Consulting Notices
http://www.adb.org/projects/43031-013/business-opportunities

Timetable

Concept Clearance 07 Jan 2011
Fact-finding 18 Apr 2011 to 28 Apr 2011
Management Review Meeting 30 Sep 2011
Approval 07 Dec 2012
Last Review Mission

Milestones

Approval No. Approval Signing Effectivity Closing
Original Revised Actual

Utilization

Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
Cumulative Disbursements

Status of Covenants

Covenants are categorized under the following categories—audited accounts, safeguards, social, sector, financial, economic, and others. Covenant compliance is rated by category by applying the following criteria: (i) Satisfactory—all covenants in the category are being complied with, with a maximum of one exception allowed, (ii) Partly Satisfactory—a maximum of two covenants in the category are not being complied with, (iii) Unsatisfactory—three or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy, covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.

Approval No. Category
Sector Social Financial Economic Others Safeguards Project Financial Statements
Loan 2962

Contacts and Update Details

Responsible ADB Officer ()
Responsible ADB Department East Asia Department
Responsible ADB Divisions Transport and Communications Division, EARD
Executing Agencies Hunan Provincial Department of Transport (HPDOT)
*

Links

Project Website http://www.adb.org/projects/43031-013/main
List of Project Documents http://www.adb.org/projects/43031-013/documents