Project Name Hunan Xiangjiang Inland Waterway Transport Project
Project Number 43031-013
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2962-PRC: Hunan Xiangjiang Inland Waterway Transport Project
Ordinary capital resources US$ 150.00 million
Loan: Hunan Xiangjiang Inland Waterway Transport
China Construction Bank Corporation US$ 65.40 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector

Transport - Water transport (non-urban)

Gender Equity and Mainstreaming Effective gender mainstreaming
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.

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 Toward Outcome Project implementation is ongoing and well on track. Disbursement is about 46% of $150 million. The draft final report on policy studies has been completed and will be reviewed during April 2015 international workshop.
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)

All civil works and equipment contracts for the complex have been awarded and construction is on track to be completed as scheduled.

Songbai port construction started in October 2014.

Three consultations held and five gender-awareness trainings organized, 320 manuals on HIV/AIDS prevention distributed, and 157 women received farm and non-farm skill trainings.

The Water Transport Development Committee was established and has held two annual meetings.

Hunan Water Transportation Construction and Investment Group Co. Ltd has replaced Hunan Xiangjiang Navigation Construction & Development Corporation Ltd

A gender awareness training was held for 30 XNCD staff in Dec 2012.

Geographical Location
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
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.
Business Opportunities
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.

Responsible ADB Officer Cai Li
Responsible ADB Department East Asia Department
Responsible ADB Division Transport and Communications Division, EARD
Executing Agencies
Hunan Provincial Department of Transport (HPDOT)649 Yuandayilu Road, Changsha,
Hunan Province,
People's Republic of China 410001
Timetable
Concept Clearance 07 Jan 2011
Fact Finding 18 Apr 2011 to 28 Apr 2011
MRM 30 Sep 2011
Approval 07 Dec 2012
Last Review Mission -
Last PDS Update 31 Mar 2015

LoanĀ 2962-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
07 Dec 2012 25 Jan 2013 25 Apr 2013 30 Jun 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 327.92 Cumulative Contract Awards
ADB 150.00 07 Dec 2012 148.18 0.00 99%
Counterpart 177.92 Cumulative Disbursements
Cofinancing 0.00 07 Dec 2012 84.12 0.00 56%

This project data sheet was generated from http://www.adb.org/projects/43031-013/main on 04 September 2015