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 Shaanxi Weinan Luyang Integrated Saline Land Management Project
Country China, People's Republic of
Project/Program Number 44037-014
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 and/or Subsector Classification Multisector
/ Multisector
Thematic Classification Economic growth
Environmental sustainability
Gender Mainstreaming Categories Effective gender mainstreaming

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Loan2980Ordinary capital resources100,000
Technical Assistance8293Water Financing Partnership Facility - Multi Donor350
Grant0331Global Environment Facility2,000
Counterpart 63,200
TOTAL US$ 165,550

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
Based on the preliminary assessments, the project is classified as category A for environment. Safeguard documents, including an environmental impact assessment, will be prepared following ADB's Safeguard Policy Statement (2009).
Involuntary Resettlement
Based on the preliminary assessments, the project is classified as category B for resettlement. Safeguard documents, including a resettlement plan, will be prepared following ADB's Safeguard Policy Statement (2009).
Indigenous Peoples
Based on the preliminary assessments, the project is classified as category C for indigenous people. Safeguard documents will be prepared following ADB's Safeguard Policy Statement (2009).

Stakeholder Communication, Participation and Consultation

During Project Design
During Project Implementation

Description

Located in the east of Guanzhong Plain, Weinan City is part of the Guanzhong Tianshui Economic Zone, which was approved by the State Council in 2009 to strengthen the development of the western region. In line with the goals of the Guanzhong Tianshui Economic Zone, including that the gross domestic product (GDP) output reaches one-third of the western region by 2020, the Weinan City Government has prepared a long-term development plan (2007 2025) for the Luyanghu area to improve local livelihoods and environment, attract high-tech industrial investment, promote local tourism, and create job opportunities. The Weinan City Government established the Weinan Luyanghu Construction Development Co. Ltd. (WLCDC) to take charge of the planning and infrastructure improvement of the area. The Luyanghu area has been barren for decades, mainly due to the long-term problems of saline and alkaline soils, high groundwater tables, and a poor drainage system. Luyanghu is a low-lying waterlogged area, with a watershed of 1,123 square kilometers (km2) across Fuping and Puchen counties. The lake was formed more than 10,000 years ago, and was gradually silted because of dry weather and agricultural activities. The water further receded gradually after a devastated earthquake in 17th century. Currently, only two shallow mud flats are left in Luyanghu area, namely Luboa Tan and Neifu Tan. The groundwater table in Luyanghu area is around 0 3 meters below ground surface. Salt and mineral contents in the groundwater and soils have become very high, which make agricultural activities almost impossible. Local people grow limited cotton and corn crops, with productivities only half of those in Weinan area. To remove salts from the soil and improve agricultural productivity in Luyanghu area, the government established the Luoxi desalination drainage system in 1974, which consists of four main desalination drainage canals, i.e., main, west, central, and east canals; and associate minor drainage ditches. The desalination drainage system serves an area of about 418 km2. The original design of the desalination system was of low quality partly due to insufficient investment. Because of the lack of maintenance and management, the system has silted and fails to remove salts to the expected extent. The soil salinity is still high, and agricultural activities are still limited. Luyanghu area is one of the national poverty areas, with about 32,400 villagers. Most of them were mainly immigrants from Henan and Shandong provinces. More than 90% of the villagers are impoverished. Their 2006 average per capita income was only CNY1,480, which is CNY780 lower than the Shaanxi provincial average. Because of the flat topography and poor flood management system in the area, flooding is common during rainy season. The heavy storm in August 2003 is a case in point that caused heavy casualties and stranded thousands of villagers for days. International development organizations, such as the Department for International Development of the United Kingdom, the Government of Finland, and the World Bank have provided financial support in improving irrigation infrastructure and rural livelihoods in the area. ADB has also been providing investment and technical assistance in the region to help improve land degradation, biodiversity recovery, environmental quality, and transport. ADB has also worked with the Global Environment Facility to disseminate best practices for salinization control in dryland. To help the government develop the western region and improve livelihoods in Luyanghu area, the proposed project will (i) rehabilitate the Luoxi desalination drainage system to remove salts from the soils, (ii) improve flood storage capacity of Luyanghu area to reduce flood risks to local people, and (iii) rehabilitate local wetland environment.

Project Rationale and Linkage to Country/Regional Strategy

During the country programming mission for the People's Republic of China (PRC) in December 2009, the government requested the Asian Development Bank (ADB) to finance the Shaanxi Weinan Luyang Integrated Saline and Alkaline Land Management Project, with an indicative lending amount of $100 million. The proposed project is in the 2012 lending pipeline.

Development Impact

Sustained and inclusive economic growth in Weinan municipality

Project Outcome

Description of Outcome
Improved natural environment and rural livelihood in Luyanghu area
Progress Towards Outcome
From the April 2014 review mission, the executing agency informed the mission that a site of about 2,000 mu situated immediately to the west of the current Neifutan Saltpans has been designated for the construction of new salptans.

Outputs and Implementation Progress

Description of Project Outputs
Saline soils rehabilitated Flood risk management implemented Wetland ecosystem conservation established Capacity development and project implementation support provided
Status of Implementation Progress (Outputs, Activities, and Issues)
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing 2013 Jan 30
Consulting Services
A consulting firm will be engaged to conduct the PPTA activities. It is estimated that a total of 46 person-months of consulting services will be required, including 17 person-months of international consulting services; and 29 person-months of national consulting services. The expertise of the consultants will include flood management, hydraulic engineering, soil acclamation, economic and financial analyses, wetland rehabilitation, ecotourism, environment assessment, social development, and resettlement. The consulting firm will be recruited following ADB s Guidelines on the Use of Consultants (2010, as amended from time to time) based on the quality- and cost-based selection method using a quality cost ratio of 80:20 and simplified technical proposals. Individual consultants may be recruited for specific short-period assignments which may arise during PPTA implementation. The proceeds of the TA will be disbursed following ADB s Technical Assistance Disbursement Handbook (2010, as amended from time to time).
Procurement
Procurement and Consulting Notices
http://www.adb.org/projects/44037-014/business-opportunities

Timetable

Concept Clearance 14 Dec 2010
Fact-finding 16 Jul 2012 to 25 Jul 2012
Management Review Meeting
Approval 17 Dec 2012
Last Review Mission

Milestones

Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Technical Assistance 8293 17 Dec 2012 24 Jan 2013 24 Jan 2013 31 Dec 2014

Utilization

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

TA Amount (US$ thousand)

Approval Number Approved Amount Revised Amount Total Commitment Uncommitted Balance Total Disbursement Undisbursed Balance
Technical Assistance 8293 350 350 167 183 33 317

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 2980
Grant 0331

Contacts and Update Details

Responsible ADB Officer Frank Radstake (fradstake@adb.org)
Responsible ADB Department East Asia Department
Responsible ADB Divisions Environment, Natural Resources & Agriculture Division, EARD
Executing Agencies

Links

Project Website http://www.adb.org/projects/44037-014/main
List of Project Documents http://www.adb.org/projects/44037-014/documents