Project Name Shaanxi Weinan Luyang Integrated Saline Land Management Project
Project Number 44037-014
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Grant 0331-PRC: Management and Protection of Wetlands in Weinan City in Shaanxi Province
Global Environment Facility US$ 2.00 million
Loan 2980-PRC: Shaanxi Weinan Luyang Integrated Saline Land Management Project
Ordinary capital resources US$ 100.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Sector / Subsector

Agriculture, natural resources and rural development - Rural flood protection - Water-based natural resources management

Gender Equity and Mainstreaming Effective gender mainstreaming

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.
Impact Sustained and inclusive economic growth in Weinan municipality
Project Outcome
Description of Outcome Improved natural environment and rural livelihood in Luyanghu area
Progress Toward Outcome The project management consultants have been mobilized. A loan review mission was fielded in June 2015.
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)

To be confirmed at project completion

To be confirmed at project completion

To be confirmed at project completion

To be confirmed at project completion

To be confirmed at project completion

To be confirmed at project completion

To be confirmed at project completion

To be confirmed at project completion

To be confirmed at project completion

To be confirmed at project completion

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 category A for environment. The environmental impact assessment (EIA) report, including an environmental management plan (EMP) follows ADB's Safeguard Policy Statement (2009).

The following were discussed during the review mission:

- The PMO submitted an environmental progress report for the period covering up to 31 Dec 2014. The report has been disclosed on ADB's website.

- Implementation of the Project environmental plan.

- The full-time PMO Environment Officer has been engaged.

- Minimizing the loss of slatpans through good project designs.

- Shaanxi Animal Research Design Insitute (SARDI) team has been established.

- The external monitoring agency (Weinan Environmental Monitoring Station) has been engaged in April 2015.

Involuntary Resettlement

The project is classified as category B for resettlement.

The Resettlement Plan as approved by SDCC has been disclosed on ADB's website on 18 September 2015.

- The resettlement team has been established.

Indigenous Peoples Based on the preliminary assessments, the project is classified as category C for indigenous people. No ethnic minorties and/or indigenous communities are present in the project area (historically occupied by Han, the majority of the PRC population).
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

The WMG acknowledged the need to strengthen the implementation arrangement including the staffing of the project management office (PMO). The engagement of the project management consultants since 23 April 2015 is surely a big step forward, but further strengthening is still urgently needed. Physical implementation of the project has started, but progress is very slow.

The imprest accounts for the loan and grant have been opened and the initial advances to the loan and grant imprest accounts of $10 million and $200,000, respectively have been deposited by ADB in Dec 2013. The project's disbursement projection in 2015 is $5.4 million.

Contract awarded under the loan amount to $2.398 million comprising procurement of the first civil works contract and the project management consulting service package. Seven civil works contract are expected to be awarded by Dec 2015. If procurement proceeds as planned and on schedule, the project will be able to achieve its contract awards projection in 2015 of $37.7 million.

Business Opportunities
Consulting Services Recruitment of the project management consultant is ongoing.
Responsible ADB Officer Zhou Yaozhou
Responsible ADB Department East Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, EARD
Executing Agencies
Weinan Municipal Government
Building No.14th Floor,
83 Dongfeng Street Weinan, Shaanxi,
People's Republic of China
Concept Clearance 14 Dec 2010
Fact Finding 16 Jul 2012 to 25 Jul 2012
Approval 17 Dec 2012
Last Review Mission -
Last PDS Update 21 Sep 2015

Grant 0331-PRC

Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 Dec 2012 07 May 2013 27 Jun 2013 31 Dec 2016 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 65.20 Cumulative Contract Awards
ADB 0.00 17 Dec 2012 0.00 0.00 0%
Counterpart 63.20 Cumulative Disbursements
Cofinancing 2.00 17 Dec 2012 0.00 0.20 10%

Loan 2980-PRC

Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 Dec 2012 07 May 2013 27 Jun 2013 31 Dec 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 100.00 Cumulative Contract Awards
ADB 100.00 17 Dec 2012 2.37 0.00 2%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 17 Dec 2012 10.44 0.00 10%

TA 8293-PRC

Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 Dec 2012 24 Jan 2013 24 Jan 2013 31 Dec 2014 31 Dec 2015 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 0.00 0.00 0.00 0.00 0.00 0.00 17 Dec 2012 175,739.73

This project data sheet was generated from on 30 November 2015