China, People's Republic of: Fuzhou Environmental Improvement Project

Sovereign Project | 35340-013

Summary

The Project seeks to improve the urban environment of Fuzhou through the construction and rehabilitation of sewer networks, rehabilitation of inland river system, and the strengthening of urban governance in water resource management. Specifically, the Project will (i) construct about 210 km of sewers that will improve the urban environment for 1.85 million urban residents; and (ii) improve the water quality to achieve targeted standards in the inland rivers and Min River that would support the integrated approach in water resources management.

Latest Project Documents


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Project Name Fuzhou Environmental Improvement Project
Project Number 35340-013
Country China, People's Republic of
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2176-PRC: Fuzhou Environmental Improvement Project
Ordinary capital resources US$ 55.80 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change
Sector / Subsector Water and other urban infrastructure and services - Urban policy, institutional and capacity development - Urban sewerage - Urban water supply
Gender Equity and Mainstreaming
Description The Project seeks to improve the urban environment of Fuzhou through the construction and rehabilitation of sewer networks, rehabilitation of inland river system, and the strengthening of urban governance in water resource management. Specifically, the Project will (i) construct about 210 km of sewers that will improve the urban environment for 1.85 million urban residents; and (ii) improve the water quality to achieve targeted standards in the inland rivers and Min River that would support the integrated approach in water resources management.
Project Rationale and Linkage to Country/Regional Strategy

Wastewater management in the PRC provides numerous opportunities to reduce water pollution, protect water resources, promote sustainable economic development, promote public-private partnerships in urban infrastructure, and improve the living conditions and public health of urban residents, including the poor. The Government needs assistance to achieve the Millennium Development Goals for environmental sustainability, and to half the proportion of people without sustainable access to safe drinking water and basic sanitation by 2015.

Over the past decade, the Government has shifted fundamentally towards a market-based approach, enterprise provision in the delivery of infrastructure services, and a more integrated approach to urban management. The PRC policies incorporate the need for complementary reforms to support investment, particularly from the private sector, in urban infrastructure. Improvements in service delivery through investment in wastewater systems are increasingly being matched by financial, governance, and enterprise reform; public education; awareness; and social responsibility. Although much progress has been made, the Government believes the pace of change needs to be accelerated. Investment in wastewater management systems is still urgently needed. Moreover, the socioeconomic surveys demonstrate that the general public is becoming increasingly concerned about the impact of wastewater pollution, and are willing to pay for wastewater treatment and envirohmental improvement.

Impact Improved environment and quality of life for the urban residents of Fuzhou.
Project Outcome
Description of Outcome Reduced environmental contamination in the Fuzhou urban area and strengthened capacity in water resource and wastewater management.
Progress Toward Outcome Actual physical completion date of the loan: 30 June 2012 and actual closure of loan account: 19 October 2012.
Implementation Progress
Description of Project Outputs

1. Completion of sewer network system

2. Rehabilitation of selected inland creeks

3. Land acquisition and resettlement

4. Introduction of effective operating regime

5. Strengthened institutional capacity

Status of Implementation Progress (Outputs, Activities, and Issues)

1. (a) all ten civil works and three equipment contracts were awarded; (b) no land acquisition and resettlement impacts; (c) all physical works were completed by 31 December 2011.

(a) all nine civil works and three equipment contracts were awarded; (b) rights-of-way for about 15 km sewer lines are ongoing; (c) physical progress is 96%; and (d) all outstanding works will be carried out by domestic funding.

2. Construction has been delayed due to the significant problems involved in resettlement. (a) all six civil works and two equipment contracts were awarded; (b) land acquisition and resettlement activities have been substantially delayed and are still ongoing; (c) physical progress is 58% - 100% for Puxia river, 40% for Longjin river, 56% for Yuejin river, and 28% for Lianban and Linpu rivers; and (d) Fuzhou Urban Visual Construction Development Company (FUVCDC)will carry out construction works for the four rivers to the maximum extent until the loan closing and undertake the remaining works under domestic funding.

3. Resettlement activities have been substantially delayed due to the complaints filed for compliance review panel.

Total affected persons under the 5 rivers that will be financed under the loan is now 3,548.

Resettlement activities have been substantially delayed due to the complaints filed for compliance review panel.

Total affected households under the 5 rivers that will be financed under the loan is now 799.

4. Ongoing.

5. Completed.

Geographical Location Fuzhou, Fujian Province, PRC
Safeguard Categories
Environment A
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects

It is categorized as "A". The project wil improve the urban environment, aquatic environment of inland creeks, and public health and safety of Fuzhou. The Project will target substantial improvements in (i) Fuzhou's wastewater management, including collection and treatment; (ii) water quality of inland creeks of Nantai Island; and (iii) the protection of water quality in the Min River, the source of drinking water for Fuzhou. The summary EIA was circulated to the ADB Board on 7 July 2004. The Project will have an overwhelmingly positive environmental impact, and any environmental risks during construction will be mitigated.

Latest Environmental Monitoring Report submitted August 2011. Semi-Annual Environmental Report submitted November 2011.

Involuntary Resettlement

The Project will acquire permanently 74.81 hectares (ha) of land, of which 31% is farmland, primarily for the rehabilitation of the inland creeks on Nantai Island. The Project also will require the temporary acquisition of 8.17 ha. Further, 1,148 households (or 5,045 people)

will be relocated, and about 197,230 m2 of houses will be demolished. The Project also will affect 75 enterprises and 13 shops, with a total 2,795 employees. Some 231,501 m2 of industrial and commercial space, houses, and buildings will be dismantled. The Project will relocate

10,020 m2 of public houses and/or buildings, such as a market building, clinic, school, and buildings for village administration and public use. The Project will not adversely affect any indigenous people or ethnic minorities. The preliminary cost estimate for the land acquisition

and resettlement (LAR) program is $46.36 million, with the Nantai Island Inland Creek component accounting for about 96% of the cost. The Fuzhou Municipal Land Development Center (FMLDC) will assist FUVCDC in carrying out the LAR for two inland creeks on Nantai Island. Resettlement impacts have been identified, and resettlement plans (RPs) prepared in accordance with PRC Land Administration Law and ADB's Policy on Involuntary Resettlement. The RPs provide a socioeconomic profile of affected persons (APs) and the scope of impacts, and addresses entitlements of APs to compensation, legal framework, public consultations, grievance procedures, environmental protection, rehabilitation, and budget and implementation milestones.

FMG has establish a project resettlement office to continue public information activities and respond to any questions or grievances. FMG ensured that all APs are compensated and resettled in a timely and adequate manner in accordance with the RP. FMG will prepare a resettlement completion report. FMG (as the Executing Agency) and FWECDC and FUVCDC (as the implementing agencies) will engage an

independent agency for semiannual monitoring and annual evaluation of LAR the soonest.

Due diligence report on the acquired land and resettlement for the new site for Pumpng Station No. 1 submitted. Finalized resettlement plan and due diligence for the Lianban WWTP submitted. Updated RPs for Lianban and Linpu Rivers were endorsed by Fuzhou Municipal Government and disclosed to the affected persons.

Indigenous Peoples The Project will not adversely affect any indigenous people or ethnic minorities. All project affected persons will be compensated in accordance with resettlement plans.
Stakeholder Communication, Participation, and Consultation
During Project Design Social surveys and community consultation were part of PPTA.
During Project Implementation Stakeholder consultation is an ongoing process throughout project implementation
Business Opportunities
Consulting Services About 30 person-months (pm) of international and 120 pm of domestic consulting services is proposed to support the PMO and the IAs in project implementation and capacity building to be funded under the loan. Consulting services will include (i) project management; (ii) efficient operating procedures; (iii) preventive maintenance; (iv) financial management; (v) social, resettlement and environmental monitoring; (vi) business planning and management information system development; (vii) human resource development; and (viii) corporate governance. The consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB for the engagement of domestic consultants. International consulting firms will be selected in accordance with the quality-and-cost-based selection method.
Procurement ADB-financed goods and services will be procured in accordance with ADB's Guidelines for Procurement. Equipment packages valued more than $500,000 will be undertaken through ADB's international competitive bidding (ICB) procedures, and equipment packages valued $500,000 or less will be procured following ADB's procedures for international shopping (IS). Civil works packages estimated to cost $5 million or less will be carried out under local competitive bidding (LCB) procedures acceptable to ADB, in accordance with the PRC'sTendering and Bidding Law and procurement regulations.
Responsible ADB Officer Gyongshim An
Responsible ADB Department East Asia Department
Responsible ADB Division Urban and Social Sectors Division, EARD
Executing Agencies
Fuzhou Municipal GovernmentMr. Zhongde LinLinzhongde333@126.comNo. 21 Douxi Road, Fuzhou FJ, China
Timetable
Concept Clearance 19 Jun 2001
Fact Finding 15 Apr 2004 to 30 Apr 2004
MRM 27 Jul 2004
Approval 29 Jul 2005
Last Review Mission -
PDS Creation Date 29 Nov 2006
Last PDS Update 26 Mar 2013

Loan

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 102.51 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 102.51 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

Loan 2176-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Jul 2005 23 Feb 2006 14 Sep 2006 30 Jun 2010 30 Jun 2012 19 Oct 2012
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 158.31 Cumulative Contract Awards
ADB 55.80 29 Jul 2005 50.19 0.00 100%
Counterpart 102.51 Cumulative Disbursements
Cofinancing 0.00 29 Jul 2005 50.19 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory
Title Document Type Document Date
Fuzhou Environmental Improvement Project Project/Program Completion Reports Sep 2013
Amendment to the Project Agreement for 2176-PRC: Fuzhou Environmental Improvement Project Project/Program Agreement Sep 2012
Second Amendment to the Loan Agreement for 2176-PRC: Fuzhou Environmental Improvement Project Loan Agreement (Ordinary Resources) Sep 2012
First Amendment to the Loan Agreement for 2176-PRC: Amendments to Rebate and Surcharge Provisions Loan Agreement (Ordinary Resources) Mar 2008
Jilin Water Supply and Sewerage Development Project/Program Administration Manual Jul 2006
Fuzhou Environmental Improvement Project Project/Program Administration Manual Mar 2006
Loan Agreement for Fuzhou Environmental Improvement Project Loan Agreement (Ordinary Resources) Feb 2006
Project Agreement for Fuzhou Environmental Improvement Project Project/Program Agreement Feb 2006
Fuzhou Environmental Improvement Project Reports and Recommendations of the President Jun 2005

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Fuzhou Environmental Improvement Project: 8th Semi-Annual Environmental Report (November 2011) Environmental Monitoring Reports Mar 2012
Fuzhou Environmental Improvement Project: Nantai Island Creek Rehabilitation Component - Linpu River & Lianban River Rehabilitation Works Resettlement Plans Feb 2012
Fuzhou Environmental Improvement Project: 7th Semi-Annual Environmental Report Environmental Monitoring Reports Aug 2011
Fuzhou Environmental Improvement Project: 6th Semi-Annual Environmental Report Environmental Monitoring Reports Jan 2011
Fuzhou Environmental Improvement Project: 5th Semi-Annual Environmental Report Environmental Monitoring Reports Jun 2010
Fuzhou Environmental Improvement Project: 4th Semi-Annual Environmental Report (January 2010) Environmental Monitoring Reports Jan 2010
Fuzhou Environmental Improvement Project: 3rd Semi-Annual Environmental Report Environmental Monitoring Reports Jul 2009
Fuzhou Environmental Improvement Project: Nantai Island Creek Rehabilitation Component - Puxia River Rehabilitation Works Resettlement Plans Apr 2009
Fuzhou Environmental Improvement Project: 2nd Semi-Annual Environmental Report (January 2009) Environmental Monitoring Reports Jan 2009
Fuzhou Environmental Improvement Project: Resettlement Independent Monitoring Report (July 2008) Social Monitoring Reports Dec 2008
福州环境改善项目:移 民 安 置 外 部 监 测 报 告 (二零零八年十二月) Social Monitoring Reports Dec 2008
Fuzhou Environmental Improvement Project: Nantai Island Creek Rehabilitation Component - Longjin River and Yuejin River Rehabilitation Works Resettlement Plans Aug 2008
福州环境改善项目:移 民 安 置 外 部 监 测 报 告 (二零零八年七月) Social Monitoring Reports Jul 2008
Fuzhou Environmental Improvement Project: 1st Semi-Annual Environmental Report (June 2008) Environmental Monitoring Reports Jun 2008
福州环境改善项目:移 民 安 置 外 部 监 测 报 告 (二零零七年十二月) Social Monitoring Reports Dec 2007
Fuzhou Environmental Improvement Project: Resettlement Independent Monitoring Report (July 2007) Social Monitoring Reports Jul 2007
福州环境改善项目:移 民 安 置 外 部 监 测 报 告 (二零零七年七月) Social Monitoring Reports Jul 2007
Fuzhou Environmental Improvement Project: Resettlement Independent Monitoring Report (December 2006) Social Monitoring Reports Dec 2006
Fuzhou Environmental Improvement Project: Resettlement Independent Monitoring Report (June 2006) Social Monitoring Reports Jun 2006
Fuzhou Environmental Improvement Project: Yangli WWTP Sewer Network Phase II Resettlement Plans Sep 2004
Fuzhou Environmental Improvement Project: Lianban WWTP BOT Project Resettlement Plans Sep 2004
Fuzhou Environmental Improvement Project: Lianban WWTP Sewer Network Resettlement Plans Sep 2004
Fuzhou Environmental Improvement Project: Nantai Island Inland River Rehabilitation Project Resettlement Plans Sep 2004
Fuzhou Environmental Improvement Project Summary Environmental Impact Assessments Jun 2004

Evaluation Documents

See also: Independent Evaluation

No documents found.


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