China, People's Republic of: Ningxia Integrated Ecosystem and Agricultural Development Project

Sovereign Project | 38660-023 Status: Approved


ADB is helping reverse land degradation and reduce rural poverty in western Ningxia Hui Autonomous Region of the People's Republic of China. The project aims to revive damaged ecosystems by providing sustainable livelihood programs to over 46,000 rural households. A Global Environment Facility grant will enhance the project benefits resulting from biodiversity conservation and livelihood improvement.

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Project Name Ningxia Integrated Ecosystem and Agricultural Development Project
Project Number 38660-023
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Grant 0113-PRC: Ningxia Integrated Ecosystem and Agricultural Development Project
Global Environment Facility US$ 4.55 million
Loan 2436-PRC: Ningxia Integrated Ecosystem and Agricultural Development Project
Ordinary capital resources US$ 100.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Agriculture, natural resources and rural development - Agricultural production - Irrigation - Rural water policy, institutional and capacity development - Water-based natural resources management

Gender Equity and Mainstreaming Some gender elements

The Project is aimed to improve environmental management to rehabilitate the ecosystems and increase rural incomes in the Yinchuan area. The Project's main outcome is to introduce an integrated ecosystem management (IEM) approach to provide sustainable livelihoods for the population of the project area.

The component to be financed by the Global Environment Facility (GEF) will support a multifocal approach to conserving biodiversity and combating land degradation, and will ensure that the integrated ecosystem management approach is followed to contribute to restoring the productive and protective functions of ecosystem resources.

Project Rationale and Linkage to Country/Regional Strategy

The PRC has some of the worst land degradation problems in the world, especially in the vast western region where more than 350 million people live and poverty incidence is the highest. In recent decades, the pressures of intensified use, increased population, and rapid economic growth have led to losses of vital ecosystem services, and reduced productivity of grasslands, farmlands, wetlands, forests, and mountain areas.

Programs to combat land degradation were initiated under the 9th (1996-2000) and 10th (2001-2005) five-year plans, and have resulted in some environmental improvements. However, the high cost of top-down and uncoordinated sector approaches are of concern. The root causes, such as rural poverty and alternative livelihood options to reduce activities that damage the environment, were inadequately addressed. The project area typifies problems found in many parts of the western region. Very fast economic growth in recent years, overuse of water and agrochemicals in agriculture, conversion of marginal desert-edge lands to irrigation for poor farming households, and rapid urban and industrial spread with high pollution have resulted in significant loss of vital ecosystem services and values. Reversing this trend requires strengthening the quality of the policy and regulatory framework, coordinating land and water planning and management, and expanding the role of markets in activities that are compatible with the rehabilitation of ecosystems and their sustainable future use.

Impact Improved environmental management to rehabilitate ecosystems and increase rural incomes in the project area.
Project Outcome
Description of Outcome IEM approach established to support sustainable livelihoods in the project area.
Progress Toward Outcome As of 31 Dec 2014, the overall project progress was 95% with project outcome and impact unchanged. Closing date for the project has been extended to 31 October 2015 to enhance demonstration of integrated ecosystem management by using envisaged loan savings.
Implementation Progress
Description of Project Outputs

IEM Capacity Building and Project Management: All public and private stakeholders have the capacity, regulations, and information to jointly implement IEM.

Land and Water Resource Management: Land users, public and private farmers, and NWRD implement sustainable land and water management.

Rural Livelihood Improvement: Rural households and smallholders are provided with alternative agriculture-based incomes through links with three enterprise groups.

Ecosystem Conservation: Commercial enterprises and conservation objectives are linked.

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

Integrated environment management plan for Helan Mountain Pediment Protection Region was established.

Project progress reported semiannually and PPMS was built and being maintained. The IEM data sharing mechanism has been established.

Institutional capacity has been improved substantially. Training is being delivered effectively. IEM demonstration center has been established, including the IEM information system and is expected to be in commission from December 2013.

Provincial IEM strategy and action plan for land degradation was built, including a legislation, regulatory, and policy framework. The government issued Ningxia Wetland Management Statute in 2009 following IEM principles.

Preliminary IEM data sharing mechanism has been built.

Ningxia Wetland Management Regulations following IEM principles were released.

Integrated water resource planning has been finished; part of the data has realized the sharing.

Water use was 4,480m3/ha

Agrochemical fertilizer usage decreased by 57.1% in NARB vineyard in 2011 to 630 kg/ha; " Conservation agriculture has been promoted in 3,330 ha of fodder farms.

1,799 households engaged in beef breeding, dairy produce, and grapes planting.

About 5,000 households have increased the income in Yinchuan municipality.

The data is being collected.

Yinchuan wetlands conservation area was 13,000 ha.

Number of visitors is 0.735 million.

NARB wetlands: visitor population reached 1.18 million; wetland conservation area reached 7,134 ha; yield of aquaculture was 7,017 tons.

Helan Mountain Conservation area reached 193,536 ha.

Geographical Location The project area lies in and around the oasis of Yinchuan Plain, including the piedmont zone and the Helan mountains, and covers about 3,655 km2 including three districts (Jinfeng, Xingqing, and Xixia), two counties (Helan and Yongning), and Yinchuan City
Safeguard Categories
Environment A
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

The project investments have a range of positive impacts on the environment through changes in land, water, wetlands, and conservation management practices. The project was classified as Category A for environment impacts due to potential significant impacts from construction of Xixia Canal. The summary environment impact assessment (SEIA) was carried out at appraisal.

A scope change was approved in March 2011, under which the subcomponent of Xixia Canal construction was cancelled. Activities of six Category B subcomponents were modified and one Category B subcomponent will be added. Upon the scope change, the project will comprise 11 Category B and five Category C subcomponents. The overall environmental benefits of the project are expected to be significant. With the application of the recommended mitigation measures, the potential negative environmental impacts associated with the project can be reduced to the point that no significant residual environmental impacts will occur.

Involuntary Resettlement

The project was categorized B for involuntary resettlement (IP) impact due to one component involving land acquisition and resettlement, which is Xixia Canal construction and associated irrigation rehabilitation. According to the original design, the extension part of Xixia Canal will serve for the 15,546 ha irrigated areas. In this area, the subproject will repair the irrigated facilities, through lining and improving the irrigation channels and ditches, it will reduce the loss of water seepage and the impact to the salinization of farming land, and transform the pumping water system with high cost to the economical gravity irrigation system, meanwhile enhance the irrigation efficiency and water utilization rate. The resettlement plan was prepared and disclosed on the ADB website in May 2007.

A scope change was approved in March 2011, under which the proposed Xixia canal and irrigation rehabilitation was removed from the ADB financed project scope due to adjustments in the government water program. With the cancellation of the Xixia canal and irrigation rehabilitation, the anticipated IP impacts from the component will no more exist. The due diligence was undertaken and confirmed that the project will not induce any land acquisition and resettlement impacts. The project IR impacts has been re-categorized as C.

Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The project design process was linked and extended the ongoing OP12 PRC-GEF Capacity Building to Combat Land Degradation Projectc and its development of a Ningxia Land Degradation Strategy and Action Plan using local experts working in a multistakeholder, and multisector planning procedure. For the design of the Project, consultation has taken place with stakeholders, beneficiaries, and directly affected people, and will continue during implementation. A participatory and consultative methodology was adopted to undertake the social analysis and rural livelihood survey during the project preparatory technical assistance. It involved (i) a formal questionnaire survey with 270 households; (ii) discussions with project stakeholders; (iii) a series of stakeholder workshops with the four subborrowers; and (iv) interviews with key informants in rural communities, key Government staff and nongovernment organizations, ethnic minorities, and women. Detailed discussions were maintained using both sector and cross-sector working groups that included the provincial project management office (PPMO) and its expert groups, project implementing agencies and associated state-owned enterprises, design institutes, academics, and safeguard agencies including environment and poverty reduction officials under the leadership of the PPMO. The working groups' findings were collectively discussed and reviewed through a series of stakeholder workshops.
During Project Implementation Consultations have been carried out at various levels.
Business Opportunities
Consulting Services

With the approved change in scope, the consulting services have been re-grouped into three packages. The indicative working scope of each package and implementation arrangement was agreed as follows:

(i) Package A: Grape Wine Strategy Development. The purpose of the study is to develop a strategy plan for the grape wine sector in Ningxia, particularly, Helan Mountains eastern piedmont area. The indicative allocation for the consulting services is about $150,000 under the ADB loan. The NARB will coordinate the study, which is expected to start in June 2011 and complete by end of 2011. The consultants will be recruited on individual basis. The ADB will assist in the recruitment process while NARB will be responsible for the contract management.

(ii) Package B: IEM Project Management. The consulting services will support project management to PMO over a two and a half year period to ensure smooth procurement, contract management, and effective development and maintenance of the project performance monitoring system (PPMS) and reporting frameworks. The funds allocation for Package B is about $138,000 under GEF. The consultants will be recruited on individual basis. The ADB will assist in the recruitment process and the PMO will be responsible for the contract management.

(iii) Package C: IEM Training of Trainers Program. The engagement of consulting services will develop the core resources for the supply of IEM related training service from the IEM training and demonstration center on the eastern piedmont to be established under the project. The indicative expertise inputs include IEM, soils and conservation agriculture, dairy and beef livestock, water-use efficiency and irrigation management, wetlands and biodiversity conservation, grape and vineyard management, horticulture, agronomist. The funds allocation for Package C is about $814,000 under GEF. The consulting services will be recruited through a consulting firm as agreed in the procurement plan and is expected to start work in the early of 2012. The PMO will be responsible for the recruitment and the consultant management.


Goods, related services, and civil works financed partly or wholly by ADB and GEF will be procured in accordance with ADB's Procurement Guidelines (2007, as amended from time to time) and the procurement plan described in Appendix 7, which will be reviewed and updated on an annual basis. Contract packages for goods and related services exceeding $1,000,000 will be awarded on the basis of international competitive bidding or limited international bidding, while those costing between $100,000 and $1 million will be awarded through national competitive bidding. Contracts below $100,000 will be procured through shopping. For contracts below $10,000, direct contracting can be used. Civil works contracts costing more than

$10 million will be procured using international competitive bidding, while those valued at the equivalent of $10 million or less can be procured using national competitive bidding procedures acceptable to ADB. Small-scale works and contracts in rural areas may be awarded using community participation procedures. The selection of suppliers and/or contractors and award of contracts will be subject to ADB approval. The relevant sections of ADB's Anticorruption Policy (1998, as amended to date) will be included in all procurement documents and contracts. A procurement plan setting out an indicative list of all procurement packages and the procurement methods is provided in Appendix 7 of the RRP.

Three PPMO staff will be assigned procurement management activities, including monitoring of the procurement plan and coordinating procurement activities under the Project. Measures to strengthen the capacity of PPMO staff in undertaking procurement activities will be implemented, including the engagement of project management consultants, financed by the GEF grant, to provide training on procurement and other aspects of project implementation. PPMO staff will be nominated to attend ADB-sponsored courses and seminars on procurement and project implementation. NFD will appoint a procurement agent to help with procurement and to ensure compliance with ADB policies and procedures, on terms and conditions satisfactory to ADB.

Responsible ADB Officer Zhiming Niu
Responsible ADB Department East Asia Department
Responsible ADB Division PRC Resident Mission
Executing Agencies
Ningxia Department of Finance
Mme. Ma Minxia
No.416 Jiefang Xijie, Yinchuan, Ningxia 750001, China
Concept Clearance 10 Aug 2006
Fact Finding 20 Nov 2006 to 06 Dec 2006
MRM 02 Apr 2007
Approval 29 Aug 2008
Last Review Mission -
PDS Creation Date 10 May 2006
Last PDS Update 10 Sep 2015

Grant 0113-PRC

Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 121.01 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 116.47 Cumulative Disbursements
Cofinancing 4.55 - 0.00 0.00 %

Loan 2436-PRC

Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Aug 2008 06 Mar 2009 03 Jun 2009 30 Apr 2015 30 Apr 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 100.00 Cumulative Contract Awards
ADB 100.00 29 Aug 2008 95.86 0.00 96%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 29 Aug 2008 96.71 0.00 97%

Safeguard Documents

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Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents

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