China, People's Republic of: Inner Mongolia Autonomous Region Environmental Improvement

Sovereign Project | 39019-013 Status: Approved


ADB is helping establish safe and efficient gas and heating supply and wastewater treatment facilities in the Inner Mongolia Autonomous Region, the People's Republic of China. The project will reduce pollution and conserve energy and water resources in Wuhai and Bayannur municipalities, improving the quality of life for about 2.2 million people.

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Procurement Documents

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Project Name Inner Mongolia Autonomous Region Environmental Improvement
Project Number 39019-013
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2260-PRC: Inner Mongolia Autonomous Region Environmental Improvement
Ordinary capital resources US$ 120.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Energy - Energy efficiency and conservation

Gender Equity and Mainstreaming Some gender elements
Description The Project will improve the environment by reducing atmospheric and water pollution in IMAR. This will be achieved by establishing an efficient, safe, and reliable gas and heating supply and wateswater treatment facilities to protect water resources, which will conserve energy and water resources in the project areas.
Project Rationale and Linkage to Country/Regional Strategy This was included in the Country Strategy and Program Update (2006-2008) which was circulated on 8 August 2005.
Impact Improved environment due to reduced atmospheric and water pollution benefiting the poor household in Wuhai and Bayannur Municipalities
Project Outcome
Description of Outcome Expanded efficient gas and heating supply and wastewater treatment systems that conserve energy and water resources in Wuhai and Bayannur municipalities
Progress Toward Outcome The loan closing date has been extended to 31 January 2016 due to the delay in the procurement of heating pipeline system under Hanjinghouqi District Heating subcomponent. A reallocation of loan proceeds was approved to reallocate savings from IDC to equipment category to finance some procurement packages that are facing cost overrun.
Implementation Progress
Description of Project Outputs

Improved district heating systems in Wuhai and Bayannur Municipalities

Gas transmission and distribution systems in Wuhai and Bayannur Municipalities

Wastewater treatment capacity in Bayannur Municipality

Institutional Strengthening and capacity building

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

Procurement and construction for all subprojects except Hanjinghouqi district heating subcomponent have been completed. Hanjinghouqi district heating subcomponent is planned to complete by January 2016.

The Wulatehouqi wastewater treatment plant has been completed without utilizing ADB fund. The Wulateqianqi wastewater treatment plant was cancelled from the original project scope.

Institutional strengthening and capacity development plan is under implementation

Geographical Location Inner Mongolia Autonomous Region, PRC
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

The project has substantial environmental benefit resulting from energy efficiency improvements. Potential adverse impacts assessed during project preparation are temporary and localized during construction.

GIMAR will ensure that any adverse environmental impacts arising from construction and operation of the proect facilities will be minimized by implementing the mitigation measures as identified in SIEE.

Involuntary Resettlement The project requires 822 mu of land acquisition and 10,296 mu of occupied temporarily, affecting 133 people permanently and 177 people temporarily. GIMAR, PMO, and the PIAs will ensure that all those affected are compensated in a timely manner and resettled in accordance with the Resettlement Plan.
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services

International and domestic consultants will be engaged to assist the GIMAR and the PIAs with (i) project design and engineering, (ii) procurement, (iii) construction supervision related to equipment and materials procured under ADB financing, (iv) project management, and (v) monitoring the project's impact and reporting to ADB and the GIMAR.

Implementation supervision consulting services - About 16 person months of international and 80 person months of domestic consulting services will be required. International and domestic consultants will be recruited for institutional reforms and corporate governance improvement subcomponent of the Project, which includes institutional training and a study to implement the restructuring of heating and gas tariff in project sites. About 8 person months of international consulting services and about 38 person months of domestic consulting services will be required.

Procurement All goods and works under the Project to be wholly or partly financed by ADB will be procured in accordance with ADB's Procurement Guidelines. Civil works contracts costing $10 million or more and each supply contract costing $1 million or more financed by ADB will be procrued through international competitive bidding procedure using ADB standard bidding documents. Supply contract packages costing less than $100,000 will be procured using international shopping procedure. Civil works contracts costing less than $10 milllion will be procured through national competitive bidding procedure.
Responsible ADB Officer Shigeru Yamamura
Responsible ADB Department East Asia Department
Responsible ADB Division Energy Division, EARD
Executing Agencies
Gov't of Inner Mongolia Autonomous Reg-Fin Bureau
Mr. Li Ze
No.19 Chilechuan Street, Hohhot,
Inner Mongolia Autonomous Region,
The People's Republic of China, 010098
Concept Clearance 08 Aug 2005
Fact Finding 07 Nov 2005 to 25 Nov 2005
MRM 15 Mar 2006
Approval 29 Sep 2006
Last Review Mission -
PDS Creation Date 24 Nov 2006
Last PDS Update 14 Sep 2015

Loan 2260-PRC

Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Sep 2006 16 May 2007 24 Sep 2007 31 Dec 2011 31 Jan 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 330.00 Cumulative Contract Awards
ADB 120.00 29 Sep 2006 113.33 0.00 94%
Counterpart 210.00 Cumulative Disbursements
Cofinancing 0.00 29 Sep 2006 116.48 0.00 97%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory

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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Related Publications

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