China, People's Republic of: Qingdao Water Resources and Wetland Protection

Sovereign Project | 40017-013


ADB is helping revive key water sources and wetlands in and around Qingdao municipality in eastern People's Republic of China. The project will integrate water and ecosystem management and strengthen pollution control to protect the coastal wetlands of Jiaozhou Bay, the most important marine ecosystem in the area. It will also improve wastewater, sewerage, and flood management facilities.

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Project Name Qingdao Water Resources and Wetland Protection
Project Number 40017-013
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 2494-PRC: Qingdao Water Resources and Wetland Protection
Ordinary capital resources US$ 45.00 million
TA 7219-PRC: Enabling the Protection of Jiaozhou Bay Water Quality and Wetland Ecosystem
Technical Assistance Special Fund US$ 350,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Agriculture, natural resources and rural development - Water-based natural resources management

Water and other urban infrastructure and services - Urban flood protection - Urban sewerage

Gender Equity and Mainstreaming Gender equity
Description Most of the water management problems in the People's Republic of China (PRC), particularly for coastal cities, are the result of a fragmented approach to development. There is a need to move towards a more integrated management approach whereby the different tasks associated with water management (water supply, wastewater management, drainage) and ecosystem rehabilitation are managed together in close coordination with land use planning, coastal zone management and water resource management, and pollution control at the river basin level. To reduce pollution in the country's coastal waters and sustain ecosystems, a number of specific actions are needed, including (i) adopting a holistic approach to water management in river basins and coastal zones, (ii) reducing land-based pollution sources particularly industrial and urban point sources, and (iii) continuing institutional and financial management reforms to facilitate sustainable environment management.
Project Rationale and Linkage to Country/Regional Strategy The coastal wetlands of Jiaozhou Bay surrounded by Qingdao Municipality (including the city of Jiazhou situated at the head of the Bay) are vital, representing the most important marine ecosystem of the Qingdao coastal region and the Shandong Peninsula. They provide breeding grounds for many types of fish and shellfish, a resting place for migratory birds, as well as maintaining coastal biological diversity. In addition, they play a key role in absorbing excessive nutrients from land-based activities, before they enter the waters of the bay proper, thereby helping to prevent eutrophication in the bay. Finally, the wetlands play a key role in flood management and coastal protection which will become of increasing significance to coastal cities as sea levels continue to rise as a result of global warming. Since the 1950s, the coastal wetlands around Jiaozhou Bay have been severely impacted by human activities, notably in relation to excessive pollution generation; it is estimated since 1950 that the wetland area has shrunk by 30%. Moreover, the area of natural wetlands has decreased with artificial wetlands such as salt and aquaculture ponds doubling in area. These observations indicate that effective upstream environmental and water resources management (reducing pollution loads, preserving river regimes) together with effective coastal zone management zoning is required to reduce further wetlands loss and degradation, and thereby ensuring the preservation of the Jiaozhou Bay environment.
Impact Improved water quality in the Jiaozhou Bay area
Project Outcome
Description of Outcome Improved condition of water resources and environment in Jiaozhou City and the downstream wetlands area
Progress Toward Outcome To be assessed at project completion.
Implementation Progress
Description of Project Outputs

Major river courses rehabilitated/upgraded

Flood retention facilities improved

Urban storm drainage network installed/upgraded

Urban wastewater drainage network upgraded

Shaohai Lake and Jiaozhou Bay ecosystem protection measures developed

Water resources and flood management strengthened in Jiaozhou

Environmental management and pollution control strengthened in Jiaozhou

Project management support provided

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

A total of 11.2 km of river course have been upgraded/rehabilitated. 20 km of wastewater drainage pipelines have been installed. The Erli River flood retention facilities have been upgraded from 0.2 million m3 to 0.8 million m3. The Shaohai Lake artificial wetlands have been constructed by a build-and-transfer (BT) project. Small artificial wetlands were constructed along the downstream of Yunxi River.

10 PMO staff trained on environmental management. Broad reaching public consultation, education and awareness raising activities have been conducted regularly. Wastewater services are corporatized with private sector participation. Environmental monitoring is carried out regularly. Wastewater tariffs are not reformed yet.

The project has lagged behind schedule mainly due to (i) the proposed new sub-projects to substitute for the original sub-projects that were financed by domestic funds have not been pushed through the domestic approval procedure; (ii) insufficient budget for some remaining river rehabilitation activities; (iii) organizational and personnel variations in PMO; and (iv) delay in implementing some non-structural activities for integrated water and ecosystem management. Minor changes to the project including new sub-projects, reallocation of loan proceeds, etc. are expected to be processed in 2015. The loan has been extended from 30 September 2014 to 31 March 2016.

Geographical Location Qingdao Municipality Government (QMG) and Jiaozhou City Government (JCG)
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations have been held with government agencies, including National Development and Reform Commission, Ministry of Finance, Ministry of Environmental Protection, Qingdao Development and Reform Commission, and Qingdao Finance Bureau. Various meetings have been held with senior representatives (Vice Mayor) of JCG, and relevant Jiaozhou government agencies. The poverty and social assessment (PSA) utilized a number of participation processes to solicit the input of a cross section of stakeholders. Stakeholder analysis was conducted during the PSA. Various methods and approaches have been conducted, including 400 households sampling socioeconomic survey, stakeholder consultation meetings and workshops, 8 focus group discussion, and 28 key informant interviews. The main stakeholder groups include women, poor, enterprise owner, and local decision makers including relevant government agencies at county/committee levels, project management office, project implementation agencies, and private sector. Formulation of the Short Resettlement Plan has utilized separate socio-economic surveys, community meetings, opinion surveys, and specific impact studies in May 2008.
During Project Implementation

Public consultation and participation, which have been key elements of the project design, will continue during project implementation, monitoring, and evaluation. Ongoing consultations also will be carried out by the PMO to (i) meet the evolving needs and expectations of the users, (ii) increase the awareness of the public about the benefits of the

Project, (iii) encourage the active involvement of local communities to maximize their support for the Project, (iv) promote environmental protection, and (v) raise the social acceptance of tariff increases.

Business Opportunities
Consulting Services About 31 person-months of international consulting and 100 person-months of national consulting, to be funded under the Project, will be required for project management support and implementation of non-structural measures. Consulting services will be provided in the following specific areas: (i) development of an integrated information system for management of drainage and wastewater assets in Jiaozhou, (ii) ecological upgrading of the Shaohai Lake wetlands, (iii) construction supervision and quality control, (iv) financial management and corporate governance, and (v) operation and maintenance improvements. The international consultants will also provide training and capacity building in wastewater management and treatment planning, industrial pollution control, hydrological and hydraulic analysis, storm water source control financial management, and environmental monitoring and management. Contract for consulting services will be awarded to consulting firms using the quality-and cost-based selection procedures (80:20), in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time).
Procurement All procurement of goods and works shall be carried out in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). Contracts for goods estimated to exceed $1.0 million and contracts for works estimated to exceed $10.0 million shall be procured using international competitive bidding (ICB) procedures. Contracts for goods and works estimated to cost equal or less than the above ICB values but more than $100,000 shall be procured through national competitive bidding procedures in accordance with the PRC Tendering and Bidding Law (1999), subject to modifications agreed with ADB. Contracts for goods and works estimated to cost $100,000 or less shall be procured using shopping procedures. The relevant sections of ADB's Anticorruption Policy (1998 as amended to date) will be included in all procurement documents and contracts.
Responsible ADB Officer Yoshiaki Kobayashi
Responsible ADB Department East Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, EARD
Executing Agencies
Jiaozhou City Government
Jiaozhou Development and Reform Bureau
The 7th Floor, City Administration Bldg,
Beijing Road, New Town District
Concept Clearance 24 Jul 2008
Fact Finding 28 Jul 2008 to 02 Aug 2008
MRM 29 Aug 2008
Approval 17 Dec 2008
Last Review Mission -
PDS Creation Date 19 Feb 2008
Last PDS Update 11 Sep 2015

Loan 2494-PRC

Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 Dec 2008 25 May 2009 03 Sep 2009 30 Sep 2014 31 Mar 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 105.80 Cumulative Contract Awards
ADB 45.00 17 Dec 2008 24.52 0.00 54%
Counterpart 60.80 Cumulative Disbursements
Cofinancing 0.00 17 Dec 2008 23.94 0.00 53%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory Satisfactory Satisfactory

TA 7219-PRC

Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 Dec 2008 27 Jan 2009 27 Jan 2009 31 Jul 2010 30 Sep 2012 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
350,000.00 0.00 250,000.00 0.00 0.00 0.00 600,000.00 17 Dec 2008 697,805.25
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory Satisfactory Satisfactory

Evaluation Documents

See also: Independent Evaluation

No documents found.

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