China, People's Republic of: Kunming Qingshuihai Water Supply Project (formerly Kunming Qingshuihai Water Supply, Water Source and Environment Management Project)

Sovereign Project | 40052-013 Status: Closed


ADB is helping the People's Republic of China improve the safety and reliability of water supply in Kunming, the capital city of Yunnan province. The project involves improving water resources management, water conveyance systems, and institutional capacity and project management. It will help ensure better raw water quantity and quality in the main city and the new development zones.

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Project Name Kunming Qingshuihai Water Supply Project (formerly Kunming Qingshuihai Water Supply, Water Source and Environment Management Project)
Project Number 40052-013
Country China, People's Republic of
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2388-PRC: Kunming Qingshuihai Water Supply Project (formerly Kunming Qingshuihai Water Supply, Water Source and Environment Management Project)
Ordinary capital resources US$ 80.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Water and other urban infrastructure and services - Urban policy, institutional and capacity development - Urban water supply

Gender Equity and Mainstreaming Some gender elements

The impact of the Project will be improved urban environment, public health, and quality of life for urban residents and sustained economic development in the city, through the provision of safe and reliable water supply. The outcome of the Project by 2012 is the provision of 104 million cubic meters of water annually from Qingshuihai Lake, some 100 kilometes north of Kunming, to Kunming city's New Airport Economic Zone (62 million cubic meters per year), the Eastern Development Zone (35 million cubic meters per year), Xundian County (7 million cubic meters per year), and parts of Kunming city. About 6.4 million residents in these areas are expected to benefit from the 24-hour water supply expected to be assured by the Project.

The Project consists of 3 components broken down into 12 subcomponents and 35 activities, which provide fundamental support to Kunming's 11the FYP and beyond.

(i) Development of water resources and increasing water storage capacity. New dams and reservoirs will be constructed to store water from the surrounding catchments of Banqiao River and Shiqiao River, heighten Xintianhe reservoir, construct diversion works to access water from Tabizi Dragon Pool and channel the water from these sources to existing Qingshuihai lake, which will be lengthened to increase its storage capacity.

(ii) Conveyance of water resources for urban water supply. The

conveyance system will take water from Qingshuhai Lake to Tongxin Gate, and then transfer the water to the New Airport Economic Zone through Jingzhongshan Reservoirm and to the Easter Development Zone through Songhuaba Reservoir.

(iii) Institutional development and capacity building. The component will strengthen the capacity of the project management office (PMO) and implementing agency (IA) in project management and implementation of environmental protection and watershed management measures. Key institutional and management strategies and enforcement of regulations in protecting environment will be incorporated in project design to ensure the long-term sustainability of water availability provided under the Project.

The Project outputs include (i) increased raw water supply with water quality sustained at Class II from 2015; (ii) sustained level of 24 hour water service and quality, and prevention of subsequent shortages, in Kunming urban area as demand increases; (iii) improved overall public satisfaction with water supply services; (iv) more efficient implementing agency on water resources development, operation and management; and (vi) increased employment opportunities with the creation of about 4,200 temporary unskilled jobs each year for 5 years and full-time permanent jobs by 2012.

Project Rationale and Linkage to Country/Regional Strategy

KMG has accorded priority in its 11th Five-Year Program to addressing water scarcity through policy reform, increased investment, and improved water and urban infrastructure management. KMG's strategy focuses on (i) protecting drinking water sources by controlling upstream water pollution, industrial pollution, and other point and nonpoint sources in urban areas; (ii) support to watershed protection and management; (iii) introducing water and energy efficient technologies and operations; and (iv) using appropriate pricing mechanisms to encourage water conservation and generate the necessary funds for operation, maintenance, and investment. In line with the Government's economic and enterprise reform programs, KMG has taken steps to ensure that water supply and wastewater projects are financially sustainable and capable of cost recovery.

The Project will address the critical water requirements of KMG beyond 2012. The Project will provide 111 million cubic meters (m3) of water annually to meet the demand of Kunming city, 104 million m3 for EDZ and NADZ, and 7 million m3 for Xundian County from 2012. In both zones, residents currently depend largely on water from springs and wells to supply water to their homes by village-level systems for domestic use.

Impact Improved urban environment, public health, and quality of life for urban residents in Kunming city and new development zones
Project Outcome
Description of Outcome Improved provision of more efficient, reliable, affordable, safe, and clean raw water supply.
Progress Toward Outcome To be assessed during project completion review mission in 2014.
Implementation Progress
Description of Project Outputs

Reservoirs Operational: New Shiqiaohe and Banqiaohe reservoirs .

Reservoirs Operational: Rehabilitated Xintianhe reservoir.

Reservoirs Operational: Qingshuihai reservoir.

Reservoirs Operational: Tabizi dragon pool diversion weir.

Conveyance systems are operational: Shiqiaohe and Banqiaohe to Qingshuihai.

Conveyance systems are operational: Tabizi Longtan to Qingshuihai.

Conveyance systems are operational: Qingshuihai to Tongxin gate.

Conveyance systems are operational: Tongxin gate to Jinzhongshan reservoir.

Project management and capacity development.

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

The overall project progress is 100% as of 30 June 2013. The implementation is satisfactory. The dams/water reservoirs and conveyance systems were put into trial operation on 1 April 2012.

(A) Water Resources Development. There are 4 contract packages under this component and as of 30 June 2013, physical progress was estimated at 100%. The construction of transit dam in Qingshuihai reservoir has been completed. Four dams of Banqiaohe, Shiqiaohe, Xintianhe and Jinzhongshan are completed and were put into commissioning on 1 April 2012, about 9 months ahead of original physical completion date.

(B) Water Conveyance Systems. The water conveyance system is about 72.8 km comprising of tunnel and other structures between reservoirs. The constructions of 25 tunnels have been completed and connected.

(C) Capacity Building. The capacity building activities to which the consultants provided technical support included training/workshops on financial management, environmental safeguard, social safeguard, water quality online monitoring and corporate planning, and overseas study tours to Australia and Europe on integrated watershed management, water resource protection, water treatment technologies, water conservation, corporate planning and tariff setting.

Geographical Location Kunming City
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects

The Project will (i) relieve the water supply pressure in Kunming city, (ii) save water by replacing inefficient groundwater wells, (iii) have positive effects on economic development of Kunming, (iv) improve health status by supplying clean water, (v) provide temporary and permanent jobs during the construction and operation period, and (vi) benefit the ethnic minority. It also concludes that various existing and potential water users have been considered and will not be affected significantly. The ecological impacts on Jinshajiang and Xiaojiang rivers will be minimal since the proportion of water transferred from the Xiaojiang will be well below the globally established Water Resource Development Indicator for river basins in the Project, at 11.78% of the Xiaojiang and just 0.08% of the average annual discharge in the Jinshajiang. Environmental impacts during construction on air, water, and the acoustic environment will be temporary and localized, and if proper mitigation measures are implemented, the impacts on sensitive receptors can be minimized. The implementation of the EMP and soil erosion prevention plan will mitigate the construction-related impacts, especially in the 65 spoil disposal sites. Environmental flows, an adaptive management plan for riparian releases, and further survey on water use and in-stream ecology in the downstream reaches of Xiaojiang River will mitigate the downstream impacts. Indirect impacts will be mitigated through additional wastewater collection and treatment capacity to be installed in the NADZ and EDZ to prevent additional untreated wastewater flows returning into the environment, in particular into Dianchi Lake.

The summary EIA complies with the PRC's environmental policy, and ADB's Environment Policy (2002) and Environmental Assessment Guidelines.21 It concludes that the Project will have substantial positive environmental and socioeconomic benefits, and provide lasting benefits to assist poverty reduction. The Project will result in (i) contribution to Kunming's water supply for residential and industrial needs in new development zones; (ii) clean and safe drinking water for project beneficiaries; (iii) disproportionately more benefits for the poor in the form of improved access to safe drinking water supply, given that they are less able to afford bottled or boiled water; (iv) positive health implications for all through reduced risk of contaminated water supply; (v) a reduction in demand for overstressed groundwater resources in Kunming city area; and (vi) strengthening expansion of water conservation and water reuse programs. The summary EIA and EMP are in supplementary Appendix N.

Involuntary Resettlement KMG through the relevant local governments and KWSG, shall ensure that the RP is implemented promptly and efficiently in accordance with its terms, all applicable PRC laws and regulations, and ADB's Involuntary Resettlement Policy (1995). KMG shall: (i) ensure that in the event of changes in the detailed design resulting in land acquisition and resettlement impacts, no civil works contract is awarded under the relevant component unless the RP has been updated and such updated RP is submitted to ADB for its concurrence prior to award of any related civil works, and disclosed to APs in accordance with ADB's Involuntary Resettlement Policy; (ii) cause KWSG to prepare and implement resettlement plans for the associated facilities, listed in the resettlement framework in accordance with ADB's Involuntary Resettlement Policy; and (iii) ensure that any activities recommended under an action plan to be prepared by KMG to ensure proper environment and water quality protection, which are likely to trigger ADB's Involuntary Resettlement Policy, meet compliance requirements, and appropriate resettlement planning documents are prepared.
Indigenous Peoples KMG shall ensure that an appropriate indigenous people's development plan or framework for the ethnic minorities in the water catchment areas affected by the future action plan for the protection of water resources/catchment areas is prepared accordingly.
Stakeholder Communication, Participation, and Consultation
During Project Design Yunnan Provincial Government, Kunming Municipal Government, and the Implementing Agency were involved in identifying and conceptualizing the Project. Preparation of the Project is being led by the Kunming Development and Reform Commission (KDRC) and the Kunming Water Resources Bureau (KWRB) and the Implementing Agency. The public will be consulted through environmental consultation workshops, household survey questionnaires and public hearing meetings.
During Project Implementation Consultations were carried out among stakeholders.
Business Opportunities
Consulting Services

Provision has been made for about 18 person-months of international and 72 person-months of domestic consulting services to be funded through the Project to support the PMO and IA in the initial start-up and project implementation and management and capacity building.

The scope and extent of consulting services will cover (i) project management and construction supervision, (ii) set up of financial management and project performance management system (PPMS), (iii) safeguards management and monitoring, (iv) corporate and business planning, (v) dam and reservoir operation, safety and management, and (vi) online water quality monitoring.

The international consulting firm will be recruited in accordance with the Guidelines on the Use of Consultants by ADB and its Borrowers using the quality and cost-based selection method and the full technical proposal procedures.

Procurement The procurement of goods and services to be financed under the ADB loan will be undertaken in accordance with ADB's Procurement Guidelines. Civil works contracts valued over $10 million and contracts for goods and related services above $1 million would follow ADB procedures for international competitive bidding (ICB). Civil works contracts valued at $10 million or less and contracts for goods and related services at $1 million or less will be procured following national competitive bidding (NCB) procedures in accordance with the PRC Tendering and Bidding Law and respective procurement regulations acceptable to ADB; packages for goods and related services valued at $100,000 and less will be procured through shopping procedures.
Responsible ADB Officer Lan Wang
Responsible ADB Department East Asia Department
Responsible ADB Division PRC Resident Mission
Executing Agencies
Kunming Municipal Government
Mr. Liu Shouhua
284 Huang Cheng Bei Road
Kunming 650231
Yunnan, PRC
Concept Clearance 11 May 2007
Fact Finding 03 May 2007 to 22 May 2007
MRM 29 Jun 2007
Approval 12 Dec 2007
Last Review Mission -
PDS Creation Date 04 Apr 2006
Last PDS Update 23 Sep 2013

Loan 2388-PRC

Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Dec 2007 26 Mar 2008 25 Jun 2008 30 Jun 2013 - 06 Nov 2013
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 156.80 Cumulative Contract Awards
ADB 80.00 12 Dec 2007 80.00 0.00 100%
Counterpart 76.80 Cumulative Disbursements
Cofinancing 0.00 12 Dec 2007 80.00 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - Satisfactory

Safeguard Documents

See also: Safeguards

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.

Title Document Type Document Date
昆明市清水海供水及水源环境管理项目引水工程: 移民安置生活水平第七次跟踪调查 Social Monitoring Reports Oct 2013
Kunming Qingshuihai Water Supply Project: Environmental Monitoring Report (August 2012 - June 2013) Environmental Monitoring Reports Jul 2013
Kunming Qingshuihai Water Supply Project: The Fifth Monitoring and Evaluation Report on Ethnic Minority Development Plan Social Monitoring Reports May 2013
Kunming Qingshuihai Water Supply Project: Environmental Monitoring Report (January-July 2012) Environmental Monitoring Reports Jul 2012
Kunming Qingshuihai Water Supply Project: The Fourth Monitoring and Evaluation Report on Ethnic Minority Development Plan Social Monitoring Reports May 2012
Kunming Qingshuihai Water Supply Project: The 6th External Resettlement Monitoring Report Social Monitoring Reports May 2012
Kunming Qingshuihai Water Supply Project: Environmental Monitoring Report – 2011 Annual Report Environmental Monitoring Reports Feb 2012
Kunming Qingshuihai Water Supply Project: 5th External Resettlement Monitoring Report Social Monitoring Reports Mar 2011
Kunming Qingshuihai Water Supply Project: Environmental Monitoring Report (June-October 2010) Environmental Monitoring Reports Dec 2010
Kunming Qingshuihai Water Supply Project: The 4th External Resettlement Monitoring Report Social Monitoring Reports May 2010
Kunming Qingshuihai Water Supply Project: The 3rd External Resettlement Monitoring Report Social Monitoring Reports Oct 2009
Kunming Qingshuihai Water Supply Project Resettlement Plans Feb 2009
Kunming Qingshuihai Water Supply Project Resettlement Plans Nov 2007
Kunming Qingshuihai Water Supply Project Indigenous Peoples Plans/Indigenous Peoples Development Plans Aug 2007

Evaluation Documents

See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

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