China, People's Republic of: Hebei Small Cities and Towns Development Demonstration Sector Project

Sovereign Project | 40641-013

Summary

The impact of the Project is sustained socioeconomic growth and improved health and living conditions in small cities and towns in Hebei province. The outocme of the Project is improved infrastructure, environmental protection, and employment generation in small cities and towns in Hebei province.

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Project Name Hebei Small Cities and Towns Development Demonstration Sector Project
Project Number 40641-013
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Grant 0171-PRC: Hebei Small Cities and Towns Development Demonstration Sector Project
Water Financing Facility - Multidonor TF US$ 250,000.00
Loan 2574-PRC: Hebei Small Cities and Towns Development Demonstration Sector Project
Ordinary capital resources US$ 100.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Sector / Subsector

Energy - Energy utility services

Water and other urban infrastructure and services - Urban policy, institutional and capacity development - Urban sewerage - Urban solid waste management - Urban water supply

Gender Equity and Mainstreaming Some gender elements
Description

The impact of the Project is sustained socioeconomic growth and improved health and living conditions in small cities and towns in Hebei province. The outocme of the Project is improved infrastructure, environmental protection, and employment generation in small cities and towns in Hebei province.

The proposed Project focuses on supporting sustainable urban development and consist of a number of sector interventions primarily targeted to support industrial development, tourism, job creation, and environmental protection. The main sectors are water and wastewater, solid waste management, upgrading and greening of rivers, and district heating. The subsectors involve (i) increases in the capacity to supply potable water and coverage of distribution networks, and provision of sewerage systems with associated wastewater treatment facilities; (ii) river and lake improvement works to reduce the risk of seasonal flooding and increase the capacity to impound water for industrial, irrigation, and other uses; (iii) provision of modern solid waste collection equipment, development of engineered waste disposal sites, and strengthening of operational management; and (iv) provision of centralized heating plants and the associated heat distribution networks.

Detailed component proposals that fully support the planning strategy and sector goals are being developed for the first group of cities and towns in each province.

The Project will seek to develop approaches and solutions to problems that can be replicated in urban centers throughout the province and may be used to demonstrate to other provinces across the PRC how to formulate planning strategies and implement programs in support of structured development of small cities and towns.

Project Rationale and Linkage to Country/Regional Strategy The Government of the PRC is committed to developing small cities and towns as a way to foster economic growth, generate employment, and narrow the rural-urban income gap. The growth of small cities and towns creates economic opportunities for the rural poor, who are attracted to alternative incomes in urban areas. This is the key to realizing the PRC's vision of a harmonious society, in which the benefits of economic growth are shared more equitably. The PRC's 11th Five-Year Plan (FYP) 2006-2010 identifies small city and town development as a means to provide a higher standard of living to rural migrants through improved basic urban infrastructure services. Building on the conclusions of the 2004 ADB-financed Town-Based Urbanization Strategy Study, the national town development policy calls for strengthening physical and economic linkages between major cities in metropolitan areas or development corridors and the smaller settlements at their periphery. Hebei's industrial structure is dominated by traditional capital intensive resource-processing industries that are state owned, generate limited employment, and are heavy polluters. It has remained a largely underdeveloped province, with limited economic, social, technological, or political linkages with Beijing and Tianjin, despite proximity to these major cities. Hebei suffers from undeveloped urban-rural linkages, underinvestment, weak urban management, and significant deterioration of the natural environment, including the depletion of water resources. The challenge is to improve infrastructure service delivery, safeguard the environment, and improve local living conditions to achieve sustainable development that balances economic growth, social advancement, and environmental recovery. Addressing these challenges will require integrated and coordinated policy and infrastructure interventions in various sectors. Hebei's Social and Economic Development 11th FYP 2006-2010 calls for developing a more balanced urban system through the growth of medium-sized cities that can serve as economic centers for surrounding towns. County-level cities and towns, in turn, are expected to enhance their economic integration with rural areas that depend primarily on agriculture. In this respect, town and county-level city development contributes directly to the provincial objective of promoting integrated rural and urban development. The main constraint on town development is inadequate urban infrastructure and services, according to the Hebei Urban Construction 11th FYP 2006-2010. Towns need more reliable and sustainable water supply and energy services to attract private sector investments that can create jobs and attract migrants. At the same time, improved wastewater and solid waste disposal is necessary to mitigate the environmental impacts of rapid economic growth and improve living conditions for local residents. Hebei's town development challenge therefore combines promoting economic growth with improving the urban environment and urban management and governance capacity. To help small cities and towns fulfill their economic potential and enable a more harmonious form of development, the Project will facilitate the delivery of improved environmental infrastructure and municipal services to (i) attract investment, especially in labor intensive industries and services; (ii) provide a decent urban environment to residents by substituting energy-efficient centralized heating for household coal burning, collecting and treating wastewater before discharge into the environment, and introducing sanitary practices and recovery of recyclables in solid waste management; (iii) strengthen urban management capacity in planning, implementation, and operation; and (iv) extend the benefits of growth to all residents by improving the coverage and quality of basic municipal services to households across the socioeconomic spectrum. The Project directly contributes to the continuing efforts of HPG to support socioeconomic development that balances economic growth, social advancement, and environmental recovery in the context of sustainable development. The Project is consistent with ADB's strategic objectives in the PRC to make markets work more efficiently through infrastructure development and to promote environmental sustainability. By supporting sustainable development integrating urban and rural areas, the proposed Project supports ADB's long-term strategic framework 2008-2020 (Strategy 2020)3 and country partnership strategy for the PRC (2008-2010) 4 by promoting efficient infrastructure, strengthening environmental management, and supporting inclusive growth and balanced development to help the Government build a xiaokang (moderately well-off) society. The Project will develop markets and create jobs by supporting urbanization and improving investment potential in towns, while protecting the environment.
Impact Improved urban environment and improved public health and quality of life for the residents of small cities and towns in Hebei Province
Project Outcome
Description of Outcome Improved urban infrastructure and municipal services in about 10 small cities and towns in Hebei Province
Progress Toward Outcome Project implementation is ongoing. The outcome is likely to be achieved. To be assessed at project completion.
Implementation Progress
Description of Project Outputs

1. For Core Subprojects: Bazhou County

Component 1: Mangniu River Improvement Riverbed is dredged and embankments are constructed. Sewer networks are constructed; rubber dams are installed. Flooding of the urban area becomes less frequent.

2. For Core Subprojects: Bazhou County

Component 2: Shengfang Water Supply Project

New water supply system and associated facilities operational

3. For Core Subprojects: Zhaoxian County

Component 1: Wastewater Treatment

4. For Core Subprojects: Zhaoxian County

Component 2: District Heating

Heating substations and distribution network are constructed.

Residents receive adequate heating services.

Reduction in the use of coal for residential heating.

5. For Core Subprojects: Zhaoxian County

Component 3: Solid Waste Management

Solid waste processing and recycling plant and composting facility constructed

6. For Core Subprojects Zhengding County

Component 1: Solid Waste Management

Solid waste processing and recycling plant and composting facility constructed

Improved solid waste management collection and treatment

7. For all subprojects: Institutional capacity for project management is improved; infrastructure and service providers have increased capacity to plan, construct, operate, and maintain facilities.

Status of Implementation Progress (Outputs, Activities, and Issues) The project is composed of 19 subprojects which were distributed in 10 small cities and towns in Hebei Province. During the midterm review mission in August 2012, four subprojects applied to drop out of the project and three new ones applied to be added in. As sector loan, the Subproject Appraisal Reports (SARs) for the three new subprojects - Zhangbei Heating, Longhua WWTP and Botou Pipeline were approved by ADB in November 2013. And a minor change in scope for the change of the two core subprojects - Zhaoxian Solid Waste and Zhengding Solid Waste was approved by ADB on 4 August 2014. As of 19 March 2015, accumulated contract awards and disbursement reached 94.13% and 79.42% respectively, compared to 80% of elapsed period. Among the current 18 subproject, 11 subprojects have been completed and other seven are under construction or procurement.
Geographical Location About 10-15 small cities and towns in Hebei province
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

The Project is classified as environmental category A. Extensive public consultations involving surveys, meetings with stakeholders, and focus group discussions were undertaken during project preparation. An EIA of the Project was conducted based on the EIAs prepared for the three core subprojects. An SEIA has been prepared and circulated to the ADB Board of Directors and was posted on the ADB website on 2 December 2008. An environmental assessment and management framework (Supplementary Appendix V) was prepared as an instruction manual to assist the Hebei PMO, subproject PMOs, IAs, and local design institutes in the preparation and review of EIA reports and environmental management plans for subsequent subprojects according to ADB requirements. The Project is expected to generate substantial environmental benefits. Wastewater treatment will reduce pollutant discharges

to rivers and groundwater. River improvement will strengthen flood protection, reducing economic loss and public health hazards from flooding. Centralized heating will improve energy efficiency, eliminate a considerable number of small and inefficient boilers, and reduce the quantity of coal

used, reducing greenhouse gas emissions. This Project will have positive effects on climate change, thereby supporting PRC and ADB climate change initiatives. The Project is expected to have no adverse impacts during construction or operation, as mitigation and monitoring plans are in place and the environmental management and institutional capacities of the PMOs and IAs are strengthened by establishing environmental management offices and undertaking a training program on environmental management planning. To manage risk, the Hebei PMO will ensure (i) extensive training in environmental management; (ii) the engagement of qualified project implementation consultants; and (iii) appropriate arrangements for project implementation, monitoring, and mitigation, with ADB conducting project reviews. The Project supports climate change adaptation including (i) incorporation of climatechange issues, such as energy efficient measures, in urban master plans; (ii) comprehensive water management, such as long-term water availability forecasting for new development areas and adopting comprehensive water balance measures during project implementation; (iii) sustainable wastewater and solid waste management including sludge digestion and biogas extraction; and (iv) promotion of clean energy for more efficient central heating.

Involuntary Resettlement

The scope of the Project impact is determined mainly by the results of the measurement surveys as part of the feasibility study reports. The physical and economic displacements identified show that the construction of the three core subprojects will affect 37 households or 196 people with permanent land acquisition, 30 households or 137 people with the demolition of residential structures, and four small shops with 13 employees. In total, 173 mu, or 11.5 hectares (ha), of land will be acquired permanently, 162 mu, or 10.8 ha, of which is cultivated land. Along with land acquisition, 582 square meters (m2) of residences and 624 m2 of other buildings will be demolished, affecting 30 households and 137 people and relocating four small shops with 13 employees. In addition, associated productive assets, ground attachments, and basic infrastructure and facilities will also be affected.

The resettlement plan and compensation for permanent land loss is based on Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration of October2004, the Land Administration Law of the People's Republic of China of 1998 (updated in 2004), and the Hebei Provincial Implementation Regulation of Land Administration Law of 1999. The resettlement plan and compensation for demolished buildings is based on national, provincial, and municipal urban housing administration regulations. Consultations with local governments and affected people and general practice in Zhengding, Zhaoxian, and Bazhou guided the adoption of a set of compensation standards by city project management offices (PMOs) and implementing agencies (IAs).

Indigenous Peoples Of the total beneficiary population of the Project, 0.4% are ethnic minority peoples in the three core subproject towns. To meet the requirement of the sector loan modality, and according to ADB's Operations Manual F3 on Indigenous Peoples, an ethnic minority development framework has been prepared for the noncore subprojects
Stakeholder Communication, Participation, and Consultation
During Project Design Extensive consultation was carried out during project processing phase. Stakeholder analysis was conducted during the poverty and social assessment. Various methods and approaches were employed, including participatory rural assessment, a socioeconomic sample survey of 400 households, four stakeholder consultation meetings and workshops, 15 focus group discussions, and 14 key informant interviews.The poverty and social assessment identified vulnerable groups and opportunities for pro-poor interventions and recommended social action measures and participation and mitigation plans to achieve social benefits. The poverty and social assessment indicates that rapid urbanization confronts Hebei Province with such development issues as the inadequate availability of public services for growing populations and severe air, river, groundwater, and solid waste pollution. The Project aims to address these issues and meet the demands of the residents by improving water supply, wastewater and solid waste collection and treatment, heating systems, and river management.
During Project Implementation Consultation will be continued during project implementation.
Business Opportunities
Consulting Services The Project includes provision for funding for 154 person-months of international and national consulting services to support the Hebei PMO, city and town PMOs, and IAs in project implementation and management and institutional capacity development. A consulting firm will be engaged in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time) using the standard quality- and cost-based selection method (80% quality and 20% cost) and simplified technical proposal. The consulting services will cover project management, implementation support, and institutional strengthening of the Hebei PMO, city and county PMOs, and IAs. Capacity development for the PMOs and IAs will be achieved through consultant inputs; training courses by specialized institutes and firms; in-country and/or overseas study visits; and the acquisition of training equipment financed from the loan.
Procurement Goods, works, and services for completion of various components including solid waste transfer stations, heating stations, wastewater treatment plant, water source and treatment plant, heating pipeline, wewage network etc. will be procured in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). International competitive bidding, national competitive bidding, or shopping procedures will be used for procurement depending on the circumstances of each contract package.
Responsible ADB Officer Xiao Guangrui
Responsible ADB Department East Asia Department
Responsible ADB Division PRC Resident Mission
Executing Agencies
Hebei Provincial GovernmentHebei Provincial Finance Bureau
48 South Zhonghua St Shijiazhuang 050051
Hebei Province, People's Rep of China
Timetable
Concept Clearance 29 Sep 2008
Fact Finding 08 Oct 2008 to 20 Oct 2008
MRM 04 Dec 2008
Approval 06 Nov 2009
Last Review Mission -
PDS Creation Date 16 Jan 2008
Last PDS Update 27 Mar 2015

Grant 0171-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Nov 2009 27 Apr 2010 10 May 2010 30 Jun 2012 30 Jun 2013 31 Oct 2013
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 0.25 Cumulative Contract Awards
ADB 0.00 06 Nov 2009 0.00 0.25 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.25 06 Nov 2009 0.00 0.25 100%

Loan 2574-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Nov 2009 17 Dec 2009 17 Mar 2010 30 Jun 2016 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 235.60 Cumulative Contract Awards
ADB 100.00 06 Nov 2009 98.51 0.00 99%
Counterpart 135.60 Cumulative Disbursements
Cofinancing 0.00 06 Nov 2009 82.89 0.00 83%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - - - - Satisfactory

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Hebei Small Cities and Towns Development Demonstration Sector Project: Initial Environmental Examination for the Botou Water Distribution Pipeline Network Rehabilitation Component Initial Environmental Examination Oct 2013
Hebei Small Cities and Towns Development Demonstration Sector Project: Longhua Miaoshan Waste Water Treatment Component Initial Environmental Examination Oct 2013
Hebei Small Cities and Towns Development Demonstration Sector Project: Initial Environmental Examination for the Zhangbei District Heating Component Initial Environmental Examination Oct 2013
Hebei Small Cities and Towns Development Demonstration Sector Project: Resettlement Due Diligence Report Resettlement Planning Documents Jul 2013
Hebei Small Cities and Towns Development Demonstration Sector Project: Miaoshan Waste Water Treatment Plant Resettlement Due Diligence Report Resettlement Planning Documents Jun 2013
Hebei Small Cities and Towns Development Demonstration Sector Project: Zhaoxian County Waste Landfill Project Resettlement Plan Resettlement Plans Jun 2013
Hebei Small Cities and Towns Development Demonstration Sector Project: Zhengding Sanitation Facility and Management Subproject Resettlement Plans May 2013
Hebei Province Small Cities and Towns Development Demonstration Sector Project (Chinese Translation) Resettlement Plans Aug 2012
Hebei Province Small Cities and Towns Development Demonstration Sector Project Resettlement Plans Aug 2012
Hebei Small Cities and Towns Development Demonstration Sector Project: Botou City Water Treatment Plant and Urban Water Distribution Network Rehabilitation Project (Revised) Resettlement Planning Documents Dec 2011
Hebei Small Cities and Towns Development Demonstration Sector Project: External Resettlement Monitoring Report No. 1 for Weichang County Town Central Heating System Component (Phase II) Social Monitoring Reports Nov 2011
Hebei Small Cities and Towns Development Demonstration Sector Project: External Resettlement Monitoring Report No. 1 for Huai'an County Urban Pipe Network Component Social Monitoring Reports Nov 2011
Hebei Small Cities and Towns Development Demonstration Sector Project Resettlement Planning Documents Nov 2011
Hebei Small Cities and Towns Development Demonstration Sector Project: External Resettlement Monitoring Report No. 1 for Botou City Water Treatment Plant and Urban Water Distribution Network Rehabilitation Component Social Monitoring Reports Nov 2011
Hebei Small Cities and Towns Development Demonstration Sector Project: External Resettlement Monitoring Report No. 1 for Zhaoxian County Subprojects Component Social Monitoring Reports Nov 2011
Hebei Small Cities and Towns Development Demonstration Sector Project: External Resettlement Monitoring Report No. 1 for Weichang County Town and Its Circumjacent Area Water Supply Component (Phase II) Social Monitoring Reports Nov 2011
Hebei Small Cities and Towns Development Demonstration Sector Project Resettlement Planning Documents Aug 2011
Hebei Small Cities and Towns Development Demonstration Sector Project: Huang-gezhuang Town Wastewater Treatment Plant Resettlement Planning Documents Jul 2011
Hebei Small Cities and Towns Development Demonstration Sector Project: Pingquan County: Heating Supply Phase II Project Resettlement Planning Documents Jul 2011
Hebei Small Cities and Towns Development Demonstration Sector Project: Huai’an County Urban Area Pipework Improvement Project Resettlement Plans Jun 2011
Hebei Small Cities and Towns Development Demonstration Sector Project (Updated) Resettlement Plans May 2011
Short Resettlment Plan plus Due Diligence for Zhuolu County New Area Water Supply and Old Town Pipe Network Restoration Works Resettlement Plans May 2011
Hebei Small Cities and Towns Development Demonstration Sector Project: Weichang County Urban & Surrounding Area Water Supply Project (Phase II) Resettlement Plans Jun 2010
Hebei Small Cities and Towns Development Demonstration Sector Project: Zhuolu Water Supply Subproject Environmental Impact Assessments May 2010
Hebei Small Cities and Towns Development Demonstration Sector Project: Pingquan Water Supply Subproject Environmental Impact Assessments May 2010
Hebei Small Cities and Towns Development Demonstration Sector Project: Weichang Water Supply Subproject Environmental Impact Assessments May 2010
白沟镇镇区地表水厂工程项目 Environmental Impact Assessments Dec 2009
Hebei Small Cities and Towns Development Demonstration Sector Project Summary Environmental Impact Assessments Dec 2008
高碑店市白沟镇垃圾综合处理厂: 环境影响报告书 Environmental Impact Assessments Dec 2008
承德市围场县供热公司集中供热二期工程项目 Environmental Impact Assessments Dec 2008
环境影响评价(EIA): 唐山市黄各庄镇污水处理厂工程 Environmental Impact Assessments Dec 2008
泊头市地表水厂及管网改造工程: 环境影响报告书 Environmental Impact Assessments Nov 2008
张家口市利 Environmental Impact Assessments Oct 2008
Hebei Small Cities and Towns Development Demonstration Sector Project: Bazhou City Maoniu River Pollution Treatment & Sewage Network Improvement Project Resettlement Plans Oct 2008
Hebei Small Cities and Towns Development Demonstration Sector Project: Zhaozhou Infrastructure Improvement Resettlement Plans Oct 2008
Hebei Small Cities and Towns Development Demonstration Sector Project: Zhengding Changshan Solid Waste Treatment Plant Project Resettlement Plans Oct 2008
Hebei Small Cities and Towns Development Demonstration Sector Project: Resettlement Framework Resettlement Frameworks Sep 2008
Hebei Small Cities and Towns Development Demonstration Sector Project: Shengfang Town Water Supply Project (First Stage) of Bazhou City Resettlement Plans Sep 2008
平泉集中供热二期(扩建2 Environmental Impact Assessments Aug 2008
建设项目环境影响报告表 Environmental Impact Assessments Dec 2007

Evaluation Documents

See also: Independent Evaluation

No documents found.


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