China, People's Republic of: Policy Study on Market-based Instrument for Water Pollution Control

Sovereign Project | 40647-012

Summary

The expected impact of the TA is the strengthened environmental sustainability in PRC. The outcome of the TA is a set of well-prepared policy advice and recommendations on how to utilize the market-based instruments to supplement and strengthen the existing water pollution management system. The TA is expected to help PRC to introduce and establish long-term and market-based mechanism, which will help the country to achieve the water pollution control target in a more effective manner.

The TA will have the following major components:

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Project Name Policy Study on Market-based Instrument for Water Pollution Control
Project Number 40647-012
Country China, People's Republic of
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 4967-PRC: Policy Study on Market-based Instrument for Water Pollution Control
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Agriculture, natural resources and rural development - Water-based natural resources management
Gender Equity and Mainstreaming No gender elements
Description

The expected impact of the TA is the strengthened environmental sustainability in PRC. The outcome of the TA is a set of well-prepared policy advice and recommendations on how to utilize the market-based instruments to supplement and strengthen the existing water pollution management system. The TA is expected to help PRC to introduce and establish long-term and market-based mechanism, which will help the country to achieve the water pollution control target in a more effective manner.

The TA will have the following major components:

(i) Policy framework development. The TA will review the latest development in the environmental economics on application of market-based instruments in environmental management, including best practices available within PRC and abroad. Based on such comprehensive review, the TA is expected to (1) develop economics basis and guiding principles for the new mechanism, (2) identify feasible models suitable for water pollution control in PRC as the selected options for detailed assessment, (3) make recommendations, based on comprehensive analysis, for the recommended operational model(s) for detailed operational system design.

(ii) Operational system design. The TA will first review the lessons and experiences gained from the existing piloting schemes for water pollution management in PRC. The TA will also review the international practice available. Based on these reviews and the international best practice, the TA will provide support for designing the operational system for the recommended model(s) mentioned in item (i) above. This will include the design for the general operational system(s) for piloting and demonstration operation in the selected piloting cities. System design needs to cover (i) indicator selection and target setting, (2) compliance monitoring and verification, (3) market-based allocation and transaction of discharge allowance, certified discharge reduction, or other recommended instrument(s), and (5) associated facilities and the governance mechanisms for transaction management and supervision.

(iii) Legal and regulatory framework development. The TA will review the relevant laws and regulations in PRC to identify the need, if any, to introduce new laws or regulations, at national or local level, to provide and enabling legal framework for implementation of the intended new mechanisms. Based on this review, the TA will outline a roadmap for legal and regulatory framework development. The TA will also provide assistance to prepare the basic governance structure and regulatory mechanism for piloting and demonstration operations as part of the operational system design discussed in item (ii) above.

(iv) Consensus and capacity building. The TA will organize workshops and conferences for concept development, experience sharing and knowledge transfer, and participatory consultation. International experts who have experience in developing, operating, or managing the similar environmental management mechanisms will be invited as resource persons at these workshops or conferences to share their knowledge and experiences. The TA will also organize one study tour for selected officials from the concerned government ministries and piloting cities to visit internationally known operational scheme(s) to have consultation with the management and gain first-hand knowledge on how the market-based instruments are being utilized for environmental management in the industrialized countries.

Project Rationale and Linkage to Country/Regional Strategy It is one of ADB's strategic focuses and operational priorities to provide assistance for policy development through knowledge product, particularly in the area of improving environmental sustainability in PRC.The study will strengthen and supplement ADB's other lending and non-lending assistance in the areas of water resource management and waste management.
Impact
Project Outcome
Description of Outcome
Progress Toward Outcome Consulting services completed. Closing of the consultant's contract and closing of the account is ongoing. Draft TCR has been prepared for interdepartmental comments.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues) Consulting services completed. Draft TCR has been prepared for interdepartmental comments.
Geographical Location nationwide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The proposal is identified and conceptualized through the domestic processing procedure of the PRC Government and jointly proposed by the Ministry of Finance and State Environmental Protection Administration to ADB forinclusion in the ADB assistance program during 2006 country program consultation process. Participatory consultation will be arranged and incorporated during fact-finding for and implementation of the TA.
During Project Implementation The TA was implemented in close partnership with the Ministry of Environmental Protection (MEP). The Consultants conducted surveys and field investigations as part of the Study, and the final report was presented to the ADB Water Community of Practice. The Consultant's Final Report is published in Chinese to guide piloting projects in the PRC. A knowledge product "Market-based Instruments for Water Pollution Control" is published for international dissemination.
Business Opportunities
Consulting Services

3 international consultants for a total of 5 person-months and 10 national consultants for a total of 18 person-months will be engaged through competition among domestic firms following QCBS procedure.

The consultants will be enaged in accordance with the ADB's Guidelines on the Use of Consultants.

Responsible ADB Officer Fei Yue
Responsible ADB Department East Asia Department
Responsible ADB Division Urban and Social Sectors Division, EARD
Executing Agencies
State Environment Protection AdministrationMr. Wang Xinwang.xin@mepfeco.org.cn15 Nanxiaojie, Xizhimennei Beijing, 100035 People
Ministry of Environmental Protection115 Xizhimen Nanxiaojie, Beijing
Timetable
Concept Clearance 22 Mar 2007
Fact Finding 17 Apr 2007 to 23 Apr 2007
MRM -
Approval 11 Sep 2007
Last Review Mission -
PDS Creation Date 18 Apr 2007
Last PDS Update 22 Aug 2011

TA 4967-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Sep 2007 25 Oct 2007 25 Oct 2007 31 Oct 2008 31 May 2011 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 150,000.00 0.00 0.00 0.00 650,000.00 11 Sep 2007 424,956.28

Safeguard Documents

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Evaluation Documents

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