China, People's Republic of: Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project

Sovereign Project | 40683-013

Summary

The impact of the project will be improved economic development in areas downstream of reservoirs. The outcome will be the sustainable rehabilitation and management of reservoirs. The project will establish sustainable reservoir rehabilitation and management models for replication throughout the PRC, through a cycle of rehabilitation, management, monitoring, and evaluation of model reservoirs. It will have three components: (i) rehabilitation of model reservoirs, (ii) establishment of sustainable reservoir rehabilitation and management models, and (iii) project management support.

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Project Name Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project
Project Number 40683-013
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 2700-PRC: Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project
Ordinary capital resources US$ 29.80 million
TA 7658-PRC: Effective Reservoir Utilization for Integrated Water Resources Management
Technical Assistance Special Fund US$ 300,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change
Sector / Subsector Agriculture, natural resources and rural development - Irrigation - Rural flood protection - Rural water policy, institutional and capacity development - Rural water supply services - Water-based natural resources management
Gender Equity and Mainstreaming Some gender elements
Description The impact of the project will be improved economic development in areas downstream of reservoirs. The outcome will be the sustainable rehabilitation and management of reservoirs. The project will establish sustainable reservoir rehabilitation and management models for replication throughout the PRC, through a cycle of rehabilitation, management, monitoring, and evaluation of model reservoirs. It will have three components: (i) rehabilitation of model reservoirs, (ii) establishment of sustainable reservoir rehabilitation and management models, and (iii) project management support.
Project Rationale and Linkage to Country/Regional Strategy

The PRC has developed rapidly. From 1978 to 2008, its economy grew by about 10% per year on average. This rapid economic growth has depended in part on reservoirs, which

have been important in flood control, irrigation, hydropower generation, and water supply. The reservoirs in the PRC have a total storage capacity of about 554 billion cubic meters (m3), about one-sixth of the total yearly runoff nationwide. They control an irrigation area of about 16 million hectares (ha), about one-third of the country's total irrigation area. Their total generation capacity of about 70 million kilowatts is about one-third of the total national power generation. The reservoirs provide about 500 billion m3 of water supply yearly, about 20 billion m3 of this for household use. In 1998, 1,335 large and medium-sized reservoirs in the PRC stored about 53 billion m3 of floodwater and protected more than 200 cities and 2.3 million ha of farmland from flooding, reducing the number of people who fell victim to flooding by 27.4 million.

The PRC has 87,085 reservoirs. About 90% were built during the period of the Great Leap Forward and the Cultural Revolution (1958-1976), using outdated and low technical

standards and inadequate plans, surveys, designs, and construction. Most of these reservoirs have been used for 30-50 years, and many of the water-retaining dams and equipment are damaged and need to be repaired and strengthened. Many of the reservoirs do not meet modern safety standards.

The PRC has three safety classes of reservoirs according to the Safety Assessment Methods for Dams and the Guidelines on Dam Safety Assessment. In the class III (most

unsafe) category are 37,032 reservoirs, 43% of the total. The potential failure of class III reservoirs threatens lives and property downstream. In 1954-2007, 3,503 reservoirs-an

average of 65 reservoirs each year-collapsed and killed at least 27,876 people in the PRC.

The storage water level of many reservoirs was originally designed to match the hydrometeorological features of the watershed and downstream water demand. Now, however,

many endangered reservoirs do not store water up to the design level because of water leakage, instability of water-retaining dams, and inadequate spillway capacity for emergency

discharge of rapidly rising floodwaters. As a result, these endangered reservoirs cannot control floods, supply irrigation water, generate hydropower, or provide household water year-round to users. Strengthening these reservoirs will increase water supply at a lower cost and with less adverse impact on the environment and people than building new reservoirs. Strengthened reservoirs will also have potentially positive benefits downstream, especially on the environment, by increasing reservoir releases for environmental flow. The 1,346 reservoirs that were recently rehabilitated are estimated to have increased the storage capacity by 500 million m3, equivalent to the increase in capacity from the construction of 540 new medium-sized reservoirs. The cost of reservoir rehabilitation per cubic-meter increase in storage capacity (CNY2-CNY3) is lower than the cost of new reservoir construction (CNY6).

The government has given high priority to strengthening endangered reservoirs. The Ministry of Water Resources set up the National Reservoir Strengthening Program in 2001, with

financial assistance from the government. The first phase of this program has been successfully completed, and 1,346 reservoirs are now operating at design capacity. The second phase, involving the strengthening of 2,112 class III reservoirs, began in 2003. To speed up the rehabilitation of unsafe reservoirs, the third phase of the program was prepared in October 2007 specifically for 6,240 reservoirs, including those uncompleted in the second phase.

The National Reservoir Strengthening Program will be completed during the 11th Five-Year Plan period (2006-2010). But reservoir rehabilitation will continue beyond the program. More than 30,000 unsafe reservoirs still have to be rehabilitated, and class I and II reservoirs, which are not part of the program, are foreseen to deteriorate and urgently need

rehabilitation. In addition, reservoirs rehabilitated under the program must be properly operated, maintained, and managed for safety and effective use; otherwise, the rehabilitation would have been futile. To address these issues, sustainable reservoir rehabilitation and management models should be established in a province where reservoir safety is a serious issue, and successful models should be replicated throughout the PRC.

Shandong Province, in the lower reaches of the Yellow River in northeastern PRC, has a population of about 92 million, the second largest in the PRC. It is among the country's

fastest-developing provinces, but it is also a province where water scarcity is most serious, with water resources per capita of about one-sixth of the national average. Saltwater intrusion into coastal catchments has rendered the available water resources less usable. Rapid economic development in recent years has been increasing the demand for water.

Reservoir safety is of great concern to Shandong Province, among other provinces in the PRC. Of its 5,820 reservoirs, 4,114-71%, the highest proportion in the country-are in the

most unsafe (class III) category. Reservoirs in the province collapsed 255 times and killed 225 people in 1966-2008, for a reservoir collapse ratio of 4.4%, much higher than the national average of 4.0%.

The People's Government of Shandong Province (SPG) recognizes the urgent need for reservoir rehabilitation as well as the importance of managing the rehabilitated reservoirs

properly to be able to use them safely and effectively for economic development. Besides the 137 class III reservoirs in Shandong Province that are included in the National Reservoir

Strengthening Program, other unsafe reservoirs in the province are being rehabilitated according to a plan drawn up by the SPG. But the provincial government is facing technological

and financing difficulties. It seeks methodologies for rehabilitating a huge number of unsafe reservoirs efficiently within a limited budget and for using the rehabilitated reservoirs safely and effectively for economic development.

The SPG has therefore requested a loan from the Asian Development Bank (ADB) to establish sustainable reservoir rehabilitation and management models, through the rehabilitation, management, monitoring, and evaluation of model reservoirs. ADB's assistance will give the SPG access to international expertise and experience in reservoir rehabilitation and

management. The established models will be used in Shandong Province and replicated throughout the PRC.

he project will contribute to integrated water resources management (IWRM) by establishing sustainable reservoir rehabilitation and management models, and is therefore in line with the priorities of ADB's water policy in promoting IWRM. The project is also in line with the country partnership strategy (2008-2010) for the PRC, which assigns priority to

environmental sustainability through more effective natural resources management, and supports the government's objectives in the water sector.

The project will have a direct positive impact on poverty reduction and the environment since it will (i) reduce the risk of reservoir failure and protect lives, property, and livelihoods

downstream, where poverty incidence is high; (ii) provide more water for agriculture and household use to the poor living downstream of the reservoirs; and (iii) improve the quantity of reservoir releases, especially in the dry season, to sustain wetlands and the health of flora and fauna, maintain fisheries, preserve water quality, and improve groundwater resources.

Impact Improved economic development in areas downstream of reservoirs
Project Outcome
Description of Outcome Sustainable rehabilitation and management of reservoirs
Progress Toward Outcome Rehabilitation of all seven model reservoirs was completed, and sustainable reservoir rehabilitation and management models were established and are being disseminated.
Implementation Progress
Description of Project Outputs

Rehabilitation of model reservoirs

Establishment of sustainable reservoir rehabilitation and management models

Project management support

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

Rehabilitation of all seven model reservoirs was completed.

Sustainable reservoir rehabilitation and management models were established and are being disseminated.

5 semi-annual project progress reports covering from the start of project implementation to 31 July 2014 have been submitted to ADB. 5 semi-annual resettlement monitoring and evaluation reports have been submitted to ADB and disclosed on ADB website. 4 semi-annual environmental monitoring reports have also been submitted to ADB.

Geographical Location Shandong Province, PRC
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is in environmental category B, according to ADB's Safeguard Policy Statement. An environmental assessment of the project conforming to the PRC regulatory framework and ADB's Environmental Assessment Guidelines (2003) has been carried out. The initial environmental examination report summarizes the findings of the environmental assessment reports on the nine subprojects and the due diligence review of the associated facilities. Extensive public consultations involving stakeholder and focus group discussions were undertaken twice during project preparation. The potential adverse impact during rehabilitation and operation includes the limited standard impact of construction and the unsafe disposal of dredged sediments, construction spoil, wastewater, and solid waste. This impact will be prevented or minimized to acceptable levels through the implementation of an environmental management plan with adequate mitigation and monitoring arrangements.
Involuntary Resettlement Eight of the nine subprojects will require land acquisition or household relocation, but the impact will not be significant. The project is in category B for involuntary resettlement, according to ADB's Safeguard Policy Statement (2009). In total, 20.2 ha of collectively owned land, 89% of which is cultivated farmland, will be affected permanently. Four of the nine subprojects will require the demolition of 1,056 square meters of housing and the relocation of six households with a total of 27 persons. Some productive assets, ground attachments, basic infrastructure, and special facilities will also be affected. The implementing agencies, with the assistance of the consultants hired under the project preparatory TA, have prepared eight resettlement plans and one due diligence report. The pre-examination of land use was domestically approved for all subprojects. The local governments have endorsed the plans and disclosed the relevant information to affected persons. The key issue for the social safeguards is ensuring that the local governments fulfill their commitment to provide investment financing for development projects in the communities that were affected by the construction of the dams in 1960 1980 Land acquisition and resettlement costs will be fully financed by the implementing agencies.
Indigenous Peoples There are no indigenous peoples within the project locations; the project is therefore in category C in this regard.
Stakeholder Communication, Participation, and Consultation
During Project Design

The design of the project was carried out by design institutes, which engaged in extensive consultations with stakeholders, beneficiaries, and project-affected people. A participatory and consultative methodology was adopted for the social and poverty analysis during project preparation. It involved (i) group discussions with villagers in different economic conditions in 13 villages in the seven project counties; (ii) interviews with chiefs and accountants of 13 villages in seven project counties; (iii) interviews with directors and officials of key agencies in seven project counties, including poverty alleviation offices, civil affairs commissions, urban construction bureaus, agricultural bureaus, statistical bureaus, and women's federations; (iv) interviews with directors and officials of the provincial water resources department and the water resources bureaus of seven project counties; and (v) interviews with

directors and officials of nine reservoir administration offices.

During Project Implementation The C&P plan has been prepared and will be used before and during project implementation, monitoring, and evaluation. consultations, including a grievance mechanism described in the resettlement plans, will continue during land acquisition and resettlement so that the problems of affected persons are properly addressed before project implementation. In addition, for those subprojects with irrigation improvement components, provincial and local government agencies will consult with relevant townships and villages in the PIAs on the general layout of irrigation works and possible tariff changes. For those subprojects with both household and industrial water supply functions, consultations and public hearings will be held if any tariff changes are proposed after the subprojects are completed. To assess changes in the social and economic conditions of the project area resulting from the project, monitoring and evaluation using participatory methodologies and techniques will be conducted.
Business Opportunities
Consulting Services The project will require consulting services for (i) the establishment of a sustainable reservoir rehabilitation and management model; and (ii) project management support. These consulting services will be financed by the ADB loan and the consultants will be recruited by the PPMO according to ADB's Guidelines on the Use of Consultants. The establishment of a sustainable reservoir rehabilitation and management model will require a total of 19.5 person-months (pm) of international consulting services and 73.0 pm of national consulting services which will be provided by a team of consultants engaged through a firm. The consulting firm will be selected by (i) inviting simplified technical proposals; and (ii) using the quality- and cost-based selection method, with a quality cost weighting ratio of 80:20. The project management support will require a total of 12.0 pm of national consulting services. The consultants will be engaged based on individual selection method, since (i) the number of the national consultants is only three; and (ii) the project management support will be provided independently by the three national consultants and the assignments are straightforward. In addition to these consultants, ADB will recruit other consultants for an associated TA, the LPMOs will engage national consultants for engineering and construction supervision and quality inspection using counterpart funds, and the PPMO will also engage an independent agency acceptable to ADB for external resettlement monitoring and evaluation using counterpart funds.
Procurement

All procurement of goods and works will be carried out in accordance with ADB's Procurement Guidelines (2010, as amended from time to time). Contracts for goods estimated to cost $1.0 million and above and contracts for works estimated to cost $10.0 million and above shall be procured using international competitive bidding (ICB) procedures. Contracts for goods estimated to cost less than the above ICB value but equal to $100,000 and above will be procured through national competitive bidding (NCB) procedures. Contracts for works estimated to cost less than the above ICB value but equal to $200,000 and above will also be procured through NCB procedures. NCB will be conducted in accordance with the PRC Tendering and Bidding Law (1999), subject to modifications agreed with ADB. Contracts for goods and works estimated to cost less than the above NCB values will be procured using shopping procedures. The relevant sections of ADB's Anticorruption Policy (1998, as amended from time to time) will be included in all procurement documents and contracts. Before the start of any procurement, ADB and the government will review the public procurement laws of the central and state governments to ensure consistency with ADB's Procurement Guidelines.

An assessment of the procurement capacity of the executing and implementing agencies has confirmed that these agencies, acting through a procurement agency and with the assistance of ADB and the consultants, would capably conduct procurement, including advance contracting, meeting ADB's requirements. A procurement agency that is familiar with ADB's procurement procedures was hired by the SPG in March 2010 to procure all works and goods under the project on behalf of the executing and implementing agencies.

Responsible ADB Officer Yoshiaki Kobayashi
Responsible ADB Department East Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, EARD
Executing Agencies
Shandong Provincial GovernmentPeople's Republic of China
Timetable
Concept Clearance 19 Nov 2009
Fact Finding 04 Nov 2009 to 12 Nov 2009
MRM 23 Apr 2010
Approval 19 Nov 2010
Last Review Mission -
PDS Creation Date 04 Aug 2010
Last PDS Update 20 Mar 2015

Loan 2700-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Nov 2010 24 Jan 2011 21 Apr 2011 30 Jun 2015 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 55.17 Cumulative Contract Awards
ADB 29.80 19 Nov 2010 29.73 0.00 100%
Counterpart 25.37 Cumulative Disbursements
Cofinancing 0.00 19 Nov 2010 25.56 0.00 86%

TA 7658-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Nov 2010 30 Dec 2010 30 Dec 2010 31 Mar 2013 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
300,000.00 0.00 174,050,000.00 0.00 0.00 0.00 174,350,000.00 19 Nov 2010 493,769.75

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: External Resettlement Monitoring and Evaluation Report No. 6 Social Monitoring Reports Jan 2015
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: External Resettlement Monitoring and Evaluation Report No. 5 Social Monitoring Reports Aug 2014
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: External Resettlement Monitoring and Evaluation Report No. 4 Social Monitoring Reports Jan 2014
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: Resettlement Plan for Songshan Reservoir Resettlement Plans Nov 2013
中华人民共和国山东省病险水库除险加固项目: 临朐县嵩山水库除险加固子项目移民安置计划(更新版) Resettlement Plans Nov 2013
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: External Resettlement Monitoring and Evaluation Report No. 3 (Chinese Translation) Social Monitoring Reports May 2013
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: External Resettlement Monitoring and Evaluation Report No. 3 Social Monitoring Reports May 2013
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project -- Resettlement External Monitoring and Evaluation Report No. 2 Social Monitoring Reports Sep 2012
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: Environmental Monitoring Report No. 2 Environmental Monitoring Reports Jun 2012
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: Environmental Monitoring Report No. 1 Environmental Monitoring Reports Dec 2011
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: Semiannual Report Social Monitoring Reports Nov 2011
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: Resettlement Plan: Summary (as of Board approval) Resettlement Plans Oct 2010
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Initial Environmental Examination Sep 2010
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: Initial Environmental Examination (as of Board approval) Initial Environmental Examination Sep 2010
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project Initial Environmental Examination Sep 2010
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: Final Resettlement Plan for Qiangkuang Reservoir Subproject in Zhucheng City (as of Board approval) Resettlement Plans Aug 2010
Final Resettlement Plan for Renhe Reservoir Subproject in Qingzhou City Resettlement Plans Aug 2010
平邑县安靖水库除险加固子项目移民安置计划 Resettlement Planning Documents Aug 2010
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: Final Resettlement Plan for Anjing Reservoir Subproject in Pingyi County (as of Board approval) Resettlement Plans Aug 2010
Final Resettlement Plan for Muyu Reservoir Subproject in Laiyang City Resettlement Plans Aug 2010
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: Final Resettlement Plan for Renhe Reservoir Subproject in Qingzhou City (as of Board approval) Resettlement Plans Aug 2010
中华人 Resettlement Plans Aug 2010
Final Resettlement Plan for Huacun Reservoir Subproject in Sishui County Resettlement Plans Aug 2010
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: Final Resettlement Plan for Huacun Reservoir Subproject in Sishui County (as of Board approval) Resettlement Plans Aug 2010
莱阳市沐浴水库除险加固子项目除险加固项目移民安置计划 Resettlement Plans Aug 2010
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: Final Resettlement Plan for Songshan Reservoir Subproject in Linqu County (as of Board approval) Resettlement Plans Aug 2010
Final Resettlement Plan for Songshan Reservoir Subproject in Linqu County Resettlement Plans Aug 2010
泗水县华村水库除险加固子项目: 移民安置计划 Resettlement Plans Aug 2010
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: Final Resettlement Plan for Longwantao Reservoir Subproject in Sishui County (as of Board approval) Resettlement Plans Aug 2010
Final Resettlement Plan for Qiangkuang Reservoir Subproject in Zhucheng City Resettlement Plans Aug 2010
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: Final Resettlement Plan for Yangzhuang Reservoir Subproject in Pingyi County (as of Board approval) Resettlement Plans Aug 2010
临朐县嵩山水库除险加固子项目: 移民安置计划 Resettlement Plans Aug 2010
Final Resettlement Plan for Longwantao Reservoir Subproject in Sishui County Resettlement Plans Aug 2010
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: Final Resettlement Plan for Muyu Reservoir Subproject in Laiyang City (as of Board approval) Resettlement Plans Aug 2010
诸城市墙夼水库除险加固子项目: 移民安置计划 Resettlement Plans Aug 2010
Final Resettlement Plan for Anjing Reservoir Subproject in Pingyi County Resettlement Plans Aug 2010
Final Resettlement Plan for Yangzhuang Reservoir Subproject in Pingyi County Resettlement Plans Aug 2010
泗水县龙湾套水库除险加固子项目: 移民安置计划 Resettlement Plans Aug 2010
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: Anjing Reservoir Subproject in Pingyi County (Draft) Resettlement Plans Mar 2010
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: Muyu Reservoir Subproject in Laiyang City (Draft) Resettlement Plans Mar 2010
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: Yangzhuang Reservoir Subproject in Pingyi County (Draft) Resettlement Plans Mar 2010
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: Renhe Reservoir Subproject in Qingzhou City (Draft) Resettlement Plans Mar 2010
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: Huacun Reservoir Subproject in Sishui County (Draft) Resettlement Plans Mar 2010
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: Songshan Reservoir Subproject in Linqu County (Draft) Resettlement Plans Mar 2010
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: Longwantao Reservoir Subproject in Sishui County (Draft) Resettlement Plans Mar 2010
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: Shizuizi Reservoir Subproject in Zaozhuang City (Draft) Resettlement Plans Mar 2010
Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project: Qiangkuang Reservoir Subproject in Zhucheng City (Draft) Resettlement Plans Mar 2010

Evaluation Documents

See also: Independent Evaluation

No documents found.


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