China, People's Republic of: CENTRAL AND WESTERN AIRPORTS DEVELOPMENT PROJECT

Nonsovereign Project | 41908-014

Summary

CENTRAL AND WESTERN AIRPORTS DEVELOPMENT PROJECT

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Project Name CENTRAL AND WESTERN AIRPORTS DEVELOPMENT PROJECT
Project Number 41908-014
Borrower/Company HNA AIRPORT (HOLDING) GROUP COMPANY LTD.
Country China, People's Republic of
Location PRC
Approval Number 7270/47, 7270, 7270/2389
Type or Modality of Assistance
7270 Loan CNY 160.00 million Committed
7270/47 Complementary Financing Scheme USD 200.00 million Approved
Strategic Agendas
Drivers of Change
Sector / Subsector Transport - Air transport
Gender Equity and Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Jose Manuel Limjap
Project Sponsor(s)
Description CENTRAL AND WESTERN AIRPORTS DEVELOPMENT PROJECT
Objectives and Scope The Project will serve as an important catalyst for the overall economic growth of the less-developed central and western regions in the PRC. Through assistance to HAG in increasing airport capacity and improving airport efficiency in the central and western PRC, the Project will directly benefit people in the area by (i) providing direct access to and from markets located in the relatively developed coastal regions of the PRC and in other countries, (ii) improving aviation safety and service, (iii) reducing the cost and duration of long-distance travel, and (iv) creating more employment demand and opportunities. The Project also aims to ease financial constraints faced by provincial/municipal governments by mobilizing private sector funding for airport development and support the economic growth in central and western PRC.
Linkage to Country/Regional Strategy While ADB does not have a sector policy covering transportation, civil aviation or airports, the Project targets investment needs in the PRC's less developed regions, which are the focal areas of ADB's operations, in accordance with the country strategy and the Government's expectations with respect to ADB's operations. ADB recognizes that transportation is an operational priority and that the economic growth of many developing member countries remains hobbled by inadequate and substandard transportation infrastructure. ADB's transport intervention plays a pivotal role in achieving developmental impact targets by making its assistance more relevant to sector needs, responsive to client requirements, and flexible in implentation.
Status of Development Objectives HAG is still open to acquire other airports and is in process to streamline operations and improve operating efficiency and profitability of its portfolio of airports. ADB has been assisting HAG in enhancing its corporate governance and environmental and management system to enhance confidence in the sector. Airport acquisition was halted as an offshoot of CAAC head's opposition to further privatization of government-owned airports.
Material Changes N/A
Safeguard Categories
Environment FI
Involuntary Resettlement A
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects HAG has established an Environmental and Social unit to coordinate with the portfolio airports on all issues relating to environmental and social safeguards. As agreed with ADB, an environmental management system and social monitoring framework are implemented in the entire group. ADB also conducted a seminar on environmental and social safeguards as part of training of HAG's management and E&S staff.
Involuntary Resettlement Land acquisition agreements were signed in March 2008 and all compensation was paid in May of the same year. All compensation and procedures were in line with ADB and PRC's policies where the compensation was agreed to the satisfaction of the affected people which was 40 times the Annual Average Output Value and sufficiently met the requirement of replacement cost compensation.
Indigenous Peoples The affected people are members of the Li ethno-linguistic group. Several consultations to provide further information to the community were conducted. The Project and its related activities did not adversely affect the indigenous people nor did it conflict with their beliefs and customs. The Project did not have a significant impact on their livelihood and there is no need for HAG implement a livelihood restoration plan.
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance 26 Mar 2007
Due Diligence 30 Sep 2007
Credit Committee Meeting 24 Oct 2007
Approval 11 Dec 2007
PDS Creation Date 19 Oct 2007
Last PDS Update 09 Oct 2014
Title Document Type Document Date
Proposed Equity Investment and Loan: Central and Western Airports Development Project Reports and Recommendations of the President Nov 2007

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Central and Western Airports Development Project Social Monitoring Reports Feb 2011
Central and Western Airports Development Project Environmental and Social Management System Frameworks Oct 2007
Central and Western Airports Development Project: Social Safeguards Management Framework Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Oct 2007
Central and Western Airports Development Project: Social Safeguards Management Framework Combined Resettlement Framework and Indigenous Peoples Planning Frameworks Oct 2007

Evaluation Documents

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