China, People's Republic of: Guangxi Southwestern Cities Development Project

Sovereign Project | 42010-013

Summary

The project will support the urban development of three medium-sized cities in the southwestern part of the Guangxi Zhuang Autonomous Region (Guangxi) Fangchenggang City, Chongzuo City, and Baise City. All the project cities are surrounded by counties with widespread poverty. The project will have six investment components in the project cities and one capacity development component. The investment components in each project city will be part of an overall city development program guided by a well-prepared city development master plan. The capacity development component is designed to complement the infrastructure development to be funded under the project.

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Project Name Guangxi Southwestern Cities Development Project
Project Number 42010-013
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2657-PRC: Guangxi Southwestern Cities Development Project
Ordinary capital resources US$ 150.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector Agriculture, natural resources and rural development - Water-based natural resources management
Transport - Urban roads and traffic management
Water and other urban infrastructure and services - Urban policy, institutional and capacity development
Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The project will support the urban development of three medium-sized cities in the southwestern part of the Guangxi Zhuang Autonomous Region (Guangxi) Fangchenggang City, Chongzuo City, and Baise City. All the project cities are surrounded by counties with widespread poverty. The project will have six investment components in the project cities and one capacity development component. The investment components in each project city will be part of an overall city development program guided by a well-prepared city development master plan. The capacity development component is designed to complement the infrastructure development to be funded under the project.

The project has a number of special features. It is part of the national poverty reduction strategy to promote inclusive growth in the less-developed western PRC. All the project cities are at strategic positions of the regional transport corridors under the Greater Mekong Subregion (GMS) economic cooperation framework. Development of the urban economy in these cities is the driving force in converting these transport corridors into economic corridors for GMS economic cooperation, which the Asian Development Bank (ADB) is supporting. The project has adopted a holistic approach to building urban roads and underground municipal infrastructure in a coherent and integrated manner. Construction of urban infrastructure is supported with capacity development and environmental improvement components, including activities to strengthen climate change resilience of coastal and inland urban areas.

Project Rationale and Linkage to Country/Regional Strategy

Guangxi is one of the 12 less-developed provinces and autonomous regions targeted for support under the government's National Strategy for Development of the West. This is a long-term strategic initiative to rebalance the economic development of different regions in the country. It includes massive investment to (i) build and/or upgrade the infrastructure to improve their connectivity and productivity, (ii) deploy and relocate strategic industries in these less-developed provinces and autonomous regions to facilitate economic transformation and create jobs, and (iii) promote urban development to improve the urban environment and living conditions. The government proposes the project as part of the support for accelerated urbanization and economic development in poverty-stricken southwestern Guangxi.

Guangxi and the project cities have unique comparative advantages. Guangxi is the only western province and/or autonomous region of the PRC that has both deepwater seaports and land ports at the international borders. Guangxi serves as the gateway for many landlocked western provinces to the international market. Through intensive investment in the construction of transport infrastructure under the National Strategy for Development of the West, Guangxi has built a well-developed expressway system that directly connects Yunnan and Guizhou, two landlocked and less-developed western provinces, with Guangxi's seaports at the Beibu Gulf and its land ports at the international border with Viet Nam.

The three project cities are strategically located at the important intersections of Guangxi's transport network. Fangchenggang City serves as a multimodal transportation hub that connects the expressway and railway with deepwater seaports. Chongzuo City is a regional logistics center in the GMS transportation corridor and facilitates international trade with GMS countries through the land ports at Guangxi's border with Viet Nam. Baise City, as a nodal city in the inter-province highway and expressway system, provides the critical link for Yunnan and Guizhou provinces to the seaports at Beibu Gulf through the transport system in Guangxi. Guangxi and the project cities are at the center of a number of regional cooperation endeavors, including GMS economic cooperation promoted by ADB, and the PRC Association of Southeast Asian Nations free trade area.

Accelerated urban development of these project cities is required not only to create non-agriculture jobs for the poor farmers of the surrounding counties, but also as part of the national development strategy to integrate the less-developed southwestern PRC with the international market through the transport networks in Guangxi. The project is consistent with the PRC country partnership strategy, 2008 2010, which emphasizes the operational focus of ADB on support of urban infrastructure, balanced regional development, urban environmental improvement, and regional integration. Detailed sector analysis for the project is provided in the summary sector assessment.

Impact Improved living conditions in the Project Cities and enhanced ability of these cities to participate in and benefit from the regional cooperation
Project Outcome
Description of Outcome Expanded and upgraded urban infrastructure and urban environment that will help the project cities meet their expansion needs up to 2020
Progress Toward Outcome As of 31 December 2014, the overall progress of the Project was 65.7% against the elapsed loan period of 78%.
Implementation Progress
Description of Project Outputs

1. Fangchenggang City:

Constructed urban roads and related basic municipal infrastructures in accordance with the city development master plan;

Improved and upgraded coastal area that is free from tidal wave and coastal erosion and has a public education facility for mangrove protection.

2. Chongzuo City:

Constructed urban roads and related basic municipal infrastructures in accordance with the city development master plan;

Improved environmental system of Shuikou Lake as a manmade urban wetland for the city with public signage for protection of urban wetland ecosystem.

3. Baise City:

Constructed urban roads and related basic municipal infrastructures in accordance with the city development master plan;

Constructed Longwang Bridge across Youjiang River.

4. Capacity Development:

Strengthened GPMO and MPMOs that are able to meet all the ADB requirements;

Strengthened capacity of the Project Cities to plan and implement an integrated and sustainable urban transport system.

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

60.8% of urban roads and related basic municipal infrastructures constructed. To be completed by Q4 2015.

44.4% has been completed. To be completed by Q4 2015.

55.2% has been completed. To be completed by Q4 2015.

53.2% of urban roads and related basic municipal infrastructure constructed. To be completed by 30 June 2015.

Shuikou Lake components has been completed as 87.9%.

Ongoing

Completed.

Construction is completed.

Individual consultants have been engaged to assist the initial phase of project implementation. A consulting firm has been engaged for the overall project management.

PMOs of Guangxi and project cities have assigned female coordinators, respectively, since the end of 2012 to coordinate implementation of gender action plan.

To be updated.

To be updated.

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

The project is classified under environment category A. Major adverse impacts of the project include air, water, and acoustic pollution during the construction period. In general, these impacts are temporary and/or localized. An environmental impact assessment (EIA) has been prepared for each of the six investment components in accordance with relevant laws and regulations of the PRC. Mitigating measures have been included in the EIA to prevent, eliminate, or minimize the adverse impacts. The PRC's authorities have approved the six EIAs. ADB reviewed a report summarizing the findings of the six EIAs to ensure they comply with ADB's environmental assessment requirements prescribed in its Environment Policy (2002). The summary EIA (SEIA) has been prepared with a detailed environmental management plan (EMP). The SEIA was circulated to the Board on 26 February 2010. The implementation of the EMP will be under the internal monitoring of the GPMO and municipal project management offices, and the external monitoring provided by an independent environmental monitoring agency.

The project is expected to provide multiple incremental improvements to the environment, including the benefits arising from better urban roads and the related municipal infrastructure system, the protected and upgraded coastal areas in Fangchenggang City, and the rehabilitated ecosystem of the Shuikou Lake in Chongzuo City. The environmental improvements also include stronger climate change resilience in Fangchenggang City and Chongzuo City.

Involuntary Resettlement

The overall land acquisition and resettlement impact for the project will be significant. The project will acquire 4,550 mu (303 ha; 1 mu = 0.0667 ha) of land permanently, of which 12.38% is classified as farmland. Permanent land acquisition will affect 924 households or 4,474 persons. Temporary acquisition of 586 mu (39 ha) of land will affect 97 households or 349 persons. House demolition will require the relocation of 508 households. Two public institutions and one enterprise with 500 employees and 111 students will be affected. Removal of illegal structures (26,123 square meters) used for aquaculture will affect the livelihoods of 89 households with 725 persons. Associated productive assets, ground attachments, and basic infrastructure facilities will also be affected.

To address the land acquisition and resettlement impacts, three full resettlement plans, one full resettlement plan with due diligence, and one short resettlement plan have been prepared for the investment components in accordance with the ADB Involuntary Resettlement Policy (1995) and the relevant laws and regulations of the PRC.

The government and GZARG have assured ADB that the resettlement plans will be updated during engineering design, taking into account the results of detailed measurement. The updated resettlement plans will be submitted to ADB for concurrence before awarding related civil works contracts, and will be disclosed in Chinese language to the project-affected persons. The compensation for lost assets and resettlement allowance will be paid to the affected persons, and the livelihood rehabilitation arrangements will be made in accordance with the updated resettlement plan before beginning related civil works.

The government and GZARG have further assured ADB that the resettlement plans will be implemented in strict conformity with the ADB Involuntary Resettlement Policy. Implementation of the resettlement plans will be under internal monitoring and evaluation by the GPMO, and external monitoring and evaluation by an independent monitoring agency. Detailed monitoring and reporting arrangements are included in the project administration manual and the project agreement.

Indigenous Peoples Ethnic minority groups are the primary beneficiaries of the project. The ethnic minorities will not be adversely affected, except in the context of resettlement. Like the other residents living in the project area, the ethnic minorities will be affected. The project was classified under category B in accordance with the ADB Policy on Indigenous Peoples (1998). Special actions are planned and agreed with the government and GZARG in the resettlement plans to ensure that the interest and benefits of the ethnic minority groups will be properly protected and the poverty reduction impact will be achieved.
Stakeholder Communication, Participation, and Consultation
During Project Design The Project has been developed with stakeholder participation and consultation including consultation meetings, house-to-house surveys, consultation with the municipal government of the Project Cities and domestic design institutes, and consultation workshops with project-affected households and communities, particularly in the context of preparing environmental impact assessment, preparation of the resettlement plans, and formulation of the ethnic minority development plan.
During Project Implementation tbd
Business Opportunities
Consulting Services Consultants will be recruited in line with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). The consulting services will cover two general areas: (i) to provide management support for GPMO, MPMOs, and PICs to ensure the project implementation will comply with ADB policy and procedural requirements; and (ii) to support the capacity development in GZRG and the Project cities in the field of planning and implementation of sustainable and integrated transportation systems and service delivery mechanisms along the development of urban infrastructure. The Project will engage a consulting firm using quality-and-cost based selection method (80:20 ratio) with full technical proposal procedures. An additional 4 person months of national consulting services in the fields of project management and resettlement will be engaged in advance on individual basis to ensure timely implementation of the Project.
Procurement All procurement to be financed under the ADB loan will be carried out in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). Contracts for goods estimated to exceed $1 million and contracts for works estimated to exceed $10 million will be procured using international competitive bidding (ICB) procedures. Contracts for goods and for works estimated to cost less than the ICB threshold values, but more than $100,000 will be procured on the basis of national competitive bidding (NCB) procedures in accordance with the PRC Tendering and Bidding Law (1999), subject to modifications agreed upon with ADB. Contracts for goods and works estimated to cost $100,000 or less will be procured using shopping procedures.
Responsible ADB Officer Bai Jie
Responsible ADB Department East Asia Department
Responsible ADB Division PRC Resident Mission
Executing Agencies
Guangxi Zhuang Autonomous Region Govt (GZARG)No. 1 Minle Road, Nanning, Guangxi
PRC 530012
Timetable
Concept Clearance 23 Nov 2009
Fact Finding 22 Nov 2009 to 27 Nov 2009
MRM 08 Jan 2010
Approval 26 Jul 2010
Last Review Mission -
PDS Creation Date 16 Nov 2009
Last PDS Update 20 Mar 2015

Loan

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 73.48 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 73.48 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

Loan 2657-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Jul 2010 24 Jan 2011 19 May 2011 31 Dec 2015 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 223.48 Cumulative Contract Awards
ADB 150.00 26 Jul 2010 146.65 0.00 98%
Counterpart 73.48 Cumulative Disbursements
Cofinancing 0.00 26 Jul 2010 89.48 0.00 60%
Title Document Type Document Date
Amendment to Loan Agreement for Guangxi Southwestern Cities Development Project (A2) Loan Agreement (Ordinary Resources) Aug 2014
Amendment to Loan Agreement for Guangxi Southwestern Cities Development Project (A1) Loan Agreement (Ordinary Resources) Apr 2014
Guangxi Southwestern Cities Development Project Procurement Plans Apr 2014
Loan Agreement for Guangxi Southwestern Cities Development Project between People's Republic of China and Asian Development Bank Loan Agreement (Ordinary Resources) Aug 2010
Guangxi Southwestern Cities Development Project Project/Program Administration Manual Jul 2010
Guangxi Southwestern Cities Development Project Reports and Recommendations of the President Jun 2010
Guangxi Southwestern Cities Development Project Summary Poverty Reduction and Social Strategies Jun 2010
Guangxi Southwestern Cities Development Project Consultants' Reports Apr 2010
Guangxi Southwestern Cities Development Project Design and Monitoring Frameworks Dec 2009

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Guangxi Southwestern Cities Development Project: Environmental Monitoring Report (March 2015) Environmental Monitoring Reports Mar 2015
Guangxi Southwestern Cities Development Project - External Resettlement Monitoring and Evaluation Report Nos. 1 and 2: Disclaimer Note Social Monitoring Reports Jan 2015
Guangxi Southwestern Cities Development Project - Shijinglin Road Extension: Resettlement Due Diligence Report Safeguards Due Diligence Reports Oct 2014
Guangxi Southwestern Cities Development Project: Environmental Monitoring Report (October 2014) Environmental Monitoring Reports Oct 2014
Guangxi Southwestern Cities Development Project - External Resettlement Monitoring and Evaluation Report No. 2: Social Monitoring Report Social Monitoring Reports Sep 2014
Guangxi Southwestern Cities Development Project Environmental Monitoring Reports Jun 2014
Guangxi Southwestern Cities Development Project: External Resettlement Monitoring Report No.1 Social Monitoring Reports Jan 2014
中国:广西壮族自治区百色市城南环路建设项目 Environmental Monitoring Reports Nov 2012
中国:广西壮族自治区百色市龙旺大桥工程项目 Environmental Monitoring Reports Nov 2012
Guangxi Southwestern Cities Development Project: Chongzuo City Shuikou Lake Environmental Improvement (Updated) Resettlement Plans Jul 2012
Guangxi Southwestern Cities Development Project: Fangchenggang City Urban Road Network and Related Municipal Infrastructures Component (Updated) Resettlement Plans Apr 2012
Guangxi Southwestern Cities Development Project: Indigenous Peoples Assessment and Measures Indigenous Peoples Plans/Indigenous Peoples Development Plans Jun 2010
Guangxi Southwestern Cities Development Project: Involuntary Resettlement Assessment and Measures Resettlement Plans Jun 2010
Guangxi Southwestern Cities Development Project: Summary Environmental Impact Assessment Summary Environmental Impact Assessments Feb 2010
Guangxi Southwestern Cities Development Project: Fangchenggang City Coastal Protection and Upgrading Resettlement Plans Jan 2010
Guangxi Southwestern Cities Development Project: Fangchenggang City Urban Road Network and Related Municipal Infrastructures Component (Draft) Resettlement Plans Jan 2010
Guangxi Southwestern Cities Development Project - Baise City Urban Road Network and Related Municipal Infrastructures Component and Longwang Bridge Component (Updated March 2012) Resettlement Plans Dec 2009
Guangxi Southwestern Cities Development Project: Fangchenggang City Urban Road Network and Related Municipal Infrastructures Component (Final) Resettlement Plans Dec 2009
Guangxi Southwestern Cities Development Project: Chongzuo City Shuikou Lake Environmental Improvement Resettlement Plans Dec 2009
Guangxi Southwestern Cities Development Project: Chongzuo City Urban Road Network and Related Municipal Infrastructures Resettlement Plans Dec 2009

Evaluation Documents

See also: Independent Evaluation

No documents found.


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