China, People's Republic of: Wuhan Urban Environmental Improvement Project

Sovereign Project | 42011-013

Summary

The proposed project is a key urban environmental initiative of Wuhan municipal government (WMG) with nationwide demonstration potential. The project will help WMG to (i) design and implement sustainable solutions for the management of wastewater treatment plant (WWTP) sludge, including its energy recovery and reuse of biosolids; (ii) improve water quality in urban lakes and water channels; (iii) reestablish water circulation and improve resilience to floods; (iv) improve the environment, living conditions, and public health standards; and (v) enhance public awareness of urban environmental and related public health issues.

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Project Name Wuhan Urban Environmental Improvement Project
Project Number 42011-013
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2647-PRC: Wuhan Urban Environmental Improvement Project
Ordinary capital resources US$ 100.00 million
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

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

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The proposed project is a key urban environmental initiative of Wuhan municipal government (WMG) with nationwide demonstration potential. The project will help WMG to (i) design and implement sustainable solutions for the management of wastewater treatment plant (WWTP) sludge, including its energy recovery and reuse of biosolids; (ii) improve water quality in urban lakes and water channels; (iii) reestablish water circulation and improve resilience to floods; (iv) improve the environment, living conditions, and public health standards; and (v) enhance public awareness of urban environmental and related public health issues.
Project Rationale and Linkage to Country/Regional Strategy

The project has a strong rationale both in terms of urban development and environmental improvement. It follows and complements two previous Asian Development Bank (ADB) loans, which have the objective of building the necessary wastewater treatment infrastructure in Wuhan. The project supports the PRC's country partnership strategy (2008-2010): promoting efficient infrastructure, strengthening environmental management, supporting inclusive growth, and balanced development. The project is part of Wuhan's master plan priorities on sanitation, environment improvements, and urban development and will contribute to establishing Wuhan City as a model for sustainable development in the PRC.

The project is the first ADB-assisted project to pursue comprehensive sludge management while fully attending to environmental concerns such as circular economy and climate change mitigation. The policy discussion between the executing agency and the project team introduced a decentralized and integrated approach for the sludge facilities---based on sludge digestion and drying for beneficial reuse through land application---fully complying with ADB policies and recognized by the PRC as the best practice to support the 3Rs policy of reduce, reuse, and recycle. By doing so, the project has also guided and reoriented the long-term original sludge master plan of the city based on centralized treatment and solo incineration, which is controversial in terms of compliance with ADB's climate change agenda.

The project will provide facilities to treat sludge from five of Wuhan's WWTPs and handle about half (or 350 tons/day [t/d]) of Wuhan's total sludge production. Three of these WWTPs were built under the earlier ADB-funded loans. Each of the three proposed sludge treatment plants will be built on site and will take advantage of the urban master plan advocating for an integrated, practical, and sustainable concept of urban environmental development. The project promotes environmentally friendly sludge digestion by (i) capturing and using clean biogas of an existing sludge facility financed by ADB, and (ii) using the steam of an existing thermal power plant to dry sludge at the sludge treatment plant. Both approaches reduce reliance on external energy sources required for the drying process. Subject to proper analysis monitoring and environmental safeguards, treated sludge will be used as soil conditioner, as construction material, and for rehabilitating damaged urban land.

The project will also pioneer the optimization of WWTPs' performance. This task will be carried out for the whole of Wuhan. It will improve the performance of infrastructure financed by two previous ADB projects (Wuhan Wastewater Management Project and Wuhan Wastewater and Stormwater Management Project [WWSMP]) in Wuhan. The core task will be to ensure the steady performance of the WWTPs, to achieve design effluent parameters, as well as improve sludge quality for its beneficial disposal.

The project will address key ecological and social needs to restore the ecological capacity, the natural hydraulic circulation, and water quality in urban surface water systems. It will increase water system resilience and promote integrated surface water management to improve the urban environment and reduce the risk of flooding. The project will unblock the channels connecting the lakes, and support the construction of wetlands to increase water regeneration and flood retention capacities in the Hanyang and Wuchang areas. In parallel, it will promote point source and nonpoint source pollution control, raise community environmental awareness, and conduct institutional strengthening. The creation of healthy and well-managed water systems in Wuhan will allow urban expansion in flood-safe and environmentally clean areas to support the city's sustainable development. The Yangtze flood plain area where Wuhan City is located is significantly vulnerable to climate change. The project will allow the restoration of the retention capacity of lake areas to mitigate climate change impacts and increase the resilience of the city to natural hazards, such as floods and drought, associated with climate change.

The project, which builds on experience of lake rehabilitation in the PRC, will be a model for lake rehabilitation and integrated surface water management in Wuhan and for the entire country. In addition, the project will support the development of a water quality model that will assist in long-term planning, water quality assurance and forecast, promoting water balance and emergency response.

The project will enhance environmental awareness to ensure the sustainability of infrastructure investments and to maximize long-term social benefits. The environmental awareness program will focus on three stakeholders who generate and are affected by point and nonpoint source pollution: (i) small businesses operating adjacent to the lake system, (ii) communities living in the project area, and (iii) schoolchildren in the project area. This program will help ensure that regulatory practices are well understood and that necessary behavior changes regarding nonpoint source pollution are addressed. A capacity building subcomponent will support further tariff reforms and will conduct a willingness-to-pay survey for sludge tariff setting in selected focus group and communities. These initiatives will assist WMG to achieve full cost recovery of both wastewater and sludge management services over the medium term (2018).

Impact Improved urban environment, public health, and living conditions in Wuhan Municipality
Project Outcome
Description of Outcome Integrated wastewater sludge treatment and disposal, and urban water resource management in Wuhan Municipality
Progress Toward Outcome

Minor change in scope for the lakes and channels rehabilitation component is under processing.

A new municipality sludge master plan was formulated. The changes that have affected the content of the integrated sludge management component. The change in scope is under processing. Current proposal remain similar as the one approved in the original feasibility study report. Those changes comply with the original proposal in promoting integrated, beneficial use and innovative sludge management solutions. The overall treatment capacity and the cost are similar to the original proposal.

Implementation Progress
Description of Project Outputs

1. Integrated Sludge Treatment and Disposal

1.1 Wuchangnan Sludge Treatment Plant

1.2 Hankou Sludge Treatment Plant

1.3 Nantaizihu Sludge Treatment Plant

1.4 Improvement of existing sludge treatment and transportation

2. Wuhan New Zone Lakes and Channels Rehabilitation and Pumping Station

2.1 Longyang Lake rehabilitation

2.2 Moshui Lake rehabilitation

2.3 Nantaizi Lake rehabilitation

2.4 Longkou Channel rehabilitation

2.5 Longxin Channel rehabilitation

2.6 Zhujiaxin Channel rehabilitation

2.7 Zong Channel rehabilitation

2.8 Liantong Channel rehabilitation

2.9 Huoyan Channel rehabilitation

2.10 Sixin Pumping Station

3. Yangchun Lake Secondary Urban Center Lake and Channel Rehabilitation

3.1 Yangchun Lake rehabilitation

3.2 Heping Channel rehabilitation

4. Capacity Building and Institutional Strengthening

4.1 Strengthening implementation capacity

4.2 Improving WUDDC operational management

4.3 Enhanced pollution source control

4.4 Improvements in public awareness

4.5 Implementation of advanced water management systems

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Wuhan
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

The project is classified as category "A" in ADB's environmental categorization. Extensive public consultation involving surveys, meetings with stakeholders, and focus group discussions were undertaken during the preparation of each environmental impact assessment (EIA). Four EIAs were prepared, one for each of the three main structural components, together with the EIA for Sixin pumping station. The EIAs are based on the national laws, regulations, and standards applicable in the PRC. According to the EIAs, the current water quality in the lakes and channels to be rehabilitated under the Project indicates that they are badly polluted (Grade V or worse), with serious eutrophication in the lakes.

The project will have substantial positive environmental and socioeconomic benefits, and by facilitating economic development will provide lasting benefits to assist in poverty reduction.

Involuntary Resettlement Category A. The land acquisition and resettlement impact for the project will be significant. Only components 2 and 3 of the project will entail land acquisition and resettlement impacts. Hongshan and Hanyang districts will be directly affected by the project, involving three street committees and 16 administrative villages. Resettlement plans for the Wuhan New Zone lakes/channels rehabilitation and pumping station component and Yangchun Lake secondary urban center lake/channel rehabilitation component have been prepared in accordance with government regulations and ADB policy, and disclosed to the affected people and the public. Internal and external monitoring arrangements are on-going.
Indigenous Peoples About 1% of the population in the project area is from an ethnic minority. The social analysis determined that they are well integrated economically and socially into the broader society. No adverse impacts, particularly on ethnic minorities, have been identified or are anticipated but employment of ethnic minorities is prioritized in the assurances. On the impact on indigenous peoples, the project is classified as category C.
Stakeholder Communication, Participation, and Consultation
During Project Design During project preparation, local government and line agencies, villagers, enterprises, local groups, and other people likely to be directly affected by the project were consulted. A total of 504 households and 100 businesses were surveyed during project preparation. Consultations indicate that the project has a high level of public support. A consultation and participation plan for the project has been prepared.
During Project Implementation

Public disclosure of all project documents at the PMO and on the ADB website including the project information document, DMF, RPs, summary environmental impact assessment (SEIA), Report and Recommendation of the President, project administration memorandum, and social and environmental monitoring reports.

Consultation with local government and line agencies, villagers, enterprises, local groups and people to be affected by the project is on-going.

Business Opportunities
Consulting Services

Provision has been made for about 42 person-months of international and 164 person-months of national consulting services, grouped into three packages to be funded under the Project to support the WPMO and the IA in project implementation and for capacity development of other key stakeholders. Consulting firms will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time). One consulting firm will be selected in accordance with the quality- and cost-based selection method (QCBS) for package 1 and two consulting firms will be selected in accordance with the quality based selection method (QBS) using full technical proposal procedures or simplified technical proposal procedure subject to the amount of proposed packages for package II and III. A fixed quality-cost ratio of 80:20 will be applied for QCBS. Consulting services will comprise three packages grouping various activities.

The consultancy services will involve international and national experts, with an international team leader and national deputy team leader. The Consultants would assist the PMO and IA in liaising and coordinating with ADB, assist with establishing PPMS procedures and preparation of semiannual reports to ADB, assist in safeguard issues, and promote the adoption of international standard practice for project management and monitoring systems. Capacity building and training activities would be provided to strengthen the PMO and IA's design and supervision, tariff setting and O&M procedures, public awareness program and dissemination of key knowledge products of the Project. The Consultants will work with the IA, Operational Unit (OU) and with other relevant government agencies and academic institutes as necessary, to provide assistance and advice on the tasks outlined below.

Procurement All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2010, as amended from time to time). The Project includes 42 packages: 36 will be procured under NCB, 6 will be procured under ICB, and 2 will be procured under Shopping.
Responsible ADB Officer Zheng Baochang
Responsible ADB Department East Asia Department
Responsible ADB Division PRC Resident Mission
Executing Agencies
Wuhan Municipal GovernmentMs. Yu Jinglingwangli5827@yahoo.com.cnNo. 40 Chang Qing Road, Wuhan, Hubei, P.R. China
Timetable
Concept Clearance 19 Oct 2010
Fact Finding 21 Oct 2009 to 06 Nov 2009
MRM 15 Dec 2009
Approval 30 Jun 2010
Last Review Mission -
PDS Creation Date 13 Nov 2009
Last PDS Update 31 Mar 2015

Loan 2647-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Jun 2010 15 Oct 2010 11 Jan 2011 30 Jun 2015 30 Jun 2017 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 225.40 Cumulative Contract Awards
ADB 100.00 30 Jun 2010 69.23 0.00 69%
Counterpart 125.40 Cumulative Disbursements
Cofinancing 0.00 30 Jun 2010 44.57 0.00 45%

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Wuhan Urban Environmental Improvement Project: Resettlement Monitoring and Evaluation Report No. 7 Social Monitoring Reports Jul 2015
Wuhan Urban Environmental Improvement Project: Semi-Annual Environment Monitoring Report (July-December 2014) Environmental Monitoring Reports Apr 2015
Wuhan Urban Environmental Improvement Project: Resettlement Monitoring Report No. 6 (December 2014) Social Monitoring Reports Feb 2015
Wuhan Urban Environmental Improvement Project: Resettlement Monitoring Report No. 6 (December 2014) (Chinese Translation) Social Monitoring Reports Feb 2015
Wuhan Urban Environmental Improvement Project: Environment Monitoring Report (January - June 2014) Environmental Monitoring Reports Jun 2014
Wuhan Urban Environmental Improvement Project: Environment Monitoring Report (March 2014) Environmental Monitoring Reports Mar 2014
Wuhan Urban Environmental Improvement Project - Yangchun Lake Secondary Urban Center Lake/Channel Rehabilitation Component: Resettlement Plan Resettlement Plans Dec 2013
Wuhan Urban Environmental Improvement Project - Wuhan New Zone Lake/Channels Rehabilitation and Pumping Station Component: Resettlement Plan Resettlement Plans Dec 2013
Wuhan Urban Environmental Improvement Project: Environment Monitoring Report (November 2013) Environmental Monitoring Reports Nov 2013
Wuhan Urban Environmental Improvement Project: Environment Monitoring Report (August 2012) Environmental Monitoring Reports Aug 2012
武汉城市环境改善项目: 环境监测报告 (2012年8月) Environmental Monitoring Reports Aug 2012
Wuhan Urban Environmental Improvement Project: Involuntary Resettlement Assessment and Measures Resettlement Planning Documents Jun 2010
Wuhan Urban Environmental Improvement Project: Summary Environmental Impact Assessment Summary Environmental Impact Assessments Feb 2010
Wuhan Urban Environmental Improvement Project: Yangchun Lake Secondary Urban Center Lake/Channel Rehabilitation Component Resettlement Plan (Final) Resettlement Plans Jan 2010
Wuhan Urban Environmental Improvement Project: Yangchun Lake Secondary Urban Center Lake/Channel Rehabilitation Component Resettlement Plan (Draft) Resettlement Plans Nov 2009

Evaluation Documents

See also: Independent Evaluation

No documents found.


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