China, People's Republic of: Chongqing Urban-Rural Infrastructure Development Demonstration Project

Sovereign Project | 42012-013

Summary

The project will demonstrate the following:

(i) Stronger water sector enterprises. The project will strengthen water enterprises and promote the integration of urban-rural water supply systems. It will upgrade the skills of operations staff, improves rural system operational performance and viability, and reduces operating losses;

(ii) Web-based project management and coordination mechanism. The mechanism initiated by the Chongqing project management office (PMO) will facilitate information exchange and networking of the executing agency, implementing agencies and units, ADB, and districts and/or counties;

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Consulting Notices

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Procurement Notices

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Procurement Documents


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Project Name Chongqing Urban-Rural Infrastructure Development Demonstration Project
Project Number 42012-013
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2648-PRC: Chongqing Urban-Rural Infrastructure Development Demonstration 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 - Rural water policy, institutional and capacity development - Rural water supply services
Transport - Road transport (non-urban)
Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The project will demonstrate the following:

(i) Stronger water sector enterprises. The project will strengthen water enterprises and promote the integration of urban-rural water supply systems. It will upgrade the skills of operations staff, improves rural system operational performance and viability, and reduces operating losses;

(ii) Web-based project management and coordination mechanism. The mechanism initiated by the Chongqing project management office (PMO) will facilitate information exchange and networking of the executing agency, implementing agencies and units, ADB, and districts and/or counties;

(iii) Watershed management and water quality monitoring. The project will support watershed management and water quality monitoring to strengthen environmental awareness and protection of watershed areas. It will also support parallel CMG environmental protection initiatives, which include a community hotline initiative in Fuling District to improve local pollution control compliance;

(iv) Rural water supply tariff reforms. The project will support tariff reforms by (a) making services affordable to the poor through tariffs that are reasonably set according to local conditions, (b) strengthening tariff-setting mechanisms, (c) increasing rural tariffs gradually to recover costs, and (d) gradual introduction of wastewater tariffs;

(v) Urban-rural road management, safety, and maintenance. The project's road components will closely integrate with the CMG's parallel improvement initiatives relating to road traffic and pedestrian safety; increased public transport services; and improvements in maintenance systems, tunnel management, and axle load inspections;

(vi) Climate-proofed designs. The project's road and water supply components and associated facilities, such as those for drainage, erosion control, and slope protection, will support climate change adaptation and disaster mitigation measures. Better road connectivity between villages and towns will provide alternative all-weather routes during natural calamities; and

(vii) Environmental awareness and sanitation education. A pilot demonstration activity grant of $50,000 will be provided to a women's federation to support and expand a health and hygiene program for the benefit of women and children in four villages of Yunyang and Youyang counties, including four schools with 2,300 students.

Project Rationale and Linkage to Country/Regional Strategy

Chongqing's urban-rural reform agenda is a priority of the State Council. The agenda calls for stimulating reforms in the less-developed western PRC, formulating an equitable urban-rural reform model for national replication, and providing for an ecologically safer environment. This urba-rural transformation is vital to allow Chongqing to become an important growth pole in western PRC, an economic center of balanced urba-rural development in the upper reaches of the Yangtze River, and the first city in western PRC to build a xiaokang (a moderately prosperous society in all respects). Embracing this challenge, the CMG is prioritizing the equitable and balanced development and urbanization of its two primary rural areas: the Three Gorges Reservoir catchment area northeast of its urban hub, and a poverty-stricken, ethnic minority area to the southeast. At the same time, the CMG recognizes the need for basic urban-rural infrastructure, together with sustainable ecological and environmental protection.

The project responds directly to these urban-rural and infrastructure challenges by providing essential road and water supply infrastructure to selected undeveloped rural areas. This will strengthen Chongqing's urban-rural links, support balanced and equitable development, and promote environmental protection and climate proofing. It is an innovative demonstration model that can be replicated nationally. The project prioritizes the poorer rural areas northeast and southeast of Chongqing. By providing urban-rural infrastructure, the project supports the CMG's efforts to improve living standards in outlying areas by targeting counties with high incidences of poverty and large minority populations. The project supports the State Council's recognition of Chongqing as the first provincial pilot area for integrated and equitable urban-rural development. It is also in line with the strategic priorities of the Asian Development Bank (ADB).

Impact Improved urban-rural environment and enhanced public health and quality of life for residents in the project area.
Project Outcome
Description of Outcome Improved urban-rural roads and water supply infrastructure in the eight component districts and counties.
Progress Toward Outcome --
Implementation Progress
Description of Project Outputs

1. Improved rural roads in Fuling and Qianjiang districts and Youyang, Xiushan, Yunyang, Fengjie, Wushan, and Chengkou counties

2. Constructed water supply in Youyang, Yunyang, Fengjie, Wushan, and Chengkou counties

3. Enhanced project management and institutional capacity

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

Procurement of 9 roads are completed. Construction is ongoing;

12 roads are under construction or will be constructed using domestic fund.

In progress.

In progress.

Construction of 6 water supply plants were completed; One is ongoing; Two water supply plants in Fengjie County were constructed using domestic funds.

An initial training plan was developed and national training workshops are being carried out. On-the-job training was provided in Chengkou in May 2012.

The web-based MIS which comprises project management, project performance management, internal administration management was developed and is operating with full function.

Consultants recruited and training workshops conducted.

Geographical Location Southern central part of the PRC, between the Qingzang highlands and the plains of the middle and lower Yangtze River
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples A
Summary of Environmental and Social Aspects
Environmental Aspects The project is classified as environment category A. The summary environmental impact assessment (EIA) has been circulated to ADB's Board of Directors and posted on the ADB website. The summary EIA concludes that the project has substantial environmental and socioeconomic benefits, and that its potential environmental impacts can be mitigated through the implementation of the environmental management plan. The completed EIAs, based on extensive public consultations, comply with ADB's policies and requirements including ADB's Environmental Assessment Guidelines (2003). The methods and standards applied in the preparation of EIAs for the project subcomponents are in accordance with the guidelines of the Ministry of Environmental Protection (formerly State Environmental Protection Administration), and also meet national and municipal laws and regulations. Although adverse environmental impacts are anticipated during the construction and operation of the project, mitigation measures and the environmental management plan are expected to mitigate these potential impacts. The designs of the road and water supply subcomponents also address a range of climate change issues. They do not significantly contribute to greenhouse gases or increase the region's vulnerability to climate change effects, and they promote the integration of adaptation measures into roads and water supply infrastructure development at the county level. Local environmental protection bureaus will support the implementing agencies in undertaking the environmental management plans. Capacity building in environmental management will be provided for the executing agency, implementing agencies, implementing units, and district and county environmental protection bureaus. The implementing agencies have disclosed relevant environment information to the affected people through consultations during 2008- 2009, and the results and findings were used to modify the EIAs and the project design.
Involuntary Resettlement Construction of the project's subcomponents will necessitate land acquisition and resettlement which have been addressed in the preparation of subproject resettlement plans. The project will acquire about 163.64 hectares (ha) of land, of which 85.37 ha is classified as cultivated land. In addition, 46.30 ha of land, one-third of which is farmland, will be occupied temporarily. Land acquisition will affect 4,238 households (17,456 persons). The project will also require the demolition of 37,059.20 square meters (m2) of residential houses, affecting 341 households (1,387 persons). In total, 4,952 households (20,561 persons) will be affected in eight districts and counties. Farmers affected by land loss will be compensated or mitigated based on local regulations. Compensation for standing crops, auxiliaries, and other assets will also be paid directly to the affected persons. Based on PRC regulations, about 1,539 affected persons will be given the opportunity to become urban residents. People losing housing in rural areas will receive cash compensation at replacement costs, or cash compensation for the structure plus house plots. Economic rehabilitation measures include (i) jobs during the construction and operation of the project; (ii) high-value crop production; (iii) promotion and development of new enterprises and self-employed secondary and tertiary businesses; (iv) technical training to the affected persons to increase their skills; and (v) special support to vulnerable groups. The cost estimate for land acquisition and resettlement for the 30 subcomponents is equivalent to CNY149.8 million in 2009 prices, including contingencies.
Indigenous Peoples he project will reduce poverty by ensuring that targeted poor communities have access to safe and reliable water supplies and upgraded and expanded road networks. This will incrementally improve the living conditions of residents and migrants by providing better and safer access to jobs and social services. The project's components will stimulate investment in the industry and the services sectors. Up to 80% of construction jobs created by the project may be classified as unskilled, and many are likely to be filled by the unemployed. Since unemployment is a primary cause of poverty in the project area, the poor will benefit disproportionately from the jobs it creates. About CNY44.7 million in employment benefits will be generated; and women, ethnic minorities, and poor people will be prioritized for jobs during construction. The project will reduce the incidence of waterborne diseases, cutting medical costs by up to CNY10 million per year during 2014- 2033.
Stakeholder Communication, Participation, and Consultation
During Project Design Extensive consultations were carried out during processing phase.
During Project Implementation Extensive consultatations are being conducted during project implementation.
Business Opportunities
Consulting Services

The Project includes provision of 22 person-months of international and 200 person-months of national consulting services to support the CPMO, IAs, and IUs in project implementation and management and institutional capacity building. The Halcrow China Ltd. in association with Chongqing International Investment Consultation Group Co., Ltd. (Halcrow Association) was engaged as the project consultant through QCBS in accordance with the Guidelines on the Use of Consultants by ADB and its Borrowers. The Halcrow Association commenced consulting services to the project on 14 July, 2011. The Inception Report of the consultant was submitted to ADB in October 2011.

Consulting services by a consulting firm are required for (i) technical assistance and training for project management, detailed design and procurement, (ii) O&M management plans for subproject roads and water supply components, (iii) development of water quality model, and (iv) compliance with safeguards requirements.

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).

Procurement thresholds:

ICB goods - $1 m and above; ICB works - $10 m and above

NCB goods - less than $1 m; NCB works - less than $10 m

Shopping goods - less than $0.1 m; Shopping works - less than $0.2 m

Responsible ADB Officer Chenglong Chu
Responsible ADB Department East Asia Department
Responsible ADB Division PRC Resident Mission
Executing Agencies
Chongqing Municipal GovernmentMr. Huang ChaoyongRoom 305, Jianfa Plaza, Honghuxilu Road,
Yubei District, Chongqing, PRC 401121
Timetable
Concept Clearance 10 Nov 2009
Fact Finding 13 Nov 2009 to 04 Dec 2009
MRM 12 Jan 2010
Approval 30 Jun 2010
Last Review Mission -
PDS Creation Date 12 Nov 2009
Last PDS Update 02 Mar 2015

Loan 2648-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Jun 2010 15 Oct 2010 11 Jan 2011 30 Jun 2016 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 215.60 Cumulative Contract Awards
ADB 100.00 30 Jun 2010 86.17 0.00 86%
Counterpart 115.60 Cumulative Disbursements
Cofinancing 0.00 30 Jun 2010 51.80 0.00 52%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Dec 2014
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Resettlement External Monitoring and Evaluation Report (July 2013 - October 2014) Social Monitoring Reports Oct 2014
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Guihua Bridge-Shilongping Road of Wushan County Resettlement Plan Resettlement Plans Jul 2014
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Jun 2014
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Pingshang-Qutang (Village) Road Subproject, Fengjie County Resettlement Plans May 2014
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Initial Environmental Examination Initial Environmental Examination May 2014
Chongqing Urban-Rural Infrastructure Development Demonstration Project: External Monitoring of the Ethnic Minorities Development Plan (July-December 2013) Social Monitoring Reports Dec 2013
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Environmental Monitoring Report (January-June 2013) Environmental Monitoring Reports Aug 2013
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Environmental Monitoring Report (July-December 2012) Environmental Monitoring Reports Apr 2013
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Wushan Road Sub-components Resettlement Plans Jan 2013
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Fengjie Road Sub-components Resettlement Plans Jan 2013
Chongqing Urban-Rural Infrastructure Development Demonstration Project: First Resettlement External Monitoring and Evaluation Report Social Monitoring Reports Aug 2012
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Youyang Longtan Water Supply Environmental Monitoring Reports Dec 2011
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Indigenous Peoples Assessment and Measures Indigenous Peoples Plans/Indigenous Peoples Development Plans Jun 2010
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Involuntary Resettlement Assessment and Measures Resettlement Plans Jun 2010
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Summary Environmental Impact Assessment Summary Environmental Impact Assessments Feb 2010
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Meijiang-Yun'ai Road Component Resettlement Plan Resettlement Plans Dec 2009
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Fengjie Water Supply Project Resettlement Plan Resettlement Plans Dec 2009
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Houba-Huangxi Road Component Resettlement Plan Resettlement Plans Dec 2009
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Yunyang County Rural Road Project Resettlement Plan Resettlement Plans Dec 2009
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Wushan Water Supply Component Resettlement Plan Resettlement Plans Dec 2009
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Fengjie County Road Reconstruction Component Resettlement Plan Resettlement Plans Dec 2009
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Chengguan Rural Road II Resettlement Plan Resettlement Plans Dec 2009
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Yunyang County Water Supply Project Resettlement Plan Resettlement Plans Dec 2009
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Wushan County Road Reconstruction Component Resettlement Plan Resettlement Plans Dec 2009
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Longtan Town and Mawang Town Water Supply Project Resettlement Plan Resettlement Plans Dec 2009
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Youyang County Road Reconstruction Component Resettlement Plan Resettlement Plans Dec 2009
Chongqing Urban-Rural Infrastructure Development Demonstration Project: Gaoguan Township Water Supply Component Resettlement Plan Resettlement Plans Dec 2009

Evaluation Documents

See also: Independent Evaluation

No documents found.


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