Nonsovereign (Private) Project | 42936-014 Status: Approved
Project Number 42936-014
Country China, People's Republic of
Type or Modality of Assistance
7310 Equity USD 10.00 million Approved
7310/2627 Loan USD 250.00 million Approved
7310/54 B-Loan USD 100.00 million Approved
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Water and other urban infrastructure and services / Urban sanitation - Urban water supply

Gender Equity and Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 2
Responsible ADB Officer Roberts, Scott C.
Project Sponsor(s)
Objectives and Scope The project, which provides for an equity investment and loan by ADB, will support the expansion and capital expenditure plan of TWE to build, rehabilitate, expand, upgrade, privatize, and/or operate water supply and wastewater treatment facilities in the SRB, the PRC.
Status of Development Objectives The project is deemed to have achieved reduction in pollution and improved water supply and Wastewater management in the SRB through PPP. Wastewater treatment subprojects in the project counties and cities in Heilongjiang province will treat 750 million tons of wastewater per annum and wastewater collection and treatment rate in the project counties and cities in Heilongjiang and Jilin provinces has increased to more than 70%. There has been improvement and expansion of water supply services, and wastewater treatment in the project counties and cities in Heilongjiang and Jilin provinces. At least 2 million m3/day additional capacity of WWTPs in Heilongjiang and Jilin provinces were installed throught he project.
Status of Operation/Construction

The A-loan was signed on 6 December 2010 and ADB disbursed CNY250 million on 14 December 2010. First repayment was on 11 December 2012 and the loan's outstanding balance is at CNY189.66million. The B-loan has not yet been syndicated. As of September 2014, the company operates 15 WWTP sites with a total processing capacity of 1.94 million tons per day and three municipal water utilities of around 900,000 tons per day of treatment and delivery capacity. Of its WWTP operations, approximately 93% of capacity is contracted under take-or-pay minimum volumes. For the water utilities, LJEP operates as a service monopoly; during 2013, the volume of water supplied accounted for 50% of utility capacity, with future utilization rates expected to increase with per-capita increases in water use, the connection of newly urbanizing zones, and a continuing program by local authorities to shut independent wells (required by policy so as to meet national standards for urban water quality).

A further 2 WWTP projects are under construction or planning stage, and will be completed by December 2014; after a brief commissioning period (typically 1-2 months), COD will be in early 2015. The WWTP additions represent an incremental 10% in the company's wastewater capacity. Another 3 projects in sludge treatment and disposal are also underway, with the Harbin Pingfang District Sludge Project being the largest, at 650 t/d of capacity.

Linkage to Country/Regional Strategy The project is consistent with ADB's Strategy 2020, which identified infrastructure and environment as two of the five core areas in which ADB will employ its financial and institutional resources to maximize results, efficiency, and impact. To contribute to public health, in urban infrastructure ADB will focus on water supply, sanitation, and waste management. The project is likewise in line with ADB's country strategy and program in the PRC, which has improving the environment as one of its five priority areas of focus. The project reflects the infrastructure focus of ADB's private sector operations in the PRC. The project is consistent with ADB's Water Policy and the Water Financing Program 2006 2010. In response to the huge unmet water needs in Asia and the Pacific, and consistent with the recommendations of various international initiatives to double water investments, ADB has made water a core business area and envisages doubling its water investments to more than $2 billion annually.
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is classified category B and will be implemented through various types of PPP projects to address a long-existing water crisis by improving water pollution and reducing environmental degradation in the SRB. The project also falls under the category of general corporate finance in Safeguards Requirements 4 (Special Requirements for Different Finance Modalities, section H) of ADB's Safeguard Policy Statement. ADB's environmental due diligence covered the initial environmental examination of operational wastewater treatment facilities under the Songhua River Basin Water Pollution Control and Management Project, and a corporate audit was undertaken by ADB of TWE's past and present performance with regard to environmental and social safeguards.
Involuntary Resettlement None of the plants operated by TWE entailed involuntary resettlement impacts. The project is categorized as B and as required under ADB's Safeguard Policy Statement, TWE has adopted an ESMS that includes resettlement policy principles and procedural requirements governing preparation and implementation of subproject WWTPs, arrangements for due diligence on any prior land acquisition and resettlement undertaken by the local governments, information disclosure, meaningful consultation and grievance redress, budgets, capacity development requirements, and monitoring and evaluation arrangements, among other elements. A satisfactory ESMS was adopted by TWE and submitted to ADB prior to disbursement for the purpose of financing the first subproject.
Indigenous Peoples The project is Category C with respect to impacts on indigenous peoples or ethnic minorities.
Stakeholder Communication, Participation, and Consultation Public consultations were conducted as part of the environmental and social assessment process undertaken for the Jiamusi, Mudanjiang, Taiping, and Xinyigou, wastewater treatment plant (WWTPs) and in accordance with national laws and provincial regulations on environmental assessment.
Timetable for assistance design, processing and implementation
Concept Clearance 30 Oct 2008
Credit Committee Meeting 05 Feb 2010
Approval 16 Apr 2010
PDS Creation Date 25 Jun 2009
Last PDS Update 03 Oct 2014

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.