China, People's Republic of: Gansu Tianshui Urban Infrastructure Development Project

Sovereign Project | 43025-013 Status: Approved

Summary

ADB is helping the People's Republic of China upgrade urban services and improve living conditions in Tianshui City in Gansu province. The project will build roads and bridges, strengthen flood control facilities, and introduce an environmentally friendly heating system using recycled wastewater. It will also support institutional development and help strengthen urban management capacity.

Latest Project Documents

Consulting Notices See also: CMS

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Procurement Notices See also: Operational Procurement

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Procurement Documents


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Project Name Gansu Tianshui Urban Infrastructure Development Project
Project Number 43025-013
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2760-PRC: Gansu Tianshui Urban Infrastructure Development
Ordinary capital resources US$ 100.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Energy - Energy utility services

Transport - Urban roads and traffic management

Water and other urban infrastructure and services - Other urban services - Urban policy, institutional and capacity development

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project aims to promote balanced and environmentally sustainable urbanization, and to improve living conditions in Tianshui, a second-tier city in Gansu province, PRC. It will support the restructuring and expansion of the Qinzhou district heating network; construction of urban roads and bridges, and related services such as better flood control; and stronger urban management capacity.
Project Rationale and Linkage to Country/Regional Strategy

Gansu province has the PRC's second-lowest gross domestic product per capita -- Tianshui municipality's 3.6 million inhabitants include 640,000 urban dwellers in Qinzhou and Maiji districts with an estimated urban poverty rate of 13.5% (2009). Development barriers include poor infrastructure and Gansu's remote inland location. Transport links are being improved through expressway and rail construction, and in July 2009 the State Council approved the establishment of the Guanzhong-Tianshui Economic Zone (GTEZ). By 2020, the GTEZ is intended to become the northwest PRC's economic backbone. Specific objectives are the promotion of economic reform, creation of an open economic zone, and transport improvements for all, thereby attracting investment and corporations. Tianshui's urban population will increase as rural migrants seize economic opportunities in the GTEZ. The influx of industries and migrants will pressure Tianshui's infrastructure.

Although positioned as an economically developed, environment-friendly, and livable city, Tianshui faces urban development challenges. These include poor district heating and air quality, seasonal flooding, and inadequate urban transportation. The rationale for the project is addressing these urban development challenges and so enabling Tianshui to meet urbanization pressures and maximize GTEZ-related benefits.

Impact Better living conditions in Tianshui municipality.

Project Outcome

Description of Outcome Improved heating, transport and flood control services in Tianshui municipality.
Progress Toward Outcome Being achieved.
Implementation Progress
Description of Project Outputs

1. Qinzhou district's upgraded heating network is operating.

2. Chengji road and flood control facilities are operating.

3. Urban roads and bridges are opened to traffic and related services are operating.

4. Capacity developed and institutions strengthened.

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

The project is expected to be extended to complete the heating subproject. As of 29 March 2016, cumulative contract awards and disbursements are $71.6 million (71.6% of total loan amount) and $61.9 million (61.9% of total loan amount).

Tianshui municipal government (TMG) is the executing agency, and Tianshui Urban Construction and Investment Group (TUCIC) and Tianshui Heating Company (THC) are the implementing agencies. The project implementation progress of components 2 and 3 has been steady and smooth. Nine out of 10 contracts under component 2 and 3 have been awarded. Procurement under component 1 has not been started due to the change of the heat source.

A minor change in scope and implementation arrangement was approved on 9 September 2015 to accommodate: (i) change of associated facility for component 1: Qinzhou district heating network: due to 2 years of delay in the construction of the original combined heat and power (CHP) plant source as an associated facility under the project, in 2013, TMG decided to fully fund and build its own heat plant to supply heating to Qinzhou district without waiting for the CHP; (ii) partial cancellation of roads in Maiji road network (package C06) under component 3: to avoid unnecessary delay of project completion due to difficulty in timely resettlement, TMG proposed to cancel some parts of roads under a subcomponent package C06: Maiji road network, and it was confirmed that the urban road network of the Maiji new district remains fully functional without the cancelled portions of roads; (iii) change of procurement packaging for component 4: Capacity development and institutional strengthening: the TMG proposed to streamline the consulting packages from five to one since startup consultants (packages CS2 and CS3) were found not relevant by the time of the loan inception mission as the main loan implementation consultant firm under package CS1 was already mobilized; the tasks under packages CS4 and CS1 were found overlapping; and the contents of package CS5 were reviewed with TMG and deemed not relevant anymore for the project; and (iv) change of funding source: TMG informed ADB in August 2013 that it will no longer avail of the China Development Bank domestic loan for the project and the required financing would be covered by TMG.

Geographical Location

Safeguard Categories

Environment A
Involuntary Resettlement A
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects The project is classified as environment category A. The project environmental impact assessment (EIA) has been circulated to ADB's Board of Directors and was posted on the ADB website on 20 December 2010. It 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 (EMP) for the project. The completed domestic EIAs (in Chinese), based on extensive public consultations, comply with ADB's policies and requirements, including ADB's Safeguard Policy Statement (2009). The methods and standards applied in the preparation of domestic EIAs for the project components are in accordance with the guidelines of the Ministry of Environmental Protection, and also meet national and provincial laws and regulations. Although adverse environmental impacts are anticipated during the construction and operation of the project potential soil erosion, geological hazards, health and safety concerns caused by asbestos if no proper protection measures are taken, and increased traffic noise mitigation measures and the project EMP are expected to lessen these potential impacts. During construction, special attention will be paid to soil erosion protection, protection of surface water quality, occupational and community health and safety, and adequate disposal of de-construction waste. During operation, special attention will be paid to traffic noise, geological hazards such as mud- and landslides, and risks of spills during transportation of hazardous and toxic goods on project roads and bridges. The project's district heating component will significantly contribute to energy saving and GHG emission reductions, as well as improving residents' living conditions and the local environment; the urban transport component will help the city establish an efficient, safe, and sustainable urban transport system that includes facilities for public transport, pedestrian crossings, traffic management, and landscaping, which will benefit the local economy and local residents, and will contribute to vehicle emission reduction; and the flood control component will promote the river embankment to the 100-year flood protection standard so that the entire urban area will be adequately protected from flooding. The Tianshui Environmental Protection Bureau will support the executing agency and the implementing agencies in implementing the project EMP. Capacity building in environmental management will be provided for the executing agency and the implementing agencies. The executing agency disclosed relevant environment information to the affected people through consultations during April-October 2010, and the results and findings were used to modify the domestic EIAs and the project design.
Involuntary Resettlement The project is classified as resettlement category A, since construction of the project's subcomponents will necessitate significant land acquisition and resettlement. In total, the project will affect 17 village committees or community committees, 2 towns, 2 street offices, and 2 districts of Tianshui City. A total of 1,041.32 mu of land will be permanently acquired and 170 mu of land will be temporarily occupied during project implementation. The main land loss relates to construction of the Chengji road and flood control facilities. Land acquisition will affect 1,225 households and 5,593 persons. A total of 66,249 m2 of houses and buildings will be demolished, adversely impacting 416 households, 1,567 persons, and 70 small enterprises or institutions. These affected persons will benefit from the project through, for instance, improved air quality and transport access. The TPMO and the two implementing agencies will assume the overall responsibility of planning, implementation, financing, and reporting on land acquisition and resettlement activities. Two resettlement plans have been prepared for the project, have been endorsed by the executing agency and implementing agencies, and have been disclosed to affected people in local languages. The resettlement plans will be updated based on the final design and detailed measurement survey, disclosed to affected persons in local language and submitted to ADB for review and approval before awarding civil works contracts. A grievance procedure has been established for the affected persons. The TPMO will submit an internal monitoring report semiannually to ADB on the progress of resettlement implementation. The TPMO will also employ an external monitoring institute or firm that will submit semiannual monitoring reports to ADB during resettlement implementation, and annually for 2 years after resettlement completion.
Indigenous Peoples The project is classified as indigenous peoples category C, as the project areas have low numbers of ethnic minority residents (1.58% of the population) who are integrated economically and socially into the broader society. No adverse impacts from actions such as resettlement or land acquisition, particularly on ethnic minorities, were identified.
Stakeholder Communication, Participation, and Consultation
During Project Design Public disclosure of all project documents was made at the project management office and on the Asian Development Bank (ADB) website, including the project information document, design and monitoring framework, SDAP, resettlement plans, consolidated environmental impact assessment, environmental awareness program, report and recommendation of the President, public sector legal agreement, project administration memorandum, and social, environmental, and labor reemployment monitoring reports. A project information document was prepared for each subproject. Booklets outlining the resettlement plans were distributed to affected households and disclosure meetings were held. Copies of the booklet are available at the respective project management offices and each affected village office.
During Project Implementation Consultation activities are continuing during project implementation. For instance, the labor reemployment plan requires that all workers shall be consulted on their work plan and future employment before the closure of small boilers.

Business Opportunities

Consulting Services

QCBS: 97 person-months ($1.299 million)

ICS: 6 person-months ($0.135 million)

All consultants will be recruited according to ADB's Guidelines on the Use of Consultants (2010, as amended from time to time).

Procurement

International competitive bidding: 4 contracts ($23.7 million)

National competitive bidding: 15 contracts ($98.8 million)

Shopping: 10 contracts ($0.600 million)

All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines. International competitive bidding (ICB) will be used for civil works contracts estimated to cost $10 million and above. National competitive bidding (NCB) will be used for civil works contracts estimated to cost $100,000 or more, but below $10 million. For goods and equipment, ICB will be used for contracts estimated to cost $1 million and above, while NCB will be used for goods and equipment below $1 million equivalent. Under NCB, before the start of any procurement ADB and the government will review the public procurement laws of the central and state governments to ensure consistency with ADB's Procurement Guidelines. For NCB, the first draft English language of the procurement documents (prequalification, bidding documents, draft contract) should be submitted for ADB approval regardless of the estimated contract amount. Subsequent procurements are subject to post review. All ICB contracts are subject to prior review. Prior review and approval of ADB of the procurement documents (prequalification, bidding, contract) is required.

Responsible Staff

Responsible ADB Officer Xinjian Liu
Responsible ADB Department East Asia Department
Responsible ADB Division PRC Resident Mission
Executing Agencies
Municipal Govt. of Tianshui
No. 34, Minzhu (west) Road Tianshui, Gansu, P.R.C.
741000

Timetable

Concept Clearance 14 Sep 2010
Fact Finding 18 Oct 2010 to 01 Nov 2010
MRM 01 Feb 2011
Approval 29 Jun 2011
Last Review Mission -
PDS Creation Date 02 Feb 2010
Last PDS Update 29 Mar 2016

Loan 2760-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Jun 2011 25 Oct 2011 14 May 2012 31 Dec 2016 31 Dec 2018 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 229.60 Cumulative Contract Awards
ADB 100.00 29 Jun 2011 71.41 0.00 71%
Counterpart 129.60 Cumulative Disbursements
Cofinancing 0.00 29 Jun 2011 64.97 0.00 65%
Title Document Type Document Date
Amendments to the Project Agreement for Loan 2760-PRC: Gansu Tianshui Urban Infrastructure Development Project Project/Program Agreement Mar 2016
Amendments to the Loan Agreement (Ordinary Operations) for Loan 2760-PRC: Gansu Tianshui Urban Infrastructure Development Project Loan Agreement (Ordinary Resources) Mar 2016
Gansu Tianshui Urban Infrastructure Development Project Procurement Plans Oct 2013
Loan Agreement for Gansu Tianshui Urban Infrastructure Development Project between the People's Republic of China and Asian Development Bank dated 25 October 2011 Loan Agreement (Ordinary Resources) Oct 2011
Project Agreement for Gansu Tianshui Urban Infrastructure Development Project between Asian Development Bank and People's Government of Gansu Province and People's Government of Tianshui Municipality dated 25 October 2011 Project/Program Agreement Oct 2011
Gansu Tianshui Urban Infrastructure Development Project Reports and Recommendations of the President Jun 2011
Gansu Tianshui Urban Infrastructure Development Project Summary Poverty Reduction and Social Strategies Jun 2011
Gansu Tianshui Urban Infrastructure Development Project Gender Action Plans Jun 2011
Gansu Tianshui Urban Infrastructure Development Project Project/Program Administration Manual Jun 2011
Gansu Tianshui Urban Infrastructure Development Project Design and Monitoring Frameworks Mar 2011
Gansu Tianshui Urban Infrastructure Development Project Initial Poverty and Social Analysis Sep 2009

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.

Title Document Type Document Date
Gansu Tianshui Urban Infrastructure Development Project: Resettlement Monitoring and Evaluation Report No. 8 Social Monitoring Reports Mar 2016
Gansu Tianshui Urban Infrastructure Development Project: Environmental Monitoring Report (May-October 2015) Environmental Monitoring Reports Jan 2016
Gansu Tianshui Urban Infrastructure Development Project: Addendum to the Consolidated Environmental Impact Assessment Environmental Impact Assessments May 2015
Gansu Tianshui Urban Infrastructure Development Project: Environmental Monitoring Report (May 2015) Environmental Monitoring Reports May 2015
Gansu Tianshui Urban Infrastructure Development Project: Resettlement Monitoring and Evaluation Report No. 6 Social Monitoring Reports Mar 2015
Gansu Tianshui Urban Infrastructure Development Project: Environmental Monitoring Report (February 2015) Environmental Monitoring Reports Feb 2015
Gansu Tianshui Urban Infrastructure Development Project: District Heating Component Resettlement Plan Resettlement Plans Sep 2014
Gansu Tianshui Urban Infrastructure Development Project: Resettlement Monitoring and Evaluation Report No. 5 Social Monitoring Reports Aug 2014
Gansu Tianshui Urban Infrastructure Development Project: Environmental Monitoring Report (April 2014) Environmental Monitoring Reports Apr 2014
Gansu Tianshui Urban Infrastructure Development Project: Resettlement Monitoring and Evaluation Report No.4 Social Monitoring Reports Mar 2014
Gansu Tianshui Urban Infrastructure Development Project: Environmental Monitoring Report (January 2014) Environmental Monitoring Reports Jan 2014
Gansu Tianshui Urban Infrastructure Development Project: Resettlement Monitoring and Evaluation Report No. 3 Social Monitoring Reports Jul 2013
Gansu Tianshui Urban Infrastructure Development Project - Road and Bridge Component Resettlement Plans Jul 2013
Gansu Tianshui Urban Infrastructure Development Project: Social Monitoring Report Social Monitoring Reports Jul 2013
Gansu Tianshui Urban Infrastructure Development Project: Environmental Monitoring Report (March 2013) Environmental Monitoring Reports Mar 2013
Gansu Tianshui Urban Infrastructure Development Project: Resettlement Monitoring and Evaluation Report No. 1 Social Monitoring Reports Jul 2012
Gansu Tianshui Urban Infrastructure Development Project: Summary Resettlement Plan (as of Board approval) Resettlement Plans Jun 2011
Gansu Tianshui Urban Infrastructure Development Project: Environmental Impact Assessment (as of Board approval) Environmental Impact Assessments Jan 2011
Gansu Tianshui Urban Infrastructure Development Project - District Heating Component Resettlement Plans Jan 2011
Gansu Tianshui Urban Infrastructure Development Project - Road and Bridge Component Resettlement Plans Jan 2011
Gansu Tianshui Urban Infrastructure Development Project Environmental Impact Assessments Dec 2010

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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