China, People's Republic of: Gansu Urban Infrastructure Development and Wetland Protection Project

Sovereign Project | 44020-013

Summary

The proposed project will have the following three components: (i) Development of Road Infrastructure in Dingxi City, (ii) Development of Urban Infrastructure and Wetland Protection in Zhangye City, and (iii) Project Management and Capacity Development. The proposed project will contribute to economic growth of the cities through integrating efficient and rational urban development with environmental improvement and wetland restoration and protection. In addition to the urban infrastructure improvement, the project will (i) increase capacity of the local government agencies to design and implement urban infrastructure development projects integrated with environmental improvement components; (ii) improve technical, financial, and managerial efficiency of the city's water supply company; (iii) improve urban services pricing and subsidization policies; (iv) improve traffic safety, management, and functionality of road infrastructure; and (v) develop a gender action plan.

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Consulting Notices

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Procurement Notices

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Procurement Documents


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Project Name Gansu Urban Infrastructure Development and Wetland Protection Project
Project Number 44020-013
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2903-PRC: Gansu Urban Infrastructure Development and Wetland Protection 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
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 proposed project will have the following three components: (i) Development of Road Infrastructure in Dingxi City, (ii) Development of Urban Infrastructure and Wetland Protection in Zhangye City, and (iii) Project Management and Capacity Development. The proposed project will contribute to economic growth of the cities through integrating efficient and rational urban development with environmental improvement and wetland restoration and protection. In addition to the urban infrastructure improvement, the project will (i) increase capacity of the local government agencies to design and implement urban infrastructure development projects integrated with environmental improvement components; (ii) improve technical, financial, and managerial efficiency of the city's water supply company; (iii) improve urban services pricing and subsidization policies; (iv) improve traffic safety, management, and functionality of road infrastructure; and (v) develop a gender action plan.
Project Rationale and Linkage to Country/Regional Strategy

The project (i) aims to improve living conditions and contribute to economic growth in Dingxi and Zhangye cities in the People's Republic of China's (PRC's) Gansu Province and (ii) supports the government's efforts to promote integrated urban infrastructure development and environmental protection.

Gansu, located in the northwest PRC, is the second poorest province in terms of gross domestic product per capita in the country. Despite buoyant economic growth in recent years, poor infrastructure and high transportation costs heavily constrained economic opportunities in the long-term. As part of the National Strategy for Development of the West, the government has focused on developing infrastructure (transport, municipal infrastructure, power, communication, and water resources) to stimulate and sustain economic growth in the province. The Asian Development Bank (ADB) has been actively supporting the government's efforts to stimulate Gansu's economic development. This project, together with other ADB-financed technical assistance and loan projects in the province, fully supports the above strategy.

Known as the eastern gateway because of its close proximity to the provincial capital of Lanzhou, the city of Dingxi has a population of 2.9 million with 21.38% living below the poverty line. The Wei River, one of the Yellow River's biggest tributaries flows through the district and is the major source of its water supply. Unfortunately, the city is surrounded by ravines in the north and highlands in the south which is responsible for its semi-arid topography, harsh winters, and scarce water resources. Lack of investments in infrastructure, particularly road networks has seriously threatened the flourishing of Dingxi's agriculture and natural resource-based industries.

Zhangye City is in the center of the Hexi Corridor which is part of the ancient Silk Road. It has a population of 1.28 million, 20.8% of which lives below the poverty line. The city is home to the 210,000 hectare-Zhangye wetlands which is one of the most critical aquatic ecosystems in the Northwest PRC. Twenty percent of the total wetland area has already vanished due to rapid urbanization combined with excessive water use and pollution. This has undermined the city's capacity to provide adequate water supply, flood control, biological diversity, and natural breeding grounds for rare species of birds and animals listed in the Annex of the China Conservation Law of Wild Animals. Meanwhile, the capacity to absorb increased population and rural migrants has become increasingly difficult due to infrastructure, environmental, and financial constraints. Consequently, sustainable urbanization and environmental protection have become priority goals for the city. Introduction of effective wetland protection technologies alongside urban infrastructure development and efficient urban development management in the city's Binhe district will help improve the urban environment and boost eco-tourism, real estate development, transportation, and other sectors of the city's economy.

Impact Socioeconomic development and improved environment in Dingxi and Zhangye
Project Outcome
Description of Outcome Improved urban infrastructure, municipal services, and environment in Dingxi and Zhangye cities
Progress Toward Outcome

Inception mission fielded on 23-28 Aprill 2013 and noted that the project has been making significant progress. The project scope, objectives, costs, and financing plan remained generally the same as at the appraisal stage.

Procurement has commenced and six NCB civil works contracts have been awarded. First review mission is planned August 2014.

Implementation Progress
Description of Project Outputs

3. Restored and protected wetland in Zhangye

1. Improved urban infrastructure operating in Dingxi

2. Improved urban infrastructure operating in Zhangye

4. Capacity developed and institutions strengthened

Status of Implementation Progress (Outputs, Activities, and Issues) Contracts for civil works have been awarded and some works have commenced to construct roads and road bridges in Zhangye and Dingxi.
Geographical Location Dingxi and Zhangye cities, Gansu Province
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is environment category A, primarily because of the Zhangye wetland protection component, which will support rehabilitation and protection activities in the experimental zone of the Zhangye Hei River Wetland National Nature Reserve. An environmental impact assessment was prepared, circulated to the Board of Directors, and posted on the ADB website on 2 March 2012. It complies with ADB's Safeguard Policy Statement (2009). The project will have substantial environmental and socioeconomic benefits, restoring and protecting 1,400 ha of wetland habitat. Potential negative environmental impacts associated with the project have been identified, and adequate mitigation and monitoring arrangements have been incorporated in the environmental management plan. Potential adverse impacts during construction and operation include soil erosion from earthworks, recommended alteration of a legally protected area, traffic noise in some sensitive areas, potential impact of the water supply component, significant spoil disposal, community occupational health and safety risks during construction, and limited standard construction impacts. These impacts will be prevented or minimized to an acceptable degree if the environmental management plan is effectively implemented. The environmental management plan is supported by loan covenants and capacity development and institutional strengthening under the project. A system to manage water quality and wetlands will be developed to monitor the ecological status of wetlands. As the executing agency, the Gansu provincial finance department disclosed relevant environment information to affected people, and the results and findings of consultation were used to modify the environmental impact assessment and project design. Consultation and public participation will continue throughout project implementation, and any environmental complaints or disputes will be handled by the grievance redress mechanism established for the project.
Involuntary Resettlement The project is resettlement category A, as construction will require significant land acquisition and resettlement. The project will affect 62 village groups, 16 villages, 2 towns, and 2 districts in the project cities. A total of 245.7 ha of land will be acquired permanently and 8 ha occupied temporarily during implementation, affecting 3,327 households with 12,264 members whose land will be acquired. Houses and other buildings totaling 215,829 square meters of floor space will be demolished, which will affect 698 households with 2,527 members and 51 enterprises or institutions. Resettlement plans have been prepared for the Dingxi and Zhangye urban infrastructure components, and a due diligence report has been prepared for the wetland protection component in Zhangye. Resettlement plans will be finalized based on the final design and detailed measurement survey, disclosed to affected people in the local language, and submitted to ADB for review and approval before civil works contracts are awarded. A grievance redress mechanism has been established for affected people. The PMOs will (i) submit internal monitoring reports semiannually to ADB and (ii) engage an external monitor to conduct baseline studies of affected people, verify the progress of land acquisition and resettlement, assess its impacts, and submit semiannual monitoring reports for ADB's review during resettlement implementation and annually for 2 years after the completion of resettlement.
Indigenous Peoples The project is indigenous peoples category C. Ethnic minorities living in the project cities are well integrated economically and socially into the broader society. They will benefit equally from the project. No adverse impacts particular to ethnic minorities were identified.
Stakeholder Communication, Participation, and Consultation
During Project Design Major stakeholders include the government (national, provincial, municipal, and district levels); management of the water supply company; project beneficiaries; water supply and wastewater treatment service customers; and project area residents. Stakeholder analysis, including a household survey, will be conducted during PPTA implementation.
During Project Implementation Three stakeholder workshops will be conducted during PPTA implementation. Findings from the household survey will be used as inputs. Public consultation will be carried out by the executing agency, local government officials, design institutes, and other stakeholders during preparation of the feasibility study, poverty and social assessment, environmental impact assessment, and resettlement plan.
Business Opportunities
Consulting Services Recruitment of the consultants will be conducted in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time).
Procurement Procurement for the project will be undertaken in accordance with ADB' Procurement Guidelines (2010, as amended from time to time). A project procurement plan, including consulting services inputs required for project implementation and mode of the consultant recruitment, will be prepared during the TA implementation.
Responsible ADB Officer Stefan Rau
Responsible ADB Department East Asia Department
Responsible ADB Division Urban and Social Sectors Division, EARD
Executing Agencies
Gansu Provincial Finance BureauInternational Division
616, West Donggang Road
Lanzhou, Gansu, China 730000
Timetable
Concept Clearance 18 Aug 2010
Fact Finding 04 Mar 2012 to 11 Mar 2012
MRM 06 Jun 2012
Approval 26 Sep 2012
Last Review Mission -
Last PDS Update 30 Sep 2014

Loan 2903-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Sep 2012 26 Feb 2013 02 May 2013 30 Apr 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 255.34 Cumulative Contract Awards
ADB 100.00 26 Sep 2012 76.92 0.00 77%
Counterpart 155.34 Cumulative Disbursements
Cofinancing 0.00 26 Sep 2012 30.49 0.00 30%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory - - Satisfactory

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Gansu Urban Infrastructure Development and Wetland Protection Project: Environmental Monitoring Report (October 2014) Environmental Monitoring Reports Oct 2014
Gansu Urban Infrastructure Development and Wetland Protection Project: Resettlement Monitoring and Evaluation Report No. 2 Social Monitoring Reports Jun 2014
Gansu Urban Infrastructure Development and Wetland Protection Project: Dingxi Urban Infrastructure Development Component Resettlement Plans Dec 2013
Gansu Urban Infrastructure Development and Wetland Protection Project: Resettlement Monitoring and Evaluation Report (No. 1) Social Monitoring Reports Dec 2013
Gansu Urban Infrastructure Development and Wetland Protection Project: Dingxi Urban Infrastructure Development Component Resettlement Plan Resettlement Plans Oct 2013
Gansu Urban Infrastructure Development and Wetland Protection Project: Zhangye Urban Infrastructure Development Component Resettlement Plans Jul 2013
Gansu Urban Infrastructure Development and Wetland Protection Project: Zhangye Wetland Protection Component - Resettlement Due Diligence Report Resettlement Planning Documents May 2012
Gansu Urban Infrastructure Development and Wetland Protection Project: Zhangye Urban Infrastructure Development Component Resettlement Plans May 2012
Gansu Urban Infrastructure Development and Wetland Protection Project: Dingxi Urban Infrastructure Development Component Resettlement Plans May 2012
Gansu Urban Infrastructure Development and Wetland Protection Project Environmental Impact Assessments Apr 2012
Gansu Urban Infrastructure Development and Wetland Protection Project (Draft) Environmental Impact Assessments Feb 2012

Evaluation Documents

See also: Independent Evaluation

No documents found.


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