China, People's Republic of: Guangxi Baise Integrated Urban Environment Improvement Project

Sovereign Project | 44022-023

Summary

The project will improve urban infrastructure and services, as well as the environment of Dongsun subdistrict of Baise, a city in the Guangxi Zhuang Autonomous Region (GZAR). By providing roads, bridges, and associated infrastructure including water supply and wastewater and storm water collection systems; river rehabilitation and flood control; upgraded community facilities; and capacity building, the project will contribute to urban renewal and sustainable development in Dongsun.

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Consulting Notices

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Project Name Guangxi Baise Integrated Urban Environment Improvement Project
Project Number 44022-023
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3035-PRC: Guangxi Baise Integrated Urban Environment Rehabilitation
Ordinary capital resources US$ 80.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change
Sector / Subsector

Agriculture, natural resources and rural development - Rural flood protection

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 will improve urban infrastructure and services, as well as the environment of Dongsun subdistrict of Baise, a city in the Guangxi Zhuang Autonomous Region (GZAR). By providing roads, bridges, and associated infrastructure including water supply and wastewater and storm water collection systems; river rehabilitation and flood control; upgraded community facilities; and capacity building, the project will contribute to urban renewal and sustainable development in Dongsun.
Project Rationale and Linkage to Country/Regional Strategy

Baise is in western GZAR and has an urban population of 260,000. Baise is one of the 14 key national poverty areas in the PRC. Dongsun subdistrict is a peri-urban area 4 kilometers (km) west of Baise's urban center. The Dongsun subdistrict industrial area was developed during 1950 1960, when a number of state-owned enterprises built factories and housing for its workers in the southwest of Baise along the Youjiang River. During 1980 1990, these plants' low production efficiency became increasingly apparent as subsidies to state-owned enterprises were removed and production costs were brought closer to market norms. Consequently, facilities closed, and others were sold or leased to private enterprises. Today, only the coal mine, fertilizer factory, and motor plant continue to operate in Dongsun.

After more than 50 years of state-led industrialization, Dongsun shoulders heavy socioeconomic and environmental burdens. Since 2008, employment has shrunk as factories closed and workers were laid off or took early retirement options. Local residents are highly dissatisfied with inadequate social services and infrastructure. First, current flood control capacity in the project area is unable to protect against a flood that occurs once in 50 years, which is the standard requirement. Second, without a wastewater collection system, factories and residential areas discharge untreated wastewater directly into the Dongsun stream, which flows into the Youjiang river and thus pollutes Baise's main source of drinking water. Third, the existing urban road network in Dongsun is inadequate for planned population growth, the resulting increased activity in residential and commercial areas, and proper links with other subdistricts. Fourth, solid waste transportation capacity must urgently be increased to mitigate the environmental pollution currently caused by uncontrolled solid waste dumping. Further, former and current industrial facilities have left Dongsun with localized moderate soil contamination. The detailed environmental site assessment undertaken under phase 1 of project preparatory technical assistance (PPTA) described the contamination and appropriate measures to clean it up.

The Baise Municipal Government (BMG) is modernizing its industry and developing three new industrial parks with higher environmental management standards. It decided to close down the remaining industrial operations in Dongsun, relocate some factories to the new industrial parks, and prioritize urban and economic regeneration in Dongsun. The Baise City Urban Master Plan, 2010 2030 has designated Dongsun as a residential district with green and environmentally friendly facilities. In 2011 2012, the BMG contracted Tongji University to prepare the Urban Design Plan and the Control Plan to establish the legal basis for improving Dongsun from 2013 to 2030. The plans called for creating a mixed-use community with residential, commercial, tourism, and recreational areas. The population at completion in 2030 is projected to be 34,000. The identification of polluted sites and the land-use plan recommended under phase 1 of the PPTA are accurately mapped in the Control Plan prepared by Tongji University. Sensitive land uses, such as for schools and housing, were restricted to uncontaminated land.

The Asian Development Bank (ADB) will play a vital role in redeveloping Dongsun by financing trunk infrastructure improvements and rehabilitating waterfronts along the Dongsun stream and Youjiang river. With all major arterial roads and associated water and wastewater piped networks financed under the project, the urban infrastructure built through the ADB project will catalyze private investment in residential, commercial, and mixed-used development. The project fits well with recent objectives of the Government of the PRC to balance future urbanization with greater attention to developing small and medium-sized cities. ADB's current and future operations focus on small and medium-sized cities in the central and western PRC.

The project will support private sector participation by creating additional demand for privatized wastewater treatment services. The existing build-operate-transfer wastewater treatment plant in Baise will soon enter the second phase of capital investment. The 12,000 new customers in Dongsun that the project will connect to the wastewater treatment plant will enhance the commercial viability of that investment.

The project is envisaged playing a demonstration role for other cities on how to regenerate strategically located urban land now burdened with outdated and uneconomic industries. Many similar industrial areas developed under the state-run enterprise industrial model during 1950 1960 still exist in cities across the PRC. These areas are characterized by production inefficiency, environmental degradation, unhealthy living conditions, and inadequate urban infrastructure. The multisector integrated approach to urban redevelopment adopted by the project can be adopted by other local governments to transform environmentally degraded neighborhoods into livable mixed-use residential areas.

Impact Development of Dongsun subdistrict, Baise City into an environment-friendly, inclusive, and livable city
Project Outcome
Description of Outcome Improved urban infrastructure and services in the Dongsun
Progress Toward Outcome Loan inception mission fielded on 9-11 June 2014. Draft bidding documents are being prepared. Recruitment for 2 consulting packages ongoing: (i) Project Implementation and Institutiional Strengthening Support, and (ii) Advance Start-up Support. Imprest account opened in December 2014.
Implementation Progress
Description of Project Outputs

1. Urban river rehabilitation and flood control

2. Urban transport and associated infrastructure

3. Community upgrading and development

4. Capacity building and project management.

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

1. Not yet started.

2. Preliminary design work of road network and the subprojects of infrastructure has been completed, and currently on the construction drawing design phase. Draft bidding documents are being prepared.

3. Not yet started.

4. Recruitment for 2 consulting packages ongoing: (i) Project Implementation and Institutiional Strengthening Support, and (ii) Advance Start-up Support.

Geographical Location Baise City, Guangxi Zhuang Autonomous Region
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects The environmental safeguard category is "B".
Involuntary Resettlement The involuntary resettlement safeguard category is "A".
Indigenous Peoples The indigenous peoples safeguard category is "B".
Stakeholder Communication, Participation, and Consultation
During Project Design A pre-reconnaisance mission was fielded to undertake consultation meetings with the officials from the concerned agencies of the Baise municipal government (BMG), visit the sites of the project, and conduct interviews with individuals, enterprises, and resident communities in the project area---the Dongsun area of Baise City.
During Project Implementation Public consultations are ongoing during PPTA implementation. Stakeholders include: Baise City population, community members in the project area, affected factory workers, factory management, industrial area management, local government, and public services in the project area.
Business Opportunities
Consulting Services All consultants will be recruited according to ADB's Guidelines on the Use of Consultants (2010, as amended from time to time).
Procurement All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2010, as amended from time to time).
Responsible ADB Officer Lan Wang
Responsible ADB Department East Asia Department
Responsible ADB Division PRC Resident Mission
Executing Agencies
Baise Municipal Government (BMG)GXBSLB007@163.COMDong He Er Lu Road
Baise City, Guangxi
People's Republic of China - 533000
Timetable
Concept Clearance 19 Oct 2010
Fact Finding 08 Apr 2013 to 16 Apr 2013
MRM 18 Jun 2013
Approval 30 Sep 2013
Last Review Mission -
Last PDS Update 27 Mar 2015

Loan 3035-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Sep 2013 05 Dec 2013 16 Apr 2014 30 Jun 2019 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 169.50 Cumulative Contract Awards
ADB 80.00 30 Sep 2013 0.10 0.00 0%
Counterpart 89.50 Cumulative Disbursements
Cofinancing 0.00 30 Sep 2013 8.15 0.00 10%

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Guangxi Baise Integrated Urban Environment Rehabilitation Project Combined Resettlement Plan and Indigenous Peoples Plans Jun 2013
广西百色市东笋片区环境综合整治工程移民与少数民族发展计划 Combined Resettlement Plan and Indigenous Peoples Plans Jun 2013
Guangxi Baise Integrated Urban Environment Improvement Project Initial Environmental Examination Jun 2013

Evaluation Documents

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