China, People's Republic of: Gansu Jiuquan Integrated Urban Environment Improvement Project

Sovereign Project | 45506-002 Status: Approved


The project aims to promote environmentally sustainable and socioeconomically inclusive urban development in Jiuquan, Gansu province, by upgrading urban infrastructure and services. The project will support wastewater management, urban transport and utility facilities, windbreak plantation, and related services.

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Project Name Gansu Jiuquan Integrated Urban Environment Improvement Project
Project Number 45506-002
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3003-PRC: Gansu Jiuquan Integrated Urban Environment Improvement 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 - Forestry

Transport - Urban roads and traffic management

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

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project aims to promote environmentally sustainable and socioeconomically inclusive urban development in Jiuquan, Gansu province, by upgrading urban infrastructure and services. The project will support wastewater management, urban transport and utility facilities, windbreak plantation, and related services.
Project Rationale and Linkage to Country/Regional Strategy

The PRC has made remarkable progress in economic development and poverty reduction since 1980, but such progress has not been balanced across different regions. Located in the country's northwestern region, Gansu has lagged behind in the economic development and remains one of the poorest provinces in the PRC. In 2011, the poverty rates in Gansu province were 9.4% for urban and 20.4% for rural households, significantly higher than the national averages of 3.3% and 8.1%. Development barriers facing Gansu include a harsh natural environment, remote inland location, underdeveloped infrastructure, and lack of investment. Such wide regional disparities prompted the Government of the People's Republic of China to launch the National Strategy for Development of the Western Region, with the aim to promote balanced economic growth and to raise the living standards in the region. The strategy focuses on developing infrastructure, protecting the environment, and strengthening economic cooperation and trade with neighboring provinces and countries.

The project is located in Jiuquan, Gansu province, about 730 kilometers (km) northwest of the provincial capital of Lanzhou. Jiuquan's key industries are renewable energy equipment manufacturing and agricultural product processing. Tourism has increasingly contributed to the city's economic output based on its rich historic and cultural resources and the launching site of the national space program. Historically an oasis on the ancient Silk Road along the Hexi Corridor, Jiuquan has the potential to serve as a vital artery for the relatively less-developed northwestern region of the PRC and play a strategic role in aiding the region's socioeconomic development as envisaged under the National Strategy for Development of the Western Region.

Jiuquan faces various environmental problems and urban development challenges due to its harsh natural environment and inadequate urban infrastructure. Situated between the southern limits of the Gobi desert and the Qilian Mountains, Jiuquan has a continental desert climate with constrained water resources and high evaporation. Sand and dust transported by frequent strong winds from the desert cause atmospheric pollution, a high incidence of respiratory illness, and productivity losses. The water quality in the Beida River is class II for the upstream reach of Jiuquan city, class III through the city area, and class IV downstream, resulting from discharges of untreated wastewater from the city. As a water- scarce city undergoing continuous growth, Jiuquan must stem the gradual contamination of its water resources, which endangers public health and safety and constrains its sustainable development. Jiuquan's increasingly congested urban roads and inadequate infrastructure also limit the city's ability to promote greater links along the Hexi Corridor and enable socioeconomic development in the northwestern region.

An estimated 66% of wastewater is treated in Jiuquan city at an existing wastewater treatment plant (WWTP). Excessive wastewater overflows and discharges into the Beida River. There is an urgent need to expand the wastewater collection and treatment system to serve broader coverage in the existing and expanded urban areas. The project will support the construction of a new WWTP and an associated wastewater collection network to expand the service area, targeting an 88% treatment rate by 2019 and mitigating pollution loads into the Beida River. The project will also provide institutional support for wastewater reuse and sludge treatment and disposal options appropriate to the local conditions.

According to the Jiuquan Urban Master Plan, 2011-2030, Jiuquan city will expand northward and westward, ultimately integrating economically with Jiayuguan city, 20 km to the northwest. The now incomplete and increasingly congested road network and ill-managed transport system are constraints to sustainable urban development. The project will support the construction and rehabilitation of an urban transport network, thereby relieving congestion in the existing road network, improving access to a main employment area, expanding farm-to-market routes for neighboring rural areas, and facilitating economic integration between Jiuquan and Jiayuguan. It will improve urban service delivery by expanding municipal utility services networks along the roads. It will also help improve traffic management and road safety, and introduce a public transport corridor for the main road connecting the planned high-speed railway station to the central urban area and to the expanded urban area to the north.

Jiuquan suffers from frequent winds and sandstorms and is in a state of moderate desertification. The Jiuquan municipal government (JMG), recognizing the constrained physical environment and the importance of its prudent management to the city's sustainable development, has made increasing investments in afforestation and resources reuse for ecological and environmental improvement. In support of these efforts, the project will establish an ecological corridor by planting windbreak tree screens along the banks of the Beida River. This will provide natural windbreaks for the city against sandstorms, enhance public amenities, and improve the living environment and public health of local residents, with additional benefits of carbon sequestration, sand fixation, securing agricultural production, soil conservation, and regulation of micro-climate.

The project will contribute to balanced regional development in the PRC, thereby supporting the PRC's Twelfth Five-Year Plan, 2011-2015. By promoting sustainable and environment-friendly urban development, the project aligns with ADB's country partnership strategy for the PRC. It promotes economic growth that is environmentally sustainable and inclusive, in line with ADB's Strategy 2020. It contributes to Millennium Development Goal 7 by improving sanitation. It conforms with ADB's urban, water, and transport sector strategies, which encourage green, competitive, and inclusive urban development, efficient water use, expanded wastewater management, rehabilitation of degraded forestlands, and sustainable urban transport. It builds on ADB's experience and lessons gained from previous projects in Gansu and other urban projects in the PRC, and from knowledge generated in policy-oriented studies on urban water security, sludge management, and dryland ecosystems, including the (i) need for well-programmed capacity building to accompany physical investments to enhance sustainability; (ii) importance of continued support and commitment to sector reforms such as cost recovery and resources conservation and reuse to improve sector performance and sustainability; and (iii) need for integrated, participatory, and well-coordinated management of the sensitive ecosystem in arid areas.

Special features. The project is designed to boost integrated environmental and social benefits and involve community participation in project design and implementation. It has the following special features:

(i)To assist the government's strategy for resources reuse, it will lend institutional support to wastewater reuse and sludge utilization in a manner befitting the local conditions.

(ii)The design of the urban transport will take into account road safety, nonmotorized transport, and integration of the public transport system with a view to the planned high-speed railway. Road safety campaigns with schools, bus stations, drivers association, and communities will be supported to step up public safety awareness. To reinforce the social benefits of the road network, JMG gave assurances to allot adequate low-income housing in the expanded urban area.

(iii)Windbreak plantation will adopt a multifunctional approach to reduce air pollution and land degradation, improve the city's resilience to climate change impacts, and provide a landscaped area.

Impact Environmentally sustainable and socioeconomically inclusive urban development in Jiuquan
Project Outcome
Description of Outcome Improved urban infrastructure and services in Jiuquan.
Progress Toward Outcome Being achieved.
Implementation Progress
Description of Project Outputs

Wastewater collection and treatment system is operating

Urban transport and utility facilities are operating

Windbreak tree screens planted

Capacity developed and institutions strengthened

Status of Implementation Progress (Outputs, Activities, and Issues) Overall implementation progress is outstanding. As of end June 2015, disbursement reached $27 million. Nine contracts approved with total amount of $53 million.
Geographical Location Jiuquan, Gansu Province
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects An initial environment examination prepared in compliance with ADB's Safeguard Policy Statement (2009) and posted on the ADB website concludes that the project will have substantial environmental benefits and that its potential adverse environmental impacts can be mitigated through the environmental management plan (EMP). Construction and operation of the project components have potential impacts on the environment, but these are site-specific, reversible, and not unprecedented. Dust and noise generated by construction activities could be a nuisance to nearby residents unless mitigated. Discharge of wastewater from construction sites could potentially pollute nearby water bodies. Traffic on the project roads could generate air and noise pollution that may affect nearby sensitive receptors. Operation of the WWTP could generate odor and noise impacts. Environmental management measures defined in the EMP, such as sound construction site management and regular monitoring of the project's environmental performance during construction and operation, will reduce these impacts to acceptable levels. JMG will be responsible for the overall implementation and compliance with the EMP, including inspection, monitoring, reporting, and corrective actions or measures. Contractors as well as JEDIC during construction, and facility operators during operation, will implement the EMP measures. Environmental management is supported by capacity development and institutional strengthening activities under the project and loan covenants. JMG disclosed relevant environment information to potentially affected people, and the results and findings of the consultation process were used to modify the initial environmental examination and finalize the project design. Consultations and public participation will continue throughout project implementation. Environmental complaints will be handled in accordance with the environment grievance redress mechanism developed for the project.
Involuntary Resettlement A total of 897 mu of land will be permanently acquired, including 609 mu of collective land and 288 mu of state-owned land.20 A further 351 mu of state-owned land will be temporarily occupied during project implementation. Land acquisition will affect 138 households with 547 persons.21 A total of 5,624 square meters (m2) of rural residences and 21,580 m2 of nonresidential structures will be demolished, affecting 22 households with 88 persons, and 21 enterprises with 162 employees. A resettlement plan was prepared in line with ADB's Safeguard Policy Statement (2009), endorsed by JMG, disclosed to affected people in the local language, and posted on the ADB website. The resettlement plan will be finalized in line with the detailed engineering design and detailed measurement survey, disclosed to affected people in the local language, and submitted to ADB for approval before awarding civil works contracts. Compensation for lost assets and resettlement allowances will be paid to affected people, and livelihood rehabilitation will be arranged in accordance with the resettlement plan before starting the related civil works. The project management office and JEDIC will assume responsibility for planning, implementing, financing, and reporting on land acquisition and resettlement. A grievance redress mechanism was established.
Indigenous Peoples In Jiuquan city, ethnic minorities make up about 1.6% of the population. They are socially and economically well integrated and will benefit from the project activities as much as the mainstream population. The project will not have any impact on the dignity, human rights, traditional lands, or culture of ethnic minorities. No buildings with cultural or religious significance to ethnic minorities are in the project area. The project will not have any direct impact on their livelihoods.
Stakeholder Communication, Participation, and Consultation
During Project Design

Meaningful consultation, participation, and information disclosure was conducted during feasibility study and initial environmental examination in accordance with the PRC Interim Guideline on Public Consultation in EIA (2006) and ADB's Safeguard Policy Statement (2009). Information disclosure and public consultation included newspaper disclosure; informal communication with key stakeholders, including residents, local authorities and sector specific institutions and authorities; questionnaire surveys; and wider stakeholder meetings attended by affected people and other concerned stakeholders. During construction, the affected people will be consulted through formal questionnaire surveys and informal interviews by the construction contractors, JPMO, and the environmental monitor. JPMO will coordinate the Project Grievance Redress Mechanism (GRM). The project's environmental information will be disclosed by the Jiuquan EPB and ADB as follows: (i) the project IEE is disclosed at ADB website; (ii) copies of the Chinese Environmental Impact Report (EIR) are available on request from the Jiuquan EPB; and (iii) environmental monitoring and progress reports will be prepared on an annual basis and will be disclosed at

All of the affected persons and municipal governments have been involved in the project impact and social-economic survey. Through meetings, interviews, focus group discussions, public consultation workshops, and community consultation meetings, local representatives have participated in the planning and concerns have been integrated into the resettlement plan. Before implementation, the PMO and the implementing agency will further discuss and consult with the representatives of the affected persons the impacts and detailed compensation plan to ensure affected persons' interests are protected and to provide employment opportunities for the affected persons' livelihoods as a result of project implementation. The PMO and the implementing agency has disclosed the draft resettlement plan in offices and to affected people in the local language. The resettlement plan is posted on the ADB website. Resettlement information booklets were distributed to affected households. This booklet contains information such as the affected project area, proposed land acquisition and relocation implementation progress and procedure, compensation standards for land acquisition, relocation assistance and livelihood restoration strategy. The implementing agency will establish project resettlement unit for supervision of implementation, continued public consultation, monitoring of progress, and response to grievances. The grievance redress mechanism has been established and explanations are included in the resettlement information booklets.

During Project Implementation

Relevant project information, including implementation progress, will be disclosed in the ADB website and at the PMO. This may include the design and monitoring framework, the environmental assessment, and the EMP. Stakeholder workshops will be held throughout project implementation to encourage key stakeholders, particularly workers and residents in project areas, to participate in achieving the project benefits and to make sure all stakeholders, including women, poor and other vulnerable groups, benefit from the project.

The agencies responsible for O&M for sewer, WWTP, wetland, and other project activities will manage effectively the project investments including ensuring optimal use of water resources. They will also help convey opinions and advice of resource users concerning all aspects of operational efficiency.

Business Opportunities
Consulting Services Consulting services will be engaged in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time), whose input requirements and selection method will be determined during project preparation.
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
Jiuquan Municipal Government
Government Building, Jiuquan City, Gansu
Concept Clearance 18 Aug 2011
Fact Finding 25 Oct 2012 to 05 Nov 2012
MRM 20 Feb 2013
Approval 14 Jun 2013
Last Review Mission -
Last PDS Update 17 Sep 2015

Loan 3003-PRC

Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Jun 2013 06 Aug 2013 21 Oct 2013 31 Dec 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 216.43 Cumulative Contract Awards
ADB 100.00 14 Jun 2013 55.72 0.00 56%
Counterpart 116.43 Cumulative Disbursements
Cofinancing 0.00 14 Jun 2013 27.19 0.00 27%

Evaluation Documents

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