China, People's Republic of: Chongqing Urban-Rural Infrastructure Development Demonstration II Project

Sovereign Project | 45509-002

Summary

Chongqing is one of four centrally-administered municipalities of the People's Republic of China (PRC). Located in the upper middle reaches of the Yangtze River, Chongqing is a part of the less-developed western region which is targeted by the PRC's national preferential policies under the National Strategy for Development of the West (NSDW). Although the NSDW has contributed to double Chongqing's gross domestic product (GDP) in the past five years, economic benefits have been unevenly distributed due to Chongqing's topographical characteristics of vast hinterlands and predominantly hilly and mountainous terrain. In Chongqing, a few rapidly developing central districts co-exist with poverty-stricken peripheral counties, and widening development gaps among districts and counties. Within districts and counties, imbalanced socioeconomic development is also increasingly evident where urban expansion meets rural areas.

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Project Name Chongqing Urban-Rural Infrastructure Development Demonstration II Project
Project Number 45509-002
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3022-PRC: Chongqing Urban-Rural Infrastructure Development Demonstration II Project
Ordinary capital resources US$ 150.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change
Sector / Subsector Transport - Road transport (non-urban)
Water and other urban infrastructure and services - Urban flood protection - Urban policy, institutional and capacity development - Urban water supply
Gender Equity and Mainstreaming Effective gender mainstreaming
Description

Chongqing is one of four centrally-administered municipalities of the People's Republic of China (PRC). Located in the upper middle reaches of the Yangtze River, Chongqing is a part of the less-developed western region which is targeted by the PRC's national preferential policies under the National Strategy for Development of the West (NSDW). Although the NSDW has contributed to double Chongqing's gross domestic product (GDP) in the past five years, economic benefits have been unevenly distributed due to Chongqing's topographical characteristics of vast hinterlands and predominantly hilly and mountainous terrain. In Chongqing, a few rapidly developing central districts co-exist with poverty-stricken peripheral counties, and widening development gaps among districts and counties. Within districts and counties, imbalanced socioeconomic development is also increasingly evident where urban expansion meets rural areas. The urban-rural average income gap increased to 3.4 times in 2010 and 1.45 million people live below the designated poverty line of CNY1,400 per annum.

In accordance with the national and municipal strategic priorities, Chongqing has shifted its focus from traditional centralized urban development to balanced urban-rural development. However, many rural villages, small towns and cities still struggle with poor basic infrastructures. In addition to insufficient rural road access and limited water supply provision, frequent flooding in second and third-tier cities becomes a clear development hindrance.

Project Rationale and Linkage to Country/Regional Strategy

The Chongqing Municipal Government (CMG) is focusing on improving basic urban infrastructures and closing inter- and intra-district and county development gaps. The rationale for the project is to support CMG's efforts to (i) reduce flooding risks to enhance urban safety, improve local environment and support the development of small towns and cities; (ii) provide safe drinking water to improve local health conditions in peri-urban areas; (iii) expand all-weather roads, thereby improving accessibility to basic social services and economic activities in rural areas; (iv) improve investment climate of project districts and counties; and (v) develop capacity to achieve balanced urban and rural development and management.

The project will support the PRC's Twelfth Five-Year Plan 2011-2015, which targets rising inequality, environmental protection, and a focal shift towards inland and rural area development to attain the overarching goal of stable and relatively fast economic development. The project will also contribute to the PRC's achievement and improvement of indicators for Millennium Development Goal 7, Target 10. The project aligns with the ADB's PRC country partnership strategy (CPS). Further, the project is consistent with ADB's urban sector strategy, which focuses on urban environmental management and poverty reduction.

Impact Improved living standards and quality of life through more balanced urban rural development in the project districts and counties
Project Outcome
Description of Outcome Improved access to safe drinking water and all-weather roads, and resilience to flood risk in project districts and counties
Progress Toward Outcome The project management consulting service was engaged in July 2014. The engagement of the external monitors is being processed and will be mobilized from 1 January 2015.
Implementation Progress
Description of Project Outputs

Flood dike, enhanced landscaping, and slope protection works are operating for the Rongfeng river in Rongchang county

South bank flood dike is operating in the Wujiang river in Wulong county

Flood dike is operating for the Longtan river in Youyang county

Chengkou urban-rural road and tunnel are opened to traffic

Fuling urban-rural road and bridges are opened to traffic

Shizhu urban-rural roads and bridges are opened to traffic

Yangliu water supply facilities, sludge treatment facilities, pumps, and associated facilities are operating in Wanzhou district

Project management and capacity building provided to the executing and implementing agencies

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

In progress. After detailed engineering design was completed, the length of the dike was increased from 6.7km to 7.3km.

In progress. After detailed engineering design was completed, the length of sewage pipeline was reduced from 8.5km to 8.2km.

In progress.

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In preparation.

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In progress. Road reduced from 10.2km to 9.4km.

In preparation.

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In progress. Length of upgraded roads reduced from 25.3km to 19.8km.

In progress. No. of bridges reduced from 8 to 2 bridges.

In progress. Reduced from 50.6km to 40.4km

In progress.

In preparation.

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In preparation.

Geographical Location Chongqing, PRC
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects

The project will support water supply facilities (treatment and distribution), urban-rural roal contruction and rehabilitation, and river rehabilitation and flood control in the seven less developed districts and counties of Chongqing Municipality. The environment categorization was mainly triggered by (i) earthwork and soil erosion related to construction of roads in mountainous terrain; (ii) potential impacts on physical cultural resources in Youyang and Shizhu counties, and municipal level nature reserves in Fuling district and Shizhu county; (iii) the operational safety of the Yangliu WTP in Wanzhou district; and (iv) impacts of the river enhancement and flood management components in Rongchang, Wulong, and Youyang counties on river ecology and downstream areas. The subprojects' scope, project sites, road alignments, and the design of flood control works were adjusted at feasibility study stage to minimize land acquisition and earthwork, and avoid impacts on sensitive areas. An environmental impact assessment (EIA) was prepared and posted on the ADB website on 15 August 2012. The EIA complies with ADB's Safeguard Policy Statement (2009). The EIA concludes that anticipated environmental impacts and risks can be mitigated through the implementation of the environmental management plan (EMP), which defines mitigation measures, monitoring requirements, institutional responsibilities, and training and institutional strengthening plans to ensure proper environmental management throughout project construction and operation. The EMP includes specific safeguards plans addressing the major anticipated impacts, including: (i) soil erosion protection plans for each subproject, (ii) a physical cultural resources risk management plan, and (iii) a WSP for the Wanzhou Yangliu water supply plant subproject. Environmental management is supported by loan covenants and capacity development and institutional strengthening activities under the project. The project district and county governments disclosed relevant environment information to potentially affected people, and the results and findings of the consultation process were used to modify project design and the EIA. Consultation and public participation will continue throughout project implementation and any environmental complaints or disputes will be handled in accordance with the grievance redress mechanism defined for the project.

The external environment monitor is being engaged and will be mobilized from 1 January 2015.

Involuntary Resettlement

Seven resettlement plans prepared in line with ADB's Safeguard Policy Statement (2009) were approved by ADB in March 2013. Overall, the project will permanently acquire 2,117 mu of collective and state-owned land, affecting 2,935 persons. Temporary acquisition of 370 mu of land will affect 757 persons. A total of 321 persons will be relocated and about 14,520 square meters (m2) of residential and nonresidential buildings will be demolished. Implementation of resettlement is supported by capacity development and institutional strengthening activities under the project. The implementation of the resettlement plans will be monitored and evaluated internally and externally. The project district and county governments, and PIUs, which have at least two full-time staff responsible for land acquisition and resettlement, will report implementation progress regularly to CMG. The CMG will then summarize the progress in the quarterly progress report to ADB. The external monitor will review the progress and general welfare of affected persons to assess whether they have fully regained their standard of living. Monitoring and evaluation reports will be prepared semiannually during implementation and annually for two years after resettlement completion, and submitted and published on ADB's website. The project has also established a transparent grievance channel that will provide a meaningful consultation mechanism, and trigger remedial action by CMG and the project district and county governments.

The involuntary resettlement impacts of the projects are being analyzed and assessed compliance with ADB Safeguard Policy Statement (2009).

The external resettlement and social monitor is being engaged and will be mobilized from 1 January 2015.

Indigenous Peoples

Two out of seven districts/counties are ethnic minory counties (mainly Miao and Tujia) with their proportion varying among 69-94%. In these counties, the ethnic minorities are the principle beneficiaries. Preliminary investigation indicated that the ethnic minorities are socially and economically integrated with the majority Han Chinese. They are likely affected by land acquisition and house demolition and will equally benefit form the project. Ethnic Minority Development Plan for each county will be prepared and endorsed by the government and the ADB. The PPTA ensures overall project design includes prioritization of ethnic minorities for construction jobs and operation and maintenance activities and use of local language in communication and outreach of involuntary resettlement consultations and materials other project information. The PPTA is identifying actions such as including a target for ethnic minority employment, and participation in environmental awareness, flood risk management, water conservation and road safety programs.

The external resettlement and social monitor is being engaged and will be mobilized from 1 January 2015.

Stakeholder Communication, Participation, and Consultation
During Project Design During the PPTA, the county/district governments and project implementing units (PIUs) are undertaking public consultations and ensure participatory approach to design project components, GAP, SAP, EMDP, and resettlement plans. Consultation includes: (i) socioeconomic baseline survey of selected components to establish socioeconomic profile and needs assessment of potential beneficiaries; (ii) focus group discussions of both women and men, ethnic minorities in ethnic minority counties; and (iii) district/county level and village level key informant interviews of various local government agencies, women's federations, clinic and school representatives, and village leaders on their knowledge of local issues and opinion on project design and impacts. Where appropriate, local development planning, pedestrian road design and flood protection and river rehabilitation component designs are incorporating the local people's opinion through appropriate consultation process.
During Project Implementation During the project implementation, main stakeholder participation and consultation activities to be undertaken include: (i) publication and dissemination of resettlement plans and EMDP to local villagers, in standard Chinese and local languages, summarizing the policies, entitlements, compensation standards and rates, grievance procedures and resettlement and land acquisition program, and livelihood improvement measures; and (ii) public notices and formal village meetings dealing with all aspects of the project, such as notification of employment and training opportunities, land acquisition details, EMDP actions and general information and feedback sessions. A research institution or university will be engaged to carry out independent monitoring on resettlement plans, EMDP, SAP and GAP implementation ensuring C&P during project implementation.
Business Opportunities
Consulting Services In accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time), a consulting firm will be engaged using the quality- and cost-based selection method with a quality:cost ratio of 90:10 using the simplified technical proposal procedure. The terms of reference for the consultant team is subdivided to technical, financial and economic, safeguards and social, and governance teams. The project will engage a total of 13.5 person-months of international position, while a total of 33 person-months for national position.
Responsible ADB Officer Antonio Ressano Garcia
Responsible ADB Department East Asia Department
Responsible ADB Division Urban and Social Sectors Division, EARD
Executing Agencies
Chongqing Municipal GovernmentELSA-XIE@HOTMAIL.COMRoom 305, Jianfa Plaza, Honghuxilu Road,
Yubei District, Chongqing, PRC 401121
Timetable
Concept Clearance 09 Sep 2011
Fact Finding 11 Sep 2012 to 21 Sep 2012
MRM 11 Apr 2013
Approval 20 Sep 2013
Last Review Mission -
Last PDS Update 24 Sep 2014

Loan 3022-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Sep 2013 20 Nov 2013 10 Jan 2014 31 Dec 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 307.43 Cumulative Contract Awards
ADB 150.00 20 Sep 2013 40.54 0.00 27%
Counterpart 157.43 Cumulative Disbursements
Cofinancing 0.00 20 Sep 2013 5.18 0.00 3%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - Satisfactory - Satisfactory -

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Chongqing Urban-Rural Infrastructure Development Demonstration II Project: Wulong Wujiang River Flood Management Updated Resettlement Plan Resettlement Plans Jun 2015
Chongqing Urban-Rural Infrastructure Development Demonstration II Project: Shizhu Resettlement Plan Resettlement Plans May 2015
Chongqing Urban-Rural Infrastructure Development Demonstration II Project: Rongchang Country Rongfeng River Anti-Flood Levee Subproject Resettlement Plans Feb 2015
Chongqing Urban–Rural Infrastructure Development Demonstration II Project - Wanzhou District Yangliu Water Treatment Plant: Updated Resettlement Plan Resettlement Plans Nov 2014
Chongqing Urban-Rural Infrastructure Development Demonstration II Project: Shizhu Resettlement Plan Resettlement Plans Mar 2013
Chongqing Urban-Rural Infrastructure Development Demonstration II Project: Youyang County Longtan River Flood Management Resettlement Plan Resettlement Plans Mar 2013
Chongqing Urban-Rural Infrastructure Development Demonstration II Project: Chengkou Resettlement Plan Resettlement Plans Mar 2013
Chongqing Urban-Rural Infrastructure Development Demonstration II Project: Rongfeng River Flood Control Revetment Resettlement Plans Mar 2013
Chongqing Urban-Rural Infrastructure Development Demonstration II Project: Shizhu Tujia Autonomous County Ethnic Minority Development Plan Indigenous Peoples Plans/Indigenous Peoples Development Plans Mar 2013
Chongqing Urban-Rural Infrastructure Development Demonstration II Project: Youyang Tujia and Miao Autonomous County Ethnic Minority Development Plan Indigenous Peoples Plans/Indigenous Peoples Development Plans Mar 2013
Chongqing Urban-Rural Infrastructure Development Demonstration II Project: Jiaoshi-Damu Resettlement Plan Resettlement Plans Feb 2013
Chongqing Urban-Rural Infrastructure Development Demonstration II Project: Wulong Wujiang River Flood Management Resettlement Plans Feb 2013
Chongqing Urban–Rural Infrastructure Development Demonstration II Project: Wanzhou District Yangliu Water Treatment Plant Resettlement Plan Resettlement Plans Feb 2013
Chongqing Urban and Rural Infrastructure Development II Project (Draft) Environmental Impact Assessments Jan 2013

Evaluation Documents

See also: Independent Evaluation

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