China, People's Republic of: Hubei Huanggang Urban Environment Improvement Project

Sovereign Project | 46050-002

Summary

The project aims to promote environmentally sustainable and socially inclusive urbanization in Huanggang, Hubei Province by improving the urban environment. The project will improve the lakes and rivers' water quality, flood-retention capacity, and aesthetic value contributing to economic prosperity and enhanced livability in the lakeside urban areaemployment opportunities.

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Project Name Hubei Huanggang Urban Environment Improvement Project
Project Number 46050-002
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3168-PRC: Hubei Huanggang Urban Environment Improvement Project
Ordinary capital resources US$ 100.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Agriculture, natural resources and rural development - Water-based natural resources management
Public sector management - Public administration
Water and other urban infrastructure and services - Urban solid waste management
Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The project aims to promote environmentally sustainable and socially inclusive urbanization in Huanggang, Hubei Province by improving the urban environment. The project will improve the lakes and rivers' water quality, flood-retention capacity, and aesthetic value contributing to economic prosperity and enhanced livability in the lakeside urban areaemployment opportunities.

Huanggang is located on the north bank of the middle reach of the Yangtze River in eastern Hubei Province, 78 kilometers (km) from the provincial capital, Wuhan. Building on a rural-based economy, Huanggang is one of the poorest municipalities in the province and has a relatively low urbanization rate of 35.7%. The Huanggang municipal government (HMG) in its Twelfth Five-Year Plan, 2011 2015 targets to transform its economic structure and facilitate urbanization with expanded secondary and tertiary industries. Huanggang is well positioned to take advantage of national and regional development plans due to its proximity to Wuhan; good connectivity with neighboring cities and provinces; and rich historic, cultural, and human resources. Huanggang has the potential to play a strategic role in facilitating socioeconomic development in the central region of the PRC. This is envisaged under the national plan. Furthermore, Huanggang is part of the Wuhan 1+8 megacity cluster, which the PRC government endorsed as a pilot for balanced regional development in the province.

Huanggang is on a floodplain, with many lakes and rivers. Protecting the water environment and controlling water pollution in the middle and lower reaches of the Yangtze River, the largest of the seven river basins in the PRC and also the source of a high amount of wastewater, is a key government strategy. One of the urban development constraints of Huanggang is the deteriorating water quality in lakes and rivers, which are silted and blocked with polluted sediments, hindering natural hydraulic circulation, further degrading the water environment and ecology, weakening resilience to floods and droughts, and adversely affecting public health and safety. Huanggang's three major urban lakes Baitan, Chiye, and Yiai are severely polluted with organic matter and nutrients. Much of the surface water quality is currently measured as class V or worse. Realizing the importance of improving water quality for the city's sustainable development, HMG has made plans and increased investments to control pollution at the source and to improve the environment. To date, HMG investment has focused on improving water quality in Yiai Lake in the existing urban area, leaving other lakes and rivers unattended.

Limited urban space also constrains the development potential of Huanggang. The existing central urban area in Huangzhou District is dense and inadequate for increasing economic activities. Limited urban space and inadequate urban infrastructure has slowed economic development and delayed the urbanization process, resulting in Huanggang becoming sidelined from mainstream developments in the province. To address this constraint, the approved Huanggang Municipal Urban Master Plan, 2012

Project Rationale and Linkage to Country/Regional Strategy The project is not a stand-alone investment but plays an integral part of the Huanggang Municipal Urban Master Plan by significantly improving water quality in Baitan and Chiye lakes. The capacity building and institutional strengthening component will add value to the implementation of the master plan. Project design incorporates lessons from Yiai Lake rehabilitation, a recent locally funded initiative, and other Asian Development Bank (ADB)-supported lake and river restoration projects in the PRC. The project design incorporates best international practices: (i) the need to take an integrated approach to water system rehabilitation, and (ii) the importance of using simulation techniques to predict likely outcomes. The project will complement past and ongoing projects that are contributing to reducing pollution in the Yangtze River. Since the drinking water intakes of several cities are downstream from the Yangtze River, the project also contributes to the protection of the vital drinking water source. The project supports environmentally sustainable and inclusive economic growth that is a priority of ADB's Strategy 2020. The project aligns with ADB's country partnership strategy, 2011 2015 for the PRC; ADB Urban Operational Plan, 2012 2020; the Green Cities initiative; and ADB Water Operational Plan, 2011 2020, which encourages integrated water resources management particularly in river basins. It will support economically and socially inclusive urbanization and rural urban transition in Huanggang and contribute to balanced regional development in the PRC and in Hubei Province, thereby supporting the PRC's Twelfth Five-Year Plan, 2011 2015. The project builds on ADB's experience from urban projects in Hubei Province and in the PRC.
Impact Socially inclusive and environmentally sustainable urbanization in Huanggang
Project Outcome
Description of Outcome Improved urban environment in Huanggang
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1a. Lake enhancement with environment facilities operating

1b. Rivers enhanced with environment facilities operating

2. Solid waste collection and transfer facilities operating and public awareness of solid waste and environmental protection increased

3. Institutional capacity in project implementation and water quality monitor is developed and strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Huanggang, Hubei Province, PRC
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The environmental safeguard category is "A", mainly triggered by the lake and river enhancement component. Environmental impacts will be assessed in detail during project preparation and a project environmental impact assessment report, including environmental management plan, will be prepared and disclosed in accordance with ADB's Safeguard Policy Statement (2009).
Involuntary Resettlement The involuntary resettlement safeguard category is "A". The project is expected to involve significant land acquisition and physical and economic displacement, affecting more than 200 people. Resettlement plans will be prepared and disclosed in accordance with the Safeguard Policy Statement.
Indigenous Peoples The indigenous peoples safeguard category is "C". Preliminary investigation indicates that there are few ethnic minorities in the urban area and none in the project area. This will be confirmed during project preparation.
Stakeholder Communication, Participation, and Consultation
During Project Design

Meaningful public consultations on environment, health and safety issues have been conducted during preparation of the planning and project environmental impact reports and environmental impact assessment (EIA). Information disclosure and consultation included: internet disclosure; informal communication with key stakeholders which include residents, local authorities and sector specific institutions and authorities; questionnaire surveys; interviews; and discussion forums attended by affected people and other concerned stakeholders. Plans for public involvement during construction and operation stages have been developed during project preparation. These plans include public participation in (i) monitoring impacts and mitigation measures during the construction and operation stages through informal interviews and disclosure of monitoring reports; and (ii) interviewing the public at project completion stage.

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, HPMO and HUCIC 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. HPMO and HUCIC will disclose the draft resettlement plan in offices and to affected people in the local language. The resettlement plan will be posted on the ADB website. Resettlement information booklets will be 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 will be included in the resettlement information booklets.

Consultations with communities will take place at different points in the preparation and implementation of the GAP and SAP within the project, and will be designed not only to inform people about the project or specific activities related to its preparation and implementation, but also to enable people in the community to ask questions, make suggestions, state preferences, and express concerns. Special attention will be made for the participation of women and any other vulnerable groups, such as the poor. GAP and SAP indicators will be monitored and reported semiannually and verified by external resettlement and social monitor

During Project Implementation
Business Opportunities
Consulting Services The PMO and HUCIC will be assisted by project implementation consultants for project management and institutional capacity building. Consulting services will be engaged in accordance with 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 Hinako Maruyama
Responsible ADB Department East Asia Department
Responsible ADB Division Urban and Social Sectors Division, EARD
Executing Agencies
Huanggang Municipal GovernmentZHANG.XINJIA@163.COM8 Qiyi Road Huanggang City,
Hubei Province 438000
People's Republic of China
Timetable
Concept Clearance 04 Sep 2012
Fact Finding 09 Dec 2013 to 19 Dec 2013
MRM 02 Apr 2014
Approval 30 Sep 2014
Last Review Mission -
Last PDS Update 29 Sep 2014

Loan 3168-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Sep 2014 06 Feb 2015 06 May 2015 30 Jun 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 252.60 Cumulative Contract Awards
ADB 100.00 30 Sep 2014 0.08 0.00 0%
Counterpart 152.60 Cumulative Disbursements
Cofinancing 0.00 30 Sep 2014 0.00 0.00 0%

Safeguard Documents

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Evaluation Documents

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