China, People's Republic of: Anhui Huainan Urban Water Systems Integrated Rehabilitation Project

Sovereign Project | 46078-002

Summary

The impact of the project will be improved urban water environment, public health, and quality of life for urban residents in the Huainan municipality. The outcome of the project will be improved management of surface water resources in the Huainan municipality. The project will have the following components which are all linked to each other:

Component 1: Improvement of wastewater collection and transmission systems. This component will include installation of 115.2-kilometer (km) new main wastewater collection and transmission pipes in the eastern area of the Huainan municipality, and installation of 63.7-km new main wastewater collection and transmission pipes and construction of three new pump stations for wastewater transmission in the western area.

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Project Name Anhui Huainan Urban Water Systems Integrated Rehabilitation Project
Project Number 46078-002
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 3054-PRC: Anhui Huainan Urban Water Systems Integrated Rehabilitation Project
Ordinary capital resources US$ 150.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change
Sector / Subsector Agriculture, natural resources and rural development - Water-based natural resources management
Water and other urban infrastructure and services - Urban flood protection - Urban sewerage
Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The impact of the project will be improved urban water environment, public health, and quality of life for urban residents in the Huainan municipality. The outcome of the project will be improved management of surface water resources in the Huainan municipality. The project will have the following components which are all linked to each other:

Component 1: Improvement of wastewater collection and transmission systems. This component will include installation of 115.2-kilometer (km) new main wastewater collection and transmission pipes in the eastern area of the Huainan municipality, and installation of 63.7-km new main wastewater collection and transmission pipes and construction of three new pump stations for wastewater transmission in the western area.

Component 2: Improvement of urban water channels. This component will include improvement of existing 7.6-km Bagongshang water channel, 8.7-km Xiejiaji water channel, 13.8-km Donghua water channel, 0.5-km Old Longwang water channel, and 3.5-km Longwang water channel; and construction of a new 8.1-km Longwang flood diversion water channel. Activities under this component will include (i) sludge removal from the five existing urban water channels; (ii) improvement or construction of the water channels to improve the urban water environment and increase flood flow capacity to meet 1/20 year-level storm water; (iii) installation of new wastewater collection and transmission pipes along the channels to intercept wastewater inflow into the channels; and (iv) promotion of international best practices of nonstructural measures, such as reduction of garbage dumping along the channels and their tributaries; setting and securing of environmental flow in the channels; sustainable maintenance of the channels; monitoring of water quality and ecosystem; and capacity and institutional strengthening.

Component 3: Improvement of lakes and wetlands. This component will include two subcomponents. Subcomponent 3.1: Increase of flood control capacities will include construction of 13-km embankments and four pump stations along Gaotang Lake, improvement of the Dajiangou and Long Lake pump stations, and reconstruction of the Caozhuizi and Shijian Lake pump stations to increase flood control capacities to meet 1/20 year-level storm water. Subcomponent 3.2: Improvement of water environment will include improvement of water environment in Gaotang Lake, Dajiangou wetland, Long Lake, Caoling Lake, and Shijian Lake. Activities to improve water environment may include, but are not limited to, (i) sludge removal (footnote 3); (ii) plantation for water self-purification; and (iii) promotion of international best practices of nonstructural measures, such as monitoring of water quality and ecosystem; species recovery; public awareness raising and education; and capacity and institutional strengthening.

Component 4: Project management support and capacity development. Activities under this component will include (i) consultants' support for project management; (ii) institutional and capacity strengthening for project management, and operation and maintenance of the infrastructure; and (iii) provision of equipment for project management.

Project Rationale and Linkage to Country/Regional Strategy

The Huainan municipality of Anhui province located at the midstream of Huai River is a main coal base of the People's Republic of China (PRC) and also an important industrial area of Anhui province. It has an area of 2,596 square kilometers (km2), of which urban area is 1,566.4 km2; and a population of 2.46 million. Through the implementation of two key development strategies the Hefei Economic Circle and the Urban Integration of Hefei and Huainan, the economic development of the Huainan municipality has been making great progress. However, rapid economic development has resulted in heavy pollution load, particularly wastewater, to existing urban water systems in the Huainan municipality, including urban water channels and lakes, which have been clogged with sludge and severely polluted. The urban water systems also do not have sufficient capacity for flood control, and the Huainan municipality suffers flood damage once in 2 years on average. The Huainan municipal government (HMG) has been implementing various activities to improve the urban water systems, including improvement of wastewater treatment systems, annual dredging of urban water channels and lakes, public awareness raising to reduce garbage dumping, partial improvement of urban water channels and drains to increase flood flow capacity associated with road improvements, preparedness for and emergency response to floods, and post flood recovery. Although much improvement has been made, the Huainan municipality still has fundamental problems, including (i) insufficient wastewater treatment systems; (ii) wastewater inflow into urban water channels and lakes, sludge sediment, and water quality deterioration; and (iii) insufficient flood control capacities of urban water channels and other flood control facilities.

To facilitate the development of the Huainan municipality, the Huainan Municipality Master Plan for 2010 2020 was prepared by the HMG and approved by the provincial and central governments. The master plan sets targets for 2020 for wastewater treatment (treatment rate of more than 90%), water environment (water quality in the urban water systems improved to class IV or above of the PRC water quality standards), and flood management (flood frequency in the urban area reduced from 1/2 years to 1/20 years). To implement components of the master plan related to the urban water systems, the HMG made a request to the Asian Development Bank (ADB) for investment and assistance for the Anhui Huainan Urban Water Systems Integrated Rehabilitation Project. The proposed project was included in ADB's country operations business plan 2012 2014 and the 2013 lending pipeline for the PRC.

The PRC's 12th Five-Year Plan (2011 2015) supports the long-term goal of building a harmonious and moderately prosperous (xiaokang) society through livelihood improvement, and regionally balanced and environmentally sustainable growth. ADB's country partnership strategy for the PRC for 2011 2015 supports the government's overarching strategic goal of building a xiaokang society by focusing on three strategic pillars: inclusive growth, environmentally sustainable growth, and regional cooperation and integration. The proposed project is fully consistent with the PRC's 12th Five-Year Plan and ADB's country partnership strategy by improving urban water environment, public health, and quality of life.

ADB has been conducting projects for wastewater treatment, urban development, and flood and water resources management in the PRC and other countries, and lessons learned from those projects will be reflected in the project design adding values to the project. A main value to be added to the project by ADB will be promotion of international best practices of nonstructural measures for water environmental improvement.

Impact Improved urban water environment, public health, and quality of life for urban residents in Huainan
Project Outcome
Description of Outcome Improved management of surface water resources in Huainan
Progress Toward Outcome Improvement of Long Lake pump station to increase its flood control capacity is ongoing.
Implementation Progress
Description of Project Outputs

1. Improvement of wastewater collection

2. Improvement of urban water environment and flood management

3. Improvement of urban lake environment

4. Project management and capacity development

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

Improvement of Long Lake pump station to increase its flood control capacity is ongoing.

Recruitment of a consultanting firm for the associated technical assistance that will make recommendations for urban flood and waterlogging management and flood forecasting and warning has been completed.

Recruitment of consultants for project management support and external resettlement monitoring and evaluation is ongoing.

Geographical Location
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The environmental impact assessment report prepared for the project is based on the domestic environmental impact assessment report, as well as the consultant's report on the project preparatory technical assistance; and complies with the environmental policy of the People's Republic of China and Asian Development Bank's (ADB's) Safeguard Policy Statement. It concludes that the project will have substantial positive environmental and socioeconomic benefits resulting from (i) improved urban water channels, lakes, and Huai River; (ii) improved management of water and ecology in the lakes; and (iii) improved flood management. Environmental concerns of the project include construction impacts on air, noise, and water quality; solid waste; and disturbance to some water birds. These will be prevented or minimized to acceptable levels through the implementation of an environmental management plan with adequate mitigation and monitoring arrangements. The plan includes a detailed training program to ensure the Hhuainan municipal government has adequate capacity to manage and monitor environmental impacts and risks. The environmental impact assessment report was disclosed on ADB website on 28 May 2013.
Involuntary Resettlement The project will acquire a total of 126 hectares of land; 248 hectares will be occupied temporarily. The project will demolish 17,257 square meters of housing and 780 square meters of small business shops. It will affect 2,075 people, 1,451 of these will lose more than 10% of their productive assets and/or be physically displaced. The Huainan municipal government (HMG), with the assistance of consultants engaged under the project preparatory technical assistance, prepared a resettlement plan in line with Asian Development Bank's (ADB's) Safeguard Policy Statement (2009) and related laws and regulations of Huainan Municipality, Anhui Province, and the People's Republic of China. The HMG has endorsed the resettlement plan and disclosed the relevant information to affected people. The resettlement plan was also disclosed on ADB website. The HMG will fully finance CNY292.1 million of land acquisition and resettlement costs. The ADB loan will finance the costs for semiannual external resettlement monitoring and evaluation. The HMG has experience in conducting land acquisition and resettlement for foreign-funded projects and has the capacity to implement the resettlement plan for this project.
Indigenous Peoples Indigenous peoples will not be affected or benefit from the project.
Stakeholder Communication, Participation, and Consultation
During Project Design Public consultation was carried out by the executing agency during the preparation of project design documents. Further consultation through workshops and a stakeholder analysis were also carried out during the implementation of the project preparatory technical assistance.
During Project Implementation

Consultation during design of the project and participation during implementation with activities, such as a public-hearing process for adjusting wastewater collection fees, will involve more than 600 households. The project management office (PMO) and a pilot community will develop a community participation manual. These processes are reflected in the consultation and participation (C&P) plan, gender action plan (GAP), social action plan (SAP), loan assurances, design and monitoring framework, and project administration manual (PAM), with appropriate budget for consulting services under the project and an associated technical assistance.

A community environmental supervision and flood management team (CESFMT), comprising three community members including at least one female member, will be established in each of the eight pilot communities. CESFMTs will increase the environmental awareness of community residents to eliminate improper disposal of solid waste and waste dumping into urban water channels, and make community residents aware of the flood warning system and flood response plan.

During detailed design and implementation of each project output, the C&P plan will be implemented, including the participation of stakeholders in detailed design and disclosure of relevant information, consultation on resettlement programs with affected persons and disclosure of the resettlement plan, disclosure of the environmental impact assessment plan, disclosure of wastewater and solid waste treatment plants and their structure, disclosure of construction programs and relevant information, increase of public environmental awareness and public health knowledge, holding of a hearing for water and wastewater tariff increases, development and disclosure of community participation manual, and participation in and disclosure of the flood warning and management program.

Business Opportunities
Consulting Services Consultants will be required for the promotion of international best practices of nonstructural measures to improve water environment, and project management support and capacity development. All consultants will be hired following ADB's Guidelines on the Use of Consultants (2010, as amended from time to time).
Procurement All ADB-financed procurement will be conducted following ADB's Procurement Guidelines (2010, as amended from time to time). A procurement agency will be hired to conduct procurement on behalf of the implementing agencies.
Responsible ADB Officer Maria Pia Ancora
Responsible ADB Department East Asia Department
Responsible ADB Division PRC Resident Mission
Executing Agencies
Huainan Municipal GovenmentAHHNCXH@126.COMMunicipal Government Building,
Huainan Municipality, Anhui Province
232001 People's Republic of China
Anhui Provincial Finance BureauWorld Bank Loan Division
No. 238, Funanxi Road, Hefei, Anhui
230061 People's Republic of China
Timetable
Concept Clearance 25 Jun 2012
Fact Finding 03 May 2013 to 13 May 2013
MRM 04 Jul 2013
Approval 25 Oct 2013
Last Review Mission -
Last PDS Update 20 Mar 2015

Loan 3054-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Oct 2013 17 Dec 2013 24 Feb 2014 31 Mar 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 343.30 Cumulative Contract Awards
ADB 150.00 25 Oct 2013 19.02 0.00 13%
Counterpart 193.30 Cumulative Disbursements
Cofinancing 0.00 25 Oct 2013 6.07 0.00 4%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - -

TA 8491-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Oct 2013 19 Nov 2013 19 Nov 2013 07 Aug 2015 13 Jun 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 0.00 125,000.00 0.00 0.00 0.00 125,000.00 25 Oct 2013 130,930.00
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - -

Evaluation Documents

See also: Independent Evaluation

No documents found.


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