China, People's Republic of: Jiangxi Pingxiang Integrated Rural-Urban Infrastructure Development

Sovereign Project | 47030-002 Status: Approved

Summary

The project will contribute to socially inclusive, environmentally sustainable, and competitive urban- rural development in Pingxiang municipality in Jiangxi Province. The project will be a model for integrated rural -urban development, by supporting towns and bringing services closer to people; combining flood risk management and environmentally sustainable river rehabilitation, improved wastewater management, and rural -urban transport; and developing institutional capacity to ensure project sustainability.

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Procurement Documents


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Project Name Jiangxi Pingxiang Integrated Rural-Urban Infrastructure Development
Project Number 47030-002
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3281-PRC: Jiangxi Pingxiang Integrated Rural-Urban Infrastructure Development
Ordinary capital resources US$ 150.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector

Transport - Road transport (non-urban)

Water and other urban infrastructure and services - Urban flood protection - Urban sewerage

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project will contribute to socially inclusive, environmentally sustainable, and competitive urban- rural development in Pingxiang municipality in Jiangxi Province. The project will be a model for integrated rural -urban development, by supporting towns and bringing services closer to people; combining flood risk management and environmentally sustainable river rehabilitation, improved wastewater management, and rural -urban transport; and developing institutional capacity to ensure project sustainability.
Project Rationale and Linkage to Country/Regional Strategy

Pingxiang is a poverty-stricken, resource-depleted, mountainous city with a population of 1.87 million and an area of 3,827 square kilometers. The city is (i) in the western portion of the poor, flood disaster-stricken Jiangxi Province; (ii) 70 kilometers (km) east of the Chang-Zhu-Tan city-cluster; and (iii) connected to national highways and to the high-speed rail network. Development in Pingxiang has lagged significantly behind national averages and was chosen as one of 12 cities nationwide to showcase industrial transformation, from an economy based on resource extraction to one that is more diverse. Pingxiang experiences serious floods and environmental pollution, and was chosen to become a pilot city for climate-proof, sponge city development. Pingxiang''s urbanization ratio is low and rural poverty is high, and the city was chosen to implement an innovative approach to rural -urban integration in Jiangxi Province, one that delivers infrastructure and jobs in closer proximity to rural residents.

The per capita gross domestic product in Pingxiang''s counties is about half that in the urban core, which is in turn about half that of nearby Changsha. Lianhua is a national poverty county, and there are 113 designated poverty villages in the municipality. The Pingxiang municipal government (PMG) Resource-Depleted Transitional Development Plan (2013- 2020) promotes balanced and sustainable urban -rural development and aims to (i) expand and link the centers of Anyuan and Xiangdong districts, with an expected combined population of 800,000 by 2020; and (ii) strengthen county-level cities as subcenters in Lianhua, Luxi, and Shangli counties, with a population of 70,000 -120,000 residents in each by 2020.

Flood risk-reduction is a top priority in Pingxiang. Flood frequency and severity have increased significantly since 1998. Floods in 1998, 2001, 2002, 2010, and 2014 affected more than 496,000 people, caused the collapse of more than 2,600 houses, and resulted in significant economic losses in agriculture. A major flood on 25 May 2014 severely impacted public safety and health, and caused an estimated $115 million in economic losses. Most riverbanks in Pingxiang have inadequate flood protection; sediment accumulation from riverbank erosion and mining has raised riverbeds, further reducing the flood discharge capacity of rivers.

Pingxiang is a headwater municipality; all its rivers originate in the mountainous areas, and flow into two river systems: (i) the Gan River, which drains northeast into Poyang Lake; and (ii) the Xiang River, which flows northwest into Dongting Lake. Where rivers flow through farmland, settlements, and industrial and mining areas they collect pollutants and sediments. At the end of 2012, the urban wastewater treatment rate in Pingxiang was 75.8%, well below the national average. Many small cities and townships lack or have incomplete sewer systems, and no wastewater treatment plants (WWTPs). Domestic wastewater is discharged untreated into rivers, affecting downstream jurisdictions and Poyang Lake. Illegal solid waste disposal along rivers is common, particularly in rural areas without regular collection. Some rivers in Pingxiang provide drinking water for local communities, and pollution poses serious risks to public health.

Pingxiang''s rural areas have limited access to markets, jobs, training, education, and services in towns and cities. The lack of adequate roads and public transport limits rural development, jobs, and livelihood opportunities. Except for the main east west and north south corridors served by highways and national roads, many existing roads in Pingxiang are narrow and poorly maintained, particularly in the rural and mountainous areas.

Pingxiang is focused on developing its core urban area, with less priority given to the development of rural areas. Continued unbalanced and disconnected development will result in an increasing social, economic, and environmental divide between urban and rural areas. Pingxiang is approaching its challenges with non-integrated engineering, which addresses problems from one dimension, while typically generating new problems in other areas. Non-integrated approaches to flood protection which typically comprise solid walls and concrete dikes force stormwater into a channel, potentially causing downstream flash floods and degrading river environments; this harms river ecology, and the lack of natural capacity to absorb rainwater runoff that flows into rivers necessitates increased investment compared with an integrated approach that strategically preserve floodplains.

Strategic fit. The project supports the PRC''s 12th Five-Year Plan (2011- 2015) and the PRC''s National New-Type Urbanization Plan (2014 -2020) by contributing to balanced urbanization with livable, eco-efficient, and inclusive cities; and Pingxiang''s development, flood risk management, and transportation plans. The project (i) is aligned with the country partnership strategy, 2011 -2015 for the PRC of the Asian Development Bank (ADB); (ii) is included in ADB''s country operations business plan, 2015- 2017 for the PRC; (iii) supports ADB''s (a) Strategy 2020 goal of livable and sustainable cities through creation of cleaner and healthier environments; (b) urban operational plan that aims at inclusive, green, and competitive urban development; (c) water operational plan aiming at integrated water resources management; and (d) sustainable transport initiative operational plan in its objective to support rural roads; and (iv) provides innovative solutions as emphasized in ADB''s Midterm Review of Strategy 2020, complementing physical with nonstructural measures in flood risk management.

Pilot features. The project includes best practices and pilot demonstration features. Best practices include (i) linking and functionally integrating infrastructure to optimize development impacts, including river, wastewater, and road components; (ii) implementation of national regulations on water and wastewater tariffs (promulgated by the government and prepared with ADB assistance) established an enabling environment for private sector participation (as regulations require full cost recovery), mainly for the water supply sector in Pingxiang; and (iii) road alignment optimization through the study of alternatives to minimize and balance resettlement and environmental impacts. Pilot demonstration features include (i) urban -rural flood risk management and climate resilience partnerships; (ii) ecological river management supporting sustainable urban- rural sponge city development; and (iii) community-based environment supervision and roads safety education teams.

Impact

Integrated and green urban-rural development in Pingxiang municipality and Jiangxi Province improved (PRC National New-Type Urbanization Plan, 2014-2020)

Socioeconomic wellbeing of residents in cities, townships, and villages in Pingxiang municipality and Jiangxi Province improved (project derived)

Project Outcome

Description of Outcome Living conditions of rural and urban residents using integrated infrastructure in Pingxiang improved
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Flood risk management and river rehabilitation improved and integrated

2. Wastewater collection and treatment improved

3. Rural -urban linkages improved

4. Inclusive capacity in project planning and management, and urban rural integration developed

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

Safeguard Categories

Environment A
Involuntary Resettlement A
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects A project environmental impact assessment, including an environmental management plan (EMP), was prepared and disclosed in May 2015 in compliance with ADB''s policies and requirements, including ADB's Safeguard Policy Statement (2009). The environmental impact assessment incorporates findings from a biodiversity and habitat survey and fishery resource impact assessments in the Pingshui and Yuan rivers. Potential impacts of the planned river rehabilitation include significant earthwork and sediment dredging, and damage to in-channel habitats potentially impacting the two fish protection zones. The proposed rural -urban road will involve cut and fill along the road corridor, which will likely cause soil erosion, dust, construction noise and vibration, and community and occupational health and safety risks. Most impacts will be localized, short-term, and can be effectively mitigated through the application of good construction and housekeeping practices defined in the EMP. An institutional strengthening and capacity building program is defined in the EMP to ensure PMG''s capacity to manage and monitor environmental impacts and risks.
Involuntary Resettlement The project will acquire 171.02 ha of land, of which 115.61 ha is farmland, affecting 3,379 households with 13,672 persons. There will be temporary occupation of 122.53 ha of land. About 262 households and 1,022 persons will lose 51,636.57 square meters of residential housing and 3,309 square meters of small shops. A total of 4,207 households with 17,045 persons will be affected by the project, out of which 1,059 households with 4,327 persons will lose more than 10% of their productive assets and/or will be physically displaced. Nearly 325 households with 395 persons are vulnerable and 13 belong to ethnic groups. Five resettlement plans consistent with ADB's Safeguard Policy Statement were prepared and disclosed on the ADB website. Compensation for lost assets and allowances will be at replacement costs and will be paid to affected persons prior to displacement. Resettlement information booklets were disclosed to the community, village offices, and to affected persons in the local language in April 2015. Each project implementation unit will have at least one fulltime resettlement staff member to carry out internal monitoring and supervision. The implementing agencies possess good capacity to implement land acquisition and resettlement. Training on ADB''s involuntary resettlement policy and procedures will be provided to ensure proper implementation. A grievance redress mechanism will be established and an independent agency will be engaged to conduct semiannual external monitoring and evaluation.
Indigenous Peoples There is no specific ethnic minority community or group that lives separately and no adverse impact is expected that would trigger ADB policy.
Stakeholder Communication, Participation, and Consultation
During Project Design Extensive consultation with stakeholders was performed during the PPTA stage. A socioeconomic survey, stakeholder workshop, focus group discussions, and key informant interviews were conducted under the poverty and social assessment, including consultation for the resettlement, social, and environment safeguards.
During Project Implementation The PMO and PIUs, with support of consultants and external monitors, will undertake consultations with key stakeholders. The PMO will ensure local stakeholders are consulted, that information on the project is disseminated, and that questions and complaints are addressed quickly and effectively.

Business Opportunities

Consulting Services All consultants will be recruited in accordance with ADB''s Guidelines on the Use of Consultants (2013, as amended from time to time).
Procurement All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2015, as amended from time to time).

Responsible Staff

Responsible ADB Officer Stefan Rau
Responsible ADB Department East Asia Department
Responsible ADB Division Urban and Social Sectors Division, EARD
Executing Agencies
Pingxiang Municipal Government
PXSYHB@163.COM
Jiangxi Pingxiang Ying Bin road No. 18 , PRC, 337000

Timetable

Concept Clearance 18 Sep 2013
Fact Finding 23 Mar 2015 to 01 Apr 2015
MRM 22 May 2015
Approval 21 Sep 2015
Last Review Mission -
Last PDS Update 31 Mar 2016

Loan 3281-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Sep 2015 16 Mar 2016 - 30 Jun 2021 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 361.24 Cumulative Contract Awards
ADB 150.00 21 Sep 2015 0.00 0.00 0%
Counterpart 211.24 Cumulative Disbursements
Cofinancing 0.00 21 Sep 2015 0.00 0.00 0%

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Jiangxi Pingxiang Integrated Rural-Urban Infrastructure Development Project: Lishui River, Jinshan River Integrated River Rehabilitation Project & Tongmu Wastewater Treatment Plants Project Resettlement Plan Resettlement Plans May 2015
江西萍乡市城乡基础设施综合发展项目 上栗县栗水河、金山河河道整治工程 桐木镇污水处理项目 移民安置规划 Resettlement Plans May 2015
Jiangxi Pingxiang Integrated Rural-Urban Infrastructure Development: Environmental Impact Assessment Environmental Impact Assessments May 2015
江西萍乡市城乡基础设施综合发展项目 芦溪县中心城区河道环境综合整治工程 宣风镇污水处理项目 移民安置计划 Resettlement Plans Apr 2015
Jiangxi Pingxiang Integrated Rural-Urban Infrastructure Development Project: Urban-Rural Road Project from Shangli County to Xuanfeng Town of Luxi County Resettlement Plan Resettlement Plans Apr 2015
Jiangxi Pingxiang Integrated Rural-Urban Infrastructure Development Project: Pingshui River Integrated Improvement Project & Xiangdong District Wastewater Network Project Resettlement Plan Resettlement Plans Apr 2015
江西萍乡市城乡基础设施综合发展项目 城乡道路上栗至芦溪宣风公路项目 移民安置计划 Resettlement Plans Apr 2015
Jiangxi Pingxiang Integrated Rural-Urban Infrastructure Development Project: Lianhua County Resettlement Plan Resettlement Plans Apr 2015
江西萍乡市城乡基础设施综合发展项目 湘东区萍水河河道综合整治工程 湘东区污水管网项目 移民安置计划 Resettlement Plans Apr 2015
江西省萍乡市城乡基础设施综合发展项目移民安置规划(莲花县) Resettlement Plans Apr 2015
Jiangxi Pingxiang Integrated Rural-Urban Infrastructure Development Project: Luxi County Rivers Comprehensive Environment Improvement Project & Xuanfeng Town Wastewater Treatment Project Resettlement Plan Resettlement Plans Apr 2015

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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