China, People's Republic of: Xinjiang Kelamayi Ecological Forest Infrastructure

Sovereign Project | 48036-001

Summary

Rapid urban development in water scarce areas poses serious challenges for the sustainable economic development in many parts of the People's Republic of China (PRC). For example, Kelamayi Municipality, located in the northwest of Xinjiang Uyghur Autonomous Region and characterized by a dry climate, is an important national energy base. The municipality has experienced rapid urban and economic development for the past several decades, mainly driven by oil and gas extraction. Over the last 10 years, the city experienced an average growth rate of 0.5%, while the population has grown from 250,000 in 1994 to 380,000 in 2010. Expecting continued economic growth in the city, the Kelamayi Municipal Government (KMG) recognizes the need for strengthening the management and protection of its natural resources, in particular with respect to its scarce water resources.

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Project Name Xinjiang Kelamayi Ecological Forest Infrastructure
Project Number 48036-001
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8767-PRC: Xinjiang Kelamayi Ecological Forest Infrastructure
Technical Assistance Special Fund US$ 600,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Knowledge solutions
Sector / Subsector Agriculture, natural resources and rural development - Agricultural drainage - Irrigation - Land-based natural resources management - Water-based natural resources management
Gender Equity and Mainstreaming Some gender elements
Description Rapid urban development in water scarce areas poses serious challenges for the sustainable economic development in many parts of the People's Republic of China (PRC). For example, Kelamayi Municipality, located in the northwest of Xinjiang Uyghur Autonomous Region and characterized by a dry climate, is an important national energy base. The municipality has experienced rapid urban and economic development for the past several decades, mainly driven by oil and gas extraction. Over the last 10 years, the city experienced an average growth rate of 0.5%, while the population has grown from 250,000 in 1994 to 380,000 in 2010. Expecting continued economic growth in the city, the Kelamayi Municipal Government (KMG) recognizes the need for strengthening the management and protection of its natural resources, in particular with respect to its scarce water resources.
Project Rationale and Linkage to Country/Regional Strategy

The future of Kelamayi Municipality largely relies on sustainable and efficient usage of surface water and groundwater, and increased reuse of treated wastewater. Surface water resources from two small rivers are derived from snowmelt from the area near the Tarbagatai and Saur mountain ranges during the period of April to August. Since 2008, the city receives water from the international Irtysh River, through the Irtysh Kelamayi Canal. The KMG has constructed two large reservoirs, Ayi-Kule and San-Pin, which are used for domestic, industrial, and agricultural water use. Groundwater resources in Kelamayi are limited, and in certain areas saline.

Critical to the municipality's continued development is the implementation of strategies that increase water conservation and water use efficiency for the agricultural sector, one of the largest water users in Kelamayi. The KMG plans to reduce usage of raw water by (i) increasing the use of treated wastewater, and (ii) adapting more appropriate agroforestry practices for the area. The KMG has issued multiple policy documents and regulations that embrace environmentally sustainable economic growth as essential to improving urban living conditions in the city. The Kelamayi Central Urban Area Master Plan 2010 2020 sets out principles for water reuse that support this development. Those principles are the foundation for the Kelamayi water sector plans.

Moreover, the KMG recognizes the need to introduce better incentives for agricultural enterprises and local farmers to strengthen the value chain to improve the quality of the agricultural products. Implementation of the envisaged inclusive development approach, together with improved water use efficiency, would demonstrate how responsible agroforestry production can be achieved in the agricultural development zones under scarce water conditions.

Government policy and ADB's country strategy. The proposed project is consistent with the PRC's long-term goal to ensure that environmental resources and peoples livelihoods are not undermined by rapid urban and economic development. The Third Plenary Session of the 18th Central Committee of the Communist Party Congress in November 2013 emphasized the importance of eco-civilization and the application of red-lines to halt environmental degradation. The PRC government has now included sustainable management of scarce water resources as a performance indicator for local governments, and emphasized the need to strengthen eco-civilization approaches as part of the local development planning.

The proposed project is also in line with ADB's country partnership strategy, 2011 2015 for the PRC in supporting the government's overarching strategic goal by focusing on inclusive and environmentally sustainable growth. The project will contribute to ADB's Water Operational Plan 2011 2020 by demonstrating: (i) increased water use efficiencies across the range of users, (ii) integrated water resources management, and (iii) expanded knowledge and capacity development that uses technology and innovation more directly. The project is expected to promote sound management practices for the conservation and re-use of water resources, and introduce sustainable agroforestry in Kelamayi Municipality. The proposed project is included in ADB's lending pipeline as 2016 firm for the PRC. Project loan is proposed as financing modality of the project.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Main stakeholders are the involved government agencies, such as the Kelamayi Municipal government, as well as the local agricultural development committee and the state owned enterprises, forming the executing, implementing and management groups of the project and ADB. The TA will determine who the beneficiaries are, how they are represented, and which populations are negatively affected. All stakeholders will be consulted and participatory meetings held to ensure their voices are heard during the TA.
During Project Implementation
Business Opportunities
Consulting Services The PPTA will be carried out by a team of consultants. A total of 14 person-months (pm) of international and 23 pm of national consulting services will be required. The consulting firm will be selected by (i) inviting simplified technical proposals, and (ii) using the quality- and cost-based selection method, with a quality cost ratio of 90:10 according to ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).
Responsible ADB Officer Frank Radstake
Responsible ADB Department East Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, EARD
Executing Agencies
Kelamayi Municipal GovernmentYingbin Road 60, Karamay, Xinjiang
People's Republic of China
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 24 Nov 2014
Last Review Mission -
Last PDS Update 18 Mar 2015

TA 8767-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Nov 2014 17 Dec 2014 17 Dec 2014 31 Jan 2016 28 Feb 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
600,000.00 0.00 0.00 0.00 0.00 0.00 600,000.00 24 Nov 2014 0.00

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