Project Name
Shanxi Changzhi Low-Carbon Climate-Resilient Circular Economy Transformation Project
Project Number
51381-001
Country / Economy
  • China, People's Republic of
Project Status
Active
Project Type / Modality of Assistance
  • Loan
Source of Funding / Amount
Loan 4353-PRC: Shanxi Changzhi Low-Carbon Climate-Resilient Circular Economy Transformation Project
Source Amount
Ordinary capital resources US$ 300.00 million
Operational Priorities
  • OP1: Addressing remaining poverty and reducing inequalities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
  • OP4: Making cities more livable
  • OP6: Strengthening governance and institutional capacity
Sector / Subsector
  • Finance / Small and medium enterprise finance and leasing

  • Industry and trade / Small and medium enterprise development

  • Information and communication technology / ICT infrastructure

  • Transport / Urban public transport - Urban roads and traffic management

  • Water and other urban infrastructure and services / Other urban services - Urban flood protection - Urban policy, institutional and capacity development - Urban sewerage - Urban solid waste management

Gender
Effective gender mainstreaming
Description
Changzhi City is a regional center city located in Southeast of Shanxi Province in the central region of the People's Republic of China (PRC). Changzhi is bordered by the southern section of Taihang Mountain to the east, and to the west by the Taiyue Mountain. Changzhi's total population is 3.4 million people with 800,000 living in the core urban area, and the total land area is 13,955 square kilometers of which 53% is forest covered. Changzhi, like most of Shanxi province, is lagging behind the PRC's development, and it urgently needs a profound change towards a modern and diverse urban and urban-rural economy supported by improved education and urban livability, as it suffers from decline due to its dependency on coal-mining and traditional industries.
Project Rationale and Linkage to Country/Regional Strategy

Strategic fit. The project will demonstrate how the urban and urban-rural economy can be modernized, poverty can be reduced, employment created, environment rehabilitated, and broader public goods be provided through comprehensive support to economic and urban development and contributing to rural vitalization in Changzhi. It is aligned with (i) Thirteenth Five-Year Plans of Shanxi Province and Changzhi City (2016-2020), (ii) PRC's National New-Type Urbanization Plan (2014-2020), (iii) PRC's Pilot City Program for Industrial Transformation and Upgrading (2017) (iv) PRC's Rural Vitalization Strategy (Draft), and (v) Changzhi City master plan (2011-2030). The proposed project is included in the country operations business plan (2018-2020) of the Asian Development Bank (ADB) for the PRC and is aligned with (I) country partnership strategy for the PRC, 2016-2020, supporting socially inclusive, environmentally sustainable, and economically competitive development; and (II) urban, water, and environment operational plans/directions. The project is also fully aligned with operational priorities of ADB's Strategy 2030 and adheres to its principles of supporting upper middle-income countries particularly by (a) developing a demonstration project for economic diversification, (b) enhancing resilience to economic and climate change shocks, (c) contributing to the creation of quality jobs, education and training, (d) integrated solutions for livable cities, (e) rural development and value chain linkages, (f) institutional strengthening and capacity building, and south-south sharing of experiences, best practices and innovation.

Innovations, pilots and value addition. The project aims at demonstrating inclusive and green urban and urban-rural development through support of human resource development matching with a new cluster of high-technology clean production and service industry in areas of new energy, new materials, bioengineering, green jobs in environmental protection and nature-based tourism. This will be supported by the provision of public goods and services to enhance urban livability. ADB's value addition will be providing strategies from international best practices on comprehensive economic revitalization and diversification, establish institutional cooperation mechanisms, and investments in higher education, technical training, environment, and urban infrastructure. The project will apply innovative approaches to contributing to nature-based tourism and historic preservation of rural villages as broader public goods in the southern section of a larger mountain-range in the PRC and its economic integration with the rural vitalization strategy following international best practices (i.e., Appalachian Trail in the United States; Kumano Kodo in Japan; Camino de Santiago and alpine hiking and trekking in Europe). Old industries like coal, heavy industries and subsistence farming are expected to play a lesser role. Innovative information and communication technologies will be applied to facilitate an innovation ecosystem and build capacity for development of a smart city urban and urban-rural development platform, as service for small and medium-sized enterprises (SMEs), research and development and skills-job matching platform. Value chain integration for both the modernized urban and rural economies, managed and made accessible through smart city applications will be explored and demonstrated through capacity building and south-south knowledge sharing events and knowledge products.

Impact

Green low-carbon climate-resilient circular economy transformation in Changzhi Municipality achieved

Project Outcome

Description of Outcome

Low-carbon climate-resilient circular economy development investments and institutions in Changzhi Municipality improved

Progress Toward Outcome

Implementation Progress

Description of Project Outputs

Institutional capacity and knowledge for green transformation enhanced

Financing for low-carbon climate-resilient circular economy established

Urban green infrastructure and services improved

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

Safeguard Categories

Environment
B
Involuntary Resettlement
B
Indigenous Peoples
C

Summary of Environmental and Social Aspects

Environmental Aspects
To be determined during project processing.
Involuntary Resettlement
To be determined during project processing.
Indigenous Peoples
To be determined during project processing.

Stakeholder Communication, Participation, and Consultation

During Project Design
Relevant government agencies are being consulted in the process of designing the project.
During Project Implementation
Relevant government agencies will be involved in implementing the project.

Business Opportunities

Consulting Services
An estimated total of 25 individual specialists (7 international and 18 national) for a total of 70.5 person-months (16.5 international and 54 national) will be engaged on an intermittent basis to carry out regional economy and urban development assessment and investment prioritization, as well as climate risk and vulnerability assessment. The consultants will be engaged in accordance with ADB Procurement Policy (2017, as amended from time to time) and the associated Project Administration Instructions and TA staff instructions.

Contact

Responsible ADB Officer
Rau, Stefan
Responsible ADB Department
Sectors Group
Responsible ADB Division
Water and Urban Development Sector Office (SG-WUD)
Executing Agencies
Changzhi Municipal Government

Timetable

Concept Clearance
20 Dec 2022
Fact Finding
16 Feb 2023 to 07 Mar 2023
MRM
17 Jul 2023
Approval
29 Sep 2023
Last Review Mission
-
Last PDS Update
04 Oct 2023

Funding

Loan 4353-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Sep 2023 28 Dec 2023 27 Mar 2024 31 Mar 2030 - -
Financing Plan
  Total (Amount in US$ million)
Project Cost 355.00
ADB 300.00
Counterpart 55.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 17 Jun 2024 0.00 0.00 0%
Cumulative Disbursements 17 Jun 2024 0.00 0.00 0%
 
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Source URL: https://www.adb.org/projects/51381-001/main