China, People's Republic of: Fuzhou Environmental Improvement Project

Water and other urban infrastructure and services - Urban policy, institutional and capacity development - Urban sewerage - Urban water supply

Wastewater management in the PRC provides numerous opportunities to reduce water pollution, protect water resources, promote sustainable economic development, promote public-private partnerships in urban infrastructure, and improve the living conditions and public health of urban residents, including the poor. The Government needs assistance to achieve the Millennium Development Goals for environmental sustainability, and to half the proportion of people without sustainable access to safe drinking water and basic sanitation by 2015.

Over the past decade, the Government has shifted fundamentally towards a market-based approach, enterprise provision in the delivery of infrastructure services, and a more integrated approach to urban management. The PRC policies incorporate the need for complementary reforms to support investment, particularly from the private sector, in urban infrastructure. Improvements in service delivery through investment in wastewater systems are increasingly being matched by financial, governance, and enterprise reform; public education; awareness; and social responsibility. Although much progress has been made, the Government believes the pace of change needs to be accelerated. Investment in wastewater management systems is still urgently needed. Moreover, the socioeconomic surveys demonstrate that the general public is becoming increasingly concerned about the impact of wastewater pollution, and are willing to pay for wastewater treatment and envirohmental improvement.

1. Completion of sewer network system

2. Rehabilitation of selected inland creeks

3. Land acquisition and resettlement

4. Introduction of effective operating regime

5. Strengthened institutional capacity

1. (a) all ten civil works and three equipment contracts were awarded; (b) no land acquisition and resettlement impacts; (c) all physical works were completed by 31 December 2011.

(a) all nine civil works and three equipment contracts were awarded; (b) rights-of-way for about 15 km sewer lines are ongoing; (c) physical progress is 96%; and (d) all outstanding works will be carried out by domestic funding.

2. Construction has been delayed due to the significant problems involved in resettlement. (a) all six civil works and two equipment contracts were awarded; (b) land acquisition and resettlement activities have been substantially delayed and are still ongoing; (c) physical progress is 58% - 100% for Puxia river, 40% for Longjin river, 56% for Yuejin river, and 28% for Lianban and Linpu rivers; and (d) Fuzhou Urban Visual Construction Development Company (FUVCDC)will carry out construction works for the four rivers to the maximum extent until the loan closing and undertake the remaining works under domestic funding.

3. Resettlement activities have been substantially delayed due to the complaints filed for compliance review panel.

Total affected persons under the 5 rivers that will be financed under the loan is now 3,548.

Resettlement activities have been substantially delayed due to the complaints filed for compliance review panel.

Total affected households under the 5 rivers that will be financed under the loan is now 799.

4. Ongoing.

5. Completed.

It is categorized as "A". The project wil improve the urban environment, aquatic environment of inland creeks, and public health and safety of Fuzhou. The Project will target substantial improvements in (i) Fuzhou's wastewater management, including collection and treatment; (ii) water quality of inland creeks of Nantai Island; and (iii) the protection of water quality in the Min River, the source of drinking water for Fuzhou. The summary EIA was circulated to the ADB Board on 7 July 2004. The Project will have an overwhelmingly positive environmental impact, and any environmental risks during construction will be mitigated.

Latest Environmental Monitoring Report submitted August 2011. Semi-Annual Environmental Report submitted November 2011.

The Project will acquire permanently 74.81 hectares (ha) of land, of which 31% is farmland, primarily for the rehabilitation of the inland creeks on Nantai Island. The Project also will require the temporary acquisition of 8.17 ha. Further, 1,148 households (or 5,045 people)

will be relocated, and about 197,230 m2 of houses will be demolished. The Project also will affect 75 enterprises and 13 shops, with a total 2,795 employees. Some 231,501 m2 of industrial and commercial space, houses, and buildings will be dismantled. The Project will relocate

10,020 m2 of public houses and/or buildings, such as a market building, clinic, school, and buildings for village administration and public use. The Project will not adversely affect any indigenous people or ethnic minorities. The preliminary cost estimate for the land acquisition

and resettlement (LAR) program is $46.36 million, with the Nantai Island Inland Creek component accounting for about 96% of the cost. The Fuzhou Municipal Land Development Center (FMLDC) will assist FUVCDC in carrying out the LAR for two inland creeks on Nantai Island. Resettlement impacts have been identified, and resettlement plans (RPs) prepared in accordance with PRC Land Administration Law and ADB's Policy on Involuntary Resettlement. The RPs provide a socioeconomic profile of affected persons (APs) and the scope of impacts, and addresses entitlements of APs to compensation, legal framework, public consultations, grievance procedures, environmental protection, rehabilitation, and budget and implementation milestones.

FMG has establish a project resettlement office to continue public information activities and respond to any questions or grievances. FMG ensured that all APs are compensated and resettled in a timely and adequate manner in accordance with the RP. FMG will prepare a resettlement completion report. FMG (as the Executing Agency) and FWECDC and FUVCDC (as the implementing agencies) will engage an

independent agency for semiannual monitoring and annual evaluation of LAR the soonest.

Due diligence report on the acquired land and resettlement for the new site for Pumpng Station No. 1 submitted. Finalized resettlement plan and due diligence for the Lianban WWTP submitted. Updated RPs for Lianban and Linpu Rivers were endorsed by Fuzhou Municipal Government and disclosed to the affected persons.