China, People's Republic of : Hebei Small Cities and Towns Development Demonstration Sector Project

Energy / Energy utility services

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

The impact of the Project is sustained socioeconomic growth and improved health and living conditions in small cities and towns in Hebei province. The outocme of the Project is improved infrastructure, environmental protection, and employment generation in small cities and towns in Hebei province.

The proposed Project focuses on supporting sustainable urban development and consist of a number of sector interventions primarily targeted to support industrial development, tourism, job creation, and environmental protection. The main sectors are water and wastewater, solid waste management, upgrading and greening of rivers, and district heating. The subsectors involve (i) increases in the capacity to supply potable water and coverage of distribution networks, and provision of sewerage systems with associated wastewater treatment facilities; (ii) river and lake improvement works to reduce the risk of seasonal flooding and increase the capacity to impound water for industrial, irrigation, and other uses; (iii) provision of modern solid waste collection equipment, development of engineered waste disposal sites, and strengthening of operational management; and (iv) provision of centralized heating plants and the associated heat distribution networks.

Detailed component proposals that fully support the planning strategy and sector goals are being developed for the first group of cities and towns in each province.

The Project will seek to develop approaches and solutions to problems that can be replicated in urban centers throughout the province and may be used to demonstrate to other provinces across the PRC how to formulate planning strategies and implement programs in support of structured development of small cities and towns.

1. For Core Subprojects: Bazhou County

Component 1: Mangniu River Improvement Riverbed is dredged and embankments are constructed. Sewer networks are constructed; rubber dams are installed. Flooding of the urban area becomes less frequent.

2. For Core Subprojects: Bazhou County

Component 2: Shengfang Water Supply Project

New water supply system and associated facilities operational

3. For Core Subprojects: Zhaoxian County

Component 1: Wastewater Treatment

4. For Core Subprojects: Zhaoxian County

Component 2: District Heating

Heating substations and distribution network are constructed.

Residents receive adequate heating services.

Reduction in the use of coal for residential heating.

5. For Core Subprojects: Zhaoxian County

Component 3: Solid Waste Management

Solid waste processing and recycling plant and composting facility constructed

6. For Core Subprojects Zhengding County

Component 1: Solid Waste Management

Solid waste processing and recycling plant and composting facility constructed

Improved solid waste management collection and treatment

7. For all subprojects: Institutional capacity for project management is improved; infrastructure and service providers have increased capacity to plan, construct, operate, and maintain facilities.

All subprojects are completed and there are no major issues.

The EA is preparing the project completion report which will be submitted to ADB before the end of October 2016.

The project completion review mission is tentatively scheduled in Q4, 2016. The project completion report will be prepared accordingly.

The Project is classified as environmental category A. Extensive public consultations involving surveys, meetings with stakeholders, and focus group discussions were undertaken during project preparation. An EIA of the Project was conducted based on the EIAs prepared for the three core subprojects. An SEIA has been prepared and circulated to the ADB Board of Directors and was posted on the ADB website on 2 December 2008. An environmental assessment and management framework (Supplementary Appendix V) was prepared as an instruction manual to assist the Hebei PMO, subproject PMOs, IAs, and local design institutes in the preparation and review of EIA reports and environmental management plans for subsequent subprojects according to ADB requirements. The Project is expected to generate substantial environmental benefits. Wastewater treatment will reduce pollutant discharges

to rivers and groundwater. River improvement will strengthen flood protection, reducing economic loss and public health hazards from flooding. Centralized heating will improve energy efficiency, eliminate a considerable number of small and inefficient boilers, and reduce the quantity of coal

used, reducing greenhouse gas emissions. This Project will have positive effects on climate change, thereby supporting PRC and ADB climate change initiatives. The Project is expected to have no adverse impacts during construction or operation, as mitigation and monitoring plans are in place and the environmental management and institutional capacities of the PMOs and IAs are strengthened by establishing environmental management offices and undertaking a training program on environmental management planning. To manage risk, the Hebei PMO will ensure (i) extensive training in environmental management; (ii) the engagement of qualified project implementation consultants; and (iii) appropriate arrangements for project implementation, monitoring, and mitigation, with ADB conducting project reviews. The Project supports climate change adaptation including (i) incorporation of climatechange issues, such as energy efficient measures, in urban master plans; (ii) comprehensive water management, such as long-term water availability forecasting for new development areas and adopting comprehensive water balance measures during project implementation; (iii) sustainable wastewater and solid waste management including sludge digestion and biogas extraction; and (iv) promotion of clean energy for more efficient central heating.

The scope of the Project impact is determined mainly by the results of the measurement surveys as part of the feasibility study reports. The physical and economic displacements identified show that the construction of the three core subprojects will affect 37 households or 196 people with permanent land acquisition, 30 households or 137 people with the demolition of residential structures, and four small shops with 13 employees. In total, 173 mu, or 11.5 hectares (ha), of land will be acquired permanently, 162 mu, or 10.8 ha, of which is cultivated land. Along with land acquisition, 582 square meters (m2) of residences and 624 m2 of other buildings will be demolished, affecting 30 households and 137 people and relocating four small shops with 13 employees. In addition, associated productive assets, ground attachments, and basic infrastructure and facilities will also be affected.

The resettlement plan and compensation for permanent land loss is based on Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration of October2004, the Land Administration Law of the People's Republic of China of 1998 (updated in 2004), and the Hebei Provincial Implementation Regulation of Land Administration Law of 1999. The resettlement plan and compensation for demolished buildings is based on national, provincial, and municipal urban housing administration regulations. Consultations with local governments and affected people and general practice in Zhengding, Zhaoxian, and Bazhou guided the adoption of a set of compensation standards by city project management offices (PMOs) and implementing agencies (IAs).