Nonsovereign (Private) Project | 41908-014 Status: Active

Project Details

Project Officer
Limjap, Jose Manuel C. Private Sector Operations Department Request for information
  • China, People's Republic of
  • Transport
Project Number 41908-014
Location PRC
Type or Modality of Assistance
7270 Equity USD 50.00 million Cancelled
7270/2389 Loan USD 1,200.00 million Cancelled
7270/47 B-Loan USD 200.00 million Cancelled
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector

Transport / Air transport

Gender Equity and Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Limjap, Jose Manuel C.
Project Sponsor(s)
Objectives and Scope The Project will serve as an important catalyst for the overall economic growth of the less-developed central and western regions in the PRC. Through assistance to HAG in increasing airport capacity and improving airport efficiency in the central and western PRC, the Project will directly benefit people in the area by (i) providing direct access to and from markets located in the relatively developed coastal regions of the PRC and in other countries, (ii) improving aviation safety and service, (iii) reducing the cost and duration of long-distance travel, and (iv) creating more employment demand and opportunities. The Project also aims to ease financial constraints faced by provincial/municipal governments by mobilizing private sector funding for airport development and support the economic growth in central and western PRC.
Status of Development Objectives HAG is still open to acquire other airports and is in process to streamline operations and improve operating efficiency and profitability of its portfolio of airports. ADB has been assisting HAG in enhancing its corporate governance and environmental and management system to enhance confidence in the sector. Airport acquisition was halted as an offshoot of CAAC head's opposition to further privatization of government-owned airports.
Status of Operation/Construction HAG''s plan of expansion through the acquisition of new airports did not materialize due to the opposition of CAAC to any further privatization of China's airports. As such, HAG''s growth is limited on the organic growth within its existing portfolio airports. HAG currently has seven (7) portfolio airports, which are all medium and small feeder airports or non-hub airports which continued to register a strong performance in 2013. On a consolidated basis, aircraft movements were 162,936 (up 15% over 2012 level), passenger traffic was 20.5 million (up 16%) and cargo throughput was 215,563 tons (up 17%). In 2013, ADB sold its 12.25% equity shareholdings in HAG to BT Investment Company Limited.
Material Changes N/A
Linkage to Country/Regional Strategy While ADB does not have a sector policy covering transportation, civil aviation or airports, the Project targets investment needs in the PRC's less developed regions, which are the focal areas of ADB's operations, in accordance with the country strategy and the Government's expectations with respect to ADB's operations. ADB recognizes that transportation is an operational priority and that the economic growth of many developing member countries remains hobbled by inadequate and substandard transportation infrastructure. ADB's transport intervention plays a pivotal role in achieving developmental impact targets by making its assistance more relevant to sector needs, responsive to client requirements, and flexible in implentation.
Safeguard Categories
Environment FI
Involuntary Resettlement A
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects HAG has established an Environmental and Social unit to coordinate with the portfolio airports on all issues relating to environmental and social safeguards. As agreed with ADB, an environmental management system and social monitoring framework are implemented in the entire group. ADB also conducted a seminar on environmental and social safeguards as part of training of HAG's management and E&S staff.
Involuntary Resettlement Land acquisition agreements were signed in March 2008 and all compensation was paid in May of the same year. All compensation and procedures were in line with ADB and PRC's policies where the compensation was agreed to the satisfaction of the affected people which was 40 times the Annual Average Output Value and sufficiently met the requirement of replacement cost compensation.
Indigenous Peoples The affected people are members of the Li ethno-linguistic group. Several consultations to provide further information to the community were conducted. The Project and its related activities did not adversely affect the indigenous people nor did it conflict with their beliefs and customs. The Project did not have a significant impact on their livelihood and there is no need for HAG implement a livelihood restoration plan.
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance 26 Mar 2007
Credit Committee Meeting 24 Oct 2007
Approval 11 Dec 2007
PDS Creation Date 19 Oct 2007
Last PDS Update 09 Oct 2014

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

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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
Central and Western Airports Development Project Social Monitoring Reports Feb 2011
Central and Western Airports Development Project: Social Safeguards Management Framework Combined Resettlement Framework and Indigenous Peoples Planning Frameworks Oct 2007
Central and Western Airports Development Project Environmental and Social Management System Frameworks Oct 2007
Central and Western Airports Development Project: Social Safeguards Management Framework Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Oct 2007

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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