ADB is helping the People's Republic of China improve infrastructure, municipal services, and the environment in about seven cities and towns in Shanxi province. In the initial stage, the project will carry out improvements in Pingyao and Youyu counties, and Wutong town, with other centers to follow.
|Project Name||Shanxi Small Cities and Towns Development Demonstration Sector Project|
|Country||China, People's Republic of|
|Project Type / Modality of Assistance||Grant
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Partnerships
|Sector / Subsector||
Agriculture, natural resources and rural development - Water-based natural resources management
Education - Pre-primary and primary - Secondary - Technical and vocational education and training
Energy - Energy utility services
Transport - Road transport (non-urban)
Water and other urban infrastructure and services - Urban policy, institutional and capacity development - Urban sewerage - Urban water supply
|Gender Equity and Mainstreaming||Some gender elements|
|Description||The project aims to help promote balanced and environmentally sustainable urbanization; narrow the urban-rural gap; and improve producation, employment, and living conditions in small cities and towns in Shanxi Province. It includes about seven subproject small cities and towns. The project is being processed as a sector loan to allow the Shanxi provincial government (SPG) to respond to rapidly changing needs of cities and towns across the province. Detailed assessment and analyses have been undertaken for the three core subprojects: Pingyao County, Wutong Town, and Youyu County. Subsequent subprojects will be selected, prepared, and appraised during implementation of the project following an agreed set of criteria and procedures. The Pingyao subproject includes the Huiji River improvement component, which will improve environmental quality, thereby support tourism development in the historic city center. The Wutong subproject has five components: (i) Caoxi road and associated services, (ii) heat supply, (iii) gas supply, (iv) wastewater treatment, and (v) education facilities. The subproject will provide basic infrastructure to improve environmental conditions and support expansion of the city towards the northwest, where air pollution levels are lower. The Youyu subproject has five components: (i) heat supply, (ii) water supply, 9iii) drainage and wastewater collection, (iv) roads and associated services, and (v) river improvement. In addition to providing city-wide environmental improvements, this subproject will provide basic infrastructure to support the development of an urban expansion area to house workers migrating to the county sear to work in agro-processing and other light industrial jobs.|
|Project Rationale and Linkage to Country/Regional Strategy||The Government of the People's Republic of China (PRC) is committed to developing small cities and towns as a way to generate jobs, narrow the rural-urban income gap, and increase national economic productivity. Growth of small cities and towns creates economic opportunities for farmers to move to urban areas and gain higher value-added employmen; this is the key to realizing the PRC's vision of "harmonious society," in which the benefits of growth will be shared more equitably. The PRC's Eleventh Five-Year Plan posits small city and town development as a means to provide a higher standard of living to rural migrants without exacerbating infrastructure fatigue and other problems afflicting large cities. Building on the conclusions of the ADB-financed Towns-Based Urbanization Strategy Study, the national town development policy calls for strengthening the physical and economic linkages between major cities in metropolitan areas or development corridors and the smaller settlements at their periphery.|
|Impact||Improved environmental quality and increased employment generation in small cities and towns in Shanxi Province.|
|Description of Outcome||Improved urban infrastructure and municipal services in about seven small cities and towns in Shanxi Province.|
|Progress Toward Outcome||Despite the delay at the first two years and the pending of selection of last batch of non-core subprojects, the project has made considerable progress since 2013. Most of the ongoing subprojects have completed their physical construction by end of 2016. The last two non-core subprojects for Yicheng and Lingshi have been approved by domestic authority and ADB in January 2016. Procurement for B-LS-02-01, A-YC-02-01 and A-YC-01-01 have been completed. Procurement activities for all remaining packages are ongoing. The loan has been extended for 1.5 years to 31 December 2017.|
|Description of Project Outputs||
Subproject 1: Pingayao County
Component 1: Huiji River Improvement
1.1 River bed is dredged and embankments are constructed.
1.2 Water storage reservoirs are built, rubber dams are installed.
Subproject 2: Wutong Town
Component 1: Caoxi Road and Associated Services
2.1 Road is widened and reconstructed, drainage channel is improved.
Component 2: Heat Supply
2.2 New heat exchange stations and distribution network operational.
Component 3: Gas Supply
2.3 New gas supply storage and distribution system operational.
Component 4: Wastewater Treatment
2.4 WWTP and collection network operational.
Component 5: Social Services Facilities
2.5 New schools and vocational training centers in use.
Subproject 3: Youyu County
Component 1: Heat Supply
3.1 New heat stations, heat exchange stations, and distribution network operational.
Component 2: Roads
3.2 New roads in the new town operational.
Subproject 4:Niangziguan Town
Component 1: Mian river improvement works
4.1 Mian river bed is dredged and embankments are constructed.
4.2 A rubber dam is built by local government financing.
4.3 A steel dam is installed
For all subprojects:
Infrastructure and service providers have increased capacity to plan, construct, operate, and maintain facilities.
Subproject 5: Xinghuacun Town
Component 1: Roads and associated services improvement
5.1 Xinshi Road construction & associated services
5.2 Xinqunan Road & Xinquzhong Road construction & associated services
Subproject 6: Qingxu County
Component 1: River and lake rehabilitation and landscaping
6.1: Northern East lake rehabilitated and landscaping works completed
6.2: Baishi river rehabilitated and landscaping works completed
Subsequent subproject cities and towns: Urban infrastructure and services improved and operational.
|Status of Implementation Progress (Outputs, Activities, and Issues)||
All the on-going subprojects committed their completion dates respectively as follows: Pingyao, by 30 August 2016; Fenyang, by 30 June 2016; Niangziguan, by 30 December 2016; Youyu, by 30 August 2016; Qingxu, by 30 June 2017. Fengyang has completed all construction works already. Niangziguan and Qingxu will complete their works as planned, while Youyu and Pingyou would have to extend their completion dates by two months due to the extraordinary flood in 2016.
The two new subproject, Yicheng and Lingshi has started procurement and will complete physical construction works by 31 Dec. 2017.
|Geographical Location||Shanxi Province|
Summary of Environmental and Social Aspects
|Environmental Aspects||EMP for Pingyao updated and approved.|
Baseline survey Wutong Approved and Disclosed;
Baseline survey for Youyu Heating Component Approved and Disclosed;
Resettlement Plan and Baseline survey for Xinhuacun Approved and Disclosed (noncore subproject).
Due Diligence Reports for Youyu Heating Component Complete and Approved;
Due Diligence Report for Xinhuaxun Completed and Approved.
M&E Reports for Pingyao, Xinghuacun, and Wutong, Youyu Heating Complete and disclosed.
|Indigenous Peoples||Only 1.5% ethnic minorities in the beneficiary population of the 3 subproject areas. An EMDF has been prepared for subsequent subprojects. No action required to assure compliance.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Stakeholder participation and consultation methods employed during project design include a household sample survey, focus group discussions, interview with key actors, and stakeholder consultation workshops. In April-May 2008, 600 households were surveyed in the three core project towns to gather information on their socio-economic profile and their preferences and priorities with respect to town development, urban infrastructure, and municipal services. Fifteen focus group discussions were also held in Shanxi Province; participants included vulnerable groups such as the poor, women, and ethnic minorities. Fourteen informant interviews were held with village elders and representatives of various bureaus at provincial, county, and village levels, such as the Construction Bureau, Statistical Bureau, Water Resources Bureau, Environmental Protection Bureau, Women's Association, Minority Affair Committee, and Health Bureau. The PPTA consultant organized and conducted during the month of April 2008 individual DMF workshops in each of the three core subproject towns and a provincial level DMF workshop in Taiyuan. A broad cross-section of stakeholders including community representatives, trade organizations, civil society organizations, infrastructure providers and local government departments participated in the workshops and contributed to the identification of measures to resolve the most pressing urban development and infrastructure problems in their towns. Development of the environmental management plan, environmental impact assessment, and environmental assessment and management framework involved two rounds of public consultations in each core subproject, from April to July 2008. The purposed was to introduce the Project and the relevant components and subcomponents to a range of stakeholders, and to solicit their views on the Project and its potential environmental implications, so that the EIA could take these into account during impact assessment.|
|During Project Implementation||
Key features of the consultation and participation include:
(i) public disclosure of all project documents at the Shanxi PMO and on the ADB website including the project information document (PID), including DMF and resettlement plans (RPs), summary environmental impact assessment (SEIA), EIAs, RRP, project administration memorandum, and social and environmental monitoring reports.
(ii) A PID will be prepared for each component. Available in Chinese, the PIDs will include a map or diagram of the affected areas; a description of the overall project, its aims and subcomponents; a description of what the project work will comprise; a timetable of when each of the project activities will take place, including estimated commencement and completion dates; expected social, economic and environmentalimpacts; environmental and social safeguards; the compensation policy and entitlements, including who will be entitled to compensation, what losses will be compensated and what entitlements will affected persons receive (details for land, trees, crops, structures, etc); and outline of livelihood restoration measures; how land, crops and assets will be valued; how the consultation and participation with affected persons and communities wil continue; the project communications strategy, including how people can find out about business opportunities that may arise in conjunction with the Project; whee people can go to get further or more detailed information about the Project.
|Consulting Services||The Project will provide funding for 26.0 person-months of international consulting services and 222.5 person-months of national consulting services to support the PMOs and IAs in project implementation and management and institutional capacity building. A consulting firm will be recruited in accordance with ADB's Guidelines on the Use of Consultants using the quality-and cost-based selection method. SPG has requested advance contracting and retroactive financing for recruitment of consultants.|
|Procurement||All procurement to be financed under an ADB loan will be carried out in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). Contract packages have been formulated in consultation with the IAs and a procurement capacity assessment of the EA, PMOs, and IAs has been undertaken. Based on the assessment, it is recommended that prior review be applied for all ICB contracts, the first NCB contract for works and goods, and post-review for other procurement modes. SPG has requested for advance contracting and retroactive financing due to the short construction period in the North PRC. To support these efforts, relevant provisions of ADB's Anticorruption Policy will be included in the loan regulations and the bidding documents for the Project.|
|Responsible ADB Officer||Wang, Lan|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||PRC Resident Mission|
Shanxi Provincial Government
Mr. Li Jinsheng,
Shanxi, People's Republic of China
|Concept Clearance||10 Sep 2008|
|Fact Finding||18 Sep 2008 to 30 Sep 2008|
|MRM||12 Nov 2008|
|Approval||18 Dec 2009|
|Last Review Mission||-|
|PDS Creation Date||12 Sep 2008|
|Last PDS Update||22 Mar 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|18 Dec 2009||13 Jul 2010||27 Jul 2010||30 Jun 2013||31 Dec 2013||02 May 2014|
|Financing Plan||Grant Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||0.25||Cumulative Contract Awards|
|ADB||0.00||18 Dec 2009||0.00||0.19||78%|
|Cofinancing||0.25||18 Dec 2009||0.00||0.19||78%|
|Approval||Signing Date||Effectivity Date||Closing|
|18 Dec 2009||27 Apr 2010||27 Jul 2010||30 Jun 2016||31 Dec 2017||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||265.90||Cumulative Contract Awards|
|ADB||100.00||18 Dec 2009||87.62||0.00||88%|
|Cofinancing||0.00||18 Dec 2009||60.87||0.00||61%|
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.
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