ADB is supporting efforts of the People's Republic of China to integrate urban development with environmental protection in two of its poorest cities. The project will develop road and other urban infrastructure to improve living conditions and contribute to economic growth in Dingxi and Zhangye in Gansu province. It will also restore and protect the 210,000-hectare Zhangye wetlands.
|Project Name||Gansu Urban Infrastructure Development and Wetland Protection Project|
|Country||China, People's Republic of|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Governance and capacity development
|Sector / Subsector||
Agriculture, natural resources and rural development - Water-based natural resources management
Transport - Urban roads and traffic management
Water and other urban infrastructure and services - Urban policy, institutional and capacity development
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||The proposed project will have the following three components: (i) Development of Road Infrastructure in Dingxi City, (ii) Development of Urban Infrastructure and Wetland Protection in Zhangye City, and (iii) Project Management and Capacity Development. The proposed project will contribute to economic growth of the cities through integrating efficient and rational urban development with environmental improvement and wetland restoration and protection. In addition to the urban infrastructure improvement, the project will (i) increase capacity of the local government agencies to design and implement urban infrastructure development projects integrated with environmental improvement components; (ii) improve technical, financial, and managerial efficiency of the city's water supply company; (iii) improve urban services pricing and subsidization policies; (iv) improve traffic safety, management, and functionality of road infrastructure; and (v) develop a gender action plan.|
|Project Rationale and Linkage to Country/Regional Strategy||
The project (i) aims to improve living conditions and contribute to economic growth in Dingxi and Zhangye cities in the People's Republic of China's (PRC's) Gansu Province and (ii) supports the government's efforts to promote integrated urban infrastructure development and environmental protection.
Gansu, located in the northwest PRC, is the second poorest province in terms of gross domestic product per capita in the country. Despite buoyant economic growth in recent years, poor infrastructure and high transportation costs heavily constrained economic opportunities in the long-term. As part of the National Strategy for Development of the West, the government has focused on developing infrastructure (transport, municipal infrastructure, power, communication, and water resources) to stimulate and sustain economic growth in the province. The Asian Development Bank (ADB) has been actively supporting the government's efforts to stimulate Gansu's economic development. This project, together with other ADB-financed technical assistance and loan projects in the province, fully supports the above strategy.
Known as the eastern gateway because of its close proximity to the provincial capital of Lanzhou, the city of Dingxi has a population of 2.9 million with 21.38% living below the poverty line. The Wei River, one of the Yellow River's biggest tributaries flows through the district and is the major source of its water supply. Unfortunately, the city is surrounded by ravines in the north and highlands in the south which is responsible for its semi-arid topography, harsh winters, and scarce water resources. Lack of investments in infrastructure, particularly road networks has seriously threatened the flourishing of Dingxi's agriculture and natural resource-based industries.
Zhangye City is in the center of the Hexi Corridor which is part of the ancient Silk Road. It has a population of 1.28 million, 20.8% of which lives below the poverty line. The city is home to the 210,000 hectare-Zhangye wetlands which is one of the most critical aquatic ecosystems in the Northwest PRC. Twenty percent of the total wetland area has already vanished due to rapid urbanization combined with excessive water use and pollution. This has undermined the city's capacity to provide adequate water supply, flood control, biological diversity, and natural breeding grounds for rare species of birds and animals listed in the Annex of the China Conservation Law of Wild Animals. Meanwhile, the capacity to absorb increased population and rural migrants has become increasingly difficult due to infrastructure, environmental, and financial constraints. Consequently, sustainable urbanization and environmental protection have become priority goals for the city. Introduction of effective wetland protection technologies alongside urban infrastructure development and efficient urban development management in the city's Binhe district will help improve the urban environment and boost eco-tourism, real estate development, transportation, and other sectors of the city's economy.
|Impact||Socioeconomic development and improved environment in Dingxi and Zhangye|
|Description of Outcome||Improved urban infrastructure, municipal services, and environment in Dingxi and Zhangye cities|
|Progress Toward Outcome||Project progress toward outcome will be assessed at project completion.|
|Description of Project Outputs||
3. Restored and protected wetland in Zhangye
1. Improved urban infrastructure operating in Dingxi
2. Improved urban infrastructure operating in Zhangye
4. Capacity developed and institutions strengthened
|Status of Implementation Progress (Outputs, Activities, and Issues)||
By 13 March 2017, the contract awards and disbursement for the project are 93.8 million (accounting for 93.8% of the total loan) and 62.1 million respectively (accounting for 62.1% of the total loan).
The project implementation was satisfactory with overall implementation progress at 62%. The implementation progress for Dingxi road construction component is 47%; the implementation progress for Zhangye road construction component is 77%; for Zhangye wetland protection component, the water supply plant in Zhangye under the project but utilizing domestic fund was completed and started operation in 2015. The procurement for ADB financed civil works construction for Zhangye wetlands protection component was completed in Q4 2016. The construction commenced in February 2017.
|Geographical Location||Dingxi and Zhangye cities, Gansu Province|
Summary of Environmental and Social Aspects
|Environmental Aspects||The project is environment category A, primarily because of the Zhangye wetland protection component, which will support rehabilitation and protection activities in the experimental zone of the Zhangye Hei River Wetland National Nature Reserve. An environmental impact assessment was prepared, circulated to the Board of Directors, and posted on the ADB website on 2 March 2012. It complies with ADB's Safeguard Policy Statement (2009). The project will have substantial environmental and socioeconomic benefits, restoring and protecting 1,400 ha of wetland habitat. Potential negative environmental impacts associated with the project have been identified, and adequate mitigation and monitoring arrangements have been incorporated in the environmental management plan. Potential adverse impacts during construction and operation include soil erosion from earthworks, recommended alteration of a legally protected area, traffic noise in some sensitive areas, potential impact of the water supply component, significant spoil disposal, community occupational health and safety risks during construction, and limited standard construction impacts. These impacts will be prevented or minimized to an acceptable degree if the environmental management plan is effectively implemented. The environmental management plan is supported by loan covenants and capacity development and institutional strengthening under the project. A system to manage water quality and wetlands will be developed to monitor the ecological status of wetlands. As the executing agency, the Gansu provincial finance department disclosed relevant environment information to affected people, and the results and findings of consultation were used to modify the environmental impact assessment and project design. Consultation and public participation will continue throughout project implementation, and any environmental complaints or disputes will be handled by the grievance redress mechanism established for the project.|
|Involuntary Resettlement||The project is resettlement category A, as construction will require significant land acquisition and resettlement. The project will affect 62 village groups, 16 villages, 2 towns, and 2 districts in the project cities. A total of 245.7 ha of land will be acquired permanently and 8 ha occupied temporarily during implementation, affecting 3,327 households with 12,264 members whose land will be acquired. Houses and other buildings totaling 215,829 square meters of floor space will be demolished, which will affect 698 households with 2,527 members and 51 enterprises or institutions. Resettlement plans have been prepared for the Dingxi and Zhangye urban infrastructure components, and a due diligence report has been prepared for the wetland protection component in Zhangye. Resettlement plans will be finalized based on the final design and detailed measurement survey, disclosed to affected people in the local language, and submitted to ADB for review and approval before civil works contracts are awarded. A grievance redress mechanism has been established for affected people. The PMOs will (i) submit internal monitoring reports semiannually to ADB and (ii) engage an external monitor to conduct baseline studies of affected people, verify the progress of land acquisition and resettlement, assess its impacts, and submit semiannual monitoring reports for ADB's review during resettlement implementation and annually for 2 years after the completion of resettlement.|
|Indigenous Peoples||The project is indigenous peoples category C. Ethnic minorities living in the project cities are well integrated economically and socially into the broader society. They will benefit equally from the project. No adverse impacts particular to ethnic minorities were identified.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Major stakeholders include the government (national, provincial, municipal, and district levels); management of the water supply company; project beneficiaries; water supply and wastewater treatment service customers; and project area residents. Stakeholder analysis, including a household survey, will be conducted during PPTA implementation.|
|During Project Implementation||Three stakeholder workshops will be conducted during PPTA implementation. Findings from the household survey will be used as inputs. Public consultation will be carried out by the executing agency, local government officials, design institutes, and other stakeholders during preparation of the feasibility study, poverty and social assessment, environmental impact assessment, and resettlement plan.|
|Consulting Services||Recruitment of the consultants will be conducted in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time).|
|Procurement||Procurement for the project will be undertaken in accordance with ADB' Procurement Guidelines (2010, as amended from time to time). A project procurement plan, including consulting services inputs required for project implementation and mode of the consultant recruitment, will be prepared during the TA implementation.|
|Responsible ADB Officer||Zheng, Baochang|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||PRC Resident Mission|
Gansu Provincial Finance Department
No. 696 Donggang West Rd, Chengguan
District, Lanzhou, Gansu
The People's Republic of China 730000
|MRM||06 Jun 2012|
|Approval||26 Sep 2012|
|Last Review Mission||-|
|Last PDS Update||13 Mar 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|26 Sep 2012||26 Feb 2013||02 May 2013||30 Apr 2018||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||255.34||Cumulative Contract Awards|
|ADB||100.00||26 Sep 2012||94.45||0.00||94%|
|Cofinancing||0.00||26 Sep 2012||62.63||0.00||63%|
|Status of Covenants|
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.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
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.
Evaluation Documents See also: Independent Evaluation
None currently available.
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.
Requests for information may also be directed to the InfoUnit.