China, People's Republic of: Integrated Development of Key Townships in Central Liaoning

Sovereign Project | 44021-013 Status: Active

Summary

ADB is helping the People's Republic of China make key townships in central Liaoning Province more competitive, green, and inclusive. The project will construct a wastewater treatment plant, upgrade a district heating network, improve roads bridges, and support capacity development in project management agencies.

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Procurement Documents


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Project Name Integrated Development of Key Townships in Central Liaoning
Project Number 44021-013
Country China, People's Republic of
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2901-PRC: Integrated Development of Key Townships in Central Liaoning
Ordinary capital resources US$ 150.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Energy - Energy utility services

Transport - Urban roads and traffic management

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

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project aims to promote balanced and environmentally sustainable urbanization; narrow the rural-urban gap; and improve living conditions by supporting the development of five key townships in central Liaoning Province, People's Republic of China (PRC). The project will support urban water supply, wastewater management, energy efficient heat supply, and urban road and bridge construction and related services.
Project Rationale and Linkage to Country/Regional Strategy

Located in northeast PRC, Liaoning Province's economic base is transitioning from state-owned heavy industries to light and service industries. State investment is aiding this transformation, but cities are finding it more difficult to harness employment opportunities and economic growth. Moreover, planners expect 85% of central Liaoning Province's population to be urbanized by 2020, largely through rural-urban migration. In the coming decade, the demands of tens of millions of rural migrants for urban infrastructure, municipal services, and employment, must be satisfied.

Although Liaoning's key central townships have made substantial progress in facilitating economic growth, assistance is needed to combat heavy pollution, poor living conditions, inadequate public services, and comparatively high unemployment. Recognizing that current urbanization trends will place excessive pressure on the provincial capital of Shenyang, the Liaoning provincial government (LPG) intends facilitating urbanization of key central townships, by strengthening their infrastructure to support higher populations. Reflecting Asian Development Bank (ADB) advice , the Liaoning Urbanization Strategy and the Central Liaoning Cluster Development Strategy will support the Shenyang Metropolitan Area: State Pilot Zone for Coordinating New Industrialization Reforms. The Shenyang metropolitan area comprises eight cities and is a national pilot zone for revitalizing northeast PRC's industrial base. The concept is "one core, five corridors, and ten clusters". One core refers to the Shenyang economic zone, which will focus on supporting regionally-focused high-technology industries. New economic zones will be established along five converging, inter-city connection corridors. Ten industrial cluster pilot zones will be developed within the five corridors. The pilot is intended to inform regional development in the PRC, promote regional cooperation with northeast Asian countries, and support sustainable industrial transformation in line with the PRC's circular economy approach (reduce, reuse, recycle).

This project will build on ADB's Liaoning small cities and towns project and is intended to demonstrate clustered urban agglomeration and integrated rural-urban development while incorporating environmental and social considerations in planning and development. The proposed project reflects two early lessons from the ongoing project. First, a project rather than a sector approach will be taken in recognition of constraints imposed by domestic procedures. Second, the selection of participating towns will be more tightly driven by clustering considerations. Further lessons will be identified and incorporated during implementation of the project preparatory technical assistance (PPTA).

Issues for key central townships include poor infrastructure, severe pollution, significant poverty levels, non-integrated development management, and rural migrants with mismatched employment skills. The project aims to address these issues through interventions to support economic growth, environmental protection, infrastructure improvement, and rural-urban transition support. The main project components are water and wastewater, roads and associated services, district heating, and rural-urban transition support. Inadequate public transportation and central heating supply contribute to gender inequities in the burden of household work. To maximize project benefits, women will be given priority in employment and training opportunities during the project construction and operation phases. Environmental benefits are expected to include (i) improved water quality due to expanded wastewater treatment; and (ii) improved air quality through reduced traffic emissions and as inefficient coal-fired heating boilers and home heating stoves are abandoned.

LPG is selecting participating key central townships through a competitive process. Selection considerations include (i) consistency with planning objectives, including being located in the central Liaoning urban cluster; (ii) ability to yield significant socioeconomic, environmental and financial benefits; (iii) status of preparatory activities; (iv) financial and institutional implementation capacity, including counterpart funds and loan-servicing capacity; (v) consistency of implementation timeframes; and (vi) non-participation in the ongoing project. The selection is expected to be completed prior to mobilization of the PPTA consultants.

The project is consistent with the PRC's 11th Five-Year Plan (FYP) 2006-2010, which is promoting city development to provide higher living standards for rural migrants. Moreover, the ADB-financed Town-Based Urbanization Strategy Study, underpinned the PRC's national town development policy which calls for stronger linkages between major cities and peripheral settlements. The 12th FYP 2011-2015 is expected to further reinforce these directions. Recognizing ADB's commitment to private sector development, opportunities for private sector participation will be explored during project design. The project is aligned with ADB's Country Partnership Strategy for the PRC and conforms to ADB's Water Policy and Water Financing Program. It is consistent with ADB's urban sector strategy and the PRC's urbanization strategy which support rural-urban integration, infrastructure investments in settlements that are dynamic growth engines and sources of social services, and economic growth rebalancing. It also supports ADB's Climate Change Program , through reduced vehicle emissions per trip, enhanced water resources management, and reduced greenhouse gas emissions from coal-fired heating boilers. ADB's Sustainable Transport Initiative will inform the design of urban road components and related institutional and capacity development assistance, for instance through support to improve public transport.

Impact More competitive, green, and inclusive urbanization in key townships in central Liaoning

Project Outcome

Description of Outcome Improved sanitation, heating, and transport services in key townships in central Liaoning
Progress Toward Outcome The project implementation is behind schedule and a significant proportion of project activities have been adjusted and multiple scope changes are being processed due to the adjustment in development priorities, the fact that a few activities were already undertaken using other funds, and the need to minimize the land acquisition and resettlement impact. It is noted that the project has demonstrated promising positive impact in the urban development in project counties and appreciate the great effort of the PMO and IAs. In view of the loan closing date of 30 June 2018, the remaining implementation period is of paramount importance to the success of the project, for which joint efforts of LPG, PMOs and IAs are required.
Implementation Progress
Description of Project Outputs

1. Improved wastewater management facilities are operating.

2. Upgraded district heating network is operating in Fuxin (Sihe Town).

3. Urban roads and bridges are opened to traffic and related services are operating.

4. Capacity developed and institutions strengthened.

Status of Implementation Progress (Outputs, Activities, and Issues)

As of 30 June 2016

Xinmin Urban Road Subproject. Sseven contracts (XM-C05, C06, C07, C08, C09 and XM-E01-E02) have been awarded with total contract amount of CNY322.73 million. As of June 2016, civil works under contracts XM-C08, XM-C05, XM-C06, and XM-C07 have been implemented by about 70%, 90%, 100%, and 75% respectively; goods contract XM-E01 has achieved all delivery, XM-E01 has delivered about 50%.

Heishan Urban Road Subproject. Under this Subproject four contracts have been awarded (HS-C04, HS-C03A, and HS-E01, HS-E02) with total contract amount of CNY115.76 million. The civil works contract HS-C04 is expected to be completed in July 2016, contract HS-C03A was signed in March 2016 and has not started yet. Equipment contracts HS-E01 and HS-E02 have been delivered.

Shenbei Wastewater Management Improvements and Urban Roads Subproject. This Subproject originally included the construction and rehabilitation of roads (and associated facilities) in Qingshuitai and Xinlongtai townships, and the construction of a 10,000 m3 per day wastewater treatment plant (WWTP) in Qingshuitai Township. Replacement of the subproject's components had been discussed in both the review missions in 2015 and the previous year, however the decision of the local government hasn't been made which has resulted in the subproject being held on and the only component that started is the contract for municipal maintenance equipment (SW-E01). Such delay in this subproject has seriously affected the overall progress of the project in view of its weight in the project expenditure.

Fuxin District Heating Network Subproject. This subproject includes the procurement of central district heating management equipment and its installation (contract package FX-E01) with contract amount of CNY64.51 million. As of June 2016, only one of the 12 heat exchange stations and 10km of secondary heating transmission pipelines have been installed, accounting for only 18% of the total amount.

Benxi Urban Transport Improvement Subproject (provisional title, proposed as replacement of Waitoushan Town Subproject). In March 2014, LUCRPO and LDRC informed ADB of the cancellation of the subproject in Waitoushan Town (Benxi City) under Output 3 for Environmentally Sustainable Urban Infrastructure Development (rehabilitation and construction of roads and installation of stormwater and sewer pipes). The reason for this cancellation is lack of counterpart funding. The IA has identified a new subproject in Benxi City under the same Output 3. The proposed activities include (i) widening and upgrade of Binhe North Road, a trunk road connecting three districts and the Benxi Iron and Steel Plant, and (ii) the reconstruction of Caitun bridge. The proposed Subproject's Feasibility Study Report (FSR) has been approved by the provincial DRC on 17 June 2016. ADB approved the minor change of scope in August 2016.

Gaizhou Urban Road Subproject. Contract GZ-C03 with a contract amount of CNY39.81 million has been completed as of June 2016. Construction activities for Beichen Rd (under contracts GZ-C01 and C02) have been delayed due to difficulties in acquiring the land. At the request of the EA, Beichen Rd is replaced by upgrading 6 main roads and rehabilitate 19 small alleys with installation of traffic management facilities and sewerage pipelines.

Huanren Integrated Development Subproject involves the construction, upgrade and rehabilitation of urban roads. Two contracts (HR-C03 and HR-E01) have been awarded with total contract amount of CNY59.46 million. As of May 2016, HR-C03 has achieved 40% of progress and HR-E01 has completed the delivery.

Geographical Location

Safeguard Categories

Environment A
Involuntary Resettlement A
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects The Project EIA has been posted to ADB's website in advance of board consideration (25 September 2012). The revised EIA for Heishan and Gaizhou subproject, the revised IEE for Benxi subproject were disclosed during 2015-2016. The external monitoring reports were disclosed on ADB's website on time.
Involuntary Resettlement

The project resettlement plans have been prepared and dislcosed on ADB's website in advance of board consideration (25 September 2012).

The updated resettlement plans for Gaizhou, Heishan, Huanren and Xinmin were disclosed on ADB's website in 2014. The updated resettlement plan for Benxi and Shenbei sub-projects were disclosed in 2016.

Indigenous Peoples No significant issues are expected.
Stakeholder Communication, Participation, and Consultation
During Project Design Substantial consultations were conducted with stakeholders during PPTA implementation.
During Project Implementation Substantial consultations with stakeholders have commenced.

Business Opportunities

Consulting Services It is expected that the project will finance international and national consulting services to support project implementation, management, and institutional capacity building. These requirements will be determined during PPTA implementation and consulting services will be engaged in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time). Advance contracting and retroactive financing will be considered. Provincial, municipal, and national levels of Government were involved in project identification and conceptualization.
Procurement To be determined during PPTA implementation.

Responsible Staff

Responsible ADB Officer Wang, Fang
Responsible ADB Department East Asia Department
Responsible ADB Division PRC Resident Mission
Executing Agencies
Liaoning Provincial Government, c/o Liaoning Urban Construction and Renewal Project Office (LUCRPO)
[email protected]
F24, Liaoning Urban Construction and Renewal Project Office,
Changxin Building, Qingnian Street,
Heping District, Shenyang, Liaoning, PRC

Timetable

Concept Clearance 19 Oct 2010
Fact Finding -
MRM 22 Jun 2012
Approval 25 Sep 2012
Last Review Mission -
PDS Creation Date 25 Oct 2010
Last PDS Update 22 Sep 2016

Loan 2901-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Sep 2012 07 Jan 2013 25 Mar 2013 30 Jun 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 395.35 Cumulative Contract Awards
ADB 150.00 25 Sep 2012 78.77 0.00 53%
Counterpart 245.35 Cumulative Disbursements
Cofinancing 0.00 25 Sep 2012 50.77 0.00 34%

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
Integrated Development of Key Townships in Central Liaoning: Environmental Monitoring Report (January-June 2016) Environmental Monitoring Reports Aug 2016
Integrated Development of Key Townships in Central Liaoning: Social Monitoring Report Social Monitoring Reports Aug 2016
Integrated Development of Key Townships in Central Liaoning: Xinmin Subproject Resettlement Due Diligence Report Safeguards Due Diligence Reports Aug 2016
在遼寧中部重點城鎮綜合開發:蓋州市子項目移民安置盡職調查報告 Safeguards Due Diligence Reports Jul 2016
Integrated Development of Key Townships in Central Liaoning Project: Gaizhou Road Initial Environmental Examination Initial Environmental Examination Jun 2016
Integrated Development of Key Townships in Central Liaoning Project: Benxi Binhe Bei Road and Caitun Bridge Initial Environmental Examination Initial Environmental Examination Jun 2016
Integrated Development of Key Townships in Central Liaoning Project: Binhe North Road and Caitun Bridge (Benxi City) Resettlement Plan Resettlement Plans Jun 2016
Integrated Development of Key Townships in Central Liaoning: Social Monitoring Report Social Monitoring Reports Mar 2016
Integrated Development of Key Townships in Central Liaoning: Environmental Monitoring Report (July-December 2015) Environmental Monitoring Reports Feb 2016
Integrated Development of Key Townships in Central Liaoning Project: Environmental Impact Assessment Environmental Impact Assessments Sep 2015
Integrated Development of Key Townships in Central Liaoning - Gaizhou Urban Road and Xinmin Urban Road Subprojects: Environmental Monitoring Report (January-June 2015) Environmental Monitoring Reports Sep 2015
Integrated Development of Key Townships in Central Liaoning: Social Monitoring Report (August 2015) Social Monitoring Reports Aug 2015
Integrated Development of Key Townships in Central Liaoning: Gaizhou Urban Road and Xinmin Urban Road Subprojects - Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Mar 2015
Integrated Development of Key Townships in Central Liaoning: Social Monitoring Report (December 2014) Social Monitoring Reports Dec 2014
Integrated Development of Key Townships in Central Liaoning: Gaizhou Urban Road Subproject - Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Sep 2014
Integrated Development of Key Townships in Central Liaoning: Heishan Subproject Resettlement Plans Mar 2014
Integrated Development of Key Townships in Central Liaoning: Huanren Subproject Resettlement Plans Mar 2014
Integrated Development of Key Townships in Central Liaoning: Xinmin Subproject Resettlement Plans Mar 2014
Integrated Development of Key Townships in Central Liaoning: Gaizhou Subproject Resettlement Plans May 2013
Integrated Development of Key Townships in Central Liaoning: Heishan Subproject Resettlement Plans Jun 2012
Integrated Development of Key Townships in Central Liaoning: Shenbei Subproject Resettlement Plans Jun 2012
Integrated Development of Key Townships in Central Liaoning: Xinmin Subproject Resettlement Plans Jun 2012
Integrated Development of Key Townships in Central Liaoning: Resettlement Due Diligence Report for Fuxin Component Safeguards Due Diligence Reports May 2012
Integrated Development of Key Townships in Central Liaoning: Huanren Subproject Resettlement Plans May 2012
Integrated Development of Key Townships in Central Liaoning Project Environmental Impact Assessments May 2012
Integrated Development of Key Townships in Central Liaoning: Waitoushan Subproject Resettlement Plans May 2012
Integrated Development of Key Townships in Central Liaoning: Gaizhou Subproject Resettlement Plans May 2012

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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