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.
|Project Name||Integrated Development of Key Townships in Central Liaoning|
|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||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|
|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.|
|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 end December 2016, the cumulative contract commitments and disbursement were $84.5 million and $63 million and accounting for 56% and 42% of the ADB loan amount respectively.
Gaizhou: Contract GZ-C03 with a contract amount of CNY39.81 million has been completed as of June 2016.
Heishan: Four contracts have been awarded (HS-C04, HS-C03A, and HS-E01, HS-E02) with total contract amount of CNY115.76 million. HS-C04 was signed in May 2015 and construction started in July 2015, and approximate 87% of contract value has been completed as of December 2016. The contract for HS-E02 was signed in July 2015, all the equipment included in the contract was delivered, and disbursement was completed. The contract for HS-E01 was signed in December 2015, and all the equipment was delivered with 100% of contract value was disbursed. The contract for HS-C03A was signed in March 2016, and approximate 75% of contract value has been completed as of December 2016. The contract for HS-C03B was signed in November 2016, and approximate 23% of contract value has been completed as of December 2016.
Huanren: Three contracts (HR-C03 and HR-E01) have been awarded with total contract amount of CNY98.86 million. The contract HR-E01 was signed in December 2014. All goods included in this contract have been delivered with 100% of contract value disbursed. The contract for HR-C03 was signed in September 2015, and construction started in September 2015 and over 83% of contract value has been completed as of December 2016. The contract for HR-C01 was signed in August 2016, construction started in August and 36% of contract value has been completed as of December 2016.
Shenbei: The contract for SD-C05 was signed in September 2016 and construction is expected to start in April 2017.
Fuxin District Heating Network Subproject includes the procurement of central district heating management equipment and its installation (contract package FX-E01) with contract amount of CNY64.51 million.
Xinmin: Eight contracts (XM-C01, C05, C06, C07, C08, C09 and XM-E01-E02) have been awarded with total contract amount of CNY352.73 million. The construction for contract package XM-C06 has been completed. The contract values completed for contract packages XM-C05, XM-C07, and XM-C08 have reached nearly 90%; goods contract XM-E01 and E02 has achieved all delivery.
The consultant recruitment for the capacity building and training component started on 27 March 2017.
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.|
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.|
|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 ADB Officer||Wang, Fang|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||PRC Resident Mission|
Liaoning Provincial Government, c/o Liaoning Urban Construction and Renewal Project Office (LUCRPO)
F24, Liaoning Urban Construction and Renewal Project Office,
Changxin Building, Qingnian Street,
Heping District, Shenyang, Liaoning, PRC
|Concept Clearance||19 Oct 2010|
|MRM||22 Jun 2012|
|Approval||25 Sep 2012|
|Last Review Mission||-|
|PDS Creation Date||25 Oct 2010|
|Last PDS Update||27 Mar 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|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||89.39||0.00||60%|
|Cofinancing||0.00||25 Sep 2012||62.59||0.00||42%|
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