ADB is helping rehabilitate the fifth largest freshwater lake in the People's Republic of China. The project includes wastewater treatment plants and a wastewater collection network to intercept sewage that flows into the tributaries of Chao Lake. It will also improve management of solid waste and agricultural pollution, develop artificial wetlands and habitats, and strengthen lake management.
|Project Name||Anhui Chao Lake Environmental Rehabilitation 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 - Rural water policy, institutional and capacity development - Water-based natural resources management
Water and other urban infrastructure and services - Urban sewerage
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
The project will support the Anhui Provincial Government (APG) to implement the Master Plan for Integrated Water Environmental Management in the Chao Lake Basin (2008-2020). The proposal for Asian Development Bank (ADB) financing includes four project outputs: (i) increased municipal point source pollution control; (ii) enhanced non-point source (NPS) pollution control; (iii) improved institutional capacity of Chao Lake Management Authority (CLMA); and (iv) strengthened project management capacity.
The project impact will be improved quality of life and sustainable aquatic ecosystem in Chao Lake. The outcome will be improved condition of water resources and environment in Chao Lake and the upstream rivers.
|Project Rationale and Linkage to Country/Regional Strategy||
Chao Lake is the fifth largest freshwater lake in the PRC. Its catchment occupies about 10% of the total area of the Anhui province. The lake is important to industrial and agricultural water supply, water transport, tourism, and recreation in Anhui province. Over the last 20 years, the water environment of Chao Lake has been deteriorating due to the adverse environmental effects of rapid economic growth and urban development. During the 2000-2009 period, the urban population in the catchment increased by 30% and gross domestic product increased by 500%.
In 1996, Chao Lake was identified as one of the top three priority lakes in the PRC for environmental rehabilitation due to its poor water quality. Since then, the provincial and concerned local governments, supported by the national government and ADB, have provided large amount of resources to control municipal and industrial pollution in the lake catchment. These investments have reduced industrial and municipal wastewater to a certain extent, but they have not addressed all dimensions of the water quality problem in the lake. The lake continues to receive excessive concentrations of organic matter, nitrogen (N), and phosphorous (P). Particularly during summer times, elevated levels of pollutants and high temperatures result in algal blooms, depletion of oxygen in the water, and the emission of offensive odors.
The present average water quality in the lake is Class IV under the PRC's national environmental water quality standard and 50% of the water monitoring points in the lake are still Class V. This represents a slight improvement over the situation in 2005 when overall water quality in the lake was class V+, but is still far from the government's long term objective of Class III for the lake.
As a result of past investments and regulatory efforts, industrial pollution control in the lake catchment has improved. The two main pollution sources yet to be fully controlled are municipal point sources and non-point source (NPS) emissions. The Anhui Environmental Protection Department estimates that municipal sources account for about 50% of existing organic emissions into the lake, 57% of emissions of N, and 54% of P. Rural NPS emissions are estimated to account for 42% of organic emissions, 38% of N, and 42% of P.
The Anhui Provincial Government understands that a comprehensive approach is required to solve water quality problems in Chao Lake. To support the comprehensive approach, the APG has formulated the Chao Lake Environmental Rehabilitation Master Plan (master plan, 2008-2020), which suggests the need for about CNY50 billion of investments to develop a wide range of structural and non-structural measures, such as strengthened institutional mechanism, expanded and upgraded municipal wastewater treatment plants (WWTPs), extension of sewerage networks, continuation of the industrial wastewater treatment control program, comprehensive rural NPS pollution control, control of other NPS pollution sources through in-stream measures, water conservation, strengthened regulatory supervision, applied research, and public education.
The project supports the PRC's sustainable development agenda for the establishment of an environmental-friendly, resource-efficient, and harmonious society, as outlined in the PRC's 12th Five-Year Plan 2011-2015. The project will support the master plan and the PRC's 12th Five-Year Plan for Chao Lake environmental protection, and introduce an integrated approach to overcoming current constraints on the lake environment restoration. The project is aligned with the PRC country partnership strategy, 2011'2015, in supporting environmental sustainability and inclusive growth.
|Impact||Improved quality of life and sustainable aquatic ecosystem in Chao Lake|
|Description of Outcome||Improved condition of water resources and environment in Chao Lake and the upstream rivers|
|Progress Toward Outcome||
As of Q1 2017:
Procurement: Contracts have been signed for 65 packages.
Land Acquisition and Resettlement: Of the project's 9 resettlement plans, 8 have been updated and approved by ADB and 1 does not need to be updated.
|Description of Project Outputs||
Output 1. Increased municipal point source pollution control
Output 2. Enhanced non-point source pollution control
Output 3. Improved institutional capacity of Chao Lake Management Authority
Output 4. Strengthened project management capacity
|Status of Implementation Progress (Outputs, Activities, and Issues)||
1) Procurement Progress: By the end of March 2017, 65 packages with the total amount of USD156 million have been awarded with PCSS number;
2) Project Implementation Progress: As of 31 August 2016, the overall progress of the project was about 40% against an elapsed loan period of 62% from loan effectiveness. A totla of CNY1.2 billion contracts have been signed and 58% of the investment has been completed for these contracts;
3) Disbursement Progress: by the end of March 2017, a total of USD100 million ADB loan has been applied for disbursement, including the imprest account;
Summary of Environmental and Social Aspects
|Environmental Aspects||The project classification for environment is category A. A consolidated environmental impact assessment (EIA) report and an environmental management plan (EMP) were prepared following ADB's Safeguard Policy Statement (2009).|
|Involuntary Resettlement||The project is classified as Category A for involuntary resettlement. Although the impacts of land acquisition on most of the 3,200 affected people are minor, more than 50 people will be affected by house demolition and around 200 people will suffer significant loss of agricultural land. Resettlement plans have been prepared.|
|Indigenous Peoples||In accordance with the Safeguard Policy Statement, the project is classified as Category C for indigenous peoples. The population in the project area is ethnically homogenous mainstream Han. There are no impacts on ethnic minorities/indigenous peoples' groups in the project area.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||All consultants to be financed under the ADB loan are selected in accordance with ADB's Guidelines on the Use of Consultants 2013. ADB will finance three teams of consultants under the project for a total of 345 person-months (72 international, 273 national) to: (i) facilitate project management and implementation; (ii) implement a pilot project for NPS pollution control; and (iii) capacity development for CLMA. Consulting services for the individual packages are estimated at 125 person-months (25 international and 100 national) for project management, 65 person-months (all national) for NPS pollution control, and 155 person-months (47 international and 108 national) for capacity building for CLMA. The consultants will be selected and engaged following the quality and cost-based selection method, with a quality-cost ratio of 80:20, using full or simplified technical proposal, in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time).|
|Procurement||All procurement to be financed under the ADB loan are carried out following ADB's Procurement Guidelines 2015. Contracts for civil works valued at over $40 million and contracts for goods and related services valued at over $3 million will be procured through international competitive bidding procedures. Contracts for civil works valued at $40 million or less but over $200,000, and contracts for goods and related services valued $3 million or less but over $100,000 will be procured through national competitive bidding procedures. National competitive bidding will be undertaken following the PRC Tendering and Bidding Law (1999), subject to modifications agreed with ADB. Contract packages for civil works and for goods valued at $100,000 or less will be awarded through shopping procedure. Procurement will be centralized and a procurement agency that is familiar with ADB procurement procedures will be engaged by APG to undertake procurement of works, goods, and services under the project on behalf of the implementing agencies.|
|Responsible ADB Officer||Shen, Xin|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||PRC Resident Mission|
Anhui Provincial Government
4th Flr, South Bldg. of Anhui Prov. Govt
No. 221 Middle Changjiang Road
Hefei, Anhui, P.R. of China 230001
|Concept Clearance||10 Dec 2010|
|Fact Finding||23 Mar 2012 to 31 Mar 2012|
|MRM||13 Jun 2012|
|Approval||16 Nov 2012|
|Last Review Mission||-|
|Last PDS Update||13 Mar 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|16 Nov 2012||06 Feb 2013||26 Apr 2013||30 Sep 2018||31 Mar 2020||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||432.11||Cumulative Contract Awards|
|ADB||250.00||16 Nov 2012||156.83||0.00||63%|
|Cofinancing||0.00||16 Nov 2012||100.48||0.00||40%|
|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.
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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.
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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