46921-014: SONGHUA RIVER BASIN WATER POLLUTION CONTROL AND MANAGEMENT PROJECT PRIVATE SECTOR FACILITY (PHASE 2) | Asian Development Bank

China, People's Republic of: SONGHUA RIVER BASIN WATER POLLUTION CONTROL AND MANAGEMENT PROJECT PRIVATE SECTOR FACILITY (PHASE 2)

Nonsovereign (Private) Project | 46921-014 Status: Approved

The project is the second phase of the Songhua River Basin Water Pollution Control and Management Project Private Sector Facility,1 which is part of a broader multiproject initiative under the East Asia Department and the Private Sector Operations Department of the Asian Development Bank (ADB) to address acute water stress in the Songhua River basin (SRB) of northeastern PRC. Phase 2 expands LJEPs' operations into sludge treatment and improves the technical parameters of its existing WWTP projects. Specifically, it will finance investments to (i) install sludge handling units and the treatment and disposal of approximately 1,200 t/d of sludge, and (ii) the upgrade of approximately 300,000 t/d of WWTP capacity to meet higher effluent standards.

Project Details

Project Officer
Roberts, Scott C. Private Sector Operations Department Request for information
Country
  • China, People's Republic of
Sector
  • Water and other urban infrastructure and services
 
Project Name SONGHUA RIVER BASIN WATER POLLUTION CONTROL AND MANAGEMENT PROJECT PRIVATE SECTOR FACILITY (PHASE 2)
Project Number 46921-014
Borrower/Company LONG JIANG ENV'T PRO-SLUDGE (PH 2)
LONG JIANG ENV'T PROTECTION GROUP
Country China, People's Republic of
Location
Type or Modality of Assistance
7375/2933 Loan USD 600.00 million Approved
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Water and other urban infrastructure and services / Urban sewerage

Gender Equity and Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 2
Responsible ADB Officer Roberts, Scott C.
Project Sponsor(s)
Description

The project is the second phase of the Songhua River Basin Water Pollution Control and Management Project Private Sector Facility,1 which is part of a broader multiproject initiative under the East Asia Department and the Private Sector Operations Department of the Asian Development Bank (ADB) to address acute water stress in the Songhua River basin (SRB) of northeastern PRC. Phase 2 expands LJEPs' operations into sludge treatment and improves the technical parameters of its existing WWTP projects. Specifically, it will finance investments to (i) install sludge handling units and the treatment and disposal of approximately 1,200 t/d of sludge, and (ii) the upgrade of approximately 300,000 t/d of WWTP capacity to meet higher effluent standards.

Similar to the Phase 1 project, Phase 2 will use the proceeds from ADB financing to finance subprojects, which are held either directly by the firm or through wholly-owned subproject company subsidiaries. Both Phase 1 and 2 are envisaged to (i) expedite the delivery of urban water supply, sanitation, and wastewater services in the PRC; (ii) arrest increasing pollution of water resources and reduce threats to public health; and (iii) promote private sector participation in urban water supply, sanitation, and wastewater management in the PRC, among other goals.

Objectives and Scope The project was intended to fund the first major sludge treatment and disposal development program in Heilongjiang province, and will serve as a model for future sludge project investments in the Songhua River Basin; improve the environmental performance of existing wastewater treatment facilities through process upgrades; and support private investment in urban environmental infrastructure in second- and third-tier cities, a priority area for ADB and the PRC government. The Project is the second phase of the Songhua River Basin Water Pollution Control and Management Project Private Sector Facility, which is part of a broader EARD/PSOD multi-project initiative to address acute water stress in the Songhua River Basin.
Status of Development Objectives To be evaluated.
Status of Operation/Construction

The first drawdown under Phase 2 was made on 16 May 2013 for CNY230 million, which is the outstanding loan amount to date.

As of September 2014, the company operates 15 WWTP sites with a total processing capacity of 1.94 million tons per day and three municipal water utilities of around 900,000 tons per day of treatment and delivery capacity. Of its WWTP operations, approximately 93% of capacity is contracted under take-or-pay minimum volumes. For the water utilities, LJEP operates as a service monopoly; during 2013, the volume of water supplied accounted for 50% of utility capacity, with future utilization rates expected to increase with per-capita increases in water use, the connection of newly urbanizing zones, and a continuing program by local authorities to shut independent wells (required by policy so as to meet national standards for urban water quality).

A further 2 WWTP projects are under construction or planning stage, and will be completed by December 2014; after a brief commissioning period (typically 1-2 months), COD will be in early 2015. The WWTP additions represent an incremental 10% in the company's wastewater capacity. Another 3 projects in sludge treatment and disposal are also underway, with the Harbin Pingfang District Sludge Project being the largest, at 650 t/d of capacity.

Linkage to Country/Regional Strategy The project aligns with the PRC country partnership strategy, as it promotes balanced development, resource efficiency and environmental sustainability, and private sector development; and is also consistent with the CPSs affirmation of water supply and sanitation as a priority sector. The project is consistent with ADB's Water Policy and Water Operational Plan 2011-2010, which promote investments to reverse the degradation of water resources by agricultural, industrial, and municipal effluents.
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

In compliance with ADBs Safeguard Policy Statement (2009), the project is category B for environment. LJEP has established an environmental and social management system (ESMS) and undertakes extensive and real-time environmental monitoring, monthly reporting, and annual performance audits. To date, LJEP has complied with national, provincial, and local environmental requirements and maintained ISO 14001-2004 certification.

Subprojects are located at existing sites in suburban areas designated for industrial use, so land acquisition will be minimal. Hence, with respect to involuntary resettlement the project is category B, while for indigenous peoples the project is category C.

Involuntary Resettlement NA
Indigenous Peoples NA
Stakeholder Communication, Participation, and Consultation LJEP will comply with ADBs Social Protection Strategy and report regularly to ADB on compliance including that of its contractors with national labor laws consistent with internationally recognized core labor standards. The revised ESMS, to be submitted prior to disbursement for the first subproject, will incorporate the social protection requirements and the requirements of ADBs Public Communications Policy (2011).
Timetable for assistance design, processing and implementation
Concept Clearance 21 Jun 2012
Credit Committee Meeting 08 Oct 2012
Approval 08 Nov 2012
PDS Creation Date 20 Aug 2012
Last PDS Update 03 Oct 2014

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.

Related Publications

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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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