The proposed loan for the Shandong Groundwater Allocation and Protection Project will explore and implement restoration approaches for over-exploited groundwater resources in Weifang and Zibo cities in Shandong province, People's Republic of China (PRC). The proposed loan will optimize surface and groundwater allocation and usage, increase retention of storm water, and rehabilitate the management of wetlands to improve groundwater recharge. PRC draws groundwater heavily, a large proportion of which is used to irrigate more than 40% of the country's farmlands. Especially in the Northern China plain (NCP), rapid economic development has caused severe over-exploitation of its groundwater resources, and groundwater levels have dropped to critical levels in many areas.
|Project Name||Shandong Groundwater Allocation and Protection|
|Country||China, People's Republic of
|Project Type / Modality of Assistance||Technical Assistance
|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
|Gender Equity and Mainstreaming||Some gender elements|
|Description||The proposed loan for the Shandong Groundwater Allocation and Protection Project will explore and implement restoration approaches for over-exploited groundwater resources in Weifang and Zibo cities in Shandong province, People's Republic of China (PRC). The proposed loan will optimize surface and groundwater allocation and usage, increase retention of storm water, and rehabilitate the management of wetlands to improve groundwater recharge. PRC draws groundwater heavily, a large proportion of which is used to irrigate more than 40% of the country's farmlands. Especially in the Northern China plain (NCP), rapid economic development has caused severe over-exploitation of its groundwater resources, and groundwater levels have dropped to critical levels in many areas.|
|Project Rationale and Linkage to Country/Regional Strategy||
The Weifang-Zibo aquifer, which is in the NCP, is the largest over-exploited area in the Shandong province, and the second largest in the PRC. Water per capita in the Weifang-Zibo area is about one-sixth the average in PRC. The two cities are developing rapidly and domestic and industrial water demands are increasing. Known as the vegetable basket of Beijing, the agricultural production in the Weifang-Zibo area is high with a large concentration of greenhouses. The agricultural sector is the largest water user, which uses an estimated &.% of the total current groundwater abstractions.
Seasonal rainfall fluctuates widely, with an average 70% of the rainfall occurring from June to September. Frequent flooding occurs during the summer months, often followed by droughts during the remaining periods of the years. Recharge of groundwater resources over the year is insufficient to recover from the excessive pumping during the dry periods. Storm waters flow to the sea unutilized, and often cause serious damage to land and properties in the area. The pattern of irregular rainfall is expected to worsen as a result of climate change.
The consequences of the current unsustainable groundwater utilization are serious: (i) future domestic water supplies and agricultural production are at risk; and (ii) the area is already suffering from significant financial and economic damages caused by land subsidence, increasing pumping costs, and groundwater quality deterioration due to seawater intrusion and environmental pollution. The process of land subsidence is irreversible, and urgent action is needed to avoid worsening. Some areas have already experienced subsidence of up to 2.25 meter, and seawater intrusion ( up-coning') in the north has reached 35 kilometer from the coast.
Shandong province is selected by the central government as a demonstration province for modernized water administration. The Shandong provincial government (SPG) has already taken multiple initiatives to address water scarcity in the NCP, including promoting water efficiency and re-use, and introducing regulations on groundwater pumping. The results have not yet been successful in stopping further decline of groundwater levels in the Weifang-Zibo area. Also, the government is constructing the south-north water transfer scheme, which is expected to provide additional water for Shandong province in 2014. Studies indicate that, because the diverted water will be mainly for municipal and industrial use, this scheme will not be sufficient to mitigate the current over-exploitations of the groundwater resources in the NCP.
Aspects that require urgent action include (i) increased efficiency in the use of groundwater, in conjunction with the retention of surface and storm water; (ii) introduction of groundwater pricing; (iii) improved monitoring of groundwater quality and use; (iv) technical solutions to recharge groundwater resources; and (v) empowerment of local communities to manage and protect their groundwater resources. Also, there is an urgent need to raise the awareness and capacity of the central and local governments in managing groundwater information, assessing the scale and priorities of the problems, and enforcing legislations.
The project is consistent with PRC's Twelfth Five-Year Plan (2011 2015), which pursues the long-term goal of building a harmonious and moderately prosperous society through regionally balanced and environmentally sustainable growth. It is also in line with ADB's country partnership strategy, 2011 2015 for the PRC in supporting the government's overarching strategic goal by focusing on inclusive and environmentally sustainable growth, and ADB's Water Operational Plan 2011 2020. The proposed project is included in ADB's lending pipeline as 2015 standby for the PRC. Project loan is proposed as financing modality of the project.
|Description of Outcome|
|Progress Toward Outcome|
|Description of Project Outputs|
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation||
The loan fact-finding mission was conducted from 5 to 13 February 2015. The MRM is on 28 July 2015 and the loan negotiations is tentatively scheduled in October 2015.
A final workshop on innovative groundwater management practices in PRC was held in Beijing on 30-31 July 2015, in close coordination with the team of the Ministry of Water Resources, the EA for the technical assistance project on PRC Country Water Assessment. Experts from other provinces, including Beijing, participated in the forum and presented typical experiences.
|Consulting Services||About 18 person-months of staff time will be required to prepare the project. A project preparatory technical assistance (PPTA) of $850,000 equivalent will be required to help prepare the project in compliance with ADB's and the government's requirements (Appendix 4). An amount of $600,000 equivalent will be provided on a grant basis from ADB's Technical Assistance Special Fund (TASF-other sources); and $250,000 equivalent is requested from the Multi-Donor Trust Fund under the Water Financing Partnership Facility (WFPF).|
|Responsible ADB Officer||Radstake, Frank|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||Environment, Natural Resources & Agriculture Division, EARD|
Shandong Provincial Government
People's Republic of China
|Approval||09 Aug 2013|
|Last Review Mission||-|
|Last PDS Update||18 Sep 2015|
|Approval||Signing Date||Effectivity Date||Closing|
|09 Aug 2013||03 Sep 2013||03 Sep 2013||31 Mar 2015||30 Sep 2015||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|600,000.00||250,000.00||0.00||0.00||0.00||0.00||850,000.00||09 Aug 2013||727,543.31|
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