The proposed loan for the Shandong Groundwater Protection Project will contribute to ensuring sustained groundwater supply for the agricultural sector in the Weifang-Zibo area. The project will serve as a demonstration of an integrated approach for environmental restoration of overexploited groundwater aquifers through improving allocation of water resources, retention of storm water, and rehabilitating the water environment. The project will protect groundwater quantity and quality in the area, safeguard a sustainable groundwater source for the agricultural sector, and contribute to improving food security in the PRC.
|Project Name||Shandong Groundwater Protection 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||Knowledge solutions
|Sector / Subsector||
Agriculture, natural resources and rural development - Rural flood protection - Rural water policy, institutional and capacity development - Water-based natural resources management
|Gender Equity and Mainstreaming||Some gender elements|
|Description||The proposed loan for the Shandong Groundwater Protection Project will contribute to ensuring sustained groundwater supply for the agricultural sector in the Weifang-Zibo area. The project will serve as a demonstration of an integrated approach for environmental restoration of overexploited groundwater aquifers through improving allocation of water resources, retention of storm water, and rehabilitating the water environment. The project will protect groundwater quantity and quality in the area, safeguard a sustainable groundwater source for the agricultural sector, and contribute to improving food security in the PRC.|
|Project Rationale and Linkage to Country/Regional Strategy||
Falling groundwater tables as a result of over-extraction of groundwater is a major concern in the PRC, particularly in the northern parts of the country. The PRC heavily depends on extraction of groundwater. An estimated 20% of water supplies in the PRC come from groundwater, ranging from 110 billion cubic meters (m3) to 150 billion m3 per year. The largest groundwater user is the agricultural sector (60%), with domestic and industrial usage sharing the remaining 40%. There are more than 100 large cones of groundwater depression with an estimated total area of 150,000 square kilometers (km2) in the PRC. In the Northern China Plain (NCP), the total area of the cone of groundwater depression already extends to 70,000 km2.
|Impact||Groundwater supply for the agricultural sector in the Weifang-Zibo area sustained|
|Description of Outcome||Conservation and sustainable use of groundwater resources in Weifang and Zibo prefectures improved|
|Progress Toward Outcome|
|Description of Project Outputs||
Groundwater recharged and conserved
Surface water allocation improved and monitored
Capacity development for water resources management enhanced
|Status of Implementation Progress (Outputs, Activities, and Issues)||
Output 1 - For the wetland restoration activities in Huantai county, the works on the water diversion channel (North Trunk Channel) are 90% complete, and Mata Lake (Huantai county) wetland rehabilitation has achieved 70% physical progress. The works around Mata Lake will be completed by December 2017. The 2 civil works contracts for the activities on Judian Lake (Shouguang county) wetland rehabilitation have been awarded and physical works will soon commence.
Output 2 - In Changle County, all six civil works contracts have been awarded with most activities in full implementation. Phase 1 works of the Xiashan reservoir in Gaomi have been completed. In Huantai county, the construction for Xiaoful, Wu and Dongzhulong river rehabilitation activities are nearly completed. In Qingzhou county, works relating to the river diversions from Renhe reservoir, which involved 2 civil works contracts, are nearing completion.
Output 3 - Work is progressing well on the preparation of a pilot groundwater trading system using a card-controlled water usage system and site investigations have been completed and preparatory works have started on smart greenhouses incorporating underground reservoirs.
|Summary of Environmental and Social Aspects|
|Environmental Aspects||Based on the preliminary assessments, the project is classified as category A for environment. Safeguard documents, including an environmental impact assessment, will be prepared following ADB's Safeguard Policy Statement (2009).|
|Involuntary Resettlement||Based on the preliminary assessments, the project is classified as category A for involuntary resettlement. Safeguard documents, including resettlement plan, will be prepared following ADB's Safeguard Policy Statement (2009).|
|Indigenous Peoples||Based on the preliminary assessments, the project is classified as category C for indigenous peoples. Safeguard documents will be prepared following ADB's Safeguard Policy Statement (2009).|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
Consulting services will be required for (i) project management support, (ii) capacity development for water policy and conservation demonstration activities, and (iii) software development for the MIS in Huantai County. The outline terms of reference (TOR) for each of the three consulting services packages are described in section D.
The PMO will be responsible for engaging consultants. All consultants financed by ADB will be recruited according to ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).
All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2015, as amended from time to time). Except as ADB may otherwise agree, the following process thresholds shall apply to procurement of goods and works.
Civil works contracts estimated to cost $25 million and above, and contracts for goods estimated to cost $3 million and above will be procured using international competitive bidding (ICB) procedures. Contracts for works and goods estimated to cost less than the ICB values but equal to $100,001 and above will be procured through national competitive bidding (NCB). NCB will be conducted in accordance with the PRC Tendering and Bidding Law (2000), subject to modifications agreed with ADB. Contracts for goods and works estimated to cost less than the above NCB values will be procured using shopping procedures. The relevant sections of ADB's Anticorruption Policy (1998, as amended from time to time) will be included in all procurement documents and contracts.
For NCB, the first draft English language of the procurement documents (prequalification, bidding documents, and draft contract) should be submitted for ADB's approval regardless of the estimated contract amount. Subsequent procurements are subject to post review. All ICB contracts are subject to prior review and ADB's approval of the procurement documents (bidding and contract) is required.
A procurement plan over the life of the project including the first 18-month procurement contract packages starting from July 2015 has been prepared and agreed with the PMO and the implementing agencies, which indicates procurement method, estimated costs of contracts, threshold and review procedures, goods, works, and consulting service contract packages, and NCB guidelines.
|Responsible ADB Officer||Radstake, Frank|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||Environment, Natural Resources & Agriculture Division, EARD|
Shandong Provincial Government
People's Republic of China
|Concept Clearance||09 Aug 2013|
|Fact Finding||05 Feb 2015 to 13 Feb 2015|
|MRM||28 Jul 2015|
|Approval||29 Jun 2016|
|Last Review Mission||-|
|Last PDS Update||13 Sep 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|29 Jun 2016||13 Sep 2016||10 Jan 2017||30 Jun 2022||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||344.03||Cumulative Contract Awards|
|ADB||150.00||29 Jun 2016||57.99||0.00||39%|
|Cofinancing||0.00||29 Jun 2016||0.11||0.00||0%|
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.
|Title||Document Type||Document Date|
|Project Agreement for Loan 3400-PRC: Shandong Groundwater Protection Project||Project/Program Agreements||Sep 2016|
|Loan Agreement (Ordinary Operations) for Loan 3400-PRC: Shandong Groundwater Protection Project||Loan Agreement (Ordinary Resources)||Sep 2016|
|Shandong Groundwater Protection Project: Report and Recommendation of the President||Reports and Recommendations of the President||Jun 2016|
|Shandong Groundwater Protection Project: Project Administration Manual||Project/Program Administration Manual||Jun 2016|
|Shandong Groundwater Protection Project: Procurement Plan||Procurement Plans||Apr 2016|
|山东省地下水漏斗区域综合治理项目 : 项目数据表||Translated PDS||May 2015|
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.
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.
Requests for information may also be directed to the InfoUnit.
ADB Makes First Major Investment To Protect Groundwater In PRCADB has approved a $150 million loan that marks its first ever investment targeted specifically at protecting strained groundwater resources in the People’s Republic of China (PRC).