48105-001: Construction and Demolition Waste Management and Recycling | Asian Development Bank

China, People's Republic of: Construction and Demolition Waste Management and Recycling

Sovereign (Public) Project | 48105-001 Status: Closed

The TA aims to enhance the PRC''s policies and practices related to the management and recycling of construction and demolition waste (CDW). The impact of the TA will be improved CDW management policies and practices in the PRC; and the outcome will be an agreed set of policy recommendations to regulate CDW management and promote CDW recycling. The TA will have four major outputs to contribute toward the achievement of the outcome and impact: (i) an assessment report on CDW management in the PRC, (ii) a review of international good practice in CDW management and recycling, (iii) policy lessons and recommendations, and (iv) a TA synthesis report.

Project Details

Project Officer
Li Ning East Asia Department Request for information
Country
  • China, People's Republic of
Modality
  • Technical Assistance
Sector
  • Water and other urban infrastructure and services
 
Project Name Construction and Demolition Waste Management and Recycling
Project Number 48105-001
Country China, People's Republic of
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8906-PRC: Construction and Demolition Waste Management and Recycling
Technical Assistance Special Fund US$ 400,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Knowledge solutions
Sector / Subsector

Water and other urban infrastructure and services / Urban hazardous waste management - Urban solid waste management

Gender Equity and Mainstreaming No gender elements
Description The TA aims to enhance the PRC''s policies and practices related to the management and recycling of construction and demolition waste (CDW). The impact of the TA will be improved CDW management policies and practices in the PRC; and the outcome will be an agreed set of policy recommendations to regulate CDW management and promote CDW recycling. The TA will have four major outputs to contribute toward the achievement of the outcome and impact: (i) an assessment report on CDW management in the PRC, (ii) a review of international good practice in CDW management and recycling, (iii) policy lessons and recommendations, and (iv) a TA synthesis report.
Project Rationale and Linkage to Country/Regional Strategy

The continuous economic growth of the PRC since the start of its economic reforms in 1978 has been accompanied by rapid urbanization. Increased urbanization will remain an essential pillar supporting future growth and development in the PRC, but it also poses a variety of environmental challenges. One of the problems is the large quantities of CDW being generated as a by-product of the construction boom. The Ministry of Housing and Urban Rural Development (MOHURD, formerly known as the Ministry of Construction) estimates that about 350 million tons of CDW is generated in the PRC per year, or 10 times the amount of domestic solid waste. CDW quantities are projected to increase significantly over the next 2 decades with the lifetime of buildings expiring. Most of this waste is delivered unsegregated (i.e., mixed with other waste streams) to suburban or rural areas for disposal in open storage or landfill. This practice, often illegal, incurs high transportation costs, occupies valuable land, reduces recycling potential and wastes natural resources, and represents an environment concern.

While CDW is unavoidable and zero waste is not practical, it should be managed following the internationally accepted waste management method hierarchy comprising four strategies: waste reduction, reuse, recycling, and disposal. The CDW reduction performance of construction contractors in the PRC is still poor, as it is mainly driven by short-sighted economic and practical considerations rather than environmental and resource efficiency concerns. A small-scale private sector business is thriving for the direct reuse of valuable construction materials such as copper, aluminum, reinforcing steel, wood, and others. Market potential for CDW recycling in the PRC is significant; in residential real estate alone, the PRC is building about 1.8 billion square meters per year, or more than one-third of all the buildings in the world, producing and consuming 55% of the cement globally, and consuming 45% of the national energy in doing so. Forecasts for the short to midterm future remain positive, with construction exceeding 5.2% of gross domestic product. CDW recycling may prove to be a significant opportunity to reduce greenhouse gas emissions in the construction sector. The emission reduction benefit of using recycled concrete, for example, results from the avoided emissions associated with mining and processing aggregate that recycled concrete is substituting. Greenhouse gas savings for using recycled concrete in place of virgin aggregate (crushed stone, gravel, and sand) is estimated at 0.01 -0.03 metric tons of carbon dioxide equivalent per ton. Figures are similar for asphalt, and significantly higher for metals such as aluminum.

National and municipal governments around the world are enacting legislation that encourages recycling of CDW. In Europe, the Waste Framework Directive has been revised by the European Union to include a requirement that 70% of each member state's CDW be reused or recycled by 2020. Countries such as Denmark, Germany, Ireland, the Netherlands, and the United Kingdom have already surpassed the 70% benchmark. Asian economies that have achieved very high CDW recycling rates include Hong Kong, China; Japan; Singapore; and Taipei,China.

Experience from these economies suggests that while much of CDW is recycled for purely economic reasons, avoidance of landfill disposal of materials such as concrete, wood, gypsum drywall, and asphalt shingles has benefits well beyond financial ones. Avoidance of landfilling also provides for a greater degree of environmental protection, a smarter use of natural resources, energy savings, and a net decrease in greenhouse gas emissions.

For a stable and competitive CDW recycling market to be established, experience shows that various instruments must be established, including (i) technical regulations (i.e., guaranteeing steady supply of CDW of high quality through establishment of standards and norms for deconstruction works and CDW products); (ii) waste treatment regulations controlling or banning CDW landfilling, creation of mono landfill for CDW as reservoirs for future recovery of inert materials, and enforcement of regulations related to illegal dumping; and (iii) market-based instruments enabling the creation of a robust CDW recycling market that can withstand various risks in the waste market (such as a tax on landfills or raw construction materials, a subsidy for recycling center establishment and operation, or tax incentives for the utilization of recycled materials). Advanced concepts that promote the polluter pays principle have been successfully introduced in the construction industry of some of these economies, including extended producer responsibility or stewardship programs, which encourage construction material manufacturers to redesign products and systems to reduce wastage, facilitate recovery and recyclability after usage, and ensure compatibility with post-recovery applications.

The government has demonstrated continuous commitment to tackling the problem of CDW management and promoting a circular economy and resource efficiency. In 2006, MOHURD issued the Regulations on Management of Urban Construction Waste to standardize the methods for handling construction wastes. Technical regulations for CDW management and recycling followed, mainly through the Ministry of Science and Technology, including standards and norms for recycled materials and treatment regulations (i.e., landfill ban for unsorted CDW). CDW recycling targets are also (implicitly) defined in the Twelfth Five-Year Plan for the Building Material Industry, which established strict goals for emission reduction, requiring construction and building materials producers to cut their annual energy consumption and carbon dioxide emissions per unit of industrial value added by 18% 20% during the 5-year period.

Despite its great potential and the government's effort to promote it, CDW recycling rates do not exceed 5% 10%. Actual demand for recycled materials is relatively low in the absence of incentives to buy recycled materials (as compared to natural aggregates), and concerns over the quality assurance of recycled materials. CDW recycling centers have been established in several cities in the PRC, but these often struggle to make a profit. The low quality of raw CDW (resulting from the absence of clear technical regulations on CDW segregation at source), low costs of natural aggregates, low CDW disposal fees (often fully subsidized) at municipal solid waste and CDW landfills, and illegal CDW disposal are understood to be key limitations to the promotion of CDW recycling in the PRC.

The TA is a timely response to the government's request for ADB assistance to identify suitable policies and mechanisms to regulate CDW management and promote CDW recycling in the PRC. The TA is closely aligned with ADB's strategic priorities of the Midterm Review of Strategy 2020 and the strategic pillar of environmentally sustainable growth in the country partnership strategy, 2011 2015 for the PRC. By supporting the PRC's efforts to promote resource conservation, emission reduction, and environmental protection, this TA is fully aligned with ADB's Environment Operational Directions, 2013 2020, and the Urban Operational Plan, 2012 2020. The TA is also consistent with the priorities of the government's Twelfth Five-Year Plan, 2011 2015; the PRC's emphasis on the realization of ecological civilization and commitment to curb costs associated with resource depletion and environmental damage (as announced at the Third Plenum); and the recently proclaimed concept of _greenization_ of production, economy, and lifestyle.

Impact The impact will be improved CDW management policies and practices in the PRC.
Project Outcome
Description of Outcome Agreed set of policy recommendations to regulate CDW management and promote CDW recycling.
Progress Toward Outcome The TA was approved on 9 Jun 2015 and became effective on 10 July 2015. A consulting firm to implement the project was engaged and mobilized on 18 Sep 2015. An inception mission was fielded in December 2015. The midterm review mission was fielded in May 2016. The final TA workshop was conducted on 8 Nov 2016. The final TA report was submitted to ADB in December 2016.
Implementation Progress
Description of Project Outputs

Assessment report on CDW management in the PRC.

A review of international good practice in CDW management and recycling.

Policy lessons and recommendations for the regulation of CDW management and the promotion of CDW recycling.

TA synthesis report.

Status of Implementation Progress (Outputs, Activities, and Issues)

The TA inception report was submitted in Dec 2015;

The TA interim report was submitted in May 2016; Oversea study tour was completed in May 2016.

The final TA workshop was conducted on 8 Nov 2016. TA Final Report was submitted to ADB in December 2016.

Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The TA has been conceptualized in close cooperation with MOHURD. Consultations were held with national experts from National Committee of Construction Waste Management and Recycling, China Association of Urban Environmental Sanitation, and the Environmental Sanitation Research Center.
During Project Implementation Policy dialogue will be maintained with the government and project-specific issues will be taken up with government counterparts during review missions. Good practices and lessons learned from this TA will be actively disseminated through TA output 4, specifically designed for that purpose. Initial findings of the TA will be presented to national policy makers, relevant industry associations, and academia to obtain feedback on the key findings of the analysis of PRC and international policies and instruments related to CDW management. Draft policy recommendations to regulate CDW management and instruments to promote CDW recycling will be discussed at a final TA workshop. Major findings and lessons learnt from the TA will be published in at least one TA synthesis report, targeting municipal authorities in the PRC as well as developing member countries of ADB.
Business Opportunities
Consulting Services The TA will require consulting services with substantial expertise in waste management policy design and evaluation, CDW management and recycling, and construction materials engineering, for a total of 22 person-months (5 international and 17 national).
Procurement The consultants will be engaged through a firm according to ADB's Guidelines on the Use of Consultants (2013, as amended from time to time) using quality- and cost-based selection criteria (with a quality cost weighing rate of 90:10) and simplified technical proposal procedures. The consulting services under the TA will be engaged on output-based (lump-sum) contracts. The TA will cover remuneration, travel, and per diem of consultants, as well as the costs of workshops, seminars, and miscellaneous expenses. The proceeds of the TA will be disbursed in accordance with ADB's Technical Assistance Disbursement Handbook (2010, as amended from time to time). TA disbursement will be handled by ADB. Equipment will be procured by consultants in line with ADB's Procurement Guidelines (2013, as amended from time to time) and turned over to MOHURD upon TA completion.
Responsible ADB Officer Li Ning
Responsible ADB Department East Asia Department
Responsible ADB Division PRC Resident Mission
Executing Agencies
Ministry of Housing and Urban-Rural Development
Mr. LI Zhe
9 San Li He Road, Haidian District Beijing 100835 People's Republic of China
Timetable
Concept Clearance 14 Apr 2015
Fact Finding 14 Apr 2015 to 14 Apr 2015
MRM -
Approval 09 Jun 2015
Last Review Mission -
Last PDS Update 27 Mar 2017

TA 8906-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Jun 2015 10 Jul 2015 10 Jul 2015 30 Sep 2016 30 Nov 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
400,000.00 0.00 0.00 0.00 0.00 0.00 400,000.00 09 Jun 2015 319,939.53

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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.

None currently available.

Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

No tenders for this project were found.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Policy and Advisory Technical Assistance 8906 03 Sep 2015 AECOM Asia Company Limited (Hong Kong, China) in association with AECOM Ltd. (China, People's Republic of) 9/F, Grand Central Plaza, Tower 2, 138 Shatin Rural Committee Rd., Shatin, New Territories, Hong Kong, China Ministry of Housing and Urban-Rural Development 359800

Procurement Plan

None currently available.