The project will address urgent environmental and infrastructure needs associated with municipal solid waste (MSW) management in 10 counties and county-level cities in the Xiangjiang River watershed of Hunan Province. It is a milestone for the Asian Development Bank (ADB) because it will be the first in the PRC to focus solely on MSW management. It will also complement the government's efforts to align MSW services with sustainable development. It will support overall strategies to reduce the discharge of long-term pollutants in the Xiangjiang River watershed and has significant potential for wide replication.
|Project Name||Hunan Xiangjiang River Watershed Existing Solid Waste Comprehensive Treatment 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||Gender Equity and Mainstreaming
Governance and capacity development
|Sector / Subsector||
Agriculture, natural resources and rural development / Rural solid waste management
Water and other urban infrastructure and services / Urban solid waste management
|Gender Equity and Mainstreaming||Some gender elements|
|Description||The project will address urgent environmental and infrastructure needs associated with municipal solid waste (MSW) management in 10 counties and county-level cities in the Xiangjiang River watershed of Hunan Province. It is a milestone for the Asian Development Bank (ADB) because it will be the first in the PRC to focus solely on MSW management. It will also complement the government's efforts to align MSW services with sustainable development. It will support overall strategies to reduce the discharge of long-term pollutants in the Xiangjiang River watershed and has significant potential for wide replication.|
|Project Rationale and Linkage to Country/Regional Strategy||
The Xiangjiang River and its watershed are part of the larger Dongting Lake watershed. Both watersheds are integral elements of the downstream Yangtze River. The Yangtze River Economic Belt (YREB) covers nine provinces and two specially administered cities in the Yangtze River Basin. The Xiangjiang River plays a pivotal role in the water quality of the Yangtze River and in the general maintenance of healthy rivers and waterways. Therefore, the Xiangjiang River is a key water resource in the overall strategic planning for water security in the Yangtze River, and its ecological improvement in turn promotes ecosystem restoration, environmental protection, and water resources management of the YREB and its watersheds. The Xiangjiang River watershed has a total area of about 94,660 square kilometers, with approximately 90% of it located in Hunan and the remaining 10% located in the Guangxi Province. The economic activity and expansion of the human-made surroundings have extensively developed the Xiangjiang River watershed. By 2017, approximately 61% of Hunan's total population, or about 25.1 million people, lived within the watershed. The total gross domestic product for the watershed in 2017 was estimated to be 75% of the overall total gross domestic product of Hunan Province. The rapid economic growth experienced countrywide from the mid-1980s until the present, coupled with inadequate environmental protection, contributes to the deterioration of the environment and the increased pollution in Hunan and the watershed. By 2000, the surface water of the Xiangjiang River, which met class III quality or better, was less than 70% along the entire river system. Based on the PRC drinking water code, water along most reaches of the Xiangjiang River did not meet the standards to be used as a source for raw water. In the period 2000-2017, the government adopted an integrated approach to pollution control to protect water quality in the Xiangjiang River watershed. In 2011, the Hunan Provincial Government (HPG) initiated a major program of environmental pollution control to target the major pollution sources. Subsequent environmental regulations and incremental enforcement in Hunan have reduced the impacts from industrial and agricultural sources, and new wastewater treatment plants have reduced pollution from untreated sewage. However, significant challenges remain regarding MSW. Urbanization has left a legacy of substandard landfill sites that were once in outlying rural areas and are now located close to newly created urban areas. Much of the countryside has been urbanized and has become part of the built environment of the counties and county-level cities. With the expansion of MSW services being limited in these areas, the challenge of managing MSW in a sustainable manner has grown.
Aging landfill sites, which are generally no longer receiving any MSW, are one of the last remaining long-term sources of pollution that have not yet been fully addressed in Hunan. Most of these landfill sites are referred to as substandard MSW landfills, or dumpsites, meaning they were not planned, engineered, constructed, or operated to appropriate standards. They have been left untreated or partially sealed at various locations. They are typically closed in an operational sense. However, they have not been closed and restored in accordance with the best practice for decommissioning. Because they were not closed competently, liquid leachate continues to pollute surface water and groundwater and the waste is also releasing landfill gas. The liquid leachate and waste contribute to long-term pollution of the river system and downstream water quality by raising the biological and chemical oxygen demands, while gross pollution of the soil below the landfills remains unchecked. Without any form of managed closure, they will continue to generate leachate. The landfills pose risks to the health and well-being of people living near them and are a safety risk to anyone accessing them. Efficient MSW management, which promotes reduction (by waste minimization), reuse (of waste materials), recycling, and recovery, is gaining ground in the PRC. However, the management and disposal of MSW generated in rural areas is underdeveloped and inadequate. Most waste is randomly dumped onto open areas without treatment. In some cases, it is burned openly, generating polluting emissions. Randomly dumped MSW allows waste to break down and decompose without the means to prevent leachate from percolating into the groundwater or flowing into surface water bodies; indiscriminately dumped MSW can clog streams and drains. In the PRC, MSW management focuses on urban areas. For vast rural areas, the management of domestic waste is delegated to villagers. In 2016, HPG commenced the implementation of a five-year plan for rural MSW treatment, which targeted the achievement of at least 70% of rural waste being treated by 2020. This builds on rigorous national guidance on controlled treatment and disposal of MSW. In the rural areas of Hunan, there has been some progress despite remaining limited and inconsistent.
The project demonstrates alignment with the operational priorities of ADB Strategy 2030 particularly in terms of environmental sustainability and integrated solutions for livable cities. It closely supports the strategic priorities set out in ADB's country partnership strategy for the PRC, 2016-2020; ADB's Water Operational Plan, 2011-2020, particularly in integrating the management of water resources including pollution control; and ADB's Urban Operational Plan, 2012-2020, particularly in improving environmental sustainability, promoting green and inclusive growth, and enhancing urban-rural links. The project is ADB's first MSW investment in Hunan and the only one in the PRC that focuses entirely on MSW management. The project will adopt lessons learned from over 20 years of ADB experience in national dialogue with the government on MSW policies and practices. This dialogue has contributed to an enabling environment that has facilitated policy, regulatory, and operational improvements. The project supports HPG's approach to urban-rural integrated MSW management, which seeks to address the entire cycle of MSW starting in households with collecting, separating, and recycling; and continuing in counties and cities with transferring and treating the remaining wastes. It covers a large population and various levels of government agencies. The engagement with multiple agencies is designed to drive ownership and build wide-ranging capacity at the lowest administrative level and act as a model project. ADB's presence offers a unique opportunity to deliver numerous projects under one overarching project, wholly focused on MSW, to allow collaboration and comparative assessment. ADB's focused support on a chronically underserved sector allows it to be comprehensively addressed. ADB's engagement assists the government in the last stage of providing MSW services and in addressing overlooked aging landfills. The government and ADB have designed the project collaboratively to have a sharper focus on consistent, effective, and innovative approaches with a high potential for replication, based on the best international and national practices. This enhanced design development broadened the project's scope while adopting more holistic and strategic approaches, leading to improved MSW service outcomes and the adoption of appropriate high-level technologies with large-scale demonstration potential, including (i) practical and environmentally sound approaches to landfill closure and restoration, building on recent codes of practice; (ii) robust operational practices to improve the treatment of leachate from landfills; (iii) the selective adoption and promotion of the reduce, reuse, and recycle principle; (iv) improved operational management with approaches incorporating information and communication technology; and (v) a kitchen waste management system as a large-scale demonstration to appropriately manage this valuable resource. The project has been designed to fit with Hunan's' future development goals and service-level needs and, noting past lessons, it has been designed to build ownership and deliver practical outcomes. It is expected to act as a catalyst for further investment projects in Hunan, and the government is keen to promote cross-country learning.
|Impact||Environment in the Xiangjiang River watershed in Hunan Province improved|
|Description of Outcome||Long-term pollutants discharged to the Xiangjiang River watershed reduced|
|Progress Toward Outcome||1st NCB works and 1st NCB goods contracts were awarded in 2020 and 2021. 3 individual consultants were recruited and mobilized to help EA with start-up preparation.|
|Description of Project Outputs||
Substandard MSW landfills closed
Substandard MSW landfills mined and remediated
New urban rural integrated MSW management systems established
Sanitary landfill facilities upgraded
New kitchen waste treatment and management system established
Capacity for environmentally sustainable MSW management enhanced
|Status of Implementation Progress (Outputs, Activities, and Issues)||Procurement started.Design and BD preparationDesign and BD preparationDesign and BD preparationDesign and BD preparationStart-up consultant recruited|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The project is classified category A for environment. An environmental impact assessment (EIA), including an environmental management plan (EMP), was prepared by the Hunan Provincial Housing and Urban-Rural Development Department (HURD). The EIA incorporated findings of the domestic feasibility study and domestic EIAs, climate risks and vulnerability assessment, biodiversity assessment, site visits, and consultations with stakeholders. The EIA identified potential direct, indirect, cumulative, and induced environmental impacts and risks for preconstruction, construction, and operation phases of the project. The EMP identifies the avoidance of adverse impacts through design and site management and mitigation measures under construction management. The landfill closures and new municipal solid waste systems have been considered in detail, including potential impacts for landfill gas collection and treatment. During the EIA process, HURD conducted an assessment to determine the significance of project impacts and risks on biodiversity and natural resources, and the EMP includes adequate measures to avoid, minimize, or mitigate potential impacts and risks. The climate change assessment identified precipitation and flooding as the most important risks affecting the project, and key recommendations have been incorporated in the EMP.The EMP includes a plan for internal monitoring to be conducted by contractors during construction and by operation and maintenance units during operation. The project management office will recruit an external monitoring entity to evaluate and assess implementation and compliance with the EMP during all stages of the project. Environmental management, and capacity development and institutional strengthening activities are included under the project to mitigate risks. Two rounds of meaningful consultations have been conducted with all relevant stakeholders during project preparation, and the findings have been incorporated in the project design. Any potential environmental complaints or disputes will be handled in accordance with the grievance redress mechanism established for the project. The EIA concluded that the anticipated environmental impacts and risks can be mitigated to acceptable levels by adherence to prescribed training and capacity-building measures and effective implementation of the EMP.|
|Involuntary Resettlement||The project will require the acquisition of about 23.5 hectares of land for the project facilities. Based on the principle of avoiding, if not minimizing, impacts and, in consultation with the communities, only three households will be marginally affected because of the partial loss of their garden and forest lands. The rest of the facilities will be located on common land (wasteland or unallocated arable and forest land) owned by villagers. There will be no impact on houses or structures except for one abandoned village office. There are six resettlement plans that have been prepared in accordance with the People's Republic of China laws and regulations, and the Asian Development Bank's Safeguard Policy Statement. For the existing waste transfer stations, landfill sites, and kitchen waste sites, due diligence has been completed and no outstanding issue was found.|
|Indigenous Peoples||In the project areas, there are 0.64 million ethnic minorities, accounting for 10% of the total ethnic minority population in Hunan. The Miao, Yao, and Zhuang are the main ethnic minority groups that are concentrated in the remote upland areas of Lanshan County under the prefecture of Yongzhou City. There will be no adverse impact on ethnic minorities (i.e., no involuntary resettlements and no impact on ethnic minorities' beliefs, customs, languages, land use, and other properties). The project will improve living conditions and public health since there will be regular municipal solid waste collection services in remote upland areas. An ethnic minority development plan has been prepared to ensure the participation of ethnic minority groups in public consultation as well as in all project implementation stages.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||A key design feature of the project is strengthening public participation and consultation in decision-making, related to project components during the project design stage. The fair and equitable participation and consultation of women during project design will enhance gender impacts. An Ethnic Minority Development Plan was prepared to ensure the participation of the ethnic minority groups in the public consultation phase as well as the project design.|
|During Project Implementation||A key design feature of the project is strengthening public participation and consultation in decision-making, related to project components during project implementation. The fair and equitable participation and consultation of women during project implementation will enhance gender impacts. An Ethnic Minority Development Plan was prepared to ensure the participation of the ethnic minority groups in the public consultation phase as well as the project implementation.|
|Responsible ADB Officer||Zheng, Baochang|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||PRC Resident Mission|
Bureau of Finance, Hunan Province
No. 1 Chengnanxi Road, Changsha,
China, 410015 Hunan Provincial Housing & Urban-Rural Dev't Dept.
Peace Community, Dongjin Rd., Yuhua Dist.
Changsha, Hunan Province 410116
|Concept Clearance||24 Jun 2015|
|Fact Finding||29 Jan 2018 to 09 Feb 2018|
|MRM||31 May 2018|
|Approval||26 Sep 2018|
|Last Review Mission||-|
|Last PDS Update||24 Mar 2021|
|Approval||Signing Date||Effectivity Date||Closing|
|26 Sep 2018||19 Dec 2018||01 Apr 2019||31 Dec 2023||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||258.00||Cumulative Contract Awards|
|ADB||150.00||26 Sep 2018||8.70||0.00||6%|
|Cofinancing||0.00||26 Sep 2018||10.00||0.00||7%|
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ADB Approves First Municipal Solid Waste Management Project in PRCADB's Board of Directors has approved a $150 million loan for a project that will improve municipal solid waste management in 10 counties and county-level cities in the Xiangjiang River watershed in Hunan Province.
|Contract Title||Approval Number||Contract Date||Contractor||Contractor Address||Executing Agency||Contract Description||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|YONGZHOU KITCHEN WASTE TREATMENT FACILITY||Loan 3712||24 Mar 2021||HUNAN SHENGKE CONSTRUCTION ENGINEERING CO.LTD||HUNAN PROVINCE CHINA,PEOPLE'SREP.OF||Hunan Provincial Housing & Urban-Rural Dev't Dep't||CONSTRUCTION||2,947,198.93||2,169,955.04|
|ZHUGEMIAO EXISTING MSW LANDFILL CLOSURE||Loan 3712||16 Mar 2021||BEIJING GEOENVIRON ENGINEERING&TECH, INC.||BEIJING, PRC CHINA,PEOPLE'SREP.OF||Hunan Provincial Housing & Urban-Rural Dev't Dep't||CONSTRUCTION||7,054,038.85||5,183,589.71|
|ZIXING SANITARY LANDFILL UPGRADE EQUIPMENT||Loan 3712||28 Dec 2020||GUANGDONG YADI ENV'L PROTECTION EQUIP. CO.LTD||1-A-1,LUOYONG VILLAGE,WANJIANG AVENUE DONGGUAN CITY, GUANGDONG PROVINCE CHINA,PEOPLE'SREP.OF||Hunan Provincial Housing & Urban-Rural Dev't Dep't||SUPPLY OF GOODS||1,478,607.32||1,110,032.35|
|Title||Document Type||Document Date|
|Hunan Xiangjiang River Watershed Existing Solid Waste Comprehensive Treatment Project: Procurement Plan||Procurement Plans||May 2021|