fbpx 49021-001: Heilongjiang Coal-Rich Cities Redevelopment Project | Asian Development Bank

China, People's Republic of: Heilongjiang Coal-Rich Cities Redevelopment Project

Sovereign (Public) Project | 49021-001 Status: Closed

The project will continue ADB''s long-term partnership with Heilongjiang Provincial Government and take a strategic, holistic, and long-term approach to further develop and implement the Transformation Development Plan of Coal Cities in Heilongjiang (2014 -2020), establishing a non-coal economic base, i.e., green food, pharmaceutical, renewable energy, and high-tech industries. The project will also contribute to the Songhua River Basin Water Pollution Control and Management Project by river rehabilitation and wastewater treatment along tributaries to the Songhua River.

The indicative project impacts are revitalized economy of East Heilongjiang subregion with non-coal industries in the cities of Hegang, Jixi, Qitaihe, and Shuangyashan; improved East

Project Details

Project Officer
Rau, Stefan East Asia Department Request for information
Country
  • China, People's Republic of
Modality
  • Technical Assistance
Sector
  • Multisector
 
Project Name Heilongjiang Coal-Rich Cities Redevelopment Project
Project Number 49021-001
Country China, People's Republic of
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8992-PRC: Heilongjiang Coal-Rich Cities Redevelopment Project
Technical Assistance Special Fund US$ 800,000.00
TA 8992-PRC: Heilongjiang Coal-Rich Cities Re-Development
Urban Environmental Infrastructure Fund under the Urban Financing Partnership Facility US$ 300,000.00
TA 8992-PRC: Heilongjiang Coal-Rich Cities Redevelopment Project (Supplementary)
Financial Sector Development Partnership Special Fund US$ 225,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Multisector / ADB's corporate management, policy and strategy development

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The project will continue ADB''s long-term partnership with Heilongjiang Provincial Government and take a strategic, holistic, and long-term approach to further develop and implement the Transformation Development Plan of Coal Cities in Heilongjiang (2014 -2020), establishing a non-coal economic base, i.e., green food, pharmaceutical, renewable energy, and high-tech industries. The project will also contribute to the Songhua River Basin Water Pollution Control and Management Project by river rehabilitation and wastewater treatment along tributaries to the Songhua River.

The indicative project impacts are revitalized economy of East Heilongjiang subregion with non-coal industries in the cities of Hegang, Jixi, Qitaihe, and Shuangyashan; improved East

Heilongjiang smart city cluster cooperation; and improved living environment, safety, and public health in the cities of Hegang, Jixi, Qitaihe, and Shuangyashan. The indicative project outcome is improved enabling environment for non-coal economic and industrial transformation.

The project is expected to have four outputs: (i) key infrastructure and systems facilitating non-coal industrial transformation in the project cities improved; (ii) remediation and environmental cleanup of impacts from coal mining in the project cities improved; (iii) integrated basic urban infrastructure and services in the project cities improved; and (iv) capacity in project cities developed in areas of (a) economic diagnostic study and strategy, non-coal industry development planning, and smart city cluster cooperation; (b) prioritized investment program preparation; (c) project planning and management; (d) mining remediation management and environment cleanup; (e) labor force assessment and planning; and (f) infrastructure and services delivered through public-private partnerships.

Project Rationale and Linkage to Country/Regional Strategy

The cities of Hegang, Jixi, Qitaihe, and Shuangyashan (project cities) are located in the east of Heilongjiang Province in the northeast of the People's Republic of China (PRC), bordering the Russian Federation to the east and to the north. The total combined population is 5.4 million with urban populations of 870,000 (Hegang); 1,180,000 (Jixi); 540,000 (Qitaihe); and 960,000 (Shuangyashan). The East Heilongjiang subregion and the four project cities have been an important coal base and electricity production hub delivering a cumulative total of more than 3.2 billion tons of coal to the country's economy. However, Heilongjiang and the project cities face serious economic decline and population loss due to severe price cuts of coal and changes in the PRC's energy and climate policy, with reduced revenues in these coal mining dependent economies. Urban poverty has become serious with declining wages combined with poor and unsanitary living conditions due to lack of proper urban infrastructure and services.

The project cities suffer from pollution of soil, water, and air caused by coal mining over the last 60 years. Risks to safety, health, and environment from mining impacts include (i)

geohazard risk of subsidence from below-grade mining; (ii) waste rock dumpsites that wash out toxic heavy metals into soil, and ground and surface water; and (iii) carcinogenic dust particles that pollute the air. Substantial funding for monitoring of contamination levels and various physical remediation measures is needed. Many rivers are polluted with sediments from mining, industries, and households that discharge untreated wastewater, and from chemical fertilizers and pesticides used in agriculture. Some rivers overflow and cause floods during heavy storms and snow melt in the spring. The combination of inadequate infrastructure and environmental pollution compromise urban livability and pose serious risks to human safety and health.

There is an urgent need to revitalize and transform the economy towards a sustainable non-coal future through (i) strategic planning for non-coal industries and key investments that

facilitate private investments in non-coal jobs; (ii) environmental cleanup and remediation of impacts from mining (not supporting mining itself); (iii) urban infrastructure, services, and

environmental improvement that help attract and retain modern companies and qualified workers; and (iv) capacity development to plan and implement a strengthened subregion as

smart, inclusive, competitive, and green East Heilongjiang Smart City Cluster with educated and skilled workers. Without the project, the economy will continue to decline, environmental safety and living conditions will worsen, and chances for improvements and investments will dwindle.

Through its strategic and holistic approach, the proposed project will support the (i) PRC's National New-Type Urbanization Plan (2014 2020), (ii) 13th five-year plans of Heilongjiang and project cities, (iii) Heilongjiang Provincial Government Master Plan for Economic Development (2014 -2020), and (iv) urban and economic development master plans of the project cities. The proposed project is included as a standby for 2017 in the country operations business plan of the Asian Development Bank for the People's Republic of China and is aligned with (i) Strategy 2020 Midterm Review; (ii) upcoming country partnership strategy for the PRC, 2016 -2020, supporting socially inclusive, environmentally sustainable, and economically

competitive development; and (iii) urban, water, and environment operational plans/directions.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Hegang Shi
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design A social survey and consultation meetings were conducted during the PPTA identifying views and concerns of beneficiaries and affected persons, especially vulnerable groups, informing the project design and developing measures for effective implementation of the project. City governments, local communities, and involved stakeholders were consulted and effective mechanisms were discussed to improve SME capacity development support, mining remediation assessment and investment planning, engineering design and implementation support, flood risk management, water supply and wastewater management, and district heating service delivery process. Willingness to pay surveys, accessibility and affordability of tariffs for water, wastewater, district heating have been assessed, and awareness raising campaigns were carried out during the PPTA. Documents prepared during the PPTA include environmental management plan, gender action plan, resettlement plans, and social and gender action plan that outline the program for consultation and participation of beneficiaries for actions during the implementation of the project. Loan assurances and consulting services address implementation and monitoring of these plans.
During Project Implementation The project name was changed to "Heilongjiang Green Urban and Economic Revitalization Project" to acknowledge the aspect of diversification and SME development support while also cleaning up the environment from mining impact and investing in urban infrastructure and services, benefitting all residents of the four project cities. The city governments. financial intermediaries and guarantee companies involved were consulted during early stages of implementation on implementation details of the financial intermediary component. Two contracts were The beneficiaries, affected persons and communities in project locations will be further consulted during project implementation through surveys, stakeholder workshops, focus group discussions, and key informant interviews. Awareness raising campaigns will be carried out and preferences to employ local people during construction and operation have been included in the design. The financial intermediation component and the business development services subcomponent are designed to promote non-coal inclusive business, and gender balance of the support provided.
Business Opportunities
Consulting Services The PPTA is being implemented in two phases. In accordance with ADB''s Guidelines on the Use of Consultants (2013, as amended from time to time), consulting firms were engaged through quality- and cost-based selection method, with a quality-cost ratio of 90:10 using simplified technical proposal procedure; and specialized individual consultants were engaged following individual consultant selection method. Proceeds will be disbursed in line with ADB''s Technical Assistance Disbursement Handbook (2010, as amended from time to time). A climate risk and vulnerability assessment was carried out simultaneously and in strong coordination with the PPTA. An additional SME development component was included as part of the ensuing loan, with a dedicated SME financing facility to be established using the financial intermediation loan modality, financed from the ADB portion of the loan. This additional component required the services of individual consultants with expertise on financial management and small- and medium-sized enterprises.
Responsible ADB Officer Rau, Stefan
Responsible ADB Department East Asia Department
Responsible ADB Division Urban and Social Sectors Division, EARD
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 16 Nov 2015
Last Review Mission -
Last PDS Update 21 Mar 2018

TA 8992-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
16 Nov 2015 15 Dec 2015 15 Dec 2015 15 Jul 2017 31 Mar 2018 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,025,000.00 300,000.00 0.00 0.00 0.00 0.00 1,325,000.00 16 Nov 2015 1,206,561.85

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 Access to Information Policy (AIP) 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.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Access to Information Policy (AIP) 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.

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$) Contract Amount Financed by ADB (US$)
Project Preparatory Technical Assistance 8992 27 May 2016 Aecom Asia Company Limited, Hong Kong (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 Heilongjiang Provincial Government 796,364.00
Project Preparatory Technical Assistance 8992 13 May 2016 Enright, Scott and Associates Limited (Hong Kong, China) Suite 1102, Kai Tak Commercial Building 317-319 Des Voeux Road Central Hong Kong Heilongjiang Provincial Government 197,585.00

Procurement Plan

None currently available.