The second tranche of the multitranche financing facility (MFF) will cover major investments of the MFF, including investments in border-connectivity and border economic zones (BEZ). In line with the framework financing agreement, those investments strongly support Guangxi Zhuang Autonomous Region's (GZAR) Strategy and Action Plan for participation in the Greater Mekong Subregion (GMS) Program, aiming to deepen economic cooperation and integration with ASEAN member countries.
|Project Name||Guangxi Regional Cooperation and Integration Promotion Investment Program - Tranche 2|
|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
Private sector development
|Sector / Subsector||
Finance / Small and medium enterprise finance and leasing
Industry and trade / Industry and trade sector development
Transport / Road transport (non-urban) - Urban public transport
|Gender Equity and Mainstreaming||Some gender elements|
|Description||The second tranche of the multitranche financing facility (MFF) will cover major investments of the MFF, including investments in border-connectivity and border economic zones (BEZ). In line with the framework financing agreement, those investments strongly support Guangxi Zhuang Autonomous Region's (GZAR) Strategy and Action Plan for participation in the Greater Mekong Subregion (GMS) Program, aiming to deepen economic cooperation and integration with ASEAN member countries.|
|Project Rationale and Linkage to Country/Regional Strategy||The MFF purpose is to help the Guangxi Zhuang Autonomous Region (GZAR) implement its strategies and action plans for regional cooperation and integration (RCI) with countries of the Association of Southeast Asian Nations (ASEAN), focusing on developing the North-South Economic Corridor (NSEC) under the GMS Cooperation Program. Tranche 2 will cover major investments of the MFF, including investments in cross border-connectivity and BEZs.|
Economic growth potential for border areas in the PRC and Viet Nam realized.
Efficient transport and trade operations along GMS North South Economic Corridor achieved.
Economic integration between GZAR and rest of the GMS further strengthened.
|Description of Outcome||Benefits of regional cooperation and integration in border areas of Guangxi and northern Viet Nam captured.|
|Progress Toward Outcome||Inception mission conducted on 21-28 January 2019( AM attached)|
|Description of Project Outputs||
Development of small and medium-sized enterprises (SME) enhanced
Cross-border e-commerce platforms developed
Key infrastructure and services in BEZs provided
Physical and people-connectivity for regional cooperation and integration (RCI) improved.
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||Potential impacts of tranche 2 of the program are classified as B for environment. A consolidated initial environmental examination (IEE) and Environmental Management Plan (EMP) have been prepared based on information provided in the domestic environmental impact reports (EIRs) and environment impact tables (EITs), feasibility reports and site reconnaissance. The EIRs and EITs for all subprojects have been approved by the local Environmental Protection Bureaus. The IEE has been disclosed.|
Potential impacts of tranche 2 of the program are classified as B for involuntary resettlement. The key impacts of the subprojects will arise from permanent land acquisition of cultivated land and temporary disturbances to affected peoples' livelihoods.
Four subprojects will not acquire land from individuals and households, as they will be constructed on state-owned land which was acquired before the program was planned or was recently reclaimed from the sea. The remaining 3 subprojects of tranche 2 will acquire 114.8 ha (1722.35 mu) of rural collective land or state-owned farmland; and will demolish rural residential and non-residential houses of 26,890.3 sqm area. About 4,946 persons in 1,680 households will be affected by land acquisition and resettlement. However, losses of income and livelihood sources of affected persons and households are not significant because the majority of them lost small portions of their land to subprojects. Moreover, most of them have easy access to non-agricultural employment and cross-border trade facilities.
Meaningful consultations were conducted during the project preparation phase and will continue during the implementation phase. A grievance redress mechanism has been agreed with the affected persons and subproject entities to be established during project implementation. Public information booklets will be distributed to all APs before project implementation. Resettlement plans (RPs) and resettlement due diligence reports (DDRs) on land that has already been acquired were formulated in accordance with the RP, which reflects the PRC's regulatory framework and regulations and involuntary resettlement safeguard policy requirements of ADB. Draft RPs have been uploaded on the ADB website. Any revisions to the draft RPs, updated RPs based on detailed measurement survey and/or detailed engineering designs, will be submitted to ADB for approval before the award of civil works contracts and uploaded prior to implementation. The Project Management Office will conduct internal monitoring and submit quarterly progress reports for ADB's review. An external monitoring agency will be recruited to conduct an independent review of the subproject implementation. The agency will submit semi-annual reports for ADB's review.
|Indigenous Peoples||The impacts of the subprojects of tranche 2 on ethnic minorities are minimal, and are categorized as C. Han and Zhuang are the overwhelming majority of the population in the PRC. Han is the dominant ethnic community with 98% of the population. Zhuang is the second largest ethnic group in the PRC. Both ethnic groups are present in several subproject areas. Another ethnic minority community in the subproject areas is Jing ethnic minority group. It comprises mostly of Vietnamese migrant workers whose family and property ties are with Viet Nam. Most of them arrived in the subproject areas as married-in or moved-in persons. They are well integrated into Han or Zhuang ethnic communities. No ethnic group holds any land as its ancestral or sacred land in the subproject areas. Zhuangs are not to be treated as Indigenous Peoples per the SPS. Han, Zhuang and other ethnic peoples coexist without distinguishing themselves on ethnic identities or land and employment issues. The subprojects will benefit local populations regardless of their ethnic identities and vulnerabilities.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||
Participatory approaches to development planning, land acquisition and resettlement planning, and income restoration and improvement planning have been followed and will be continued through the project implementation. Public consultations with the affected persons (APs), formal and informal discussions with relevant governmental agencies such as the Poverty Alleviation Offices, Public Security Bureau, Women's Federation, Ethnic and Religious Affairs Bureau, village committees and the IAs helped in identifying positive benefits and adverse impacts of subprojects. Grievance redress mechanisms at the subproject level will bring transparency and accountability to development interventions.
Further, farmer cooperatives, retired overseas workers' association, and community level organizations actively participated in project planning. They will also help the project management office and IAs to monitor land acquisition and resettlement program implementation.
Focal group discussions, consultations, and AP interviews indicate that women were supportive of the project components. Poverty, social and gender analysis indicated that the project will benefit women and other social groups equally through improved cross-border trade, provided trainings and created job opportunities.
|During Project Implementation|
|Responsible ADB Officer||An, Bo|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||Public Mgt, Financial Sector and Regional Coop Division, EARD|
Government of Guangxi Zhuang Autonomous Region, through Guangxi Foreign Loans Project Management Office
18th Floor, Guangxi Development Plaza
East Building, No. 111-1 Minzu_Avenue
|MRM||19 Jul 2017|
|Approval||04 Apr 2018|
|Last Review Mission||-|
|Last PDS Update||28 Mar 2019|
|Approval||Signing Date||Effectivity Date||Closing|
|04 Apr 2018||01 Aug 2018||14 Nov 2018||30 Nov 2023||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||440.00||Cumulative Contract Awards|
|ADB||180.00||04 Apr 2018||0.00||0.00||0%|
|Cofinancing||0.00||04 Apr 2018||0.18||0.00||1%|
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|Tender Title||Type||Status||Posting Date||Deadline|
|Loan 3652-PRC: Guangxi Regional Cooperation and Integration Promotion Investment Program (Tranche 2) [GC-C1]||Invitation for Bids||Closed||22 Feb 2019||22 Mar 2019|
No contracts awarded for this project were found
|Title||Document Type||Document Date|
|Guangxi Regional Cooperation and Integration Promotion Investment Program (Tranche 2): Procurement Plan||Procurement Plans||Jan 2018|