fbpx 50164-001: Integrated Wastewater Management Project | Asian Development Bank

China, People's Republic of: Integrated Wastewater Management Project

Nonsovereign (Private) Project | 50164-001 Status: Approved

Restoring the health of river and lake ecosystems and improving resilience to water-related disasters are increasingly important priorities of the Government. According to the Ministry of Environmental Protection, 28% of the available surface water of the country's seven major rivers and 31% of the water of key lakes and reservoirs are unfit for human consumption. Once polluted to this degree, traditional pollution mitigation measures, such as standalone wastewater treatment facilities, are usually insufficient to recovery a water ecosystem. In response, an increasing number of local governments are adopting a more comprehensive approach, whereby they engage engaging private operators to mitigate pollution and restore the health of river and lake ecosystems through multiple, interlocking subprojects tendered under a single basin-wide concession.

Project Details

Project Officer
Hoshi, Hayato Private Sector Operations Department Request for information
Country
  • China, People's Republic of
Sector
  • Water and other urban infrastructure and services
 
Project Name Integrated Wastewater Management Project
Project Number 50164-001
Borrower/Company China Water Environment Group Investment Limited
China Water Environment Group Limited
Xinkai Water Environment Investment Limited
Country China, People's Republic of
Location Chongqing, Gansu, Guangxi, Guizhou, Henan, Hubei, Hunan, Ningxia, Qinghai, Shaanxi, Sichuan, Xinjiang, Yunnan
Type or Modality of Assistance
3463 Loan Ordinary capital resources USD 150.00 million Approved
79 B-Loan Other USD 350.00 million Approved
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Water-based natural resources management

Water and other urban infrastructure and services / Urban sewerage

Gender Equity and Mainstreaming No gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 2
Responsible ADB Officer Hoshi, Hayato
Project Sponsor(s) China Water Environment Group Limited
Description

Restoring the health of river and lake ecosystems and improving resilience to water-related disasters are increasingly important priorities of the Government. According to the Ministry of Environmental Protection, 28% of the available surface water of the country's seven major rivers and 31% of the water of key lakes and reservoirs are unfit for human consumption. Once polluted to this degree, traditional pollution mitigation measures, such as standalone wastewater treatment facilities, are usually insufficient to recovery a water ecosystem. In response, an increasing number of local governments are adopting a more comprehensive approach, whereby they engage engaging private operators to mitigate pollution and restore the health of river and lake ecosystems through multiple, interlocking subprojects tendered under a single basin-wide concession.

The project will support the implementation of integrated wastewater management concessions targeting environmental services for rivers and lakes. The ADB loan will support CWE in designing, constructing, and operating a series of facilities spanning several components, including (i) wastewater treatment plants; (ii) sludge treatment plants; (iii) sewage conveyance and interception pipelines; (iv) other civil works, such as the dredging of rivers and lakes, riverbank reinforcements, odor treatment, and landscaping; and (vi) the development of wetlands.

Objectives and Scope The project will contribute to mitigation of water pollution in rivers and lakes in the PRC, which will be accomplished through expanded wastewater management services under integrated concessions in selected central and western provinces. CWE will select subprojects located in urban sections of key rivers and lakes designated as government priority areas for environmental protection. For each subproject, CWE will develop and operate facilities as PPPs governed under concession agreements signed with city or county governments.
Status of Operation/Construction The ADB A-loan funded projects, ie Guiyang Nanming River Project and Dali Erhai Lake Project are operational.
Linkage to Country/Regional Strategy

By supporting a new form of PPP, environment management, and inclusive growth, the project addresses three of the five strategic priorities of ADB's country partnership strategy for the PRC: managing climate change and the environment, supporting inclusive economic growth, and supporting institutional and governance reform. In particular, the project aligns with this strategy's sector focus on environmental protection, and strongly complements ADB's initiatives in the management of water-based natural resources, including flood management, wetland conservation, water resources development, and the protection of biodiversity and ecosystems.

The project aligns with ADB's water policy aims to reverse the degradation of water resources caused by agricultural, industrial, and municipal effluents. ADB's Water Operational Plan, 2011-2020 also identifies wastewater management as a key operational focus in rapidly industrializing countries like the PRC. The project is an example of the type of intervention envisaged by the plan, which promotes water as a core investment area and raises ADB's water investment target to $2.0 billion-$2.5 billion each year by 2020, with an additional $500 million per year targeted in private sector lending.

Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Each subproject's potential environmental impacts during civil construction works include the generation of dust, air emissions, noise, wastes, soil erosion, and water pollution which are expected to be short-term and localized. The key construction risk related to dredging and embankment include potential loss and/or damage the channel habitat. During the operations phase, key environmental impacts could include (i) noise impacts due to plant operations; (ii) water quality impacts due to poor effluent quality; (iii) odor and health risks due to poor sludge management; and (iv) health and safety risks due to the buildup of gases, particularly in underground wastewater treatment facilities. Potential environmental impacts associated with construction and operation can be mitigated by following international engineering best practices and implementing an appropriate environmental management plan. Initial environmental examinations will be prepared for ADB-funded subprojects in accordance with ADB's SPS. Prior to the first disbursement, CWE will update its environmental and social management system (ESMS) satisfactory to ADB, which will include screening procedures to avoid subprojects with the potential to be classified as category A for environment, involuntary resettlement, and indigenous peoples.
Involuntary Resettlement An audit of company operations found that land required for existing projects had been acquired in accordance with local laws and to a standard consistent with ADB's SPS. New facilities are expected to be constructed in sparsely populated suburban areas classified as development zones or reserved land. This will reduce the impacts on local populations from the acquisition of land and rights-of-way. If the reserved state-owned land is insufficient for future subprojects, collective land will be acquired. Underground pipelines are laid along roads and rivers, which induce temporary land occupation impacts only. CWE will work with government agencies to ensure that subprojects avoid or minimize the need for residential or arable land, but, where displacement impacts are unavoidable, CWE will put in place action plans commensurate with impacts, in accordance with ADB's SPS requirements. CWE will comply with national labor laws and, pursuant to ADB's Social Protection Strategy (2001), will take measures to comply with the internationally recognized core labor standards.
Indigenous Peoples No subproject impacts on distinct and vulnerable ethnic minority groups were detected in past subprojects, and none are expected from future subprojects.
Stakeholder Communication, Participation, and Consultation Information disclosure and consultation with affected people will be conducted in accordance with ADB requirements.
Timetable for assistance design, processing and implementation
Concept Clearance 27 May 2016
Credit Committee Meeting 10 Oct 2016
Approval 18 Nov 2016
Last PDS Update 06 Dec 2019

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.

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Evaluation Documents See also: Independent Evaluation

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