The proposed Asian Development Bank (ADB) assistance will be the first sovereign public-private partnerships (PPP)-related loan in the PRC that can potentially transform the delivery of social services by local governments. The PPP Demonstration Program (the program) will build capacity for developing, procuring, and managing transparent PPPs and finance a demonstration PPP for socially inclusive, efficient, and quality elderly care services (ECS) in one municipality (Yichang, Hubei). The program will serve as a demonstration for other local governments, and create more opportunities for ADB to finance inclusive and efficient service delivery in the PRC
|Project Name||Public–Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei|
|Country||China, People's Republic of
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
|Sector / Subsector||
Health / Health insurance and subsidized health programs - Health system development
Public sector management / Decentralization
|Gender Equity and Mainstreaming||Some gender elements|
|Description||The proposed Asian Development Bank (ADB) assistance will be the first sovereign public-private partnerships (PPP)-related loan in the PRC that can potentially transform the delivery of social services by local governments. The PPP Demonstration Program (the program) will build capacity for developing, procuring, and managing transparent PPPs and finance a demonstration PPP for socially inclusive, efficient, and quality elderly care services (ECS) in one municipality (Yichang, Hubei). The program will serve as a demonstration for other local governments, and create more opportunities for ADB to finance inclusive and efficient service delivery in the PRC|
|Project Rationale and Linkage to Country/Regional Strategy||
The PRC government seeks a sound mechanism for the provision of integrated, community- and home-based ECS that can be replicated nationwide. The program is aligned to the PRC's 13th Five-Year Plan (2016 2020) which supports strengthening the ECS system in the PRC; and to government policies and priorities for introducing and expanding PPP in public services to bring efficiency, innovation, and quality that is affordable. Recent policy directives issued for the development of the ECS industry recognize the need to improve services and human resources; develop the ECS market; and outline responsibilities for local governments, and private and civil society stakeholders. The program is aligned with ADB's country partnership strategy (2016 2020) pillar on inclusive growth, the Midterm Review of Strategy 2020, the Operational Plan for Health (2015 2020), the PPP Operational Plan (2012 2020), and the Upper Middle Income Country Approach Paper. It also supports the programming priorities included in the Operational Directions for 2016.
The objectives of building local government capacity to apply appropriate laws and developing a demonstration ECS PPP requires the use of government systems within the national regulatory framework for PPPs, while providing incentives through results-based financing to support YMG to implement PPPs for ECS. To systematically build institutional capacity and create the best demonstration practice for application by other local governments, the program will (i) use national systems and PPP frameworks; (ii) focus on results and performance; (iii) take a risk-based approach; and (iv) be accompanied by appropriate capacity building to mitigate risk and ensure results. RBL is the appropriate approach to develop YMG's capacity to design, manage, and implement a true PPP in the ECS sector and to leverage ADB financing to introduce this innovative approach requiring a new way of working for local governments.
ADB's value added is in introducing international expertise and good practice models; supporting an honest dialogue between potential bidders and the local government that ensures transparency and credibility to design a quality PPP project that offers genuine value for money; generates a high level policy dialogue with the government, and translates national PPP policies into an actionable PPP approach. Most importantly, local governments, including Yichang, are currently ill-prepared to take on transformational PPP projects without such external support. ADB's support is timely, will introduce innovation, contribute to knowledge on local level PPPs, and have a high demonstration impact. ADB has already gained credibility with the PRC government for responding to its PPP agenda with an appropriate mix of policy dialogue, sharing of international experience, and proposing an innovative service delivery approach. These efforts have placed ADB as a lead partner in the area of PPP and local government delivery of ECS.
The expected impact of the program is the expansion of socially inclusive high quality ECS using PPPs, which is aligned with:
(i) Three-tiered EC system (home, community, and institutional) established. (Opinions on Promoting the Development of Senior Care Service Industry (PRC State Council Circular No. 35, 2013 and the PRC 13th Five-Year Plan 2016 2020, which has development of elderly care as one of 10 key areas of industrial focus); and
(ii) Local government financing channels, using PPP and other means reformed and diversified (State Council, 2014. Opinions on Innovative Investment Mechanism and Encouraging Social Investment in Key Sectors. Beijing).
|Description of Outcome||Quality ECS delivered by local governments using PPPs|
|Progress Toward Outcome|
|Description of Project Outputs||
Local government capacity to design, procure, manage, and deliver effective services through ECS PPPs developed
A socially inclusive PPP demonstration program for the ECS sector in Yichang successfully implemented
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
All environmental assessments for the selected sites are to follow the domestic Environmental Impact Table procedure and specific requirements documented in the PSSA.
YHIDC will ensure that all construction and rehabilitation activities are undertaken in accordance with the requirements of the detailed actions defined in the ESSA and PSSA. In particular, they will (i) assign qualified personnel to coordinate the implementation of the environmental action plan; (ii) establish and coordinate an inspection, monitoring, and information disclosure mechanism for program environmental safeguards; and set up a locally accessible grievance redress mechanism with access and procedural information disseminated on the YMG website and at construction sites; and (iii) ensure environment safeguard contract clauses are inserted in all construction contracts and provide contractors with copies of the relevant environmental actions as part of the contract details.
|Involuntary Resettlement||The program's involuntary resettlement impacts are confirmed as C. The program will not acquire any land from nor affect income and livelihood sources or access to natural and common property resources and common property from any person or community. In fact, it will provide employment for both skilled and unskilled workers at construction sites, and later at ECS facilities.|
|Indigenous Peoples||The impact of the program on ethnic minorities in Yichang is limited yet positive, as ethnic minority elderly will have equal access to ECS the program provides. Dietary requirements and cultural and recreational activities that cater for ethnic minority needs will be provided. The ADB's indigenous peoples safeguard policy requirements are not triggered, and the impacts on indigenous peoples are confirmed as B.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Being conducted.|
|During Project Implementation||To be conducted.|
|Responsible ADB Officer||McIntyre, Andrew J.|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||PRC Resident Mission|
Yichang Municipal Government
No. 102 Yanjiang Blvd.
Yichang City, Hubei PRC
Post Code : 443000
|Concept Clearance||30 Jun 2016|
|Fact Finding||16 Aug 2016 to 19 Aug 2016|
|MRM||27 Sep 2016|
|Approval||12 Dec 2016|
|Last Review Mission||-|
|Last PDS Update||13 Sep 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|12 Dec 2016||-||-||30 Jun 2023||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||128.40||Cumulative Contract Awards|
|ADB||50.00||12 Dec 2016||0.00||0.00||0%|
|Cofinancing||0.00||12 Dec 2016||0.00||0.00||0%|
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 Public Communications Policy (PCP) 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.
|Title||Document Type||Document Date|
|湖北省宜昌市养老服务供给转型公私合作示范项目 : 项目数据表||Translated PDS||Mar 2017|
|Public-Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei: Report and Recommendation of the President||Reports and Recommendations of the President||Nov 2016|
|Public-Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Jun 2016|
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.
|Title||Document Type||Document Date|
|Public-Private Partnerships Demonstration Program to Transform Local Government Delivery of Elderly Care Services: Program Safeguard Systems Assessment||Program Safeguard Systems Assessments||Sep 2016|
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
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Requests for information may also be directed to the InfoUnit.
ADB Helps Yichang City, PRC, to Deliver Elderly Care Services with Private SectorADB has approved a $50 million loan to pilot delivery of elderly care services through public-private partnerships (PPPs) in Yichang City, Hubei Province, in the People’s Republic of China (PRC).
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