China, People's Republic of: Public–Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei

Sovereign (Public) Project | 50201-001 Status: Approved

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 Details

Project Officer
McIntyre, Andrew J. East Asia Department Request for information
Country
  • China, People's Republic of
Sector
  • Health
 
Project Name Public–Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei
Project Number 50201-001
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3506-PRC: Public Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei
Ordinary capital resources US$ 50.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
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.

Impact

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).

Project Outcome
Description of Outcome Quality ECS delivered by local governments using PPPs
Progress Toward Outcome
Implementation Progress
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)
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental 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
Executing Agencies
Yichang Municipal Government
No. 102 Yanjiang Blvd.
Yichang City, Hubei PRC
Post Code : 443000
Timetable
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

Loan 3506-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
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%
Counterpart 78.40 Cumulative Disbursements
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.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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