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

Sovereign Project | 50201-001

The proposed Asian Development Bank (ADB) assistance will be the first sovereign public-private partnerships (PPP)-related loan in the People's Republic of China (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
    Haydarov, Aziz K.
    Sectors Group
    Request for information
  • Country/Economy
    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 / Economy China, People's Republic of
Project Status Active
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 Gender Equity and Mainstreaming
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 Some gender elements
Description The proposed Asian Development Bank (ADB) assistance will be the first sovereign public-private partnerships (PPP)-related loan in the People's Republic of China (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-addition 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 socially inclusive delivery of social services using PPPs, which is aligned with (i) establishing a three-tiered elderly care system (home-, community-, and institutional-based care) (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); and

(ii) reforming and diversifying local government financing channels using PPP and other means (Opinions on Innovative Investment Mechanism and Encouraging Social Investment in Key Sectors).

Project Outcome
Description of Outcome

Quality ECS delivered by local governments using PPPs

Progress Toward Outcome A review mission was fielded on 31 March-6 April 2022.The implementation progress is about 2 years behind the original schedule. The delay is caused mainly by the (i) prolonged preparation and approval of the feasibility study report resulting from the special PPP and results-based lending features, (ii) frequent staff changes in the executing and implementing agencies and the ADB project team leader at the start-up stage, (iii) delay in PPP Transaction Advisory Service (TAS) consultant recruitment, (vi) COVID-19 pandemic, (v) unsatisfactory deliverables by the PPP TAS consultants at the transaction structuring stage; and (vi) recent financial difficulties of both contractors. A midterm review mission was fielded on 7-11 November 2022 to review program progress and discuss the proposed 2-year extension of the original loan closing date of 30 June 2023. A review mission was fielded in 20-21 and 28 March 2023. The loan closing date has been extended to 30 June 2025.
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)

DLI 1: YMG's program management office (PMO) capacity in PPP design, management, and effective service delivery built. The capacity development is under process and this DLI will be achieved in Q2 2023.

DLI 2: ECS facilities with elderly and environmentally sustainable design features constructed. The prior results and 2017 target (detailed designs for ECS facilities finalized and approved with elderly and environmentally sustainable and inclusive design features) have been achieved. Full achievement of DLI 2 is expected in Q1 2024.

DLI 3: Number of elderly with access to integrated and inclusive ECS facilities increased. The PPP procurement is almost completed. The contract negotiation with the winning bidder is ongoing. Operations commencement in the two ECS facilities is anticipated by June 2024 and DLI3 is expected to be achieved by June 2025. The target number is subject to the reassessment of the private sector operator once in place, as the market conditions have been different with that as appraisal, particularly after the COVID-19 pandemic.

DLI 4: Quality ECS provided through PPP. The key performance indicators and monitoring mechanism have been completed and was verified by a third-party, with partial disbursement of $2 million achieved. The DLI is expected to be fully achieved by 2025, after two performance reviews against the approved key performance indicators.

DLI 5: PPP demonstration achieved. ADB and YMG have approved the ECS PPP model developed by the PPP TAS consultant, with partial disbursement of $1 million made. The PPP TAS consultant will prepare and disseminate the PPP manual by Q3 2023 to fully achieve DLI 5.

Geographical Location Yichang
Safeguard Categories
Environment B
Involuntary Resettlement B
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. 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 During the project preparatory technical assistance, more than 170 people were interviewed through 20 focus group discussions and 16 in-depth interviews. In addition, a number of key informant interviews and stakeholder workshops were held with the relevant bureaus of the YMG (e.g., Civil Affairs Bureau, Development and Reform Commission, Financial Bureau) and ECS providers.
During Project Implementation A further detailed analysis of care needs will be conducted, and further consultations with elderly people will be held.
Business Opportunities
Consulting Services The RBL program implementation will use the country's program procurement systems. Yichang project management office will undertake the procurement of civil works, goods, and services.
Procurement The RBL program implementation will use the country's program procurement systems. Yichang project management office will undertake the recruitment of consulting services.
Responsible ADB Officer Haydarov, Aziz K.
Responsible ADB Department Sectors Group
Responsible ADB Division Human and Social Development Sector Office (SG-HSD)
Executing Agencies
Yichang Municipal Government
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 24 Jun 2023

Loan 3506-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Dec 2016 11 Mar 2018 20 Jun 2018 30 Jun 2023 30 Jun 2025 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 105.00 Cumulative Contract Awards
ADB 50.00 24 Nov 2023 19.65 0.00 39%
Counterpart 55.00 Cumulative Disbursements
Cofinancing 0.00 24 Nov 2023 32.15 0.00 64%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Partly satisfactory

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.

Title Document Type Document Date
Public–Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei: Semiannual Report on Social and Gender Consideration Executing Agency Progress Reports Jul 2023
Public–Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei: Audited Project Financial Statements (January-December 2022) Audited Project Financial Statements Jul 2023
Public–Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei: Inception Report on Social and Gender Consideration Executing Agency Progress Reports Jul 2022
Public–Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei: Audited Project Financial Statements (January-December 2021) Audited Project Financial Statements Jul 2022
Public–Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei: Audited Project Financial Statements (January-December 2020) Audited Project Financial Statements Jul 2021
Public-Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei: Audited Project Financial Statements (January-December 2019) Audited Project Financial Statements Jul 2020
Public-Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei: Audited Project Financial Statements (1 March 2017–31 December 2018) Audited Project Financial Statements Jul 2019
Loan Agreement for Loan 3506-PRC: Public-Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei - Results Based Lending Loan Agreement (Ordinary Resources) Mar 2018
Program Agreement for Loan 3506-PRC: Public-Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei - Results Based Lending Project/Program Agreements Mar 2018
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 Delivery of Elderly Care Services in Yichang, Hubei: Internal Resettlement Monitoring Report (March-August 2023) Social Monitoring Reports Sep 2023
Public–Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei: Internal Resettlement Monitoring Report (September 2022-February 2023) Social Monitoring Reports Mar 2023
Public–Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei: Environmental Monitoring Report No. 5 Environmental Monitoring Reports Dec 2022
Public–Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei: Social Monitoring Report (December 2021-August 2022) Social Monitoring Reports Sep 2022
Public–Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei: Environmental Monitoring Report No. 4 Environmental Monitoring Reports Jun 2022
Public–Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei: Environmental Monitoring Report No. 3 Environmental Monitoring Reports Dec 2021
Public–Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei: Comprehensive Demonstration Base for Medical Treatment and Care Subproject Resettlement Plan Resettlement Plans Dec 2021
Public–Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei: Environmental Monitoring Report No. 2 Environmental Monitoring Reports Jun 2021
Public–Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei: Updated Program Safeguard Systems Assessment Program Safeguard Systems Assessments Jun 2021
Public–Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei: Environmental Monitoring Report (June 2018-December 2020) Environmental Monitoring Reports Dec 2020
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.


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

Tender Title Type Status Posting Date Deadline
Public–Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei Individual - Consulting Closed
Public–Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei Individual - Consulting Closed
Public–Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei Individual - Consulting Closed
Program Management Support Firm - Consulting Closed
PPP Transaction Advisory Services Firm - Consulting Closed
Public–Private Partnerships Demonstration Program to Transform Delivery of Elderly Care Services in Yichang, Hubei Individual - Consulting Closed

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
WA ON THE DISBURSEMENT LINKED INDICATORS FOR DLI2 FOR 2020 Loan 3506 29 Nov 2020 PRC | PRC CHINA,PEOPLE'SREP.OF Yichang Municipal Government 6,000,000.00 6,000,000.00
WA ON THE DISBURSEMENT LINKED INDICATORS FOR PRIOR RESULTS Loan 3506 17 Dec 2018 DLI 2 | HUBEI CHINA,PEOPLE'SREP.OF Yichang Municipal Government 3,000,000.00 3,000,000.00

Procurement Plan

None currently available.