fbpx 50222-002: Chongqing Innovation and Human Capital Development Project | Asian Development Bank

China, People's Republic of: Chongqing Innovation and Human Capital Development Project

Sovereign (Public) Project | 50222-002 Status: Proposed

The project is located in Chongqing, a centrally administered municipality in the Chengdu-Chongqing city cluster at the upper reaches of the Yangtze River. Chongqing's resource-based inefficient economy is impacting the environment, and it prioritizes innovation in promoting sustainable development to shift from heavily polluting industries to innovation-driven industries across all economic sectors. The project will (i) help the people in Chongqing gain industry-relevant and innovation-oriented skills and capacities for employment; and (ii) support institutions to create an enabling and inclusive environment that helps build an innovative, diversified, efficient, and green economy in Chongqing.

Project Details

Project Officer
Maruyama, Hinako East Asia Department Request for information
Country
  • China, People's Republic of
Sector
  • Education
 
Project Name Chongqing Innovation and Human Capital Development Project
Project Number 50222-002
Country China, People's Republic of
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: Chongqing Innovation and Human Capital Development Project
Ordinary capital resources US$ 200.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
Sector / Subsector

Education / Technical and vocational education and training

Industry and trade / Industry and trade sector development

Public sector management / Social protection initiatives

Gender Equity and Mainstreaming Gender equity
Description

The project is located in Chongqing, a centrally administered municipality in the Chengdu-Chongqing city cluster at the upper reaches of the Yangtze River. Chongqing's resource-based inefficient economy is impacting the environment, and it prioritizes innovation in promoting sustainable development to shift from heavily polluting industries to innovation-driven industries across all economic sectors. The project will (i) help the people in Chongqing gain industry-relevant and innovation-oriented skills and capacities for employment; and (ii) support institutions to create an enabling and inclusive environment that helps build an innovative, diversified, efficient, and green economy in Chongqing.

The project will work with seven subprojects managed by seven implementing agencies in Chongqing's innovation ecosystem to pilot interventions. To support Chongqing's innovation-driven economic transformation, the project will enable graduates to gain employment within Chongqing in strategic emerging industries, and skilled technicians working in enterprises and R&D institutions in Changshou and Dianjiang's economic and technological development areas to gain improved skills on entrepreneurship. Inclusiveness is the main feature of the project, as it considers vulnerable groups in society that are most affected in Chongqing's economic transformation, including unskilled workers, returning migrants, farmers, and women. The project's activities for these groups demonstrate the key features of an inclusive innovation ecosystem model. The project will contribute significantly to institutional strengthening and project sustainability.

Project Rationale and Linkage to Country/Regional Strategy

Chongqing's per capita disposable income for both urban and rural residents was below the national average in 2017. The gap in income growth and industrial development between Chongqing and the PRC's eastern coastal cities led to a massive population out-migration from Chongqing and caused severe social and economic problems; given the scarcity of matching local jobs in Chongqing, about 4.82 million people from Chongqing left their hometowns and families to seek work in the coastal cities or outside of Chongqing in 2017. The Chongqing Municipal Government (CMG) is under immense pressure and has issued policies and directives to support the migrant workers to return to their hometown in Chongqing for employment and entrepreneurship. However, the support mechanisms are still at the pilot stage and Chongqing lacks the capacity in facilitating the integration of returning migrants into the labor market and enhancing their access to public and social services.

Chongqing's economic growth slowed from 9.3% in 2017 to 6.5% in 2018. The CMG prioritizes innovation in promoting sustainable development to shift from heavily polluting industries to innovation-driven industries across all economic sectors. However, the skills mismatch between the local human resource supply and industry's demand prevails because of a lack of relevant education and training. Among university or college graduates from Chongqing, only about 65% find employment in Chongqing, with the others mainly finding jobs in the eastern PRC. The economy and industries of Chongqing have been developing through imitation or replication, but the intelligent industry has no model to imitate. Chongqing's innovation level was ranked 19th among 20 major PRC cities.

Chongqing has steadily expanded access to higher education, which helps lay an essential human resource foundation for the development of the YREB's upper reaches. However, Chongqing's higher education institutions (HEIs) still face financial challenges; human resource challenges; and modern teaching and learning challenges, including the need for facilities to introduce and deliver new programs and courses aligned to evolving skills demands in the local economy. Local skilled workers, farmers, and returning migrant workers, in particular, need to continuously update their knowledge and gain new skills to integrate modern technologies in their jobs to improve their livelihood. Education programs take many years to have an impact; there is, therefore, an urgent need to invest now.

Industries are striving to shift to less-polluting and efficient operations through research and development (R&D). However, despite high returns, there is underinvestment in long-term, high-risk R&D activities because of limited private financial resources. Public investment in R&D is a crucial catalyst to boosting private R&D activities, innovations, long-term productivity, and economic growth. Chongqing aims to create an enabling and inclusive economic environment by providing public services assistance at an early stage for R&D and start-ups. Chongqing lacks the capacity to support business incubation; institution-industry partnerships; mentorships for entrepreneurs and job seekers, including returning migrant workers; intermediary services on legal, finance, or intellectual property; and spaces for networking and collaboration.

Women made up 48.6% of the total population in Chongqing in 2017. Female students' representation varies from 16% to 70% in the project HEIs. Education patterns remain segregated along gender lines, with women underrepresented in engineering, information technology, and science and technology studies at all educational levels and in the workforce. The female entrepreneurs in the economic and technological development areas (ETDAs) in Changshou District and Dianjiang County account for only about 3% of all entrepreneurs in the ETDAs in Changshou and Dianjiang. HEIs' female teachers and students lack knowledge and skills in innovation and entrepreneurship as well as the confidence to start their own businesses. The employment rate of returning migrants who are female is about 20% lower than that of returning male migrants. Training programs, networks, and support targeting women are insufficient. There is a gender imbalance in labor division-even when women start their own businesses, they are primarily responsible for child and elderly care and housework.

Chongqing lacks capacity to help create an enabling "innovation ecosystem" where HEIs (teachers, students, researchers, administrators, and managers); enterprises (entrepreneurs, engineers, skilled workers, returning migrant workers); intermediary services (business incubators; and professionals on legal, tax, finance, and intellectual property); and government (officials, policy makers, advisors) are interconnected and transfer knowledge, ideas, human and financial capital, and policies to provide an enabling environment for innovation and create jobs and benefits for both men and women. People need spaces that facilitate capacity building and networking to generate new ideas to start businesses. Chongqing also needs to build institutional capacity to manage the planned interdisciplinary capacity building activities.

Strategic fit. The PRC formulated the YREB development plan, which envisages the establishment of an innovative and modern industrial system in the YREB, making the YREB a strategic economic region for national economic and social development by 2030. The PRC also issued the YREB innovation-driven industrial transformation and upgrading plan in 2016, which identifies obsolete industries and economic activities to be upgraded and diversified by YREB cities through entrepreneurial and innovative approaches. The project is aligned with five out of the seven operational priorities of ADB's Strategy 2030. The project is in line with ADB's (i) education sector operations plan by strengthening quality, inclusiveness, and relevant skills in higher education and contributing to filling labor market gaps; (ii) country partnership strategy for the PRC, 2016-2020 by supporting skills development and education; and (iii) country operations business plan for the PRC, 2019-2021, which refers to ADB's contribution to human development to promote innovation and improve service delivery, and to create an enabling environment for innovation and new industries to support the green transformation of the local economy. The project supports the achievement of the United Nations' Sustainable Development Goals.

Impact Sustainable and inclusive economic transformation in the Yangtze River Economic Belt achieved
Outcome Employment opportunities and people's capacity for innovation in Chongqing strengthened
Outputs

Relevance and quality of higher education and vocational training strengthened

Supporting mechanisms for innovation and entrepreneurship established

Institutional and project management capacity enhanced

Geographical Location Chongqing
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects An initial environmental examination and environmental management plan (EMP) were prepared for the project in accordance with ADB's Safeguard Policy Statement, and disclosed on the ADB website. The EMP defines mitigation measures, monitoring requirements, and institutional responsibilities to ensure proper environmental management throughout construction and operation. The environmental management capabilities of the executing and implementing agencies were strengthened through on-the-job training and will be further enhanced by capacity development proposed under the project. Potential affected persons and stakeholders were consulted and their concerns have been incorporated in the project design and will be addressed through effective implementation of the EMP. The CPMO will establish a grievance redress mechanism. The executing agency will submit semiannual internal environmental monitoring reports to ADB. An external monitor will also submit semiannual monitoring reports to the executing agency and ADB.
Involuntary Resettlement A draft resettlement plan was prepared for the Dianjiang subproject, and key information in the resettlement plan and due diligence report were disclosed to the affected persons. During implementation, training on ADB's involuntary resettlement will be provided to the CPMO and implementing agencies. A grievance redress mechanism has been established, and an external agency will be engaged for semiannual resettlement monitoring.
Indigenous Peoples The project locations do not have a concentration of ethnic minority people. No adverse impact by the project on ethnic minorities is envisaged.
Stakeholder Communication, Participation, and Consultation
During Project Design Relevant agencies and stakeholders were consulted during TRTA implementation including relevant agencies from Chongqing Municipal Government and project implementing agencies.
During Project Implementation Relevant agencies and stakeholders will be consulted during project implementation.
Business Opportunities
Consulting Services The procurement of consulting services will be undertaken in accordance with ADB's Procurement Policy and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Procurement The procurement of goods and works will be undertaken in accordance with ADB's Procurement Policy and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Responsible ADB Officer Maruyama, Hinako
Responsible ADB Department East Asia Department
Responsible ADB Division Urban and Social Sectors Division, EARD
Executing Agencies
Chongqing Municipal Government
Room 305, Jianfa Plaza, Honghuxilu Road,
Yubei District, Chongqing, PRC 401121
Timetable
Concept Clearance 29 Nov 2018
Fact Finding 22 Apr 2019 to 30 Apr 2019
MRM 11 Nov 2019
Approval -
Last Review Mission -
Last PDS Update 18 Feb 2020

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
Chongqing Innovation and Human Capital Development Project: Initial Poverty and Social Analysis Dec 2018

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.

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
Procurement Agent Consulting Services Firm - Consulting Closed 27 Dec 2019 31 Jan 2020

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.