China, People's Republic of : Inner Mongolia Sustainable Cross-Border Development Investment Program - Tranche 2

Project Name

Inner Mongolia Sustainable Cross-Border Development Investment Program - Tranche 2

Project Number

51192-003

Country / Economy

• China, People's Republic of

Project Status

Proposed

Project Type / Modality of Assistance

• Loan

Source of Funding / Amount

Loan: Inner Mongolia Sustainable Cross-Border Development Investment Program - Tranche 2

Source	Amount
Ordinary capital resources	US$ 174.32 million

Strategic Agendas

• Inclusive economic growth

Drivers of Change

• Gender Equity and Mainstreaming

Sector / Subsector

• Industry and trade / Industry and trade sector development

Gender

Effective gender mainstreaming

Description

The Central Asia Regional Economic Cooperation (CAREC) Program has an overarching vision of Good Neighbors, Good Partners, and Good Prospects. To achieve this vision, the CAREC Program has adopted a new strategic framework, CAREC 2030, which aims to 'connect people, policies and projects for shared and sustainable development, with a special focus on economic corridor development, whereby transport corridors will be expanded, cross-border trade and investment promoted, and economic growth stimulated. Under CAREC 2030, economic corridor development is highlighted as one of the five operational clusters. The People's Republic of China (PRC) is an active participant in the CAREC Program and is making joint efforts with Mongolia to develop CAREC Transport Corridor 4 and transform it into an economic corridor. The proposed multitranche financing facility (MFF, or investment program) is designed to support the participation of the PRC's Inner Mongolia Autonomous Region (IMAR) in regional cooperation and integration (RCI), especially the CAREC Program, with a focus on economic corridor development. The investment program will enhance cooperation between the PRC and Mongolia under the CAREC framework, and is expected to have high RCI spill-overs, also benefitting Mongolia by improving connectivity, increasing cross-border trade, and expanding Mongolia's access to the market in the PRC and beyond.

Project Rationale and Linkage to Country/Regional Strategy

Impact

Sustainable economic development and shared prosperity for CAREC region achieved.

Outcome

Sustainable economic opportunities and living conditions in areas along the IMAR-Mongolia border improved.

Outputs

Geographical Location

Safeguard Categories

Environment

B

Involuntary Resettlement

B

Indigenous Peoples

B

Summary of Environmental and Social Aspects

Environmental Aspects

Tranche 2 of the Investment Program is classified as B for environment. A consolidated initial environmental examination (IEE), including an environmental management plan (EMP) was prepared for the physical investment components, in compliance with ADB's policies and requirements included in ADB's SPS. The IEE will be disclosed on ADB website. The project IEE and EMP form a basis of the official loan agreement between ADB and the executing agency. Tranche 2 subprojects are not expected to have significant adverse environmental impacts that are irreversible, diverse, or unprecedented. Potential environmental impacts of construction of the project facilities are temporary, short-term and reversible and include (i) soil erosion; (ii) construction noise and dust; (iii) inappropriate storage of construction materials and wastes; (iv) wastewater; and (v) safety to construction workers and community. These impacts can be readily managed or effectively mitigated through the application of good construction practices and measures identified in the EMP. During operation, the major negative environmental impacts are related to the waste management from wastewater treatment facilities.The wastewater and solid waste from the project facilities will be disposed to the existing waste treatment facilities (WWTP and landfills). Due diligence confirmed that these facilities are established and operated in accordance with the PRC environmental regulations. Other environmental impacts are anticipated to be minor and will be addressed through conventional operation and maintenance practices, health and safety codes and measures included in the operations aspects of the EMP.

Involuntary Resettlement

Tranche 2 of the Investment Program is classified as Category B for involuntary resettlement. Tranche 2 consists of three construction subprojects, which are the Alxa Yellow River Basin Ecological Restoration Subproject (Alxa Yellow River Subproject), Uliji BCP Comprehensive Improvement Subproject (Uliji Subproject), and Arxan Port Ecological Environment Comprehensive Management Subproject (Arxan project).

Resettlement Plan (RP) and Due Diligence Report (DDR): A resettlement plan (RP) has been prepared to address resettlement impacts of Alxa Yellow River Subproject in line with ADB's SPS and laws and regulations of China and Inner Mongolian Autonomous Region (IMAR), and resettlement due diligence reports have been prepared for Uliji Subproject and Arxan Subproject respectively. According to the due diligence carried out at this stage, there were no any legacy issues identified related to these two subprojects. The RP and these two DDRs will be submitted by the IAs to the ADB for no objection and to be disclosed on the government and ADB's website in July 2023.

Indigenous Peoples

Based on due diligence in accordance with the SPS (2009), it is confirmed that Tranche 2 will not incur any adverse impacts on ethnic minorities. Tranche 2 is Category B for the Indigenous Peoples safeguard due to positive impacts expected for all three subprojects on ethnic minority communities in the project area.

Two ethnic minority development plans (EMDPs) are prepared for Tranche 2 following the EMDF prepared under Tranche 1 to ensure that ethnic minority communities in Uliji and Arxon subprojects equally receive culturally appropriate benefits from the Project. As ethnic minorities are the majority of direct beneficiaries of the Alxa subproject, the elements of an EMDP have been integrated in subproject design, including the provision of employment, capacity building opportunities, and being engaged in meaningful consultations throughout the project implementation. EMDP implementation will be subject to both internal and external monitoring and semi-annual monitoring reports will be submitted.

Stakeholder Communication, Participation, and Consultation

During Project Design

During Project Implementation

Contact

Responsible ADB Officer

An, Bo

Responsible ADB Department

Sectors Group

Responsible ADB Division

Public Sector Management and Governance Sector Office (SG-PSMG)

Executing Agencies

Government of Inner Mongolia Autonomous Region

Timetable

Concept Clearance

-

Fact Finding

-

MRM

12 Sep 2024

Approval

-

Last Review Mission

-

Last PDS Update

12 Jul 2023

Funding