China, People's Republic of: Shanxi Changzhi Green Transformation and Human Capital Development Project

Sovereign Project | 51381-001

Changzhi City is a regional center city located in Southeast of Shanxi Province in the central region of the People's Republic of China (PRC). Changzhi is bordered by the southern section of Taihang Mountain to the east, and to the west by the Taiyue Mountain. Changzhi's total population is 3.4 million people with 800,000 living in the core urban area, and the total land area is 13,955 square kilometers of which 53% is forest covered. Changzhi, like most of Shanxi province, is lagging behind the PRC's development, and it urgently needs a profound change towards a modern and diverse urban and urban-rural economy supported by improved education and urban livability, as it suffers from decline due to its dependency on coal-mining and traditional industries.

Project Details

  • Project Officer
    Rau, Stefan
    East Asia Department
    Request for information
  • Country
    China, People's Republic of
  • Sector
    • Water and other urban infrastructure and services
Project Name Shanxi Changzhi Green Transformation and Human Capital Development Project
Project Number 51381-001
Country China, People's Republic of
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: Shanxi Changzhi Green Transformation and Human Capital Development Project
Ordinary capital resources US$ 300.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Sector / Subsector

Agriculture, natural resources and rural development / Land-based natural resources management

Education / Technical and vocational education and training

Finance / Small and medium enterprise finance and leasing

Industry and trade / Small and medium enterprise development

Transport / Road transport (non-urban) - Urban public transport - Urban roads and traffic management

Water and other urban infrastructure and services / Other urban services - Urban sewerage - Urban water supply

Gender Equity and Mainstreaming Effective gender mainstreaming
Description Changzhi City is a regional center city located in Southeast of Shanxi Province in the central region of the People's Republic of China (PRC). Changzhi is bordered by the southern section of Taihang Mountain to the east, and to the west by the Taiyue Mountain. Changzhi's total population is 3.4 million people with 800,000 living in the core urban area, and the total land area is 13,955 square kilometers of which 53% is forest covered. Changzhi, like most of Shanxi province, is lagging behind the PRC's development, and it urgently needs a profound change towards a modern and diverse urban and urban-rural economy supported by improved education and urban livability, as it suffers from decline due to its dependency on coal-mining and traditional industries.
Project Rationale and Linkage to Country/Regional Strategy

Strategic fit. The project will demonstrate how the urban and urban-rural economy can be modernized, poverty can be reduced, employment created, environment rehabilitated, and broader public goods be provided through comprehensive support to economic and urban development and contributing to rural vitalization in Changzhi. It is aligned with (i) Thirteenth Five-Year Plans of Shanxi Province and Changzhi City (2016 2020), (ii) PRC's National New-Type Urbanization Plan (2014 2020), (iii) PRC's Pilot City Program for Industrial Transformation and Upgrading (2017) (iv) PRC's Rural Vitalization Strategy (Draft), and (v) Changzhi City master plan (2011 2030). The proposed project is included in the country operations business plan (2018-2020) of the Asian Development Bank (ADB) for the PRC and is aligned with (I) country partnership strategy for the PRC, 2016 2020, supporting socially inclusive, environmentally sustainable, and economically competitive development; and (II) urban, water, and environment operational plans/directions. The project is also fully aligned with operational priorities of ADB's Strategy 2030 and adheres to its principles of supporting upper middle-income countries particularly by (a) developing a demonstration project for economic diversification, (b) enhancing resilience to economic and climate change shocks, (c) contributing to the creation of quality jobs, education and training, (d) integrated solutions for livable cities, (e) rural development and value chain linkages, (f) institutional strengthening and capacity building, and south-south sharing of experiences, best practices and innovation.

Innovations, pilots and value addition. The project aims at demonstrating inclusive and green urban and urban-rural development through support of human resource development matching with a new cluster of high-technology clean production and service industry in areas of new energy, new materials, bioengineering, green jobs in environmental protection and nature-based tourism. This will be supported by the provision of public goods and services to enhance urban livability. ADB's value addition will be providing strategies from international best practices on comprehensive economic revitalization and diversification, establish institutional cooperation mechanisms, and investments in higher education, technical training, environment, and urban infrastructure. The project will apply innovative approaches to contributing to nature-based tourism and historic preservation of rural villages as broader public goods in the southern section of a larger mountain-range in the PRC and its economic integration with the rural vitalization strategy following international best practices (i.e. Appalachian Trail in the United States; Kumano Kodo in Japan; Camino de Santiago and alpine hiking and trekking in Europe). Old industries like coal, heavy industries and subsistence farming are expected to play a lesser role. Innovative information and communication technologies will be applied to facilitate an innovation ecosystem and build capacity for development of a smart city urban and urban-rural development platform, as service for small and medium-sized enterprises (SMEs), research and development and skills-job matching platform. Value chain integration for both the modernized urban and rural economies, managed and made accessible through smart city applications will be explored and demonstrated through capacity building and south-south knowledge sharing events and knowledge products.

Impact Economically competitive industrial transformation, and socially inclusive and environmentally sustainable urban and rural-urban development in Changzhi City achieved (Pilot City Program for Industrial Transformation and Upgrading, and National New-type Urbanization Plan)
Outcome Economic diversity, qualification of local workforce, urban and rural urban livability improved
Outputs

Higher education and technical vocational education and training facilities and institutional capacity improved

Industrial park infrastructure and economic development capacity developed

Sustainable rural urban economic revitalization and inclusive tourism developed

Degraded environment and wetland rehabilitated

Inclusive capacity in economic and urban development and landscape ecology developed

Geographical Location Changzhi
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects To be determined during project processing.
Involuntary Resettlement To be determined during project processing.
Indigenous Peoples To be determined during project processing.
Stakeholder Communication, Participation, and Consultation
During Project Design Relevant government agencies are being consulted in the process of designing the project.
During Project Implementation Relevant government agencies will be involved in implementing the project.
Business Opportunities
Consulting Services An estimated total of 20 individual specialists (5 international and 16 national) for a total of 45 person-months (12 international and 35 national) will be engaged from August 2018 to June 2019 on an intermittent basis to carry out regional economy and urban development assessment and investment prioritization, as well as climate risk and vulnerability assessment. The consultants will be engaged in accordance with ADB Procurement Policy (2017, as amended from time to time) and the associated Project Administration Instructions and TA staff instructions.
Responsible ADB Officer Rau, Stefan
Responsible ADB Department East Asia Department
Responsible ADB Division Urban and Social Sectors Division, EARD
Executing Agencies
Changzhi City Government
No. 70 South Changxing Road Changzhi City
Shanxi Province
Timetable
Concept Clearance 30 Oct 2018
Fact Finding 01 Mar 2022 to 11 Mar 2022
MRM 15 Apr 2022
Approval -
Last Review Mission -
Last PDS Update 30 Sep 2021

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

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Contracts Awarded

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Procurement Plan

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