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China, People's Republic of: Climate-Resilient and Smart Urban Water Infrastructure Project

Nonsovereign (Private) Project | 52090-001 Status: Proposed

The proposed project will support SZWG''s investment in (i) climate- and disaster-resilient urban water infrastructure and (ii) water supply and wastewater treatment facilities with smart water technologies in Shenzhen and third- and fourth-tier cities in the PRC.

Project Details

Project Officer
Chen, Jinqiang Request for information
Country
  • China, People's Republic of
Sector
  • Water and other urban infrastructure and services
 
Project Name Climate-Resilient and Smart Urban Water Infrastructure Project
Project Number 52090-001
Borrower/Company Shenzhen Water (Group) Co., Ltd.
Shenzhen Water and Environment Investment Group Co., Ltd.
Country China, People's Republic of
Location Nation-wide
Type or Modality of Assistance
Loan Ordinary capital resources USD 100.00 million Approved
Loan Ordinary capital resources USD 100.00 million Approved
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

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

Gender Equity and Mainstreaming Effective gender mainstreaming
Responsible ADB Department
Responsible ADB Division
Responsible ADB Officer Chen, Jinqiang
Project Sponsor(s)
Description The proposed project will support SZWG''s investment in (i) climate- and disaster-resilient urban water infrastructure and (ii) water supply and wastewater treatment facilities with smart water technologies in Shenzhen and third- and fourth-tier cities in the PRC.
Objectives and Scope

The loan will help finance the construction, acquisition, upgrading, expansion, and refinancing of subprojects that will support sponge city development to enhance

climate resilience, and apply smart water technology to improve efficiency in the water value chain from the supply end to wastewater treatment. The majority (60%) of the proceeds will be used in third-and fourth-tier cities, and the rest in Shenzhen. SZWG has already identified a sponge city subproject and a smart water subproject in a district of Shenzhen. Future subprojects will be developed by SZWG. Those using ADB financing will satisfy ADB''s eligibility criteria for (i) project location, (ii) technology requirements per ADB Sustainable Development and Climate Change Department''s database, (iii) safeguard standards, (iv) the contractual arrangements of underlying concession agreements, and (v) minimum return on equity or internal rate of return.

Linkage to Country/Regional Strategy

By supporting greater gender inclusiveness at SZWG, the project is aligned with ADB's Strategy 2030 Operational Priority 2 (Accelerating Progress in Gender Equality). It will implement an ADB gender action plan. It is aligned with Operational Priority 3 (Tackling Climate Change, Building Climate and Disaster Resilience, and Enhancing Environmental Sustainability) by supporting the establishment of a sponge city to address flood risks and improving energy efficiency through the use of smart water

technologies. By helping to improve water quality, reduce pollution, and enhance water efficiency in PRC cities, it is also aligned with Operational Priority 4 (Livable Cities). The project supports the strategic priority of ADB's water operational plan for 2011--2020 and the objectives set in the country partnership strategy for the PRC of managing climate change and the environment and developing green cities.

Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is classified as category B for environment. Due diligence was undertaken by an external expert in accordance with ADB SPS 2009 requirements for general corporate finance, which included a corporate audit of SZWG's environmental and social management system (ESMS) and four site audits at water, wastewater treatment and sponge city facilities. The corporate audit determined that SZWG operates in compliance with applicable laws and regulations of the jurisdictions in which it operates, however some gaps were identified with regards to performance against the objectives, principles and requirements of ADB's SPS. The environmental and social systems, processes, and practices of the company were assessed as commensurate with the risks and impacts associated with its business and operation. The aspects reviewed during due diligence include odor and noise nuisance, waste management, hazardous substance management, sludge disposal, and occupational health and safety.
Involuntary Resettlement The project is classified as category A for involuntary resettlement. SZWG did not however have a land procurement procedure to identify and manage unresolved or potential future displacement impacts, due largely to the fact that land procurement is carried out by each municipal government and land use right is awarded under concession agreements.
Indigenous Peoples The project is classified as category C for indigenous peoples. SZWG's consideration of ethnic minority groups in its subproject planning was based on national law.
Stakeholder Communication, Participation, and Consultation Information disclosure and consultation with affected people will be conducted in accordance with ADB requirements.
Timetable for assistance design, processing and implementation
Concept Clearance 11 Apr 2018
Credit Committee Meeting 09 Jun 2020
Approval 25 Aug 2020
Last PDS Update 26 Aug 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.

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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.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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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.

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