China, People's Republic of : Climate-Resilient and Smart Urban Water Infrastructure Project
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
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Project Officer
Rao, Zhijia
Private Sector Operations Department
Request for information -
Approval Date
25 August 2020 -
Country/Economy
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. |
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| Country / Economy | China, People's Republic of |
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| Location | Nation-wide | ||||||||||
| Type or Modality of Assistance |
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| Operational Priorities | OP2: Accelerating progress in gender equality OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability OP4: Making cities more livable |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Knowledge solutions Partnerships Private sector development |
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| Sector / Subsector | Water and other urban infrastructure and services / Other urban services - Urban sewerage - Urban water supply |
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| Gender Equity and Mainstreaming | Effective gender mainstreaming | ||||||||||
| Responsible ADB Department | Private Sector Operations Department | ||||||||||
| Responsible ADB Division | Infrastructure Finance Division 2 | ||||||||||
| Responsible ADB Officer | Rao, Zhijia | ||||||||||
| 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. |
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| 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 | |
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| Environment | B |
| Involuntary Resettlement | A |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
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| 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 | |
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| Concept Clearance | 11 Apr 2018 |
| Credit Committee Meeting | 09 Jun 2020 |
| Approval | 25 Aug 2020 |
| Last PDS Update | 09 Jun 2022 |
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 |
|---|---|---|
| Climate Resilient and Smart Urban Water Infrastructure Project: Report and Recommendation of the President | Reports and Recommendations of the President | Aug 2020 |
| Climate Resilient and Smart Urban Water Infrastructure Project: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Feb 2019 |
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 |
|---|---|---|
| Climate-Resilient and Smart Urban Water Infrastructure Project: Annual Environmental and Social Performance Report (January-December 2021) | Environmental and Social Monitoring Reports | Apr 2022 |
| Climate-Resilient and Smart Urban Water Infrastructure Project: Shenzhen Gushu Wastewater Treatment Plant II Safeguards Due Diligence Report | Safeguards Due Diligence Reports | Jun 2021 |
| Climate-Resilient and Smart Urban Water Infrastructure Project: Shenzhen Fuyong Wastewater Treatment Plant II Safeguards Due Diligence Report | Safeguards Due Diligence Reports | Jun 2021 |
| Climate-Resilient and Smart Urban Water Infrastructure Project: Chizhou Sponge City Environment and Social Compliance Audit Report | Environment and Social Compliance Audit Reports | Jun 2021 |
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.
ADB, Shenzhen Water Group Sign Loan to Support Climate Resilient and Smart Water Management in PRC Cities
The Asian Development Bank (ADB) signed a $200 million equivalent loan facility in yuan with Shenzhen Water (Group) Co., Ltd. (SZWG) and Shenzhen Water and Environment Investment Group Co., Ltd. (SZWEIC) to promote climate and disaster-...