China, People's Republic of : Xiangtan Low-Carbon Transformation Sector Development Program

Sovereign Project | 52230-001

The Xiangtan Low-Carbon Transformation Sector Development Program (XSDP) is aligned with the following impact: Xiangtan's target of carbon emission peaking by 2028 achieved. The XSDP will have the following outcome: use of low-carbon enabling systems in Xiangtan increased. The XSDP will have four outputs based on Xiangtan's GHG profile, trends, structural challenges, and opportunities for effective carbon reduction.

Project Details

  • Project Officer
    Xia, Heng
    East Asia Department
    Request for information
  • Country/Economy
    China, People's Republic of
  • Sector
    • Energy
Project Name Xiangtan Low-Carbon Transformation Sector Development Program
Project Number 52230-001
Country / Economy China, People's Republic of
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3987-PRC: Xiangtan Low-Carbon Transformation Sector Development Program
Ordinary capital resources US$ 150.00 million
Loan 3988-PRC: Xiangtan Low-Carbon Transformation Sector Development Program
Ordinary capital resources US$ 50.00 million
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP4: Making cities more livable
OP5: Promoting rural development and food security
OP6: Strengthening governance and institutional capacity
OP7: Fostering regional cooperation and integration
Sector / Subsector

Energy / Energy efficiency and conservation

Information and communication technology / ICT infrastructure

Public sector management / Public expenditure and fiscal management

Transport / Urban public transport

Water and other urban infrastructure and services / Urban flood protection
Gender Some gender elements
Description The Xiangtan Low-Carbon Transformation Sector Development Program (XSDP) is aligned with the following impact: Xiangtan's target of carbon emission peaking by 2028 achieved. The XSDP will have the following outcome: use of low-carbon enabling systems in Xiangtan increased. The XSDP will have four outputs based on Xiangtan's GHG profile, trends, structural challenges, and opportunities for effective carbon reduction.
Project Rationale and Linkage to Country/Regional Strategy The project rationale: (i) economic performance of the People's Republic of China and its commitment to climate change, (ii) Xiangtan's commitment to low-carbon development, (iii) Xiangtan's development challenges, (iv) Asian Development Bank engagements and lessons, (v) choice of modality (the Xiangtan Municipal Government chose a sector development program modality because the investment project will not be sustainable without having relevant reforms in place.
Impact

Xiangtan's target of carbon emission peaking by 2028 achieved
Project Outcome
Description of Outcome

Use of low-carbon enabling systems in Xiangtan increased
Progress Toward Outcome Will be assessed at project completion.
Implementation Progress
Description of Project Outputs

Low-carbon and resilient infrastructure transformation demonstrated

Information and knowledge platforms for informed decision-making and behavioral changes enabled

Capacity building and program management enhanced

Low-carbon transformation policy reforms adopted
Status of Implementation Progress (Outputs, Activities, and Issues) Outputs will be assessed at project completion.
Geographical Location Xiangtan
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The XMG prepared an initial environmental examination (IEE), including an environmental management plan (EMP), per ADB's Safeguard Policy Statement (2009). Construction dust, noise, wastewater, and solid wastes; community and worker's health and safety risks; and traffic disruptions will be the primary adverse impacts during construction. Potential negative operation phase impacts include air pollution, noise, wastewater, and waste. As they are short term and localized, good construction practices and measures indicated in the EMP will reduce impacts to acceptable levels. The XMG will establish a project specific grievance redress mechanism. The XMG has committed to implementing the EMP, grievance redress mechanism, and relevant training, with support from a loan implementation environment consultant. Despite the COVID-19 pandemic, the XMG carried out consultations using a popular social network application and the XMG will conduct in-person public consultations during implementation. The XMG prepared the environmental impact matrix of the policy actions under the PBL and included in the IEE, confirming no adverse environmental impacts. The program team disclosed the IEE and EMP on the ADB website on 17 April 2020. As the climate risk screening was medium, the program team performed a climate risk and vulnerability assessment confirming that the increased rainfall intensity of individual storm events may result in peak flows with flood risks to Xiangtan, particularly in areas with insufficient drainage capacity. The program team conducted a more detailed risk assessment on pluvial flooding and fed into the XCRCT. The XCRCT was used for the project design as it allows users to select specific EBA interventions in specific areas immediately, and to see the estimated resilience capacity improvement and the associated costs.
Involuntary Resettlement Land required for the construction of the hospital (80.03 mu) and the Liwei Substation (8.03 mu) was acquired by the XMG for local area development in 2017 and 2013, respectively without anticipating ADB financing. Due diligence confirmed that there is no outstanding or legacy issue on the land allocated for the project. Other components will not induce any physical or economic displacement. The population of scattered ethnic minorities in Xiangtan municipality accounts for 0.49% of the total municipal population. The program will benefit all residents and will not have differential impacts on any specific ethnic minority communities that will trigger ADB's indigenous peoples' policy requirements. For the PBL, the safeguards assessment confirmed that policy actions will not result in involuntary resettlement or impacts on indigenous peoples' communities. On 17 April 2020, the program team disclosed the social safeguard due diligence report on the ADB website, including the safeguards assessment matrix.
Indigenous Peoples The program will benefit all residents and will not have differential impacts on any specific ethnic minority communities that will trigger ADB's indigenous peoples' policy requirements. For the PBL, the safeguards assessment confirmed that policy actions will not result in involuntary resettlement or impacts on indigenous peoples' communities.
Stakeholder Communication, Participation, and Consultation
During Project Design ADB supported the XMG (i) in developing appropriate and well-articulated incentive mechanisms to activate all stakeholders for low-carbon decisions and behavior changes, and (ii) in creating effective policies (a) to mobilize domestic financing and private sector investment in low-carbon businesses, and (b) to stimulate the market for low-carbon products and innovations through TA. ADB engaged (i) an iRAP assessor to evaluate the road safety in five school zones and to recommend safety features; (ii) green building and energy experts to redesign two buildings to secure EDGE certification; and (iii) climate adaptation experts to develop the Xiangtan Climate Resilient City Toolbox (XCRCT), a customized touch-table and web-based platform. Using the XCRCT, ADB facilitated collaborative planning among the XMG's bureaus and the consensus-based selection of EBA measures for the project. ADB engaged GPP experts to support the XMG with GPP training and policy drafting, which led to the XMG's commitment to adopt GPP.
During Project Implementation Project information will be communicated through public consultation meetings, interviews, focus group discussions and, information will be disclosed on ADB's and government's website, in accordance with ADB's requirements of Access to Information Policy. Consultations with communities have taken place and will continue through the project implementation. Special attention will be paid for women's participation including other vulnerable groups, such as the poor during consultation. The communication strategy will be implemented by the PMO, supported by communication consultants. These consultants will provide technical support to assess the communication capacity and needs of the IA and assist in implementing this communication strategy.
Business Opportunities
Consulting Services All procurement of goods, works, and consulting services will be undertaken in accordance with ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time). Before the start of any procurement, ADB and the government will review the public procurement laws of the central and state governments to ensure consistency with ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Procurement All procurement of goods, works, and consulting services will be undertaken in accordance with ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time). Before the start of any procurement, ADB and the government will review the public procurement laws of the central and state governments to ensure consistency with ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Responsible ADB Officer Xia, Heng
Responsible ADB Department East Asia Department
Responsible ADB Division PRC Resident Mission
Executing Agencies
Bureau of Finance, Hunan Province
Xiangtan Municipal Government
Timetable
Concept Clearance 26 Dec 2018
Fact Finding 10 Feb 2020 to 30 Mar 2020
MRM 30 Apr 2020
Approval 13 Oct 2020
Last Review Mission -
Last PDS Update 27 Sep 2022

Loan 3987-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Oct 2020 16 Dec 2020 23 Apr 2021 31 Mar 2026 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 345.88 Cumulative Contract Awards
ADB 150.00 18 May 2023 27.15 0.00 18%
Counterpart 195.88 Cumulative Disbursements
Cofinancing 0.00 18 May 2023 10.00 0.00 7%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - Satisfactory

Loan 3988-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Oct 2020 16 Dec 2020 23 Apr 2021 31 Jul 2022 31 May 2023 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 50.00 Cumulative Contract Awards
ADB 50.00 18 May 2023 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 18 May 2023 25.00 0.00 50%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - Satisfactory

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
Xiangtan Low-Carbon Transformation Sector Development Program: Progress Report on Tranche Release Progress Reports on Tranche Releases May 2023
Xiangtan Low-Carbon Transformation Sector Development Program: Procurement Plan Procurement Plans Mar 2022
Loan Agreement (Ordinary Operations) for Loan 3988-PRC: Xiangtan Low-Carbon Transformation Sector Development Program Loan Agreement (Ordinary Resources) Dec 2020
Loan Agreement (Ordinary Operations) for Loan 3987-PRC: Xiangtan Low-Carbon Transformation Sector Development Program Loan Agreement (Ordinary Resources) Dec 2020
Program Agreement for Loan 3988-PRC: Xiangtan Low-Carbon Transformation Sector Development Program Project/Program Agreements Dec 2020
Project Agreement for Loan 3987-PRC: Xiangtan Low-Carbon Transformation Sector Development Program Project/Program Agreements Dec 2020
Xiangtan Low-Carbon Transformation Sector Development Program: Report and Recommendation of the President Reports and Recommendations of the President Sep 2020
Xiangtan Low-Carbon Transformation Sector Development Program: Project Administration Manual Project/Program Administration Manual Aug 2020
Xiangtan Low-Carbon Transformation Sector Development Program: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Dec 2018
Xiangtan Low-Carbon Transformation Sector Development Program: Concept Paper Concept Papers 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.

Title Document Type Document Date
Xiangtan Low-Carbon Transformation Sector Development Program: Environmental Monitoring Report (January-December 2022) Environmental Monitoring Reports Apr 2023
Xiangtan Low-Carbon Transformation Sector Development Program: Social Safeguard Due Diligence Report Safeguards Due Diligence Reports Apr 2020
Xiangtan Low-Carbon Transformation Sector Development Program: Initial Environmental Examination Initial Environmental Examination Apr 2020

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
3987/3988 PRC: Xiangtan Low-Carbon Transformation Sector Development Program (CW103) Invitation for Bids Closed
Construction Supervision for Xiangtan First Traditional Chinese Medicine Hospital Firm - Consulting Closed
Project Management Consulting for Capacity Building and Loan Implementation Firm - Consulting Closed

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Construction supervision for Xiangtan First Traditional Chinese Medicine Hospital Loan 3987 28 Nov 2022 Hunan Hetian Engineering Project Management Co., Ltd | Hetian Hunan Province Bureau of Finance, Hunan Province 772,966.01 474,625.55
Civil works for building (Xiangtan First Traditional Chinese Medicine Hospital building structure) Loan 3987 01 Nov 2022 JV of Xiangtan Construction Engineering Co., Ltd. and Guizhou Construction Engineering Group Co., Ltd. | Xiangtan Hunan Province; Guizhou Province Bureau of Finance, Hunan Province 52,724,783.91 24,537,527.34
Program Management Consulting for Capacity Building and Loan Implementation Loan 3987 19 Oct 2022 JV of HJI Group Corporation and Beijing Hamoni Engineering Consulting Company Ltd. | 3200 Park Center Drive, Suite 1180, Costa Mesa, CA 92626, USA Bureau of Finance, Hunan Province 1,222,013.35 1,211,903.62

Procurement Plan

Title Document Type Document Date
Xiangtan Low-Carbon Transformation Sector Development Program: Procurement Plan Procurement Plans Mar 2022