China, People's Republic of: Hunan Xiangxi Rural Environmental Improvement and Green Development Project

Sovereign Project | 53050-001

The project will demonstrate environmental improvement and green development in rural areas,_by (i) improving rural waste and sanitation management facilities and services with innovative technologies and arrangements; (ii) developing local featured agricultural and forestry products; and (iii) adding values to agricultural and forestry products through improvement of value chains and integration with tourism. The project is envisaged to (i) play a demonstrative role for rural vitalization; (ii) promote regional public goods by reversing the negative impacts of pollution; (iii) reduce the risk of future epidemics, which is strongly required after the pandemic of coronavirus disease (COVID-19); and (iv) promote recovery from COVID-19 through inclusive rural economic development.

Project Details

  • Project Officer
    Kimura, Shingo
    East Asia Department
    Request for information
  • Country/Economy
    China, People's Republic of
  • Sector
    • Agriculture, natural resources and rural development
Project Name Hunan Xiangxi Rural Environmental Improvement and Green Development Project
Project Number 53050-001
Country / Economy China, People's Republic of
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4046-PRC: Hunan Xiangxi Rural Environmental Improvement and Green Development Project
Ordinary capital resources US$ 200.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural production - Agriculture research and application - Agro-industry, marketing, and trade - Forestry - Rural sanitation - Rural solid waste management

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project will demonstrate environmental improvement and green development in rural areas,_by (i) improving rural waste and sanitation management facilities and services with innovative technologies and arrangements; (ii) developing local featured agricultural and forestry products; and (iii) adding values to agricultural and forestry products through improvement of value chains and integration with tourism. The project is envisaged to (i) play a demonstrative role for rural vitalization; (ii) promote regional public goods by reversing the negative impacts of pollution; (iii) reduce the risk of future epidemics, which is strongly required after the pandemic of coronavirus disease (COVID-19); and (iv) promote recovery from COVID-19 through inclusive rural economic development.
Project Rationale and Linkage to Country/Regional Strategy

As one of the three key economic growth engines in the People's Republic of China (PRC),_the Yangtze River Economic Belt (YREB) and its nine provinces and two specially administered municipalities account for more than 40% of the population and freshwater resources, and 45% of the country's economic output. While the YREB has benefited from extensive development since the 1980s, economic growth in the middle and upper reaches of the Yangtze River Basin significantly lags the coastal areas and face particular challenges from: (i) weak institutional coordination; (ii) increasing pollution and pressure on natural resources; (iii) slow transformation into green development; and (iv) limited integration of waterways, ports, and intermodal logistics. To manage these challenges, the Government of the PRC formulated the YREB development plan 20162030._The Asian Development Bank and the government have agreed to adopt a framework approach to support the plan, with a focus on: (i) institutional strengthening and policy reform; (ii) ecosystem restoration and environmental protection; (iii) green industrial transformation; and (iv) construction of an integrated multimodal transport corridor._

In many rural areas of the YREB, agricultural production and rural livelihoods have lagged behind industrial production and urban livelihoods and income inequality and poverty are still persistent, with the majority of rural wastewater and wastes directly discharging to waterways. Against this backdrop, the government of the PRC formulated a rural vitalization strategy to promote poverty reduction, rural development, and green and inclusive growth,_which focuses on agriculture modernization, rural wastewater and wastes management, rural-urban integration, ecosystem services protection, rural health and education services development, and rural governance reform.

Xiangxi Tujia and Miao Autonomous Prefecture is located in Hunan Province in the YREB, and between the Yangtze River and special economic zones._It is also at the border between the central and western PRC and is the only part of Hunan targeted for China Western Development._Xiangxi has one city and seven counties,_with_a land area of 15,462 square kilometers, of which the urban area is 556 square kilometers. The land area is dominated by mountains. 70.2% of the mountainous area is forest, making Xiangxi one of the designated green cities. At the end of 2018, the total registered population of Xiangxi is 3.0 million, 54% are rural residents; with ethnic population mainly Tujia and Miao people accounts for 80% of the total population of Xiangxi. The total production value in Xiangxi is CNY58.3 billion, of which CNY8.4 billion is by the primary industry, CNY17.9 by the secondary industry, and CNY31.9 billion by the tertiary industry; and the per capita gross domestic product (GDP) is CNY22,094._

Xiangxi is one of the poorest regions in the PRC. All of its seven counties are designated as national poor counties. At the end of 2018, rural and urban poverty incidences in Xiangxi are 5.2% and 4.3%, respectively. In Xiangxi, of 49.2 million cubic meters per year of wastewater, only 7.4 million cubic meters per year is treated, 24.7% of villages do not have solid waste collection or processing facilities, and 48.2% of households do not have sanitary toilets. Inadequate wastewater and solid waste management and unsanitary toilets severely affect rural residents' living environment and increase their health risk.

The mountainous landscape in Xiangxi makes farming less suitable and profitable. Arable land is 135,000 hectares, only 8.7% of total land area. The region boasts of a rich list of local featured vegetation and livestock species. Agricultural GDP is CNY14 billion, or 14.4% of the total GDP. About 60% of the agricultural GDP is from local featured products given its unique climate and biosphere. These include citrus, kiwi fruit, camellia, tea, and herbal medicine. However, low quality of seeds and seedlings, inadequate modern agricultural production and management system, and inadequate cold chains make the yields highly variable with low value._

The unique combination of natural and cultural diversity gives Xiangxi high conservation value with national significance. The PRC central government designated Xiangxi as a Tujia and Miao cultural and ecological protected area and a key national ecological function area. There are three national nature reserves, three national forest parks, three national geological parks, two national scenic spots, one national wetland park, and one UNESCO world heritage site (Laosicheng Site in Yongshun County). All of these provide very high ecological and cultural value, attracting 44.9 million visitors in 2017. Seven expressways connecting local cities and counties have been opened successively in Xiangxi. Jishou City has become one of the 18 highway expressway cities in the PRC. By being involved in the 'four-hour economic circle_ of Changsha, Chongqing, Guilin, and Guiyang, with the construction of new Zhang-Jihuai highspeed railway and Xiangxi Airport, Xiangxi will enter the 'high-speed rail era_ and 'aerospace era_. Xiangxi also has zones for the integration of the primary, secondary, and/or tertiary industries such as a national agricultural technology zone in Huayuan County and a national primary, secondary, and tertiary industry integration pilot zone in Yongshun County. Xiangxi plays a leading role in industrial integration in the PRC.

However, value addition to agricultural and forestry products is still low in Xiangxi and the poverty ratio is still high. Women comprise an increasing proportion of agriculture population in the rural areas due to out-migration of men. There are limited job opportunities for women. To enhance rural industrial productivity in Xiangxi to reduce poverty and inequality between urban and rural areas and to empower women and enhance gender equality, Xiangxi is required to improve socially- inclusive agricultural value chain (production, processing, and marketing) that increases jobs for women and the poor, by fully utilizing its unique tourism resources and environmental and transportation advantages and integrating the primary, secondary, and tertiary rural industries.

The Xiangxi Tujia and Miao Autonomous Prefectural Government (XPG) takes rural vitalization as core of its development agenda. The Xiangxi Tujia and Miao Autonomous Prefecture Rural Vitalization Strategy adopts a targeted poverty alleviation approach. The Xiangxi Autonomous Prefecture Accelerated Three Year Action Plan to Improve Rural Environment and Build Beautiful Villages 20182020 outlines rural environmental improvement as its basic principle. The key growth engines are high value agricultural products and ecotourism backed with research, technology, and value chain development. The XPG has set up detailed targets to improve the living environment, grow special industries, and enhance service delivery for comprehensive rural vitalization. Key interventions are agricultural modernization and integration with ecotourism.__

Xiangxi is an appropriate demonstration area for rural vitalization and special industry development, since it (i) is one of the poorest regions in the PRC; (ii) is an important area to connect the central and western regions of the PRC and Yangtze River and special economic zones in south provinces; (iii) has local featured agricultural products which have potential for further development; (iv) has unique tourism resources and environmental and transportation advantages; and (v) plays a leading role in industrial integration in the PRC, with the two national-level industrial integration zones.

Impact

Rural vitalization in the Yangtze River Economic Belt realized (Rural Vitalization Plan, 20182022 and Yangtze River Economic Belt Development Plan, 20162030)

Project Outcome
Description of Outcome

Rural living environment and value of agricultural and forestry products in Xiangxi enhanced

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Rural waste and sanitation management facilities and services improved

Local-featured ecological agricultural and forestry products developed

Value added to local products through value chains and ecotourism

Status of Implementation Progress (Outputs, Activities, and Issues)

A minor change in scope (withdrawal, addition and minor adjustments on subprojects, changes in financing sources, and revised cost estimates) was approved by ADB on 14 February 2022. The updated initial environmental examination and resettlement plan reflecting the proposed changes in the project was disclosed on the ADB website on 17 and 24 January 2022, respectively.

The semi-annual environmental monitoring report for the period June to December 2021 and for the period January to June 2022 were disclosed on the ADB website on 13 April 2022 and 19 August 2022, respectively. The second internal social monitoring report was disclosed on the ADB website on 3 May 2022.

As of 31 August 2022, 11 contract packages (3 goods, 2 works and 6 consulting services) were awarded. The latest updated procurement plan was disclosed on the ADB website on 12 July 2022.

Several rounds of training have been provided to staff of the PMO, local PMOs, and other relevant government agencies on the EMP, RP, EMDP, SDAP, and GAP. Training/workshops on (i) financial management held on 27-28 April and 21-218 December 2021; (ii) loan disbursement and foreign capitalization held on 20 July and 3 November 2021; and (iii) loan withdrawal applications and accounting held on 24-25 February 2022.

Geographical Location Nation-wide, Xiangxi Tujiazu Miaozu Zizhizhou
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects An initial environmental examination, including an environmental management plan (EMP) and grievance redress mechanism, has been prepared and disclosed on ADB's website. The initial environmental examination is based on domestic feasibility studies and environmental assessments, site visits, and stakeholder consultations. The EMP will be applied to all project components. The XPG, through its PMO, will be responsible for implementation of and compliance with the EMP, including mitigation measures, monitoring, and reporting. Qualified full-time environment officers will be assigned to the XPG PMO and local PMOs, and a training program has been included in the EMP. The project will contribute to the XPG's targets for environmental improvement, including afforestation and improved water quality. Risks include soil erosion and temporary disturbance to nearby residents (e.g., from dust and noise) during works; and air, soil, and/or water pollution during operations because of inadequate O&M of the project facilities. The outbreak and global spread of COVID-19 presents a risk to the health of workers and residents. The EMP incudes (i) mitigation measures to address the risks;and (ii) procedures for (a) erosion control and safe treatment and disposal of sewage and solid waste, and (b) preparation of a COVID-19 health and safety plan based on best practices.
Involuntary Resettlement The project will use 11,634.10 mu of land, including state-owned land occupation of 535.10 mu, permanent land acquisition of 98.59 mu, land use rights transfer of 9,860.00 mu, and land use for rural public infrastructure of 1,140.50 mu.26 In addition, the project will temporarily use 9.00 mu of land during construction. The project will not involve any physical house relocation. A total of 61 households with 261 persons will be affected permanently by land acquisition, of which 34 households with 151 persons will be significantly affected. A resettlement plan has been prepared in accordance with ADB's Safeguard Policy Statement and relevant laws and regulations of the PRC.27 The resettlement plan includes adequate compensation and livelihood restoration measures for affected persons. Surveys and consultations were undertaken with affected persons during the preparation of the resettlementplan. Affected persons will be further consulted during update and implementation of the resettlement plan. A grievance redress mechanism has been established and incorporated into the resettlement plan. Frameworks for land use rights transfer and land use for public infrastructure have been attached to the resettlement plan. While the XPG and the implementing agencies have capacity to implement domestically funded projects, their capacity will be strengthened to implement the resettlement plan and conduct internal monitoring in compliance with ADB's requirements.
Indigenous Peoples There are 368,307 ethnic minorities in the project area, mainly the Miao and Tujia people, comprising a majority of the project beneficiaries. They will benefit from (i) improved waste and sanitation management, (ii) development of local-featured ecological agricultural and forestry products, (iii) employment opportunities, and (iv) capacity development. While the ethnic minority groups have socioeconomic conditions similar to those ofthe Han population, the Miao and Tujia people have their own languages and cultural practices. An ethnic minority development plan has been prepared,28 which includes (i) benefits and targets for ethnic minorities; (ii) consultation, participation, and information disclosure; (iii) a grievanceredress mechanism; (iv) implementation and capacity building; and (v) monitoring and reporting requirements. The project will strengthen the capacity of the XPG and the implementing agencies to implement and monitor the ethnic minority development plan.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Kimura, Shingo
Responsible ADB Department East Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, EARD
Executing Agencies
Xiangxi Tujia & Miao Autonomous Prefectural Gov't
Timetable
Concept Clearance 23 Oct 2019
Fact Finding 01 Jul 2020 to 06 Jul 2020
MRM 21 Sep 2020
Approval 25 Jan 2021
Last Review Mission -
Last PDS Update 23 Sep 2022

Loan 4046-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Jan 2021 26 Mar 2021 22 Jun 2021 30 Jun 2027 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 420.73 Cumulative Contract Awards
ADB 200.00 17 Sep 2022 15.68 0.00 9%
Counterpart 220.73 Cumulative Disbursements
Cofinancing 0.00 17 Sep 2022 14.26 0.00 8%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory 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.


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
Hunan Xiangxi Rural Environmental Improvement and Green Development Project: External Social Monitoring Report No. 1 Social Monitoring Reports Oct 2022
Hunan Xiangxi Rural Environmental Improvement and Green Development Project: Environmental Monitoring Report (January-June 2022) Environmental Monitoring Reports Jul 2022
Hunan Xiangxi Rural Environmental Improvement and Green Development Project: Internal Social Monitoring Report No. 2 Social Monitoring Reports Apr 2022
Hunan Xiangxi Rural Environmental Improvement and Green Development Project: Environmental Monitoring Report (June-December 2021) Environmental Monitoring Reports Mar 2022
Hunan Xiangxi Rural Environmental Improvement and Green Development Project: Updated Resettlement Plan Resettlement Plans Jan 2022
Hunan Xiangxi Rural Environmental Improvement and Green Development Project: Updated Initial Environmental Examination Initial Environmental Examination Jan 2022
Hunan Xiangxi Rural Environmental Improvement and Green Development Project: Internal Social Monitoring Report No. 1 Social Monitoring Reports Oct 2021
Hunan Xiangxi Rural Environmental Improvement and Green Development Project: Initial Environmental Examination Initial Environmental Examination Sep 2020
Hunan Xiangxi Rural Environmental Improvement and Green Development Project: Ethnic Minority Development Plan Indigenous Peoples Plans/Indigenous Peoples Development Plans Aug 2020
Hunan Xiangxi Rural Environmental Improvement and Green Development Project: Resettlement Plan Resettlement Plans Aug 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
Consultant team for technical support, capacity development, and knowledge dissemination Firm - Consulting Closed 14 Jan 2022 14 Feb 2022
EXTERNAL ENVIRONMENTAL MONITORING AGENCY Firm - Consulting Closed 07 Sep 2021 08 Oct 2021
EXTERNAL RESETTLEMENT AND SOCIAL DEVELOPMENT MONITORING AND EVALUATION AGENCY Firm - Consulting Closed 07 Sep 2021 08 Oct 2021
PROJECT MANAGEMENT SUPPORT CONSULTANT TEAM Firm - Consulting Closed 07 Sep 2021 08 Oct 2021
INITIAL PROJECT MANAGEMENT SUPPORT(ENVIRONMENT) Individual - Consulting Closed 30 Nov 2020 06 Dec 2020
INITIAL PROJECT MANAGEMENT SUPPORT (LAND ACQUISITION AND RESETTLEMENT AND SOCIAL DEVELOPMENT) Individual - Consulting Closed 30 Nov 2020 06 Dec 2020
INITIAL PROJECT MANAGEMENT SUPPORT(PROCUREMENT AND PROJECT MANAGEMENT) Individual - Consulting Closed 30 Nov 2020 06 Dec 2020

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Construction or renovation of four centralized wastewater management systems (Longshan County) Loan 4046 24 Oct 2022 Henan Interstellar Construction Engineering Co., Ltd. | No. 3011, 3rd Flr, No. 30 Building, Wuzhou Xinshdai Square, Hua County, Anyang City, Henan Province Xiangxi Tujia & Miao Autonomous Prefectural Gov't 5,368,507.31 2,332,987.99
Const. of foot path and water circ. facility, plant community rest., works and eqpt. provision for water surface protection and mgmt, and eqpt provision for ethnic minority cultural products exhibition and sales facility in Longhsan County Banyue Lake Loan 4046 23 Sep 2022 Hunan Xiezhou Project Management Co.,Ltd. | 4th floor, Jingtu Commercial Plaza, No. 18 Chuangye Avenue, Chengjiao Street, Ningxiang City, Changsha City, Hunan Province Xiangxi Tujia & Miao Autonomous Prefectural Gov't 2,547,444.86 1,094,052.95
Construction of facilities for cold storage, processing, packaging, exhibition, logistics, etc. for Guzhang County Loan 4046 22 Jul 2022 Hunan Xiezhou Project Management Co., Ltd. | Group 11, Ziyun Village, Lijingpu Township, Ningxiang County Xiangxi Tujia & Miao Autonomous Prefectural Gov't 9,204,587.08 9,204,314.13
Construction of facilities for cold storage, processing, packaging, exhibition, logistics, traceability system, e-commerce platform, etc. for Yongshun County Loan 4046 12 Jul 2022 Dujiang Construction Group Co., Ltd | Room 1903, Building 2, District B, Diecaifeng Garden, No. 55, Section 1, South Second Ring Road, Yuhua District, Changsha City Xiangxi Tujia & Miao Autonomous Prefectural Gov't 9,076,439.43 9,017,629.97
External Environmental Monitoring Agency Loan 4046 11 Jul 2022 Wuhan Yunhaicheng Consulting Co., Ltd. | A-913, Building 1, Guanggu International Chamber of Commerce Building, 2-2 Guandongyuan Road, East Lake New Technology Development Zone, Wuhan, People's Republic of China Xiangxi Tujia & Miao Autonomous Prefectural Gov't 103,918.12 103,537.55
External Resettlement and Social Development Monitoring and Evaluation Agency Loan 4046 11 Jul 2022 Hangzhou Darren Engineering Project Management Company Limited | 248 Tower No.3, Zonghe Building, No.699, Linding Raod, Dingqiao Town, Jiangan District, Hangzhou, Zhejiang Province Xiangxi Tujia & Miao Autonomous Prefectural Gov't 221,800.50 220,988.21
Project management support consultant team Loan 4046 23 May 2022 NAREE Consulting Ltd. | Room 716, Building A, Beijing Fortune Plaza, No. 7 East 3rd Ring Road, Chaoyang District, Beijing, PRC Xiangxi Tujia & Miao Autonomous Prefectural Gov't 1,024,874.65 1,024,874.65
Equipment for garbage collection and sanitation publicity in Huayuan County Loan 4046 03 May 2022 Hunan Crossover Automobile Sales Co., Ltd. | Building 11, Zone P, Zhongnan Automobile World, Xianglong Sub-district Office, Changsha County, Hunan Province Xiangxi Tujia & Miao Autonomous Prefectural Gov't 1,217,152.39 1,198,734.50