China, People's Republic of : Guangxi Li River Comprehensive Ecological Management and Demonstration Project (formerly Guangxi Guilin Comprehensive Ecological Rehabilitation)

Agriculture, natural resources and rural development / Rural sanitation

Transport / Urban public transport - Water transport (non-urban)

Water and other urban infrastructure and services / Other urban services - Renovation and protection of cultural heritage - Urban flood protection - Urban policy, institutional and capacity development - Urban sanitation

- Strategic context. Guangxi Zhuang Autonomous Region (GZAR) remains one of the poorer provinces, with per capita gross domestic product of CNY37,712, ranking 27th out of 31 provinces. About 9.9% of the population is living below the poverty line compared with the national average of 5.2%. A significant part of GZAR is mountainous and it has the largest ethnic minority population in the PRCaccounting for 37.1% of GZAR's total population in 2015.

- Government Strategy. One of the overall objectives of the Thirteenth Five Year Plan for Guangxi Tourism Development3 is to alleviate poverty through tourism and Guilin is being planned to become a world-class tourist city and an international tourist destination. In 2015, there were estimated three million population living in poverty in rural villages; and as stated in the Thirteenth Five Year Plan for Guilin, they plan to have all population lifted out of poverty by 2020..

- Inadequate waste management and climate proofing along the Li River. The Li River has significant importance to the livelihood of Guangxi. It crosses two counties and four districts: Lingchuan and Yangshuo Counties, and Yanshan, Qixing, Xiangshan and Diecai districts. Liquid and solid sanitary waste are disposed directly to the river polluting the water. While the river has quality standard 2, it is in danger of becoming degraded as the inflow of tourists increases and because several villages along the river do not have proper sewerage facilities. It is necessary to improve the facilities in these villages to protect the river. The Li River is also the lifeblood of Guilin which tourists flock to. Based on the initial climate risk screening using AWARE tool, the potential climate risk to the Project is medium. A climate risk assessment (CRA) study will be conducted, and the findings of the CRA study will be incorporated in the project design. Climate proofing the project sites would ensure sustainability of the facilities, and proper mitigation measures will be taken to avoid the increased sediment in the Li River.

- Limited infrastructure and connections of heritage site villages. Some heritage site villages cannot be reached through the river due to shallow waters and lack of docks. Due to this limited accessibility raw materials and agricultural products produced in the hinterlands cannot reach urban areas. Moreover, tourists also cannot reach these villages which have living cultural heritage and traditional values, which contribute to inter-cultural understanding and tolerance.

- Lack of income generating activities for villagers. Guilin has three poverty-stricken counties (Longsheng, Ziyuan and, Guanyang) and 510 poverty-stricken villages. At the end of 2018, Longsheng and Ziyuan were lifted out of poverty, and Guanyang is expected to take off the poverty hat at the end of 2019. By the end of 2018, 129 out of 510 poverty-stricken villages have not been lifted out of poverty. Among the 129 poverty-stricken poor villages, eight have a lower incidence of poverty than the national incidence of poverty, and the other 121 villages are higher than the national incidence of poverty. It is important to assist these people by creating more jobs and raising their incomes.

- Inadequate capacity for river management and sustainable tourism development. Institutions in Guilin lack the capacity to manage and protect the Li river, particularly considering the growth in tourism. In addition, the tourism sector does not show the level of professionalism and service quality required of world class tourist destinations. Business models for innovative and sustainable tourism practices are also inadequate. To address these issues, capacity of individuals and institutions need to be strengthened.

Environmental improvement of the Li River and balanced rural development in Guilin achieved

Environmental and economic conditions in Guilin improved

Institutional capacity and knowledge in river management and sustainable tourism strengthened

River ecological protection infrastructure enhanced

Sustainable village preservation and low-carbon tourism facilities implemented