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

Sovereign Project | 53079-001

The proposed project aims to improve livelihood of poor villages in Guilin and ecological protection of the Li River through restoration of Li River and old ethnic minority villages

Project Details

  • Project Officer
    Niu, Zhiming
    Sectors Group
    Request for information
  • Country/Economy
    China, People's Republic of
  • Sector
    • Water and other urban infrastructure and services
Project Name
Guangxi Li River Comprehensive Ecological Management and Demonstration Project (formerly Guangxi Guilin Comprehensive Ecological Rehabilitation)
Project Number
Country / Economy
  • China, People's Republic of
Project Status
Project Type / Modality of Assistance
  • Loan
Source of Funding / Amount
Loan 4209-PRC: Guangxi Li River Comprehensive Ecological Management and Demonstration Project
Source Amount
Ordinary capital resources US$ 140.00 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
  • 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

Effective gender mainstreaming
The proposed project aims to improve livelihood of poor villages in Guilin and ecological protection of the Li River through restoration of Li River and old ethnic minority villages
Project Rationale and Linkage to Country/Regional Strategy

- 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

Project Outcome

Description of Outcome

Environmental and economic conditions in Guilin improved

Progress Toward Outcome
to be evaluated by project completion

Implementation Progress

Description of Project Outputs

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

Status of Implementation Progress (Outputs, Activities, and Issues)
The loan project became effective dated 15 March 2023. As of Q3 2023, the project implementation is generally on track with three consulting service contracts awarded and the three individual project start-up consultants are mobilized to support the project implementation.
Geographical Location

Safeguard Categories

Involuntary Resettlement
Indigenous Peoples

Summary of Environmental and Social Aspects

Environmental Aspects
The project is classified category B for environment. Two initial environmental examinations, including environmental management plans (EMPs), have been prepared in accordance with the Safeguard Policy Statement based on the domestic environmental impact assessment reports, feasibility study reports, site visits, and consultations with stakeholders for the Longsheng county and Li River subprojects. The project is expected to have positive impacts on the environment as it will intercept and treat wastewater, prevent soil erosion through ecological rehabilitation of riverbanks, and promote sustainable transport. Anticipated impacts during constructionincluding soil erosion, noise, dust emissions, construction waste and wastewater, and occupational and community health and safetyare mostly temporary, predictable, and reversible. Potential impacts during operation include increase in tourists, waste and wastewater, noise, and occupational and community health and safety. These impacts can be mitigated through adherence to national regulations and implementation of the EMPs. Meaningful public consultations were conducted and will continue throughout project implementation. A grievance redress mechanism (GRM) will be established to address social and environmental safeguard-related grievances for the project. Sufficient budget will be allocated in the EMPs to ensure the proper implementation of mitigation and monitoring measures during construction and operation of the project. The PMO will recruit a full-time qualified environment officer to supervise the implementation of the EMPs and act as the entry point of the GRM, and engage consultants to assist project implementation and compliance and conduct external monitoring. Environmental monitoring reports will be submitted to ADB semiannually during construction and annually during operation. The initial environmental examinations disclosed on ADB's website will be updated as necessary during detailed designs and if unanticipated impacts are identified during project implementation. A climate risk and adaptation assessment has been conducted and the findings of the assessment will be incorporated in the project design.
Involuntary Resettlement
The project is classified category B for involuntary resettlement. The project will use 707.31 mu of land as follows: 356.84 mu of state-owned land, 298.43 mu of permanently acquired collective land, and 52.04 mu of land for rural public infrastructure. The project will not involve any physical displacement. In addition, the project will occupy 524.81 mu of land temporarily during construction, affecting 136 households with 488 people. A total of 23 households with 89 people will be affected permanently by collective land acquisition, and no households will be significantly affected. Two resettlement plans have been prepared in line with the Safeguard Policy Statement and the PRC's laws and regulations. The resettlement plans include adequate compensation and livelihood restoration measures for affected people. Surveys and consultations were undertaken with affected people during preparation of the resettlement plans. Affected people will be further consulted during the update and implementation of the resettlement plans. A GRM has been established and incorporated into the resettlement plans. A framework for voluntary land use for rural public infrastructure is attached to the resettlement plans. While the PMO and the implementing agencies have the capacity to implement domestically funded projects, each implementing agency has designated resettlement staff and the project implementation consultants will provide training and support. An external agency will be engaged by the PMO to monitor and evaluate the implementation of the resettlement plans and submit semiannual monitoring reports to ADB.
Indigenous Peoples
The project is classified category A for indigenous peoples. Broad community support is required because of project activities involving cultural resources and knowledge of ethnic minorities, i.e., rehabilitation and improvement of infrastructure and cultural facilities in 11 ethnic minority villages in Longsheng county. There are 18,727 ethnic minority people, mainly the Dong, Miao, Yao, and Zhuang people, accounting for 94.5% of the total population in these villages. Ethnic minority villages and groups will benefit from training and capacity building, more jobs and income-generation opportunities, tourism, improved public infrastructure and municipal services, and better living conditions. An ethnic minority development plan (EMDP) has been prepared to ensure that ethnic minorities benefit equitably and in a culturally appropriate manner from the project and potential negative impacts can be minimized. A GRM has been established and incorporated into the EMDP. The relevant implementing agency will implement the EMDP, and an external monitoring agency will be engaged by the PMO to monitor and evaluate its implementation and submit semiannual monitoring reports. The Li River subproject will not involve ethnic minority communities.

Stakeholder Communication, Participation, and Consultation

During Project Design
During project design and implementation stage, a joint project management office (PMO) is envisaged to be setup within the EA. Project due diligence is currently ongoing.
During Project Implementation

Business Opportunities

Advance contracting and retroactive financing will be pursued in line with ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time) to facilitate project implementation in goods, works, non-consulting and consulting services. The government has been advised that advance contracting and retroactive financing do not commit ADB to finance the project.


Responsible ADB Officer
Niu, Zhiming
Responsible ADB Department
Sectors Group
Responsible ADB Division
Agriculture, Food, Nature, and Rural Development Sector Office (SG-AFNR)
Executing Agencies
Guilin Municipal Government


Concept Clearance
27 Dec 2019
Fact Finding
26 May 2021 to 18 Jun 2021
08 Jun 2022
07 Sep 2022
Last Review Mission
Last PDS Update
20 Sep 2023


Loan 4209-PRC

Approval Signing Date Effectivity Date Closing
Original Revised Actual
07 Sep 2022 15 Dec 2022 15 Mar 2023 30 Sep 2027 - -
Financing Plan
  Total (Amount in US$ million)
Project Cost 357.60
ADB 140.00
Counterpart 217.60
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 06 Jun 2024 1.68 0.00 1%
Cumulative Disbursements 06 Jun 2024 10.00 0.00 7%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory 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.

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.

  • 08 Sep 2022 | News Release

    ADB to Support Preservation of Guilin in PRC

    ADB has approved a $140 million loan to improve the environmental and economic conditions in Guilin in the Guangxi Zhuang Autonomous Region of the People’s Republic of China.


Tender Title Type Status Posting Date Deadline
External safeguard monitoring: Environmental Firm - Consulting Active
Project management and implementation support Firm - Consulting Active
External safeguard monitoring: Social and Resettlement Firm - Consulting Active
Start-up consultants�Environmental Specialist Individual - Consulting Closed
Start-up consultants�Project management and procurement specialist Individual - Consulting Closed
Start-up consultants�Social and Resettlement Specialist Individual - Consulting Closed

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
LR-MC-G01: Supply of E-rafts Loan 4209 27 May 2024 Joint Venture of Guangxi Guilin Jiasheng Construction Engineering Co., Ltd. and ePropulsion and Yangshuo County Shen's Bamboo Raft Processing Factory | 16th Floor, No. 2 of Anqing Plaza, Hongling Road, Xiufeng District, Guilin City, Guangxi Autonomous Region; Room 801, Block 1, No.11 of Daxue Road, Songshanhu District, Dongguang City, Guangdong Province; Shenjiazha No. 32, Yangshuo Town, Yangshuo County Guilin Municipal Government 1,541,533.95 1,541,533.95

Procurement Plan