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
    Dei Castelli, Nicolas
    East Asia Department
    Request for information
  • Approval Date
    7 September 2022
  • 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 53079-001
Country / Economy China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4209-PRC: Guangxi Li River Comprehensive Ecological Management and Demonstration Project
Ordinary capital resources US$ 140.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
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

Gender Equity and Mainstreaming Effective gender mainstreaming
Description 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.

Impact

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
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)
Geographical Location Guilin
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples A
Summary of Environmental and Social Aspects
Environmental Aspects Category A for environment. The category will be confirmed based on the environmental due diligence.
Involuntary Resettlement Category B for involuntary resettlement. The category will be confirmed based on the social safeguards due diligence.
Indigenous Peoples Category A for indigenous people. The category will be confirmed based on the social safeguards due diligence.
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
Procurement 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 Dei Castelli, Nicolas
Responsible ADB Department East Asia Department
Responsible ADB Division EASI
Executing Agencies
Guilin Development Reform
Timetable
Concept Clearance 27 Dec 2019
Fact Finding 26 May 2021 to 18 Jun 2021
MRM 08 Jun 2022
Approval 07 Sep 2022
Last Review Mission -
Last PDS Update 07 Sep 2022

Loan 4209-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
07 Sep 2022 - - 30 Sep 2027 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 357.60 Cumulative Contract Awards
ADB 140.00 14 Sep 2022 0.00 0.00 0%
Counterpart 217.60 Cumulative Disbursements
Cofinancing 0.00 14 Sep 2022 0.00 0.00 0%

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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

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Tenders

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Contracts Awarded

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