China, People's Republic of : Innovation-Driven Green Economic Diversification for Resource-Exhausted Cities in Heilongjiang

Sovereign Project | 54037-001

The Government of the People''s Republic of China (PRC) has requested knowledge and support technical assistance (TA) from the Asian Development Bank (ADB) on innovation-driven green economic diversification for resource-exhausted cities in Heilongjiang Province. The TA will build on previous ADB projects in the northeast of the PRC and provide support in research, strategic planning, policy recommendations, and knowledge dissemination to advance innovation as part of a comprehensive strategy to enable green economic diversification.

The TA is included in the list of projects agreed between ADB and the Government of the PRC on 22 January 2020. The TA is in line with ADB''s Strategy 2030, which supports the operational priority on making cities more livable; the corresponding operational plan; and ADB''s country partnership strategy for the PRC, 2016-2020.

Project Details

  • Project Officer
    Bai, Jie
    Sectors Group
    Request for information
  • Country/Economy
    China, People's Republic of
  • Sector
    • Water and other urban infrastructure and services
Project Name Innovation-Driven Green Economic Diversification for Resource-Exhausted Cities in Heilongjiang
Project Number 54037-001
Country / Economy China, People's Republic of
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6593-PRC: Innovation-Driven Green Economic Diversification for Resource-Exhausted Cities in Heilongjiang
Technical Assistance Special Fund US$ 400,000.00
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

Water and other urban infrastructure and services / Urban policy, institutional and capacity development

Gender No gender elements
Description

The Government of the People''s Republic of China (PRC) has requested knowledge and support technical assistance (TA) from the Asian Development Bank (ADB) on innovation-driven green economic diversification for resource-exhausted cities in Heilongjiang Province. The TA will build on previous ADB projects in the northeast of the PRC and provide support in research, strategic planning, policy recommendations, and knowledge dissemination to advance innovation as part of a comprehensive strategy to enable green economic diversification.

The TA is included in the list of projects agreed between ADB and the Government of the PRC on 22 January 2020. The TA is in line with ADB''s Strategy 2030, which supports the operational priority on making cities more livable; the corresponding operational plan; and ADB''s country partnership strategy for the PRC, 2016-2020.

Project Rationale and Linkage to Country/Regional Strategy

Economic development of resource-dependent cities relies on the extraction and basic processing of natural resources. Cities with declining resource-dependent development and accumulative recovered reserves exceeding 70% of recoverable reserves are defined as resource-exhausted cities, and are facing more urgent needs for economic diversification. Heilongjiang Province is part of the northeast of the PRC and has a population of 37.73 million in 2019. With resource-dependent industry as one of its economic pillars, the province has been losing its growth momentum since the late 1990s, going through economic recession and population outflow. The province has 10 officially listed resource-exhausted cities, or 14% of the total number in the PRC. Heilongjiang''s resource-exhausted cities face development challenges, including economic underperformance, business failures, rising unemployment, decreased tax revenue, and difficulty in making new investments. The cities' gross domestic product and per capita disposable income are below the province's average. They also suffer from severe environmental degradation caused by extraction of natural resources, high energy consumption, and highly polluting industrial emissions.

The PRC''s new urbanization and ecological civilization agenda recognizes that the economic transformation and sustainable development of resource-exhausted cities is an important strategy. The national government and the Heilongjiang Provincial Government have formulated development plans to transform their singular and resource-dependent economy towards a more diverse, high-value, and low-carbon development. Guided by these plans, the governments of these resource-exhausted cities have identified their target pillar industries, including advanced equipment and technological equipment manufacturing, new raw material industry, modern agriculture, and modern services. Initial progress has been made in urban infrastructure improvement, reconstruction of shantytowns and industrial and mining areas, and environmental remediation. However, much remains to be done. Because the validity period of current development plans ends in 2020, Heilongjiang Province is preparing new plans to continue to guide the long and comprehensive diversification process, i.e., through the Fourteenth Five-Year Plan, 2021-2025 and beyond.

Current development plans recognize innovation as one of the key drivers of green economic diversification, but the innovation capacity of the resource-exhausted cities is still relatively low. This has constrained effective technology transfer, entrepreneurial activities, and competitive business models and financial instruments, which are needed for the key diversification tasks of developing small and medium-sized enterprises and high-value green industries (such as green food processing and tourism). The long-standing insular economy and dominance of large state-owned enterprises in Heilongjiang have dampened the spirit of innovation in local society. The lack of awareness and weak incentive mechanism for human capital retention has led to a shortage of innovative human capital, including entrepreneurs, managers, and technical professionals. Although innovation facilities and platforms have been developed in Heilongjiang, the innovation systems remain weak in terms of inter-organizational cooperation, intermediary services, and other regulatory frameworks. Heilongjiang Province needs to comprehensively address these gaps from social, human capital development, and institutional aspects in the new development plans for resource-exhausted cities, placing innovation-enabling systems and institutions at the forefront.

Impact

Sustainable development of resource-dependent cities enabled

Project Outcome
Description of Outcome

Innovation-driven green economic diversification development planning for resource-exhausted cities in Heilongjiang strengthened

Progress Toward Outcome The TA became effective on 8 December 2020. An extension of the TA completion date by 12 months from 30 November 2022 to 30 November 2022 is proposed to allow sufficient time to carry out the remaining activities and achieve the intended TA outputs and outcome. The TA implementation was delayed because (i) two changes in consultant team leader at the start-up stage; and (ii) interruption by coronavirus disease (COVID-19) control in Heilongjiang Province for 6 times in 2021 and further lockdowns in 2022. In particular, the COVID-19 control and lockdowns have significantly delayed the onsite surveys to the target cities, which are critical to deliver the TA outputs. With the requested extension, the TA implementation schedule is adjusted to deliver the planned TA outputs.
Implementation Progress
Description of Project Outputs

Research on innovation-driven green economic diversification for resource-exhausted cities produced

Innovation-driven green economic diversification strategy and policy framework for resource-exhausted cities proposed

Knowledge on innovation-driven green economic diversification for resource-exhausted cities enhanced

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

All national consultants have been mobilized. The engagement of individual consultants was completed on 14 June 2021. The draft inception report was submitted to the executing and implementing agencies and ADB and the official inception workshop was held on 13-14 January 2022. Consultation and interim workshop with local stakeholders as well as field visits in Heilongjiang for data collection and consultation, and selected cities for national study are expected to be finished by December 2022. The draft strategy and roadmap and the draft policy framework are for submission by December 2022. The TA's final reports on assessment of innovation capacity and international and national best practices are to be submitted by November 2023.

Geographical Location Heilongjiang
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services ADB will engage the consultants following the ADB Procurement Policy (2017, as amended from time to time) and its associated procurement staff instructions.
Procurement ADB will carry out procurement following the ADB Procurement Policy (2017, as amended from time to time) and its associated procurement staff instructions.
Responsible ADB Officer Bai, Jie
Responsible ADB Department Sectors Group
Responsible ADB Division Water and Urban Development Sector Office (SG-WUD)
Executing Agencies
Heilongjiang Provincial Finance Department
Timetable
Concept Clearance 14 Sep 2020
Fact Finding 15 Jul 2020 to 15 Jul 2020
MRM -
Approval 16 Nov 2020
Last Review Mission -
Last PDS Update 30 Sep 2022

TA 6593-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
16 Nov 2020 08 Dec 2020 08 Dec 2020 30 Nov 2022 29 Feb 2024 05 Apr 2024
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
400,000.00 0.00 0.00 0.00 0.00 0.00 400,000.00 04 May 2024 288,277.12

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.

None currently available.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

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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
National Simulation Specialist/Team Leader Individual - Consulting Closed
TA Coordinator Individual - Consulting Closed
National Economic Diversification Specialist/Team Leader Individual - Consulting Closed
National Economic Diversification Specialist/Team Leader Individual - Consulting Closed
National Innovation Driven-Growth Specialist Individual - Consulting Closed
National Innovation-enabling Policy and Institution Specialist Individual - Consulting Closed
International Innovation-Driven Growth Specialist Individual - Consulting Closed
National Simulation Specialist Individual - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.