China, People's Republic of : Anhui Chao Lake Environmental Rehabilitation Project (Phase 2)

Sovereign Project | 55048-001

The proposed project continues to enhance institutional strengthening and long-term engagement in the lake basin based on the experience gained through a previous Asian Development Bank (ADB)-financed investment project. It will demonstrate ecosystem-based management and climate-resilient development in Chao Lake basin by strengthening institutional capacity and knowledge for integrated lake basin management, establishing a digital Chao Lake decision support system, piloting an innovative climate-resilient investment fund through a financial intermediation loan (FIL) component and an eco-compensation mechanism, and implementing low-carbon solutions to enhance water quality and ecological restoration. The project will improve the ecosystem health and benefit 2.85 million people living in the basin area. Project activities can be replicated in other provinces in the People's Republic of China (PRC) and regional member countries of the ADB.

Project Details

  • Project Officer
    Chu, Chenglong
    Sectors Group
    Request for information
  • Country/Economy
    China, People's Republic of
  • Sector
    • Agriculture, natural resources and rural development
Project Name Anhui Chao Lake Environmental Rehabilitation Project (Phase 2)
Project Number 55048-001
Country / Economy China, People's Republic of
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4369-PRC: Anhui Chao Lake Environmental Rehabilitation Project (Phase 2)
Ordinary capital resources US$ 224.00 million
Operational Priorities 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
Sector / Subsector

Agriculture, natural resources and rural development / Land-based natural resources management - Rural flood protection - Rural water policy, institutional and capacity development - Water-based natural resources management

Water and other urban infrastructure and services / Urban flood protection - Urban sewerage

Gender Effective gender mainstreaming
Description The proposed project continues to enhance institutional strengthening and long-term engagement in the lake basin based on the experience gained through a previous Asian Development Bank (ADB)-financed investment project. It will demonstrate ecosystem-based management and climate-resilient development in Chao Lake basin by strengthening institutional capacity and knowledge for integrated lake basin management, establishing a digital Chao Lake decision support system, piloting an innovative climate-resilient investment fund through a financial intermediation loan (FIL) component and an eco-compensation mechanism, and implementing low-carbon solutions to enhance water quality and ecological restoration. The project will improve the ecosystem health and benefit 2.85 million people living in the basin area. Project activities can be replicated in other provinces in the People's Republic of China (PRC) and regional member countries of the ADB.
Project Rationale and Linkage to Country/Regional Strategy Chao Lake is the fifth largest freshwater lake in the PRC. Situated in the lower reaches of the Yangtze River basin, the lake has a total basin area of 13,544.7 square kilometers and a surface area of 780 square kilometers. Chao Lake is a natural u-shaped shallow lake with an average depth of 3.18 meters and 33 tributaries. The Yuxi River is the only outflowing river connecting to the Yangtze River. The upper reaches of the lake are surrounded by the Dabie mountain in the west, the Jianghuai watershed in the north, and the Chuhe river valley in the northeast. The Chao Lake basin area has a total population of 11.8 million, of which over 60% are living in rural areas. Hefei is the largest prefectural-level city and accounts for 54% of the total basin area. Chao Lake is a vital ecoregion in the Yangtze River Economic Belt (YREB). The lake provides ecosystem services, including drinking water, freshwater for agriculture, fishing, industry, transport, recreation, and tourism. The lake serves as habitat to a large variety of aquatic biota and wetlands including 46 endemic species. The northern forest areas near the Jianghuai hills are a buffer for soil erosion control, climate regulation, and water-related risks. The lake is recognized as a key region in national policies including within the 14th Five-Year Plan for Comprehensive Water Environment Management Plan for Key River Basins. Effective management of Chao Lake is of critical importance for its preservation as a beneficial resource for humans and nature.
Impact

Ecological resilience and rural livelihoods enhanced in the Yangtze River Economic Belt (Yangtze River Economic Belt Development Plan, 20162030)

Project Outcome
Description of Outcome

Ecosystem-based management and climate-resilient development of Chao Lake basin improved

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Institutional strengthening, capacity and knowledge on integrated lake water management enhanced

Digital Chao Lake decision support system (DSS) for environmental and climate risk monitoring established

Innovative green financing and eco-compensation mechanisms piloted

Integrated low-carbon and climate-resilient solutions for ecological restoration demonstrated

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Anhui
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects An initial environment examination (IEE) has been prepared and disclosed on ADB's website in accordance with ADB's Safeguard Policy Statement (2009) and relevant laws and regulations of the PRC. This includes an environmental management plan (EMP), which will be applied to outputs 1, 2, 4 and will also cover the eco-compensation mechanism under output 3; and a project-specific grievance redress mechanism which will be applied to all project components. An environmental and social management system (ESMS) for safeguard management for the FIL (under output 3) has also been prepared. The environmental impact assessment, EMP, and ESMS are based on the approved domestic feasibility studies, environmental assessment reports, site visits, and stakeholder consultations. Consultations included affected people and local government agencies, and the outcomes were integrated in the project design. The APG, through the PMO, will implement the EMP. The ESMS will be implemented by JEDZI. The PMO and ADB confirmed that the FIL will not support any subproject that would meet the definition of category A for environment. The project is designed to achieve environmental benefits through (i) enhanced capacity in integrated lake management, (ii) reduced wastewater discharge, (iii) improved water quality and flood resistance capacity, (iv) expanded modified habitats with increased biodiversity, (v) reduced application of chemical fertilizers and pesticides, and (vi) increased social and economic benefits. The environmental risks include increased soil erosion, damage to aquatic habitats and hydrological impacts due to the dredging and embankment works, temporary construction noise, inappropriate or uncontrolled solid waste disposal, and occupational and community health and safety. Detailed mitigation measures to minimize and mitigate potential construction and operational environmental impacts are included in the EMP and the ESMS.
Involuntary Resettlement The project involves various types of land use, including: (i) state-owned land occupation of 1,554.99 mu; (ii) permanent acquisition of 546.18 mu collective land; (iii) voluntary land use for rural public infrastructure of 3.45 mu; and (iv) voluntary land use right transfer of 113.51 mu. The project will temporarily use 765.03 mu land during construction of civil works. The project does not involve any physical displacement nor demolition of houses. The permanent land acquisition involves 261 affected households with 1,008 persons, and 115 persons will be significantly affected. Due diligence confirmed that there are no outstanding or legacy issues regarding completed land acquisition and resettlement for existing or associated facilities. A resettlement plan was prepared and disclosed on ADB's website in accordance with ADB's Safeguard Policy Statement and relevant laws and regulations of the PRC. It includes adequate measures of compensation and rehabilitation for affected people. Surveys and consultations were undertaken with affected people during project preparation. Affected people will be further consulted for updating and implementation of the plan during project implementation. A grievance redress mechanism was incorporated into the resettlement plan. Land use right transfer and land use for rural public infrastructure frameworks have been prepared for voluntary land use arrangements for subprojects that will be finalized during project implementation. The CRIF will only support category C subprojects on involuntary resettlement. Measures to screen and avoid involuntary resettlement impacts are included in the ESMS.
Indigenous Peoples The project does not involve impacts on ethnic minority communities that would trigger Safeguard Policy Statement requirements on indigenous peoples. The climate risk investment fund will involve only Category C subprojects for indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Advance contracting will be undertaken for (i) procurement of consulting services for the project implementation support; and (ii) nonconsulting services for capacity building on project management and technical training. Retroactive financing will not be used.
Procurement The overall procurement risk is low. ADB carried out strategic procurement planning to identify procurement risks, develop mitigating measures, review procurement options, and agree on fit for purpose procurement arrangements. The procurement staff appointed at the executing agency and implementing agencies have over 5 years' procurement management experience in river basin and environmental management, including through the ADB-financed project (footnote 10). Value for money will be achieved by (i) reasonable contract packaging to fit for purpose and ensure adequate competition, (ii) utilizing existing facilities of public resource trading centers for open competitive bidding procurement, and (iii) recruiting an experienced procurement agent and project implementation support consultants. With the support provided, the PMO and the implementing agencies will have adequate capacity to facilitate project procurement in compliance with the ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Responsible ADB Officer Chu, Chenglong
Responsible ADB Department Sectors Group
Responsible ADB Division Agriculture, Food, Nature, and Rural Development Sector Office (SG-AFNR)
Executing Agencies
Anhui Provincial Government
Timetable
Concept Clearance 15 Jul 2021
Fact Finding 01 Dec 2022 to 09 Dec 2022
MRM 15 May 2023
Approval 31 Oct 2023
Last Review Mission -
Last PDS Update 31 Oct 2023

Loan 4369-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Oct 2023 28 Dec 2023 27 Mar 2024 30 Jul 2031 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 438.01 Cumulative Contract Awards
ADB 224.00 21 May 2024 1.70 0.00 1%
Counterpart 214.01 Cumulative Disbursements
Cofinancing 0.00 21 May 2024 0.00 0.00 0%

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.

Tenders

Tender Title Type Status Posting Date Deadline
Project Implementation Supporting Consulting Services Firm - Consulting Closed

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Project Implementation Supporting Consulting Services Loan 4369 10 Apr 2024 Joint Venture of NAREE Consulting Limited and NAREE International Limited | Room 716, Building A, Beijing Fortune Plaza, No. 7 East 3rd Ring Road, Chaoyang District, Beijing, People's Republic of China Anhui Provincial Government 1,703,431.01 1,703,431.01

Procurement Plan

Title Document Type Document Date
Anhui Chao Lake Environmental Rehabilitation Project (Phase 2): Procurement Plan Procurement Plans Feb 2024