Project Administration Manual
Project Number: 48024-002 October 2016
People’s Republic of China: Chongqing Integrated Logistics Demonstration Project
Contents
ABBREVIATIONS I. PROJECT DESCRIPTION ...... 1 A. Background and Rationale ...... 1 B. Impact and Outcome ...... 3 C. Outputs ...... 3 II. IMPLEMENTATION PLAN ...... 5 A. Project Readiness Activities ...... 5 B. Overall Project Implementation Plan ...... 6 III. PROJECT MANAGEMENT ARRANGEMENT ...... 8 A. Project Implementation Organization – Roles and Responsibilities………………... 8 B. Key Persons Involved in Implementation……………………………………………..10 C. Project Organization Structure…………………………………………………………12 IV. COST AND FINANCING ...... 13 A. Cost Estimates Preparation and Revisions…………………………………………...13 B. Cost Categories………………………………………………………………………….13 C. Assumptions…………………………………………………………………………….. 13 D. Summary Cost Estimates and Financing Plan……………………………………….14 E. Detailed Cost Estimate by Expenditure Category……………………………………16 F. Allocation and Withdrawal of Loan Proceeds………………………………………...17 G. Detailed Cost Estimate by Financier…………………………………………………..18 H. Detailed Cost Estimate by Outputs…………………………………………………….19 I. Detailed Cost Estimate by Year…………………………………………….………….20 J. Contract Awards and Disbursement S-Curve……………………………………… 21 K. Fund Flow Mechanism…………………………………………………………………. 22 V. FINANCIAL MANAGEMENT ...... 23 A. Financial Management Assessment ...... 23 B. Disbursement...... 24 C. Accounting ...... 25 D. Auditing ...... 25 VI. PROCUREMENT AND CONSULTING SERVICES ...... 26 A. Advance Contracting and Retroactive Financing ...... 26 B. Procurement of Goods, Works and Consulting Services ...... 27 VII. GOVERNANCE ...... 28 VIII. POVERTY AND SOCIAL IMPACT ...... 28 IX. SAFEGUARDS ...... 29 A. Environment ...... 29 B. Involuntary Resettlement ...... 31 C. Ethnic Minorities ...... 34 D. Other Requirements that apply to all Safeguards ...... 34 X. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION ...... 36 A. Design and Monitoring Framework ...... 36 B. Monitoring ...... 39 C. Evaluation ...... 41 D. Reporting ...... 41 E. Stakeholder Communication and Participation ...... 44 X. ANTICORRUPTION POLICY ...... 44 XI. ACCOUNTABILITY MECHANISM ...... 45
XII. RECORD OF PAM CHANGES ...... 46
Appendixes:
Appendix I – Procurement Plan ...... 47 Appendix II – Consultant’s Terms of Reference ...... 56 Appendix III – Environmental Management Plan ...... 68
Project Administration Manual Purpose and Process
1. The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with Government and Asian Development Bank (ADB) policies and procedures. The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM.
2. The Chongqing Municipal Government (CMG), the executing agency; Chongqing Transportation Holding Group Company (CQTG), the implementing agency; Chongqing Transportation Logistics Company (CQTLC), Chongqing Highway Transportation Company (CQHTC), Chongqing Ship Company (CQSC), Chongqing Intelligent Logistics Development Company (CQILC), the project implementing units, are wholly responsible for the implementation of the ADB financed project, as agreed jointly between the borrower and ADB, and in accordance with Government and ADB’s policies and procedures. ADB staff is responsible to support implementation including compliance by CMG, CQTG, CQTLC, CQHTC, CQSC, and CQILC of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures.
3. At Loan Negotiations the borrower and ADB shall agree to the PAM and ensure consistency with the Loan agreement. Such agreement shall be reflected in the minutes of the Loan Negotiations. In the event of any discrepancy or contradiction between the PAM and the Loan Agreement, the provisions of the Loan Agreement shall prevail.
4. After ADB Board approval of the project's report and recommendations of the President (RRP) changes in implementation arrangements are subject to agreement and approval pursuant to relevant Government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval they will be subsequently incorporated in the PAM.
Abbreviations
ADB - Asian Development Bank AH - affected households CNY - Chinese Yuan CQTG - Chongqing Transportation Holding Group Company CQTLC - Chongqing Transportation Logistics Company CQHTC - Chongqing Highway Transportation Company CQSC - Chongqing Ship Company CQILC - Chongqing Intelligent Logistics Development Company DDR - due diligence report DMF - design and monitoring framework DRC - Development and Reform Commission FB - finance bureau EIA - environmental impact assessment EIRR - economic internal rate of return EMP - environmental management plan EMS - environmental monitoring stations EPB - Environmental Protection Bureau FIRR - financial internal rate of return FMA - financial management assessment FSR - feasibility study report GAP - gender action plan GDP - gross domestic product GRM - grievance redress mechanism ITS - intelligent transportation system LAR - land acquisition and resettlement LRB - Land Resource Bureau LEED - Leadership in Energy and Environmental Design LIEC - loan implementation environmental consultant LTL - less than truck load MOF - Ministry of Finance NDRC - National Development and Reform Commission O&M - operation and maintenance PAM - project administration manual PMO - project management office PPMS - project performance management system PRC - People’s Republic of China Ro-Ro - roll-on/roll-off RP - Resettlement plan SDAP - social development action plan SPRSS - Summary Poverty Reduction and Social Strategy SPS - Safeguard Policy Statement TEU - twenty-foot equivalent unit FEU - forty-foot equivalent unit TOR - terms of reference WACC - weighted average cost of capital
I. PROJECT DESCRIPTION
A. Background and Rationale
1. The project will develop a modern and efficient multimodal logistics system in Chongqing. The outputs of the project will be (i) the Chongqing transportation logistics park, (ii) the Nanpeng logistics park, (iii) the Yangtze River inland waterway roll-on roll-off (Ro-Ro) operations, (iv) a logistics information system, and (v) institutional capacity building.1
2. Chongqing is a major city along the upper reaches of the Yangtze River in the southwestern part of the People’s Republic of China (PRC), and one of the six national central cities.2 Covering a total area of 82,400 square kilometers and with a population of 30 million, it is the largest directly administered municipality and comprises 19 districts, 15 counties, and 4 autonomous counties. It is an important industrial and commercial center and transport and logistics hub, with a railway network of 1,450 kilometers (km), which includes five trunk lines and two branch lines, an expressway network of 1,900 km with two ring roads and eight trunk expressways, and an inland waterway network with a freight traffic throughput of 145 million tons annually. Further development of the city as a regional transport and logistics hub will facilitate increased economic growth in the central and western region of the PRC, which remains underdeveloped compared with the eastern region.
3. The logistics sector in the PRC,3 while stronger than many Asian countries, trails behind several developed nations. According to the World Bank’s logistics performance index, the PRC has a global ranking of 27 (1 is the best and 160 is the worst).4 The PRC’s ranking indicates a potential for improvement. On 11 June 2014, the State Council approved a plan to develop the logistics industry. This reaffirms the government’s continued emphasis on improving and reforming the logistics sector, which is expected to continue during the Thirteenth Five-Year Plan of the PRC.5
4. Existing logistics constraints. In 2015, Chongqing handled 1.1 billion tons of cargo at 24 locations within the inner city region and ring road in Chongqing. The movement of freight trucks in urban areas worsens traffic congestion, creates air pollution, and slows down the delivery time for goods. Moreover, most of these small logistics centers do not have enough parking spaces, resulting in large trucks being parked along the streets causing more traffic congestion. Since April 2014, the government has restricted the movement of big freight trucks in parts of the inner city during certain times of the day. These restrictions are expected to be further tightened to cope with growing traffic congestion. While this has provided some relief to the traffic congestion problem, the trucks idle just outside the inner city for several hours before they are allowed to enter, thus contributing to considerable air pollution. There is also a risk that the supply of daily commodities used by local residents may be affected. The government plans to create the new logistics parks beyond the inner ring road as a long-term solution to these problems. The existing logistics centers in the inner city would gradually be consolidated and
1 The Asian Development Bank (ADB) provided project preparatory technical assistance for Chongqing Integrated Logistics Demonstration Project under TA 8689. 2 The PRC’s six national central cities are Beijing, Chengdu, Chongqing, Guangzhou, Shanghai, and Tianjin. 3 The logistics sector is responsible for the management of the flow of goods between the point of origin and the point of consumption in order to meet the requirements of customers or corporations. 4 World Bank. 2016. International LPI Global Ranking. Washington, DC. 5 Government of the People’s Republic of China, National Development and Reform Commission. 2015. Outline of the Thirteenth Five-Year Plan for National Economic and Social Development of the People’s Republic of China. Beijing (adopted in 2016). 2
transferred to the new logistics parks. The new parks would combine all of the logistics functions in one location which will eliminate unnecessary freight movements. The parks will also integrate the various transport modes such as railways, highways and inland waterway resulting in the development of an efficient multimodal logistics system. These improvements will reduce logistics costs, which in turn may result in lower prices of consumer goods.
5. International rail corridor. In 2010, Chongqing launched a new transport initiative by developing the Chongqing–Xinjiang–Europe International Railway Corridor. The rail corridor is now fully operational and offers a faster way to transport freight from the PRC to Europe than by sea and at a fraction of the cost of air transport. This provides an attractive option for shippers of high-value cargo or moderately perishable cargo that cannot tolerate 40 days of transit time by sea or cannot afford the high cost of air transport. This corridor, with a total length of 11,200 km, takes 16 days from Chongqing to Duisburg, Germany through Belarus, Kazakhstan, Poland, and Russia. This new route is also called the “New Silk Road,” and is expected to become a major freight corridor. Growing traffic demand for this route needs matching logistics infrastructure to handle transshipments and related processes such as sorting, packaging, and storage.
6. Inland water transport. Chongqing is one of the most important inland ports in the PRC. The development of the Three Gorges Dam has increased the shipping capacity of the Yangtze River. The dam has made the river deeper and slower, allowing for easier navigation, especially upstream, for cargo and passenger vessels. The limiting factor for cargo, however, is the capacity of the ship lock across the 181 meter high dam. Presently, container ships have to wait for several days in order to pass the dam. To avoid delays, shippers unload goods upstream of the dam and often transfer goods to their final destination by road. The delays and costs of loading and unloading goods on vessels deter shippers from using inland waterway transport.
7. Ro-Ro is a mode of shipping that can reduce these disadvantages. It is designed to carry rolling cargo that does not require cranes for loading or off-loading. Loading and unloading can be made easier and faster as Ro-Ro ships are designed to allow wheeled cargo, such as trucks and trailers, to be driven on and off the ship on their own wheels. This reduces the labor, equipment, and time required in a port; lowers transport costs; and improves the quality of freight delivery service. The introduction of Ro-Ro ships will enable freight companies to use the inland waterway as a transport mode for moving their cargo. The Ro-Ro concept needs to be demonstrated successfully for it to be widely adopted by various shipping companies, including those in the private sector.
8. Logistics information system. The logistics information systems in the PRC are not fully developed. The existing systems provide information related to a single transport mode (e.g., tracking cargo moving on road transport), and there is little integration between different transport modes. Limited information is available in the public domain, making it difficult for transportation companies and freight forwarding companies to operate efficiently. Poor information-sharing creates a bottleneck for logistics and results in higher costs and delays. There is a need to develop an accessible information system that could be used by all the logistics centers and service providers. This will enable the logistics companies specializing in one or more aspects of logistic operations to work seamlessly together in a more efficient and cost effective manner.
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9. Demonstration features. The proposed project is the third urban development project in Chongqing. Lessons from past and ongoing projects6 were incorporated in the project design, such as devolving more responsibilities to the implementing agency while strengthening its project management and financial management capacity. The proposed project will have demonstration features, namely integrated logistics parks, logistics information system, and inland waterway Ro-Ro operations. These features are all relatively new for logistics projects in the PRC, and their successful introduction through this project will offer opportunities for replication and scaling up. Integrated logistics functions and services in the new logistics parks will reduce wasteful freight movements. Logistics information services will enable logistics service providers, such as freight forwarding companies, to increase efficiency and reduce costs through better tracking and control over the supply chain. Ro-Ro operations will reduce the time and costs of transshipments, incentivizing freight movement on inland waterways.
10. The project is consistent with the plans of the Government of the PRC to develop the logistics sector and is in line with the Thirteenth Five-Year Plan (footnote 5). The project is also closely aligned with the government’s priorities to develop the Yangtze River Economic Belt7 and the Silk Road Economic Belt initiative.8 The project’s focus on logistics development is in line with the Sustainable Transport Initiative of the Asian Development Bank (ADB), which highlights logistics improvements as an important opportunity for sustainable transport operations.9 The project also draws on the recommendations of the previous ADB study on logistics development in the PRC.10
B. Impact and Outcome
11. The impact of the project will be the improvement of logistics services in the Yangtze River Economic Belt and the Silk Road Economic Belt. The outcome of the project will be the demonstration of an efficient and integrated multimodal logistics system in Chongqing.
C. Outputs
12. Output 1: Chongqing transportation logistics park developed. This output will develop a park to handle the international freight movements. This will have three functional areas: (i) a roadway logistics hub,11 (ii) a logistics financial exchange center,12 and (iii) a road- rail intermodal logistics hub. This will be the major terminal for Chongqing, located at Tuanjiecun within the Shapingba district and at the starting point of the Chongqing–Xinjiang–Europe line. The completion of the logistics park will directly support and benefit the international rail corridor operations.
13. Output 2: Nanpeng logistics park constructed. This output will develop a park to cater to serve as the main distribution center for Chongqing city. This will have three functional
6 ADB. 2010. Report and Recommendation of the President to the Board of Directors: Proposed Chongqing Urban- Rural Infrastructure Development Demonstration Project. Manila; and ADB. 2013. Report and Recommendation of the President to the Board of Directors: Proposed Chongqing Urban-Rural Infrastructure Development Demonstration II Project. Manila. 7 Eleven provinces and municipalities (including Chongqing) are included in the Yangtze River Economic Belt. The belt covers more than 2 million square km, one-fifth of the country geographically. 8 The Silk Road Economic Belt is also known as the Belt and Road Initiative. It is an economic development initiative of the Government of the PRC for integrating trade and investment in Eurasia. 9 ADB. 2010. Sustainable Transport Initiative Operational Plan. Manila. 10 ADB. 2012. Transport Efficiency through Logistics Development. Manila. 11 This will house a number of logistics companies and an information system to facilitate logistics transactions. 12 This facility will provide value-added financial services such as insurance, financing, and guarantees. 4
zones: (i) a freight transfer area, (ii) a customs inspection staging area, and (iii) a free trade zone. This terminal will be located at Nanpeng in the Banan district.
14. Output 3: Yangtze River inland waterway Ro-Ro transport demonstrated. This output will (i) build energy efficient Ro-Ro ships (approximately 4,000 tons each), (ii) procure alternate energy (e.g., liquefied petroleum gas) tractors and trailers for the Ro-Ro operation, and (iii) establish a Ro-Ro logistics information system. The Ro-Ro operation will use the Guojiatuo Port in Chongqing and the Yinxingtuo Port in Yichang.
15. Output 4: Logistics information system established. This output will develop an information system that will (i) provide real time information on freight movements; (ii) facilitate interaction between freight forwarding companies and transporters; (iii) enable government clearances through an online platform; and (iv) logistics value-added services such as insurance. The logistics information system will serve as the integrated logistics information system for the entire city of Chongqing and as the platform for logistics information sharing, logistics operations, logistics trading, government clearances, and logistics financial services.
16. Output 5: Institutional capacity strengthened. This output will provide technical support for project implementation and training to improve the management capacity of the staff in the executing agency and the implementing agency and other related entities involved with logistics development and operations.
17. The details of each output are summarized in the following table.
Table 1: Summary of Outputs Output Unit Quantity Remarks 1. Chongqing transportation logistics park Civil Works m2 403,041 24 buildings Equipment set 1 2. Nanpeng logistics park Civil Works m2 152,947 7 buildings Equipment set 1 3. Yangtze River inland waterway Ro-Ro transport Ro-Ro ship 3 Ro-Ro tractors 50 Ro-Ro trailers 150 Logistics information system 1 4. Logistics information system Infrastructure and interface Logistics information sharing platform Logistics trade service platform Logistics cooperation service platform Logistics electronic governance platform Logistics value added platform 5. Institutional capacity building Project implementation support Institutional capacity development m2= square meter, Ro-Ro = roll-on/roll-off. Source: Project preparatory technical assistance consultant.
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II. IMPLEMENTATION PLAN
A. Project Readiness Activities
Table 2: Project Readiness Activities
2016 2017 Responsible Q3 Q4 Q1 Q2 Individual/Unit/ Indicative Activities 9 10 11 12 1 2 3 4 5 6 Agency/Government 1. Establish project implementation EA, PMO, IA, PIUs arrangements 2. Loan Negotiations ADB, MOF, EA 3. ADB Board approval ADB 4. Loan signing ADB, MOF 5. Government loan opinion provided MOF, NDRC, EA 6. Government budget inclusion EA, MOF 7. Loan effectiveness ADB, MOF ADB = Asian Development Bank, EA = executing agency, IA = implementing agency, MOF = Ministry of Finance, NDRC = National Development and Reform Commission, PMO = project management office, PIU = project implementation unit. Source: Asian Development Bank.
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B. Overall Project Implementation Plan
Table 3: Overall Project Implementation Plan 2016 2017 2018 2019 2020 2021 2022 2023 Activities 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 A. Design and Monitoring Framework Output 1: Chongqing Transportation Logistics Park 1.1. Conduct detailed design 1.2. Implement the resettlement plan 1.3. Prepare bidding documents 1.4. Obtain land use approval from the local authority
for Areas C-G 1.5. Select project start-up support and implementation
support consultants 1.6. Award civil works contracts 1.7. Complete civil works including building/facility
construction 1.8. Procure and install logistics operation equipment Output 2: Nanpeng Logistics Park 2.1. Conduct detailed design 2.2. Implement measures set out in the resettlement
due diligence report 2.3. Prepare bidding documents 2.4. Select project start-up support and implementation
support consultants 2.5. Award civil works contracts 2.6. Complete civil works including building/facility
construction 2.7. Procure and install logistics operation equipment Output 3: Yangtze River Inland Waterway Ro-Ro
Transport 3.1. Conduct detailed design 3.2. Obtain approval from the Ministry of Transport on
ship building 3.3. Procure ship building equipment 3.4. Ro-ro ship constructed 3.5. Procure tractors and trailers 7
2016 2017 2018 2019 2020 2021 2022 2023 Activities 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 3.6. Establish ro-ro logistics information systems Output 4: Logistics Information System 4.1. Conduct detailed design 4.2. Prepare bidding documents 4.3. Award contracts 4.4. Develop information system 4.5. Complete system testing and trial operations Output 5: Institutional Capacity Development 5.1. Recruit project implementation support, start-up support, and safeguard external monitoring consultants 5.2. Provide project management support 5.3. Provide public-private partnership training and
conduct study 5.4. Provide training on logistics management and
services B. Management Activities 1. Procurement plan key activities 2. Consultant selection procedures 3. Establish PPMS 4. RP supervision and monitoring 5. Start implementing and monitoring EMP x x x x x 6. External monitoring and evaluation (resettlement) 7. Annual/Mid-term review x x x x x x 8. Project completion report EMP = environmental management plan, PPMS = project performance management system, ro-ro = roll-on/roll-off, RP = resettlement plan. Source: Asian Development Bank.
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III. PROJECT MANAGEMENT ARRANGEMENT
A. Project Implementation Organization – Roles and Responsibilities
18. The Chongqing Municipal Government (CMG) is the executing agency and the Chongqing Transportation Holding Group Company (CQTG) will be the implementing agency.
19. A project management office (PMO) has been established under the Chongqing Development and Reform Commission to provide overall guidance, supervision, coordination, management of project preparation and implementation.
Project implementation Management Roles and Responsibilities organizations EA CMG Responsible for the overall project preparation and implementation; Provide policy guidance during implementation; Responsible for project coordination with relevant government agencies, local district governments, and liaison with ADB financial management and administration EA PMO Chongqing Development and Provide overall guidance, supervision, coordination and Reform Commission management of project preparation and implementation, including approving withdrawal applications and managing the audit of project financial statements Implementing agency Chongqing Transportation Responsible for project coordination and implementation Holding Group Company of all project components IA PMO In-charge of all day-to-day management work during the project preparation and implementation period Coordinate with PIUs and all involved parties and government agencies for the project implementation Communicate and coordinate with EA PMO for project management and implementation Engage a tendering company to assist and support 4 PIUs to carry out contract package procurement Perform budgeting and planning, consolidate and submit withdrawal applications, consolidate project financial statements under the guidance of PMO and coordinate the audit. Project Implementing Units PIU 1 Chongqing Transportation Responsible in implementing city distribution center and Logistics Company logistics financial center of the logistics park at Tuanjiecun Coordinate and liaison with IA PMO as well as inter-unit coordination PIU 2 Chongqing Highway Responsible in implementing the construction of Transportation Company Nanpeng logistics park and roadway-railroad intermodal logistics center at Chongqing transportation logistics park in Tuanjiecun 9
Project implementation Management Roles and Responsibilities organizations Coordinate and liaise with IA PMO as well as inter-unit coordination Review invoices and payments; prepare and submit withdrawal applications; maintain separate project accounts and generate project financial statements; coordinate the audit. PIU 3 Chongqing Ship Company Responsible in implementing the Yangtze River inland waterway roll-on/roll-off transport component Coordinate and liaison with IA PMO as well as inter-unit coordination Review invoices and payments; prepare and submit withdrawal applications; maintain separate project accounts and generate project financial statements; coordinate audit PIU 4 Chongqing Intelligent Responsible in implementing the cloud based logistics Logistics Development information system Company Coordinate and liaison with IA PMO as well as inter-unit coordination Review invoices and payments; prepare and submit withdrawal applications; maintain separate project accounts and generate project financial statements; coordinate the audit Chongqing Municipal Finance Sign the onlending and/or relending agreements for the Department project; Inform ADB about the authorized staff with approved signatures for disbursement of loan proceeds; Manage imprest account; approve and submit withdrawal applications; guide financial management and audit of the project Process and submit to ADB, through the Ministry of Finance, any request, when required, for matters pertaining to Loan or Project Agreements; and Monitor the project implementation and providing coordination and facilitation as needed. Ministry of Finance Supervise CMG in the implementation of the project; and Representative of the Government of the PRC; and Guide CMG on ADB documentation requirements, such as legal opinion and fulfill loan effectiveness conditions when needed. 10
Project implementation Management Roles and Responsibilities organizations ADB Provide the EA and IA guidance to ensure smooth project implementation and achieving the desired development impacts and their sustainability; Conduct regular loan review missions, a midterm review, and project completion review; Review and approve of procurement actions; Process the withdrawal applications; Monitor the status of compliance with all loan covenants including safeguards; Review the annual audit report and follow up on the audit recommendations; Regularly update the project performance review reports with the assistance of EA and IA; and Regularly update the project information documents for public disclosure at ADB website, including the safeguard documents. ADB = Asian Development Bank, CMG = Chongqing Municipal Government, EA = executing agency, EMP = Environment Management Plan, IA = implementing agency, PIU = project implementation unit, PMO = project management office.
B. Key Persons Involved in Implementation
Organization Contact Details Executing Agency Chongqing Municipal Government Officer's Name: Huang, Chaoyong Position: Deputy Director of Chongqing DRC Telephone: +86 023-67575809 Email address: [email protected] Office Address: No 16 Honghuxi Road, Chongqing, PRC
Chongqing Development and Officer's Name: Zhang, Xinzhong Reform Commission Position: Director of Chongqing DRC Foreign Capital Division Telephone: +86 023 67575737 Email address: [email protected] Office Address: No. 16 Honghuxi Road, Chongqing , PRC
EA Project Management Office Officer's Name: Yang, Yi Position: Deputy Director, Chongqing DRC Foreign Capital Division Telephone: +86 023 67575735 Email address: [email protected] Office Address: No. 16 Honghuxi Road, Chongqing , PRC
Implementing Agency (IA) Chongqing Transportation Holding Officer's Name: Li, Xingzhi Group Company Position: Vice General Manger Telephone: +86 02389135030 Email address: [email protected] Office Address: No 33 Qingsong Road High-tech Park Chongqing , PRC IA Project Management Office Officer's Name: Chen Guo Position: Officer of Freight Transport Division Telephone: +86 023 89135028 Email address: [email protected] Office Address: No 33 Qingsong Road High-tech Park Chongqing , PRC 11
Organization Contact Details Project Implementation Unit 1 Chongqing Transportation Logistics Officer's Name: Fan, Qiang Company Position: Executive Director, General Manager Telephone: +86 023 89135027 Email address: [email protected] Office Address: No 33 Qingsong Road High-tech Park Chongqing , PRC
Project Implementation Unit 2 Chongqing Highway Logistics Base Officer's Name: Liu, Taiping Position: Deputy General Manager Telephone: +86 023-63926247 Email address: [email protected] Office Address: No 168, Changbin Road, Yuzhong District, Chongqing, PRC
Project Implementation Unit 3 Chongqing Ship Company Officer's Name: CHEN, Lin Position: Deputy Director General Telephone: +86 023-89030745 Email address: [email protected] Office Address: No 15 Caifu Boulevard, High-tech & Fortune Park, Building 2A, 11th Floor, Chongqing, PRC
Project Implementation Unit 4 Chongqing Intelligent Logistics Officer's Name: Fan, Qiang Development Limited Position: Executive Director, General Manager Telephone: +86 023-89135027 Email address: [email protected] Office Address: No 33 Qingsong Road, High-tech Park, Chongqing, PRC
ADB Transport Division Staff Name: Robert Guild Position: Director, EATC Telephone No.+632 632 6383 Email address: [email protected] Mission Leader Staff Name: Sharad Saxena Position: Principal Transport Specialist Telephone No.: + 632 632 4052 Email address: [email protected] 12
C. Project Organization Structure Chongqing Municipal Government Executing Agency Chongqing Development and
Reform Commission
Project Management Office Institutional Development Construction Supervision
Output 5 A Chongqing Transportation Holding Capacity Development Group Company Implementation Agency Training on Logistics Project Management Office Implementing Agency Operation and Development (under Logistics Department) Output 5 B
Chongqing Transportation Logistics Chongqing Highway Transportation Chongqing Ship Company Chongqing Intelligent Logistics Company Company Development Company Project Implementing Unit Project Implementing Unit Project Implementing Unit Project Implementing Unit PIU 1 PIU 2 PIU 3 PIU4
Shapingba DG Banan DG Tuanjiecun RR Nanpeng Highway Logistics Base Logistics Base
Chongqing Transportation Nanpeng Logistics Park Yangtze River Inland Logistics Information Logistics Park Waterway Roll-on/Roll-off System Output 2 B Output 1 / 2 A Output 3 Output 4
DG = District Government, PIU = project implementing unit, RR = railroad.
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IV. COST AND FINANCING
A. Cost Estimates Preparation and Revisions
20. The cost estimates were prepared jointly by the PMO and ADB with assistance from the project preparatory technical assistance consultant. The sources and basis for cost estimates were reviewed during the project preparation and had been confirmed by related parties. The process was facilitated by a model in excel software which enabled easy updating or revision if necessary. The model is maintained by both PMO and ADB. Revision of cost estimates will be conducted when deemed necessary during implementation. The PMO will be responsible in proposing and drafting the revision which will be subject to ADB approval.
B. Cost Categories
21. The basic costs categories are as follows:
Table 4: Basic Cost Categories Category Description Civil works The two transportation logistic parks will need similar types of civil works including building of warehouses, utilities, office buildings and supporting facilities. Equipment All the four components contain costs for purchasing of machinery and equipment devices, which are mainly various road and water transport vehicles in connection with the logistic parks and inland water transportations, and transport information system hardware. Consulting Services This includes costs for consulting services and training as necessary. Source: Asian Development Bank.
C. Assumptions
22. The following key assumptions underpin the cost estimates and financing plan:
(i) Exchange rate: CNY6.36 = USD1.00 (as of 25 September 2015).
(ii) Price contingencies based on expected cumulative inflation over the implementation period are as follows:
Table 5: Price Contingencies Year Item 2017 2018 2019 2020 Average Foreign rate of 2.21% 3.69% 5.25% 6.83% 3.75% price inflation Domestic rate of 4.5% 7.6% 10.91% 14.24% 7.78% price inflation Source: Asian Development Bank.
(iii) In-kind contribution is not applicable for this project financing plan.
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D. Summary Cost Estimates and Financing Plan
23. The project investment cost is estimated at $427.79 million including taxes and duties of $9.190 million. The total cost also includes physical and price contingencies. The indicative investment plan for the project is summarized in Table 6.
Table 6: Project Investment Plan ($ million) Item Amounta A. Base Costb 1. Chongqing Transportation Logistics Park 228.27 2. Nanpeng Logistics Park 102.22 3. Yangtze River Inland Waterway Roll-on/Roll-off 20.47 Transport 4. Logistics Information System 15.42 5. Institutional Capacity Building 2.00 Subtotal (A) 368.37 B Contingenciesc 50.61 C. Financing Charges During Implementationd 8.81 Total (A+B+C) 427.79 a Includes taxes and duties of $9.19 million to be financed from ADB loan resources. The following principles were followed in determining the amount of taxes and duties to be financed by ADB: (i) the amount is within reasonable country thresholds; (ii) the amount represents 2.5% of base cost, not an excessive share of the project investment plan; (iii) taxes and duties apply only to ADB-financed expenditures; and (iv) the financing of the taxes and duties is relevant to the success of the project. b In mid-2015 prices. c Physical contingencies computed at 8% for civil works; and 8% for field research and development, training, surveys, and studies. Price contingencies computed based on cost escalation factors of 3.0% on local currency costs for 2016- 2020, and 1.5% (2016), 1.4%(2017) and 1.5%(2018, 2019 and 2020) on foreign exchange costs. d Includes interest and commitment charges. Interest during construction for ADB loan(s) has been computed at the 5- year US dollar fixed swap rate plus a spread of 0.5% and additional 0.1% loan maturity premium. A commitment charge for an ADB loan is at 0.15% per year on the undisbursed loan amount. Note: Numbers may not sum precisely because of rounding. Source: Asian Development Bank estimates.
24. The loan will finance 35.06% of the project cost, including civil works, equipment and materials, and institutional strengthening. The government will finance the remaining $277.79 million through counterpart funds provided by CQTG which is a state owned enterprise of the Chongqing Municipal Government. At this stage, no commercial bank loan is being considered (Table 7).
25. The PRC is the borrower of the loan and will make the loan available through the CMG to the CQTG. CQTG will assume the foreign exchange and interest variation risks of the ADB loan. The PRC, CMG, and CQTG have assured ADB that the counterpart funding will be provided in a timely manner, including any additional counterpart funding required for any shortfall of funds or cost overruns.
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Table 7: Financing Plan ($ million) Source Amount Share of Total (%) Asian Development Bank 150.00 35.06 Chongqing Transportation Holding Company 277.79 64.94 Total 427.79 100.00 Source: Asian Development Bank estimates. 16
E. Detailed Cost Estimate by Expenditure Category
Table 8: Cost Estimate by Expenditure CNY USD % of
(million) (million) Total Foreign Local Total Foreign Local Total Base Item Exchange Currency Cost Exchange Currency Cost Cost A. Base Cost
1 Civil Works 134.30 1,205.51 1,339.81 21.12 189.55 210.66 57.2
(i) Chongqing Transportation Logistics Park 92.01 828.10 920.12 14.47 130.21 144.67 39.3
(ii) Nanpeng Logistics Park 37.86 337.58 375.44 5.95 53.08 59.03 16.0
(iii) Yangtze River Inland Waterway Roll-on/Roll-off Transport 0.00 0.00 0.00 0.00 0.00 0.00 0.0
(iv) Logistics Information System 4.43 39.83 44.25 0.70 6.26 6.96 1.9
2 Mechanical and Equipment 35.46 319.17 354.63 5.58 50.18 55.76 15.1
(i) Chongqing Transportation Logistics Park 9.56 86.06 95.62 1.50 13.53 15.03 4.1
(ii) Nanpeng Logistics Park 8.22 73.98 82.20 1.29 11.63 12.92 3.5
(iii) Yangtze River Inland Waterway Roll-on/Roll-off Transport 12.95 116.55 129.50 2.04 18.33 20.36 5.5
(iv) Logistics Information System 4.73 42.58 47.31 0.74 6.70 7.44 2.0 a 3 Land acquisition & resettlement 0.00 464.24 464.24 0.00 72.99 72.99 19.8
(i) Chongqing Transportation Logistics Park 0.00 303.81 303.81 0.00 47.77 47.77 13.0
(ii) Nanpeng Logistics Park 0.00 160.43 160.43 0.00 25.22 25.22 6.8
(iii) Yangtze River Inland Waterway Roll-on/Roll-off Transport 0.00 0.00 0.00 0.00 0.00 0.00 0.0
(iv) Logistics Information System 0.00 0.00 0.00 0.00 0.00 0.00 0.0
5 Consultants 12.72 0.00 12.72 2.00 0.00 2.00 0.5
6 Design, survey and management 17.14 154.30 171.44 2.70 24.26 26.96 7.3
7 Operation Capital 0.00 0.00 0.00 0.00 0.00 0.00 0.0
Subtotal (A) 199.63 2,143.22 2,342.84 31.39 336.98 368.37 100.0
B. Contingencies
1 Physical 18.43 165.90 184.34 2.90 26.09 28.98 7.9
2 Price 13.75 123.79 137.54 2.16 19.46 21.63 5.9
Subtotal (B) 32.19 289.69 321.88 5.06 45.55 50.61 13.7
C. Financing Charges During Implementation
1 Interest During Implementation 52.90 0.00 52.90 8.32 0.00 8.32 2.3
2 Commitment Charges 3.12 0.00 3.12 0.49 0.00 0.49 0.1
Subtotal (C) 56.02 0.00 56.02 8.81 0.00 8.81 2.4
Total Project Cost (A+B+C) 287.83 2,432.91 2,720.74 45.26 382.53 427.79 a This includes environment and social mitigation costs for Chongqing Transportation Logistics Park and Nanpeng Logistics Park. b This includes compensation to affected people and land development fee. The resettlement cost for Nanpeng Logistics Park has already been paid by the Government. Source: Asian Development Bank estimates.
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F. Allocation and Withdrawal of Loan Proceeds
Table 9: Allocation and Withdrawal of Loan Proceeds
CATEGORY ADB FINANCING No Item Amount Allocated for ADB Percentage and Basis for Financing ($) Withdrawal Category Subcategory 1 Civil Works* 111,200,000 1A Chongqing Transportation 74,400,000 51% of total expenditure Logistics Park claimed 1B Nanpeng Logistics Park 36,800,000 62% of total expenditure claimed 2 Equipment* 28,000,000 2A Chongqing Transportation 15,000,000 100% of total expenditure Logistics Park claimed 2B Yangtze River Inland 9,300,000 46% of total expenditure Waterway Roll-on/roll-off claimed Transport 2C Logistics Information 3,700,000 50% of total expenditure System claimed 3 Consulting Services 2,000,000 100% of total expenditure claimed 4 Interest and Commitment 8,800,000 100% of total expenditure Charge claimed Total 150,000,000 *Subject to the condition for withdrawal described in paragraph 7 of Schedule 3 of the Loan Agreement. Source: Asian Development Bank estimates.
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G. Detailed Cost Estimate by Financier
Table 10: Cost Estimates by Financier ($ million) Chongqing Total ADB Transportation Group Cost Holding Company % of Cost % of Cost Item Amount Amount Category Category A. Investment Costs
1 Civil Works 111.16 53% 99.51 47% 210.66
(i) Chongqing Transportation Logistics Park 74.39 51% 70.28 49% 144.67
(ii) Nanpeng Logistics Park 36.76 62% 22.27 38% 59.03
(iii) Yangtze River Inland Waterway Roll-on/Roll-off Transport 0.00 NA 0.00 NA 0.00
(iv) Logistics Information System 0.00 0% 6.96 100% 6.96
2 Mechanical and Equipment 28.04 50% 27.72 50% 55.76
(i) Chongqing Transportation Logistics Park 15.03 100% 0.00 0% 15.03
(ii) Nanpeng Logistics Park 0.00 0% 12.92 100% 12.92
(iii) Yangtze River Inland Waterway Roll-on/Roll-off Transport 9.32 46% 11.05 54% 20.36
(iv) Logistics Information System 3.69 50% 3.75 50% 7.44 a 3 Land Acquisition and Resettlement 0.00 0% 72.99 100% 72.99
(i) Chongqing Transportation Logistics Park 0.00 0% 47.77 100% 47.77
(ii) Nanpeng Logistics Park 0.00 0% 25.22 100% 25.22
(iii) Yangtze River Inland Waterway Roll-on/Roll-off Transport 0.00 NA 0.00 NA 0.00
(iv) Logistics Information System 0.00 NA 0.00 NA 0.00
4 Consultants 2.00 100% 0.00 0% 2.00
5 Survey, Design and Management 0.00 0% 26.96 100% 26.96
6 Operation Capital 0.00 0% 0.00 100% 0.00
Subtotal (A) 141.19 38% 227.18 62% 368.37
B. Contingencies
1 Physical 0.00 0% 28.98 100% 28.98
2 Price 0.00 0% 21.63 100% 21.63
Subtotal (B) 0.00 0% 50.61 100% 50.61
C. Financing Charges During Implementation
1 Interest During Implementation 8.32 100% 0.00 0% 8.32
2 Commitment Charges 0.49 100% 0.00 0% 0.49
Subtotal (C) 8.81 100% 0.00 0% 8.81
Total Project Cost (A+B+C) 150.00 277.79 427.79
% Total Project Cost 35.06% 64.94% 100% a This includes environment and social mitigation costs for Chongqing Transportation Logistics Park and Nanpeng Logistics Park. b This includes compensation to affected people and land development fee. The resettlement cost for Nanpeng Logistics Park has already been paid by the Government. Source: Asian Development Bank estimates.
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H. Detailed Cost Estimate by Outputs
Table 11: Cost Estimate by Outputs ($ million) Yangtze River Chongqing Logistics Total Nanpeng Inland Waterway Institutional Item Transportation Information a Logistics Park Roll-on/Roll-off Development Cost Logistics Park Database Transport % of % of % of % of % of Amount Cost Amount Cost Amount Cost Amount Cost Amount Cost Category Category Category Category Category A. Investment Costsb
1 Civil Worksc 210.66 144.67 68.7 59.03 28.0 0.00 0.0 6.96 3.3 0.00 0.00
2 Mechanical and Equipment 55.76 15.03 27.0 12.92 23.2 20.36 36.5 7.44 13.3 0.00 0.00
3 Land Acquisition and Resettlementd 72.99 47.77 65.4 25.22 34.6 0.00 0.0 0.00 0.0 0.00 0.00
4 Consultants 2.00 0.00 0.0 0.00 0.0 0.00 0.0 0.00 0.0 2.00 100.00
5 Survey, Design and Management 26.96 20.80 77.1 5.04 18.7 0.10 0.4 1.02 3.8 0.00 0.00
6 Operation Capital 0.00 0.00 1.0 0.00 1.0 0.00 1.0 0.00 97.1 0.00 0.00
Subtotal (A) 368.37 228.27 62.0 102.22 27.7 20.47 5.6 15.42 4.2 2.00 0.54
B. Contingenciese
1 Physical 28.98 17.77 61.3 7.66 26.4 2.03 7.0 1.52 5.2 0.00 0.00
2 Price 21.63 13.28 61.4 5.70 26.4 1.51 7.0 1.13 5.2 0.00 0.00
Subtotal (B) 50.61 31.05 61.4 13.36 26.4 3.54 7.0 2.65 5.2 0.00 0.00
C. Financing Charges During Implementationf
1 Interest During Implementation 8.32 5.32 64.0 2.22 26.7 0.55 6.7 0.22 2.7 0.00 0.00
2 Commitment Charges 0.49 0.29 58.7 0.12 24.5 0.03 6.1 0.05 10.7 0.00 0.00
Subtotal (C) 8.81 5.61 63.7 2.34 26.5 0.58 6.6 0.27 3.1 0.00 0.00
Total Project Cost (A+B+C) 427.79 264.94 61.9 117.92 27.6 24.59 5.7 18.34 4.3 2.00 0.47 a Includes taxes and duties to be financed from ADB loan resources of: $9.19 million. The following principles were followed in determining the amount of taxes and duties to be financed by ADB: (i) the amount is within reasonable country thresholds; (ii) the amount represents 2.5% of base cost, not an excessive share of the project investment plan; (iii) taxes and duties apply only to ADB-financed expenditures; and (iv) the financing of the taxes and duties is relevant to the success of the project. b In mid-2015 prices. c This includes environment and social mitigation costs for Chongqing Transportation Logistics Park and Nanpeng Logistics Park. d This includes compensation to affected people and land development fee. The resettlement cost for Nanpeng Logistics Park has already been paid by the Government. e Physical contingencies computed at 8% for civil works; and 8% for field research and development, training, surveys, and studies. Price contingencies computed based on cost escalation factors of 3.0% on local currency costs for 2016-2020, and 1.5% (2016), 1.4%(2017) and 1.5%(2018, 2019 and 2020) on foreign exchange costs. f Includes interest and commitment charges. Interest during construction for ADB loan has been computed at the 5-year forward London interbank offered rate plus a spread of 0.5% and additional 0.1% surcharge for average loan maturity premium. A commitment charge for an ADB loan is at 0.15% per year on the undisbursed loan amount. Source: Asian Development Bank estimates.
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I. Detailed Cost Estimate by Year
Table 12: Cost Estimate by Year ($ million) 2018 2019 2020 2021 2022 Item Total (Year 1) (Year 2) (Year 3) (Year 4) (Year 5) A. Investment Costs
1 Civil Works 210.66 21.07 52.67 63.20 52.67 21.07
(i) Chongqing Transportation Logistics Park 144.67 14.47 36.17 43.40 36.17 14.47
(ii) Nanpeng Logistics Park 59.03 5.90 14.76 17.71 14.76 5.90
(iii) Yangtze River Inland Waterway Roll-on/Roll-off Transport 0.00 0.00 0.00 0.00 0.00 0.00
(iv) Logistics Information System 6.96 0.70 1.74 2.09 1.74 0.70
2 Mechanical and Equipment 55.76 5.58 13.94 16.73 13.94 5.58
(i) Chongqing Transportation Logistics Park 15.03 1.50 3.76 4.51 3.76 1.50
(ii) Nanpeng Logistics Park 12.92 1.29 3.23 3.88 3.23 1.29
(iii) Yangtze River Inland Waterway Roll-on/Roll-off Transport 20.36 2.04 5.09 6.11 5.09 2.04
(iv) Logistics Information System 7.44 0.74 1.86 2.23 1.86 0.74 a 3 Land Acquisition and Resettlement 72.99 7.30 18.25 21.90 18.25 7.30
4 Consultants 2.00 0.20 0.50 0.60 0.50 0.20
5 Survey, Design and Management 26.96 2.70 6.74 8.09 6.74 2.70
6 Operation Capital 0.00 0.00 0.00 0.00 0.00 0.00
Subtotal (A) 368.37 36.84 92.09 110.51 92.09 36.84
B. Contingencies 1 Physical 28.98 2.90 7.25 8.70 7.25 2.90 2 Price 21.63 2.16 5.41 6.49 5.41 2.16
Subtotal (B) 50.61 5.06 12.65 15.18 12.65 5.06
C. Financing Charges During Implementation 1 Interest during construction 8.32 0.83 2.08 2.50 2.08 0.83 2 commitment charges 0.49 0.16 0.15 0.11 0.06 0.02
Subtotal (C) 8.81 1.00 2.23 2.60 2.14 0.85
Total Project Cost (A+B+C) 427.79 42.89 106.97 128.30 106.88 42.75
% Total Project Cost 100% 10% 25% 30% 25% 10%
a This includes environment and social mitigation costs for Chongqing Transportation Logistics Park and Nanpeng Logistics Park. b This includes compensation to affected people and land development fee. The resettlement cost for Nanpeng Logistics Park has already been paid by the Government. Source: Asian Development Bank estimates.
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J. Contract Awards and Disbursement S-Curve
160.000
140.000
120.000
100.000
80.000
60.000
40.000
20.000
0.000 2018 2019 2020 2021 2022 2023
Contract Awards Disbursement
Contract Award Disbursement Cumulative Contract Year Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Disbursement Award 2018 0.00 0.00 0.012 0.138 0.150 0.00 0.00 0.012 0.138 0.150 1.500 0.150 2019 0.603 1.708 1.202 0.836 4.349 0.727 2.184 2.688 4.759 10.358 44.987 10.508 2020 2.510 1.229 0.242 0.835 4.815 7.186 5.213 8.697 4.630 25.727 93.139 36.235 2021 0.723 0.211 1.498 0.430 2.862 4.256 6.819 15.471 8.618 35.164 121.762 71.399 2022 0.344 0.971 0.628 0.000 1.943 12.161 9.453 6.609 12.309 40.531 141.192 111.931 2023 0.000 0.000 0.000 0.000 0.000 8.584 5.026 14.877 9.582 38.069 141.192 150.000 With IDC of 8.808 million.
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K. Fund Flow Mechanism
ADB direct payment Asian Development Bank
Reimbursement and Imprest Loan Fund procedures Ministry of Finance (On behalf of the People’s Republic of China)
Onlending
Chongqing Finance Bureau Imprest Account payment (On behalf of EA/CMG)
Onlending Chongqing PMO Chongqing Transportation Holding Group Company (IA)
CQTG Project Agreement Sub-Account payment
PIU 1 PIU 2 PIU 3 PIU 4 Chongqing Transportation Chongqing Highway Chongqing Ship Company Chongqing Intelligent Logistics Logistics Company Transportation Company Development Company 3 - Inland Waterway Roll- 4- Logistics Information System 1 – Chongqing Transportation 2 - Nanpeng Logistics Park on/Roll-off Transport Logistics Park
Contractors/Suppliers/ Contractors/Suppliers/ Contractors/Suppliers/ System Developer/ Consultants Consultants Consultants Consultants
CMG = Chongqing Municipal Government, EA = executing agency, IA = implementing agency, PIU = Project Implementing Unit, PMO = Project Management Office. Lending/onlending Loan repayment Disbursement/reimbursement Disbursement application 23
V. FINANCIAL MANAGEMENT
A. Financial Management Assessment
26. The financial management assessment (FMA) was carried out for the project in accordance with ADB’s Guidelines for the Financial Management and Analysis of Projects and Financial Due Diligence: a Methodology Note.13 The CMG (the executing agency) has set up an ADB Project Management Office (PMO), and since 2008 has been implementing two ADB funded integrated urban-rural infrastructure demonstration projects. Thus vast experiences have been obtained from implementing the existing ADB projects. The functions of the PMO include managing and monitoring the overall project implementing process; communicating and coordinating with ADB, Ministry of Finance and National Development and Reform Commission; approving and submitting tendering documents and fund withdrawal applications to ADB; submitting consolidated project audited financial statements; and supervising the monitoring and evaluation of environment, resettlement and social issues during the project implementation. A deputy president of Chongqing Development and Reform Commission (CDRC) is the PMO manager, and the director and deputy director of the foreign fund division under CDRC are designated as the PMO vice managers. Five full-time staff are working in the PMO respectively in charge of project comprehensive administration, finance, procurement, resettlement and environment.
27. The financial management capacity of CQTG, the implementing agency, is assessed as adequate. Established in 2004, the CQTG, with 16 subsidiary companies, plays a leading role in the city’s passenger and cargo transport as well as logistics arena. The FMA includes funds-flow arrangements, staffing, accounting policies and procedures, internal and external auditing arrangements, reporting and monitoring, and financial information systems. The assessment concluded that the skills in the general financial management practices such as book keeping, statutory reporting, project budgeting and costing, corporate treasury and budgeting are sufficiently acquired. This is due to the good conventional accounting environment and standardized practices within CQTG. The company also has an internal audit department responsible for sound internal control of the holding company and all subsidiary companies. They are fairly good at the computerized accounting system and payment processing, project budgeting and costing and internal auditing. The fixed assets accounting, management accounting and reporting are at average which need some enhancement. The inventory accounting and project modeling and evaluation are relatively weak due to the nature of its business. Among the four PIUs, also the subsidiaries under CQTG, two were newly established, and the other two exist already whose financial management systems have also been assessed. The newly established PIUs will follow existing financial management policies and practices as required by the government and CQTG.
28. While the implementing agency and existing project implementing units (PIUs) have adequate financial management capacity, they are new to ADB project implementation procedure and requirements. The overall financial management risk is rated as “Moderate”. The assessment concluded that (i) there are established accounting and financial management policies and procedures in the People’s Republic of China (PRC), which are strictly followed by the implementing agency and its subsidiaries; and (ii) they have sound accounting and financial management capability and are experienced in managing transport infrastructure projects, but less familiar with logistic operations. However, the implementing agency and PIUs lack experience in implementing foreign-funded projects, and the managers and financial personnel have little knowledge of ADB policies and procedures. The identified risks in financial management will be
13 ADB. 2005. Financial Management and Analysis of Projects. Manila.; ADB. 2009. Financial Due Diligence: A Methodology Note. Manila.
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closely monitored during project implementation. It was agreed that the implementing agency and PIUs will further fortify their capabilities by (i) setting up clear institutional arrangements and coordination mechanism; (ii) completing staff deployment in appropriate financial management positions with English language support; (iii) developing methodologies for managing foreign exchange and interest rate risks; and (iv) undertaking more training, particularly on ADB policy and procedures. Table 13 demonstrates a financial risk mitigation plan to be adopted by the implementing agency and PIUs during the project implementation:
Table 13: Financial Risk Mitigation Plan Action Responsibility Timing Training on ADB disbursement procedures and PMO/CQTG/Finance 3 months before loan requirements Department/ADB effectiveness Training on ADB financial management PMO/CQTG/Finance 1 month before loan requirements, including accounting, reporting, Department/ADB/Chongqing effectiveness auditing and foreign exchange and interest risk Audit Office management Close monitoring to timely identify potential issues PMO / CQTG /Finance At least once a year in counterpart funding Department/ADB during project implementation Open mind to get access to international best CQTG 1 month before loan practices in the inexperienced fields, hire highly effectiveness experienced consultants to enhance the operation capacities Separate the accounting and auditing functions CQTG / PIUs 1 month before loan by restructuring the current finance departments effectiveness at the PIU level with adequate accounting staff ADB = Asian Development Bank, CQTG = Chongqing Transportation Holding Group Company, PIU = project implementing unit. Source: Asian Development Bank.
B. Disbursement
29. The loan proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2015, as amended from time to time), 14 and detailed arrangements agreed upon between the government and ADB. Online training for project staff on disbursement policies and procedures is available at: http://wpqr4.adb.org/disbursement_elearning. Project staff are encouraged to avail of this training to help ensure efficient disbursement and fiduciary control. No withdrawals shall be made from the Loan account until the Borrower has certified to ADB that all onlending agreements referred to in the Loan Agreement have been duly executed have become effective and binding.
30. The implementing agency on behalf of CMG will be responsible for (i) requesting budgetary allocations for counterpart funds, (ii) collecting supporting documents, and (iii) preparing and sending withdrawal applications through the Chongqing Municipal Finance Bureau and the CQTG to ADB.
14 Available at: http://www.adb.org/documents/loan-disbursement-handbook. 25
31. To facilitate project implementation and funds flow, an imprest account may be set up in a commercial bank acceptable to ADB upon loan effectiveness, the account will be in US$.15 The account will be managed by Chongqing Finance Bureau. Each PIU will establish and administer a subaccount for exclusive use of eligible expenditures to be incurred by the PIU. The maximum ceiling of the imprest account will not exceed 10% of the loan amount. The government may request for initial and additional advances to the imprest account based on 6 months estimated expenditures to be financed through the imprest account. For every liquidation and replenishment request of the imprest account, Chongqing Finance Bureau will furnish to ADB (i) statement of account (bank statement) where the imprest account is maintained, and (ii) the imprest accounts reconciliation statement reconciling the above mentioned bank statement against CQTG records. CQTG will prepare the withdrawal applications for approval of Chongqing Finance Bureau.
32. Before the submission of the first withdrawal application, the borrower should submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the borrower, together with the authenticated specimen signatures of each authorized person. The government will need to prepare withdrawal applications and submit to ADB for processing of payment. The minimum value per withdrawal application is $200,000 equivalent. Individual payments below this amount should be paid (i) by CQTG and subsequently claimed from ADB through reimbursement procedure, or (ii) through the imprest fund procedure, unless otherwise accepted by ADB.
33. The direct payment procedure may apply for large works contracts. If the government initially funds eligible expenditures from its own resources, the reimbursement procedure will be used. To expedite the flow and simplify the documentation process, the statement of expenditures (SOE) will be used for liquidation and replenishment of the imprest account and for reimbursement of eligible expenditure. Any individual payment to be reimbursed or liquidated under the statement of expenditures procedure shall not exceed the equivalent of $200,000. SOE records should be maintained and made readily available for review by ADB’s disbursement and review mission or upon ADB’s request for submission of supporting documents on a sampling basis, and for independent audit.16 Reimbursement and liquidation of individual payments in excess of the SOE ceiling should be supported by full documentation when submitting the withdrawal application to ADB.
C. Accounting
34. The executing agency and the implementing agency, through the PMO and PIUs, will maintain the project accounts and records by funding source for all expenditures incurred on the project. Consolidated project financial statements will be prepared in accordance with the government's accounting laws and regulations which are consistent with international accounting principles and practices.
D. Auditing
35. The executing agency, through the PMO, will and will cause the implementing agency to have the consolidated project accounts to be audited in accordance with International Standards on Auditing by an auditor acceptable to ADB. The audited accounts will be submitted in English language to ADB within 6 months of the end of the fiscal year by the PMO. The annual audit report for the project accounts will include an audit management letter and audit opinions which cover (i)
15 The bank charges on the imprest account will be financed from the proceeds of the loan. 16 Checklist for SOE procedures and formats are available at Appendix 9B of the Loan Disbursement Handbook.
26
whether the project financial statements present a true and fair view or are presented fairly, in all material respects, in accordance with the applicable financial reporting framework; (ii) whether loan proceeds were used only for the purposes of the project or not; (iii) the level of compliance for each financial covenant contained in the legal agreements for the project; (iv) use of the imprest fund procedure; and (v) the use of the statement of expenditure procedure certifying to the eligibility of those expenditures claimed under SOE procedures, and proper use of the SOE and imprest procedures in accordance with ADB’s Loan Disbursement Handbook and the project documents.
36. In addition, the CQTG will also cause their entity-level financial statements to be audited in accordance with equivalent national standards adopted by QMG General Auditor’s Office and by an independent auditor acceptable to ADB. The audited entity-level financial statements, together with the auditors’ report and management letter, will be submitted in the English language to ADB within 1 month after their approval by the relevant authority.
37. Compliance with financial reporting and auditing requirements will be monitored by review missions and during normal program supervision, and followed up regularly with all concerned, including the external auditor.
38. The government has been made aware of ADB’s policy on delayed submission, and the requirements for satisfactory and acceptable quality of the audited project financial statements. ADB reserves the right to require a change in the auditor (in a manner consistent with the constitution of the borrower), or for additional support to be provided to the auditor, if the audits required are not conducted in a manner satisfactory to ADB, or if the audits are substantially delayed. ADB reserves the right to verify the project's financial accounts to confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures.
39. Public disclosure of the project financial statements, including the audit report on the project financial statements, will be guided by ADB’s Public Communications Policy (2011).17 After review, ADB will disclose the project financial statements for the project and the opinion of the auditors on the financial statements by posting them on ADB’s website within 14 days upon acceptance by ADB. The Audit Management Letter will not be disclosed.
VI. PROCUREMENT AND CONSULTING SERVICES
A. Advance Contracting and Retroactive Financing
40. All advance contracting and retroactive financing will be undertaken in conformity with ADB’s Procurement Guidelines (2015, as amended from time to time) and ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time). The issuance of invitations to bid under advance contracting and retroactive financing will be subject to ADB approval. It was explained to the borrower, the executing agency and the implementing agency and the PIUs that: (i) advance contracting includes the advertisement, bidding documents, (not prequalification), evaluation of bids and up to the recommendation of contracts award; and, that all steps will require ADB’s no objection; (ii) retroactive financing18 could only apply up to the equivalent of 20% of the total ADB loan, with respect to expenditures incurred before loan effectiveness but not more than 12 months before the signing of the Loan Agreement; (iii) approval of advance contracting and retroactive financing does not commit ADB to finance the project. ADB's approval must be sought for the draft bidding documents before they are issued.
17 Available from http://www.adb.org/documents/pcp-2011?ref=site/disclosure/publications. 18 This will be applied to civil works packages and consulting services under advance procurement action. 27
41. To expedite project implementation, the Government requested ADB to approve advance contracting, which includes the recruitment of consultants and procurement of civil works; and the request for retroactive financing of eligible expenditures for consulting services and civil works.
42. Advance contracting. Advance contracting will include (i) tendering, and bid evaluation for civil works contract packages; (ii) awarding of contracts; and (iii) recruitment of consultants. The advance contracting includes civil work contract packages and consulting service contracts. The issuance of invitations to bid and bidding documents under advance procurement action will be subject to ADB approval.
43. Retroactive financing. The Government was informed that as a general rule, retroactive financing is permitted only if (i) it is specifically agreed by ADB and the Borrower; (ii) the goods, works, services, and consultants for which it is requested are procured in accordance with ADB’s Procurement Guidelines (2015, as amended from time to time) and ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time); (iii) the amount to be retroactively financed does not exceed 20% of the loan amount; and (iv) the expenditures must have been incurred before effectiveness of the relevant loan but, generally, no earlier than 12 months before signing of the Loan Agreement. In either instance, detailed assessments (due diligence) on each retroactive financing proposal must demonstrate that (a) the expenditures incurred are genuine, reasonable, and material to getting the project off the ground; and (b) they were incurred for proper reasons, in a transparent manner over a reasonable period of time. The Government has been advised that approval of advance contracting and retroactive financing does not commit ADB to finance the project.
44. Eligibility. The Government-owned enterprises in the borrower’s country may participate as a bidder only if they can establish that they (i) are legally and financially autonomous, (ii) operate under commercial law, and (iii) are not dependent agencies of the borrower or sub- borrower.
B. Procurement of Goods, Works and Consulting Services
45. All procurement of goods and works will be undertaken in accordance with ADB’s Procurement Guidelines (2015, as amended from time to time). International competitive bidding (ICB) will be used for civil works contracts estimated to cost $40 million and above.19 National competitive bidding (NCB) will be used for civil works contracts estimated to cost over $100,000 equivalent up to $40 million. For goods and equipment, ICB will be used for values exceeding $3 million, while NCB will be used for goods and equipment from over $100,000 to below $3 million equivalent. For NCB, the first draft English language of the procurement documents (bidding documents, and draft contract) should be submitted for ADB approval regardless of the estimated contract amount. Subsequent procurements will be reviewed based on the review type defined in the procurement plan.
46. An 18-month procurement plan indicating threshold and review procedures, goods, works, and consulting service contract packages and national competitive bidding guidelines is in Appendix 1.
19 Revised thresholds are in accordance with ADB’s procurement reform.
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47. All consultants financed by ADB will be recruited according to ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time). 20 The terms of reference for project implementation consulting service, start-up consulting service and external monitoring consultants are detailed in Appendix 2. An estimated 118 person-months (21 international, 97 national) of consulting services are required to (i) facilitate project management and implementation, (ii) provide capacity building and institutional strengthening, and (iii) required external monitoring.
48. The procurement guidelines and resources are as follows:
Reference guide url Procurement Guidelines http://www.adb.org/documents/procurement-guidelines Guidelines on Use of Consultants by ADB and http://www.adb.org/documents/guidelines-use-consultants-asian- Its Borrowers development-bank-and-its-borrowers Consultant Management System http://cms.adb.org Templates for engagement of consultants: http://www.adb.org/site/business-opportunities/operational- (including submission templates) procurement/consulting/documents Project Administration Instructions http://www.adb.org/documents/project-administration-instructions Anticorruption Policy http://www.adb.org/documents/anticorruption-policy How to report fraud and corruption http://www.adb.org/site/integrity/how-to-report-fraud-old Source: Asian Development Bank.
VII. GOVERNANCE
49. All procurement to be financed under the ADB loan will be carried out in accordance with ADB Procurement Guidelines (2015, as amended from time to time). The relevant sections of ADB’s Anticorruption Policy (1998, as amended to date) will be included in all procurement documents and contracts. ADB’s Anticorruption Policy was explained to and discussed with the government, the executing agency and implementing agency, and the PMO. Specific policy requirements and supplementary measures are described in the project administration manual. An assessment of financial management capacity indicates that the executing agency and implementing agency carefully follow PRC policies and procedures for accounting and financial management. The PMO has strong accounting and financial management capacity, as well as experience in managing multiple large construction projects and ADB projects. While the financial management capacity is considered adequate, the implementing agency and PIUs are new to ADB project implementation. The overall financial management risk is assessed as moderate pre- mitigation measures. Training on procurement, disbursement and financial management will be provided in advance and during project implementation. It is also recommended that English language support should be provided for the project implementation personnel. Furthermore, the implementing agency should develop methodologies for managing foreign exchange and interest rate risks.
VIII. POVERTY AND SOCIAL IMPACT
50. Poverty and Social Impact. Overall, this project will directly benefit 2.92 million people living in the three project districts and indirectly benefit 8.19 million residents of Chongqing Metropolitan Developed Economic Circle, and 8,412 logistics business companies with over 600,000 employees. The widespread social benefits of this Project will: (i) ensure commodity supply and daily life of local residents, (ii) reduce costs of freight transport, (iii) improve transport conditions (safety and congestion) in urban areas, (iv) reduce pollution and vehicle emission in urban area, and (v) increase employment opportunity. The project will provide equal opportunity for
20 Checklists for actions required to contract consultants by method available in e-Handbook on Project Implementation at: http://www.adb.org/documents/handbooks/project-implementation/ 29
426 skilled and 5,400 unskilled jobs in logistic industry with additional opportunities during project facility construction.
51. Gender Impact. Women will benefit equally from logistics improvements. Although the PMO has assured ADB that they will provide equal access and opportunities to both men and women, this sector typically employs males. This is unlikely to change because the logistics centers are quite far from residential areas. For the reason, the project has no other gender elements.
IX. SAFEGUARDS
A. Environment
52. Environment Assessment. The project is classified as environment category B. A project initial environmental examination (IEE) and environmental management plan (EMP) identify the environmental mitigation and monitoring measures needed during project implementation to address identified environmental risks and impacts. These documents comply with the PRC’s regulatory requirements and ADB’s Safeguard Policy Statement (2009) and will be disclosed on the ADB website prior to loan approval. The domestic environmental assessment reports have been disclosed to potentially affected people in the project area. Public consultation informed the project design and environmental protection process, and will continue throughout project implementation. The EMP outlines potential impacts, mitigation and monitoring measures, institutional arrangements, training requirements and implementation budget.
53. Prohibited investment activities. Pursuant to ADB Safeguard Policy Statement (2009) (SPS), ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the SPS.
54. Environmental Impacts. Anticipated adverse environmental impacts and risks of the project are modest and can be limited to an acceptable level through EMP implementation and compliance with loan covenants. The main potential environmental impacts are noise, air pollutant and greenhouse gas emissions and disposal of solid waste. The closest residences are within 300 meters and Liangtan River is 2,000 meters from the site. The environmental assessments determined that there are no other sensitive environmental receptors within the project area of influence. There are no critical, protected or natural habitats or species within the project area of influence or wider area. The project is anticipated to have a number of environmental benefits, including reduced freight traffic in the inner city of Chongqing, modal shift from road to inland waterway and demonstration of eco-logistics and industrial green building practice. Both parks will develop Environmental and Quality Management Systems and certified under ISO 14001 and 9001 certification which will require prevailing international operating practice to be achieved and continuous improvement of environmental and quality performance.
55. Climate Change Risk. An initial climate risk and vulnerability analysis study determined that there will be an increased risk of intensity and frequency of extreme storm events and flooding as a result of climate change and a significant increase in temperature (See Appendix III – EMP). Capacity of storm-water drainage will be increased by 10% and the logistics park designs have integrated a range of soft and hard-engineered measures to increase flood retention capacity, including permeable paving, artificial wetlands and a roof storm-water collection and re-use system.
56. Implementation. The responsible parties for environmental management and supervision are outlined in (Table 14).
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Table 14: Environmental Management and Supervision Agency Environmental Management Roles and Responsibilities CMG - Executing Agency Overall policy and direction control. Responsible for project coordination with two project district governments, liaison with ADB, financial management and administration, providing guidance to PMO. PMO Primarily responsible for implementation of project components, including finance and administration, technical and procurement matters, monitoring and evaluation, and safeguard compliance; Assign one environment specialist as EMP officer/coordinator who will (i) supervise contractors and their compliance with the EMP; (ii) conduct regular site inspections; (iii) act as local entry point for the project GRM; (iv) review environmental quality monitoring results provided by the implementing agency; Communicate and coordinate with ADB for project management and implementation; submit the project implementation progress reports and safeguard compliance monitoring reports to ADB; Submit bidding documents, bid evaluation reports and other necessary documentation to ADB for review and approval; Engaging loan implementation consultants, including environmental specialists to assist in supervision, tracking and reporting on EMP implementation for all packages; Engage local environmental monitoring stations or a certified entity for environmental impact monitoring; and Consolidate data from environmental monitoring reports into annual environmental monitoring reports and submit them to ADB for review and disclosure. ADB Monitor and supervise the overall environmental performance of the project; Review the annual environment monitoring reports and disclose the reports on ADB website upon receipt (within 14 calendar days) in line with ADB Public Communications Policy (2011); conduct due diligence of environment issues and advise on corrective actions during the project review missions. Implementation Agency Responsible for day to day management work during the project preparation (IA) and implementation periods; assign an environmental specialist to supervise and monitor the implementation of EMP; and liaison between PMO and PIUs. PIUs Responsible for all day-to-day work during the project implementation: Communicate and coordinate with implementing agency for project management and implementation; Establish environment management unit and appoint an environment specialist as EMP coordinator; Incorporate EMP clauses in bidding documents for civil works; Establish a dedicated Project Complaints Coordinating Unit; Supervise and monitor EMP implementation and reporting to the implementing agency and PMO; Participate in capacity building and training programs; Submit annual project financial statements to the implementing agency and PMO; Engage design institutes to complete preliminary and detailed engineering designs; and Engage construction CSC. Contractor, Construction Construction contractors will develop site-specific EMPs on the basis of the supervision Companies project EMP and will be responsible for implementing mitigation measures 31
Agency Environmental Management Roles and Responsibilities (CSCs), Environmental during construction under the supervision of the CSCs. CSCs will be Supervision Consultant, selected through the People’s Republic of China bidding procedure by the Internal implementing agency/PIUs. The CSCs will be responsible for supervising construction progress and quality, and EMP implementation on construction sites. Each CSC shall have at least one environmental engineer on each construction site to: (i) supervise the contractor’s EMP implementation performance; and (ii) prepare the contractor’s environmental management performance section in monthly project progress reports to be submitted to the implementing agency and PMO. Loan Implementation Provide technical assistance to the PMO/implementing agency/PIU for Environmental consultant implementing the EMP; Provide training to the staff of the (LIEC) PMO/implementing agency/PIU, contractor and CSCs; Assist the PMO/implementing agency in preparing EMPs. Review updated EMP; confirm that mitigation measures have been included in engineering detailed design. Review bidding documents to ensure that the EMP clauses are incorporated. Advise on mitigation measures, provide technical support, and conduct environmental training. Conduct annual EMP compliance review, support PMO in preparing project progress reports and annual environmental monitoring until a project completion report is issued. Facility Operators Ensure proper operation of component facilities according to design standards; implement mitigation measures if needed. District EMS or certified Conduct environmental impact monitoring according to the EMP monitoring environmental entity plan and submit monitoring results to the PMO. District EPB Inspect the facilities during construction and operation to ensure compliance; Enforce applicable environmental laws and regulations. ADB = Asian Development Bank, CMG = Chongqing Municipal Government, CSC = construction supervision companies, EMP = environmental management plan, EMS = environmental monitoring system, GRM = grievance redress mechanism, PIU = project implementation unit, PMO = project management office. Source: Technical Assistance Consultants.
57. Environmental monitoring and reporting. The Loan Implementation Environment Consultant will prepare environmental monitoring reports on an annual basis for submission to ADB. ADB will review environmental monitoring reports and disclose on the ADB website on receipt from the Borrower in line with ADB Public Communications Policy (2011).
58. Bidding documents and contracts. The executing agency and implementing agency will ensure that all bidding documents and contracts for Works contain provisions that require contractors to: (a) comply with the measures set out in the IEE and the EMP, and; (b) any corrective or preventative actions identified in annual environmental monitoring reports. The contractor will be responsible for preparing a specific environmental management plan (Contractor's Environmental Management Plan) based on the EMP prior to the commencement of construction activities. The contract should specify that the contractor should report monthly on the implementation of Contractor's Environmental Management Plan.
B. Involuntary Resettlement
59. The project is category A for involuntary resettlement. A resettlement plan is prepared for the Chongqing transportation logistics park component.21 It will acquire a total of 675.13 mu of
21 Resettlement Plan (accessible from the list of linked documents in Appendix 2 of the report and recommendation of the President to the Board of Directors).
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collective land that includes 433.15 of cultivable land, 40.26 mu of home stead land, 18.25 mu of garden land, 13.85 mu of forestry land and 169.62 mu of waste land and construction land.22 The house demolition will affect a total of 89 households. A total of 488 people (99 households including 94 workers/staff from five enterprises are significantly affected by the LAR) will be significantly affected by both land acquisition and house demolition. The cost of land acquisition and resettlement is CNY205 million. The executing agency assured ADB that adequate staffing and counterpart funding will be made available for LAR implementation, in line with the annual funding requirements stipulated in the resettlement plan. The LAR unit of the implementing agency will closely work with the district officials for internal supervision and will engage an independent external monitor for semiannual monitoring and reporting by end of 2015. Meaningful consultations will continue throughout the project cycle as scheduled. A grievance redress mechanism has been established to facilitate resolution of complaints regarding land acquisition and resettlement activities. The final endorsed resettlement plan has been disclosed to the affected people. If there are any changes, the RP should be revised and disclosed to affected persons.
60. In 2010, the Nanpeng logistics park component involved total land acquisition of 356.84 mu of rural collective land and house demolition affected 46 households. A total of 324 people from 92 households were affected by resettlement, including 157 people from 46 households affected by the land acquisition, 167 people from 46 households affected by both the land acquisition and house demolition. The total cost was CNY47.18 million. The land acquisition and house demolition of the component started on 5 May 2010, and payment of compensation was completed in 30 November 2011. Payment of additional compensation for relocation to new apartments was provided in 30 December 2014. A due diligence report was prepared to confirm the impacts, procedures that were implemented and identify remaining issues.23 Follow-up actions have been agreed (see below). The due diligence report has been disclosed.
61. Further actions to be taken on Nanpeng logistics park. In order to make sure that the resettlement activity can be finished successfully, and the project construction can be started as scheduled, an external monitoring evaluation mechanism will be established so as to ensure that all the remaining affected households have moved to new apartments in a timely manner. Monitoring and evaluation report will be submitted to Chongqing ADB Office semiannually from December 2015 until all resettlement measures have been successfully implemented. Specifically, actions to be taken include:
(i) ensure the remaining 24 displaced households have moved into new apartments by July 2016; (ii) ensure all infrastructure facilities for the resettlement site are completed and inspected; (iii) the remaining 107 affected persons will be transferred to urban registration before December 2015; (iv) 40 unskilled jobs will be provided by the Nanpeng Logistics Park by July 2016; (v) monitor living standards of affected households annually for two years (2015 and 2016) to ensure they are better off and have stable livelihoods, especially the “4050” group; (vi) monitor how the relocated rural households have adjusted to the urban environment, and how this has impacted the community social network; and
22 A mu is a Chinese unit of measurement (1 mu = 667.7 square meters). 23 Resettlement Due Diligence Report for Nanpeng logistics park (accessible from the list of linked documents in Appendix 2 of the report and recommendation of the President to the Board of Directors). 33
(vii) conduct a final resettlement completion audit and address any remaining issues identified by December 2016.
62. The above actions will be implemented and monitored by the Nanpeng Land Acquisition Office and reported to the PMO and then to ADB.
63. The PMO will also engage an external monitor (refer to Section X.B) to verify the LAR progress for the Chongqing transportation logistics park and for Nanpeng logistics park and the external monitor will conduct follow-up surveys on 20% of the affected households to confirm that resettlement has been completed satisfactorily. External monitoring reports will be submitted semi- annually to the PMOs and ADB, and disclosed to affected persons. ADB will review the quality of these reports and will upload them to ADB website. Any issues raised in the external monitoring reports should be immediately follow-up by the relevant PIU, and progress reported to PMOs and ADB in their internal monitoring reports. If safeguard compliance issues are found, these must be redressed quickly and fairly. Subsequent disbursements may be stopped until ADB is satisfied that the project is in full compliance.
Table 15: Resettlement Tasks Responsible No. Resettlement Tasks Target Deadline Agency 1. Consultation and Disclosure 1.1 RIB distribution All affected villages District ROs Mid Nov 2015 and people 1.2 RP distribution All affected villages City/district ROs Mid Nov 2015 2. Resettlement Budget 2.1 Approval of the RP and City / district governments Nov 2015 budget 3. Capacity Building 3.1 Discussion of the project IA, local governments Aug 2015 with existing resettlement offices at various levels 3.2 ROs capacity building 30 staff IA, Consultant Jun 2015 3.3 Designate village authorities Tuanjie Village City/district RO Aug 2015 4. Commencement and Completion of Resettlement 4.1 Agreements with villages All villages and APs District ROs Nov. 2015 and APs 4.2 Commencement of LA and District ROs Nov 2015 HD 4.3 Disbursement of All APs District ROs Nov 2015 compensation to APs onwards 4.4 Completion of LA and HD District ROs 30 Jun 2016 4.5 Relocation of APs APs who like to move District ROs 30 Jun 2016 into existing resettlement sites 4.7 Relocation of APs APs who like to move District ROs 30 Dec 2017 into resettlement sites to be built 5. Skill and Livelihood Training 5.1 Skill and technical training All affected laborers Shapingba Human Mar 2016 – Jun Resource and Social 2017 Security Bureau 5.2 Business starting and All affected laborers Shapingba Human Mar – Apr 2016 operation training Resource and Social Security Bureau
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Responsible No. Resettlement Tasks Target Deadline Agency
6. Job Arrangement 6.1 Introduction of Job All affected laborers CQTG, Town government Jan – Feb 2016 opportunity during the project construction 6.2 Acceptance of APs to work APs who are CQTG, Town government, Jun 2016 to on the project qualified to work contractors Jan 2020 6.3 Introduction of Job All affected laborers CQTG, Town government Jan – Feb 2019 opportunity during the project operation 6.4 Acceptance of APs to work APs who are CQTG, Town government Mar 2019 and on the project qualified to work on going 6.5 Introduction of Job All affected laborers CTLP, Town government Jan – Feb 2016 opportunity in CTLP 6.6 Introduction of Job All affected laborers Shapingba Human Mar 2016 – Jun opportunity in Shapingba, Resource and Social 2018 Chongqing or other places Security Bureau, Town government 7. Monitoring & Evaluation 7.1 Internal monitoring reports Semi-annual IA Jun and Dec Reports each year 7.2 Contracting external monitor IA Dec 2015 7.3 Baseline survey 50% of affected HHs External monitor Dec 2015 7.4 External monitoring report Semi-annual reports External monitor Jun and Dec each year 7.5 Resettlement completion Report Chongqing PMO Dec 2018 report AP = affected persons, CQTG = Chongqing Transportation Holding Group Company, CTLP = Chongqing Transportation Logistics Park, LA = land acquisition, HD = house demolition, HH = households, IA = implementing agency, RIB = resettlement information booklet, RO = resettlement office, RP = resettlement plan. Source: Asian Development Bank.
C. Ethnic Minorities
64. ADB’s Indigenous peoples safeguard requirements are not triggered by any project components and the safeguard category for indigenous peoples is C because no ethnic minorities will be affected by project activities. No further actions are required.
D. Other Requirements that apply to all Safeguards
65. Grievance redress mechanism. A project safeguards grievance redress mechanisms (GRMs), as detailed in the resettlement plan was already established (before implementation of any land acquisition and resettlement or other advance construction activities) and as in EMP, will be established within 60 days of the loan effectiveness date, or, whichever is the earliest. The GRMs set out procedures for managing public concerns and safeguard issues (environment, involuntary resettlement and land acquisition) which may arise during project implementation. The GRMs comprise a set of clear procedures to receive, record, and address any concerns or complaints raised; specific contact details of individuals from the executing agency, implementing agency and contractor’s teams and other relevant authorities and stakeholders. All contractors and work staff will be briefed on the environment GRM. Multiple entry points to both GRMs will be available including face-to-face meetings, written complaints, hotline number and telephone 35
conversations, anonymous drop-boxes for written comments, and/or e-mail. During implementation and prior to the project completion review, complaints and their resolution will be reported to ADB in quarterly project progress reports and/or semi-annual safeguard monitoring reports.
66. Change of project scope or unanticipated impacts and risks. If there are any changes in project scope or unanticipated environmental and/or social risks and impacts that arise during construction, implementation or operation of the project that were not considered in the IEE and the EMP, the PMO should promptly inform ADB so updates can be made and/or a corrective action plan implemented.
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X. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION
A. Design and Monitoring Framework
Impact the Project is Aligned with Logistics services in the Yangtze River Economic Development Belt and Silk Road Economic Belt region improved (The National Logistics Centers Planning, 2009)a
Data Sources and Performance Targets and Reporting Design Summary Indicators with Baselines Mechanisms Risks Outcome By 2025 Efficient and a. Total freight amount a. Chongqing statistics Demand for logistics integrated increased by 50% or higher yearbook (annual) services is reduced due multimodal (2012 baseline: 1.1 billion to slowdown in the logistics system in tons). PRC’s economic growth Chongqing demonstrated b. Total import and export b. Chongqing statistics value of Chongqing increased yearbook (annual) by 50% or higher (2012 baseline: $53.2 billion)
c. 700 new jobs in the project c. Chongqing logistics logistic parks and Ro-Ro sector annual reports operation created during operation (2015 baseline: 0)
d. Ro-Ro transport amount d. Chongqing Ship increased by 10% or higher in Company annual annual average (2014 reports baseline: 46,000 tons)
e. Frequency of freight trains to e. Yu-Xin-Ou Europe increased by 100% Company (rail (2015 baseline: 20 times a operator) annual month) reports
f. CO2 emissions from freight f. Chongqing logistics trucks and trailers reduced by sector annual reports 18,000 tons a year (2015 baseline: 0)b Outputs By 2022 b 1. Chongqing 1a. 24 buildings and facilities 1a–1c. Quarterly Delays in procurement transportation built in Tuanjiecun report of the due to lack of experience logistics park (2015 baseline: 0) implementation of the implementing developed support consultant agency 1b. A logistics exchange center and office buildings built Lack of continued with the PRC Green Building government support for and ISO 14001 standards developing a public (2015 baseline: NA) logistics information system 1c. Operation equipment including 230 trucks and 180 forklifts acquired (2015 baseline: 0) 37
Data Sources and Performance Targets and Reporting Design Summary Indicators with Baselines Mechanisms Risks 2. Nanpeng By 2022 c logistics park 2a. 7 buildings and facilities 2a–2b. Quarterly constructed built in Nanpeng City (2015 report of the baseline 0) implementation support consultant 2b. Operation equipment including 200 trucks and 60 forklifts acquired (2015 baseline: 0)
3. Yangtze River By 2022 inland waterway 3a. Three Ro-Ro ships built 3a–3b. Quarterly Ro-Ro transport (2015 baseline: 0) report of the demonstrated implementation 3b. Ro-Ro logistics information support consultant system established (2015 baseline: NA)
4. Logistics By 2022 information system 4a. Logistics information 4a–4d. Quarterly established sharing platform developed report of the (2015 baseline: NA) implementation support consultant 4b. Logistics trade service platform launched (2015 baseline: NA)
4c. Logistics governance service platform completed (2015 baseline: NA)
4d. Logistics value-added services introduced (2015 baseline: NA)
5. Institutional By 2022 5a–5b. Quarterly capacity 5a. More than 300 person- report of the strengthened days of logistics management implementation and services training provided support consultant (2015 baseline: 0)
5b. More than 200 person- days of project management and PPP training provided (2015 baseline: 0)
Activities with Milestones 1. Chongqing transport logistics park 1.1. Conduct detailed design (Q3 2017) 1.2. Implement the resettlement plan (Q1 2017–Q4 2018) 1.3. Prepare bidding documents (Q3 2018 for the first package in Area C; Q3 2022 for the last package) 1.4. Obtain land use approval from the local authority (Q4 2016) 1.5. Select project start-up support and implementation support consultants (Q3 2018) 1.6. Award civil works contracts (Q3 2019 for the first package; Q4 2021 for the last package)
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1.7. Implement and monitor EMP (Q2 2017–Q4 2022) 1.8. Complete civil works including building and facility construction (Q3 2019 for the first package; Q4 2022 for the last package) 1.9. Procure and install logistics operation equipment (Q1 2021 for the first package; Q1 2023 for the last package)
2. Nanpeng logistics park 2.1. Conduct detailed design (Q2 2017) 2.2. Implement measures set out in the resettlement due diligence report (Q1 2017–Q3 2017) 2.3. Prepare bidding documents (Q2 2018 for the first package; Q3 2018 for the last package) 2.4. Select project start-up support and implementation support consultants (Q3 2018) 2.5. Award civil works contracts (Q1 2019 for the first package; Q4 2019 for the last package) 2.6. Complete civil works including building and facility construction (Q1 2019 for the first package; Q1 2022 for the last package) 2.7. Procure and install logistics operation equipment (Q1 2019 for the first package; Q1 2022 for the last package) 2.8. Implement and monitor EMP (Q2 2017–Q4 2022)
3. Yangtze River inland waterway Ro-Ro transport 3.1. Conduct detailed design (Q4 2017) 3.2. Obtain approval from the Ministry of Transport on ship building (Q2 2017–Q4 2018) 3.3. Procure shipbuilding equipment (Q4 2019 for the first ship; Q4 2021 for the third ship) 3.4. Ro-Ro ship constructed (Q1 2020 for the first ship; Q1 2022 for the third ship) 3.5. Procure tractors and trailers (Q1 2020–Q1 2021) 3.6. Establish Ro-Ro logistics information systems (Q2 2019) 3.7. Implement and monitor EMP (Q2 2017–Q4 2022)
4. Logistics information system 4.1. Conduct detailed design (Q2 2017) 4.2. Prepare bidding documents (Q2 2018) 4.3. Award contracts (Q1 2019–Q2 2019; Q2 2020; Q3 2021) 4.4. Develop information system (Q1 2019–Q3 2022) 4.5. Complete system testing and trial operations (Q3 2022–Q1 2023)
5. Institutional capacity developed 5.1. Recruit project implementation support, start-up support, and safeguard external monitoring consultants (Q1 2018) 5.2. Provide project management support (Q4 2018–Q1 2023) 5.3. Provide PPP training (Q3 2019) 5.4. Provide training on logistics management and services (Q4 2019) Inputs ADB: $150,000,000 (loan) Government: $277,790,000 Assumptions for Partner Financing Not applicable. ADB = Asian Development Bank; CO2 = carbon dioxide; EMP = environmental management plan; ISO = International Organization for Standardization; NA = not applicable; Yu-Xin-Ou = Chongqing, Xinjiang, Europe; PPP = public–private partnership; PRC = People's Republic of China; Q = quarter; Ro-Ro = roll-on roll-off. a Government of the People's Republic of China, Chongqing Municipal Government. 2009. The National Logistics Centers Planning of Three Logistics Bases and Four Port Areas. Chongqing. b Comparison of with- and without-project cases for the user trucks and trailers of the project logistics parks, information systems, and Ro-Ro operation. c Includes logistics trade center, office buildings, warehouses, driver homes, and repair shops. Source: Asian Development Bank. 39
B. Monitoring
1. Project Performance Monitoring
67. The project performance management system (PPMS) indicators, their relevance, and monitoring practicalities will be discussed with the executing agency, implementing agencies and project beneficiaries during project implementation. Disaggregated baseline data for output and outcome indicators gathered during project processing will be updated and reported quarterly through the semiannual progress reports of the project management office (PMO) and after each ADB review mission. These semiannual reports will provide information necessary to update ADB's project performance reporting system.24 At the start of project implementation, each PMO and implementing agency, with the project implementation consulting services, will develop integrated PPMS procedures to generate data systematically on the inputs and outputs of the components, as well as the indicators to be used to measure the project’s impact and outcome taking into account the components’ scope. Each PMO will be responsible for monitoring and reporting on project performance. The basis for performance monitoring will be the design and monitoring framework design and monitoring framework, which identifies performance targets for the impact, outcomes, and outputs of the project. By collecting data from the sources identified in the design and monitoring framework, the PMO will be able to report on an annual basis the performance of the project. Specific reporting requirements will be set out in the agreement between ADB and the Government. Each PMO will collect the data, calculate the indicators, analyze the results, and prepare a brief report describing the extent to which the project is generating the intended outputs and outcomes, as well as the overall impact on the project municipalities. The relevance and practicability of data collection for indicators was confirmed with the PMOs and the implementing agencies. Meanwhile, the agreed socioeconomic and environmental indicators to be used will be further enhanced to measure project impacts. The PMO and the implementing agencies agreed and confirmed that they will (i) refine and integrate the PPMS framework at the start of project implementation; (ii) confirm that targets are achievable; (iii) develop recording, monitoring, and reporting arrangements; and (iv) establish systems and procedures no later than six months after project inception.
2. Compliance Monitoring
68. The executing agency, implementing agency, the PIUs and the project management consulting service, will conduct compliance monitoring, submit reports and information to ADB concerning the use of the loan proceeds, project implementation, project implementation performance, and compliance of loan and project covenants. These reports will include (i) semiannual progress reports on project implementation; and (ii) midterm adjustment report, and (iii) a project completion report, which should be submitted not later than three months after the completion of the project facilities. The compliance status of loan and project covenants will be reported and assessed through the semiannual progress report. ADB review missions will verify status.
24 ADB's project performance reporting system is available at: http://www.adb.org/Documents/Slideshows/PPMS/default.asp?p=evaltool.
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3. Safeguards Monitoring
a. Environment
69. Internal monitoring and reporting by construction supervision companies (CSCs). During construction, CSCs and designated Environmental Supervision Consultant (Internal) will be responsible for conducting internal EMP monitoring and supervision in accordance with the monitoring plan defined in the EMP. The results will be reported through the CSCs’ reports to the PIUs.
70. Environmental impact monitoring by environmental monitoring systems (EMSs). The PIUs will contract the local EMSs to conduct environmental impact monitoring in accordance with the monitoring plan. A detailed cost breakdown will be provided by the two local EMSs when the environmental monitoring program is updated at the start of each component implementation. Monitoring will be conducted during construction and operation period, until a project completion report is issued. Semi-annual monitoring reports will be prepared by the EMSs and submitted to PMO.
71. EMP implementation monitoring and progress reporting. The loan implementation environmental consultant (LIEC) will review project progress and compliance with the EMP based on consultation with environmental supervision consultant (internal), field visits, and the review of the environmental impact monitoring conducted by the EMSs. The findings of the LIEC will be reported to ADB through the annual EMP monitoring and progress reports. The reports will include (i) progress made in EMP implementation, (ii) overall effectiveness of the EMP implementation (including public and occupational health and safety), (iii) environmental monitoring and compliance, (iv) institutional strengthening and training, (v) public consultation (including GRM), and (vi) any problems encountered during construction and operation, and the relevant corrective actions undertaken. The LIEC will help PMO prepare the reports and submit the English report to ADB for appraisal and disclosure.
72. Project completion environmental audits. Within three months after each subproject completion, or no later than one year with permission of the district environmental protection bureaus, environmental acceptance monitoring and audit reports of each subproject completion shall be (i) prepared by a licensed environmental monitoring institute in accordance with the PRC Guideline on Project Completion Environmental Audit (2001), (ii) reviewed for approval of the official commencement of individual subproject operation by environmental authorities, and (iii) finally reported to ADB through the annual EMP monitoring and progress reporting process.
b. Resettlement
73. Internal and external monitoring of resettlement plan and due diligence report implementation will be conducted. Monitoring methodologies are specified in the resettlement plan. PIU will carry out internal supervision and monitoring to ensure compliance with the provisions of the resettlement plan. The PMO and implementing agency have agreed to a set of supervision milestones with ADB, to ensure timely and effective implementation of resettlement activities (see Section IX.B).
74. Internal Progress and Monitoring by PMO: The internal resettlement monitoring agencies will include PMO, LA Office in Shapingba, finance bureau and other departments concerned (e.g., land and resources bureau). The PMO shall develop a detailed internal monitoring plan for land acquisition and resettlement. The monitoring scope includes (i) Investigation, 41
coordination of and suggestion on key issues of the resettlement and implementing agencies during implementation; (ii) status of land acquisition and house demolition and any variations from the final resettlement plan; (iii) restoration of the household income of the affected persons after land acquisition; (iv) preparation of housing site and relocation; (v) restoration and resettlement of women and vulnerable persons; (vi) payment, use and availability of compensation for resettlement; (vii) degree of public participation and consultation during resettlement; (viii) livelihood training and job arrangement. The PMO shall submit an internal monitoring report to ADB semi-annually. Such report shall indicate the statistics of the past months in tables, and reflect the progress of land acquisition, house demolition, relocation and payment and use of compensation. The PMO will also be responsible to prepare a resettlement completion report; this can be done in conjunction with the external monitor. This report will be submitted to ADB by December 2018.
75. External Monitoring by Independent Agency: PMO shall employ a qualified, independent and experienced agency as the external monitoring and evaluation agency for resettlement using loan proceeds. The external agency shall conduct baseline survey, follow-up M&E of resettlement activities periodically, monitor resettlement progress, particularly new housing and livelihood restoration, and provide advice to PMO. The external M&E agency will attend public consultation meetings held during resettlement implementation to evaluate the effectiveness of public participation. The external M&E agency will visit the affected villages and groups regularly, and interview the township government and implementing agency to evaluate about how grievances have been handled. It will also meet complainants, and propose corrective measures and advice for existing issues so as to make the resettlement process more effective. The external monitor will also evaluate and report on implementation of all resettlement measures outlined in the DDR.
76. It will also conduct follow-up monitoring of the APs satisfaction levels and living standards and submit M&E reports to PMO for their review, follow-up and disclosure to APs. PMO shall submit the external monitoring report to ADB semiannually for review and disclosure on website. The baseline survey will be carried out before the RP implementation and external monitoring should be conducted semiannually during the implementation of RP and the subproject. After resettlement implementation, the post-evaluation will be conducted to evaluate the Project’s resettlement activities on the basis of M&E to (i) confirm the RP objectives have been met and (ii) experience and lessons in land acquisition and property demotion as a reference for future work.
C. Evaluation
77. ADB, executing agency and implementing agencies will undertake a semiannual review mission to evaluate the progress of project implementation. ADB, executing agency and implementing agencies will undertake a comprehensive midterm review two years after the start of project implementation to have a detailed evaluation of the scope, implementation arrangements, resettlement, achievement of scheduled targets, and progress on the agenda for policy reform and capacity building measures. Feedback from the PPMS activities will be analyzed. Within three months of physical completion of the project, the PMO will submit a project completion report to ADB.25
D. Reporting
78. The PMO will provide ADB with (i) semiannual progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress
25 Project completion report format available at: http://www.adb.org/Consulting/consultants-toolkits/PCR-Public-Sector- Landscape.rar.
42
achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions, (c) updated procurement plan, and (d) updated implementation plan for the next 12 months; and (iii) a project completion report within six months of physical completion of the project.
79. The executing agency and implementing agencies have agreed on the following reporting commitments: (i) submission of semiannual progress reports during project implementation; (ii) submission of semiannual reports on the progress of resettlement safeguards monitoring and annual environment safeguards monitoring, i.e., resettlement activities, environment management plan implementation; (iii) submission of project completion report six months after completion of the project; and (iv) submission of audited project accounts and financial statements six months after the end of fiscal year. PPMS data will be incorporated in the semiannual progress reports.
80. The following table summarizes the key reporting requirements during project implementation.
43
Table 16: Key Reporting Requirements Report Reference Timing of Reporting Project performance management system Develop comprehensive project Project Agreement, No later than 6 months after loan performance management system Schedule, paragraph 7 effectiveness procedures Reporting of baseline and progress data Project Agreement, Semiannual, included in the including environmental management plan Schedule, paragraph 13 quarterly project progress reports Semiannual project progress reports Project Agreement, Semiannual, within one month Article II, Section 2.08 after the end of each quarter Audited project accounts and financial Project Agreement, Not later than six months after the statements auditor's report (including auditor's Article II, Section 2.09 closure of fiscal year (end of June) opinion on the use of the imprest account and statement of expenditures) Resettlement monitoring Internal monitoring reports for the executing Project Agreement, Include summary in the and implementing agencies (Quarterly) Schedule, paragraph 13 semiannual project progress reports to ADB Land acquisition and resettlement phase– Project Agreement, Semiannual external monitoring report Schedule, paragraph 13 Post-land acquisition and resettlement Project Agreement, Annual reports for two years after phase–external monitoring evaluation report Schedule, paragraph 13 the resettlement activities completion
Resettlement completion report Project Agreement, PMO to submit to ADB - Schedule, paragraph 13 December 2018
Environmental Report Construction phase–environmental Project Agreement, Annual management plan monitoring and progress Schedule, paragraph 13 report Project Agreement, Construction phase–External environmental Schedule, paragraph 13 Annual management plan verification report Project Agreement, Schedule, paragraph 13 Operations Phase–External Monitoring Annual, until a project completion report report is issued Project completion report Project Agreement, Not later than three months after Article II, Section 2.08 the physical completion of the project Source: Asian Development Bank.
44
E. Stakeholder Communication and Participation
81. Project information will be communicated through public consultation, information disclosure mechanism in ADB’s and government’s website, meetings, interviews, focus group discussions, and community consultation meetings, in accordance with ADB’s requirements of information disclosure policy. Consultations with communities have taken place and will continue at different points in the preparation of the project within the components, and will be designed not only to inform people about the component or specific activities related to its preparation and implementation, but also to enable people in the community to ask questions, make suggestions, state preferences, and express concerns. Special attention will be paid to the participation of women and any other vulnerable groups, such as the poor during further consultation.
82. Environment. Meaningful consultation for each subproject has been conducted during feasibility study and environmental impact assessment in accordance with the PRC Interim Guideline on Public Consultation in EIA (2006) and ADB’s Safeguard Policy Statement (2009). During construction, the affected people will be consulted through formal questionnaire surveys and informal interviews by the environmental management unit of the local PMOs and the external environmental monitor. The project’s environmental information shall be disclosed by the local environmental protection bureaus and ADB as follows: (i) the project IEE is disclosed at http://www.adb.org/projects/documents/prc-chongqing-integrated-logistics-demo-project-dec-2015- iee; (ii) the Chinese IEEs are disclosed on the website of the relevant Environmental Protection Bureaus; and (iii) the annual EMP progress and monitoring reports will be disclosed at www.adb.org.
83. Involuntary resettlement. All of the affected households and towns/townships, leaders and town and township and district governments were involved in the project impact investigations and detailed measurement survey. Through meetings, interviews, focus group discussions, public consultation workshops, and community consultation meetings, local representatives have participated in the planning and concerns have been integrated into the resettlement plan and due diligence report. Before implementation, the PMO and PIU for Chongqing transportation logistics park will further discuss and consult with the affected persons’ representatives the impacts on every town/township and the detailed compensation agreements and resettlement measures. The PMO disclosed the resettlement plan in the offices as well as community offices and to affected people in the local language. The resettlement plan including revisions, if any, will also be posted on the ADB website. Resettlement information booklets have been distributed to affected households. This booklet contains information such as the affected project area, proposed land acquisition and relocation implementation progress and procedure, compensation standards for land acquisition, relocation assistance, and livelihood restoration strategy. The implementing units will establish project resettlement units for supervision of implementation, continued public consultation, monitoring of progress, and response to grievances. The grievance redress procedures have been established and were included in the resettlement information booklets.
X. ANTICORRUPTION POLICY
84. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the project.26 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and all project contractors, suppliers, consultants and other service providers. Individuals/entities
26 Available at: http://www.adb.org/sites/default/files/pub/1998/anticorruption.pdf. 45
on ADB’s anticorruption debarment list are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the project.27
85. To support these efforts, relevant provisions are included in the loan agreement, and the bidding documents for the project. ADB’s Anticorruption Policy (1998, as amended to date) will be explained to and discussed with executing agency and the implementing agencies, and their PMOs, and PIUs. Consistent with its commitment to good governance, accountability and transparency, ADB reserves the right to investigate any alleged corrupt, fraudulent, collusive, or coercive practices relating to the project. To address the risks on governance and corruption related to procurement of civil works, relevant provisions of ADB’s Anticorruption Policy will be included in the loan agreement and the bidding documents for the project. In particular, all contracts financed by ADB in connection with the project will include provisions specifying the right of ADB to audit and examine the records and accounts of executing agency and the implementing agency, PIUs and all contractors, suppliers, consultants, and other service providers as they relate to the project. The executing agency has indicated its commitment to promote good governance and establish a corruption-free environment under the project. Further to this, a number of good governance and anticorruption provisions have been included in the loan and project agreements.
86. The executing agency and the implementing agencies will, and with their PMOs and PIUs to, comply with ADB’s Anticorruption Policy (1998, amended from time to time). The executing agency agrees (i) that ADB reserves the right to investigate any alleged corrupt, fraudulent, collusive, or coercive practices relating to the project; and (ii) to cooperate fully with, and to require contractors and suppliers to cooperate fully with, any such investigation and to extend all necessary assistance, including providing access to all relevant books and records, as may be necessary for the satisfactory completion of any such investigation.
87. The executing agency will (i) conduct periodic inspections on the contractors’ activities related to fund withdrawals and settlements; and (ii) ensure that all contracts financed by ADB in connection with the project include relevant provisions of ADB’s Anticorruption Policy (1998, as amended to date) in all bidding documents for the project specifying the right of ADB to audit and examine the records and accounts of PMO and all the contractors, suppliers, consultants and other service providers as they relate to the project.
88. The executing agency and the implementing agencies will also (i) involve the agencies responsible for oversight of each PIU in bidding and construction to enhance construction quality control and supervise effective work; (ii) introduce a dual-signing system in which each works contract winner also signs an anticorruption agreement with the employer; (iii) periodically inspect the contractors’ activities related to fund withdrawals and settlements; (iv) require the project management consulting service to support PMOs and the PIUs to ensure good governance, accountability, and transparency in project operations; and (v) in consultation with relevant ministries at the central level, update rules and regulations on corporate governance and anticorruption to enhance the transparency of the operations of the executing agency, implementing agencies, and the PIUs.
XI. ACCOUNTABILITY MECHANISM
89. People who are, or may in the future be, adversely affected by the project may submit complaints to ADB’s Accountability Mechanism. The Accountability Mechanism provides an independent forum and process whereby people adversely affected by ADB-assisted projects can
27 ADB's Integrity Office web site is available at: http://www.adb.org/integrity/unit.asp.
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voice, and seek a resolution of their problems, as well as report alleged violations of ADB’s operational policies and procedures. Before submitting a complaint to the Accountability Mechanism, affected people should make a good faith effort to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, they should approach the Accountability Mechanism.28
XII. RECORD OF PAM CHANGES
90. The PAM is a living document and is subject to change after ADB Board approval of the project's report and recommendation of the President. It is concise yet informative, providing checklists of all activities related to project implementation along with the necessary procedures for the project management office’s to effectively implement and monitor the project.
No. Changes/Updates Date Remarks 1 PAM initial draft agreed 28 Sep 2015 Agreed during the loan fact finding mission 2 Updated PAM agreed 28 Sep 2016 Agreed during the loan negotiation
Appendix I – Procurement Plan
Appendix II – Consultant’s Terms of Reference
Appendix III – Environmental Management Plan
28 For further information see: http://www.adb.org/Accountability-Mechanism/default.asp. Appendix 1 47
PROCUREMENT PLAN
Basic Data Project Name: Chongqing Integrated Logistics Demonstration Project Number: 48024-002 Approval Number: Country: China, People's Republic of Executing Agency: Chongqing Municipal Government Project Procurement Classification: Implementing Agency: Project Procurement Risk: N/A Project Financing Amount: US$ 427,079,000 Project Closing Date: 30 September 2022 ADB Financing: US$ 150,000,000 Cofinancing (ADB Administered): Non-ADB Financing: US$ 277,079,000 Date of First Procurement Plan: 22 July 2016 Date of this Procurement Plan: 29 September 2016
A. Methods, Thresholds, Review and 18-Month Procurement Plan
1. Procurement and Consulting Methods and Thresholds
Except as the Asian Development Bank (ADB) may otherwise agree, the following process thresholds shall apply to procurement of goods and works.
Procurement of Goods and Works Method Threshold Comments International Competitive Bidding for US$ 3,000,000 and Above Goods National Competitive Bidding for Goods Between US$ 100,001 and US$ 2,999,999 Shopping for Goods Up to US$ 100,000 International Competitive Bidding for US$ 40,000,000 and Above Works National Competitive Bidding for Works Between US$ 100,001 and US$ 39,999,999 Shopping for Works Up to US$ 100,000
Consulting Services Method Comments Consultant's Qualification Selection for Consulting Firm Quality- and Cost-Based Selection for Consulting Firm Individual Consultants Selection for Individual Consultant 48 Appendix 1
2. Goods and Works Contracts
A. PIU 1: Chongqing Transportation Logistics Company
Review Advertisement Package Estimated Number of Procurement (Prior/ Bidding Date No. Number General Description Value Contracts Method Post) Procedure (quarter/year) Comments Chongqing Transportation Logistics Park (CTLP)
1A – Civil Works 1 CTJC05 Office Building A1, Driver Homes A2 26,650,310.00 1 NCB Prior 1S1E Q3 2018 & A3, Repair Shop A6, Warehouses A7 (AreaA) and Earthwork for Area A and B 2 CTJC01 Logistics Exchange Center & Offices 26,582,816.00 1 NCB Prior 1S1E Q2 2019 C1, C2 &C3 (Area C) 3 CTJC02 Driver Homes F1, F2 & F3 (Area F) 34,944,438.00 1 NCB Prior 1S1E Q2 2019 4 CTJC03 Warehouses E1, E2, E3 & E4 (Area 16,452,032.00 1 NCB Prior 1S1E Q3 2019 E) and Container Yard and Truck Repair Shop G1 (Area G) 5 CTJC06 Warehouses B1 & B2 (Area B) 13,659,527.00 1 NCB Prior 1S1E Q3 2019 6 CTJC04 Financial Center D1, D2, D3 & D4 35,564,244.00 1 NCB Prior 1S1E Q4 2020 (Area D) 7 CTJC07 Warehouses A3 & A4 (Area A) 7,817,075.00 1 NCB Prior 1S1E Q1 2021 2A - Goods 8 ETJC01 Container Tractors and Trailers 2,106,918.00 1 NCB Prior 1S1E Q3 2020 9 ETJC02 City Distribution Trucks 7,232,704.00 1 NCB Prior 1S1E Q2 2020 10 ETJC03 Forklift, Container Crane, and 2,531,447.00 1 ICB Prior 1S1E Q3 2021 Container Stacking Machine 11 ETJC04 Tacks and sorting Machine 1,257,862.00 1 NCB Prior 1S1E Q3 2022
Appendix 1 49
B. PIU 2: Chongqing Highway Transportation Company
Review Advertisement Package Estimated Number of Procurement (Prior/ Bidding Date No. Number General Description Value Contracts Method Post) Procedure (quarter/year) Comments Nanpeng Logistics Park (NLP) Areas C & D
1B – Civil Works 1 CNP01 Office #5, Warehouse #6 and 9,395,350.00 1 NCB Prior 1S1E Q2 2018 Earthwork for Area C 2 CNP02 Type B Tax Free Zone Warehouses 32,647,863.00 1 NCB Prior 1S1E Q3 2018 #6 and #7 (Area D) 3 CNP03 Warehouse #1, #2 & #4, and Office 14,374,814.00 1 NCB Prior 1S1E Q3 2018 Building #3 (Area C) 1C – Goods 4 ENP01 Forklift, Container Crane, and 3,000,000.00 1 NCB Prior 1S1E TBD Container Stacking Machine 5 ENP02 Tacks and sorting Machine etc. 2,000,000.00 1 NCB Prior 1S1E TBD
C. PIU 3: Chongqing Ship Company
Review Advertisement Package Estimated Number of Procurement (Prior/ Bidding Date No. Number General Description Value Contracts Method Post) Procedure (quarter/year) Comments Yangtze River Inland Waterway Roll-on/ Roll-off
2B – Goods 1 EDNH01 Roll-on/roll-off Ship Equipment and 2,421,381.00 1 NCB Prior 1S1E Q1 2019 including ship Material for Ship 1 building steel materials, mechanical equipment and electrical equipment 2 EDNH02 Roll-on/roll-off Ship Equipment and 2,421,381.00 1 NCB Prior 1S1E Q1 2020 including ship Materials Ship 2 building steel materials, mechanical equipment, and electrical equipment 50 Appendix 1
3 EDNH03 Roll-on/roll-off Ship Equipment and 2,421,381.00 1 NCB Prior 1S1E Q4 2021 including ship Materials Ship 3 building steel materials, mechanical equipment, and electrical equipment 4 EDNH04 Roll-on/ roll-off Tractors and Trailers1 2,490,566.00 1 NCB Prior 1S1E Q4 2018 5 SDNH01 Inland Waterway Transport Logistics 314,465.00 1 NCB Prior 1S1E Q3 2018 The scope of Information this component will be finalized during loan inception mission.
D. PIU 4: Chongqing Intelligent Logistics Development Company
Review Advertisement Package Estimated Number of Procurement (Prior/ Bidding Date No. Number General Description Value Contracts Method Post) Procedure (quarter/year) Comments Logistics Information System
2C – Goods 1 SIT01 Logistics Information System 1 2,587,233.00 1 NCB Prior 1S1E Q4 2017 These System Framework packages also 2 SIT02 Logistics Information System 2 977,987.00 1 NCB Prior 1S1E Q4 2018 have a Government Services software 3 SIT03 Logistics Information System 3 940,252.00 1 NCB Prior 1S1E Q4 2017 development Logistics Operation and related 4 SIT04 Cloud Based Logistics Information 962,264.00 1 NCB Prior 1S1E Q4 2017 services System 4 Logistics Value Added component. Service
3. Consulting Services Contracts
Advertisement Package Estimated Type of Recruitment Type of Quality-Cost Date No. Number General Description Value Contract Method Proposal Ratio (quarter/year) Comments
1 Tractors and trailers will be procured in separate lots depending on their function and type. Appendix 1 51
Logistics Information System
3A – Consulting Supervision 1 CS1 Project Implementation and Capacity 1,750,000.00 International QCBS STP 90:10 Q4 2017 Estimated Development value includes Capacity Development Training for $250,000 2 CS2 Start Up Support 50,000.00 National ICS Q1 2018 3 CS3 Environmental External Monitoring 100,000.00 National ICS Q1 2018 (LIEC) 4 CS4 Resettlement External Monitoring 100,000.00 National ICS Q1 2018
C. Non-ADB Financing
The following table lists goods, works and consulting services contracts over the life of the project, financed by Non-ADB sources.
Estimated Package Estimated Value Number of Procurement No. Number General Description (cumulative) Contracts Method Comments Works 1 Office and Facilities to Host 6,957,547.00 1 NCB Logistics Information System 2 Roll-on/roll-off Ship Building 5,943,396.00 1 NCB Goods 1 Roll-on/roll-off Tractor and Trailers II 4,669,811.00 1 NCB (24 units tractors and 120 trailers) 2 Container Transport Trucks 2,861,635.00 1 NCB 3 City Distribution Trucks 7,232,704.00 1 NCB 4 Forklifts 1,415,094.00 1 NCB 5 Sorting Machine 1,415,094.00 1 NCB
Estimated Estimated Value Number of Recruitment No. General Description (cumulative) Contracts Method Comments Consulting Services To be confirmed
52 Appendix 1
D. National Competitive Bidding
A. Regulation and Reference Documents
1. The procedures to be followed for national competitive bidding shall be those set forth in The Government Procurement Law of People’s Republic of China approved on 29 June 2002 and Law of the People’s Republic of China on Bid Invitation and Bidding of the People’s Republic of China promulgated on August 30, 1999 with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of the ADB Procurement Guidelines.
B. Procurement Procedures
1. Competitive Bidding Procedure (Procurement Law Art. 26 and Law on Bidding Art. 10).
2. Public tendering is the acceptable method of government procurement, and public invitation is the accepted bid invitation mode.
2. Eligibility
3. The eligibility of bidders shall be as defined under section I of the Procurement Guidelines; accordingly, no bidder or potential bidder should be declared ineligible for reasons other than those provided in section I of the Guidelines, as amended from time to time.
3. Advertising
4. All invitations to prequalify or to bid shall be advertised in the national press (China Daily Newspaper) or a free and open access website (www.chinabidding.com). Such advertisement shall be made in sufficient time for prospective bidders to obtain prequalification or bidding documents and prepare and submit their responses. In any event, a minimum preparation period of twenty-eight (28) days shall be given. The preparation period shall count (a) from the date of advertisement, or (b) when the documents are available for issue, whichever date is later. The advertisement and the prequalification and bidding documents shall specify the deadline for such submission.
4. Bidding Period
5. The minimum bidding period is 28 days prior to the deadline for the submission of bids.
5. Participation by Government-Owned Enterprises
6. Government owned enterprises in the Borrower’s country may be permitted to bid if they can establish that they (a) are legally and financially autonomous, (b) operate under commercial law and (c) are not a dependent agency of the Borrower/Project Executing Agency.
6. Rebidding
Appendix 1 53
7. Re-bidding shall not be allowed solely because the number of bids is less than three (3).
C. Bidding Documents
7. Qualification requirements
8. Qualification requirements of bidders and the method of evaluating the qualification of each bidder shall be specified in detail in the bidding documents, and in the prequalification documents if the bidding is preceded by a prequalification process.
8. Bid Submission and Opening
9. Bidders shall be allowed to submit bids by mail or by hand.
10. All bids shall be opened in public; all bidders shall be afforded an opportunity to be present (either in person or through their representatives) at the time of bid opening, but bidders shall not be required to be present at the bid opening.
9. Bid Evaluation and Award
11. No bid may be rejected solely on the basis that the bid price falls outside any standard contract estimate, or margin or bracket of average bids established by the Borrower/Project Executing Agency.
12. Each contract shall be awarded to the lowest evaluated responsive bidder, that is, the bidder who meets the appropriate standards of capability and resources and whose bid has been determined (a) to be substantially responsive to the bidding documents and (b) to offer the lowest evaluated cost. The winning bidder shall not be required, as a condition of award, to undertake responsibilities for work not stipulated in the bidding documents or otherwise to modify the bid as originally submitted.
10. ADB Policy Clauses
13. Each contract financed with the proceeds of the Loan shall provide that the suppliers and contractors shall permit ADB, at its request, to inspect their accounts and records relating to the performance of the contract and to have said accounts and records audited by auditors appointed by ADB.
14. A provision shall be included in all bidding documents for NCB works and goods contracts financed by ADB stating that the Borrower shall reject a proposal for award if it determines that the bidder recommended for award has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or obstructive practices in competing for the contract in question.
15. A provision shall be included in all bidding documents for NCB works and goods contracts financed by ADB stating that ADB will declare a firm or individual ineligible, either indefinitely or for a stated period, to be awarded a contract financed by ADB, if it at any time determines that the firm or individual has, directly or through an agent, engaged in corrupt, 54 Appendix 1
fraudulent, collusive, coercive or obstructive practices or any integrity violation in competing for, or in executing, ADB-financed contract. Appendix 2 55
CONSULTANT'S TERMS OF REFERENCE
1. The consulting service inputs for project management and capacity development are summarized below in Table 1.
Table 1: Consultant Inputs for Project Management and Capacity Development Person Month Selection Consultant Inputs International National Method 1. Project Implementation Support QCBS a. Project Management Specialist/Team Leader 8 b. Civil Engineering Specialist/Deputy Team 15 Leader c. Logistics and Inland Waterway Transport 8 Specialist d. Environment Supervision Specialist (Internal) 2 10 e. Social Development and Resettlement 2 10 Specialist f. Financial Specialist 3 6 g. Procurement Specialist 15 h. IT Specialist 10 Total 15 74 2. Safeguards Monitoring a. Environmental External Monitoring (loan 4 10 ICS implementation environmental consultant) b. Resettlement External Monitoring 2 10 ICS
3. Start-up/Contract Management and 3 ICS Procurement Specialist
4. Training, Study Tour and Operations a. Overseas Training (i) Logistics Planning and Operation b. Domestic Training (i) Workshop (ii) Study Tour ICS = individual consultants selection, QCBS = quality- and cost-based selection. Source: Asian Development Bank.
2. The project implementation support consulting service will be recruited in accordance with ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time). Chongqing project management office (PMO) and Chongqing Transportation Holding Group Company (CQTG) will be responsible for engaging consultants through quality- and cost-based selection (QCBS) standard quality and cost ratio of 90:10 with simplified technical proposal procedure.
A. Consulting Services for Project Implementation Support (International 15 person- months and 74 person-months National)
3. The project implementation support consulting team will provide project management assistance to the executing agency and implementing agency, and project implementation units (PIUs) to comply with Asian Development Bank procedural requirements including: (a) project management and contract management; (b) project performance management system (PPMS), (c) procurement of contracts, (d) disbursement and contract management, (e) construction planning, supervision and monitoring, (f) reporting requirements, (g) safeguard management 56 Appendix 2
and monitoring, and (h) corporate planning and financial management. The consultants will also provide capacity development support to executing agency/implementing agency and PIUs with: (a) ADB’s procedural requirements of procurement, disbursement, safeguards and financial management; (b) operation and maintenance (O&M) of project components; (c) capacity development policy studies; and (d) training, organization of study visits and workshops.
4. Project Management Specialist/Team Leader (International, 8 person-months)
(i) Oversee project management and technical audit supervision; (ii) Set up institutional framework, operational procedure, document filing system, and work plan to guide and facilitate the project implementation; (iii) Set up PPMS in accordance with ADB’s policy requirements, including establishing baseline and operation mechanism for data collection, analysis, and reporting; (iv) Upgrade and improve the project management information system to: (a) ensure efficient and effective information sharing and coordination about the project management (e.g., procurement, disbursement, construction, safeguard compliance); and (b) monitoring the project’s design and monitoring framework, through the use of the PPMS; (v) Conduct design, technical, and environmental and social review and audit, and provide expert comments on engineering detailed design in accordance with the required design codes and standards; (vi) Assist executing agency/implementing agency and PIU to establish quality assurance (QA) and quality control (QC) system and help the PIUs to implement and monitor the QA/QC program to ensure all works are completed in accordance with contract document requirements; (vii) Assist executing agency/implementing agency and PIUs to establish construction safety program and help PIUs to implement and monitor the safety program and to ensure the safety for all construction actives; (viii) Conduct routine site visits and provide technical inputs to construction planning, supervision, and monitoring for quality control of the subproject construction; (ix) provide expert inputs, review and justification for contract variations and prepare necessary documentations (e.g., a due diligence report) in accordance with the government and ADB requirements; (x) Review procurement documentations including technical specifications, bill of quantity, bidding documents, bid evaluation procedures, and contract negotiations; (xi) Conduct contract management during the project implementation, to include monitoring construction progress, preparing quarterly and annual progress report, reviewing and certifying the contractors’ claims for payments, coordinating project implementation among contractors and various stakeholders, and coordinating daily operational tasks; (xii) Collect all necessary information, edit, draft, and submit on time the reports required under loan and project covenants with quality acceptable to executing agency and ADB; (xiii) Organize and provide training on the skills necessary for construction supervision, project management, and safeguards plans (EMP, resettlement plans) for ADB requirements; (xiv) Discuss with executing agency and implementing agencies to finalize a training plan, organize appropriate training according to the plan, design an evaluation Appendix 2 57
questionnaire to gauge the usefulness of the training/capacity building design and performance of the trainers; (xv) Coordinate and prepare study tours according to training plan to be prepared based on training need analysis during the project implementation; (xvi) Provide training on prevention and control of transmissible diseases and HIV/AIDS, and community disturbance to contractors; (xvii) Organize and provide capacity building for PMO, IAPMO, and PIUs staff with respect to gender and development (xviii) Qualification requirements. Degree in engineering or other related field of study. Post graduate degree would be preferred. The candidate must have at least 10 years working experience similar to this consultancy assignment.
5. Civil Engineering Specialist/Deputy Team Leader (National, 15 person-months)
(i) Oversee project management and technical audit supervision; (ii) Upgrade and improve the project management information system to: (a) ensure efficient and effective information sharing and coordination about the project management (e.g., procurement, disbursement, construction, safeguard compliance); and (b) monitoring the project’s design and monitoring framework, through the use of the PPMS; (iii) Assist executing agency/implementing agency and PIU to establish quality assurance (QA) and quality control (QC) system and help the PIUs to implement and monitor the QA/QC program to ensure all works are completed in accordance with contract document requirements; (iv) Assist executing agency/implementing agency and PIUs to establish construction safety program and help PIUs to implement and monitor the safety program and to ensure the safety for all construction actives; (v) Conduct routine site visits and provide technical inputs to construction planning, supervision, and monitoring for quality control of the subproject construction; (vi) Review procurement documentations including technical specifications, bill of quantity, bidding documents, bid evaluation procedures, and contract negotiations; (vii) Qualification requirements. Degree in civil engineering or other related field of study. Post graduate degree would be preferred. The candidate must have at least 10 years working experience similar to this consultancy assignment.
6. Logistics and IWT Specialist (National, 8 person-months)
(i) Review the government's plans for the logistics parks, engage with the various stakeholders and provide inputs for determining the project scope and developing the project concept;
(ii) Review the government's planning for development of the logistics infrastructure; (iii) Review the project rationale based on problem diagnosis and provide recommendations for ADB involvement and value addition; (iv) Assess the relevance and priority of the project to the developmental strategy of the Government; (v) Identify the main commodities to be handled at the proposed logistics terminals, and the major beneficiaries; 58 Appendix 2
(vi) Assess the current freight movements and traffic levels and assess expected future freight transport demand in and around Chongqing; (vii) Qualification requirements. Degree in engineering or architecture or other related field of study. Post graduate degree would be preferred. The candidate must have at least 5 years working experience similar to this consultancy assignment.
7. Environment Supervision Specialist, Internal (International, 2 person-months, National, 10 person-months)
(i) Provide support for compliance with ADB safeguard policy statement and PRC safeguard requirements; (ii) Review and update the environmental management plan (EMP); (iii) support PIUs in contracting and managing local environmental monitoring stations (EMS) for the conduct of periodic environment impact monitoring in compliance with the approved monitoring plan defined in the updated EMP; (iv) help PMO, IAPMO and PIUs establish management supervision mechanisms for implementation, monitoring and reporting of the project safeguards issues based on the relevant ADB documentation (i.e., EMP) and provide support for their implementation; (v) conduct compliance monitoring of social and safeguards issues, assist the IAPMO and PIUs to formulate corrective actions where necessary, and help the PMO to prepare safeguards and social development section in the semi-annual progress report and annual environment monitoring report; (vi) assist in establishing and managing a grievance redress mechanism (GRM), including assistance to the IAPMO and PIUs to establish project public complaint units, and to provide training for project public complaint members and grievance redress mechanism access points; (vii) assist PMO, IAPMO, PIUs, and other relevant agencies to develop reporting formats and establish mechanisms to prepare and submit the environment safeguards related reports specified in the loan and project agreements; (viii) Qualification requirements. Degree in environmental science or other related field of study. Post graduate degree would be preferred. The candidate must have at least 7 years working experience similar to this consultancy assignment
8. Social Development and Resettlement Specialist (National, 10 person-months).
(i) Assist the implementing agency in implementing the RPs as endorsed by the executing agency and disclosed to the affected persons; (ii) Assist the implementing agencies in finalization of RPs based on detailed measurement survey (DMS); (iii) Provide training to the implementing agency resettlement staff on ADB’s involuntary resettlement policy requirements, especially the staff related to the implementation of the RPs ; (iv) Assist the implementing agency to enhance the consultation and participation of APs including timely information disclosure on various resettlement related issues and policies; (v) Provide guidance to the implementing agency in internal monitoring the RP implementation and preparation of reports; (vi) Provide guidance to the implementing agency in coordinating with various other agencies involved in RP implementation; Appendix 2 59
(vii) Provide assistance to the implementing agency in strengthening its organizational arrangements to effectively implement the RPs; (viii) Assist the implementing agency to identify gaps in RP implementation and suggest appropriate solutions in a timely manner; (ix) Assist the implementing agency on managing grievance redress mechanism, its publicity amongst the affected people and in record keeping of related grievances and redress measures taken; (x) Provide guidance on enhancing the effectiveness of the livelihood restoration program implementation; (xi) Assist the implementing agency on assessing needs of vulnerable group of APs and those APs who are significantly affected by land acquisition and relocation and help develop and implement additional mitigation measures to ensure that they do not fall below the pre-project level; (xii) Assist the implementing agency in monitoring the LAR budget as well as to ensure that any budgetary overruns are quickly arranged; (xiii) Assist the executing agency/implementing agencies in preparation of resettlement completion report as part of the project completion report; and (xiv) Provide guidance to the implementing agencies in record keeping and reporting. (xv) Together with the PMU, supervise civil works activities to ensure that the contractors adhere with the terms of their contract relative to avoiding and/or minimizing resettlement impacts. (xvi) Qualification requirements. She/he shall have at least 10 years working experience, including at least 5 years as a resettlement specialist in similar project assignments in the PRC or other countries in the region, as well as formal qualifications in social sciences (sociology, anthropology, international development) or closely related fields. She/he shall fully understand ADB’s SPS 2009, safeguard requirement II (IR) as well as the PRC policy and legislative commitments on these areas of social safeguards. She/he will have good English written and oral skills. Experience of working as a resettlement specialist for similar projects funded by ADB or other development partners is preferable.
9. Social Development and Resettlement Specialist (International, 2 person-months).
(i) Oversee and support the work of the national resettlement and social development experts and will assist all sub-projects, executing agency and the implementing agency, the relevant district and township stakeholders to implement the project; (ii) Assist in consultations, finalization and implementation of resettlement plan; (iii) Assist in establishment and timely submission of resettlement monitoring procedures (including baseline surveys as required) and reporting formats for managing and documenting land acquisition, compensation and resettlement activities including all social development activities under the Project; (iv) Provide over sight, guide, review and finalize the inputs into all the social development and safeguard documents; (v) Provide guidance, inputs and coordinate with the social development and environment specialist on stakeholder consultations and grievance redress mechanisms and ensure inputs are provided to the team; 60 Appendix 2
(vi) Provide orientation and training to the PIU and other agencies related to sub- project implementation on ADBs SPS and project cycle requirements and safeguard milestones; (vii) Guide the national specialist to support on ADB review mission teams to ensure that RP implementation is being adequately assessed and reported (viii) Assist in recruitment of project staff, as required to ensure effective RP implementation in the project; (ix) Ensure that grievance redress mechanisms are appropriate, and advise if necessary on speedy resolution; (x) Review the approved land acquisition and resettlement plans; and (xi) Ensure compliance with ADB SPS (2009) for all sub-projects. (xii) Qualification requirements. The International Resettlement/social development Specialist will hold a Master's degree from a recognized university in social sciences, sociology or another relevant discipline. He/she will have at least 10 years of work experience in resettlement planning and social development, including 5 years with ODA-funded projects. He/she will have an in-depth understanding of national and international best practices and policy on involuntary resettlement issues, social development, gender issues, and poverty reduction. Extensive experience in community mobilization and analysis of resettlement issues in PRC will be an advantage. He /she must have a clear understanding of resettlement checklists and guidelines of ADB or other international donor agencies and be familiar with ADB Safeguards Policy Statement.
10. Financial Specialist (International, 3 person-months; National, 6 person-months)
(i) establish an efficient and effective financial management system for the project implementation (e.g., fund disbursement management, withdrawal application review, use of loan proceeds and counterpart funds) in accordance with ADB policy and procedural requirements; (ii) assist PMO and PIUs in preparing financial statements and consolidated financial statements according to relevant project financial covenants, and make necessary arrangement with auditing units to supervise the financial management of PIUs; (iii) Qualification requirements. Degree in accounting, finance, or related field. Preferably a Chartered Accountant or Certified Public Accountant and a member of a professional accounting entity. The candidate must have at least 5 years working experience similar to this consultancy assignment.
11. Procurement Specialist (National, 15 person-months)
(i) Assist the executing agency/implementing agency in procurement procedures and contracts and guide preparation of bidding documents for all works and equipment packages, including hands on support as necessary. The bidding documents shall be prepared in accordance with ADB’s latest applicable Standard Bidding Documents (SBD) available in ADB website; (ii) Support for Advance Contracting: Provide all necessary assistance for the procurement of contracts, including but not limited, to advertising the invitation to Appendix 2 61
bid, bid clarifications, addenda, pre-bid meetings, bid openings, bid evaluation and reports, and draft contract documents; and (iii) Qualification requirements. Degree in engineering or other related field of study. Post graduate degree would be preferred. The procurement specialist is required to be familiar with ADB’s procurement guidelines and procedures. The candidate must have at least 5 years working experience similar to this consultancy assignment.
12. IT Specialist (National, 10 person-months)
(i) Review system specifications for Ro-Ro IWT freight collection system, tracking monitoring system, information system and produce recommendations; (ii) Review system specifications for logistics park and Ro-Ro transport control center and produce recommendations; (iii) Review other logistics related systems and communication system and produce recommendations; (iv) Review in-vehicle systems, security (i.e., GPS, CCTV) systems and produce recommendations; (v) Review logistics web site design and specifications for the initial year of its publication (vi) Review bid documents concerning the following additional sections for specification including: (a) Initial management of system; (b) Warranty provision; (c) List of spare parts (initial year of spare parts); (d) List of any required tools, software, and diagnostic equipment; (e) Supply of manuals and instructions; (f) System testing and commissioning process; and (g) System approval process; (vii) assist executing agency/implementing agency and PIUs to introduce the best practices in logistics information system, system structure, system development and management, system operation and maintenance; (viii) Provide advice and recommendations in system development and integration; (ix) Prepare and organize training seminars, study tours and other capacity development activities for logistics information system development, operation and maintenance. (x) Qualification requirements. Degree in computer science, system administration or other relevant field of study. The candidate must have at least 10 years working experience similar to this consultancy assignment
B. Safeguard Monitoring
13. External environment and resettlement monitoring specialist will be engaged intermittently for the whole duration of project implementation. Individual consultants will be engaged. The external environment and resettlement and social monitor will assist PMO, implementing agency and PIUs in: (a) conducting baseline survey of APs and monitoring to ensure implementation of the resettlement plans (RPs) in compliance with ADB’s safeguard and other relevant policies; (ii) making recommendations to resolve any issues or problems on implementation of RPs, and providing advice to the LOCAL PMO and PIUs; (c) paying special attention to vulnerable groups, including women, the poor, and the ethnic minority groups, to assess whether they have participated and fully regained their standard of living; and (d) submitting English and Chinese external resettlement and social monitoring report to PMO and ADB with quality acceptable to ADB every 6 months during resettlement implementation of the project.
62 Appendix 2
14. External Environmental Monitoring Specialist, LIEC (International, 4 person-months [intermittent], National, 10 person-months [intermittent]). The expert will perform the following tasks with the assistance from the national environmental specialist:
(i) Collect relevant information from the implementing agencies and relevant local government agencies on environment impact. (ii) Assist PMOs in updating the environmental management plan (EMP) including environmental monitoring plan as necessary to revise or incorporate additional environmental mitigation and monitoring measures, budget and institutional arrangements, based on the detailed design; submit the revised EMP to ADB for approval and disclosure; (iii) Develop and provide training to staff from PMOs, PIUs, CSCs prior to the commencement of each construction package on the following topics: ADB’s Safeguard Policy Statement (2009), monitoring and reporting requirements of the IEE and EMP, GRM, preparation and implementation of contractor’s EMP, implementation plan, and method statements; (iv) Assist PMOs, implementing agency and PIUs to establish a GRM; assist PMOs, implementing agency and PIUs in conducting consultation meetings with relevant stakeholders as required, informing them of imminent construction works, updating them on the latest project development activities and GRM. (v) Prepare a monthly environmental supervision report template and review the reports provided by the PIUs and CSCs to identify progress with implementation of EMP, key issues and actions and environmental performance; (vi) Assist the PMOs in selecting an external environment monitoring organization; provide guidance to the organization to conduct environmental impact monitoring according to the environmental monitoring plan in the EMP; and coordinate with this organization on all monitoring activities; review external environment monitoring reports (both construction and operation periods) prepared by the organization; (vii) Prepare environmental and safety provisions for the bidding document and contract; (viii) Undertake site visits to assess the implementation of the EMP; verify the implementation of the environmental protection measures specified in the EMP; identify environment-related non-compliance issues, highlight areas of good practice, and oversee implementation of necessary corrective actions; (ix) Identify any environment-related implementation issues and suggest necessary corrective actions, and reflect these in a corrective action plan; (x) Assist PMOs to prepare annual environmental monitoring reports in accordance with ADB requirements; (xi) Work closely with and provide support to the environmental management specialist during the process of establishing the EMS.
15. External Resettlement Monitoring Specialist [(International, 2 persons-month (intermittent), National, 10 persons-month (intermittent)]. The Project requires the services of an international and domestic monitoring and evaluation specialist to conduct an external assessment of the extent to which resettlement and rehabilitation objectives are being met. Specifically, the objectives of the monitoring program are as follows:
(i) Ensure that the standard of living of APs are restored or improved; Appendix 2 63
(ii) Monitor whether the overall project and resettlement objectives are being met in accordance with the Resettlement Plan, and if not to suggest corrective measures; (iii) Assess if rehabilitation measures and compensation are sufficient and comply with the ADB Policy on Involuntary Resettlement; (iv) Identify problems or potential problems; and (v) Identify methods of responding immediately to mitigate problems.
16. The External Monitoring Specialists will submit to PMO and ADB semi-annual reports. Post-evaluation activities will also be carried out one (1) year after the completion of all relocation activities.
17. According to ADB’s SPS 2009 on involuntary resettlement, the resettlement work of this project will be subject to external monitoring and evaluation (M&E). The monitoring will ensure that the land acquisition and resettlement (LAR) are being implemented in accordance with the requirements set out in the RP. The external M&E will also undertake an evaluation of changes in peoples’ standard of living as a result of the project and project-related LAR activities. The terms of reference (TOR) for the LAR M&E is drafted and a firm/agency as external monitor with 8 years of relevant social and resettlement experience will be engaged. The external monitor will work in close coordination with the Social Development and Resettlement Specialists to be contracted for the capacity building.
18. M&E reports will be submitted to Chongqing PMO and ADB regularly twice a year during the implementation period and once a year following project completion. Through external M&E, Chongqing PMO and ADB can fully understand if the LAR work is implemented on schedule and according to the quality standard, point out existing issues, and propose suggestions for improvement.
Scope and Methods of External Monitoring
Baseline Survey
19. The external monitor will undertake a baseline survey of the villager groups affected by land acquisition (LA) and house demolition (HD) in the project, and collect baseline data on the production level and standard of living of the monitored displaced households (standard of living, production, and income levels). The survey of production level and standard of living will be conducted semiannually to track variations. The survey methods include follow-up survey of sample households (minimum sample size: 20% of households affected by both LA and HD, 100% vulnerable households, 100% of affected villager groups; the households will be sampled randomly). A statistical analysis will be made on this basis for evaluation.
Regular Monitoring and Evaluation
20. During the RP (for Chongqing Transportation Logistics Park subproject) implementation, the external monitor will perform regular follow-up resettlement monitoring of the following activities twice a year through field observation, follow-up survey of the sample households, and random interview with the displaced persons. In addition, 24 households are waiting for moving in the resettlement apartments according to DDR for Nanpeng Logistics Park subproject). The external monitor will monitor:
(i) the progress of disbursement of compensation for LA and HD; 64 Appendix 2
(ii) the progress of selection and preparation of resettlement sites including provisions for civic amenities, construction of new apartments, and adequacy of construction; (iii) institutional capacity of the resettlement office—adequate trained staffing, office space and equipment, and provisions for ongoing training; (iv) financial capacity of the implementing agency, particularly the budgetary arrangements and cash flow for resettlement activities; (v) the process of public participation and consultation, ensuring that the public participation and consultation schedule is being followed and outcomes are being incorporated in resettlement implementation process; (vi) the functioning of the GRM; (vii) the progress of livelihood rehabilitation plans and training, restoration of productive assets, and livelihood systems; (viii) rehabilitation of affected shops; (ix) that the vulnerable groups are being provided support in accordance to the criteria set out in the RP; (x) implementation schedule for the RP activities; and (xi) the overall RP implementation process and if any significant involuntary resettlement are identified, the agency will prepare a corrective action plan to address such issues.
21. In addition, the external monitor will be responsible for verifying the internal monitoring reports of implementing agency on implementation and progress of the RP. These internal monitoring reports are prepared by the implementing agency as part of the semi-annual progress report.
22. On the basis of the baseline survey, the external monitoring agency will evaluate the project impacts and will provide a “without” and “with” project comparative analysis.
Monitoring Indicators
23. The following indicators shall be monitored and evaluated in accordance with principles, entitlements, and rehabilitation strategies/plans set out in the RP:
(i) Progress: including preparation, implementation of LA, HD, resettlement site construction, and rehabilitation of livelihoods and living conditions; (ii) Quality: including resettlement implementation, civil construction quality of resettlement sites, timeliness, minimal disturbance/inconvenience and transition time, and degree of APs’ satisfaction; (iii) Entitlements: timely allocation of full compensation entitlements and proper and timely use of funds, and adequate and timely availability of funds for resettlement site construction; (iv) Economic/income conditions: household economic development before and after resettlement, including assets, production materials, subsistence materials, income, savings and debts, income generation potential, etc.; (v) Living conditions: living environment before and after resettlement, including traffic, education, sanitation, social services, commercial service facilities, etc. in the new resettlement sites; (vi) Livelihood/employment: change in livelihood (income sources) and employment, including employment rate, assistance to the different APs, especially for women, Appendix 2 65
and vulnerable APs, and seriously-affected households, such as those at risk of impoverishment due to land loss or housing loss; training and skill enhancement; (vii) Community development: local economy in resettlement sites, environmental development, neighborhood relations and safety, and public opinions (by gender and age groups) after resettlement; and (viii) Conditions of the vulnerable groups and seriously-affected households: including before and after situations of those people.
Monitoring and Evaluation Method
24. The external monitoring agency will use both quantitative and qualitative methods to undertake the M&E such as:
(i) Survey – questionnaire surveys based on random sampling with a minimum sample size of 50% of affected households. The survey will be done on annual basis to assess the impact on yearly basis. Out of the above indicated survey population, the external monitor will select a suitable sample size and will undertake follow-up surveys by using tracer survey method. It will require following the same respondents on a yearly basis to assess the project impacts. (ii) Qualitative interviews and focus group discussions – with project affected persons, village and villager group representatives, officials in PMO and other government departments that are involved in the resettlement process; and (iii) Along with written materials, photos, audio and video records, real objects shall also be used. (iv) Reporting (A external monitoring report framework is provided as appendix that should be followed for reporting). 25. The RP monitoring report will include:
(i) Summary of findings and conclusion of investigations and evaluation; (ii) Major problems identified (existing and potential); (iii) Recommended mitigation or prevention measures which need to be taken; and (iv) Assessment of previous follow-up actions.
26. Reports will be submitted to ADB every 6 months during the resettlement implementation. After the preparation of resettlement completion report, annual evaluations will be conducted for 2 years, or until all issues have been successfully resolved. The final evaluation report should summarize monitoring results and should clearly establish whether resettlement has been successfully completed.
27. All reports will be provided in English and Chinese. It should be ensured that information on the progress and status on all aspects of LAR activities will be provided to the external monitor for verification, including records of grievances.
28. Consultant Specifications and Inputs. Specialists of the external monitor team shall have a degree in a relevant subject (sociology, anthropology, or related subject) with more than 8 years’ experience in M&E of projects funded by ADB or similar international development funding agencies. The consultant’s inputs will be spread intermittently over the life of the project for a total input of 12 months.
C. Start-up/ Contract Management and Procurement Specialist (National, 3 person- months) 66 Appendix 2
29. The Specialist will assist and support the executing agency, implementing agency and PMO during project implementation with review of project organization, operation and systems of monitoring and reporting procedures, in accordance with ADB guidelines. The scope of work are detailed but not limited to the following tasks:
(i) assist in contract bid documentation, bidding and evaluation procedures, and appointment of contractors; (ii) assist in facilitating required approval procedures and financial administration and management; (iii) advice and training on ADB disbursement procedures and assistance in establishing sound accounting, financial management, and reporting systems in accordance with ADB financial management guidelines and disbursement handbook; (iv) finalize the PPMS and implementation for effective safeguards monitoring and reporting; (v) assist in technical, managerial, institutional, coordination and financial activities as appropriate for project completion; (vi) undertake road safety audit at stages of technical design, construction, and operation of the BRT and roads; (vii) coordinate the training of executing agency and implementing agency on EMP and RP implementation; (viii) review bidding documents on environmental protection requirements, preparing semi-annual reports on environmental monitoring to ADB in accordance with external environmental monitor; (ix) advice and training on ADB policy and procedural requirements to ensure full compliance; and (x) assist in developing report formats and establish mechanisms for preparing and submitting the reports specified in the loan and project agreements (xi) Qualification requirements. Degree in engineering or other related field of study. Post graduate degree would be preferred. The procurement specialist is required to be familiar with ADB’s procurement guidelines and procedures. Appendix 3 67
ENVIRONMENTAL MANAGEMENT PLAN
A. Introduction
1. This Environmental Management Plan (EMP) has been prepared for the proposed ADB Loan Chongqing Integrated Logistics Demonstration Project based on the domestic environmental impact tables (EITs), feasibility study reports (FSRs), soil erosion control plans of two logistics bases where the two logistics parks located, as well as the master plans of Banan and Shapingba districts, and other project documents. The EMP covers all project implementation phases, including design and pre-construction, construction, and operation of all project components.
A. Objectives
2. The objectives of the EMP are to ensure implementation of: (i) identified mitigation and management measures to avoid, reduce, mitigate, and compensate for anticipated adverse environment impacts; and (ii) monitoring and reporting against the performance indicators, while ensuring that the project complies with the PRC’s environmental laws, standards and regulations and to ADB Safeguard Policy Statement (2009). Organizational responsibilities and budgets are clearly identified for execution, monitoring and reporting.
3. The EMP defines appropriate mitigation measures for the anticipated environmental impacts, and defines the institutional responsibilities and mechanisms to monitor and ensure compliance. The EMP specifies (i) objectives; (ii) major environmental impacts and mitigation measures; (iii) implementing organization and responsibilities; (iv) inspection, monitoring, and reporting arrangements; (v) training and institutional strengthening; (vi) future public consultation; (vii) a feedback and adjustment mechanism; and (viii) the project level grievance redress mechanism (GRM). The EMP will be reviewed and updated after detailed designs are completed, and will further be revised during implementation if determined that mitigation measures need to be amended or new measures needed. The updated EMP will be disclosed on ADB’s project website.
B. Implementation Arrangements
4. The executing agency for the project is Chongqing Municipal Government (CMG) and the implementing agency is Chongqing Transportation Holding Group Company (CQTG).
5. Chongqing Development and Reform Commission (CQDRC) represents the executing agency to manage and coordinate the project implementation. Chongqing project management office (PMO) has been established under CQDRC to provide overall guidance, supervision, coordination, and management of project preparation and implementation.
6. CQTG, as the implementing agency of the project, will be responsible to coordinate and implement all project components. Established in 2004, CQTG is a municipal government owned enterprise with numbers of subsidiary companies including Chongqing Highway Transport Company, Chongqing Automobile Transport Ltd, Chongqing Long Distance Bus Co Ltd, Chongqing Transportation Co Ltd, Chongqing Transport and Logistic Co Ltd, Chongqing Ship Company, and Chongqing Passenger Ship Company. CQTG has been designated by CMG in charge of Chongqing logistics and transport development. An implementing agency project management office has been established in CQTG with a company deputy general manager assigned as the director with the overall responsibility for the project implementation. 68 Appendix 3
The PMO of the implementing agency is established in Logistics Division with the division chief assigned as the deputy director in charge of daily operation.
7. Four project implementing units (PIUs) have been established within the subsidiary companies of the CQTG for implementing the four project outputs. PIU1 is established in Chongqing Transportation Logistics Company with the responsibility for implementing construction of Chongqing Transportation Logistics Park at Tuanjiecun (Output 1). PIU2 is established in Chongqing Highway Transportation Company with the responsibility of implementing the construction of Nanpeng Logistics Park (Output 2). PIU3 is established in Chongqing Ship Company for the implementation of the inland waterway Ro-Ro transport output (Output 3). PIU4 is established in the newly formed Chongqing Intelligent Logistics Development Company for the implementation of the logistics information system (Output 4). Since PIU4 only involves software development and implementation, it does not have any EMP implementation responsibilities. The other three PIUs will have responsibilities to implement relevant provisions as specified in this EMP.
8. Construction contractors will be responsible for implementing the mitigation measures during construction under the supervision of the PIUs and construction supervision companies. In their bids, contractors will be required to respond to the environmental specifications in the bidding documents (see Section K of this EMP for details). Each contractor will be required to develop site specific EMPs and will assign a person responsible for environment, health and safety. After project completion, environmental management responsibilities will be handed over to the operation and maintenance units.
C. Organizations and Their Responsibilities for EMP Implementation
9. In the design stage the design institutes should incorporate mitigation measures into the detailed designs. The EMP will be reviewed and updated as necessary when the detailed designs are completed. Applicable EMP provisions will be incorporated into bidding documents for civil works. To ensure that bidders will respond to the EMP requirements, the PMO, the implementing agency and PIUs will ensure EMP specific clauses as specified in Section K of this EMP be incorporated into the bidding documents. The EMP implementation arrangements and responsibilities of each organization are summarized in Table EMP-1.
Table EMP-1: Summary Institutional Responsibilities for EMP Implementation Agency Environmental Management Roles and Responsibilities EA - CMG Overall policy and direction control. Responsible for project coordination with two project district governments, liaison with ADB, financial management and administration, providing guidance to PMO. Chongqing Project Primarily responsible for implementation of project components, Management Office including finance and administration, technical and procurement (PMO) matters, monitoring and evaluation, and safeguard compliance; Assign one environment specialist as EMP officer/coordinator who will (i) supervise contractors and their compliance with the EMP; (ii) conduct regular site inspections; (iii) act as local entry point for the project GRM; (iv) review environmental quality monitoring results provided by the implementing agency; Communicate and coordinate with ADB for project management and implementation; submit the project implementation progress reports and safeguard compliance monitoring reports to ADB; Submit bidding documents, bid evaluation reports and other necessary Appendix 3 69
Agency Environmental Management Roles and Responsibilities documentation to ADB for review and approval; Engaging loan implementation consultants (LIC), including environmental specialists to assist in supervision, tracking and reporting on EMP implementation for all packages; and Engage local EMS or a certified entity for environmental impact monitoring; Consolidate data from environmental monitoring reports into annual environmental monitoring reports and submit them to ADB for review and disclosure. ADB Monitor and supervise the overall environmental performance of the project; Review the annual environment performance reports and disclose the reports on ADB website upon receipt (within 14 calendar days) in line with ADB Public Communications Policy (2011); conduct due diligence of environment issues and advise on corrective actions during the project review missions. Implementation Agency Responsible for day to day management work during the project preparation and implementation periods; assign an environmental specialist to supervise and monitor the implementation of EMP; and liaison between PMO and PIUs. PIUs Responsible for all day-to-day work during the project implementation: Communicate and coordinate with implementing agency for project management and implementation; Establish environment management unit (EMU) and appoint an environment specialist as EMP coordinator; Incorporate EMP clauses in bidding documents for civil works; Establishment of a dedicated Project Complaints Coordinating Unit (PCCU); Supervision and monitoring of the EMP implementation and reporting to the implementing agency and PMO; Participation in capacity building and training programs; Submit annual project financial statements to the implementing agency and PMO; Engage design institutes to complete preliminary and detailed engineering designs; and Engage construction supervision companies (CSC). Contractor, Construction Construction contractors will develop site-specific EMPs on the basis of the supervision Companies project EMP and will be responsible for implementing mitigation measures (CSCs) during construction under the supervision of the CSCs. CSCs will be selected through the PRC bidding procedure by the implementing agency/PIUs. The CSCs will be responsible for supervising construction progress and quality, and EMP implementation on construction sites. Each CSC shall have at least one environmental engineer on each construction site to: (i) supervise the contractor’s EMP implementation performance; and (ii) prepare the contractor’s environmental management performance section in monthly project progress reports to be submitted to the implementing agency and PMO. Loan Implementation Provide technical assistance to the PMO/implementing agency/PIU for Environmental implementing the EMP; Provide training to the staff of the consultant (LIEC) PMO/implementing agency/PIU, contractor and CSCs; Assist the PMO/implementing agency in preparing environmental monitoring reports. Review updated EMP, confirm that mitigation measures have been included in engineering detailed design. Review bidding documents to ensure that the 70 Appendix 3
Agency Environmental Management Roles and Responsibilities EMP clauses are incorporated. Advise on mitigation measures, provide technical support, and conduct environmental training. Conduct annual EMP compliance review, support PMO in preparing project progress reports and annual environmental monitoring until a PCR is issued. Facility Operators Ensure proper operation of component facilities according to design standards; implement mitigation measures if needed. District EMS or certified Conduct environmental impact monitoring according to the EMP monitoring environmental entity plan and submit monitoring results to the PMO. District EPB Inspect the facilities during construction and operation to ensure compliance; Enforce applicable environmental laws and regulations. Source: TA consultants.
D. Potential Impacts and Mitigation Measures
10. Tables EMP-2 to EMP-5 list the anticipated impacts of Chongqing Transportation Logistics Park (Output 1), Nanpeng Logistics Park (Output 2) and the inland waterway ro-ro transport (Output 3) during project preparation, implementation and operation as identified by the domestic EITs and the IEE, as well as corresponding mitigation measures defined to minimize those impacts. The mitigation measures will be incorporated into detailed design, bidding documents, construction contracts and operational management manuals, which will mainly be implemented by the design institutes (during detailed design) and contractors (during construction), under the supervision of CSCs, PMO and implementing agency, with technical support from the LIEC. The effectiveness of these measures will be evaluated based on environmental inspections and monitoring to determine whether they should be continued, improved or adjusted.
Table EMP-2: Potential Impacts and Mitigation Measures during Preconstruction and Construction Phases Estimated Potential Responsibility Cost Source Item Impacts and Mitigation Measures and/or Safeguards (10,000 CNY) of Funds Issues Who Who Output 1 Output 2 Implement Supervise A. Design & Preconstruction Phases Detailed Institutional Establish EMUs in PMO/IA, including at PMO, EA, - - Included design strengthening least one environment specialist; PIUs ADB in the stage for Appoint environmental coordinators for EMP design implementing coordination within PMO and IA; contracts EMP and Engage LIEC under the LIC; and supervision Provide training to all environmental staff for EMP implementation and supervision Updating Update mitigation and monitoring measures PMO, EPB, - - PMO loan EMP defined in this EMP based on final detailed IA, ADB implemen design, submit to ADB for review; and in LIEC tation on case of major change of project location (or TA additional physical component) that may cause significant environmental impacts or involve additional APs, IA should engage an environmental institute to update the EITs including public consultation. The revised EIT should be submitted to EPB and ADB for approval and disclosure. To determine whether the change is minor or major, PMO should consult with ADB. Appendix 3 71
Soil Loss of land Minimize land take for development. Design PMO, - - Included resources and topsoil, Incorporate landscape features in design; institute IA in the increasing Retain/incorporate landscape features of design risk of interest in design. contract erosion Optimize balance between cut and fill and avoid deep cuts and high embankments to minimize earthworks. Maximize reuse of spoil and other material within the construction or adjacent construction works. Agree on spoil disposal sites, management and rehabilitation plan with local EPB. Specify removal and storage of topsoil for restoration works prior to main earthworks. Specify vegetation that serves specific bioengineering functions and is of local provenance. Design appropriate drainage systems for slopes to reduce soil erosion. Materials Efficient Adopt LEED for Information Design PMO, - - Included usage of Exchange Center Building and institute IA in the resources Chongqing/PRC Green Building for design Administration Building for Outputs 1; and contract Adopt Chongqing/PRC Green Building for Administration Building for Outputs 2; Use local materials about 30%. Specify energy efficient lighting systems. Specify materials that have recycled content or are from sustainable sources. Specify the use of low-E vacuum glass for windows. Designate areas for packaging materials collection and recycling. Climate Consider Consider potential impacts from Design PMO, Included change adaption to extreme weather events due to climate institute IA in the extreme change in designing subgrade, pavement, design weather drainage system, and the structures of the contract events logistics facilities; Increase the stormwater drainage capacity by 10%; and Adopt appropriate protective measures such as green roofs, vegetation cover, permeable paving, stormwater retention ponds. Specify appropriate insulation materials and mechanical systems to take account of future possible increase in cooling requirements. Emission Minimize air Specify local materials from Design PMO, Included emissions licensed providers that minimize transport institute IA in the distance; and design Locations for borrow areas and contract concrete batching stations must be at least 300 m downwind of the nearest household. Water bodies Minimize risk Technical design must ensure that Design PMO Included of polluted drainage design and discharge locations institute in the run-off into minimize risk of polluting nearby water design 72 Appendix 3
water bodies bodies; contract Design the on-site wastewater treatment facilities at two logistics parks with appropriate technology and adequate capacities; and Ensure water is treated to the relevant standard prior to discharge to the municipal sewer system. Construction Implementati Engage a project implementation PMO EA, ADB Preparation on consulting consulting firm (including domestic and ADB Loan firm international environmental specialists) following ADB’s guidelines. Institutional Appoint one qualified environment PMO EA Included strengthening specialist within the PMO; engage LIEC as in an external monitor within LIC services by detailed the PMO to monitor and verify the design implementation of the EMP. contract Environmenta Engage EMS or a certified PIUs, PMO, l monitoring environmental monitoring entity prior to EMS IA plan construction; Prepare an environmental monitoring plan in accordance with EMP. Update EMP Mitigation measures defined in the PIUs, IA PMO, Matching EMP will be updated based on final LIEC fund of technical designs. CQTGP Land- The Resettlement Plan is based on PIUs, Bureau Included acquisition final Detailed Measurement Survey. land of civil in land and Establish a resettlement office that acquisiti affairs, acquisiti resettlement includes local officials to manage land on and bureau on and acquisition and resettlement; resettle of land resettlem Guide community consulting ment manage ent procedure; office ment, budget Ensure all land acquisition issues PMO are resolved before construction. Contract Environmental clauses as specified DIs, IA, PMO, Included documents in the Section K of this EMP will be PIUs LIEC, in incorporated in the Technical Specifications tender detailed in the bidding document and contracts. compan design y, ADB contract Site-specific Contractors shall prepare site- Contrac IA, Included EMP specific EMPs which will include method tors LIEC in the statement for each key construction activity construc and associated mitigation measures. tion These site-specific EMPs shall be contract submitted to the PMO and the LIEC for review and approval. All contractors and subcontractors shall comply with approved EMPs. EMP training The LIC services (mainly but not LIEC, EPB, Included exclusively through the LIEC) will provide PMO ADB in the training on preparation of site-specific project EMPs, implementation and supervision of impleme environmental mitigation and monitoring ntation measures to relevant staff of contractors, consulta CSCs, PMO, the IA and PIUs. nt LIEC will provide on-site training of budget EMP preparation, mitigation measures and implementation and supervision of Appendix 3 73
monitoring measures to related personnel of PMO, IA, and PIUs. Establish Establish a PPCU and provide IA PMO, Included operational training for PPCU staff and GRM access LIEC, in PIUs GRM points; ADB budget Disclose PPCU’s phone number, fax, address, and email to the public on information boards at each construction site; Establish database for feedbacks. B. Construction Phase Topography Earthwork, Fully understand all soil erosion Contrac PIUs, 90 48 Included and Soils soil erosion, requirements and have developed tor, LIEC, in the soil appropriate method statements and CSCs PMO, construc contaminatio management proposals; local tion n Construct intercepting ditches and EPBs, contract berms to direct rainwater runoff away from water exposed surface, if necessary; resourc Install drainage ditches and e sedimentation tanks in temporary bureau construction areas to prevent soil erosion and to manage run-off; Strip and store topsoil in a stockpile for reuse in restoration; Use approved spoil disposal and borrow pit locations, as defined in the construction tender documents; only use materials from borrow pits that have been approved. Limit construction and material handling during periods of rains and high winds; Contractors should plan their work in borrow areas and spoil disposal sites so that the open area is minimized and rehabilitation can be completed progressively; Restoration of spoil disposal sites and borrow areas will follow the completion of works in full compliance with all applicable standards and specifications, and will be required before final acceptance and payment under the terms of contracts; Conduct project completion audit to confirm that spoil disposal site and borrow area rehabilitation meets required standard, contractor liable in case of non- compliance; Stabilize all cut slopes, embankments, and other erosion-prone working areas while works are going on; Properly store petroleum products, hazardous materials and wastes on impermeable surfaces in secured and covered areas; Establish emergency preparedness and response plan including spill cleanup equipment at each construction site and training in emergency spill response procedures; If there is a spill take immediate 74 Appendix 3
action to prevent entering drains, watercourses, unmade ground or porous surfaces. Do not hose the spillage down or use any detergents. Use oil absorbents and dispose of used absorbents at a waste management facility; Report any spill events and actions taken in environmental monitoring logs and report to the environmental consultant; Stabilize all earthwork disturbance areas within 30 days after earthworks have ceased at the sites; and Pay close attention to drainage provision and establish vegetation cover on backfilled areas to prevent soil erosion. Ambient Air Fugitive dust Provide masks for operating Contrac IA, 19 14 Included generated by personnel; tors, PIUs, in the construction Equip material stockpiles and CSCs LIEC, construc activities, concrete mixing equipment with dust PMO tion gaseous air shrouds, maintain shrouds regularly; contract pollution Mount protective canvasses on all (SO2, CO, trucks which transport material that could NOx) from generate dust; construction Keep construction vehicles and machinery machinery in good working order, regularly service and turn off engines when not in use; Assign haulage routes and schedules to avoid transport occurring in the central areas, traffic intensive areas, residential areas, local schools or hospitals. Vehicle speed on unpaved haul roads will be restricted to 10 km/hr. or less; Spray water on construction sites and earth/material handling routes where fugitive dust is being generated; Cover materials during truck transport, in particular, the fine material, to avoid spillage or dust generation; Vehicles with an open load- carrying case, which transport potentially dust producing materials, shall have proper fitting sides and tail boards. Dust-prone materials shall not be loaded to a level higher than the side and tail boards, and shall always be covered with a strong tarpaulin; Install wheel washing equipment or conduct wheel washing manually at each exit of the works area to prevent trucks from carrying muddy or dusty substance onto public roads; Store construction materials in appropriate places and cover them to minimize fugitive dust emissions; In periods of high wind, dust- generating operations shall not be permitted within 200 m of residential areas. Special precautions need to be taken in the vicinity of sensitive areas such as schools, kindergartens and hospitals; Appendix 3 75
Minimize storage time of construction and demolition wastes on site by regularly removing them off site; Unauthorized burning of construction and demolition waste material and refuse shall be subject to penalties for the contractor, and withholding of payment; Ensure emissions from vehicle and construction machineries are in compliance with the PRC standards of GB18352-2005, GB17691-2005,GB11340-2005, GB2847- 2005, and GB18285-2005; Use high-horsepower equipment with tail gas purifiers; Carry out atmospheric monitoring during the construction period; Keep the public informed of construction schedules, dusty and noisy activities, and access to the grievance redress mechanism. Post the complaint hotline number at all work site and construction camp entrances. Noise Noise During daytime construction, the Contrac IA, 6 5 Included generated contractor will ensure that: (a) noise levels tors, PIUs, in from from equipment and machinery conform to CSCs LIEC, construc construction the PRC standard for Noise Standards for PMO tion activities Construction Sites (GB12523-2011) and the contract WBG EHS Standards; (b) only low noise machinery or the equipment with sound insulation is employed; and (c) concrete mixers and similar activities will be located at least 300 m away from the nearest sensitive receptor.; Night time (between 22:00 and 06:00 hours) construction shall be avoided as much as possible, especially for Chongqing Transportation Logistics Park if resettlement for some residents have not be completed. If night time construction work is needed, the contractors should prevent using high sound power level equipment and inform nearby residents of such night time activities well beforehand. Apply noise reduction devices or methods where piling equipment is operating, such as construction within 300 m of sensitive sites; Locate sites for rock crushing, concrete-mixing, and similar activities at least 1000 m away from sensitive areas; To reduce noise at night, restrict the operation of machinery generating high levels of noise, such as piling, and movement of heavy vehicles along urban and village roads between 8 pm to 6 am; Place temporary hoardings or noise barriers around noise sources during construction, if necessary; Monitor noise at sensitive areas and consult potentially affected people at 76 Appendix 3
regular intervals (refer to the monitoring plan in the EMP). If noise standards are exceeded, equipment and construction conditions shall be checked, and mitigation measures shall be implemented to rectify the situation; Provide the construction workers with suitable hearing protection (ear muffs) according to the worker health protection law of the PRC; Control the speed of bulldozer, excavator, crusher and other transport vehicles travelling on site, adopt noise reduction measures on equipment; ensure regular equipment repair and maintenance to keep them in good working condition; Limit the speed of vehicles travelling on construction sites and haul roads (less than 10 km/h), forbid the use of horns unless absolutely necessary, minimize the use of whistles. Maintain continual communication with residents and communities within the project influence area and ensure GRM is accessible and effective. Wastewater Wastewater Portable toilets and small package Contrac IA, 18 14 Included generated wastewater treatment plants and or septic tors, PIUs, in during tanks will be provided on construction sites CSCs, LIEC, construc construction for the workers. When the public sewer line EMS PMO tion is completed within the logistics base, contract interim storage tanks and pipelines will be installed to convey wastewater to public sewers. Construction sites and construction camps shall also have drainage provisions to collect and treat site runoff; Treated in temporary biochemical tank and reused for construction water spray. Equip all areas where construction equipment is being washed with water collection basins and sediment traps; Place storage facilities for fuels, oil, and other hazardous materials within secured areas on impermeable surfaces, and provide bunds and cleanup installations; Construction machinery will be repaired and washed at designated locations. Material stockpiles will be protected against wind and runoff waters which might transport them to surface waters. Contractors’ fuel suppliers must be properly licensed and follow proper protocol for transferring fuel and the PRC standard of JT3145-88 (Transportation, Loading and Unloading of Dangerous or Harmful Goods); Ensure that water quality (for pollutants such as SS, CODcr, and oil) is monitored in accordance with the EMP monitoring program; Appendix 3 77
Any spills are to be cleaned up according to PRC norms and codes within 24 hours of the occurrence, with contaminated soils and water treated according to PRC and Chongqing requirements. Records must be handed over without delay to the PMO and local EPB. An emergency spill contingency plan shall be prepared by the contractors as part of the SEMP and personnel will be trained in its use. Solid Waste Solid waste Manage materials on site Contrac IA, 30 20 Included generated by effectively through good house-keeping and tors, PIUs, in construction work planning to minimize waste CSCs LIEC, construc activities and generation; PMO tion from workers’ Strip and store topsoil in a contract camps stockpile for reuse in restoration; Use approved spoil disposal sites and borrow areas and contractors will only use material from borrow pits that have been approved; Spoil disposal sites and borrow areas shall be within the property boundaries of the two logistics parks and away from water body and residential areas; Contractors should plan their work in borrow areas and spoil disposal sites so that the open area is minimized and rehabilitation can be completed progressively Maximize the re-use of earth cut materials and C&D wastes on the project; Restoration of spoil disposal sites and borrow areas will follow the completion of works in full compliance with all applicable PRC standards and specifications, and will be required before final acceptance and payment under the terms of contracts; If spoil occurs, properly remove and dispose of any significant residual materials, wastes and contaminated soils that remain on the ground during and after construction to the spoil sites. Any planned paving or vegetation of the area shall be done as soon as the materials are removed to stabilize the soil; Burning of waste is strictly prohibited; and Conduct project completion audit to confirm that spoil disposal site and borrow area rehabilitation meets required standard and contractor is liable in case of noncompliance. C&D waste Temporary storage and permanent management disposal of C&D wastes at designated sites only. These sites shall be at least 300 m from any water body. Attempts shall be made to maximize the re-use of earth cut materials 78 Appendix 3
and C&D wastes on the project. Ensure C&D waste is enclosed during transport. Establish enclosed waste collection points on site, with separation of domestic, construction and recyclable waste streams. Set up centralized domestic waste collection point and transport offsite for disposal and or recycling at a registered waste handling facility. Physical Destruction of Contractor must comply with Contrac IA, - - None Cultural buried PRC's Cultural Relics Protection Law and tors Bureau Resources cultural relics Cultural Relics Protection Law of Implementation Regulations if such relics Cultural are discovered during construction; Relics, Stop work immediately and notify LIEC the local cultural authority, adopt measures to protect the site. Socio- Community Prepare a traffic control plan, to be Contrac PIUs, 20 Included economic health and approved by traffic management bureau tors, LIEC in resources safety before construction. The plan shall include CSCs construc provisions for diverting or scheduling tion construction traffic to avoid morning and contract afternoon rush hours; Underground utilities will be identified prior to any earth moving work. Construction activities will be planned so as to minimize disturbances to these utilities if they are located near the construction sites; Regulating traffic at road crossings, selecting transport routes to reduce disturbance to regular traffic, reinstating roads, and opening them to traffic as soon as the construction is completed; Plan construction activities to minimize disturbances to utility services, if any; Inform residents and businesses in advance through media of the construction activities, given the dates and duration of expected disruption; Place clear signs at construction sites in view of the public, warning people against potential dangers such as moving vehicles, hazardous materials, excavations, and raising awareness on safety issues; Heavy machinery shall not be used at night; and Secure construction sites and equipment, to prevent access by the public through appropriate fencing or security personnel. Grievance Handling and Establish a GRM, appoint a GRM IA, PIUs PMO - - CQTG redress resolving coordinator within PIUs and PIUs mechanism complaints on Brief and provide training to GRM budget contractors access points (IA, PMO, contractors); Disclose GRM to affected people before construction begins at the main Appendix 3 79
entrance to each construction site; and Maintain and update a database to document all complaints. Occupational Construction Each contractor shall provide Contractors Included health and site sanitation adequate and functional systems for CSCs, IA, PIUs, in safety sanitary conditions, toilet facilities, waste LIEC construc (OHS) management with waste separation, labor tion dormitories and cooking facilities; contract Effectively clean and disinfect the site. During site formation, spray with phenolated water for disinfection. Disinfect toilets and refuse bins and ensure timely removal of solid waste; Exterminate rodents on site at least once every 3 months, and exterminate mosquitoes and flies at least twice each year; Provide public toilets in accordance with the requirements of labor management and sanitation departments in the living areas on construction site, and appoint designated staff responsible for cleaning and disinfection; Work camp wastewater shall be discharged into the municipal sewer system or treated on-site using a portable system. Occupational Provide personal protective safety equipment (safety hats and shoes) to all construction workers Provide ear defenders to workers operating and working near noisy PME; Prepare and obtain approvals of method statements for hazardous activities such as excavation; Provide clean water for all construction sites and workers’ camps; Provide an adequate number of latrines and other sanitary arrangements at construction sites and work camps, and ensure that they are cleaned and maintained in a hygienic state; Garbage bins at construction sites and camps will be set up, which will be periodically emptied and cleared to prevent outbreak of diseases; An emergency response plan to take actions on accidents and emergencies will be prepared, including environmental and public health emergencies associated with hazardous material spills and similar events. A fully equipped first-aid base in each construction camp will be organized; and Ensure that occupational health and safety matters are given a high priority and awareness and other training will be provided to all persons working or visiting the construction sites. Safety posters will be displayed prominently in relevant areas of the site. 80 Appendix 3
Food safety Inspect and supervise food hygiene in canteens on site regularly; Canteen workers must have valid health permits; and If food poisoning is discovered, implement effective control measures immediately to prevent it from spreading and take affected people to local hospital immediately. Disease All contracted labor shall undergo prevention, a medical examination which should form health the basis of an (obligatory) health/accident services insurance and welfare provisions to be included in the work contracts. The contractors shall maintain records of health and welfare conditions for each person contractually engaged; Establish health clinic at location where workers are concentrated, which should be equipped with common medical supplies and medication for simple treatment and emergency treatment for accidents; Specify (by the IA and contractors) the person responsible for health and epidemic prevention and education and training on food hygiene and disease prevention to raise the awareness of workers; and Provide induction and training by local health departments on prevention and management of communicable diseases. Social conflict No major social risks and/or prevention vulnerabilities are anticipated as a result of the project; The project construction workers will be engaged locally; and Civil works contracts will stipulate priorities to (a) employ local people for works, (b) ensure equal opportunities for women and men, (c) pay equal wages for work of equal value, and to pay women’s wages directly to them; and (d) not employ child or forced labor. Cumulative Cumulative Contractors shall coordinate with Contrac IA, - - None Impacts impacts other project contracts and other projects in tors, PMO during the area of influence in terms of CSCs construction construction schedule, access roads and disposal sites sharing; Contractors shall develop material transport plans in consultation with local traffic management authorities, other contractors, and local community; and Provide induction and training by local health departments on prevention and management of communicable diseases. Total 188 101 Source: TA consultants and EITs.
Appendix 3 81
Table EMP-3: Potential Impacts and Mitigation Measures during Operation—Outputs 1 &2 Logistic Parks Budget (10,000 Responsibility Potential CNY) Impacts Source Item Mitigation Measures and/or Safeguards Who Output and Who Output of Funds Supervi 2 issues Implement 1 se Ambient Excessive Conduct periodic examination of Operator of Local 3.8/a 3.8/a Facility Air vehicle emission of vehicle exhaust pollutants for project EPB, IA Operatio emissions each vehicle in accordance with PRC facilities n budget , affecting regulation (GB18352.3-2005); (OPFs), ambient Conduct periodic air quality Traffic air quality monitoring (through the EMS) in Manageme accordance with the monitoring program in nt Bureau the EMP. (TMB), EMS Acoustic Traffic Conduct ambient noise monitoring OPFs, IA, 0.52/a 0.52/a EPBs Environ noise and inspection; determine whether EMS PMO, budget ment mitigation measures will be required for local sites where noise levels are expected to EPB exceed the standard. Climate Develop flood emergency OPFs, CMG Facility Change response plan and ensure awareness and operation Adaptati training of staff in the event of an budget on emergency. Solid Solid Install and regularly maintain OPFs, EPB, 19/a 18/a Facility Waste waste stormwater collection, storage and Municipal water operation and infiltration system; drainage resource budget Wastewa Routinely collect and properly company, bureau ter dispose solid waste from the sites; EMS Place garbage bins and containers around the facilities; Bag all industrial waste and transport it to the designated landfill on a daily basis; Waste packages (including pallets and cardboard) will be recycled and reused; Recycle batteries for electric forklift after 5000 hours in use to the manufacturer. Sewers, Regularly inspect and maintain OPFs, Local 3/a 3/a Facility wastewat project sewer network within the facilities; EMS, EPB operation er Regularly inspect and maintain Municipal budget collection biochemical tanks; and drainage and Conduct monitoring for discharged company treatment wastewater to ensure the quality meets standards. ISO ISO14001 ISO certificates (ISO14001 and 12.2 for 10.9 for Operation Certificat and ISO9001) will be obtained within one year OPFs PMO 3 years 3 years budget ion ISO9001 of project completion. certified LEED Information Exchange Center OPFs IA and Building for Output 1 will be LEED certified; Green and Building Administration Building for Outputs Certificat 1 and 2 will be certified as Green Building ion per Chongqing and PRC standards. Total 38.52/a 36.2a Source: EITs and TA consultants. 82 Appendix 3
Table EMP-4: Potential Impacts and Mitigation Measures during Operation— Output 3: Inland Waterway Transport Potential Who Implement Mitigation Measures and/or Budget Source of Item Impacts and Who Safeguards (10,000 CNY) Funds issues Supervise Ambient Air Excessive Conduct periodic OPF, Traffic Local 10.0/a OPF’s vehicle examination of emission of vehicles Manageme EPB, IA budget emissions and ships exhaust pollutants for nt Bureau and dusts, each vehicle in accordance with (TMB), affecting PRC regulation (GB18352.3-2005); EMS ambient air Conduct periodic air quality quality monitoring (through the EMS) in accordance with the monitoring program in the EMP; and Use LNG as fuel to reduce emission. Acoustic Traffic noise Conduct ambient noise EMS Local 4.0/a EPBs Environmen monitoring and inspection, determine EPB budget t whether mitigation measures will be required for sites where noise levels are expected to exceed the standard. Safety Road safety Strictly enforce traffic law to Local traffic 15.0/a O&M Unit’s Measures and traffic improve road safety and reduce police, operation traffic accidents; OPF, truck budget Set speed limit for drop- drivers and-haul trucks to 10 km/hour within the facility; Employ traffic control when necessary Provide safety training to all employees including truck drivers; and Specify equivalent safety requirements for the third-party trucking companies. Water Vessel When adding fuel and OPF, EPB 3.0/a OPF quality, pollution lubrication, relevant regulations must wastewater operation waste control be strictly implemented; treatment budget water and Staff in charge of fueling plant, EMS, solid must present; Before loading oil, Municipal waste measurements of oil compartments water should be completed and all the company information should be collected to avoid oil spilling; After valves of fuel and lubricant are carefully inspected, tubes are checked, and drip pans are placed under the pipe joints, oil loading can be practiced; During oil loading, oil level change should always be inspected, so that engineers could make sure if any leak is happening through the pipes and pipe joints. If a leak is found, oil loading should be stopped immediately; the cause of leak should be Appendix 3 83
Potential Who Implement Mitigation Measures and/or Budget Source of Item Impacts and Who Safeguards (10,000 CNY) Funds issues Supervise identified, and corrected before the oil loading could be continued; If any leak happens, rescue measures shall be executed strictly according to The Ship Oil Pollution Emergency Plan; The wastewater and trash produced by vessels should be collected by ports and piers in order to effectively reduce the pollution. Total Cost 32/a Source: FRS and TA consultants.
84 Appendix 3
E. Environmental Monitoring, Inspection and Reporting
11. Environmental monitoring. The project monitoring program focuses on the environment within the project‘s areas of influence in Outputs 1, 2 and 3. A detailed environmental monitoring program has been developed which covers the scope of monitoring, monitoring parameters, time and frequency, implementing and supervising agencies, and estimated costs. The monitoring shall comply with the methodology provided in the relevant national environmental monitoring standards. Other associated standards to be followed are the national environmental quality standards of air, water and noise, and the pollutant discharge standards. The environmental monitoring programs for Outputs 1, 2 and 3 are shown in tables EMP-5, EMP-6 and EMP-7.
12. Internal monitoring/supervision and reporting by CSCs. During construction periods, CSCs will be responsible for conducting internal environmental monitoring in accordance with the monitoring plan (EMP-5, EMP-6). Supervision results will be reported through the CSCs’ reports to the implementing agency.
13. External Environmental compliance monitoring by EMS. The PMO will contract the local EMS or a certified environmental entity to conduct environmental monitoring in accordance with the monitoring program (EMP-5, EMP-6). A detailed cost breakdown will be provided by the two district EMSs when the environmental monitoring program is updated and finalized prior to implementation.
14. EMP implementation monitoring and progress reporting. The LIEC will review project progress and compliance with the EMP based on field visits, and review of the environmental monitoring results conducted by the EMSs. The findings will be reported to ADB through the annual environmental monitoring reports and project progress reports provided by PMO with support from the LIC and LIEC. The reports will include (i) progress made in EMP implementation, (ii) overall effectiveness of the EMP implementation (including public and occupational health and safety), (iii) environmental monitoring and compliance, (iv) institutional strengthening and training, (v) public consultation, information disclosure and GRM, and (vi) any problems encountered during construction and operation, and the relevant corrective actions undertaken. ADB will disclose the English version of the reports on the project website.
15. Project progress reports. A summary of the project’s environment performance and compliance with the EMP will be included in the project progress reports to be submitted by the PMO to ADB, any significant issues or grievances raised will be highlighted. The progress reports will cover, among other things: (i) progress achieved by output as measured through the indicator's performance targets, (ii) key implementation issues and solutions, (iii) updated procurement plan, and (iv) updated implementation plan for the next 12 months.
16. Project completion environmental audits. Within three months after each subproject completion, or no later than one year with permission of the district EPBs, environmental acceptance monitoring and audit reports of each subproject completion shall be (i) prepared by a licensed environmental monitoring institute in accordance with the PRC Guideline on Project Completion Environmental Audit (2001), (ii) reviewed for approval of the official commencement of individual subproject operation by environmental authorities, and (iii) finally reported to ADB through the EMP monitoring and progress reporting process.
Appendix 3 85
Table EMP-5: Environmental Monitoring Program— Chongqing Transportation Logistics Park (Output 1) Who Who Estimated Cost Subject Parameter Location Frequency Implement Supervise CNY 10,000) 1. Construction Quality of pH, SS, Domestic four times EMS or Local EPB, 4 sewer from NH3-N, wastewater per year during certified PIUs work-camp CODCr, oil discharge at construction activities entity biochemical tank outlet Construction SS, pH, oil At wastewater Four times per year EMS or PIUs, 3 wastewater discharge during certified Local EPB points of all construction activities entity construction sites Ambient air Dust Visual Internal monitoring: CSC or PIU, LIEC 25.9 mitigation inspection at all once a week certified measures construction entity (water site spraying, cover vehicles); maintenance of vehicles & equipment
TSP, PM10, At all twice per year during EMS or PMO, NOx construction construction activities certified Local EPB sites, four entity monitoring points of four directions for five continuous days Noise LAeq Four monitoring 2 times per day, once EMS or PMO, 27.5 points will be a week during the certified Local EPB set on the west, construction entity north, east and period south of project boundaries. Subtotal 37.4 2. Operation Phase Noise LAequ Four monitoring Twice per year (twice EMS or Local EPB 0.52 per year points at the a day, once in day certified boundary of time and once at entity logistic parks night time for 2 consecutive days)
Ambient Air TSP, SO2, Two monitoring Twice a day for 3 EMS or Local EPB 3.8 per year NOx, PM10 points, one at consecutive days, certified upwind location once a year entity and the other one at downwind location Waste Septic tanks Weekly internal PIUs In operation and waste monitor of budget collection point Subtotal 4.32 86 Appendix 3
Who Who Estimated Cost Subject Parameter Location Frequency Implement Supervise CNY 10,000) Total 41.72 Source: EITs and TA consultants estimate.
Table EMP-6: Environmental Monitoring Program—Nanpeng Logistics Park (Output 2) Estimated Who Who Subject Parameter Location Frequency Cost Implement Supervise CNY 10,000) 3. Construction Quality of pH, SS, NH3- Domestic four times per year EMS or Local sewer from N, wastewater during construction certified EPBs, work-camp CODCr, oil discharge at work- activities entity PMO 4 camps Construction SS, pH, oil At wastewater four times per year EMS or PIUs, Local 3 wastewater discharge during construction certified EPBs points of all activities environment construction entity sites Ambient air Dust mitigation Visual inspection at once a week CSC PIUs, 25.9 measures all construction site PMO (water spraying, cover vehicles); maintenance of vehicles & equipment,
TSP, PM10, At all construction twice per year EMS or PMO, EPB NOx sites, four monitoring during certified points of four construction entity directions for five activities continuous days Noise LAeq Four monitoring 2 times per day EMS or PMO, EPB 27.5 points will be set on (daytime and certified the west, north, east nighttime), once a entity and south of project week during the boundaries. construction period Subtotal 37.4 4. Operation Phase Noise LAequ Four monitoring Twice per year EMS or EPB 0.52 per year points will be set on (twice a day, once in certified the west, north, east day time and once at entity and south of project night time for 2 boundaries. consecutive days)
Ambient Air TSP, SO2, Two monitoring Twice a day for 3 EMS or EPB 3.8 per year NOx, PM10 points, one at consecutive days, certified upwind location and twice a year entity the other one at downwind location Waste and Septic tanks Weekly internal PIUs In operation wastewater and waste monitoring budget collection point Subtotal 4.32 Appendix 3 87
Estimated Who Who Subject Parameter Location Frequency Cost Implement Supervise CNY 10,000) Total 41.72 Source: EITs and TA consultants.
Table EMP-7: Environmental Monitoring Program—Inland Waterway Transport (Output 3) Operation Phase Who Who Estimated Cost Subject Parameter Location Frequency Implement Supervise (CNY 10,000) Noise LAequ Two monitoring Establish baseline EMS or Local EPB 2,600 per year points prior to operation; certified Twice per year (twice entity a day, once in day time and once at night time for 2 consecutive days)
Ambient Air TSP, SO2, One monitoring Establish baseline EMS or Local EPB 30,000 per year NOx, PM10 point prior to operation; certified Once a day for 3 entity consecutive days, twice per year Surface Samples from Establish baseline EMS or PMO and 8,000 water two locations prior to operation certified local EPB entity Total 40,600 per year Source: TA consultants estimate. Table EMP-8: Environmental Reporting Plan Quarterly Project Progress Report From To Frequency A. Construction Phase Internal progress reports CSCs PIUs/PMO Monthly External environmental monitoring reports Local EMS or IA, PIUs Semi-annually certified entity External Environmental Monitoring Reports PMO ADB Annually EMS or certified EPB, PMO, IA, PIUs, 3 month after the project Project Completion report entity ADB completion B. Operation Phase Annual Environmental Monitoring Reports Annually till the project and EMP implementation report PMO ADB completion report is issued Source: TA consultants.
F. Training, Capacity Building, Awareness Raising
17. To ensure effective implementation of the EMP, the capacity of the PMO, implementing agency, OPFs, CSCs and contractors must be strengthened, and all parties involved in implementing mitigation measures and monitoring of environmental performance must have an understanding of the goals, methods, and the best practices of project environmental management. The local EPBs and the LIEC will offer training specific to their roles for all the project outputs. The main training emphasis will be to ensure that the contractors, CSCs, implementing agency and OPFs are well versed in environmentally sound practices and are able to undertake all construction and operation with the appropriate environmental safeguards.
88 Appendix 3
18. The training and awareness raising program addresses immediate training needs, i.e. training needed for project personnel in order to ensure that involved institutes are well versed in environmentally sound practices and are able to undertake all construction with the appropriate environmental safeguards.
19. The training program also addresses long-term capacity building and awareness raising needs, i.e. for the operational phase of the project. Training and awareness raising campaigns will be provided by qualified experts on logistics park management with 3R principals, operation and maintenance, low carbon and sustainable urban transport management planning, eco- logistics facility operation and management, and urban traffic safety.
Training Needs Assessments will be conducted by the LIEC to tailor the training for maximum impact. The trainer will include in their program a before/after assessment to evaluate the success of the training. An evaluation questionnaire will be used to assess the effectiveness of the training and the training program will be adjusted based on feedbacks. Training will be provided throughout the implementation of the project and the training program is summarized in Table EMP-9.
Table EMP-9: Training Program Cost Sub- # of # of (CNY/ Total Subproject Attendees Contents Frequency days) person person- Cost day) (CNY) EMP adjustment PMO, IA, EMP contents, EMP Twice - 2 20 100 8000 and PIUs, adjustment if needed, Once prior to, implementation construction prepare site specific and once after supervision EMP, roles and the first year of companies, responsibilities, project contractors monitoring, supervision construction and reporting procedures, review of first year experience (after 12 months) Grievance PMO, IA, GRM procedures; Roles Twice: Once 1 20 100 4000 redress PIUs, and responsibilities; prior to, and mechanism construction Review of first year once after (GRM) supervision experience (after 12 the first year of companies, months) project contractors, construction local EPBs Environmental PMO, PIUs, Pollution control on Once (prior to 2 15 100 3000 protection construction construction sites (air, Construction supervision noise, wastewater, solid commencing) companies, waste) contractors Environmental PMO, PIUs, Monitoring methods, Once (at 1 10 100 1000 monitoring construction data collection and beginning of supervision reporting requirements project companies, construction) contractors Safety Training PMO, PIUs, Traffic safety, Twice: Once 1 40 50 4000 construction construction safety, road prior to, and supervision safety, occupational once after companies, safety the first year of contractors project construction Appendix 3 89
Total estimated cost: CNY20,000 Source: TA consultants estimate.
20. Capacity Building. In addition to training for EMP implementation, the project will provide consulting services and training to assist the staff of implementing agency in project management, environmental management, procurement, as well as external resettlement and environmental monitoring. The institutional strengthening of the project will also involve training by LIC in operation and maintenance of completed facilities. Part of this training will focus on teaching staff how to use a set of indicators to monitor performance of the completed facilities. These indicators will be designed by LEC prior to operation start-up.
G. Public Consultation
21. Meaningful consultation was conducted during the PPTA. Direct public participation was conducted as an ongoing element in the development of the project outputs. These activities were carried out by the EIA institutes in their preparation of the EITs with guidance from the PPTA environmental specialists following the PRC guidelines and ADB SPS (2009) requirements.
22. Future plans for public involvement during the design, construction, and operation phases were developed during PPTA. These plans include public participation in (i) monitoring impacts and mitigation measures during construction and operation, (ii) evaluating environmental benefits and social impacts, and (iii) interviewing the public after the project is completed. The implementing agency is responsible for public participation during project implementation. They will be supported by the LIEC.
Table EMP-10: Public Consultation Plan Budget Organizer Format No. of Times Subject Attendees (10,000 CNY) Construction Stage IA Distribute surveys to 5 times: 1 time Adjusting of mitigation Residents 3.15 affected people Before construction measures, if necessary; adjacent commences and 1 time Construction impact; to output, each year during comments and suggestions representative construction s of social sectors Operational Stage IA Distribute surveys to Once in the first year Effectiveness of mitigation Residents 1 affected people measures, impacts of close to output operation, comments and sites suggestions Total Budget 4.15 Source: TA consultants estimate.
H. Mechanisms for Feedback and Adjustment
23. Based on environmental inspection and monitoring reports, the PMO and implementing agency shall decide whether (i) further mitigation measures are required as corrective actions, or (ii) some improvements are required for environmental management practices.
24. The effectiveness of mitigation measures and monitoring plans will be evaluated by a 90 Appendix 3
feedback reporting system. Adjustment to the EMP will be made, if necessary. The PMO and its EMU will play a critical role in the feedback and adjustment mechanism.
25. The need to update and adjust the EMP will be reviewed when there are design changes, changes in construction methods and program, negative environmental monitoring results or inappropriate monitoring locations, and ineffective or inadequate mitigation measures. Based on environmental monitoring and reporting systems in place, the PMO and implementing agency (with the support of the LIEC) shall assess whether further mitigation measures are required as corrective action, or improvement in environmental management practices are required. The PMO will inform ADB promptly on any changes to the project and needed adjustments to the EMP. The updated EMP will be submitted to ADB for review and approval, and will be disclosed on the ADB project website.
I. Cost Estimates
26. The total cost for EMP implementation comprises the following items: (i) mitigation measures, (ii) environmental impact monitoring by EMS or a certified entity, (iii) training, (iv) public consultation, and (vi) consulting service from LIEC. The total estimated cost of $823,000 (CNY 5.18 million) is summarized in Table EMP-11.
Table EMP-11: Estimated Budget for EMP Implementation Estimated Cost (USD) Sub-Total No. EMP Item Two Logistics Inland Waterway (USD) Parks Transport 1 Mitigation measures (construction period) 458,730 N/A 458,730 2 Mitigation measures (operation period) 118,603 per year 7,079 per year 125,683/yr 3 Environmental Impact monitoring (construction 118,730 N/A 118,730 period) 4 Environmental Impact monitoring (operation 13,714 per year 6,444 per year 20,159/yr period) 5 Training 3,175 6 Public consultation (operation period) 6,587 7 LIEC (during construction) 90,000 Total 823,063 Source: project FSRs, EITs and PPTA consultants estimate.
27. The LIEC cost of $90,000 will be funded by the loan implementation consulting service package under the ADB loan. The consulting service package also has a budget of $90,000 for environmental impact monitoring and the implementing agency will bear the remaining cost of $49,000.
J. Environmental Contract Clauses
28. The following contract clauses for safeguarding the environment and safety during construction will be incorporated into all tender documents for civil work packages of the two logistics parks (Outputs1 and 2).
29. Site specific environmental management plan: The contractor shall prepare a site- specific environmental management plan (SEMP) prior to the commencement of construction Appendix 3 91
works, and shall submit the SEMP to PMO and implementing agency for review and approval. The plan shall include method statements on the implementation of pollution control and mitigation measures, as well as an emergency spill contingency plan for containing and cleaning up accidental spills on construction sites. The SEMP shall be updated as needed and when new environmental issues not covered by the SEMP arise. A SEMP should be prepared for each individual work package. 30. Siting of construction facilities: Locations of all spoil disposal sites shall be at least 300 m from the nearest water body; Locations of concrete batching plants shall be at least 300 m upwind of the nearest household; Locations of borrow areas shall be at least 500 m from residential areas; and Borrow areas and spoil disposal sites with long, steep slopes, susceptible to erosion shall be avoided and shall include small level cut-off drains to break up and redirect run-off.
31. Construction timing: Construction activities should not be scheduled at night time (between 22:00 and 06:00 hours). If night time construction work is necessary, the contractor shall not use prevent high sound power level equipment and nearby residents shall be notified of such night time activities well beforehand.
32. Protection of air quality: (i) Hoarding shall be erected around dusty activities; (ii) To suppress dust, hauling and access roads shall be sprayed with water regularly (at least once a day but frequency to be responsive to season and local conditions); (iii) The storage time of construction and demolition wastes on site shall be minimized by regularly removing them off site; (iv) Batching plants shall be equipped with fabric filters and/or wet scrubbers to reduce dust emissions; (v) Vehicles with an open load-carrying case, which transport potentially dust- producing materials, shall have proper fitting sides and tail boards; (vi) Dust-prone materials shall not be loaded to a level higher than the side and tail boards, and shall always be covered with a strong tarpaulin; (vii) Vehicle speed on unpaved haul roads shall be restricted to 10 km/h or less; (viii) Construction vehicles and machinery shall be kept in good working order, regularly serviced and with engines turned off when not in use; (ix) Wheel washing equipment shall be installed or manual wheel washing will be conducted at each exit of the works area to prevent trucks from carrying muddy or dusty substance onto public roads; (x) In periods of high wind, dust-generating operations shall not be permitted within 200 m of residential areas. Special precautions need to be applied in the vicinity of sensitive areas such as schools, kindergartens and hospitals; (xi) Material stockpiles shall be covered with dust shrouds. For the earthwork management for backfill, measures shall include surface press and periodical spraying and covering. The extra earth shall be cleared from the project site in time to avoid long term stockpiling; (xii) Unauthorized burning of construction and demolition waste material and refuse on site shall be strictly prohibited, and shall be subject to penalties for the Contractor, and withholding of payment.
33. Protection of the acoustic environment: (i) During daytime construction, the contractor shall ensure that: (a) noise levels from equipment and machinery conform to the PRC standard for Noise Limits for Construction Sites (GB12523-2011) and the World Bank Group’s Environmental Health and Safety Standards, and machinery properly maintained to minimize noise; (b) equipment with high noise and high vibration are not used near village or township areas and only low noise machinery or the equipment with sound insulation or exhaust muffling devices is employed. (ii) Temporary noise barriers or hoardings shall be deployed around the equipment to shield residences when there are residences within 80 m of the noise source. (iii) Noise levels at the construction site boundaries shall be monitored regularly. If noise standards are exceeded by more than 3 dB, equipment and construction conditions shall be checked, and mitigation measures shall be implemented to rectify the situation. (iv) The speed of bulldozer, 92 Appendix 3
excavator, crusher and other transport vehicles travelling on site shall be controlled. Noise reduction measures on equipment shall be adopted, with regular equipment repair and maintenance to keep them in good working condition. (v) The speed of vehicles travelling on construction sites and haul roads shall be limited to 10 km/h or less. The use of horns shall be forbidden unless absolutely necessary. The use of whistles shall be minimized. (vi) Construction activities shall be planned in consultation with local communities so that activities with the greatest potential to generate noise and vibration are planned during periods of the day that will result in least disturbance.
34. Protection of water quality: (i) Portable toilets and small package wastewater treatment plants and/or septic tanks shall be provided on construction sites and construction camps for the workers. If there are nearby public sewers, interim storage tanks and pipelines will be installed to convey wastewater to public sewers. Construction sites and construction camps shall also have drainage provisions to collect and treat site runoff. (ii) Sedimentation tanks shall be installed on construction sites to treat process water (e.g. concrete batching) and muddy runoff with high concentrations of suspended solids. (iii) Construction machinery shall be repaired and washed at designated locations. No onsite machine repair and washing shall be allowed. (iv) Storage and refueling facilities for fuels, oil, and other hazardous materials shall be within secured areas on impermeable surfaces, and provided with bunds and cleanup kits. If refueling in the field is required, it shall be done from road-licensed fuel trucks away from watercourses or other environmentally sensitive areas. (v) The contractors’ fuel suppliers must be properly licensed, follow proper protocol for transferring fuel, and must be in compliance with all related PRC laws and regulations. (vi) Material stockpiles shall be protected against wind and runoff waters which might transport them to surface waters. (vii) Any spills shall be cleaned up according to PRC norms and codes within 24 hours of the occurrence, with contaminated soils and water treated according to PRC norms and codes. Records must be handed over without delay to the local EPB. An emergency spill contingency plan shall be prepared by the Contractor as part of the SEMP and personnel shall be trained in its use.
35. Climate change adaptation: Consider potential impacts from extreme weather events due to climate change in designing buildings and infrastructure: (i) Adopt appropriate protective measures such as vegetation cover, permeable paving and stormwater collection systems to maximize stormwater retention on site and minimize discharge to network; (ii) Adjust drainage design standard by 6-10% to take account of future climate change impacts; (iii) Develop emergency response plan for floods.
36. Protection of biological resources and wildlife: Construction workers are prohibited from capturing any wildlife during construction; Existing vegetation where no construction activity is planned shall be preserved; and Trees or shrubs shall be removed only as the last resort if they impinge directly on the permanent works or necessary temporary works.
37. Solid waste management and material re-use: Prior to main earthworks, the top soil (10-30 cm) shall be removed and stored temporarily, which shall be re-used on site for restoration works; Attempts shall be made to maximize the re-use of earth cut materials and construction and demolition wastes on the project; Contractors shall develop spoil disposal site management and restoration plans. The contractors shall only use material from borrow pits that have been approved; and Construction activities in borrow areas and spoil disposal sites shall be planned so that the open area is minimized and rehabilitation shall be completed progressively; Restoration of spoil disposal sites and borrow areas shall follow the completion of Appendix 3 93
works in full compliance with all applicable standards and specifications, and shall be required before final acceptance and payment under the terms of contracts.
38. Construction site sanitation: (i) Contractor shall provide adequate and functional systems for sanitary conditions, toilet facilities, waste management, labor dormitories and cooking facilities. The site shall be effectively cleaned and disinfected. During site formation, the site shall be sprayed with phenolated water for disinfection. Toilets and refuse bins shall be disinfected and solid waste shall be removed timely. (ii) Rodents on site shall be exterminated at least once every 3 months. Mosquitoes and flies shall be exterminated at least twice each year. (iii) Public toilets shall be provided in accordance with the requirements of labor management and sanitation departments in the living areas on construction site, and designated staff responsible for cleaning and disinfection shall be appointed. (iv) Work camp wastewater shall be discharged into the municipal sewer system or treated on-site using portable systems or septic tanks.
39. Occupational safety: (i) A person responsible for environmental, health and safety during construction shall be appointed. (ii) Personal protective equipment (safety hats and shoes and high visibility vests) shall be provided to all construction workers. (iii) Ear defenders for hearing protection shall be provided to workers operating and working near noisy power mechanical equipment. (iv) Safety goggles and respiratory masks shall be provided to workers doing dusty work. (v) Method statements shall be prepared and approvals obtained for hazardous activities such as excavation.
Community health and safety: (i) A traffic control and operation plan shall be prepared together with the local traffic police prior to any construction. The plan shall include provisions for diverting or scheduling construction traffic to avoid morning and afternoon peak traffic hours, regulating traffic at road crossings with an emphasis on ensuring public safety through clear signs, controls and planning in advance. Haulage routes and schedules shall be assigned to avoid transport occurring in the central areas, traffic intensive areas or residential areas. (ii) Residents and businesses shall be informed in advance of construction activities, given the dates and duration of expected disruption, dusty and noisy activities, and access to the grievance redress mechanism. Local communities shall be alerted of the time and location of hazardous activities. Construction billboards, which include construction contents, schedule, responsible person and complaint hotline number, will be erected at each construction site. (iii) Clear signs shall be placed at construction sites in view of the public, warning people of potential dangers such as moving vehicles, hazardous materials, excavations etc. and raising awareness on safety issues. Heavy machinery shall not be used at night, where possible, and all such equipment shall be returned to its overnight storage area/position before night. All sites shall be made secure, discouraging access by members of the public through appropriate fencing, signage and/or security personnel, as appropriate. (iv) Continual communication with the villages and communities along the road alignments shall be maintained and the grievance redress mechanism shall be accessible and effective.