Technical Assistance Subproject Report

Project Number: 54026-007 Knowledge and Support Technical Assistance (C-KSTA) November 2020

People’s Republic of : Strengthening Capacity, Institutions, and Policies for Enabling High-Quality, Green Development in the Ecological Corridor Subproject 6: Research on Comprehensive Management Planning Policy of Huangshui Basin in Province

ThisThe viewsdocument expressed is being herein disclosed are those to of the the public consultant in accordance and do not withnecessarily ADB’s representAccess to those Information of ADB’s Policy.members, Board of Directors, Management, or staff, and may be preliminary in nature.

CURRENCY EQUIVALENTS (as of 27 October 2020)

Currency unit – yuan (CNY) CNY1.00 = $0.1490 $1.00 = CNY6.7123

ABBREVIATIONS

ADB – Asian Development Bank PRC – People’s Republic of China PMO – project management office QECC – Qinghai Engineering Consulting Center QPFD – Qinghai Provincial Finance Department TA – technical assistance

NOTE

In this report, "$" refers to United States dollars.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CONTENTS Page KNOWLEDGE AND SUPPORT TECHNICAL ASSISTANCE AT A GLANCE I. THE TECHNICAL ASSISTANCE SUBPROJECT 1 A. Overall Progress of the Technical Assistance Cluster 1 B. Subproject Outcome 1 C. Subproject Outputs, Methods, and Activities 2 D. Subproject Cost and Financing 2 E. Subproject Implementation Arrangements 2

APPENDIXES 1. Subproject Design and Monitoring Framework 4 2. Subproject Cost Estimates and Financing Plan 7 3. List of Linked Documents 8

Project Classification Information Status: Complete

KNOWLEDGE AND SUPPORT TECHNICAL ASSISTANCE AT A GLANCE 1. Basic Data Project Number: 54026-007 Project Name Research on Comprehensive Department/Division EARD/EAER Management Planning Policy of Huangshui Basin in Qinghai Province Nature of Activity Capacity Development, Policy Advice Executing Agency Qinghai Provincial Finance Modality Subproject Department Country China, People's Republic of

2. Sector Subsector(s) ADB Financing ($ million) Agriculture, natural Rural water policy, institutional and capacity development 0.10 resources and rural development Water-based natural resources management 0.16 Total 0.26 qq 3. Operational Priorities Climate Change Information Addressing remaining poverty and reducing inequalities GHG Reductions (tons per annum) 0 Climate Change impact on the Project Low Promoting rural development and food security Strengthening governance and institutional capacity ADB Financing Adaptation ($ million) 0.00 Mitigation ($ million) 0.00

Cofinancing Adaptation ($ million) 0.00 Mitigation ($ million) 0.00 Sustainable Development Goals Gender Equity and Mainstreaming SDG 1.4 No gender elements (NGE) SDG 6.4, 6.5, 6.6 SDG 15.1 Poverty Targeting General Intervention on Poverty 4. Risk Categorization Risk Categorization does not apply Qq 5. Safeguard Categorization Safeguard Policy Statement does not apply qq 6. Financing Modality and Sources Amount ($ million) ADB 0.26 Knowledge and Support technical assistance: Technical Assistance 0.26 Special Fund Cofinancing 0.00 None 0.00 Counterpart 0.00 None 0.00 Total 0.26

Currency of ADB Financing: US Dollar q

Source: Asian Development Bank This document must only be generated in eOps. 25112020185732535873 Generated Date: 27-Nov-2020 13:37:59 PM

I. THE TECHNICAL ASSISTANCE SUBPROJECT

A. Overall Progress of the Technical Assistance Cluster

1. The knowledge and support technical assistance (TA) cluster was approved on 28 October 2020. The overall TA cluster is estimated at $2.18 million, of which $1.93 million will be financed on a grant basis by the Asian Development Bank’s (ADB) Technical Assistance Special Fund (TASF-other sources). The Environment, Natural Resources, and Agriculture Division of ADB’s East Asia Department will administer and coordinate implementation of the TA cluster. The National Development and Reform Commission, the leading agency for strategic development in the People’s Republic of China (PRC), is the executing agency for the TA cluster to play a leading role to support knowledge sharing and coordinate with ADB for alignment of ADB lending and nonlending assistance in the Yellow River basin.

B. Subproject Outcome

2. The Huangshui River flows through Qinghai and provinces of the PRC. The river is a tributary of the Yellow River with total length of 374 kilometers and basin area of 3,200 square kilometers. Qinghai Province, located in northwest PRC, is the source of three major rivers in the country (the River, the Yellow River, and the Lancang or River). Qinghai Province is hailed as the "water tower of China" and plays an important role in the country's overall water ecology by providing more than 60 billion cubic meters of water annually to over 20 provincial areas across the country. The Huangshui River, the biggest tributary of the Yellow River, is known as the "mother river" of Qinghai Province. Around two-thirds of Qinghai Province’s population reside along the river. Pollution has been a problem in the Huangshui River, but enhanced efforts in recent years resulted to positive improvement in water quality. In 2020, more than 94% of Qinghai Province's water resources is suitable for human consumption. The province has built a total of 52 sewage treatment plants, covering all counties. Measures such as relocating residents living near the reservoir was taken to ensure water safety. Livestock and poultry breeding are important industries in the province, but also serves as main contributors to pollution in the Huangshui River basin. Therefore, a comprehensive management, planning, policy, and capacity for high-quality green development and ecological protection of the Huangshui River basin is essential, and the subproject’s findings will help identify and develop future lending investments to further address the aforementioned challenges.

3. The subproject will have the following outcome: comprehensive management, planning, and policy for high-quality green development opportunities in the Yellow River basin improved. The TA subproject will be aligned with the following impact: resilient ecological protection and security in the Yellow River basin achieved.1 The National Development and Reform Commission is committed to undertaking policy research, governance, and capacity building on the impact of integrated basin-wide natural resources management approaches towards the achievement of the PRC’s inclusive green development objectives. To undertake this, the Qinghai Provincial Finance Department (QPFD) requested ADB support for the outputs outlined below with the help of Qinghai Province Development and Reform Commission, and Qinghai Engineering Consulting Center (QECC).

1 The preliminary design and monitoring framework is in Appendix 1.

2

C. Subproject Outputs, Methods, and Activities

4. Output 1: Analysis of current national, provincial, and municipal institutional, policy, and governance situation in the Huangshui River basin prepared. This output will entail (i) review of best practices in program development design and implementation of innovative environmental and ecological management mechanisms in the PRC and abroad; (ii) summary of existing regulations, policies and plans, and institutional framework on river basin management and ecological and environmental systems at all government levels in the PRC; (iii) situation analysis on water demand and supply, point and non-point source pollution (i.e., water supply, sanitation, solid waste, and agricultural), management systems on environmental protection, water resources monitoring, financing, and incentive mechanisms, and social dimensions in the river basin; (iv) survey and mapping of innovative solutions on high-quality green development and economic growth encompassing ecological civilization; and (v) concluding tailor-made recommendation based on the results of above analyses.

5. Output 2. Policy advice on strategy and institutional mechanisms on water resource and environmental management in Huangshui River basin finalized. Activities under this output include: (i) identification of agriculture water saving mechanisms, water connection, drinking water resources protection, and green development; (ii) formulation of policy recommendations, planning and institutional mechanisms covering water security, water body rehabilitation, river ecological restoration, grassland environment protection, green development, water and soil loss protection, natural wetland protection, sewage treatment facilities, and non- point source pollution control from agriculture.

6. Output 3. Capacity and knowledge on water resources management and ecological protection enhanced. This output will support capacity development of key stakeholders at provincial, municipal, and county levels on water resources management and ecological environment supervision, including a study tour focusing on international best practices and innovation for select government staff. Strategic collaborations through provincial, municipal, and county consultation platforms will be supported to strengthen knowledge sharing and dissemination within the Huangshui River basin.

D. Subproject Cost and Financing

7. The TA subproject is estimated to cost $300,000, of which $258,000 will be financed on a grant basis by ADB’s Technical Assistance Special Fund (TASF-other sources). The key expenditure items are listed in Appendix 2.

8. The government will provide counterpart support in the form of remuneration and travel expenses of counterpart staff, available relevant government data and studies for the TA consultants’ use, office accommodation and facilities, including use of meeting rooms, administrative assistance, and other in-kind contributions.

E. Subproject Implementation Arrangements

9. ADB will administer the TA. The Environment, Natural Resources and Agriculture Division of the East Asia Department will coordinate the implementation of the TA subproject, particularly on the selection, supervision, and evaluation of the TA consultants; and organization of workshops and provision of ADB staff to act as resource persons for the workshop in coordination with the TA consultants.

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10. The QPFD will be the executing agency and the QECC will be the implementing agency. The QPFD will provide oversight and ensure coordination across sectors and provide guidance in TA implementation. A project management office (PMO) will be established by QECC. The PMO will be the main contact point for ADB and will provide oversight and liaison with the relevant districts and counties. The PMO will be responsible for the implementation of the activities and the delivery of the TA subproject outputs. Support for knowledge dissemination will be provided, including: (i) TA project management and interagency coordination; (ii) peer review of consultants’ reports; and (iii) coordination with government agencies and other stakeholders for workshops, conferences, and capacity building activities.

11. The implementation arrangements are summarized in the table.

Subproject Implementation Arrangements Aspects Arrangements Indicative implementation period December 2020–December 2022 Executing agency Qinghai Provincial Finance Department Implementing Agency Qinghai Engineering Consulting Center Consultants To be selected and engaged by ADB Firm: Quality- and International: $243,000 cost-based 2.0 person-months National: 18.0 person-months Disbursement The TA resources will be disbursed following ADB's Technical Assistance Disbursement Handbook (2020, as amended from time to time). Asset turnover or disposal Equipment procured under the TA will be turned over to the arrangement upon TA completion executing agency upon completion of TA activities. ADB = Asian Development Bank, TA = technical assistance Source: Asian Development Bank estimates.

12. Consulting services. It is estimated that the TA will require 20.0 person-months of consulting services, comprising one international and four national consultants. A consulting firm will be engaged using the quality- and cost-based selection method, with a quality-cost ratio of 90:10 due to the high technical complexity of the consulting assignment, by inviting simplified technical proposals. The area of expertise required includes water resource and economics, water resource planning and management, water supply and wastewater and/or sanitation, solid waste management, agriculture non-point source pollution, and green development. ADB will engage the consultants following the ADB Procurement Policy (2017, as amended from time to time) and its associated procurement staff instructions.2

13. Dissemination. The key lessons and findings of the TA subproject and the recommendations on improving water resources and ecological management policies and programs in the Huangshui River basin will be disseminated through progress reports (i.e., inception, interim, draft final, and final reports), workshops and conferences, and knowledge products. QPFD and QECC will lead the knowledge product dissemination activities which will include conducting workshops, capacity building, and other activities as appropriate. Target stakeholders will include provincial government agencies, private sector, and stakeholders within the Huangshui River basin. The TA subproject will explore opportunities for collaboration and synergies with other TA cluster subprojects to optimize knowledge sharing and dissemination.

2 Terms of Reference for Consultants (accessible from the list of linked documents in Appendix 3).

4 Appendix 1

SUBPROJECT DESIGN AND MONITORING FRAMEWORK

Impact the TA is Aligned with Resilient ecological protection and security in the Yellow River basin achieved (PRC’s Outline of the Rural Vitalization Plan, 2018−2022 and ADB Strategy 2030) a Data Sources and Performance Indicators with Reporting Risks and Critical Results Chain Targets and Baselines Mechanisms Assumptions Outcome By 2023: Comprehensive a. High-quality green development a. Government R: Change in management, and ecological protection policies announcements, government planning, and policy and/or regulations that incorporate publications, and priorities between for high-quality TA recommendations are adopted consultant reports different initiatives green development by Qinghai Provincial Development may prevent the opportunities in the and Reform Commission for government from Yellow River basin implementation in the Huangshui taking timely and improved River (2020 baseline: not adopted) well-coordinated (OP 6.2.1) necessary actions

Outputs By 2022: 1. Analysis of 1a. Survey and research on river 1a. Survey reports, A: Data is available current national, basin management and consultant progress and research provincial, and ecological and environmental reports findings could be municipal systems analysis report shared for public institutional, policy, submitted to QECC for reference dissemination and governance in policy making situation in the (2020 baseline: not prepared) Huangshui River basin prepared 1b. Mapping of water resources 1b. Consultant management and other high-quality progress reports green development programs prepared (2020 baseline: not prepared) (OP 5.1.4)

2. Policy advice on 2a. Policy and strategy brief on 2a.–b. Consultant strategy and innovative and inclusive water progress reports, institutional resource and environmental policy and strategy mechanisms on management and green briefs water resource and development approaches drafted environmental (2020 baseline: not prepared) (OP management in 1.3.3) Huangshui River basin finalized 2b. Comprehensive report on international and national best practice on water resource management, ecological management, non-point source pollution, green development, and natural resource management, including recommended summary policies and strategies, institutional framework, and knowledge sharing mechanisms prepared (2020 baseline: not prepared)

Appendix 1 5

3. Capacity and 3a. At least 150 number of local 3a.–b. Consultant knowledge on water government and community progress reports, resources officials and other stakeholders survey or feedback management and (30% female) report improved report from workshop ecological knowledge on water resources participants protection management or ecological enhanced protection (2020 baseline: 0) (OP 6.1.1)

3b. At least three capacity building workshops and a study tour conducted (2020 baseline: 0)

Key Activities with Milestones 1. Analysis of current national, provincial, and municipal institutional, policy, and governance situation in the Huangshui River Basin prepared 1.1 Summarize the experience and effectiveness of representative water resources and ecological protection plans in the PRC and overseas, with a focus on water resources and ecological protection plans implemented in major river basins in the PRC and other countries (Q1 2021–Q2 2021) 1.2 Assess the effectiveness of the preparation and implementation of various plans for water resources governance and ecological protection in the PRC and the Huangshui River basin, which are aimed at achieving high-quality development and the ecological protection (Q3 2021–Q4 2021) 1.3 Evaluate international and local best practices related to project development, design, and implementation of innovative ecological and environmental management (Q1 2021–Q2 2021) 2. Policy advice on strategy and institutional mechanisms on water resource and environmental management in Huangshui river basin finalized 2.1 Gather data and provide policy recommendations, strategic briefs, and institutional mechanisms on integrated water resource management, environmental protection and establishment of green industrial system high-quality development (Q2 2021–Q3 2021) 2.2 Develop final policy recommendations and investment plans for Huangshui River basin (Q3 2022–Q4 2022) 2.3 Prepare report on Huangshui River basin basic information, identified problems in governance, key tasks, and proposed final policies and recommendations (Q3 2022–Q4 2022) 3. Capacity and knowledge on water resources management and ecological protection enhanced 3.1 Organize capacity building and knowledge sharing seminars and conferences for local government officials on the management of major water resources and ecological protection areas to share research findings and identified challenges in managing watersheds (Q2 2021–Q3 2021) 3.2 Propose recommendations based on the results of the discussions in the TA midterm workshop (Q3 2021–Q2 2022) 3.3 Publish 2–5 news briefs, articles, or blogs about the developments in the TA subproject (Q4 2021) 3.4 Organize online training and/or study tour for at least three government officials from major provinces and cities to enhance their knowledge and capabilities on water resources management, ecological civilization, and other innovative programs (Q2 2021–Q3 2021) 3.5 Strengthen the capacity of existing regional knowledge centers to serve as effective mechanisms for communities of practice to mainstream water resources management, ecological protection, and other proposed innovative plans (i.e., ecological compensation) (Q2 2021–Q2 2022) TA Management Activities Mobilize the consultant team by Q1 2021 Finalize the TA outputs by Q4 2022 Inputs

ADB: $258,000 (TASF-others)

6 Appendix 1

Note: The government will provide counterpart support in the form of remuneration and travel expenses of counterpart staff, available relevant government data and studies for the TA consultants’ use, office accommodation and facilities, including use of meeting rooms, administrative assistance, and other in-kind contributions. A = assumption, ADB = Asian Development Bank, OP = operational priority, PRC = People’s Republic of China, Q = quarter, R = risk, QECC = Qinghai Engineering Consulting Center, TA = technical assistance. a Government of the People’s Republic of China. 2018. Outline of the Rural Vitalization Plan, 2018−2022. Beijing; and ADB. 2018. Strategy 2030: Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific. Manila. Contribution to Strategy 2030 Operational Priorities: OP 1.3.3 Measures for increased inclusiveness supported in implementation (number) OP 5.1.4 Rural economic hubs supported (number) OP 6.2.1 Service delivery standards adopted and/or supported in implementation by government and/or private entities (number) OP 6.1.1. Government officials with increased capacity to design, implement, monitor, and evaluate relevant measures (number) The expected values and methodological details for all OP indicators to which this TA will contribute results are detailed in Contribution to Strategy 2030 Operational Priorities (accessible from the list of linked documents in Appendix 3 of the TA report). Source: Asian Development Bank.

Appendix 2 7

SUBPROJECT COST ESTIMATES AND FINANCING PLAN ($’000) Item Amount A. Asian Development Banka 1. Consultants a. Remuneration and per diem i. International consultants 40.0 ii. National consultants 130.0 b. Out-of-pocket expenditures i. International and local travel 15.0 ii. Reports and communications 3.0 iii. Miscellaneous administration and support costsb 15.0 iv. Surveys 10.0 v. Training, seminars, workshops, forum, and conferencesc 30.0 2. Contingencies 15.0 Total 258.0 Note: The technical assistance (TA) is estimated to cost $300,000, of which contributions from the Asian Development Bank (ADB) are presented in the table above. The government will provide counterpart support in the form of remuneration and travel expenses of counterpart staff, available relevant government data and studies for the TA consultants’ use, office accommodation and facilities, including use of meeting rooms, administrative assistance, and other in-kind contributions. The value of government contribution is estimated to account for 14% of the total TA cost. a Financed by ADB’s Technical Assistance Special Fund (TASF-other sources). b Includes translation and interpretation costs, research assistants, office supplies, administration, land transportation and vehicle hire, and other logistics costs. c Includes study tours, resource persons, online conference platform, food, and beverage costs. Source: Asian Development Bank estimates.

8 Appendix 3

LIST OF LINKED DOCUMENTS http://www.adb.org/Documents/LinkedDocs/?id=54026-007-TAReport

1. Terms of Reference for Consultants 2. Contribution to Strategy 2030 Operational Priorities