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Sector Assessment (Summary): Multisector1 Xinjiang Changji Integrated Urban–Rural Infrastructure Demonstration Project (RRP PRC 49029-002) SECTOR ASSESSMENT (SUMMARY): MULTISECTOR1 Sector Road Map 1. Sector Performance, Problems, and Opportunities 1. The People’s Republic of China (PRC) has experienced rapid urban population growth averaging 4.1% per year since the early 1990s. Urbanization was a key driver of high economic growth and transformation, lifting millions out of poverty. By 2015, the urban population had reached 771.16 million, or about 56.1% of the total population of 1,373.51 million, up from 26.4% in 1990.2 Two-thirds of the urban population growth is attributable to rural–urban migration. This rapid growth places great pressure on the PRC Government to build sustainable, environmentally friendly, livable urban areas. It also creates pressure to upgrade the skills of migrants to take advantage of employment and income opportunities in urban areas. It is also important to improve the institutional capacity of local government agencies to undertake urban planning and environmental management initiatives to ensure the sustainability of urban infrastructure. 2. Despite high levels of growth and urbanization in the PRC, wide regional disparities in economic development and physical infrastructure provision prompted the PRC Government to launch the National Strategy for Development of the Western Region to promote balanced economic growth and raise living standards.3 The government has allocated investments to (i) improve living conditions and the environment in urban areas, (ii) facilitate economic transformation and create local employment by establishing or relocating strategic industries to less-developed sites, and (iii) build and upgrade the infrastructure to improve connectivity and productivity. The western region enjoyed higher annual gross domestic product (GDP) growth than the eastern region in 2000–2014, yet in 2014 its average GDP per capita (CNY37,291.27) was just 74% of the national average, and only 55% of that of the eastern region. 3. Xinjiang Uygur Autonomous Region (Xinjiang), in the PRC’s western region, remains relatively less developed despite rapid economic growth since the early 1990s.4 Around 97% of the population lives in a belt that covers only 8% of the total land area. It has a large ethnic population and suffers from poor industrial performance and low educational attainment on the part of workers. Because Xinjiang borders with eight countries and is a gateway between Asia and Europe, the PRC Government has emphasized its key role in trade development and the revival of the ancient Silk Road. Urumqi, the capital city of Xinjiang, has positioned itself as a regional transportation and logistics hub between the PRC and Central Asia. 2. Government’s Sector Strategy 4. In 2014, the PRC Government released the National New-type Urbanization Plan, 2014– 2020 (NNUP). 5 It promotes people-centered urbanization and city clusters to support development of small and medium-sized cities, to enable cities in the western PRC to become driving forces for regional development. The plan focuses on migrants, urban spatial layout, urban sustainability and integration of urban and rural development, and is a national effort to promote urbanization while addressing critical quality-of-life issues for urban residents. It recognizes 1 This summary is based on the detailed sector assessment. Available on request. 2 Government of the People’s Republic of China, National Bureau of Statistics. 2016. 2016 Statistics Report. Beijing. 3 Government of the PRC. State Council. 2000. The National Strategy for Development of the Western Region. Beijing. The PRC’s western region has six provinces, five autonomous regions (including Xinjiang), and one municipality. 4 In 2015, Xinjiang ranked 27th (of 31 provinces, regions, and cities in the PRC) in per capita annual disposable income of urban households (CNY21,966), and 24th in per capita annual net income of rural households (CNY8,850). 5 Government of the PRC, State Council. 2014. National New-type Urbanization Plan, 2014–2020. Beijing. 2 sustainability and coordination between urbanization and environmental protection as key aspects of urban development, and states that urbanization in the PRC must adopt new development approach. In 2015, urbanization in the PRC was 56.1% by permanent residence but only 39.3% by registration, levels that remain below developed country averages of around 80%. Xinjiang is also rapidly urbanizing (it was 47.2% urban in 2015), and its population growth rate (average of 1.64% during 2000–2015) exceeds the national average (0.5%). If this growth rate continues, its population will exceed 30 million by 2030. 5. Xinjiang’s Urban System Plan, 2014–2030 aims to address ecosystem protection and green development, promote industrial development and economic prosperity, accelerate integration of the region, and maintain diverse local characteristics.6 The NNUP and Xinjiang’s urban planning objectives include creation of compact, denser cities that place greater focus on people, and less on infrastructure or buildings. Urbanization in Xinjiang is focused in the Urumqi– Changji Metropolitan Circle, which encompasses all of this project’s urban centers. Projections and government policy suggest that urbanization will reach 60% by 2030, with an urgent need for investments in rational urban planning and infrastructure development, along with support for institutional capacity. 6. Changji Hui Autonomous Prefecture (Changji) lies at the heart of the most active trade and industrial activity in Xinjiang, as a key center along the new Silk Road. The population is concentrated along the central east–west economic and transport corridor, which cuts through the project city and counties, where approximately 500,000 people reside, with significant growth anticipated. 7 There is an urgent need to create a sound enabling environment through environmental improvement, infrastructure investments, and capacity building. Further, there is a significant gap between urban and rural residents in terms of quality of life and their environment. People living in rural villages and unplanned peri-urban areas have less access to safe and reliable urban infrastructure services, including water supply, wastewater, solid waste management, and road connectivity. 7. Fukang City is within a 1-hour drive east of Urumqi. 8 It is eager to promote spatial development through improved land use and infrastructure service capacity, and resilient and competitive urban–rural integration to sustain the projected population. It will (i) optimize its industrial structure by developing a comprehensive urban economic system supported by the manufacturing, service, and tourism industries; and (ii) improve public services to enhance the environment through convenient transportation. Ganhezi Town is a small satellite town (population 6,539 in 2015) located southeast of the urban area within Fukang. It was originally set up to support the coal industry, but experienced decline following slowing of the industry, which began in the 1980s. The town aims to develop into a modern comprehensive service center for local industries, and to transform into a livable environmentally friendly town. 8. Hutubi County is located 76 kilometers (km) west of Urumqi.9 Many former rural villages remain within the urban boundaries on valuable land, and are the focus of upgrading activities. Its master plan identifies the key development goal as making the county a green and livable urban center with strong leisure and healthcare service industries in the west of the Urumqi– Changji city cluster. 6 Xinjiang Uygur Autonomous Region, Urban–Rural Planning Department. 2015. Xinjiang Urban System Plan, 2014– 2030. Urumqi. 7 Changji urbanization rate increased from 36% in 2000 to 58% in 2015, and may increase to 75% in 2030. 8 Fukang has a population of 180,863 with an urban population of 108,500 in 2015. Its master plan estimated the urbanization rate would reach 81% by 2020, and 86% by 2030. 9 Hutubi has a population of 154,372 with an urban population of 87,900 in 2015. According to the master plan, its urbanization rate was 68% in 2009, and is projected to reach 75% by 2030. 3 9. Qitai County is about 200 km east of Urumqi.10 Its master plan calls for urban–rural development strategies that focus on ecological protection, livability, and industrial development; aim to expand and strengthen the county; integrate urban and rural development to fully support the national plan for construction of an energy base in east Xinjiang; and support local targets regarding environmental resource protection and construction of local service facilities. 10. Water. Since the 1990s, the PRC has promoted market-oriented reforms, and significantly improved urban water supply capacity and quality. Over 80% of water supplies come from surface water, 18% from groundwater, and the rest from non-conventional water sources. In 2014, 13% of the PRC’s water consumption was for domestic use, 22% for industrial use, 63% for irrigation, and 2% for ecological use. Inadequate water supply facilities contribute to low coverage, excessive energy consumption, poor drinking water quality, and high nonrevenue water in many areas. Due to relatively low precipitation and high evaporation rates, Xinjiang is one of the driest areas in the PRC. Qitai relies on groundwater, which is currently overexploited. In 2015, water levels in Qitai declined at an average rate of 0.58 meters per year; water quantity and pressure are unstable during the peak summer consumption period. 11. Solid waste. The PRC generates a large amount of municipal solid waste (MSW), at a rate of 1.2 kilograms per capita per day. The treatment rate of MSW is 89.3%, with 68% treated in sanitary landfills. The growth rate of recyclable content in MSW is high. A considerable amount of garbage is not compressed, resulting in low unit weight. Typical issues for MSW treatment in small and medium-sized cities are primitive mixed disposal, collection, delivery, and treatment; limited treatment capacity; low treatment levels; and the high operational costs of sanitary treatment facilities.
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