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PRC (P45506): PROPOSED GANSU JIUQUAN INTEGRATED URBAN ENVIRONMENT IMPROVEMENT PROJECT

A. Project Background

1. The proposed project aims to improve the living conditions of urban residents in Jiuquan Municipality in Gansu Province, People’s Republic of China (PRC) through improvements to urban environment and transport services. 1 The project will support river environment improvement works, urban roads, bridges and associated utility infrastructure, and institutional strengthening and capacity development of related urban environment and transport services. The project is included in the PRC’s country operations business plan (2011-2013) as a firm project in 2013.

2. Jiuquan. The project is located in Jiuquan in northwest Gansu Province, approximately 730 kilometers (km) northwest of provincial capital of Lanzhou. The population of the municipality is 1.2 million and that of the city is 464,000 in 2010, of which 248,000 live in urban area.2 Jiuquan city is spread over a low-lying plain on the banks of the Beidahe river between the southern limits of the Gobi desert and the northern range of Qilian mountain. Jiuquan is rich in natural resources and its key industries are renewable energy equipment, agricultural products processing and construction materials, with growing tourism development increasingly contributing to the city’s economic output. In the route of Hexi Corridor, Jiuquan has historically been an oasis of the ancient Silk Road and has a potential to serve as a vital artery for the relatively less developed northwestern region of the PRC and promoting regional economic integration with the Central Asia Regional Economic Cooperation countries.

3. Challenges. Jiuquan suffers from various urban environmental problems partly due to harsh natural environment proximate to the desert and partly due to lack of investment in key urban infrastructure. Jiuquan has a continental desert climate with constrained water resources and high evaporation. 3 The annual average precipitation is only 84 millimeters (mm) but significant run-off occurs from snow melt in the Qilian mountain range coupled with torrential rainfall during summer which at times causes seasonal flooding. Sand and dust being transported by frequent strong winds from the desert cause atmospheric pollution, high incidence of respiratory illness and productivity loss. 4 Long neglected Beidahe river faces ecological and environmental degradation, induces floods and droughts more frequently and severely than in the past, and subsequently affects the public environment, health and safety. Jiuquan’s increasingly congested urban roads experience road surface failures, and thus limit the city’s ability to play a connecting role along the Hexi Corridor. The project’s rationale is to address these urban development challenges, improve living conditions of urban residents and enable Jiuquan to optimize its development potentials.

4. River. To address the environmental problems and challenges, the project will support an integrated multi-functional river improvement approach comprising river training works, water

1 A project preparatory technical assistance (PPTA) is included, with details given in Appendix 4. 2 Jiuquan municipality comprises Suzhou district (Jiuquan city area), Yumen city, Dunhuang city, Jinta county, Guazhou county, Subei county and Akesei county. Gansu Provincial Government has a plan for economic integration of Jiuquan with its neighboring city of Jiayuguan, the details of which will be researched and analyzed as part of sector analysis during the project preparation. 3 Total available water resources are estimated at 3 billion cubic meter (m3) in Jiuquan, of which 2.6 billion m3 is from surface water and 0.4 billion m3 from groundwater. While less severe compared with the other cities along the Hexi Corridor, water scarcity in Jiuquan is evident particularly with its annual average evaporation of 2,140 mm. 4 Jiuquan Environmental Protection Bureau advises that the annual average of daily sand and dust deposits from the atmosphere is 22.93 ton per square kilometer per day (t/km2/d). In the case of the five-day sandstorm on 24-28 April 2011, 46,700 mu (about 31.1 km2) of farm land was affected with direct economic loss of CNY 15.65 million. 2

impounding structures, embankments and engineered wetlands, which will collectively reduce urban flood and drought risks, improve the river’s retention capacity and resilience to the climate change impacts, restore the ecological function of the river and its habitats, and provide a landscaped area for public amenity. The project will also support planting wind-breaking tree screens along the shoals and banks of Beidahe river which will provide natural windbreak to defend the city against sandstorms and enhance public amenity. The project will introduce a modern approach to irrigate the plantations from new impounding structures to be replenished during high run-off period and used for low flow conditions, which will contribute to enhancing efficiency of water use and conservation of water resources in Jiuquan.5

5. Roads. Roads serving the old part of the urban area have become increasingly congested and some were not well maintained and experience surface failures. Those roads also lack the provision of utility service mains resulting in inefficient supply to adjacent housing and commercial properties. The project will support the construction and reconstruction of urban roads and bridges, thereby relieving congestion on the existing road network and improving access to the main industrial employment areas and from farm to market for neighboring rural areas. Urban service delivery will also be improved by providing new municipal utility services mains to the areas along the roads.

6. Strategic fit. Through integrated urban environment improvement, the project will enhance the livability of Jiuquan. The project will also contribute to promoting balanced regional development in the PRC as well as in Gansu Province, thereby supporting the PRC’s Twelfth Five-Year Plan, 2011-2015. The project aligns with the PRC’s country partnership strategy of the Asian Development Bank (ADB).6 It conforms to ADB’s Water Policy7 and supports ADB’s water, urban and transport sector strategies.8 The project will build on ADB experience and lessons gained from the previous projects in Gansu, 9 urban development, water resources management and small and medium-sized cities’ development projects, and incorporate international practices on environmentally sound and sustainable river rehabilitation and transport investment. Given the harsh physical environment and scarcity of water resources in Jiuquan, the project will undergo thorough due diligence to ensure that the project-supported urban development will be sustainable in view of the carrying capacity of the natural system. Innovative features will be explored in designing river rehabilitation, water impounding structures, wetlands engineering, and tree screening plantations to maximize integrated environmental and social benefits and involve community participation. Roads and bridges will be designed to accommodate non-motorized transport and support low-carbon urban development.

B. Impact, Outcome, and Outputs

5 At present, irrigation requirements for city landscaped areas and adjacent agriculture are met by pumping from groundwater. 6 ADB. 2008. Country Partnership Strategy: People’s Republic of China, 2008-2010. Manila. ADB’s existing strategy advocates efficient urban infrastructure, strengthening environmental management, supporting inclusive growth, and well balanced development. Environmentally sustainable, socially inclusive and regionally balanced urban development is expected to continue to be a focal area in the new country partnership strategy (2011-2015) that is under preparation. 7 ADB. 2001. Water for All: The Water Policy of the Asian Development Bank. Manila. The policy encourages water conservation, efficient water use, protection and rehabilitation of degraded forestlands, and wetland conservation and improvement. 8 Water Operational Plan (under preparation); Urban Operational Plan (under preparation); and ADB. 2010. Sustainable Transport Initiative: Operational Plan. Manila. 9 ADB has supported urban projects in Baiyin, Tianshui, Dingxi and Zhangye in Gansu Province. See footnote 15 for JMG’s efforts in building up linkages with these cities to learn their lessons and practices. 3

7. The expected project impact is improved living conditions in Jiuquan. The intended project outcome is improved urban environment and transport services in Jiuquan. Indicative project outputs are:

(i) River environment improvement—(a) rehabilitating 13 km urban stretch of Beidahe river including river beds, shoals, weirs and embankments, (b) constructing water impounding structures with a total capacity of three million m3, (c) constructing engineered wetlands with a total area of 40 hectares (ha), (d) developing 400 ha of wind-break tree screens plantations, and (e) providing equipment for river environment maintenance;

(ii) Urban roads, bridges and associated utility facilities—improving urban roads, bridges and related facilities by (a) constructing 8 km new road to serve north bank of Beidahe river, (b) rehabilitating 16 km existing arterial roads, (c) constructing and reconstructing two bridges, and (d) developing related utility facilities including, water supply, drainage, sewers, district heating pipes and energy-saving lighting; and

(iii) Capacity development and institutional strengthening—providing (a) project management support to the executing agency, implementing agency, and project management office (PMO) to ensure project implementation is in compliance with ADB requirements; (b) institutional capacity development support for water conservation and water use planning, water quality control, climate adaptation management, green jobs training for wind screens and wetlands, urban transport system planning, and road safety program; and (c) public awareness campaign on water consciousness, environmental protection and public health.

C. PPTA: Major Outputs and Activities

8. The PPTA will prepare a comprehensive project feasibility study for an investment project for ADB loan financing. Specific outputs and activities of the PPTA will be as follows:

(i) Design and monitoring framework (DMF). The consultants, in consultation with all stakeholders, will develop a DMF in accordance with the Guidelines for Preparing a DMF.10 The consultants will collect and confirm baseline indicators, and develop performance indicators for impact, outcome and outputs of the project, including income, poverty, employment, health, gender and other technical, social, and environmental data. The DMF will be developed through problem-tree and objective-tree analyses, risk analyses, and a participatory approach involving beneficiaries and stakeholders, which will form the basis for the project performance management system (PPMS).

(ii) Sector and subsector analysis. The consultants will review the national, provincial, and municipal Twelfth Five-Year Plans, National Spatial Development Plan, Jiuquan City Master Plan 2009–2020, the Plan for Integration of Jiuquan and Jiayuguan cities, and other relevant development plans. Given the harsh physical environment and scarcity of water resources in Jiuquan, careful due diligence should be undertaken to ensure that the project-supported urban development be long-term sustainable, not seeking short-term economic expansion that may lead to exacerbating the already constrained carrying

10 ADB. 2007. Project Performance Management System: Guidelines for Preparing a Design and Monitoring Framework (Second Edition). Manila. 4

capacity of the natural system. Based on sector due diligence, lessons learned from previous ADB-funded urban projects in the People’s Republic of China (PRC) and international best practices, the consultants will assess the project rationale and justification and give recommendations for further strengthening the project design and implementation arrangements. The consultants will also examine possible involvement of the private sector in Jiuquan’s river management and urban services, wherever possible. Reflecting the sector review and analysis, the consultants will prepare the necessary appendixes for the Report and Recommendation of the President (RRP) of the project, including (a) sector analysis covering sector roadmap, problem tree, and sector results framework; (b) project’s contribution to the ADB results framework; and (c) coordination with development partners for the sector, all of which in accordance with ADB guidelines and templates. A separate problem analysis table will be prepared presenting issues, causes, ongoing interventions, and resultant proposed project inputs, from the technical, managerial, institutional, operation and maintenance, social, environmental and financial points of view. The consultants, reflecting the sector review and analysis, will also identify the area of legal, legislative, regulatory and institutional strengthening measures in view of effective management and implementation of urban environment management system and services.

(iii) Technical design. The consultants will review the technical design of all project components to make sure they are technically sound and compatible with local conditions, meet all relevant technical standards and safeguard requirements, and are suitable for ADB financing support. The consultants will assess (a) methodology for river training works, water impounding structures and flood protection works; (b) design of engineered wetlands and their operation and maintenance; (c) design of tree screen wind-breaks and the best approach to creating urban green areas; (d) geotechnical implications of river training works, wetland development, embankment stability, bridge foundations, pipe trenching and other related facilities; (e) demand capacities and design standards for utility service systems, and associated treatment facilities; (f) design of urban roads and bridges considering city-wide urban transport network modeling, non- motorized transport and low-carbon urban development; (g) options for bridge superstructure design to create pleasing aesthetics; and (h) non-structural measures to improve urban environment and transport services. Based on the analyses and best national and international practices, the consultants will recommend improvements to refine the scope and the technical design of each project component.

(iv) Economic analysis. The consultants will conduct economic analyses of the project, including contingent valuation survey and analysis, least-cost analyses, cost effectiveness analyses and affordability analyses, where applicable, to ensure that the economic analysis meets ADB requirements. 11 Economic rationale will be developed and economic justification will be evaluated for each project component and the project as a whole. The consultants will prepare the required RRP appendix.

11 Guidelines for the Economic Analysis of Projects (1997); Economic Analysis Retrospective 2007: Strengthening the Quality of Project Economic Analysis in ADB Operations (2003); ERD Technical Note: Strengthening the Economic Analysis of Natural Resource Management Projects (2003); Key Areas of Economic Analysis of Projects (2003); and Handbook for Integrating Risk Analysis in the Economic Analysis of Projects (2002). 5

(v) Financial analysis. The consultants will undertake financial review and analysis of each project component as well as detailed assessment of financial performance of Jiuquan Municipal Government (JMG) and Jiuquan Economic Development and Investment Company (JEDIC), in accordance with ADB’s guidelines.12 The consultants will prepare the required RRP appendix.

(vi) Poverty and social assessment. The consultants will engage a qualified survey institute to conduct a household survey and community consultations for poverty and social analysis in accordance with ADB requirements.13 The consultants will prepare a consultation and participation plan, conduct key informant and focus group discussions, analyze the survey data and prepare a poverty and social assessment which will make recommendations for design, implementation and monitoring to strengthen the project's development impacts. Based on this analysis, the consultants will prepare a social action plan (SAP), and summary poverty reduction and social strategy (SPRSS) in accordance with ADB guidelines and templates.

(vii) Gender action plan (GAP). The consultants will prepare a GAP with the objective of ensuring that the project maximizes benefits for women and meets effective gender mainstreaming (EGM) categorization requirements. Based on this analysis, and in consultation with stakeholders and Government, and in accordance with ADB guidelines, the consultants will prepare the necessary RRP appendix. 14

(viii) Community Participation Plan and Public Awareness Campaign Program. The consultants will prepare, through participatory approach, a comprehensive and detailed development plan for community involvement in, and public awareness for, the urban planning, water conservation, river management, environmental protection, public health, and road safety.

(ix) Environmental assessment. The consultants will review the environmental impact assessments (EIAs) prepared for each project component and ensure that all EIAs meet the requirements specified in ADB’s Safeguard Policy Statement (2009). Based on the review, the consultants will prepare a consolidated EIA including an environmental management plan (EMP) both in English and Chinese in ADB's required format. The consultants will provide guidance to JMG and the local EIA institute on ADB’s environmental assessment requirements as laid out in the Safeguards Policy. The consultants will also prepare the required RRP appendix.

(x) Involuntary resettlement assessment. The consultants will review the draft resettlement plans (RPs) and assist JMG to engage a qualified survey institute to conduct a survey and improve and finalize the RPs in accordance with ADB requirements.15 The consultants will also prepare a summary RP.

12 Financial Management and Analysis of Projects (2005); Technical Note: Preparation and Presentation of Cost Estimates for Projects Financed by ADB (2008); and Financial Governance and Management of Investment Projects (2002). 13 Handbook on Social Analysis (2007); Poverty Handbook (2006); Handbook for Integrating Poverty Impact Assessment in Economic Analysis of Projects (2001); Strengthening Participation for Development Results: Staff Guide to Consultation and Participation (2006); and Core Labor Standards Handbook (2006). 14 Policy on Gender and Development (1998); and Gender Checklists and Toolkit (2010). 15 Safeguards Requirements 2 on Involuntary Resettlement in Safeguard Policy Statement (2009). 6

(xi) Ethnic minority (indigenous peoples) assessment. The consultants will conduct a thorough scoping of ethnic minority issues in the project area and, if deemed necessary, prepare an ethnic minority development plan (EMDP) in accordance with ADB requirements. 16 The consultants will also prepare a summary EMDP.

(xii) Risk assessment and management plan. The consultants will assess the financial management system, accounting rules and practices, administrative procedures, internal control and audit, external audit, and procurement capacity and practices, of JMG and JEDIC. Based on this assessment, the consultants will identify potential project-related risks in three specific thematic issues, namely: (a) public financial management, (b) procurement, and (c) anti-corruption and prepare a draft governance risk assessment and management plan. Funds flow and disbursement arrangements will also be identified reflecting the governance assessment. The consultants will also prepare the required RRP appendix.

(xiii) Project administration manual (PAM). The consultants will prepare a PAM which will (a) include a project implementation plan including project readiness filters; (b) specify JMG, JEDIC and ADB project implementation roles and responsibilities; (c) identify implementation arrangements including detailed costs and financing plan, financial management, consulting services and procurement, safeguards, performance monitoring, evaluation, reporting and communications, and accountability mechanism, and (d) include an S-curve quarterly projection of contract awards and disbursement for the whole duration of project implementation. The PAM will be prepared through a consultative process and will be agreed-on initially at loan fact-finding.

(xiv) Procurement plan and procurement documents. The consultants will undertake a comprehensive procurement capacity assessment of JMG and JEDIC in accordance with ADB guidelines and template. 17 Based on this assessment and technical requirements of each project component, the consultants will prepare a procurement plan. The consultants will also prepare bid documents for the packages under different procurement modes, and terms of reference for project implementation consultants.

(xv) Institutional strengthening and capacity development plan. Based on institutional assessment on financial management, procurement, planning, technical engineering, operation and maintenance and project management capacities of JMG, JEDIC and other concerned stakeholder, the consultants will prepare a capacity development plan presenting specific actions for trainings and institutional strengthening measures to enhance the capacity of JMG, JEDIC and other concerned agencies to meet the operational needs of ADB loan-funded project implementation and to ensure future managerial, technical and financial sustainability of operations, including, water conservation and water use, water quality control, climate adaptation management, green jobs training, urban transport system, and road safety. The consultants will establish the terms of reference of JMG, JEDIC, PMO, and project leading group, and conduct training workshops on ADB guidelines and procedures for project processing and implementation.

16 Safeguards Requirements 3 on Indigenous Peoples in Safeguard Policy Statement (2009). 17 Procurement Guidelines (2010); and Guide to EA Procurement Capacity Assessment (2009). 7

(xvi) Knowledge Product. The consultants will prepare (a) guidance notes for environmentally friendly and climate change resilient urban development in desert-adjacent arid cities, and (b) good practice toolkits for infrastructure development in small cities with a dual urban-rural economy involving community participation.

9. The major outputs and activities are summarized in Table A4.1.

Table A4.1: Summary of Major Outputs and Activities Expected Expected Major Activities Completion Date Major Outputs Completion Date Mobilize Consultants Feb 2012 Inception report IV Feb 2012

Conduct sector and subsector analysis Feb 2012 Assess project components and likely Feb 2012 impacts on environment, IR, IP, poverty, social and gender

Prepare policy dialogue agenda Feb 2012 Prepare TORs and questionnaires of Feb 2012 surveys and workshops Prepare detailed synchronized processing Feb 2012 schedule following domestic and ADB procedures Assess technical, financial, economic, Mar-May 2012 Interim report II May 2012 environmental, social, resettlement and institutional feasibility

Conduct socioeconomic surveys Mar 2012

Conduct DMF, PPMS, procurement, Mar-Apr 2012 disbursement, RP, SAP, GAP, and EIA/EMP workshops

Prepare detailed costs, financing plan, Apr-May 2012 procurement plan, and PAM

Develop capacity development plan Apr-May 2012

Refine technical, financial, economic, May-Jul 2012 Draft final report IV Jul 2012 social, resettlement, environmental and institutional assessment and complete relevant loan processing documents

Conduct public consultation workshops Jun-Jul 2012 on EIA/EMP and RP

Prepare model bid documents for works Jun-Jul 2012 under different procurement modes, and TOR for the implementation consultants

DFR workshop and loan fact-finding Aug 2012 Final report IV Oct 2012 Refine loan processing documents Aug-Sep 2012 Knowledge product

DFR = draft final report, DMF = design and monitoring framework, EIA = environmental impact assessment, EMP = environmental management plan, GAP = gender action plan, IP = indigenous peoples, IR = involuntary resettlement, PAM = project administration manual, PPMS = project performance management system, RP = resettlement plan, SAP = social assessment plan, TOR = terms of reference. Source: Asian Development Bank estimate.

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D. Cost Estimate and Proposed Financing Arrangement

10. The PPTA is estimated to cost $850,000 equivalent, of which $650,000 equivalent will be financed on a grant basis by ADB's Technical Assistance Special Fund (TASF-other sources). The government will finance the remaining $200,000 equivalent. The detailed cost estimate is presented in Table A4.2.

Table A4.2: Cost Estimates and Financing Plan ($'000) Total Item Cost A. ADB Financinga 1. Consultants a. Remuneration and per diem i. International consultants (12 person-months) 282.0 ii. National consultants (30 person-months) 195.0 b. International and local travel 40.0 c. Reports and communications b 10.0 2. Equipment (computer, printer, etc.)c 13.0 3. Workshops, training, seminars, and conferencesd 25.0 4. Surveyse 20.0 5. Miscellaneous administration and support costs f 15.0 6. Representative for contract negotiations g 6.0 7. Contingencies 44.0 Subtotal (A) 650.0

B. Government Financing 1. Office accommodation and transport h 30.0 2. Remuneration and per diem of counterpart staff 45.0 3. Surveys and investigations a. Environmental impact assessment 20.0 b. Socioeconomic surveys 10.0 c. Project design 80.0 4. Miscellaneous administration and support costs i 15.0 Subtotal (B) 200.0 Total 850.0 a Financed by the Asian Development Bank’s Technical Assistance Special Fund (TASF-other sources). b Includes office communications, printing and binding of reports, and translation of inception, interim, draft final, and final TA reports and other TA output documents into Chinese. c Equipment Type Quantity Cost Computers: desktops and laptops 3 desktops and 1 laptop $4,000 Printer, photocopier, facsimile machine 3-in-1 printer, photocopier, fax $4,000 Others 1 projector and others to be $5,000 determined d Workshops, training, seminars, and conferences Purpose Venue Inception, interim and draft final tripartite workshops Jiuquan Training workshops Jiuquan and venue to be identified e Includes socioeconomic survey and topographical, geotechnical and hydraulic survey. f Includes office supplies, secretarial, technical support and interpreting services. g Includes the cost of travel and per diem for government observers invited for contract negotiations. h Includes telephone lines and local city transport for counterpart staff and consultants to site visits. i Includes office supplies, secretarial, technical support and interpreting services for counterpart staff. Note: Items A2-A6 are provisional cost items and are not subject to competitive bidding. Source(s): Asian Development Bank estimates. 9

E. Consulting Services

11. An international consulting firm in association with national consultants will be engaged in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time). ADB will select and engage consultants based on the quality of the proposal (80%) and the cost (20%) of the services to be provided (the quality- and cost-based selection method, QCBS) using simplified technical proposal procedures. A total of 42 person-months of consulting services (12 international and 30 national) are required. In addition, up to two individuals may be hired on an individual basis to provide early inputs to the PPTA process.

Table A4.3: Summary of Consulting Services Requirement International National Name of Positions Person-months Name of Positions Person-months Urban development expert/ 4.5 Water resources management 6.0 team leader expert/ deputy team leader Road and bridge expert 4.0 Utility services expert 1.5 Wetland and arboreal expert 2.0 Environment expert 2.5 Environment expert 3.5 Resettlement and social expert 2.5 Resettlement expert 2.5 Social development expert 2.5 Economist/ Financial analyst 2.5 Economist 2.5 Financial analyst/ accountant 2.5 Institutional expert 3.0 Total 12.0 Total 30.0 Source: Asian Development Bank estimates.

12. All international experts must be fluent in English and the national experts must have a reasonable working proficiency in English. The outline terms of references for the PPTA consultants are described in paras. 7 to 15.

13. Urban development expert/team leader (international, 4.5 person-months) shall be professionally qualified and must have 15 years work experience in urban planning, urban environmental infrastructure, urban transport, inland water course rehabilitation works, urban flood protection works, climate change adaptation and mitigation measures for urban infrastructure, and urban development in cities of continental desert climate. The expert will (i) assess the rationale and integrity of proposed project components in light of Jiuquan’s natural and physical conditions, urbanization pattern, development priorities and other domestic funded development projects (particularly those for wastewater treatment and road development), and environmental management policies; (ii) undertake a technical review of all components in the feasibility study report (FSR) prepared by design institute and ensure that various alternatives be analyzed and evaluated from the technical, environmental, economic, social, resettlement, institutional and urban planning perspectives; (iii) ensure that river training and riparian development works adopt environmentally sound and socially inclusive design and non- structural measures are accompanied; (iv) ensure that road alignments, bridge sites, and their design standards are based on sound grounds of travel demand forecasts, comprehensive urban road networks, local socio-economic development patterns, vehicle ownership trends, public transportation system, non-motorized transport, and road safety and non-structural measures are accompanied; (v) identify area of legal, legislative, regulatory and institutional strengthening measures in view of effective management and implementation of urban environment management system and services, based on sector analysis, and guide the institutional expert to develop capacity development and institutional strengthening measures; (vi) provide inputs on economic costs and benefits of each project component; and (vii) formulate financing and resources plan for operation and maintenance of each component. As a 10

team leader, the expert will be responsible for (i) preparing detailed work plan for each output and each expert; (ii) managing and supervising inputs and outputs of all other experts, quality assurance of all TA outputs (section B) in conformity with ADB requirements, and timely delivery of reports and knowledge product; (iii) coordinating all activities during PPTA implementation, including liaising with JMG, JEDIC, PMO, provincial and municipal governments, design and survey institutes and all other concerned stakeholders, and maintaining contact with ADB; (iv) developing strong rationale of integrated components from the technical, environmental, economic, social, institutional and urban planning perspectives, and engaging innovative features in each component; and (v) conducting stakeholder workshops and refine the DMF with baseline and target indicators and measures.

14. Water resources management specialist/deputy team leader (national, 6 person- months) shall be professionally qualified and must have 12 years work experience in inland water resources management, river training works, water impounding structures, flood protection works, surface water quality management, hydraulic modeling of urban aquatic system, wetland engineering, wind-break plantation, river landscaping, and climate change resilience enhancing measures and their international best practices. Good written and oral English skills are mandatory. The expert will (i) assess various design options in view of (a) local and basin-wide hydrology, water balance, and carrying capacity of the natural system, (b) environment and ecology, (c) key stakeholders and beneficiaries, (d) engineering and financial constraints, (e) JMG and JEDIC capacities, (f) river landscaping, (g) geotechnical stability, (h) ground water conditions and impacts on aquifer, (i) community participation, (j) resilience to climate change, (k) potential downstream impacts on ecosystems, ecological services and local livelihood systems, and (l) related policies, regulations, plans and project; (ii) develop hydrological and hydraulic analysis methodology, evaluate the analysis data, work with the design institute and provide guidance to complete the hydrological and hydraulic analysis in accordance with national design standards, best international practice, environmental requirements and social enhancement programs; (iii) assess pollution impact by different sources within catchment area; (iv) provide inputs to the Road and Bridge Expert on the flood control design parameters and protection measures; (v) recommend innovative features in river training, flood protection, and riparian development works, to enhance environmental sustainability, climate change resilience and cost effectiveness; (vi) determine the environmental flow to ensure no significant residual environmental impacts and effects on peoples’ livelihood downstream of the river rehabilitation works and impounding structures, (vii) recommend sustainable non-infrastructural measures such as water conservation and desertification control plan, water quality control, efficient flood and drought management plan, and environmental protection plan; (viii) establish baseline and performance targets for impact, outcome and output indicators relating to river rehabilitation component; (ix) prepare cost estimates, procurement plan, appropriate contract packaging, implementation schedule, bid documents and terms of references (TORs) for project implementation consultants; and (x) prepare indicative maintenance and operating plan and propose capacity development activities for concerned agencies to ensure sustainable river management. As a deputy team leader, on behalf of the team leader, when absent, the expert will be responsible for: (i) planning, managing and coordinating all activities during PPTA implementation and liaison with all stakeholders and local institutions; and (ii) producing, quality checking and delivering all PPTA outputs.

15. Road and bridge expert (national, 4 person-months) shall be professionally qualified and must have 10 years work experience in detailed engineering and design of urban roads and bridges, and conceptual planning of urban transport network, public transport system and non- motorized transport. The expert will (i) undertake a technical review of FSR for roads and bridges component and strengthen the design standards, structural stability and safety aspects; 11

(ii) review suitability of alignments of roads and sites for bridges, widths and capacities (new) and suitability of technical options to rehabilitate roads and bridges (existing), in light of travel demand forecast and comprehensive transport network and service ducts, culverts and manholes and their design parameters; (iii) review options for bridge superstructure design to create pleasing aesthetics; (iv) review geotechnical data on the ground conditions for roads and hydraulic data on the river flow conditions for bridges, and prepare TORs for necessary surveys and investigations; (v) recommend innovative features in roads and bridges component, to promote low-carbon development, non-motorized transport and climate change resilience; (vi) recommend associated physical assistance to enhance road safety and energy saving, such as intersection crossing safety measures, traffic monitoring system, solar-power street lighting, etc.; (vii) recommend sustainable non-infrastructural measures such as urban transport system plan, traffic management plan and road safety action plan under guidance of team leader; (viii) establish baseline and performance targets for impact, outcome and output indicators relating to roads and bridges component; (ix) prepare cost estimates, procurement plan, appropriate contract packaging, implementation schedule, bid documents and TORs for project implementation consultants; and (x) prepare indicative maintenance and operating plan and propose capacity development activities for concerned agencies to ensure sustainable management of roads and bridges.

16. Utility services expert (national, 1.5 person-months) shall be professionally qualified and must have 8 years work experience in municipal water supply, wastewater, drainage, district heating and other urban utility infrastructure and services development. The expert will (i) review the demand forecast and existing and time bound plans for provision of piped water supply, sewerage, drainage, district heating, gas, telecommunications and electricity; (ii) assess the capacities of existing and proposed treatment plants for water supply and wastewater, and their adequacy to allow/accept flows to/from areas to be served under the project; (iii) review the design parameters to apply to utility service provision and recommend changes where appropriate; (iv) assist the road and bridge expert to review and comment on the design of service provision within road and bridge structures; (v) establish baseline and performance targets for impact, outcome and output indicators relating to utility service provision; (vi) assist preparing cost estimates, procurement plan, appropriate contract packaging, implementation schedule, bid documents and TORs for project implementation consultants; and (vii) prepare maintenance requirements for the services.

17. Wetland and arboreal expert (national, 2 person-months) shall be professionally qualified and must have 8 years work experience in wetland development and management and practical knowledge of flora propagation, indigenous tree species and wind-breaking tree screens. The expert will (i) undertake a technical review of engineering design of wetland development and wind-breaking tree screens and assess their water and air quality impacts; (ii) guide on plant species to be introduced and their effective grouping and juxtaposition considering soil condition and prevailing extremes in climatic conditions; (iii) guide on the irrigation requirements of the flora in wetland and tree screens; (iv) establish baseline and performance targets for impact, outcome and output indicators relating to wetland and tree screens; (v) prepare cost estimates, procurement plan, appropriate contract packaging, implementation schedule, bid documents and TORs for project implementation consultants; and (vi) prepare indicative maintenance and operating plan and propose capacity development activities for concerned agencies to ensure sustainable management of wetlands, tree screens and their landscaping.

18. Environment experts (1 international, 2.5 person-months; 1 national, 3.5 person- months) shall be professionally qualified and must have at least 15 years (international) and 8 years (national) work experience in environmental impact assessment for urban environmental 12

infrastructure, inland river rehabilitation and flood control and urban transport projects. The experts will (i) assess the capacity of JMG and JEDIC for environmental assessment, management, and monitoring and recommend required measures for capacity building; (ii) advise the EA and the design institutes on the EIA requirements specified in the Safeguards Policy and review the EIAs prepared for each project component and make sure that all EIAs meet the requirements specified in the Safeguards Policy; (iii) prepare a consolidated project EIA and EMP following the format and contents specified in the annex to appendix 1 of the Safeguards Policy and ensure rigor in the English version of the consolidated EIA, including the EMP; (iv) evaluate the environmental appropriateness of project components and recommend environmentally friendly options for project component design and construction, including potential use of clean energy sources, reduction of greenhouse gas emissions, climate change resilient options; (v) conduct detailed assessment of environmental impacts of river training and assess downstream environmental impacts and potential application of adaptive environmental management for the river rehabilitation component; (vi) assess impacts on surface water, ground water and local hydrology due to the project components, including expected evapotranspiration and evaporation from new plantations; (vii) assist JMG with stakeholder participation, consultation, and involvement during preparation of EIAs and disclosure of relevant information (at least two rounds of public consultation are required); (viii) discuss with JMG and help develop a project-level grievance redress framework covering formal and informal channels, and setting out the timeframe and mechanisms for resolving complaints about environmental performance; (ix) establish environmental baseline indicators and performance targets for both output and outcome indicators; (x) prepare TOR and budget requirements for independent environment monitoring and evaluation during project implementation; (xi) verify if the project falls into any category under the Regulation of Nature Reserve issued by State Council of PRC (No. 167) and if so, make sure that the environmental impact assessment meets the requirement of such Regulation; and (xii) present the project EIA findings during the peer review in ADB and revise the consolidated project EIA or individual EIAs based on comments received from ADB and external reviewers. The consultant will ensure that the component EIAs and the draft consolidated EIA will comply with the Safeguards Policy requirements, including: (i) screening of environmental risks and impacts; (ii) establishment of comprehensive baseline information, including the accurate description of project’s activities during construction; (iii) assessment of potential direct, indirect, cumulative and induced impacts and risks to physical, biological, socioeconomic resources in the context of the project’s area of influence as defined in appendix 1, para. 6 of Safeguards Policy; (iv) due diligence of project associated facilities; (v) assessment of risks to physical cultural resources, including physical cultural resources protection planning if necessary; (vi) assessment of potential transboundary and global impacts, including climate change; (vii) meaningful public consultation and establishment of a grievance redress mechanism; (viii) occupational and community health and safety (including emergency preparedness and response plans); (ix) impacts on local livelihood systems through environmental media; (x) impact on biodiversity, and related biodiversity conservation and natural resources management requirements; (xi) compliance with internationally accepted standards and guidelines such as the World Bank Group's Environmental, Health and Safety Guidelines; (xii) comprehensive alternative analysis for all project components, including the without-project option; (xiii) development of an environmental management plan (EMP) that includes the proposed mitigation measures, environmental monitoring and reporting requirements, related institutional or organizational arrangements, capacity development and training measures, implementations chedule, cost estimates, and performance indicators.

19. Resettlement and social experts (1 international, 2.5 person-months; 2 nationals, total 5 person-months), should have relevant experience in administering social sector surveys and analyses with at least 15 years (international) and 8 years (nationals) work experience in 13

resettlement, indigenous peoples and gender and social impact assessment, preferably for urban environmental infrastructure, inland river rehabilitation and flood control and urban transport projects. The experts will (i) review the current poverty reduction policies and regulations related to urban development in the municipal government and the PRC; (ii) review the poverty situation in project areas and assess the project’s potential impact on the poor; (iii) prepare a consultation and participation plan and conduct key informant, focus group discussions and interviews, survey project beneficiaries by gender and income group, identify vulnerable groups including migrant workers, and estimate beneficiaries falling below the official poverty line; (iv) assist with formulation of contingent valuation survey; (v) design the questionnaire for the household survey, use survey results to assess the social, gender and poverty reduction impact, and assist in conducting a distribution analysis; (vi) conduct affordability analysis for the improved services, and the beneficiaries’ willingness to pay the tariffs and to contribute to and participate in the formulation, implementation, and operation and maintenance of the subprojects; (vii) collect and analyze socioeconomic baseline data and performance targets, including gender, which will be used to develop a DMF and PPMS;18 (viii) based on the poverty, social and gender analysis and consultations, assess project impacts and recommend mitigating measures (including labor and HIV/AIDS) and design options to maximize benefits; (ix) prepare the SPRSS, SAP and GAP in accordance with ADB guidelines, including measures to enhance the project benefits; (x) conduct the necessary awareness- raising campaign and stakeholder participation workshops to help stakeholders understand and be aware of the social impact of the proposed project and their contribution, opportunities, duties, and responsibilities; (xi) recommend approaches and methodologies to strengthen inclusive and participatory aspects in designing and implementing the projects, and identify components or subcomponents in each proposed project to involve gender-inclusive community participation; (xii) orient JMG and JEDIC on the Safeguards Policy requirements and procedures, assess the policy and legal framework for resettlement in the PRC, and propose measures to bridge any gap between ADB and PRC policies; (xiii) conduct a thorough scoping of ethnic minorities in the project area and possible social impacts and prepare, if necessary, an EMDP with reference to the Safeguards Policy focusing on minimizing risks, maximizing benefits and ensuring effective consultation with and participation of ethnic minorities, Operations Manual (OM) section F1 and Safeguard Requirements 3: Indigenous Peoples for the project; (xiv) assess the potential land use change or restriction to land use as an impact of the city’s wetland development project and propose necessary measures, as applicable; (xv) review the draft resettlement plans (RPs) and modify as required in compliance with the Safeguards Policy, OM section F1 and Safeguard Requirements 2: Involuntary Resettlement, and assist the IA in preparing and finalizing the RPs; (xvi) review the results of the socioeconomic surveys and analysis and conduct additional resettlement household surveys if necessary to ensure adequate understanding of social impacts.19 The RPs must include village-level social impact assessment of project-affected people, land, assets and occupations. Identify potential impoverishment risks and vulnerable groups, including those severely affected through loss of land, those with low income, and others (e.g., disabled, elderly, ethnic minorities, unemployed, illiterate, women, and children) and develop special mitigation measures, as required; (xvii) determine and document in the RPs the extent to which the project design has avoided or minimized land acquisition and displacement of people and businesses (xviii) define categories for impact and compensation eligibility of affected people (registered/unregistered) losing land, housing and businesses and prepare an entitlements matrix based on PRC laws and regulations, and the Safeguards Policy covering compensation and other assistance for all types of impacts to achieve full replacement for lost assets, income and livelihoods (direct and

18 The gender categorization of the project is effective gender mainstreaming, which requires at least 50% of outputs to be engendered and reflected in the DMF with relevant indicators and performance targets. 19 For household surveys, ADB requires 10% to 20% of affected people and enterprises, including 20% of seriously affected people. 14

indirect); (xix) identify compensation and rehabilitation options, and develop village level livelihood economic rehabilitation and improvement programs in consultation with affected people; identify options for agricultural improvement and benefit sharing arrangements; identify training needs of affected persons (APs) based on age group and existing skills and provide skill training so that they can secure jobs; make an assessment of the employment opportunities available and ensure the APs get access to these job opportunities and make an assessment of the social security benefits and support that will be made available to APs; (xx) assist JMG in preparing a public consultation and disclosure plan and initiate a participatory process for preparing and implementing the RPs and indigenous peoples development plan among the APs; (xxi) assess and justify that (a) the compensation standards are based on replacement value and (b) the overall resettlement budget is sufficient to acquire the land and implement the RPs based on the proposed entitlements and rehabilitation plans; (xxii) review the organizational structure and capacity to implement resettlement, and recommend improvements and actions before land acquisition and resettlement; (xxiii) recommend a grievance redress mechanism to handle complaints in an effective manner; (xxiv) prepare a summary RP and a detailed resettlement implementation schedule that is linked to the overall project implementation schedule and provide inputs to PAM; (xxv) help JMG develop an internal and external monitoring and evaluation plan, specifying key indicators of progress, mechanisms for reporting, resource requirements, and database maintenance;(xxvi) prepare terms of reference for independent resettlement monitoring and evaluation; (xxvii) assess the capacity of JMG and JEDIC for poverty, social and gender impact assessment, resettlement, indigenous peoples and recommend required measures for capacity building. 20 The consultant will also provide training to JMG, and JEDIC in ADB's resettlement and indigenous peoples’ planning and implementation requirements; and (xxviii) for land that has been already acquired in anticipation of ADB project a due diligence report needs to be prepared to ensure there are no outstanding land acquisition and resettlement issues. In case there are outstanding issues a corrective action plan needs to be prepared.

20. Economists and financial analysts (1 international, 2.5 person-months; 2 nationals, total 5 person-months) should have relevant qualifications in economic and financial analyses, financial management assessment, procurement capacity assessment and governance risk assessment, and at least 15 years (international) and 8 years (national) work experience in urban environmental infrastructure, inland river rehabilitation and flood control and urban transport projects. The experts will conduct the economic analysis for each project component and for the overall project in accordance with ADB’s Guidelines for Economic Analysis of Projects and other relevant policies and guidelines (footnote 2). The analysis will include economic rationale, demand analysis, least-cost analysis, cost effectiveness analysis, affordability analysis, distribution analysis (welfare and health impact of each project component on the poorest households will be estimated separately), contingent valuation, quantification of economic benefits and costs, evaluation of the economic viability of each project component and of the project as a whole, and risk and sensitivity analyses. The experts will also review the cost estimates and financing plan prepared for the project, and assess the financial viability and sustainability of each component and the project as a whole, in accordance with ADB’s Guidelines for Financial Management and Analysis of Projects and other relevant guidelines (footnote 3). The analysis should include a review of cost recovery mechanisms and give recommendations for strengthening the financial sustainability of project components and the sector as a whole. Further, the experts will undertake financial management assessments of the JMG and JEDIC, including the financial management system, accounting rules and practices, administrative procedures, internal control and audit, external audit, and procurement capacity

20 In components where farmers will lose a portion land, once for ADB-financed project, and then the entire farmland in future due to planned urban development, in such cases the livelihood restoration should be designed assuming that the farmers would suffer total land loss. 15

and practices, and identify funds flow and disbursement arrangements for the project. The experts will also identify potential project-related risks in three specific thematic issues, namely; (a) public financial management, (b) procurement, and (c) anti-corruption based on their procurement assessment and financial management assessment, and prepare a governance risk assessment and management plan.

21. Institutional expert (national, 3 person-months) shall be professionally qualified and have at least 10 years relevant work experience that will have covered all aspects of city government operation, management and financial control for urban environmental infrastructure, inland river rehabilitation and flood control and urban transport services. The expert must also be thoroughly conversant with ADB’s procedures, guidelines, and publications in relation to procurement, disbursement, DMF and PPMS and have working knowledge about ADB’s safeguards policy and procedures. The expert should possess good presentation and training skills. The expert will (i) review institutional arrangements for the project and assess the capacities of JMG and JEDIC in formulating infrastructural development projects and procuring goods and services, implementing, operating, maintaining, and managing the facilities to be constructed under the project, considering the technical, managerial, and administrative expertise of the staff, together with financial management experts; (ii) review the organizational structure of JMG, JEDIC, PMO and project leading group, and establish their respective TORs; (iii) compile the capacity development needs for JMG, JEDIC and other concerned agencies, received from all the other experts under the TA and design a comprehensive capacity development program for relevant project components and themes with assistance of sector experts; (iv) design and conduct training workshops to cover ADB procedural requirements, including procurement, disbursement, DMF, PPMS, EIA and EMP, involuntary resettlement and indigenous peoples and social assessment; and (v) identify the consulting services and the TOR for project implementation, and long term capacity development programs under the loan.

F. Implementation Arrangements

22. The TA will be implemented over 17 months, from August 2011 to December 2012, including consultant recruitment, and will be financially closed on 31 March 2013. The executing agency will be JMG, and the implementing agency will be JEDIC. A project management office (PMO) was established under JMG to manage day-to-day TA activities. A project leading group was established comprising JMG’s urban agencies to provide policy guidance and oversee TA implementation. JMG will provide a suitably furnished office with utilities, telecommunication access, local city transport for consultants to site visits, materials, maps, data, and documents required by the TA, and will cover the cost of counterpart staff and support staff. The TA equipment will be procured by the consultants in accordance with ADB’s Procurement Guidelines (2010, as amended from time to time) and transferred to JMG upon TA completion. Disbursements under the TA will be in accordance with ADB’s Technical Assistance Disbursement Handbook (2010, as amended from time to time).

23. TA reports will be prepared in English and Chinese. Five copies of each report in English will be submitted to ADB, and 10 copies of both English and Chinese reports will be submitted to JMG. The consultants will present the key findings of each report in tripartite workshops to be held after the submission of the inception report, interim report and draft final report. The proposed TA processing and implementation schedule is listed in Table A4.4.

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Table 4.4: Proposed Technical Assistance Processing and Implementation Schedule Major Milestones Expected Completion Date TA reconnaissance mission April-May 2011 Concept paper clearance and TA approval II August 2011 Selection and recruitment of consultants August-December 2011 Consultant mobilization I February 2012 TA inception report IV February 2012 TA interim report II May 2012 TA draft final report IV Jul 2012 TA final report IV October 2012 Physical completion IV December 2012 Financial completion IV March 2013 Source: Asian Development Bank.