Technical Assistance Consultant’s Report
Project Number: 46048-001 March 2014
People’s Republic of China: Jilin Urban Development Project
FINAL REPORT (Volume I of V)
Prepared by HJI Group Corporation
Costa Mesa, CA, USA.
For Jilin Provincial Government
This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design.
CURRENCY EQUIVALENTS (As of 15 January 20141)
Currency Unit – yuan (CNY) CNY 1.00 = $ 0.1667 $1.00 = CNY 6.000
ABBREVIATIONS
1 Due to the uncertainty of future change of the exchange rate, a fixed currency exchange rate is assumed and used for the analysis of the project.
WEIGHTS AND MEASURES
NOTE
In this report, "$" refers to US dollars.
Jilin Urban Development Project (TA 8172-PRC) Final Report
March 24, 2014
Mr. Arnaud Heckmann Project Manager Urban Development Specialist East Asia Department Asian Development Bank Manila, Philippines
Re: Draft Final Report Submission Jilin Urban Development Project (TA 8172-PRC)
Dear Mr. Heckmann:
The PPTA Consultant, HJI Group Corporation (HJI), is pleased to submit the Final Report for the referenced project for your review and approval. The report was prepared based on the project Terms of Reference and summarized the study and assessment results during the PPTA process..
Should you have any questions regarding the submission, please do not hesitate to contact me.
Very Truly Yours, HJI Group Corporation
Yinbo Liu, PhD, PE Team Leader
Encl.
Cc: Jim Qin (w/o enclosure) file
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Table of Contents
ACKNOWLEDGEMENTS ...... 8 MAPS ...... 9 EXECUTIVE SUMMARY ...... 17 I. THE PROPOSAL ...... 22 A. PROJECT BACKGROUND ...... 22 B. BAISHAN CITY ...... 23 B.1 Natural Conditions ...... 24 B.2 Urban Development Master Plan ...... 24 B.3 Subproject Rationale and Justification ...... 28 C. BAICHENG CITY ...... 31 C.1 Natural Conditions ...... 32 C.2 Urban Development Master Plan ...... 32 C.3 Subproject Components ...... 37 C.4 Subproject Rationale and Justification ...... 38 II. THE PROJECT ...... 41 A. RATIONALE ...... 41 B. IMPACT AND OUTCOME ...... 41 C. OUTPUT ...... 41 D. SPECIAL FEATURES ...... 45 E. PROJECT INVESTMENT AND FINANCING PLAN ...... 46 F. IMPLEMENTATION ARRANGEMENT ...... 48 G. PROJECT APPROVAL AND TIMETABLE ...... 49 III. DUE DILIGENCE ...... 51 A. TECHNICAL AND ENGINEERING ...... 51 A.1 Improved Urban Roads, Bridges and Municipal Services in Baicheng ...... 51 A.2 Integrated Municipal Solid Waste Management System in Baicheng ...... 59 A.3 Integrated Municipal Solid Waste Management in Baishan ...... 63 A.4 Improved Water Supply Management in Baishan ...... 68 A.5 Contract Packaging...... 75 A.6 Improved Capacity & Institutional Arrangement ...... 76 B. BAICHENG URBAN DEVELOPMENT ANALYSIS ...... 78 C. FINANCIAL ANALYSIS ...... 83 C.1 Introduction ...... 83 C.2 Financial Sustainability Analysis for Non Revenue Generating Subcomponent ... 86 D. ECONOMICS ANALYSIS ...... 90 D.1 Introduction ...... 90 D.2 Justification ...... 90 D.3 Demand Analysis ...... 92 D.4 Economic Returns ...... 94 E. ENVIRONMENTAL ANALYSIS ...... 95
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E.1 Background ...... 95 E.2 Positive Impacts and Environmental Benefits...... 95 E.3 Potential project impacts and mitigation measures ...... 98 E.4 Public consultation, information disclosure, and grievance redress mechanism (GRM)...... 99 E.5 Conclusions ...... 99 F. LAND ACQUISITION AND RESETTLEMENT ...... 100 F.1 Introduction ...... 100 F.2 Components of the Project and Impact Scope ...... 100 F.3 Resettlement Principles and Entitlements ...... 102 F.4 Resettlement and Livelihood Rehabilitation ...... 102 F.5 Institutional Arrangement ...... 103 F.6 Cost and Schedule ...... 103 F.7 Monitoring and Evaluation...... 103 G. POVERTY & SOCIAL ANALYSIS ...... 105 G.1 Introduction ...... 105 G.2 Rationale ...... 105 G.3 Methodology ...... 105 G.4 Socio-economic Profile of the Project Area ...... 105 4.1 Project Areas and Beneficiaries ...... 105 4.2 Economic Development, Income, Employment and Education ...... 106 G.5 SOCIAL IMPACT ANALYSIS ...... 107 5.1 Integrated Solid Waste Management System ...... 107 5.2 Water Supply Management ...... 107 5.3 Urban Roads and Municipal Service ...... 108 G.6 Poverty Analysis ...... 108 G.7 Gender...... 109 G.8 Ethnic Minority ...... 109 G.9 Social Risks and Management ...... 109
APPENDIXES
Appendix A - Design and Monitoring Framework Appendix B - Problem Tree Appendix C - Sector Analysis Appendix D - Project Organization Chart Appendix E - Project Contractual Arrangement Appendix F - Fund Flow Mechanism Appendix G - Implementation Schedule Appendix H - Detailed Cost Estimates Appendix I - Financial Analysis Appendix J - Economic Analysis Appendix K - Procurement lan Appendix L - SAP Appendix M - GAP Appendix N - SPRSS Appendix O - SRP Appendix P - Risk Assessment and Management Plan Appendix Q - Water Safety Plan Appendix R - Procurement Capacity Assessment
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Volume II of V
Supplementary Appendix 1 - Project Administration Manual Supplementary Appendix 2A - Baicheng Integrated Municipal Solid Waste Management Supplementary Appendix 2B - Baishan Integrated Municipal Solid Waste Management Supplementary Appendix 3 - Baicheng Infrastructure Analysis
Volume III of V
Supplementary Appendix 4 - Baishan Water Supply Analysis Supplementary Appendix 5 - Baishan NRW Analysis Supplementary Appendix 6 - Financial Analysis Supplementary Appendix 7 - Economic Analysis Supplementary Appendix 8 - Financial Management Assessment Supplementary Appendix 9 - Urban Planning Analysis
Volume IV of V
Supplementary Appendix 10A - Resettlement Plan (Baishan ISWM) Supplementary Appendix 10B - Resettlement Plan (Baishan Water Supply) Supplementary Appendix 11C - Resettlement Plan (Baicheng)
Volume V of V
Supplementary Appendix 11A - Poverty and Social Analysis (PSA) Supplementary Appendix 11B - PSA Survey Report Supplementary Appendix 12A - Initial Environmental Examination (IEE) Supplementary Appendix 12B - Environmental Management Plan (EMP) Supplementary Appendix 13A - Road Map for Baicheng Urban Road Supplementary Appendix 13B - Road Map for Baishan Water Supply Supplementary Appendix 13C - Road Map for ISWM
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ACKNOWLEDGEMENTS
The project team of TA 8172-PRC: Jilin Urban Development Project, gratefully acknowledges the support given by the Asian Development Bank during the preparation of the project activities and deliverables, in particular from Mr. Arnaud Heckmann, the mission leaders, for providing instructions and suggestions and encouragements during the preparation of the project.
The project team is also gratefully acknowledges the supports and hospitality from EA/IAs and PMO, Jilin Provincial Project management Office, Baicheng Municipal Government and Baishan Municipal Government. Their supports were the keys for the successful completion of the preparation of the project.
The project team is also thankful to the design institute: China Northeast Design Institute, the environmental institute: Jilin Yinhe Hydraulic Technology Co Ltd (Baishan Water) and China Northeast Design Institute (Baicheng and Baishan MSW), the resettlement institute: China Northeast Design Institute, and other engineering design institutes who provided the required engineering analysis and design for the preparation of the project.
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Maps
Jilin Province
PROJECT LOCATION
Figure 1.1 Jilin Urban Development Project – Project Location Map
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Figure 1.2 Component I (Baicheng Roads) - Proposed Roads on City Road Master Plan
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Figure 1.3 Component I (Baicheng Roads) - Proposed Roads in the Existing Baicheng Urban Road System
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Figure 1.4 Component II (Baicheng MSW) - MSW Transfer Stations & Sorting Facility
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Xib eicha Reservoir
Jiangyuan Water Treatment Plant Water Source & Transmission Line
Water Treatment Plant
Figure 1.5 Component III (Baishan Water Supply) - Water Transmission Line & Water Supply Treatment Plant
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Figure 1.6 Component III (Baishan Water Supply) - Jiangyuan Water Distribution Network Improvements
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Land Fill Site
I ntegrated Solid Waste Management Center
Figure 1.7 Component IV (Baishan MSW) – Landfill site and Sorting Plant
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Figure 1.8 Component IV (Baishan MSW) - MSW Transfer Stations
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EXECUTIVE SUMMARY
Background and Objectives: 1. The proposed project is to assist Baicheng and Baishan municipal governments, two prefecture level cities in the less developed area in Jilin Province in northeastern PRC, to improve and upgrade their urban infrastructures and municipal services and to improve the environment and living conditions of the urban areas. Baicheng City is located in the north end of Jilin Province near the conjunction of Liaoning, Inner Mongolia and Heilongjiang provinces. It is a transportation hub connecting three provinces/autonomous region and it is also a key stop on the one of the four Europe-Asia transportation corridors connecting Mongolian and Russian to the coastal area in the east. The city is also an industrial development and agricultural product center in the northern Jilin Province. Even though the city has big potential for rapid economic development, the actual economic development is lagging behind due to lack of investment and inadequate urban infrastructures and municipal services. Baishan City is located in the south end of Jilin Province in the famous Changbai Mountain area. The city was used to be a timber production center relaying on harvesting trees from Changbai Mountain forest. Since the government started to limit tree cutting for forest protection in late 1980's, the city became a resource exhausted city and faced challenges to find new development directions for economic transformation. The city then has shifted the economic development direction to tourism development and natural goods production such as spring water and mushrooms. The tourism development and local goods production needs to be supported with adequate urban infrastructures and municipal services for better environment and living condition. Currently, the city water supply system could not provide 24 hour supply due to the limited capacity. The city is in urgent need to upgrade their municipal service, especially water supply and municipal solid waste management system.
2. The main objectives of the proposed project are to upgrade the urban infrastructures in Baicheng and Baishan, improve urban environment and living condition, promote 3R principle based integrated municipal solid waste management, improve water supply management and operation efficiency, reduce NRW loss, and promote people centered urban transport system with emphasis on pedestrian and bicycle traffic and public transportation.
Rationale: 3. The project integrated municipal solid waste management components in Baicheng and Baishan will introduce 3R principle based municipal solid waste management system with the introduction of solid waste sorting at the source for recycling as well as kitchen and non-kitchen wastes, establish the sorting and composting centers to reuse portion of the kitchen solid waste for composting, procure construction waste recycling machine at the MSW sorting centers to recycle the construction waste for reuse, construct or rehabilitate the municipal solid waste transfer stations and upgrade solid waste collection and transport vehicles to improve the effectiveness and efficiency of the city solid waste management system, and upgrade the city cleaning and maintenance fleet to improve the city environmental and health conditions.
4. The project water supply component in Baishan will release the water supply shortage pressure for the urban resident to ensure 24 hour water supply, provide reliable water source for both Hunjiang and Jiangyuan district residents to replace the current polluted and unstable water supply sources, upgrade the existing aged and substandard water supply distribution network to increase the water supply coverage and reduce nonrevenue water (NRW) loss, introduce water safety plan to improve water supply safety during operation, and implement water supply monitoring and control system (SCADA) to improve energy efficiency.
5. The project urban road component in Baicheng will support the urban development needs as a regional transportation hub and the industrial production center, provide the missing
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links of urban roads and the municipal services to the residential and commercial developments which are completed or under construction in the western and southern parts of the city, introduce the people centered urban transport system with emphasis on developing pedestrian and bicycle traffic and public transportation, and construct the bus priority lanes on the new urban roads.
6. The project institutional strengthening and capacity development component will provide support to the project implementation, capacity development on integrated municipal solid waste management system to guide the implementation of the 3R principle based solid waste management system, capacity development on nonrevenue water loss reduction by introducing advanced leaking detection technology and equipment and institutional strengthening and training on the management staff, and capacity development on urban transport for the implementation of pedestrian and bicycle and public transportation oriented urban transport system.
Impact and Outcome: 7. The project impact is the improved environment and living conditions in the urban areas of Baishan and Baicheng cities. The project outcome is the improved environmentally friendly urban infrastructures and municipal services.
Output: 8. There are four project outputs for the proposed project:
Component 1 - improved urban roads, bridges, and municipal services in Baicheng to construct 9 urban roads and the associated water supply, sewer, stormwater, power, communication, lighting, landscaping and other facilities.
Component 2 - integrated solid waste management system (ISWM) in Baicheng to establish MSW sorting system at the source, build a kitchen waste sorting and composting center, build 12 new MSW transfer stations, and upgrade MSW collection and transport equipment and fleet.
Component 3 - integrated solid waste management system in Baishan to establish MSW sorting system at the source, rehabilitate 15 MSW transfer stations, build a kitchen waste sorting and composting center, construct Phase II of the sanitary landfill, and upgrade MSW collection and transport equipment and fleet.
Component 4 - improved water supply management in Baishan to build 28 km water transmission lines, construct a new water treatment plant, upgrade existing and build new water distribution pipe network.
Component 5 - capacity development and institutional arrangement for project implementation support and capacity development on integrated municipal solid waste management, improvement of water supply operation and management, and the implementation of people centered urban transport.
Project Investment Plan and Financing Plan: 9. The project is estimated to cost $401.5 million as shown in the following table.
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Project Investment Plan ($ millions)
Item Amounta Share of (CNY million) ($ million) Total (%) A. Ba se Costb 1. Baicheng Municipal Services 1,407.6 234.59 60.5% a. Urban infrastructures 1,213.7 202.28 52.1% b. Municipal solid waste management 193.9 32.32 8.3% 2. Baishan Water Supply 381.3 63.55 16.4% 3. Baishan Municipal Solid Waste 188.0 31.33 8.1% 4. Capacity Development and Institutional Strengthening 18.0 3.00 0.8% Subtotal (A) 1,994.8 332.47 85.7% B. Contingenciesc 287.6 47.93 12.4% C. Financing Charges During Implementationd 45.6 7.60 2.0% Total (A+B+C) 2,328.0 388.00 100.0% a Includes taxes and duties to be financed from ADB loan resources of: $16.57 million. b In mid 2013 prices. c Physical contingencies computed at 5% for civil works; and 5% for field research and development, training, surveys, and studies. Price contingences computed at 6.03% on foreign exchange costs and 9.37% on local currency cost; includes provisions for potential exchange rate fluctuation under the assumption of a purchasing power party exchange rate. d Includes interest and commitment charges. Interest during construction for ADB loan(s) has been computed at the 5- year forward London interbank offered rate plus a spread of 0.5% and additional 0.2% surcharge for ALM premium Commitment charges for an ADB loan are 0.15% per year to be charged on the undisbursed loan amount. Note: Numbers may not add precisely due to rounding.
10. ADB will finance $150 million, of which $100 million is for Baicheng subproject and $50 million is for Baishan subproject, or 37.4% of total investment.
11. The government has requested a loan of $150.0 million from ADB’s ordinary capital resources to help finance the project. The loan will have a 25-year term including a grace period of 6 years, an annual interest rate determined in accordance with ADB’s London interbank offered rate-based lending facility, a commitment charge of 0.15% per year, and such other terms and conditions set forth in the draft loan and project agreements. The ADB loan will also finance taxes and duties for eligible ADB-financed expenditures, and transportation and insurance costs included in the base cost for ensuring smooth project implementation. The loan will finance 37.4% of the project cost, including civil works, equipment and materials, and institutional strengthening. The government will finance the remaining $251.5 million through counterpart funds from the two project cities as shown in the following table.
Financing Plan ($ millions) Table 2. Financing Plan Amount Share of Source (CNY million) ($ million) Total (%) Asian Development Bank 900.00 150.00 38.66% Baicheng Municipal Government 1,056.75 176.12 45.39% Baishan Municipal Government 371.26 61.88 15.95% Total 2,328.00 388.00 100.00% Note: Numbers may not add precisely due to rounding.
Period of Utilization: 31 December 2018
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Estimated Project Completion Date:
Project Completion Date: 30 September 2018
Implementation Arrangement: 12. The executing agency (EA) for the project is Jilin Provincial Government. A project management office was established under Jilin Housing and Urban Development Department. Baishan Municipal Government is the implementing agency (IA) for Baishan ISWM and water supply components, Baishan Xibeicha Qiyuan Hydropower Co Ltd is the project implementing unit (PIU) for the water supply subcomponent, and Baishan Solid Waste Disposal Co Ltd is the PIU for ISWM subcomponent. Baicheng Municipal Government is the IA for Baicheng urban road and ISWM components, and Baicheng Economic Development Zone Investment and Development Company is the PIU for the subproject implementation.
Procurement: 13. All procurement to be financed under the loan will be carried out in accordance with ADB’s Procurement Guidelines (2007, as amended from time to time). Civil works contracts valued over $10 million and contracts for goods and related services above $1.0 million shall follow ADB procedures for international competitive bidding (ICB). Civil works contracts valued at $10 million or less and contracts for goods and related services at $1.0 million or less will be procured following national competitive bidding (NCB) procedures. Packages for goods and related services valued at $100,000 and less and civil works valued at $200,000 and less will be procured through shopping procedures. The selection and engagement of contractors and suppliers will be subject to ADB approval.
Consulting Services: 14. The Project includes provision for funding xx person-months of international and xx person-months of national consulting services to support the EA/PMO in project implementation and management and institutional capacity building. The consulting package is to be provided through a consultancy firm that will be selected using quality- and cost-based selection (QCBS) in accordance with the Guidelines on the Use of Consultants by Asian Development Bank and its Borrowers (2007, as amended from time to time).
Environmental Impact and Mitigation: 15. Potential project impacts, both positive and negative, were assessed during the domestic EIA, the CIEE and PPTA studies, through site visits, technical analysis, as well as consultations with government agencies and local communities, and dialogues among the EA, IAs, DIs, EIA institutes and PPTA consultants. During construction for all project components, potential impacts include soil erosion, noise and vibration, fugitive dust, construction wastewater and solid wastes, and community and occupational health and safety. Overall, construction-related impacts will be localized, short term, and can be effectively mitigated through the application of good construction practices and implementation of community and occupational health and safety plan.
Land Acquisition and Resettlement: 16. The project will acquire a total of 4059 mu land and resettle a total of 57824 m2 house. The total affected households will be 701 and the affected people will 1914. The estimated cost for land acquisition and resettlement is CNY 403 millions.
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Risks and Risk Management: 17. The Project does not have any unusual technical risks. The potential risks are mainly related to the project management, contract management and procurement management. The following risks could affect timely implementation and realization of the project: i) PMO/PIU is lack of the experience in project management, procurement, contract management, and financial management; ii) delays in implementing land acquisition and resettlement programs, and (iii) delays in the provision of counterpart funding.
18. These risks can be mitigated through the implementation of risk management plan. Risk (i) will be mitigated through capacity development program and the selection of a strong and experienced implementation consulting team to help EA/IA for the project implementation and to provide guidance in project management, contract management, procurement assistance, financial management and other management tasks. Risk (ii) will be mitigated by expeditious implementation of the detailed measurement surveys (DMS), early availability of AP compensation funding, and strict operational compliance with the RPs. Risk (iii) will be mitigated through covenanted assurances from the governments for timely provision of counterpart funding.
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I. THE PROPOSAL
A. PROJECT BACKGROUND 1. Jilin Province is located in the middle of northeastern China, between the altitude 122o – 131o and latitude 41o – 46o. The total area is 187.4 thousand square meters, accounting for about 2% of the total PRC area (13th in PRC) and the total population is about 27.5 million (2012) accounted for 2% of the total population (21st in PRC). The province is bordered with Heilongjiang Province in the north, Liaoning Province in the south, Inner Mongolia in the west, Russia in the east, and the Democratic People’s Republic of Korea (DPRK) in the southeast across the Yalu River. The size of the province is about 650 km in east-west direction and 300 km in north-south direction. The provincial capital is Changchun and there are seven prefecture level cities (Jilin, Siping, Tonghua, Baishan, Liaoyuan, Baicheng, and Songyuan) and one autonomous state (Yanbian Korean State). The geographic condition in Jilin is categorized as the mountainous area in the southeast, including the famous Changbai Mountain and flatter area in the northwest. The general topographic of the province is sloping down from the southeast to northwest. The climate condition is categorized as “continental climate” with the clearly defined four seasons. It is dry and windy in spring, hot and rainy in summer, clear and pleasant in fall, and cold and snowy in winter. The average low temperature in winter is below - 11oC and the high temperature is 23oC in summer. The average annual precipitation is ranging 400 – 600 mm, concentrated in summer months. The non-frost period is at the range from 100 to 160 days.
2. Based on the PRC’s 12th FYP 2, among the sixteen national development strategies outlined, the urbanization and the green and environmentally friendly development are top priorities. The provincial government has created the sustainable economic and social development strategies toward the economic development, environmental protection and improvements on living condition. The northeastern part of China is used to be the heavy industrial base, especially during the 1950’s to 1980’s before the PRC economic reform started. Almost all enterprises are large state owned companies with out-dated technologies and poor management. The productive is very low and the products cannot meet the fast economic development needs both in quality and quantities. After the economic reform, a lot of such enterprises were bankrupted due to their products fail in the market competition. The entire northeast area including Heilongjiang, Jilin and Liaoning has suffered big economic losses in late twentieth century. In order to improve the conditions and help to stimulate the economic development for the area, the PRC state council initiated a regional economic development plan, namely “Strategy of Revitalization of Northeastern Old Industrial Base”3 to promote the regional economic development. The plan has identified nine areas of improvements, including economic structure adjustment, new technology application, agricultural development, infrastructure development, economic transformation, green development, social development, regional corporation, and continuing economic reform. The two project cities, Baicheng City and Baishan City, are two major prefecture level cities in Jilin Province. Baishan City has been identified as the demonstration city for economic transformation for resource exhausted cities. The proposed project will improve the urban infrastructure and municipal service development in Baishan and Baicheng cities to promote urban development, improve the urban living condition and urban environment improvement, and it is in line with both national and regional development strategies.
3. Jilin is one of the important industrial bases in PRC with manufacturing, automobile, petrochemical, and agriculture as the major industries. In 2011, the province GDP reached CNY1056.9 billion with an annual increase rate of 13.8%, ranking 22nd among all provinces in
2 People’s Republic of China 12th Five Year Plan for Economic and Social Development (2011 – 2015), State Council 2011 3 Strategy of Revitalization of Northeastern Old Industrial Base, State Council of PRC, 2009
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PRC. The GDP per capita was CNY38,460, ranking 11th among all provinces and higher than the national average of CNY35,181. The percentage of the urban population was 53.4%, which is a little higher than the national average of 51.3% and ranking at 12th in PRC. The disposable income per capita was CNY17,797, which was much lower than the national average of CNY21,810 and ranking at 23rd in PRC. In accordance with provincial urban development strategy by Jilin Provincial Government as shown in Figure 1.9, the major urban development will be centered in Changchun, with the radial development in northeast direction toward Heilongjiang Province, southwest direction toward Liaoning Province, northwest direction vs. Baicheng toward Inner Mongolia, and southeast direction to Changbai Mountain. The secondary development will be centered in Meihekou City with the radial development toward Jilin City in the northeast, Liaoning Province in the southwest, Siping City in the northwest, and Baishan and Tonghua cities in the southeast. The tourist development zone will be along the north side of the Changbai Mountain from Yanji City in the northeast to Baishan City and Tonghua County in the southwest. In order to promote the regional cooperation with the neighboring countries, the provincial government, supported by the central government, initiated the development plan of “Strategy of Developing Changchun-Jilin-Tumen Corridor”4, a regional cooperation development strategy to open a transportation corridor linking Mongolia and Russian to Korea through Jilin Province. As shown in Figure 1.9, Baicheng is located in the northern part of the corridor, and Baishan is located in the southern part of the green tourism development corridor. Both cities are key urban development cities as identified in Jilin urban development strategy.
Figure 1.9 Jilin Province Urban Development Planning Strategy
B. BAISHAN CITY 4. The city of Baishan is located west of Changbai Mountain in southeastern Jilin with the altitudes between 126o7’ and 128o18’ and the latitudes between 41o21’ and 42o48’. The city is
4 Strategy of Development of Changchun-Jilin-Dumen Corridor, Jilin Province 2008
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surrounded by Yanbian in the east, Tonghua in the west, Jilin City in the north, and DPRK in the south across the Yalu River. The city is located in the mountainous area of Changbai Mountain, covered with thick forest. The highest elevation is 2,691 m at the main peak of Changbai Mountain, Baiyun Peak, and the lowest point is 279 m at Pizhoukouzi in Jingyu County in the southwest. The river system is well developed with the major rivers of Yalu River, Songhua River, Hun River, etc. The climate condition in the region is categorized as the continental monsoon climate with very cold winters and hot rainy summers. The average annual precipitation is 883 mm and the average non-frost period is about 140 days. The city is a prefecture level city with the jurisdictions of two districts of Hunjiang and Jiangyuan, one city of Linjiang City, and two counties of Jingyu and Changbai. The total territory is about 180 km in east and west direction and 163 km in south and north direction, and the total area is 17,485 km2. In 2011, the total population was 1.29 million, ranked 11th among all 77 cities/districts/counties in Jilin. The percentage of the agricultural population was 31.2%. The total GDP was CNY53.1 billion, ranked 8th among all 49 cities/counties in Jilin, and the GDP per capita was CNY41,325, ranked 12th in Jilin. The disposable income for the urban resident was CNY18,483, ranked as the second from the last among all nine prefecture or large cities.
B.1 Natural Conditions 5. Baishan is located at about 292 km south of Chanchun, the provincial capital, in the western side of Changbai Mountain. The territory is covered by mountains, forest, and a well- developed waterway system. The forest coverage reaches 83%. The main river watersheds are Yalu River and Songhua River with an estimated watershed area over 100km2. The average annual water resource is about 7.2 billion m3, and the water resource per capita is about 2.7 times of the national average. The climate condition is categorized as a continental monsoon climate with the clearly defined four seasons, the very cold winters and hot summers. The climate condition is summarized in Table 1.1.
Table 1.1 Summary of Climate Condition in Baishan
No. Description Data Remark
1 Average Temperature 4.6 oC 2 Highest Temperature 36.5 oC 3 Lowest Temperature -42.2 oC 4 Non-frost Period 140 days 5 Sunshine Time 2259 hrs 6 Average Annual Precipitation 883 mm From May to September 7 Average Relative Moisture 8 Average Wind Velocity 9 Primary Wind Direction Southwest 10 Frost Depth 93-127 cm (Source: Consultants)
B.2 Urban Development Master Plan 6. Historically, Baishan is a typical resource development city with the supporting industries of forest, coal mining, and iron ore mining. As the mining resources are exhausted and in light of the central government policy for forest protection, the city is required to find a new way for the regional economic development. In 2006, the city was identified as the
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resource transformation city by the state council, and has set up the development strategy based on the industrial and tourist developments. According to the city development master plan, the objectives for Baishan are to develop the city as an urban center in southern Jilin with the emphasis on the developments of energy, processing, and tourism, and to develop the urban areas into an environmentally and ecologically friendly better livable city.
7. In accordance with the city master plan as shown in Figure 1.10, the major urban development will concentrate on the development of: i) two major urban centers — Baishan City and Songjianghe Town; ii) four secondary cities — Fusong Town, Linjiang District, Jingyu Town, and the town of Changbai Korean Autonomous County; and iii) the other 19 townships. There are three major corridors to further interlink among these major cities and towns, including: i) Talu River development corridor connecting Baishan, Linjiang, and Changbai; ii) Baicheng Songyuan corridor to link Heilongjiang and Liaoning; and iii) Songjianghe Jingyu corridor to connect to Changchun. The main functions for each major city have been identified as the followings:
Two City Centers: • Baishan City – consisted of Huijiang and Jiangyuan districts. It is the center for administration, residential development, industrial and energy development, manufacturing, construction materials, and tourist service center • Songjianghe Town – center of Changbaishan tourism and forest industrial development
Four Secondary Cities: • Fusong Town – administration and economic center to support Chanbaishan tourism and tourism development • Jingyu Town – center for spring water production, green food, energy and tourism development • Linjiang City – industrial center for mining, hydropower, phamasutical as well as green food and tourism development • Changbai Town – center for tourism development for Changbai Mountain, Yalu River, Korea cultural heritage
Nineteen Townships: Including Liudaojiang, Qidaojiang, Sandaogou, and other total 19 townships.
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Figure 1.10 Baishan Urban Development Master Plan
8. The urban area of Baishan city consists of two separate districts, namely Hunjiang and Jiangyuan districts. Jiangyuan district is located at about 22 km northeast of Hunjiang district. Hunjiang district is the political and economic center where the municipal government is located, and Jiangyuan district is the center for services, business and residential areas. The urban area of Hunjiang and Jiangyuan is shown in Figure 1.11.
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Hunjiang District Jiangyuan District
Figure 1.11 The Urban Area of Baishan City – Hunjiang and Jiangyuan Districts
9. The proposed subproject is located in the urban area of Baishan City. There are two subproject components in Baishan. One is the water supply component, which includes: i) water transmission line from Xibeicha Reservoir, which is under construction and planned to be completed in 2015; ii) a new water supply treatment plan; and iii) water distribution piping network. The second project component is the integrated municipal solid waste management, which includes: i) Phase II of the municipal solid waste disposal landfill site; ii) upgrade of municipal solid waste transfer stations; and iii) improvement of garbage collection, transport, and management system. The proposed project components are shown in Figures 1.5 and 1.6.
10. The Baishan Urban Development Master Plan has been developed and the planning period is from 2007 to 2020. In conjunction of the proposed project components, the development criteria defined in the urban development master plan is summarized in Table 1.2.
Table 1.2 Summary of City Master Plan Development Criteria
No Description Criteria/Target Remark
1 Population Projection: 2015 1.40 million 2020 1.45 million 2 Urban Population / Urbanization Rate: 2015 1.05 million/75% 2020 1.15 million/80% 3 Baishan City Population Projection (2020) 500,000 4 Baishan City Urban Area (2020) 46 km2 5 Water Supply Standard (2020) 2015 0.35 m3/person.day 2020 0.40 m3/person.day
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6 Hunjiang District Water Usage Projection: 2015 113,000 m3/day 2020 138,000 m3/day 7 Jiangyuan District Water Usage Projection: 2015 47,900 m3/day 2020 61,500 m3/day 8 Wastewater Coverage: 2015 85% 2020 90% 9 Wastewater Treatment Plant Capacity: Hunjiang District 100,000 ton/day Jiangyuan District 35,000 ton/day 10 Domestic Solid Waste Collection: 2015 90% 2020 95% 11 Domestic Solid Waste Enclosed Transport: 100% 12 Average Domestic Solid Waste Projection: 2015 1.35 kg/person.day 2020 1.20 kg/person.day 13 Total Domestic Solid Waste Projection 2015 612 ton/day 2020 618 ton/day 14 Garbage Transfer Station: Service radium 0.8 – 1.0 km Service area 2.0 – 4.0 km2 Station area 200 – 2,000 m2 (Source: Consultants)
B.3 Subproject Rationale and Justification 11. Baishan has been identified as one of the urban development centers in southern Jilin for industrial, processing, and tourist development by the provincial government. The city is located in Changbai Mountain area with rich forest, minerals, and water resources. The city is used to be a natural resource dependent city with major industrial development concentrated in timber production, mining for iron, coal, and other materials. As the government policy for protecting the forest resources to limit the tree cutting has been implemented and the mining resources become exhausted, the city has suffered big economic loss due to the significant reduction of industrial revenues. The city needs to find new economic development engine to maintain the local economic development. The tourism development relying on Changbai Mountain and the new business development based on the production of the forest resources
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have been identified as the new economic development directions. The city is facing the challenges of the economic transformation from the traditional forest and mining industries to the tourism and processing based new urban center with better and improved living conditions. The proposed project will help to improve the urban environment and to provide better municipal services to the existing urban residents.
12. The urban area of Baishan consists of two districts, Hunjiang District and Jiangyuan District, at about 22 km apart. Hunjiang District is the main urban area where the municipal government is located, and Jiangyuan District is a smaller urban area located in the northeast of Hunjiang District. The water treatment plant and the water distribution network in Jiangyuan have been upgraded recently, and the currently water supply facilities have adequate capacity to treat and supply water to the local residents. Currently, the water supply capacity in Jiangyuan district is 30,000 m3/day, and the water supply source is from the surface water of Taiyangcha River. However, due to the pollution of the river from the upstream mining and the inadequate size of the reservoir, water quality does not meet the required drinking water standards and the water supply amount cannot be maintained at all the time. The proposed subproject component will build a new water transmission line from the new Xibeicha reservoir to supply clean water to Jiangyuan district and replace the current substandard and unreliable water source from Taiyangcha River. The existing water source will be mainly for industrial uses.
13. In Hunjiang district, there are four water sources to provide water for the urban area. Qujiaying Reservoir is located in the middle reach of the Hunjiang tributary, Hongtu’ai River, at about 9 km from the center city. The reservoir was built in 1993 with an effective capacity of 20.3 million m3. The reservoir has the capacity to supply an average of 115,800 m3/day water under normal working condition. Zhenzhumen and Kucanggou water sources are both underground water with the capacities of 9,000 m3/day and 5,000 m3/day, respectively. Zhenzhuman is located in the downstream of a gold mining site; the water is populated and cannot be used as the water source. The water output quantity for Kucanggou is too small as a reliable water source for the urban area. The last existing water source, Jinyingmen, has been closed due to pollution and significant drop of the water output. Therefore, currently Qujiaying Reservoir is the only water source supplying water to Hunjiang district, which is not reliable due to the small size of the reservoir and variation of surface water supply. The current urban water consumption is provided by Nanshan Water Supply Plant located in the southern part of Hunjinag district. The plant was originally built in 1992 with a supply capacity of 50,000 m3/day. The plant was later expanded to have the supply capacity of 80,000 m3/day. However, due to the aging equipment and high water loss rate, the actual production capacity is well below the design capacity. Due to the unreliable water source and inadequate water treatment capacity, the municipal government cannot supply adequate water for the urban residents and businesses. During the peak water use period in summer, the water supply company has to impose the mandatory water supply shutoff 2 to 3 hours every day due to lack of the supply capacity.
14. The old urban area in Hunjiang is in a football shape mainly along the south side of the Hun River. In the existing urban area, the water supply network system has been established in the early years of the city development. Due to the poor design standards and low water consumption demand, the pipe size of the water network tends to be too small to meet current urban demand. Most of the pipe networks are made from smaller pipe size with the pipe diameter at about 75 mm. The city has expanded towards both northwards and southwards in recent years. The new urban area has been established in the north side of Hunjiang River and the south side of the railroad line, namely Jiangbei and Tienan areas, respectively. In the newly developed urban area, the water supply network has not been fully developed yet.
15. As described above, there are serious problems for water supply in Baishan urban area. First of all, the current water supply sources are inadequate and polluted. The existing water
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supply source cannot meet the current urban development needs. Secondly, the equipment of the current water supply plant is outdated and cannot meet the current water supply quality standards. Thirdly, the current water supply distribution piping network is severely aged and the networks in Jiangbei and Tianan are not fully developed yet.
16. For the municipal solid waste management (MSWM), Baishan adopts a very similar way of handling MSWM to that in most cities in China. The urban residents dispose the trash to the designated garbage collection stations, which will be collected and transported to the city garbage transfer stations by small garbage carts, and the trash in the transfer stations will be hauled by big garbage trucks to the landfill site for final disposal. There is no any sorting, recycling, reducing or reusing for the municipal solid waste. In Baishan, currently there are 19 garbage collection stations without compressing capacity. Only 15 of them are in operation. The stations were built between 1995 and 2006 with very old technology. There is no sorting or compressing and the garbage transport is not using enclosed transporting containers. The situation of secondary pollution due to collection and transport is quite serious. The garbage collected is transported to the landfill site for sanitary landfill. The existing garbage landfill is located about 5 km northwest of Hunjiang District. The site was built in 2005 with a treatment capacity of 350 tons/day. Due to the low design standards and poor construction quality, the site has a serious pollution problem to the underground water system, and cannot be used until it is retrofitted. At the present time, the garbage is collected and transported to an abandoned landfill site, Nanshan Landfill. A new sanitary landfill site is urgently needed to treat the municipal solid waste.
17. The proposed subproject components will provide the much needed water supply and municipal solid waste treatment facilities, improve the drinking water quality to meet the current national standards, improve the urban environment by providing better solid waste management system, and improve the living conditions in Baishan urban area. The rationale and justifications for the subcomponent include:
(i) Improve urban environment and living conditions – The subproject will improve the urban environment and urban living condition by improving the municipal solid waste management system and providing reliable and safe water supply. (ii) New and upgraded municipal services for urbanization – The subproject will provide new municipal services to the new urban areas in Jiangbei and Tienan to meet the rapid urbanization needs. (iii) Provide reliable water supply for urban residents – There is only a single water supply source for Baishan urban area due to the pollution of other underground water sources. The existing water supply is not reliable due to equipment aging and limited supply capacity. The proposed component will build the new water transmission lines from the new reservoir to both Hunjiang and Jiangyuan districts to supply the reliable and safe water. (iv) Improve drinking water quality – The water quality of the existing water supply is deteriorating and sometimes does not meet the national water supply quality standards due to the inadequate protection of the exiting water source and the aging of the equipment. The proposed component will use the water from a new well protected water source. (v) Upgrade the existing water supply piping network – The existing water distribution piping network in the existing urban area is outdated with too small pipe sizes. The network does not have the adequate water supply capacity for the rapid urban development needs. The proposed component will upgrade the existing water distribution network and extend the service area to new urban areas.
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(vi) Operation and maintenance improvement – the operation and maintenance of the current water supply system in PRC is in general at a pretty primitive level. The common problems include very high nonrevenue water (NRW) loss, high energy consumption in operation, unsafe and substandard drinking water, and high operation cost. The subproject will develop a capacity development program based on the best practice in the developed countries and to improve the operation and maintenance of the water supply system. (vii) Provide an integrated municipal solid management system – The existing municipal solid waste handling method is relatively primitive, with almost no sorting, recycling, and reusing. The subproject component will introduce the 3R based integrated municipal solid waste management method based on the best international practices, i.e. reduce, reuse and recycle, to improve the current practice in collection, transportation, and disposal. (viii) MSW sorting facility – the MSW subcomponent will build a solid waste sorting facility in conjunction to the new sanitary landfill construction, sort and separate the MSW into kitchen and organic waste for composting, plastic and others usable items for recycling, hazard items for safe disposal and the no usable items for final disposal in the sanitary landfill. (ix) Two trash bin system for recycling – the two trash bin system for recycle and non- recycle solid wastes will be incorporated in the proposed ISWM to promote recycling and reduce the MSW. (x) Provide the much needed sanitary landfill site – There is no proper municipal solid waste landfill site for Baishan. The subproject component will provide the much needed sanitary landfill site meeting current design standards so that the municipal solid waste can be treated properly with minimum impact to the environment. (xi) Improve municipal solid waste collection and transport – Currently, the municipal solid waste (garbage) is collected and hauled to the garbage collection stations, and loaded to the garbage trucks for transport and disposal at the landfill site. The secondary pollution from the collection and transport is quite bad and the transport cost is relatively high due to the lack of compressing facility. The subproject component will improve the existing garbage collection station, add a compressing facility, and introduce the enclosed garbage transport facilities to improve the garbage management system.
C. BAICHENG CITY 18. Baicheng is located in the northwestern Jilin on the western part of Nenjiang Plain at altitudes 121o00’38” - 124o22’00” and latitude 44o13’57” – 46o18’00”. It is bordered with Songyuan City in the south and east, Inner Mongolia in the west, and Heilongjiang in the north. The territory of the city is about 230 km in north-south direction and 211 km in the east-west direction with a total area of 25,685 km2. It is the connection point among Jilin, Inner Mongolia, and Heilongjiang Provinces. The northwestern part is at the extension of the Large Xinganling Mountain with the elevation at about 300-663 m, the northeastern and southern parts are plain area with the elevation at about 130-140 m. The climate condition is categorized as the continent monsoon climate with cold winters and hot rainy summers. The average annual precipitation is about 430 mm. The average non-frost period is about 134 days. There are eight major river systems, including Nen River, Taor River, Huolin River, Erlongtao Riaver, Jiaoliu River, Huerda River, Wenniugechi River, and Gemute River, with well-developed water basin systems. Under the jurisdiction of Baicheng, there are two districts — Taonan and Taobei, two counties — Tongyu and Zhenfen, and two cities, namely Taonan and Daan Cities. In 2011, the total population is 2.03 million, ranked 8th in Jilin for all 77 cities/districts/counties. The
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p ercentage of the agricultural population was 60.1%. The total GDP was CNY55.4 billion, ranked 7th among all 49 cities/counties and the GDP per capita was CNY27,347, ranked 33rd. The disposable income for the urban resident was CNY17,814, ranked as the last among all nine prefecture or large cities.
C.1 Natural Conditions 19. Baicheng is located at about 380 km northwest of Chanchun in the western part of Nen River Plain. The northwestern part is the extension of Large Xing’an Mountain, with low mountains and hills, and the southeastern part is typically a plain formation. The river system is well developed in the area. There are eight major rivers, including Nen, Taor, Huolin, Erlongtao, Jiaoliu, Hurda, Wenniugechi, and Dunmute, and a lots of lakes. The total water surface area is about 3,029 km2, accounted for about 12.5% of the total area. The average flow amount for Taor River is 1.3 billion m3. The climate condition is categorized as a continental monsoon climate with the clearly defined four seasons, with long winters and short summers. It is very windy in spring, hot and rainy in summer. Most of the precipitations occur in summer from May to September, which is good for farming. There is abundant sunshine and the average sunshine time is over 2,900 hours. The climate condition is summarized in Table 1.3.
Table 1.3 Summary of Climate Condition in Baishan No. Description Data Remark 1 Average Temperature 4.6 oC 2 Highest Temperature 36.5 oC 3 Lowest Temperature -38.1 oC 4 Non-frost Period 134 days 5 Sunshine Time 2890 hr 7 Average Annual Precipitation 430 mm Mainly from May to September 7 Average Relative Moisture 8 Average Wind Velocity 3.7 m/s 9 Primary Wind Direction West 10 Frost Depth 41m -61 c (Source: Consultants)
C.2 Urban Development Master Plan 20. Baicheng is located in the junction among Jilin, Liaoning, Inner Mongolia, and Heilongjiang Provinces. The city has been identified by the United Nations Development Programme (UNDP) as one of the major hub on the fourth Europe-Asia transportation corridor from Russia, Mongolia to the port cities along Pacific Ocean including Japanese Sea in the east and Chinese Bo Sea in the west. The city is planned as an important transportation hub in the west of northeastern China. Baicheng area is a part of the Songnen Plain, extended from Heilongjiang Province in the northeast. The Songnen Plain is one of the nine agricultural production bases in China, which include Sanjiang Plain, Songnen Plain, Jianghuai Plan, Tai Lake Plain, Poyang Lake Plain, Jianghan Plain, Dongting Lake Plain, Chengdu Plain and Zhu River Delta as shown in Figure 1.12. The agricultural products and food processing in Baicheng are well developed and they are the major local economic supporting industries. In Jilin, Baicheng has been identified as the major production base in the west for energy, agriculture, agricultural product processing, as well as the logistics center, ecology and environmental protection center, and tourism center.
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Figure 1.12 Nine (9) Major Agricultural Production Bases in PRC
21. In accordance with the Baicheng development planning, the regional economic development will emphasize on major city and town development with the economic development corridors linking these major cities/towns. As in Figure 1.13 for the Baicheng economic development planning, the major city/town development will concentrate on: i) one major urban center – Baicheng urban center; ii) four secondary cities – Taonan City, Daan City, Zhenfen Town, and Tongyu Town; and iii) 10 major towns – Pingan, Lingxia, Pingtai, Tantu, Datun, Zhanyu, Wanbao, Anguang, Liangjiazi, and Sheli. In addition to these major city and twon development, three (3) economic development corridors are planned: i) first major corridor along National Route 302 connecting Da’an, Baicheng and Wulanhot in Inner Mongolia; ii) second major corridor along Provincial Route 207 linking Tongyu, Baicheng and Tailai in Heilongjiang Province, and iii) the minor corridor along Provincial Route 301 linking Gaoliban in Inner Mongolia, Tongyu and Qianan in Songyuan City. The main functions for each major city/town have been identified as the following:
• Baicheng Urban Center – the center for administration, economic development and transportation. The city will also serve as the Industrial development center for agricultural products, automobile parts, pharmaceutical, construction materials, energy, and tourism development • Da’an City – an industrial city for petrochemical, agricultural products and logistics • Taonan City – an industrial city for agricultural products, biomedical and pharmaceutical, textile and clothing, green energy, logistics • Zhenlai Town – an industrial tow for machinary and electronics, food processing, pharmaceutical, construction materials, and agricultural products • Tongyu Town – agricultural products, wind mill power generation, and tourism development
22. The proposed subproject component involves the construction of new roads in the western and southern urban areas which are the new urban areas under construction for the last few years, and it is also where the municipal government is located. The urban master plan for Baicheng is shown in Figure 1.14.
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Figure 1.13 Baicheng Development Plan
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Figure 1.14 Baicheng Urban Master Plan
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23. According to Baicheng’s latest draft master plan, the city will be formed by five districts. They are the Old City District (OCD), Economic Development District (EDD), New Eco-city District (NED), Industrial Park District (IPD) and Taobei Economic Development District (TEDD). The five districts are shown in Figure 1.15. The OCD is a well developed urban area with high density of residents and congested traffic, the northern and eastern parts of the city (TEDD and IPD) are mainly for the industrial development, and the southern and western parts (EDD & NED) are mainly for residential and commercial development. In EDD and NED, the constructions of some residential and commercial communities have been almost completed, but the urban roads and municipal services are yet to be constructed. The proposed urban infrastructure component will supplement the roads and municipal services that have been completed and help to form the urban road network and municipal services so that the new urban area can be functional properly.
Figure 1.15 Five Districts in Baicheng Urban Area
24. The subproject in Baicheng will involve the construction and upgrade of urban roads and municipal service facilities and the municipal solid waste management. In connection to the proposed project components, the development criteria defined in the urban development master plan is summarized in Table 1.4.
Table 1.4 Summary of City Master Plan Development Criteria
No Description Criteria/Target Remark
1 Population Projection: 2015 2.07 million 2020 2.10 million 2 Urbanization Rate:
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2015 57% 2020 61% 2030 74% 3 Baicheng Urban Center Population 564,000 Projection (2020) 4 Baicheng City Urban Area (2020) 68 km2 5 Water Supply Standard (2020) 2015 400 L/person.day 2020 480 L/person.day 6 Water usage projection: 2015 160,000 m3 2020 230,000 m3 2030 270,000 m3 7 Baicheng Heating Area/Coverage Rate 31.4 million m2 (2030) /92% 8 Urban Roads (2030): Total road area 12.7 million m2 Urban road (%) 18.5% Average road area/person 22.1 m2/person Urban road density 3.26 km/km2 9 Wastewater Treatment Plant Capacity/Coverage Rate: 2015 79,000 t/day/80% 2020 130,000 t/day/85% 2030 162,000 t/day/90% 10 Domestic Solid Waste Projection (tons) and Treatment Rate: 2015 375 tons/85% 2020 509 tons/100% 2030 564 tons/100% (Source: Consultants)
C.3 Subproject Components 25. There are two subproject components in Baicheng: i) urban road network development and the associated utilities of water supply, sanitary sewer, stormwater drainage, power supply, street lighting, landscaping, etc. in the new urban areas in south and west of the city; ii) integrated municipal solid management including garbage collection, transport and disposal.
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C.4 Subproject Rationale and Justification 26. Baicheng is located at the conjunction of four provinces/autonomous region of Jilin, Liaoning, Heilongjiang, and Inner Mongolia. It has been identified as one of the transport and logistical centers in the northeast PRC as well as the Europe-Asia continent. Baicheng is located in the western end of Songnen Plain, which is one of the major agricultural production bases in PRC, with a lot of agricultural production related industries, especially for various grains and beans productions. There are lots of agricultural processing related businesses and industries around the city. Additionally, the city is also an important industrial base in Jilin for renewable energy, automobile parts manufacturing, textiles and clothing, etc. Due to the rapid urbanization process, the exiting urban area at the center of Baicheng City cannot meet the urban development needs. A new urban area is required to facilitate the fast urban development. In order to meet the economic development needs and according to the city development master plan, the Baicheng Municipal Government (BMG) has decided to expand the urban area in south and west directions with the establishment of the industrial park and Taobei Industrial Park to accommodate the rapid industrial development demands. The proposed subproject will help the BMG to facilitate the local economic development, improve the urban road system to meet transport and logistical development needs, help on agricultural and industrial development, and improve urban environment and urban living condition.
27. According to Baicheng urban development master plan, the western and southern parts of the city will be the new urban center to host the municipal government, as well as the new cultural and residential center. In the past several years, the BMG has invested and started the construction of the new western and southern urban areas with some of the new urban roads and municipal facilities completed. However, the urban road network has not been completed with the missing links and sections of the uncompleted urban roads. The existing urban roads cannot be functional properly. The current urban road network was developed based on the government approved urban transportation master plan, which is a standard practice in all cities in PRC. The municipal government would engage an urban planning design institute to help the city developing the city development master plan covering development strategy, urban development planning, land use, urban road and bridge, water supply, sanitary sewer, power supply, stormwater drainage, public transport, street lighting, etc. The planning period is usually for 20 years. The developed master plan then will be submitted to the relevant government authority and people’s congress for review and approval. One the master plan is approved, it will be used as the governing document to control the urban development for the prolong period of time. The biggest disadvantage of this master planning system is that the master plan is a static document, which may be approved over 10 years earlier, and will not reflect the actual urban development needs at the present time. Also, the design concepts at the time of the development may not be valid any more at the present time due to the rapid development of economy, urbanization, new technology, etc. Ideally, as it is a standard practice in most of the developed countries, the city master plan should be a live document to be updated from time to time based on the adjusted city short-term and long-term development goals and the actual development of the city. It is one of the objectives of this project to review and improve the urban road planning and the design. The other important issue for urbanization is to develop a people-centered integrated urban transport system consisted of motorized traffic, non- motorized traffic (NMT), pedestrian and bicycle traffic, public bus, subway and railroad traffic, etc. with the emphasis on developing pedestrian, bicycle and public transportation system, especially for the small and medium size cities. One of the very painful lessons learned from the PRC rapid urbanization in the past 20 or more years is the negligence of developing an effective pedestrian/bicycle and public transport, resulting in very bad traffic congestion, heavy air pollution, and noise in many major cities in PRC. The project will promote people-centered urban transport system to provide a more environmentally friendly and resident friendly urban transport system.
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28. For the municipal solid waste management system in Baicheng, the municipal government adopts a similar MSW handling method like most cities in PRC. There is no sorting, reusing, recycling, and compressing for the MSW. Normally the residents take out the trash and place it in the garbage containers in the designated areas. The municipal government service crews collect the trash from these containers and transport it to the city garbage transfer stations using small carts. When the garbage in the transfer stations accumulates to a certain amount, it will be transported by large garbage trucks to the city landfill sites outside of the cities for sanitary disposal. In PRC, the sanitary disposal has become the standard practice for most of the garbage landfill sites as required by the national regulation. The sanitary landfill sites are usually equipped with leachate treatment faculty to treat the laechate generated from the landfill site. In Baicheng, there are five garbage transfer stations and four of them are in operation and one is still under construction. There are two garbage landfill sites in south of the city with one in operation and the other one under construction. The one in operation has an area of 100,000 m2 and it was built in 2006. The daily handling capacity is 500 tons/day and the designed service life was 8 years. The actual daily handling capacity is 420 tons/day and the remaining service life is about two years. The new landfill site is located next to the existing landfill site in the north. The construction of the landfill site has been completed and it can be put in service any time. The area of the new landfill is 16 ha, the total landfill capacity is 2.16 million m3, and the daily handling capacity is 450 tons/day. The design service life is 12 years.
29. The proposed subproject components will provide the much needed urban roads and the associated municipal service facilities in the new south and west urban areas and improve the municipal solid waste management system. The main focus of the project is to improve the road network, promote pedestrian/bicycle and public transport oriented urban transport, improve the urban environment by providing better solid waste management system, and improve the living conditions in Baicheng urban area. The rationale and justifications for the subcomponent include:
(i) Improve urban environment and living condition – The subproject will improve the urban environment and urban living condition by improving the municipal solid waste management, providing new urban infrastructure and municipal services, introducing the people centered urban transport system. (ii) New and upgraded urban infrastructures and municipal service for urbanization – The existing municipal service could not meet the rapid urban development demands. The proposed components will facilitate the fast urban development needs in the south and west new urban areas. (iii) Improve urban road network – The proposed urban road component will improve the existing urban road network and provide the missing links so that the road network will function more properly to facilitate the good transport and logistics development needs. (iv) Transportation hub development – the city is an importation transportation center in northern Jilin and it is also a key connection point in one of the Europe – Asia transportation corridors connecting Russia and Mongolia to the port cities along the Pacific Ocean. The subproject will help to establish the transportation hub in the area. (v) New urban infrastructures to facilitate the industrial development – Baicheng is a new industrial base for agricultural products, auto part manufacturing, and textiles and clothing, with new businesses and enterprises moving in gradually. The updated urban infrastructures will improve the production and living condition for new businesses and attract more investment. (vi) Promote pedestrian/bicycle and public transport oriented urban transport – The urban road component will promote the people centered urban transport system with
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an emphasis on developing pedestrian/bicycle and public transport system to provide a people and environmentally friendly urban transport system, reducing air pollution and traffic congestion. (vii) Provide an integrated municipal solid management system – The existing municipal solid waste handling method is relatively primitive, with almost no sorting, recycling, and reusing. The subproject component will introduce the 3R based integrated municipal solid waste management method based on the best international practices, i.e. reduce, reuse and recycle, to improve the current practice in collection, transportation, and disposal. (viii) MSW sorting facility – the MSW subcomponent will build a solid waste sorting facility in conjunction to the new sanitary landfill construction, sort and separate the MSW into kitchen and organic waste for composting, plastic and others usable items for recycling, hazardous items for safe disposal and the non-usable items for final disposal in the sanitary landfill. (ix) Two trash bin system for recycling – the two trash bin system for recycle and non- recycle solid wastes will be incorporated in the proposed ISWM to promote recycling and reduce the MSW.
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II. THE PROJECT
A. RATIONALE 30. The project integrated municipal solid waste management components in Baicheng and Baishan will introduce 3R principle based municipal solid waste management system with the introduction of solid waste sorting at the source for recycling as well as kitchen and non-kitchen waste, establish the sorting and composting centers to reuse portion of the kitchen solid waste for composting, procure construction waste recycling machine at the MSW sorting centers to recycle the construction waste for reuse, construct or rehabilitate the municipal solid waste transfer stations and upgrade solid waste collection and transport vehicles to improve the effectiveness and efficiency of the city solid waste management system, and upgrade the city cleaning and maintenance fleet to improve the city environmental and health conditions.
31. The project water supply component in Baishan will release the water supply shortage pressure for the urban resident to ensure 24 hour water supply, provide reliable water source for both Hunjiang and Jiangyuan district residents to replace the current polluted and unstable water supply sources, upgrade the existing aged and substandard water supply distribution network to increase the water supply coverage and reduce nonrevenue water (NRW) loss, introduce water safety plan to improve water supply safety during operation, and implement water supply monitoring and control system (SCADA) to improve energy efficiency.
32. The project urban road component in Baicheng will support the urban development needs as a regional transportation hub and the industrial production center, provide the missing links of urban roads and the municipal services to the residential and commercial developments which are completed or under construction in the western and southern parts of the city, introduce the people centered urban transport system with emphasis on developing pedestrian and bicycle traffic and public transportation, and construct the bus priority lanes on the new urban roads.
33. The project institutional strengthening and capacity development component will provide support to the project implementation, capacity development on integrated municipal solid waste management system to guide the implementation of the 3R principle based solid waste management system, capacity development on nonrevenue water loss reduction by introducing advanced leaking detection technology and equipment and institutional strengthening and training on the management staff, and capacity development on urban transport for the implementation of pedestrian and bicycle and public transportation oriented urban transport system.
B. IMPACT AND OUTCOME
34. The project impact is the improved environment and living conditions in the urban areas of Baishan and Baicheng cities. The project outcome is the improved environmentally friendly urban infrastructures and municipal services.
C. OUTPUT 35. There are five project outputs as shown in Table 2.1, including: i) improved urban roads, bridges, municipal services in Baicheng; ii) integrated solid waste management system (ISWM) in Baicheng; iii) integrated solid waste management system in Baishan; iv) improved water supply management in Baishan, and v) capacity development and institutional arrangement.
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(i) Improved Urban Roads, Bridges, and Municipal Services in Baicheng – The component will improve the urban infrastructures and municipal services in the south and west urban areas in the city. The component includes: i) construction of nine urban roads with a total length of 32.4 km; ii) construction of two 20 m span bridges and one twin cell railroad underpass; iii) installation of a 36.9 km water supply piping network; iv) installation of a 63.2 km sanitary sewer piping network, including a pump station; v) installation of a 59.9 km stormwater piping network with two pump stations; vi) installation of a 33.0 km 10 KV power line; vii) installation of a 33.0 km communication line; viii) installation of a 28.2 km primary heating pipe network; viii) installation of 1582 street lights; ix) installation of traffic control and traffic management system; x) construction of landscaping and other associated facilities; and xi) provision of a people centered urban transport system with emphasis on developing pedestrian/bicycle and public transport.
(ii) Integrated Solid Waste Management in Baicheng - The ISWM subcomponent will include: i) construction of a 50 ton/day MSW sorting center; ii) establishment of a 20 ton/day composting facility; iii) procurement of one construction material recycling machine; iv) construction of 12 new MSW transfer stations; v) upgrading MSW handling equipment including 12 self loading trucks, 30 movable MSW compaction containers, 12 MSW compaction trucks, 4 kitchen garbage collection trucks, and 50 MSW carts; vi) upgrading city cleaning and maintenance vehicles and equipment including 36 street cleaning and sweeping vehicles, 20 snow cleaning trucks, 10 water spray trucks, 10 sewer suction trucks and 5 sewer cleaning trucks, 10 construction waste trucks, MSW carts, trash and recycling bins, etc.
(iii) Integrated Solid Waste Management (ISWM) System in Baishan – The component will improve and upgrade the existing municipal solid waste (MSW) management systems in Baishan by introducing the concept of the ISWM through reducing, reusing and recycling the MSW to improve the urban environment. The component include: i) construction of a new MSW sanitary landfill with a daily capacity of 330 ton/day; ii) construction of a 30 ton/day MSW sorting plant; iii) establishment of a 20 ton/day composting site; iv) procurement of one construction waste recycling machine; v) upgrading 15 MSW transfer stations; vi) upgrading MSW handling equipment including 15 self loading trucks, 30 MSW compaction containers, 2 MSW compaction trucks, 4 kitchen garbage collection trucks, and 15 MSW carts; and v) upgrading city cleaning vehicles and equipment including 4 sewer suction trucks, 15 street sweeping vehicles, 18 snow cleaning trucks, two moveable toilets, sewer pipe cleaning pipe, trash collection carts and tricycles, trash and recycle bins.
(iv) Improved Water Supply Management in Baishan – The component will improve the water supply system in Baishan with safe and reliable drinking water and to improve the operating and maintenance to reduce non-revenue water (NRW) loss. The component includes: i) construction of a 6.8 km water transmission line to Jiangyuan supplying water to an existing water treatment plant; ii) construction of a 21.1 km water transmission line to Hunjiang new water treatment plant; iii) construction of a new 50,000 tons/day water treatment plant with SCADA system; iv) Upgrade 11.1 km existing water supply piping network; v) construction of 44.2 km new water supply piping network; vi) construction of 4 pump stations; vii) leaking detection equipment; viii) manholes, valves, flow meters and other associated facilities; and ix) improve management, operation and maintenance of the existing water supply management system to reduce NRW loss and better service.
(v) Improved Capacity and Institutional Arrangement – Provide support for project implementation on project management, institutional strengthening, capacity
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development and training. Capacity development on technical support, management support, financial management support, and other tasks to ensure the smooth implementation of all project components, including the soft components.
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Table 2.1 Summary of Project Components Type/ Length/ No Description Classification Unit Capacity Remark 1 Improved Urban Infrastructures in Baicheng A Urban Roads and Bridges 1 Third Ring Road Urban Major m 11,304 20 m RC Void Slab Bridge (W = 24 m twin bridge) Railroad Underpass (two twin cell culverts: 8.5+11.5 m ) 2 Xiangyang Street (w/bus priority lanes) Urban Major m 4,505 3 Xinhua Xi Road (w/bus priority lanes) Urban Major m 2,724 4 Shengli Road Urban Major m 2,068 5 Xingfu Bei Street Urban Major m 1,330 6 Nanyi Street Secondary m 1,024 7 Taoerhe Road Secondary m 2,657 20 m RC Void Slab Bridge (W = 30 m) 8 Chunyang Road Branch m 3,881 9 Xinggong Road Branch m 2,927 subtotal = 32,420 B Municipal Service Facilities Water Supply m 36,932 Sanitary Sewer m 63,229 No. 1 Sewer Pump Station ((Xingfu Bei Street/Third Rind Road, Capacity = 184.4 L/S) Stormwater m 59,890 No. 1 Stormwater Pump Station (Xinggong Road/G302, Capacity = 10479 L/S) No. 2 Stormwater Pump Station (at existing pump station site, Capacity = 11000 L/S) Power Supply 10 KV km 33 Communication km 33 Street Lighting ea 1,582 District Heating Primary Piping Network m 28,194 Traffic Control and Traffic Management set 1 2 Integrated Municipal Solid Waste Management in Baicheng a. Municipal Solid Waste Sorting and Composting Center ton/day 30 20 t cmpst
b. Municipal Solid Waste Transfer Station 28 ton/day ea 12 New c. Urban Cleaning Equipment, MSW Container & Trash Bin set 1 d. Urban Infrastructure Maintenance Equipment set 1
3 Integrated Solid Waste Managenment in Baishan a. Municipal Solid Waste Sanitary Landfill t/d 330 b. Municipal Solid Waste Sorting Center t/d 50 c. Municipal Solid Waste Collection Station ea 15 Upgrading d. Urban Cleaning Equipment, MSW Container & Trash Bin
4 Improved Water Supply Management in Baishan a. Water Transmission Lines to Hunjiang and Jiangyuan Jiangyuan Water Transmission Line 30,000 t/d m 6,800 Hunjiang Water Transmission Line 50,000 t/d m 21,140 b. Water Treatment Plant for Hunjiang 50,000 t/d New c. Water Distribution Network in Hunjiang Upgrading existing water piping network m 11,138 New water piping network m 44,240 5 Improved Capacity & Institutional Arrangement A Project implementation support B Institutional Capacity Development MSW = municipal solid waste; cmpst = composting (Source: PPTA Consultant)
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D. SPECIAL FEATURES 36. The two project cities are prefecture cities in the relative remote locations in Jilin Province. The urban development is slow and behind the other more developed cities in the central and coastal areas. Due to the fast economic development, the municipal governments face the problems of inadequate urban infrastructures and municipal services, poor municipal solid waste management system, bad urban traffic safety and traffic congestion, out of dated urban planning and traffic management, etc. In order to improve the living condition and the existing city environment and health condition and maintain a sustainable urban development, in addition to the construction of new urban infrastructures, the proposed project will bring new special features to address the existing urban development problems in urban living condition improvements with emphasis on innovative concepts, technologies, and capacity development. The following special features are included in the project:
(a) Establishment of Municipal Solid Waste Sorting Facilities
37. The municipal solid waste (MSW) management system in PRC is in general still at a relatively primitive stage. In most cities, the MSW is simply picked up and transported to the landfills for disposal. There is almost no recycle and reuse program for MSW treatment. This practice results in large amount of MSW to be disposed in the landfills and requires more and more sites for the disposal. The proposed project uses 3Rs concepts for the improvement of the current MSW management system. One of the demonstration features is to build a MSW sorting facility in each of the project city to sort and separate the MSW into different groups for recycle and reuse before disposal. The sorting facility will be built near the city landfill site. The MSW received at the sorting plant will be separated into recycle items such as paper, cardboard, plastic, metal for recycle, kitchen garbage and organic portion for composting, hazardous waste for special disposal, and the remaining portion for disposal in the landfill. It is estimated that about 40% of the MSW will be recycled and reused. The establishment of the sorting facilities will effectively reduce the MSW amount to be disposed in the landfill and increase the service life of the landfill sites.
(b) Establishment of Composting Facilities
38. In conjunction of the MSW sorting facility, a composting facility will be built in each of the project city. The organic portion of the MSW separated by the sorting plant will be placed in the composting facility to produce organic fertilizer to be used for city landscaping. The aerobic composting technology will be used in the composting plant due to its fast processing. The final product of the organic fertilizer will be used by the municipal government city maintenance crew for urban landscaping work, which will save money for the government maintenance cost.
(c) Capacity Development for Reducing NRW Loss
39. The high non-revenue water (NRW) loss is a common problem in the water supply industry in PRC, especially in the less developed area and cities. The national average NRW loss is at about 30% to 40%. For the project city of Baishan, the situation is even worse. Based on the assessment of the existing water supply system, the estimated NRW loss is at about 65%. The high NRW loss is contributed by leakage from the aged water supply infrastructures, unbilled usage, inaccurate metering, etc. The project will develop a capacity development program to include institutional strengthening, management staff training, advanced technology for leaking detection, water supply monitoring system, and public awareness for saving water to improve the NRW loss for the new and existing water supply system.
(d) Stormwater Management and Reuse
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40. Similar to most cities in PRC, the rain water in the urban area, the urban runoff, is collected through the scuppers and stormwater piping network and discharged into the nearby rivers or ditches directly. This is the standard practice in China, and it is also one of the main reasons of urban and river flooding in many cities due to the rapid urban development and uncontrolled direct discharge. The urban development will increase the impermeable surface area in the city and result in the significant increase of the stormwater amount discharged into the urban drainage system and the river system in the downstream. Without the proper stormwater management, this increased stormwater could result in the flooding in the urban area. The subcomponent will introduce the application of stormwater infiltration, collection and reuse to improve the stormwater management practice and help to maintain the sustainable urban development. A special stormwater collection, storage and infiltration system located under the road landscaping strip will be introduced and installed as a demonstration feature for stormwater management. The system consists of a grass filtering area to remove runoff pollutants, a granular infiltration and underground storage unit for stormwater infiltration and detention, and a connection to the urban stormwater piping network. The urban runoff will first run through the grass and vegetation area by filtering out the urban pollutant from the streets, flow into the underground infiltration and storage unit for water recharging the groundwater and water detention, and the excessive runoff will overflow runoff will be discharged to the urban stormwater piping network. The stored stormwater could be used later for urban landscaping watering use. The system will reduce the direct discharge of runoff to the river system and the flood risk in the downstream, and it could also help the sustainable urban development by reuse and recycle the stormwater.
(e) Pubic Bus Priority Lanes
41. The public transportation system is an importation component in modern urban transportation. In according to PRC 12th FYP, promoting public transportation is one of the important urban development strategies. Baicheng is a medium size city with a big percentage of the urban residents using public bus system as daily transport means. It is importation to help the municipal government to improve the existing public transport system. The proposed project will introduce and build the city first public bus priority lane on the new urban road network system as a demonstration feature to promote public transport system. The new public bus priority lane system will illustrate the effectiveness of the public bus system and will help the municipal government to implement more public bus priority lanes and other public transport systems.
(f) ITS Traffic Management and Control
42. In comparison to other more developed cities, there are very limited ITS traffic management and traffic control facilities in the project cities. In addition to the regular traffic lights, there is no advanced traffic control system such as traffic monitoring system, traffic condition display, red light violation monitoring system, etc. In order to improve the urban traffic safety and traffic congestion condition, the project will include and ITS traffic management and traffic control subcomponent to help improving the traffic condition in the existing urban areas. The subcomponent will include traffic monitoring system, red light and speeding violation monitoring system, real time traffic condition displays, etc.
E. PROJECT INVESTMENT AND FINANCING PLAN 43. The project is estimated to cost $401.5 million (Table 2.2). Loan proceeds will be disbursed according to the Loan Disbursement Handbook (2012, as amended from time to time) of the Asian Development Bank (ADB), and subject to the provisions of the Loan Agreement. Financial costs include capitalized interest and commitment charges. Based on the draft FSR, the overall estimated project cost is $401.5 million. ADB will finance $150 million, or 37.4% of
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total investment. For Baishan subproject, including both water supply and ISWM components, the cost is $127.7 million, and ADB will finance $50 million or 39.2% of the subproject cost. For Baicheng subproject of urban roads and municipal services, the total cost is $274.9 million, and ADB will finance $100.0 million or 36.4% of the subproject cost. The cost estimates and the proposed financing plan are shown in Table 2.2 and Table 2.3, respectively.
Table 2.2 Project Investment Plan ($ millions)
Item Amounta Share of (CNY million) ($ million) Total (%) A. Ba se Costb 1. Baicheng Municipal Services 1,407.6 234.59 60.5% a. Urban infrastructures 1,213.7 202.28 52.1% b. Municipal solid waste management 193.9 32.32 8.3% 2. Baishan Water Supply 381.3 63.55 16.4% 3. Baishan Municipal Solid Waste 188.0 31.33 8.1% 4. Capacity Development and Institutional Strengthening 18.0 3.00 0.8% Subtotal (A) 1,994.8 332.47 85.7% B. Contingenciesc 287.6 47.93 12.4% C. Financing Charges During Implementationd 45.6 7.60 2.0% Total (A+B+C) 2,328.0 388.00 100.0% a Includes taxes and duties to be financed from ADB loan resources of: $16.57 million. b In mid 2013 prices. c Physical contingencies computed at 5% for civil works; and 5% for field research and development, training, surveys, and studies. Price contingences computed at 6.03% on foreign exchange costs and 9.37% on local currency cost; includes provisions for potential exchange rate fluctuation under the assumption of a purchasing power party exchange rate. d Includes interest and commitment charges. Interest during construction for ADB loan(s) has been computed at the 5- year forward London interbank offered rate plus a spread of 0.5% and additional 0.2% surcharge for ALM premium Commitment charges for an ADB loan are 0.15% per year to be charged on the undisbursed loan amount. Note: Numbers may not add precisely due to rounding.
44. The government has requested a loan of $150.0 million from ADB’s ordinary capital resources to help finance the project. The loan will have a 25-year term including a grace period of 6 years, an annual interest rate determined in accordance with ADB’s London interbank offered rate-based lending facility, a commitment charge of 0.15% per year, and such other terms and conditions set forth in the draft loan and project agreements. The ADB loan will also finance taxes and duties for eligible ADB-financed expenditures, and transportation and insurance costs included in the base cost for ensuring smooth project implementation. The loan will finance 37.4% of the project cost, including civil works, equipment and materials, and institutional strengthening. The government will finance the remaining $251.5 million through counterpart funds from the two project cities (Table 2.3).
45. The Government of the People’s Republic of China is the borrower of the loan and will make the loan available, through the Jilin Provincial Government to the project city governments on the same terms and conditions as those of the ADB loan. The project city governments will assume the foreign exchange and interest variation risks of the ADB loan. The People’s Republic of China, Jilin Provincial Government, and the project city governments have assured ADB that counterpart funding will be provided in a timely manner, including any additional counterpart funding required for any shortfall of funds or cost overruns.
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Table 2.3 Financing Plan ($ millions) Table 2. Financing Plan Amount Share of Source (CNY million) ($ million) Total (%) Asian Development Bank 900.00 150.00 38.66% Baicheng Municipal Government 1,056.75 176.12 45.39% Baishan Municipal Government 371.26 61.88 15.95% Total 2,328.00 388.00 100.00% Note: Numbers may not add precisely due to rounding. Detailed Financing Plan Amount Share of Source (CNY million) ($ million) Total (%) Baicheng Municipal Services Asian Development Bank 600.00 100.00 25.77% Baicheng Municipal Government 1,056.75 176.12 45.39% Baishan Water Supply Asian Development Bank 210.00 35.00 9.02% Baishan Municipal Government 238.67 39.78 10.25% Baishan Municipal Solid Waste Asian Development Bank 90.00 15.00 3.87% Baishan Municipal Government 132.59 22.10 5.70% Total 2,328.00 388.00 100.00% Note: Numbers may not add precisely due to rounding. Source: Asian Development Bank estimates. F. IMPLEMENTATION ARRANGEMENT 46. The executing agency (EA) for the project is Jilin Provincial Government, Baishan Municipal Government is the implementing agency (IA) for Baishan ISWM and water supply components, and Baicheng Municipal Government is the IA for Baicheng urban road and ISWM components.
47. A project leading group (PLG) has been established to provide overall guidance for the project preparation and implementation. The PLG is chaired by the vice governor of Jilin Province with representatives from Jilin Development Reform Commission (JDRC), Jilin Finance Department, Jilin Housing and Urban Construction Department (JHUCD), Baishan and Baicheng Municipal Governments. The PLG will provide overall policy guidance, facilitate interagency coordination, and resolve any institutional problems affecting project preparation and implementation. A project management office (PMO) has been established at Jilin Housing and Urban Construction Department to provide overall guidance, supervision, coordination, and management of project preparation and implementation.
48. In Baishan City, a city level PLG has been established for overall guidance and inter- agency coordination. It is headed by the executive vice mayor with the members of two vice mayors and the director or deputy director from the Water Affairs Bureau (WAB), Housing and Urban Construction Bureau (HUCB), Development Reform Commission (DRC), and Finance Bureau (FB). An IA PMO has been established under the Baishan HUCB, headed by the director of the bureau. There are two project implementing units (PIUs). One is Baishan Xibeicha Qiyuan Hydropower Co. Ltd responsible for preparing and implementing the water supply subproject. The other is Baishan Solid Waste Disposal Co. Ltd. responsible for preparing and implementing the ISWM subproject. There are 17 full time employee in Baishan Xibeicha Qiyuan Hydropower Co Ltd and 20 full time employees in Baishan Solid Waste Co Ltd. After the construction is completed, the water supply facilities including the water transmission lines, water treatment plant and water distribution network will be transferred to Baishan Water
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Group Co. for operation and maintenance (O&M), while the solid waste disposal facilities including MSW collection, transfer stations, composting facility and sanitary landfill will be transferred to Baishan Environmental Sanitation Management Department for O&M.
49. In Baicheng City, a city level PLG has been established for overall guidance and inter- agency coordination. It is headed by the executive vice mayor with the members of two vice mayors and the heads of the municipal DRC, HUCB, FB, Supervisory Bureau, Land Resources Bureau, Environment Protection Bureau (EPB), Forestry Bureau, Auditing Bureau, Planning Bureau, and Financing Office, Baicheng Industrial Park, Management Committee of Baicheng Economic Development Zone (BEDZ), and Command Office for New District Construction. An IA PMO has been established under the Management Committee of BEDZ. The director of the Management Committee acts as the director the IA PMO. The PIU is BEDZ Investment and Development Co. Ltd., who will be responsible for preparing and implementing the Baicheng urban infrastructure and MSW management subproject. There are 18 full time employees in five units including engineering, contract, accounting, safeguard, and office. After the construction is completed, the composting facility and the sanitary landfill that was completed by domestic funding, will be transferred to Baicheng Municipal Environmental and Sanitary Division for operation and management, while the MSW collection, transfer stations, and transport will be operated and managed by the municipal environmental and sanitation units in each district including Baicheng Economic Development Zone, Baicheng Industrial Park, New Eco-City, Taobei District, and Taobei Industrial Park.
50. The project implementation institutional contractual arrangements are shown in Appendixes D and E.
G. PROJECT APPROVAL AND TIMETABLE 51. For a successful implementation of the project, it is essential to obtain all required approvals and to secure all funding sources identified in the financing plan. It is more critical that the project shall be processed following both domestic and ADB procedures, and the domestic and ADB approvals shall be processed in a synchronized manner.
Domestic Approvals
52. Some ADB approvals can only be processed after domestic approvals such as Preliminary Land Use Application, EIA, FSR, etc. The delay of those domestic actions and approvals may impact the ADB loan processing. The domestic approvals and actions, both approved and to be approved (with target dates), is shown in Table 2.4.
Table 2.4 Timetable for Major Domestic Actions and Approvals Approval No Item Approval Agency Target Date Date Project Identification Document and Feb 2014 1 PDRC Approval 2 Preliminary Land Use Application5 PLR Feb 2014 Environmental Impact Assessments Feb 2014 3 PEPD (EIAs) 4 Feasibility Study Report PDRC Feb 2014 5 Resettlement Plans Local Government Mar 2014 6 Preliminary Design PDRC Apr 2014 7 Construction Plans PDRC Jun 2014 8 Land Acquisition Approval PLR Apr 2014
5 The approval of the Land Use Certificate is required for FSR approval.
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9 Letter of Loan Application PFB Feb 2014 10 Project Financial Application Report NDRC Feb 2014 11 Project Negotiation Approval MOF Apr 2014 12 Loan Negotiation MOF/ADB Jun 2014 13 Bidding Document Preparation IA Apr 2014 14 Bidding Document Approval IA/ADB Jun 2014 15 Solicit Implementation Consultant PMO Jul 2014 16 Construction Begin IA Jul 2014 ( Source: PPTA Consultant)
53. In consideration of the current project status, the consultant recommends the EA/PMO exercise close coordination and supervision over the FSR, EIA, and land use submission and approval processes to ensure the approvals meet the target dates.
Timetable for PPTA and Loan Processing
Table 2.29 Timetable for PPTA and ADB Process
No Milestone Approval Date Target Date 1 Commencement of PPTA Apr 8, 2013 2 Submission of Inception Report May 7, 2013 3 Inception Mission Jun 3-7, 2013 4 Draft EIA Submission Sep 12, 2013 5 Draft CIEE Submission Sep 12, 2013 6 Draft Social Development Action Plan Sep 12, 2013 7 Draft Social and Poverty Impact Report Sep 12, 2013 8 Draft Gender Action Plan Sep 12, 2013 9 Draft SPRSS Sep 12, 2013 10 Draft Resettlement Plan Sep 12, 2013 11 Draft Summary of Resettlement Plans Sep 12, 2013 12 Submission of Interim Report Sep 12, 2013 13 Interim Review Mission Oct 8 - 17, 2013 14 EIA Submission and Posting Jan 6, 2014 15 CIEE Submission and Posting Jan 6, 2014 16 Social Poverty Analysis Report Jan 6, 2014 17 Social Development Action Plan Jan 6, 2014 18 Gender Action Plan Jan 6, 2014 19 Indigenous People Action Plan Jan 6, 2014 20 Resettlement Plans Jan 6, 2014 21 Summary Resettlement Plans Jan 6, 2014 22 SPRSS Jan 6, 2014 23 Submission of Draft Final Report Jan 6, 2014 24 DRY Review/Fact-Finding Mission Jan 15 - 25, 2014 25 Submission of Final Report March 24, 2014 26 Management Review Meeting Mar 2014 27 Board Consideration Mar 2014 28 Loan Negotiations Jun 2014 29 Loan Signing Jul 2014 30 Loan Effectiveness Dec 2014 ( Source: PPTA Consultant)
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III. DUE DILIGENCE
A. TECHNICAL AND ENGINEERING
A.1 Improved Urban Roads, Bridges and Municipal Services in Baicheng a. Urban Roads and Bridges
54. There are nine urban roads, two bridges and one railroad underpass in the subcomponent as shown in Figure 1.2. The roads and bridges are located in the southern and western parts of the city which are the new urban development area. The area has been developed by the municipal government for the last several years and some of the urban road network has already been constructed. The project subcomponent will provide the missing links between the completed urban roads, build new urban roads to provide access to the new residential and commercial developments, and improve the urban road safety and traffic control and traffic management so that the urban road network can be functional properly and to help the urban development. The summary of the urban roads and bridges including the road classification, right-of-way width, design speed, design load and the construction length is shown in Table A1.
Table A1 - Summary of Urban Roads and Bridges
ROW Width Design Speed Design Live No Name Classification (m) (km/h) Load Length (m) 1 Third Ring Road Urban Major 55 50 BZZ-100 11,304 20 m RC Void Slab Bridge (W = 24 m twin bridge) Urban-A Railroad Underpass (two twin cell culverts: 8.5+11.5 m ) 2 Xiangyang Street (w/bus priority lanes) Urban Major 55 50 BZZ-100 4,505 3 Xinhua Xi Road (w/bus priority lanes) Urban Major 55 50 BZZ-100 2,724 4 Shengli Road Urban Major 45 50 BZZ-100 2,068 5 Xingfu Bei Street Urban Major 45 50 BZZ-100 1,330 6 Nanyi Street Secondary 30 40 BZZ-100 1,024 7 Taoerhe Road Secondary 30 40 BZZ-100 2,657 20 m RC Void Slab Bridge (W = 30 m) Urban-A 8 Chunyang Road Branch 35 3,881 9 Xinggong Road Branch 20 30 BZZ-100 2,927 Total = 32,420 RC = reinforced concrete (Source: PPTA Consultants)
55. There are six urban major roads with the right-of-way widths from 45 m to 55 m, two urban secondary roads with the right-of-way width of 30 m, one branch road with the right-of- way width of 35 m and one branch road with the right-of-way of 20 m. There are two 20 m span small bridges on Third Ring Road and Taierhe Road over the tributary of Taoerhe River, and one railroad underpass (twin cell culvert). The detailed road cross sections for each road and the bridges are summarized in Table A2.
56. An urban transport system should be an integrated transportation system consisted of pedestrian and non-motorized traffic (NMT), public transport, subway and mass transit, motor vehicle traffic and associated parking and traffic management system. In PRC, the urban transport development has been mainly focused on constructing more urban roads for vehicles but less attention to public transport, pedestrian and NMT development. As a result, even with more and more urban roads constructed, the traffic congestion as well as the urban air pollution
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has not been improved rather getting worse year by year. Based on this lesson learned, the PRC central government has outlined the urban development strategy to emphasize the public transport, pedestrian and NMT development in the future urban development. In order to promote a people centered urban transport system with focus on developing pedestrian and NMT development and public transport system, the proposed project component will address these issues through alternative study to define the proper road cross sections and implementation of the public bus priority lane on the designate road.
Table A2 - Detailed Road Cross Section for Each Road
Cross Section
R Shldr/ Median L Lane L Shldr/ L NMT L Sdwk Total R Sdwk (m) R NMT (m) Sep (m) R Lane (m) (m) (m) Sep (m) (m) (m) (m) Third Ring Road 2.50 6.00 3.50 11.50 8.00 11.50 3.50 6.00 2.50 55.00 20 m RC Void Slab Bridge (W = 24 m twin b 2.50 6.00 3.50 11.50 8.00 11.50 3.50 6.00 2.50 55.00 Railroad Underpass 2.50 6.00 3.50 11.50 8.00 11.50 3.50 6.00 2.50 55.00 Xiangyang Street (w/bus priority lanes) 3.00 5.50 3.50 11.50 8.00 11.50 3.50 5.50 3.00 55.00 Xinhua Xi Road (w/bus priority lanes) 3.00 5.50 3.50 11.50 8.00 11.50 3.50 5.50 3.00 55.00 Shengli Road 3.00 6.00 2.50 11.00 0.00 11.00 2.50 6.00 3.00 45.00 Xingfu Bei Street 3.00 6.00 2.50 11.00 0.00 11.00 2.50 6.00 3.00 45.00 Nanyi Street 5.00 0.00 2.00 8.00 0.00 8.00 2.00 0.00 5.00 30.00 Taoerhe Road 5.00 0.00 2.00 8.00 0.00 8.00 2.00 0.00 5.00 30.00 20 m RC Void Slab Bridge (W = 30 m) 5.00 2.00 8.00 8.00 2.00 0.00 5.00 30.00 Chunyang Road 3.00 4.00 3.00 7.50 0.00 7.50 3.00 4.00 3.00 35.00 Xinggong Road 5.50 0.00 0.00 4.50 0.00 4.50 0.00 0.00 5.50 20.00
ROW = right-of-way (red line), R = right, L = left, Sdwk = sidewalk, Shldr = shoulder, Sep = separation (Source: PPTA Consultants)
Third Ring Road
57. The road will serve as the main traffic route for circulating traffic and city by pass traffic. The main function of the road is to provide maximum traffic capacity. The selected high design speed of 50 mph is justified. The proposed road cross section with 3 lanes and 1 separated NMT lane in each direction as shown in Table A2 is acceptable to meet the function needs.
Xiangyang Street (with bus priority lanes)
58. Xiangyang Street is an urban major road at about 1 km east and parallel to the west section of the Third Ring Road. The main function of the road is to serve the communities along the road and most traffic will be local, which would not need high design speed in consideration of urban traffic safety. Therefore, it is recommended to reduce the design speed to 40 mph. As shown in Table A2, the road has the same cross section as the Third Ring Road. The road includes a designated bus priority lane in each side of the road for promoting public transportation in the urban area.
Xinhua Xi Road (with bus priority lanes)
59. Xinhua Xi Road is an urban major road in east-west direction intersecting the Third Ring Road and the Xiangyang Road. It is an urban road with the similar function and the same proposed cross section as those of Xiangyang Street. Therefore, the similar recommendations of reduce design speed to 40 kHz is applied, and the road will be designed to include the bus priority lane in each direction.
Shengli Road
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60. Shengli Road is an urban major road at about 1 km south and parallel to the Xinhua Xi Road. The right-of-way width is narrow (45 m) than that of the previous 3 urban major roads (55 m). The main function of the road is to serve the local communities with most of the traffic coming from local residents, businesses and communities. As shown in Table A2, the proposed road cross section includes 3 lanes and one 6 m NMT in each direction. The proposed road cross section is acceptable. Similar to Xinhua Road, it is recommended to reduce the design speed to 40 km/h.
Chunyang Road
61. Chunyang Road is an urban branch road with the right-of-way width of 35 m. The road is an old inter-city road connecting Baicheng and Taonan City with high volume of outside traffic. As the other urban major road network completed, it is expected that most of the outside traffic will use the other wider roads in the network, and the road will become a secondary urban road serving local residents and communities. The proposed road cross section includes two travel lanes and a separated NMT lane as shown in Table A2. The proposed road cross section is acceptable.
Xingfu Bei Street
62. Xingfu Bei Street is an urban major road (45 m right-of-way) connecting to the inter-city highway to Wulanhot in Inner Mongolia. The main function of the road would be to provide access for the outside traffic from the north and west to the center city area. It is part of the city major traffic grids according to the city traffic master plan. Similar to Xiangyang Street, it is recommended that the proposed road design speed shall be reduced from 50 km/h to 40 km/h.
Nanyi Street and Taoerhe Road
63. Nanyi Street and Taoerhe Road are two urban secondary roads with the right-of-way width of 30 m. The design speed is 30 km/h and the road cross section consists of an 8 m travel lanes (2 lanes) and 7 m sidewalk in each direction. The roads will mainly serve the local residents with a lot resident cars. The current cross section does not provide NMT lanes, but the sidewalk is very wide. It is recommended that the cross section is adjusted to provide NMT lane, and the adjustment shall also consider providing street parking space if possible.
Xinggong Road
64. Xinggong Road is an urban branch road with the right-of-way width of 20 m. This road will mainly used by local residents. As shown in Table A2, the proposed road cross section consists of a 4.5 m lane and 5.5 m sidewalk in each direction. There is no NMT lane. It is recommended to increase the travel lane width to provide more space for NMT, and also to consider the inclusion of street parking space.
Bridge Structure
65. There are two small bridges on Third Ring Road and Taoerhe Road and one railroad underpass. Based on the alternative study, the precast prestressed concrete void slab structure is recommended for the two small bridges and double twin cell culvert using jacking in construction method is proposed for the underpass. b. Municipal Service Facilities
66. In conjunction with the new urban road construction, the associated municipal service facilities will be constructed and installed at the same time. The municipal services include water supply, sanitary sewer, stormwater drainage, primary heating pipe network, power supply,
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Jilin Urban Development Project (TA 8172-PRC) Final Report
communication facility, street lighting, traffic management and control, landscaping and other associated facilities.
67. The new water supply piping network will be installed along the new and rehabilitation roads. A total of 36.9 km water supply pipe will be installed with different sizes. The details of the water supply pipes are summarized in Table A3. Based on the alternative study of piping material, it has been determined that for the pipe with the size of 400 mm or smaller, the PE (polyethylene) pipe will be used, while for the pipe with larger diameters, the ductile iron pipe will be used. One of the effective measures to control the NRW loss is the have a system to monitor the actual water flow in different sections of the network so as to locate and identify the spots where the water is leaking or getting loss, and to take the necessary action to stop the water leaking or water loss. The water flow monitoring meters will be installed at the key control points. Table A3 - Summary of Water Supply Pipes Diameter Pipe Length No Name (mm) Material (m) Remark 1 Third Ring Road DN500 DI 2,650 DN600 DI 1,050 DN700 DI 6,700 DN400 PE 3,462 2 Xiangyang Street DN600 DI 870 DN500 DI 3,825 3 Xinhua Xi Road DN400 PE 1,724 DN160 PE 1,000 4 Shengli Road DN500 DI 2,313 5 Chunyang Road DN400 PE 2,400 DN225 PE 1,100 DN315 PE 700 6 Xingfu Bei Street DN315 PE 1,330 7 Nanyi Street DN315 PE 1,024 8 Taoerhe Road DN315 PE 3,804 9 Xinggong Road DN315 PE 1,080 DN400 PE 1,900 Total = 36,932 DI = Ductile Iron, PE = Polyethylene (Source: PPTA Consultants)
68. The new sanitary sewer pipes will be installed along the new and rehabilitated roads. The sewer pipes will be connected to the existing sewer network that is connected to the existing wastewater treatment plant. A total of 63.2 km sewer pipe will be installed along the new urban roads. The details are shown in Table A4. In addition to the pipe network, a pump station will be built to lift the sewage due to the extreme flat topographic condition in Baicheng. The current design has proposed to use the reinforced concrete pipe for all sewer pipes. In reference to the similar projects in the developed countries, the PE or PVC pipe is used widely for the smaller sewer pipe due to their light weight, small friction (roughness) and low cost. The option of use PE or PVC pipe shall be studied and compared.
69. The stormwater drainage pipes will be installed along the new and rehabilitated roads. The stormwater drainage pipes will connect to the nearby rivers or dry ditches and the urban runoff will be discharged without any control and management directly. As indicated previously, the current standard stormwater drainage design in PRC is lack of any stormwater
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Jilin Urban Development Project (TA 8172-PRC) Final Report management features of infiltration, detention, discharge rate control, and pollutant removal. The project will build a demonstration section with the stormwater management features for pollutant removal, rainwater infiltration, underground storage and detention. The scheme of the stormwater management system is illustrated in Figure A1 (The detailed scheme was discussed and agreed with the DI, but the current FSR does not include the proposed stormwater management feature yet.). The details of the stormwater pipes are shown in Table A5. In addition to the pipe network, two new stormwater pump stations will be built to lift the stormwater to the rivers due to the extreme flat condition in the urban area.
Table A4 - Summary of Sanitary Sewer Pipes Diameter Pipe Length No Name (mm) Material (m) Remark 1 Third Ring Road DN300 RC 820 DN600 RC 3,960 DN500 RC 9,770 DN400 RC 9,770 2 Xiangyang Street DN300 RC 1,120 DN400 RC 5,960 DN500 RC 2,370 3 Xinhua Xi Road DN300 RC 5,460 4 Shengli Road DN300 RC 4,640 5 Chunyang Road DN300 RC 8,420 6 Xingfu Bei Street DN400 RC 2,700 7 Nanyi Street DN600 RC 557 DN300 RC 420 8 Taoerhe Road DN500 RC 2,324 DN600 RC 1,520 9 Xinggong Road DN800 RC 1,498 DN600 RC 1,920 10 No. 1 Sewer Pump Station ((Xingfu Bei Street/Third Rind Road, Capacity = 184.4 L/S) Total = 63,229 Note 1 Note 1 - the summary excludes 80000 m small size lateral pipes. RC = Reinforced Concrete (Source: PPTA Consultants)
Figure A1 - Curbside Stormwater Management for Infiltration
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Jilin Urban Development Project (TA 8172-PRC) Final Report
70. The 10KV power supply lines will be installed along the new urban road. The total length of the power supply cable is 33.0 km. The details are shown in Table A6. Based on the alternative study, the direct bury construction method is selected. It is critical at this stage to coordinate with the power supply authority to find out who are eligible to do the installation work. As a standard practice in PRC, the installation of power supply system can be only performed by the power company. If this is the case, it is recommended that the work as well as the construction cost shall be removed from the project since the work to be performed by the power company is not qualified for ADB financing.
Table A5 - Summary of Stormwater Drainage System Diameter Pipe Length No Name (mm) Material (m) Remark 1 Third Ring Road DN1200 RC 2,300 DN1500 RC 2,300 DN1350 RC 3,000 DN2000 RC 1,900 DN800 RC 13,400 2 Xiangyang Street DN800 RC 2,000 DN1000 RC 1,000 DN1200 RC 2,400 DN1350 RC 1,000 DN1800 RC 900 DN2000 RC 1,000 3 Xinhua Xi Road DN800 RC 2,000 DN1500 RC 1,400 DN1800 RC 2,000 4 Shengli Road DN800 RC 4,656 5 Chunyang Road DN800 RC 6,400 DN500 RC 1,700 6 Xingfu Bei Street DN1500 RC 2,690 7 Nanyi Street DN800 RC 1,000 8 Taoerhe Road DN800 RC 2,334 DN2000 RC 1,530 9 Xinggong Road DN1800 RC 1,050 DN2500 RC 1,930 10 No. 1 Stormwater Pump Station (Xinggong Road/G302, Capacity = 10479 L/S) 11 No. 2 Stormwater Pump Station (at existing pump station site, Capacity = 11000 L/S) Total = 59,890 Note 1 Note 1 - The total amount excludes 7500 DN300 laterals and 5 m outlet pipe. RC = Reinforced Concrete (Source: PPTA Consultants)
Table A6 Summary of Power Supply Cables Length No Name Type (km) Remark 1 10 KV power line -10-3X300 22.0 Direct bury 2 10 KV power line -10-3X240 4.0 Direct bury 3 10 KV power line -10-3X185 7.0 Direct bury Total = 33.0 (Source: PPTA Consultants)
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Jilin Urban Development Project (TA 8172-PRC) Final Report
71. The underground conduits and manholes for the communication cables will be installed along the new urban roads. The summary of the communication installations is shown in Table A7. A total of 33 km underground communication conduits and 120 manholes will be installed.
Table A7 Summary of Communication Conduits Length No Name Type Unit (km) Remark 1 Communication conduit 8 cell km 22.0 Direct bury 2 Communication conduit 6 cell km 11.0 Direct bury 3 Communication manhole ea 120 (Source: PPTA Consultants)
72. Along the new and rehabilitated roads, the new street lights will be installed. The total number of the street lighting is shown in Table A8.
Table A8 Summary of Street Lights No Name Type Unit Quantity Remark 1 Third Ring Road 2 Side_2 Arms ea 566 2 Xiangyang Street 2 Side_2 Arms ea 226 3 Xinhua Xi Road 2 Side_2 Arms ea 136 4 Shengli Road 2 Side_2 Arms ea 104 5 Chunyang Road 2 Side_2 Arms ea 194 6 Xingfu Bei Street 2 Side_2 Arms ea 66 7 Nanyi Street 2 Side_2 Arms ea 58 8 Taoerhe Road 2 Side_2 Arms ea 152 9 Xinggong Road 2 Side_2 Arms ea 80 Total = 1,582 (Source: PPTA Consultants)
73. The urban municipal utilities will also include the installation of primary heating piping network along the new roads. The insulated steel pipes will be used. The heating pipes will be connected to the existing heating piping network which is connected to the heat exchange stations. The heat exchange station will transfer the heat from the primary pipe to the secondary piping network to supply heat to the urban residents. The secondary heating pipe lines are not included in the project. A total of 28.2 km primary heating steel pipe will be installed and the details are shown in Table A9.
Table A9 - Summary of Primary Heating Pipes
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Jilin Urban Development Project (TA 8172-PRC) Final Report
Diameter Pipe Length Remark/ No Name (mm) Material (m) subtotal 1 Third Ring Road DN600 Steel 840 DN900 Steel 3,696 4,536 2 Xiangyang Street DN250 Steel 1,214 Direct bury DN450 Steel 1,754 for DN600 Steel 680 all pipe DN700 Steel 1,490 DN800 Steel 2,456 DN900 Steel 1,280 8,874 3 Xinhua Xi Road DN250 Steel 1,744 DN300 Steel 910 DN350 Steel 728 DN400 Steel 1,500 4,882 4 Shengli Road DN250 Steel 1,226 DN350 Steel 1,124 DN400 Steel 750 3,100 5 Nanyi Street DN600 Steel 1,038 1,038 6 Taoerhe Road DN250 Steel 2,052 DN350 Steel 1,834 DN400 Steel 634 DN450 Steel 1,244 5,764 Total = 28,194 (Source: PPTA Consultants)
74. In order to improve the traffic management and traffic control system, a traffic management system will be installed in the new urban roads. As shown in Table A10, the traffic control system includes installing 37 traffic signals at the intersections of the newly built roads, a fiber optical network, and a large LED information display system. At the current stage, it is important to coordinate with the traffic police bureau for the system design, installation, and future operation and maintenance.
Table A10 Summary of Traffic Control and management System
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Jilin Urban Development Project (TA 8172-PRC) Final Report
No Name Type Unit Quantity Remark 1 Regional traffic signal control system (37) signal ea 37 1. 3rd Ring Road - Xinfu Bei Street 2. Minzhu Road - Xinfu Bei Street 3. 3rd Ring Road - Guangmin Street 4. 3rd Ring Road - Tiyuchang Street 5. 3rd Ring Road - Xiangyang Street 7. 3rd Ring Road - Minzhu Road 8. 3rd Ring Road - Zhongxing Road 9. Minzhou Road - Xiangyang Street 10. Zhongxing Road - Xiangyang Street 11. Xinhua Xi Road - Tuwu Highway 12. Xinhua Xi Road - 3rd Ring Road 13. Xinhua Xi Road - Xianhyang Street 14. Xinhua Xi Road - Guangmin Street 15. Shengli Road - Tuwu Highway 16. Shengli Road - 3rd Ring Road 17. Shengli Road - Xinyi Street 18. Chunyang Road - Tuwu Highway 19. Chunyang Road - 3rd Ring Road 20. Chunyang Road - Xinyi Street 21. Chunyang Road - Guangmin Street 22. Chunyang Road - Xingfu Street 23. Xinyi Road - Xiangyang Street 24. Xinggong Road - Tuwu Highway 25. Xinggong Road - Guihua Road I 26. Xinggong Road - Guihua Road II 27. Xinggong Road - 3rd Ring Road 28. Xinggong Road - Xiangyang Street 29. Taobai Highway - Taoerhe Road 30. Taobai Highway - 3rd Ring Road 31. Nanyi Street - 3rd Ring Road 32. Xiangyang Street - 3rd Ring Road 33. Xingfu Nan Street - 3rd Ring Road 34. Nanyi Street - Taoerhe Road 35. Xiangyang Street - Taoerhe Road 36. Xingfu Nan Street - Taoerhe Road 37. Nanyi Street - Tuwu Highway 2 Fiber optical cable network ea 1 3 Large information display 67" LED ea 1 (Source: PPTA Consultants)
A.2 Integrated Municipal Solid Waste Management System in Baicheng 75. The proposed project will help Baicheng municipal government to establish an integrated municipal solid waste management system by applying 3R’s concepts of reduce, reuse and recycle of MSW. The center part of the component is to establish a demonstration municipal solid waste management system started with sorting and recycling at the sources, constructing a kitchen waste sorting and composting center near the landfill site, and procure of the construction waste recycling machine to generate usable backfill materials from the urban construction waste. The scheme of the demonstration integrated municipal solid waste management is shown in Figure A2. At the selected residential communities, a 2-bin system to separate kitchen and non-kitchen waste is used. In addition, the recycle stations will be setup at
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Jilin Urban Development Project (TA 8172-PRC) Final Report
the selected communities to collect and recycle paper and cardboard, plastic and glass, clothes, etc. The collected recycle items will be sent to the recycle stations scattered in the urban area, which are privately operated businesses for profits and very popular in PRC. The kitchen waste will be collected, transported to the sorting and composting center. The center will separate the kitchen waste for composting for city landscaping use, and the remaining non-usable waste will be transported to the landfill site for permanent disposal. Currently in PRC, there is high percentage of construction waste in the municipal solid waste due to rapid urbanization and construction activities. The project will procure a construction waste recycling machine for each project city and place it at the sorting and composting center to treat the construction waste. The generated recycling materials can be used for landfill cover soil or the backfill materials for road and other construction.
76. The key control parameter for the sorting plant is summarized in Table A11 and the sorting and composting plant plan is shown in Figure A3. The plant daily treatment capacity for kitchen waste is 30 ton/day, which will cover about 25% of the total urban solid waste amount assuming the kitchen waste accounts for about 30% of the total waste. The kitchen waste received in the plant will be sorted to separate items that cannot be used for composting. It is calculated that about 20 ton of the kitchen waste can be used for composting, and the remaining part, after picking up the recycle items such as paper, cardboard, plastic, metal, etc. will be sent to landfill site for permanent disposal. The sorting plant will occupy about 1.9 hector land and the major structures in the plant include sorting workshop, storage, administration building, wastewater tank, etc. The major equipment in the sorting plant include receiving and feeding, sorting and separating, conveying, moving and packing, etc. The detailed equipment list is shown in Table A12.
Schema of the 10 Year Road Map of ISWM for Baishan
Baishan City: 350 t/d MSW
- Other Area
310 t/d 320 t/d 320 t/d --> one-bin-system for transfer stations landfill Disposal mixed waste
- Selected communities non recyclable
--> two-bin-system ~10 t/d
-> bin for rest waste 20 t/d <20 t/d 30 t/d compostable -> bin for kitchen waste pre-sorting composting Recovery
paper glas clothes recyclable
~0 t/d
~10 t/d ~10 t/d Reuse / Recycle
Figure A2 Scheme of Demonstration Municipal Solid Waste Management System
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Jilin Urban Development Project (TA 8172-PRC) Final Report
Figure A3 Baicheng Sorting and Composting Plant Layout
Table A11 - Control Parameters for Sorting Plant No Name Unit Quantity Remark 1 Daily treatment capacity ton/day 30 2 Area occupied ha 1.9 3 Composting capacity ton/day 20 4 Building area 1311 5 Building footprint 150 6 Buildings i) Sorting workshop 520 ii) Storage 691 iii) Administration building 100 iv) Wastewater tank 150 (Source: PPTA Consultants)
77. The second part of the MSW management improvement is to build 12 new MSW transfer stations. Conventionally, the MSW was collected and transported to the landfill sites using regular dump trucks in most of the cities. The practice is not efficient due to the large volume of the uncompressed MSW and it is very easy to cause the secondary pollution due to the leaking and loss of the MSW during the transport. The proposed new MSW transfer stations will use the advanced technologies and equipment for MSW handling. The enclosed MSW container with compressing capacity will be introduced. The MSW transported to the transfer stations will be loaded to the container which will compress and store the MSW in its completely
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Jilin Urban Development Project (TA 8172-PRC) Final Report sealed steel container without any leaking. After the container is loaded to its maximum capacity, a special truck with lifting arm will lift and load the container and transport the MSW to the sorting plant/landfill site. For each of the transfer station, one armed lifting truck will be equipped and a total of 30 compaction containers will be used for all 12 transfer station. In addition, 12 enclosed MSW compaction trucks will be purchased to collect and transport the MSW from the designated MSW collection sites to the landfill site directly. The upgrade also includes the purchase of 49 small MSW carts and 4 kitchen garbage collection truck. The control parameter and equipment list for the transfer station is shown in Table A13.
Table A12 Summary of Sorting Plant Equipment List No Name Type Unit Quantity Remark Sorting Plant 1 Receiving hopper 3000x4500 ea 1 2 Plate type feeder B1300x4400 ea 1 3 Spreader B1300xØ800 ea 1 4 Loading conveyor B1200x12200 ea 1 5 Sorting platform 1 B4000x4500 ea 1 6 Roller sorting machine Ø2000x6000 ea 1 7 Output conveyor 1 B800x6500 ea 1 8 Output conveyor 2 B800x6000 ea 1 9 Magnitude metal remover RCDD-08 ea 1 10 Output conveyor 3 B1000x12000 ea 1 11 Sorting platform 2 B4000x4500 ea 1 12 Output conveyor 4 B1000x8000 ea 1 13 Lubricant and hydraulic oil set ea 1 14 Solid waste lifter QD50-105-B ea 1 15 Work platform & stairs set 1 16 Electronic control system set 1 17 Air fresher system N = 8.0 kw ea 1 18 Packing machine HPA-50 ea 1 19 Receiving container HPA-50 ea 16 Composting Plant 20 Loader 3t ea 2 21 Turner 146 kw ea 1 22 Movable roller sieving machine 10 t/h ea 1 23 Packing machine with scale ea 1 Construction Material Recycle 24 Movable construction waste recycling machine 180 t/h ea 1
(Source: PPTA Consultants)
Table A13 Control Parameters and Equipment List for Transfer Stations No Name Type Unit Quantity Remark 1 New MSW transfer station open ea 12 Treatment capacity = ton/day 28 Transfer station area 160 2 Movable MSW compaction container set 30 3 Self-loading truck 25t ea 12 4 Enclosed MSW compaction truck ea 12 4 Enclosed MSW cart 0.5t ea 50 5 Kitchen garbage collection truck 6 m3 ea 4 (Source: PPTA Consultants)
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78. The third part of the MSW management improvement is to introduce sorting at the source by using 2-bin system to separate kitchen and non-kitchen waste, and 3-bin system to collect recycle items of paper, class and clothes. The 2-bin and 3-bin system will be placed at the selected residential communities to promote recycling and raise public awareness. In addition, the project will also upgrade the city cleaning and maintenance fleet and equipment to help improving the city environment. The detailed equipment list including the 2-bin and 3-bin containers is shown in Table A14.
Table A14 List of Urban Clean Equipment and Trash Bin No Name Type Unit Quantity Remark 1 Street sweeping vehicle ea 30 2 Urban cleaning vehicle ea 6 3 Dirt cleaning vehicle 8 m3 ea 8 4 Snow cleaning vehicle 10 m3 ea 10 5 Snow cleaning vehicle 5 m3 ea 10 6 Water spry vehicle ea 10 7 Push cart ea 500 8 Electric tricycle ea 300 9 Sewage suction truck 5 m3 ea 10 10 Sewer cleaning truck 5 t ea 5 11 Excavator ea 1 12 Water truck ea 12 13 Construction waste cleaning truck ea 10 14 Fold lift ea 2 15 Trash bin ea 30000 16 3 bin recycle station ea 20 (Source: PPTA Consultants) A.3 Integrated Municipal Solid Waste Management in Baishan 79. The proposed project will help Baishan municipal government to establish an integrated municipal solid waste management system by applying 3R’s concepts of reduce, reuse and recycle of MSW. Similar to Baicheng MSW management improvement, the center part of the component is to establish a demonstration municipal solid waste management system started with sorting and recycling at the sources, constructing a kitchen waste sorting and composting center near the landfill site, and procure of the construction waste recycling machine to generate usable backfill materials from the urban construction waste. The similar scheme of the demonstration integrated municipal solid waste management can be seen in Figure A2. At the selected residential communities, a 2-bin system to separate kitchen and non-kitchen waste is used. In addition, the recycle stations will be setup at the selected communities to collect and recycle paper and cardboard, plastic and glass, clothes, etc. The collected recycle items will be sent to the recycle stations scattered in the urban area, which are privately operated businesses for profits and very popular in PRC. The kitchen waste will be collected, transported to the sorting and composting center. The center will separate the kitchen waste for composting for city landscaping use, and the remaining non-usable waste will be transported to the landfill site for permanent disposal. Currently in PRC, there is high percentage of construction waste in the municipal solid waste due to rapid urbanization and construction activities. The project will procure a construction waste recycling machine for each project city and place it at the sorting and composting center to treat the construction waste. The generated recycling materials can be used for landfill cover soil or the backfill materials for road and other construction.
80. The key control parameter for the sorting plant is summarized in Table A15 and the plan for sorting and composting plant is shown in Figure A4. The plant daily treatment capacity for kitchen waste is 30 ton/day, which will cover about 30% of the total urban solid waste amount
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Jilin Urban Development Project (TA 8172-PRC) Final Report assuming the kitchen waste accounts for about 30% of the total waste. The kitchen waste received in the plant will be sorted to separate items that cannot be used for composting. It is calculated that about 20 ton of the kitchen waste can be used for composting, and the remaining part, after picking up the recycle items such as paper, cardboard, plastic, metal, etc. will be sent to landfill site for permanent disposal. The sorting plant will occupy about 2.7 hector land and the major structures in the plant include sorting workshop, storage, administration building, wastewater tank, etc. The major equipment in the sorting plant include receiving and feeding, sorting and separating, conveying, moving and packing, etc. The detailed equipment list is shown in Table A16.
Table A15 - Control Parameters for Sorting Plant No Name Unit Quantity Remark 1 Daily treatment capacity ton/day 30 2 Composting capacity ton/day 20 3 Area occupied ha 2.65 4 Building area 1311 5 Building footprint 150 6 Buildings i) Sorting workshop 520 ii) Storage 691 iii) Administration building 100 iv) Wastewater tank 150 (Source: PPTA Consultants)
Figure A4 Baishan MSW Sorting and Composting Plant
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Table A16 - Summary of Sorting Plant Equipment List No Name Type Unit Quantity Remark Sorting Plant 1 Receiving hopper 3000x4500 ea 1 2 Plate type feeder B1300x4400 ea 1 3 Spreader B1300xØ800 ea 1 4 Loading conveyor B1200x12200 ea 1 5 Sorting platform 1 B4000x4500 ea 1 6 Roller sorting machine Ø2000x6000 ea 1 7 Output conveyor 1 B800x6500 ea 1 8 Output conveyor 2 B800x6000 ea 1 9 Magnitude metal remover RCDD-08 ea 1 10 Output conveyor 3 B1000x12000 ea 1 11 Sorting platform 2 B4000x4500 ea 1 12 Output conveyor 4 B1000x8000 ea 1 13 Lubricant and hydraulic oil set ea 1 14 Solid waste lifter QD50-105-B ea 1 15 Work platform & stairs set 1 16 Electronic control system set 1 17 Air fresher system N = 8.0 kw ea 1 18 Packing machine HPA-50 ea 1 19 Receiving container HPA-50 ea 16 Composting Plant 20 Loader 3t ea 2 21 Turner 146 kw ea 1 22 Movable roller sieving machine 10 t/h ea 1 23 Packing machine with scale ea 1 Construction Material Recycle 24 Movable construction waste recycling machine 180 t/h ea 1
(Source: PPTA Consultants)
81. The second part of the MSW management improvement is to build 15 MSW transfer stations. Currently, there are 19 existing MSW transfer stations in Baishan urban area. The project will upgrade 15 of them and the remaining 4 will be eliminated. Most of these transfer stations were built at about 20 or more years ago with low design standards. The typical station consists of two loading recesses on the ground with a steel container in each of it, an overhead crane, and the house to host these facilities. The MSW collected and transported by the small carts dump the garbage into the steel containers. After the container is full, it will be lifted and loaded to a dump truck and transferred to the landfill site. There is no any compressing of the MSW and the garbage is exposed during the entire processing. The practice is not efficient due to the large volume of the uncompressed MSW and it is very easy to cause the secondary pollution due to the leaking and loss of the MSW during the transport. The proposed new MSW transfer stations will use the advanced technologies and equipment for MSW handling. The enclosed MSW container with compressing capacity will be introduced. The MSW received at the transfer stations will be loaded to the container which will compress and store the MSW in the completely sealed steel container without any leaking. After the container is loaded to its maximum capacity, a special truck with lifting arm will lift and load the container and transport the MSW to the sorting plant/landfill site. For each of the transfer station, one armed lifting truck and 2 compaction containers will be equipped. In addition, 2 enclosed MSW compaction trucks will be purchased to collect and transport the MSW from the designated MSW collection sites to the landfill site directly. The upgrade also includes the purchase of 15 small MSW carts and 4 kitchen garbage collection truck. The control parameter and equipment list for the transfer station is shown in Table A17.
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Table A17 - Control Parameters and Equipment List for Transfer Stations
Building Area Capacity Distance to No Name (m2) (t/d) Landfill (km) Remark 1 Upgrade MSW collection stations: 1) Hekou Station 136 18 8.0 2) Yangguang Station 100 20 7.0 3) Diantie Road Station 86.4 26 6.0 4) Huimin Station 129.4 28 5.0 5) Jiefang Station --- not used 6) Jinhe Station 118.4 28 2,5 7) Xingtai Station 147.29 26 4.5 8) Aimin Station 95.58 28 4.5 9) Tuanjie Station 93.6 -- Not used 10) Xiaocheku Station 93.8 20 3.0 11) Tongjiang Station 88.8 - - Not used 12) Gulan Station 91.2 28 3.5 13) Xinbei Station 128.7 26 5.0 14) Minhua Station 132 26 6.5 15) Jianxi Station 85.8 - - Not used 16) Xianmingcun Station 129.6 20 9.6 17) Caizheng Station 127.5 10 9.0 18) Xiaobanshi Station 100.4 26 10.6 19) Tonggou Station 137.7 10 3.0 Name Type Unit Quantity Remark 2 Equipment List: 1) Movable compaction MSW container 17 m3 ea 30 Note 2 2) Armed self loading truck 25t ea 15 3) Air fresher system set 15 4) Enclosed compaction MSW truck 12 m3 ea 2 5) Enclosed MSW cart 2.2 m3 ea 15 6) Kitchen garbage collection truck 6 m3 ea 2 7) Kitchen garbage collection truck 4.8 m3 ea 2 Notes: 1) Armed self loading truck; 2) Movable MSW compaction container, 2 per station. (Source: PPTA Consultants)
82. The third part of the MSW management improvement is to introduce sorting at the source by using 2-bin system to separate kitchen and non-kitchen waste, and 3-bin system to collect recycle items of paper, class and clothes. The 2-bin and 3-bin system will be placed at the selected residential communities to promote recycling and raise public awareness. In addition, the project will also upgrade the city cleaning and maintenance fleet and equipment to help improving the city environment. The detailed equipment list including the 2-bin and 3-bin containers is shown in Table A18.
Table A18 List of Urban Clean Equipment and Trash Bin
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No Name Type Unit Quantity Remark 1 Sewage suction truck 5 m3 ea 2 2 Sewage suction truck 3 m3 ea 2 3 Sewage tank truck 2.5 m3 ea 4 4 Street sweeping vehicle 3 t ea 12 5 Street sweeping vehicle 8 t ea 3 6 Electric tricycle 600 L ea 180 7 Push cart ea 620 8 Snow cleaning vehicle 10 m3 ea 4 9 Snow cleaning vehicle 5 m3 ea 4 10 Snow removal dump truck 20 m3 ea 10 11 Snow blower ea 2 12 Movable toilet 6-units ea 2 13 Fuel tank truck 2.5 m3 ea 1 14 Pipe cleaning truck ea 1 15 2 compartment trash bin 2-bin ea 1466 16 Trash bin ea 1560 17 Garbage barrel 240 L ea 126
(Source: PPTA Consultants)
83. The fourth part of the MSW management improvement is to build Phase II of the sanitary landfill site in the upper side of the existing landfill site. The landfill capacity will be 530,000 m3 and the daily treatment capacity will be 330 ton/day. A new leachate treatment facility for Phase I landfills is under construction. Due to the close location of Phase I and II landfill sites, the same facility will be used for the new Phase II landfill site after Phase II landfill starting operational. The new landfill will use sanitary landfill technology and major components of the landfill includes exterior and interior dams, water blocking dam, drainage pipe, water proofing, gas collection system, and connection pipe to Phase I leachate treatment facility. The control parameters of the landfill are summarized in Table A19 and the plan for the sanitary landfill is shown in Figure A5.
Table A19 Control Parameters for New Sanitary Landfill No Name Unit Quantity Remark 1 Total landfill capacity m3 530,000 2 Daily treatment capacity t/d 330 3 Service year (w/ existing site) yr 8 4 Landfill: i) Exterior dam (top El 551 m) m 48 Length ii) Interior separation dam (top El 560 m) m 59 Length iii) Water blocking dam (top El 575 m) m 48 Length iv) Drainage pipe mm 1800 Diameter v) Leachate collection & treatment set 1 Phase I vi) Gas collection system set 1 burning to release vii) Leaking proofing - HDPE sheet set 1
(Source: PPTA Consultants)
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Figure A5 Baishan MSW Sanitary Landfill Site Plan
A.4 Improved Water Supply Management in Baishan 84. There are immediate water supply shortages in both Hunjiang and Jiangyuan districts un Baishan City. For Hunjiang district, there 4 existing water supply sources providing raw water for the urban residents. The first one is Qujiayung Reservoir which is the main water source providing raw water to the existing Nanshan water treatment plant (WTP) with a capacity of 80000 ton/day. The remaining 3 water supply treatment plants are Zhenzhumen (9000 ton/day), Kuchanggou (5000 ton/day) and Jinying (10000 ton/day), and all of them using
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underground water as the sources. All these 3 water treatment plants are closed or in the process of closing down operation due to the pollution from gold mining or reduced and unstable output. For Jiangyuan district, Dayangcha reservoirs the current water supply source providing raw water to Jiangyuan water supply plant. Dayangcha reservoir is a small reservoir built on Dayangcha River, which does not have adequate capacity to provide sufficient water supply to the water treatment plant. The current water supply capacity is 25000 - 28000 ton/day during peak period (June to August) and 15000 to 20000 ton/day during the low period (January to March). The water usage in Jiangyuan district is between 22000 to 24000 ton/day. The existing Jiangyuan WTP was built in 2000 with the capacity of 15000 ton/day, and the plant was expended with additional 15000 ton/day in 2004. The existing plant has adequate water treatment capacity but is without sufficient raw water supply. Both Hunjiang and Jiangyuan districts are in urgent needs for additional water supply sources and Hunjiang district is in need for additional supplementary water treatment facility. The situation is summarized in Table A20.
Table A20 - Existing Water Supply Sources and Water Treatment Facilities in Baishan
Water Supply and Demand (ton/day) Jiangyuan Hunjiang (Demand = 130000) (Demand = 30000) Water Source
Name Qujiaying Zhenzhumen Kuchanggou Jinying Dayangcha
Capacity 80000 9000 5000 10000 15000 - 28000 In process of In process of Shut Condition Operation Operation shutting down shutting down down Total 50000 15000-28000
Water Treatment Capacity
Name Nanshan Same Same Same Jiangyuan WTP
Capacity 80000 0 0 0 30000
Total 80000 30000 Water Source 50000 2000-15000 Demand Water Treatment 50000 0
85. The water supply management improvement component will build two water transmission lines, one for Hunjiang District and another one for Jiangyuan District; one new water treatment plant; build and upgrade water distribution piping network in Hunjiang District. The water source will be the new Xibeicha Reservoir that is under construction and will be completed in 2015.
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Table A21 - Summary of Water Transmission Lines No Name Unit Quantity Remark A Hunjiang district water transmission line 1. Line capacity t/d 50,000 2. Total length m 21,140 3. Pipe diameter mm 900 4. Elevation difference m 62 gravity flow pipe 0.6, 1.0 5. Maximum water pressure m 124 &1.6 Mpa B Jiangyuan district water transmission line 1. Line capacity t/d 30,000 2. Total length m 6,800 3. Pipe diameter mm 800 4. Elevation difference m 10 5. Maximum water pressure m 21 pipe 0.6 Mpa
C Summary of quantities: 1. DN900 DI (PN0.6MPa) m 15,573 cut 2. DN900 DI (PN01.0MPa) m 754 tunnel 3. DN900 Steel Pipe m 423 jacking 4. DN900 DI (PN1.0MPa) m 900 cut 5. DN900 DI (PN1.6MPa) m 2,975 cut 6. DN800 DI (PN0.6MPa) m 6,845 cut 7. DN800 Steel Pipe m 20 jacking subtotal = 27,490 8. Rural road restoration m2 3,000 9. Asphalt pavement restoration m2 2,400 10. Valve manhole (2.2x3x3 m) ea 21 11. Valve manhole (5.0x1.8x3.7 m) ea 5 12. Air release manhole (1.4x4.2x3.2 m) ea 5 13. Air release manhole (1.4x1.6x3.2 m) ea 21 14. Water discharge manhole (1.3x1.3x2.7 m) ea 26 15. Wet manhole (1.2x2.7 m) ea 26 16. Pressure release manhole (2.2x3x3 m) ea 2 17. Flow meter manhole ea 4 18. Double flange valve (DN900) ea 21 19. Double flange valve (DN800) ea 5 20. Double flange valve (DN300) ea 26 21. Double flange valve (DN100) ea 26 22. Double flange air release valve (DN100) ea 26 23. Pressure release system set 2 24. Pressure converter ea 2 25. Electronic magnitude flow meter (DN900) ea 4 26. Electronic magnitude flow meter (DN800) ea 1
(Source: PPTA Consultants)
a. Water Transmission Lines
86. The alignment of the water transmission lines have been adjusted by relocating them from the riverbed to the land due to operation and maintenance concern. The new alignment will run through the mountainous area and some urban areas. Both Hunjiang and Jiangyuan
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water transmission lines will start from the hydropower plant near Xibeicha Reservoir; run about 5.6 km to reach Sanchazi Town before Jiangyuan line turns towards east to Jiangyuan water treatment plant at about 1.2 km. The Hunjiang line will continue for about 15.5 km to reach the new water treatment plant at Shangdianzi Village. The ductile iron pipe will be used for the transmission line. The details of the two water transmission lines and major construction quantities are summarized in Table A20. b. Water Treatment Plant
87. Due to the inadequate water supply capacity in Hunjiang District, the project will build a new water treatment plant in northeast of the city. The design water treatment capacity is 50,000 ton/day. Based on the alternative study, the final plant site is selected at a high ground outside Shangdianzi Village. The site elevation is about 520 m, which is about 45 m higher than that of Hunjiang urban area and 60 m lower than that of the water source at Xibeicha Reservoir. The site elevation is ideal for the water treatment plant, where the water transmission and distribution can be completed mostly by gravity with minimum need for power consumption. The major control parameters for the proposed water treatment plant are shown in Table A21.
88. A conventional water treatment process will be used for the water treatment plant, which includes water pretreatment, mixing and coagulation, settlement and filtering, storage and water supply. In addition to the water treatment, there are other facilities in conjunction of the water processing, which include sanitary treatment by chlorine, sludge treatment, water recycle tanks, etc. The major components of the water treatment are shown in Table A22. The major structures in the plant include water mixing house for pretreatment, main water treatment house to host all water treatment equipment and facilities, clean water tank for water storage, chlorination house for sanitary treatment, recycling water tank to store and reuse water used for equipment flushing, sludge treatment facilities, administration building and other miscellaneous structures.
89. In order to improve the operation efficiency, a water supply monitoring and control system (SCADA) will be installed in the new water treatment plant. The major SCADA components are shown in Table A23.
Table A21 - Control Parameters for Water Treatment Plant No Name Unit Quantity Remark 1 Design capacity t/day 50000.0 2 Plant area ha 4.5 3 Source water preclorination mg/L 2.0 4 Water turbidity - Water source NTU 35-70 - Water output NTU 0.5 5 Aluminum sulfate mg/L 30.0 Max - 60 6 Self water usage percentage 6%
(Source: PPTA Consultants)
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Table A22 - Major Structures in Water Treatment Plant No Name Unit Quantity Remark 1 Water mixing house (12x38.1 m) 2 story a. water mixing (9x12 m) - Water tank 6.2x5.7x9.0 m ea 1 b. Coagulation workshop 29.1x12.0 m - aluminum sulfate storage tank (4.4x12x4.5 m) ea 2 - aluminum sulfate liquid tank (1.8x1.8x42.7 m) ea 3 - sodium carbonate tank (1.8x1.8x2.7 m) ea 1 - sodium carbonate liquid tank (1.8x1.8x2.7 m) ea 2 2 Water treatment house (90x42m) 2 story - Mixing and settlement tank (44.25x14.4x6.1m) ea 2 - V shape filtration tank (22.8x10x4.8 m) ea 1 - Flushing pump station (6x16.5x7 m) ea 1 - Compress air station (6x10.5x5.7 m) ea 1 3 Clean water tank (42x30x4 m) ea 2 4 Chlorination house (15x12x3.6 m) ea 1 5 Recycle water tank (15x6x4.9 m) ea 2 6 Sludge tank (15x6x4.9 m) ea 1 7 Sludge condense house (36x18x6.6 m) ea 1 8 Sludge condense tank (9 diameter x 6.2 m) ea 2 - Sludge balance tank (4.5x3.6x4.2 m) ea 2 - Sludge dewater house (12x10.5x5.7 m) ea 1 9 Sludge storage shed (12x7.5x5.7 m) ea 1 10 Administration building m2 1000 11 Repair workshop & storage (28x13.2 m) m2 740 12 Boiler house m2 300 13 Security guard house m2 25
(Source: PPTA Consultants)
Table A23 - Major Components of SCADA System No Name Unit Quantity Remark 1 RTU set 20 2 GPRS Terminal set 20 3 Power measurement box set 20 4 Measuring box set 20 5 Power supply system set 1
(Source: PPTA Consultants)
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c. Water Distribution Piping Network
90. The water distribution piping network improvement include the upgrade and replacing part of the existing water pipes in the existing urban area and install new water supply pipe. Based on the alternative study on pipe materials, it is proposed that ductile iron pipe will be used for pipe diameter larger than 300 mm and PE pipe will be used for smaller pipes. The details of the water distribution system are shown in Table A25 including pipes and manholes.
Table A24 - Summary of Water Distribution System Diameter Pipe Length No Name (mm) Material (m) Remark 1 Existing Network Upgrading DN300 PE 572 DN500 DI 4,233 DN600 DI 3,544 DN700 DI 2,789 Subtotal = 11,138 2 New Construction DN200 PE 2,393 DN300 PE 11,597 DN300 Steel 60 jacking DN400 DI 6,917 DN500 DI 13,222 DN500 Steel 600 jacking DN600 DI 1,152 DN600 Steel 260 jacking DN700 DI 2,184 DN700 Steel 200 jacking DN1000 DI 5,592 DN1000 Steel 63 jacking Subtotal = 44,240 3 Misc Structures Type Unit Quantity - Air release manhole ea 49 - Flushing valve manhole ea 49 - Pressure measuring manhole ea 10 - Flow meter manhole ea 4 Total Pipe Length = 55,378 4 Pump Stations - 5000 m3/d ea 3 -10000 m3/d ea 1 Summary of Equipment: Pump 160 m3/h, H =30 m, 22 kW ea 9 Pump 320 m3/h, H =30 m, 30 kW ea 3 Sewer Pump 10 m3/h, H =15 m, 1.1 kW ea 4 Multifunction pump valve DN300, PN1.0 MPa ea 3 Multifunction pump valve DN200, PN1.0 Mpa ea 9 Double flange manual valve DN300, PN1.0 Mpa ea 6 Double flange manual valve DN200, PN1.0 Mpa ea 18 Double flange manual valve DN80, PN1.0 Mpa ea 4 Removable double flange connector DN300 PN1.0MPa ea 6 Removable double flange connector DN200 PN1.0MPa ea 18 Electric single beam lift T = 2t, Lk = 3 m set 4
DI = Ductile Iron, PE = Polyethylene (Source: PPTA Consultants)
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d.n No -Revenue Water (NRW) Reduction
91. Most developed countries have a solid infrastructure and established operational practices for managing and controlling non-revenue water (NRW). This is not always the case in developing countries; many are struggling to ensure that customers receive a reasonable supply of safe drinking water, often via a pipe network that is inadequate, with poor record systems and a low level of technical skills and technology. Tariff system and revenue collection policies often do not reflect the true value of water supplied, which limits the utility's cost recovery and encourage customers to undervalue the service. The NRW is a globe problem requiring a management strategy that can be globally applied. Developing such a strategy requires a diagnostic approach to identify the problem, and then to use the available tools to reduce or remove it. Following a step-wise process--asking some basic questions about the utility policies and practices, and then undertaking the appropriate tasks to answer them-- is the basis of successful strategy development. The philosophies, concepts, and recommendations, especially those recommended by the IWA and the World Bank Institute, reflect international best practice.
92. Water balance is a method of quantifying and analyzing the System Input Volume and System Output Volume. The fundament of water balance analysis theory is that for a water supply system, the overall water volume calculation should be balanced through measurement or definition of the volume of produced, input, output, and lost water. Theoretically, each of the water balance components can be quantified in a fixed period, and water balance analysis of the water supply system can be complemented by investigating the input and output and collecting relative data. Therefore, introduction of water balance can help quantify the components and the lost water more precisely.
93. By using the water balance method recommended by IWA and WB, the NRW is assessed for Baishan water supply system using the water supply data in 2012. The water balance results are shown in Table A25. The estimated NRW rate is 64%.
Table A25 - Water Balance of Baishan Water Supply System (2012)
Billed Billed Metered Consumption Authorized 34.438% Revenue Water Consumption 35.515% Billed Unmetered Consumption Authorized 35.515% 1.077% Consumption 35.559% Unbilled Metered Consumption Unbilled 0 Authorized Unbilled Unmetered Consumption 0.044% Consumption 0.044% System Input Volume Unauthorized Consumption Commercial 2.821% Non -Revenue Losses Customer Meter Inaccuracies Water 17.697% and Data Handling Errors 64.485% Water 14.876% Losses Reported Bursts 64.441% 15.183% Physical Unreported Bursts Losses 30.421% 46.744% Background Leakage 1.140% (Source: consultants)
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94. A capacity development component will be included for the project implementation to assist the IA to improve the overall water supply operation and maintenance capacity. For the proposed water supply system, more water meters will be installed at the outlet of the WTP to better monitoring and control of the water supply amount. In addition, three residential communities will be selected as the demonstration District Metering Area (DMA) by installing water flow meters and monitoring system to check the water leaking situation. A full scale water leaking monitoring system could be developed based on the results from these demonstration DMAs. In addition, the project will procure the advanced water leaking detection equipment to strengthen the capacity of the IA operation and maintenance team. The list of the equipment is shown in Table A27.
Table A26 Water Leaking Detection Equipment No Name Type Unit Quantity Remark 1 Leaking sounding machine ea 4 2 Leaking checking machine ea 3 3 Correlator ea 2 4 Area leaking monitoring system set 1 5 Metal pipe locator set 4 6 Pavement drilling machine set 1 7 Sounding rod ea 8 8 Measuring wheel ea 2 9 Leaking detection vehicle ea 2
(Source: PPTA Consultants)
A.5 Contract Packaging 95. Based on the construction schedule, construction sequence, resettlement and utility coordination, and municipal government requirements, the contract packaging is developed. For Baicheng subproject, there are total 12 civil work packages and 10 equipment purchase a and installation. For Baishan subproject, there are total 9 civil work contracts and 9 equipment purchase and installation contracts. The summary of the contract packaging for Baicheng and Baishang are shown in Table A27 and Table A28, respectively.
Table A27 Summary of Contract Packaging for Baicheng Subproject
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Package ROW Length Cost Estimate No Name Description Classification Width (m) (m) ($) Baicheng Road CBC1 Third Ring Road I (Xingfu Bei Street - Mianfang Road) Section 1 of 3rd Ring Road Urban Major 55 4706 $18,300,712
CBC2 Third Ring Road II (Mianfang Road - RR underpass) Section 2 of 3rd Ring Road Urban Major 55 4150 $17,114,104
CBC3 Third Ring Road III (RR underpass - Taobai Highway) Section 3 of 3rd Ring Road Urban Major 55 2388 $8,724,377
CBC4 Xiangyang Street I (Third Ring Road - Mianfang Road) Section 1 of Xiangyang Street Urban Major 55 2363 $9,021,975 Xiangyang Street II (Mianfang Rd - Xinyi Rd) + Xinhua Section 2 of Xiangyang Street & Urban Major 55 2142 CBC5 Xi Road Xinhua Xi Road Urban Major 55 2724 $19,988,976
CBC6 Shengli Road Shengli Road Urban Major 45 2068 $6,954,216 CBC7 Xingfu Bei Street Xingfu Bei Street Urban Major 45 1330 $4,891,600 Nanyi Road & Secondary 30 1024 CBC8 Nanyi Rd & Taoerhe Rd (including the bridge) Taoerhe Road Secondary 30 2658 $9,598,468
CBC9 Chunyang Road Chunyang Road Branch Road 35 3881 $8,982,864 CBC10 Xinggong Road Xingong Road Branch Road 20 2927 $5,781,910 CBC11 Third Ring Road RR Underpass RR Underpass Bridge Urban Major 55 40 $6,492,353 CBC12 MSW Sorting and Composting Center Sorting and Composting Center Center Area = 13950 m2 $1,488,822
Baicheng Equipment Contract Description Remark ITS and Traffic Control Equipment EBC1 ITS and Traffic Control for All Roads $3,021,667 2 Stormwater & 1 Sewer Pump EBC2 Stormwater & Sewer Pump Stations1 Stations $1,224,180
EBC3 Heating Pipe Network Heating Pipes Total Length = 28194 m $11,808,148 EBC4 Power Supply Cable Power supply line Domestic Funding by Power Company $7,189,079 EBC5 Street Lighting Street Lighting - all roads EBC6 MSW Handling Equipment & Trash Bins MSW equipment
EBC7 Trash and Recycle Bins Trash Bins EBC8 Snow Clean Vehicles Snow Cleaning Vehicles $2,833,333 EBC9 MSW Transfer Stations & Equipment2 MSW Transfer Station & Equipment $5,264,000
EBC10 MSW Sorting and Composting Center Equipment Sorting and Composting Center Equipment $1,167,042
(Source: Asian Development Bank)
Table A28 Summary of Contract Packaging for Baishan Subproject Baishan Water Supply Contract Description Remark CBSW1 Water Transmission Line I (Reservior to Jiangyuan) Water transmission line 1 $2,172,117
CBSW2 Water Transmission Line I (Jiangyuan to Hunjiang) Water transmission line 2 $4,476,633
CBSW3 Water Treatment Plant I (Site & Civil) Civil work for water treatment plant 1 $4,807,083 CBSW4 Water Treatment Plant II (Processing) Civil work for water treatment plant 2 $8,194,083
CBSW5 Water Distribution Network I (Main Line) Water distribution pipe network - main $1,011,883
CBSW6 Water Distribution Network I (Branch Line) Water distribution pipe network - branch $6,562,133
Baishan Water Supply Equipment Contract Description Remark EBSW1 Water Distribution Pump Stations Civil Civil work for pump stations $1,070,900
EBSW2 Water Transmission Pipe Water transmission pipe material $13,079,833 EBSW3 Water Treatment Plant Equipment I WTP equipment I - processing $2,831,258 EBSW4 Water Treatment Plant Equipment II WTP equipment II - others $460,082 EBSW5 Water Distribution Pipe I Main lines $7,325,183 EBSW6 Water Distribution Pipe II Branch lines $1,051,233 Baishan MSW Management Contract Description Remark CBSSW1 MSW Transfer Station Civil Civil work for civil work $263,109 CBSSW2 MSW Sorting & Composting Center Civil Civil work for sorting and composting $2,028,713 CBSSW3 Sanitary Landfill Civil work for landfill $3,533,058
Baishan MSW Equipment Contract Description Remark EBSSW1 MSW Handling Equipment & Trash Bins Collection and transport equipment $6,086,833 EBSSW2 MSW Transfer Station Equipment Transfer station equipment $4,220,167
EBSSW3 MSW Sorting & Composting Center Equipment Sorting and composting equipment $1,441,713 (Source: Asian Development Bank) A.6 Improved Capacity & Institutional Arrangement 96. The objectives of the capacity development component are to improve the EA and IA’s management and technical capacities to ensure the smooth implementation of the project. The
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component will provide supports to EA/IA’s on project management, contract management, procurement, financial management, disbursement, etc. The consultants will also provide technical support on introducing and implementing new concepts and technologies for ISWM, water supply, municipal services, urban development, training the management staff from EA/IA’s on urban development, ISWM, water supply, advanced engineering and technology, operation and maintenance, urban infrastructure management and maintenance, public transportation, non-motorized traffic planning, urban transport management and control, public participation, financial management, etc. The proposed capacity development subcomponents include:
• Project Implementation Support – To provide project implementation support on project management, contract management, procurement, bidding document preparation, financial management, disbursement, safeguard implementation and monitoring for environmental, resettlement and social, reporting, etc.
• ISWM System – To provide training and technical support for the further development and implementation of the proposed ISWM system. The ISWM concept is relatively new to the urban development in PRC. The program will continue to provide support on development and implementation of the ISWM to ensure the successful implementation of the project.
• Operation and Management of Water Supply System – To provide training and technical support on the implementation of NRW reduction program and water safety plan. For NRW reduction program, the consultants will provide the guidance on the installation of flow meters, SCADA system, DMA system, and provide training on leak detection and institutional strengthening. For the implementation of WSP, the consultant will help to update ad refine the WSP, provide technical supports for upgrading the monitoring and warning system, and conduct training for the operation and maintenance staffs.
• Road Safety – To provide assistance to improve urban road safety. Road safety has becoming a big problem due to the rapid urban development and fast growing number of vehicles. Urban road safety involves many factors and is site-specific. In general, urban road safety shall be improved in the three interrelated aspects, sometimes referred as “Three E” system, which are: i) engineering to design the road without safety black spot; ii) education to educate the driver as well as the public to raise safety awareness; and iii) enforcement to enforce the traffic regulation and laws.
• Pedestrian and Public Transport Oriented Urban Transport – To provide technical assistance and training on the implementation of the proposed urban transport component with special attention to the pedestrian and bicycle facilities, implementation of the bus priority lanes, street parking, urban traffic control and management, ITS application for traffic control, etc.
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B. BAICHENG URBAN DEVELOPMENT ANALYSIS
97. Baicheng city development project is a major urban infrastructure improvement project in Baicheng west city area. There are nine new roads proposed with auxiliary facilities including water supply, power supply, primary heating piping, storm water, sewerage, pumping station, street lighting, landscaping, integrated solid waste management (ISWM) facilities including collection, sorting and transfer facilities.
98. This report aims to address two key issues. Firstly, to justify the ambitious urban expansion plan of Baicheng. Secondly, to illustrate the vital importance of the proposed urban infrastructure development project to Baicheng
99. According to Baicheng’s latest draft master plan (Figure B1) which covers the next 20 years time, the city’s planned area will reach to about 133 km2 in total. The city’s existing built up area is about 50.9 km2. The city, according to the master plan, will be formed by five districts. They are the Old City District (OCD), Economic Development District (EDD), New Eco-city District (NED), Industrial Park District (IPD) and Taobei Economic Development District (TEDD) (Figure B2).
Figure B1 Draft Master plan of Baicheng
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Figure B2 Five Districts of Baicheng City
100. With regard to the urban expansion plan of the city, it is worthy pointing out the strategic advantages of the city to support its long term growth.
101. Baicheng occupies a strategic location in northeast China. The proximity of Baicheng to three-provincial border (Jilin, Heilongjiang and Inner Mongolia) region represents a good opportunity to take advantage of the economic developments of the three provinces. The existing convenient road and rail links tie up Baicheng and the nearby major cities, which help in the better inter-city economic interaction. Baicheng and the nearby region is a largely rural area and is one of the national commodity grain production bases. The rich raw agricultural products in the region and the abundant available cheap labor from rural areas represent the advantage of Baicheng’s in terms of agro-food processing at least. The relatively weak industrial base in the region and Baicheng’s position as a traffic hub provide Baicheng the advantageous position to strengthen its industrial sector to suit its unique transportation and location advantages.
102. Baicheng possesses rich resources to support its industrial developments. According to Baicheng’s recent years statistics, 2/3 of the electricity (coal fire and wind electricity) generated in Baicheng is in surplus. Baicheng has good potential for wind energy generation. Currently, only 10% of developable wind energy resource has been developed. In terms of water, less than 20 % of the usable water resource is currently utilized in Baicheng. There is, therefore, firm ground to support Baicheng’s industrial developments from resources point of view.
103. Baicheng’s strategic position within the economic corridor between Mongolia, China and Russia is another advantage. It is predictable that the economic corridor will exert more influence as the further development and cohesion of Northeast Asian Economy. Baicheng’s pivot position will help the city to seize this opportunity to further strengthen its economy especially in industrial and logistics aspects
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104. Baicheng’s tourism economy is under-developed. There are two National Nature Reserve Areas, one Provincial Nature Reserve Area and one National Hunting Area in Baicheng District. Due to the relative remoteness of Baicheng in relation to major Chinese cities, the lack of investments in the tourism related facilities, the current absence of airport and high speed rail connections, Baicheng’s economy does not benefit much from its rich natural and ecological resources. On the other hand, this means the potential of Baicheng’s tourism economy is far from realized, so there is good scope for the city’s future tourism economy developments once the requisite conditions are mature.
105. The proposed transport infrastructure improvements including Baicheng airport, Chang- Bai high speed rail, and rail-based freight transport capacity upgrade will immediately raise Baicheng’s strategic importance in many aspects. The airport and high speed rail will strengthen the city’s connectivity and interactivity to wider areas, which bring people to Baicheng for business and leisure purposes. The enhanced freight capacity will aid Baicheng’s efforts on industrial developments.
106. Above all, there is solid evidence that Baicheng will thrive in future. The ambitious urban expansion plan is therefore not only a blue print, but also a practical route map for Baicheng to its future success.
107. However, the city needs a large amount of investments to help realize its ambition. Lack of investments, especially in the city’s infrastructure, has long been a problem which delayed the city’s pace to bright future. The proposed infrastructure project in west city area, which is in urgent need of funding, is an important step for the city to gain the much needed speed. The Economic Development District (EDD) and the New Eco-city District (NED), representing over 40% of the total urban area as planned, will directly benefit from the proposed infrastructure project. The EDD along, according to the district government’s list of confirmed industrial and commercial proposals, will provide an estimated over 11,000 direct job opportunities in the short term. The NED, although largely a residential district, will provide over 14,000 direct job opportunities in the long term as estimated. Overall, there will be over 200,000 future residents will directly benefit from the proposed infrastructure project.
108. The proposed key roads, forming part of the road network of the city, connect the EDD and NED to the rest of the city and wider areas, and facilitate the flowing of people, goods, commodity and capital to and from these two districts. Some proposed roads (Figure B3) have higher strategic importance as they are either part of the city ring road or the road connecting the city with other towns. The rest of the roads are mostly urban trunk roads, which are the arteries of their respective districts. The Industrial Park District (IPD) and Taobei Economic Development District (TEDD) will indirectly benefit from the enhanced overall city road connections. These two districts will accommodate over 36,000 and 12,000 local jobs respectively.
109. The proposed infrastructure project, as a whole, will greatly enhance Baicheng competitiveness in attracting investments, employment and service population. This will push forward the overall development of the city.
110. To summarize, Baicheng has great development potential. Its ambitious urban expansion plan with the emphasis of industrial and commercial developments is a practical route map to realize its potential. The proposed city infrastructure project is an important step forward to make the city’s bright future come true. .
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Figure B3 - The Proposed 9 roads (highlighted in blue, strategic roads highlighted with thicker blue line)
111. Baicheng located at a strategic point along the Inner Mongolia and Northeast China Corridor. The city has convenient road and rail transport links with other major cities in the region. Four rail lines (Bai-A Line, Chang-Bai Line, Tong-Rang Line, and Ping-Qi Line) and two major highways (G12 and S207) interconnects in Baicheng. Two provincial capital cities, Changchun and Harbin, are within 230 km radius of Baicheng.
112. Two railway lines of Bai-A Line and Chang-Bai Line were proposed to be upgraded and extended, which will greatly improve the freight transport capacity of these railway lines in future and thus benefit Baicheng’s industrial developments.
113. A high speed rail going through Baicheng was proposed. The high speed will start from Huichun (border city near Russia) in the east and end to Aershan (border city near Mongolia) in the west. The proposed high speed rail will significantly reduce the travel time by rail from previously over 6 hours from Baishan to Changchun to about 1 hour.
114. An airport located about 16.5 km away from Baicheng City was proposed under “National Eleventh Fiver-Year Plan”. The airport was expected to have the throughput of 203,000 travelers, 1,019 tons freight and 2,459 flight sorties per annum. The airport will immediately open the door for Baicheng to directly interact with other major cities in China and globally. These are undoubtedly a very important driving force to raise Baicheng’s position in terms of regional, national and international importance
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115. Currently, the density and grade of Baicheng urban road system are noticeably lower than the average level of Jilin Province. Nine roads projects are proposed to be constructed in the western area of the city. These roads will conveniently link the west city area with other parts of the city, and also connect new residential areas with the proposed employment sites. The improvement of city infrastructure would then enable the proposed industrial and commercial development projects in Economic Development District (EDD) and New Eco-city District (NED) and create thousands of job opportunities.
116. These nine roads will become critical infrastructures of west city area and key to the success of the Economic Development District (EDD) and the New Eco-City District (NED). The construction of strategic new roads and associated facilities will increase the synergy and create a rational link between the city districts, and also connect new residential areas with the proposed employment sites. Moreover it will open well planned urban areas, providing new residential and mixed-use function areas to accommodate future residents and economic activities and organize the future urban growth. The improved road system and other infrastructures will enhance Baicheng’s attractiveness and increase its competitiveness of attracting industrial and commercial investments.
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C. FINANCIAL ANALYSIS
C.1 Introduction 117. The financial analysis will cover 4 components in Baishan and Baicheng Cities of Jilin Province, the People’s Republic of China (PRC) including integrated solid waste management (ISWM) in Baishan; Improved water supply system in Baishan; improved urban road network and improved municipal services in Baicheng, and institution and capacity strengthening.
118. The following are the general assumptions:
• The Project is analyzed over a 20-year period excluding construction period, and the residual value is not considered. • Demand projections are adopted in the FSR. • Foreign exchange rate of CNY6.08 per US$1.00 is used when converting foreign exchange costs to their local currency equivalent, as the average level from 2014 to 2019. • Operation and maintenance costs include personnel salaries and welfare, plant maintenance costs, administration, insurance, taxes, power cost, and other expenses. • Capital cost includes the base cost of the revenue generating subcomponent, including the investment cost for the associated water supply network pipelines, and physical contingencies but excludes price contingencies and financial charges during development (as a result of debt financing). • The revenues from the revenue-generating component will be derived from the water sales. • Net cash flows from the component were determined after income taxes. Income tax was calculated at 25% and sale tax at 6%. • Expenses also include depreciation at 4% of net fixed assets. For the interest during construction, 5-year swap rate is used (adding maturity premium and plus ADB margin of 0.4%, maturity premium of 0.1%); for projection of debt service, 20-year swap rate is used and a 20-year repayment period for the ordinary capital resources (OCR) loan. • Interest during construction is capitalized. Amortization period remains 25 years including 5-year grace period. Repayment is assumed to be in straightline method starting in 2020. • Technical data and costs were obtained from the revised project feasibility study report (FSR) to form the basis of the financial analysis and FIRR.
119. Financing costs include capitalized interest and commitment fee charges. Interest during construction has been assumed at 2.03% which comprises the London interbank offered rate of 1.66% plus ADB margin of 0.4%. Front end fees are assumed to be waived. Interest rates and terms are as follows:
Total Period Interest Commitment Fee Interest Commitment Grace of the Loan Capitalized Capitalized into Rate Charge Period (in years) into Loan Loan ADB Loan 2.03 % 0.15% 25 5 YES YES
120. The project investment cost is estimated at $398.82 million, including taxes and duties of $18.05 million and capacity and institutional strengthening of $3 million. The total cost includes physical and price contingencies, interest during construction. The indicative project investment plan is summarized below.
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Table C1 - Project Investment Plan ($ Million) Item Amount A. Base Costa Urban Road and Municipal Service in Baicheng 238.40 Improved Water Supply in Baishan 61.70 Efficient ISWM in Baishan 29.43 Institutional Capacity Strengthening 3.00 Subtotal (A) 332.53 B. Contingencies b Physical Contingency 26.60 c Price Contingency 2 9.94 Subtotal (B) 56.54 C. Financial Charges During Implementationd 9.74 Interest During Implementation 9.10 Commitment Charge 0.64 Total (A+B+C)e 398.82 a in May 2013 prices. b Computed at 8% for civil works and equipments costs. c Computed at 1.9%(2013),2.2%,1.9%,1.8%and 1.8%(2014, 2015, 2016,and 2017) on foreign exchange costs and 3.0%(2013) ,3.0%(2014, 2015 ,2016and 2017) on local currency costs and includes provision for potential exchange rate fluctuation. d Includes interest during construction and commitment charges. Interest during construction has been computed at the five year forward Libor rate plus a spread of 0.4%. e Includes taxes and duties of US$10.54 mil.
121. The Government of the PRC has requested a loan of $150 million from ADB’s ordinary capital resources to finance 37.61% of the project cost under ADB’s London interbank offered rate (LIBOR)-based lending facility. The loan will have a 25-year term including a grace period of 5 years, an interest rate determined in accordance with ADB’s LIBOR-based lending facility, a commitment charge of 0.15% per annum, and such other terms and conditions set forth in the draft loan and project agreements. The loan will cover civil works, equipment, Water resources protection, Environment and sanitation awareness building and Institutional strengthening and capacity development.
Table C2 - Financing Plan ($ Million) Source Amount % Asian Development Bank 15 0.00 37.61 Local Governments 248.83 62.39 Baicheng Municipal Government 187.85 47.10 Baishan Municipal Government 60.99 15.29 Total 398.82 100.00
122. To compute the WACC, it is assumed that the financing sources would consist of both project cities’ equity contributions and ADB foreign currency loan. The Ministry of Finance would re-lend the funds from ADB with the same duration, 25 years with a five-year grace period. The loan rate would be London interbank offered rate (LIBOR) plus ADB margin (of 0.40%) and maturity premium of 0.1%. The cost of equity is calculated at 7.00%, assuming a risk free rate of return of 6.0% plus a 1.0% margin. Income tax is assumed at 25%, with the
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WACC calculated on an after tax basis. The other assumptions are domestic inflation rate of 3.0% and international inflation rate of 1.90%. The WACC for the subcomponent is 2.42%.
Table C3 - Weighted Average Cost of Capital
A. Financial component ADB Government Domestic Loan Equity Total B. Amount (CNY million) 225.08 232.20 0.00 0.00 457.28 C. Weighting 49.2% 50.8% 0.0% 0.0% 100.0% D. Nominal cost 3.85% 7.00% 6.30% E. Income tax rate (preferential tax rate) 25% 15% F. Tax-adjusted nominal cost [D x (1 - E)] 2.89% 7.00% 5.36% 0.00% G. Inflation rate 1.89% 3.07% 3.1% H. Real cost [(1+F) / (1+G) - 1] 0.98% 3.81% 2.22% 0.00% I. Weighted component of WACC 0.5% 1.94% 0.00% 0.00% Weighted average cost of capital 2.42% ADB= Asian Development Bank; WACC = Weighted Average Cost of Capital Source: TA Consultant’s estimates.
123. The projected financial internal rate of return (FIRR) for Baishan water supply subproject is calculated at 6.64%, which is higher than the WACC at 2.42%. At 10% discount rate, the net present value is negative CNY235.86 million. The project is most sensitive to capital cost overrun of which FIRR falls to 5.46% if the revenues are reduced by 5%.
Table C4 - FIRR and Sensitivity Analyses
Cases FIRR NPV(CNY million) Base Case 6.64% 235.9 (i) Revenues reduction 5% 5.46% 152.7 (ii) Investment cost overrun 5% 5.72% 175.9 (iii) O&M Cost Increase 10% 6.05% 186.7 (iv) Delay in Implementation one year 6.19% 194.8 (v) Combination of (i), (ii), and (iii) 4.85% 125.7
124. Based on generally accepted criteria employed by the World Bank, the counterpart contributions are considered to be affordable by the city if the required annual counterpart contribution does not exceed approximately 15-20% of the projected total annual construction budget. However, it is not possible to identify the construction or investment sub-component of the city budget as reporting is by sectors and includes both recurrent and investment expenditure under the same heading. Therefore the annual contribution is compared with overall annual city expenditure and also as a share of infrastructure projects, which are financed by the municipality.
125. In the case of debt service there is no accepted criteria of the level of debt service that would be regarded as affordable, but where contributions exceed some 2.5% of city local revenue base or 1.0% of total city revenues or expenditures then the debt service may be a cause for concern and crowd out other programs, especially those targeted to the poor.
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126.SMG B will provide about CNY138.8 million counterpart funds during implementation. The annual counterpart funds comprise 0.08% to 0.61% of projected revenues during the implementation period. On the other hand, the O&M for the non-revenue generating component, and the debt service are about 0.01% to 0.02% of annual projected revenues till 2030, and represents reasonable proportion of the government expenditures at the operating period. Likewise, BCMG will provide about CNY1142.7 million counterpart funds during implementation and the annual counterpart funds comprise 0.72% to 3.18% of projected revenues during the implementation period. The O&M for the non-revenue generating component, and the debt service are about 0.03% to 0.23% of annual projected revenues till 2030. The analysis indicates that the Project should have sufficient funds available for counterpart funds during implementation and O&M costs for non-generating components and debt service during operation. This indicates acceptable fiscal risk since it is expected that fiscal revenues of the local government will grow in line with economic development, providing more resource mobility for the government to finance the proposed project components.
C.2 Financial Sustainability Analysis for Non Revenue Generating Subcomponent
a. Introduction
127. Financial sustainability analysis has been prepared in accordance with Asian Development Bank (ADB) Guidelines for the Financial Management and Analysis of Projects.6 An assessment of financial performance has been completed for the BSMG and BCMG. The objectives of this report are to:
(i) Review the past revenue generation capacity of BSMG/BCMG and the share of revenues from upper level government namely Municipal and State sources over the period 2007 to 2012, and the level of expenditure that this supports; (ii) Based on the revenue generating capacity of BSMG/BCMG in the past assess the financial capacity of providing in total counterpart funding over 2013 to 2017 from BSMG/BCMG; (iii) Assess the governmental ability to meet debt service on the ADB loans and the O&M for the three non-revenue generation components.
128. Based on generally accepted criteria employed by the World Bank, the counterpart contributions are considered to be affordable by the city if the required annual counterpart contribution does not exceed approximately 15-20% of the projected total annual construction budget. However, it is not possible to identify the construction or investment sub-component of the city budget as reporting is by sector and includes both recurrent and investment expenditure under the same heading. Therefore the annual contribution is compared with overall annual city expenditure and also as a share of special infrastructure projects, which are municipal or State sponsored projects financed by upper level government. It could be argued that the current project is a special infrastructure project.
129. In the case of debt service there is no accepted criteria of the level of debt service that would be regarded as affordable, but where contributions exceed some 2.5% of city local revenue base or 1.0% of total city revenues or expenditures then the debt service may be a cause for concern and crowd out other programs, especially those targeted to the poor.
b. Historical Revenues and Expenditures
6 ADB. 2005. Financial Management and Analysis of Projects. Manila.
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130. The historical financial performance of BSMG/BCMG is analyzed to determine whether it can provide the required counterpart funds during the construction period and necessary funds for O&M and debt service during the operating period. In addition, annual average growth rates (AAGR) of revenues and expenditures during the project period are calculated. The average income growth rate is 16% per year. The same growth rates are used in projecting the revenues of BSMG/BCMG during the implementation of the Project. The sources of income are from tax (VAT, business tax, income tax, resource tax, real property tax) and non-tax revenues and from subsidies and/or direct transfers from the municipal and the regional governments. On the other hand, expenditures are categorized into general public services, education, public safety, personnel welfare, environmental protection, agriculture, forestry and water and transportation. Table C6 shows that the revenue of BSMG has grown at an average rate of 31% over the last six years to CNY5229.9 million in 2012 from CNY1377.3 million in 2007. Over the same period, expenditures have grown at 27% per annum.
Table C6 - Revenues and Expenditures For BSMG (2007-2012) Item 2007 2008 2009 2010 2011 2012 Growth Rate
Revenues (CNY, million) Municipality Fiscal 1377.26 1930.3 3133.03 4073.59 4324.99 5,229.90 31% Revenues 1. General Budget 1,096.70 1,558.68 1,977.69 2,527.08 3,553.08 4,363.04 32% Revenue 2.Funds Revenues 280.56 371.62 1,155.34 1,546.51 771.91 866.86 25%
Provincial transfers 133.13 191.79 213.90 225.29 284.79 328.50 20% Central Government 860.82 1,261.53 1,445.76 1,572.28 1,960.99 2,029.56 19% Transfers Total 2,371.21 3,383.62 4,792.69 5,871.16 6,570.77 7,587.96 26% Expenditures (CNY million) General Public Service 777.66 945.76 1,164.50 1,330.63 1,469.72 1,328.43 11%
Public Safety 257.63 338.05 438.05 548.02 589.40 788.87 25%
Education 716.65 890.03 1,147.94 1,171.97 1,481.97 2,420.13 28%
Science and Technology 20.93 30.35 27.87 52.11 48.99 69.51 27% Social Insurance and 1,005.93 1,364.39 1,995.20 1,966.25 2,229.18 2,313.26 18% Employment Medical and Sanitation 211.20 294.29 532.14 764.70 913.44 937.07 35%
Environmental Protection 57.75 137.06 214.40 562.51 959.87 708.35 65% Agriculture, Forestry and 401.23 531.10 736.57 988.04 1,232.01 1,358.44 28% Water Affairs Transportation 128.30 170.41 221.07 510.54 673.65 550.55 34%
Others 108.56 101.77 163.88 1,246.53 2,045.16 2,314.33 84%
Total 4,531.10 6,330.96 9,005.81 11,911.34 13,927.93 15,199.33 27%
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Surplus -2,159.8 -2,947.34 -4,213.12 -6,040.18 -7,357.16 -7,611.37 AAGR – annual average growth rate. Source: Baishan Finance Bureau.
c. Fiscal Affordability Assessment
131. The average annual growth rates derived above are utilized to forecast the government revenues and expenditures for the coming years. Although the revenue of BSMG will very likely continue to increase at double-digit growth rate, it is nevertheless assumed that the fiscal revenue will grow at 7.5% to keep the analysis conservative. The financial sustainability analysis involves comparing the estimated counterpart funds with the government revenues during the implementation period, and comparing the necessary supporting funds disbursed annually, including the O&M for two non-generating components, and debt service with the government revenues during the operating period.
132. BSMG will provide about CNY220 million counterpart funds during implementation. The annual counterpart funds comprise 0.08% to 0.61% of projected revenues during the implementation period. On the other hand, the O&M for the non-revenue generating component, and the debt service are about 0.002% to 0.377% of annual projected revenues till 2030, and represents reasonable proportion of the government expenditures at the operating period. The analysis indicates that the Project should have sufficient funds available for counterpart funds during implementation and O&M costs for non-generating components and debt service during operation. This indicates acceptable fiscal risk since it is expected that fiscal revenues of the local government will grow in line with economic development, providing more resource mobility for the government to finance the proposed project components. The detailed fiscal impact analysis of the provision of counterpart funds, debt service and operating and maintenance to the proposed subcomponents is shown in Table C7.
Table C7 - BSMG Fiscal Affordability Assessment
Item 2014 2015 2016 2017 2018 2019 2020 2024 2025 2030 Revenues (CNY, million) Municipality Fiscal 6044 6497 6984 7508 8071 8677 9327 12456 13391 19224 Revenues 1. General Budget 5042 5420 5827 6264 6733 7238 7781 10392 11171 16038 Revenue 2.Funds Revenues 1002 1077 1158 1244 1338 1438 1546 2065 2220 3186
Provincial transfers 471.45 507 545 586 630 677 728 972 1045 1500 Central Government 2860.21 3075 3305 3553 3820 4106 4414 5895 6337 9098 Transfers Total 9375 10079 10835 11647 12521 13460 14469 19323 20772 29821 Expenditures (CNY million) General Public 1646 1832 2039 2269 2526 2811 3129 4802 5345 9131 Service Public Safety 1234 1544 1931 2416 3021 3779 4727 11572 14475 44324
Education 3938 5023 6407 8173 10425 13298 16962 44907 57282 193443
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Science and 112 143 182 231 293 373 474 1239 1575 5232 Technology Social Insurance and 3228 3813 4503 5320 6284 7422 17069 20162 2473 6708 Employment Medical and 1701 2291 3086 4158 5601 7545 10165 33478 45100 200103 Sanitation Environmental 878 974 1081 1200 1332 1479 1641 2492 2766 4661 Protection Agriculture, Forestry 2213 2824 3604 4599 5870 7491 9560 25363 32369 109590 and Water Affairs Transportation 986 1319 1765 2362 3161 4231 5661 18154 24293 104244
Others 2851 3165 3513 3900 4329 4805 5333 8097 8987 15144
Total 22643 27831 34361 42603 53036 66275 83117 187748 238653 822408
Surplus -13268 -17752 -23526 -30956 -40515 -52815 -68647 -192912 -249385 -903660
S ummary
Annual counterpart funds 11 44 66 55 33 11 (CNY million) Counterpart funds as a % of 0.12% 0.44% 0.61% 0.47% 0.26% 0.08% revenues Annual debt service, and O&M for non-generating 35.31 35.13 34.95 34.77 34.59 34.36 34.18 1.71 1.53 0.63 subprojects Annual debt service, subsidy and O&M for non-generating 0.377% 0.349% 0.323% 0.299% 0.276% 0.255% 0.236% 0.009% 0.007% 0.002% b j t % f
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D. ECONOMICS ANALYSIS
D.1 Introduction 133. Baicheng municipality was established in 1993 and gained rapid economic growth. The GDP grew from CNY3.428 billion in 1993 to CNY 61.54 billion in 2012, or 17.8 times of that in 1993. Capital investment grew from CNY1.1 billion to CNY46.7 billion, or a 43 times increase. Fiscal revenue increased from 0.25 billion to CNY4.86 billion in the same period of time. At the same time, infrastructure developed considerably, e.g., a total of 418 km of urban roads were constructed, and over 40 km of sewer pipeline networks were either newly built or renovated, while the sewage treatment ratio increased from 26.4% to over 60%. By the end of 2012, urban residents’ per capita disposable income reached CNY 19500, a 10.2 times increase of 1993 level. Rural residents’ net income reached CNY6200, or 7.9 times of 1993 level.
134. In the most recent 5 years, Baicheng’s annual GDP growth rate sat at 19%, and the net growth ranked the first in Jilin for two consecutive years. Per capita GDP reaches CNY26100, or 2.8 times of the value in 2006. Annual total fiscal revenue growth was 22%. The city implemented 726 projects with single project investment value over CNY30 million. Foreign capital utilization reached CNY124.7 billion in the past 5 years, or 4 times of the previous 5 year span.
135. The city of Baishan experienced similar growth pattern. In 2012, total GDP of Baishan was CNY60.06 billion, or 12.4% growth at constant price. Per capita GDP was CNY46853. Total budgetary fiscal revenue was CNY6.72 billion, an increase of 15.9%. Foreign direct investment continued at a fast pace, with US$178.6 million, an increase of 16.3%. In 2012, per capita disposable income for the urban residents was CNY21282, an increase of 15.1%.
136. However, both cities are growing and face urgent needs for investments on their infrastructures. The proposed project will deal with the demand for solid waste management in both cities, urban road networks in the new area in Baicheng, and water supply in Baishan. The project will deliver four outputs:
(i) Efficient Integrated Solid Waste Management (ISWM) System in Baishan & Baicheng; (ii) Improved Water Supply Management in Baishan; (iii) Improved Coverage of Urban Roads and Municipal Services in Baicheng; (iv) Improved Capacity and Institutional Arrangement.
D.2 Justification 137. The total MSW amount increased from 31.3 million tons in 1980 to 164 million tons in 2011. Currently, waste composition in China is dominated by a high organic and moisture content, since the concentration of kitchen waste in urban solid waste makes up the highest proportion (at approximately 60%) of the waste stream. According to China Statistical Yearbook series, the total amount of MSW collected and transported was 164 million tons in 2011, of which 80% was treated and 76.9% of the treated SW was landfilled, 19.9% was incinerated and 3.3% in other category.
138. Currently, there are about 660 cities in China that produce about 160 million tons of municipal solid waste annually and, account for 28% of the world’s MSW each year. In 2004, China surpassed the United States as the world’s largest waste generator. China’s per capita waste generation rate is 0.5 to 1.0 kg/ capita/day, while a typical developed country generates 1.43 to 2.08 kg/capita/day. The MSW generation rate also varies among different cities in China, e. g., with rates of about 1.00 kg/capita/day in Beijing in 2011, 0.92 kg/capita/day in Shanghai, 0.85 kg/capita/day in Jilin’s urban areas, and only 0.41 kg/capita/day in Jiangxi’s cities.
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139. For residential areas, there are two type of urban solid waste collection: collection at roadsides and household collection. Road- side waste collection is a method whereby residents sort recyclable items into the specific collection containers offered by the local authorities. With fast urbanization, high- rise buildings are appearing in large numbers. Now residents are advised to place their waste in bags and deposit their garbage in the appointed garbage bins outside the residents’ house for collection under the new system, and then the waste is transported by truck to a transfer station. This system is usually carried out by a community or business entity in China.
140. Solid waste disposal and/or collection/treatment fee levies are extremely low in China and could barely cover costs and only offset a small fraction of collection, transport and treatment cost for the safe disposal of waste. Moreover, existing policies in China are based on a flat rate charging systems regardless of the use of the service and thus present no economic incentives for waste reduction and recycling for waste generation. For example, in many of Jilin’s cities, the MSW fee per household is now 5 RMB/month (US$0.8/month). It is documented in the literature that the construction cost of municipal solid waste disposal establishments in was far more than the fees collectable. Such a strict flat rate approach performs poorly as it is contrary to the “polluter pays” principle and is unable to create economic incentives for waste producers to reduce and recover waste. On the other hand, although a weight/ volume-based Pay-As-You-Throw (PAYT) system may provide incentives to reduce waste generation, it will likely increase the authorities’ administrative costs and cause illegal dumping. It is concluded that pilot projects and successful experience adopting PAYT system should be promoted.
Table D1 - China’s municipal solid waste collection and treatment for selected areas
Region per capita Collected Treated Treatment per capita 03 -11 Per capita
SW in 2011(kg) (10k tons) (10k tons) Landfill Incineration Others Ratio (%) SW in 2003 (kg) growth%) rate(
National 0.65 16395.28 13089.64 10063.74 2599.28 426.62 79.70 1.09 - 0.40 Beijing 1.00 634.35 623.20 429.57 94.46 99.17 98.24 1.49 - 0.33 Liaoning 0.85 876.00 704.72 704.72 80.45 1.10 -0.22
Jilin 0.92 493.00 242.62 197.71 44.91 49.21 1.33 - 0.31
Heilongjiang 1.01 796.64 348.06 338.68 9.38 43.69 1.63 - 0.38
Shanghai 0.92 704.00 429.69 362.71 59.23 7.75 61.04 1.54 - 0.40 Guangdong 0.78 1978.80 1449.01 1094.19 326.42 28.40 72.12 1.08 -0.28 Source: China Statistical Yearbook series
141. Both project cities are lacking sound waste collection systems, leading small dump sites within the urban area, contaminating the surface and ground waters, and the air quality. There is also no systematic waste sorting, retrieval of landfill gases, and minimal effort in MSW reduce, reuse and recycle.
142. The proposed project also includes a water supply subproject in Baishan city. Water supply in Baishan relies on surface water sources (Qujiaying reservoir) with a current capacity of 60,000 tons per day and shallow groundwater sources at 24,000 tons capacity. However the reservoir is outdated and needs urgent rehabilitation. The groundwater suffers from severe pollution and must be phased out as early as possible. The current scheme is also inadequate to serve the population and cannot ensure 24-hour water supply service. The non-revenue water level is surprisingly high, i.e., estimated at around 65%. Xibeicha reservoir is a suitable alternative source and the proposed project will finance the treatment facility of 40,000 m3/day with pipeline networks.
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143. Due to the rapid urbanization process, the exiting urban area at the center of Baicheng City cannot meet the urban development needs. A new urban area in the west of the present city is to be developed to facilitate urbanization. According to Baicheng urban development master plan, the western and southern parts of the city will be the new urban center to host the municipal government, as well as the new cultural and residential center. In the past several years, the BMG has already invested and built the new areas by constructing some of the new urban roads and municipal facilities. However, the urban road network is still largely incomplete with the missing links and sections. The proposed project will build the remaining urban roads and bridges, water supply, sanitary sewers, power supply, stormwater drainage, public transport, street lightings, etc.
D.3 Demand Analysis 144. Daily solid waste generation is about 322 tons in Baishan, or 1.18kg per head, based on the urban population of 273 thousand in Baishan. Currently there is a sanitation landfill with an area of 4.28 ha, and daily treatment capacity of 350t. However, due to low design standard and lack of funds and experience, breakages occur in bottom and sides of the impermeable membrane and causing contamination of the downstream water bodies by the leachate. Local residents blockaded the entrance of the landfill and the waste transfer trucks cannot enter. Thus currently solid waste is dumped at Nanshan landfill which is already abandoned. The 15 garbage collection and transfer stations are in poor conditions and rehabilitation is needed. Thus, the proposed project will rehabilitate and extend the existing sanitary landfill with a total capacity of 350 wet tons per day; rehabilitate 15 existing transfer stations and procurement of compressible waste containers, waste transfer vehicles, collection trucks etc.; and procure waste collection, street cleaning and snow removal equipment.
Table D2 - Solid waste generation projection for Baishan
Year Population (10k) Per capita SW (kg/capita/d) Daily SW generation (t/d) 2011 27.30 1.18 322.14 2012 28.06 1.16 325.54 2013 28.85 1.14 328.89 2014 29.66 1.12 332.16 2015 30.49 1.10 335.36 2016 31.34 1.08 338.48 2017 32.22 1.06 341.51 2018 33.12 1.04 344.45 2019 34.05 1.02 347.28 2020 35.00 1.00 350.00
145. Baicheng has a total urban population of 350 thousand in 2012. Its daily solid waste generated is 420t and per capita level is 1.2 kg. By 2020, it is projected that the urban population will be 509 thousand and daily per capita solid waste will be reduced to 1.0 kg. The water and organic content is high for domestic solid waste for Baicheng. Leachate is therefore a serious problem. The 4 operating garbage collection and transfer stations are very inefficient and the equipment and vehicles are out-of-date. The proposed project will seal the existing landfill site; upgrading the MSW stations, and purchase treatment facilities. In particular, the north side new landfill will need operating vehicles, and the south side needs upgrading of the leachate treatment plant, gas collection and treatment, and surface sealing. 10 new mobile waste compaction transfer stations are to be constructed and the associated compaction vehicles are to be procured. Similar to Baishan, equipment for waste collection, street cleaning and snow removal are to be procured under the project.
Table D3 - Solid waste generation projection for Baicheng
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Year Population Per capita Daily SW Collection Target Treatment (10k) SW generation rate (%) treatment volume (kg/capita/d) (t/d) ratio (%) (t/d) 2012 35 1.2 420 95 87 365.40 2013 35.8 1.16 415.67 95 88 365.79 2014 36.7 1.13 414.33 95 89 368.76 2015 37.5 1.1 412.5 0 100 90 371.25 2016 40.18 1.08 433.94 100 91 394.89 2017 42.86 1.06 454.32 100 92 417.97 2018 45.54 1.04 473.62 100 93 440.46 2019 48.22 1.02 491.84 100 94 462.33 2020 50.9 1 509 100 95 483.55 Average 442.32 403.06
146. There are four water sources for Baishan water supply. Qiujiaying Reservoir can provide a steady water supply to the city. The water supply capacity is 100,000 m3/d, and currently it supplies 80,000 m3/d water for Baishan. The other water sources are Pearl Gate (Zhenzhumen Gate), Kucanggou, and Jinying, with the capacities of 9,000 m3/d, 5,000 m3/d, 10,000 m3/d respectively, all of which are ground water sources. It is a consensus that due to severe groundwater pollution, groundwater sources are to be phased out. The following table, adapted from the FSR, shows the projection of maximum daily domestic water consumption in Baishan, both in per capita and aggregate terms.
Table D4 - Composite domestic water consumption 2015 2020
Planned urban population (10k) 32.1 34.5
Water supply ratio (%) 100 100
Comprehensive daily domestic 190 210 water consumption (L/capita/d)
Comprehensive daily domestic 5.49 7.25 water consumption (10km3/d)
147. The FSR assumes that the comprehensive daily domestic water consumption per capita is averaged at 200 liters which implies total water demand to be at 84.9 kt (thousand tons) per day in 2015 and 116.7 kt in 2020. The second approach is the maximum daily per capita domestic water consumption approach which assumes maximum daily per capita water consumption is 350l in 2015 and 400l in 2020. With proper conversion, the average daily total water demand is then 112.35 kt in 2015 and 138.0 kt in 2020. The third approach is based on the construction areas which results a projection of daily total water demand of 118.8 kt in 2015 and 133.4 kt in 2020. The average of the three approaches yields a water demand of 105.4 kt in 2015 and 129.4 kt in 2020.
148. Water demand projections are based on projected service area population, and current and future consumption. Assumptions include the following: (i) per capita water consumption assumptions specified above; (ii) annual population increase by 0.8% to 2.1% in different project areas; (iii) constant household size; (iv) 50% of households connected to water supply in first year of operation, 70% in the second year and 100% since the third years for all
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subcomponents; (v) non-domestic demand based on actual conditions; and (vi) losses at 30% of water production7.
D.4 Economic Returns 149. The base case EIRR calculation for Baicheng urban road infrastructure and service component is presented in the following table. At a 12% discount rate, the project is found to be economically viable. The NPV for the whole project is CNY 507.1 million and the base case EIRR for the whole project is15.5%, which exceeds the EOCC. The EIRRs for the Baishan Improved Coverage of Urban Roads and Municipal Service, Baishan Improved Water Supply Management, and Baishan efficient ISWM are 15.8%, 14.3%, and 15.2%. The sensitivity analysis shows that the project’s economic return is robust against negative impacts from benefit reduction, cost overrun and project implementation delay. The results of the sensitivity analysis are presented below.
Table D5 - Sensitivity Analysis Cases EIRR NPV(CNY million) Base Case 15.5% 507.1 (i) Benefits reduce 10% 14.3% 316.8 (ii) Investment cost increase 10% 14.5% 382.4 (iii) delay one year 14.3% 357.4 (iv) Combination of (i), (ii), and (iii) 12.1% 12.5
7 See in a recent ADB financed Project in China (http://www2.adb.org/Documents/RRPs/PRC/40634/40634-01-prc-ea.pdf)
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E. ENVIRONMENTAL ANALYSIS
E.1 Background 150. The consolidated Initial Environmental Examination (IEE) has been prepared by the PPTA Consultants for the proposed Jilin Urban Development Project (the project) in the cities of Baicheng and Baishan in Jilin Province, the People’s Republic of China (PRC). The IEE has been prepared in accordance with the requirements of the Asian Development Bank’s (ADB’s) Safeguard Policy Statement (SPS, 2009) on the basis of (i) the three domestic environmental impact assessment (EIA) reports provided by the two EIA Institutes, (ii) the three project Feasibility Study Reports (FSRs), (iii) the Planning EIA for Baicheng Economic Development Zone (BEDZ); (iv) social and economic assessments conducted under the project Preparatory Technical Assistance (PPTA), (v) two project cities’ master plans; and (vi) discussions between the ADB missions, PPTA consultants, Jilin Provincial Government (GPG) and two project city governments (PCGs).
151. The three EIA reports for the project components were prepared by two EIA institutes8 holding national Grade A and B certificates in accordance with the Management Guideline on Qualification of EIA Institutes (MEP Ministerial Order No. 26, 2005). The last domestic EIA has been completed by the end of December 2013 and will be approved by the provincial Environment Protection Department (EPD) before 28 February 2014. The PPTA consultants are assisting the finalization of the domestic EIAs by providing two rounds of comments in written. Table E1 - Expected Date for EIA Completion and Approval
Date of Final EIA EIA Approval No. Component Completion Date 1 Baishan Water Supply Plant and Pipeline 15 December 2013 28 February 2014 2 Baishan Municipal Solid Wastes Disposal Facilities 31 December 2013 28 February 2014 Baicheng Infrastructure and Solid Wastes Disposal 3 31 December 2013 28 February 2014 Facilities Source: EIA Institutes
E.2 Positive Impacts and Environmental Benefits 152. Direct project beneficiaries. The project will bring significant benefits directly to about 1.12 million urban residents in the project areas including 0.6 million population in Baishan City and 0.52 million in Baicheng City, by improving drinking water safety and coverage, urban infrastructures and supporting environmentally sustainable 3R MSW disposal, and increasing urban sanitation facilities. Of the total direct beneficiary populations, approximately 49.1% are women, 16.5% live under the local urban poverty lines of less than CNY280 per capita per month in Baishan and CNY297 in Baicheng, and 4% and 6.5% are ethnic minorities in the project cities of Baishan and Baicheng, respectively.
153. Carbon sequestration and GHG emission reduction. The GHG emission reduction benefits of the Baicheng Infrastructure Component are derived primarily from the following major interventions: (i) promoting enhanced energy efficiency through higher quality of road surfaces, grades and curve radii, improved road network connectivity, reduced road congestion and travel time; (ii) promoting public transportation and non-motorized transport (low carbon transportation modes) following the PRC programs on vehicle emissions, clean fuel regulations, and public transport priority policy to maximize the benefits; and (iii) the application of LED
8 China Northeast Municipal Engineering Design and Research Institute (Grade A EIA Institute) prepared the two EIAs for Baishan components while Jilin Xinghuan Environmental protection Company prepared the Baicheng one.
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9 street lights, which is expected to save 530,000 KWh per year of electricity, resulting in a CO2 emission reduction of 528 t/a10 as compared to conventional street lighting.
154. For the Baishan Water Supply Component, GHG emission reduction benefits are derived primarily from the following interventions: (i) in addition to the high elevation location of the WSP, construction of low carbon water supply system, resulting annual power saving and GHG emission reduction by 7.3 million kWh electricity and 5,685 tons of CO2 reduction, respectively11; (ii) reducing NRW from 65% to 30% will save 6.3875 million m3 clean water annually; (iii) city-wide water conservation planning and campaign through public awareness and institutional strengthening. The expected energy saving and GHG emission reduction are shown in Table E2. Table E2 - Energy Savings and GHG Emission Reduction by the Proposed WSP Item Unit Amount Increased water supply capacity by proposed WSPs m3/d 50,000 Annual water supply amount m3/a 18,250,000 Unit power consumption of proposed WSPs kWh/m3 0.048 Unit power consumption of national average kWh/m3 0.4 Annual power consumption for proposed WSPs kWh 876,000 Annual power consumption for equivalent WSP based on national kWh 7,300,000 average Annual power saving by proposed WSPs kWh 6,424,000 Equivalent standard coal saving tce 2,281 Annual CO2 emission reduction t/a 5,685 Annual water lose by 65% NRW m3/a 11,862,500 Annual water lose by 30% NRW m3/a 5,475,000 Annual water saving by reducing NRW from 50% to 30% m3/a 6,387,500 Source: calculated by the EIA Institute and the PPTA consultant 155. The integrated municipal solid wastes (MSW) components in both cities, by practice integrated “3R” principal, will construct the facilities of garbage collection, transferring, sorting, aerobic composting and expansion of the sanitation landfill, which will decrease amount of existing MSW that needs disposing, reduces the cost of disposal, and minimizes the negative environmental impacts associated with disposal. Waste reduction is the practice of creating less MSW or decreasing the toxicity of the MSW. The proposed public awareness program includes i) changing residents’ personal behavior. e.g., changing public buying habits reduces the amount of wastes, such as reducing use of plastic bags and other packing; ii) promote reuse and recycling of the MSW. Reuse is the process of using a certain material over again for the same purpose for which is was originally designed, or utilizing it for a different purpose. Recycling is where used wastes/materials are collected and utilized in the manufacturing of new materials, thereby saving on the quantity of virgin materials required to make these new products.
156. The MSW component’s benefits include that reduce or prevent GHG emissions, reduce the release of pollutants, reduce breeding of rats, flies, and other disease vectors, conserve resources, save energy and reduce the demand for waste treatment technology and landfill space. The components will improve the existing urban sanitation condition by enhancement of the city garbage collection and management program to improve the conditions of random dumping and littering in the two urban areas, which will also reduce the amount of wind-blown
9 Totally 484 LED street lamps will be installed on the proposed secondary and branch roads in Baicheng City, each LED lamp will save 1,095 kwh electricity annually in comparison with conventional high pressure sodium lamp. 10 A KWh electricity saving reduces 0.997 kg of CO2. 11 Calculated in comparison with the PRC national average power consumption in water supply sector and unit coal consumption for coal-fired power generation.
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dust, plastic bags and other debris that not only affects the residents’ health, but impact to the farmland, surface water and local sanitation condition. It’s estimated that about 830 wet tons of MSW will be collected and disposed every days after implementation of the components in the two cities.
157. Improved urban transport and municipal services. The infrastructure development components will help Baishan City establish efficient, safe, sustainable and environmentally friendly urban transport systems including public transportation facilities, bicycle lanes, pedestrian crossings, and traffic management facilities. The road and bridge constructions will also provide opportunities to complete and expand municipal services through the provision of pipelines and conduits for water supply, sewer collection, and stormwater drainage, which will benefit the local economies and residents’ health and safety.
158. The Baicheng infrastructure development components will expand the stormwater collection coverage in the project areas by 40 km212. The estimated amount of wastewater to be collected in the project’s municipal sewers amounts to 9,000m3/d. This wastewater will be delivered to the existing municipal wastewater treatment plants (WWTPs), where it will be treated to Class II effluent standard prior to discharge. The sewer system will reduce contamination of ground water, surface water and river ecosystems, and will result in cleaner and healthier living environment for the urban residents.
159. Increased institutional capacities. The project will provide the two project cities with an opportunity to establish, build up, and strengthen their institutional capacity for project implementation, water supply management, environmental protection and municipal solid wastes management. The proposed institutional development and capacity-building program under the project will help the project cities achieve this target. The project could also be a model for similar developments in other cities in Jilin Province and other provinces in the PRC.
160. Poverty and social benefits. The Project, by its nature of improving environment and public services, is classified as general intervention regarding poverty reduction impact. The Project will not entail disparities and inequalities between the poor and non-poor for their access to the project outputs and the access to the resultant social and economic benefits. However, the Project will benefit the poor in many ways, although indirectly in most cases. There will be many employment opportunities during the Project construction and operation in the project areas. The expansion of urban areas and better infrastructures will promote urbanization, further generate more employments. Most of the non-farm employment opportunities will undoubtedly go to locals, including the poor. Certainly, vocational training will be needed for the locals, especially the poor.
161. The project conforms to the principles of the Bellagio Declaration on sustainable development and climate change, which recommends that adaptation strategies, at a minimum, contain the following aspects: (i) a long-term perspective (building climate resilient infrastructure); (ii) requirements for fixing and adapting what already exists (such as road rehabilitation and maintenance, increase new low-carbon WSP to the existing water supply system), (iii) recognition of the need to respond to climate emergencies 13 (an emergency preparedness approach, such as flood and drought control), and 3R principal MSW to be conducted to achieve local environmental and ecological improvement.
162. During the feasibility study, and the PPTA phases, the potential impacts due to increase of extreme weather events such as rainstorms or drought were considered, including water balance analysis for Baishan water resource in extreme drought year, the design specifications for high-capacity stormwater-sewer separated drainage pipelines in Baicheng, which strengthen
12 Source: domestic FSR. 13 A flood warning system will be established in all project cities.
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climate change adaption. The Baicheng infrastructure components with improved road connectivity will be beneficial in coping with any increase in the incidence of natural disasters and extreme weather events that might result from future climate change. They will provide efficient and alternative routes for both emergency vehicles and escape.
E.3 Potential project impacts and mitigation measures 163. Potential project impacts, both positive and negative, were assessed during the domestic EIA, the CIEE and PPTA studies, through site visits, technical analysis, as well as consultations with government agencies and local communities, and dialogues among the EA, IAs, DIs, EIA institutes and PPTA consultants. During construction for all project components, potential impacts include soil erosion, noise and vibration, fugitive dust, construction wastewater and solid wastes, and community and occupational health and safety. Overall, construction-related impacts will be localized, short term, and can be effectively mitigated through the application of good construction practices and implementation of community and occupational health and safety plan.
164. During operation of the WSP, the most important issues are drinking water safety and water source protection. Management measures related to operation of the WSP includes strict maintenance of national water quality treatment processing measures and safety standards (as per PRC Drinking Water Quality Standard of GB5749-2006), technical capacity of the WSP to analyze at least 42 water quality parameters as required by national law to verify water quality, preparation of an emergency warning system against water contamination, and ensure that WSP staff are trained in water treatment and the emergency response. For adequately addressing the issues, a risk assessment was conducted, which identified a number of hazards and risks, and concluded that the control measures proposed in the FSR and the EIA Report would reduce the risks to acceptable levels.
165. The main potential adverse impacts during operation of the Baicheng road component include traffic noise and air pollution at some sensitive areas along the constructed roads including schools, hospitals, and residential areas. Noise and air quality predictions indicate that they will have minimal impact on these media, even in the long term. Other impacts and risks during operation include traffic safety caused by over speed, and potential accidental spills caused by hazardous goods transportation on the bridges and/or nearby the surface water bodies14.
166. The major environmental impacts resulting from the MSW components during operation include odorous gases (H2S and NH3), which will affect nearby residents, wastewater and noise from the proposed MSW collection and transfer stations and garbage sorting and composting sites, increased flying dust and traffic noise from collection vehicles, and socio-economic impacts. The mitigation measures include buffer zones (5-8 m-wide) and greening belts no less than 2 m will be installed around the all MSW facilities; and nearby residents will be consulted regularly on odor nuisance, and corrective actions will be defined if necessary.
167. Some of the major potential impacts could be avoided through improved project design. The components’ scope, the project sites, construction methods, sites of the WSP and the MSW facilities, road alignments and pipeline routes were adjusted to minimize land acquisition, resettlement and earthwork, and avoid impacts on local environment. Main adjustments to reduce the energy consumption for the water supply system were to select the site on higher elevation.
168. Environmental, health and safety (EHS) considerations combined occupational health and safety of staff/workers at the subcomponent sites and facilities during the operation, and
14 An artificial channel will be constructed in five years according to Baicheng master plan.
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community health and safety of people living nearby or potentially affected by failures or poor operation of facilities. These considerations include (i) a risk assessment of spillages of transported harmful substances and emergency response plan; (ii) odor impact on health of workers and residents nearby the MSW facilities, a comprehensive discussion and mitigation measures are proposed in Chapter V of the CIEE; (iii) the requirement for the facility operators to develop and implement environment, health and safety management plans; and (iv) the provision of capacity building support to develop and implement EHS plans and emergency preparedness and response systems for the two cities.
169. Mitigation measures and a monitoring program were defined for all identified impacts, and are included in the comprehensive EMP (as attachment of CIEE). The EMP sets out the procedures and plans to carry out mitigation measures and monitoring during sequential stages of the project including pre-construction, construction and operation. It consists of two major plans, one for implementing mitigation measures and the other for conduct environmental monitoring. For each impact, appropriate mitigation measures are described. Internal, external and compliance monitoring and supervision will be undertaken to ensure that environmental impacts will be minimized to acceptable levels.
E.4 Public consultation, information disclosure, and grievance redress mechanism (GRM). 170. Public consultation for the project components were conducted in accordance with the PRC Guideline on Public Consultation in EIA (2006) and ADB’s SPS requirements. Two rounds of public consultation were conducted, through questionnaire survey and public hearings with affected residents and related agencies. A total of 298 people and 7 agencies were consulted in the cities of Baicheng and Baishan, respectively. Consulted persons and agencies supported the project and believed it will benefit community health, local economy, living standards, local environmental and sanitation conditions, and effectively protect local water resources and improve the drinking water safety. Suggestions from consulted stakeholders were received, including quality control of construction of WSP and MSW facilities, good planning to avoid repeated excavation of underground pipelines, and no night-time construction to minimize noise impact to residents, etc.
171. A GRM has been developed in each of the project cities to receive, document, and resolve community concerns and to assist the project to maximize environmental and social benefits. The GRM was discussed during public consultations. Most consulted people believe the project GRM is an improvement compared with current practices.
E.5 Conclusions 172. The project supports the PRC’s Environmentally Friendly and Sustainable Urban Development Strategy and both Jilin Provincial and two project cities’ Development Master Plans. Potential environmental impacts during project construction and operation were analyzed and mitigation measures were proposed in the domestic EIAs and CIEE, including the EMP. It concludes that the potential adverse environmental impacts and risks associated with all the project components can be prevented, eliminated, or minimized to meet the relevant national standards and Jilin provincial regulations if the project EMP is fully implemented, particularly: (i) all mitigation measures and monitoring requirements are implemented; (ii) the environmental management and institutional capacities of JPPMO, the PIUs and IAs are strengthened through implementation of the project training and capacity building program; and (iii) in particular the associated Xibeicha Reservoir, as the water source of the WSP, should be completed on schedule (before the proposed WSP putting into operation) and its water quality should be strictly protected to meet the national Drinking Water Quality Standard of GB 5749- 2006, with the water quality parameters of 106.
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F. LAND ACQUISITION AND RESETTLEMENT
F.1 Introduction 173. The proposed project will support the development of Baishan and Baicheng Cities in Jilin Province, the People’s Republic of China (PRC) as livable and resource efficient medium- sized cities. At the present, the project consists of four components: (i) streamlining integrated solid waste management (ISWM) based on 3R principles in Baishan; (ii) streamlining ISWM based on 3R principles in Baicheng; (iii) improving water supply services in Baishan; and (iv) constructing urban roads with associated facilities in Baicheng.
174. According to the feasibility study reports (FSRs) provided by the project implementing units (PIUs) and field visiting conducted by the consultant team of this project preparatory technical assistance (PPTA), all of four components will involve land acquisition and resettlement (LAR) for the project construction. In accordance with ADB Safeguard Policy Statement (SPS) (2009) and relevant national laws and local regulations, the project implementing units (PIUs) shall prepare a resettlement plan (RP) or a due diligence report (DDR) for each component before the project implementation.
175. Based on the FSRs (updated versions based on comments of the PPTA team during the interim mission), Baishan PIUs prepared two draft RPs. One RP is for Component I, while another for Component III. Baicheng PIU prepared a draft RP for Components II and Component IV together because the Component II will involve land acquisition only. In addition, a due diligence report (DDR) on current landfill and a DDR for a constructing reservoir (water resource of Component II) in Baishan were prepared by Baishan PIUs, while a DDR for current landfill and garbage collection stations in Baicheng was prepared by Baicheng PIU.
176. The PPTA resettlement specialists received the updated RPs (Chinese version) on 18 December 2013, and quickly reviewed and discussed some questions with the city project management offices (PMO) or resettlement preparation agency. The PMOs still need to revise the draft RPs according to resettlement specialists’ comments. Resettlement specialists are revising English version of the draft RPs now.
F.2 Components of the Project and Impact Scope 177. Based on the updated FSRs, components I and IV will involve both land acquisition and house demolition, while components II and III will involve land acquisition only.
178. Resettlement Plan and Due Diligence Report for Component I: The component is (i) to expand an existing landfill to increase capacity of the landfill; (ii) to upgrade 15 garbage collection stations; and (iii) to construct a garbage comprehensive treatment plant for sorting garbage.. The component will acquire 82.25 mu collective land and demolish 5,270 square meters of rural houses with 236 square meters of simple structures, which will affect 129 people from 36 households. A DDR was prepared for the LAR of the existing landfill and 15 garbage collection stations. The DDR is one of appendixes of the RP of the component.
179. Resettlement Plan and Due Diligence Report for Component II: The component includes (i) constructing 12 garbage collection stations; and (ii) building a garbage comprehensive treatment plant for sorting garbage. The garbage sorting plant needs to acquire 28.5 mu of farmland of a state-owned farm. Due to it will involve land acquisition only, without any house or structure demolition, and the PIU of this component is the same to that of Component IV, one RP was prepared for both Component II and Component IV. The component will use the existing landfill and the newly constructed landfill during the project implementation and operation. Therefore, a DDR was prepared for LAR of the existing landfill and newly constructed landfill.
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180. Resettlement Plan and Due Diligence Report for Component III: The component include (i) installation of a pipeline from a reservoir to an existing water supply plant (WSP) and a WSP; (ii) construction of a new WSP; and (iii) installation of water pipelines from the new WSP to urban users. The component will acquire 72 mu collective land permanently and occupy 439.12 mu land temporarily. No houses will be demolished by this component. The component will affect 17 people from 4 households. In addition, the reservoir to provide water to the new WSP is under construction by another project. But because it is a project related to our project, a DDR for LAR of the reservoir project was prepared, which is one of appendixes of the RP of this component.
181. Resettlement Plan and Due Diligence Report for Component IV: The component is to construct or expand nine (9) urban roads with associated facilities in a new development area of Baicheng City. It will acquire 2,242.49 mu land permanently including 1,479.41 mu collective land and 763.08 mu state farmland. In addition, the component will demolish 52,318 square meters of houses including rural house area of 39,472 square meters and houses on state land of 12,846 square meters. The component will affect 1,768 people from 661 households including 197 people for 77 urban households.
182. The scope of land acquisition and resettlement by components is given in Table F1.
Table F1 - Scope of Land Acquisition and Resettlement Impacts Baicheng urban Baishan Baishan road with Unit solid waste water supply Total associated management services facilities Affected township/urban subdistrict No. 1 1 1 3 Affected village/community No. 1 2 8 11 Affected village groups No. 1 0 0 1 Permanent land Collective land mu 82.25 72.0 1,479.41 1,633.66 acquisition Farmland mu 30.67 2.5 754.59 787.76 House plot mu 11.83 0 550.53 562.36 Construction land mu 0 0 0 0 Enterprise land mu 0 0 0 0 Other land mu 39.75 69.5 174.30 283.55 State land mu 0 0 791.58 791.58 Acquisition of Rural house m2 5,269.7 0 37,446.91 42,716.61 residential 2 houses and Rural Shanty m 236 0 2,025.26 2,261.26 structures Urban house m2 0 0 11,729.19 11,729.19 Urban Shanty m2 0 0 0 0
Urban 2 m 0 0 1,116.66 1,116.66 Enterprise/shop Affected rural Acquisition of HH 3 4 357 364 households and farmland p erson 9 17 1,011 1,037 persons Acquisition of HH 27 0 266 293 residential houses p erson 100 0 639 739 Both land and HH 6 0 38 44 house acquisition p erson 20 0 118 138 Affected urban Acquisition of HH 0 0 77 77 households and residential houses persons p erson 0 0 197 197 Total of affected households and HH 36 4 661 701 persons person 129 17 1,768 1,914
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Total of enterprises/shops No. 9 0 9 18 person 41 0 309 350 Source: These are estimations based on Draft RPs.
F.3 Resettlement Principles and Entitlements 183. The RPs were prepared in compliance with the Land Administration Law of the People’s Republic of China (2004), Law of the People's Republic of China on Administration of the Urban Real Estate (2007 Revised); Regulations regarding the Administration of Urban Housing Removal (2001); Guidelines Regarding Urban Housing Removal Estimation, and other applicable guidelines. They were also based on local policies regarding LAR in Jilin Province, and the project cities, and ADB’s Safeguard Policy Statement (June 2009). Based on consultation with the local governments and affected persons (APs) and general practices in the project area, the IAs have adopted a set of resettlement principles and an entitlement matrix has been prepared for the Project.
184. Compensation for land acquisition, residential housing, and non-residential buildings (shops and enterprises) are paid to the affected owners or users. For land acquisition, compensation fees include land compensation, resettlement subsidy, and compensation for young crops and/or trees. The land acquisition compensation is rated according to the general practices in Baishan and Baicheng, respectively. The land compensation rate including resettlement subsidy for the Baishan components is 10,368 to 21,625 CNY/mu, while for the Baicheng components, it is 48,000 to 80,000 CNY/mu. For the Baishan components, 50% of the compensation is paid to village collectivity, while the remaining 50% is paid to affected farmers. For the Baicheng components, the affected farmers can get 99 or 100% of the compensation, while the village collectivity can get the remaining. The compensation for temporary land occupation is at the annual rate of CNY 1,296 per mu for the Baishan components with CNY 4,000 to 6,000 per mu of land restoration fee. The Baicheng components will not involve temporary land occupation. Compensation for crops, trees, other facilities, and temporary impacts are paid directly to the APs.
185. For affected rural households suffering house demolition, both property rights exchange for areas within the standard relocation area, and monetary compensation can be selected. The standards for housing replacement cost are as follows: for the Baishan component: CNY250 per square meter for brick-concrete structure; CNY150 per square meter for brick-wood structure; CNY100 per square meter for earth-wood structure, CNY30 per square meter for simple structure; for the Baicheng component: CNY 1,400 per square meter for brick-concrete structure; CNY 1,200 per square meter for brick-wood structure; CNY900 per square meter for earth-wood structure; CNY360 per square meter for simple structure. For the Baishan component, a transition subsidy of CNY5 per square meter per month will be paid for 12 months, for the Baicheng component, it is CNY6 per square meter per month for 24 months. In addition, households will also receive compensation at replacement costs for the loss of ground attachment and utilities.
186. A fund of CNY 0.314 million in a total of the components is set up to provide assistance to the vulnerable groups. Every relocated household that lives below local poverty lines will get the living subsidy. The subsidy will be delivered as following procedures: individual application, community verification, and the PMO confirmation.
F.4 Resettlement and Livelihood Rehabilitation 187. To minimize the resettlement impacts to APs and restore their living standards, detailed programs of restoration and relocation have been arranged in the RPs. People can choose the available programs according to their requirements. Based on the socioeconomic survey and analysis of the affected households, and local experiences in relocation and resettlement of
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similar projects, measures for resettlement and income restoration have been prepared. These measures include unified planning and provision of house plots by government and APs rebuild their new houses, unified resettlement housing, provision of economically affordable housing, distribution of living expenses to the APs, employment creation by the local safeguard network, skill training for the APs, employment related to the Project and non-monetary support and so on.
188. About 791.58 mu of state-owned land and 1,633.66 mu of village collectively- owned land will be compensated in cash based on the type of land loss. About 439.12 mu of land will be acquired temporarily for water pipe installation, for which there will be temporary livelihood losses and the compensation will be paid in cash. In terms of house relocation, 337 households will be provided unified resettlement houses in new communities based on “get same construction area to the area of houses to be demolished”. Local governments will build the unified resettlement houses. In addition, affected households also can select cash compensation. About 18 enterprises/businesses or stores/shops will suffer land acquisition and structure demolition impacts. They will be compensated for their lost assets, and relocation and transitional allowance will be paid to them. 350 employees will be affected but no employees will suffer from income losses because they will stay in their units.
F.5 Institutional Arrangement 189. The Jilin PMO will assume the overall responsibility for supervision of the implementation of LAR, including the planning, implementation, financing, and reporting of LAR. The IAs, Baishan and Baicheng PMO, respectively, will take the primary responsibility for the resettlement consultation, implementation, and timely delivery of entitlements. To ensure smooth implementation, the staff in charge of LAR will undertake training on resettlement implementation organized by the Jilin PMO. The resettlement implementation schedule has been prepared based on the preparation and construction timetable. The RPs will be updated based on the final design and detailed measurement survey, disclosed to affected persons in local language and submitted to ADB for review and approval prior to award of civil works contracts.
F.6 Cost and Schedule 190. The total estimate budget is CNY403.16 million, including: (i) costs for permanent land acquisition of CNY148.75 million (accounting for 36.9% in the total budget); (ii) compensation for temporary land occupation of CNY10.30 million (2.6%); (iii) compensation for houses demolition of CNY77.16 million (19.1%); (iv) compensation for ground affiliated facilities of CNY47.97 million (11.9%); (v) taxes of CNY75.02 million (18.6%); and (vi) contingency and other costs of CNY 43.96 million (10.9%).
F.7 Monitoring and Evaluation 191. A detailed plan for both the internal and external monitoring and evaluation (M&E) is included in the RPs. The Jilin PMO will submit an internal monitoring report quarterly to ADB. Furthermore, the Jilin PMO will employ an external resettlement monitoring institute or firm to establish an independent external monitoring organization in order to deliver a truly independent and unbiased external monitoring report. A baseline study of APs will be completed before the LAR begins and the first monitoring report will be submitted in June 2014. After that and until project completion, semi-annual monitoring reports will be prepared and submitted for ADB’s review during resettlement implementation and annually for two (2) years after completion of resettlement. The implementation plan of the RPs is summarized in Table F2. Table F2 - Implementation and Supervision Milestones
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Responsible No. Resettlement Tasks Target Deadline Agency 1. Consultation and Disclosure 1.1 Draft RP circulation and Cities and project IA and district governments 15c De 2013 endorsement Districts. 1.2 R IB distribution All affected villages and City and District ROs 31 Jan 2014 people 1.3 Consultations for updating RP Seriously affected IA, City and District ROs, 15 Sep - 15 Dec villages and people consultant 2013 1.4 RP distribution All affected villages City and District ROs 28 Feb 2014 2. R esettlement Plan & Budget 2.1. DMS DI, city & district ROs, 1- 5 Feb 2014 affected villages and APs 2.2 Updating RP based on DMS IA, consultant 6-b 10 Fe 2014 2.3 Approval of final RP & budget Baishan & Baicheng City 10-20 Feb 2014 Government 3. Capacity Building 3.1 Establishment of a resettlement IA, Local governments 31c De 2013 offices at various levels 3.2 ROs capacity building 30 staff IA, Consultant 31 Jan 2014 3.3 Designate village authorities All affected villages City and District ROs 1-r 15 Ma 2014 4. Commencement and Completion of Resettlement 4.1 Agreements with villages and All villages and APs District ROs Mar 2014 APs 4.2 Commencement All ROs Mar 2014 4.3 Disbursement of compensation District RO Mar 2014 to APs onwards 4.6 Completion All ROs 30 Aug 2015 5. Monitoring & Evaluation 5.1 Internal monitoring reports Si em -annual IA Jun and Dec reports each year 5.2 Contracting external monitor IA 15r Ma 2014 5.3 Baseline survey 10 -20% of seriously External monitor 30r Ma 2014 affected HHs (during and 50% affected villages shortly after DMS) 5.4 External monitoring report Si em -annual reports External monitor Jun and Dec each year 5.5 Resettlement completion report Rt epor External monitor 31c De 2017
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G. POVERTY & SOCIAL ANALYSIS
G.1 Introduction 192. The proposed Jilin Urban Development Project (Project) consists of four components: (i) streamlining integrated solid waste management (ISWM) based on 3R principles in Baishan; (ii) ISWM based on 3R principles in Baicheng; (iii) improving water supply services in Baishan; and (iv) constructing urban roads with associated facilities in Baicheng.
193. Baishan is rich in water resources. However, urban water supply insufficiency and water deterioration in recent years have become the main factors that restrict the socio-economic development and the improvement of people's living standards. Meanwhile, with rapid urbanization, solid waste management has become a major challenge in Baishan. Baicheng is facing insufficient infrastructures such as roads and solid waste management in its rapid urbanization process.
G.2 Rationale 194. The Project will benefit local residents, and social and economic development in: Promoting Employment and Facilitating Poor Alleviation -- Underemployment and unemployment are the key reasons that make urban residents poor. Improving Water Supply Services and Living Conditions -- Local residents, especially the poor will be provided with an access to better water supply services. Improving Solid Waste Management and Living Environment -- All the residents living in project areas will benefit gain access to a better living environment. Integrated Urbanization and Regional Economic Development – Urbanization process in both cities is accelerating.
G.3 Methodology 195. This Poverty and Social Analysis (PSA) will identify potential impacts of the Project on people in project areas, especially address impacts on poor, women, ethnic minority peoples, and prepare action plans to ensure these people can get the benefits from the Project. In order to (i) achieve the objectives of the PSA, (ii) have a better understanding of specific socioeconomic situations, (iii) facilitate analysis of the outcomes of the Project on local social development, and (iv) develop a reasonable assessment, the methods of literature study, secondary data analysis, socio-economic household questionnaire surveys, FGDs, stakeholder consultation workshops and key informant interviews have been used.
G.4 Socio-economic Profile of the Project Area 4.1 Project Areas and Beneficiaries 196. Baishan components of the Project will be implemented in Hunjiang and Jiangyuan districts of Baishan City. Hunjiang is the main project area. As for Baicheng, the solid waste management will be implemented in the entire district of Taobei, while the road network construction will be conducted in Xijiao Street, western Taobei. The project will affect a total of about 1.12 million people in the project areas, including 0.60 million people of Baishan components and 0.52 million people of Baicheng components.
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Figure G1: Map of Project Areas 197. Demographic data showed that in the last decade, the population in rural counties in Baishan and Baicheng had been shrinking, people kept migrating out of undeveloped rural areas to urban area of the cities (Hunjiang District and Taobei District), which accelerated the urbanization progress.
Table G1 - Demographic Data of the Project Areas Proportion Population Natural Urbani - Gender Province / Populatio (District) of the Density Population zation Ratio City/District n 2 Population in (person/km GrowthRate Rate (Female (million) the City(%)2000- ) in 2011 ˄‰˅ (%) =100) 2010 Jilin Province 27.5 147 2.9 -- 53.7 104.2 Baishan City 1.28 74 2.1 -- 68.9 104.0 Hunjiang 0.33 262 2.88 25.56 --28.13 78.9 103.6
Jiangyuan 0.27 188 - 0.08 19.78 --19.62 75.7 103.0 Baicheng 2 78 2.93 --- 38.9 102.1 City Taobei 0.52 205 1.94 23.94 --25.46 56.0 98.7 Source: Communiqués of Sixth National Census of the PRC, Jilin Province, Baishan, Baicheng City, 2010; Yearbook of Jilin, 2012
4.2 Economic Development, Income, Employment and Education
198. In the past few years, the economy of both Baishan and Baicheng had experienced fast growth. The annual growth rate of GDP, per capita disposable income of urban residents and the net per capita income of farmers in rural areas increased. Table G2 - Economic Development (2012) Increase of Per Capita GDP GDP over GDP Per Capita Ranking in Jilin Proportion of City/ That in (CNY 100 GDP Province Three Province Previous 2 million) (CNY) /and Industries 1 Year Nationally (%) Baishan 600.6 46,853 5 12. 4 8.9:59.6:31.5 Baicheng 615.4 30,571 9 12.2 18.0:47.7:34.3 Jilin 11,937.82 43,412 11 12.0 11.8:53.4:34.8 Province Source: Statistical Communiqués of Baishan, Baicheng, and Jilin Province, 2012 Note: 1.there are 9 prefectures and municipal cities in Jilin Province, and 31 provincial level regions in mainland China. 2: “three Industries” denotes primary industry (agriculture), secondary industry (manufacture, construction, etc.) and tertiary industry (transportation, services, etc.).
Table G3 - Per Capita Annual Income (2012) Annual Per Capita Annual Per Capita Disposable Income Increase Increase City/Province/Na Net Income of Rural of over 2011 over 2011 tion Residents Urban Residents (%) (%) (CNY) (CNY)
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Baishan 21,282 15.1 -- -- Baicheng 20,154 13.1 6,200 12.5 Jilin Province 20,208 12.3 8,598 14.5 National 24,565 12.6 7,917 13.5 Source: Statistical Communiqués of Baishan, Baicheng, Jilin Province and the national, 2012
199. Over the last decade, employment promoting had been the priority task for the local governments in both Baishan and Baicheng. The registered urban unemployment rates had remained low and stable (3.4% in Baishan and 3.8% in Baicheng in 2012). Both Baishan and Baicheng governments had invested heavily in education, and the education levels of the residents have been developed.
G.5 SOCIAL IMPACT ANALYSIS 5.1 Integrated Solid Waste Management System
200. The component will be implemented including (i) sorting kitchen garbage, recyclable garbage and other garbage at garbage resource in selected sub-districts by adding garbage trashes and transport trucks; (ii) upgrading the existing garbage collection stations by using new equipment; (iii) sorting garbage in a landfill by establishing a garbage comprehensive treatment plant; and (iv) expending an existing landfill in Baishan.
201. The insufficiency of equipment and underdevelopment of the entire solid waste system cause the following environmental problems: (i) Without sorting and sorting facilities, mixed domestic garbage are collected and transported to landfill directly; (ii) Lack of compression transport equipment results in secondary pollution during collecting and transferring, inefficiency and high cost of transfer; (iii) Organic perishable garbage are collected together with other domestic garbage, which makes mixed-garbage high moisture content, and further generates leaking, rotten smell and other sanitation problems; (iv) No garbage trucks can be sealed to avoid garbage falling around during transfer; and (v) Existing snow removal trucks and other facilities are not functional enough.
202. According to the estimated results provided by the economist of the PPTA, the average willingness to pay (WTP) for monthly solid waste fee is CNY27.51 per household. Therefore, as long as the solid waste management was improved effectively, raising solid waste rate properly on current level would be feasible. Exemption is suggested for poor households.
203. The project will benefit local people, including (i) environmental improvement and consequent living standard improvement; (ii) higher civilization level with increasing 3R popularization and public participation; and (iii) more opportunities of employment and income increasing directly by the Project and indirectly by economic growth promotion.
204. The negative impact of the project on local residents would include (i) land acquisition for new landfill in Baishan and for a garbage sorting plant in both cities; (ii) pollution of landfill on the residents living in the 5th Group of Baomin Farm in Baicheng; and (iii) the solid waste management fee might be raised.
205. In order to improve solid waste management in the project cities, it is important to open the management to residents. Suggestions to strengthen public awareness and public participation include (i) sorting garbage at resource; (ii) specially treat organic garbage and hazard waste; (iii) community management role; (iv) training sanitation workers; (v) 3R education in school; and (vi) necessary official award/penalty system. 5.2 Water Supply Management
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206. The component includes (i) building water transmission pipeline for Hunjiang District and Jiangyuan District, respectively; and (ii) building a water supply treatment plant and water distribution piping network for Hunjiang of Baishan.
207. Main complaints for existing water supply services in Baishan includes (i) low water pressure, (ii) bad water quality, (iii) water failure, and (iv) no notice in advance to stop water supply. Most of the local residents have the awareness of water conservation even though there are very few campaigns for water saving in their communities. 77% of the interviewed households reuse water for water saving with no difference between poor and non-poor. The critical concern about the new water supply system of the Project is water price.
208. In Baishan, the present water rate is CNY2.5-3 per ton, the water consumption each household is 5.3 ton/month, and monthly water cost is CNY16.7 per month. According to the economist of the PPTA, the average WTP for water supply is CNY4.13 per ton, which is lower than water rate of CNY4.88 per ton priced by the Project. For non-poor households, the water rate of CNY4.88 per ton accounts for only 0.75% of their monthly family income, while for poor families, it accounts for 2.6% of their monthly family income.
209. The positive impact in terms of water service itself includes: (i) water quality will be improved; (ii) water pressure will be increased; (iii) frequent water failure will be solved; and (iv) water service will be improved. In addition, the component will create jobs opportunities and promote income increasing. The negative impact of this component on local residents will come from land acquisition and water rate increase.
5.3 Urban Roads and Municipal Service
210. The component includes building nine (9) roads with associated facilities in Xijiao Street of Baicheng. Most part of this project area is now farmland and rural residence. The direct beneficiaries of this component will be all the rural residents living in Xijiao Street. Bad road condition, indiscriminate parking, poor street lighting, bad condition of sidewalk, lack of traffic signs and lights, mix of motorized and non-motorized are the main problems right now in this area. The main traffic tools in Xijiao Street are bus, bicycle and motorcycle.
211. The general positive impacts include: (i) better access to urban town; (ii) more public transport service; (iii) less traffic safety risk due to sidewalks, traffic lights, street lights, non- motorized vehicle lanes and traffic management systems having been included; and (iv) economic growth and urbanization promotion.
G.6 Poverty Analysis 212. The urban poverty incidence of Baishan and Baicheng cities is 12.5% and 10.2%, respectively. Lack of labor, disease, unemployment and disabled are the main causes to make households poor.
213. The Project will create 3,370 full-time jobs during four years construction and 321 full- time jobs during operation. All the jobs, in particular the ones requiring no special skills, will give priority to the poor. Based on the current wage level, unskilled workers will be paid more than CNY80 per day. The jobs brought by the Project will effectively increase the poor’s income. In addition, The improvement of urban environmental hygiene and cleaner drinking water will improve people‘s health. The poor would benefit more simply because the health status of the poor is relatively lower, and they are more vulnerable to diseases as well. Accordingly, the medical cost would be reduced.
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G.7 Gender 214. The Project will affect a total of 0.55 million of female inhabitants in the project area. The Project will create jobs during its construction and operation. Female labors will have opportunity to be hired by the Project. Moreover, water supply improvement will reduce women’s housework time. To promote women’s participation, a series of campaigns and activities will be conducted by the local government and IAs during the construction and operation. A gender action plan (GAP) has been developed to enhance gender impacts.
G.8 Ethnic Minority 215. About 50,000 Korean are living in Baishan, and 138,600 Mongolians and Manchus are living in Baicheng. However, most of them are not living in the project areas. 45 in all 1,914 people to be affected by land acquisition and resettlement of the Project are ethnic minority people, Manchus and Mongolian. Most of them are married with Han persons. They are living in the same society with Han people and have similar cultural and economic activities. In addition, they will be compensated for the land acquisition and resettlement. Therefore, Ethnic Minority Development Plan is not necessary in this project.
G.9 Social Risks and Management 216. Involuntary Resettlement: The risks are analyzed and measures are prepared in the resettlement plans
217. Landfill Impact Control in Baicheng: To guarantee the safety of drinking and irrigating water near to the existing landfill of Baicheng, an inspection or evaluation is recommened to be conducted as soon as possible. And to mitigate the overall negotive impacts of the landfills on residents surrounding the landfills in Baishan and Baicheng, a specific and feasible scheme and measure system shall be considered diring the project dsign, and practical measures shall be taken during the project construction, which will be addressed in the environment management plan (EMP) of the Project.
218. Affordability and Willingness to Pay: An exemption mechanism or a government subsidy system is suggested as well to mitigate the effects of solid waste management fee rising to the poor in Baishan and Baicheng.
219. Traffic Safety: To mitigate traffic safety risk, the newly opened road network will stress public safety awareness education to reduce traffic safety risk. The project implementing units and local governments should pay more attention to traffic safety education and have a detailed program to conduct in communities and schools in Taobei District of Baicheng.
220. A social action development plan (SDAP) is prepared for the project to enhance positive impacts and avoid social risks to be caused by the Project.
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APPENDIXES
110
Jilin Urban Improvement Project Appendix A (TA 8172-PRC) Final Report
Appendix A Design and Monitoring Framework
App A - 1
Jilin Urban Improvement Project Appendix A (TA 8172-PRC) Final Report
Design and Monitoring Framework Data Sources and Performance Targets and Reporting Assumptions and Design Summary Indicators with Baselines Mechanisms Risks
Impact By 2023 (baseline 2013) Assumptions
Improved economic Average urban resident annual Baicheng and Cities master plan growth, resource per capita disposable income is Baishan statistical Provincial efficiency, and quality increased by 7% per annum yearbooks development plan are of life in Baicheng from CNY 21,282 in 2012 for implemented and Baishan Cities Baishan City, 7% per annum from CNY 20,154 in 2012 for Infrastructure is Baicheng City. properly maintained
Urban residents satisfactory Baishan and Sector roadmaps are implemented rate for sanitary condition Baicheng yearbooks increase from 50% in 2012 to 65% Risks
Baishan residents satisfactory Baishan yearbook Insufficient funds to rate for water supply increase support from 34% (2012) to 60% Implementation of Cities and Province
master plan
Outcome By 2019 (baseline 2013) Assumptions
Improved the 22 km2 of new mixed-use urban Record from BEDZ Government coverage and the areas is developed in BEDZ development commitment and efficiency of Baicheng district progress support for and Baishan urban environmentally The bus priority lane and NMT Record from BEDZ services lane in Baicheng will be development sustainable urban increased from 0 km in 2013 to progress development 7.2 km Risks Baicheng wastewater collection Baicheng water Actual economic rate increase from 60% to 70% supply company growth and population financial report increases are
outpaced the Baicheng and Baishan landfill Baishan and life expectancies increase by Baicheng projection 8% Environmental and Sanitary Bureau Annual Report
20% of the MSW or 60 ton/day Same in Baishan and Baicheng are sorted for reduce, recycle and reuse
NRW reduction from 65% to Baishan Water 35% in Baishan Supply Company Annual Report
App A - 2
Jilin Urban Improvement Project Appendix A (TA 8172-PRC) Final Report
Data Sources and Performance Targets and Reporting Assumptions and Design Summary Indicators with Baselines Mechanisms Risks
3,370 jobs will be created PPMS Report during construction and 321 jobs will be created during operation, of which 30% are women and 15% are for the poor
Outputs By 2018 (baseline 2013) Assumptions Project counterpart 1. Improved Urban Construction of 35.5 km roads Project completion fund is appropriated Infrastructure in and two 20 m span bridges, and quarterly timely Baicheng Rehabilitation and construction progress reports of 37.2 km water supply pipe, The project is properly 62.9 km sewer pipe with 2 managed and pump stations, 62.9 km monitored to ensure stormwater pipe and 2 pump final implementation is stations, 87 km power line, 33 completed in km communication conduit, compliance of contract street lights, 28.2 km primary documents. heating pipe, one traffic control and management system Risk
Land acquisition Upgrading urban infrastructure approvals and maintenance equipment implementation are 2. Integrated Solid Establishment of a 30 ton/day Project completion delayed and quarterly Waste Management composting plant System in Baicheng progress reports Establishment of 20 recyclate Project completion collection point and quarterly progress reports Build 12 MSW transfer stations Project completion with 12 armed self loading and quarterly trucks and 30 compaction progress reports containers and other equipment Purchase MSW handling equipment, upgrade MSW and street cleaning equipment and garbage containers and recycle trash bins Establishment of 20 community based solid waste management groups with 50% of women participation
App A - 3
Jilin Urban Improvement Project Appendix A (TA 8172-PRC) Final Report
Data Sources and Performance Targets and Reporting Assumptions and Design Summary Indicators with Baselines Mechanisms Risks
2. Integrated Solid Establishment of a 30 ton/day Proje ct completion Waste Management MSW composting plant and quarterly System in Baishan progress reports Establishment of 41 recycle collection points Construction of a 330 ton/day MSW sanitary landfill
Rehabilitation of 15 MSW
transfer stations with 15 armed self loading trucks and 30 compaction containers and other equipment
Purchase MSW handling equipment, upgrade MSW and street cleaning equipment and garbage containers and recycle trash bins Establishment of 21 community based solid waste management groups with 50% of women participation 3. Improved Water Construction of water Project completion Supply Management transmission lines, 6.8 km to and quarterly in Baishan Jiangyuan district and 21.1 km progress reports
to Hunjiang district
Construction of a new WTP in Hunjiang district with a capacity of 50,000 ton/day
Rehabilitation of 11.1 km existing water distribution line, construction 44.2 km new water distribution line Install 12 flow and 10 pressure meters to better detect leaking locations, advanced leaking detection equipment, pilot DMA (District Metered Area), and SCADA system
4. Improved Training provided to the PMOs Project completion Assumption Capacity and and implementing agencies to and quarterly Staff of relevant Institutional ensure efficient and effective progress reports bureaus, project O&M project implementation and Arrangement entities, and public and operation with a target for 50% related stakeholders
App A - 4
Jilin Urban Improvement Project Appendix A (TA 8172-PRC) Final Report
Data Sources and Performance Targets and Reporting Assumptions and Design Summary Indicators with Baselines Mechanisms Risks
participation by women participate in capacity building trainings
Sex disaggregated program Risk performance and monitoring Recruitment of the system operational (baseline: 0 loan implementation in 2013) consultant is delayed
Community environment awareness promotion program
for SWM implemented with at least 50% of participants women
Technical support and training for sector roadmaps implementation
App A - 5
Jilin Urban Improvement Project Appendix A (TA 8172-PRC) Final Report
Activities with Milestones Inputs
1 Baicheng roads, bridges, municipal services and MSW ($ million) management 1.1 Preliminary design by Q3 2014 1.2 Bidding document preparation by Q4 2014 ADB loan from ordinary 1.3 Final design by Q4 2014 capital resource: 150.00 1.4 Land acquisition and resettlement by Q4 2014 Base cost: 142.40 1.5 Road, bridge and associated facilities by Q3 2018 1.6 Landscaping and traffic control by Q2 2018 Contigencies: 0.00 Financial charges 2. Baicheng integrated MSW management during 2.1 Preliminary design by Q3 2014 2.2 Bidding document preparation by Q4 2014 implementation: 7.60 2.3 Final design by Q4 2014 2.4 Land acquisition and resettlement by Q4 2014 Baicheng Municipal 2.5 MSW composting plant construction by Q3 2016 Government: 176.12 2.6 MSW transfer station by Q2 2018 Base cost: 141.66 3. Baishan integrated MSW management Contigencies: 34.46 3.1 Preliminary design by Q3 2014 Financial charges 3.2 Bidding document preparation by Q4 2014 3.3 Final design by Q4 2014 during 3.4 Land acquisition and resettlement by Q4 2014 implementation: 0.00 3.5 MSW sanitary landfill by Q3 2017 3.7 MSW composting plant construction by Q3 2016 3.8 MSW transfer station by Q3 2018 Baishan Municipal Government: 61.88 4. Baishan improved water supply management Base cost: 48.41 4.1 Preliminary design by Q3 2014 Contigencies: 13.47 4.2 Bidding document preparation by Q4 2014 4.3 Final design by Q4 2014 Financial charges 4.4 Land acquisition and resettlement by Q1 2015 during 4.5 Jianyuan water transmission line by Q3 2017 implementation: 0.00 4.6 Hunjiang water transmission line by Q4 2017 4.7 Water treatment plant by Q2 2018 Total = 388.00 4.8 Water distribution network by Q3 2019
5. Capacity development and institutional arrangement 5.1 Recruit and mobilize consultants by Q4 2014 5.2 Establish project management system for EA, IAs, and PIUs set up by Q4 2014 5.3 Establish PPMS for EA and IAs by Q2 2015 5.4 Establish EIA and RP monitoring system by Q2 2015 5.5 Implementation of capacity building by Q4 2018 5.6 Implementation of EMP, RPs, GAP and SAP until Q4 2018 5.7 Monitor implementation of EMP, RPs, SAP, and GAP until Q4 2018 ADB = Asian Development Bank, EA = executing agency, EMP = environment management plan, GAP = gender action plan, ha = hectare, IA = implementing agency, km = kilometer, m3/d = cubic meter per day, O&M = operation and maintenance, PIU = project implementation unit, PPMS = project performance management system, REMDP = resettlement and ethnic minority development plan, RP = resettlement plan, SAP = social action plan. a = A mu is a Chinese unit of measurement (1 mu = 666.67 square meters). Numbers may not sum precisely because of rounding. Source: Asian Development Bank.
App A - 6
Jilin Urban Improvement Project Appendix B (TA 8172-PRC) Final Report
Appendix B Problem Tree
PROBLEM TREE EFFECT Poor Viability, Resource Efficiency and Quality of Life in Baishan and Baicheng Cities
Decreased City Competitiveness Slow Economic & Employment Growth Poor Quality of Life in Urban Environmental Degradation & Pollution
Slow Poor Poor Urban Lack of Inadequate Pollution due to Poor Operation Inadequate Urbanization Municipal Infrastructure Public Water Poor Municipal & Maintenance MSW and Economic Government & Municipal Transport & Supply for Service of Collection Development Management Services NMT Baishan Coverage Infrastructures Coverage
DEVELOPMENT PROBLEM Inadequate and Poor Urban Infrastructures & Municipal Services and Deteriorating Urban Living Condition CAUSE
Unsustainable Insufficient Degraded Urban Environment Outdated Weak Institutional Lack of Urban Expansion Municipal Services & Living Condition Infrastructures Capacity investment
Limited Increase Demands Insufficient Poor MSW Insufficient Insufficient Insufficient Increase Poor Revenue for Infrastructures Water Management Wastewater PT & NMT & Aged Incidence of Planning, & Services Supply System Equipment Extreme Design & Tariff can’t No 3R for Incomplete Weather Management Cover Urban Population MSW Poor Urban Road High NRW Water Cost Growth Source Managemen Drainage Network Loss Ecosystems Lack of Pollution Degraded Technical & Management Lack of Urban Rural Poor Skills Private Migration & O&M Climate Investment Urbanization Change
LEGENDS: MSW = Municipal Solid Waste, 3R = Reduce, Reuse and Recycle, NRW = Non Revenue Water, PT = Public Transport, NMT = Non Motorized Traffic, O&M = Operation and Maintenance
Jilin Urban Improvement Project Appendix C (TA 8172-PRC) Final Report
Appendix C Sector Analysis
App C - 1
Jilin Urban Improvement Project Appendix C (TA 8172-PRC) Final Report
SECTOR ANALYSIS
1. Introduction
1. The sector analysis outlines: (i) the People’s Republic of China (PRC) government urban development policies and targets; (ii) the Asian Development Bank (ADB) urban development policies and programs; (iii) the current urban development situation in PRC and Jilin Province; (iv) urban infrastructures, municipal services. and solid waste management in PRC and Jilin Province; and (v) the current urban infrastructures, municipal services, solid waste management Baicheng and Baishan cities.
2. Sector Performance, Problem, and Opportunities
A. Urban Development
2. In recent decades, PRC has experienced annual urban population growth at rate of around 1.5-2% per year. Urbanization has been a key drive of the economic growth that has lifted millions out of poverty. By 2012, the urban population was 711.8 million or about 52.36% of the total population of 1,354.0 million.1 The urban population resides in 1,510 cities, of which 288 are prefecture cities or direct municipalities with over 80% of them having population over 500,000, and 19,683 towns. Two-thirds of the urban population growth is attributable to rural-to- urban migration, which has taken different patterns, but has predominantly been rural inland to urban coast. By 2015, the total population is projected to reach 1.4 billion and the urban population will surpass the rural population, exceeding by 700 million. Continuing urbanization and sustained economic growth in coming years will present significant opportunities and challenges for sustainable urban development and poverty reduction. Constraints include water scarcity and pollution, air pollution, waste management, energy demand, competition for land and resources, and economic and social pressures.
3. Rapid growth of urbanization has put great pressure to each municipal government to upgrade the existing and construct new urban infrastructure to facilitate the needs of the fast growing urban population. The municipal governments have to upgrade and build new urban roads, water supply and sewerage infrastructure, district heating, power supply, information and communication, and other relevant municipal facilities, while minimize the impact to the environment as well as building the sustainable and environmental friendly urban areas. Due to high population density in the exiting cities, many municipalities have to expand their urban areas by developing new and expanding the existing urban districts. It is critical to develop the new urban areas according to high urban development standards, using modern urban development technologies and policies and considering urban transport, living environment, sustainable development, and environmental protection.
4. Jilin Province is one of the heavy industrial and manufacturing provinces with relatively high GDP value. The famous Changchun Second Automobile Factor is one of the major automobile production bases in PRC. By 2011, Jilin total GDP ranked as the 22nd among all provinces and autonomous regions and its GDP per capita was ranked as the 11th. However, the economic development is unbalanced with major development concentrated on the big cities. The smaller cities, especially those located in the remote areas, have started experiencing rapid urbanization only in recent years. The urbanization process is characterized by development of new and expansion of the exiting urban areas due to the high density of the population in the existing urban areas.
1 PRC 2012 Statistic Yearbook, National Bureau of Statistic of China
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Jilin Urban Improvement Project Appendix C (TA 8172-PRC) Final Report
5. Baicheng is a major prefecture city in northwestern Jilin province. The major economic actives are agricultural related production and processing. By 2011, the total GDP was CNY 55.5 billion, ranking 7th among all 49 cities in Jilin, while the average GDP per capita was CNY 27374 ranking 33rd.
6. Baishan is another major prefecture city in southern Jilin. The city was used to be a timber production and forest related processing city with major economic activities heavily relaying on the forest in Changbai Mountain. Due to the central government policies for forest protection and limitations on tree cutting, the local economy is facing the challenge of economic transformation from the forest related industries and productions. The area has becoming one of the major spring water production bases. The limited industrial productions based on forest are still playing an important role in the local economy. By 2011, the city total GDP was CNY 53.1 billion ranking 7th among all 49 cities amd towns, while the GDP per capita was CNY 41325 ranking 12th in Jilin.
B. Urban Transport
7. The PRC’s rapid urbanization presents significant challenges - roads, bridges, water supply, sewerage and other municipal infrastructure and facilities are urgently in demand. Moreover, associated urban transport management systems including urban road, transport, and traffic planning and management, infrastructure development, operation and maintenance are urgently required. Growing vehicle fleet, increasing road accidents, and the lack of parking management compound urban transport sector challenges. Therefore, the PRC government has prioritized the development of urban infrastructure and systems, including water supply and sewerage, public transport, solid waste and environmental improvement. However, due to lack of expertise and inadequate planning and engineering, there are common problems associated with the urban transport in many cities in PRC, especially for the small and medium size cities. Some of the representative problems and challenges include:
8. Urban Transport Planning – In PRC, the urban transport planning is usually as a part of the city development master plan. The current planning system in PRC was adopted from the old planned economic system. A municipality will hire a planning design institute to develop a city development master plan, including the transport planning, and the master plan will be submitted to the upper authority and the people’s congress for approval. Once the planning is approved, it becomes a legal document to be used for urban development. The approved planning will stay in its original shape, in some cases the planning are over five years old. In many cities, the urban transport planning is out of date due to the rapid urban development, and the planning is lack of details such as road network analysis and road function analysis. The urban transport planning shall be a dynamic system to reflect the rapid development needs and urban expansion. The planning system shall include a long term transport planning as well as a short term planning and all urban transport components such as motor vehicle traffic, non- motorized transport, public transport, subway and rail traffic, pedestrian and bicycle traffic, etc. shall be integrated to have a people centered urban transport system.
9. Road Safety – the road safety, which has always been a concern in the urban development sector. To improve the road safety, the municipalities need to (i) conduct road safety education for different groups of urban population; (ii) design urban transport infrastructure with road safety considerations, and (iii) enforce traffic safety regulations. The absence of road safety considerations while designing transport infrastructure, general road safety education, and traffic safety enforcement, are the main causes of the high incidence of road accidents.
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Jilin Urban Improvement Project Appendix C (TA 8172-PRC) Final Report 10. Public Transportation and Non-motorized Transport – An efficient and sustainable public transportation and a well planned non-motorized transportation (NMT) system are among the most effective urban transport tools. In early stage of the urban development in PRC, the authority has put too much emphasis on building new urban roads and lack of the development of public transportation system. As the results, many big cities in PRC are experiencing bad traffic congestion because more people use private cars for commute and the growth of automobiles is out pace of the urban road construction. In recent years, the municipal governments in big cities have started to build subways, which are proved to be an effective method to solve urban transport problem. However, in the medium and smaller cities where there are no subways, the public bus system remains as the main urban transport system. It is important to emphasis public bus development in these cities. Public transportation has better capacity to move people around cities and is more environmental friendly. A well-developed public transportation planning is a superior response to urban transportation challenges.
11. Pedestrian and Bicycle Traffic – The mobility of pedestrians and bicycles is declining as motor vehicles are progressively dominating roads and as trip distances grow in line with urban expansion. However, NMT remains one of the major travel modalities in smaller and more-remote cities. As cities grow, safety starts worsening due to limited availability and obstruction of pedestrian crossings, encroachment of moving and parked motor vehicles on NMT lanes, and cyclists being forced to operate in dangerous mixed traffic environment. Nevertheless, NMT will continue to be an essential element of cities’ transport systems. Integrated networks of protected or separated bicycle lanes are needed, together with bicycle parking facilities at bus stations. For pedestrians, the road network must be made safer with appropriate sidewalks, mid-block crossings, and pedestrian signals. The municipalities need to develop and enforce respective policies to create more attractive streetscape, as well as to make urban blocks either smaller or prioritize NMT over motorized traffic.
12. Asset Management – The urban infrastructure management and maintenance system is relatively primitive in comparison to the developed countries. There are no systematic urban infrastructure asset management systems in the majority of cities in PRC. There are several pilot programs in some of the larger metropolitan areas, but they are more or less still in the testing and demonstration stage without actual implementation. The urban infrastructure operation and management systems, such as bridge and roadway management systems, are the mandated requirement in the US and other developed countries, but not yet in PRC. For example, in the US, all bridges with span over 6 m (20 feet) need to be inspected every two years for their safety and serviceability. The recent incidents of bridge collapses in PRC could be avoided if such management system is implemented and the bridges are inspected for their safety periodically since all these bridge collapses are clearly resulting from bridge elements deteriorations and lack of the necessary maintenance. Implementation of such an infrastructure management system, also referred as asset management, becomes more critical today than ever before.
13. Road Maintenance – The prevalent road maintenance approach involves a periodic maintenance and rehabilitation program. The existing road networks in most small and medium PRC cities are poorly maintained due to inefficient management of maintenance systems, and inadequate allocations of financial, technical, and human resources. Municipal governments fail to allocate sufficient budget resources to finance routine road maintenance, and there are no effective systems to help municipal governments plan and conduct maintenance more effectively.
14. Urban Parking Management – Parking in most small and medium PRC cities is poorly planned and regulated, which results in illegal parking on sidewalks and in NMT lanes, creating obstacles to NMT, and reducing the attractiveness of the streetscape. In conjunction with NMT planning, comprehensive parking management plans and policies should be developed as an
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Jilin Urban Improvement Project Appendix C (TA 8172-PRC) Final Report integral part of city master plans. Moreover, pricing systems for parking management have significant potential as demand-management tools.
15. The urban transport has been the area that lacked adequate attention of municipalities during the rapid urban development process. The problems exist in all stages ranging from planning, engineering design, construction to the management and maintenance. In the second and third tier cities in the less developed areas such as Baicheng and Baishan, the problem is even worse. The major effort of urban infrastructure development is focused on building roads, bridges, water and sewer lines, with less effort on achieving and sustaining the urban transport efficiency, safety, and longer service life. Common problems include inadequate facilities for public transport and NMT, poor traffic management and traffic safety, inadequate infrastructure management and maintenance, inadequate education program and public awareness for traffic safety and traffic regulation, etc.
C. Water Supply and Wastewater
16. For years, water demand has been outstripping available water supply in the People’s Republic of China (PRC) due to its rapid economic development, increasing urbanization, and large growth in population. The total annual renewable water resources of PRC amount to about 2,841,000 m3, the sixth largest in the world. The annual per capita freshwater resources of PRC, however – about 2,156 m3 in 2007 – are among the lowest for a major country2. The scarcity of water in China is aggravated by extensive pollution from industrial, domestic, and agricultural sources. Over the past three decades, despite great efforts to control it, water pollution has increased, spreading from inland water bodies to inshore coastal areas, and from surface waters to groundwater resources. The lack of adequate sanitation provisions and robust wastewater and waste management has contributed to deteriorating water quality. In addition, lack of access to treated drinking water and sanitation provisions, and poor hygiene practices, remain a contributing factor to ill-health, particularly among children and elderly. Total wastewater discharges have steadily risen to 75 billion tons in 2010. Nonpoint pollution (NPP), primarily related to agricultural activities such as fertilizer and pesticide run-off from farmland and infiltration of livestock waste, has long been out of control and is becoming an increasingly important source.
17. Inadequate water supply facilities in many areas of China contribute to lower water supply coverage, poor drinking water quality and non-revenue Water NRW losses. With regard to the applicable requirements on salinity standard of drinking water, there is a need for upgrading water purifying facilities of water supply plants WSP and treatment technologies to ensure safe water supply. Due to that fact that a great number of pipelines are under service life exceeding 50 years and built with lower standard materials, the water quality rate in the distribution network is lower than water quality within WSP. The higher leakage ratio has also contributed to cause for network broken. The average coverage rate of water supply in the national-wide, counties level and township level was about 90%, 79% in and 62% respectively in 20103.
18. Along with the rapid urban development, the municipal service capacities and facilities have been grown rapidly. As indicated in Table 1, from 2000 to 2011, the urban water supply capacity in PRC has increased from 218 to 267 million m3/d with an average annual increase of 1.86%; the water supply pipe length has increased from 254,561 km to 573,774, and the urban water supply coverage has been increased and maintained at 97% for the last 3 years.
Table 1 Water Supply Capacity and Facilities of PRC
2 Addressing China’s Water Scarcity, World Bank, 2009 3 . of The national urban 12th FYP and the 2020 Vision of Water supply facilities renovation and construction, The Ministry of housing and urban construction jointly with the State Development and Reform Commission, 2012.
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Jilin Urban Improvement Project Appendix C (TA 8172-PRC) Final Report Water Annual Water Annual Average Population Urban Supply Domestic Supply Water Daily with Access Water Year Pipe Water Capacity Supply Water Use to Water Coverage 3 Length 3 Supply (mil m /d) (mil m ) 3 (Liter) Supply (mil) (%) ()km ( mil m ) 2000 218.42 254,561 46,898 20,000 220 249 96%
2005 247.20 379,332 50,206 24,374 204 327 91%
2006 269.62 430,397 54,048 22,203 188 323 87%
2007 257.08 447,229 50,195 22,637 178 348 94%
2008 266.04 480,084 50,008 22,820 178 351 95%
2009 270.47 510,399 49,675 23,341 177 362 96%
2010 276.02 539,778 50,782 23,875 171 382 97%
2011 266.69 573.774 51,343 24,765 171 397 97%
2012
Sources: China Statistics Yearbooks 2001, 2006 to 2012.
19. The urban wastewater treatment facilities and treatment capacity have increased rapidly along with the fast urbanization development. As shown in Table 2 of the summary of wastewater treatment facilities in PRC, from 2000 to 2011, the daily wastewater treatment capacity has been increased steadily from 47 to 133 million m3/day with an average annual growth rate of 9.9%; the total sanitary sewer pipe line length has increased from 141,758 to 414,074 km with an average annual growth rate of 10.2%.
Table 2 Wastewater Treatment Facilities and Capacities Total Daily Wastewater Sanitary Urban Domestic Wastewater Treatment Sewer Pipe Drainage Year Wastewater Treatment Facility Length Pipe Density Discharge 2 Capacity (Each) (km) (km/km ) 3 (mil tons) ( mil m /d) 2000 - - 141,758 6.30 47.41
2005 28,140 69,231 241,056 7.40 79,90
2006 29,663 75,830 261,379 7.80 97.34
2007 31,020 78,210 291,933 8.20 103.37
2008 33,003 78,725 315,220 8.70 111.73
2009 35,470 77,018 343,892 9.00 121.84
2010 37,978 80,332 369,553 9.00 133.93
2011 - - 414,074 9.50 133,04
2012
Sources: China Statistics Yearbooks 2001, 2006 to 2012.
20. For Jilin Province, by 2011, the total urban annual water supply was 1003.3 million m3, of which 284.4 million m3 is for resident domestic use, and the urban population with public water supply was 10.4 million. For wastewater treatment capacity, the annual wastewater
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Jilin Urban Improvement Project Appendix C (TA 8172-PRC) Final Report treatment capacity was 619.9 million m3. In according to Jilin 12th Five Year Plan, the urban sewer service coverage shall be at least 70% for the small cities and towns, and 80% for cities and towns at the county level or larger. For urban environment and sanitation, the total street clean area was 126.0 million m2, the municipal solid waste transported was 4930000 tons and about 2430000 tons was treated with sanitary landfills or other sanitary treatments.
21. The national standards for municipal service have adopted a mandatory requirement for using the separated stormwater and sanitary sewer system for all new urban areas. However, due to the long history of using combined sewer system in the urban area or lack of sewer piping network, there are many urban areas, especially in the small and medium size cities in the less developed areas, still without sanitary sewer service connections or using the old combined sewer system. The sanitary sewer service coverage in some small and medium cities could be only at about 50-60%. To improve the sanitary service to the existing urban area where without adequate sewer coverage is an important step to improve the living environment in the urban areas.
22. In comparison to designing roads, bridges and other important urban infrastructures, the engineering and design of the stormwater and municipal service facilities is considered as the secondary facilities without necessary emphasis in PRC. Recent incidents of flooding in many major cities in PRC are indications of inadequate engineering and management. For the stormwater, the current design method is simply to collect the street runoffs and discharge them to the nearby river or water body directly. This design method has been abandoned long time ago in the developed countries due to its negative impact to environment and ecology associated with flooding, erosion, wild life, pollution, etc. For an area in its natural condition before any urban development, the earth surface is exposed with natural grasses and trees. When a rainfall starts, the rainwater falling on the ground will be partially infiltrated into the ground to charge the underground water and partially flowed toward lower ground of ditches and channels and reached rivers eventually. During the water movement, the vegetation and ground surface slows the flow of the rainwater and filter the pollutants in the surface runoff. As the result, the surface runoff that reaches the river and water body is cleaned and delayed. When the area is developed into urban area with roads and concrete or other impermeable material covers most of the area, the rainwater will be collected by scuppers and stormwater piping network and discharged into the river and water body. Since there is no grass or natural ground surface to filter and slow down the rain waters, the surface runoffs with pollutants collected from the road and concrete surface will discharged into the river system with a much faster speed. If more and more urban areas are developed, there will be more and more urban runoffs from all developed urban areas dumped to the river system at a much faster speed and big quantity in comparison to its original natural condition. If the rainfall is big enough, flooding will occur in the downstream of the water. It can be noted in China that an area that was in drought condition a few days ago could turn into flooding condition in a very short period of time. This is a very obvious indication that the natural ecological condition of the area has been damaged due to the rapid urban development, and the ecological environment cannot effectively regulate the rainfall runoffs any more. It has been noted that more and more people has realize the problems and the impertinence of stormwater management for environmental and ecological protection. It is anticipated that the proper stormwater management practices that have been successfully used in the developed countries for the last 50 or more years will be implemented in PRC in the near future.
D. Municipal Solid Waste
• International MSW Parctices
23. The municipal solid waste management practices vary greatly around the world. However, in principle there are fundamentally three types of treatment methods: i) sanitary
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Jilin Urban Improvement Project Appendix C (TA 8172-PRC) Final Report landfill; ii) incineration; and iii) composting. The percentages among three treatment methods in some of the countries are shown in the Table 3. As shown in the table for the developed countries, where the MSW sorting and recycling are more advanced, the percentages for landfill is relatively low (55%), while the those for incineration and composting are reletively higher at about 36% and 9%, respectively. In PRC, the percentages among landfill, incineration and composting are 80%, 15% and 2%, respectively.
Table 3 Percentages of MSW Treatment among Landfill, Composting and Incineration
Country Landfill Compost Incineration America 65 10 25 Japan 18 4 78 Germany 72 3 25 England 85 0 15 France 50 20 30 Belgium 62 9 29 Switzerland 15 14 70 Denmark 32 2 66 Austria 65 11 24 Sweden 75 2 23 Australia 62 11 24 Average in developed countries 55 9 36
24. The landfill is still one of the main MSW treatment methods even on the developed countries. However, in the countries where the land resources are limited, the percentage of MSW treatment by landfill is quite low. For example, Japan only has about 18% of the MSW in landfill. The method of incineration was started by Germany in 1896, which becomes one of the major MSW treatment methods in the developed countries, especially for those countries with limited land resources. However, the environmental impact from the incineration, specifically the emission of Dioxin, has caused many developed countries very cautious in using incineration. In 1996, the government shutdown 52 incineration plants in the Big Lake area in concern of environmental impact. Many other counties have issued tougher restrictions on operating the incineration plants. The composting treatment is to use microorganisim process to turn part of the MSW into compost for landscaping and agricultural uses. It accounts about 10% of the total MSW treatment among the developed countries, but the percentage varies greatly.
25. Due to the drawbacks from different MSW treatment methods, the developed countries have emphasized the MSW treatment concepts of quantity reduction at the sources, and maximizing the recycle and reuse to reduce the final MSW amount for landfills, which sometimes is referred as 3R principles, i.e. reduce, reuse and recycle. The application of 3R principle is the fundamental method for the MSW treatment.
• MSW Practice in PRC
26. By the end of 2010, the urban population in China has reached to 669.8 million, and the ratio of urban population has increased from 19% in 1980 to 50% in 2010. The waste generation rate has increased from 0.5kg/capita/day in 1980 to 1.1kg/capita/year in 2010, which was increasing at a faster pace than population growth over the past three decades4. During
4 National Bureau of Statistics of China (NBS), China Statistical Yearbook 2003–2010, China Statistics Press, Beijing, China, 2004–2011.
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Jilin Urban Improvement Project Appendix C (TA 8172-PRC) Final Report “11th Five-Year” period, solid waste treatment investment is 2.1×1011 Yuan with the annual growth rate of 18.5%. The garbage treatment investment ranked first in environmental protection investment with growth rate of 25%. China Environmental Planning Institute of Environmental Protection Department forecasts that environmental protection investment will reach 3.1×1012 Yuan during “12th Five-Year” period, which grows by one time comparing with that of 1.4×1012 Yuan in the 11th Five-Year. Solid waste treatment investment will reach 8.0×1011 Yuan, over two times than that in the 11th Five-Year.
27. According to the 12th five-year-plan on urban MSW harmless disposal facilities construction planning5, the planned new amount of MSW harmless disposal capacity will reach to about 580 kiloton per day (kt/day) during the year of 2010–2015, of which 398 kt/day are newly increments in urban areas, while 182 kt/day are newly increments in the country towns. According to the World Bank, there will be a vast market for secondhand materials in China, and by 2030, urban waste in China – paper and metals in particular – will be one of the biggest commodity sources in the world.6
28. In 2010, the per capita annual amount of municipal solid waste (MSW) is about 300 kg in China; the annual growth rate is as high as 2~5% from 2006~1020. Although there are about 740 solid waste treatment plants, the sanitary treatment rate is less than 20%; a large amount of solid waste is stacked naked in outskirts. The storage volume has reached about 4×109 tons, and the occupied land is more than 5×108 m2. More than 200 cities are surrounded by solid waste. Therefore, how to select the reliable, safe, healthy, economical, environmental technology in accordance with the sustainable development requirements, thus fundamentally achieving “Reduction, Reuse, and Recycle” target is an important strategic task of social development facing China. The solid waste treatment method is also very important. Sanitary landfill is still the main method as a traditional and final processing method for most cities in China to solve municipal waste, accounting for about 95% of total treatment amount7.
29. Sanitary waste disposal rate of MSW is expected to reach 83% in 2015. The treatment volume of municipal garbage will reach 4.0×105 t/d in 2015. The treatment rate of counties and towns is relatively low, only 25% in 2010. The sanitary disposal rate is expected to increase by over 50% during the 12th five-year with daily disposal amount of 110,000 tons. The environmental protection investment will double during “12th Five-Year” period and the solid waste investment will increase by 4 times.8
30. At present, landfill is still dominant in China. However, landfill takes up a lot of land and it is difficult to promote in densely populated areas in China such as the eastern coastal areas which has high per capita density. According to “Reuse, Recycle and Reduce” principles for waste disposal proposed by Environmental Protection Department, incineration is the most optimal technology for reduction and sanitary treatment. Generally, the volume reduction with incineration is 75% of disposed waste, and the incineration heat can be used to generate heat and power. According to “Opinions on Further Strengthening the Solid Waste Disposal", Ministry of Housing and Urban-Rural Development and Ministry of Environmental Protection proposed that the incineration technology shall be given the first priority in the cities with land shortage and high population density. In addition, the government issued a series of preferential measures to encourage waste incineration power generation. "Renewable Energy Electricity Prices and the Cost-sharing Management Pilot Scheme" sets that electricity price is
5 The State Council/The central People’s Government of People’s Republic of China, The Chinese national 12th five-year-plan on urban MSW harmless disposal facilities construction planning. Data online avail- able at: http://www.gov.cn/zwgk/2012-05/04/content 2129302.htm, 2012.
6 World Bank, Waste management in China: issues and recommendations, May 2005:11.
7 China Municipal Engineering Magazine, 2012 8 Specific Report on China Solid Waste Treatment Industry, 2012
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Jilin Urban Improvement Project Appendix C (TA 8172-PRC) Final Report determined by benchmarking electricity price of desulphurization coal-fired unit plus subsidy whose standard is 0.25 Yuan/kilowatt-hour (the current total price is 0.65 Yuan/ kilowatt-hour in Jilin Province). In addition, waste incineration power generation enjoy the value-added tax relief. Moreover, the local government gives a certain waste disposal subsidy according to the local financial resource and incineration technology etc. (The fee is 30-50 Yuan/t in Jilin province).
31. Composting is an important way for treatment of biodegradable organic fraction of the waste. Compost is most valuable as a soil conditioner that improves the overall soil characteristics resulting in less erosion, better moisture retention, better seed germination, better plant growth (stronger roots and better disease suppression), and the need for less synthetic fertilizer. Compost increases the efficiency of fertilizers by reducing runoff and making the fertilizer more available to the plants over a longer period (the compost molecularly binds to the fertilizer and holds it ready for plant use). However, as opposed to landfill and incineration, composting is not a widespread used waste treatment method in China. There are only 11 composting sites in 2010 with the designed composting capacity of 5480 t/day. The major obstacle to the development of composting is the decreasing market demand. There are multiple reasons for the weak demand. The first reason is the cost efficiency concern, because organic waste that are proper for composting, mainly food residues, is usually not source separated. In order to obtain proper organic for composting, very tough manual works are needed, which creates additional cost and makes composts less competitive in price compared with synthetic fertilizers9. The second reason is the market acceptance, farmers are reluctant to use compost made from waste materials10. Due to its low profitability and very limited market reach, composting has been unable to attract sufficient financial investment.
32. The urban environmental and health condition in PRC has improved dramatically due to the rapid urbanization with the newer urban residential areas and better municipal services. As shown in Table 3, from 2000 to 2011, the urban area being cleaned has been increased almost quadrupled; the municipal solid removed has increased from 118 to 164 million tons with an average annual growth rate of 3.1%, which seems not in pace of the fast urban development in the last decade. For the smaller cities, the inadequate capacity of garbage collection, transport and treatment is one of the major factors attributed to the poor city environment and health condition. The major urban garbage treatment method is still the landfill, followed by burning and other treatments. The urban garbage treatment capacity has increased significantly from 80.0 to 130.9 million tons from 2005 to 2011 with an average annual growth rate of 8.6%. However, there is still gap between the garbage removed and the treated. Another major problem for the garbage treatment is that so far there is almost no effective garbage sorting, reuse and recycle system and mechanism in PRC, which result in environmental problems associated with high energy consumption, material waste, big impact to the environment, and other negative impacts to the natural resources.
Table 3 Municipal Solid Waste and Urban Environment Health Facilities Urban Human Urban Garbage Landfill Burn Other Public Cleaning Waste Cleaning Year Removal (mil (mil (mil Toilet Area Removal Vehicle 2 (mil ton) ton) ton) ton) (each) (mil m ) (mil ton) (each) 2000 1,662 118.2 - - - 28.3 44,846 106,471
2005 3,108 155.8 68.6 7.9 3.5 38.1 64,205 114,971
9 X. Chen, A Systematic Comparison of Municipal Solid Waste Management Systems: Case Studies of Dalian City, China and the Region of Waterloo, Canada, Master Thesis, University of Waterloo, 2008. 10 M. Zhu, M. Xi, A. Rovetta, Q. He, F. Vicentini, B. Liu, A. Giusti, Y. Liu, Munici- pal solid waste management in Pudong New Area, China, Waste Manage. 29 (2009) 1227– 1233.
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Jilin Urban Improvement Project Appendix C (TA 8172-PRC) Final Report
2006 3,248 148.4 64.1 11.4 2.9 21.3 66,020 107,331
2007 3,794 152.2 76.3 14.4 2.5 25.1 71,609 112,604
2008 4,685 154.4 84.2 15.7 1.7 23.3 76,400 115,306
2009 4,473 157.3 89.0 20.2 1.8 21.4 83,756 118,525
2010 4,850 158.1 96.0 23.2 1.8 19.5 90,414 119,327
2011 6,305 164.0 100.6 26.0 4.3 19.6 100,340 120,459
2012 Sources: China Statistics Yearbooks 2001, 2006 to 2012.
33. Based on the statistics data by the end of 2010, there were about 498 landfill sites, which processed about 80.3% of the total MSW amount. There were about 104 incineration plants that processed about 15.5% of the total MSW, and 20 composting plants that processed about 3.5% of the total MSW. With the urbanization and the improvement of the living condition, the amount of waste is also growing. According to the Environmental Protection Agency data, in 2010, China's annual output of municipal waste reached 160 million tons, and with an annual growth rate of 8-10%. There are more than 200 cities in China are surrounded by MSW accumulated historically. The land used for MSW landfills is up to 750,000 mu and to effectively and efficiently treat the MSW has become a big channge for many cities.
34. One special character of the MSW composition from China is the high percentage of kitchen waste, which is about over 40% of the total waste. The kitchen waste is wet and with low combustion value, which is not very efficient to be treated by incineration. Also the percentage of construction waste is pretty high with about 10% to 39%, which takes a lot of the landfill spaces.
35. The landfill is still the conventional and mostly used MSW treatment method. The PRC government has enforced the sanitary landfill requirments to eliminate the unprotected landfills. Due to the large amount of MSW, the landfill has taken more and more land. China has limited land resource due to the large population. To reduce the MSW amount in landfills has become the priority for many cities.
36. Chinese waste incineration technology started in the middle of 1980s. The incineration technology is the most efficient way in safe disposal, waste minimization and beneficial reuse. Currently the waste incineration technology is mainly used in the economic developed, densely populated areas of China, mostly in Yangtze River Delta and Pearl River Delta and other coastal areas. It is expected that the percentage of the MSW treated by the incineration will reach 30% of the total MSW in 2015 and to 40% by 2020. Based on PRC practice, the capacity of the incineration plants is usually larger than 600 ton/day to be more efficient during operation, it is usually used by large cities.
37. Composting in MSW management is PRC has only a small percentage in total NSW treated. The history of using composting in China in china.11 (i) The initial phase (1950s - 1960s): the composting technology was used in a relatively simple composting process in rural areas. The process was categorized as one-time ferment using natural ventilation to complete the process. It is a simple and slow process. (ii) Development Phase (1970s - 1980s): The application of waste composting techniques was getting more attentions by the government. More researches to find new
11 JI Tao. Application and outlook of municipal domestic refuse composting[J]. Tianjin Technology, 2008
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Jilin Urban Improvement Project Appendix C (TA 8172-PRC) Final Report technologies were carried out and the government invested in establishing composting facilities. The stage is a thriving period of composting study, and many new processes and new technologies have been developed. (iii) Application Phase (1980s - 1990s): The government promoted to use composting technologies and a lot of composting facilities were constructed. During the period, the composting was ranked second next to the landfills. (iv) Contraction phase (1990s): Due to high operation cost and lack of market for the compost products due to the high cost in comparing to the fertilizers, many composting plants were idled.
38. The failure of the composting production in the past can be summarized as follows:12 (i) Out-of-date technologies with poor products. (ii) Lack of maintenance for the equipment (iii) Poor composting product quality with low percentage of organic (20% vs. 40% as required) and high impurities. (iv) The energy consumption was too much, resulting in high cost and lack of market competitiveness.
39. In recent years, due to the problems from incineration and the advancements in the technologies, the process of composting has gained more attentions. May cities including Wuxi, Changzhou, Tianjin, Shenyang, Beijing, Wuhan, etc. have designed new composting plants using advanced technologies. The compost products are not limited to be used in gardens, landscaping, vegetation restoration, but also land reclamation and land desertification. The composting process will gain more strength in PRC MSW management. 40. The lessons learned from the previous composting practices include: i) simple and low cost technologies shall be used to control the production cost; ii) the products shall be identified for the potential market or municipal government users such as city maintenance unit for urban landscaping.
• MSW Management In Jilin
According to Jilin Municipal Solid Waste Management Plan, the landfills are still the major MSW dsiposal method. In addition, the incineration process has been promoted. By 2015, eight incineration plants will be constructed, and by 2020, another 20 incineratin plants will be built. Currenly, the provincial government has no plan to build new composting plants.The proposed project MSW components will work as the pilot projects and help the government to explore new ways for MSW management.
• Baishan
41. There is one water supply plant in Baishan city with a total treatment capacity of 50,000 ton/day. There are four water sources to supply water for the treatment plant. However, due to pollution and other limitations, only one of the water sources of surface water can be used, which is not reliable due to the reduced water flow amount.
42. For the municipal solid waste treatment in Baishan, the existing landfill site, which was built in 2005, is under repair due to pollution of the leachate. The municipal solid waste is currently collected and stored at a temporary site. There is no sanitary landfill site available until the existing site is repaired and the new landfill site is built.
• Baicheng
12 Refined Compost Technique in the Engineering of Municipal Solid Waste Treatment, Beijing Golden State Environment Development Co., Ltd, Beijing
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Jilin Urban Improvement Project Appendix C (TA 8172-PRC) Final Report
43. There are three water supply plants in Baicheng. No. 1 water treatment plant has been stopped for supplying domestic use water, No. 2 and No.3 water treatment plants are used to supply water for urban resident use. The total water supply capacity is 95,000 ton/day, which is adequate for the urban development needs.
44. For municipal solid waste management, the existing sanitary landfill has the daily treatment capacity of 500 tons and the estimated remaining service life will be two more year from 2013. The construction of the new sanitary landfill site has been completed mostly. The design treatment capacity is 450 ton/day, and the design service life is 12 years.
3. Government’s Sector Strategy
45. The government acknowledges that the fast-paced economic growth and urbanization experienced by the country in recent decades must be more-carefully managed in the future. There has been debate on the appropriate rate of population growth and how this can be managed in the future to deliver greater economic benefits to the entire nation and reduce inequalities. Efforts are focusing on developing new urban centers in the hinterland to generate new employment opportunities and aiming to reduce demographic pressures in the main coastal cities. Promoting smaller town development has been central to the PRC’s urbanization strategy and is underscored by the government’s continuous search for specific policy initiatives that will enable economic growth and attract more rural migrants to towns rather than cities.
46. The urban development strategy is overseen by the State Council with specific areas designated to the relevant ministries. The Ministry of Environmental Protection (MOEP) supervises water quality of industrial discharge and municipal sewage discharge. The Ministry of Housing, Rural and Urban Development (MOHURD), formerly the Ministry of Construction, has regulatory responsibilities for urban management and public utility services, including roads, water supply, urban drainage, environmental sanitation, district heating and wastewater treatment but most of these responsibilities are delegated to local governments at various levels. MOHURD is only directly responsible for developing urban development strategies, medium and long-term development planning, and providing guidance for urban management and the provision of the related public utility services. The Ministry of Water Resources (MWR) has overall responsibilities for flood control, river pollution control, and water conservation. The Ministry of Health (MOH) is responsible for supervising public health, drinking water safety, and prevention of epidemics. The National Development and Reform Commission (NDRC), as a multi-functional administration department of the State Council, is responsible for overall coordination of economic policy implementation, including energy saving and resource utilization.
47. The Twelfth Five-Year Plan (2011-2015) is expected to advance the agenda for developing a harmonious society and more balanced economic development that considers environmental and social conditions and promotes development of central and western regions of PRC. It is expected that the Twelfth Five-Year Plan will provide guidance on the rate of urban population growth and the national priorities for urban development. Acceleration of urban public facilities is a priority and investments of around $1 trillion are expected during this period. The plan will also identify the future economic growth model that the PRC intends to follow and is expected to focus on high-technology, green and clean industries, service sector and the development of skills and human resources that will be required to take advantage of this and provide employment opportunities.
4. ADB Sector Experience and Assistance Program
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Jilin Urban Improvement Project Appendix C (TA 8172-PRC) Final Report 48. ADB’s assistance to the urban sector development has been effective in addressing a range of urban environmental problems that have a positive impact on water resources, pollution control and public health. Since 1992, ADB has provided over 30 loans totaling over $3.5 billion to the PRC for urban environmental improvement and infrastructure projects, and nearly $56 million for 80 TA studies to prepare these projects and study key issues in environmental improvement and urban infrastructure development. ADB-financed urban development and urban environmental improvement projects in the PRC generally perform well. Urban development requires an integrated and multi-sector approach. A comprehensive urban development master plan is prepared for a timeframe of 15 – 20 years updated from time to time that guides the urban development activities. Guided by such an urban master plan, holistic urban planning and integrated public investment may be effective instruments in strengthening urban sustainability, advancing human settlement, and improving urban environment. However, continued investment on physical infrastructure for urban development requires stronger capacity of the urban government to design, develop, and manage the associated operation or service delivery system.
49. The ADB Country Strategy and Program (CSP) promotes continued economic growth as the primary means to reduce poverty and recognizes that in the past these achievements have come at a considerable cost to the environment. Improving environmental protection is a key priority. Wastewater treatment is one of the specific investments identified as an operational focus. ADB's water policy supports integrated water resources management for surface water quality and an operational strategy for infrastructure, calls for market-oriented reforms, and directs attention to urban environmental problems. The market-oriented reforms emphasized in ADB’s CSP for PRC include the principles of affordability, efficiency, cost recovery through user charges and effective subsidization schemes.
50. The ADB Country Partnership Strategy (CPS)13 for PRC identifies urban development as a priority investment sector. Sustainable and environmentally friendly urban development remains as key focus area in the new CPS for the 2011-2015 period. It also conforms to ADB’s Water Policy,14 which encourages water efficient use and conservation, including wastewater reuse. It supports ADB’s Urban Development Sector strategy and the PRC's urbanization strategy which promote rural-urban integration and infrastructure investments in dynamic settlements. ADB’s Sustainable Transport Initiative 15 includes efficient design of urban road components and related institutional and capacity developing assistance by supporting improvement in public and non-motorized transport development, traffic and road safety and management.
13 ADB. 2012. Country Partnership Strategy (2012–2015): People’s Republic of China. Manila. 14 ADB. 2001. Water for All: The Water Policy of the Asian Development Bank. Manila. 15 ADB. 2010. Sustainable Transport Initiative: Operational Plan. Manila.
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Jilin Urban Improvement Project Appendix D (TA 8172-PRC) Final Report
Appendix D Project Implementation Organization Chart Jilin Urban Improvement Project Appendix D (TA 8172-PRC) Final Report INSTITUTIONAL ARRANGEMENT
Executing Agency Jilin Provincial Government
Leading Group Chair: Vice Governor Member: JFD, JDRC, JHURCD, JEPD, BSMG, BCMG
PMO (Under JHURCD)
IA 1 IA 2 Baicheng Municipal Government Baishan Municipal Government
Baicheng LG Baishan LG Chair: Vice Mayor Chair: Vice Mayor Member: BCDRC, BCFB, BCHCB, Member: BSDRC, BSFB, BSHCB, BCEPB, BCSLB, BEDZ BSWA, BSEPB, BSSLB
Baicheng PMO Baishan PMO (Under BEDZMC) (Under BSHUCB)
Baicheng PIU Baishan Baishan BEDZ Development & Xibeicha Qiyuan Solid Waste Disposal Investment Co Ltd Hydropower Co. Ltd Co. Ltd.
LG = Leading Group, JFD = Jilin Financial Department, JDRC = Jilin Development and Reform Commission; JHURCD = Jilin Housing, Urban and Rural Construction Department, JEPD = Jilin Environmental Protection Department, BSMG = Baishan Municipal Government, BCMG = Baicheng Municipal Government, PMO = Project Management Office, PIU = Project Implementation Unit, BCHCB = Baicheng Housing and Construction Bureau, BCDRC = Baicheng Development and Reform Commission, BCFB = Baicheng Finance Bureau, BCEPB = Baicheng Environmental Protection Bureau, BCSTB = Baicheng State Land Bureau, BEDZMC = Baicheng Economic Development Zone Management Committee, EMP = Environmental Management Plan, RP = Resettlement Plan, BSHCB = Baishan Housing and Construction Bureau, BSWA = Baishan Water Authority, BSDRC = Baishan Development and Reform Commission, BSFB = Baishan Finance Bureau, BSEPB = Baishan Environmental Protection Bureau, BSSLB = Baishan State Land Bureau
Jilin Urban Improvement Project Appendix E (TA 8172-PRC) Final Report
Appendix E Project Implementation Contractual Arrangement Jilin Urban Improvement Project Appendix E (TA 8172-PRC) Final Report INSTITUTIONAL & CONTRACTUAL ARRANGEMENT
Asian Development Bank
Project Agreement
Jilin Provincial Implementation Design Government (EA) Consultants Institute
Project implementation PMO Agreement (Under JHURCD)
IA 1 – Baicheng IA 2 - Baishan Municipal Municipal Government Government
Project Agreement Project Agreement
PIU 1 - Baicheng PIU 2 - Baishan PIU 3 - Baishan Roads & ISWM ISWM Water supply BEDZ Investment & Baishan Solid Waste Baishan Xibeicha Development Co. Ltd. Disposal Co. Ltd. Qiyuan Hydropower Co.
Supervision Supervision Supervision Company Company Company Contract Contract Contract Contractors/ Contractors/ Contractors/ Suppliers Suppliers Suppliers
EA = Executive Agency, JHURCD = Jilin Housing Urban Rural Construction Department, PMO = Project Management Office, IA = Implementing Agency, PIU = Project Implementation Unit, ISWM = Integrate Solid Waste Management, BEDZ = Baicheng Economic Development Zone
Jilin Urban Improvement Project Appendix F (TA 8172-PRC) Final Report
Appendix F Fund Flow Mechanism Jilin Urban Improvement Project Appendix F (TA 8172-PRC) Final Report FUND FLOW DIAGRAM
Asian Development Bank (ADB) Direct payment to contractors, consultants and suppliers
Loan
Ministry of Finance (On behalf of PRC)
Relending
imprest account account imprest Loan Payment (Typical) Reimbursement/ replenishment of of replenishment
Jilin Provincial Financial Department (On behalf of JPG) Imprest Account Imprest account payment
Onlending Onlending
Baishan Financial Baicheng Financial Bureau Bureau (On behalf of BSMG) (On behalf of BCMG)
Baishan Baishan Water Baicheng Roads & ISWM Supply ISWM Baishan Solid Waste Baishan Xibeicha Qiyuan BEDZ Development & Disposal Co. Ltd. Hydropower Co. Ltd Investment Co Ltd
Contractors, Contractors, Contractors, Suppliers, Suppliers, Suppliers, Consultants, Consultants, Consultants, Affected People Affected People Affected People
LEGEND: JPG = Jilin Provincial Government, BCMG = Baicheng Municipal Government, BCMG = Baishan Municipal Government, ISWM = Integrate Municipal Solid Waste Management, BEDZ = Baicheng Economic Development Zone Lending/onlending Loan repayment Disbursement/reimbursement
Jilin Urban Improvement Project Appendix G (TA 8172-PRC) Final Report
Appendix G Project Construction Schedule
App G - 1
Jilin Urban Improvement Project Appendix G (TA 8172-PRC) Final Report
Project Construction Schedule
Activities Start Finish 2014 (Year 1) 2015 (Year 2) 2016 (Year 3) 2017 (Year 4) 2018 (Year 5) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 Baicheng Roads & Municipal Services 1.1 Preliminary design Q1 2014 Q4 2015
1.2 Bidding document preparation Q1 2014 Q1 2017
1.3 Final Design Q2 2014 Q2 2016
1.4 Land acquisition and resettlement Q2 2014 Q2 2016
1.5 Bidding & contract award Q2 2014 Q4 2016
1.6 Road, bridge, utility construction Q2 2014 Q2 2018
2 Baicheng ISWM 2.1 Preliminary design Q1 2014 Q1 2017
2.2 Bidding document preparation Q2 2014 Q2 2015
2.3 Final Design Q3 2014 Q4 2015
2.4 Land acquisition and resettlement Q3 2014 Q4 2015
2.5 Bidding & contract award Q3 2014 Q1 2016
2.6 Sorting and composting facility Q4 2014 Q4 2015
2.7 MSW transfer stations construction Q3 2015 Q4 2017
2.8 Equipment procurement Q1 2016 Q2 2018
3 Baishan ISWM 3.1 Preliminary design Q1 2014 Q2 2015
3.2 Bidding document preparation Q2 2014 Q4 2015
3.3 Final Design Q3 2014 Q2 2016
3.4 Land acquisition and resettlement Q3 2014 Q4 2016
3.5 Bidding & contract award Q3 2014 Q4 2016
3.6 Sanitary landfill construction Q1 2015 Q4 2016
3.7 Sorting and composting facility Q2 2015 Q4 2016
3.8 MSW transfer stations construction Q3 2015 Q2 2018
3.9 Equipment procurement Q1 2017 Q2 2018
4 Baishan Water Supply 4.1 Preliminary design Q1 2014 Q4 2015
4.2 Bidding document preparation Q2 2014 Q4 2015
4.3 Final Design Q3 2014 Q2 2016
4.4 Land acquisition and resettlement Q3 2014 Q4 2016
4.5 Bidding & contract award Q3 2014 Q2 2016
4.6 Water transmission line construction Q4 2014 Q4 2016
4.7 Water treatment plant construction Q1 2015 Q4 2016
4.9 Water distribution network construction Q3 2015 Q2 2018
5 Capacity Development 5.1 Recruit and mobilize consultants Q3 2014 Q4 2014
5.2 Establish project management system Q4 2014 Q1 2015
5.3 Establish PPMS system Q4 2014 Q1 2015
5.4 Project implementation support Q4 2014 Q4 2018
5.5 Capacity development implementation Q2 2015 Q2 2018
5.6 Environmental monitoring Q4 2014 Q2 2018
5.7 Resettlement monitoring Q4 2014 Q2 2018
5.8 PPMS monitoring Q4 2014 Q2 2018 (Source: consultant)
App G - 2
Jilin Urban Improvement Project Appendix H (TA 8172-PRC) Final Report
Appendix H Detailed Cost Estimates and Financing Plan
Jilin Urban Improvement Project Appendix H (TA 8172-PRC) Final Report
DETAILED COST ESTIMATES AND FINANCING PLAN
1. For estimation of total costs, physical and price contingencies and financing charges during implementation are estimated.
2. The following key assumptions have been made:
(i) Taxes and duties are shown separately. Tax assumptions are as follows:
Tax Rate Base Value added tax 17.00% Sales Tax on civil works contract 3.41% Sales Composite tax on other items 5.00% Sales
(ii) Exchange Rate: CNY6.05= $1 as the average level from 2013 to 2018 (iii) All costs are in May 2013 prices. (iv) Physical contingencies are computed at 5%. (v) Price contingencies based on expected cumulative inflation over the implementation period are as follows:
2014 2015 2016 2017 2018 Average Domestic rate of price inflation 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% (%/year) Foreign rate of price inflation 2.20% 1.90% 1.80% 1.80% 1.80% 1.90% (%/year) Source: ADB documents.
3. Financing costs include capitalized interest and commitment fee charges. Interest during construction has been assumed at 2.03% which comprises the London interbank offered rate of 1.66% plus ADB margin of 0.4%. Front end fees are assumed to be waived. Interest rates and terms are as follows:
Total Period Interest Commitment Fee Interest Commitment Grace of the Loan Capitalized Capitalized into Rate Charge Period (in years) into Loan Loan ADB Loan 2.03 % 0.15% 25 5 YES YES
Project Investment Plan
4. The project investment cost is estimated at $367.14 million, including taxes and duties of $18.05 million and capacity and institutional strengthening of $3 million. The total cost includes physical and price contingencies, interest during construction. The indicative project investment plan is summarized in table below.
App H - 1 Jilin Urban Improvement Project Appendix H (TA 8172-PRC) Final Report
Table 1 Project Investment Plan ($ Million) Item Amounta Share of (CNY million) ($ million) Total (%) A. Ba se Costb 1. Baicheng Municipal Services 1,407.6 234.59 60.5% a. Urban infrastructures 1,213.7 202.28 52.1% b. Municipal solid waste management 193.9 32.32 8.3% 2. Baishan Water Supply 381.3 63.55 16.4% 3. Baishan Municipal Solid Waste 188.0 31.33 8.1% 4. Capacity Development and Institutional Strengthening 18.0 3.00 0.8% Subtotal (A) 1,994.8 332.47 85.7% B. Contingenciesc 287.6 47.93 12.4% C. Financing Charges During Implementationd 45.6 7.60 2.0% Total (A+B+C) 2,328.0 388.00 100.0% a Includes taxes and duties to be financed from ADB loan resources of: $16.57 million. b In mid 2013 prices. c Physical contingencies computed at 5% for civil works; and 5% for field research and development, training, surveys, and studies. Price contingences computed at 6.03% on foreign exchange costs and 9.37% on local currency cost; includes provisions for potential exchange rate fluctuation under the assumption of a purchasing power party exchange rate. d Includes interest and commitment charges. Interest during construction for ADB loan(s) has been computed at the 5- year forward London interbank offered rate plus a spread of 0.5% and additional 0.2% surcharge for ALM premium Commitment charges for an ADB loan are 0.15% per year to be charged on the undisbursed loan amount. Note: Numbers may not add precisely due to rounding. Source: Asian Development Bank estimates.
Financing Plan
5. The Government of the PRC has requested a loan of $150 million from ADB’s ordinary capital resources under ADB’s London interbank offered rate (LIBOR)-based lending facility. The loan will have a 25-year term including a grace period of 5 years, an interest rate determined in accordance with ADB’s LIBOR-based lending facility, a commitment charge of 0.15% per annum, and such other terms and conditions set forth in the draft loan and project agreements. The loan will cover civil works, equipment, Water resources protection, Environment and sanitation awareness building and Institutional strengthening and capacity development. The indicative financing plan is in the following table:
Table 2 Financing Plan ($ Million) Amount Share of Source (CNY million) ($ million) Total (%) Baicheng Municipal Services Asian Development Bank 600.00 100.00 25.77% Baicheng Municipal Government 1,056.75 176.12 45.39% Baishan Water Supply Asian Development Bank 210.00 35.00 9.02% Baishan Municipal Government 238.67 39.78 10.25% Baishan Municipal Solid Waste Asian Development Bank 90.00 15.00 3.87% Baishan Municipal Government 132.59 22.10 5.70% Total 2,328.00 388.00 100.00% Note: Numbers may not add precisely due to rounding. Source: Asian Development Bank estimates.
6. In addition to the $150 million loan requested from ADB, PMO confirmed that the local
App H - 2 Jilin Urban Improvement Project Appendix H (TA 8172-PRC) Final Report government will contribute counterpart funding for the Project activities. The Governments further confirmed that their counterpart funds will be sourced from local fiscal revenues or general budget. To give assurance of availability of counterpart funds, the government will provide commitment letters to ADB through the PMO. The overall total project cost by expenditure account, the detailed cost estimates by years, detailed cost estimates by project components, and allocation of ADB Loan Proceeds are shown in the following sections.
App H - 3 Jilin Urban Improvement Project Appendix H (TA 8172-PRC) Final Report
Table 3 Detailed Cost Estimates by Financier A. Detailed Cost Estimate by Expenditure Category (CNY million) ($ US Dollar million) Foreign Local Total Foreign Local Total % of Total Item Exchange Currency Cost Exchange Currency Cost Ba se Cost A. Investment Costs 1 Civil Works 102.41 921.71 1024.13 17.07 153.62 170.69 51.3% Baicheng Municipal Services 141.82 736.56 878.38 23.64 122.76 146.40 44.0% a. Urban nfrastructures 70.57 635.10 705.66 11.76 105.85 117.61 35.4% b. Municipal Solid Waste 11.27 101.47 112.74 1.88 16.91 18.79 5.7% Baishan Water Supply 16.80 151.24 168.04 2.80 25.21 28.01 8.4% Baishan Municipal Solid Waste 3.77 33.91 37.68 0.63 5.65 6.28 1.9% 2 Mechanical and Equipment 39.41 354.66 394.07 6.57 59.11 65.68 19.8% Baicheng Municipal Services 17.43 156.84 174.27 2.90 26.14 29.04 8.7% a. Urban nfrastructures 15.03 135.24 150.26 2.50 22.54 25.04 7.5% b. Municipal Solid Waste 2.40 21.61 24.01 0.40 3.60 4.00 1.2% Baishan Water Supply 15.07 135.61 150.68 2.51 22.60 25.11 7.6% Baishan Municipal Solid Waste 6.91 62.21 69.12 1.15 10.37 11.52 3.5% 3 Environment and Social Mitigation 2.56 23.06 25.62 0.43 3.84 4.27 1.3% Baicheng Municipal Services 0.45 4.05 4.50 0.08 0.68 0.75 0.2% a. Urban nfrastructures 0.39 3.50 3.88 0.06 0.58 0.65 0.2% b. Municipal Solid Waste 0.06 0.56 0.62 0.01 0.09 0.10 0.0% Baishan Water Supply 0.92 8.31 9.23 0.15 1.38 1.54 0.5% Baishan Municipal Solid Waste 1.19 10.70 11.89 0.20 1.78 1.98 0.6% 4 Land acquisition & resettlement 0.00 365.62 365.62 0.00 60.94 60.94 18.3% Baicheng Municipal Services 0.00 298.46 298.46 0.00 49.74 49.74 15.0% a. Urban nfrastructures 0.00 257.35 257.35 0.00 42.89 42.89 12.9% b. Municipal Solid Waste 0.00 41.12 41.12 0.00 6.85 6.85 2.1% Baishan Water Supply 0.00 14.92 14.92 0.00 2.49 2.49 0.7% Baishan Municipal Solid Waste 0.00 52.23 52.23 0.00 8.71 8.71 2.6% 5 Consultants 18.00 0.00 18.00 3.00 0.00 3.00 0.9% 6 Design, surevy and management 15.93 143.36 159.29 2.65 23.89 26.55 8.0% 7 Operation Capital 4.77 3.32 8.09 0.79 0.55 1.35 0.4% Subtotal (A) 183.08 1811.74 1994.81 30.51 301.96 332.47 100.0% B. Recurrent Costs 1 Salaries 0.00 0.00 0.000.00 0.00 0.00 0.0% 2 Accommodation 0.00 0.00 0.000.00 0.00 0.00 0.0% 3 Equipment Operation and Maintenance 0.00 0.00 0.000.00 0.00 0.00 0.0% Subtotal (B) 0.00 0.00 0.00 0.00 0.00 0.00 0.0% Total Base Cost 183.08 1811.74 1994.81 30.51 301.96 332.47 100.0% C. Contingencies 1 Physical 0.00 97.24 97.24 1.80 16.21 18.01 5.4% 2 Price 17.95 161.58 179.53 2.99 26.93 29.92 9.0% Subtotal (C) 28.76 258.82 287.58 4.79 43.14 47.93 14.4% D. Financing Charges During Implementation 1 Interest During Implementation 28.23 14.11 42.34 4.70 2.35 7.06 2.1% 2 Commitment Charges 3.27 0.00 3.27 0.54 0.00 0.54 0.2% Subtotal (D) 31.50 14.11 45.61 5.25 2.35 7.60 2.3% Total Project Cost (A+B+C+D) 243.33 2084.67 2328.00 40.56 347.45 388.00 116.7% (Source: Asian Development Bank) (See Table "Cost by Components" for notes)
App H - 4 Jilin Urban Improvement Project Appendix H (TA 8172-PRC) Final Report
Table 4: Detailed Cost Estimates by Years
App H - 5 Jilin Urban Improvement Project Appendix H (TA 8172-PRC) Final Report
Detailed Cost Estimates by Years ($ million) 2014 2015 2016 2017 2018 Item Total (Year 1) (Year 2) (Year 3) (Year 4) (Year 5) A. Investment Costs 1 Civil Works 170.69 6.14 46.06 92.13 138.19 24.57 Baicheng Municipal Services 136.40 2.73 20.46 40.92 61.38 10.91 a. Urban Infrastructures 117.61 2.35 17.64 35.28 52.92 9.41 b. Municipal Solid Waste 18.79 0.38 2.82 5.64 8.46 1.50 Baishan Water Supply 28.01 0.56 4.20 8.40 12.60 2.24 Baishan Municipal Solid Waste 6.28 0.13 0.94 1.88 2.83 0.50 2 Mechanical and Equipment 65.68 1.89 14.21 28.42 42.63 7.58 Baicheng Municipal Services 29.04 0.58 4.36 8.71 13.07 2.32 a. Urban Infrastructures 25.04 0.50 3.76 7.51 11.27 2.00 b. Municipal Solid Waste 4.00 0.08 0.60 1.20 1.80 0.32 Baishan Water Supply 25.11 0.50 3.77 7.53 11.30 2.01 Baishan Municipal Solid Waste 11.52 0.23 1.73 3.46 5.18 0.92 3 Environment and Social Mitigation 4.27 0.10 0.75 1.51 2.26 0.40 Baicheng Municipal Services 0.75 0.02 0.11 0.23 0.34 0.06 a. Urban Infrastructures 0.65 0.01 0.10 0.19 0.29 0.05 b. Municipal Solid Waste 0.10 0.00 0.02 0.03 0.05 0.01 Baishan Water Supply 1.54 0.03 0.23 0.46 0.69 0.12 Baishan Municipal Solid Waste 1.98 0.04 0.30 0.59 0.89 0.16 4 Land Acquisition and Resettlement 60.94 2.21 16.60 33.20 49.81 8.85 Baicheng Municipal Services 49.74 0.99 7.46 14.92 22.38 3.98 a. Urban Infrastructures 42.89 0.86 6.43 12.87 19.30 3.43 b. Municipal Solid Waste 6.85 0.14 1.03 2.06 3.08 0.55 Baishan Water Supply 2.49 0.05 0.37 0.75 1.12 0.20 Baishan Municipal Solid Waste 8.71 0.17 1.31 2.61 3.92 0.70 5 Consultants 3.00 0.06 0.45 0.90 1.35 0.24 6 Survey, Design and Management 26.55 0.53 3.98 7.96 11.95 2.12 7 Operation Capital 1.35 0.03 0.20 0.40 0.61 0.11 Subtotal (A) 332.47 10.97 82.26 164.52 246.78 43.87 B. Recurrent Costs 1 Salaries 0.00 0.00 0.00 0.00 0.00 0.00 2 Accommodation 0.00 0.00 0.00 0.00 0.00 0.00 3 Equipment Operation and Maintenance 0.00 0.00 0.00 0.00 0.00 0.00 Subtotal (B) 0.00 0.00 0.00 0.00 0.00 0.00 Total Base Cost 332.47 10.97 82.26 164.52 246.78 43.87 C. Contingencies 47.93 0.96 7.19 14.38 21.57 3.83 1 Physical 18.0 0.36 2.70 5.40 8.10 1.44 2 Price 29.9 0.60 4.49 8.98 13.46 2.39 D. Financing Charges During Implementation 7.60 0.15 1.14 2.28 3.42 0.61 1 Interest during construction 7.1 0.14 1.06 2.12 3.18 0.56 2 commitment charges 0.5 0.01 0.08 0.16 0.25 0.04 Total Project Cost (A+B+C+D) 388.00 12.08 90.59 181.18 271.77 48.32 % Total Project Cost 100% 3% 23% 47% 70% 12% (Source: Asian Development Bank) (See Table "Cost by Components" for notes)
App H - 6 Jilin Urban Improvement Project Appendix H (TA 8172-PRC) Final Report
Table 5: Detailed Cost Estimates by Components Detailed Cost Estimates by Outputs/Components ($ million)a Baicheng Municipal Services Baishan Water Supply Baishan Municipal Solid Waste Total Cost % of Cost % of Cost % of Cost Item Amount Category Amount Category Amount Category A. Investment Costsb 1 Civil Works 170.69 136.40 79.9% 28.01 16.4% 6.28 3.7% 2 Mechanical and Equipment 65.68 29.04 44.2% 25.11 38.2% 11.52 17.5% 3 Environment and Social Mitigation 4.27 0.75 17.6% 1.54 36.0% 1.98 46.4% 4 Land Acquisition and Resettlement 60.94 49.74 81.6% 2.49 4.1% 8.71 14.3% 5 Consultants 3.00 2.00 66.7% 0.70 23.3% 0.30 10.0% 6 Survey, Design and Management 26.55 18.04 67.9% 5.94 22.4% 2.57 9.7% 7 Operation Capital 1.35 0.62 45.6% 0.46 34.3% 0.27 20.0% Subtotal (A) 332.47 236.59 71.2% 64.25 19.3% 31.63 9.5% B. Recurrent Costs 1 Salaries 0.00 0.00 0.0% 0.00 0.0% 0.00 0.0% 2 Accommodation 0.00 0.00 0.0% 0.00 0.0% 0.00 0.0% 3 Equipment Operation and Maintenance 0.00 0.00 0.0% 0.00 0.0% 0.00 0.0% Subtotal (B) 0.00 0.00 0.0% 0.00 0.0% 0.00 0.0% Total Base Cost 332.47 236.59 71.2% 64.25 19.3% 31.63 9.5% C. Contingenciesd 1 Physical 18.01 13.13 72.9% 3.02 16.7% 1.86 10.3% 2 Price 29.92 21.33 71.3% 5.74 19.2% 2.85 9.5% Subtotal (C) 47.93 34.46 71.9% 8.76 18.3% 4.71 9.8% D. Financing Charges During Implementationd 1 Interest During Implementation 7.06 4.70 66.7% 1.65 23.3% 0.71 10.0% 2 Commitment Charges 0.54 0.36 66.7% 0.13 23.3% 0.05 10.0% Subtotal (D) 7.60 5.07 66.7% 1.77 23.3% 0.76 10.0% Total Project Cost (A+B+C+D) 388.00 276.12 71.2% 74.78 19.3% 37.10 9.6% a Includes taxes and duties to be financed from ADB loan resources of: $16.57 million. b In mid 2013 prices. c Physical contingencies computed at 5% for civil w orks; and 5% for field research and development, training, surveys, and studies. Price contingences computed at 6.03% on foreign exchange costs and 9.37% on local currency cost; includes provisions for potential exchange rate fluctuation under the assumption of a purchasing pow er party exchange rate. Includes interest and commitment charges. Interest during construction for ADB loan(s) has been computed at the 5-year forw ard London interbank offered rate plus a spread of 0.5% and d additional 0.2% surcharge for ALM premium Commitment charges for an ADB loan are 0.15% per year to be charged on the undisbursed loan amount. (Source: Asian Development Bank)
App H - 7 Jilin Urban Improvement Project Appendix H (TA 8172-PRC) Final Report
Table 6 Allocation and Withdrawal of Loan Proceeds
CATEGORY ADB FINANCING
Amount Allocated for ADB Percentage and Basis for No. Item Financing ($) Withdrawal Category Subcategory 1 Civil Works 73,720,000 42.4% of total expenditure 2 Goods 65,678,100 100.0% of total expenditure 3 Capacity Development 3,000,000 100.0% of total expenditure 4 Interest and Commitment Charge 7,601,900 100.0% of amount due on ADB loan Total 150,000,000 Note: Numbers may not add precisely due to rounding. (Source: Asian Development Bank)
App H - 8 Jilin Urban Improvement Project Appendix I (TA 8172-PRC) Final Report
Appendix I Financial Analsysis
Jilin Urban Improvement Project Appendix I (TA 8172-PRC) Final Report
FINANCIAL ANALYSIS
1. A financial analysis has been undertaken in accordance with Asian Development Bank (ADB) guidelines 1 . The majority of project components are not generating revenues and a financial sustainability and fiscal impact analysis was carried out. For the only revenue- generating subcomponent, i.e., Baishan improved water supply, the financial viability was assessed and tariff analysis was performed.
A. Non-Revenue-Generating Components
2. Financial sustainability analysis in terms of the project components’ impact on local fiscal revenue was carried out for the executing agencies and end borrowers, the Baicheng Municipal Government (BCMG) and Baishan Municipal Government (BSMG). The BCMG and BSMG will provide counterpart funding during implementation, pay debt service, and provide operation and maintenance (O&M) funds for improved municipal services in Baicheng and ISWM in Baishan, respectively. A detailed review of the revenue and expenditure statements of the last 5 years (2008–2012) was undertaken to assess historical financial performance; capital structure; generation of internal funds to support current operations, especially the ability to service debts; and ability to finance operation and maintenance of the non-revenue-generating components after construction. Projections were made for the BCMG’s and BSMG's likely financial performance for a period of operations after component commissioning2.
3. A fiscal impact assessment was carried out by comparing annual revenues from the identified financing sources with the annual counterpart funds, required capital expenditures during project implementation, and the recurrent cost of O&M and debt service of the project components. Interest and principal repayments for the ADB loan are estimated based on a maturity of 25 years, including a grace period of 5 years.
4. Historical revenue and expenditure. The historical financial performance was analyzed to determine whether it can provide the required counterpart funds during construction and necessary funds for O&M and debt service during operation. In addition, the annual average growth rate of revenues and expenditures during the project period is calculated. The sources of income are various forms of taxes—e.g., value added tax (VAT), business tax, income tax, resource tax, real property tax—but also non-tax revenues and subsidies and/or direct transfers from other levels of
1 ADB. 2005. Financial Management and Analysis of Projects. Manila and ADB.2009. Financial Due Diligence: A Methodology Note. Manila. 2 Based on generally accepted criteria employed by the World Bank, the counterpart contributions are considered to be affordable by the municipality if the required annual amount does not exceed 15%–20% of the projected annual construction budget. Since it is difficult to assess the construction or investment component of the municipal budget from data given, the annual contribution is compared with overall annual municipal expenditure and also as a share of special infrastructure projects that are funded by the government. In the case of debt service, the rule of thumb is that debt service payments associated with the project will not cause concern if they do not exceed 5% of municipal revenues.
Jilin Urban Improvement Project Appendix I (TA 8172-PRC) Final Report
government. Expenditures are categorized into general public services, education, public safety, personnel welfare, environmental protection, agriculture, forestry and water, and transportation.
5. Table 1 shows that the BSMG's total fiscal revenues have grown at an average annual rate of 21% from CNY33.84 billion in 2008 to CNY75.88 billion in 2012. Over the same period, municipal government expenditures have grown at an annual rate of 22%. BCMG’s total fiscal revenues and expenditures followed a very similar pattern. For this reason, the table for BCMG is omitted here.
Table 1. Historical Revenue and Expenditure of BSMG
Item 2008 2009 2010 2011 2012 Revenues (CNY, million) Municipality Fiscal Revenues 1930.3 3133.03 4073.59 4324.99 5,229.90 1. General Budget Revenue 1,558.68 1,977.69 2,527.08 3,553.08 4,363.04 2.Funds Revenues 371.62 1,155.34 1,546.51 771.91 866.86 Provincial transfers 191.79 213.90 225.29 284.79 328.50 Central Government Transfers 1,261.53 1,445.76 1,572.28 1,960.99 2,029.56 Total 3,383.62 4,792.69 5,871.16 6,570.77 7,587.96 Expenditures (CNY million) General Public Service 945.76 1,164.50 1,330.63 1,469.72 1,328.43 Public Safety 338.05 438.05 548.02 589.40 788.87 Education 890.03 1,147.94 1,171.97 1,481.97 2,420.13 Science and Technology 30.35 27.87 52.11 48.99 69.51 Social Insurance and Employment 1,364.39 1,995.20 1,966.25 2,229.18 2,313.26 Medical and Sanitation 294.29 532.14 764.70 913.44 937.07 Environmental Protection 137.06 214.40 562.51 959.87 708.35 Agriculture, Forestry and Water Affairs 531.10 736.57 988.04 1,232.01 1,358.44 Transportation 170.41 221.07 510.54 673.65 550.55 Others 101.77 163.88 1,246.53 2,045.16 2,314.33 Total 6,330.96 9,005.81 11,911.34 13,927.93 15,199.33 Surplus - 2,947.34 - 4,213.12 - 6,040.18 - 7,357.16 - 7,611.37 Source: BSMG
6. Results of fiscal impact analysis and affordability assessment. Overall project funding entails: ADB will provide a loan of $150.0 million (CNY900 million equivalent) and the BCMG and BSMG will provide equity contributions of $182.7 million (CNY 1096.3 million equivalent) and $64.0 million (CNY 384.1 million equivalent) respectively.
7. Assessment of projected annual revenues shows that both BCMG and BSMG have sufficient counterpart funds for the project. The analysis indicates that based on the funding sources identified during project preparation (including new budgets, subsidies, and allocations that will be earmarked) all project components are expected to have sufficient funds available from counterpart funds during implementation. The municipal contributions were analyzed in terms of affordability relative to projected revenues and expenditures during 2014–2019. BCMG will provide about CNY1096.3 million Jilin Urban Improvement Project Appendix I (TA 8172-PRC) Final Report
counterpart funds during implementation which comprise 0.28% to 3.97% of projected revenues during the implementation period. The O&M for the non-revenue generating component and the debt service are about 0.05% to 0.37% of annual projected revenues till 2030. BSMG will provide CNY384.1 million counterpart funds which will comprise a much smaller proportions of projected fiscal revenues. The O&M and debt service are also lower. These impacts on fiscal revenues are depicted in Table 2.
Table 2: Counterpart Funds, Debt Service, and Operation and Maintenance as Percentage of Total Revenue and Expenditure
Item 2014 2015 2016 2017 2018 2019 2020 2024 2025 2030 BSMG Annual counterpart funds (CNY million) 7.17 53.18 111.15 174.66 37.96 % of revenues 0.06% 0.38% 0.64% 0.82% 0.15% Annual debt service, and O&M costs 36.24 37.38 38.92 39.41 35.63 % of revenues 0.11% 0.09% 0.04% 0.03% 0.01% BCMG Annual counterpart funds (CNY million) 20.51 153.85 319.69 499.08 103.21 % of revenues 0.28 1.77 3.07 3.97 0.68 Annual debt service, and O&M costs 68.35 68.95 72.04 73.02 79.65 % of revenues 0.37 0.31 0.14 0.12 0.05 O&M = operation and maintenance. Source: Asian Development Bank estimates.
8. Furthermore, the EA has selected the 10% annuity increase repayment scheme, which is more back-end loaded (compared with the straight-line method). This will further alleviate the repayment burden upfront for more efficient cash management of the project. The ratios of debt service to total revenues as shown in Table 2 are well below the threshold.
B. Revenue-Generating Subcomponents
9. A financial analysis was carried out, including estimation of the financial internal rate of return (FIRR) and weighted average cost of capital (WACC). Sensitivity tests were undertaken to test the robustness of the FIRR to changes in the underlying parameters, i.e., increases in capital and operating costs and reduction in revenues, or delays in implementation. Financial projections were prepared to ascertain the overall financial sustainability of the subcomponents’ operation.
10. The Baishan improved water supply service component will consist of 28.2km of source water transmission pipelines, a 50,000 tons daily capacity treatment plant, and 51km of distribution pipeline networks. However, 6.8 km of the source water transmission pipelines will serve the purpose of supplying water for Jiangyuan district, which does not constitute any financial benefits for the proposed project. Thus this part of the investment cost is deducted from the FIRR calculation. The benefits accrue from incremental water sales, improved NRW ratio, and proposed tariff changes. Jilin Urban Improvement Project Appendix I (TA 8172-PRC) Final Report
11. Finally, the affordability of tariffs was assessed by determining the percentage of household income to meet the estimated monthly bill for water supply and wastewater services.
12. The following assumptions underlie the analysis: (i) all costs are expressed in Mid 2013 prices; (ii) The Project is analyzed over a 20-year period excluding construction period, and the residual value is not considered. (iii) Demand projections are adopted in the FSR. (iv) Foreign exchange rate of CNY6.00 per US$1.00 is used when converting foreign exchange costs to their local currency equivalent. (v) Operation and maintenance costs include personnel salaries and welfare, plant maintenance costs, administration, insurance, taxes, power cost, and other expenses. (vi) Capital cost includes the base cost of the revenue generating subcomponent, including the investment cost for the associated water supply network pipelines, and physical contingencies but excludes price contingencies and financial charges during development (as a result of debt financing). (vii) The revenues from the revenue- generating component will be derived from the water sales. (viii) Net cash flows from the component were determined after income taxes. Income tax was calculated at 25% and sale tax at 6%. (ix) Expenses also include depreciation at 4% of net fixed assets. For the interest during construction, 5-year swap rate is used (adding maturity premium and plus ADB margin of 0.5%, maturity premium of 0.2, an interest rebate of 0.16%); for projection of debt service, repayment is assumed to be in 10 annuity increase method, 20-year swap rate is used and a 20-year repayment period for the ordinary capital resources (OCR) loan. (x) Interest during construction is capitalized. (xi) Amortization period remains 25 years including 5-year grace period. (xii) Technical data and costs were obtained from the revised project feasibility study report (FSR) to form the basis of the financial analysis and FIRR.
13. Financial internal rate of return and sensitivity. In line with the PRC government guideline, an Increasing Block Tariffs (IBT) scheme with appropriate gradual tariff increase will be implemented by the completion of the project implementation (2018), to achieve full cost recovery. In particular, assume to fully implement IBT scheme by 2019 with CNY2.30/t for the first block (0-2.4 tons/month/capita), CNY3.45/t for the second block (2.4-4.1 tons/month/capita), CNY4.60 (4.1 tons and up) for the third block, complying the ratio suggested by national Guideline; a 15% tariff increase by 2030 for all three blocks. Assume that the leakage ratio for the newly constructed distribution network is 15%, and the plant operates at its full capacity, the financial internal rate of return for Baishan water supply component is calculated at 5.82%, which is higher than the WACC at 2.58%. The revenue-generating component of the project, while comprising only a relatively small portion of total project costs, is therefore considered to be financially viable. The results of sensitivity analysis are shown in Table 3. The project is most sensitive to benefit reduction of which FIRR falls to 4.46% if the benefits reduce by 5%.
Jilin Urban Improvement Project Appendix I (TA 8172-PRC) Final Report
Tabl e 3. FIRR and Sensitivity Analyses
Cases FIRR NPV(CNY million) Base Case 5.82% 155.4 (i) Benefit reduction 5% 4.46% 79.5 (ii) Investment cost overrun 5% 4.74% 97.0 (iii) O&M Cost Increase 10% 5.03% 105.8 (iv) Delay in Implementation one year 5.20% 114.0 (v) Combination of (i), (ii), and (iii) 3.83% 54.4
14. Tariff and affordability analysis. The tariff analysis includes assessments of affordability to project beneficiaries and of the agreed degree of cost recovery during operation. The primary social objective of water tariff structures should be to ensure that all members of the community are able to afford access to water services without placing an undue burden on their household expenditures. Based on generally accepted criteria employed by the World Bank, the water Tariff is affordable where it does not exceed 5% of annual household incomes for water consumption. Results summarized in Table 4 show that the share of income spent on water is below the benchmark of 5% of household income annual. Table 4: Affordability Analysis Items 2019 2020 2021 2022 2025 2030 2035 Domestic Tariff (CNY/m3) 2.80 2.80 2.80 2.80 2.80 3.20 3.20 Average Income HH 35293 38116 41165 44459 56005 82290 120911 Water bill CNY/year 164 164 164 164 164 187 187 Affordability (% HH Income) – Water 0.46% 0.43% 0.40% 0.37% 0.29% 0.23% 0.15%
Low Income HH 2516 2717 2934 3169 3992 5866 8619 Water bill CNY/annual a 92 92 92 92 92 105 105 Affordability (% HH Income) – Water 3.66% 3.39% 3.13% 2.90% 2.30% 1.79% 1.22%
Note: HH = Household; m3 = cubic meter. a consumption of 90 lpcd for low income household and 120 lpcd for the average income household. Source: Income data from PMO.
Jilin Urban Improvement Project Appendix J (TA 8172-PRC) Final Report
Appendix J Economic Analysis
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Jilin Urban Improvement Project Appendix J (TA 8172-PRC) Final Report
ECONOMIC ANALYSIS
A. Introduction
1. Baicheng municipality was established in 1993 and gained rapid economic growth. The GDP grew from CNY3.428 billion in 1993 to CNY 61.54 billion in 2012, or 17.8 times of that in 1993. Capital investment grew from CNY1.1 billion to CNY46.7 billion, or a 43 times increase. Fiscal revenue increased from 0.25 billion to CNY4.86 billion in the same period of time. At the same time, infrastructure developed considerably, e.g., a total of 418 km of urban roads were constructed, and over 40 km of sewer pipeline networks were either newly built or renovated, while the sewage treatment ratio increased from 26.4% to over 60%. By the end of 2012, urban residents’ per capita disposable income reached CNY 19500, a 10.2 times increase of 1993 level. Rural residents’ net income reached CNY6200, or 7.9 times of 1993 level.
2. In the most recent 5 years, Baicheng’s annual GDP growth rate sat at 19%, and the net growth ranked the first in Jilin for two consecutive years. Per capita GDP reaches CNY26100, or 2.8 times of the value in 2006. Annual total fiscal revenue growth was 22%. The city implemented 726 projects with single project investment value over CNY30 million. Foreign capital utilization reached CNY124.7 billion in the past 5 years, or 4 times of the previous 5 year span.
3. The city of Baishan experienced similar growth pattern. In 2012, total GDP of Baishan was CNY60.06 billion, or 12.4% growth at constant price. Per capita GDP was CNY46853. Total budgetary fiscal revenue was CNY6.72 billion, an increase of 15.9%. Foreign direct investment continued at a fast pace, with US$178.6 million, an increase of 16.3%. In 2012, per capita disposable income for the urban residents was CNY21282, an increase of 15.1%.
4. However, both cities are growing and face urgent needs for investments on their infrastructures. The proposed project will deal with the demand for solid waste management in both cities, urban road networks in the new area in Baicheng, and water supply in Baishan. The project will deliver four outputs: (i) Efficient Integrated Solid Waste Management (ISWM) System in Baishan & Baicheng; (ii) Improved Water Supply Management in Baishan; (iii) Improved Coverage of Urban Roads and Municipal Services in Baicheng; (iv) Improved Capacity and Institutional Arrangement.
B. Justification
5. The total MSW amount increased from 31.3 million tons in 1980 to 164 million tons in 2011. Currently, waste composition in China is dominated by a high organic and moisture content, since the concentration of kitchen waste in urban solid waste makes up the highest proportion (at approximately 60%) of the waste stream. According to China Statistical Yearbook series, the total amount of MSW collected and transported was 164 million tons in 2011, of which 80% was treated and 76.9% of the treated SW was landfilled, 19.9% was incinerated and 3.3% in other category.
6. Currently, there are about 660 cities in China that produce about 160 million tons of municipal solid waste annually and, account for 28% of the world’s MSW each year. In 2004, China surpassed the United States as the world’s largest waste generator. China’s per capita waste generation rate is 0.5 to 1.0 kg/ capita/day, while a typical developed country generates
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Jilin Urban Improvement Project Appendix J (TA 8172-PRC) Final Report
1.43 to 2.08 kg/capita/day. The MSW generation rate also varies among different cities in China, e. g., with rates of about 1.00 kg/capita/day in Beijing in 2011, 0.92 kg/capita/day in Shanghai, 0.85 kg/capita/day in Jilin’s urban areas, and only 0.41 kg/capita/day in Jiangxi’s cities.
7. For residential areas, there are two type of urban solid waste collection: collection at roadsides and household collection. Road- side waste collection is a method whereby residents sort recyclable items into the specific collection containers offered by the local authorities. With fast urbanization, high- rise buildings are appearing in large numbers. Now residents are advised to place their waste in bags and deposit their garbage in the appointed garbage bins outside the residents’ house for collection under the new system, and then the waste is transported by truck to a transfer station. This system is usually carried out by a community or business entity in China.
8. Solid waste disposal and/or collection/treatment fee levies are extremely low in China and could barely cover costs and only offset a small fraction of collection, transport and treatment cost for the safe disposal of waste. Moreover, existing policies in China are based on a flat rate charging systems regardless of the use of the service and thus present no economic incentives for waste reduction and recycling for waste generation. For example, in many of Jilin’s cities, the MSW fee per household is now 5 RMB/month (US$0.8/month). It is documented in the literature that the construction cost of municipal solid waste disposal establishments in was far more than the fees collectable. Such a strict flat rate approach performs poorly as it is contrary to the “polluter pays” principle and is unable to create economic incentives for waste producers to reduce and recover waste. On the other hand, although a weight/ volume-based Pay-As-You-Throw (PAYT) system may provide incentives to reduce waste generation, it will likely increase the authorities’ administrative costs and cause illegal dumping. It is concluded that pilot projects and successful experience adopting PAYT system should be promoted.
9. Both project cities are lacking sound waste collection systems, leading small dump sites within the urban area, contaminating the surface and ground waters, and the air quality. There is also no systematic waste sorting, retrieval of landfill gases, and minimal effort in MSW reduce, reuse and recycle.
10. The proposed project also includes a water supply subproject in Baishan city. Water supply in Baishan relies on surface water sources (Qujiaying reservoir) with a current capacity of 60,000 tons per day and shallow groundwater sources at 24,000 tons capacity. However the reservoir is outdated and needs urgent rehabilitation. The groundwater suffers from severe pollution and must be phased out as early as possible. The current scheme is also inadequate to serve the population and can not ensure 24-hour water supply service. The non-revenue water level is surprisingly high, i.e., estimated at around 65%. Xibeicha reservoir is a suitable alternative source and the proposed project will finance the treatment facility of 40,000 m3/day with pipeline networks.
11. Due to the rapid urbanization process, the exiting urban area at the center of Baicheng City cannot meet the urban development needs. A new urban area in the west of the present city is to be developed to facilitate urbanization. According to Baicheng urban development master plan, the western and southern parts of the city will be the new urban center to host the municipal government, as well as the new cultural and residential center. In the past several years, the BMG has already invested and built the new areas by constructing some of the new urban roads and municipal facilities. However, the urban road network is still largely incomplete with the missing links and sections. The proposed project will build the remaining urban roads
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Jilin Urban Improvement Project Appendix J (TA 8172-PRC) Final Report
and bridges, water supply, sanitary sewers, power supply, stormwater drainage, public transport, street lightings, etc.
C. Demand Analysis
12. Daily solid waste generation is about 322 tons in Baishan, or 1.18kg per head, based on the urban population of 273 thousand in Baishan. Currently there is a sanitation landfill with an area of 4.28 ha, and daily treatment capacity of 350t. However, due to low design standard and lack of funds and experience, breakages occur in bottom and sides of the impermeable membrane and causing contamination of the downstream water bodies by the leachate. Local residents blockaded the entrance of the landfill and the waste transfer trucks can not enter. Thus currently solid waste is dumped at Nanshan landfill which is already abandoned. The 15 garbage collection and transfer stations are in poor conditions and rehabilitation is needed. Thus, the proposed project will rehabilitate and extend the existing sanitary landfill with a total capacity of 350 wet tons per day; rehabilitate 15 existing transfer stations and procurement of compressible waste containers, waste transfer vehicles, collection trucks etc.; and procure waste collection, street cleaning and snow removal equipment.
Table xx. Solid waste generation projection for Baishan
Year Population (10k) Per capita SW (kg/capita/d) Daily SW generation (t/d) 2011 27.30 1.18 322.14 2012 28.06 1.16 325.54 2013 28.85 1.14 328.89 2014 29.66 1.12 332.16 2015 30.49 1.10 335.36 2016 31.34 1.08 338.48 2017 32.22 1.06 341.51 2018 33.12 1.04 344.45 2019 34.05 1.02 347.28 2020 35.00 1.00 350.00
13. Baicheng has a total urban population of 350 thousand in 2012. Its daily solid waste generated is 420t and per capita level is 1.2 kg. By 2020, it is projected that the urban population will be 509 thousand and daily per capita solid waste will be reduced to 1.0 kg. The water and organic content is high for domestic solid waste for Baicheng. Leachate is therefore a serious problem. The 4 operating garbage collection and transfer stations are very inefficient and the equipment and vehicles are out-of-date. The proposed project will seal the existing landfill site; upgrading the MSW stations, and purchase treatment facilities. In particular, the north side new landfill will need operating vehicles, and the south side needs upgrading of the leachate treatment plant, gas collection and treatment, and surface sealing. 10 new mobile waste compaction transfer stations are to be constructed and the associated compaction vehicles are to be procured. Similar to Baishan, equipment for waste collection, street cleaning and snow removal are to be procured under the project.
14. There are four water sources for Baishan water supply. Qiujiaying Reservoir can provide a steady water supply to the city. The water supply capacity is 100,000 m3/d, and currently it supplies 80,000 m3/d water for Baishan. The other water sources are Pearl Gate (Zhenzhumen Gate), Kucanggou, and Jinying, with the capacities of 9,000 m3/d, 5,000 m3/d, 10,000 m3/d respectively, all of which are ground water sources. It is a consensus that due to severe
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Jilin Urban Improvement Project Appendix J (TA 8172-PRC) Final Report
groundwater pollution, groundwater sources are to be phased out. The following table, adapted from the FSR, shows the projection of maximum daily domestic water consumption in Baishan, both in per capita and aggregate terms.
Table xx. Composite domestic water consumption 2015 2020 Planned urban population (10k) 32.1 34.5 Water supply ratio (%) 100 100 Comprehensive daily domestic water 190 210 Comprehensiveti daily (L/ domesticit /d) water 5.49 7.25 ti (10k 3/d) 15. The FSR assumes that the comprehensive daily domestic water consumption per capita is averaged at 200 liters which implies total water demand to be at 84.9 kt (thousand tons) per day in 2015 and 116.7 kt in 2020. The second approach is the maximum daily per capita domestic water consumption approach which assumes maximum daily per capita water consumption is 350l in 2015 and 400l in 2020. With proper conversion, the average daily total water demand is then 112.35 kt in 2015 and 138.0 kt in 2020. The third approach is based on the construction areas which results a projection of daily total water demand of 118.8 kt in 2015 and 133.4 kt in 2020. The average of the three approaches yields a water demand of 105.4 kt in 2015 and 129.4 kt in 2020.
16. Water demand projections are based on projected service area population, and current and future consumption. Assumptions include the following: (i) per capita water consumption assumptions specified above; (ii) annual population increase by 0.8% to 2.1% in different project areas; (iii) constant household size; (iv) 50% of households connected to water supply in first year of operation, 70% in the second year and 100% since the third years for all subcomponents; (v) non-domestic demand based on actual conditions; and (vi) losses at 30% of water production1.
D. Water Tariff
17. To accelerate the tariff reform in water supply, in the Guidance that the NDRC and Ministry of Housing and Urban-Rural Development recently issued (NDRC (2013)-2676), it is required that by the end of 2015, cities authorities shall apply the tiered water pricing system on all urban residents; towns’ authorities shall actively promote the implementation of the system if conditions allow.2
18. Increasing block tariffs (IBTs) is a popular tariff structure in many developing countries. In a survey of urban water utilities in Asia, ADB (1993)3 found that the majority of utilities in their samples (20 out of 32) used an IBT structure.
19. In the Guideline, at least three tiers should be set up. The Guideline also specifies that for Jilin province, the first tier is from 0 to 2.4 tons/capita/month, and the second tier ranges from
1 See in a recent ADB financed Project in China (http://www2.adb.org/Documents/RRPs/PRC/40634/40634-01-prc- ea.pdf) 2 The increasing block tariffs (IBTs) or tiered water pricing is based on the volumetric component. In this tariff structure, water use per billing period is divided into a number of discrete blocks for which separate prices apply. 3 Asian Development Bank, 1993. Water Utilities Handbook: Asian and Pacific Region. Manila, Philippines.
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Jilin Urban Improvement Project Appendix J (TA 8172-PRC) Final Report
2.4/t/c/m to 4.1t/c/m, and the third tier corresponds to 4.1t/c/m and upward. According to the Urban Water Supply Tariff Management Guidelines issued in 2004, the price ratios of the three tiers are set at 1:1.5:2. Thus preserving the current uniform residential water tariff at CNY2.30/t at the first tier, the prices for the second and third tiers are therefore CNY3.45/t and CNY4.60/t respectively.
Figure. Proposed Increasing Block Tariff (IBT) for Water Supply in Jilin
E. Economic Returns
20. The base case EIRR calculation for the whole project is presented in the following table. At a 12% discount rate, the project is found to be economically viable. The NPV for the whole project is CNY 553.9 million and the base case EIRR for the whole project is 16.0%, which exceeds the EOCC. The EIRRs for the Baicheng Improved Municipal Service, Baishan Improved Water Supply Management, and Baishan efficient ISWM are 16.0%, 16.0%, and 15.1%. The sensitivity analysis shows that the project’s economic return is robust against negative impacts from benefit reduction, cost overrun and project implementation delay. The results of the sensitivity analysis are presented below.
Table xx. Sensitivity Analysis Cases EIRR NPV(CNY million) Base Case 16.0% 553.9 (i) Benefits reduce 10% 14.7% 363.6 (ii) Investment cost increase 10% 14.9% 433.9 (iii) delay one year 14.7% 409.9 (iv) Combination of (i), (ii), and (iii) 12.5% 70.2
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Jilin Urban Improvement Project Appendix K (TA 8172-PRC) Final Report
Appendix K Procurement Plan
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Jilin Urban Improvement Project Appendix K (TA 8172-PRC) Final Report
PROCUREMENT PLAN
Basic Data Project Name: Jilin Urban Improvement Project Project Number: Approve Number: Country: People’s Republic of China Executing Agency: Jilin Provincial Government Loan Amount: $150.0 ADB Financing: Non -ADB Financing: Date of First Procurement Plan: (loan approval date) Date of this Procurement Plan: 6 Jan 2014
A. Process 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
International Competitive Bidding (ICB) for Works $ 10 million or more International Competitive Bidding for Goods $ 1 million or more National Competitive Bidding (NCB) for Works Beneath that stated for ICB Works National Competitive Bidding for Goods Beneath that stated for ICB Goods Shopping for Works Below $100,000 Shopping for Goods Below $100,000
Consulting Services Method Comments
Quality and Cost Based Selection (QCBS) Quality and Cost Ratio = 90:10 Quality Based Selection Consultant Qualification Selection Least Cost selection Fixed Budget Selection
2. Goods and Works Contracts Estimated to Cost $1 Million or More
The following table lists goods and works contracts for which the procurement activity is either ongoing or expected to commence within the next 18 months.
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Jilin Urban Improvement Project Appendix K (TA 8172-PRC) Final Report
Package Estimated Procurement Review Bidding Advertisement No General Description Value Method (Prior/Post) Procedure (Quarter/Year) Comme nts Baicheng Roads and Bridges Civil Work Third Ring Road I (Xingfu Bei Street - CBC1 $18,300,712 ICB Prior 1S2E Q1/2016 Mianfang Road) Third Ring Road II (Mianfang Road - CBC2 $17,114,104 ICB Prior 1S2E Q1/2015 RR underpass) Third Ring Road III (RR underpass - CBC3 $8,724,377 NCB Post 1S2E Q1/2015 Taobai Highway) Xiangyang Street I (Third Ring Road - CBC4 $9,021,975 NCB Post 1S2E Q3/2014 Mianfang Road) Xiangyang Street II (Mianfang Rd - CBC5 $19,988,976 ICB (AC & RF) Prior 1S2E Q3/2015 Xinyi Rd) + Xinhua Xi Road CBC6 Shengli Road $6,954,216 NCB (AC & RF) Prior 1S2E Q3/2014 CBC7 Xingfu Bei Street $4,891,600 NCB Post 1S2E Q1/2016 Nanyi Rd & Taoerhe Rd (including the CBC8 $9,598,468 NCB Post 1S2E Q4/2014 bridge) CBC9 Chunyang Road $8,982,864 NCB (AC & RF) Prior 1S2E Q3/2014 CBC10 Xinggong Road $5,781,910 NCB Post 1S2E Q3/2016 CBC11 Third Ring Road RR Underpass $6,492,353 NCB Post 1S2E Q2/2015 CBC12 MSW Sorting and Composting Center $1,488,822 NCB Post 1S2E Q3/2014
Equipment Supply & Installation EBC1 ITS and Traffic Control $3,021,667 ICB Prior 1S2E Q4/2016 EBC2 Stormwater & Sewer Pump Stations1 $1,224,180 ICB Prior 1S2E Q4/2015 EBC3 Heating Pipe Network $11,808,148 ICB Prior 1S2E Q3/2014
EBC5 Street Lighting $2,684,917 ICB Prior 1S2E Q4/2014 MSW Handling Equipment & Trash EBC6 $7,010,000 ICB Prior 1S2E Q3/2015 Bins EBC7 Trash and Recycle Bins $5,333,333 ICB Prior 1S2E Q4/2015 EBC8 Snow Clean Vehicles $2,833,333 ICB Prior 1S2E Q4/2015 MSW Transfer Stations & EBC9 $5,264,000 ICB Prior 1S2E Q1/2015 Equipment2 MSW Sorting and Composting Center EBC10 $1,167,042 ICB Prior 1S2E Q3/2014 Equipment Baishan Water Supply Civil Work Water Transmission Line I (Reservior CBSW1 $2,172,117 NCB Prior 1S2E Q4/2014 to Jiangyuan) Water Transmission Line I (Jiangyuan CBSW2 $4,476,633 NCB Post 1S2E Q4/2014 to Hunjiang) CBSW3 Water Treatment Plant I (Site & Civil) $4,807,083 NCB Post 1S2E Q1/2015 CBSW4 Water Treatment Plant II (Processing) $8,194,083 NCB Post 1S2E Q1/2015 Water Distribution Network I (Main CBSW5 $1,011,883 NCB Post 1S2E Q4/2015 Line) Water Distribution Network I (Branch CBSW6 $6,562,133 NCB Post 1S2E Q4/2015 Line) Equipment Supply & Installation Water Distribution Pump Stations EBSW1 $1,070,900 ICB Prior 1S2E Q4/2015 Civil EBSW2 Water Transmission Pipe $13,079,833 ICB Prior 1S2E Q4/2014 EBSW3 Water Treatment Plant Equipment I $2,831,258 ICB Prior 1S2E Q4/2015
EBSW5 Water Distribution Pipe I $7,325,183 ICB Prior 1S2E Q4/2015 EBSW6 Water Distribution Pipe II $1,051,233 ICB Prior 1S2E Q4/2015 Baishan MSW Management Civil Work
MSW Sorting & Composting Center CBSSW2 $2,028,713 NCB Prior 1S2E Q4/2014 Civil CBSSW3 Sanitary Landfill $3,533,058 NCB Post 1S2E Q2/2015 Equipment Supply & Installation MSW Handling Equipment & Trash EBSSW1 $6,086,833 ICB Prior 1S2E Q4/2015 Bins EBSSW2 MSW Transfer Station Equipment $4,220,167 ICB Prior 1S2E Q1/2015 MSW Sorting & Composting Center EBSSW3 $1,441,713 ICB Prior 1S2E Q1/2015 Equipment NCB = National Competitive Bid, ICB = International Competitive Bid,
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Jilin Urban Improvement Project Appendix K (TA 8172-PRC) Final Report
3. Consulting Services Contracts Estimated to Cost $100,000 or More
The following table lists consulting services contracts for which the recruitment activity is either ongoing or expected to commence within the next 18 months. Advertisement Package Estimated Procurement Review Date Type of No. General Description Value Method (Prior/Post) (quarter/year) Proposal Comme nts Consulting Services and Capacity CS1 $2,850,000 QCBS (AD&RF) Prior Q3/2014 Full Development CS2 External Resttlement Monitoring (BC) $75,000 ICS Prior Q3/2014 Biodata
CS3 External Resttlement Monitoring (BS) $75,000 ICS Prior Q3/2014 Biodata
QCBS = Quality and Cost Based Selection, ICS = Individual Consultant Selection, AD = Advance Contracting, RF = Retroactive Financing, (Source: Asian Development Bank)
4. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100,000 (Smaller Value Contracts)
The following table groups smaller-value goods, works and consulting services contracts for which the activity is either ongoing or expected to commence within the next 18 months.
Goods and Works Advertisement Package Estimated Number of Procurement Review Date No. General Description Value Contracts Method (prior/post) (quarter/year) Comme nts CBSSW1 MSW Transfer Station Civil $263,109 1 NCB Post Q4/2014 EBSW4 Water Treatment Plant Equipment II $460,082 1 NCB Post Q4/2015 NCB = National Competitive Bid, ICB = International Competitive Bid, AD = Advance Contracting, RF = Retroactive Financing (Source: Asian Development Bank)
Indicative List of Packages Required Under the Project
The following table provides an indicative list of goods, works and consulting services contracts over the life of the project, other than those mentioned in previous sections (i.e., those expected beyond the current period).
Goods and Works Estimated Estimated Package Value Number of Procurement Review Bidding No. General Description (cumulative) Contracts Method (prior/post) Procedure Comme nts Works $55,403,792 3 ICB Prior 1S2E Works $20,137,909 4 NCB Prior 1S2E Works $74,847,488 14 NCB Post 1S2E Goods $77,453,741 17 ICB Prior 1S2E Goods $460,082 1 NCB Post 1S2E NCB = National Competitive Bid, ICB = International Competitive Bid, AD = Advance Contracting, RF = Retroactive Financing (Source: Asian Development Bank)
Consulting Services Estimated Estimated Package Value Number of Procurement Review Type of No. General Description (cumulative) Contracts Method (prior/post) Proposal Comme nts CS1 Consulting Services $2,850,000 1 QCBS Prior Full CS2 External Resttlement Monitoring (BC) $75,000 1 ICS Prior Biodata NCB = National Competitive Bid, ICB = International Competitive Bid, CQS = Consultant Qualification Selection AD = Advance Contracting, RF = Retroactive Financing (Source: Asian Development Bank)
C. List of Awarded and On-going, and Completed Contracts
The following tables list the awarded and on-going contracts, and completed contracts.
1. Awarded and Ongoing Contracts
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None
2. Completed Contracts
None
D. Non-ADB Financing
The following table lists goods, works and consulting services contracts over the life of the project, financed by Non-ADB sources.
Goods and Works Estimated Estimated Value Number of Procurement General Description (cumulative) Contracts Method Comme nts Power Supply Cable $7,189,079 1 SS
NCB = National Competitive Bid, ICB = International Competitive Bid, SS = Single Source Selection (Source: Asian Development Bank)
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Jilin Urban Development Project Appendix L (TA 8172-PRC) Final Report
Appendix L Social Action Plan
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Jilin Urban Development Project Appendix L (TA 8172-PRC) Final Report
SOCIAL ACTION PLAN
A. Introduction 1. This social action plan (SAP) was prepared jointly by the Jilin Project Management Office (JPMO), Baishan and Baicheng Project Management Office (PMOs), the Project Implementing Unit (PIU) of each component, and the participating local governments, with the assistance of the project preparatory technical assistance (PPTA) social experts.
B. Purpose 2. The purpose of this SAP is to ensure that important social and poverty issues are addressed during project implementation, which is designed to enhance project benefits and mitigate any likely negative impacts. Any adverse impacts need to be avoided or mitigated, and project benefits should be inclusive of vulnerable groups (i.e., the poor, women, and others). The SAP emphasizes social inclusion and equitable access to the new economy, and gender- specific measures are also included in the resettlement plans, and gender action plan (GAP).
C. Basis for the Social Action Plan 3. The SAP has focused on issues related to directly affected people (AP), vulnerable people, gender, and local social development. Measures to address these issues have been formulated based on the poverty and social analysis (PSA) report and adopted based on further stakeholder consultation. The main actions can be grouped into three types: (i) project benefits and enhancement measures within the direct control of the implementing agencies; (ii) mitigation measures to address social risks caused by the project, being the responsibility of the PMOs and the PIUs; and (iii) complementary enhancement measures that can be taken by local governments to increase the mutual benefits derived from the project construction or operations. Table 1 provides details of the SAP, including the proposed actions, target groups, implementing agencies, timing, funding source, and monitoring indicators.
D. Gender Aspects 4. The PMOs, PIUs and the participating local governments have agreed to take the following actions to enhance project benefits for women: (i) coordinate with contractors and local street offices or the township governments to hire women for project implementation and operation; (ii) hire women for project implementation with a target of at least 30% of newly created positions; (iii) hire women for facilities’ operation with a target of at least 30% of newly created positions, including solid waste management, water supply services, and road maintenance; (iv) target women and children for project safety awareness; (v) conduct public sanitation awareness with a target of at least 50% of female residents; (vi) conduct public water conservation and safe drinking water with a target of at least 50% of female residents; (vii) conduct public road safety awareness with a target of at least 50% of female residents (viii) public hearings for solid waste (sanitation) and water service tariffs with a target of at least 30% of female residents; (ix) at least one female staff in PMOs and other relevant management institutions is responsible for the project implementation; and (x) provide HIV/AIDS/STI (sexually transmitted infection) awareness for all workers and some communities near construction sites. A full GAP has been prepared separately.
E. Poverty Reduction Aspects 5. The PMOs, PIUs and the participating local governments have agreed to take the following actions to enhance project benefits for the poor: (i) coordinate with contractors and local street offices or the affected villages to hire the poor for the project construction and operation; (ii) hire laborers from impoverished villages/households (HHs), with a target at least 15% of newly created positions during construction; (iii) public hearings for solid waste App L - 2
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(sanitation) and water service tariffs with a target of at least 15% of low-income residents; (iv) provide water and solid waste subsidy for low-income in increment if water and solid waste treatment tariffs are increased and; (v) provide special support for poor HHs affected by resettlement, such as a special living subsidy for their resettlement, and priority to choose location, type, area of relocation house, etc; (vi) support local governments in technical training programs or providing training for new workers before taking positions; and (vii) support local governments in promoting non-farm employment opportunities.
F. Implementation Arrangements 6. The SAP will be implemented by the PMOs and the three PIUs in coordination with participating local government agencies as indicated in Table 1. The JPMO, executing agency (EA), will be responsible for overseeing the SAP and implementing those actions within their direct control, as well as supervision of related activities that involve the construction contractors. For actions outside the direct mandates of the JPMO, the PMO of each project city will assign a staff responsible to liaise with the relevant district government agencies under the coordination of the leaders of the PMOs. Director of each relevant government agency will assign a staff to implement related actions. This will ensure appropriate measures are taken in a timely and satisfactory manner. The PMOs will also be responsible for monitoring and reporting progress, issues, and results to the JPMO. A national social (gender and public awareness) development consultant and a national community solid waste management consultant will be engaged to assist with implementing, monitoring and reporting SAP and GAP. The PMOs will semi-annually provide to ADB SAP monitoring reports for review and follow-up during loan supervision missions. If necessary, ADB and the JPMO may agree to revise the SAP to improve the effectiveness of the proposed measures.
7. In order to implement the solid waste sorting at source successfully, management groups in two levels will be established in each project city. One group is municipal government-based leading group in the PMOs. Members of the group consist of directors of the PMO and PIU, general manager of solid waste treatment company, and staff from municipal environment protection bureau and health bureau. They are responsible for implementation of the work and solving problems and complain by coordination among relevant government departments. Another is community-based management group of each targeted community. Members of the group consist of representatives of inhabitants, staff of community committee and community property company (if have), and sanitation workers. They will check and persuade inhabitants to separate their solid waste at source and dispose the waste into different bins or containers. The PMOs will be responsible for management and supervision of the implementation, while the municipal solid waste treatment company will be responsible for the implementation, which will be instructed and assisted by two consultants mentioned above.
G. Budget and Cost 8. The JPMO will recruit a national social (gender and public awareness) development consultant with six (6) person-months, and a national community solid waste management consultant with 12 person-months with the budget for consulting services for the project. Other special funding sources are presented in Table 1 of the SAP.
H. Monitoring and Evaluation 9. It is proposed that comprehensive monitoring be conducted during project construction to ensure that the project fulfils its aims and objectives. The PMOs will be responsible for the monitoring and evaluation, and for reporting to the JPMO once semi-annual during project implementation. The PMOs of each project city will appoint at least one (1) special staff to conduct the monitoring and evaluation with assistance and instruction of the consultants. The staff should trained by the consultants if he/she has no experience in SAP monitoring and
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Jilin Urban Development Project Appendix L (TA 8172-PRC) Final Report evaluation for similar projects. The staff shall prepare monitoring and evaluation report, which is one of contents of the project progress reports and submit the report to the JPMO.
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Jilin Urban Development Project Appendix L (TA 8172-PRC) Final Report
Table 1: Social Action Plan Activity Target and Indicators Responsibility Party Budget and Cost Timing A. ENHANCEMENT MEASURES (Responsibility of Implementing and Operating Agencies) 1. Employment during Project Construction with a Total of Targets: 3,370 Full Positions At least 30% women for labor in landscaping and civil work (1) Ensure employment priority to At least 15% poor for unskilled labor in local people in construction landscaping and civil work contracts with contractors At least 70% local materials 100% contracted labors get training Indicators: PMOs, PIUs, contractors, Included in project civil (2) Ensure contractors to use local local street offices, and works cost and paid by 2014-2018 • No. of local people employed (disaggregated construction materials, township governments contractors e.g., rock, gravel, clay, cement by sex, skilled/ unskilled, nationality and produced from Jilin Province poverty status) • Wages (disaggregated by sex) paid to local (3) Ensure training on labor law, people job skills, safety, sanitation, • Total amount and value of construction etc to be provided by materials supplied locally contractors • No. of labors trained (disaggregated by sex)
Targets: 2. Employment during Project At least 30% women for labor in new solid Operation with a Total of 321 waste management, water supply services Full Time Positions landscaping and road maintenance At least15% poor for unskilled labor in PMO s, PIUs, POCs, local (1) Ensure employment priority to landscaping, and road and river maintenance street offices, township Included in project local people Indicators: governments, labor bureau, operation cost and paid by 2016-2018 and onwards (2) Ensure training workers on • No. of local people employed (disaggregated and urban construction POCs labor law, job skills, safety, by sex, skilled/ unskilled, nationality and bureau sanitation, etc to be provided poverty status) by PIUs • Wages (disaggregated by sex) paid to local
people • No. of workers trained (disaggregated by sex) App L - 5
Jilin Urban Development Project Appendix L (TA 8172-PRC) Final Report
Activity Target and Indicators Responsibility Party Budget and Cost Timing B. MITIGATION MEASURES (Responsibility of JPMO and PIUs) 3. Protect Local Communities from Construction Disturbances and Ensure Safe Construction Practices Targets: 0% nighttime construction near residence (1) Prohibit nighttime construction area and adhere to proposed noise 100% public facility recovery standards near residence area Indicators: (2) Reconstruct public facility • No. and resolution of complaints on PIUs, contractors, and local Included in project cost for 2014-2018 systems such as road, poles construction (disaggregated by sex) governments civil works (refer to EMP) and transformers recovery due • No. of public facilities affected and % recovery to pipe installation and road • No. of safety meeting and participants of construction construction workers (3) Construction safety • No. of accidents on temporary construction enhancement, including roads and on project site temporary road traffic (e.g., safe road conditions and proper warning sign)
4. Control and Prevention of Targets: HIV/AIDS/STI 100% contractors establish connection with Awareness training costs local CDPC for workers are included in 100% construction staff and workers get contract costs (1) Ensure local CDPC provides PIUs, contractors, local HIV/AIDS and STI counseling training to worksite health CDPCs, and local 2014-2018 Indicators: Local CDPCs costs promoters governments • No. of total contractors and contractors included in local health (2) Ensure to provide manuals, connected with local CDPC bureau budget at about posters, and drawings No. of manuals, posters or drawing distributed RMB10,000 at worker living area C . ENHANCEMENT MEASURES (Responsibility of Participating Local Governments)
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Jilin Urban Development Project Appendix L (TA 8172-PRC) Final Report
Activity Target and Indicators Responsibility Party Budget and Cost Timing 5. Strength Solid Waste Sorting at Source
(1) Establish a management Targets: institution led by PMOs and 21 residence communities in Hunjiang District responsibilities of Baishan and 20 communities in Taobei (2) Provide trash bins and District of Baicheng Bins and containers are containers in selected 100% primary and middle schools in DPA (70 included in project communities primary and 30 middle schools) construction cost (3) Design and prepare household At least 50% female participants PMOs, BESB, CCs, EB, garbage 3R Instruction Indicators: Handbook and consulting 2014-2016 handbook and PIUs • No. of handbook copies service cost is included (4) Hold public participation and capacity building of the consultation for waste sorting in • No. of bins and containers project at about selected communities • No. of schools and communities RMB810,000 (5) Public sanitation management • Amount of composted waste campaign including 3R in • No. of participants (disaggregated by sex, schools (lecture or picture students, residents) in two districts exhibition, handbooks, etc.) (6) Monitor and improve implementation of waste sorting
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Jilin Urban Development Project Appendix L (TA 8172-PRC) Final Report
Activity Target and Indicators Responsibility Party Budget and Cost Timing 6. Strength Water Conservation Targets: and Safe Drinking Water New water supply plant and pipe network Public Awareness 30% urban households in the project district to receive water conservation awareness (1) Install sensors on pipe network 100% primary and middle schools in DPA (28 to monitor leakage and primary and 13 middle schools) New water supply plant and pressure with advanced control At least 35% local residents (150,000 urban control system cost is system residents in DPA of two districts) included in project (2) Introduce water-saving taps At least 50% female participants construction cost and toilet and provide technical Indicators: BWAB and PIUs, and EB 2014-2016 instruction • Reduction of non-revenue loss Campaign material cost is (3) Prepare and deliver water- • Reduction of water consumption of average included capacity building saving campaign materials urban households of the project at about (4) Public water conservation • No. of households with water-saving taps or RMB200,000 campaign in schools (lecture or toilet picture exhibition, etc.) • No. of campaign material copy (5) Public water conservation and • No. of schools and communities safe drinking water campaign • No. of participants (disaggregated by sex, in urban area of DPA (poster, students, residents) in two districts picture exhibition, etc.)
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Jilin Urban Development Project Appendix L (TA 8172-PRC) Final Report
Activity Target and Indicators Responsibility Party Budget and Cost Timing Target: 100% signal and marks on newly constructed 7. Strength Traffic Road Safety roads and roads near school and Public Awareness 100% primary and middle schools in DPA (1 pr imary and 1 middle schools) New signal and mark cost is included in project (1) Traffic signal and marks on At least 70% local residents (18,000 residents street in Xijiao Street Office of Baicheng) construction cost
(2) Special traffic marks on roads At least 50% female participants (rural and EB and TPB, PIUs 2015-2018 near schools urban residents) Picture exhibition cost is (3) Road safety campaign in Indicators: included capacity building of the project at about schools (picture exhibition, etc.) • No. of schools and communities RMB120,000 (4) Road safety campaign in DPA • No. of participants (disaggregated by sex, (picture exhibition, etc.) students, residents) (5) Road construction safety • No. of traffic accidents (death and injured) in three counties 8. Strength Public Participation Target: in Tariff Reform of Water At least 30% female participants and Solid Waste At least 15% low-income participants 100% urban low-income inhabitants in two (1) Participation of women and project cities to be provided subsidy for tariff low-income people in tariff increment PMO, FB, PB No budget need 2015 onward hearings Indicators (2) Provide subsidy for low-income • No. of participants (disaggregated by sex, low- inhabitants when water and income, residents) solid waste treatment prices • No. of low-income people to receive subsidy are increased • Tariff change
ACWF = All China Women’s Federation, AP = affected persons, BESB = Baishan municipal environment and sanitation bureau, BWAB = Baishan municipal water affair bureau, CAB = Civil Affairs Bureau, CC = Community committees, CDPC = centers for disease prevention and control, DRC = Development and Reform Commission, EA = executing agency, EB = Education Bureau, FB = Finance Bureau, HB = Health Bureau, HH = household, GAP = gender action plan, IA = implementing agency, JPMO = Jilin project management office, DPA = Direct Project Area, PADO = Poverty Alleviation and Development Office, PB = Price Bureau, PMOs = Baishan or/and Baicheng project management office, PIUs = Project Implementing Units, POCs = Project Operation Companies, PPC = public participation and consultation, STI = sexually transmitted infection, TPB = traffic police branch, UPA = urban planning agency
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Jilin Urban Development Project Appendix M (TA 8172-PRC) Final Report
Appendix M Gender Action Plan
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Jilin Urban Development Project Appendix M (TA 8172-PRC) Final Report
GENDER ACTION PLAN
1. The project will implement a gender action plan (GAP) that will facilitate employment opportunities and improvement of livelihoods for women through training, and mitigate possible negative impacts of the project on women due to land acquisition and resettlement and environmental impacts. It will address gender concerns in the project outputs of environmentally sustainable urban infrastructure development in two project cities. The GAP will enhance women’s active and equitable participation in the project and help ensure that benefits accrue to women. Gender-specific measures are also included in the resettlement plans (RPs) and a social action plan (SAP).
2. Principles. GAP principles include: (i) equality of project benefits and opportunities designed to share between men and women; (ii) sex disaggregated data collection before, during, and after the project implementation; and (iii) female participation in the decision-making process at all management levels.
3. Gender analysis. Extensive consultation and gender analysis was conducted during the poverty and social assessment survey and qualitative discussions. The assessment indicated that women strongly support the project and anticipate benefits such as improved sanitary community environment and living conditions, new employment opportunities, improved urban solid waste management and water supply services, improved access and safer transport routes, and more opportunities in participation in the project implementation.
4. Gender action plan. The GAP stresses inclusion through:
(i) Public consultation. Public consultations on affordability, tariffs, solid waste sorting at source, community collection and management, water supply service quality, sanitation management, road safety, public transport services, road safety, and pedestrian and non-motorized transportation (NMT) design will require participation by women. Outreach will be conducted through community meetings, dissemination of materials such as posters and radio spots, and coordination with organizations such as the All China Women’s Federation, which will ensure women beneficiary’s involvement. The project management offices (PMOs) of the project cities and the project implementing unit (PIU) of each project component, with assistance of a social (gender and public awareness) development consultant, will conduct outreach activities with contractors, local street administration offices, relevant government divisions, and the labor bureau to ensure that women are aware of employment opportunities and that contractors strive to reach the targets. Results will be regularly reported via the project performance monitoring system. Public consultation has a target of 50% women participants;
(ii) Employment enhancement. Employment enhancement measures will include consultation and participation of women during project design and implementation, preferential employment of women as unskilled or skilled laborers during and after project implementation, and the formal employment of female staff in management of urban and community garbage collection and disposal, water supply service, road maintenance and etc. The employment plan includes a target of 30% for women during project implementation and 30% during project operation; and
(iii) Capacity Development. Measures will include leadership development, training, meetings, consultations, case studies, and workshops on topics such as decision- making, urban expansion planning, infrastructure project preparation, inclusive social
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Jilin Urban Development Project Appendix M (TA 8172-PRC) Final Report
transition, urban solid waste management, traffic safety, project management and implementation to enhance public awareness, and institutional capability. The training plan for capacity development has a target of at least 30% for women’s participation.
5. Budget and implementation arrangements. The GAP will be implemented under the guidance of a social (gender and public awareness) development consultant who will be a member of the consultant team served for the project implementation. The action plan will not require a separate budget and will be funded by the project budget. The GAP will be implemented over the five-year life of the project. The PMOs, with support from the social (gender and public awareness) development consultant, will be responsible for coordinating and monitoring implementation of the plan and will assign responsible staff.
6. Monitoring and evaluation. The action plan will be incorporated into the overall monitoring and evaluation plan for the project. The PIUs will be responsible for establishing and coordinating monitoring and evaluation. ADB staff with expertise in gender issues will participate in the midterm review. The social (gender and public awareness) development consultant will work with the PMOs and PIUs staff to create a detailed implementation and monitoring plan for each of the tasks outlined, help to complete the first gender plan implementation report, and review the second report prepared by the PIUs. The report will be prepared semi-annually and incorporated into project progress report, and submitted to the Jilin Project Management Office (JPMO). The detailed GAP is presented in Table 1.
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Jilin Urban Development Project Appendix M (TA 8172-PRC) Final Report
Table 1: Gender Action Plan
Activity Target and Indicators Responsible Party Budget Time (year) A: Solid Waste Management, Water Supply Service, and Road Construction – All Outputs 1. Ensure women employment Targets: PIU s, contractors Salary included 2014 – 2018 opportunity in the project construction 30% job positions for female labors in project civil (whole 2. Ensure women employment is in project construction Monitored by LB and works cost and construction required in construction contracts as 100% work sites with facilities (i.e., PMOs paid by period) part of contractors’ contractual latrines) designed particularly for contractors obligations female workers Supported by ACWF, 3. Ensure work environment and 100% female workers get CCs conditions (any latrines and/or HIV/AIDS/STIs awareness washing arrangements, etc) on Indicators: construction sites are conductive to • No. of local women employed the participation of women (skilled/ unskilled, nationality and 4. Provide separate HIV/AIDS/STIs poverty status) Contractors, CDC awareness for construction workers • Wages paid to local women C ost for and communities • No. of female workers trained awareness 5. Hold resident information sessions on • No. of female workers included in start and completion dates, received HIV/AIDS/STIs awareness SAP temporary disruption to services, and and prevention training safety, prior to commencement of • Contractors’ training records any major works (disaggregated by sex) 6. Ensure equal pay for equal work 7. Ensure women employment Targets: Project operators Salary included 2016 – ongoing opportunity during project operations 30% job positions for female in operation (from operation of 8. Ensure equal pay for equal work workers in project operation Monitored by PMOs cost and paid any subprojects) 9. Ensure provision of training (labor 100% female workers received by project law, job skills, safety, sanitation, etc) training Supported by POCs, operators to female workers from project Indicators: ACWF, and LB operation companies • Wages paid to local women • No. of female workers trained • POCs’ training records (disaggregated by sex)
B. Solid Waste Management Outputs of Baishan and Baicheng Components
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Activity Target and Indicators Responsible Party Budget Time (year) 10. Ensure public awareness on Targets: PMO s Handbook cost 2014 – 2018 environmental protection and 21 selected communities in Baishan included in (whole sanitation management, solid waste and 20 selected communities in Supported by PIUs, SAP construction sorting at source, garbage collection, Baicheng CCs, EB, Consultants period) transportation and sanitary disposal, At least 50% of female participants 3R campaign handbook preparation Indicators: in communities and schools • No. of sessions held for residents in selected communities and in schools • No. of female participants (residents, students) • Amount of kitchen waste collected
11. Ensure women are deeply Targets: PMO s No cost 2014 – 2018 involved in preparation and Establishment of community-based required (whole implementation of waste sorting at waste sorting groups in selected construction source communities Supported by PIUs, period) At least 50% of female in group CCs, Consultants members Indicators: • No. of total group members • No. of female members
C. Water Supply Services Outputs of Baishan Component 12. Ensure public awareness on Targets: PMO s Public 2014 – 2018 water conservation, drinking water awareness and (whole safety in communities and schools Women participate in project design Support by PIUs, training cost construction 13. Ensure women participating in CCs, EB, included in period) project design and preparation discussion and public awareness Consultants SAP 14. Ensure to conduct water conservation training to women At least 50% of female participants Indicators: • No. of sessions held for residents in PDA (communities, schools) • No. of female participants (residents, students)
D . Road and Related Infrastructure Facilities Outputs of Baicheng Component
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Activity Target and Indicators Responsible Party Budget Time (year) 15. Ensure women in community Targets: PMO s, TPB Road safety 2014 – 2018 consultation and decision making 100% primary and middle schools awareness and (whole processes related to road design in DPA (1 primary and 1 middle Supported by PIU, campaign cost construction features (traffic signal, marks, schools) CCs, EB, included in period) pedestrian crossings, etc) At least 70% local residents (18,000 Consultants SAP 16. Ensure road safety programs residents in Xijiao Street Office of focusing on non-motorized transport Baicheng) and pedestrian safety conducted for At least 50% of female participants schools and residents in road safety program and 17. Ensure women involved in consultation on public transport consultation on public transport services services in new route design and Indicators: service quality • No. of sessions held for residents in PDA (communities, schools) • No. of female participants (residents, students)
E. Project Management 18. Ensure a social (gender and Targets: JOPM , PMOs C onsultant cost 2014 – 2018 public awareness) consultant 100% activities designed in GAP are included in (whole project including in TA consultant team implemented with instruction of the SAP implementation during project implementation to specialist and support of the staff period) guide GAP/SAP implementation and At least one person appointed to this provide training role in each PMO/PIU, and community office 19. Ensure at least one staff Indicators: member is allocated responsibility for • No. of social/gender specialists social/gender issues in each PMO involved and No. of person-month and PIU (hereafter referred to as input “safeguard staff”) • No. of training on GAP/SAP provided by the specialists 20. Nominate at least one woman • No. of participants in training in community offices to act as link (disaggregated by sex) between residents and the PMO, and • No. of female member in PMO/IA, to attend all project-related public and community office meetings, consultations, etc. to facilitate effective participation of all attendees F. Capacity Development Outputs
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Activity Target and Indicators Responsible Party Budget Time (year) 21. Gender awareness training for Targets: JOPM C onsultant cost 2014 - 2018 PMO s and PIUs staff, to include 100% staff of PMO and IAs receive included in discussion of (i) ADB gender policies; the training Supported by SAP (ii) the GAP; and (iii) the benefits to At least 30% female representatives PMOs, PIUs, local be derived from gender in all trainings government mainstreaming in infrastructure Indicators: projects • No. of training • No. of participants ((disaggregated by 22. Orientation for staff from sex) community offices on GAP to establish a working relation that can be effective 3R = reduce, reuse and recycle, ACWF = All China Women’s Federation, ADB = Asian Development Bank, CB = Construction Bureau, CC = community committees, CDC = Center of disease control, EB = education bureau, EMDP = ethnic minority development plan, GAP = gender action plan, IA = implementing agency, JPMO = Jilin project management office, LB = Labor Bureau, O&M = operation and maintenance, PIU = project implementing unit, PMO = project management office of project cities, POC = project operation company, SAP = social action plan, STI = sexually transmitted infection, TA = technical assistance, TPB = traffic police branch
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Jilin Urban Improvement Project Appendix N (TA 8172-PRC) Final Report
Appendix N Summary Poverty Reduction and Social Strategy
SUMMARY POVERTY REDUCTION AND SOCIAL STRATEGY
Country: People’s Republic of China Project Title: Jilin Urban Development Project
Lending/Financing Project Department/ East Asia Department Modality: Division: Urban and Social Sectors Division
I. POVERTY AND SOCIAL ANALYSIS AND STRATEGY Targeting classification: general intervention A. Links to the National Poverty Reduction and Inclusive Growth Strategy and Country Partnership Strategy The development of Jilin Province reflects the urbanization challenges the PRC in facing. Centred on Changchun and Jilin Cities, the rest of the province, especially on the eastern and western fringe, are having difficulties to take-off and develop urban areas sufficiently attractive to encourage the surrounding rural population and industry to locate in those cities. Jilin Province government has established an overall provincial strategy to boost these sub-regional hubs located along development corridor. Baishan and Baicheng Cities are located in the poor and remote southeast and northwest regions of Jilin suffer from a lack of investment in infrastructure that restricts their urban development, and reduces the cities’ attractiveness as destinations for economic activities. Promoting their growth in a sustainable manner is a key challenge to balance the development within the province, provide improved livelihood opportunities to their growing population, boost the local economy and create jobs thereby helping to decrease the poverty rate in the two cities and their surrounding areas.
The Project will contribute to poverty reduction by removing infrastructure constraints, addressing environmental concerns, promoting sustainable economic growth, helping to ensure public health, and supporting capability building in the two cities in Jilin province. The project is consistent with the PRC country partnership strategy (CPS), 2011–2015 by (i) supporting sustainable urban development with a focus on relatively undeveloped northeast region, (ii) making markets work more efficiently through urban infrastructure development, (iii) promoting environmental sustainability, and (iv) contributing to inclusive growth. The project focuses on urbanization and is in line with the PRC rural poverty reduction strategy for 2011-2020 which recognizes urbanization as an important poverty reduction intervention and aligns with the poverty reduction strategy for the urban poor as it will facilitate urbanization and generate employment opportunities.
B. Results from the Poverty and Social Analysis during PPTA or Due Diligence 1. Key poverty and social issues. By 2012, the official urban and rural poverty incidences of Jilin Province were about 6.0% and 6.2%, ranking the top 6th and 19th, respectively, in all of 31 provinces (or municipalities or autonomous regions) of the PRC. Although Jilin Province is not the poorest, the development in different cities in the province is uneven. Eight counties in Jilin Province are designated as poverty-stricken counties, including four counties administrated by Baishan and Baicheng Cities1. In Baishan City, the urban and rural poverty incidences were about 12.5% and 10.9%, respectively, ranking the top 2nd and 1st, respectively, in all of nine (9) prefecture cities in Jilin Province, while in Baicheng City, the incidences were 10.2% and 8.0%, respectively, both of which rank at the 3rd in Jilin. The two cities and their surrounding rural areas are among the higher poverty areas. Unemployment and lack of labor were main reasons to cause household poverty. The urbanization rate of Baishan is 68.9%. However, Baicheng is 38.9%, much lower than the national average of near 50%. Urban per capita income of Baishan is a little higher than the average of Jilin province but that of Baicheng is lower than the average of Jilin province. The income of both Baishan and Baicheng are lower than national averages2. 2. Beneficiaries. The project will benefit for a total of 0.786 million people directly, including about 86,500 poor and 0.39 million women in the two cities. Demonstration of community-based 3R waste sorting at source will benefit directly for about 52,000 inhabitants of targeted communities in Hunjiang District of Baishan, and for 35,000 inhabitants in Taobei District of Baicheng. Improving solid waste management will benefit directly for about 0.26 million inhabitants in Hunjiang and 0.29 million inhabitants in Taobei; Improving water supply management will benefit directly about 0.36 million inhabitants in Hunjiang and Jiangyuan Districts of Baishan. Improving urban infrastructure and municipal services will benefit directly for about 50,000 inhabitants in Taobei District. In addition, the project will benefit indirectly for about 0.364 million rural residents in three project districts by urbanization promoted by solving infrastructural bottleneck and improving municipal services. 3. Impact channels. The project will contribute to poverty reduction in the project areas by: (i) establishing community- based 3R waste sorting at source system and improving solid waste management, safe drinking water supply, road network construction and related urban public facility services; (ii) providing direct employment opportunities to both urban and rural poor during construction and operation; (iii) generating economic and employment opportunities for both urban and rural poor through urban expansion and secondary and tertiary industrial developments; (iv) reducing environment-related diseases by improving sanitation environment and safe drinking water; and (v) implementing the social action plan (SAP) and gender action plan (GAP). 4. Other social and poverty issues. The project will improve urban infrastructure and promote urbanization. Baishan water
1 They are Jingyu County of Baishan, and Zhenlai County, Tongyu County and Da’an City of Baicheng. 2 Annual per capita disposable income of urban residents in Baishan, Baicheng, Jilin and PRC in 2012 was CNY21,282, 20,154, 20,208 and 24,565, respectively. supply component will ensure water consumption to meet current and future urban population increase due to migration of forestry workers, while Baicheng infrastructure and municipal services component will promote development of the northwest industrial zone, attract more enterprises and absorb more rural labors working in enterprises and for municipal services. 5. Design features. The project design and investment directly respond to issues raised by the poverty and social assessment, related to water services, solid waste management, and road and public transport. Key design features include (i) establishing community-based 3R waste sorting at source system; (ii) targeting employment for women and poor people; (iii) strengthening public participation and consultation in decision-making related to public hearings, solid waste management, water conversation and transport safety program; and (iv) establishing grievance redress mechanisms. The SAP and GAP outlined actions to ensure mitigation of adverse impacts and increase positive impacts of the project. C. Poverty Impact Analysis for Policy-Based Lending NA
II. PARTICIPATION AND EMPOWERING THE POOR 1. Intensive consultations with local government agencies were carried out by EA and the consultants during feasibility studies regarding subproject components and design standards. During the PPTA, a total of more than 900 participants were consulted, including 500 urban and rural households were surveyed, eighteen consultation meetings of government agencies, six community FGDs, and six key informant interviews (case studies) during the survey. Opinions and suggestions of participants were reflected in the poverty and social assessment, SAP, GAP, and this SPRSS. During preparation of resettlement plans, four consultation meetings were organized for each subproject and over 400 affected households were interviewed. More than 2,000 people were consulted in the process. In addition, during the environmental monitoring plan preparation, a total of 298 people and 7 agencies were consulted in two rounds of public consultation. F2. ACW participated in consultation on women employment, water services, road safety and public transport and a school participated in road safety and public transport during the project preparation. ACWF will support the project in women employment by proving female labors information and small loans, public awareness campaigns and training activities. Schools and drivers will be engaged in road safety and public transport awareness activities. 3. FGDs and key informant interviews conducted during the project preparation including ACWF, schools, community committees. In the implementation, civil society organizations such as ACWF will participate in public awareness programs on water conversation, 3R waste sorting at source and safety transportation. 4. Information gathering and sharing (high) Consultation (high) Collaboration Partnership 5. Participation of local ACWF, communities, schools and residents in public environmental protection and sanitation awareness, project construction, and hearings for tariff reform is addressed in SAP, especially for female residents in GAP. Ye s . . No . III. GENDER AND DEVELOPMENT Gender mainstreaming category: effective gender mainstreaming A. Key issues. Extensive consultation and gender analysis was conducted during the poverty and social assessment survey. The assessment indicated that women strongly support the project and are affected by unsatisfied water services, dirty solid waste collection environment, and poor mobility and access. Women are generally burdened with family and household responsibility, and are employed in low-paying jobs. Improving water services by providing sufficient and safe drinking water and establishing new facilities will benefit women by relieving women’s time in storing water at night. Improving community waste collection environment by community-based 3R waste sorting will benefit women by reducing illness and associated time and cost burdens. Improving transportation by establishing road network and public transport, pedestrian and non-motorized transport will benefit women by increasing access, mobility and safety; reducing time and cost burdens, and caring family daily life efficiently. Women will benefited by employment priority during the project implementation and operation. Women’s participation in public hearings, 3R waste sorting program design, public transport service and road safety program, and relevant public awareness activities will strengthen effective project implementation and sustainable development.
B. Key actions. Gender action plan Other actions or measures No action or measure The GAP includes specific actions with targets in employment, participation, community-based 3R waste management, public awareness in water conservation, road safety and public traffic services, and capacity-building opportunities. A national social (gender and public awareness) development consultant will input with six (6) person-months to support PMOs and PIUs for implementation and monitoring. The GAP is supported by a loan assurance. The DMF, PPMS, SAP and GAP include sex- disaggregated data and indicators. IV. ADDRESSING SOCIAL SAFEGUARD ISSUES A. Involuntary Resettlement Safeguard Category: A B C IF 1. Key impacts. The total permanent land acquisition is 2,425 mu, including 792 stated land and 1,634 mu collective land. Total house/building demolition area is 57,824 m2, including residential houses of 54,446 m2, rural sheds of 2,261 m2 and small shops/institution buildings of 1,117 m2. A total of 1,914 persons from 701 households are affected, including 364 households affected only by land acquisition, 293 households only by house demolition, and 44 households by both. 2. Strategy to address the impacts. Three resettlement plans were prepared in accordance with ADB’s Safeguard Policy Statement (2009) and relevant laws and regulations of the PRC. It was disclosed to affected people in local language. All acquired and occupied lands, and demolished houses, any assets and relocation allowance will be compensated to affected people in full replacement cost, and livelihood measures in resettlement plants will be arranged before commencing relevant civil works. PMOs and PIUs will assume responsibility for planning, financing, implementing and reporting land acquisition and resettlement. A grievance redress mechanism was established. PMOs will submit internal monitoring reports semi-annually. In addition, PMOs will recruit an external monitoring institute to conduct external monitoring and evaluation, and submit external monitoring reports to PMOs and then PMOs submits to ADB semi-annually during resettlement implementation, and annually for two years after completion of the resettlement. 3. Plan or other Actions. Resettlement plan Combined resettlement and indigenous peoples plan Resettlement framework Combined resettlement framework and indigenous peoples planning Environmental and social management system framework arrangement Social impact matrix No action B. Indigenous Peoples Safeguard Category: A B C IF 1. Key impacts. NA. Is broad community support triggered? Yes No
2. Strategy to address the impacts. No specific measures are prepared for ethnic minority peoples for the project. 3. Plan or other actions. Indigenous peoples plan Combined resettlement plan and indigenous peoples Indigenous peoples planning framework plan Environmental and social management system Combined resettlement framework and indigenous arrangement peoples planning framework Social impact matrix Indigenous peoples plan elements integrated in project No action with a summary V. ADDRESSING OTHER SOCIAL RISKS A. Risks in the Labor Market 1. Relevance of the project for the country’s or region’s or sector’s labor market. National regulations will be obeyed by contractors. unemployment underemployment retrenchment core labor standards (low) 2. Labor market impact. During the project construction, a total of about 3,370 job positions will be created directly, including about 337 technical and management positions, 846 positions of skilled labors, and 2,187 positions of unskilled labors. During the operation, a total of about 321 job positions will be created directly, including 19 technical and management positions, 107 positions of skilled labors, and 195 positions of unskilled labors. B. Affordability No water and solid waste subsidies for low-income households are provided in project cities currently. Willingness to pay and affordability analysis indicate that the expenditure for water and home waste services each month accounts for 2.6% and less than 1%, respectively, of a poor household’s income. Measures to ensure affordability of low-income households include (i) at least 15% of participants in public hearing process on tariff increase will be urban low-income people, and (ii) water and solid waste subsidies will be provided or exempted for low-income households if the tariffs are increased. C. Communicable Diseases and Other Social Risks 1. Indicate the respective risks if any, and rate the impact as high (H), medium (M), low (L), or not applicable (NA): Communicable diseases (L) Human trafficking Others (please specify) NA 2. Describe the related risks of the project on people in project area. Loan assurances and SAP, GAP and EMP require dissemination of information on HIV/AIDS and STI in construction sites for all new employees at time they mobilize. This will be conducted in collaboration with local CDPC. HIV/AIDS/STI and other communicable disease clauses will be included in contractor bidding documents. VI. MONITORING AND EVALUATION 1. Targets and indicators: 15% poor and 30% female for skill and unskilled labors during the implementation and operation; 30% female representatives and 15% poor households in public hearings for water and solid waste management tariff reform; 15% poor and 50% female participants in 3R solid waste management, water conservation and road safety awareness. PMOs will collect monthly employment records from contractors, as part of SAP monitoring. 2. Required human resources: Tow national consultants with social (gender and public awareness) development and community solid waste management will input 18 person-months and its budget. PMOs will appoint staff for internal monitoring of implementation of SAP and GAP. PIUs will appoint staff responsible for the implementation. 3. Information in PAM: Main poverty, social and gender issues are outlined and SAP and GAP are included in the PAM. 4. Monitoring tools: Internal monitoring results of SAP and GAP shall be a part of project progress reports and submitted to ADB semi-annually. 3R = reduce, reuse and recycle, ACWF = All-China Women Federation, DMF = design and monitoring framework, GAP = gender action plan, PAM = project administration manual, PIUs = project implementing units of Baishan and Baicheng subprojects, PMOs = Baishan and Baicheng project management offices, PPMS = project performance management system, PRC = People’s Republic of China, SAP = social action plan, STI = sexually transmitted infection
Jilin Urban Improvement Project Appendix O (TA 8172-PRC) Final Report
Appendix O Summary of Resettlement Plan
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Jilin Urban Improvement Project Appendix O (TA 8172-PRC) Final Report
Summary Resettlement Plan
A. Description of the Project 1. The proposed Jilin Urban Development Project (Project) consists of four (4) components: (i) streamlining integrated solid waste management (ISWM) based on 3R principles in Baishan; (ii) streamlining ISWM based on 3R principles in Baicheng; (iii) improving water supply services in Baishan; and (iv) constructing urban roads with associated facilities in Baicheng. The project will be implemented in Baishan City and Baicheng City of Jilin Province. All four components will involve land acquisition and resettlement.
2. Three (3) resettlement plans (RPs) are prepared for the Project, including (i) for the ISWM of Baishan; (ii) for Improving Water Supply Services of Baishan; and (iii) for Construction of Urban Roads with Associated Facilities of Baicheng (including land acquisition for ISWM of Baicheng). In addition, three (3) due diligence reports (DDRs) on land acquisition and resettlement for construction of facilities related to the Project were prepared as one of appendixes of the RPs of the corresponding components, including DDRs for (i) existing landfill and garbage collection stations related to Component I; (ii) a water source reservoir under construction for Component III; and (iii) existing landfill related to Component II.
B. Land Acquisition and Resettlement Impacts 3. The Project affects 11 villages, three (3) towns in Baishan City and Baicheng City, respectively. Detail impacts are presented in Table 1.
4. The total permanent land acquisition is 2,425.24 mu, including 791.58 mu stated land and 1,633.66 mu collective land. The collective land includes farmland, house plot and other land accounting for 48.2, 34.4 and 17.4%, respectively. Total house/building demolition area is 57,824 m2, including residential houses of 54,446 m2, rural shanties of 2,261 m2 and enterprise/institution buildings of 1,117 m2.
5. It is estimated that a total of 1,914 persons from 701 households are affected, including 364 households affected by land acquisition, 293 households by house demolition, and 44 households by both.
C. Resettlement Principles and Entitlements 6. The RPs were prepared in compliance with the Land Administration Law of the People’s Republic of China (2004), Law of the People's Republic of China on Administration of the Urban Real Estate (2007 Revised); Regulations regarding the Administration of Urban Housing Removal (2001); Guidelines Regarding Urban Housing Removal Estimation, and other applicable guidelines. They were also based on local policies regarding LAR in Jilin Province, and the project cities, and ADB’s Safeguard Policy Statement (June 2009). Based on consultation with the local governments and affected persons (APs) and general practices in the project area, the IAs have adopted a set of resettlement principles and an entitlement matrix has been prepared for the Project.
7. Compensation for land acquisition, residential housing, and non-residential buildings (shops and enterprises) are paid to the affected owners or users. For land acquisition, compensation fees include land compensation, resettlement subsidy, and compensation for young crops and/or trees. The land acquisition compensation is rated according to the general practices in Baishan and Baicheng, respectively. The land compensation rate including resettlement subsidy for the Baishan components is 10,368 to 21,625 CNY/mu, while for the Baicheng components, it is 48,000 to 80,000 CNY/mu. For the Baishan components, 50% of the compensation is paid to village collectivity, while the remaining 50% is paid to affected farmers.
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Jilin Urban Improvement Project Appendix O (TA 8172-PRC) Final Report
For the Baicheng components, the affected farmers can get 99 or 100% of the compensation, while the village collectivity can get the remaining. The compensation for temporary land occupation is at the annual rate of CNY 1,296 per mu for the Baishan components with CNY 4,000 to 6,000 per mu of land restoration fee. The Baicheng components will not involve temporary land occupation. Compensation for crops, trees, other facilities, and temporary impacts are paid directly to the APs.
8. For affected rural households suffering house demolition, both property rights exchange for areas within the standard relocation area, and monetary compensation can be selected. The standards for housing replacement cost are as follows: for the Baishan component: CNY250 per square meter for brick-concrete structure; CNY150 per square meter for brick-wood structure; CNY100 per square meter for earth-wood structure, CNY30 per square meter for simple structure; for the Baicheng component: CNY 1,400 per square meter for brick-concrete structure; CNY 1,200 per square meter for brick-wood structure; CNY900 per square meter for earth-wood structure; CNY360 per square meter for simple structure. For the Baishan component, a transition subsidy of CNY5 per square meter per month will be paid for 12 months, for the Baicheng component, it is CNY6 per square meter per month for 24 months. In addition, households will also receive compensation at replacement costs for the loss of ground attachment and utilities.
9. A fund of CNY 0.314 million in a total of the components is set up to provide assistance to the vulnerable groups. Every relocated household that lives below local poverty lines will get the living subsidy. The subsidy will be delivered as following procedures: individual application, community verification, and the PMO confirmation.
D. Public Participation and Grievance 10. Public consultation has been the key for the preparation of the RPs. From October 2012 to November 2013, a series of consultation activities were carried out with the APs, resettlement communities (RCs), institutions and enterprises, and other project stakeholders. The physical object survey on land and building asset inventory, and social and economic survey of sampling households, enterprises and institutions have performed. The APs have participated in the preparation of the RPs through the measurement and socioeconomic surveys, and community meetings. Their concerns and comments have been integrated into the RPs. Further consultations will be held during the implementation of the RPs. July 31, 2013 for the Baishan components and January 1, 2014 for the Baicheng components are set as cut-off date of existing physical status in the affected areas. A grievance procedure has been established for the APs to redress their LAR issues, including four channels: (i) Townships resettlement offices (ROs), (ii) ROs of subprojects on city; and (iii) Jilin PMO. The RPs will be disclosed to the APs in local language (Chinese) prior to the ADB management review meeting and resettlement information booklets will be distributed to affected households, village/community committees, town/street offices before the resettlement implementation. In addition, the RPs will be uploaded on ADB website in both English and Chinese.
E. Resettlement and Livelihood Rehabilitation 11. To minimize the resettlement impacts to APs and restore their living standards, detailed programs of restoration and relocation have been arranged in the RPs. People can choose the available programs according to their requirements. Based on the socioeconomic survey and analysis of the affected households, and local experiences in relocation and resettlement of similar projects, measures for resettlement and income restoration have been prepared. These measures include unified planning and provision of house plots by government and APs rebuild their new houses, unified resettlement housing, provision of economically affordable housing, distribution of living expenses to the APs, employment creation by the local safeguard network, skill training for the APs, employment related to the Project and non-monetary support and so
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Jilin Urban Improvement Project Appendix O (TA 8172-PRC) Final Report
on.
12. About 791.58 mu of state-owned land and 1,633.66 mu of village collectively- owned land will be compensated in cash based on the type of land loss. About 439.12 mu of land will be acquired temporarily for water pipe installation, for which there will be temporary livelihood losses and the compensation will be paid in cash. In terms of house relocation, 337 households will be provided unified resettlement houses in new communities based on “get same construction area to the area of houses to be demolished”. Local governments will build the unified resettlement houses. In addition, affected households also can select cash compensation. About 18 enterprises/businesses or stores/shops will suffer land acquisition and structure demolition impacts. They will be compensated for their lost assets, and relocation and transitional allowance will be paid to them. 350 employees will be affected but no employees will suffer from income losses because they will stay in their units.
F. Institutional Arrangement 13. The Jilin PMO will assume the overall responsibility for supervision of the implementation of LAR, including the planning, implementation, financing, and reporting of LAR. The IAs, Baishan and Baicheng PMO, respectively, will take the primary responsibility for the resettlement consultation, implementation, and timely delivery of entitlements. To ensure smooth implementation, the staff in charge of LAR will undertake training on resettlement implementation organized by the Jilin PMO. The resettlement implementation schedule has been prepared based on the preparation and construction timetable. The RPs will be updated based on the final design and detailed measurement survey, disclosed to affected persons in local language and submitted to ADB for review and approval prior to award of civil works contracts.
G. Cost and Schedule 14. The total estimate budget is CNY403.16 million, including: (i) costs for permanent land acquisition of CNY148.75 million (accounting for 36.9% in the total budget); (ii) compensation for temporary land occupation of CNY10.30 million (2.6%); (iii) compensation for houses demolition of CNY77.16 million (19.1%); (iv) compensation for ground affiliated facilities of CNY47.97 million (11.9%); (v) taxes of CNY75.02 million (18.6%); and (vi) contingency and other costs of CNY 43.96 million (10.9%).
H. Monitoring and Evaluation 15. A detailed plan for both the internal and external monitoring and evaluation (M&E) is included in the RPs. The Jilin PMO will submit an internal monitoring report quarterly to ADB. Furthermore, the Jilin PMO will employ an external resettlement monitoring institute or firm to establish an independent external monitoring organization in order to deliver a truly independent and unbiased external monitoring report. A baseline study of APs will be completed before the LAR begins and the first monitoring report will be submitted in June 2014. After that and until project completion, semi-annual monitoring reports will be prepared and submitted for ADB’s review during resettlement implementation and annually for two (2) years after completion of resettlement. The implementation plan of the RPs is summarized in Table 2.
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Jilin Urban Development Project (TA 8172-PRC) Draft Final Report
Table 1: Impact of Land Acquisition and Resettlement
Baishan Solid Waste Baishan Water Baicheng Urban Roads Unit Total Management Supply Services with Associated Facilities Affected town/urban subdistrict No. 1 1 1 3 Affected village/community No. 1 2 8 11 Affected village groups No. 1 0 0 1 Permanent land acquisition Collective land mu 82.25 72.0 1,479.41 1,633.66 Farmland mu 30.67 2.5 754.59 787.76 House plot mu 11.83 0 550.53 562.36 Construction land mu 0 0 0 0 Enterprise land mu 0 0 0 0 Other land mu 39.75 69.5 174.30 283.55 State land mu 0 0 791.58 791.58 Acquisition of residential Rural house m2 5,269.70 0 37,446.91 42,716.61 houses and structures Rural shanty m2 236 0 2,025.26 2,261.26 Urban house m2 0 0 11,729.19 11,729.19 Urban shanty m2 0 0 0 0 Urban enterprise/shop m2 0 0 1,116.66 1,116.66 Affected rural households HH 3 4 357 364 and persons Acquisition of farmland p erson 9 17 1,011 1,037
Acquisition of residential HH 27 0 266 293 houses p erson 100 0 639 739
Both land and house HH 6 0 38 44 acquisition p erson 20 0 118 138 Affected urban households Acquisition of residential HH 0 0 77 77
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Jilin Urban Development Project (TA 8172-PRC) Draft Final Report
and persons houses person 0 0 197 197 HH 36 4 661 701 Total of affected households and persons p erson 129 17 1,768 1,914 Total of enterprises/shops No. 9 0 9 18 person 41 0 309 350
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Jilin Urban Development Project (TA 8172-PRC) Draft Final Report
Table 2: Implementation and Supervision Milestones
Responsible No. Resettlement Tasks Target Deadline Agency 1. Consultation and Disclosure 1.1 Draft RP circulation and Cities and project IA and district governments 15 Dec 2013
endorsement Districts. 1.2 RIB distribution All affected villages and City and District ROs 31 Jan 2014 people 1.3 Consultations for updating RP Seriously affected IA, City and District ROs, 15 Sep - 15 Dec villages and people consultant 2013 1.4 RP distribution All affected villages City and District ROs 28 Feb 2014 2. Resettlement Plan & Budget 2.1. DMS DI, city & district ROs, 1-5 Feb 2014 affected villages and APs 2.2 Updating RP based on DMS IA, consultant 6-10 Feb 2014 2.3 Approval of final RP & budget Baishan & Baicheng City 10-20 Feb 2014 Government 3. Capacity Building 3.1 Establishment of a resettlement IA, Local governments 31 Dec 2013 offices at various levels 3.2 ROs capacity building 30 staff IA, Consultant 31 Jan 2014 3.3 Designate village authorities All affected villages City and District ROs 1-15 Mar 2014 4. Commencement and Completion of Resettlement 4.1 Agreements with villages and All villages and APs District ROs Mar 2014 APs 4.2 Commencement All ROs Mar 2014 4.3 Disbursement of compensation District RO Mar 2014 to APs onwards 4.6 Completion All ROs 30 Aug 2015 5. Monitoring & Evaluation 5.1 Internal monitoring reports Semi-annual IA Jun and Dec reports each year 5.2 Contracting external monitor IA 15 Mar 2014 5.3 Baseline survey 10-20% of seriously External monitor 30 Mar 2014 affected HHs (during and 50% affected villages shortly after DMS) 5.4 External monitoring report Semi-annual reports External monitor Jun and Dec each year 5.5 Resettlement completion report Report External monitor 31 Dec 2017
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Jilin Urban Development Project Appendix P (TA 8172-PRC) Draft Final Report
Appendix P RISK ASSESSMENT AND RISK MANAGEMENT PLAN
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Jilin Urban Development Project Appendix P (TA 8172-PRC) Draft Final Report
RISK ASSESSMENT AND RISK MANAGEMENT PLAN Jilin Urban Development Project (RRP PRC xxxxx)
1. On 31 July 2006, the Asian Development Bank (ADB) approved its second Governance and Anticorruption Action Plan (GACAP II 1), which aims to improve ADB’s performance in implementing governance and anticorruption policies in sectors where ADB is active. GACAP II requires the preparation of governance risk assessment and management plans (GRAMPs) as an integral part of country partnership strategies, programs and projects. GRAMPs focus on specific thematic issues—public financial management (PFM), procurement and anti- corruption—at the country level, in priority sectors where ADB is active, and for programs and projects.
2. In the case of the People's Republic of China (PRC), a country-level GRAMP was prepared in 2007 with a focus on two priority sectors: railways and wastewater management This document identifies the main governance-related risks confronting the Jilin Urban Development Project, with emphasis on the GACAP II themes of PFM, procurement, and anti- corruption.
3. For the proposed project at Baicheng and Baishan cities in Jilin Province, in addition to the risks commonly presenting at the country level, there are project specific risks in conjunction to the urban development, project implementation and project management. The risks and the management to mitigate these risks are summarized in the following table.
Assessment Assessment Management Risks without with Plan Mitigation Mitigation Responsible parties: JPG, BCMG, BSMG, PIUs, JFD, BCFB, BSFB, WFB, audit agencies , consultants 1. Public Financial Management 1.1. Capacity building High Provide training workshops to Low build capacity for PMO and IA Weak capacity of staff and relevant government implementing agencies to agencies effectively withdraw ADB loan proceeds, resulting in (Before and during project disbursement and implementation) construction delays 1.2. Internal controls Medium A separate auditor’s opinion on Low the use of the imprest account Weak financial and statement of expenditure will management and internal be part of the audit reports. The control mechanisms for implementing agencies annual implementing agencis audited financial statements and audited project accounts will be submitted to ADB no later than 6 months after the end of the fiscal
1 Second Governance and Anticorruption Plan, July 2007, Revised December 2011
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Jilin Urban Development Project Appendix P (TA 8172-PRC) Draft Final Report
Assessment Assessment Management Risks without with Plan Mitigation Mitigation year throughout the im plementation period
(During project implementation). 1.3 . Counterpart funding Medium Assurance from BCMG and Low BSM G that all required Disbursements to ADB counterpart funding are from the projects are affected by government budget late provision of counterpart funding. (Before, during and after project implementation). 2. Procurement
2.1. Procurement capacity High • Provide technical assistant Low to bidding document The implementing preparation including agencies and PIUs do not technical specifications and have sufficient capacity or bidding process before the recent experience with mobilization of the loan procurement under ADB- implementation consultants. funded projects, resulting • Provide implementation in poor preparation of the consulting support for procurement plan and technical specifications in bidding documents; poor the bidding documents and management of the assisting in tender procurement process, and documentation preparation. significant delay of the • Engage tendering agent with process. significant ADB experience in a timely manner to assist with contract, bid documentation, bidding and evaluation procedures, and appointment of contractors.
(Before and during project implementation) 2.2 . Contract variation Medium • Provide technical assistant Low in bidding document Contract variations occur preparation to ensure the frequently because of poor contract documents covering quality of site survey and all major construction items bidding documentation. avoiding potential variation. • Provide rigorous and frequent training for staff involved in procurement • PMO’s to review and request revision of the preliminary and final designs to ensure the quality of design drawings and Bill of
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Jilin Urban Development Project Appendix P (TA 8172-PRC) Draft Final Report
Assessment Assessment Management Risks without with Plan Mitigation Mitigation Quantits ie .
(Before and during project implementation) 2.3. Cost escalation High • Significant attention paid by Low the project team and PPTA Cost estimates for consultant during project construction tend to be preparation. unrealistic because of • Assistance for detailed inadequate design and design and technical costs escalate because of specification review. contract variation and • Build capacity of contractors renegotiation after for professional bidding awarding of contract. • Provide clear instruction on bidding procedures, compliance with instructions, and evaluation and selection criteria • Prepare and provide high quality bidding documents to cover all major construction items
(Before and during implementation) 2.4. Contract Management High • Provide strong loan Low implementation consultants Lack of management to assist EA/IAs experience in ADB funded implementing the project projects and unfamiliar with • Provide extensive training ADB project management and capacity development policies and procedures program to improve the leading to poor management capacity management, delay of • Enhance monitoring and management submission guidance program during and delay of the project project implementation (Before and during implementation) 2.5 . Construction Medium • Provide implementation Low supervision consulting assistance to PMO and implementing Lack of construction agencies to develop supervision to oversee and construction management evaluate contractor’s and supervision policies and performance, leading to procedures. substandard operation, • Develop and implement administration, and service. monitoring mechanism to ensure that supervision by relevant agencies is on time. • Provide assistance to PMO’s
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Jilin Urban Development Project Appendix P (TA 8172-PRC) Draft Final Report
Assessment Assessment Management Risks without with Plan Mitigation Mitigation and implementing agencies t o build capacity in monitoring. (During implementation)
3. Institutional Strengthening
Change of PMO, IAs and Medium • Assurance that JPG, BCMG Low PIUs project management and BSMG will implement the staffs causing the institutional strengthening and discontinuation of project maintain the stability of the management and project management staffs implementation • Implementation of the capacity development program and training to improve the project management capacity of the managing staff
4. Approval of City Master Plan for Baicheng
The draft Baicheng City Medium Assurance from BCMG that the Low Master Plan is under JPG current submitted Master Plan review and approval. will not have significant change Changes of the final and the current draft Master Plan approved Master Plan may can be used as the official not be same as the current guidance document for he draft version, which may proposed project affect the current proposed project design
5. Delay in Land Acquisition and Resettlement Approval and Implementation
Delay of land acquisition High • Assurance from BCMG and Low and resettlement due to the BSMG the availability of shortage of counterpart counterpart funding with funding or unforeseen detailed financing plan problems raised during • Update the resettlement LAR negotiation plans based on the final design and survey • Institutional strengthening and training for carrying out LAR tasks
3. Corruption
3.1. Corrupt practices Medium • Assurance that JPG, BCMG Low and BSMG will further Corrupt practices may undertake the following
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Jilin Urban Development Project Appendix P (TA 8172-PRC) Draft Final Report
Assessment Assessment Management Risks without with Plan Mitigation Mitigation affect project design, anticorruption actions: (i) procurement and involve full-time officials from implementation, leading to the government discipline poor-quality projects. investigation bureau in the bidding process and award of contracts and in the approval of variation during construction; (ii) executing with the civil works both an anticorruption contract and civil works contract; and (iii) periodically inspecting the contractor’s fund withdrawals and settlements. • Introduce a dual-signing system in which the civil works contract winner also signs an anticorruption contract with the employer. (During implementation) 3.2. Anti-corruption Medium • Assist the PMO’s and Low measures implementing agencies to ensure good governance, Limited enforcement of accountability, and anti-corruption measures. transparency in project operations. • In consultation with relevant central government ministries, update rules and regulations on local and corporate governance and anticorruption, and enhance the transparency of implementing agency operations. (During project implementation) Overall MEDIUM LOW
O&M = operation and maintenance, PPTA = project preparatory technical assistance, DRC = Development and Reform Commission, JPG = Jilin Provincial Government, BCMG = Baicheng City Municipal Government, BSMG = Baishan City Municipal Government, JFD = Jilin Provincial Financial Department, BCFB = Baicheng Finance Bureau, BSFB = Baishan Financial Bureau, PMO = project management office, PIU = Project Implementing Unit, Source: Asian Development Bank.
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Jilin Urban Improvement Project Appendix Q (TA 8172-PRC) Final Report
Appendix Q Water Safety Plan for Baishan Water Supply
Jilin Urban Improvement Project Appendix Q (TA 8172-PRC) Final Report
1. Background
2.2.1 Challenges with Drinking-water Safety in China
1. Safe drinking water and adequate sanitation are central to the lives of people in China, especially in medium-small sized cities and rural areas. The impacts of poor water supply sanitation (WSS) services are causing serious health problems. A large percentage of health issues have been attributed to unsafe water, sanitation, and hygiene. The burden of illness weighs most heavily on the poorest members of society. Improved water supply and sanitation are closely linked to progress in health, education, gender equality, and environmental sustainability.
2. Inadequate water supply facilities in many areas of China contribute to low water supply coverage, poor drinking water quality, and NRW losses. With regard to the applicable requirements on salinity standards for drinking water, there is a need to upgrade water purifying facilities of WSP and treatment technologies to ensure a safe water supply. In 2010, the average water supply coverage rate was about 90% in China, 79% in counties, and 62% in townships.
3. Baishan City faces challenges similar to other places in China, including: (i) limited water supply and insufficient water treatment capacity, (ii) water pollution due to the recent exploitation of mineral resources; (iii) poor purification treatment processes and monitoring capacity,(iv) outdated networks of water transmission and distribution; and (v) an inefficient emergency response mechanism .
2.2.2 Water Supply Safety Assessment
4. In 2009, the World Health Organization (WHO) and The International Water Association (IWA) issued the Water Safety Plan Manual for water supply safety assessment and the development of water safety plan (WSP). A water supply system usually includes 4 parts: (i) water intake section, (ii) a water treatment, (iii) distribution pipeline network, and (iv) the consumers. Drinking-water suppliers are usually required to verify that the quality of water supplied to consumers meets specific standards. The WSP is a useful tool to identify the potential risks for water safety in all sections of the water supply system. Studies of the Water Safety Plan for urban water supply in China have started late, and the challenges to water supply safety are becoming more serious.
5. Risks assessment of urban water supply systems can help reduce the occurrence of disastrous accidents, eliminate risk factors in a timely manner, and improve the reliability, integrity, and security of the water supply system. It can also lead to targeted preventive measures.
2.2.3 Guide lines of WSPs
6. Water Safety Plans (WSP) are used to evaluate all of the potential risks posed by water sources to end-users, and to carry out risk management activities. It includes: (1) water sources; (ii) water treatment; (iii) water delivery and water distribution; and (iv) water users. Progress in expanding access and improving the quality of these basic services requires a supportive, enabling environment and cross- sectored interventions in areas such as water resource management, land management, fiscal decentralization, and public health, among others.
7. A typical WSP development process as recognized by World Health Organization is shown in Figure 1. The process starts with the mapping of the water supply system, follows with identifying the hazards and risks, implementing the improvement, reviewing the adequacy of preventative measures, reviewing the WSP, and returning to step 1 to start the circle again.
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Figure 1: WHO Water Safety Plan (WSP) cycle
2. Risk Management
8. Risk management of the urban water supply system refers to the activities of water supply enterprises and government departments, including risk identification, risk analysis, risk evaluation, strategy planning and decision-making, implementation and evaluation, and ensuring safety in the most economic and feasible method way. Among them, risk identification is the first and most important step in the process of managing the urban water supply system.
2.1 Risk identification 9. A water safety plan workshop was held at the Baishan Water Supply Company to evaluate the potential risks for all sections in the water supply system. The participants included all stakeholders in the water supply management system such as the operation and management company at the water source and water transmission line, the management staff of the water treatment plant, the operation and maintenance crews for water distribution, the water quality monitoring and inspection crews, consultants, design institute, environmental institute, and other relevant agencies. The WHO guideline for developing WSP and the detailed procedures as illustrated in Figure 2 was adopted in the workshop, and the key risks in Baishan water supply system were discussed and identified.
Risk Management of Urban Water Supply System
Risk Identification Risk Evaluation Risk Control Policy Implementation & After-evaluation
Danger Identificaiton Risk Evaluation Risk Standard Avoid, Keep, & Acceptable Transfer, Control Monitor and Conclusion Standard and Utilization
Result Analysis Frequency Analysis
Figure 2 Logic structure of risk management process of urban water supply
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2.2 Risk Assessment and Risk Control 10. The potential risks of the water supply system in Baishan were assessed in the following segment: i) water sources (water quantity and water quality); ii) water treatment; iii) water distribution supply pipe network; and iv) uunexpected events.
2.2.1 Potential Risks of Raw Water
• Potential Risks of Insufficient Water Quantity 11. There is a potential risk of inadequate water supply of the water source at Xibeicha Reservoir, especially during the drought years.
12. Risk Control - the water supply source, Xibeicha Reservoir, will supply water to both Hunjiang and Jiangyuan districts. The water source has been configured to guarantee the water supply to Hunjiang district in the event of water shortage, and use the current existing water supply to supplement the supply in Jiangyuan district.
• Potential Risks of Raw Water Pollution 13. There are potential risks of water pollution at the water source such as: i) pollution from the domestic and industrial wastewater; ii) pollution from agricultural production; iii) pollution from mining, which was the case of pollution of 2 of the 4 water sources in Baishan; and iv) terrorist sabotage.
14. Risk Control - The risk of pollution at the water source of Xibeicha Reservoir is low due to its isolated location in the deep forest. A water source protection plan has been developed and approved by the government authority. It is critical to implement and enforce the water source protection plan after the construction of the reservoir completed and in operation.
2.2.2 Potential Risk of Water Production
15. The potential risks in the water production process may include water quality deterioration in water treatment plant and pipe network, excessive residual chloride, residual tturbidity, etc.
• Potential Risks of the Water Purification Process 16. The risk may come from equipment. When flocculation and sedimentation tanks do not clean and wash on time, it may cause the water quality at the end-outlet to become worse. The temperature in Baishan City in winter could be extremely cold and frozen sludge is one of potential risks to cause water quality deterioration.
17. Risk Control - To develop and implement adequate training to the plant operation staff to closely monitoring the water quality in the plant, and conduct flushing procedure to clean the system in according to the operation manual and based on the actual needs.
• Potential Risks of Residual Chloride 18. Chloride is used in the water treatment plant to remove the bacteria from the water. However, the excessive residual chloride will have harmful impact to human body. There is potential risk of having excessive chloride in the water if the amount of the chloride is not adjusted correctly based on the water quality received in the plant.
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19. Risk Control - To develop and implement training program for the plant operation staff to monitor and control the water treatment process according to operation manual and procedures strictly.
• Potential Risks of Residual Turbidity 20. The chemical and physical process is used in the water treatment plant to remove the turbidity in the water. There is a potential risk that there is excessive turbidity in the water supply system if the water treatment process is not conducted properly.
21. Risk Control - To develop and implement training program for the plant operation staff to monitor and control the water treatment process according to operation manual and procedures strictly.
2.2.3 Potential Risk of Water Transmission and Water Delivery
• Potential Risks of Water Quality Deterioration in the Pipe Network 22. The water quality in the water supply network is often deteriorates rapidly. The reasons may be due to the extremely low water temperature in the winter season affecting the flocculation and sedimentation of the water or the high temperature causing over-growth of the water bloom in the summer.
23. Risk Control - Develop and implement water quality monitoring program to check the water quality in the pipe network, especially in the ends of the network. Perform pipe network flushing or disinfection to clean the system as needed.
• Potential Risks of Turbidity in the Pipe Network 24. The water in the pipe network may stay at different water qualities or flow at different velocities, which will cause pipe corrosions. When the direction and speed of the flow of water change, the sediments and bio-membranes on the pipe walls could be washed off, and causing excessive turbidity.
25. Risk Control - Develop and implement water turbidity monitoring program to check the water quality in the pipe network. Perform pipe network flushing or disinfection to clean the system as needed.
• Potential Risk of Pipe Burst 26. Water pipe burst may happen due to excessive pressure, aged-pipe lines and out-of-date pipelines, damaged due to excavation actives, etc.
27. Risk Control - Develop emergency response plan and provide training to the emergency response crew to take quick action in the event of pipe bursting.
2.2.4 Unexpected Events
28. The unexpected events may include natural disasters, accidents, terrorist sabotages, and other uncontrollable extreme events.
29. Risk Control - Develop emergency response plan for these unexpected events and provide training to all involved people including plant operator and management, maintenance crew, publics, etc. to react to the extreme events accordingly.
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3. Water Safety Plan
The risk assessment identified a number of hazards and risks to water safety system, but concluded that the control measures proposed is the WSP would reduce most of those the risks to acceptable levels (low risk rating). Key hazards and risks for different water supply process steps as well as the proposed control measures are described in the following table.
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Risks Analysis and Risks Control For Baishan Water Supply Prokect (Technical Issues)
R isk Rating Process Risk Rating Location Risk without Proposed Control Measure Notes Step with Control Control Water Water intake Insufficient of water High • To joint-dispatch of drinking water sources, to achieve the Low • After the project source site quantity urban water supply by multiple water sources. completion , it will be • To strength water conservation by reducing NRW through achieved the joint- capacity building on providing leakage detection dispatch of water supply equipments, to setup the rapid emergency rescue between Qujiaying mechanism of safety water supply, to install water meters Reservoir and the and flow meters with good accuracy . Xibeicha Reservoir. • To study and formulate a rational water tariff policy to • The water production simulate the public awareness on water conservancy by capacity and water policy. supply capacity will be • To improve water quality in spare water sources gradually by increased and meet the through implement Water Protection Law and other relative requirement of water laws within the water conversation zones. demand.
Water intake Water pollution Mediumw -lo • Develop and update the water source protection plan Low IA to coordinate the site • Implement and enforce the water source protection plan for implementation and forestation, controlling access, prohibiting illegal farming, etc. enforcement of the protection plan will all involved agencies. Water WTP Water pollution Medium • Develop training program to improve the capacity of the Low To develop the proper Production water treatment plant operation staffs to ensure the proper operation procedures and operation of the plant have the routine training to • To establish the on-line water quality monitoring system to the operation staffs are check the real time variation of water quality timely. critical to ensures the proper • To strength the capacity of the chemical laboratory of the operation of the plant. water quality for water quality testing. • To strength and provide necessary equipments on the supervisory control to drinking water sources, water treatment plant. • To strengthen and implement the management mechanism of regular inspection, maintenance and operation, reporting to ensure the safe operation of water supply pipe network. • To strength the supervision of waste water discharging.
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Pre -sediment Algal bloom and algal Low • Monitoring and clean the tank according to the operation Low tan k toxins in the tank procedure • Water flows in the tank will be supervised by qualified staff Coagulation • Mechanical fault Medium • To install real time monitoring system and warning system Low and flocculation chemical dosing • To flush the dosing system; tank system, resulting • To establish an automatic dosing pump alarm system in high turbidity • The coagulant agent must be purchased from the qualified and pathogens supplier sourcing, and to provide supporting documents to • The mixing meet the national standard GB1892-2009. contaminated • To connect with the network of monitoring and warning causes water system to monitor the filtered turbidity; pollution Filtration • The failure of Medium • To install real time monitoring and warning system f iltration system • To install parallel multiple filtration units; leads to a high • Conduct routine filter maintenance program. turbidity and the potential pathogens exceed to the standard Chlorine • Due to machine’s High • To establish an on-line monitoring and warning system to Low treatment breakdown cause monitor the Chlorine content by chlorine • To install automatic dosing system to ensure that the deficiency or accuracy of chlorine content excess, thereby leading to the breeding of bacteria or chlorine’s overweight Pumping • Pumping station’s High • Install dual pump system at key pump stations Medium Station failure causing not • Install spare power supply system enough pressure
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W ater Pipe network •e Pip burst cause High • Install real time monitoring system to detect pipe bursting Medium transmission the secondary timely and to take immediate remedy actions & distribution pollution and • Develop emergency response plan for pipe bursting networks cause to stop • Select and use the proper pipe material for the design water supply working pressure. interruption • Conduct routine leaking detection to locate and fix water leaking early • Conduct routine inspection and implement preventive maintenance to keep pipe network in good working condition
Pipe burst at • Use proper connection pipe to improve the interface connection pipe to High quality Low water users Water is polluted by • To upgrade aged pipe system with new pipe meeting using unqualified current design standards pipe material, out-of • The purchased pipe lines must be meet the national date High standards of safety drinking water and the design Low material( Galvanized requirement. iron and lead) • To regular monitor water quality ----To improve public safety awareness and reporting timely. Overall Medium Low
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Appendix R Procurement Capacity Assessment
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Jilin Urban Development Project Appendix R (TA 8172-PRC) Final Report
PROCUREMENT CAPACITY ASSESSMENT
A. Introduction
1. As part of the project-preparation process, ADB requires an assessment of the capacity of the executing agency (EA) and implementing agencies (IAs) to procure goods, works and consulting services, and recommendations to be made on actions required to address weakness or constraints. Specifically, the assessment exercise involves:
(i) Evaluating the ability of existing EA/IA procurement processes to comply with ADB’s procurement guidelines; (ii) Identifying the need for training and specific procurement arrangements (in resources or processes) to be adopted during project preparation and implementation, to develop staff competence and improve effectiveness, and to minimize implementation risks; and (iii) Defining the appropriate level of review, either prior or post by ADB.
2. The assessment has three components:
(i) The assessment of the general procurement environment; (ii) A questionnaire completed by the EA and IAs; and (iii) The preparation of a procurement capacity assessment report, including corrective recommendations.
B. Expected Procurement under the Project
3. The project will involve a broad range of procurement contracts covering consulting services, goods and works contracts. There will be seventeen (17) goods contracts procured by ICB (above $1.0 million), three (3) works contract procured by ICB (above $10 million), one (1) goods contracts procured by NCB (between $0.1 million but less than $1.0 million), and eighteen (19) works contracts procured by NCB (between $0.1 million and $10 million). There will be also two (2) consulting service contracts, one by QCBS selection and one by ICS selection. The QCBS (80:20) method will be used to procure consulting services for the loan implementation.
C. Assessment of General Procurement Environment
4. The assessment of the general procurement environment for PRC is an exercise that is undertaken by ADB and updated normally on an annual basis. The ADB assessment is shown in Table 1 - National Procurement Environment (PRC).
5. This assessment is essentially to ascertain the level of risks (low, average, or high) associated with the procurement process. The main areas with high risks are identified to be:
(i) Existing procurement law makes no differentiation between procurement processes for consulting services and goods/works; (ii) Lack of a procurement manual specifying how the legal requirements are translated into detail work procedures, and (iii) Lack of procurement accreditation or professionalization program.
6. However, the requirement to adhere to the procedures stated in ADB Procurement Guidelines will mitigate these risks to acceptable levels.
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Jilin Urban Development Project Appendix R (TA 8172-PRC) Final Report
Table 1 The National Procurèrent Environnent (PRC) General Procurement Environment Assessment Risk Assessed as Low Ave rage High 1. Is there a procurement law? X The answer to this is a simple yes or no, i.e. is there a single law governing procurement which is representative of best practice or is yes procurement governed through various laws, decrees etc.? Assess this as either “High” or “Low” 2. Are the laws and regulations clear and concise? If there is no single law check “high”, and similarly if the law is complex and difficult to follow check “average”. If the law is easy to follow X check “low”. 3. What does the law (or regulations applicable to procurement) cover? If there is a single law, “low” will apply when the law covers drafting and use of standard bidding documents evaluation, contracting, X through to the management of contracts including payment, warranty and defects liability periods. The less the procurement process is covered the higher the risk. If there is no single law, check “high” 4. Does the law cover the procurement of consulting services? X If consulting services are not covered or there is no law the risk is high, if they are covered the risk is low. 5. Does the law differentiate between processes for consulting services and Goods/Works? If there is no law, or it applies the same processes to consulting services as for goods and works check high. If there is some X differentiation but the processes are similar, check average. If consulting services are dealt with separately check low 6. Does the law require advertisement of all procurement opportunities Low risk will be represented through advertisement all above $25,000, average above all above $100,000, high by no advertisement or Requirements are advertisement at a higher threshold than $100,000. different in different 7. Are contract awards advertised? provinces and sectors The same thresholds as stated at question 6 should be applied 8. Are there restrictions on goods works and services on the basis of origin? If procurement is limited to solely national origin check high, if there are restrictions or a national preference scheme, average. If None X low 9. Do the law or relevant legislation and regulations provide acceptable provision for the participation of state owned enterprises? X Only if the SOE is legally and financially autonomous and not a dependent agency of the purchaser low, other than this high 10. Are there restrictions on the nationality of bidders and consulting firms invited? If procurement is limited to solely national firms and individuals check high, if there are restrictions or a national preference scheme, X average. If None low 11. Are foreign bidders and consultants forced to offer through or with local partners? X If yes, high; in certain circumstances, average; never, low 12. Is there a domestic preference scheme? X If there is across the board high, if applicable in limited circumstances, average, if none, low. 13. Is there a national standard mandated for use for quality control purposes? X No, or Yes with direct, accessible international equivalents low, yes without international equivalents high For government 14. Are any agencies exempt from the law? procurement, yes; Such as the security forces, if yes high, also high of any types of goods are exempt from parts of the law such as medicines, text books For general or any other commodity procurement, no
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Jilin Urban Development Project Appendix R (TA 8172-PRC) Final Report
Table 1 The National Procurèrent Environnent (PRC) General Procurement Environment Assessment Risk Assessed as Low Ave rage High 15. Is the default method for procurement open competition? X Either yes or no and low or high 16. Is open procurement easily avoided? If the procurement law allows avoidance of open procurement above the national threshold on the basis of circumstances that are not in X response to natural disasters, i.e. simple urgency, check high, if open procurement can be avoided by senior management decision average. If avoidance requires approval of an oversight agency, low. 17. Do the rules and regulations require pre-qualification? X Only for complex contracts, low, no contracts average, all contracts high. 18. Do the rules and regulations require registration? Require company If yes, high, if only for specialist goods such as medicines average. If no registration low. registered 19. Are there systematic procurement process audits? X Yes, low. Only financial audits average, none, high 20. Is there a national procurement manual or guide? X A single procurement manual or guide, low, manual exists but out of date/not in wide use average, none high Depend on sectors, some 21. Do the laws and regulations mandate the use of standard documents? line ministries have Documents for goods, works and consultants services low, just for 2 of the three average, only one or none high standard documents 22. Have these standard bidding documents been approved for use on ADB projects? X Yes low, some but not all average, no high 23. Do the regulations require the collection of nationwide statistics on procurement? X Yes and statistics collected low, yes but data not collected or used average, no high 24. Is consolidated historical procurement data available to the public? X Yes low, too much or too little, average, no high 25. Do the procurement laws and regulations contain provisions for dealing with misconduct? Such as fraud and corrupt practices – the procurement law or regulations may include or cross refer to anti-corruption legislation. Yes X low, no high. 26. Is fraud and corruption in procurement regarded as a criminal act? X The penalties should include penal servitude (prison) yes low, no high. 27. Have there been prosecutions for fraud and corruption? If there have been successful prosecutions for fraud and corruption, low, if prosecutions seem to focus solely on low grade junior staff X average, none high 28. Is there an alternative disputes resolution process independent of government and courts? If there is an arbitration law and independent process low, if the standard contracts use ICC or similar dispute resolution average, if X arbitration is through the courts or can be overturned by courts high. 29. Does the law allow for sovereign immunity to the EA for claims against it? X If plaintiffs can sue the government for contractual non-performance low, if they cannot high
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Jilin Urban Development Project Appendix R (TA 8172-PRC) Final Report
Table 1 The National Procurèrent Environnent (PRC) General Procurement Environment Assessment Risk Assessed as Low Ave rage High 30. Do the regulations allow for black listing (disbarment) of firms and individuals? If there is no black listing process or the process is transparent and equitable and undertaken by an independent oversight agency low. If X there is a process and it is administered by a single line agency such as finance average, if it is administered by the executing agency high. 31. Which body oversees procurement? By government at different Independent body reporting to the elected body low, single body reporting to the cabinet average, no body or reports to a single state levels agency such as the Prime Minister or Finance Minister high. 32. What powers does the oversight body have? If the body can impose administrative sanctions on an EA and its staff and overturn contact awards including ministerial decisions low, if X the body only can impose sanctions through the head of the EA, average, if the body can only recommend action high 33. Is there a nationwide procurement training plan? If procurement training is assessed and planned for nationwide low, if this is delegated to line agencies average, if there is no strategy or X plan high. 34. Is there a procurement accreditation or professionalization program? X An externally recognized program low, a government sponsored program average, none, high 35. Are major projects identified within an agencies appropriation or budget? X Yes low, no but a system in place for the ring-fencing of project funds average, neither low 36. Is the procurement cycle tied to an annual budgeting cycle? I.e. can procurement activity only commence once a budget is Budget need to be approved? approved, but may not be No a medium expenditure framework is in place low, activity may start up to but excluding contract award average, yes tied to annual always on annual basis. budget high 37. Once an appropriation or budget is approved will funds be placed with the EA or can the EA draw them down at will? X Yes low, no – additional controls imposed high (such as cash release system) 38. Can an EA draw directly from a loan or imprest account or will it spend budgeted funds with the borrower claiming reimbursement? Both Draws directly low, from budgeted funds high 39. When an EA is implementing a project using funds from the national budget has a delay in funding significantly delayed procurement? X No or not applicable low, yes high
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Jilin Urban Development Project Appendix R (TA 8192-PRC) Final Report
D. EA Procurement Capacity Assessment
7. The procurement questionnaire as shown in Annex 1 was used to assess Jilin provincial PMO. The PMO was established under Jilin provincial executive order dated May 22, 2006(79-2006). The PMO is headed by the director of Jilin Provincial Housing and Urban Construction Department. Four full time staffs including a full time deputy director are assigned to the PMO in charge of the daily operation. The PMO was established under Jilin Provincial Housing and Urban Construction Department, and will take the lead for the procurement process for the entire project. The PMO will engage a tendering company to assist in procurement for all subprojects in Baicheng and Baishan. The PMO will coordinate with the consultants and the design institute for bidding document preparation, bidding process, bidding evaluation, prepare and submit bidding evaluation reports to ADB for endorsement. The procurement capacity is evaluated through interviews and the questionnaire as divided into five sub-sections:
(i) General resources –staffing and equipment; (ii) Procurement processes for goods and works –preparation of bid documents and tendering process; (iii) Procurement processes for consulting services – consultant selection procedure; (iv) Process oversight and control – checks-and-balance and contract administration; and (v) Record keeping.
Assessment of General Resources
8. The PMO staffs have certain experience with the procurement of urban infrastructure development for domestic funded project, and also have some years’ experience for procurement on ADB financed projects. Though there are only four people, they are quite capable and efficient, and know well how to utilize the consultant resources to realize good control of the project progress, cost and quality. A mature project management mechanism has been established, and relevant training has been conducted to ensure that they could adequately coordinated and guided in the implementation of the procurement plan.
9. The capacity constraint due to inadequacy knowledge of procurement staff could result in delays or mistakes in directing and coordinating engineering design, bidding document preparation, bidding process, bidding evaluation, etc. during the procurement process. The loan implementation consultant is indispensable for successful implementation of the loan project, which should be engaged by EA to provide additional resources in assisting the EA and IAs in complying with the loan agreement terms as regards procurement, project management and other aspects. Even before the engagement of the loan implementation consultant, additional procurement support either from PPTA or other resources, especially in bidding document preparation, will be required to assist the PMO and IAs for the early stage of the procurement process.
Assessment of Procurement Processes for Goods and Works
10. Responses to the questionnaire show a systematic process is not yet fully in place for preparing bid documents, bids evaluation and contract award. The PMO is not full of engineering knowledge. It is understood that the EA will hire a design institute to prepare the preliminary and construction drawing designs, engage a tendering company to assist the preparation of the bidding documents and bidding process. The common practice in PRC is that the design institute will prepare the detailed design drawings and the bills of quantities as the technical parts of the bidding documents, while the tendering company will prepare the commercial part of the bidding documents. However, since the bidding documents for the foreign funded projects require the full technical specifications and much more detailed bills of quantities, the domestic design institutes and PMO staffs are usually not able to complete the technical bidding
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documents to the quality required for the foreign funded projects. An extensive support from ADB shall be provided to ensure the implementation of the project. Since both design institute and the tendering company are usually not familiar with ADB funded projects, it is necessary to include experienced procurement specialists both in the implementation consultant team and prior to the engagement of the implementation consultants to help EA/IAs prepare bidding documents and help in bidding process. The “Bid Evaluation Committee’ composed of the owner’s representatives and selected experts external to the organization will decide the successful bidder. The procedure is in principle satisfactory so long as the additional procedures specified in the ADB Procurement Guidelines are also complied with.
11. Due to the lack of engineering background in the implementation of procurement for this kind of complex project, and lack of capacity in preparing the technical parts of the bidding documents involved in the project, it is recommended that the capacity building program for the PMO should include experienced procurement specialists with adequate input assisting bidding document preparation and procurement training.
12. During project implementation, the loan implementation consultant should provide on-the-job training on procurement, review the design documents from the design institute and provide assistance in prepare and review the bid documents and update them using ADB standard bidding documents to ensure compliance with ADB requirements, and in addressing ADB’s comments during the tendering process.
Assessment on Procurement Processes for Consulting Services
13. Based on discussions and interviews of the PMO management and staff, it is concluded that they have some experience of procuring a consulting firm for implementation of the Project. It is suggested that ADB provide guidance to the PMOs during recruiting the consulting firm process. It’s recommended that the consulting firm is recruited as soon as possible, certainly before the civil works and equipment contracts are awarded.
Assessment of Process Control and Oversight
14. Based on interviews and surveys, the PMO staffs are familiar with domestic procurement process for recruiting consulting services. There are well established national and local guidelines and regulations to engage consultants for the domestic consulting services. The PMO staffs have attended procurement trainings provided by ADB and other government agencies and with knowledge for ADB procurement process for consulting services. It appears that control and oversight will be established:
(i) Separate agencies are involved in approving bid documents, tender recommendations etc. (ii) There are procedures for dealing with invoicing, payment and non-payment. (iii) Declaration of conflict of interest in procurement process will be required.
15. However, closely monitoring and detailed instructions to the PMO during the procurement process will be required. Additional controls by ADB through its reviews and approvals of bidding documents, instructions to the bidding process and contracts serve to ensure fairness and openness in procurement and compliance with ADB’s procurement principles.
Assessment of Record Keeping
16. From responses received, it appears that a reasonable record system will be established for safekeeping the original contracts, copies of bids and bid evaluation, and contract administration documents. However, the importance of book keeping and clearly defined filing
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system shall be addressed to PMO’s and the filing system shall be enhanced through capacity development and training.
E. Procurement Capacity of Implementing Agencies
17. There are two implementing agencies (IA) for the project, Baicheng Municipal Government and Baishan Municipal Government. The primary role of each IA is to carry out the construction of the subproject in each city, and they are responsible for project construction management, supervision, quality control, etc. The implementing agency (IA1) for Baicheng subproject is Baicheng Municipal Government and the project implementation unit (PIU) under BCMG is Baicheng Economic Development Zone Investment & Development Company Limited (BIDC) which is responsible for the construction of the subcomponents of Baicheng ISWM and Western Area Urban Road & Municipal Services. BIDC is a city owned enterprise established by Baicheng Economic Development Zone(BEDZ) in 2004 with the targeted service sectors of urban infrastructure development, real estate development, municipal services and other business activities. Currently there are one full time and two part time staff in procurement department. The company is familiar with the procurement process for the domestic construction projects, but does not have any experience working with foreign funded projects.
18. The implementing agency for Baishan subproject, IA2, is Baishan Municipal Government and the subproject have two project implementation units. One is Baishan Solid Waste Disposal Co. Ltd(Baishan SWDC) responsible for the implementation of the subcomponent of Integrate Solid Waste Management (ISWM), the other is Baishan Xibeicha Qiyuan Hydropower Co. Ltd(Baishan Qiyuan) responsible for the implementation of the subcomponent of Water Supply. Baishan SWDC is a city owned enterprise established by Baishan HUCB in 2004. The main business focus is to assist the county government to carry out urban development, urban infrastructure and municipal service facility construction, real estate development and other business activities. There are two part time staffs in the procurement department. Baishan Qiyuan is a city owned enterprise estabilished by Baishan Water Bureau in 2010. And there are two part time staffs in the procurement department. Both the two company staffs are very experienced in domestic procurement process but does not have any experience in foreign funded projects.
19. Based on the responses from the procurement capacity assessment questionnaires for the three IA PIUs (Annex 2 to Annex 4), the procurement capacities of all IA PIUs have been assessed and evaluated in the four aspects and the results are summarized in the followings:
Assessment of General Resources
20. The staffs from all three IAs have certain experience with the procurement of urban infrastructure development for domestic funded project, but they do not have experience for procurement for foreign funded urban development projects. The staffs are in general lack of knowledge and experience for ADB procurement procedures, bidding document preparation, and procurement process.
Assessment of Procurement Processes for Goods and Works
21. The staffs from all three IAs are familiar with domestic procurement process and experienced dealing with domestic urban development projects. However, the responses to the questionnaire show a systematic process is not yet fully in place for preparing bid documents, bids evaluation and contract award as required by ADB procurement procedures. In particular, the staffs do not have knowledge of bidding document preparation and ADB procurement procedures. Since both design institute and the tendering company are not familiar with ADB funded projects, it is necessary to include experienced procurement specialists both in the
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implementation consultant team and prior to the engagement of the implementation consultants to help EA/IAs prepare bidding documents and help in bidding process.
Assessment on Procurement Processes for Consulting Services
22. Based on the responses to the questionnaires to all three IAs, it is concluded that the management staffs from three IAs have limited experience in recruiting consulting service for domestic projects but no experience of procuring a consulting firm for implementation of the Project.
Assessment of Process Control and Oversight
23. Based on interviews and surveys, the IA staffs are familiar with domestic procurement process for recruiting consulting services. There are well established national and local guidelines and regulations to engage consultants for the domestic consulting services. It appears that control and oversight will be established:
(iv) Separate agencies are involved in approving bid documents, tender recommendations etc. (v) There are procedures for dealing with invoicing, payment and non-payment. (vi) Declaration of conflict of interest in procurement process will be required.
Assessment of Record Keeping
24. Similar to EA/PMO, it appears that a reasonable record system will be established for safekeeping the original contracts, copies of bids and bid evaluation, and contract administration documents. However, the importance of book keeping and clearly defined filing system shall be addressed to IAs and the filing system shall be enhanced through capacity development and training.
25. There are two aspects to procurement capacity as far as IAs are concerned. Firstly the IAs need to have the organization set-up, resources and technical knowledge to handle the procurement processes, and secondly it is necessary to examine the current procurement processes adopted to see how well these are aligned with ADB Procurement Guidelines. The IAs are mainly concerned with the procurement of contractors in accordance with the Procurement Plan developed during the PPTA and updated regularly thereafter.
26. The assessment indicates that IAs have some relevant experience, but they are lack of experience and knowledge for the procurement of goods and works for internationally financed project. Some IA staff received training in ADB procedures during the PPTA process.
27. The IAs follow the procurement processes spelled out in governing documents, notably the ‘PRC Tendering Law’ in accordance with established administrative procedures. Key processes adopted relating to procurement of contractors for goods and works are as follows:
(i) Design institute to develop construction drawings, bills of quantities, and a brief technical design notes, which is far too simplified in comparison to the full contract technical specifications used in the developed countries. (ii) Tendering agency to draft commercial part of the bidding documents following ADB standard (iii) PMOs to approve contract documents (iv) Procedures in place for tender notification, submission and rejection (v) Tender evaluation by a committee composed of the owner and selected experts (vi) Need for personnel involved to declare any potential conflict of interest (vii) Requirement for external approval of major procurement decisions
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(viii) Requirement for written narratives for procurement decisions (ix) Monitoring of contractual performance and fulfillment of payment obligations (x) Requirement for safe keeping of original contract and contract correspondence
28. The assessment also reveals that there is no procurement manual available to guide detail operations, the IAs have no previous experience with ADB funded projects. Therefore, more procurement training is necessary and capacity of procurement must be enhanced.
F. Summary of Assessment and Recommendations
29. The Jilin Provincial PMO is responsible for the procurement of the consulting services for the project implementation, and the PMO is also responsible to provide guidance and coordinate with two IAs to procure all construction contracts for the three subprojects and provides oversight of contract management. The PMO will coordinate and manage the preparation of bid documents by the design institute (technical part) and the tendering company (commercial part), organize bid evaluation, coordinate for contract award and signing of contracts. Subsequently the PMO will coordinate with IAs to provide contract administration and record keeping. The two IAs under the guidance of PMO will carry out procurement preparation activities and contract management activities, including working with the design institute and the loan implementation consultant to prepare the technical part of the bidding documents, provide project specified contract document requirements, construction and contract management and construction supervision.
30. Based on the evaluation of the EA and IAs and the responses to the procurement capacity questionnaires, the general findings of the assessment are as follows:
The PMO and the three IAs have established procurement units/divisions, and the staffs are experienced in procurement for domestic urban infrastructure projects, but they do not have much procurement experience for foreign funded including ADB projects. The PMO has certain experience in procurement for consulting service contracts for domestic projects, and some experience for foreign funded projects. The IAs have adequate technical resources to handle Water supply and urban infrastructure components, but they do not have experience in procurement, contract management, construction management for foreign funded projects. Rules and regulations will be in place within the PMO and IAs for handling the various stages of procurement from bid document preparation, bid evaluation, contract award and administration ensuring fairness and a reasonable degree of check-and-balance during the procurement process. Safe record keeping for contract documentations will also be provided for. However there is no detail procurement manual to guide detail operations. The IAs are lack of expertise in bidding document preparation for foreign funded including ADB projects. The common domestic practice for urban infrastructure construction does not need the PMO/IAs get involved in the bidding document preparation as those are prepared by the design institute and the tendering company. However, for the foreign funded projects, the comprehensive technical bidding documents including bills of quantities, specifications and construction drawings are required. The common design institutes are usually do not have the expertise and experience to prepare them. The IAs have not implemented ADB projects before and therefore are unfamiliar with ADB procurement requirements and procedures, in particular if special actions are required for advance contracting and retrospective financing.
31. Based on the above assessment for the current procurement capacity for EA/IAs, the potential risks and other constraints associated with procurement are summarized as follows:
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Due to lack of procurement capacity in dealing with foreign funded and ADB project, it is expected to take longer time for the PMO and IAs to learn and to get familiar with ADB procurement policies and procedure, especially during the early stage of the project implementation including the contracts for advance contracting and retroactive financing. As the IAs have no international procurement experience and have no staff with good command of professional English, it is difficult to ensure high quality English bidding documents for international bids. Lack of a detail procurement manual in the IAs make it difficult to ensure all work performed by the individual IAs are consistent and to the same format and quality, and this in turns makes supervision and coordination difficult. Adoption of the ADB Procurement Guidelines providing standard detail procedures will mitigate these risks. The PMO/IAs as well as the design institute do not have expertise and capacity to prepare bidding documents meeting ADB procurement procedure requirements since the comprehensive technical bidding documents are not required for common domestic projects.
32. Based on the assessment and previous working experience with the municipal governments in similar size and natures, the following recommended measures to mitigate risks and facilitate procurement are proposed:
The loan implementation consultant to be engaged by the EA should include building procurement capacity, providing on-the-job training to PMO and IAs procurement staff on ADB requirements and procedures, and providing technical assistance in terms of review of detail design and bid documents, review of bid evaluation report, and addressing ADB’s comments on relevant documents. The training for procurement capacity shall be provided in the project preparation stage, i.e. during PPTA to the EA and IAs procurement staffs so that they can get familiar with ADB procurement policies and procedures to ensure efficient implementation of the project. After the completion of PPTA and before the mobilization of the loan implementation consultants, there is a period of time up to six or more months when there are no consultants help EA/IAs, and which is also the period that the bidding documents for the early contracts need to be prepared. It is recommended that an experienced procurement specialist team should be engaged, either from PPTA consultants or independent consultants, to help EA/IAs in bidding document preparation, bidding process, bid evaluation and other procurement related tasks. The common practice in PRC is to hire a tendering company to handle bidding process. The tendering company can only assist the owner in preparing commercial part of the bidding documents and help the owner to carry out the bidding process. It is important to ask PMO/IAs to engage a tendering company that have previous foreign funded and ADB project experience. There is a need for assurance of ADB’s Guidelines on procurement. This will be in the form of ‘Prior Review’ by ADB in accordance with the agreed Procurement Plan. Prior review will be required for all ICB contracts, the first NCB contract for civil works, and the first NCB contract for goods for each IA. Post review will be applied to other procurement packages. Extensive training on procurement will be necessary to reinforce understanding and compliance with ADB's Guidelines. Prior to the recruitment of procurement specialist and/or consulting firm, the staff from the PMO and IAs should seek opportunities to participate ADB or World Bank procurement training and workshops. Special training and workshops provided by the loan implementation consultant, and also by the ADB procurement
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specialist.
33. Nevertheless, it must be recognized that in the PRC, the procurement under externally funded projects is handled through a certified procurement agent system, which requires the project executing agency to engage a certified international tendering company as its agent to handle the loan-funded procurement operations. The procurement agent is engaged through national competitive procedures. The service is normally financed by domestic funding sources. The qualification of the certified international tendering companies is subject to the licensing requirements of the Government. As indicated previously, the tendering company can only assist the EA/IAs in preparing the commercial part of the bidding document and the bidding process, and they are not capable to prepare the technical bidding documents, rather this is the task to be completed by EA/IAs with the supports from the design institute and the consultants from the loan implementation firm or PPTA consultants.
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ANNEX 1
Capacity Assessment Questionnaire – Executing Agency/PMO
Part A: General Resource Assessment Response A.1.Is there a procurement department? yes works , consulting A.2.What procurement does it undertake? service A.3.Are the staff provided with written job descriptions? no A.4.How many years experience does the head of the procurement unit 6 years have in a direct procurement role? A.5.How many staff in the procurement department are: i) Full Time? ii) Part Time? iii) Seconded? 2 A.6.At what level does the department report (to the head of agency, deputy head of agency etc.)? A.7.Do the staff that will be involved with the procurement have English yes language skills sufficient to undertake international procurement? A.8.Are the number and qualifications of the staff sufficient to undertake the no additional procurement that will be required under the proposed project? A.9.Does the unit have adequate facilities such as PCs, internet connections, photocopy facilities, printers etc. to undertake the expected yes procurement? A.10. Is there a procurement training program? yes Part B: Procurement Processes: Goods and Works B.1.Has the agency undertaken foreign assisted procurement of goods or no works recently (last 12 months, or last 36 months)? (If yes funded by whom and name of the Project) B.2.If the above is yes, what were the major challenges? n/a B.3.Is there a procurement process manual for goods and works? Yes B.4.If there is a manual is it up to date and does it cover foreign assisted Yes procurement? B.5.Is there a systematic process to identify procurement requirements (1 No year or more)? B.6.Who drafts the specifications? n/a B.7.Who approves the specification? n/a B.8.Are there standard bidding documents in use and have they been No approved for use on ADB funded projects? bidding agency for B.9.Who drafts the bidding documents? commercial part, nobody for technical part B.10.Who manages the sale of the document? PMO B.11.Are all queries from bidders replied to in writing? yes B.12.Is there a minimum period for preparation of bids and if yes how long? 20 days B.13.Does the bidding document state the date and time of opening and 28 days how close is it to the deadline for submission? B.14.Is the opening public? yes B.15.Can late bids be accepted? no B.16.Can bids be rejected at bid opening? no B.17.Are minutes taken? yes B.18.Who may have a copy of the minutes? the trading center B.19.Are the minutes free of charge? yes B.20.Who undertakes the evaluation (individual(s), permanent committee, Selected experts from ad-hoc committee)? the pool of experts, and
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IA representatives B.21.What are the qualifications of the evaluators in respect to procurement experts from the pool of and the goods and works under evaluation? experts B.22.Is the decision of the evaluators final or is the evaluation subject to It’ s final additional approvals? B.23.Using at least three real examples how long between the issue of the 32 days invitation for bids and contract effectiveness? B.24.Are there processes in place for the collection and clearance of cargo no through ports of entry? B.25.Are there established goods receiving procedures? no B.26.Are all goods received recorded as assets or inventory in a register or yes similar? B.27.Is the agency / procurement department familiar with letters of credit? no B.28.Does the procurement department register and track warranty and yes latent defects liability periods? Part C: Procurement Processes: Consulting Services C.1.Has the agency undertaken foreign assisted procurement of consulting no services recently (last 12 months, or last 36 months)? C.2.If the above is yes what were the major challenges? n/a C.3.Is there a procurement process manual for consulting services Yes procurement? C.4.Is the manual up to date and does it cover foreign assisted projects? Yes C.5.Who identifies the need for consulting services requirements? EA/ PMO and IAs PPMO, IA and bidding C.6.Who drafts the ToR? agency C.7.Do the ToR follow a standard format such as background, tasks, inputs, No objectives and outputs? C.8.Who prepares the request for proposals? PPMO C.9.Are assignments advertised and expressions of interest called for? Yes C.10.Is a consultants’ selection committee formed with appropriate Yes individuals in terms of procurement and technical expertise? C.11.What criteria are used to evaluate EOIs? c ommitment and cost C.12.Historically what is the most common method used (QCBS, QBS QBS etc.)? C.13.Do firms have to pay for the proposal document? S ome firms do C.14.Do the evaluative criteria follow a pre-determined structure and are No they detailed in the RFP? C.15.Are pre-proposal visits and meetings arranged? yes C.16.Are minutes prepared and circulated after pre-proposal meetings? yes C.17.To who are minutes distributed? Attendants C.18. Are all queries from consultants answered to in writing? Yes C.19.Are the financial and technical proposals in separate envelopes? yes C.20.Are proposal securities required? no C.21.Are technical proposals opened in public? No C.22.Do the financial proposals remain sealed until technical evaluation is yes completed? C.23.Are minutes of technical opening distributed? yes E xperts committee , and C.24.Who determines the final technical ranking and how? by the scores C.25.Are the technical scores published and sent to all firms? no C.26.Is the financial proposal open in public? no C.27.Are there minutes taken and distributed of financial proposal opening? yes U se the procedure and C.28.How is the financial evaluation completed? formula in the bidding documents to calculate C.29.Are face to face contract negotiations held? Yes
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C.30.How long after financial evaluation is the selected firm to negotiate? 7 days bidding documents and C.31.What is the usual basis for negotiation? other related documents C.32.Are minutes of negotiation taken and signed? No C.33.How long after negotiations until the contract is signed? within 30 days C.34.Are advance payments made? Yes C.35.Is there an evaluation system for measuring the outputs of No consultants? Part D: Process Oversight and Control D.1.Is there a standard statement of ethics and are those involved in Yes procurement required to formally commit to it? D.2.Are those involved with procurement required to declare any potential No conflict of interest and remove themselves from the procurement process? D.3.Is the commencement of procurement dependent on external approvals No (formal or de-facto) outside of the budgeting process? D.4.Who approves procurement transactions and do they have procurement yes experience and qualifications? D.5.Which of the following actions require approval outside of the procurement unit or a permanent evaluation committee and who grants the Varies from case to case approval? a) Bidding document, invitation to pre-qualify or request for proposal b) Advertisement of an invitation for bids, pre-qualification or call for
expressions of interest c) Evaluation reports d) Notice of award e) Invitation to consultants to negotiate f) Contracts D.6.Is contractual performance systematically monitored and reported yes upon? D.7.Does the agency monitor and track its contractual payment obligations? Yes D.8.On average how long is it between receiving a firm’s invoice and making within 5 days payment? D.9.What is the standard period for payment included in contracts? D.10.When payment is made late are the beneficiaries paid interest? No D.11.Are payments authorized by the same individuals empowered to Yes approve invitation documents, evaluations and contracts? D.12.Is there a written auditable trail of procurement decisions attributable Yes to individuals and committees? D.13.Are procurement decisions and disputes supported by written narratives such as minutes of evaluation, minutes of negotiation, notices of Yes default / withheld payment? D.14.Is there a formal non-judicial mechanism for dealing with complaints? Yes D.15.Is a complaints resolution mechanism described in national not seen procurement documents? Part E: Records Keeping E.1.Is there a referencing system for procurement files? Yes E.2.Are original contracts secured in a fire and theft proof location? Yes E.3.Are copies of bids or proposals retained with the evaluation? Yes E.4.Are copies of the original advertisements retained with the pre-contract Yes papers? E.5.Is there a single contract file with a copy of the contract and all yes subsequent contractual correspondence? E.6.Are copies of invoices included with contract papers? No E.7.For what period are records kept? P ermanent
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ANNEX 2
Capacity Assessment Questionnaire – Baicheng IA/PIU1 BEDZ Investment and Development Company Limited
Part A: General Resource Assessment Response A.1.Is there a procurement department? yes A.2.What procurement does it undertake? works procurement A.3.Are the staff provided with written job descriptions? no A.4.How many years experience does the head of the procurement unit 8 years have in a direct procurement role? A.5.How many staff in the procurement department are: 1 i) Full Time? 2 ii) Part Time? iii) Seconded? A.6.At what level does the department report (to the head of agency, deputy head of agency etc.)? A.7.Do the staff that will be involved with the procurement have English yes language skills sufficient to undertake international procurement? A.8.Are the number and qualifications of the staff sufficient to undertake the yes additional procurement that will be required under the proposed project? A.9.Does the unit have adequate facilities such as PCs, internet connections, photocopy facilities, printers etc. to undertake the expected yes procurement? A.10. Is there a procurement training program? yes
Part B: Procurement Processes: Goods and Works B.1.Has the agency undertaken foreign assisted procurement of goods or no works recently (last 12 months, or last 36 months)? (If yes funded by whom and name of the Project) B.2.If the above is yes, what were the major challenges? B.3.Is there a procurement process manual for goods and works? yes B.4.If there is a manual is it up to date and does it cover foreign assisted Yes procurement? B.5.Is there a systematic process to identify procurement requirements (1 yes year or more)? B.6.Who drafts the specifications? procurement specialists B.7.Who approves the specification? head of agency B.8.Are there standard bidding documents in use and have they been yes approved for use on ADB funded projects? B.9.Who drafts the bidding documents? bidding agency B.10.Who manages the sale of the document? bidding agency B.11.Are all queries from bidders replied to in writing? yes B.12.Is there a minimum period for preparation of bids and if yes how long? 20 days B.13.Does the bidding document state the date and time of opening and Y es, and 15 days how close is it to the deadline for submission? B.14.Is the opening public? yes B.15.Can late bids be accepted? no B.16.Can bids be rejected at bid opening? no B.17.Are minutes taken? yes bidding agent, and it’s B.18.Who may have a copy of the minutes? management agency
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B.19.Are the minutes free of charge? yes B.20.Who undertakes the evaluation (individual(s), permanent committee, specialists in database ad-hoc committee)? B.21.What are the qualifications of the evaluators in respect to procurement specialists in database and the goods and works under evaluation? B.22.Is the decision of the evaluators final or is the evaluation subject to final additional approvals? B.23.Using at least three real examples how long between the issue of the 30 days invitation for bids and contract effectiveness? B.24.Are there processes in place for the collection and clearance of cargo yes through ports of entry? B.25.Are there established goods receiving procedures? yes B.26.Are all goods received recorded as assets or inventory in a register or yes similar? B.27.Is the agency / procurement department familiar with letters of credit? yes B.28.Does the procurement department register and track warranty and yes latent defects liability periods?
Part C: Procurement Processes: Consulting Services C.1.Has the agency undertaken foreign assisted procurement of consulting no services recently (last 12 months, or last 36 months)? C.2.If the above is yes what were the major challenges? C.3.Is there a procurement process manual for consulting services yes procurement? C.4.Is the manual up to date and does it cover foreign assisted projects? yes C.5.Who identifies the need for consulting services requirements? head of agency C.6.Who drafts the ToR? procurement agency C.7.Do the ToR follow a standard format such as background, tasks, inputs, Y es, international objectives and outputs? procurement practice C.8.Who prepares the request for proposals? procurement specialists C.9.Are assignments advertised and expressions of interest called for? yes C.10.Is a consultants’ selection committee formed with appropriate yes individuals in terms of procurement and technical expertise? C.11.What criteria are used to evaluate EOIs? impute and cost C.12.Historically what is the most common method used (QCBS, QBS QBS etc.)? C.13.Do firms have to pay for the proposal document? yes C.14.Do the evaluative criteria follow a pre-determined structure and are yes they detailed in the RFP? C.15.Are pre-proposal visits and meetings arranged? yes C.16.Are minutes prepared and circulated after pre-proposal meetings? yes C.17.To who are minutes distributed? procurement agency C.18. Are all queries from consultants answered to in writing? yes C.19.Are the financial and technical proposals in separate envelopes?˄ yes C.20.Are proposal securities required? no C.21.Are technical proposals opened in public? yes C.22.Do the financial proposals remain sealed until technical evaluation is yes completed? C.23.Are minutes of technical opening distributed? yes B id committee according C.24.Who determines the final technical ranking and how? tore theof the sco bidding document C.25.Are the technical scores published and sent to all firms? yes C.26.Is the financial proposal open in public? yes C.27.Are there minutes taken and distributed of financial proposal opening? yes C.28.How is the financial evaluation completed? hire financial specialists C.29.Are face to face contract negotiations held? yes
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C.30.How long after financial evaluation is the selected firm to negotiate? within 7 days B idding documents, C.31.What is the usual basis for negotiation? bid-winning notice, etc C.32.Are minutes of negotiation taken and signed? yes C.33.How long after negotiations until the contract is signed? Within 30 days C.34.Are advance payments made? yes C.35.Is there an evaluation system for measuring the outputs of yes consultants?
Part D: Process Oversight and Control D.1. Is there a standard statement of ethics and are those involved in yes procurement required to formally commit to it? D.2. Are those involved with procurement required to declare any potential yes conflict of interest and remove themselves from the procurement process? D.3. Is the commencement of procurement dependent on external approvals yes, de-facto (formal or de-facto) outside of the budgeting process? D.4. Who approves procurement transactions and do they have procurement Authorization to experience and qualifications? specialists. Yes. D.5. Which of the following actions require approval outside of the A ll need to be approved procurement unit or a permanent evaluation committee and who grants the by the committee approval? a)Bidding document, invitation to pre-qualify or request for proposal b)Advertisement of an invitation for bids, pre-qualification or call for
expressions of interest c)Evaluation reports d)Notice of award e)Invitation to consultants to negotiate f)Contracts D.6. Is contractual performance systematically monitored and reported yes upon? D.7. Does the agency monitor and track its contractual payment obligations? yes D.8. On average how long is it between receiving a firm’s invoice and making within 5 days payment? D.9. What is the standard period for payment included in contracts? 10 days D.10. When payment is made late are the beneficiaries paid interest? no D.11. Are payments authorized by the same individuals empowered to no approve invitation documents, evaluations and contracts? D.12. Is there a written auditable trail of procurement decisions attributable yes to individuals and committees? D.13. Are procurement decisions and disputes supported by written narratives such as minutes of evaluation, minutes of negotiation, notices of yes default / withheld payment? D.14. Is there a formal non-judicial mechanism for dealing with complaints? yes D.15. Is a complaints resolution mechanism described in national yes procurement documents? Part E: Records Keeping E.1.Is there a referencing system for procurement files? yes E.2.Are original contracts secured in a fire and theft proof location? yes E.3.Are copies of bids or proposals retained with the evaluation? yes E.4.Are copies of the original advertisements retained with the pre-contract yes papers? E.5.Is there a single contract file with a copy of the contract and all yes subsequent contractual correspondence? E.6.Are copies of invoices included with contract papers? no The entire procurement E.7.For what period are records kept? process
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Annex 3
Capacity Assessment Questionnaire –Baishan IA/PIU2 Baishan Solid Waste Disposal Company Limited
Part A: General Resource Assessment Response A.1.Is there a procurement department? yes cons truction material, A.2.What procurement does it undertake? equipment A.3.Are the staff provided with written job descriptions? no A.4.How many years experience does the head of the procurement unit 6 years have in a direct procurement role? A.5.How many staff in the procurement department are: i) Full Time? ii) Part Time? 2 iii) Seconded? A.6.At what level does the department report (to the head of agency, H ead of agency deputy etc.)? A.7.Do the staff that will be involved with the procurement have English no language skills sufficient to undertake international procurement? A.8.Are the number and qualifications of the staff sufficient to undertake the additional procurement that will be required under the proposed no project? A.9.Does the unit have adequate facilities such as PCs, internet connections, photocopy facilities, printers etc. to undertake the expected yes procurement? A.10. Is there a procurement training program? no
Part B: Procurement Processes: Goods and Works B.1.Has the agency undertaken foreign assisted procurement of goods or no works recently (last 12 months, or last 36 months)? (If yes funded by whom and name of the Project) B.2.If the above is yes, what were the major challenges? n/a B.3.Is there a procurement process manual for goods and works? no B.4.If there is a manual is it up to date and does it cover foreign assisted no procurement? B.5.Is there a systematic process to identify procurement requirements (1 no year or more)? B.6.Who drafts the specifications? n/a B.7.Who approves the specification? n/a B.8.Are there standard bidding documents in use and have they been no approved for use on ADB funded projects? bidding agency for B.9.Who drafts the bidding documents? commercial part, nobody for technical part B.10.Who manages the sale of the document? PMO B.11.Are all queries from bidders replied to in writing? yes B.12.Is there a minimum period for preparation of bids and if yes how Y es, 20 days long? B.13.Does the bidding document state the date and time of opening and Yes, 28 days how close is it to the deadline for submission?
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Jilin Urban Development Project Appendix R (TA 8192-PRC) Final Report
B.14.Is the opening public? No B.15.Can late bids be accepted? No B.16.Can bids be rejected at bid opening? No B.17.Are minutes taken? Y es B.18.Who may have a copy of the minutes? B idding center B.19.Are the minutes free of charge? yes B.20.Who undertakes the evaluation (individual(s), permanent committee, specialists and IA ad-hoc committee)? B.21.What are the qualifications of the evaluators in respect to specialists procurement and the goods and works under evaluation? B.22.Is the decision of the evaluators final or is the evaluation subject to It’ s final additional approvals? B.23.Using at least three real examples how long between the issue of the 32s day invitation for bids and contract effectiveness? B.24.Are there processes in place for the collection and clearance of cargo no through ports of entry? B.25.Are there established goods receiving procedures? no B.26.Are all goods received recorded as assets or inventory in a register yes or similar? B.27.Is the agency / procurement department familiar with letters of credit? no B.28.Does the procurement department register and track warranty and yes latent defects liability periods?
Part C: Procurement Processes: Consulting Services C.1.Has the agency undertaken foreign assisted procurement of no consulting services recently (last 12 months, or last 36 months)? C.2.If the above is yes what were the major challenges? C.3.Is there a procurement process manual for consulting services no procurement? C.4.Is the manual up to date and does it cover foreign assisted projects? no EA/PMO and C.5.Who identifies the need for consulting services requirements? International practice PPMO, IAs, and bidding C.6.Who drafts the ToR? agency C.7.Do the ToR follow a standard format such as background, tasks, no inputs, objectives and outputs? C.8.Who prepares the request for proposals? PPMO C.9.Are assignments advertised and expressions of interest called for? yes C.10.Is a consultants’ selection committee formed with appropriate yes individuals in terms of procurement and technical expertise? C.11.What criteria are used to evaluate EOIs? input and cost C.12.Historically what is the most common method used (QCBS, QBS QBS etc.)? C.13.Do firms have to pay for the proposal document? no C.14.Do the evaluative criteria follow a pre-determined structure and are no they detailed in the RFP? C.15.Are pre-proposal visits and meetings arranged? yes C.16.Are minutes prepared and circulated after pre-proposal meetings? yes C hairman, general C.17.To who are minutes distributed? manager C.18. Are all queries from consultants answered to in writing? yes C.19.Are the financial and technical proposals in separate envelopes?˄ yes C.20.Are proposal securities required? no C.21.Are technical proposals opened in public? no C.22.Do the financial proposals remain sealed until technical evaluation is yes completed? C.23.Are minutes of technical opening distributed? yes Permanent committee, C.24.Who determines the final technical ranking and how? according to the
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evaluation criteria C.25.Are the technical scores published and sent to all firms? no C.26.Is the financial proposal open in public? no C.27.Are there minutes taken and distributed of financial proposal yes opening? Calculated by the C.28.How is the financial evaluation completed? program or formula in the bidding document C.29.Are face to face contract negotiations held? yes C.30.How long after financial evaluation is the selected firm to negotiate? 7 days B idding document and C.31.What is the usual basis for negotiation? others C.32.Are minutes of negotiation taken and signed? no C .33.How long after negotiations until the contract is signed? within 30 days C.34.Are advance payments made? yes C.35.Is there an evaluation system for measuring the outputs of no consultants?
Part D: Process Oversight and Control D.1. Is there a standard statement of ethics and are those involved in yes procurement required to formally commit to it? D.2. Are those involved with procurement required to declare any potential no conflict of interest and remove themselves from the procurement process? D.3. Is the commencement of procurement dependent on external no approvals (formal or de-facto) outside of the budgeting process? D.4. Who approves procurement transactions and do they have authority procurement experience and qualifications? D.5. Which of the following actions require approval outside of the Varies according to procurement unit or a permanent evaluation committee and who grants conditions the approval? a) Bidding document, invitation to pre-qualify or request for proposal b) Advertisement of an invitation for bids, pre-qualification or call for
expressions of interest c) Evaluation reports d) Notice of award e) Invitation to consultants to negotiate f) Contracts D.6. Is contractual performance systematically monitored and reported yes upon? D.7. Does the agency monitor and track its contractual payment yes obligations? D.8. On average how long is it between receiving a firm’s invoice and Within 15 days making payment? D.9. What is the standard period for payment included in contracts? D.10. When payment is made late are the beneficiaries paid interest? no D.11. Are payments authorized by the same individuals empowered to yes approve invitation documents, evaluations and contracts? D.12. Is there a written auditable trail of procurement decisions attributable yes to individuals and committees? D.13. Are procurement decisions and disputes supported by written narratives such as minutes of evaluation, minutes of negotiation, notices of yes default / withheld payment? D.14. Is there a formal non-judicial mechanism for dealing with complaints? yes D.15. Is a complaints resolution mechanism described in national no procurement documents?
Part E: Records Keeping E.1.Is there a referencing system for procurement files? no
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E.2.Are original contracts secured in a fire and theft proof location? yes E.3.Are copies of bids or proposals retained with the evaluation? yes E.4.Are copies of the original advertisements retained with the no pre-contract papers? E.5.Is there a single contract file with a copy of the contract and all no subsequent contractual correspondence? E.6.Are copies of invoices included with contract papers? no E.7.For what period are records kept? payment
Annex 4
Capacity Assessment Questionnaire – Baishan IA/PIU3 Baishan Xibeicha Qiyuan Hydropower Company Limited
Part A: General Resource Assessment Response A.1.Is there a procurement department? yes A.2.What procurement does it undertake? W orks\equipment A.3.Are the staff provided with written job descriptions? Yes A.4.How many years experience does the head of the procurement unit 1 have in a direct procurement role? A.5.How many staff in the procurement department are: 2 i) Full Time? ii) Part Time? 2 iii) Seconded? A.6.At what level does the department report (to the head of agency, deputy H ead of agency etc.)? A.7.Do the staff that will be involved with the procurement have English no language skills sufficient to undertake international procurement? A.8.Are the number and qualifications of the staff sufficient to undertake the no additional procurement that will be required under the proposed project? A.9.Does the unit have adequate facilities such as PCs, internet connections, photocopy facilities, printers etc. to undertake the expected yes procurement? A.10. Is there a procurement training program? no
Part B: Procurement Processes: Goods and Works B.1.Has the agency undertaken foreign assisted procurement of goods or no works recently (last 12 months, or last 36 months)? (If yes funded by whom and name of the Project) B.2.If the above is yes, what were the major challenges? B.3.Is there a procurement process manual for goods and works? no B.4.If there is a manual is it up to date and does it cover foreign assisted
procurement? B.5.Is there a systematic process to identify procurement requirements (1 no year or more)? B.6.Who drafts the specifications? do not know B.7.Who approves the specification? do not know B.8.Are there standard bidding documents in use and have they been no approved for use on ADB funded projects? B.9.Who drafts the bidding documents? bidding agency
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B.10.Who manages the sale of the document? PMO B.11.Are all queries from bidders replied to in writing? yes B.12.Is there a minimum period for preparation of bids and if yes how long? 20 days B.13.Does the bidding document state the date and time of opening and 28 days how close is it to the deadline for submission? B.14.Is the opening public? yes B.15.Can late bids be accepted? no B.16.Can bids be rejected at bid opening? no B.17.Are minutes taken? yes B.18.Who may have a copy of the minutes? Trading center B.19.Are the minutes free of charge? yes B.20.Who undertakes the evaluation (individual(s), permanent committee, Expert ad-hoc committee)? B.21.What are the qualifications of the evaluators in respect to procurement Expert in the and the goods and works under evaluation? specialists’ data base B.22.Is the decision of the evaluators final or is the evaluation subject to F inal decision additional approvals? B.23.Using at least three real examples how long between the issue of the 32 days invitation for bids and contract effectiveness? B.24.Are there processes in place for the collection and clearance of cargo no through ports of entry? B.25.Are there established goods receiving procedures? yes B.26.Are all goods received recorded as assets or inventory in a register or yes similar? B.27.Is the agency / procurement department familiar with letters of credit? yes B.28.Does the procurement department register and track warranty and yes latent defects liability periods?
Part C: Procurement Processes: Consulting Services C.1.Has the agency undertaken foreign assisted procurement of consulting No services recently (last 12 months, or last 36 months)? C.2.If the above is yes what were the major challenges? no C.3.Is there a procurement process manual for consulting services no procurement? C.4.Is the manual up to date and does it cover foreign assisted projects? no EA/PMO and National C.5.Who identifies the need for consulting services requirements? laws and regulations, provincial PMO IA and C.6.Who drafts the ToR? tendering agency C.7.Do the ToR follow a standard format such as background, tasks, inputs, yes objectives and outputs? C.8.Who prepares the request for proposals? Provincial PMO C.9.Are assignments advertised and expressions of interest called for? yes C.10.Is a consultants’ selection committee formed with appropriate no individuals in terms of procurement and technical expertise? C.11.What criteria are used to evaluate EOIs? Input and output C.12.Historically what is the most common method used (QCBS, QBS QBS etc.)? C.13.Do firms have to pay for the proposal document? don ’t know C.14.Do the evaluative criteria follow a pre-determined structure and are no they detailed in the RFP? C.15.Are pre-proposal visits and meetings arranged? yes C.16.Are minutes prepared and circulated after pre-proposal meetings? yes C.17.To who are minutes distributed? manager C.18. Are all queries from consultants answered to in writing? yes C.19.Are the financial and technical proposals in separate envelopes?˄ yes C.20.Are proposal securities required? no C.21.Are technical proposals opened in public? no
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C.22.Do the financial proposals remain sealed until technical evaluation is yes completed? C.23.Are minutes of technical opening distributed? yes B id evaluation experts C.24.Who determines the final technical ranking and how? according to the score C.25.Are the technical scores published and sent to all firms? no C.26.Is the financial proposal open in public? no C.27.Are there minutes taken and distributed of financial proposal opening? yes according to the C.28.How is the financial evaluation completed? bidding document C.29.Are face to face contract negotiations held? yes C.30.How long after financial evaluation is the selected firm to negotiate? within 7 days bidding documents, C.31.What is the usual basis for negotiation? bid-winning notice, etc C.32.Are minutes of negotiation taken and signed? no C.33.How long after negotiations until the contract is signed? Within 30 days C.34.Are advance payments made? yes C.35.Is there an evaluation system for measuring the outputs of no consultants?
Part D: Process Oversight and Control D.1.Is there a standard statement of ethics and are those involved in yes procurement required to formally commit to it? D.2.Are those involved with procurement required to declare any potential no conflict of interest and remove themselves from the procurement process? D.3.Is the commencement of procurement dependent on external approvals no (formal or de-facto) outside of the budgeting process? D.4.Who approves procurement transactions and do they have procurement Authorities experience and qualifications? D.5.Which of the following actions require approval outside of the Varies according to procurement unit or a permanent evaluation committee and who grants the condition approval? a) Bidding document, invitation to pre-qualify or request for proposal b) Advertisement of an invitation for bids, pre-qualification or call for
expressions of interest c) Evaluation reports d) Notice of award e) Invitation to consultants to negotiate f) Contracts D.6.Is contractual performance systematically monitored and reported yes upon? D.7.Does the agency monitor and track its contractual payment obligations? yes D.8.On average how long is it between receiving a firm’s invoice and making Within 15 days payment? D.9.What is the standard period for payment included in contracts? D.10.When payment is made late are the beneficiaries paid interest? no D.11.Are payments authorized by the same individuals empowered to yes approve invitation documents, evaluations and contracts? D.12.Is there a written auditable trail of procurement decisions attributable yes to individuals and committees? D.13.Are procurement decisions and disputes supported by written narratives such as minutes of evaluation, minutes of negotiation, notices of yes default / withheld payment? D.14.Is there a formal non-judicial mechanism for dealing with complaints? yes D.15.Is a complaints resolution mechanism described in national no procurement documents?
Part E: Records Keeping
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E.1.Is there a referencing system for procurement files? no E.2.Are original contracts secured in a fire and theft proof location? yes E.3.Are copies of bids or proposals retained with the evaluation? yes E.4.Are copies of the original advertisements retained with the pre-contract no papers? E.5.Is there a single contract file with a copy of the contract and all no subsequent contractual correspondence? E.6.Are copies of invoices included with contract papers? no E.7.For what period are records kept? p ayment
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