People's Republic of China: Hunan Xiangjiang River Watershed Existing Solid Waste Comprehensive Treatment Project
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Hunan Xiangjiang River Watershed Existing Solid Waste Comprehensive Treatment Project (RRP PRC 48443) Project Administration Manual Project Number: 48443-002 Loan Number: LXXXX September 2018 People's Republic of China: Hunan Xiangjiang River Watershed Existing Solid Waste Comprehensive Treatment Project ABBREVIATIONS 3R – reduce, reuse, and recycle ADB – Asian Development Bank CSC – construction supervision company CQS – consultants' qualifications selection DMF – design and monitoring framework EIA – environmental impact assessment EMDP – ethnic minority development plan EMP – environmental management plan EMS – environmental monitoring station FMA – financial management assessment GRM – grievance redress mechanism HFD – Hunan Provincial Finance Department HPG – Hunan Provincial Government HURD – Hunan Provincial Housing and Urban–Rural Development Department ICB – international competitive bidding ICS – individual consultant selection LAR – land acquisition and resettlement LIEC – loan implementation environmental consultant MOF – Ministry of Finance MSW – municipal solid waste NCB – national competitive bidding NDRC – National Development and Reform Commission O&M – operation and maintenance PAM – project administration manual PMO – project management office PPMS – project performance management system PRC – People's Republic of China PSA – poverty and social assessment QCBS – quality- and cost-based selectin SGAP – social and gender action plan SPS – Safeguard Policy Statement WWTP – waste water treatment plant YREB – Yangtze River Economic Belt CONTENTS I. PROJECT DESCRIPTION 1 II. IMPLEMENTATION PLANS 8 A. Project Readiness Activities 8 B. Overall Project Implementation Plan 9 III. PROJECT MANAGEMENT ARRANGEMENTS 11 A. Project Implementation Organizations: Roles and Responsibilities 11 B. Key Persons Involved in Implementation 14 C. Project Organization Structure 16 IV. COSTS AND FINANCING 17 A. Cost Estimates Preparation and Revisions 17 B. Key Assumptions 17 C. Summary Cost Estimates and Financing Plan 17 D. Detailed Cost Estimates by Expenditure Category 20 E. Allocation and Withdrawal of Loan Proceeds 21 F. Detailed Cost Estimates by Financier 22 G. Detailed Cost Estimates by Outputs 24 H. Detailed Cost Estimates by Year 25 I. Contract and Disbursement S-Curve 26 J. Fund Flow Diagram 27 V. FINANCIAL MANAGEMENT 28 A. Financial Management Assessment 28 B. Disbursement 29 C. Accounting 31 D. Auditing and Public Disclosure 31 VI. PROCUREMENT AND CONSULTING SERVICES 32 A. Advance Contracting and Retroactive Financing 32 B. Procurement of Goods, Works, and Consulting Services 32 C. Procurement Plan 33 D. Consultant's Terms of Reference 42 VII. SAFEGUARDS 50 VIII. GENDER AND SOCIAL DIMENSIONS 55 IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION 57 A. Project Design and Monitoring Framework 57 B. Monitoring 61 C. Evaluation 63 D. Reporting 63 E. Stakeholder Communication Strategy 64 X. ANTICORRUPTION POLICY 65 XI. ACCOUNTABILITY MECHANISM 66 XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL 66 APPENDIX: Environmental Management Plan Project Administration Manual Purpose and Process The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with the policies and procedures of the government and Asian Development Bank (ADB). The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM. The executing agency, Hunan Provincial Housing and Urban–Rural Development Department, and implementing agencies (Changning City Government, Dong'an County Government, Guiyang County Government, Hengshan County Government, Hengyang County Government, Lanshan County Government, Leiyang City Government, Lengshuijiang City Government, Yongzhou City Government, Zixing City Government) are wholly responsible for the implementation of the ADB-financed project, as agreed jointly between the borrower and ADB, and in accordance with the policies and procedures of the government and ADB. ADB staff is responsible for supporting implementation including compliance by executing and implementing agencies of their obligations and responsibilities for project implementation in accordance with ADB's policies and procedures. At loan negotiations, the borrower and ADB shall agree to the PAM and ensure consistency with the loan agreement. Such agreement shall be reflected in the minutes of the loan negotiations. In the event of any discrepancy or contradiction between the PAM and the loan agreement, the provisions of the loan agreement shall prevail. After ADB Board approval of the project's report and recommendation of the President (RRP), changes in implementation arrangements are subject to agreement and approval pursuant to relevant government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval, they will be subsequently incorporated in the PAM. I. PROJECT DESCRIPTION A. Rationale 1. The Xiangjiang River and its watershed are part of the larger Dongting Lake watershed. Both watersheds are integral elements of the downstream Yangtze River watershed. The Yangtze River Economic Belt (YREB) covers nine provinces and two specially administered cities in the Yangtze River Basin. It accounts for over 40% of the PRC’s population and has 40% of the freshwater resources. It also serves as the drinking water resource for 400 million people, provides 60% of the total fisheries production, has 20% of the total wetland area, and contributes about 45% of the PRC’s economic output. The PRC’s YREB Development Plan, 2016–2030,1 stipulates the prioritization of ecological protection and promotion of green development as the guiding principle for the YREB development. As upstream watersheds, the Xiangjiang River and Dongting Lake play a pivotal role in the water quality of the Yangtze River watershed and in the general maintenance of healthy rivers and waterways. Therefore, the Xiangjiang River watershed is a key water resource in the overall strategic planning for water security in the Yangtze River, and its ecological improvement in turn promotes ecosystem restoration, environmental protection, and water resources management of the YREB and its watersheds. 2. The Xiangjiang River watershed has a total area of about 94,660 square kilometers, with approximately 90% of it located in Hunan and the remaining 10% located in the Guangxi Province. The economic activity and expansion of the human-made surroundings have extensively developed the Xiangjiang River watershed. By 2017, approximately 61% of Hunan’s total population, or about 25.1 million people, lived within the watershed. The total gross domestic product for the Xiangjiang River watershed in 2017 was estimated to be 75% of the overall total gross domestic product of Hunan Province. The rapid economic growth experienced countrywide from the mid-1980s until the present, coupled with inadequate environmental protection, contributes to the deterioration of the environment and the increased pollution in Hunan and the Xiangjiang River watershed. By 2000, the surface water of the Xiangjiang River, which met class III quality or better, was less than 70% along the entire river system.2 Based on the PRC drinking water code, water along most reaches of the Xiangjiang River did not meet the standards to be used as a source for raw water. The pollution in the Xiangjiang River had negative impacts on living standards and the health of residents living around the river. The pollution was recognized by the government as a threat to the long-term sustainable growth of industry along the river, an impediment to the maintenance of overall river health, a material risk to the strategic supplies for downstream drinking water, and an unacceptable visual intrusion on the watershed's well-recognized cultural attraction. 3. The main sectors responsible for the Xiangjiang River watershed’s environmental degradation are industry, agriculture, and domestic (with domestic sources being primarily municipal wastewater and MSW). In the period 2000–2017, the government adopted an integrated approach to pollution control to protect water quality in the Xiangjiang River watershed. In 2011, the Hunan Provincial Government (HPG) initiated a major program of environmental pollution control to target the major pollution sources.3 Subsequent environmental regulations and incremental enforcement in Hunan have reduced the impacts from industrial and agricultural 1 Government of the PRC. 2016. Outline of the Yangtze River Economic Belt Development Plan, 2016–2030. Beijing. 2 Government of the PRC, Ministry of Environmental Protection. 2002. Environmental Quality Standards for Surface Water. Beijing. There are five categories, with Class I being the highest quality of water and class V being the lowest quality. Class III is the minimum that can be used as a bulk source of raw water for production of drinking water. 3 HPG. 2011. Heavy Metal Pollution Management Project Implementation Plan in the Xiangjiang River Basin: 2011– 2015. Changsha. 2 sources, and new wastewater treatment plants have reduced pollution from untreated sewage. However, significant challenges remain regarding MSW. Urbanization has left a legacy of substandard landfill sites that were once in outlying rural areas and are now located close to newly created urban areas. Much of the countryside has been