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INTEGRATED SAFEGUARDS DATA SHEET RESTRUCTURING STAGE Note: This ISDS will be considered effective only upon approval of the project restructuring Report No.: ISDSR15301 Public Disclosure Authorized Date ISDS Prepared/Updated: 05-May-2016 Date ISDS Approved/Disclosed: 16-May-2016 I. BASIC INFORMATION Public Disclosure Copy 1. Basic Project Data Country: China Project ID: P126611 Project Name: Liaoning Coastal Economic Zone Urban Infrastructure and Environmental Management Project (P126611) Task Team Da Zhu Leader(s): Estimated 15-Oct-2012 Estimated 28-Mar-2013 Public Disclosure Authorized Appraisal Date: Board Date: Managing Unit: GSU08 Lending Specific Investment Loan Instrument: Sector: Urban Transport (72%), Wastewater Collection and Transportation (13%), Flood protection (7%), Wastewater Treatment and Disposal (7%) , Sub-national government administration (1%) Theme: City-wide Infrastructure and Service Delivery (100%) Is this project processed under OP 8.50 (Emergency Recovery) or OP 8.00 (Rapid Response to Crises and No Emergencies)? Public Disclosure Authorized Financing (in USD Million) Total Project Cost: 225.72 Total Bank Financing: 150.00 Financing Gap: 0.00 Financing Source Amount Public Disclosure Copy Borrower 75.72 International Bank for Reconstruction and Development 150.00 Total 225.72 Environmental B - Partial Assessment Category: Is this a No Repeater Public Disclosure Authorized project? 2. Current Project Development Objectives The proposed Project Development Objective (PDO) is to improve the efficiency of urban transport Page 1 of 9 and address water scarcity issues in selected cities in Liaoning Province. Proposed New PDO (from Restructuring Paper) The proposed Project Development Objective (PDO) is to improve the efficiency of urban transport and address water scarcity issues in selected cities in Liaoning Province. 3. Project Description The proposed Bank supported project will have three components and seven sub-projects. Component 1: Improving urban transport. This component will invest a total of US$ 182.36 million, Public Disclosure Copy of which US$117.1 million is an IBRD loan, in improving public transport systems and fostering transit oriented development along selected public transport corridors by integrating land use and transport planning. The Project will finance new urban roads and rehabilitation of existing roads, and ensure the engineering designs incorporate traffic management and traffic calming features and include facilities that promote cleaner alternative modes of transport, such as bicycling and walking. The designs were also adapted based on the function and typology of streets within the urban area, such as neighborhood streets, local access roads, major urban thoroughfares, public transport corridors, and roads servicing industrial zones. Furthermore, all road designs include necessary underground urban utilities, traffic signs and management systems, landscaping, street furniture, and other ancillary facilities. In Panjin, the project will acquire buses and improve bus depots to support the overall improvement of public bus transport services provided by the Panjin Public Transport Company. The streets and urban roads were selected based on the following criteria: (i) the quality of the infrastructure and importance of the road as major public transport corridor, and current and future traffic demand, (ii) importance as access to major regional transport systems (high speed rails), and (iii) the demonstration opportunity to design and implement streets that create more livable, safe and sustainable neighborhoods. Both transport agencies and traffic management authorities have participated in the selection, design, and preparation of the project. The technical assistance component will complement the infrastructure investments and provide support to the development of comprehensive traffic management plans for each. In Dongang City, the sub-project investments are focused on the development of new areas that are connected to major regional and urban public transit systems. Designs and land use plans are being adapted to improve access and incentivize the use non-motorized transport and the bus transport Public Disclosure Copy systems. In Kuandian and Lingyuan City, the sub-projects will support the rehabilitation of critical roads and local streets within the urban transport network and improve pedestrian, biking and public transport facilities. Specific investments in these four sub-projects include construction, rehabilitation and possible realignment of roads and streets in urban areas; investment in bus lanes, stations and other related facilities; traffic signs and management equipment; sidewalks and other pedestrian amenities; bicycle lanes, parking and other facilities; landscaping and street furniture; and basic urban service pipelines, including drainage, wastewater, communication and electricity infrastructure. In Panjin City, the sub-project will finance the improvement of the local bus transport system, and investments include the acquisition of new buses, the construction of bus depots, bus maintenance and complementary facilities, and bus operation systems. Page 2 of 9 Component 2: Improving urban wastewater treatment and reclamation. This component will invest a total of US$ 41.71million, of which US$ 31.25 million is an IBRD loan, in wastewater treatment facilities and water reclamation systems, while also separating sewage and drainage networks in selected cities. The main objective is to rationalize the use of scarce water resources, reduce groundwater abstraction, and reduce the pollution loads on surface water resources. Investments include the construction of new and rehabilitation of existing wastewater plants, separation of sewage and drainage networks, and replacement of groundwater supply systems by water reclamation supply systems. Sub-project investments include: (a) Wastewater treatment and reclamation and drainage in Lingyuan City, including the installation of separate stormwater and municipal sewerage collection pipelines, improvement of the Public Disclosure Copy wastewater treatment plants, and construction of reclaimed wastewater distribution system, which will be connected to the Industrial Park in Lingyuan City; Component 3: Technical assistance, training and advisory services. This component is closely linked to the infrastructure investments under components 1 and 2 and will help increase impacts and sustainability of investments, as well as build the capacity of the local staff and officials involved in delivering water and urban transport in participating cities. This component will be fully financed by the IBRD Loan, with an allocation of US$ 1.7 million. During project preparation, the team worked closely with Provincial and local authorities and identified technical assistance needs and topics that are common to the project cities and will help increase long-term impacts of the project. The identified and agreed areas of technical assistance support to be financed by the project, include: (a) Building the capacity of local transport management agencies and support them in preparing or revising urban transport investment and management plans, focusing on promoting public transport, pedestrian, bicycles and overall traffic safety; (b) Developing comprehensive capital investment and asset management plans for local implementing agencies to ensure long-term sustainability of project investments; and, (c) Supporting project management and supervision, including consultancy services and training in: technical supervision, procurement and financial management; contract supervision; environmental management plans, and resettlement action plans. Summary of proposed changes in restructuring: The proposed changes in this restructuring are: (a) to drop two subprojects due to the lack of counterpart financing and changing local priorities; (b) to increase the disbursement ratio of civil Public Disclosure Copy works category to fully cover the existing appraised project costs; (c) to reallocate the funds from two dropped subprojects to the one consolidated works category; (d) as a result of dropping two subprojects, the Borrower➢❨ s contribution and total project cost reduced; (e) to modify the Project Development Objective (PDO) and Results Framework as a result of cancellation of subprojects. The project restructuring will not change the project safeguard category (category B), will not trigger any new safeguard policies, and will not introduce new safeguard instruments. As no new subprojects are being added, there are no changes to the safeguard policies. The implementation of the environmental management plan has been adequate to date. The project is in compliance with resettlement policies and action plan, although implementation has been slow, but shows good signs of improvement over the last six months. 4. Project location and salient physical characteristics relevant to the safeguard analysis (if known) Page 3 of 9 The project will be implemented in five small to medium sized cities located in Liaoning Province, northeast of China. The cities are spread along the coastal zone, but most of them are actually located tens of miles inland on flat terrain with a temperate climate and average precipitation ranging from around 700mm to nearly 1000mm per year. 5. Environmental and Social Safeguards Specialists Chongwu Sun (GEN2A) Shuang Zhou (GSU02) Zhefu Liu (GSU02) Public Disclosure Copy 6. Safeguard Policies Triggered? Explanation (Optional)