Guangxi Baise Integrated Urban Environment Improvement Project

Project Administration Manual

Project Number: 44022 Loan Number: August 2013

People’s Republic of China: Guangxi Baise Integrated Urban Environment Improvement Project

Contents I. PROJECT DESCRIPTION 1 A. Background 1 B. Detailed Description of Components 8 II. IMPLEMENTATION PLANS 1 A. Project Readiness Activities 1 B. Overall Project Implementation Plan 2 III. PROJECT MANAGEMENT ARRANGEMENTS 1 A. Project Implementation Organizations – Roles and Responsibilities 1 B. Key Persons Involved in Implementation 2 C. Project Organization Structure 4 IV. COSTS AND FINANCING 1 A. Overall Investment and Financing Plans 1 B. Detailed Cost Estimates by Expenditure Category 3 C. Allocation and Withdrawal of Loan Proceeds 4 D. Detailed Cost Estimates by Financier 5 E. Detailed Cost Estimates by Outputs/Components 6 F. Detailed Cost Estimates by Year 7 G. Contract and Disbursement S-curve 8 H. Fund Flow Diagram 9 V. FINANCIAL MANAGEMENT 1 A. Financial Management Assessment 1 B. Disbursement 2 C. Accounting 3 D. Auditing 3 VI. PROCUREMENT AND CONSULTING SERVICES 1 A. Advance Contracting and Retroactive Financing 1 B. Procurement of Goods, Works and Consulting Services 1 C. Procurement Plan 2 D. Consultant's Terms of Reference 6 VII. SAFEGUARDS 1 VIII. GENDER AND SOCIAL DIMENSIONS 1 IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 1 A. Project Design and Monitoring Framework 1 B. Monitoring 4 C. Evaluation 6 D. Reporting 6 E. Stakeholder Communication Strategy 7 X. ANTICORRUPTION POLICY 1 XI. ACCOUNTABILITY MECHANISM 1 XII. RECORD OF PAM CHANGES 1

APPENDIXES

1. DRAFT TERMS OF REFERENCE AND BUDGETS FOR CONSULTING SERVICES 2. ENVIRONMENTAL MANAGEMENT PLAN 3. PROJECT PERFORMANCE MANAGEMENT SYSTEM 4. DRAFT TRAINING 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 Government and Asian Development Bank (ADB) policies and procedures. The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM.

The Baise Municipal Government as project executing agency and the Baise Development & Investment Group as project implementing agency are wholly responsible for the implementation of ADB-financed projects, as agreed jointly between the borrower and ADB, and in accordance with Government and ADB’s policies and procedures. ADB staff is responsible for supporting project implementation, including compliance by Baise Municipal Government and Baise Development & Investment Group 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 recommendations 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.

Abbreviations

ADB = Asian Development Bank BDRC = Baise Development and Reform Commission BFB = Baise Municipal Finance Bureau BMG = Baise Municipal Government BPMO = Baise project management office BDIG = Baise Development & Investment Group DMF = design and monitoring framework DNC = Dongsun Neighborhood Committee EIA = environmental impact assessment EIR = environmental impact report EIS = environmental impact statement EMC = environmental monitoring center EMP = environmental management plan EPB = environmental protection bureau GAP = gender action plan GZAR = Guangxi Zhuang Autonomous Region GZARG = Guangxi Zhuang Autonomous Region Government ICB = international competitive bidding IEE = initial environmental examination km = kilometer km2 = square kilometer LIBOR = London interbank offered rate m3 = cubic meter NCB = national competitive bidding O&M = operation and maintenance PAM = project administration manual PIC = project implementation consultant PMO = project management office PPMS = project performance management system PRC = People’s Republic of China QBS = quality based selection QCBS = quality- and cost-based selection REMDP = resettlement and ethnic minority development plan SAP = social action plan SOE = statement of expenditure STI = sexually transmitted infection

I. PROJECT DESCRIPTION

Borrower People’s Republic of China Classification Targeting classification: GI Sector (subsectors): Multisector (urban sector development, urban transport, water supply and sanitation) Themes (subthemes): Social development (human development) Environmental sustainability (urban environmental improvement) Gender mainstreaming: Effective gender mainstreaming Location impact: Urban (high) Environment Assessment Category B. The project initial environmental examination was uploaded to the ADB website on June 2013. Involuntary Resettlement Category A. One resettlement and ethnic minority development plan was prepared for the whole project and was uploaded to the ADB website on June 2013. Indigenous Peoples Category B. The resettlement and ethnic minority development plan defines Assessment the measures for mitigation of negative resettlement impacts on the local minority population in Dongsun area. Loan Closing Date 30 June 2019 Estimated Project Completion Date 31 December 2018 Executing Agency Baise Municipal Government Implementing Agency Baise Development & Investment Group

A. Background

1. After experiencing slow growth for decades, the Guangxi Zhuang Autonomous Region (GZAR) has prospered in recent years under the government’s National Strategy for Development of the West. Annual average growth rates during the Eleventh Five-Year Plan (2006–2010) reached 13.9%. In spite of the global recession, Baise achieved a 14.9% increase in economic output in 2010; and revenues of Baise Municipal Government (BMG) increased by 27.2% during the same period. The recent surge in economic growth is reflected in the horizontal and vertical expansion of the city. The Baise City Master Plan 2010–2030 calls for expansion of the city to the south along the central peninsula bounded by the Youjiang River and to the east in the Dongcheng area. Over the next 20 years, it is planned that the city will grow eastward until it merges with the current settlement of Tian Yang Cheng Qu. Despite this encouraging trend, overall poverty levels in Baise remain high. Gross domestic product per capita in 2011 was only CNY16,106, or 54% of the national average. Nine of Baise’s 12 counties are classified as national poverty counties, while two are designated as regional poverty counties in Guangxi Region.

2. Rationale. Baise is in western GZAR and has an urban population of 260,000. Baise is one of the 14 key national poverty areas in the PRC. Dongsun subdistrict is a peri-urban area 4 kilometers (km) west of Baise’s urban center.1 The Dongsun subdistrict industrial area was developed during 1950–1960, when a number of state-owned enterprises built factories and housing for its workers in the southwest of Baise along the Youjiang River.2 During 1980–1990, these plants’ low production efficiency became increasingly apparent as subsidies to state-

1 Dongsun subdistrict covers 2.8 square kilometers. 2 The industrial area included a coal mine, nitrogen fertilizer factory, motor plant, electrical power plant, and paper mill. For more than 50 years, these industries constituted, along with government administration, much of the urban economy of Baise.

owned enterprises were removed and production costs were brought closer to market norms. Consequently, facilities closed, and others were sold or leased to private enterprises. Today, only the coal mine, fertilizer factory, and motor plant continue to operate in Dongsun.

3. After more than 50 years of state-led industrialization, Dongsun shoulders heavy socioeconomic and environmental burdens. Since 2008, employment has shrunk as factories closed and workers were laid off or took early retirement options. Local residents are highly dissatisfied with inadequate social services and infrastructure.3 First, current flood control capacity in the project area is unable to protect against a flood that occurs once in 50 years, which is the standard requirement. Second, without a wastewater collection system, factories and residential areas discharge untreated wastewater directly into the Dongsun stream, which flows into the Youjiang river and thus pollutes Baise’s main source of drinking water. Third, the existing urban road network in Dongsun is inadequate for planned population growth, the resulting increased activity in residential and commercial areas, and proper links with other subdistricts.4 Fourth, solid waste transportation capacity must urgently be increased to mitigate the environmental pollution currently caused by uncontrolled solid waste dumping. Further, former and current industrial facilities have left Dongsun with localized moderate soil contamination. The detailed environmental site assessment5 undertaken under phase 1 of project preparatory technical assistance (PPTA) described the contamination and appropriate measures to clean it up.6

4. The Baise Municipal Government (BMG) is modernizing its industry and developing three new industrial parks with higher environmental management standards. It decided to close down the remaining industrial operations in Dongsun, relocate some factories to the new industrial parks, and prioritize urban and economic regeneration in Dongsun. The Baise City Urban Master Plan, 2010–2030 has designated Dongsun as a residential district with green and environmentally friendly facilities. In 2011–2012, the BMG contracted Tongji University to prepare the Urban Design Plan and the Control Plan to establish the legal basis for improving Dongsun from 2013 to 2030.7 The plans called for creating a mixed-use community with residential, commercial, tourism, and recreational areas. The population at completion in 2030 is projected to be 34,000.8 The identification of polluted sites and the land-use plan recommended under phase 1 of the PPTA are accurately mapped in the Control Plan prepared by Tongji University. Sensitive land uses, such as for schools and housing, were restricted to uncontaminated land.

3 A detailed social development assessment undertaken by the China Center for Urban Development highlighted the challenge to consolidate and improve fragmented social services in the project area through urban redevelopment. 4 Damaged pavement and poor alignment undermine road safety and push up road maintenance and vehicle operating costs. 5 Y.Y. Gong., L. Jiang, and W. H. Zhang. 2011. Guangxi Baise Integrated Urban Environment Improvement–Baise Industrial Park Redevelopment Demo Project. Manila (final report submitted to ADB to assess the extent and location of contamination at industrial sites, which called for further site investigation and the dismantling of factories and cleaning up of the sites). 6 The PPTA was implemented in two phases. Phase 1 assessed industrial pollution to facilitate project scoping and developed environmental management guidelines for the dismantling and cleaning up of the industrial sites in Dongsun. Phase 2 was conventional PPTA to prepare the proposed project. 7 The ADB-assisted Urban Knowledge Hub at Tongji University was launched in March 2010 and extended to November 2017. Outputs include (i) innovative municipal and environmental infrastructure, especially solid waste and wastewater management; (ii) regional planning, city cluster development, and economic corridors; (iii) climate change adaptation, energy efficiency, and clean development mechanism; (iv) urban expansion and renewal; (v) urban transport; and (vi) local government and municipal infrastructure finance. 8 The population figure is based on functional zoning assumptions about the intensity of development (the ratio of built space to open space), plot coverage and building heights, the total built area, and average occupancy rates.

5. The Asian Development Bank (ADB) will play a vital role in redeveloping Dongsun by financing trunk infrastructure improvements and rehabilitating waterfronts along the Dongsun stream and Youjiang river. With all major arterial roads and associated water and wastewater piped networks financed under the project, the urban infrastructure built through the ADB project will catalyze private investment in residential, commercial, and mixed-used development. The project fits well with recent objectives of the Government of the PRC to balance future urbanization with greater attention to developing small and medium-sized cities. ADB’s current and future operations focus on small and medium-sized cities in the central and western PRC.

6. The project will support private sector participation by creating additional demand for privatized wastewater treatment services. The existing build-operate-transfer wastewater treatment plant in Baise will soon enter the second phase of capital investment. The 12,000 new customers in Dongsun that the project will connect to the wastewater treatment plant will enhance the commercial viability of that investment.9

7. The project is envisaged playing a demonstration role for other cities on how to regenerate strategically located urban land now burdened with outdated and uneconomic industries. Many similar industrial areas developed under the state-run enterprise industrial model during 1950–1960 still exist in cities across the PRC. These areas are characterized by production inefficiency, environmental degradation, unhealthy living conditions, and inadequate urban infrastructure. The multisector integrated approach to urban redevelopment adopted by the project can be adopted by other local governments to transform environmentally degraded neighborhoods into livable mixed-use residential areas.

8. Fit with ADB strategy. The project supports environmentally sustainable and inclusive economic growth, which is a priority of ADB’s Strategy 2020.10 It aligns with ADB’s PRC country partnership strategy, 2011–2015, which supports the government’s strategic goal of building an economically developed society by helping to foster inclusive growth and promoting environmental sustainability.11 The project will remove infrastructure constraints, address environmental concerns, promote sustainable economic growth, and support community development in Dongsun and more broadly in Baise. It conforms with ADB’s Urban Operational Plan, which fosters competitive, green, and inclusive cities,12 and is consistent with the PRC’s Twelfth Five-Year Plan, 2011–2015, which promotes environment-friendly and resource-efficient urban development and supports the development of the western region. At the local level, the project is consistent with Baise’s National Economic and Social Development Twelfth Five-Year Plan, 2011–2015, which emphasizes economic restructuring and urban development and upgrading.

9. Continuity of development initiatives and incorporated lessons from GZAR. Project design incorporates lessons from previous ADB-financed urban development projects in Guangxi and the PRC, as well as relevant ADB evaluation reports.13 In particular, the project will support capacity development with a special focus on improving awareness of ADB policy and

9 Currently, there is no wastewater collection system in Dongsun. The project will construct a wastewater collection trunk line to take wastewater to the existing build-operate-transfer wastewater treatment plant in Baise and this will sustain water quality in the local river at Class III, in the PRC water quality standards (Class I to V , Class III is the minimum water quality required for municipal water supply). 10 ADB. 2008. Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank, 2008–2020. Manila. 11 ADB. 2012. Country Partnership Strategy: People’s Republic of China, 2011–2015. Manila. 12 ADB. 2012. Urban Operational Plan. Manila. 13 ADB. 2010. Special Evaluation Study on Post-Completion Monitoring and Sustainability. Manila.

procedural requirements to facilitate a smooth start to implementation and compliance with safeguards requirements, and on strengthening the long-term sustainability of facilities built under the project. Further, the project will build institutional capacity in the agencies involved in project implementation and enable future operation and maintenance (O&M) units.

10. Innovative features. The special features of the proposed project include (i) linkage between ADB’s knowledge work and sovereign operations as the ADB-supported Tongji University Knowledge Hub was engaged by the BMG to prepare the Urban Design Plan and the Control Plan, (ii) a focus on redeveloping one geographical area of a city with a broad range of infrastructure and environmental interventions, and (iii) community upgrading and development to enhance social impacts. Basic social infrastructure will be provided to meet the needs of local residents. At the same time, building the capacity of an existing rural community group and of the BMG will enable effective interaction between local residents and municipal authorities during resettlement, housing delivery, and economic development. This feature will include (i) investment in social infrastructure such as a community center, farmer’s market, and waste transfer station; (ii) community development to strengthen the ability of the Dongsun Subdistrict Neighborhood Committee to represent the existing population, a mix of rural residents and state workers, while dealing with the BMG during redevelopment on issues related to resettlement housing delivery, local economic development planning, and workforce training; and (iii) policy and regulatory development to help the BMG develop processes and institutional mechanisms that integrate public participation into community development planning.

6. Tariff reforms and private sector participation. ADB has supported the water tariff reform process through two water tariff TA projects14 with the Ministry of Construction (now Minsitry of Housing and Urban Rural Development) under which the market-oriented National Guidelines on Water Tariffs were developed, promulgated, and implemented. Further, ADB assistend in preparing wastewater tariff guidelines15 and calculation methodologies including full cost recovery taking into consideration affordability and social constraints. The successful ADB national policy dialogue through the above national guidelines has impacted water and wastewater tariff levels in Baise City and contributed to establishing an enabling environment for private sector participation.16 The relatively high wastewater tariff levels have attracted private sector investment, namely, the Baise wastewater company, which is operating on BOT basis. Currently, the Dongsun subdistrict project area has no wastewater collection system. Under the project, over 80% of the wastewater in the project area will be collected and brought to the Baise wastewater company for treatment, further contributing to its capacity utilization and revenue base.

12. Impact and outcome. The project impact will be the development of Dongsun subdistrict of Baise into an environment-friendly, inclusive, and livable urban area. The project outcome will be improved urban infrastructure and services in Dongsun.

13. Outputs. The Dongsun Urban Design Plan and the Control Plan emphasize the integrated construction of urban infrastructure. Accordingly, the project includes integrated components or outputs in the form of urban infrastructure and associated “soft-side” interventions. The design of each component supports the overarching objectives of improving

14 ADB. 1997. Technical Assistance to the People’s Republic of China for the Water Tariff Study. Manila; and ABD. 1999. Technical Assistance to the People’s Republic of China for the Water Tariff Study II. Manila. 15 ADB. 2001. Technical Assistance to the People’s Republic of China for National Guidelines on the Urban Wastewater Tariffs and Management Study. Manila. 16 BMG has significantly raised its water and wastewater tariffs, which are currently CNY1.85/cubic meter, and CNY0.9/cubic meter, respectively.

the environment in Dongsun and enabling the development of a safe, inclusive, and livable residential community. The project has four outputs, which are summarized below and further detailed in the project administration manual (PAM).17

(i) Urban river rehabilitation and flood control. The provision of 4.2 km of new embankment along the left bank of the Youjiang River will protect Dongsun from once-in-50-years flooding, and the improvement of 4.0 km of the Dongsun stream will protect Dongsun from once-in-20-year flooding and improve its flow capacity to protect against urban waterlogging. (ii) Urban transport and associated infrastructure. The construction of 11.3 km of roads, including four bridges across the Dongsun stream, 10.2 km of integrated roadside water supply pipeline, 9.85 km of storm water pipeline, and 7.95 km of wastewater collection pipelines, and of two bus terminals, will improve Dongsun’s urban infrastructure. (iii) Community upgrading and development. Integrated community development planning will include (a) the construction of a 850 square meter (m2) community service center, a 3,000 m2 market for agricultural trade, and a solid waste transfer station with a handling capacity of 50 tons/day; (b) the strengthening of the Dongsun Neighborhood Committee;18 and (c) policy and regulatory development. (iv) Capacity building and project management. Institutional development and capacity building in integrated urban development,19 ecological restoration, community development, the dismantling of obsolete industrial facilities, the assessment and remediation of contaminated sites, and project management will contribute to the effective implementation of the project and the sustainable O&M of project facilities.

14. Specific subcomponents have been selected accordingly (see Table 1 below).

17 Project Administration Manual (accessible from the list of linked documents in Appendix 2). 18 Activities in this component will ensure community representation in further urban and economic development planning regarding issues such as the location and provision of basic services, access to training and employment opportunities, and community maintenance. 19 An integrated feature is the laying of water supply pipelines and wastewater collection trunk lines along urban road alignments.

Table 1: Components and Subcomponents Component Subcomponent Urban River Rehabilitation Youjiang River embankment improvement and Flood Control Dongsun Stream dredging and embankment improvement Urban Transport and Arterial roads and associated water/wastewater pipelines and greening Associated Infrastructure Collector roads and associated water/wastewater pipelines and greening Local roads and associated water/wastewater pipelines and greening Bridges over Dongsun Stream Bus terminals Component Subcomponent Community Upgrading and Capital investment in social infrastructure: community center, market, solid Development waste transfer facilities Capacity building for community-based organization(s) and local government departments Policy and regulatory development for resettlement planning and economic development planning Capacity Building and Capacity building in integrated environmental mitigation, community Project Management development, and financial management Project management support Source: Asian Development Bank estimates.

15. A detailed description of the subcomponents, outputs, and project works is contained in Section B of this manual and the design and monitoring framework for the project is in Section IX of this manual. The capacity building activities and associated policy reforms will ensure effective implementation of the project and sustainable O&M of the project facilities.

16. Project investment plan. The project is estimated to cost $169.50 million, including contingencies ($25.27 million), financing charges ($4.11 million), and taxes and duties ($6.66 million).

17. Financing plan. The government has requested a loan of $80 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 5 years; an annual interest rate determined at USD 5-year fixed swap rate; a commitment charge of 0.15% per year; a maturity premium in accordance with the maturity-based loan pricing; and such other terms and conditions set forth in the draft loan and project agreements. The municipal financial department and the project management office (PMO) have agreed to choose the annuity repayment method at 10% annual discount rate. Based on the above loan terms and this repayment method, the average loan maturity is 18.32 years and the maturity premium payable to ADB is 0.20% per annum. ADB’s Controller’s Department will provide the final confirmation and issue the amortization schedule at loan negotiations. The loan will cover civil works, equipment, project management consulting services, and capacity building. The government will finance the remaining amount of $89.50 million of project cost including contingencies. The government has provided ADB with (i) the reasons for its decision to borrow under ADB’s LIBOR-based lending facility based on these terms and conditions, and (ii) an undertaking that these choices were its own independent decision and not made in reliance on any communication or advice from ADB.

18. Relending arrangements. The PRC is the borrower of the loan. The PRC will relend the entire loan to the GZAR Government , which will onlend the loan proceeds available to BMG

on the same terms and conditions as those for the ADB loan. BMG will assume, as end- borrower, the foreign exchange and interest rate variation risks for the ADB loan. The indicative flow of funds and relending arrangements are in Section IV of this manual.

19. Implementation arrangements. BMG will assume the role of project executing agency and all project components are located within the jurisdiction of BMG. A project leading group was established by BMG in 2008 and was assigned the role of overseeing the preparation and implementation of the project. A municipal PMO (Baise PMO [BPMO]), reporting to the project leading group, has been set up within the Basie Development and Reform Commission to manage project preparations and implementation. BMG has assigned the Baise Development & Investment Group (BDIG) to undertake the role of implementing agency for the project. The implementation arrangements are described in fuller detail in Section III of this manual. Both BPMO and BDIG have previous experience in implementing ADB-financed projects.

20. Procurement. All procurement to be financed under the loan will be carried out in accordance with ADB’s Procurement Guidelines (2010, as amended from time to time). Contract packages for the components have been formulated in consultation with the government, and procurement capacity assessments of BPMO and BDIG have been undertaken. Measures to address the gaps and/or weakness identified in these assessments have been incorporated into the risk management and/or capacity building plans as appropriate. Civil works contracts valued over $10 million, and contracts for goods and related services valued above $1.0 million, shall follow ADB procedures for international competitive bidding. Civil works contracts valued at $10 million or less, and contracts for goods and related services valued at $1.0 million or less, will be procured following national competitive bidding procedures acceptable to ADB;20 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. Prior review will apply for all international competitive bidding contracts and the first national competitive bidding contract for both civil works and for goods. Post review will apply for all other procurement, except for consulting services (see below).

21. Consulting services. The project includes provision for funding 16 person-months of international and 88 person-months of national consulting services to support BMG, BPMO, BDIG, operation and maintenance units in project implementation, operational management and institutional capacity building, and in community development. The consulting package is to be provided through a consultancy firm which will be selected using the quality- and cost-based selection in accordance with the Guidelines on the Use of Consultants (2010, as amended from time to time).

22. Project benefits and beneficiaries. The project will eventually benefit about 34,000 people in the Dongsun area, which is the projected future population. The indirect beneficiary population includes the other residents of Baise’s urban district (not living in Dongsun) that will benefit from the open space and leisure facilities developed in Dongsun area; assuming that at least one-quarter of that population will visit Dongsun periodically, the number of indirect beneficiaries is conservatively estimated at 75,000. The project will improve transport, environmental, and social infrastructure in Dongsun through river rehabilitation and flood control works, construction of roads and associated piped infrastructure, and provision of social infrastructure, including a market and community center. Net environmental benefits will also be

20 ADB will require BMG and BDIG to use ADB-approved standard bidding documents (to be developed as necessary) to ensure high quality and consistency of the documents; this will facilitate ADB review.

gained from broad improvements in the urban environment of the area including improvements in solid waste management, reduced flooding risk, and improved public transport.

23. Risks and assumptions. The project has no unusual technical risks and conventional engineering designs with proven reliability and performance will be adopted for all the infrastructure components. Mitigating measures will be put into place to address any risks identified during the detailed design of physical improvement works. During implementation, a project implementation consultant will support BPMO and the project management teams to ensure that (i) equipment and works comply with the design and quality assurance requirements; (ii) there is compliance with ADB procurement requirements; and (iii) monitoring arrangements for construction activities as well as for environmental, resettlement, and social impacts will be established.

24. The following risks could affect timely implementation and realization of project outputs and benefits: (i) lack of project coordination or synchronization between agencies; (ii) delays in land acquisition approvals and implementation; (iii) failure to enforce anticorruption measures; (iv) low procurement capacity and inexperience with ADB procurement procedures; (v) local rural population may not receive a share of future benefits commensurate with their contribution to the project.

25. Risks (i) and (iii) will be mitigated through covenanted assurances from BMG. Risk (ii) will be mitigated by expeditious implementation of the detailed measurement surveys, early availability of affected person compensation funding, and strict operational compliance with the resettlement and ethnic minority development plan. Risks (iv) and (v) will be mitigated through capacity building to the designated project agencies as included for in the project design.

B. Detailed Description of Components

26. The project has three physical components with a total of 10 technical subcomponents and one capacity building component. The project is structured as set out in Table 2.

27. Institutional capacity development is also being provided for (i) training to strengthen the capacity of agencies that will implement, operate, and maintain the components; (ii) strengthening of financial and project management; (iii) environmental management, including clean-up of land contaminated by industrial use; and (iv) developing the capacity of local communities to participate effectively in the design and implementation of area improvement programs.

Table 2: Project Structure and Description Component Subcomponent Description Urban River Rehabilitation Youjiang River • Construction of 4.2 km of dike construction and Flood Control embankment along the left side (Dongsun) of Youjiang improvement River, with the design standard for flood of once every 50 years • 4.2 km of emergency passage way for flood control • Greening and landscaping of 108,607 m2 along the river Dongsun Stream • Dredging of the 3.97 km long Dongsun dredging and Stream embankment • Embankment on both sides with a total improvement length of 7.93 km and a design standard for flood of once every 20 years • 2 landscape water gates • Greening and landscaping of 46,800 m2 along the stream • Construction of a 15,000 m3 sediment drying facility Urban transport and Arterial roads and • Dongsun Road (6 lanes), length 2,596 m, associated infrastructure associated width 40 m water/wastewater/ • Guihua II Road (4 lanes) length 1,969 m, stormwater pipelines width 28 m and greening Collector roads and • Guihua III Road (4 lanes) length 2,783 m, associated width 24 m water/wastewater/ • Guihua IV Road (4 lanes) length 988 m, stormwater pipelines width 24 m and greening • Guihua VII Road (4 lanes) length 1,035 m, width 24 m Local roads and • Guihua XVII Road (2 lanes) length 203 m, associated width 16 m water/wastewater/ • Guihua XVIII Road (2 lanes) length 143 m, stormwater pipelines width 16 m and greening • Guihua XIX Road (2 lanes) length 216 m, width 16 m • Guihua XX Road (2 lanes) length 245 m, width 16 m Bridges over Dongsun • Dongsun Road Bridge, a 25 m span, 40 m Stream wide, simple beam slab bridge (to replace and upgrade the existing bridge) • Guihua II Road Bridge, a 20 m span, 28 m wide, simple beam slab bridge (newly built) • Guihua XX Road Bridge, a 20 m span, 16 m wide, simple beam slab bridge (newly built) • Linyin Road Bridge, a 20 m + 50 m + 20 m span, 24 m wide, simple beam plus girder arch bridge (newly built) Bus terminals Two bus terminals, 1,500 m2 each

Component Subcomponent Description Community Upgrading and Capital investment in • The community center, with a construction Development social infrastructure: area of 850 m2 community center, • A farmer’s market with a total construction market, solid waste area of 3,000 m2, to provide 30 store-fronts transfer facilities and 60 stalls • A solid waste transfer station to the north of the intersection of Dongsun road and Guihua third road, with a processing capacity of 50.4 t/d and a design life of 20 years Capacity building for Strengthening of the existing Dongsun community-based Neighborhood Committee to be Dongsun’s organization(s) and community-based organization. local government departments Policy and regulatory Support BMG in developing processes and development for institutional mechanisms for integrated resettlement planning community development planning and public and economic participation, including (i) building capacity and development planning institutional mechanisms in the municipal government for public consultation; and (ii) developing the policy and regulatory framework for key aspects of area improvement, such as resettlement and economic development planning. Capacity Building and Project Capacity building for Technical assistance, training, and study tours Management the executing agency, to develop local government capacity in implementing agency, environmental management, community and operation and development, and financial management. maintenance units Project management Consultant services and other support to support BPMO in procurement, financial management, scheduling, reporting and other functions critical to ADB-compliant project management. Office equipment, surveys, study on rural-urban integrated development, and environmental and resettlement monitoring. Support to Dongsun Neighborhood Committee. ADB = Asian Development Bank, BMG = Baise Municipal Government, BPMO = Baise project management office, km = kilometer, m = meter, m2 = square meter, m3 = cubic meter, t/d = ton per day.

II. IMPLEMENTATION PLANS

28. Implementation plans have been prepared and agreed that cover (i) project readiness activities need to ensure that the loan becomes effective in a timely manner, and (ii) an overall implementation plan. These plans are set out below. The overall plan will need to be adjusted at the time of loan effectiveness and then should be reviewed and updated on an annual basis during the project implementation period.

A. Project Readiness Activities

Indicative 2012 2013 2014 Responsible Activities Agency(s) 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 Establish project BMG, BPMO, implementation BDIG arrangements Feasibility study BDRC report approval Recruitment of tendering BPMO company Advance BPMO, TC, contracting BDIG Prepare/submit BPMO, BFB, FCUP and PFER BDRC Management ADB Review Meeting Approval of NDRC, MOF FCUP and PFER Loan ADB, MOF, negotiations BMG ADB Board ADB approval Signing of loan ADB, MOF, and relending GZARFB, BFB Government legal opinion MOF, MOFA provided Loan ADB, MOF effectiveness ADB = Asian Development Bank, BDIG = Baise Development and Investment Group, BDRC = Baise Development and Reform Commission, BFB = Baise Finance Bureau, BPMO = Baise project management office, FCUP = foreign capital utilization plan, GZARFB = Guangxi Zhuang Autonomous Region Finance Bureau, MOF = Ministry of Finance, MOFA = Ministry of Foreign Affairs, NDRC = National Development and Reform Commission, PFER = project financing evaluation report, TC = tendering company.

B. Overall Project Implementation Plan Task Start Finish Period 2013 2014 2015 2016 2017 2018 Date Date (Months) 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Urban river rehabilitation and flood control Land acquisition and resettlement 9/2013 12/2014 16 Design and tender documentation 1/2014 6/2014 6 Tendering 7/2014 03/2015 10 River rehabilitation civil works 4/2015 3/2016 15 Stream improvement civil works 4/2015 6/2016 15 Urban transport and associated infrastructure Land acquisition and resettlement 9/2013 6/2015 22 Design and tender documentation 4/2014 6/2016 12 Tendering 1/2015 6/2016 6 Primary and secondary road construction civil works 10/2015 9/2017 24 Associated networks construction civil works 10/2014 6/2018 21 Bridge construction civil works 4/2015 9/2017 18 Construction of bus terminals 7/2015 12/2015 6

Community upgrading and development Land acquisition and resettlement 9/2013 12/2014 16 Design and tender documentation 3/2014 2/2015 12 Tendering 2/2015 1/2016 12 Social infrastructure construction 1/2016 6/2018 18

Capacity building and project 3/2014 10/2018 56 management

III. PROJECT MANAGEMENT ARRANGEMENTS

A. Project Implementation Organizations – Roles and Responsibilities

29. Project implementation involves multiple government agencies at the autonomous region, city, and district level, as well as state-owned enterprises and other public institutions that will develop, operate, and/or maintain project facilities. Asian Development Bank (ADB) will be responsible for administering ADB-financed components of the project.

Project Implementation Management Roles and Responsibilities Organizations 1. Project Execution The executing agency will be BMG

BMG has established the BPLG, led by the Standing Vice-Mayor of BMG and including high level officials from BFB, BDRC, and Youjiang District Government, and other relevant departments. The PLG will: Baise Project Leading Group (PLG) • provide overall project direction and any required policy guidance, and • facilitate interagency coordination and resolve any major problems affecting project implementation at the autonomous region level. 2. Project Coordination and

Supervision BPMO, comprising staff from BDRC, BFB, Baise Housing and Construction Bureau, and BDIG will: • oversee, coordinate, and support the preparation and implementation of the project across the different agencies Baise Project Management Office involved; (BPMO) • implement the capacity development component; • liaise with ADB, BMG, and Guangxi Zhuang Autonomous Region Government (GZARG) agencies on matters related to the project; and • supervise project procurement. • GZARFB will be responsible for operation of the imprest account, submission of the withdrawal applications, retention Guangxi Zhuang Autonomous of supporting documents, and financial reporting requirements, Region Finance Bureau (GZARFB) including, the annual audit report and financial statements. • GZARFB will also be responsible for any required liaison with the Ministry of Finance. 3. Project Implementation BMG has assigned BDIG to be the implementing agency for all physical components within the project. BDIG will: • plan, manage, and oversee the implementation of all area redevelopment activities, including resettlement, land management, infrastructure investment, and construction of Implementing Agency: facilities; Baise Development and Investment • procure works and goods related to the physical components Group (BDIG) of the project, including contracting construction companies and equipment suppliers; and • assume ownership of all project assets once completed. To carry out the above functions, BDIG has set up the “Baise Integrated Urban Environment Improvement Project Construction Headquarters (BPCH)” within the company.

Project Implementation Management Roles and Responsibilities Organizations 4. Project Operation and

Maintenance • BMG has assigned relevant agencies or state-owned enterprises to be responsible for the future operation and maintenance of the project facilities once the construction has Operation and maintenance units been successfully completed. • The specific operation and maintenance units assigned to manage each individual component are set out in the table below. BFB = Baise Finance Bureau, BDRC = Baise Development and Reform Commission BHCB = Baise Housing and Construction Bureau, BDIG = Baise Development and Investment Group BMG = Baise Municipal Government, BPLG = Baise project leading group.

Proposed Project Operation and Maintenance Arrangements Operation and Type of Component Subcomponent Maintenance Unit Unit Urban River Youjiang River embankment improvement BWCB PI Rehabilitation Dongsun Stream dredging and embankment BWCB PI and Flood improvement Control Arterial roads and associated water/wastewater BMAB PI pipelines and greening Collector roads and associated water/wastewater BMAB PI Urban transport pipelines and greening and associated Local roads and associated water/wastewater BMAB PI infrastructure pipelines and greening Bridges over Dongsun Stream BMAB PI Bus terminals BMAB PI Community Community center BDIG, DNC SOE, PI Upgrading and Market BDIG, DNC SOE, PI Development Solid waste transfer facilities BMAB PI BDIG = Baise Development and Investment Group, BMAB = Baise Municipal Administration Bureau, BWCB = Baise Water Conservancy Bureau, DNC = Dongsun Neighborhood Committee, PI = public institution, SOE = state-owned enterprise.

B. Key Persons Involved in Implementation

Executing Agency BMG Officer's Name: Mr. Liu Bei Position: Director General, Baise Project Management Office, Telephone: (86) 0776 285 1333 Email address: [email protected] Office Address: Baise Development and Reform Commission, No. 2 Donghe Road, Baise City, Guangxi Autonomous Region, PRC Implementing Agency BDIG Officer's Name: Mr. Zhou Mingxiang Position: Chairman of the Board, President Telephone: (86) 0776 282 5366

Email address: [email protected] Office Address: 2 Floor, Biase Banking Regulatory Commission Building. Chengdong Road, Baise City, Guangxi Autonomous Region, PRC ADB EASS Staff Name: Mr. Diwesh Sharan Division Director Position: Director, EASS Telephone No.: (632) 632 6730 Email address: [email protected] Mission Leader Staff Name: Mr. Sangay Penjor Position: Lead Urban Development Specialist, EASS Telephone No.: (632) 632 6148 Email address: [email protected] Team Members Staff Name: Ms. Mira Davidovski Position: Senior Counsel, OGC Telephone No.: (632) 632 5372 Email address: [email protected] Staff Name: Ms. Madhumita Gupta Position: Principal Safeguards Specialist(Resettlement), EASS Telephone No.: (632) 632 5164 Email address: [email protected] Staff Name: Mr. Antoine Morel Position: Environment Specialist, EASS Telephone No.: (632) 683 1964 Email address: [email protected] Staff Name: Ms. Wendy Walker Position: Senior Social Development Specialist, EASS Telephone No.: (632) 632 5955 Email address: [email protected] Staff Name: Ms. Lili Zou Position: Senior Financial Management Specialist, EAOD Telephone No.: (632) 632 4989 Email address: [email protected]

C. Project Organization Structure

BDIG = Baise Development & Investment Group, DRC = Development and Reform Commission, EA = executing agency, EPB = Environment Protection Bureau, FB = Finance Bureau, IA = implementing agency, PLG = project leading group, PMO = project management office, SASAC = State-owned Assets Supervision and Administration Commission.

Organizational Chart of Baise Project Management Office

Baise PLG

Director (1) Deputy Director (1)

Comprehensive Unit Finance Unit Infrastructure Unit (2, 1 full time and 1 (2, 1 full time and 1 (4, part time) part time) part time) Project Management Daily Management Financial and Coordination Management Construction Management Procurement, Land Accounting Acquisition, Social Supervision Impacts, EMP

EMP = environmental management plan, PLG = project leading group.

Organizational Chart of Baise Development & Investment Group

Organizational Chart of Baise Development & Investment Group Project Construction Headquarters

Baise PLG Guangxi

Baise PMO BDIG

Project Construction Headquarters Other Departments Governor

Fund Investment Project Application & Construction Raising Planning Procurement Team Management Team (5) Team (5) (3) Team (6)

BDIG = Baise Development & Investment Group, PLG = project leadership group, PMO = project management office.

IV. COSTS AND FINANCING

30. This section describes the project costs, categories, and components to be financed by the Asian Development Bank (ADB) and the government. Loan proceeds will be disbursed according to ADB’s Loan Disbursement Handbook (2012, as amended from time to time), and subject to the provisions of the Loan Agreement.

A. Investment and Financing Plans

31. The project is estimated to cost $169.50 million, including contingencies ($25.27 million), financing charges ($4.11 million), and taxes and duties ($6.66 million). The investment plan is summarized in Table 1 below.

Table 1: Project Investment Plan ($ million) Item Amounta A. Investment Costb Urban river rehabilitation and flood control 44.85 Urban transport and associated infrastructure 91.21 Community upgrading and development 2.41 Capacity building and project management 1.65 Subtotal (A) 140.12 B. Contingenciesc Physical 14.01 Price 11.26 Subtotal (B) 25.27 Financing Charges During Implementationd 4.11 Subtotal (C) 4.11 Total Project Cost (A+B+C) 169.50 Note: Numbers may not sum precisely because of rounding. a Includes taxes and duties of about $6.66 million to be financed from government and ADB loan resources. The principles followed in determining the amount of taxes and duties to be financed by ADB are (i) the amount is within reasonable country thresholds; (ii) the amount represents 4.75% of base cost, not an excessive share of the project investment plan; (iii) taxes and duties apply only to ADB-financed expenditures, and (iv) financing of the taxes and duties is relevant to the success of the project. b In March 2013 prices. c Physical contingencies computed at 10% of base costs. Price contingencies computed at an average of 1.9% for foreign currency costs and an average of 3.1% on local currency costs, including provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. d Includes interest and commitment charges. Interest during implementation for the ADB loan has been computed at 5-year USD fixed swap rate plus a spread of 0.40% and maturity premium of 0.20%. Commitment charges for the ADB loan are 0.15% per year to be charged on the undisbursed loan amount. Source: Asian Development Bank estimates.

32. The government has requested a loan of $80 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 5 years,21 an annual interest rate determined in accordance with ADB's London interbank offered rate (LIBOR)-based lending facility, a commitment charge of 0.15% per year (the interest and other charges during construction to be capitalized during the loan), and such other terms and conditions set forth in the draft loan and project agreements. The loan will cover civil works, equipment, project management consulting services, capacity building, and financing

21 Annuity method with 10% discount factor. Based on this, the average loan maturity is 18.31 years and the maturity premium payable to ADB is 0.20% per annum.

charges during implementation. The Baise Development and Investment Group (BDIG), BMG, and PRC 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, including post-project recurrent funding. The project financing plan is summarized in Table 2 and detailed in the PAM (footnote 16).

Table 2: Financing Plan Amount Share of Total Source ($ million) (%) Asian Development Bank 80.00 47.00 Baise Municipal Government 89.50 53.00 Total 169.50 100.00 Source: Asian Development Bank estimates.

33. The PRC is the borrower of the loan. The PRC will relend the entire loan to the Guangxi Zhuang Autonomous Region Government (GZARG), which will onlend the loan proceeds available to BMG, and on the same terms and conditions as those for the ADB loan. BMG will assume, as end-borrower, the foreign exchange and interest rate variation risks for the ADB loan. The indicative flow of funds and relending arrangements are documented in the project administration manual.

B. Detailed Cost Estimates by Expenditure Category

CNY Million $ Million % of % of Item Foreign Local Total Foreign Local Total Base Total Exchange Currency Cost Exchange Currency Cost a Cost Cost A. Investment Cost b 1. Civil Works 171.80 400.87 572.68 27.53 64.24 91.77 65.50% 54.14% 2. Equipment 7.88 0.00 7.88 1.26 0.00 1.26 0.90% 0.74% 3. Land Acquisition and Resettlement 0.00 232.95 232.95 0.00 37.33 37.33 26.64% 22.02% 4. Social and Environmental Monitoring Costs 0.00 1.18 1.18 0.00 0.19 0.19 0.13% 0.11% 5. Survey, Design and Supervision 0.00 49.39 49.39 0.00 7.91 7.91 5.65% 4.67% 6.Capacity Building and Project Management a. Project Management 6.55 0.00 6.55 1.05 0.00 1.05 0.75% 0.62% b. Capacity Development 3.74 0.00 3.74 0.60 0.00 0.60 0.43% 0.35% Subtotal (A) 189.97 684.39 874.37 30.44 109.68 140.12 100.00% 82.67% Total Base Cost 189.97 684.39 874.37 30.44 109.68 140.12 100.00% 82.67% B. Contingencies c 1. Physical 19.00 68.44 87.44 3.04 10.97 14.012 10.00% 8.27% 2. Price 8.24 62.00 70.24 1.32 9.94 11.256 8.03% 6.64% Subtotal (B) 27.23 130.44 157.67 4.36 20.90 25.268 18.03% 14.91% C. Financing Charges During Implementation d 1. Interest 24.29 0.00 24.29 3.89 0.00 3.89 2.78% 2.30% 2. Commitment charges 1.37 0.00 1.37 0.22 0.00 0.22 0.16% 0.13% Subtotal (C) 25.66 0.00 25.66 4.11 0.00 4.11 2.93% 2.43% Total Project Cost (A+B+C) 242.87 814.83 1,057.70 38.92 130.58 169.50 120.97% 100.00% Note: Numbers may not sum precisely because of rounding. a Includes taxes and duties of about $6.66 million to be financed by the government and Asian Development Bank (ADB) loan resources. The following principles were followed in determining the amount of taxes and duties to be financed by ADB: (i) the amount does not represent an excessive share of the project investment plan, (ii) the taxes and duties apply only to ADB-financed expenditures, and (iii) the financing of the taxes and duties is material and relevant to the success of the project. b In March 2013 prices. c Physical contingencies computed at 10% of base costs. Price contingencies computed at an average of 1.9% for foreign currency costs and an average of 3.1% on local currency costs, including provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. d Includes interest and commitment charges. Interest during implementation for the ADB loan has been computed at USD 5-year fixed swap rate plus a spread of 0.40% and maturity premium of 0.20%. Commitment charges for the ADB loan are 0.15% per year to be charged on the undisbursed loan amount. Source: Asian Development Bank estimates.

C. Allocation and Withdrawal of Loan Proceeds

ALLOCATION AND WITHDRAWAL OF LOAN PROCEEDS Guangxi Baise Integrated Urban Environment Improvement Project Amount Allocated Percentage and Number Item ($) Basis for Withdrawal Category Subcategory from the Loan Account 1 Works 72,975,360 80% of total expenditure claimed 2 Equipment** 1,262,157 100% of total expenditure claimed 3 Capacity building and

project management 1,650,000 100% of total expenditure claimed 4 Financing charges during

implementation 4,112,483 100% of total amount due Total 80,000,000 * Including taxes and duties ** Including insurance and transportation costs

D. Detailed Cost Estimates by Financier

$ Million ADB BMG No. Item Total % of Cost % of Cost a Amount Amount Cost Category Category A. Investment Cost b 1. Civil Works 72.98 79.52 18.80 20.48 91.77 2. Equipment 1.26 100.00 0.00 0.00 1.26 3. Land Acquisition and Resettlement 0.00 0.00 37.33 100.00 37.33 4. Social and Environmental Monitoring Costs 0.00 0.00 0.19 100.00 0.19 5. Survey, Design and Supervision 0.00 0.00 7.91 100.00 7.91 6.Capacity Building and Project Management a. Project Management 1.05 100.00 0.00 0.00 1.05 b. Capacity Development 0.60 100.00 0.00 0.00 0.60 Sub-total (A) 75.89 54.16 64.24 45.84 140.12 B. Contingencies c 1. Physical 0.00 0.00 14.01 100.00 14.01 2. Price 0.00 0.00 11.26 100.00 11.26 Sub-total (B) 0.00 0.00 25.27 100.00 25.27 C. Financing Charges During Implementation d 1. Interest during construction 3.89 100.00 0.00 0.00 3.89 2. Commitment charges 0.22 100.00 0.00 0.00 0.22 Sub-total (C) 4.11 100.00 0.00 0.00 4.11 Total Project Cost (A+B+C) 80.00 47.20 89.50 52.80 169.50 % of Total Project Cost 47.20% 52.80% ADB = Asian Development Bank, BMG = Baise Municipal Government. Note: Numbers may not sum precisely because of rounding. a Includes taxes and duties of about $6.66 million to be financed from government and ADB loan resources. The principles followed in determining the amount of taxes and duties to be financed by ADB are (i) the amount is within reasonable country thresholds; (ii) the amount represents 4.75% of base cost, not an excessive share of the project investment plan; (iii) taxes and duties apply only to ADB-financed expenditures, and (iv) financing of the taxes and duties is relevant to the success of the project. b In March 2013 prices. c Physical contingencies computed at 10% of base costs. Price contingencies computed at an average of 1.9% for foreign currency costs and an average of 3.1% on local currency costs, including provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. d Includes interest and commitment charges. Interest during implementation for the ADB loan has been computed at USD 5-year fixed swap rate plus a spread of 0.40% and maturity premium of 0.20%. Commitment charges for the ADB loan are 0.15% per year to be charged on the undisbursed loan amount. Source: Asian Development Bank estimates.

E. Detailed Cost Estimates by Outputs/Components

$ Million Urban River Urban Transport Community Capacity Building Rehabilitation and and Associated Upgrading and and Project No. Item Total Flood Control Infrastructure Development Management Cost % of % of % of % of Amount Cost Amount Cost Amount Cost Amount Cost Category Category Category Category A. Investment Cost 1. Civil Works 91.77 36.03 39.26% 54.94 59.87% 0.80 0.88% 0.00 0.00% 2. Equipment 1.26 0.00 0.00% 0.00 0.00% 1.26 100.00% 0.00 0.00% 3. Land Acquisition and Resettlement 37.33 5.75 15.41% 31.43 84.20% 0.15 0.40% 0.00 0.00% 4. Social and Environmental Monitoring Costs 0.19 0.01 4.07% 0.16 84.36% 0.02 11.57% 0.00 0.00% 5. Survey, Design and Supervision 7.91 3.07 38.73% 4.67 59.05% 0.18 2.22% 0.00 0.00% 6.Capacity Building and Project Management a. Project Management 1.05 0.00 0.00% 0.00 0.00% 0.00 0.00% 1.05 100.00% b. Capacity Development 0.60 0.00 0.00% 0.00 0.00% 0.00 0.00% 0.60 100.00% Sub-total (A) 140.12 44.85 32.01% 91.21 65.09% 2.41 1.72% 1.65 1.18% B. Contingencies 1. Physical 14.01 4.54 32.41% 9.23 65.85% 0.24 1.74% 0.00 0.00% 2. Price 11.26 3.90 34.64% 7.19 63.91% 0.16 1.45% 0.00 0.00% Sub-total (B) 25.27 8.44 33.40% 16.42 64.99% 0.41 1.61% 0.00 0.00% C. Financing Charges During Implementation 1. Interest during construction 3.89 1.49 38.15% 2.31 59.42% 0.09 2.43% 0.00 0.00% 2. Commitment charges 0.22 0.09 39.03% 0.13 58.24% 0.01 2.73% 0.00 0.00% Sub-total (C) 4.11 1.57 38.20% 2.44 59.36% 0.10 2.44% 0.00 0.00% Total Project Cost (A+B+C) 169.50 54.86 32.37% 110.07 64.94% 2.92 1.72% 1.65 0.97% % of Total Project Cost 32% 65% 2% 1% a Exchange rate is US$1 = CNY6.24 b Numbers may not sum precisely because of rounding. Source: Asian Development Bank estimates.

F. Detailed Cost Estimates by Year

$ Million No. Item Total Cost 2014 2015 2016 2017 2018 A. Investment Cost 1. Civil Works 91.77 14.53 28.30 24.47 16.06 8.41 2. Equipment 1.26 0.20 0.39 0.34 0.22 0.12 3. Land Acquisition and Resettlement 37.33 5.91 11.51 9.96 6.53 3.42 4. Social and Environmental Monitoring Costs 0.19 0.03 0.06 0.05 0.03 0.02 5. Survey, Design and Supervision 7.91 1.25 2.44 2.11 1.39 0.73 6.Capacity Building and Project Management a. Project Management 1.05 0.17 0.32 0.28 0.18 0.10 b. Capacity Development 0.60 0.10 0.19 0.16 0.11 0.06 Sub-total (A) 140.12 22.19 43.20 37.37 24.52 12.84 B. Contingencies 1. Physical 14.01 2.22 4.32 3.74 2.45 1.28 2. Price 11.26 1.78 3.47 3.00 1.97 1.03 Sub-total (B) 25.27 4.00 7.79 6.74 4.42 2.32 C. Financing Charges During Implementation 1. Interest during construction 3.89 0.07 0.44 0.92 1.19 1.28 2. Commitment charges 0.22 0.11 0.07 0.03 0.01 0.00 Sub-total (C) 4.11 0.17 0.51 0.95 1.19 1.28 Total Project Cost (A+B+C) 169.50 26.36 51.50 45.06 30.14 16.44 % of Total Project Cost 16% 30% 27% 18% 10% Notes: 1. Exchange rate is $1 = CNY6.24. 2. Numbers may not sum precisely because of rounding. Source: Asian Development Bank estimates.

G. Contract and Disbursement S-curve ($ million)

2014 2015 2016 Item Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Cumulative Contract Awarded 0.00 1.05 1.35 1.65 2.15 2.62 2.79 16.92 31.44 51.12 74.63 75.89 Cumulative Disbursement 0.00 0.17 0.28 0.39 1.08 1.33 1.65 1.96 5.28 9.87 16.79 25.92

2017 2018 Item Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Cumulative Contract Awarded 75.89 75.89 75.89 75.89 75.89 75.89 75.89 75.89

Cumulative Disbursement 36.86 46.11 54.95 63.79 73.92 78.60 79.94 80.00 a Total amount of disbursement is $80.00 million, while total amount of contract awards is $75.89 million because the financing charges during implementation of $4.11 million will be financed under the loan.

H. Fund Flow Diagram

ASIAN DEVELOPMENT BANK (ADB)

Loan: Loan Agreement LIBOR-based loan facility 25 years with 5 years grace period

Government of the People’s Republic of China (Ministry of Finance)

Relending: Relending Agreement LIBOR-based loan facility 25 years with 5 years grace period

Guangxi Zhuang Autonomous Region An imprest Government account will be established at (Provincial Finance Department) the provincial On lending: level and On lending Agreement maintained by LIBOR-based loan facility the Provincial 25 years with 5 years grace period Finance Department

Baise Municipal Government Review WAs and submit to Provincial Finance Project Management Office (PMO) Department

Baise Municipal Finance Bureau

Prepare Withdrawal Application (WA) and On lending arrangements submit to Municipal Indicative funds flow Finance Bureau and Repayment Baise Development and Investment PMO Flow of WAs Group (BDIG)

Contractors, Consultants, Suppliers

V. FINANCIAL MANAGEMENT

A. Financial Management Assessment

34. A financial management assessment has been conducted for the project in accordance with Asian Development Bank’s (ADB) Guidelines for the Financial Management and Analysis of Projects22 and the publication Financial Due Diligence—A Methodology Note.23 The financial management assessment considers the city governments in their role as the implementing agencies for the project. The financial management assessment includes a review of the accounting and reporting system, internal and external auditing arrangements, fund disbursement procedures, and information systems. The instrument used for the assessment was ADB’s financial management assessment questionnaire.

35. The assessment, which was undertaken in respect of the executing agency (Baise Finance Bureau on behalf of Baise Municipal Government [BMG]) and the implementing agency (Baise Development and Investment Group [BDIG]), concluded that the financial management capacity of both BMG and BDIG is adequate for the implementation of the project, and training in ADB procedures will be required in procurement, disbursement, project management, and accounting systems. Issues or risks/deficiencies associated with the entity’s financial management systems are identified and, where necessary, capacity development measures are incorporated into the project design to ensure that the project’s accounting and reporting requirements can be complied with. The Guangxi Zhuang Autonomous Region Government (GZARG) Finance Bureau is managing several other existing ADB projects and has the financial capacity to administer the imprest account.

1. Risk Analysis

36. A financial management internal control and risk management assessment was conducted.24 The risk-assessment approach was based largely on International Standard on Auditing 400: Risk Assessment and Internal Control and covered both inherent risks25 and control risks.26 The overall risk assessment in relation to Baise Finance Bureau was judged to be “low” whilst the overall assessment in relation to BDIG was assessed as “medium”. Particular weaknesses concerned the current level of familiarization with the financial management, project accounting policies, and the disbursement procedures of ADB, and the absence of an internal audit capability within BDIG.

2. Risk Mitigation

37. The actions proposed to be undertaken by BMG and BDIG to mitigate the identified risks include (i) staff training; (ii) an enhancement of financial control systems, where needed; and (iii) the establishment of project accounting systems and procedures.

22 ADB. 2005. Financial Management and Analysis of Projects. Manila. 23 ADB. 2009. Financial Due Diligence A Methodology Note. Manila. 24 Refer page 24 of ADB. 2005. Financial Management and Analysis of Projects. Manila. No financial management assessment was conducted for the GZARG Finance Bureau, which has been successfully implementing other ADB projects. 25 Inherent risk is the susceptibility of the financial management system to factors arising from the environment in which it operates, such as country rules and regulations and entity working environment (assuming absence of any counter checks or internal controls). 26 Control risk is the risk that the accounting and internal control framework is inadequate to ensure funds are used economically and efficiently and for the purpose intended, and that the use of funds is properly reported.

38. BDIG will be responsible for implementation of all the physical subcomponents of the project. BDIG will be required to adhere to sound financial management requirements during the implementation of the project. BDIG, supported by the Baise Finance Bureau as necessary, will be required to maintain separate project records and accounts adequate to identify the (i) goods and services financed from loan proceeds; (ii) financing resources received; (iii) expenditures incurred on the components of each project; and (iv) counterpart funds received and expended.

39. The assessment identifies that specific action should be taken in the following areas:

(i) Provide training to build up capacity of the financial staff of BMG and BDIG on ADB loan disbursement procedures, and project financial reporting and auditing requirements before the project is implemented to avoid delay in the disbursement process. (ii) BDIG will establish an internal audit section before the start of project implementation. (iii) Regular liaison between BMG/BPMO, BDIG, and, other participating government bureaus and agencies and ADB to ensure that ADB guidelines are followed. (iv) Regular interagency coordination at all levels to be put in place to discuss the loan performance. (v) Provide financial and technical support to upgrade the existing information management system to develop monitoring and evaluation capability in BDIG. (vi) Separate accounts to be maintained for all project components financed by ADB and the government, and to be audited by the State Auditor and/or an external auditor acceptable to ADB. (vii) Annual project accounts and underlying working papers prepared by BDIG on a timely basis in preparation for the annual financial statement audit. (viii) Quarterly and annual progress reports on project implementation and operation prepared. (ix) Compliance with loan covenants monitored, including submission of audited project accounts. (x) Overall, BDIG will establish and maintain sound financial management systems, including (a) the establishment of separate project accounts and records; (b) data processing and systems financial reports; (c) recruiting additional finance staff as needed; and (d) seeking external assistance in financial management if needed.

B. Disbursement

40. ADB loan proceeds will be disbursed in accordance with the procedures set out in ADB’s Loan Disbursement Handbook (2012, as amended from time to time),27 and detailed arrangements agreed upon between the government and ADB.

41. Pursuant to ADB's Safeguard Policy Statement (2009),28 ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the Safeguard Policy Statement. All financial institutions will ensure that their investments are in compliance with applicable national laws and regulations and will apply the prohibited investment activities list (Appendix 5) to the components financed by ADB.

42. Finance Bureau will establish an imprest account on behalf of BMG, promptly after loan

27 Available at: http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loan-disbursement-final.pdf 28 Available at: http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf

effectiveness and at a commercial bank acceptable to ADB.29 The GZARG Finance Bureau will administer the imprest account. The ceiling of the imprest account will not exceed 10% of the loan amount. The currency of the imprest accounts will be US dollars. The imprest account is to be used exclusively for ADB’s share of eligible expenditures. The GZARG Finance Bureau is accountable and responsible for proper use of advances to the imprest account. The executing agency may request for initial and additional advances to the imprest account based on an estimate of expenditure sheet setting out the estimated expenditures to be financed through the imprest account for the forthcoming 6 months. Supporting documents should be submitted to ADB or retained by the GZARG Finance Bureau in accordance with ADB’s Loan Disbursement Handbook when liquidating or replenishing the imprest account.

43. To expedite flow of funds and simplify the documentation process, the ADB statement- of-expenditure (SOE) procedure will be used for liquidation and replenishment of the imprest account, and for reimbursement of eligible expenditures not exceeding $200,000 equivalent per individual payment. The payments in excess of the SOE ceiling will be reimbursed, liquidated, or replenished based on full supporting documentation. SOE records should be maintained and made readily available for review by ADB's disbursement and review mission or upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit.30

44. Before the submission of the first withdrawal application, the borrower should submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the borrower, together with the authenticated specimen signatures of each authorized person. The minimum value per withdrawal application under reimbursement and imprest fund procedure is $100,000 equivalent, unless otherwise approved by ADB. The borrower is to consolidate claims to meet this minimum limit for the reimbursement of imprest fund procedures. Withdrawal applications and supporting documents must demonstrate, among other things that the goods and/or services were produced in or from ADB members, and are eligible for ADB financing.

C. Accounting

45. BDIG and BMG will maintain separate project financial statements and records for all expenditures incurred on the project in accordance with financial reporting standards acceptable to ADB. Such statements should show the sources of funds (from ADB, government and other co-financiers). Consolidated project financial statements will be prepared annually in accordance with applicable guidance and regulations, where these are generally consistent with internationally recognized accounting principles and practices.31

D. Auditing and Public Disclosure

46. BMG will cause the detailed consolidated project accounts to be audited in accordance

29 The bank charges on the imprest account will be financed from the proceeds of the loan. 30 Checklist for SOE procedures and formats are available at: http://www.adb.org/documents/handbooks/loan_disbursement/chap-09.pdf http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Contracts-100-Below.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Contracts-Over-100.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Operating-Costs.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Free-Format.xls 31 Applicable laws, regulations and guidelines include (i) The Accounting Law of the PRC (2000), (ii) State-owned Construction Enterprise Accounting Control Regulations, and (iii) Capital Construction Financial Control Regulations, and (iv) Accounting Methods for Projects Financed by the World Bank.

with the Guidelines for the Audit of ADB and World Bank-financed Projects32 and International Standards on Auditing (ISA) and the auditing standards of the PRC (where these are consistent with ISA), by an auditor acceptable to ADB. The audited accounts will be submitted in the English language to ADB by BMG within 6 months of the end of each fiscal year:

(i) the annual consolidated project financial statements; (ii) an audit report which includes auditor’s opinions which cover (a) whether the project financial statements present a true and fair view or are presented fairly, in all material respects, in accordance with the applicable financial reporting framework; (b) whether loan and grant proceeds were used only for the purposes of the project or not; (c) the level of compliance for each financial covenant contained in the legal agreements for the project; (d) compliance with the imprest fund procedure; and (e) compliance with use of the SOE procedure certifying (1) to the eligibility of those expenditures claimed under SOE procedures, and (2) proper use of the procedure in accordance with ADB’s Loan Disbursement Handbook; (iii) the audit findings and recommendations; and (iv) the audited annual financial statements of BDIG.

47. Compliance with financial reporting and auditing requirements will be monitored by review missions and during normal program supervision, and followed up regularly with all concerned, including the external auditor.

48. BMG has been made aware of ADB‘s policy on delayed submission, and the requirements for satisfactory and acceptable quality of the audited project financial statements.33 ADB reserves the right to verify the project's financial accounts to confirm that the share of ADB‘s financing is used in accordance with ADB‘s policies and procedures.

49. Public disclosure of the project financial statements, including the auditor’s opinion on the project financial statements, will be guided by ADB’s Public Communications Policy (2011).34 After review, ADB will disclose the financial statements for the project and the opinion of the auditors on the financial statements within 30 days of the date of their receipt by posting them on ADB’s website. The audit management letter will not be disclosed.

32 China National Audit Office. 2012. Guidelines for the Audit of Asian Development Bank and World Bank-financed Projects. 33 ADB policy on delayed submission of audited project financial statements: (i) When audited project financial statements are not received by the due date, ADB will write to the executing agency advising that (i) the audit documents are overdue; and (ii) if they are not received within the next six months, requests for new contract awards and disbursement such as new replenishment of imprest accounts, processing of new reimbursement, and issuance of new commitment letters will not be processed. (ii) When audited project financial statements have not been received within 6 months after the due date, ADB will withhold processing of requests for new contract awards and disbursement such as new replenishment of imprest accounts, processing of new reimbursement, and issuance of new commitment letters. ADB will (i) inform the executing agency of ADB’s actions; and (ii) advise that the loan may be suspended if the audit documents are not received within the next six months. (iii) When audited project financial statements have not been received within 12 months after the due date, ADB may suspend the loan. 34 Available from http://www.adb.org/documents/pcp-2011?ref=site/disclosure/publications

VI. PROCUREMENT AND CONSULTING SERVICES

A. Advance Contracting

50. All advance contracting will be undertaken in conformity with the Asian Development Bank (ADB) Procurement Guidelines (2013, as amended from time to time)35 and ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time).36 The issuance of invitations to bid under advance contracting and retroactive financing will be subject to ADB approval. The borrower, the executing agency, implementing agency, and project implementation units have been advised that approval of advance contracting does not commit ADB to finance the project. In addition, the Baise Municipal Government (BMG) and Baise Development & investment Group (BDIG) have been advised that where advance contracting is approved then ADB’s approval must be sought for the draft prequalification and bidding documents before they are issued.

51. To expedite project implementation, the government requested ADB to approve advance contracting, which includes the recruitment of consultants.

B. Procurement of Goods, Works and Consulting Services

52. All procurement of goods and works will be undertaken in accordance with ADB’s Procurement Guidelines.

53. Assessments of the capacity of BMG and BDIG to procure the goods, works, and consulting services have been conducted, and the major findings and recommendations to be made on actions required to overcome weakness have been documented and incorporated into the project design and safeguards measures. Based on the assessments made it is concluded that procurement capacity and the procedural arrangements in place are adequate to facilitate full compliance with ADB procurement guidelines and the risk of misprocurement is acceptably low.

54. International competitive bidding procedures will be used for civil works contracts estimated to exceed $10 million, and goods contracts estimated to exceed $1 million. Contracts for goods and for works estimated to cost less than the above international competitive bidding threshold values, but more than $100,000 for goods and $100,000 for works, will be procured on the basis of national competitive bidding procedures in accordance with the People’s Republic of China (PRC) Tendering and Bidding Law (1999), subject to modifications agreed upon with ADB. Shopping will be used for contracts for procurement of works and equipment worth less than $200,000 and $100,000 respectively.

55. An 18-month procurement plan indicating threshold and review procedures, goods, works, and consulting service contract packages and national competitive bidding guidelines is in Section C.

56. All consultants will be recruited according to ADB’s Guidelines on the Use of Consultants.37 The terms of reference for all consulting services are detailed in Appendix 1.

35 Available at: http://www.adb.org/Documents/Guidelines/Procurement/Guidelines-Procurement.pdf 36 Available at: http://www.adb.org/Documents/Guidelines/Consulting/Guidelines-Consultants.pdf 37 Checklists for actions required to contract consultants by method available in e-Handbook on Project Implementation at: http://www.adb.org/documents/handbooks/project-implementation/

57. An estimated 105 person-months (17 person-months international and 88 person- months national) of consulting services are required to (i) provide advance project start-up support, (ii) facilitate project management and implementation, and (iii) strengthen the institutional and operational capacity of the executing agency and implementing agency. For (i), consulting firms will be engaged on consultant’s qualification selection basis. For (ii) and (iii), consulting firms will be engaged using the quality- and cost-based selection method with a standard quality: cost ratio of 80:20 and a full technical proposal will be required for the bidding.

C. Procurement Plan

Basic Data Project Name: Guangxi Baise Integrated Urban Environment Improvement Project Country: People’s Republic of China Executing Agency: Baise Municipal Government Loan Amount: $80 million Loan (Grant) Number: Lxxxx-PRC Date of First Procurement Plan: 12 April 2013 Date of this Procurement Plan: 12 April 2013 (loan fact-finding mission)

1. Process Thresholds, Review and 18-Month Procurement Plan

a. Project Procurement Thresholds

58. Except as 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 Above $10,000,000 International Competitive Bidding for Goods Above $1,000,000 National Competitive Bidding (NCB) for Works a Below ICB threshold, but more than $200,000 National Competitive Bidding for Goods a Below ICB threshold, but more than $100,000 Shopping for Works b Below or equal to $200,000 Shopping for Goods b Below or equal to $100,000 a NCB procedures are described in Section 3. b For the procurement of items below $10,000, the executing agency and implementing agency may purchase the items directly from the supplier and in such cases, the Asian Development Bank should be satisfied that the price paid is reasonable.

b. ADB Prior or Post Review

59. Except as ADB may otherwise agree, the following prior or post review requirements apply to the various procurement and consultant recruitment methods used for the project.

Procurement Prior or Post Comments Method Procurement of Goods and Works ICB Works Prior For ICB, invitations for bids and for prequalification, draft prequalification ICB Goods documents and bidding documents, and prequalification and bid evaluation reports will be submitted to ADB for prior review and approval. Use of this method is subject to the provision of ADB‘s Procurement Guidelines (2010, as amended from time to time). NCB Works Prior/ Post For NCB, the first draft English language-version of the procurement NCB Goods documents for goods and for works should be submitted to ADB for review and approval regardless of the estimated contract amount. ADB-approved procurement documents should be used as a model for all NCB procurement financed by ADB for the project, and need not be subject to

Procurement Prior or Post Comments Method further review. ADB will review the bid evaluation report and award of contract on a post-review basis. This means the first NCB procurement documents for goods and the first NCB procurement documents for works for each project implementing agency should be submitted for ADB review and approval. Subsequent NCB procurement documents will be subject to post review. Use of this method is subject to the provisions of the NCB Annex, ADB‘s Procurement Guidelines, paras. 3.3–3.4. Recruitment of Consulting Firms Quality- and Cost- Prior For quality- and cost-based selection, a quality-cost ratio of 80:20 will be Based Selection used. The borrower will be required to make three submissions (prior reviews) for ADB approval: (i) a draft request for proposal, including the shortlist, (ii) a technical proposal evaluation report, and (iii) an overall evaluation and ranking report. Use of this method is subject to Guidelines on the Use of Consultants (2010, as amended from time to time). Recruitment of Individual Consultants Individual Prior Usually consultants’ qualifications selection method is applied to selection consultant of individual consultant. selection method ADB = Asian Development Bank, ICB = international competitive bidding, NCB = national competitive bidding.

c. Goods and Works Contracts Estimated to Cost More Than $1 Million

60. The following table lists goods and works contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.

Contract Prequalification Advertisement Procurement ADB Ref. No. General Description Value of Bidders Date Method Review ($ Million) (y/n) (Quarter/year) Civil Works Youjiang River R-C01 embankment 17.77 ICB n Q3/2014 Prior improvement Dongsun Stream dredging and R-C02 18.26 ICB n Q3/2014 Prior embankment improvement T-C01 Dongsun Road, Dongsun Road Bridge, Old Bridge 24.75 ICB n Q4/2014 Prior Demolition; Guihua Road 4, Linyin Road Bridge T-C02 Guihua Road 2, Guihua Road 2 Bridge; Guihua Road 3; Guihua Road 7; Guihua Road 17; Guihua 29.57 ICB n Q4/2014 Prior Road 18; Guihua Road 19; Guihua Road 20, Guihua Road 20 Bridge Goods Equipment/material for C-E01 solid waste transfer 1.26 ICB n Q4/2014 Prior station ICB = international competitive bidding, NCB = national competitive bidding.

d. Consulting Services Contracts Estimated to Cost More Than $100,000

61. The following table lists consulting services contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.

Contract General Recruitme Type of Advertisement Ref. No. Value ADB Review Description nt Method Proposal Date (quarter/year) ($million) Consulting services, office S01a equipment, and 1.65 QCBS FTP Q3/2013 Prior training/study tour QCBS = quality- and cost-based selection, FTP = full technical proposal. a Request for advance procurement action.

e. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100,000

62. The following table groups smaller-value goods, works, and consulting services contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.

Contract Prequalification Advertisement General Procurement Ref. No. Value of Bidders Date ADB Review Description Method ($ million) (y/n) (quarter/year) Civil Works T-C03 Bus terminals 0.63 NCB n Q2/2015 Post Community Prior C-C01 service center, 0.59 NCB n Q3/2014 market C-C02 Solid waste 0.21 NCB n Q1/2015 Post transfer station

2. Indicative List of Packages Required Under the Project

63. The following table provides an indicative list of all procurement (goods, works and consulting services) over the life of the project. Contracts financed by the borrower and others should also be indicated, with an appropriate notation in the comments section.

Prequalification Advertisement Contract Value Procurement Ref. No. General Description of Bidders Date ($ million) Method (y/n) (quarter/year) Goods Equipment/material for solid C-E01 1.26 ICB n Q4/2014 waste transfer station Works Youjiang River embankment R-C01 17.77 ICB n Q3/2014 improvement Dongsun Stream dredging and R-C02 18.26 ICB n Q3/2014 embankment improvement T-C01 Dongsun Road, Dongsun Road Bridge, Old Bridge Demolition; 24.75 ICB n Q4/2014 Guihua Road 4, Linyin Road

Prequalification Advertisement Contract Value Procurement Ref. No. General Description of Bidders Date ($ million) Method (y/n) (quarter/year) Bridge T-C02 Guihua Road 2, Guihua Road 2 Bridge; Guihua Road 3; Guihua Road 7; Guihua Road 17; 29.57 ICB n Q4/2014 Guihua Road 18; Guihua Road 19; Guihua Road 20, Guihua Road 20 Bridge T-C03 Bus terminals 0.63 NCB n Q1/2015 Community service center, C-C01 0.59 NCB n Q1/2015 market C-C02 Solid waste transfer station 0.21 NCB n Q4/2014 Consulting Services Consulting services, office 1.50 QCBS FTP Q4/2013 a equipment, and training/study S01 tour Advance start-up support 0.15 CQS BTP Q4/2013 BTP = biodata technical proposal, CQS = consultant qualification selection, FTP = full technical proposal, ICB = international competitive bidding, NCB = national competitive bidding, QCBS = quality- and cost-based selection. a Request for advance procurement action.

3. National Competitive Bidding for the People’s Republic of China

64. The Borrower’s Law of Tendering and Bidding of the People’s Republic of China promulgated by Order No. 21 of the President of the People’s Republic of China on August 30, 1999, are subject to the following clarifications required for compliance with the Guidelines:

(i) All invitations to prequalify or to bid shall be advertised in the national press, or official gazette, or a free and open access website in the Borrower’s country. Such advertisement shall be made in sufficient time for prospective bidders to obtain prequalification or bidding documents and prepare and submit their responses. In any event, a minimum preparation period of thirty (30) days shall be given. The preparation period shall count (a) from the date of advertisement, or (b) when the documents are available for issue, whichever date is later. The advertisement and the prequalification and bidding documents shall specify the deadline for such submission. (ii) Qualification requirements of bidders and the method of evaluating the qualification of each bidder shall be specified in detail in the bidding documents, and in the prequalification documents if the bidding is preceded by a prequalification process. (iii) If bidding is preceded by a prequalification process, all bidders that meet the qualification criteria set out in the prequalification document shall be allowed to bid and there shall be no limit on the number of pre-qualified bidders. (iv) All bidders shall be required to provide a performance security in an amount sufficient to protect the Borrower/Project Executing Agency in case of breach of contract by the contractor, and the bidding documents shall specify the required form and amount of such performance security. (v) Bidders shall be allowed to submit bids by mail or by hand. (vi) All bids shall be opened in public; all bidders shall be afforded an opportunity to be present (either in person or through their representatives) at the time of bid opening, but bidders shall not be required to be present at the bid opening.

(vii) All bid evaluation criteria shall be disclosed in the bidding documents and quantified in monetary terns or expressed in the form of pass/fail requirements. (viii) No bid may be rejected solely on the basis that the bid price falls outside any standard contract estimate, or margin or bracket of average bids established by the Borrower/Project Executing Agency. (ix) Each contract shall be awarded to the lowest evaluated responsive bidder, that is, the bidder who meets the appropriate standards of capability and resources and whose bid has been determined (a) to be substantially responsive to the bidding documents and (b) to offer the lowest evaluated cost. The winning bidder shall not be required, as a condition of award, to undertake responsibilities for work not stipulated in the bidding documents or otherwise to modify the bid as originally submitted. (x) Each contract financed with the proceeds of the Loan shall provide that the suppliers and contractors shall permit ADB, at its request, to inspect their accounts and records relating to the performance of the contract and to have said accounts and records audited by auditors appointed by ADB. (xi) Government owned enterprises in the Borrower’s country may be permitted to bid if they can establish that they (a) are legally and financially autonomous, (b) operate under commercial law and (c) are not a dependent agency of the Borrower/Project Executing Agency. (xii) Re-bidding shall not be allowed solely because the number of bids is less than three (3).

D. Consultant's Terms of Reference

1. Implementation Consulting

65. Introduction. The Baise project management office (BPMO) will be responsible for engaging consultants to assist in project implementation and management as well as the provision of training to BPMO, BDIG, as the implementing agency, operation and maintenance units, and other agencies involved in the project. The consulting services will be provided in two parts:

(i) Advance support. Up to 12 months of domestic consulting support to assist BDIG and BPMO in (a) the initial setting up of project management systems, (b) design review and bidding document preparation, (c) advice on procurement procedures in accordance with the ADB’s Procurement Guidelines, and (d) updating and implementation of safeguard plans (resettlement, environmental management, social) and establishing internal safeguard monitoring procedures. (ii) Comprehensive project implementation support and capacity building. Involving international and domestic consulting inputs totaling 104 person- months (see below for details) to encompass the construction phase including advice, training, and support on (a) design review and advice to local design institutes; (b) procurement; (c) construction management (progress tracking, potential contract variations, contract claims, resolving unforeseen technical issues, etc.); (d) establishing project accounting and financial reporting systems and ongoing support in financial reporting; (e) updating of environmental management plan (EMP), EMP implementation support, verification and reporting, and training; (f) updating the resettlement and ethnic minority development plan based on a final design and detailed measurement survey of affected persons and advising on its implementation (including internal

monitoring); and (g) finalizing the design and then implementation of the project performance management system and support in progress reporting to ADB.

66. The capacity building will also cover the strengthening of relevant project agencies to give assurances on project sustainability covering:

(i) Financial sustainability. Financial management strengthening, with particular emphasis on budgeting, cost control, and financial planning. (ii) Operational sustainability. Asset management (especially in relation to urban roads and flood control infrastructure). (iii) Environmental remediation in former industrial areas. (a) Deconstruction of existing industrial facilities, (b) clean up of contaminated sites, and (c) management of environmental, health, and safety risks during and after redevelopment.

67. Training will take various forms which will likely include:

(i) international study tour(s) to promote integrated urban planning and how this is achieved in practice; (ii) domestic study tours to view best PRC practice in the different sectors of the project; (iii) seminars and workshops in Baise on all areas of the capacity building; (iv) on-the-job training (such as in financial management); and (v) extended training or work placements within the PRC (e.g., at technical training schools or work placements at best practice units in larger cities).

7 An indicative training plan is included as Appendix 4 of this manual, but this will be further consulted on and finalized by the project implementation consultant within the first 3 months of the consulting contract.

8. BMG, through BPMO will recruit the consultants in accordance with ADB’s Guidelines on the Use of Consultants.38

70. Consulting inputs and costs. Summary of advance start-up support consultants.

Summary Costs ($000) Item Cost Consultants 100.00 Contingency 50.00 Total 150.00

Baise start-up support

National Person-Months Procurement/Project Management 3.5 Specialist Social and Resettlement Specialist 3.5 Environment Specialist 3.0 Total 10

38 ADB. 2010. Guidelines on the Use of Consultants by Asian Development Bank and its Borrowers. Manila.

International Person-Months Capacity Building Specialist 2.0 Total 2.0

71. Summary of loan implementation consultancy inputs and associated capacity building costs are set out below, with further details in Appendix 1. Consultant inputs (months) are also summarized below.

Summary of Consulting Services Costs ($000) Item Cost Consulting 1,070.00 Training and Monitoring 530.00 Contingency–Dongsun 50.00 Neighborhood Committee Support Total 1,650.00

Analysis of Loan Implementation Consulting Inputs International National Area of Expertise Person-Months Person-Months Project Management Implementation Support Team leader/deputy team leader 11 23 Procurement specialist 0 10 Financial management specialist (operational 0 7 sustainability) Environmental specialist 0 7 Resettlement specialist 0 7 Gender and social specialist 0 7 Public engagement specialist 0 5 Subtotal 11 66 Strategic Capacity Building Environmental remediation specialists 1 4 Subtotal 1 4 Community Development

Community development specialists 2 5 Policy and regulatory development specialist 1 3 Subtotal 3 8 Total 15 78

72. Implementation. The loan implementation consultancy will be provided over a 5-year implementation period. Reports are to be submitted are as follows:

(i) an inception report (within 1 month of commencement), (ii) a detailed training plan within 3 months of commencement, (iii) half-yearly progress reports compatible with BPMO’s reporting obligations to ADB, (iv) safeguards monitoring reports compatible with BPMO’s reporting obligations to ADB, and

(v) a completion report that is compatible with BPMO’s reporting obligations to ADB at the conclusion of project implementation.

73. All reports are to be submitted to BPMO in both Chinese and English (for onward transmission to ADB as may be required).

VII. SAFEGUARDS

A. Environment

74. Domestic environmental impact assessment report and consolidated project initial environmental examination. The project is classified as environmental category B. A domestic environmental impact report (EIR) was prepared for the project and was reviewed and approved by the Baise Environmental Protection Bureau. The methods and standards applied in the preparation of the EIR for the project are in accordance with the guidelines of the Ministry of Environmental Protection, and also meet national and Guangxi Zhuang Autonomous Region (GZAR) laws and regulations. A consolidated project IEE, including an environmental management plan (EMP) and environmental monitoring program, has been prepared in compliance with Asian Development Bank’s (ADB) Safeguard Policy Statement (2009). The project IEE concludes that the project’s anticipated environmental impacts can be mitigated through the implementation of the EMP. The EMP, as contained in Appendix 2 of this manual, defines mitigation measures, monitoring requirements, and institutional responsibilities to ensure proper environmental management throughout the project construction and operation.

75. Anticipated impacts. Environmental impacts are anticipated, but these are of a temporary nature and are covered by stringent site management and procedural provisions in the EMP. Dust and noise generated by construction activities will be a nuisance to nearby residents. Discharge of wastewater from construction sites could potentially pollute nearby water bodies. Traffic travelling on the project roads will generate air and noise pollution potentially affecting nearby sensitive receptors. Operation of the solid waste transfer station will have odor, noise, and water quality implications. According to predictions in the domestic EIR, these impacts should be acceptable with the provision of mitigation measures and sound environmental management during the construction and operational stages of the project.

76. Environmental management plan implementation responsibilities. Institutional responsibilities in EMP implementation and supervision are defined in Table EMP-1 of the project EMP (Appendix 2). As the executive agency, the Baise Municipal Government (BMG) will have the overall accountability for the project and all its components, including ensuring compliance with the laws and regulations of the People’s Republic of China (PRC) and the provisions of ADB’s Safeguard Policy Statement. The Baise project management office (BPMO) will, on behalf of BMG, be responsible for overall EMP implementation, including EMP updating, EMP monitoring, reporting, and initiating corrective actions or measures. In the detailed engineering design stage, BDIG and BPMO will pass the EMP to the design institutes for incorporating mitigation measures into the detailed designs. The EMP will be updated at the end of the detailed design, submitted to ADB for review and disclosure, and finally be passed to the construction contractors. To ensure that contractors will comply with the EMP’s provisions, BDIG and BPMO will prepare and provide the following documentation for incorporation into the bidding procedures: (i) a list of environmental management requirements to be budgeted by the bidders in their proposals; (ii) environmental clauses for contractual terms and conditions; and (iii) the full domestic EIR and the project IEE including EMP for compliance.

77. BPMO will recruit a project management consulting service including a national environment specialist (8 person-months) through international competitive bidding. The consultant will assist BDIG and BPMO to supervise the compliance with ADB safeguard policies and PRC environmental protection laws and regulations, conduct EMP training (see Table EMP-7 of the EMP), and ensure that the environmental reporting requirements are met.

78. BDIG and BPMO will nominate dedicated, trained, and qualified environment specialists which will be responsible for (i) implementing the EMP (see Table EMP-1 of the EMP); (ii) supervising contractors’ implementation of mitigation measures during construction; (iii) incorporating EMP, monitoring, and mitigation measures into construction and operations management plans; (iv) developing and implementing regular environmental inspection; and (v) reporting performance relative to the provisions of the EMP to BPMO. BPMO will contract a licensed environmental monitoring center to conduct periodic environmental impact monitoring in accordance with the monitoring plan defined in Appendix 2 (Table EMP.4). BPMO will establish a grievance redress mechanism (GRM) and handle any disputes arising from non-compliance with the EMP. The project management consultants through their environmental specialist will assist BDIG and BPMO in preparing the required EMP progress reports and carrying out training programs (see below).

79. Construction contractors will be responsible for implementing mitigation measures during construction, while BDIG and BPMO will be responsible for supervising the implementation of such measures during construction.

80. Training. Environmental training will be essential for BPMO, BDIG, contractors, and operation and maintenance units to implement the EMP. BPMO, with the support of the project implementation management consultants, will be responsible for organizing training programs, which will cover (i) environmental laws, regulations, and policies; (ii) implementing mitigation measures; (iii) operating and maintaining project facilities; (iv) environmental monitoring and supervision; and (v) documentation and reporting. The training program for EMP implementation is defined in Appendix 2, Table EMP-7.

B. Involuntary Resettlement

81. The project is classified Category A for involuntary resettlement. BMG prepared one resettlement and ethnic minority development plan (REMDP) for the whole project. The REMDP defines the scope, cost, timing, and institutional framework for project-related resettlement activities, with due attention paid to the land acquisition and resettlement impacts on the local ethnic minority population.

82. Based on the preliminary impact survey, the project will adversely affect residents, enterprises, and stores. A total of 759.01 mu of land will be occupied permanently, including 547.34 mu of collective land belonging to six rural groups of Dongsun community and 211.67 mu of state-owned land; while 224.8 mu of land will be occupied temporarily. A total of 51,034.45 square meters (m2) of residential buildings and 24,399.54 m2 of nonresidential buildings will be demolished. Overall, the project will affect 570 households with 2,035 persons permanently and 65 households with 258 persons temporarily, totaling 634 households with 2,293 persons. Among the permanently affected population, 246 households with 854 persons will be affected by collective land acquisition; 151 households with 511 persons by the demolition of residential houses on collective land and 214 households with 673 persons by the demolition of residential houses on state-owned land. About 8 enterprises with 174persons and 15 stores with 45 persons will suffer house demolition impacts. Table 1 summarizes the project impacts. A resettlement implementation schedule is provided in Table 2.

83. Compensation for permanent land loss is based on the Land Administration Law of PRC (2004), the State Council Decision to Deepen Reform and Strictly Enforce Land Administration (Document 28 dated November 2004) and Regulations on the Expropriation of Houses on State- owned Land and Compensation (2011). In addition, GZAR also issued related regulations. All

these policies have provided essential guidelines for the REMDP. The project REMDP complies with PRC laws and regulations of resettlement and ADB’s Safeguard Policy Statement.

84. Implementation arrangements. BDIG and BPMO (as implementing unit) will have full- time staff responsible for land acquisition and resettlement. The staff will take lead responsibility for coordinating the planning, implementation, financing, and monitoring of land acquisition and resettlement. They will work closely with relevant village/community officials, land resource bureaus, and house demolition offices, and will be responsible for supervising and monitoring resettlement (e.g., delivery of entitlements, selection of new replacement housing, restoration of incomes, provision of replacement land, and other economic measures). A training program will be organized for the resettlement officers before the commencement of resettlement activities. The REMDP will be finalized based on final design and detailed measurement survey and sent to ADB for review and approval prior to commencement of land acquisition, house demolition, and award of civil works contracts. All compensation and resettlement assistance will be paid to affected households prior to commencement of construction activities. Land acquisition and house demolition will commence from December 2013.

85. The cost estimate for land acquisition and resettlement for all the subcomponents is equivalent to CNY228.89 million or $37.33 million equivalent at January 2013 prices, including contingencies. Resettlement compensation and provision of other entitlements will be completed prior to the physical construction of the relevant subproject. The BDIG and BMG will ensure that such funds are made available on time.

Table 1: Summary of Affected Population Road network Community Integrated and municipal development Project Item river Total infrastructure and rehabilitation construction upgrading HHs 187 57 2 246 LA Population 650 196 8 854 HD on HHs 0 151 0 151 collective land Population 0 511 0 511 HD on state- HHs 0 211 3 214 Affected population Affected Permanently owned land Population 0 660 13 673 affected Both LA and HHs 0 65 0 65 population HD Population 0 222 0 222 The Project Entities / HHs 0 23 0 23 stores Population 0 219 0 219 HHs 187 377 5 569

Sub-total Population 650 1364 21 2035 Temporarily Temporary HHs 30 35 0 65 affected land population occupation Population 106 152 0 258 HHs 217 412 5 634 Total Population 756 1516 21 2293 Note: The population affected by temporary land occupation is included in that affected by LA.

Table 2: Resettlement Implementation Schedule

No. Resettlement Task Agency responsible Time Remarks 1 Information disclosure 1 community 1.1 RIB with 6 groups, PMO, BDIG May. 2013 entities Disclosure of the REMDP on 1.2 IA, PMO and ADB May. 2013 ADB’s website 2 REMDP and budget REMDP and budget approval 252.5737million 2.1 BMG, BDIG Jun. 2013 (compensation rates) yuan Village-level income 1 community Community 2.2 Jun. 2013 restoration programs with 6 groups committee REMDP update after detailed 2.3 / IA and PMO Nov. 2013 design and AP consultation 3 DMS DMS on LA and HD and AP 3.1 Dongsun Baise PMO, BDIG Nov .2013 consultation 4 Compensation agreement Village-level land 1 community Land & resources 4.1 Dec. 2013 compensation agreement with 6 groups bureau Household land Community 4.2 151 households Mar. 2014 compensation agreement committee 365 households, House compensation Land & resources 4.3 8entities. 15 Mar. 2014 agreement bureau stores 5 HD 5.1 HD 365 households Lessees / AHs Apr. 2014 6 Implementation of restoration measures Distribution of land Sub-district, Dec.2013 – Mar. 6.1 Dongsun compensation fees to AHs community 2014 Implementation of village- Jan.2014 – Dec. 6.2 level income restoration Dongsun Community 2016 programs Sub-district, Jan.2014 – Dec. Income restoration through community, labor 6.3 AHs 2016 business and employment and social security

bureau Implementation of training Labor and social 6.4 AHs 2014-2016 program security bureau Identifying vulnerable Civil affairs bureau, Dec.2013 – Apr. 6.5 households and implementing 50 HHs PMO 2014 assistance measures Identifying and hiring PMO, labor and Jan. 2014 – Jun. 6.6 households for employment APs social security 2019 under the Project bureau, contractor 7 Capacity building of resettlement agencies Staff of BDIG and land & 7.1 15 persons ADB Jun. – Dec. 2013 resources bureau

No. Resettlement Task Agency responsible Time Remarks Training of district, sub-district PMO and land & Jun.2013 – Dec. 7.2 400 persons and community officials resources bureau 2014 8 M&E

External M&E st 8.1 Baseline survey One report Nov .2013 1 report agency Establishing an internal M&E As per the 8.2 PMO, IA Nov .2013 agency REMDP Appointing an external 8.3 One PMO Nov. 2013 monitoring agency Quarterly (as 8.4 Internal monitoring reporting PMO, IA From Nov .2013 required) nd Semiannual External M&E Dec. 2013 2 report 8.5 External monitoring reporting rd report agency Jun. 2014 3 report

Dec. 2014 4th report Dec. 2015 5th report 8.6 Evaluation reporting Annual report Evaluation agency th Dec.2016 6 report 8.7 Completion report One report IA, PMO Jun. 2017 7th report 9 Public consultation IA Ongoing 10 Grievance redress IA Ongoing 11 Disbursement of compensation fees 11.1 - Disbursement to the IA Initial funds Aug. 2013 11.2 - Disbursement to villages Most funds IA Dec. 2013 IA, community 11.3 - Disbursement to AHs Most funds Mar. 2014 committee 12 Commencement of resettlement activieties and civil construction 246 HHs with Land & resources Dec. 2013 12.1 LAR 846 persons bureau Baise PMO, BDIG, Construction of rural 12.2 50 mu Land & resources Mar. 2014 resettlement site bureau 12 buildings have 2 Youjiang Dsitrict, been completed or 12.3 Construction of dormitories 360,000 m Affected entities. are under construction 12.4 House demolition 365 households Baise PMO, BDIG Apr. 2014 12.5 House relocation 365 households Baise PMO, BDIG Dec. 2014 12.6 Construction of the Project BDIG Aug. 2014 ADB = Asian Development Bank, AP = affected person, BPMO = Baise project management office, DMS = detailed measurement survey, HH = household, REMDP = resettlement and ethnic minority development plan, RIB = resettlement information booklet. Source: Asian Development Bank estimates.

86. Grievance redress mechanism. In order to solve problems effectively, and ensure the successful implementation of project construction and land acquisition, a transparent and effective grievance redress mechanism has been established. The basic grievance redress system is as follows:

(i) Stage 1: If any right of an affected person is infringed on in respect of land acquisition or resettlement, he/she may report to the community committee, and either the affected person or the community committee may solve the appeal in consultation with the township government within 2 weeks. (ii) Stage 2: If the grievant is dissatisfied with the reply of Stage 1, he/she may file an appeal with BPMO within 1 month of receipt of the above reply, which shall make a disposition within 3 weeks. (iii) Stage 3: If the grievant is still dissatisfied with the disposition of Stage 2, he/she may file an appeal with the Baise project leading group within 1 month of receipt of the above disposition, which shall make a disposition within 4 weeks. (iv) Stage 4: If the grievant is still dissatisfied with the disposition of Stage 3, he/she may file an appeal with the competent authorities level by level for arbitration in accordance with the Administrative Procedure Law of the PRC after receiving the above disposition.

87. The affected persons may file an appeal about any aspect of resettlement, including compensation rates, etc. The above appeal channel, and the names, addresses, contacts and telephone numbers of the accepting agencies will be notified to the affected persons at a meeting or through an announcement or the REMDP information booklet, so that the affected persons are fully aware of their right of appeal. Mass media will be utilized for publicity, and opinions and advice about resettlement will be compiled into messages for study and disposition by the resettlement agencies. All agencies will accept grievances and appeals from the affected persons for free, and costs so reasonably incurred will be disbursed from the contingencies. During the whole period of project implementation, this appeal process will remain effective, so that the affected persons can use it to address relevant issues.

88. Affected persons can decide to go through the legal system directly and may decide not to use the project level grievance channels. The aggrieved person may also express grievance to the external monitor, who would then report it to BPMO and BDIG. Alternatively, the aggrieved person(s) may submit a complaint to the ADB project team to try to resolve the problem. If good faith efforts are still unsuccessful, and if there are grievances that stemmed from a violation of ADB's safeguard policy, the affected persons may appeal directly to ADB in accordance with ADB's Accountability Mechanism (2012).39 At any time, the grievant may file an action in a civil court in accordance with the Civil Procedure Law of the PRC after receiving the arbitration award.

C. Indigenous Peoples

89. The project is classified as Indigenous Peoples category B. The REMDP defines the measures to mitigate the negative impacts of resettlement on the local ethnic minority population and enhance some positive features of the project (e.g., community development).

90. The project area (Dongsun area) is under Beicheng Subdistrict, Youjiang District, Baise City, and GZAR. There are six village groups and 14 enterprises/public institutions in the Dongsun area. According to the Dongsun Community Committee, there are 8,694 residents in the Dongsun area; the area also has a floating population of about 2,100, mostly casual laborers at local enterprises. Among the total population of 10,794, 39.0% are Zhuang. However, the proportion of ethnic minorities among urban residents of Dongsun area (29%) is much lower than

39 Before submitting a complaint to the Accountability Mechanism, the affected people should make a good faith effort to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism: http://www.adb.org/site/accountability- mechanism/main

7 that among rural residents (83%) because many former enterprise employees came from other parts of China, and most of them are Han people.

91. The project sites are all located in the urban planning area, and there is one distinct Zhuang rural community in the project area. In the Baise urban area, the Zhuang people live harmoniously with the Han people, and most Zhuang are bilingual (Zhuang and Mandarin). The Zhuang in Dongsun subdistrict are distinct from the mainstream society with respect to their customary, cultural, and social institutions. Consultation with Zhuang in communities in the project area revealed that the main negative impacts on ethnic minorities are resettlement and future loss of their farmlands due to urbanization.

92. The main negative impact of the project on the local ethnic minority population is related to land acquisition and resettlement and subsequent land losses due to urbanization. The rural people will be resettled during project implementation to allow for construction of the roads and rehabilitation of the river and stream embankments. Therefore, a combined REMDP has been prepared to define the measures to mitigate the negative impacts of the resettlement and ensure equitable compensation of affected ethnic minority households. The Zhuang people will benefit from urban development in an inclusive and culturally appropriate manner.

D. Monitoring of the Resettlement and Ethnic Minority Development Plan

93. Internal and external monitoring of resettlement plan implementation will be conducted. Monitoring methodologies are specified in the REMDP. BDIG will conduct internal supervision and monitoring to ensure compliance with the provisions of the REMDP. BPMO and BDIG have agreed with ADB to a set of supervision milestones, to ensure timely and effective implementation of resettlement activities. An independent agency will be engaged by BPMO to conduct external monitoring and evaluation. The external monitor will conduct baseline survey of affected persons and households to record the production level and living standards prior to displacement. Semiannual external monitoring reports will be prepared and forwarded directly to BPMO and ADB. Two annual evaluation report and a resettlement completion report will be prepared. The monitoring requirements and agreed arrangements for ensuring compliance with the relevant sections of the ADB safeguard policy are detailed in Section IX D of this manual. The external monitoring reports will be disclosed to the affected persons and uploaded on ADB website.

VIII. GENDER AND SOCIAL DIMENSIONS

A. Summary Poverty Reduction and Strategy Policy

94. A social, poverty, and gender analysis was undertaken in accordance with Asian Development Bank (ADB) guidelines. The analysis collected information to assist in the design of the project by identifying the poor and economically vulnerable, examining causes of poverty and recommending poverty reduction measures within the scope of the project.

95. Design features. The project will implement the following:

(i) Gender action plan. The gender action plan (GAP) includes measures to address gender concerns in all project components and capacity building. This includes measures to ensure (a) that there will be sufficient project management and project implementation consultant staff with appropriate awareness of gender issues to effectively oversee the implementation and monitoring of the GAP; (b) the effective inclusion of women in all project activities; and (c) that, as far as possible, the targets set for the employment of women are met, and that the work conditions and pay of men and women are equitable. Implementation and monitoring of the GAP is included in the loan assurances and the design and monitoring framework. The full GAP is set out in Annex 1 of this section. No additional budget is necessary for the actions which are covered in the design of the project. (ii) Social action plan. The social action plan (SAP) will facilitate continued consultation and participation of communities in the project, as well as ensure that labor rights and entitlements are observed and that the needs of poor households are considered. The SAP is set out in full in Table 2 of this section.

B. Gender and Development

96. The poverty, social, and gender analysis, indicates that women support all of the components, and improvements to urban infrastructure generally. They perceive that the project will improve their living environments, improve access and mobility, and create employment opportunities. A GAP (Annex 1) has been prepared for the project and gender specific indicators have been included in the project’s monitoring framework to ensure that targets are met, and that women fully participate in and enjoy the benefits of the project. The PMO staff responsible for social safeguards and gender will work with women’s federations, contractors, and community office staff to facilitate the participation of women in paid work opportunities for civil works; and, ensure that all People’s Republic of China (PRC) labor laws and core labor standards are respected. Project assurances (i) prioritize women for employment, with specific targets; (ii) ensure implementation of the project’s GAP; and (iii) ensure targets and GAP implementation will be monitored. The safeguard staff will have gender expertise and be responsible for ensuring the implementation of the GAP, and reporting on progress and achievements to ADB.

97. The project will promote women’s development in the following ways:

(i) Improving the living environment and women’s physical and mental health by (a) reducing women’s diseases associated with sewage and waste. Women are mostly responsible for housework, including sewage disposal and waste dumping, so that women have greater exposure to sewage and waste. The

improvement of the living environment in the project will reduce relevant diseases and benefit local female vegetable growers by reducing skin and respiratory diseases, and reducing medical expenses; and (b) building more activity and leisure places. The water quality improvement and landscaping of the Dongsun Stream and the Youjiang River, and the construction of public squares will provide better leisure spaces for residents.

(ii) Improving traffic accessibility and making it more convenient for women to be mobile in the area and for access to Baise City center. The establishment of the road network in the Dongsun area will strengthen road connections, facilitate women’s traffic, and make it more convenient for women to work outside the area. Compared to men who use motorcycles more frequently, local women mostly go to town by bus. Improved bus stops will address safety and convenience for public transport users.

(iii) Improving traffic safety and reducing traffic accidents. The improvement of traffic conditions, such as the setup of traffic signals, and separation of vehicle lanes and sidewalks, will improve the traffic safety of pedestrians (primarily women and children) and other road users.

(iv) Increasing job opportunities for women to promote their long-term development. The project will need numerous jobs at the construction and operation stages, and women will obtain 15%–20% of unskilled jobs (about 300). The future development of real estate, tourism, and commerce in the Dongsun area will increase women’s job opportunities greatly, especially in service industries, such as hotels and restaurants.

(v) Encouraging women to participate in community development. In ADB- financed projects, women’s participation is always encouraged, and the protection of women’s rights and interests is always a priority. The participation mechanism in the project enables more women to understand and participate in the project. At the preparation stage, focus group discussions, and discussion meetings were held to give an opportunity to female farmers, employees, and family members to express their attitudes to and suggestions on the project and community development; at the construction stage and in the future development of the community, women will have more nonagricultural job opportunities, which will help improve their family status; during the community development process, women’s practical participation will also be needed. They should contribute to community construction as part of the community and strive for more development opportunities from this. For example, a community management and supervision team including female members will be established to maintain the traffic safety and environmental sanitation of the community. Women’s participation on the community development committee is ensured in the GAP.

98. The GAP has been developed to ensure that women are kept fully informed and consulted throughout the project. Targets for the employment of women on the project construction have also been set. This is particularly important, as there is general agreement that women are discriminated against in the labor market, especially women over the age of 35.

99. The GAP includes provisions to ensure that the Baise project management office (BPMO) and implementing agency staff are fully briefed on gender in development and the GAP, at the time of commencement of project implementation.

100. The safeguard and gender staff will ensure sex-disaggregated baseline and survey data will be collected; that the GAP is implemented and that implementation of targets and GAP will be monitored. The project implementation consultant will include a gender/social specialist (8 person-months) to mentor the safeguard staff as necessary, and to facilitate achievement of the project’s gender and development objectives. The GAP will be monitored during ADB review missions and supervision supported by the ADB Senior Social Development Specialist.

ANNEX 1: GENDER ACTION PLAN (Effective Gender Mainstreaming)

Funding Agencies source and Output Activities and objectives Monitoring indicators responsible time frame Output 1: Public consultation on the design of river At least 50% of residents participating in BPMO, design Included in the Urban river rehabilitation and flood control will be held. the consultation on design or river agency, project budget rehabilitation rehabilitation and flood control are municipal and flood women during the detailed design stage. women’s (CNY15,000) control federation, Number of consultation meetings, municipal 2013–2017 At least 30% of unskilled construction job percentage of female participants, and water bureau, opportunities generated by the river subcomponent comments of affected women. and are targeted to women. community Number and kind of jobs and person At least 30% of public welfare jobs (e.g., greening, employed (sex disaggregated). landscaping, garbage collection, etc.) generated by the river subcomponent are targeted to women and other vulnerable groups. Output 2: Public consultation on road network design with At least 50% of residents in the BPMO, design Included in the Urban emphasis on road safety, public transport consultations for detailed planning phase agency, project budget transport and accessibility, and pedestrian access. are women. municipal associated women’s (CNY15,000) infrastructure Traffic signals, overpasses, underpasses, Number of consultation meetings, federation, streetlamps, safety signs, and safety facilities should percentage of female participants, and municipal 2013–2017 be designed in consultation with women and elderly responses from affected women. traffic bureau, people. and community At least 30% of unskilled construction job Percentage of women employed in opportunities generated by the transportation unskilled jobs. subcomponent are targeted to women.

At least 30% of public welfare jobs (e.g., road Percentage of women employed in public maintenance, greening, landscaping, etc.) generated welfare jobs. by the transportation subcomponent are targeted to Number and kind of road safety design women and other vulnerable groups. elements included in the project roads. Output 3: Activity areas included in the community center will At least 50% of residents, consulted Owner, Included in the Community address women’s preferences (e.g., chess and card during detailed urban, economic, women’s project budget upgrading and room, indoor courts, ball, library, etc.). infrastructure planning are women. federation,

Funding Agencies source and Output Activities and objectives Monitoring indicators responsible time frame development municipal (CNY30,000) Small exercise apparatus will be included in parks Number of consultation meetings, housing based on women’s preferences. percentage of female participants, and construction comments of affected women. bureau, municipal 2013–2017 Women vendors have use rights to at least 50% of Number of leases granted (sex labor and leasable area in the market. disaggregated) social security, and At least 30% of unskilled construction job Percentage of women employed in community opportunities generated by the community unskilled jobs. subcomponent are targeted to women.

At least 30% of public jobs (e.g., working in the Percentage of women employed in community center, marketplace, sanitation cleaners, public jobs. etc.) generated by the community subcomponent are targeted to women and other vulnerable groups.

At least 40% of the strengthened DNC are women. Composition of the reorganized DNC. At least 50% of participants of public meetings on community economic development planning are Percentage of women involved in various women. public participation meetings. Output 4: At least 50% of participants for BPMO training are Frequency, scope, timing, venue, and Owner, Included in the Capacity women. form of skills training. BPMO, and project budget building and community project At least 50% of female DNC members will attend the Number and percentage of female (CNY150,000) management trainings (e.g., awareness-building training, trainees. knowledge training, study tour, etc.). 2013–2017 BPMO = Baise project management office, DNC = Dongsun Neighborhood Committee.

C. Social Action Plan

101. The SAP, included as Annex 2, will facilitate continued consultation and participation of the local community in the project, as well as ensure that labor rights and entitlements are observed and that the needs of poor households are considered. It will be monitored through the project performance management system.

102. Core labor standards will be implemented. Civil works contracts will stipulate (i) that local people will receive priority with respect to employment; (ii) that equal wages will be paid for work of equal value, and that women’s wages will be paid directly to them; (iii) that no child or forced labor will be employed; and (iv) that all employees will be provided with a written contract in accordance with the format prescribed by PRC national law. Specific targets for the employment of women have been included in the GAP. BPMO and the Baise Development & Investment Group (the project implementing agency) will monitor contractors’ compliance with these project assurances in conjunction with the local Baise city departments of labor and human resources, and civil affairs.

103. The project will reduce exposure to an increased risk of HIV/AIDS/STIs by (i) requiring civil works contractors, with the assistance of the Baise Center for Disease Control, to raise awareness of HIV/AIDS/STIs for construction workers; and (ii) collaborating with the Center for Disease Control to ensure that their HIV/AIDS awareness activities are extended to communities in the vicinity of any camps for construction works during the period of construction. BPMO will monitor and report on progress and results.

104. The BPMO safeguard and gender staff will ensure sex-disaggregated baseline and survey data will be collected, that the SAP is implemented, and that implementation of targets and the SAP will be monitored. The project implementation consultant will include a gender/social specialist (8 person-months) to mentor the BPMO staff as necessary, and to facilitate achievement of the project’s gender and social development objectives. The SAP will be monitored during ADB review missions and supervision supported by the ADB Senior Social Development Specialist. The full SAP is in Annex 2; costs are itemized and included in the project budget.

ANNEX 2: SOCIAL ACTION PLAN

Social Benefits Agencies Assistant Funding Monitoring Stage and Risks Actions Responsible Agencies Time Source Indicators 1. Local At least three public consultation BPMO, MDRC, 2012, Design costs, 1. Number of residents’ meetings will be held with design traffic ongoing paid by the consultation concerns on community members in each agency bureau, owner meetings, environment section of road network to make DNC number of and safety are suggestions on road design (i.e., CNY15,000 participants, not pedestrian access, lighting, comments of incorporated speed bumps, etc.). APs into the road 2. Optimization of network design project design (muddy road, and change of lack of scope streetlamps, 3. Satisfaction of etc.). local residents 2. Residents 1. At least three consultation BPMO, MDRC, 2012, Design costs 1. Number of want the meetings will be held on function design urban ongoing paid) by the consultation Design Stage community and location of the community agency construction owner; meetings, service center center. Meetings should address bureau, number of to be nearby the functions and location. DNC CNY15,000 participants, small exercise 2. Increase small exercise comments of and leisure apparatus and leisure chairs and APs places. tables in the community. 2. Optimization of Consultation with community on project design the kind of exercise equipment and change of and location. scope 3. Satisfaction of local residents 1. Due to the The cut-off date of the project Municipal MLRB, 2013 Own Cut-off date increase of needs to be fixed as soon as government BPMO operational illegal buildings possible to avoid the increase of funds of in the area, illegal buildings. agencies compensation concerned.

Stage fees for house Resettlement demolition will Budget. Implementation be increased. 2. Flying dust, 1. Set up a vehicle washing station Construction MEPB, 2013- Included in 1. Establishment of

Social Benefits Agencies Assistant Funding Monitoring Stage and Risks Actions Responsible Agencies Time Source Indicators wastewater, at each vehicle access of the agency housing 2018 EMP grievance noise, and construction site; sprinkle water construction redress traffic on the construction site to bureau, mechanism obstruction reduce flying dust. BPMO, 2. Number and during 2. Employ low-noise construction DNC dispositions of construction will techniques; schedule grievances bring construction based on inconvenience surroundings, e.g., avoiding to residents. teaching hours for schools and rest hours for residential quarters; prohibit overnight construction. 3. Set up conspicuous warning signs on points with potential risks.

(These actions are also included in the EMP). 1. Perform construction in stages to Construction Traffic 2013– Included in 1. Mode and reduce the impact on residents’ agency bureau, 2018 EMP frequency of traffic. BPMO, publicity 2. Conduct publicity (poster boards, DNC 2. Numbers and leaflets, public meetings, etc.), positions of on construction information and different types of schedule in diversified forms, signs and traffic arrangements during construction. 3. Set up guardrails and signs on main roads, and signs at construction site entrances and on nearby roads. 3. During the early Residents will be notified in Waterworks BPMO, 2015 Own Release of water operation stage advance to make preparations. DNC operational outage/ of the new funds of preparation sewer network, agencies notices water outage concerned may occur temporarily.

Social Benefits Agencies Assistant Funding Monitoring Stage and Risks Actions Responsible Agencies Time Source Indicators 1. The lack of 1. Environmental awareness BPMO, DNC MEPB 2013– Own 1. Frequency, environmental program initiated targeting at the 2017 operational form, and venue awareness of residents in the project area, funds of of publicity and residents may especially those nearby the MEPB; training; number result in Youjiang River and Dongsun Budget for of participants secondary Stream, will continue for 3 years community 2. Establishment, water pollution. after the completion of the development composition, project. and and routine 2. Give community training on upgrading activities of the water conservation, civil component community wastewater treatment and waste management disposal, and prevention of team, evaluation waterborne diseases. CNY200,000 of management 3. DNC reorganized will strengthen performance supervision over routine living behavior, and reduce or avoid secondary water pollution; include female members in the team.

2. Address road 1. Conduct road safety sessions for Traffic bureau BPMO, 2018 Own 1. Frequency, safety concerns local residents (including DNC operational form, and venue of local children and in areas around funds of of publicity and residents. schools or other areas with high traffic bureau; training; number pedestrian access). budget for of participants

Operation and Management Stage 2. DNC reorganized will assist in community 2. Establishment, traffic management and public development composition, awareness on road safety at and and routine main at key crossings to upgrading activities of the maintain traffic safety; include component community female members in the team. management team, evaluation CNY200,000 of management performance 3. Satisfaction of residents of DNC with traffic signs and safety

Social Benefits Agencies Assistant Funding Monitoring Stage and Risks Actions Responsible Agencies Time Source Indicators protection measures 3. The responsible Establish a public green space Municipal BPMO, 2015– Own Establishment of entity for the management and maintenance administration DNC 2017 operational an effective management mechanism for the project area bureau funds of management and and to define the responsibility, and municipal maintenance maintenance of begin to maintain public green administration mechanism for public green spaces as soon as possible. bureau green spaces spaces has not been defined. CNY50,000 1. Implement the 1. Provide full compensation to the Owner MLRB, LA 2013– Included in 1. Resettlement REMDP and APs, including all affected EM. & HD 2020 the project’s plan conduct M&E 2. The rural housing resettlement agency, resettlement 2. Internal and site should be selected and the external costs external resettlement program developed M&E resettlement in consultation with the APs, agency, M&E reports particularly EM residents (80%). DNC 3. Take effective income and livelihood restoration measures, and conduct resettlement activities in conjunction with local

skills training activities, covering all affected EM. 4. Permanently acquired and temporarily occupied land will be compensated for according to Other Risks state laws and local policies. EM should have the same compensation policy. 2. Address labor 1. 30% of jobs generated by the Contractors, Municipal 2013– Included in 1. Applicable and health project will be offered to local owner labor and 2018 EMP provisions in issues during residents. social tender construction. 2. Local materials will be used security documents where possible and local bureau, CNY20,000 2. Frequency and contractors will be prioritized. women’s venue of 3. Comply with the Labor Law, federation, publicity and ensure use of core labor center for training on standards, and ensure the health disease infectious

Social Benefits Agencies Assistant Funding Monitoring Stage and Risks Actions Responsible Agencies Time Source Indicators and safety of employees. control and disease and HIV 4. Include a clause on the inclusion prevention, prevention and of HIV/AIDS awareness training DNC, treatment, for construction workers in the CDC number of tender documents for civil works. participants, 5. Give diversified publicity and quantity of training on the prevention and contraceptive treatment of infectious diseases devices and HIV to construction workers distributed and nearby residents; and distribute publicity materials and condoms to construction workers. 3. Ability to pay 1. If the water, wastewater Municipal Municipal 2015– Government 1. Time, venue, treatment, or waste disposal prices civil affairs 2017 Finance and frequency rates are to be adjusted, a price bureau, bureau, Price Bureau of price hearing, hearing will be held, and 30% of BPMO DNC number, and residents’ representatives will CNY10,000 sex of come from MLSS households participants and 30% will be women. 2. Number and 2. Maintain existing subsidies for BPMO Municipal 2015– Government proportion of MLSS recipients and vulnerable finance 2017 Finance representatives households. bureau, civil Price Bureau of MLSS affairs households and bureau, women DNC 3. Preferential 3. Disclose the fee collection policy BPMO Municipal 2015– Government policies and rates to the public right after broadcast 2017 Finance 4. Mode and time it is issued, through TV, and Price Bureau of policy newspapers, poster boards, television disclosure leaflets, etc. bureau, CNY10,000 newspapers AP = affected person, BPMO = Baise project management office, CDC = center for disease control, DNC = Dongsun Neighborhood Committee, EM = ethnic minority, EMP = environmental management plan, LA & HD agency = land acquisition and house demolition agency, M&E = monitoring and evaluation, MDRC = Municipal Development and Reform Commission, MEPB = Municipal Environmental Protection Bureau, MLRB = Municipal Land and Resources Bureau, MLSS = minimum living standard scheme.

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION

A. Project Design and Monitoring Framework

105. The design and monitoring framework (DMF) for the project has been agreed between Asian Development Bank (ADB), and the DMF (Table 1) forms the foundation against which project success will be judged.

106. While the high level project design (impact and outcome) are unlikely to change during the course of project implementation, changes are likely to occur at the output and inputs levels of the DMF. The continued relevance of the DMF and specific targets will be monitored as part of the project supervision and the DMF will be updated accordingly.

Table 1: Project Design and Monitoring Framework Performance Targets and Data Sources and Assumptions and Design Summary Indicators with Baselines Reporting Mechanisms Risks Impact By 2025 (baseline 2013) Assumptions

Development of Average annual household Baise Development and Dongsun Urban Dongsun subdistrict income in Dongsun increased Reform Commission Design Plan and of Baise into an from CNY9,160 to Dongsun Control environment-friendly, CNY18,320 Plan are inclusive, and livable Sample household implemented by city Residents with positive survey Baise. perception of the environmental quality along Development of riversides in Dongsun residential and improving from 18% to 60% commercial areas follows investment Improved wastewater Environmental in infrastructure and collection ensures water monitoring data of Baise community facilities. quality in local river sustained EPB at Class III

Outcome By 2018 (baseline 2013) Assumptions

Improved urban Water quality in Dongsun Baise Municipal The BMG infrastructure and stream improved from class 5 Environmental implements public services in Dongsun or worse to class 3 or better Protection Bureau awareness programs to safeguard water Nonrevenue water in Baise Municipal quality after Dongsun decreased from Environmental improvements to the 22% to 17% Protection Bureau Dongsun Stream.

Flooding reduced to a 2% Baise Municipal probability Construction Bureau Capital improvements are Road density increased from Baise Municipal made as per the 2,000 linear m2/km to 3,500 Construction Bureau project m2/km2 implementation plan.

Wastewater collection and Baise Municipal treatment service coverage Construction Bureau

Performance Targets and Data Sources and Assumptions and Design Summary Indicators with Baselines Reporting Mechanisms Risks increased from none to 80% Risk of Dongsun’s population Improvements in urban services and infrastructure do not align with public expectations. Outputs By 2017 (baseline 2012) Project completion Assumption certificate issued by the 1. Urban river 8.2 km of new or improved Environmental The BMG remains rehabilitation and flood retention embankment Protection Bureau of committed to flood control and 155,407 m2 of new public Baise providing adequate open space on the waterfront counterpart financing Project completion to establish certificate issued by the demonstration urban At least 30% of unskilled Housing and Urban– communities. construction jobs generated Rural Construction by the river subcomponent Commission of Baise

being for women City Risks

Protection completion Project coordination 2. Urban transport 11.3 km of new or certificate issued by the and synchronization and associated rehabilitated urban roads with Housing and Urban– of agencies is infrastructure associated infrastructure: Rural Construction lacking. (10.20 km of water supply Commission of Baise pipelines, 9.85 km of storm City Land acquisition water drainage lines, and approvals and 7.95 km of sewerage implementation are pipelines delayed.

The local population Four bridges Baise Municipal Social does not receive Affairs Bureau future benefits At least 30% of public welfare commensurate with jobs (e.g., road maintenance, their contribution to greening, and landscaping) the project. generated by the transportation subcomponent Costs are higher being for women and other than foreseen. vulnerable groups

Performance Targets and Data Sources and Assumptions and Design Summary Indicators with Baselines Reporting Mechanisms Risks 3. Community Strengthened Dongsun Project completion upgrading and community organization certificate issued by the development including representation of BMG residents registered as both urban and rural, and at least 40% of committee members being women.

Market, community center,

and solid waste transfer

station constructed and being

used by local residents,

including women

Women vendors with use rights to at least 50% of leasable area in the market.

4. Capacity building A 3-year (2014–2017) training Monitoring reports on and project plan developed and institutional development management implemented, with a target of including number of staff 50% participation by women trained, areas of training, and strengthened organizations and procedures

Activities with Milestones Inputs

1. Output 1: Urban river rehabilitation and flood control ADB: $80.00 million 1.1 Design facilities, acquire land, and procure works by mid 2015. loan from ordinary 1.2 Construct and commission facilities by 2016. capital resources

2. Output 2: Urban transport and associated infrastructure BMG: $89.50 million 2.1 Design facilities, acquire land, and procure works by mid 2015. from counterpart 2.2 Construct and commission facilities by 2018 financing 3. Output 3: Community upgrading and development 3.1 Design facilities, acquire land, and procure works by 2017. Total: 169.50 million 3.2 Construct and commission facilities by 2018 3.3 Strengthen the Dongsun Neighborhood Committee by 2015. 3.4 Policy and regulatory development by 2017

4. Output 4: Capacity building and project management 4.1 Recruit and mobilize implementation consultants by Q4 2014. 4.2 Develop a 3-year training plan by Q4 2013. 4.3 Undertake training until 2016. 4.4 Executing agency and implementing agency monitor the EMPs, GAP, REMDP, and SAP by 2013. 4.5 Monitoring and reporting on the implementation of the EMP, GAP, SA P, and REMDP by 2017. 4.6 Conduct project-specific surveys to measure results for the mid-term review mission in Q2 2016, and project completion report mission in Q1 2019. ADB = Asian Development Bank, BMG = Baise Municipal Government, EMP = environmental management plan, EPB = Environmental Protection Bureau, GAP = gender action plan, km = kilometer, km2 = square kilometer, m = meter, m2 = square meter, REMDP = resettlement and ethnic minority development plan, SAP = social action plan. Source: Asian Development Bank.

B. Monitoring

107. Project performance monitoring. A draft project performance management system (PPMS) has been prepared and agreed in conceptual terms between ADB and BMG. The detailed PPMS is in Appendix 3 of this manual. The PPMS indicators, their relevance, and monitoring practicalities will be discussed with BPMO, BDIG, and other project beneficiaries during project implementation. Disaggregated baseline data for output and outcome indicators gathered at the start of project implementation and progress/performance indicators will be reported semiannually through the BMG's half yearly progress reports and verified after each ADB review mission. These half-yearly reports will provide information necessary to update ADB's project performance reporting system. At the start of implementation of the project, BPMO and BDIG, with the assistance of the project implementation consultant, will develop comprehensive PPMS procedures to generate data systematically on the inputs and outputs of the components, as well as the indicators to be used to measure the project impact taking into account the components’ scope. BPMO on behalf of BMG will (i) refine the PPMS; (ii) confirm achievable targets; (iii) finalize monitoring, recording, and reporting arrangements; and (iv) establish systems and procedures, no later than 6 months after loan effectiveness. BPMO supported by BPMO will be responsible for monitoring and reporting on the performance of the project. The basis for performance monitoring will be the DMF. The DMF identifies the performance targets for the impact, outcomes, and outputs of the project. By collection of data from the sources identified in the DMF, BPMO will be able to report on a semiannual basis the performance of the project. Specific reporting requirements will be set out in the agreement between ADB and the government. BPMO supported by BDIG will collect the data, calculate the indicators, analyze the results, and prepare a brief report describing the extent to which the project is generating the intended outputs and outcomes in the project area, as well as the broader impact the project is having on economic development.

108. Compliance monitoring. The compliance status of loan and project covenants will be reported and assessed through the semiannual progress reports and verified by ADB supervision missions. Compliance monitoring includes safeguards monitoring to ensure compliance with ADB’s Safeguard Policy Statement (2009) as set out below:

a. Environment

109. Internal environmental monitoring and inspection. Each contractor will assign from its own staff officers for its internal environmental inspection and monitoring during construction; and the operation and management units shall be responsible for their internal inspection and monitoring during the operation of project facilities. Internal monitoring will be conducted by the contractors 40 and reported to BDIG and BPMO monthly during the construction period.

110. Environmental impact monitoring. BPMO will appoint the local environmental monitoring center (EMC) to conduct regular environmental impact monitoring. Monitoring requirements are defined in Appendix 2 (Table EMP-4), including the parameters to be monitored, the numbers and locations of monitoring points, as well as monitoring frequencies and durations. The EMC will prepare and submit to BPMO and BDIG quarterly environmental monitoring reports during the construction period.

40 Contractors may also contract licensed environmental monitoring centers to conduct internal environment impact monitoring during construction.

111. Environment management plan compliance verification. The environmental specialist on the project implementation consulting team, on behalf of BPMO, will assess and verify internal monitoring conducted by the contractors, environmental impact monitoring conducted by the EMC, as well as the contractors’ and BDIG compliance with the environmental management plan (EMP) during project implementation and operation. The results of the EMP compliance verification will be used to assess (i) the extent and severity of actual environmental impacts against the predicted impacts and baselines before the project implementation; (ii) performance or effectiveness of the environmental mitigation measures or compliance with pertinent environmental standards and regulations; (iii) trends in impacts; (iv) overall effectiveness of the EMP implementation; and (v) the need for additional mitigation measures and corrective actions if noncompliance is observed. The consultant will discuss the verification results with BMG, suggest corrective actions, and reflect monitoring results and EMP compliance observations in the environmental monitoring and EMP progress reports, to be submitted annually by BPMO to BMG and ADB for review, approval, and disclosure.

b. Involuntary Resettlement and Ethnic Minority Development

112. Social safeguard implementation will be monitored internally and externally. Monitoring methodologies are specified in the resettlement and ethnic minority development plan (REMDP). BDIG will carry out internal supervision and monitoring to ensure compliance with the provisions of the REMDP. BPMO and BDIG have agreed to a set of supervision milestones with ADB, to ensure timely and effective implementation of resettlement activities. An independent monitoring agency under contract to BPMO will carry out external monitoring and evaluation. This agency will be engaged prior to the commencement of land acquisition so they can conduct baseline surveys before people are displaced. External monitoring reports will be prepared every 6 months during implementation and annually for 2 years after completion of REMDP actions. These reports will be submitted to ADB and BPMO, and will be uploaded to the ADB website and disclosed to affected persons.

c. Project Performance Management System Monitoring of Social Actions

113. At the start of project implementation, BMG, BPMO, and BDIG with the assistance of the project implementation consultant (PIC), will develop comprehensive PPMS procedures to generate data systematically on the inputs and outputs of the project components, and verify the indicators to be used to measure social and economic project impacts. They will (i) refine the draft PPMS, (ii) confirm achievable targets, (iii) finalize monitoring and recording arrangements, and (iv) establish systems and procedures. Key indicators in the social action plan (SAP), gender action plan (GAP), and the REMDP will be incorporated into the overall PPMS.

114. A monitoring plan for the agreed performance indicators will be developed to measure and monitor benefits as well as anticipated risks and possible negative impacts from the project components. The BPMO safeguard staff will use the monitoring results, with the assistance of the project PIC resettlement and social/gender specialists, to assess performance relative to the PPMS and DMF targets. BPMO safeguard staff will be responsible for coordination of the internal social and safeguard monitoring. The PIC resettlement and social/gender specialists will provide on-the-job training for BPMO safeguard staff as required. They, in turn, will train and supervise community members to facilitate the data gathering for the internal monitoring process. If necessary, the PIC resettlement and social/gender specialists will assist with this training. The BPMO safeguard staff and the PIC resettlement and social/gender specialists will be expected to undertake a number of field visits when monitoring is being carried out.

C. Evaluation

115. ADB and the government will review project implementation at least once a year. In addition, ADB and the government will undertake a comprehensive midterm review 2 years after the start of project implementation to have a detailed evaluation of the scope, implementation arrangements, resettlement, achievement of scheduled targets, and progress on the agenda for policy reform and capacity-building measures. Feedback from the PPMS outputs will be analyzed. Within 6 months of physical completion of the project, BPMO will submit a project completion report to ADB.41

D. Reporting

116. BPMO will provide ADB with (i) semiannual progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions, (c) updated procurement plan, and (d) updated implementation plan for next 12 months; and (iii) a project completion report within 6 months of physical completion of the project.

117. BMG, through BPMO, has agreed on the following reporting commitments: (i) submission of semiannual progress reports during project implementation; (ii) submission of periodic reports on the progress of safeguards monitoring, i.e., REMDP activities (semiannual), environment plan implementation (annual), and SAP and GAP implementation; (iii) submission of project completion report 6 months after completion of the project; and (iv) submission of audited project accounts and financial statements 6 months after the end of each fiscal year. PPMS data will be incorporated in the semiannual progress reports. The reporting schedule is in the table below.

Reporting Schedule Report Reference Due Time o PPMS Project Agreement, Schedule, paragraphs • Develop comprehensive PPMS No later than 6 months after procedures loan effectiveness • Reporting of baseline and progress Semiannual, together with the data including environmental semiannual project progress management plan reports o Semiannual Project Progress Reports Project Agreement, Semiannual, within 1 month Schedule, Article after the end of each 6 months (July and January) o Audited Project Accounts and Financial Project Agreement, Not later than 6 months after Statements Auditor's Report (including Schedule, Article the closure of fiscal year Auditor's opinion on the use of the (June) imprest account and statement of expenditures) o REMDPMonitoring Project Agreement, Schedule, paragraphs • Internal monitoring reports for the Summarized in the

41 Project completion report format is available at: http://www.adb.org/Consulting/consultants-toolkits/PCR-Public- Sector-Landscape.rar

Report Reference Due Time executing and implementing agencies semiannual project progress reports until the project completion report is issued. • REMDP Implementation Phase – Baseline report and then External Monitoring Report twice a year • Post-REMDPPhase – External Annual reports for 2 years Monitoring Report after the resettlement activities completion • Resettlement Completion Report within 3 months after project completion o Other Social Monitoring Project Agreement, Included in the semiannual Schedule, paragraphs project progress reports • Reporting on gender action plan implementation • Reporting on social action plan implementation o Environmental Reporting Project Agreement, Schedule, paragraphs, EMP, Table EMP.8 • Environmental impact monitoring Quarterly reports during reports by EMC to BPMO and BDIG construction • Environmental monitoring and EMP Annual reports until project progress reports by BPMO to ADB Completion Report is issued o Project Completion Report Project Agreement, Not later than 3 months after Schedule, Article the physical completion of the project ADB = Asian Development Bank, BDIG = Baise Development & investment Group, BPMO = Baise project management office, EMC = environmental monitoring center, EMP = environmental management plan, REMDP= resettlement and ethnic minority development plan, PPMS = project performance management system.

E. Stakeholder Communication Strategy

118. Project information will be communicated through public consultation, information disclosure mechanism in ADB’s and government’s websites, meetings, interviews, focus group discussions, and community consultation meetings, in accordance with the requirements of ADB’s information disclosure policy.

119. Environment. Meaningful consultation, participation, and information disclosure was conducted during feasibility study and initial environmental examination (IEE). Information disclosure and public consultation included newspaper disclosure; informal communication with key stakeholders, including residents, local authorities, and sector specific institutions and authorities; a questionnaire survey; and wider stakeholder meetings attended by affected people and other concerned stakeholders. The project IEE was disclosed on ADB’s website. A grievance redress mechanism has been defined to prevent and address community concerns, reduce risks, and assist the project to maximize environmental and social benefits. In consultation with BMG, BDIG, and potentially affected people, it was agreed that BPMO will establish a complaints center. Contact details for the complaints center will be publicly disseminated on information boards at all construction sites and in local community centers. When a complaint arises, people will call the complaint center which will initiate the grievance redress mechanism until the issues are solved, following the procedure defined in the EMP.

120. Resettlement and ethnic minority development plan. Affected households and urban and rural (Zhuang) communities were involved in the project impact and socioeconomic surveys. Through meetings, interviews, focus group discussions, public consultation workshops, and community consultation meetings, local representatives participated in the planning and concerns have been integrated into the REMDP. Before implementation, BPMO, BDIG, and other relevant leaders will further discuss and consult with the affected persons’ representatives the impacts on every community and the detailed rehabilitation measures to ensure affected persons’ interests are protected, including employment opportunities to enhance the affected persons’ livelihoods as a result of project implementation. BPMO and the city governments have disclosed the REMDP in city and local community offices and made available to affected people. The REMDP was posted on the ADB website on xxxxx. REMDP information booklets have been distributed to affected households. This booklet contains information such as the affected project area, proposed land acquisition and relocation implementation progress and procedure, compensation standards for land acquisition, relocation assistance, and livelihood restoration strategy and measures for ethnic minorities. BDIG as the principal implementing unit will establish a project resettlement unit for supervision of implementation, continued public consultation, monitoring of progress, and response to grievances. The grievance redress procedures will be established and explanations have been included in the resettlement information booklets.

121. Public disclosure of all project documents have been undertaken through the executing agency and on the ADB website including the project information document, DMF, project IEE, EMP, REMDP, and the report and recommendation of the President. Social and environmental monitoring reports will be disclosed to affected people, and feedback will be sort from them to improve project implementation.

122. Consultations with communities will take place throughout the project cycle. Procedures for this consultation are outlined in the project IEE, EMP, REMDP, SAP, and GAP. These procedures are intended to ensure that women, and Zhuang vulnerable groups are not only included in the communication involving the community, but have the opportunity to participate effectively.

123. The above plans also document key information dissemination and consultative activities to be implemented. The community involvement processes incorporated in the plans are intended not only to inform people about the project or specific activities related to its preparation and implementation, but also to enable people in the community to ask questions, make suggestions, state preferences and express concerns. BPMO safeguard staff will be responsible for ensuring that information dissemination and consultative activities are carried out in accordance with the project EMP, REMDP, SAP, and GAP.

X. ANTICORRUPTION POLICY

124. The Asian Development Bank (ADB) reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the project.42 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and all project contractors, suppliers, consultants, and other service providers. Individuals/entities on ADB’s anticorruption debarment list are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the project.43

125. To support these efforts, relevant provisions are included in the loan agreement, ADB’s relevant guidelines and the bidding documents for the project. ADB’s Anticorruption Policy (1998, as amended to date) was explained to and discussed with the executing agency, Baise project management office (BPMO), and implementing agency. Consistent with its commitment to good governance, accountability, and transparency, ADB reserves the right to investigate any alleged corrupt, fraudulent, collusive, or coercive practices relating to the project. To address the risks on governance and corruption related to procurement of civil works, relevant provisions of ADB’s Anticorruption Policy are included in the loan regulations and the bidding documents for the project. In particular, all contracts financed by ADB in connection with the project shall include provisions specifying the right of ADB to audit and examine the records and accounts of Baise Municipal Government (BMG) and all contractors, suppliers, consultants, and other service providers as they relate to the project. BMG has indicated its commitment to promote good governance and establish a corruption-free environment under the project. Further to this, a number of good governance and anticorruption provisions have been included in the loan and project agreements. These include the requirements for BMG to (i) involve the agencies responsible for oversight of each implementing agency in bidding and construction to enhance construction quality control and supervise effective work such as the construction bureau and roads/communications bureau; (ii) introduce a dual-signing system in which the civil works contract winner also signs an anticorruption agreement with the employer;44 (iii) periodically inspect the contractors’ activities related to fund withdrawals and settlements; and (iv) engage the project management consultant to support BPMO, the Baise Development & Investment Group (BDIG), and the project management team to ensure good governance, accountability, and transparency in project operations. BMG will, in consultation with relevant provincial departments and supported by central government ministries, update rules and regulations on local government, corporate governance, and anticorruption measures, and enhance transparency of local government and public utility operations. Pertinent loan covenants include:

126. BMG shall, and shall cause the implementing agency to, comply with ADB’s Anticorruption Policy. BMG and BDIG agree (i) that ADB reserves the right to investigate any alleged corrupt, fraudulent, collusive, or coercive practices relating to the project; and (ii) to cooperate fully with and to cause each implementing agency to cooperate fully with any such investigation and to extend all necessary assistance, including providing access to all relevant books and records, as may be necessary for the satisfactory completion of any such investigation. In particular, BMG shall (i) conduct periodic inspections on the contractors’ activities related to fund withdrawals and settlements; and (ii) ensure that all contracts financed by ADB in connection with the project include provisions specifying the right of ADB to audit and

42 Available at: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf 43 ADB's Integrity Office web site is available at: http://www.adb.org/integrity/unit.asp 44 Employer will be the implementing agency or county-level agency.

examine the records and accounts of the PMO, BDIG, and all contractors, suppliers, consultants, and other service providers as they relate to the project.

127. BMG shall also undertake the following anticorruption actions: (i) involve full-time officials from the Baise Discipline Investigation Bureau in bidding, the award of contracts and implementing construction contracts; (ii) introducing a dual-signing system, in which a civil works contract winner signs an anticorruption contract with the employer when it executes the civil works contract; and (iii) periodically inspecting the contractor’s fund withdrawals and settlements.

128. BMG shall, and shall cause BDIG to, undertake the following anticorruption actions: (i) periodically inspect the contractor’s activities related to fund withdrawals and settlements; (ii) engage the consultants to support the PMO to ensure good governance, accountability, and transparency in project operation; (iii) in consultation with relevant central government ministries update rules and regulations on local and corporate governance and anticorruption; and (iv) disclose a summary of the project financial statements and project accounts, and tracking of procurement contract awards on the relevant official website of BDIG.

129. In order to systematically identify governance risks and mitigate their effects a risk assessment and management plan in accordance with ADB’s Governance and Anticorruption Action Plan II policy has been prepared and is summarized in linked document 15 (Appendix 2 of the report and recommendation of the President).

XI. ACCOUNTABILITY MECHANISM

130. People who are, or may in the future be, adversely affected by the project may submit complaints to the Asian Development Bank’s (ADB) Accountability Mechanism. The Accountability Mechanism provides an independent forum and process whereby people adversely affected by ADB-assisted projects can voice, and seek a resolution of their problems, as well as report alleged violations of ADB’s operational policies and procedures. Before submitting a complaint to the Accountability Mechanism, affected people should make a good faith effort to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism.45

45 For further information see: http://www.adb.org/Accountability-Mechanism/default.asp.

XII. RECORD OF PAM CHANGES

131. All revisions/updates during course of implementation should be retained in this Section to provide a chronological history of changes to implemented arrangements recorded in the PAM.

APPENDIX 1. DRAFT TERMS OF REFERENCE AND BUDGETS FOR CONSULTING SERVICES

I. Advance S upport

A. Scope of Work

The specialists will assist the Baise PMO and the implementing agencies (IA) in carrying out project pre-implementation activities, and provide hands-on-training in project operations, specifically, procurement and contracting operations following ADB procedures. The specialists will also assist the Baise PMO and the IA in carrying out project, pre-implementation activities, and provide hands-on training in project operations, specifically, in the preparation, updating of resettlement plans to ensure that they meet the ADB's involuntary resettlement compliance requirements.

1. Procurement and Project Management Specialist

The specialist will provide advice on establishing project management systems and give support to the PMOs and IAs to ensure an effective, efficient, and transparent project implementation. The scope of services includes but not limited to the following:

(i) Advise and assist the Baise PMO, the IA in designing and developing specific and standard documentation systems (including the associated templates) for project progress reporting (from IA to city PMO and city PMO to ADB) and for contract packages under international competitive bidding (ICB) and national competitive bidding (NCB) procedures, which meet the requirements as stipulated in the Loan and Project Agreement of the project; (ii) advise and assist the PMO and IA on technical matters including review of detailed designs of the components, and the preparation of technical specifications; (iii) advise and assist the PMO and IA on all ADB-related operational and procedural matters to ensure that all the project activities are planned, prepared and implemented in accordance with ADB policies, procedures and guidelines; (iv) advise and assist the PMO and IA in updating the workplan for various project activities including procurement plan; (v) advise and assist the PMO and IA in reviewing procurement documents (tender documents for ICB and NCB, bid evaluation reports, and draft contracts) to ensure that the documents are in accordance with ADB procedures, guidelines and standards.

2. Social and Resettlement Specialist

The specialist will provide advice on establishing project resettlement management systems and give specific support to the PMO and IA to ensure an effective, efficient, and transparent resettlement implementation. The scope of the services includes, but is not necessarily limited to, the following:

(i) advise and assist the Baise PMO, IA in finalizing the resettlment and ethnic minority development plan (REMDP) based on final design and design and monitoring framework of APs; ensure the final REMDP is submitted for ADB approval prior to commencement of any land acquisition and resettlement activities; reviewing and implementing the resettlement plan;

(ii) advise and assist the PMO and IA on ADB-related operational and procedural matters to ensure that all the resettlement activities are planned, prepared, and implemented fully in accordance with the relevant PRC regulations and ADB policies and guidelines; (iii) provide advice on the actions needed to implement and ensure compliance with the approved REMDP; (iv) assist in the initial set up of internal monitoring systems for RP and REMDP implementation; and (v) assist PMO in recruiting the external monitor and update the terms of reference as necessary.

II. L oan Implementation

A. Scope of Work

1. The capacity building consultant will work primarily with the Baise project management office (BPMO), the Baise Municipal Government (BMG) (as project executing agency), and the Baise Development & Investment Group (BDIG) (as project implementing agency), but also with other agencies as required, and especially the designated operation and maintenance units and local community organizations, providing advice, assistance, and where necessary, training on the following.

1. Project Management and Implementation Support46

(i) The development of comprehensive project implementation plans and procedures for monitoring and control. (ii) The introduction of document control, design supervision, and contract management systems for the project. This should utilize and adapt as necessary the arrangements set up for the earlier Asian Development Bank (ADB) - funded urban environmental projects in Guangxi Zhuang Autonomous Region. (iii) The review of designs, drawings, and bidding documents, including the identification of potential technical problems and suggested means of resolving these, including the incorporation of environmental mitigation measures where appropriate. (iv) Ensuring that bidding documents require contractors to (a) provide equipment operating and maintenance manuals in Chinese; (b) ensure that training in equipment and maintenance is adequately provided for; and (c) meet all relevant stipulations in the project agreement and project administration manual, including record-keeping, monitoring, and reporting. (v) Provide training in international competitive bidding, national competitive bidding, and international shopping contract procedures in accordance with ADB's Procurement Guidelines (2010, as amended from time to time). This training to extend to practical measures that should be taken to prevent corruption and malpractice in the procurement process, including the need for transparency, independence, professionalism and effective supervision. (vi) Exercising construction supervision and management including: (a) approval of construction methods, (b) ensuring work is undertaken according to the intent of contract specifications, (c) control over construction quality, (d) adherence to contract work programs and recovery of slippage, (e) site health and safety

46 The international team leader, national team leader, and the environment specialist will have Engineering expertise related to urban infrastructure and roads.

procedures, (f) record keeping systems to protect client interests in event of claims, and (g) claims assessment and determination. (vii) Provide advice and support on asset commissioning and handover, including a review of documentation provided by the contractors and that they have fully discharged their training obligations. (viii) Provide advice and training on the establishment and operation of project accounting and disbursement procedures. (ix) Provide advice and training on project financial controls, reporting and audit. (x) Establish a project performance management system (PPMS) including its detailed design, data collection and analysis procedures, and the provision of training in its use. In order to avoid duplication of resources the outcome of this work should as far as possible be compatible with the People’s Republic of China (PRC) Ministry of Finance project reporting system as well as related local information gathering and reporting systems. (xi) Assisting in updating the REMDP based on final design and detailed measurement survey and census of the affected persons. (xii) Provide advice and support in the preparation of internal REMDP monitoring reports. (xiii) Undertake a review of the independent (external) REMDP monitoring reports. Assist the BPMO to formulate and implement actions necessary to ensure compliance with approved resettlement plans and provide advice and support on their implementation. (xiv) Ensure through technical advice, training, and independent verification that requirements of the agreed environmental management plan (EMP) for the project are fully implemented during project implementation and operation. This will include, but not be limited to: an assessment of the project’s environmental readiness prior to implementation based on the readiness indicators defined in the EMP; the update of the EMP to reflect detailed design; the definition of detailed environment monitoring and reporting plans, including appointment of a licensed institute to conduct environmental impact monitoring; and the establishment of a grievance redress mechanism. (xv) Ensuring that requirements of the agreed social action plan (SAP) and gender action plan (GAP) for the project are fully integrated into project monitoring systems. Provide advice on the implementation of the SAP and GAP as required. (xvi) Organizing and providing training on the skills necessary for the effective implementation of the social action plan, gender action plan, community development action plan, and REMDP in accordance with ADB requirements. (xvii) The development of reporting procedures to ADB, including those covering construction progress, withdrawal of funds, and payment to contractors and suppliers. (xviii) Assist the PMO to prepare the periodic project progress reports, including semiannual social/gender and REMDP reports, and annual environmental monitoring reports, for submission with a quality acceptable to ADB. (xix) Prepare an action plan to strengthen post-completion sustainability of the project and refer to international best practices including the ADB Independent Evaluation Department study on post-completion sustainability.47

47 Post-completion Sustainability of Asian Development Bank-Assisted Projects. http://www.adb.org/documents/post- completion-sustainability-asian-development-bank-assisted-projects

2. Capacity Building

a. Community Development

2. The objective of the project’s community upgrading and development component is to support the emergence of a vibrant, inclusive community in which residents have access to housing, employment, and services. An underlying principle is residents must participate in the planning and implementation of the redevelopment process. The consultant will strengthen the existing Dongsun Neighborhood Committee to be able to represent the entire population of Dongsun in the area rehabilitation process. This will involve strengthening the capacity of the organization through technical assistance as well as direct financial support for operations. In addition, technical assistance will be provided to BMG for development of the policy regulatory framework for community development.

3. The consultant will carry out the following tasks:

(i) Assess the existing capabilities of Dongsun Neighborhood Committee (DNC). (ii) Prepare and implement an institutional development plan that focuses on administration, financial management, community outreach, formulation of development plans, and negotiation. (iii) Through a combination of training, technical assistance, and domestic study tours, strengthen the ability of DNC to represent local residents in dealings with BMG related to resettlement, housing development, local economic development, and future urban development.

4. In addition, the consultant will provide technical assistance to Baise Municipal Development and Reform Commission to improve the policy and regulatory framework for community development and local area rehabilitation. The intention is to define systems and procedures for greater community participation in the planning and implementation of such projects. This may include redevelopment plans being prepared on the preferences and priorities of local residents that are consulted early in the planning process. These inclusive participation systems will also be applied to the local economic develop process in Dongsun, as there is still scope for defining the specific economic sectors and types of economic activities to be promoted in Dongsun. The consultant will carry out the following tasks:

(i) Assess the current policy and regulatory framework for local area revitalization, including laws and regulations related to resettlement, and local economic development. (ii) Identify obstacles to the implementation of a community-based approach in these areas. (iii) In close collaboration with DRC and other relevant departments, prepare high-level designs for new systems and procedures that will facilitate greater community participation and a more inclusive development process, particularly for rural residents that are predominantly Zhuang. (iv) Provide technical assistance to BMG to test these new systems on a pilot basis in Dongsun over the life of the project.

b. Environmental Site Assessment and Remediation

5. The consultant will provide technical assistance and training to BDIG and BEPB in remediation of contaminated sites with a view to minimizing environmental, health and safety risks

in Dongsun during and after area development. Specifically, the consultant will:

(i) Assist BDIG and BEPB to apply the Ministry of the Environmental Protection’s (MEP) consultation documents for soil remediation and environmental clean-up, including the draft Guidelines for Risk Assessment of Contaminated Sites, Temporary Method for Environmental Management of Soil on Contaminated Sites, Guidelines for Soil Remediation of Contaminated Sites, and Technical Guidelines for Environmental Monitoring of Sites. (ii) Assist BDIG to prepare a detailed soil remediation plan for Dongsun area that takes into account the national draft guidelines as well as international best practices48 in this area. (iii) Assist BDIG and BEPB to monitor the implementation of the soil remediation plan. (iv) Assist DRC to evaluate the application of the MEP consultation documents to Dongsun area and prepare a short report identifying strengths and weaknesses for consideration by the MEP and other parties involved in finalizing the guidelines.

3. Training and Study Tours

6. Training is a critical cross-cutting theme relevant to all aspects of the capacity building work and the appointed consulting company will be expected to ensure that appropriate training is provided in a timely manner so that consulting inputs have maximum effect. Thus, consulting work plans and the training program must be fully coordinated. Specific tasks necessary to ensure training resources are effectively used include:

(i) in consultation with BPMO and BDIG, to review the training needs identified during the project preparatory technical assistance and identify any specific supplementary needs; (ii) based on this analysis, prepare a detailed training plan and implementation program for BPMO and ADB approval; (iii) domestic and international study tours to learn from best practices in integrated local area revitalization; (iv) seminars and workshops in Baise related to the activities in #1 and #2 above; (v) on-the-job training (such as in financial management); (vi) extended training or work placements within the PRC (e.g., at technical training schools or work placements at best practice units in larger cities); (vii) support BPMO, BDIG, and the other relevant agencies in the implementation of the training program (once approved); and (viii) develop a training assessment report to evaluate the impact of the overall training program when all the trainings are conducted under this project.

B. Detailed Capacity Building Budget (with Assumptions) Unit Cost Estimate Item Description Unit Number ($) ($) International consultant Month 16 18,000 288,000 International per diem Month 16 3,300 52,800 International travel Trip 10 1,500 15,000 National consultant Month 88 5000 440,000 National per diem Month 88 1500 132,000 National travel Trip 69 350 24,150

48 E.g., ASTM International. 2005. ASTM E1527-05 Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process. Pennsylvania.

Unit Cost Estimate Item Description Unit Number ($) ($) Office Equipment for consultants LS 38,050 Office support Month 60 500 30,000 Local Transport PS 50,000 Subtotal for Consulting Services 1,070,000 Training PS 200,000 Environmental Monitoring PS 80,000 REMDP Monitoring PS 120,000 Resettlement and Ethnic Minority PS Development Plan Update 30,000 Rural and Urban Integration Study PS 100,000 Dongsun Neighborhood Committee Support PS 50,000 Total 1,650,000 LS = lump sum as per consultant’s financial proposal, PS = fixed provisional sum administered by the Client via the loan consulting contract.

APPENDIX 2. ENVIRONMENTAL MANAGEMENT PLAN

A. Introduction

1. This environmental management plan (EMP) is developed for the Guangxi Baise Integrated Urban Environmental Improvement Project (the project) and defines all potential impacts of the project components and the mitigation and protection measures with the objective of avoiding or reducing these impacts to acceptable levels. The EMP also defines the institutional arrangements and mechanisms, the roles and responsibilities of different institutions, procedures and budgets for implementation of the EMP. The EMP seeks to ensure continuously improving environmental protection activities during preconstruction, construction, and operation in order to prevent, reduce, or mitigate adverse impacts and risks. The EMP draws on the findings of the project IEE, the domestic EIR, the SEPP, PPTA and ADB review mission discussions and agreements with the relevant government agencies.

2. The EMP will be reviewed and updated at the end of the detailed design in order to be consistent with the final technical design. The updated EMP will be disclosed on the ADB project website and included in the project administration manual (PAM). The updated EMP will also be included as a separate annex in all bidding and contract documents. The contractors will be made aware of their obligations to implement the EMP and to budget EMP implementation costs in their proposals.

B. Institutional Responsibilities related to EMP implementation

3. As executing agency, the Baise Municipal Government (BMG) will be responsible for the overall implementation and compliance with loan assurances and the EMP (including environmental monitoring plan).

4. The executing agency has established a Baise project management office (BPMO), who will be responsible, on behalf of the executing agency, for the day-to-day management of the project. The BPMO will have the overall responsibility to supervise the implementation of environment mitigation measures, coordinate the project level grievance redress mechanism (GRM) and report to ADB.

5. The BPMO will appoint one environment specialist on its staff to supervise the effective implementation of the EMP and to coordinate the project level GRM. In addition, the BPMO will prepare annual environment progress reports and submit them to ADB.

6. BPMO will engage the technical engineering design institutes (DI), loan implementation consultants (LIC), and manage the procurement process. To ensure that the contractors comply with the EMP provisions, BPMO with the help and technical support of Loan Implementation Environmental Consultant (LIEC), will prepare and provide the following specification clauses for incorporation into the bidding procedures: (i) a list of environmental management requirements to be budgeted by the bidders in their proposals; (ii) environmental clauses for contractual terms and conditions; and (iii)

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major items in the IEE and EMP. BPMO will also contract the Baise Environmental Monitoring Center (BEMC) to conduct environmental monitoring during the construction and operational stages of the project in accordance with the environmental monitoring program described in the EMP.

7. Baise project leading group. The Baise project leading group (BPLG) has been established for the project. The BPLG is chaired by the vice-mayor of Baise and comprises senior officials from relevant government agencies, to facilitate inter-agency coordination, and to resolve any institutional problems affecting project implementation at municipal level.

8. Implementing agency. Guangxi Baise Development & Investment Group (GBDIG) will be the implementing agency for the Project. It will implement project components, administer and monitor contractors and suppliers, and be responsible for construction supervision and quality control. GBDIG will appoint on its staff at least one dedicated, trained, and qualified environment specialist to (i) supervise contractors and their compliance with the EMP; (ii) conduct regular site inspections; (iii) coordinate periodic environmental impact monitoring in compliance with the monitoring plan defined in Table EMP-4 1; (iv) act as local entry point for the project GRM; (vi) submit quarterly environmental impact monitoring results d to the BPMO and BEPB for verification and confirmation.

9. Construction contractors will be responsible for implementing the mitigation measures during construction under the supervision of GBDIG and BPMO. Contractors will also conduct frequent monitoring of noise and dust around construction sites. In their bids, contractors will be required to respond to the environmental management requirements defined in the EMP. Each contractor will be required to develop site specific EMPs and will assign a person responsible for environment, health and safety. After project completion, environmental management responsibilities will be handed over to O&M units.

10. Operations and maintenance Units. During the operational phase, the BPMO will supervise the environmental management and implementation of mitigation measures by the operators (O&M Units) of the project components. The cost of mitigation measures in this phase will be borne by the relevant O&M Units, including: (i) Baise Municipal Administration Bureau (BMAB) for the operation and maintenance of roads and bridges, greening, sanitation, lighting, and solid waste collection; (ii) GBDIG for the operation and management of such commercial facilities as the market; and (iii) the Baise Water Bureau (BWB) for managing and maintaining the flood control works.

11. Loan implementation environmental consultant. Under the loan implementation consultancy services, a loan implementation environmental consultant (LIEC) will support the project. The LIEC will: (i) assess the project components’ environmental readiness prior to implementation based on the readiness indicators defined in Table EMP-3 in the EMP;

1 The monitoring plan will be confirmed or revised, as needed, in the framework of the EMP update after detailed design. The Baise Environmental Monitoring Center (under the Baise Environmental Protection Bureau) will be contracted by BPMO to conduct environmental monitoring.

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(ii) support BPMO in updating the EMP including monitoring plan as necessary to revise or incorporate additional environmental mitigation and monitoring measures, budget, institutional arrangements, etc., that may be required based on the detailed design; submit to ADB for approval and disclosure; ensure compliance with the PRC’s environmental laws and regulations, ADB’s Safeguard Policy Statement (2009) and Public Communications Policy (2011); (iii) if required, update the IEE and EMP reports for changes in the project during detailed design or project implementation (for example if there is a major scope change) that would result in adverse environmental impacts not within the scope of the approved IEE/EMP; (iv) assist the BMG and BPMO to establish a Grievance Redress Mechanism (GRM), and provide training for the BPMO and GRM access points (including, but not limited to, GBDIG and contractors); (v) conduct regular EMP compliance assessments, undertake site visits as required, identify any environment-related implementation issues, and propose and oversee implementation of necessary corrective actions; (vi) assist the BPMO to prepare annual environmental monitoring and progress reports to ADB; (vii) provide training to BPMO, GBDIG, BMAB, BWB and contractors on environmental laws, regulations and policies, SPS 2009, EMP implementation, and GRM in accordance with the training plan defined in the EMP (Table EMP-7); and (viii) assist the BPMO and GBDIG in conducting consultation meetings with relevant stakeholders as required, informing them of imminent construction works, updating them on the latest project development activities, GRM.

12. Overall environmental responsibilities are outlined in Table EMP-1.

Table EMP-1: Environmental Responsibility

Phase Responsible Agency Environmental Responsibility Project Design Institutes on behalf of Prepare project FSRs, EIR and EMP, RPs, conduct public preparation BPMO consultation BEPB Review and approve the project EIR and EMP PPTA consultant Provide technical assistance, review EIR, prepare IEE report including EMP on behalf of EA ADB Review and approve the IEE and EMP, including disclosure Engineering Design Institutes, BPMO Incorporate mitigation measures defined in the EMP into detail engineering detail designs; Update the EMP in cooperation design with the LIEC GBDIG, BPMO, LIEC Review updated EMP, confirm that mitigation measures have been included in engineering detail design ADB Approve updated EMP, including disclosure Tender & GBDIG, BPMO and Incorporate EMP clauses in tender documents and contracts contracting contractors ADB, LIEC Review bidding documents; confirm project’s readiness Construction GBDIG Appoint dedicated, trained, and qualified environment specialist(s); supervise contractors and ensure compliance with the EMP; coordinate construction supervision and quality

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Phase Responsible Agency Environmental Responsibility control; act as local entry point for the project grievance redress mechanism (GRM). BPMO Appoint one environment specialist on its staff; contract BEMC to carry out internal environmental monitoring in compliance with the approved monitoring plan supervise the effective implementation of the EMP; coordinate the project level GRM; prepare annual environment progress reports and submit them to ADB; conduct public consultation and inspect implementation of mitigation measures. Contractors Assign EMP implementation responsibilities; develop and implement site-specific EMP; ensure health and safety; implement mitigation measures; conduct frequent noise and dust monitoring around construction sites. BEMC (contracted by Undertake environmental impact monitoring; submit quarterly BPMO) monitoring results to BPMO, GBDIG, BEPB. LIEC Advise on the mitigation measures; provide comprehensive technical support to BPMO and GBDIG for environmental management; conduct training; conduct annual EMP compliance review; support BPMO in preparing annual environmental progress reports. BEPB Conduct inspections of all construction projects relative to compliance with PRC regulations and standards. Operation O&M Units: BMAB, GBDIG, Ensure proper operation of component facilities according to BWB design standards, and implement mitigation measures and public consultations BPMO, LIEC Conduct EMP compliance review, instruct GBDIG and O&M units on environmental management requirements; prepare annual EMP progress report until a PCR is issued.

BEMC (contracted by Undertake environmental impact monitoring for the first year GBDIG) of operation; submit monitoring results to BPMO, GBDIG, BEPB. BEPB Undertake periodic and random environmental monitoring and inspect environmental compliance ADB Review and approve environmental monitoring and EMP progress report, disclose on ADB project website ADB = Asian Development Bank; BMAB = Baise Municipal Administration Bureau; BEMC = Baise Environment Monitoring Center; BEPB = Baise Environmental Protection Bureau;; BPMO = Baise Project Management Office; BWB = Baise Water Bureau; EMP = Environmental Management Plan; GBDIG = Guangxi Baise Development & Investment Group Co., Ltd.; GEPD = Guangxi Environmental Protection Department; LIEC = Loan Implementation Environment Consultant

C. Summary of Potential Impacts and Mitigation Measures

13. Potential environmental issues and impacts during the pre-construction, construction, and operation phases, as identified in the IEE as well as corresponding mitigation measures designed to minimize the impacts are summarized in Table EMP-2. Mitigation or safeguard includes two types of environmental measures.

14. Those that will permanently become part of the infrastructure such as noise reduction materials and odor removal equipment for the solid waste transfer station. These will need to be included in the design of the facility by the design institutes, otherwise they won’t be built. The costs of building and maintaining these systems have already been included in the infrastructure construction and operating

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costs and therefore will not be double-counted as part of the EMP costs.

15. Those that are temporary measures particularly during the construction stage, such as dust suppression by watering and wheel washing, the use of quiet / low noise powered mechanical equipment, flocculants used to facilitate sedimentation of suspended solids in construction site runoff, etc. These will need to be included in the tender documents, otherwise they are not budgeted by the contractor and they won’t be done. The costs for implementing these measures are included in the EMP. The budgets for implementing these measures in this project add up to the amount of $200,000.

16. The mitigation measures defined in the EMP will be (i) checked and where necessary re- designed by the design institutes; (ii) incorporated into tender documents (where appropriate), construction contracts, and operational management plans; and (iii) implemented by contractors, GBDIG or the BPMO, as relevant. The effectiveness of these measures will be evaluated based on the results of the environmental impact monitoring conducted by BEMC, and through EMP compliance verification conducted by the BPMO and LIEC.

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Table EMP-2: Summary of Potential Impacts and Mitigation Measures

Potential Impact and/or Implementi Supervising Source of Item Impact Factor Issues Mitigation Measures ng Entity Entity funds Detailed Design Stage Design of roads Extreme weather Road surface Consider potential impacts from extreme weather Design GBDIG, Included in and auxiliary event due to cracking due to events due to climate change in designing road Institute BPMO design facilities climate change extreme cold surface and drainage system; contract weather and flooding due to Technical design of the road drainage system must be torrential rainfall adequate to prevent the roads from being flooded;

The design and construction of the water supply, storm water collection, and wastewater collection pipelines must be adequate to prevent pipe burst.

Health and safety Promotion of Design must ensure public health and safety, promote Design GBDIG, Included in non-motorized non-motorized traffic, and ensure barrier-free design Institute BPMO design transport, for disabled people. contract protection of vulnerable road users Design of solid Air quality Odor from the Transfer station design to include odor removal Design GBDIG Included in waste transfer transfer station equipment / facility Institute design station contract Water quality Effluent Technical design of the transfer station must have Design GBDIG Included in discharge collection systems for leachate and workers’ Institute design wastewater, for conveying to municipal sewers contract Noise Noise during Technical design of the transfer station must be able Design GBDIG Included in solid waste to contain the operational noises during loading, Institute design loading, unloading and compaction of the solid waste contract unloading and compaction Climate change GHG emissions All building and systems designs and equipment Design GBDIG Included in selection must take into account energy efficiency, Institute design energy conservation and low GHG emissions; contract Design of the Water quality Discharge of Design of the dredged sediment disposal site must Design GBDIG Included in dredged sediment supernatant include treatment of supernatant water Institute design disposal site water contract Site drainage for Design of the dredged sediment disposal site must Design GBDIG Included in EMP-6

Potential Impact and/or Implementi Supervising Source of Item Impact Factor Issues Mitigation Measures ng Entity Entity funds heavy rain storm include perimeter drainage for diverting overland Institute design runoff during rain storm contract Design of River Flood protection Flood damage, Technical design of embankments must ensure flood Design GBDIG Included in embankment and downstream protection for 1 in 50 years flood flows, while at the Institute design flood protection impacts, same time ensure eco-friendly embankment. contract works Conduct detailed analysis and calculations of design water levels accounting for the final embankment and bridge design;

Demonstrate that the flood control embankment will ensure protection from 1 in 50 years flood events, will not encroach on the river’s regulation line;

Confirm channel conveyance capacity and water surface elevation as required in the flood control plan, and demonstrate no net increase of risk of floods downstream.

Design of Health and Energy Technical design of the community service facilities Design GBDIG Included in community service safety, pollution efficiency, green must adopt energy efficient and green building Institute design facilities prevention procurement features, and comply with relevant PRC standards and contract codes, including (but not limited to): GB 50189-2005 (Design Standard for Energy Efficiency of Public Buildings); GB 50176-1993 (Thermal Design Code for Public Buildings); and GB/T 50378-2006 (Evaluation Standard for Green Buildings). Pre-construction Stage Institutional - Lack of Appoint qualified environment specialist(s) on its staff BPMO, LIEC ADB BMG, Loan strengthening environment within the BPMO; implementati management on TA capacities within Conduct environment management training (with BPMO support of BEPB).

- Lack of Appointment of environment specialist; GBDIG, BPMO , GBDIG, Loan environment Contract loan implementation environment consultants LIEC ADB implementati management (LIEC) within loan administration consultant services; on TA capacities within EMP-7

Potential Impact and/or Implementi Supervising Source of Item Impact Factor Issues Mitigation Measures ng Entity Entity funds GBDIG Conduct environment management training;

Contracting of Baise Environmental Monitoring Center (BEMC) to conduct internal environment monitoring. Lack of Conduct environment management training BMAB, GBDIG GBDIG, Loan environment BWB, LIEC, implementati management brownfield on TA capacities within managemen BMAB and BWB t experts EMP Update - - Review mitigation measures defined in this EMP, GBDIG, BPMO, ADB GBDIG, Loan update as required to reflect detailed design, disclose assisted by implementati updated EMP on project website, and include updated LIEC on TA EMP in all bid documents.

Land-take Land acquisition Resettlement Update the Resettlement Plan with final inventory. Design BPMO, ADB GBDIG confirmation and resettlement Plan Update Institute, GBDIG Tender documents Air quality Dust (TSP) Put into tender documents dust suppression Design GBDIG Included in impact to measures: Institute tendering sensitive - Water unpaved areas, backfill areas and haul roads agency receptors 7-8 times each day contract - Erect hoarding around dusty activities - Strengthen the management of stockpile areas with frequent watering or covering with tarpaulin - Minimize the storage time of construction and demolition wastes on site by regularly removing them off site - Do not overload trucks for transporting earth materials to avoid spilling dusty materials onto public roads - Equip trucks for transporting earth materials with covers or tarpaulin to cover up the earthy materials during transport - Install wheel washing equipment or conduct wheel washing manually at each exit of the works area to prevent trucks from carrying muddy or dusty substance onto public roads - Immediately clean up all muddy or dusty materials on

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Potential Impact and/or Implementi Supervising Source of Item Impact Factor Issues Mitigation Measures ng Entity Entity funds public roads outside the exits of the works areas - Sensibly plan the transport routes and time to avoid busy traffic and heavily populated areas when transporting earthy materials - Immediately plan vegetation in all temporary land take areas upon completion of construction to prevent dust and soil erosion Fumes and PM Put into tender documents that these plants must (i) Design GBDIG Included in from the asphalt be enclosed and equipped with bag house filter, Air Institute tendering mixing plant and Pollutant Integrated Emission Standard (GB 16297- agency the concrete 1996) or similar air pollution control equipment; (ii) be contract batching plant sited at least 300 meters away from residential areas; and (iii) comply with Air Pollutant Integrated Emission Standard (GB 16297-1996)

Noise PME noise Put into tender documents the following noise Design GBDIG, Included in impact to mitigation measures: Institute BPMO tendering sensitive - Use quiet equipment agency receptors - Adopt good O&M of machinery contract - Use temporary hoardings or noise barriers to shield off noise sources - No night time (2200-0600 hr) construction on all planned roads (new roads). Minimize night time road construction between 2200 and 0600 hours on Dongsun Road. If night time construction is needed on Dongsun Road, consult and notify local communities beforehand - Maintain continual communication with the schools in Dongsun sub-district to avoid noisy construction activities near the schools during examination periods Water quality Construction site Put into tender documents the following measures to Design GBDIG, Included in wastewater treat wastewater and runoff from construction sites: Institute BPMO tendering impact on water - Provide portable toilets and small package WWTPs agency bodies for workers and canteens contract - Install sedimentation tanks on-site to treat process water and muddy runoff - Ensure compliance with PRC’s Integrated

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Potential Impact and/or Implementi Supervising Source of Item Impact Factor Issues Mitigation Measures ng Entity Entity funds Wastewater Discharge Standard (GB 8978-1996), class III (for discharge to municipal sewer)

Earthwork, Disposal or Specify in tender documents the borrow sites, spoil Design GBDIG, Included in quarries, borrow storage of disposal or storage sites and that only these sites Institute BPMO tendering sites excavated spoil could be used. agency contract Health & safety Occupational Specify in tender documents the provision of personal Design GBDIG Included in health & safety safety and protective equipment such as safety hats Institute tendering of workers and shoes, eye goggles, respiratory masks, etc. to all agency construction workers. contract

Construction traffic Traffic Construction Plan transport routes for construction vehicles and Design GBDIG Included in vehicles causing specify in tender documents to forbid vehicles from Institute, tendering traffic congestion using other roads and during peak traffic hours. Local traffic agency police contract Estimated cost for Design and Pre-construction stage: costs are included in the detail design fee and tendering agency contracts

Construction Stage Impact on Physical Air quality Dust (TSP, Frequent watering (7-8 times per day) of unpaved Contractor GBDIG; Included in Resources PM10) during areas, backfill areas and haul roads; BEPB; LIEC construction construction contract Erect hoarding around dusty activities;

Strengthen the management of stockpile areas with frequent watering or covering with tarpaulin;

Minimize the storage time of construction and demolition wastes on site by regularly removing them off site;

Do not overload trucks for transporting earth materials to avoid spilling dusty materials onto public roads;

Equip trucks for transporting earth materials with covers or tarpaulin to cover up the earthy materials during transport;

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Potential Impact and/or Implementi Supervising Source of Item Impact Factor Issues Mitigation Measures ng Entity Entity funds Install wheel washing equipment or conduct wheel washing manually at each exit of the works area to prevent trucks from carrying muddy or dusty substance onto public roads;

Immediately clean up all muddy or dusty materials on public roads outside the exits of the works areas;

In periods of high wind, dust-generating operations shall not be permitted within 200 m of residential areas;

Material stockpiles and concrete mixing equipment will be equipped with dust shrouds. For the earthwork management for backfill, measures will include surface press and periodical spraying and covering. The extra earth or dreg should be cleared from the project site in time to avoid the long term pile. The height of stockpiles should be less than 0.7m;

Sensibly plan the transport routes and time to avoid busy traffic and heavily populated areas when transporting earthy materials; Build access and hauling roads at sufficient distances from residential areas, particularly from local schools;

Immediately plant vegetation in all temporary land take areas upon completion of construction to prevent dust and soil erosion.

Fumes and PM Place these plants at least 300 m upwind of any Contractor GBDIG; Included in from asphalt sensitive receptors; BEPB; LIEC construction mixing plant and contract concrete Enclose these plants and equip them with bag house batching plant filter or similar air pollution control equipment;

Provide workers with eye goggles and respiratory masks for occupational health protection;

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Potential Impact and/or Implementi Supervising Source of Item Impact Factor Issues Mitigation Measures ng Entity Entity funds In order to avoid odor impacts caused by channel cleaning, removed trash from the stream shall be transported quickly to the local landfill.

Transport of dredged sediments will be undertaken in closed tank wagons to prevent scattering along the way and impacting the urban area;

Unauthorized burning of construction waste material shall be subject to penalties for the Contractor, and withholding of payment;

Conduct regular air quality monitoring at construction site boundary to confirm compliance with relevant emission and ambient air quality standards.

Noise Noise from PME Sensibly schedule construction activities, avoid noisy Contractor GBDIG; Included in and vehicles equipment working concurrently; BEPB; LIEC construction contract Select advanced quiet equipment and construction method, and tightly control the use of self-provided generators;

During daytime construction, the contractor will ensure that: (i) noise levels from equipment and machinery conform to the PRC standard for Noise Limits for Construction Sites (GB12523-2011), and properly maintain machinery to minimize noise; (ii) equipment with high noise and high vibration are not used in village or township areas and only low noise machinery or the equipment with sound insulation is employed; (iii) sites for concrete-mixing plants and similar activities will be located at least 1 km away from sensitive areas; and (iii) temporary anti-noise barriers will be installed to shield residences; No night time (between 2200 and 0600 hours) construction on all planned roads (new roads). Avoid night time construction on Dongsun Road recognizing

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Potential Impact and/or Implementi Supervising Source of Item Impact Factor Issues Mitigation Measures ng Entity Entity funds that construction on existing roads occasionally would require some works to be conducted at night to take advantage of less road traffic or to avoid worsening day time traffic conditions. Night time construction work on Dongsun Road should prevent using high sound power level equipment and nearby residents should be notified of such night time activities well beforehand;

Liaise with the Baise No. 4 Secondary School and Dongsun Primary School and reduce noisy construction activities or shield off noise sources using temporary hoardings or noise barriers when day time construction works are within 150 m of these schools during examination periods;

Regularly monitor noise at sensitive areas (refer to the monitoring plan). If noise standards are exceeded by more than 3dB, equipment and construction conditions shall be checked, and mitigation measures shall be implemented to rectify the situation;

Provide the construction workers with suitable hearing protection (ear muffs) according to the worker health protection law of the PRC;

Control speed of bulldozer, excavator, crusher and other transport vehicles travelling on site, adopt noise reduction measures on equipment, strengthen equipment repair and maintenance to keep them in good working condition;

Limit the speed of vehicles travelling on site (less than 8 km/hr), forbid the use of horns unless absolutely necessary, minimize the use of whistles;

Maintain continual communication with the schools in Dongsun sub-district to avoid noisy activities near the

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Potential Impact and/or Implementi Supervising Source of Item Impact Factor Issues Mitigation Measures ng Entity Entity funds schools during examination periods. Surface water Uncontrolled Provide portable toilets and small package WWTPs for Contractor GBDIG; Included in wastewater and the workers and canteens; BEPB; LIEC construction muddy runoff contract from Install interim storage tanks and pipelines to convey construction wastewater to municipal sewers; sites and work camps Install sedimentation tanks on-site to treat process water (e.g. concrete batching for bridge construction) and muddy runoff with high concentrations of suspended solids. If necessary, flocculants such as PAM will be used to facilitate sedimentation;

Repair and wash construction machinery at special repairing shops. No onsite machine repair and washing shall be allowed;

Storage facilities for fuels, oil, and other hazardous materials will be within secured areas on impermeable surfaces, and provided with bunds and clean-up kits;

The contractors’ fuel suppliers must be properly licensed, follow proper protocol for transferring fuel, and must be in compliance with Transportation, Loading and Unloading of Dangerous or Harmful Goods (JT 3145-88).

Material stockpiles will be protected against wind and runoff waters which might transport them to surface waters.

Any spills are cleaned up according to PRC norms and codes within 24 hours of the occurrence, with contaminated soils and water treated according to PRC norms and codes. Records must be handed over without delay to the City PMOs, PIUs and local EPBs

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Potential Impact and/or Implementi Supervising Source of Item Impact Factor Issues Mitigation Measures ng Entity Entity funds Bridge Avoid rainy season from May to October for Contractor GBDIG; Included in construction construction of bridge foundations to minimize BEPB; LIEC construction crossing potential water quality impact; contract Dongsun Stream Adopt mitigation measures such as placement of sandbags or berms around foundation works areas to contain muddy water runoff;

Pump slurry from pile drilling in the river bed to shore; Pier construction in the river will be planned and laid out to ensure adequate opening for water flow.

Sediment Increased SS in Conduct dry dredging in shallow water sections of Contractor GBDIG; Included in dredging Dongsun Dongsun Stream (chainage K1+800 K3+200) and BEPB; LIEC construction Stream, grab dredging in deep water sections of Dongsun contract supernatant Stream (chainage K0+000 K1+800 ∼and K3+200 water K4+000); management, ∼ ∼ dredged material Transport dredged sediment (60,000 m3 wet) from treatment and Dongsun Stream in sealed containers to designated disposal. dredged material treatment and disposal site located near the east bank of Dongsun Stream at chainage K3+150 K3+250;

Discharge∼ of supernatant water from the dredged sediment disposal site to municipal sewer;

Conduct chemical testing to confirm that quality of treated sediments complies with PRC’s Environmental Quality Standard for Soils (GB 15618-1995) Class 2 standards on heavy metals and pesticides;

Solid waste C&D waste, Establish enclosed waste collection points on site, with Contractor GBDIG; Included in municipal solid separation of domestic waste and C&D waste; BEPB; LIEC construction waste contract Set up centralized domestic waste collection point and transport offsite for disposal regularly by sanitation department;

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Potential Impact and/or Implementi Supervising Source of Item Impact Factor Issues Mitigation Measures ng Entity Entity funds Reuse C&D waste for filling and foundations of other construction works specified by the municipal and planning departments, or transport in enclosed containers to designated C&D landfill site.

Earthwork, Soil Soil erosion, Implement soil erosion protection measures as defined Contractor GBDIG; Included in Erosion inadequate spoil in the Soil Erosion Protection Plan, including (but not BEPB; LIEC construction Protection disposal and limited to): contract borrow site - Confirm location of the borrow pits and spoil disposal operation sites; - Construct intercepting ditches and drains to prevent runoff entering construction sites, and diverting runoff from sites to existing drainage; - Limit construction and material handling during periods of rains and high winds; - Stabilize all cut slopes, embankments, and other erosion-prone working areas while works are going on; - Stockpiles shall be short-termed, placed in sheltered and guarded areas near the actual construction sites, covered with clean tarpaulins, and sprayed with water during dry and windy weather conditions; - All earthwork disturbance areas shall be stabilized within 30 days after earthworks have ceased at the sites; - Immediately restore, level and plant landscape on temporary occupied land upon completion of construction works. - Unauthorized extraction or disposal at other sites or deviating from established quota would be subject to withheld payments and to penalties.

Impact on Impacts on fauna Destruction of Preserve existing vegetation on construction sites Contractor GBDIG;; Included in ecological and flora vegetation and where no civil works are planned; BEPB; LIEC construction resources habitats for small contract animals of Protect existing trees and grassland during road, common species bridge and sewer network constructions; where a tree has to be removed or an area of grassland disturbed,

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Potential Impact and/or Implementi Supervising Source of Item Impact Factor Issues Mitigation Measures ng Entity Entity funds replant trees and re-vegetate the area after construction;

Remove trees or shrubs only as the last resort if they impinge directly on the permanent works or approved necessary temporary works. Impact on socio- Occupational Construction site Provide adequate and functional systems for sanitary Contractor GBDIG;; Included in economic health and safety sanitation, Pest conditions, toilet facilities, waste management, labor BEPB; LIEC construction resources control dormitories and cooking facilities; contract

Effectively clean and disinfect the site. During site formation, spray with phenolated water for disinfection. Disinfect toilets and refuse piles and timely remove solid waste;

Exterminate rodents on site at least once every 3 months, and exterminate mosquitoes and flies at least twice each year;

Provide public toilets in accordance with the requirements of labor management and sanitation departments in the living areas on construction site, and appoint designated staff responsible for cleaning and disinfection;

Work camp wastewater shall be discharged into the municipal sewer system; Occupational Provide safety hats and shoes to all construction Contractor GBDIG; Included in safety workers and enforce their use by the workers; BEPB; LIEC construction contract Provide goggles and respiratory masks to workers doing asphalt road paving;

Provide ear plugs to workers working near noisy PME, especially during piling of bridge foundations.

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Potential Impact and/or Implementi Supervising Source of Item Impact Factor Issues Mitigation Measures ng Entity Entity funds Food safety Inspect and supervise food hygiene in cafeteria on site Contractor GBDIG; Included in regularly; BEPB; LIEC construction contract Cafeteria workers must have valid health permits.

If food poisoning is discovered, implement effective control measures immediately to prevent it from spreading.

Disease All contracted labor shall undergo a medical Contractor GBDIG; Included in prevention and examination which should form the basis of an BEPB; LIEC construction safety (obligatory) health/accident insurance and welfare contract awareness provisions to be included in the work contracts;

The contractors shall maintain records of health and welfare conditions for each person contractually engaged;

Establish health clinic at location where workers are concentrated, which should be equipped with common medical supplies and medication for simple treatment and emergency treatment for accidents;

Specify (by the IA and contractors) the person responsible for health and epidemic prevention responsible for the education and propaganda on food hygiene and disease prevention to raise the awareness of workers. Social conflicts Civil works contracts shall stipulate priorities to (i) Contractor GBDIG; Included in employ local people for works, (ii) ensure equal BEPB; LIEC construction opportunities for women and men, (iii) pay equal contract wages for work of equal value, and to pay women’s wages directly to them; and (iv) not employ child or forced labor.

Community Temporary traffic A traffic control and operation plan will be prepared Contractor, GBDIG, BMG (traffic health and safety management together with the local traffic management authority local traffic LIEC police prior to any construction. police, department)

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Potential Impact and/or Implementi Supervising Source of Item Impact Factor Issues Mitigation Measures ng Entity Entity funds GBDIG The plan shall include provisions for diverting or scheduling construction traffic to avoid morning and afternoon peak traffic hours, regulating traffic at road crossings with an emphasis on ensuring public safety through clear signs, controls and planning in advance.

Information Inform residents and businesses in advance through GBDIG BPMO, LIEC GBDIG disclosure media of the construction activities, given the dates and duration of expected disruption.

Access to Clear signs will be placed at construction sites in view Contractor GBDIG, Included in construction of the public, warning people of potential dangers such LIEC construction sites as moving vehicles, hazardous materials, excavations contract etc. and raising awareness on safety issues. All sites will be made secure, discouraging access by members of the public through appropriate fencing whenever appropriate.

Utility services Assess construction locations in advance for potential Contractor, GBDIG;; Included in interruptions disruption to services and identify risks before starting local service BEPB; LIEC construction construction; providers contract

If temporary disruption is unavoidable, develop a plan to minimize the disruption in collaboration with relevant local authorities such as power company, water supply company and communication company, and communicate the dates and duration in advance to all affected people. Grievance Handling and Establish a GRM, appoint a GRM coordinator within BPMO, ADB BPMO Redress resolving BPMO; GBDIG budget, Loan Mechanism complaints by TA contractors Brief and provide training to GRM access points;

Disclose GRM to affected people before construction begins at the main entrance to each construction site; Maintain and update a Complaint Register to document all complaints.

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Potential Impact and/or Implementi Supervising Source of Item Impact Factor Issues Mitigation Measures ng Entity Entity funds Physical cultural Destruction of Contractor must comply with PRC's Cultural Relics Contractor GBDIG;; Included in resources cultural relics in Protection Law and Cultural Relics Protection Law cultural construction stream bed and Implementation Regulations if such relics are relics contract soil discovered, stop work immediately and notify the bureau; relevant authorities, adopt protection measures and LIEC notify the Security Bureau to protect the site. Estimated cost for the Construction Stage: $200,000 Operational Stage Roads and bridges Traffic emissions Ambient air Regular ambient air quality compliance monitoring will BEMC BMG Operational quality and noise be undertaken by BEMC - NO2, CO, TSP, PM10, SO2 budget of monitoring (GB 3095-1996) BEPB/BEMC Air quality and The first row of developments on both sides of BEPB, BMG BDRC noise impact to Dongsun Road within 35 m from the road red line BDRC future roadside should install on the façade facing Dongsun Road with developments double glazed window capable of 15-25 dB(A) noise reduction. No school, residential building and hospitals and medical clinics should be built within 45 m from the road red line on Dongsun Road.

If there is no first row building within 35 m from Dongsun Road red line to provide noise shielding effect, any development beyond 35 m from the road red line would need to be at least 180 m from the road red line in order to comply with Functional Area Category 2 noise standard.

On Planned No. 2 Road and Planned No. 3 Road, the first row of building shall be at least 10 m from the road red lines. Should there be any new building within 10 m from the red lines for these roads, double glazed window capable of 15-25 dB(A) noise reduction should be installed on the façade facing these roads. If there is no first row building within 35 m from Planned No. 2 Road and Planned No. 3 Road red lines to provide noise shielding effect, any development beyond 35 m from the road red line would need to be at least 60 m from the road red lines or installed with double glazed window capable of 15-25 dB(A) noise reduction on the EMP-20

Potential Impact and/or Implementi Supervising Source of Item Impact Factor Issues Mitigation Measures ng Entity Entity funds façade facing these roads in order to comply with Functional Area Category 2 noise standard. No school, residential building and hospitals and medical clinics should be built within 10 m from the road red line on these roads.

If there is no first row building within 35 m from Planned No. 4 Road red line to provide noise shielding effect, any development beyond 35 m from the road red line would need to be at least 34 m from the road red line or installed with double glazed window capable of 15-25 dB(A) noise reduction on the façade facing the road in order to comply with Functional Area Category 2 noise standard. No school, residential building and hospitals and medical clinics should be built within 10 m from the road red line on this road. If there is no first row building within 35 m from Planned No.7 Road red line to provide noise shielding effect, any development beyond 35 m from the road red line would need to be at least 27 m from the road red line or installed with double glazed window capable of 15-25 dB(A) noise reduction on the façade facing the road in order to comply with Functional Area Category 2 noise standard. No school, residential building and hospitals and medical clinics should be built within 10 m from the road red line on this road. On Planned No. 17, No. 18, No. 19 and No. 20 Roads, no school, residential building and hospitals and medical clinics should be built within 10 m from the road red line on these roads.

Traffic safety Transport safety, Strictly enforce traffic law to improve road safety and Baise Traffic BMG BTP’s transport of reduce traffic accidents; Police (BTP) operation dangerous budget goods , toxic Project roads will be fully incorporated into the local spills emergency preparedness and response plan to comply with PRC regulations and the World Bank Group’s EHS Guidelines (General Guidelines, Toll

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Potential Impact and/or Implementi Supervising Source of Item Impact Factor Issues Mitigation Measures ng Entity Entity funds Roads);

Strictly enforce traffic law to prohibit large vehicles carrying dangerous goods travelling on the urban roads and bridges;

Speed limits will be stringently enforced. Wastewater, solid Pollution from Regular inspection and maintenance of sewers. BMAB BEPB BMAB’s waste storm water operation runoff, Routinely collect and properly dispose litter and debris budget wastewater, from sidewalks, driveways, and parking lots, especially solid waste near rivers;

Place garbage containers along roads;

Flood Control Flood Emergency Response to Update early flood warning and emergency response BWB GBDIG; BWB’s Works and Preparedness Above-Standard mechanism for Baise City, accounting for new flood BEPB operation Dongsun Stream and Response floods control works. The mechanism shall consider safety of budget Rehabilitation evacuation routes and locations of safe temporary refuge, among other matters. Even for floods below the design flood protection standard, the flood monitoring and forecasting system should be used to warn the community of approximate flood peak levels expected so that activities undertaken near or on the channel banks (mainly urban agriculture) can be suspended.

Regularly monitor river hydrology, morphology and sediment transport.

Youjiang Solid waste Solid wastes along walkways will be regularly BWB GBDIG; BWB’s Waterfront collection, collected, and disposed of in local sanitary landfill; BEPB operation Promenade sanitation Public toilets will collect wastewater onsite, which will budget Sanitation facilities, be conveyed via public sewer to the Baise WWTP. wastewater collection Dongsun Stream Solid waste Appoint sufficient personnel to regularly maintain the BWB GBDIG; BWB’s collection, stream, including removal of garbage and vegetation BEPB operation

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Potential Impact and/or Implementi Supervising Source of Item Impact Factor Issues Mitigation Measures ng Entity Entity funds dredging which may impair flood flow capacity. budget

The stream will require maintenance dredging from time to time.

Community Solid waste Noise and odor A minimum width of buffer zone and greening belt will BMAB GBDIG; BMAB’s Facilities transfer station nuisance, water be ensured for the proposed new transfer station in BEPB operation quality impact accordance with “Technical Specifications for budget Domestic Solid Waste Transfer Stations” (CJJ47- 2006);

The transfer station will be fully enclosed to minimize noise and odor released to the surrounding environment; ventilation within the workshop will be ensured;

High-noise equipment will be installed indoors; the buildings will be designed with sound-absorbing and sound-insulating materials;

Air curtains will be installed at the inlet of the transfer station for unloaded MSW to prevent the emission of odor and dust; dust removal using the spray system plus gravity sedimentation technique will be installed; Leachate from the transfer station will be pretreated on site (septic tank) before being discharged into the municipal sewage network and sent to the municipal WWTP for treatment; the floor of the transfer station will be sealed to prevent any potential seepage and pollution of groundwater.

Equipment and workshops will be regularly cleaned with the spraying of disinfectant and deodorant in order to control odor generation and as pest control; An odor control system will be installed for odor suction and treatment (using chemical spray plus activated carbon adsorption) to make sure that H2S concentration is less than 0.1mg/Nm3 and the NH3

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Potential Impact and/or Implementi Supervising Source of Item Impact Factor Issues Mitigation Measures ng Entity Entity funds concentration is less than 1mg/Nm3;

Ambient noise and odor monitoring will be performed to determine whether further mitigation measure is required or not.

Market Septic tanks will be installed at the market to pre-treat GBDIG BPMO; GBDIG’s the wastewater according to CJ 3082-1999 (Discharge BEPB operation Standard for Municipal Wastewater), before budget discharging into the municipal trunk sewer for treatment at the Chengdong WWTP. Solid waste will be regularly collected and transported to the solid waste transfer station.

Estimated cost for the Operational Stage: the cost will be included in the O&M budget

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D. Monitoring and Reporting

17. Monitoring will include project readiness monitoring (to be conducted by the LIEC), environmental impact monitoring (to be conducted by the Baise Environmental Monitoring Center under the Baise Environmental Protection Bureau; as well as by the contractors who will be required to conduct frequent noise and air quality monitoring around construction sites), external environmental monitoring which is routinely undertaken by the Baise Environmental Protection Bureau for enforcement purposes, and EMP monitoring to verify EMP compliance during project implementation and project operation (to be conducted by BPMO and LIEC). Monitoring and reporting arrangements defined for this project are described below.

18. Assessment of project readiness. Before construction, the LIEC will assess the project’s readiness in terms of environmental management based on a set of indicators (Table EMP-3) and report it to ADB and the BPMO. This assessment will demonstrate that environmental commitments are being carried out and environmental management systems are in place before construction starts, or suggest corrective actions to ensure that all requirements are met.

Table EMP-3: Project Readiness Assessment Indicators

Indicator Criteria Assessment • The EMP was updated after technical detail design, EMP update approved by ADB, and disclosed on the project Yes No website • The borrower complies with loan covenants related Compliance with to project design and environmental management Yes No loan covenants planning Public involvement • Meaningful consultation completed Yes No effectiveness • GRM established with entry points Yes No • LIEC is in place Yes No • Environment specialist appointed by GBDIG Yes No Yes No Environmental • Environment specialist appointed by BPMO Supervision in place • Environment monitoring center contracted by Yes No GBDIG Yes No • Contractors have site-specific EMPs • Bidding documents and contracts incorporating the environmental activities and safeguards listed as Yes No Bidding documents loan assurances and contracts with • Bidding documents and contracts incorporating the environmental impact mitigation and environmental management Yes No safeguards provisions of the EMP • Environmental requirements of EMP included in Yes No contract documents for construction contracts • EMP financial The required funds have been set aside by GBDIG, Yes No support contractors and the O&M units to support the EMP implementation

19. Environmental impact monitoring. Table EMP-4 shows the environmental impact monitoring program specifically designed for this project, defining the requirements, including, scope, location,

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parameter, duration and frequency of monitoring during the construction and operational stages. Environmental impact monitoring will include monitoring of air quality, noise and water quality as described in Table EMP-4. Environmental impact monitoring during construction and operation will be conducted by the Baise Environment Monitoring Center (BEMC), contracted by BPMO. The budget for environmental impact monitoring has been estimated at $105,000. The monitoring program will be included in the project tendering documents, as well as the construction and operation contracts.

20. The environmental monitoring results will be compared with relevant PRC performance standards (Table EMP-5), and non-compliance with these standards will be highlighted in the monitoring reports. Monitoring results will be submitted by BEMC to BPMO and GBDIG quarterly, and will be reported in the annual environmental monitoring reports by BPMO (with the support of the LIEC, see reporting plan in Table EMP-6).

Table EMP-4: Environmental Impact Monitoring Program

Monitoring Monitoring Frequency & Implementing Supervising Item Parameter Monitoring Location Duration Entity Entity Construction Stage

Dust, TSP, LAeq At boundaries of all 2 times per day, Contractor GBDIG fumes, construction sites once per week and noise during construction period Air quality TSP, 15 locations: 1 day (24-hr BEMC BPMO; (SO2 & 1. Electro-motor Factory continuous (contracted BEPB NOx only if dormitory community sampling) per through there is 2. Dongsun Community month during BPMO) asphalt Service Center construction period mixing 3. Bureau of Mine within 300 community m of 4. Dongsun Mine staff monitoring dormitory locations) 5. Baise Mining staff dormitory 6. Thermal Power Plant dormitory community 7. Thermal Power Plant dormitory community 8. Dongsun No. 1 Group 9. Dongsun No. 2 Group 10. Dongsun No. 3 Group 11. Dongsun No. 4 Group 12. Dongsun No. 5 Group 13. Dongsun No. 6 Group 14. Baise No. 4 Secondary School 15. Dongsun :Primary School Noise LAeq 15 locations (same as for air 2 times per day BEMC BPMO; quality) (day time and night (contracted BEPB time); 1 day per through month during BPMO) construction period Water SS Dongsun Stream dredging: 1 time per day; 1 BEMC BPMO;

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Monitoring Monitoring Frequency & Implementing Supervising Item Parameter Monitoring Location Duration Entity Entity Construction Stage quality 2 locations at each dredging day per month (contracted BEPB section: during construction through 1. 50 m upstream of the period BPMO) dredging section (control station) 2. 100 m downstream of the dredging section (impact station) Dredged sediment disposal site: 1 location at the discharge point for supernatant water Bridge construction sites: 2 locations at each bridge crossing 1. 50 m upstream of the bridge (control station) 2. 100 m downstream of the bridge (impact station) Embankment works on Youjiang: 11 locations, starting at 500 m upstream of the embankment section at 500 m distance separation along the embankment section, with each location at 25 m off the Youjiang left bank. Soil Location: 5 drill rod 1 time per day; Contractor BPMO; BWB erosion observation locations in the 1 day every 2 main works area, 4 drill rod months at main observation locations at the works area,1 day dredged sediment disposal every 3 months at site area, 1 site inspection disposal site and location at each temporary temporary works works area area Leachate SS, BOD, Dredged sediment treatment 1 time per day, 1 BEMC BPMO, quality COD, LAS site day per month (contracted BEPB during construction through period. BPMO) Soil Cd, Hg, Dredged sediment treatment Once prior to BEMC BPMO, quality As, Cu, site material excavation (contracted BEPB Pb, DDT, and transport through others BPMO) Occup. Audit of Construction sites Once per month GBDIG BPMO Health & occupatio during construction Safety nal health period & safety of workers on constructi on sites Operational Stage (first year)

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Air PM10, NO2 15 locations same as those 1 time per day; 1 BEMC BPMO; quality during the construction stage day every 3 months (contracted BEPB NH3, H2S At downwind site boundary of 1 time per day; 1 through the solid waste transfer day every 3 months BPMO) station Noise LAeq 15 locations same as those 2 times per day BEMC BPMO; during the construction stage (day time and night (contracted BEPB At site boundary of the solid time); 1 day every 3 through waste transfer station months BPMO) Water BOD, COD, 3 locations along Youjiang 1 time per day; 1 BEMC BPMO, quality DO, NH3-N, section, 3 locations along day per month (contracted BEPB fecal Dongsun Stream through coliform BPMO) bacteria Mosquit Density At solid waste transfer station 2 times per month BEMC BPMO, oes and during April to (contracted BEPB flies November through BPMO) Total estimated cost: $105,000 Notes: BEPB = Baise Environmental Protection Bureau;; BEMC = Baise Environmental Monitoring Center; BWB = Baise Water Bureau; GBDIG = Guangxi Baise Development & Investment Group Co., Ltd

Table EMP-5: Monitoring Indicators and Applicable PRC Standards1

Period Indicator Standard Construction TSP Class II Ambient Air Quality Standard (GB 3095-1996) Fume from asphalt mixing Air Pollutant Integrated Emission Standard (GB 16297-1996) plant (SO2, NOx) Noise limits of PME at Emission Standard of Environmental Noise for Boundary of boundary of construction site Construction Site (GB 12523-2011) Water quality during No PRC standard. Use upstream (of the dredging works) dredging and embankment location as control station and downstream location as the construction (SS) impact station. If the SS level at the downstream location is >130% of the upstream location, mitigation measures such as reducing the dredging rate or changing the dredging equipment will be implemented Quality of wastewater from PRC’s Integrated Wastewater Discharge Standard (GB 8978- construction sites and 1996), class III (for discharge to municipal sewer) supernatant water from dredged sediment disposal sites (SS, BOD, COD, LAS) Operation Traffic noise at sensitive Noise standard for Category 4a Functional Area in receptor within 35 m of road Environmental Quality Standard for Noise (GB 3096-2008) red line Traffic noise at sensitive Noise standard for Category 2 Functional Area in receptor beyond 35 m of Environmental Quality Standard for Noise (GB 3096-2008) road red line Air quality from traffic Class II Ambient Air Quality Standard (GB 3095-1996) emissions (PM10, and NO2)

1 The project applies PRC standards. A comparison of PRC standards with internationally accepted standards (as defined in the World Bank’s Environment Health and Safety Guidelines) was conducted and is described in Chapter 2. The comparison confirmed that PRC standards are either internationally accepted, or have comparable standard limits with internationally accepted standards. A deviation from PRC practices and standards would make the task of compliance monitoring authorities unnecessary complicated, and is deemed not justified.

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Period Indicator Standard Surface water quality of Environmental Quality Standards for Surface Water GB 3838- Youjiang and Dongsun 2002, . Category III standard for Youjiang and Dongsun Stream (DO, COD, BOD, Stream NH3-N, fecal coliform bacteria)

21. EMP monitoring. EMP monitoring will be undertaken by the BPMO, with support of the LIEC. BPMO will report to ADB the project’s adherence to the EMP, information on project implementation, environmental performance of the contractors, and environmental compliance through semiannual project progress reports and annual environmental monitoring reports (Table EMP-6). Semiannual progress reports by the BPMO to ADB will include a summary of EMP implementation progress. The LIEC will support the BPMO in developing the annual environmental monitoring reports. The reports should confirm the project’s compliance with the EMP, local legislation such as PRC EIA requirements, and identify any environment related implementation issues and necessary corrective actions. The performance of the contractors in respect of environmental compliance will also be reported. The operation and performance of the project GRM, environmental institutional strengthening and training, and compliance with all covenants under the project will also be included in the report.

22. Environmental acceptance monitoring and reporting. Within three months after each component completion, or no later than 1 year with permission of the BEPB, environmental acceptance monitoring and audit reports of each component completion shall be: (i) prepared by a licensed environmental monitoring institute in accordance with the PRC Management Method for Acceptance of Environmental Protection at Construction Project Completion (MEP, 2001), (ii) reviewed for approval of the official commencement of individual component operation by environmental authorities, and (iii) finally reported to ADB (Table EMP-6). The environmental acceptance reports of the component completions will indicate the timing, extent, effectiveness of completed mitigation and of maintenance, and the needs for additional mitigation measures and monitoring during operations.

Table EMP-6: Reporting Plan

Reporting Reports From To Frequency Construction Phase Progress reports by Internal project progress report by Contractors GBDIG Monthly contractors construction contractors, including monitoring results Environmental Environmental impact monitoring report BEMC BEPB, Quarterly impact monitoring BPMO, GBDIG Reports to ADB Project progress report (including BPMO ADB Semiannual section on EMP implementation and monitoring) Environment progress and monitoring BPMO ADB Annually reports

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Operational Phase

Environmental Environmental impact monitoring report BEMC BEPB, Quarterly impact monitoring (until a PCR is issued) BPMO, (until a PCR GBDIG, is issued) Reports to ADB Project progress report (including BPMO ADB Quarterly section on EMP implementation and monitoring) Environment progress and monitoring BPMO ADB Annually report (until a PCR is issued) ADB = Asian Development Bank; BEMC = Baise Environment Monitoring Center; BEPB = Baise Environmental Protection Bureau BPMO = Baise Project Management Office; GBDIG = Guangxi Baise Development & Investment Group Co., Ltd

E. Institutional Capacity Building and Training

23. The capacity of BPMO, GBDIG, O&M units such as BMAB and BWB, and contractors’ staff responsible for EMP implementation and supervision will be strengthened. All parties involved in implementing and supervising the EMP must have an understanding of the goals, methods, and practices of project environmental management. The project will address the lack of capacities and expertise in environmental management through (i) institutional capacity building, and (ii) training.

24. Institutional strengthening. The capacities of the BPMO and GBDIG to coordinate environmental management will be strengthened through a set of measures: (i) The appointment of qualified environment specialist(s) within the BPMO staff to be in charge of EMP coordination, including GRM and coordination of environmental impact monitoring, training, reporting, etc.; (ii) The appointment of a national environmental specialist under the loan implementation consultancy to guide BPMO and GBDIG in implementing the EMP and ensure compliance with ADB’s Safeguard Policy Statement (SPS 2009); and (iii) The appointment of environment specialist(s) by the GBDIG on its staff to conduct regular site inspections. (iv) The contracting of one international and one national expert in brownfield rehabilitation (see capacity building section below).

25. Training. The BPMO, GBDIG, contractors and O&M units will receive training in EMP implementation, supervision, and reporting, and on the Grievance Redress Mechanism (Table EMP- 7). Training will be facilitated by the LIEC with support of other experts under the loan implementation consultant services. The budget for training is estimated at $8,800.

Table EMP-7: Training Program Cost Period No. of Total Training Attendees Contents Times ($/person (days) persons Cost /day) EMP BPMO, Development and Twice - 2 15 80 $4,800 adjustment GBDIG, adjustment of the Once prior to,

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Cost Period No. of Total Training Attendees Contents Times ($/person (days) persons Cost /day) and contractors EMP, roles and and once after implementation responsibilities, one year of monitoring, project supervision and implementation reporting procedures, review of experience (after 12 months) Grievance BPMO, Roles and Twice - 1 10 80 $1,600 Redress GBDIG, responsibilities, Once prior to, Mechanism contractors, Procedures, review and once after BEPB of experience one year of (after 12 months) project implementation Environmental BPMO, Pollution control Once (during 2 10 80 $1,600 technologies GBDIG, technologies, project and processes contractors, contaminated land implementation) BMAB, remediation BWB technologies, equipment selection and procurement Environmental BPMO, Monitoring Once (at 1 10 80 $800 monitoring GBDIG, methods, data beginning of contractors, collection and project BMAB, processing, construction) BWB reporting systems Total estimated cost: $8,800 BPMO = Baise Project Management Office; BEPB = Baise Environmental Protection Bureau; BMAB = Baise Municipal Administration Bureau; BWB = Baise Water Bureau; GBDIG = Guangxi Baise Development & Investment Group Co., Ltd

26. Capacity building. In addition to training pertaining to EMP implementation, the project will provide a substantial capacity building package on institutional development, integrated urban development, community development and project management to ensure effective implementation of the project and sustainable O&M of the project facilities.

27. Also provided will be a capacity building package on environmental management, focusing on deconstruction and remediation of industrial sites. The project will provide technical assistance and training to BDIG in remediation of contaminated soils with a view to minimizing environmental risks in Dongsun during and after area development. Specifically, one international and one national brownfield remediation specialist will be contracted to provide assistance to BDIG in (i) applying existing national draft guidelines for soil remediation and environmental clean-up; (ii) preparing a detailed soil remediation plan for Dongsun area that takes into account the national draft guidelines as well as international best practices in this area; and (iii) monitoring the implementation of the soil remediation plan. The specialists will also evaluate the application of the national draft guidelines to Dongsun area, and prepare a short report identifying strengths and weaknesses for consideration by the national Ministry of Environment and other parties involved in finalizing the guidelines. 28. With regard to community development, the project will contribute to strengthening the existing

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Dongsun Neighborhood Committee to be able to represent the entire population of Dongsun in the area rehabilitation process. This will involve strengthening the capacity of the organization through technical assistance. In addition, technical assistance will be provided to BMG for development of the policy regulatory framework for community development. Consultants will be hired to carry out the following tasks: (i) assess the existing capabilities of Dongsun Neighborhood Committee (DNC); (ii) prepare and implement an institutional development plan that focuses on administration, financial management, community outreach, formulation of development plans, and negotiation; and (iii) through a combination of training, technical assistance, and domestic study tours, strengthen the ability of DNC to represent local residents in dealings with BMG related to resettlement, housing development, and local economic development. In addition, the consultants will provide technical assistance to Baise Municipal Development and Reform Commission to improve the policy and regulatory framework for community development and local area rehabilitation. The intention is to define systems and procedures for greater community participation in the planning and implementation of such projects. This may include resettlement plans being prepared partially on the preferences and priorities of local residents that are consulted early in the planning process. These inclusive participation systems will also be applied to the local economic development process in Dongsun, as there is still scope for defining the specific economic sectors and types of economic activities to be promoted in Dongsun.

F. Consultation, Participation and Information Disclosure

29. Consultation during project preparation. Chapter VII of the report has described the meaningful public participation and consultation implemented during project preparation.

30. Future public consultation plan. Plans for public involvement during construction and operation stages have been developed during project preparation. These plans include public participation in (i) monitoring impacts and mitigation measures during the construction and operation stages through informal interviews and disclosure of monitoring reports; and (ii) interviewing the public at project completion stage. These plans will include several types of public involvement, including site visits, workshops, investigation of specific issues, interviews, and public hearings, as indicated in Table EMP-8. The budget for public consultation is estimated at approximately $7,100.

Table EMP-8: Public Consultation Plan

Organizer Format No. of Times Subject Attendees Budget Construction Stage BPMO Public 4 times: 1 time Adjusting of Residents adjacent $3,200 consultation & before mitigation measures, to components, site visit construction if necessary; representatives of commences and 1 construction impact; social sectors time each year comments and during suggestions construction BPMO, Expert As needed based Comments and Experts of various $1,300 GBDIG workshop or on public suggestions on sectors, media press consultation mitigation measures,

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Organizer Format No. of Times Subject Attendees Budget conference public opinions GBDIG Resettlement As required by Comments on Persons affected Included in survey relevant resettlement, by resettlement the resettlement plan improvement of living and relocation resettlement conditions, livelihood, plan update and poverty survey reduction; comments budget and suggestions Operational Stage GBDIG, Public Once in the first Effectiveness of Residents adjacent $1,300 O&M Units consultation and year mitigation measures, to component sites, site visits impacts of operation, representatives of comments and residents and suggestions representatives of social sectors GBDIG, Expert As needed based Comments and Experts of various $1,300 O&M Units workshop or on public suggestions on sectors, media press consultation operational impacts, conference public opinions Total budget: $7,100 BPMO = Baise Project Management Office; GBDIG = Guangxi Baise Development & Investment Group Co., Ltd; O&M = Operation and Maintenance

G. Grievance Redress Mechanism

31. Public participation, consultation and information disclosure undertaken as part of the local EIA process have discussed and addressed major community environmental concerns. Continued public participation and consultation has been emphasized as a key component of successful project implementation. As a result of this public participation and safeguard assessment during the initial stages of the project, major issues of grievance are not expected. However, unforeseen issues may occur. To settle such issues effectively, a Grievance Redress Mechanism (GRM) providing effective and transparent channels for lodging and addressing complaints and grievances has been defined. The GRM will be established prior to construction of the project components. The GRM is responsive to ADB’s Safeguard Policy Statement (2009) and PRC legislation.

32. Proposed project grievance redress mechanism. In consultation with the BPMO, GBDIG, BEPB and potentially affected people, it was agreed that the BPMO will establish a complaints center and coordinate the GRM for the project. Other GRM entry points will include: (i) the contractors; (ii) O&M Units; and (iii) GBDIG. Contact details for the complaints center and the entry points will be publicly disseminated on information boards at construction sites and nearby communities/villages. Multiple means of using this mechanism, including face-to-face meetings, written complaints, telephone conversations, or e-mail, will be available. In the construction and the operational periods until ADB’s project completion report (PCR), the BPMO will report progress to the ADB, and this will include reporting complaints and their resolution.

33. Basic steps for resolving complains are as follows and illustrated in Figure EMP-1:

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(i) Step 1: For environmental problems during the construction stage, the affected person (AP) can register his/her complaint directly with the contractors. Contractors are required to set up a complaint hotline and designate a person in charge of handling complaints, and advertise the hotline number at the main entrance to each constructionsite. The contractors are required to maintain and update a Complaint Register to document all complaints. The contractors are also required to respond to the complainant in writing within 7 calendar days on their proposed solution and how it will be implemented. If the problem is resolved and the complainant is satisfied with the solution, the grievance handling ends here. The contractors are required to report complaints received, handled, resolved and unresolved to GBDIG and BPMO monthly. (ii) Step 2: For environmental problems that could not be resolved at the contractor level, and for complaints during the operational stage, the affected person (AP) can take the grievance to GBDIG and/or, BEPB (BEPB must notify the GBDIG and register the complaint). GBDIG must reply to each complain in writing within 14 calendar days on the proposed solution and how it will be implemented. If the problem is resolved and the complainant is satisfied with the solution, GBDIG should register the complaint and resolution process in its Complaint Register, with quarterly reporting to BPMO. (iii) Step 3: If the AP is not satisfied with the proposed solutions in Step 2, he/she can, upon receiving the reply, take the grievance to the BPMO complaints center. Upon receiving the complaint, the center must deal with it within 14 calendar days. Once a complaint is registered and put on file, the BPMO complaints center will immediately notify ADB. After discussing the complaint and potential solutions among BPMO, the LIEC, AP, the contractor and ADB, BPMO must provide clear answers to the complainant within 14 calendar days from when the complaint is documented and put on file.

34. The tracking and documenting of grievance resolutions by BPMO (through its complaints center) will include the following elements: (i) tracking forms and procedures for gathering information from project personnel and complainant(s); (ii) dedicated staff to update the database routinely; (iii) a system to periodically evaluate the overall functioning of the mechanism; (iv) processes for informing stakeholders about the status of a case; and (v) procedures to retrieve data for reporting purposes, including the periodic reports to the ADB.

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GRM access points

Figure EMP-1: Proposed Grievance Redress Mechanism

35. Cost Estimates

36. Cost estimates for EMP implementation, including mitigation measures, environmental impact monitoring, public consultation and training as presented in Tables A.2, A.4, A.7 and A.8 are summarized in Table EMP-9. Total budget for implementing these 4 items of the EMP is therefore $195,900. Excluded from the costs estimates are infrastructure costs which relate to environment and public health but which are already included in the project direct costs. Excluded are also capacity building packages, the remuneration costs for environment specialists who are staff members within BPMO and GBDIG, loan implementation consultants, and technical experts on equipment operation and maintenance, which are covered elsewhere in the project budget

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Table EMP-9: Estimated Budget for Implementation of the Environmental Management Plan

EMP Item Estimated Cost

Mitigation measures $200,000 Environmental impact monitoring $80,000 Training $8,800 Public consultation $7,100

Total $195,900

37. BPMO will bear all environmental impact monitoring costs during the construction stage and the operational stage (at least during first year of operation, and until a PCR is issued) and will ensure the necessary budgets are available for the Baise Environmental Monitoring Center. Contractors will bear the costs for all mitigation measures during construction, including those specified in the tender and contract documents as well as those to mitigate unforeseen impacts due to their construction activities. The O&M units will bear the costs related to mitigation measures during operation. GBDIG and BPMO will bear the costs related to environmental supervision by its own staff. The project as a whole (through BPMO) will bear the costs for training, for coordinating the GRM, and the Loan Implementation Environment Consultants under contract to BPMO.

38. Mechanisms for Feedback and Adjustment

39. The EMP will be updated as needed by GBDIG with assistance from the LIEC when there are design changes, changes in construction methods and program, poor environmental monitoring results, and if mitigation measures prove to be ineffective or inadequate. Based on environmental monitoring and reporting systems in place, GBDIG (with the support of the LIEC) shall assess whether further mitigation measures or improvement in environmental management practices are required as corrective actions. BPMO will inform ADB promptly on any changes to the project and needed adjustments to the EMP. The updated EMP will be submitted by BPMO to ADB for review and approval, and will be disclosed on the project website.

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BMG ADB

BPMO BEPB

Loan implem. BDIG Consultant, including LIEC

Public complaints

EMS, CSC

Contractors (during O&M Units (during construction) cooperation)

Implementation of Mitigation Measures, Monitoring Program, and Public Consultation Plan

Reporting

Supervision

Documentation of EMP Implementation and Performance

Action

Public complaint

Response

Figure EMP-2: Mechanism for Feedback and Adjustment

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Task Start Finish Period 2013 2014 2015 2016 2017 2018 Date Date (Months) 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Urban river rehabilitation and flood control Land acquisition and 9/2013 12/2014 16 resettlement Design and tender 1/2014 6/2014 6 documentation Tendering 7/2014 03/2015 10 River rehabilitation civil 4/2015 3/2016 15 works Stream improvement civil 4/2015 6/2016 15 works Urban transport and associated infrastructure Land acquisition and 9/2013 6/2015 22 resettlement Design and tender 4/2014 6/2016 12 documentation Tendering 1/2015 6/2016 6 Primary and secondary road 10/2015 9/2017 24 construction civil works Associated networks 10/2014 6/2018 21 construction civil works Bridge construction civil 4/2015 9/2017 18 works Construction of bus 7/2015 12/2015 6 terminals Community upgrading and development

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Task Start Finish Period 2013 2014 2015 2016 2017 2018 Date Date (Months) 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Land acquisition and 9/2013 12/2014 16 resettlement Design and tender 3/2014 2/2015 12 documentation Tendering 2/2015 1/2016 12 Social infrastructure construction 1/2016 6/2018 18 Capacity building and project management 3/2014 10/2018 56

EMP-3: Project Implementation Schedule

EMP-39

APPENDIX 3. PROJECT PERFORMANCE MANAGEMENT SYSTEM

PPMS: Indicators, Targets, and Performance Data

Baseline Current Item Performance Monitoring Indicator Target Performance Performance Impact Indicators (to be achieved by (all 2012 unless 1. end of 2025) indicated) Increase of urban density in Dongsun 10,000 people 4,000 people 1.1 area. per km2 per km2 Increase of average annual household 1.2 income in Dongsun CNY9,160 CNY18,320 Increase of population having a positive perception of the environmental quality of along the river 1.3 and stream in Dongsun area 18% 60% 2. Outcome Indicators (by end 2018) Class 5 or 2.1 Water quality in Dongsun Stream Class 3 or better worse Nonrevenue water 2.2 17% 22% 2.3 Incidence of flooding 2% probability 5% probability 3,500 linear 2,000 linear 2.4 Road density m/km2 m/km2 Dongsun population with access to wastewater collection and treatment 2.5 services 0% 90% 3. Output Indicators (by end 2018) Urban river rehabilitation and flood 3.1 control 12.13 km of new flood retention embankment and 155,407 m2 of new 12.13 km 3.1.1 riverfront public open space 155,407 m2 Urban transport and associated 3.2 infrastructure 11 km of new or rehabilitated urban roads with associated infrastructure (water supply, drainage, and 3.2.1 sewerage) 11 km 0 3.2.2 2 bus terminals constructed 2 0 Community upgrading and 3.3 development Represents urban and rural Strengthened Dongsun Community hukou residents Organization includes representation 40% of of urban and rural hukou residents and Committee Represents at least 40% of committee members members are rural hukou 3.3.1 are women women residents only Market, community center, and solid waste transfer station constructed and being used by local residents, Constructed and 3.3.2 including women in use Not constructed Women vendors have use rights to at 50% of leasable 3.3.3 least 50% of leasable area in market area 0%

Baseline Current Item Performance Monitoring Indicator Target Performance Performance Capacity building and project 3.4 management 16 international person-months, 88 national 3.4.1 Consulting services input person-months 0 A 3-year (2014–2017) training plan is 50% or more of developed and implemented, with a participants are 3.4.2 target for 50% participation by women women 4. Safeguard Compliance Indicators Resettlement and Ethnic Minority 4.1 Development 4.1.1 Number of APs resettled, by ethnicity 2,293 Number of APs who claim the project 4.1.2 has made them worse off, by ethnicity 0 4.1.3 Percentage of LAR milestones met 100% 4.2 Environmental Protection Percentage of EMP actions 4.2.1 successfully discharged 100% 0 4.3 Social Safeguards and Development Percentage of social action plan 4.3.1 actions successfully discharged 100% 0 Percentage of gender action plan 4.3.2 actions successfully discharged 100% 0 Percentage of female participants attending community based public 4.3.4 awareness sessions 50% n/a Percentage of women obtaining 4.3.6 construction related jobs 25% n/a Percentage of women obtaining 4.3.7 permanent project related jobs 50% n/a Project Implementation Progress 5. Indicators 5.1 Land Availability Area (percentage) of project land 5.1.1 made available as scheduled >70% n/a Area (percentage) of project land 5.1.2 made available up to 6 months late <30% n/a Area (percentage) of project land 5.1.3 made available over 6 months late 0% n/a 5.2 Contract Letting 5.2.1 Number of contracts let on time >70% n/a 5.2.2 Number delayed 3 months or less <20% n/a 5.2.3 Number delayed 3 to 6 months <10% n/a 5.2.4 Number delayed 6 to 12 months 0% n/a 5.2.5 No delayed more than 12 months 0% n/a 5.3 Contract Completion 5.3.1 Contracts completed on time >70% n/a 5.3.2 Number delayed 3 months or less <20% n/a 5.3.3 Number delayed 3 to 6 months <10% n/a 5.3.4 Number delayed 6 to 12 months 0% n/a 5.3.5 Number delayed more than 12 months 0% n/a

Baseline Current Item Performance Monitoring Indicator Target Performance Performance 5.4 Disbursement Progress Percentage of planned cumulative 5.4.1 disbursement 100% n/a 5.4.2 Percentage of current year target 100% n/a 5.5 Covenant compliance 5.5.1 Number fully complied with 80% or more n/a 5.5.2 Number with delayed compliance 20% or less n/a 5.5.3 Number not complied with none n/a AP = affected person, ha = hectare, km = kilometer, km2 = square kilometer, LAR = land acquisition and resettlement, m = meter, m2 = square meter, n/a = not applicable. Notes: tbd = to be decided once training plan has been finalized, tbi = to be investigated at outset of implementation.

APPENDIX 4. DRAFT TRAINING PLAN

Training program Scope of Training Trainer Trainee ADB’s disbursement procedure • ADB loan disbursement procedure Initial project management BPMO, BFB, BDIG and financial management • Role and responsibility of each specialist stakeholders • Monitoring of fund flow and utilization of Project management consulting loan proceeds service • Risk of delay in disbursement

Organizational financial • Basic financial management of the project Project management consulting BPMO, BFB, BDIG management and financial audit and project implementing entity (e.g., BMG, service system BDIC) • Annual financial audit and its preparation for domestic and ADB requirements

Procurement and contract • ADB’s procurement process Initial project management BPMO, BFB, BDIG management • Bidding document preparation specialist • ADB’s guideline for bid evaluation • Risk of improper procurement and Project management consulting mitigation measures service • Handling variation orders and contract management

Corruption risks in the project • Definition and type of corruption Project management consulting BMG, BPMO, BFB, BDIG implementation and • Risk of corruption under the project service anticorruption measures implementation • Mitigation measures • Institutional framework and anticorruption mechanisms • Case studies and international best practices

Innovative ideas, procedures, • Innovative approach in the area of Project management consulting BMG, BPMO, BFB, BDIG and best practices community upgrading in foreign countries service

Project management • Assist to develop and implement project Project management and BPMO,BDIG management systems capacity development consultants ongoing assistance

Training program Scope of Training Trainer Trainee Basic operation and • Basic facility operation and maintenance of Project management consulting BMAB, BWCB, BDIG management of municipal road, roads, and flood control management service flood control, and long-term • Daily/routine maintenance and monitoring planning • Technical requirement • Facility management (e.g. financial management, governance, emergency response mechanism, occupational health and safety) • Strategic municipal road, flood control planning

Planning for natural and • Institutional framework and stakeholder Project management consulting BMAB, BWCB manmade emergency responses involvement for emergency response and service safety • International experiences and best practices

Innovative community-based • Different forms of alternative media that Project management consulting Bureau responsible for advocacy campaigns can be used in advocacy campaigns service advocacy campaigns, BDIG • Basing campaigns on local values • Piloting campaigns and pre-testing information, education, and communication materials • Involving the local community in running the campaigns

Environmental laws, regulations • Environmental laws and regulations Environment specialists of BPMO, BDIG, and policies • Environmental policies and plans (including project management and BEPB,Contractors the ADB Safeguard Policy Statement capacity development consulting [2009]) service • Basic environmental management • Emergency preparedness and response

EMP implementation • Responsibility and duties for the project Environment specialists of BPMO, BDIG, BEPB, construction, management and project management and contractors environmental protection capacity development consulting • Task of environmental protection in the service project construction

Training program Scope of Training Trainer Trainee • Key environmental protection contents etc. in project construction • Various environmental reporting • EMP improvement and corrective actions

Environmental health and safety, • Environmental health and safety for the Environment specialists of BPMO, BDIG, BEPB, emergency planning and construction: protective practices and project management and contractors response equipment, safe working environments, capacity development consulting community safety service • Emergency preparedness and response mechanism for construction projects

GRM Implementation • GRM structure, responsibilities, timeframe Environment specialists of BPMO, BDIG, BEPB, • Types of grievances, eligibility assessment project management and contractors • Reporting procedures capacity development consulting service

Environmental monitoring, • Monitoring and inspection methods, data Environment specialists of BPMO, BDIG, BEPB, inspection and reporting collection and processing, interpretation of project management and contractors, environmental data, reporting system capacity development consulting monitoring center • Environmental reporting requirements. service

ADB = Asian Development Bank, BDIG = Baise Development and Investment Group, BEPB = Baise Environmental Protection Bureau, BFB = Baise Finance Bureau, BMAB = Baise Municipal Administration Bureau, BPMO = Baise project management office, BWCB = Baise Water Conservancy Bureau, EMP = environmental management plan, GRM = grievance redress mechanism, REMDP = resettlement and ethnic minority development plan.

APPENDIX 5. COMMUNITY DEVELOPMENT ACTION PLAN FOR THE GUANGXI B AISE INTE GR ATED URBAN ENVIRONMENT IMPROVEME NT PR OJ E CT (2013–2018)

Agencies Funding Source Objectives Activities Responsible and Time Frame Monitoring Indicators Objective1: • Reorganizing the existing DNC Baise DRC, Project budget for • Revised membership of the Establishing a • Staffing the Committee Baise PMO DNC support committee includes all community-based • Defining the committee’s mission, roles and (USD 50,000); Dongsun social groups organization to responsibilities in the community development 2013-2018 • Mission, roles and represent the entire process responsibilities for the community • Selecting committee members based on committee formulated nomination by each social group.

Objective 2: • Awareness building training on community-based Baise DRC, Project budget for • Strengthened community- Enhancing the development Baise PMO and DNC support based organization consults capacity of • Knowledge training on participatory approach and NGOs. (USD 50,000); 60% of residents, including committee to lead community-based projects 2013-2018 60% of female residents, the community • Study tour to learn other cases of community during detailed urban, development development outside Baise economic, and infrastructure process planning phases • No. of committee members trained • % of residents participating in community development

Objective 3: • Establish relations with relevant BMG agencies DNC Consulting • Community preferences and Community • Reach out to community and refine understanding services budget priorities identified participation in of their preferences and priorities re: resettlement for Community • Satisfaction survey of local resettlement • Participate in planning sessions with BMG agencies Development residents re: resettlement planning during the resettlement process to express local (approx. outcomes priorities and try to secure desired outcomes $100,000); Other sources 2013-2015

Objectives Activities Agencies Funding Source Monitoring Indicators Responsible and Time Frame

Objective 4: • Establish relations with BMG agencies leading DNC Consulting • % increase of median Community economic development planning and BMG services budget monthly household income in participation in local implementation for Community Dongsun 2013-2018 economic • Reach out to community and refine understanding Development • No. of meetings with BMG on development of their preferences and priorities re: future ($100,000); economic development economic base, priority sectors, job opportunities, Other sources planning training needs 2013-2018 • No. of new small and • Participate in planning sessions with BMG agencies medium enterprises during the local economic development process to established express local priorities and try to secure desired outcomes • Support the emergence of small and medium enterprises with information about opportunities and service providers Objective 5: • Collect and make available to local residents DNC Project budget for • No. of poor and unemployed Providing information on employment opportunities DNC support residents getting a job employment • Evaluate employment status and disseminate the (USD 50,000); opportunities for results with community residents 2013-2018 disadvantaged groups like the poor and the unemployed in the community DNC = Dongsun Neighborhood Committee, DRC = development reform commission, PMO = project management office.