Jilin Yanji Low-Carbon Climate-Resilient Healthy City Project ABBREVIATIONS

Project Administration Manual

Project Number: 50322-002 Loan Number: xxxx November 2019

People’s Republic of China: Jilin Yanji Low-Carbon Climate-Resilient Healthy City Project ABBREVIATIONS

ADB – Asian Development Bank BRT – bus rapid transit DEIA – domestic environmental impact assessment DMF – design and monitoring framework EMP – environmental management plan FMA – financial management assessment GDP – gross domestic product HIA – health impact assessment ICT – information and communication technology IEE – initial environmental examination km – kilometer km2 – square kilometer NMT – nonmotorized transport NRW – nonrevenue water PAM – project administration manual PIU – project implementation unit PMO – project management office PRC – People’s Republic of China SGAP – social and gender action plan SPRSS – summary poverty reduction and social strategy SPS – Safeguard Policy Statement TOD – transit-oriented development WHO – World Health Organization YCG – Yanji city government CONTENTS I. PROJECT DESCRIPTION 1 II. IMPLEMENTATION PLANS 8 A. Project Readiness Activities 8 B. Overall Project Implementation Plan 9 III. PROJECT MANAGEMENT ARRANGEMENTS 13 A. Project Implementation Organizations: Roles and Responsibilities 13 B. Key Persons Involved in Implementation 14 C. Project Organization Structure 15 IV. COSTS AND FINANCING 16 A. Cost Estimates Preparation and Revisions 16 B. Key Assumptions 17 C. Investment and Financing Plans 17 D. Detailed Cost Estimates by Expenditure Category 19 E. Allocation and Withdrawal of Loan Proceeds 20 F. Detailed Cost Estimates by Financier 21 G. Detailed Cost Estimates by Outputs 22 H. Detailed Cost Estimates by Year 23 I. Contract and Disbursement S-Curve 24 J. Fund Flow Diagram 26 V. FINANCIAL MANAGEMENT 27 A. Financial Management Assessment 27 B. Disbursement 28 C. Accounting 30 D. Auditing and Public Disclosure 30 VI. PROCUREMENT AND CONSULTING SERVICES 31 A. Advance Contracting and Retroactive Financing 32 B. Procurement of Goods, Works, and Consulting Services 32 C. Procurement Plan 34 D. Consultant's Terms of Reference 43 VII. SAFEGUARDS 71 A. Environment 71 B. Involuntary Resettlement 71 C. Indigenous Peoples 72 VIII. GENDER AND SOCIAL DIMENSIONS 72 IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION 80 A. Project Design and Monitoring Framework 80 B. Monitoring 83 C. Evaluation 86 D. Reporting 87 E. Stakeholder Communication Strategy 88

X. ANTICORRUPTION POLICY 89 XI. ACCOUNTABILITY MECHANISM 90 XII. RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL 90

APPENDIX

Executing Agency’s Progress Report Contents 91

Project Administration Manual Purpose and Process

The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with the policies and procedures of the government and Asian Development Bank (ADB). The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM.

The Yanji city government as executing agency; and the Yanji city transport bureau, Yanji city housing and construction bureau, Yanji city traffic police, Chaoyangchuan township government, and Yanji Water Group Company Limited as implementing agencies are wholly responsible for the implementation of ADB-financed projects, as agreed jointly between the borrower and ADB, and in accordance with the policies and procedures of the government and ADB. ADB staff is responsible for supporting implementation including compliance by executing and implementing agencies of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures.

At loan negotiations, the borrower and ADB shall agree to the PAM and ensure consistency with the loan agreement and project 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 and project agreement, the provisions of the loan agreement and project 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.

I. PROJECT DESCRIPTION

1. Rationale. The project is located in Yanji city, which faces challenges of poor urban livability and traffic management, exposure to climate-related flood risk, and risks to water security and safety. The project will provide multiple cross-benefits from an integrated solution provided to improve the urban livability of a medium-sized city, which is timely and essential to lessen the migration to the coastal mega-urban regions and to provide a demonstration project for replication in the People’s Republic of China (PRC). It will contribute to (i) regional public goods of health and improved air and water quality, and (ii) revitalizing the economically challenged northeast area of the PRC.

2. The project will support the first bus rapid transit (BRT) corridor in the northeast of the PRC and transform Yanji’s urban geography. This will reinforce the east–west linear city arrangement through connecting key areas following principles of transit-oriented development (TOD) with higher density mixed-use and pedestrian-friendly center areas around the BRT stations. It will integrate nonmotorized transport (NMT) lanes and facilities along the corridor, and a series of small roads and river greenways will be provided to ensure safe and pleasant pedestrian and bicycle access to the BRT stations while promoting low-carbon urban mobility and physical activities that enhance public health. The project-supported greenways are designed as “sponge city” green infrastructure, enhancing climate resilience and urban livability.1 The project will improve the water supply and wastewater management systems to ensure safe and climate- resilient access to water supply and improved water quality. Capacity development will contribute to the preparation of action plans to demonstrate Yanji as a low-carbon, climate-resilient, and healthy city, contributing to the implementation of the Healthy China 2030 program,2 and lessons and knowledge will be shared with other developing member countries.

3. Yanji city is part of the Yanbian Korean Autonomous Prefecture in the east of Jilin province, bordering the Democratic People's Republic of Korea to the southeast and the Russian Federation to the northeast. Yanji is an ancient city on the Buer Hatong River surrounded by hills, and its easternmost border is about 15 kilometers (km) from the sea. Yanji’s total population was about 0.60 million in 2018 (about 0.48 million of whom are urban) with about 50.2% being ethnic Koreans, who are well-integrated and live in harmony with the Han Chinese.3 The total land area is 1,748 square kilometers.4 In 2017, the city’s gross domestic product (GDP) was CNY33.6 billion and GDP per capita was CNY61,431.The contributions to the GDP by main industry sectors in 2017 were agriculture (1.4% of GDP in 2017), manufacturing (36.8%), and services industry (61.8%). Yanji is affected by the regional economic decline of the northeastern PRC, and the city relies mainly on tourism and associated services, processing of agricultural products, and logistics services.

4. Key development challenges. The city suffers from inadequate urban infrastructure and provision of basic services that cause inconvenience and disruptions to daily life, especially for women. This includes inefficient public transport, traffic congestion and poor parking management, urban and river flooding, and inefficient water supply and wastewater management.

1 Sponge city is a concept of comprehensive urban water resources management, in which greenways, parks, and wetlands maximize ecosystem services, including storm water management, using ecosystem-based adaptation. 2 Government of the PRC, State Council. 2016. The Healthy China 2030. Beijing. 3 Population information of 2018 was collected directly from all the districts, townships, and local communities. 4 Chaoyangchuan township, previously administered by Longjing city, was included under the administration of Yanji in 2008, thus contributing to the rural population increase. 2

5. Urban roads suffer from traffic congestion, especially during rush hours, and missing network links. Many elements of the road network and intersections pose safety problems for vehicles and people. There is a lack of safe bicycle lanes, sidewalks, and pedestrian crossings in many areas. Many cars are parked on sidewalks, creating obstacles for and safety risks to pedestrians. The increase of private cars leads to worsening traffic, increased air pollution and less healthy lifestyles with people walking less. In 2017 there were a total of 152,000 cars in Yanji, which is about 300 vehicles per 1,000 urban residents, and an increase from 96,000 units in 2012. Traffic management and signal control is outdated with suboptimal and unsafe intersections, especially in the congested urban core. The public transport system is inefficient, inconvenient, and unsafe; buses jam in bus stop areas and people get on and off on the streets. Further, there is an urgent need to upgrade and extend public transport into the periphery. Currently, 43 bus routes traverse six roads with a total route length of 490 km and a daily ridership of about 243,000 passengers. The public transport system does not match the needs of a growing population and may cause reduced ridership due to an increase in private vehicle use as people switch modes because of unreliable public transport service and bus shelters that lack weather protection.

6. Flooding is a significant problem during the rainy season in June–July, with flooding for about 5 days per year on average in recent years. River flooding, flash floods, and urban flooding endanger lives, property, and livelihoods, and pose disturbances to traffic and public life. The combined sewer and drainage pipe system is outdated, with a total network length of 326 km, comprising 110 km of sewers, 40 km of drainage pipes, and 176 km of combined sewer and drainage pipes. Only 11.6% of the pipe network meets the domestically required 1-in-3 year flood design standard, causing pluvial flooding during heavy summer rains. The Chaoyang River urban catchment area is currently exposed to flood risks of 1-in-20 year flood events.

7. Yanji city’s water supply system is inefficient. It has two water reservoirs and two water treatment plants with a total combined treatment capacity of 210,000 cubic meters (m3) per day; 150,000 m3/day of treated water meets national water quality standards and is provided as continuous round-the-clock service to end users. The system covers about 98% of the urban area and population with 348 km of water distribution pipes, 91 booster pumps, and around 215,000 water meters. The key challenge is the high level of nonrevenue water (NRW) which was 46% in 2017, comprising 9% in commercial losses and 37% in physical water losses mainly because of aging pipes that were laid in the 1930s and 1970s. It is difficult to detect leaks in deeply buried pipes because of cold climate conditions and incomplete information on pipe locations because of missing and unreliable maps of the old pipe system and poor geographic information system (GIS) management. While the city benefitted from a previous Asian Development Bank (ADB) loan, the above challenges remain.5 Wastewater is collected and treated at two wastewater treatment plants with a combined capacity of 150,000 m3/day. Tariffs for domestic water users are CNY3.20/m3 for water supply and an additional CNY0.95/m3 for wastewater.

8. Strategic fit. The project will support urban livability of a medium-sized city, contributing to ADB’s strategic support to the PRC’s revitalization and strengthening of the northeast including four cities in East Heilongjiang, north of Yanji.6 Through its strategic and integrated approach, the project will support (i) the thirteenth five-year plans of Jilin province and Yanji city, 2016–2020; (ii) the PRC’s National New-Type Urbanization Plan, 2014–2020, aligning with Yanji’s investment program as one of the PRC’s pilot cities;7 and (iii) Yanji’s urban and economic development

5 ADB. People's Republic of China: Jilin Urban Environmental Improvement Project. The project supported water treatment plants, transmission pipes, wastewater treatment plant, and central heating system improvement. 6 ADB. People’s Republic of China: Heilongjiang Green Urban and Economic Revitalization Project. 7 Government of the PRC, State Council. 2014. National New-Type Urbanization Plan, 2014–2020. Beijing.

master plan (2009–2030) and transport master plan.8 The proposed project is included in ADB’s country operations business plan for the PRC, 2018–2020 and is aligned with ADB’s (i) country partnership strategy for the PRC, 2016–2020, supporting socially inclusive, environmentally sustainable, and economically competitive development; and (ii) ADB’s Strategy 2030 operational priority on livable cities, and support to upper middle-income countries by (a) providing integrated solutions for a livable city demonstrating low-carbon climate-resilient healthy city development generating synergies and cobenefits, contributing to regional public goods, (b) enhancing resilience to climate change shocks and stresses including reducing flood risk and increasing water safety and security, (c) strengthening institutional knowledge and capacity building, and (d) sharing best practices and innovation experiences for south–south cooperation.9

9. Lessons learned. The project continues the more than 23 years of strategic partnership between Jilin province and ADB in areas of masterplanning, environmental improvement and urban infrastructure, among others. The project will incorporate lessons from independent evaluation reports and similar ADB projects in Jilin province.10 It will support the sustainability of a previous ADB-financed project in Yanji (footnote 5) which supported (i) water supply system construction including a water treatment plant, raw water transmission pipes, water mains, and distribution pipes; and (ii) central heating improvements, which led to significant improvement in air quality and public health because of the closure of about 330 inefficient coal-fired boilers, which resulted in an increase in class II air quality standards from 285 days in 2006 to 334 days in 2012. The BRT component is expected to further improve air quality. Lessons were incorporated from sustainable urban transport projects, i.e., in Gansu Lanzhou, Hubei Yichang, and Shandong Jinan, including the benefits of (i) integration of BRT with NMT improvements on enhanced BRT use, and (ii) overall improved urban transport sustainability and livability from reduced air and noise pollution and enhanced traffic flow and safety.11 Lessons from flood risk management projects, like in Jiangxi Pingxiang, include that green sponge city infrastructure yields multiple benefits such as effective flood defense and water infiltration and cleansing, increased biodiversity and enhanced recreation functions, and promotion of more walking and cycling.12 Lessons are applied from technical assistance projects such as adequate water and wastewater tariffs for financial sustainability, effective urban storm water management, and urban climate change adaptation.13

10. Asian Development Bank’s value addition, innovations, and pilots. ADB provides an innovative, spatially integrated solution to low-carbon, climate-resilient, healthy city planning, and infrastructure investment prioritization and finance to optimize cobenefits across sectors aiming at urban livability. Specifically, ADB value addition includes (i) TOD-based integrated urban planning was introduced to enable higher density mixed-use, pedestrian-friendly areas, which

8 Yanji city government. 2009. Yanji City General Urban Master Development Plan (2009–2030). Yanji city. 9 ADB. 2018. Country Operations Business Plan: People’s Republic of China, 2018–2020. Manila; ADB. 2016. Country Partnership Strategy: People's Republic of China, 2016–2020—Transforming Partnership: People's Republic of China and Asian Development Bank. Manila; and ADB. 2018. Strategy 2030: Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific. Manila. 10 This is ADB’s fifth urban project in Jilin province and, hence, a good number of lessons were applied to strengthen and improve the design of the proposed project, including lessons from ADB. People’s Republic of China: Songhua River Basin Water Pollution Control and Management Project. 11 ADB. People’s Republic of China: Lanzhou Sustainable Urban Transport Project; ADB. People’s Republic of China: Hubei-Yichang Sustainable Urban Transport Project; and ADB. People’s Republic of China: Shandong Spring City Green Modern Trolley Bus Demonstration Project. 12 ADB. People’s Republic of China: Jiangxi Pingxiang Integrated Rural–Urban Infrastructure Development Project. 13 ADB. 1997. Technical Assistance to the People’s Republic of China for Water Supply Tariff Study II. Manila; and ADB. 2001. Technical Assistance to the People’s Republic of China for National Guidelines on Urban Wastewater Tariffs and Management Study. Manila.

reduces traffic demand and promotes the use of public transport through proximity and links of housing with commercial businesses, job centers, and public services, including health facilities and schools, which reduces air pollution and greenhouse gas emissions; (ii) best practices in BRT corridor and station planning and design were provided based on detailed surveys, which will be further enhanced by traffic impact assessment, traffic and parking management plans, and investment in intelligent transport system equipment; (iii) a detailed digital hydraulic model was developed for the project and piloted as an expert tool that simulates future storm scenarios and adaptation options integrating underground drainage pipe network improvements with at-grade sponge city green infrastructure. Improvements to drainage and flow capacity, combined with increased stormwater retention and infiltration capacity, were quantified, visualized, and evaluated to optimize flood risk reduction and investments and green space benefits; and (iv) water utility corporate governance and NRW reduction assessment and technology was introduced, and effective NRW will be implemented.

11. A health impact assessment (HIA) following the ADB Health Sector Group’s guidance was prepared to assess and enhance expected health benefits of the project, e.g., water and air quality improvements; noise reductions; and healthier lifestyles enabled through more use of public transport, walking, cycling, and generally more physical activity from sponge city open spaces and river greenways. Health benefits were further facilitated by applying universal design principles to public spaces and facilities, benefitting especially elderly and physically impaired people, women, and children.14 A pilot healthy and age-friendly city action and monitoring plan will be prepared during project implementation to support the Healthy China 2030 program (footnote 2). Further, smart-city infrastructure using high-level information and communication technology (ICT) and a big data platform using the Internet of Things and artificial intelligence to integrate and manage data for the investment components and aiming at higher levels of cross- sector integration in Yanji was introduced, including intelligent transport system equipment, smart water metering, and using data to alert of unusual consumption patterns that may be related to changing health, especially of the elderly.

12. Impact and Outcome. The project is aligned with the following impact: inclusive, environmentally sustainable, and competitive development of Yanji city achieved (footnote 8). The project will have the following outcome: livability, low-carbon development, climate resilience, and health in Yanji city improved.15

13. Outputs. The project will have four outputs that are integrated and expected to generate cobenefits and higher efficiencies. The project focus is on the first BRT line in the northeast and the city; NMT improvements and its integration with sponge city infrastructure and drainage; and water supply system safety and efficiency improvements. The project will support comprehensive, low-carbon, climate-resilient development parallel to and north of the Buer Hatong River, organized along a BRT corridor connecting the industrial park developments and job centers in the east and west of the urban area, and linking many residential districts with the city center, business and retail center, station for high-speed rail, government center, Yanbian University, schools, hospitals, and parks. The overall concept will follow the principles of TOD, focusing on higher density mixed-use and pedestrian-friendly center areas around the BRT stations promoting low-carbon urban mobility. New green spaces will (i) link station areas with project-supported riverfront greenways, creating a network of sponge city infrastructure enhancing climate resilience

14 ADB. Forthcoming. A Health Impact Assessment Framework for Healthy and Age Friendly Cities in the People’s Republic of China. Manila. 15 The design and monitoring framework is in Appendix 1. 5

and urban livability; and (ii) enable more healthy lifestyles for residents and tourists, hence contributing to healthy and age-friendly city development, applying universal design principles.

14. Output 1: Low-carbon bus rapid transit line integrated with nonmotorized transport infrastructure constructed. This output includes (i) planning and constructing a 20-km BRT corridor on Gongyuan Road and Renmin Road in an east–west direction, with about 25 stations, integrated with improved small road links with safe pedestrian and bicycle links to stations and including associated utility pipes, trees, and greening; (ii) procuring a fleet of 100 clean-energy buses and constructing a bus terminal and maintenance center; (iii) installing equipment for smart ticketing and a BRT control center with smart information and communication technology (ICT) monitoring and system-wide, real-time data of bus locations and operation; (iv) removing sidewalk parking, and adding landscaping of public spaces in five locations near BRT stations with installation of exercise equipment; and (v) installing mechanical parking structures for park-and- ride near selected BRT stations and implementing the parking management plan developed under output 4.

15. Output 2: Climate-resilient flood risk management and sponge city green infrastructure constructed. This output includes (i) constructing sponge city green infrastructure in residential areas within the catchment of creeks, integrated with improved and separated drainage pipes (at least 43 km) and wastewater pipes (at least 40 km),16 using results from detailed hydraulic modeling and thereby significantly reducing climate-related pluvial and fluvial flood risks (according to the project’s hydraulic model up to 1-in-50 year flood events), and improving the water quality through construction of sedimentation tanks and reed-bed sand filters at the end of drainage pipes; and (ii) ecological river rehabilitation of the Chaoyang River, improving the flood protection standard from 1-in-20 year floods to 1-in-50 year flood events. Included is bio-engineering as in-stream solutions in the river bed and green embankments, and building pedestrian and bicycle paths with tree planting along this greenway.

16. Output 3: Water supply system improved. This output will improve the water supply system, including (i) installing about 330 flow meters for hydraulic zones and district metering area management, and installing about 4,000 smart water meters in older residential areas; and (ii) upgrading and replacing about 32 km of water supply pipes, including building up hydraulic zones. This follows two already completed phases of an improvement program of the water supply system wholly carried out by the city-owned water group company. This is expected to reduce NRW from the current 46% to 37% during project implementation, conserving about 4.8 million m3 of water resources each year as a result of the project, as part of the water group company’s overall plan to reduce NRW to 20% by 2030. Further NRW reductions will be enabled through a capacity development and utility twinning program under output 4, and proposed further investments may be included in the contract packages of this output as appropriate.

17. Output 4: Capacity in low-carbon, climate-resilient, healthy city planning, and infrastructure management developed. This output will support project management and quality assurance; external safeguards monitoring; and capacity development for inclusive and gender-sensitive low-carbon, climate-resilient, and healthy city planning and implementation including smart-city ICT application to enhance the sustainability of the project. Activities will include support to and capacity development in (i) project implementation, management, and monitoring; (ii) low-carbon city and TOD planning; traffic impact assessment and evaluation; parking management planning; BRT operation capacity development and network planning; and pedestrian, bicycle system, and universal design masterplan preparation; (iii) urban climate

16 Civil works contracts under output 1 will integrate construction and installation of drainage and wastewater pipes.

change adaptation and sponge city action planning, open space planning, and hydraulic modeling and simulation; (iv) healthy and age-friendly city master planning and health monitoring, contributing to Healthy China 2030 (footnote 2); (v) water safety planning; NRW reduction and leakage identification and management; and development of an integrated water management system including smart systems using cloud data, supervisory control and data acquisition (SCADA), GIS, and asset management systems as part of smart-city applications; and (vi) GIS platform development and smart-city implementation action planning. Lessons and knowledge will be shared with other developing member countries in the form of guidelines for replication and knowledge-sharing events in Yanji and reports to international and domestic conferences.

Table 1: Detailed Description of Outputs Output 1: Low-carbon bus-rapid transit line integrated with nonmotorized transport infrastructure constructed (i) Planning and construction of bus rapid transit (BRT) corridor line number 1 in east–west direction with about 20 km in length and integrated with safe pedestrian sidewalks and crossings to stations and bicycle lanes. (ii) About 25 BRT stations and terminal building. Five stations in city center have higher demand thus station design should be carefully developed as part of the traffic impact assessment (TIA), especially from aspects of station layout and intersections. One station on the west part of the corridor will be constructed first as a demonstration pilot followed by 4 stations in the first year of construction. Five stations in the northwestern industrial park would be designed in a simpler way to consider the relatively lower demand while benefitting from the BRT service to this industry jobs center. (iii) A bus terminal and maintenance center will be constructed on the existing site in east industrial park and multi-floor structure will be designed and constructed. (iv) Equipment for smart ticketing will be installed and a BRT control center with smart monitoring and system- wide real-time data of bus locations and operation will be built and equipped. (v) A fleet of 100 clean-energy buses will be purchased. (vi) Improved small road links perpendicular to the BRT corridor with safe pedestrian sidewalks and/or paths and bicycle lanes and/or paths linking to BRT stations inclusive of associated utility pipes, i.e., drainage to solve urban flooding (see also output 2). (vii) Six locations of public space in station area are proposed with installation of exercise equipment. (viii) Covered walkway will be designed in plaza of high-speed railway station which can benefit passengers who transfer between BRT and railway. (ix) TIA (part of output 4). While survey data have been collected as part of the feasibility study report preparation and by the transaction technical assistance (TRTA) consultants, a more detailed evaluation and modelling work is required to be carried out especially for intersections and network before and after the implementation. A TIA for corridor area especially in city center will provide conclusions of impact to concerned mixed traffic and solutions to major intersections in focal areas to support and guide a rational design of stations, traffic lanes, and intersections. (x) Parking management (part of output 4) will study the removal of currently assigned parking spaces on sidewalks and construction of mechanical parking structures, as park-and-ride near stations along the corridor, including overall parking management. The parking study will be carried out before implementation of the BRT to choose an adequate parking policy based on the knowledge from the best practices of parking strategy and management which will also benefit BRT acceptance and improve ridership as more car-based trips are expected to be diverted to BRT and nonmotorized transport (NMT). Output 2: Climate-resilient flood risk management and sponge city green infrastructure constructed (i) Drainage network improvement along BRT corridor and along small roads (part of output 1) and in the core area of the city north of the Buer Hatong River and key areas experiencing urban flooding especially in three catchment areas, namely Dongxing Creek, Xinxing Creek, and Guangjin Creek areas. Construction of new wastewater and new stormwater collection pipelines to reduce the pluvial flooding risks, and reduce the pollution of water bodies, to increase further and reach the standard of the pollutant concentration of wastewater to ensure the treatment efficiency of wastewater treatment plant. (ii) Sponge city green infrastructure in catchment areas of Dongxing Creek, Xinxing Creek and Guangjin Creek in selected residential areas within these three local watersheds in the old city integrated with an improved drainage pipe network. (a) Construction of rain gardens and impermeable parking lots in selected residential areas (Dongxing Creek: Yanbei Xiaoqu, Danyan Xiaoqu, Shuian Dijing, Ruifeng Jiayuan, Shenhua Jingguan Gongyu; Guangjin Creek: Linyu Dongcheng, Dongzhu Jiayuan, Qiuyun Yayuan west part, Dongbu Jiayuan, Yueguang Huayuan, Hongyuan Xiaoqu, Fuyou Baojiansuo) to sustainably reduce pluvial flood risks 7

and pollution from first flush and enhance the base flow of creeks and further improve climate resilience. (b) Construction of “end-of-pipe solution” sedimentation tanks and reed-bed-sand-filters to detain and cleanse the first flush and infiltration water. The cleansed water will help to increase the basic flow of river/creek. (c) Construction of sponge city measures along NMT sidewalks and lanes and greenways to detain and cleanse storm water road runoff (associated with construction of output 1). (iii) Ecological river rehabilitation with in-stream design methods on river bed and green embankments applied with bioengineering methods will be constructed integrating a pedestrian and bicycle path on the Chaoyang River. Construction of ecological restoration and upgrading of flood protection standard from 1-in-20 year to 1-in-50 year flood events of Chaoyang River by applying bioengineering methods at embankment for restoration and stabilization and in-stream design on river bed with setup of stones and native damp- and drought-tolerant plants to prevent erosion of river and provide habitats for local fauna and flora. Pedestrian and bicycle pathways on Chaoyang River along ecologically landscaped river greenways to enhance accessibility and urban livability. (iv) Detailed hydraulic modelling (part of output 4) integrating systemically a simulation of drainage network system and at grade urban runoff and infiltration with sponge city green infrastructure measures and preparation of a sponge city masterplan for the whole city (part of output 4) building on the TRTA model and sponge city masterplan that was completed for the north part of the city, north of the Buer Hatong River. Output 3: Water supply system improved This output follows two already completed phases of an improvement program of the water supply system carried out by the wholly city-owned Yanji Water Group Company Limited. (i) Installation of about 330 flow meters for district metering area management. (ii) Upgrading and replacement of about 32 kilometers of water supply pipes. (iii) About 4,000 smart water meters in the older residential areas. (iv) A nonrevenue water (NRW) reduction management plan to reduce NRW from currently 46% to 37% is included under output 4. (v) Under output 2 is the construction of about 43 km of separate sewer and drainage pipes to improve the wastewater management (and urban drainage) system. Output 4: Capacity in low-carbon, climate-resilient, healthy city planning, and infrastructure management developed (i) Support to project implementation, project management, technical design review, safeguards plan updates and safeguards compliance, procurement, disbursement, financial management, contract management, construction supervision and quality assurance, and project progress and safeguards monitoring and reporting and associated capacity development; (ii) Support to project startup activities and advance procurement and retroactive financing; (iii) External safeguards monitoring and capacity development; (iv) Low-Carbon City Action Plan preparation; (v) Traffic impact assessment and evaluation; (vi) Parking management study preparation; (vii) BRT operation capacity development, and network planning; (viii) Pedestrian and bicycle, and universal design masterplan preparation; (ix) Urban climate change adaptation and sponge city action plan preparation including detailed hydraulic modeling and simulation; (x) Remote sensing data analysis and application training; (xi) Open space masterplan preparation; (xii) Healthy and age-friendly city masterplan contributing to Healthy China 2030; (xiii) Public health monitoring and management program development; (xiv) Asian Development Bank healthy city pilot program support and training; (xv) Water safety plan preparation; (xvi) NRW reduction and leakage identification and NRW management plan; (xvii) Water utility twinning partnership.

II. IMPLEMENTATION PLANS

A. Project Readiness Activities

Table 2: Project Readiness Activities 2019 2020 Responsible (Months) (Months) Individual/ Indicative Unit/Agency/ Activities 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 Government Advance YCG, contracting implementing actions including agencies, bid document PMO, PIUs preparation Bid documents YCG, and bid implementing evaluation report agencies, review and PMO, PIUs approval and contract award Retroactive YCG, financing actions implementing agencies, PMO, PIUs Establish project YCG, implementation implementing arrangements agencies, PMO, PIUs Feasibility study JPG, JDRC, reports, EIA, implementing resettlement agencies, plans, and PMO FCUP approved by JDRC FCUP approved JPG, JDRC, by NDRC implementing agencies, PMO Loan ADB, MOF, negotiations JPG, implementing agencies ADB Board ADB approval Loan signing ADB, MOF Government MOF, MOFA legal opinion provided Government MOF, JPG, budget inclusion implementing agencies Loan ADB, MOF effectiveness ADB = Asian Development Bank, EIA = environmental impact assessment, FCUP = foreign capital utilization plan, JDRC = Jilin Development and Reform Commission, JPG = Jilin provincial government, MOF = Ministry of Finance, MOFA = Ministry of Foreign Affairs, NDRC = National Development and Reform Commission, PIU = project implementation unit, PMO = project management office, YCG = Yanji city government. Source: ADB estimates.

B. Overall Project Implementation Plan

18. A Gantt chart recording outputs with key implementation activities (on a quarterly basis) that is updated annually and submitted to ADB with contract and disbursement projections for the 17 following year is presented in Table 3.15F

Table 3: Overall Project Implementation Plan 2020 2021 2022 2023 2024 2025 2026 2027 Indicative (Qtr) (Qtr) (Qtr) (Qtr) (Qtr) (Qtr) (Qtr) (Qtr) Activities 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 Output 1: Low-carbon bus rapid transit line integrated with nonmotorized transport infrastructure constructed BRT-W1: West BRT Corridor, NMT connectors, and pipe works Engineering 1 design Implement 2 resettlement plan Procure civil 3 works 4 Construct Inspect and 5 deliver BRT-W2: Northwest BRT Corridor, NMT connectors, and pipe works Engineering 1 design Implement 2 resettlement plan Procure civil 3 works 4 Construct Inspect and 5 deliver BRT-W3: Center BRT Corridor, NMT connectors, and pipe works Engineering 1 design Implement 2 resettlement plan Procure civil 3 works 4 Construct Inspect and 5 deliver BRT-W4: East BRT Corridor, NMT connectors, and pipe works Engineering 1 design Implement 2 resettlement plan Procure civil 3 works 4 Construct Inspect and 5 deliver

17 Gantt chart available in e-handbook on project implementation at http://www.adb.org/documents/handbooks/project- implementation/

2020 2021 2022 2023 2024 2025 2026 2027 Indicative (Qtr) (Qtr) (Qtr) (Qtr) (Qtr) (Qtr) (Qtr) (Qtr) Activities 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 BRT-W5: BRT station civil works Engineering 1 design Implement 2 resettlement plan Procure civil 3 works 4 Construct Inspect and 5 deliver BRT-G1: BRT system equipment Engineering 1 design Procure 2 goods 3 Installation Inspect and 4 deliver BRT-G2: BRT command center upgrade and intelligent command equipment Engineering 1 design Procure 2 goods 3 Installation Inspect and 4 deliver TR-G1: Traffic police management equipment Engineering 1 design Procure 2 goods 3 Installation Inspect and 4 deliver TR-W1: Traffic police management equipment Engineering 1 design Implement 2 resettlement plan Procure civil 3 works 4 Construct Inspect and 5 deliver Output 2: Climate-resilient flood risk management and sponge city green infrastructure constructed FL-W1-Lot 1: Flood risk management and sponge city infrastructure in Dongxing Creek area including pipes, end-of- pipe treatment, and sponge city green infrastructure in residential area Engineering 1 design Implement 2 resettlement plan Procure civil 3 works 4 Construct 11

2020 2021 2022 2023 2024 2025 2026 2027 Indicative (Qtr) (Qtr) (Qtr) (Qtr) (Qtr) (Qtr) (Qtr) (Qtr) Activities 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 Inspect and 5 deliver FL-W1-Lot 2: Flood risk management and sponge city infrastructure in Xinxing Creek area including pipes and end- of-pipe treatments Engineering 1 design Implement 2 resettlement plan Procure civil 3 works 4 Construct Inspect and 5 deliver FL-W1-Lot 3: Flood risk management and sponge city infrastructure in Guangjin Creek area including pipes, end-of- pipe, and sponge in residential area Engineering 1 design Implement 2 resettlement plan Procure civil 3 works 4 Construct Inspect and 5 deliver FL-W2: Flood risk management and sponge city green infrastructure in Chaoyang River area Engineering 1 design Implement 2 resettlement plan Procure civil 3 works 4 Construct Inspect and 5 deliver Output 3: Water supply system improved WS-G1: Water supply equipment including flow meters and smart water meters (advance package) Engineering 1 design Procure 2 goods 3 Installation Inspect and 4 deliver WS-W1: Municipal water supply pipeline works Engineering 1 design Implement 2 resettlement plan Procure civil 3 works 4 Construct Inspect and 5 deliver

2020 2021 2022 2023 2024 2025 2026 2027 Indicative (Qtr) (Qtr) (Qtr) (Qtr) (Qtr) (Qtr) (Qtr) (Qtr) Activities 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 Output 4: Capacity in low-carbon, climate-resilient, healthy city planning, and infrastructure management developed Project 1 implementat ion Startup 2 consulting services Social 3 monitoring services Consulting services for low-carbon 4 city action plan preparation Consulting 5 service for sponge city Consulting 6 services for healthy city Consulting services for 7 NRW reduction BRT = bus rapid transit, NMT = nonmotorized transport NRW = nonrevenue water. Source: Asian Development Bank estimates. 13

III. PROJECT MANAGEMENT ARRANGEMENTS

A. Project Implementation Organizations: Roles and Responsibilities

Table 4: Project Management Arrangements Project Management Roles and Responsibilities Implementation Organizations Jilin provincial  Provide overall project guidance government  Oversee project preparation and implementation (Development and  Provide overall policy guidance and overall coordination Reform Commission,  Establish and manage project advance account and monitor withdrawal Finance Department) applications and disbursement Yanbian Korean  Manage funds flow through account Autonomous Prefecture Finance Department Executing Agency:  Responsible for overall project implementation Yanji city government  Supervise and coordinate overall project planning, management, and Project leading group implementation and ensure covenant and safeguards compliance under the Mayor  Facilitate timely contract award and disbursement through Yanji City Finance Bureau  Facilitate timely project auditing  Supervise the implementing agencies Yanji city government  Submit withdrawal applications to ADB finance bureau  Manage and supervise loan repayment  Oversee and facilitate provision of counterpart funds  Provide financial management support to project management office and project implementation units Yanji City  Responsible for day-to-day project implementation activities for all Development and infrastructure components Reform Commission  Manage project preparation and implementation on behalf of the and project respective implementing agency management office  Coordinate project implementation activities among government agencies  Meet regularly, discuss, and take actions to ensure smooth project implementation  Coordinate participating local government agencies, institutes, and consultants  Coordinate land acquisition and resettlement activities, environmental management plan, and social and gender action plan activities  Implement non-structural and capacity development components  Procure consulting services contract packages and facilitate bid evaluation  Prepare and update procurement plan and other project documents  Provide ADB with (a) quarterly and semiannual consolidated project progress reports; (b) semiannual internal environmental, resettlement, social and gender monitoring reports; (c) annual audit reports; (d) project completion report; and (e) forward semiannual external environment monitoring and evaluation reports to ADB  Prepare withdrawal applications and submit through municipal finance bureaus to the Jilin provincial government  Carryout project performance and compliance monitoring  Disclose project-related information and documents in accordance with ADB guidelines

Project Management Roles and Responsibilities Implementation Organizations Implementing  Provide counterpart funds Agencies:  Design and procure works and goods under all infrastructure components, Yanji city transport and administer and monitor the contractors and suppliers, with the support bureau, Yanji city of design institutes, tendering agent, and supervision companies housing and  Undertake contract management, construction supervision, and quality construction bureau, control, with the support of supervision companies Yanji city traffic police,  Develop project management procedures, implementation plan, and Chaoyangchuan financial management township government,  Review and submit withdrawal applications to Yanji city government and Yanji Water  Maintain separate project accounts for the project Group Company  Prepare and update the environmental management plan and other project Limited documents  Participate in training and capacity development activities and study tours  Organize project acceptance verification ADB  Support project administration including executing and implementing agencies’ compliance of obligations and responsibilities in accordance with ADB policies and procedures  Monitor and review project progress, safeguards compliance, and results achievement  Review and approve procurement, contract awards, and other reports  Approve withdrawal applications and disburse loan proceeds ADB = Asian Development Bank. Sources: ADB and Yanji city government.

B. Key Persons Involved in Implementation

Executing Agency Yanji city government, Name: Mr. Li Hu Development and Reform Position: Director, Yanji City DRC Commission (DRC) Telephone: +86 433 251 5572 Fax: +86 433 251 5675 Email: [email protected]

Name: Mr. Wang Yingming Position: Deputy Director, Yanji City DRC Telephone: +86 433 251 5572 Fax: +86 433 251 5675 Email: [email protected]

Asian Development Bank Urban and Social Sectors Name: Sangay Penjor Division, East Asia Department Position: Director Telephone No.: +63 2 8632 6148 Fax No.: +63 2 8636 2407 Email Address: [email protected]

Mission Leaders Name: Stefan Rau Position: Senior Urban Development Specialist Telephone No.: +63 2 8632 5812 Email Address: [email protected] Staff Name: Lan Wang Position: Senior Project Officer (Urban Development) Telephone No.: +86 10 8573 0909 Email Address: [email protected]

C. Project Organization Structure

Figure 1: Project Organization Structure

Asian Development Bank PRC Government

Jilin provincial government

Yanbian Korean Autonomous Prefecture

Yanji city government Executing Agency PMO under the Yanji City Development and Reform Commission

Yanji city Yanji Water Chaoyang- Yanji city housing and Yanji city Group chuan transport construction traffic police Company township bureau bureau Implementing Limited government Implementing Implementing Agency Implementing Implementing Agency Agency Agency Agency

PIU PIU PIU PIU PIU

O&M Units O&M Units O&M Units O&M Units O&M Units

PIU = project implementation unit, PMO = project management office, PRC = People’s Republic of China, O&M = operation and maintenance. Source: Asian Development Bank and Yanji city government.

IV. COSTS AND FINANCING

19. This section describes the project costs, categories, and outputs to be financed by ADB and the Yanji city government (YCG). Loan proceeds will be disbursed per the Loan Disbursement Handbook (2017, as amended from time to time), and subject to the provisions of the loan and project agreements. Costs are itemized using the following categories, including taxes and duties:

(i) Civil works include contracts for construction and installation of project civil works and may include provision of related equipment, materials, and supplies, financed by the ADB loan and with counterpart funds from YCG.

(ii) Equipment includes procurement contracts for equipment, materials, and supplies to be financed by the ADB loan.

(iii) Vehicles include purchase BRT of clean energy buses to be financed by YCG funds.

(iv) Land acquisition and resettlement includes expenditures for temporary or permanent occupancy of land and associated resettlement activities to be financed by YCG funds.

(v) Project preparation, management, and monitoring includes expenditures for engineering and related services to design, implement, and monitor project components to be financed by YCG funds.

(vi) Capacity development and project management support includes consulting service contracts to provide training and related services required to ensure effective implementation of the loan project, increase the professional capacity of staff involved in implementation and subsequent operation of project components, and monitor the implementation and effectiveness of impact mitigation measures for resettlement and environmental impacts, to be financed by the ADB loan.

(vii) Contingencies (physical) include budgetary provision to cover unexpected costs and cost overruns and contingencies (price) includes budgetary provision to cover inflationary increases in costs, financed by counterpart funds from YCG.

(viii) Financial charges during implementation include commitment charges and interest during the implementation period, not capitalized by the loan and financed by YCG funds.

A. Cost Estimates Preparation and Revisions

20. Capital costs and project operation and maintenance (O&M) costs were provided in the feasibility study report (FSR) prepared on behalf of the project management office (PMO) by project design institute, in consultation with the implementing agencies and project preparatory technical assistance consultants. Costing was completed using government costing standards, and information from site investigations, design institute project files, and queries with suppliers. Cost revisions during implementation will be prepared by the implementing agencies and their contractors.

B. Key Assumptions

21. Key assumptions of the analysis include: (i) physical contingencies are estimated at 5% of civil works and services costs, (ii) price contingencies account based on expected cumulative cost inflation over the construction period, (iii) domestic and international cost escalation shown in Table 5, (iv) initial exchange rates of CNY7.7897= €1.00 and CNY7.0393=$1 (as of 16 August 2019), and (v) the loan will have a 25.5-year term, including a grace period of 6 years. Interest during implementation is computed using 6-year Euro fixed swap rate of 0.000% (-0.485%) plus an effective contractual spread of 0.5% and maturity premium of 0.1%. The commitment fee is levied at 0.15% against the undisbursed amount of the loan each year.

Table 5: Domestic and International Cost Escalation Factors (%) Item 2020 2021 2022 2023 2024+ 2025 2026 2027 International cost escalation factorsa 1.5 1.6 1.6 1.6 1.6 1.6 1.6 1.6 Domestic cost escalation factorsb 1.8 2.0 2.0 2.0 2.0 2.0 2.0 2.0 a 2.2% World Bank Manufacturer’s Unit Value (MUV) Index, July 2014. b Asian Development Bank. 2016. Asian Development Outlook 2016 Update: Meeting the Low-Carbon Growth Challenge. Manila. Source: Asian Development Bank.

C. Investment and Financing Plans

22. The project is estimated to cost €234.77 million equivalent (Table 6). Detailed cost estimates by expenditure category and by financier are in Tables 8 and 11. The major expenditure items are civil works, equipment and its installation, and consulting services.

Table 6: Project Investment Plan Amounta Share of Item CNY million € million Total (%) A. Base Costb 1. Low-carbon bus rapid transit line integrated with 1,305.72 167.62 71.40 nonmotorized transport infrastructure constructed 2. Climate-resilient flood risk management and sponge city 266.77 34.25 14.59 green infrastructure constructed 3. Water supply system improved 38.90 4.99 2.13 4. Capacity in low-carbon, climate-resilient, healthy city 32.38 4.16 1.77 planning, and infrastructure management developed Subtotal (A) 1,643.77 211.02 89.88 B. Contingencyc - 1. Physical 82.19 10.55 4.49 2. Price 80.44 10.33 4.40 Subtotal (B) 162.63 20.88 8.89 C. Financial Charges during Implementationd - 1. Interest During Construction 18.17 2.33 0.99 2. Commitment Charges 4.23 0.54 0.23 Subtotal (C) 22.40 2.87 1.22 Total Cost (A+B+C) 1,828.80 234.77 100.00 a Includes taxes and duties of €11.82 million, of which €5.52 million will be financed by the government through cash contribution and €6.30 million will be paid from the Asian Development Bank loan. Such amount does not represent an excessive share of the project cost. b In 2019 prices as of 21 March 2019. c Physical contingencies computed at 5% for civil works, and 5% for field research and development, training, surveys, and studies. Price contingencies computed at average of 1.59% on foreign exchange costs and 1.98% on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. d Includes interest and commitment charges. Interest during construction for the ordinary capital resources loan has been computed at the 6-year Euro fixed swap rate plus an effective contractual spread of 0.5% and maturity premium of 0.1%. Commitment charges for the ordinary capital resources loan are 0.15% per year to be charged on the undisbursed loan amount. Sources: Asian Development Bank estimates.

23. The government has requested a regular loan of €117.48 million ($130 million equivalent) from ADB’s ordinary capital resources to help finance the project. The loan will have a 25.5-year term, including a grace period of 6 years; 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 and such other terms and conditions set forth in the draft loan and project agreements. Based on the straight-line method, the average maturity is 16 years; and the maturity premium payable to ADB is 0.10% per year.

Table 7: Summary Financing Plan Amount Share of Total Source (€ million) (%) Asian Development Bank Ordinary capital resources (regular loan) 117.48 50.04 Government 117.29 49.96 Total 234.77 100.00 Source: Asian Development Bank estimates.

D. Detailed Cost Estimates by Expenditure Category

Table 8: Detailed Cost Estimates by Expenditure Category CNY million € million % of Total Foreign Local Foreign Local Item Total Cost Total Costa Base Cost Exchange Currency Exchange Currency A. Investment Costs 1. Civil Works and Installation 190.18 760.72 950.90 24.41 97.66 122.07 57.85 a. Yanji BRT Corridor and NMT Engineering 144.17 576.67 720.84 18.51 74.03 92.54 43.85 b. Drainage, Sponge City Green Infrastructure, and 42.81 171.23 214.04 5.50 21.98 27.48 13.02 River Rehabilitation Construction c. Water Supply System Construction 3.20 12.81 16.02 0.41 1.65 2.06 0.97 2. Goods, Equipment, and Installation 135.36 90.24 225.59 17.38 11.58 28.96 13.72 a. Yanji BRT Corridor and NMT Engineering 125.43 83.62 209.04 16.10 10.73 26.84 12.72 b. Water Supply System Construction 9.93 6.62 16.55 1.27 0.85 2.12 1.01 3. BRT Purchase (Vehicle) 117.00 78.00 195.00 15.02 10.01 25.03 11.86 4. Land Acquisition and Resettlement 0.00 11.10 11.10 0.00 1.43 1.43 0.68 5. Project Preparation and Management 22.88 205.91 228.79 2.94 26.43 29.37 13.92 6. Services: Capacity Development and Project 16.19 16.19 32.38 2.08 2.08 4.16 1.97 Management Support Subtotal (A) 481.61 1,162.16 1,643.77 61.83 149.19 211.02 100.00 B. Contingencies 1. Physical 24.08 58.11 82.19 3.09 7.46 10.55 5.00 2. Price 23.57 56.87 80.44 3.03 7.30 10.33 4.89 Subtotal (B) 47.65 114.98 162.63 6.12 14.76 20.88 9.89 C. Financial Charges During Implementation 1. Interest During Construction 0.00 18.17 18.17 0.00 2.33 2.33 1.11 2. Commitment Charges 0.00 4.23 4.23 0.00 0.54 0.54 0.26 Subtotal (C) 0.00 22.40 22.40 0.00 2.87 2.87 1.36 Total Project Cost (A+B+C) 529.25 1,299.55 1,828.80 67.94 166.83 234.77 111.26 BRT = bus rapid transit, NMT = nonmotorized transport. Note: Numbers may not sum precisely because of rounding. a Includes taxes and duties of €11.82 million, of which €5.52 million of which will be financed by the government through cash contribution and €6.30 million will be paid from the Asian Development Bank loan. Source: Asian Development Bank estimates.

E. Allocation and Withdrawal of Loan Proceeds

Table 9: Allocation and Withdrawal of Loan Proceeds Number Item Total Amount Allocated for ADB Basis for Withdrawal from the Loan Financing Account (€) 1 Works, Goods, Services 117,480,000 Up to 100.00% of total expenditures claimed Source: Asian Development Bank estimates.

Table 10: Detailed Allocation and Withdrawal of Loan Proceeds Number Item Total Amount Allocated for Basis for Withdrawal from the Loan ADB Financing Account (€) Category Subcategory 1 Works 84,362,520 1A Yanji BRT Corridor and NMT Engineering 54,828,956 64.83% of total expenditures claimed Drainage, Sponge City Green 1B Infrastructure, and River Rehabilitation 27,477,233 100.00% of total expenditures claimed Construction 1C Water Supply System Construction 2,056,331 100.00% of total expenditures claimed 2 Goods 28,960,609 100.00%of total expenditures claimed 3 Services 4,156,871 100.00%of total expenditures claimed Total 117,480,000 BRT = bus rapid transit, NMT = nonmotorized transport. Source: Asian Development Bank estimates.

F. Detailed Cost Estimates by Financier

Table 11: Detailed Cost Estimates by Financier (€ million) Item ADB Yanji city government Taxes and Amount Total % Amount Total % Total Costa Duties

A. Investment Costs 1. Civil Works and Installation 81.59 84.36 69.11 36.47 37.71 30.89 122.07 4.01 a1. Yanji BRT Corridor and NMT Engineering 52.45 54.83 64.83 28.46 29.75 35.17 84.58 3.67 a2. Yanji BRT Corridor and NMT Engineering b 0.00 0.00 0.00 7.61 7.96 100.00 7.96 0.35 b. Drainage, Sponge City Green Infrastructure, 26.57 27.48 100.00 0.00 0.00 0.00 27.48 0.90 and Rehabilitation Construction c. Water Supply System Construction 1.99 2.06 100.00 0.00 0.00 0.00 2.06 0.07 2. Goods, Equipment, and Installation 25.63 28.96 100.00 0.00 0.00 0.00 28.96 3.33 a. Yanji BRT Corridor and NMT Engineering 23.75 26.84 100.00 0.00 0.00 0.00 26.84 3.09 b. Water Supply System Construction 1.88 2.12 100.00 0.00 0.00 0.00 2.12 0.24 3. BRT Purchase (Vehicle) 0.00 0.00 0.00 22.15 25.03 100.00 25.03 2.88 4. Land Acquisition and Resettlement 0.00 0.00 0.00 1.43 1.43 100.00 1.43 0.00 5. Project Preparation and Management 0.00 0.00 0.00 27.97 29.37 100.00 29.37 1.40 6. Services: Capacity Development and Project 3.96 4.16 100.00 0.00 0.00 0.00 4.16 0.20 Management Support Subtotal (A) 111.17 117.48 55.67 88.02 93.54 44.33 211.02 11.82 B. Contingencies 1. Physical 0.00 0.00 0.00 10.55 10.55 100.00 10.55 0.00 2. Price 0.00 0.00 0.00 10.33 10.33 100.00 10.33 0.00 Subtotal (B) 0.00 0.00 0.00 20.88 20.88 100.00 20.88 0.00 C. Financial Charges During Implementation 1. Interest During Construction 0.00 0.00 0.00 2.33 2.33 100.00 2.33 0.00 2. Commitment Charges 0.00 0.00 0.00 0.54 0.54 100.00 0.54 0.00 Subtotal (C) 0.00 0.00 0.00 2.88 2.88 100.00 2.87 0.00 Total Project Cost (A+B+C) 111.17 117.48 50.04 111.78 117.29 49.96 234.77 11.82 BRT = bus rapid transit, NMT = nonmotorized transport. Note: Numbers may not sum precisely because of rounding. a Includes taxes and duties of €11.82 million, of which €5.52 million of which will be financed by the government through cash contribution and €6.30 million will be paid from the Asian Development Bank loan. b Government-financed BRT bus depot and maintenance center and mechanical parking structures Source: Asian Development Bank estimates.

G. Detailed Cost Estimates by Outputs

Table 12: Detailed Cost Estimates by Outputs (€ million) Capacity in low- Climate-resilient carbon, climate- Low-carbon bus rapid flood risk resilient, healthy transit line integrated management and city planning, with nonmotorized sponge city Water and transport green supply infrastructure infrastructure infrastructure system management Item Totala constructed constructed improved developed A. Investment Costs 1. Civil Works and Installation 122.07 92.54 27.48 2.06 0.00 2. Goods, Equipment, and Installation 28.96 26.84 0.00 2.12 0.00 3. BRT Purchase (Vehicle) 25.03 25.03 0.00 0.00 0.00 4. Land Acquisition and Resettlement 1.43 0.00 1.43 0.00 0.00 5. Project Preparation and management 29.37 23.21 5.34 0.81 0.00 6. Services: Capacity Development and Project 4.16 0.00 0.00 0.00 4.16 Management Support Subtotal (A) 211.02 167.62 34.25 4.99 4.16 B. Contingencies 1. Physical 10.55 8.38 1.71 0.25 0.21 2. Price 10.33 8.41 1.67 0.14 0.11 Subtotal (B) 20.88 16.79 3.38 0.39 0.31 C. Financial Charges During Implementation 1. Interest During Construction 2.33 1.18 0.85 0.16 0.15 2. Commitment Charges 0.54 0.44 0.09 0.01 0.01 Subtotal (C) 2.87 1.62 0.93 0.16 0.16 Total Project Cost (A+B+C) 234.77 186.04 38.56 5.55 4.63 % 100.00 79.24 16.42 2.36 1.97 BRT = bus rapid transit. Note: Numbers may not sum precisely because of rounding. a Includes taxes and duties of €11.82 million, of which €5.52 million of which will be financed by the government through cash contribution and €6.30 million will be paid from the Asian Development Bank loan. Source: Asian Development Bank estimates.

H. Detailed Cost Estimates by Year

Table 13: Detailed Cost Estimates by Year (€ million) Item 2020 2021 2022 2023 2024 2025 2026 2027 Totala A. Investment Cost 1. Civil Works and Installation 0.00 13.42 16.11 30.14 49.18 13.22 0.00 0.00 122.07 a. Yanji BRT Corridor and NMT Engineering 0.00 0.00 0.00 30.14 49.18 13.22 0.00 0.00 92.54 b. Drainage, Sponge City Green Infrastructure, 0.00 0.00 11.37 16.11 0.00 0.00 0.00 0.00 27.48 and River Rehabilitation Construction 0.00 c. Water Supply System Construction 0.00 2.06 0.00 0.00 0.00 0.00 0.00 0.00 2.06 2. Goods, Equipment, and Installation 2.12 0.00 0.00 0.00 6.78 6.20 10.39 3.46 28.96 a. Yanji BRT Corridor and NMT Engineering 0.00 0.00 0.00 0.00 6.78 6.20 10.39 3.46 26.84 b. Water Supply System Construction 2.12 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.12 3. BRT Purchase (Vehicle) 0.00 0.00 0.00 0.00 0.00 12.52 12.52 0.00 25.03 4. Land Acquisition and Resettlement 0.00 0.14 0.29 0.29 0.43 0.14 0.14 0.00 1.43 5. Project Preparation and Management 0.00 2.94 5.87 5.87 8.81 2.94 2.94 0.00 29.37 6. Services: Capacity Development and Project 2.53 0.00 1.63 0.00 0.00 0.00 0.00 0.00 4.16 Management Support Subtotal (A) 4.65 16.50 23.90 36.30 65.20 35.02 25.99 3.46 211.02 B. Contingencies 1. Physical 0.23 0.83 1.19 1.81 3.26 1.75 1.30 0.17 10.55 2. Price 0.04 0.47 1.18 1.30 3.47 1.90 1.67 0.29 10.33 Subtotal (B) 0.27 1.30 2.38 3.12 6.73 3.65 2.97 0.47 20.88 C. Financial Charges During Implementation 1. Interest During Construction 0.01 0.07 0.16 0.27 0.45 0.59 0.61 0.16 2.33 2. Commitment Charges 0.15 0.14 0.12 0.09 0.04 0.01 0.00 0.00 0.54 Subtotal (C) 0.17 0.21 0.28 0.36 0.49 0.60 0.61 0.16 2.87 Total Cost (A+B+C) 5.10 18.00 26.55 39.77 72.41 39.27 29.57 4.09 234.77 % 2.17 7.67 11.31 16.94 30.84 16.73 12.60 1.74 100.00 BRT = bus rapid transit, NMT = nonmotorized transport. Note: Numbers may not sum precisely because of rounding. a Includes taxes and duties of €11.82 million, of which €5.52 million of which will be financed by the government through cash contribution and €6.30 million will be paid from the Asian Development Bank loan. Source: Asian Development Bank estimates.

I. Contract and Disbursement S-Curve

Table 14: Contract Awards and Disbursement (€ million) Contract Award Disbursement Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total 2020 0.00 0.00 0.00 18.07 18.07 0.00 0.00 2.33 2.33 4.66 2021 0.00 0.00 0.00 17.74 17.74 0.00 0.00 6.71 6.72 13.43 2022 0.00 0.00 0.00 21.53 21.53 0.00 0.00 8.87 8.87 17.74 2023 0.00 0.00 0.00 28.78 28.78 0.00 0.00 7.81 11.72 19.53 2024 0.00 0.00 0.00 17.50 17.50 0.00 0.00 17.22 21.44 38.66 2025 0.00 0.00 0.00 13.86 13.86 0.00 0.00 7.64 1.97 9.61 2026 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4.62 5.77 10.39 2027 0.00 0.00 0.00 0.00 0.00 3.46 0.00 0.00 0.00 3.46 Total 117.48 117.48

($ million equivalent) Contract Award Disbursement Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total 2020 0.00 0.00 0.00 20.00 20.00 0.00 0.00 2.58 2.58 5.16 2021 0.00 0.00 0.00 19.63 19.63 0.00 0.00 7.42 7.44 14.86 2022 0.00 0.00 0.00 23.82 23.82 0.00 0.00 9.81 9.82 19.63 2023 0.00 0.00 0.00 31.85 31.85 0.00 0.00 8.64 12.97 21.61 2024 0.00 0.00 0.00 19.36 19.36 0.00 0.00 19.05 23.73 42.78 2025 0.00 0.00 0.00 15.34 15.34 0.00 0.00 8.45 2.18 10.63 2026 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.11 6.39 11.50 2027 0.00 0.00 0.00 0.00 0.00 3.83 0.00 0.00 0.00 3.83 Total 130.00 130.00

Figure 2: Contract Award and Disbursement S-Curve ($ million equivalent)

140.00

120.00

100.00

Contract Awards 80.00 Disbursement

60.00

40.00

20.00

0.00

J. Fund Flow Diagram

Figure 3: Fund Flow Diagram （Direct Payment) Asian Development Bank

Loan

Ministry of Finance A. Relending

Jilin provincial government Provincial finance department ADB loan advance account Reimbursement/ Advance account process

Yanbian Korean Autonomous Prefecture

Repayment Onlending

Yanji city government Yanji city finance bureau

Five Implementing Agencies: YCG transport bureau, Yanji housing and construction bureau, Yanji traffic police department, Yanji Water Group Company Limited, Chaoyangchuan township government, and their project implementation units

Contractors, Suppliers, and Consultants

Loan, Relending, Onlending Claim for Payment/withdrawal application

Repayment Payment

V. FINANCIAL MANAGEMENT

A. Financial Management Assessment

24. The financial management assessment (FMA) was conducted in accordance with ADB’s Guidelines for the Financial Management and Analysis of Projects and the Financial Due 18 Diligence: A Methodology Note.16F The assessment covered funds flow arrangements, staffing, accounting and financial reporting systems, internal and external auditing arrangements, and financial information systems for Yanji city government (YCG), the executing agency; and for Yanji Water Group Company Limited, Yanji city transport bureau, Yanji city housing and construction bureau, the Yanji city traffic police, and the Chaoyangchuan township government, the implementing agencies.

25. Based on the assessment, the key financial management risks identified are (i) implementation risk: lack of familiarity with ADB disbursement procedures and requirements, which could delay project implementation; (ii) compliance risk: lack of familiarity with ADB financial management requirements, particularly on accounting, reporting and auditing, which may delay project reporting and identification of issues on the use of loan proceeds; and (iii) operational risk: inadequate experience in building some project component, that could impact project progress and quality of the services to be provided after project completion.

26. It is concluded that the overall premitigation financial management risk of the executing and implementing agencies is moderate based on the assessed internal control environment, experience of implementing development projects, supervisory procedures, and technical and financial capability. The borrower and executing and implementing agencies have agreed to implement the action plan provided in Table 15to address the deficiencies.

Table 15: Proposed Financial Management Action Plan Action Responsibility Timing 1. Training on ADB disbursement procedures and requirements JFD/YCG/IAs/ 1–2 months prior to the ADB start of disbursements 2. Training on ADB financial management requirements, YCG/IAs/ 3 months before loan including accounting and auditing, and foreign exchange and ADB effectiveness interest rate risk management 3. Recruitment of experienced consultants and skilled YCG/IAs/ADB 3 months after loan accountants to enhance the operational capacities effectiveness 4. Development of financial management manual YCG/IAs/ADB Before loan effectiveness 5. Close monitoring to timely identify potential issues in YCG/IAs/ADB At least once per year counterpart funding during project implementation ADB = Asian Development Bank, IA = implementing agency, JFD = Jilin Finance Department, YCG = Yanji city government. Sources: ADB and YCG.

27. It was agreed that the executing and implementing agencies will further enhance their capabilities by (i) setting up clear institutional arrangements and a coordination mechanism; (ii) adhering to the Loan Disbursement Handbook and Financial Management Manual, to adopt ADB practices and procedures including a comprehensive set of preventive, detective, and

18 ADB. 2005. Financial Management and Analysis of Projects. Manila; ADB. 2009. Financial Due Diligence: A Methodology Note. Manila.

corrective controls for different processes and transactions; and (iii) undertaking more training, particularly on ADB policy and procedures. The local and city government officials committed that 50% of the project's counterpart funding will be secured from its annual budget resources, as the project components are priority for the provincial government. The Jilin Finance Department (JFD) will administer the advance account and has the capacity from ongoing ADB projects. The Yanji city finance bureau will administer the statement of expenditures (SOE) procedures, and will be provided training to ensure the capacity to carry out the relevant tasks in accordance with the relevant procedures and guidelines.

B. Disbursement

1. Disbursement Arrangements for ADB Funds

28. The loan proceeds will be disbursed in accordance with ADB’s Loan Disbursement 19 Handbook (2017, as amended from time to time),17F and detailed arrangements agreed upon between the government and ADB. Online training for project staff on disbursement policies and 20 procedures is available.18F Project staff are encouraged to avail of this training to help ensure efficient disbursement and fiduciary control.

29. The following disbursement arrangements will be used: (i) direct payment procedures, (ii) reimbursement procedures for eligible expenditures incurred and paid for by the government from its budget allocation or own resources, and (iii) advance account procedure.

30. The implementing agencies will be responsible for all disbursement arrangements for expenditures related to the implementation of components, including (i) preparing disbursement projections, (ii) requesting budgetary allocations for counterpart funds, (iii) collecting supporting documents, and (iv) preparing withdrawal applications to be submitted to ADB by YCG through Yanbian Korean Autonomous Prefecture and Jilin provincial government.

31. Each year, the required amount of counterpart funding is allocated by YCG and disbursed upon request from the implementing agencies. For ADB’s loan proceeds, withdrawal applications to ADB will be prepared by the project management office (PMO) of YCG. At the end of each year, realistic projections of contract awards and commitments and disbursement for the following calendar year will be made for an assessment and projection of ADB funds required to cover contract awards and commitments and disbursements for the ongoing loan. The PMO will be responsible for preparing contract awards and disbursement projections each year.

32. Reimbursement procedure. The reimbursement procedure is a disbursement procedure where ADB pays from the loan account to the borrower’s account for the eligible expenditure which have been incurred and paid for by the borrower out of its budget allocation or its own resources. Use of the procedure is encouraged for all eligible expenditures when the borrower has sufficient resources. Under this procedure, ADB’s payment are made only to the borrower.

33. Advance fund procedure. An advance account should be established and maintained by JFD. The currency of the advance account is the Euro. The advance account is to be used exclusively for ADB’s share of eligible expenditures. JFD, who administers the advance account, is accountable and responsible for proper use, management, replenishment, and liquidation of

19 The handbook is available electronically from the ADB website (http://www.adb.org/documents/ loan-disbursement- handbook). 20 Disbursement eLearning. http://wpqr4.adb.org/disbursement_elearning.

the advance account. Based on the FMA, JFD has the capacity to manage and administer the advance account as well as the statement of expenditure procedures.

34. The total outstanding advance to the advance account should not exceed the estimate of ADB’s share of expenditures to be paid through the advance account for the forthcoming 6 months. The JFD may request for initial and additional advances to the advance account based on an Estimate of Expenditure Sheet setting out the estimated expenditures to be financed 21 through the account for the forthcoming 6 months.19F Supporting documents should be submitted to ADB or retained by the borrower (Jilin provincial government and Yanji city government) in accordance with ADB’s Loan Disbursement Handbook (2017, as amended from time to time) when liquidating or replenishing the advance account.

22 35. Statement of expenditure procedure.20F The SOE procedure may be used for reimbursement of eligible expenditures or liquidation of advances to the advance account. The ceiling of the SOE procedure is $200,000 equivalent per individual payment. Supporting documents and records for the expenditures claimed under the SOE should be maintained and made readily available for review by ADB's disbursement and review missions, upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit. Reimbursement and liquidation of individual payments in excess of the SOE ceiling should be supported by full documentation when submitting the withdrawal application to ADB.

36. Before the submission of the first withdrawal application (WA), 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 government, together with the authenticated specimen signatures of each authorized person. The minimum value per WA is stipulated in the Loan Disbursement Handbook (2017, as amended from time to time). Individual payments below such amount should be paid (i) by the implementing agencies and subsequently claimed to ADB through reimbursement, or (ii) through the advance fund procedure, unless otherwise accepted by ADB. The borrower should ensure sufficient category and contract balances before requesting disbursements. Use of ADB’s Client Portal for Disbursements (CPD) system is encouraged for 23 submission of withdrawal applications to ADB.21F

2. Disbursement Arrangements for Counterpart Fund

37. For the counterpart funds, the YCG, as executing agency, and the implementing agencies will allocate the designated funding for the project as specified in the loan and project agreements. Counterpart funds from the government will be disbursed and liquidated by the implementing agencies to contractors and service providers. The disbursement process will follow the local and national process: (i) according to the progress of the contract, the project implementing units will submit disbursement requests to the respective project management office; and (ii) once approved, counterpart funds will be disbursed from the municipal finance bureau.

21 The Estimate of Expenditure sheet is available in Appendix 8A of ADB's Loan Disbursement Handbook (2017, as amended from time to time). 22 SOE forms are available in Appendix 7B of ADB’s Loan Disbursement Handbook (2017, as amended from time to time). 23 The Client Portal for Disbursements system facilitates online submission of withdrawal applications to ADB, resulting in faster disbursement. The forms to be completed by the borrower are available online at https://www.adb.org/ documents/client-portal-disbursements-guide.

C. Accounting

38. The YCG and each implementing agency will maintain, or cause to be maintained, separate books and records by funding source for all expenditures incurred on the project in accordance with the accrual-based accounting following the Accounting Methods for Projects Financed by World Bank, issued by the Ministry of Finance for all foreign aid-funded projects. The YCG and implementing agencies will prepare compiled project financial statements in accordance with the government's accounting laws and regulations which are consistent with international accounting principles and practices.

D. Auditing and Public Disclosure

39. The YCG will cause the preparation of a detailed compiled project financial statements to be audited in accordance with the equivalent national standards adopted by the PRC, by an independent auditor acceptable to ADB. The audited project financial statements together with the auditor’s opinion will be presented in the English language to ADB within 6 months from the end of the fiscal year by the YCG.

40. The audit report for the project financial statements will include a management letter and auditor’s opinions, which cover (i) whether the project financial statements present an accurate and fair view or are presented fairly, in all material respects, in accordance with the applicable financial reporting standards; (ii) whether the proceeds of the loan were used only for the purpose(s) of the project; and (iii) whether the borrower or executing agency was in compliance with the financial covenants contained in the legal agreements (where applicable).

41. 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.

42. The government, YCG, and implementing agencies have been made aware of ADB’s approach to delayed submission, and the requirements for satisfactory and acceptable quality of 24 the audited project financial statements.22F ADB reserves the right to require a change in the auditor (in a manner consistent with the constitution of the borrower), or for additional support to be provided to the auditor, if the audits required are not conducted in a manner satisfactory to ADB, or if the audits are substantially delayed. 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.

24 ADB’s approach and procedures regarding 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 (a) the audit documents are overdue; and (b) if they are not received within the next 6 months, requests for new contract awards and disbursement such as new replenishment of advance accounts, processing of new reimbursement, and issuance of new commitment letters will not be processed. (ii) When audited project financial statements are not 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 advance accounts, processing of new reimbursement, and issuance of new commitment letters. ADB will (a) inform the executing agency of ADB’s actions; and (b) advise that the loan may be suspended if the audit documents are not received within the next 6 months. (iii) When audited project financial statements are not received within 12 months after the due date, ADB may suspend the loan.

43. Public disclosure of the audited project financial statements, including the auditor’s opinion 25 on the project financial statements, will be guided by ADB’s Access to Information.23F After the review, ADB will disclose the audited project financial statements and the opinion of the auditors on the project financial statements no later than 14 days of ADB’s confirmation of their acceptability by posting them on ADB’s website. The management letter and additional auditor’s 26 opinion will not be disclosed.24F

VI. PROCUREMENT AND CONSULTING SERVICES

44. A project procurement risk assessment was conducted for the project, in accordance with the Guide on Assessing Procurement Risks and Determining Project Procurement Classification (2014). Overall project procurement risk is moderate.

45. The main weaknesses identified include (i) lack of experience of the implementing agencies in internationally-financed projects; and (ii) some discrepancies between domestic and ADB practices.

46. Proposed mitigation measures include training to be provided to relevant staff of the implementing agencies and project implementing units (PIUs), and other stakeholder agencies. The procurement training was delivered by ADB during the project preparation to the implementing agencies and PIUs on topics in ADB procedures for procurement of goods, works, and consulting services to ensure that the non-familiarity with ADB procurement framework has been addressed. The procurement training will be delivered on a well-defined interval by the loan implementation consultants during the project implementation to ensure that procurement activities are undertaken in full conformity with ADB’s Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).

47. A procurement market assessment was undertaken to understand and assess the availability of potential qualified bidders to supply works, goods, and services for each sector. It was concluded that only two goods contracts may require international advertising to attract enough qualified bidders due to the following reasons: (i) the project components are all regular infrastructures requiring only advanced technology which are widely available nationally; (ii) there are a good number of national bidders who have adequate capacities and resources to meet the requirements; and (iii) current and past experience from similar domestic procurement and from similar ADB projects in the subregion shows that all bidders for similar packages were national even though some contracts were advertised internationally.

48. All works and goods contracts can therefore be advertised nationally following open competitive bidding (OCB) procedures, except two goods contracts that can be advertised internationally.

49. Consulting services include project management and institutional support, external monitoring, and various capacity building packages. The market for consulting services has been growing very fast in the past decade. There are now many suppliers in the market to provide services, especially in design, construction management, and monitoring. However, not many of them have highly specialized expertise or international experiences required in the consulting

25 Access to Information Policy. https://www.adb.org/documents/access-information-policy. 26 This type of information would generally fall under public communications policy exceptions to disclosure. ADB. 2018. Access to Information Policy. Paragraph 17(iv)–(vi).

service packages funded by the loan in this project. Therefore, it is suggested to advertise internationally for most of the consulting service packages.

A. Advance Contracting and Retroactive Financing

50. All advance contracting and retroactive financing will follow ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, 27 as amended from time to time).25F The issuance of invitations for bids under advance contracting and retroactive financing will be subject to ADB prior approval. The borrower, YCG, and implementing agencies have been advised that approval of advance contracting and retroactive financing does not commit ADB to finance the project.

51. Advance contracting. Advance contracts may include goods, works, and consulting services contract packages. The steps to be concluded in advance may include (i) prequalification of contractors, tendering and bid evaluation for civil works packages; (ii) preparation of tender documents to procure materials and equipment; (iii) evaluation of bids; and (iv) recruitment of consultants. All other ADB policy requirements apply, i.e., safeguards compliance and others that are included in the loan and project agreements.

52. Retroactive financing. Under retroactive financing, YCG and the five PIUs would implement project activities using their own funds. The government was informed that as a general rule, retroactive financing is permitted only if (i) it is specifically agreed by ADB and the borrower; (ii) the goods, works, and consulting services for which it is requested are procured in accordance with ADB’s Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time); (iii) the amount to be retroactively financed does not exceed 20% of the total ADB loan amount incurred before effectiveness; (iv) the expenditures incurred before effectiveness of the relevant loan but, generally, but not more than 12 months before the signing of the loan agreement; and (v) due diligence on the proposed contracts for advance contracting and retroactive financing on engineering, environmental, financial, social, and other safeguard requirements has been completed to satisfy project preparation requirements. In either instance, detailed assessments (due diligence) on each retroactive financing proposal must demonstrate that (i) the expenditures incurred are genuine, reasonable, and material to getting the project off the ground; and (ii) they were incurred for proper reasons, in a transparent manner over a reasonable period of time.

B. Procurement of Goods, Works, and Consulting Services

53. All procurement of goods, and works, and consulting services will follow ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers 28 (2017, as amended from time to time).26F

54. Open competitive bidding (OCB) using national advertising will be used for all civil works and goods contracts, except for two goods contracts that may be advertised internationally. For the first civil works package and the first goods package, regardless of the estimated contract amount, and for all subsequent civil works packages above $10 million equivalent, the invitations for bids, bidding documents, bid evaluation reports, and draft negotiated contracts need ADB’s prior review and approval. For the subsequent nationally advertised OCB packages valued below

27 Available at https://www.adb.org/documents/adb-procurement-policy. 28 Checklists for actions required to engage consultants by method available in e-Handbook on Project Implementation at http://www.adb.org/documents/handbooks/project-implementation.

$10 million equivalent, invitations for bids, bidding documents, bid evaluation reports, and signed contracts provided they are consistent with previously approved documents, will not require ADB’s prior review. However, such documents will be subject to post review and must be submitted to ADB as soon as they are completed and issued, but no later than 1 month after their issuance. The relevant sections of ADB’s Anticorruption Policy (1998, as amended from time to time) will be included in all procurement documents and contracts. For civil works contracts, OCB AN (advertised nationally) method will be used unless the contract value is $40 million equivalent and above, in which case OCB AI (advertised internationally) method will be used. For goods contracts, OCB AI method will be used for contracts with $5 million equivalent and above, contracts with highly specialized equipment involved, or contracts identified with limited competition. Otherwise, OCB AN method will be used. For consulting service contracts, OCB AI method will be used for all contracts funded by ADB loan, with different selection methods based on the contract values. For low value works and goods contracts (smaller than $100,000 equivalent), request for quotations procedure will be used.

55. An 18-month procurement plan indicating goods, works, and consulting service contract packages and expected contract preparation and implementation timeline is in section C below.

56. Consulting firms will be engaged using the (i) quality- and cost-based selection (QCBS) method with a quality–cost ratio of 90:10, and (ii) consultants’ qualifications selection (CQS) method. Individual consultants will also be engaged through individual consultant selection (ICS) method. The summary of consulting services contracts is in Table 16. The terms of reference for all consulting services are detailed in Section D.

57. All consultants financed by ADB will be recruited according to ADB Procurement Policy (2017, as amended from time to time). An estimated total of 524 person-months (50 international, 474 national) of consulting services are required to (i) support project management, monitoring, progress reporting, institutional strengthening; (ii) capacity development for integrated low- carbon, climate-resilient, healthy city, and infrastructure planning based on transit-oriented development principles, universal design, and including smart city information and communication technology applications, its implementation and operation; (iii) conduct external environment, resettlement, and social safeguard monitoring and reporting; (iv) provide project implementation start-up support including project management, procurement, and safeguards compliance; and (v) conduct nonrevenue water reduction pilot capacity building to complement the water supply component.

58. Implementing agencies will engage qualified national consultants and design institutes by self-funding for preliminary and detailed design, construction supervision, and quality inspection. The YCG, on behalf of the implementing agencies, will engage a tendering agency, with previous experience from ADB and/or World Bank project procurement to support all project-related procurement activities.

59. For all civil works contracts and goods/installation contracts, separate service contracts for quality control and site supervision will be procured by the local governments independent of the civil works or goods/installation contracts using country procurement system requirements.

C. Procurement Plan

Table 16: Basic Data Project Name: Jilin Yanji Low-Carbon Climate-Resilient Healthy City Project Project Number: 50322-002 Approval Number: XX Country: People’s Republic of China Executing Agency: Yanji city government Project Procurement Classification: B Implementing Agencies: Yanji city transport bureau, Yanji city housing and construction bureau, Procurement Risk: Moderate Yanji city traffic police, Chaoyangchuan township government, and Yanji Water Group Company Limited Project Financing Amount: €234,770,000 ADB Financing: €117,480,000 Project Closing Date: 31 March 2027 Cofinancing (ADB Administered): None Non-ADB Financing: €117,290,000 Date of First Procurement Plan: 22 March 2019 Date of this Procurement Plan: 22 March 2019 Procurement Plan Duration: 18 months Advance contracting: eGP: No yes

1. Methods, Review and Procurement Plan

60. Except as the ADB may otherwise agree, the following methods shall apply to procurement of goods, works, and consulting services.

Table 17: Procurement of Goods and Worksa Procurement of Goods and Works Method Applicability Comments Open Competitive Bidding As per PPRA All civil works contracts can be (and packages above (international $40 million equivalent should be) advertised internationally advertisement) for civil following the open competitive bidding procedures. works ADB’s prior review applies to all OCB advertised internationally. Open Competitive Bidding As per PPRA All goods contracts can be (and packages above $5 million (international equivalent should be) advertised internationally following advertisement) for goods the open competitive bidding procedures. The ADB’s prior review applies to all OCB advertised internationally. Open Competitive Bidding As per PPRA OCB advertised nationally procurement documents will be (national advertisement) subject to post review (sampling) except for the first for civil works bidding package and for packages valued $10 million equivalent or above for which the ADB’s prior review applies. Open Competitive Bidding As per PPRA OCB advertised nationally procurement documents will be (national advertisement) subject to post review (sampling) except for the first for goods bidding package and for packages valued $5 million equivalent or above for which the ADB’s prior review applies. ADB = Asian Development Bank, OCB = open competitive bidding, PPRA = project procurement risk assessment. a Details on prior review and post review (sampling) are available on ADB’s Procurement Review Guidance Note on Procurement.

Table 18: Consulting Services Consulting Services Method Comments Quality- and cost- Five submissions: (i) shortlist, (ii) technical evaluation, (iii) financial evaluation and based selection overall ranking of proposals, (iv) draft negotiated contract, and (v) signed contract. Use of this method is subject to ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time), and paragraph 47 of ADB’s Project Administration Instructions 2.03. Quality–cost ratio 90:10; may use full technical proposal and simplified technical proposal; prior review Consultants’ Four submissions: (i) evaluation of expressions of interest and request for proposals, qualifications (ii) technical and financial evaluation, (iii) draft negotiated contract, and (iv) signed selection contract. Use of this method is subject to ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time), and paragraph 51–52 of ADB’s Project Administration Instructions 2.03. Biodata technical proposal; prior review. Individual Two submissions: (i) proposal for engagement of consultant, including shortlist; and consultant (ii) signed contract. Use of this method is subject to ADB Procurement Policy (2017, selection as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time), and paragraph 9 of ADB’s Project Administration Instructions 2.03, prior review. ADB = Asian Development Bank.

2. List of Active Procurement Packages (Contracts)

61. The following table lists goods, works, and consulting services contracts for which the procurement activity is either ongoing or expected to commence within the procurement plan’s duration.

Table 19: List of Goods, Works, and Nonconsulting Services Goods, Works, and Nonconsulting Services Package General Description Estimated Procurement Review Bidding Advertisement Comments Number Value Method Procedure Date /IA ($ million (quarter/year) equivalent) Prior (First Demonstration West BRT Corridor, NMT BRT-W1 21.45 OCB/AN Works 1S1E Q4 2021 area in Connectors, and Pipe Works Contract) 2021/HCB-TB Northwest BRT Corridor, NMT Completion in BRT-W2 19.00 OCB/AN Prior 1S1E Q4 2022 Connectors, and Pipe Works 2022/HCB-TB Center BRT Corridor, NMT BRT-W3 23.01 OCB/AN Prior 1S1E Q2 2021 HCB-TB Connectors, and pipe works East BRT Corridor, NMT BRT-W4 19.89 OCB/AN Prior 1S1E Q4 2022 HCB-TB Connectors, and pipe works Demonstration Post BRT-W5 BRT station civil works 6.06 OCB/AN 1S1E Q4 2022 stations in (Sampling) west/ HCB-TB BRT system equipment Demonstration BRT-G1 (Station gates, ticket entry, 10.00 OCB/AIa Prior 1S1E Q4 2022 station in electricity supply and backup) west/ CC-TB BRT command center upgrade and intelligent command Post BRT-G2 equipment, ICT, room 4.36 OCB/AN 1S1E Q4 2022 HCB-TB (Sampling) decoration, UPS backup, servers) Traffic police management equipment (Traffic signal TR-G1 15.34 OCB/AIa Prior 1S1E Q4 2022 TP controls, CCTV, smart traffic guidance system) Traffic police management civil Start works in works (signal, road signs, rails, Post west TR-W1 4.18 OCB/AN 1S1E Q2 2022 bollards, pipes for signals and (Sampling) demonstration CCTV) area/TP

Package General Description Estimated Procurement Review Bidding Advertisement Comments Number Value Method Procedure Date /IA ($ million (quarter/year) equivalent) Flood risk management and sponge city infrastructure in Dongxing Creek area including FL-W1- Post pipes, end-of-pipe treatment, 6.99 OCB/AN 1S1E Q1 2020 HCB Lot1 (Sampling) and sponge city green infrastructure in residential area Flood risk management and sponge city infrastructure in FL-W1- Post Xinxing Creek area including 4.05 OCB/AN 1S1E Q1 2020 HCB Lot 2 (Sampling) pipes and end-of-pipe treatments Flood risk management and sponge city infrastructure in FL-W1- Guangjin Creek area including 10.84 OCB/AN Prior 1S1E Q1 2020 HCB Lot 3 pipes, end-of-pipe, and sponge in residential area Flood risk management and sponge city green Post Chaoyang FL-W2 8.52 OCB/AN 1S1E Q1 2020 infrastructure in Chaoyang (Sampling) Town River area Municipal water supply Post WS-W1 2.28 OCB/AN 1S1E Q1 2020 WC pipeline works (Sampling) Advance Water supply equipment Prior (First Contracting WS-G1 including flow meters and 2.35 OCB/AN Goods 1S1E Q1 2020 and smart water meters Contract) Retroactive Financing /WC 1S1E = single-stage: one envelope, ADB = Asian Development Bank, AI = advertised internationally, AN = advertised nationally, BRT = bus rapid transit, CCTV = closed-circuit television, HCB = Yanji housing and construction bureau, IA = implementing agency, ICT = information and communication technology, NMT = nonmotorized transport, OCB = open competitive bidding, TB = Yanji city transport bureau, TP = Yanji traffic police, WC = Yanji Water Group Company Limited. a Government preference: national advertisement.

Table 20: List of Consulting Services Consulting Services Estimated Package Selection Type of Advertisement General Description Value Review Comments Number Method Proposal Date ($ equivalent) Project implementation consulting services Includes $300,000 for study tours and CS1 for project 1,700,000 QCBS Prior FTP Q2 2020 training, advance contracting management support and capacity development CS2 Project implementation startup support consulting services 8individuals: CS2a municipal engineer CS2b transport expert CS2c procurement CS2d environment 350,000 ICS Prior EOI Q1 2020 Advance contracting CS2e resettlement CS2f GIS and Smart City ICT Specialist CS2g BRT and traffic management specialist CS2h Parking management specialist External environment, resettlement and CS3 300,000 CQS Prior BTP Q2 2020 social monitoring services Consulting Services Advance contracting to carry out the for Low-Carbon City traffic impact assessment and traffic CS4 Action Plan 1,200,000 QCBS Prior FTP Q1 2020 modelling work as input for the detailed preparation, Traffic design stage of the BRT corridor and Impact Assessment, station design

Consulting Services Estimated Package Selection Type of Advertisement General Description Value Review Comments Number Method Proposal Date ($ equivalent) Modelling and Evaluation, Parking Management Study and for BRT operation capacity development and BRT network planning, and Pedestrian and Bicycle and Universal Design Masterplanning CS5 Consulting services for Urban Climate Change Adaptation and Sponge City Action Plan preparation including Hydraulic Modeling and Simulation and Open Space Masterplanning 4 Individuals: CS5a international urban climate change 300,000 ICS Prior ICS Q4 2020 adaptation specialist CS5b international climate change hydrologist and sponge city and open space planning specialist CS5c local sponge city and open space planning specialist CS5d local hydrologist /geographer and GIS specialist

Consulting Services Estimated Package Selection Type of Advertisement General Description Value Review Comments Number Method Proposal Date ($ equivalent) CS6 Consulting services for Healthy and Age- Friendly City Masterplan and Monitoring Program Development 4 Individuals: International public CS6a health specialist 300,000 ICS Prior ICS Q4 2020 National public health CS6b specialist national urban CS6c planner and universal design specialist National health CS6d communications and public campaign specialist Consulting services for NRW reduction and leakage CS7 450,000 QCBS Prior FTP Q4 2020 identification, and Water Safety Plan Preparation CQS = consultant qualifications selection, FTP = full technical proposal, GIS = geographical information system, ICS = individual consultant selection, ICT = information and communication technology, NRW = nonrevenue water, Q = quarter, QCBS = quality- and cost-based selection.

3. List of Indicative Packages (Contracts) Required under the Project

62. The following table lists goods, works, and consulting services contracts for which the procurement activity is expected to commence beyond the procurement plan duration and over the life of the project (i.e., those expected beyond the current procurement plan’s duration).

Not applicable.

4. List of Awarded and Completed Contracts

63. The following table lists the awarded contracts and completed contracts for goods, works, nonconsulting, and consulting services.

Not applicable at this time.

5. Non-ADB Financing

64. The following table lists goods, works, and consulting services contracts over the life of the project, financed by non-ADB sources.

Table 21: Non-ADB Financing Contracts Goods and Works General Description Estimated Value Estimated Number of Procurement Comments ($ million equivalent) Contracts Method BRT-W6: BRT Bus Depot Counter-part fund 7.10 1 Domestic procedure and maintenance center Q4 2021 Counter-part fund BRT-G3: BRT clean- Q3 2022 for delivery in 27.70 1 Domestic procedure energy Buses April 2023 and start operation in 8 May 2023 BRT-G4: Park-and-Ride Counter-part fund two-storey mechanical 1.70 1 Domestic procedure Q3 2022 parking structures BRT = bus rapid transit, Q = quarter.

5. Open Competitive Bidding (advertised nationally)

a. Regulation and Reference Documents

65. The procedures to be followed for open competitive bidding (OCB) advertised nationally shall be those set forth in the (i) Government Procurement Law of the People’s Republic of China approved on 29 June 2002; and (ii) Law of the People’s Republic of China on Bid Invitation and Bidding of the People’s Republic of China promulgated on 30 August 1999, with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of ADB’s Procurement Policy.

b. Procurement Procedures

66. Competitive Bidding Procedure (Procurement Law Art. 26 and Law on Bidding Art. 10). Public tendering is the acceptable method of government procurement, and public invitation is the accepted bid invitation mode.

67. Eligibility. The eligibility of bidders shall be as defined under section I of the Procurement Guidelines; accordingly, no bidder or potential bidder should be declared ineligible for reasons other than those provided in section I of the Guidelines, as amended from time to time. The blanket waiver for country eligibility applies for contracts that are jointly financed by ADB.

68. Advertising. All invitations to prequalify or to bid shall be advertised in the national press (China Daily Newspaper) or a free and open access website (www.chinabidding.com). Such advertisement shall be made in sufficient time for prospective bidders to (i) obtain prequalification or bidding documents, and (ii) prepare and submit their responses. In any event, a minimum preparation period of 28 days shall be given. The preparation period shall count either (i) from the date of advertisement; or (ii) 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.

69. Bidding period. The minimum bidding period is 28 days prior to the deadline for the submission of bids.

70. Participation by government-owned enterprises. Government-owned enterprises in the borrower’s country may be permitted to bid if they can establish that they (i) are legally and financially autonomous, (ii) operate under commercial law, and (iii) are not a dependent agency of the borrower and/or the project’s executing agency.

71. Rebidding. Shall not be allowed solely because the number of bids is less than three.

c. Bidding Documents

72. Qualification requirements. 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.

73. Bid submission and opening. Bidders shall be allowed to submit bids by mail or by hand. All bids shall be opened in public, and 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.

74. Bid evaluation and award. 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 and/or the project’s executing agency. 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 (i) to be substantially responsive to the bidding documents, and (ii) 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. Bid evaluation committee of civil works and goods will include one person from a loan implementation consulting firm, one from the YCG (or from a tendering company), and five from the JPG expert pool through random selection. The method will set a basis for future bid evaluation expert selection; and the participation of experts, with bid evaluation experience for foreign loan projects, will avoid the risks of misprocurement.

75. ADB policy clauses. 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. A provision shall be included in all bidding documents for works and goods contracts financed by ADB, stating that the borrower shall reject a proposal for award if it determines that the bidder recommended for award has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive, or obstructive practices in competing for the contract in question. A provision shall be included in all bidding documents for the OCB works and goods contracts financed by ADB, stating that ADB will declare a firm or individual ineligible, either indefinitely or for a stated period, to be awarded a contract financed by ADB, if it at any time determines that the firm or individual has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive, or obstructive practices; or any integrity violation in competing for, or in executing, the ADB-financed contract.

D. Consultant's Terms of Reference

76. The consulting services to be financed by the loan includes seven packages including package bundles with individual consultants. An estimated total of 486 person-months (42 international, 444 national) of consulting services with a total of 19 contract packages are required with a total estimated cost of $4.6 million equivalent. The scope and tasks of the consulting services financed by the loan are described below. The Yanji city government (YCG), the executing agency of the project with support from a procurement agency to be recruited by YCG, will engaging the seven consulting service contract packages (including the package bundles) in accordance with ADB Procurement Policy (2017, as amended from time to time).In addition to the consulting services financed by the loan, domestically funded consulting services will also be recruited by the YCG and/or its implementing agencies. An overview is in the table below.

Table 22: Summary of Consulting Services Contracts No. Package Name Details Packages Financed by the ADB Loan CS1 Project implementation An international firm with international and national experts. consulting services for project Selected by YCG using ADB’s QCBS (90:10) selection method. management support and Expected duration: 5 years. capacity development CS2 Project implementation start-up Contract bundle with individual consultants: Six individual national support consulting services consultants and two individual international consultants

No. Package Name Details Selected by YCG using ADB’s ICS selection method Expected duration: a total estimated 26 person-months of intermittent input over an estimated period of 15months CS3 External environment, A national firm/agency with national experts. resettlement and social Selected by YCG using ADB’s CQS selection method. monitoring services Expected duration: Intermittent input from project start to 2 years after the completion of resettlement, social and gender, and environment monitoring activities. CS4 Consulting Services for Low- An international firm with international and national experts. Carbon City and Sustainable Selected by YCG using ADB’s QCBS (90:10) selection method. Transport Action Plan Expected duration: intermittent input over a period of 5 years. preparation CS5 Consulting services for Urban Contract bundle with individual consultants: Climate Change Adaptation and Three individual national consultants with a total expected of 22 Sponge City Action Plan person-months preparation including Hydraulic Expected duration: intermittent input over a period of 36 months Modeling and Simulation and Selected by YCG through ADB’s ICS selection method. Open Space Masterplanning CS6 Consulting services for Healthy Contract bundle with individual consultants: and Age-Friendly City Expected duration of intermittent input: 16 months. Masterplan and Monitoring Selected by YCG through ADB’s ICS selection method. Program Development CS7 Consulting services for A national firm/agency with national experts. nonrevenue water reduction and Selected by YCG using ADB’s CQS selection method. leakage identification, and Water Expected duration of intermittent input over 5 years. Safety Plan Preparation Packages Financed by Counterpart Funds 1 National design institutes The YCG in coordination with PIUs will engage and finance domestic design institutes to carry out preliminary and detailed engineering designs. Domestic procurement regulations will be followed. 2 National tendering agency The YCG will engage a domestic procurement agency with experience in international and national bidding for ADB projects. 3 National construction The PIUs will engage a domestic consultant for each works supervision engineers contract following domestic regulations on engineering supervision and procurement. Expected duration: from 1 month before the commencement of construction works to 1 month after the completion. Additional Capacity Development Support Activities 1 Remote Sensing Analytics and Technical support and training by the European Space Agency Training on Use of Satellite provided as grant through the European Space Agency over the Information for Climate Change course of 3 years Adaptation Planning 2 ADB healthy city pilot program ADB’s current initiatives to promote healthy city development support and training. support in the People’s Republic of China contributing to Healthy China 2030 will include seminars and training events to which YCG officials as a pilot healthy city will be invited and ADB monitoring of project progress will include ADB missions to Yanji during project implementation. 3 Water utility twinning partnership ADB organized form a learning partnership between water utilities on safe and efficient water supply. ADB = Asian Development Bank, CQS = consultant qualification selection, ICB = international competitive bidding, ICS = individual consultant selection, QCBS = quality- and cost-based selection, YCG = Yanji city government. Source: Asian Development Bank.

1. CS1: Project implementation consulting services for project management support and capacity development (international consulting firm,international,15 person-months, national, 175 person-months, includes $300,000 equivalent for training and study tours also related to topics of and in coordination with consultants from CS4, CS5, CS6, and CS7).

77. Scope of work. Support to achievement of project outputs 1, 2 and 3 through support to project implementation, project management, technical design review, safeguards plan updates and safeguards compliance, procurement, disbursement, financial management, contract management, construction supervision and quality assurance, and project progress and safeguards monitoring and reporting and associated capacity development. Preparation of training needs assessment and development and implementation of a capacity development plan including study tours. Training on technical matters and study tours will be prepared with support from and in coordination with consultants of CS4, CS5, CS6, and CS7.

78. An international consulting firm will be selected through QCBS selection method with a standard quality: cost ratio of 90:10 with the full technical proposal procedure. The estimated input includes 18 person-months of international consultant input and 193 person-months of national consultant input. Table 23 shows the summary of specialists’ inputs. All international specialists must have a relevant academic degree and at least 12 years (team leader: at least 15 years) of relevant project experience. Work experience in the PRC will be an advantage. All national specialists must have a relevant academic degree and at least 7 years (deputy team leader: at least 15 years) of relevant work and project experience. National specialists should be fluent in English and experience from working with international agencies will be an advantage. The assignment requires a very high percentage of field inputs compared to total person-months to ensure smooth project implementation and capacity development benefit for the PMO, executing and implementing agencies, and stakeholders and communities. The assignment also requires confirmation by all experts to confirm their availability and commitment to the project not only for their overall assignment but also for field visits and inputs.

Table 23: Summary of Consultant Inputs (tentative) International National Area of Expertisea (person-months) (person-months) 1. Project Management Transport Engineer (team leader) 9 2. Deputy team leader and/or construction management 32 specialist 3. Project management and site supervision engineer 42 4. Financial management and disbursement specialist 2 12 5. Procurement and contract management specialist 8 6. Public transport and BRT management specialist 5 7. Traffic management specialist 5 8. Road and traffic safety specialist 5 9. River rehabilitation and sponge city green infrastructure 5 specialists 10. Municipal and urban drainage engineer 5 11. Water supply and nonrevenue water engineer 5 12. GIS and SCADA specialist 5 13. Institutional specialist: water utility management 5 14. Social development and gender specialists 2 12 15. Resettlement specialist 12 16. Environment specialists 2 12 17. Capacity building specialist 5 Total person-months 15 175 BRT = bus rapid transit, GIS = geographic information system, SCADA = supervisory control and data acquisition. a In addition, some specialists will be engaged as resource persons to carry out specific training programs and events. Source: Asian Development Bank estimates.

79. The consulting services package CS1 will include: (i) project management support focusing on directly supporting the PMOs and PIUs in all aspects related to project management, implementation, monitoring, reporting, procurement, contract management and financial management; and (ii) capacity development including institutional development, practical training and policy dialogue with PMOs, PIUs, and concerned local government agencies to improve knowledge and management skills to ensure project investment sustainability, and enable smooth implementation and sustainable operation and maintenance of the project facilities and enhancing the benefits and synergies from the investments and ensuring the sustainability of the project. Capacity development for PMOs and PIUs staff on ADB policies, procedures and technical requirements on procurement, contract management, technical supervision and quality control, financial management, environmental and social safeguards, monitoring and evaluation and reporting to enable them to efficiently fulfill tasks effectively and efficiently.

80. Project management support. The scope will include but not be limited to (i) developing a project performance management system (PPMS) for the project, (ii) assistance with procurement including support to advance contracting, retroactive financing, and contract management; (iii) construction monitoring; (iv) funds withdrawal, reimbursement, and financial management; (v) monitoring the implementation of environmental and social safeguards; (vi) daily liaison and communication with ADB; (vii) assisting with organization and coordination for ADB loan review missions; (viii) preparing required reports under the loan agreement; and (ix) monitoring compliance with loan covenants and assurances. These services will be provided by the whole team of international and national specialists led by the international team leader, national deputy team leader, and coordinated by a national project management specialist. Detailed tasks include but are not limited to the following: (a) establishing organizational structure, operational procedures, reporting and filing system, and formulate work plans;

(b) establishing PPMS, including defining baseline data, data collection and analysis, reporting mechanism, and regular updates of PPMS in line with ADB’s requirements; (c) providing technical support for advance procurement, and supporting the tendering agency, including review for procedural compliance, review of bidding documents, review of bid evaluation results, review of contracting documents and contract negotiations, to ensure that the advance contract packages are in compliance with ADB’s policies and procedures; (d) providing support for procurement, and supporting the National Tendering Agency, including review for procedural compliance, review of bidding documents, review of bid evaluation results, review of contracting documents and contract negotiations, to ensure that the tendering complies with ADB’s policies and procedures; (e) assisting the PMOs in preparing contract variations, including revisions, reviews and confirmations, and preparing, submitting and updating the contract variation documents in accordance with PRC and ADB requirements, covering the contents of variations, rationales, environmental due diligence and revisions to the environmental management plan; (f) carry out project management and site supervision work; (g) assisting the PMOs in the updating, implementation and monitoring of resettlement plans prepare relevant due diligence reports in case of any changes in project scope during implementation; (h) assist the PMO to manage the consultants, their contracts and deliverables timelines and field inputs, etc.; (i) on behalf of the PMOs, coordinating with the National Construction Supervision Company to review construction quality and progress, and provide recommendations and advice to rectify problems that may occur; (j) establishing a project financial management system in conformity with ADB’s policies and procedures, and assisting with fund withdrawals and reimbursement, including forecasts and applications for replenishment of the advance account, review of fund withdrawal application reimbursement documents, periodic compilation of ADB disbursements, and review and completion of provision and utilization of counterpart funds; (k) regularly updating project financial information, including the investment plan and financing plan; (l) assisting the PMOs in reviewing annual audits of the project account, and coordinating the submission of the annual audit reports and responses to ADB comments; (m) reviewing and revising as needed the environmental management plan (EMP), and the social and gender action plan (SGAP) as well as inspecting the implementation of EMPs including public consultations, and prepare, submit and update related periodic monitoring reports in accordance with covenants of the loan agreement; (n) reviewing and revising as needed the SGAP, as well as inspecting the implementation of SGAP including public consultations, and prepare, submit and update related periodic monitoring reports in accordance with covenants of the loan agreement, prepare relevant due diligence reports in case of any changes in project scope during implementation; (o) assisting the PMOs in daily communication with ADB, including drafting communication documents and responses to ADB’s information requests;

(p) providing necessary assistance to PMOs for ADB loan review missions, including liaison, mission schedule and data collection, as well as coordinating relevant matters related to signing of the memorandum of understanding; (q) assisting the PMOs to prepare and submit the quarterly progress report and semiannual consolidated project progress reports, environmental monitoring reports, resettlement monitoring reports in conformity with the assurances/covenants of the loan and project agreements, and revise the reports in response to comments from ADB; (r) monitoring and reporting on compliance with Loan covenants; (s) assisting the PMOs to organize the loan midterm review, including pre-mission preparation and coordination, preparing all required documents (tendering process, procurement progress, engineering progress, fund withdrawal and disbursement progress, financial reevaluation, economic reevaluation, environmental reevaluation, resettlement reevaluation, project scope adjustment and justifications, environmental and resettlement due diligence), updating the procurement plan, and revising post-mission documents with all major experts participating in the entire process; (t) assisting the PMOs to complete the project completion report (PCR) and all related work, including advance preparation and coordination for the ADB review mission, preparing and revising all required reports for the PCR, covering tendering documents, procurement, construction, fund withdrawal and disbursement, financial reevaluation, economic reevaluation, environmental reevaluation, resettlement reevaluation with the main specialists from the team participating in the entire ADB missions; and (u) completing other tasks that may be assigned by the PMO from time to time.

81. Capacity development. The purpose is to provide adequate knowledge and skills to PMO and PIUs staff to ensure operational knowledge attainment on ADB policies and procedures and project management-related aspects (PPMS, procurement, financial management, contract management, fund withdrawal, disbursement, EMP and environmental safeguard monitoring, and social safeguard monitoring including resettlement plan, and SGAP). These services will be provided by the whole team of international and national specialists led by the international team leader, national deputy team leader, and coordinated by a national project management specialist. Detailed tasks include but are not limited to the following: (i) during inception period, under the leadership of PMO, preparing a detailed training needs assessment and training plan that will cover training objectives, trainees, contents, location, time, training modality and budget, facilitating and institutionalizing a cross-departmental mechanism of regular meetings for project management and knowledge sharing to be hosted by the PMO and with participation of all PIUs and other concerned agencies and inviting concerned stakeholders and experts as needed; (ii) organizing and providing training on, but not limited to, technical engineering design, environmental and engineering standards and compliance with regulation and good design practices, sustainable operation and maintenance of project facilities, financial and economic viability assessments, ADB’s policies and procedures, PPMS, procurement, financial management, contract management, fund withdrawal and disbursement, reimbursement, EMP and environment monitoring including monitoring progress of environmental improvements from the project, monitoring safeguard policy compliance including the updating, implementation and monitoring of resettlement plan, SGAP, and other related trainings as required by PMO;

(iii) organizing on-the-job training, local training events like seminars and workshops, and training on technical matters related to the project to share lessons from good practice projects in areas relevant to the project, including co-benefits from multisector projects that comprehensively include economic and urban development and transformation from a resource-based to a diverse and knowledge-based economy in the PRC and internationally; (iv) drafting a program of domestic and overseas training and study tours according to PRC guidelines and budget to locations with good practices for integrated flood risk management, ecological river management, water supply and wastewater management, and road safety management and public transport; and (v) supporting the preparation of project progress reports, monitoring reports, site supervision reports, photo documentation of project progress, stakeholder and public participation, project completion report; preparing training materials and reports on lessons learned from the project to be shared with a wider audience including ADB project management offices in the PRC, other concerned experts in the PRC and other ADB developing member countries.

82. Cost estimate of the consulting services package CS1.The costs for the consulting services are estimated as follows.

Table 24: Cost Estimates for Contract Package CS1 ($'000 equivalent) Item Amount Financed by the ADB loan 1. Consultants a. Remuneration and per diem i. International consultants 220 ii. National consultants 1,050 b. International and local travel 60 c. Reports and communicationsa 5 2. Workshops, training, seminars, and conferencesb 300 3. Miscellaneous administration and support costs 5 4. Contingencies 60 Total 1,700 Note: Not included in the calculation is the counterpart funding from local governments to be provided in-kind including office space with desks and chairs, local transport in project cities for project meetings and site visits; qualified fulltime counterpart personnel in the PMO to work with the consultants; and access to all data, including documents, reports, accounts, drawings and maps, and permissions. a Includes communications facilities, printing and binding of reports, and translation. b Comprises costs for international and national study tours of concerned local government officials from Yanji City involved in project implementation. Source: Asian Development Bank estimates.

83. Reporting requirements. Reporting requirements for the consulting services package CS1 are found in Table 25.

Table 25: Reporting Requirements for CS1 Category Schedule Target Audiences Inception report Within 1 month after PMO issues the PMO, IAs, ADB notice to proceed of Consulting service Quarterly progress reports and During implementation period, PMO, IAs, ADB Semiannual consolidated progress semiannual (end of Jan and Jul) reports Midterm review report Midterm review preparation report PMO, IAs, ADB Project completion report 1 month before ADB PCR mission PMO, IAs, ADB and no later than 3 months after project completion Semiannual environment monitoring Semiannual (end of Jan and Jul) PMO, IAs, ADB reports Revisions to environmental monitoring After preparation of the detailed PMO, IAs, ADB plan engineering design Draft training and study tour plana End of the first year PMO, IAs, ADB Reports for each capacity development 2 months after completion of activity PMO, IAs, ADB activity All training materials After each lecture/workshop PMO, IAs, ADB All public education materials After preparation PMO, IAs, ADB ADB = Asian Development Bank, IA = implementing agency, PMO = project management office, PCR = project completion report. a International study tours must comply with PRC regulations and guidelines. Source: Asian Development Bank

84. Reports or other consulting service packages under the project must be prepared in both English and Chinese language. The PMOs will decide on the number of copies of reports to be provided by the consultants to the PMOs and will distribute reports to relevant PIUs and local government agencies and an electronic copy of all reports in English language will be submitted to ADB.

2. CS2: Project implementation start-up support consulting services (international, 4 person-months; national, 22 person-months).

85. Scope of work. Individual consultants will be engaged under this package bundle work directly with the PMO and PIUs. The purpose of the project implementation start-up support consulting services is to assist the PMO in project implementation startup activities to accelerate and facilitate timely implementation before the loan implementation consultant engaged under package CS1 is engaged. The individual consultants are expected to support (i) procurement of national companies for construction supervision; (ii) procurement of an international company for project support and capacity development; (iii) the PMO and PIUs in preparing civil works and procurement contracts; (iv) update of resettlement plans and provide support to resettlement activities; (v) update and provide further detailed environmental management plans for advance procurement packages; (vi) establish a filing system for document reporting, tracking, and retaining, (vii) develop project financial management manual; (viii) support project financial management, withdrawal application preparation and disbursement; (ix) assess the PIUs information and communications technology (ICT) systems and the used data platforms and identify weaknesses and opportunities for efficiency gains and upgrades; (x) review and assess the bus rapid transit (BRT) system design and traffic management and propose improvements based on international best practice; (xi) review and assess parking management and propose improvements based on international best practice; and (xii) provide training to PMO and PIUs.

86. Consultant inputs. The start-up support consulting services will include a total input of 22 person-months of individual national consultants and a total of 4 person-months of individual

international consultants to work directly with the PMO and PIUs. The individual experts will be engaged in accordance with ADB’s Guidelines on the Use of Consultants (2017, as amended from time to time). The consultants will be selected and engaged following the individual consultant selection method and will work on an intermittent basis with a schedule agreed with the PMOs. The six experts to be recruited are in Table 26.

Table 26: Summary of Project Implementation Startup Support Consulting Services CS2 International National Area of Expertise (person-months) (person-months) CS2a Municipal Engineer 5.0 CS2b Sustainable Urban Transport Specialist 3.0 CS2c Project procurement and management specialist 3.0 CS2d Environment specialist 3.0 CS2e Resettlement specialist 3.0 CS2f GIS and Smart City ICT Specialist 5.0 CS2g BRT and traffic management specialist 2.5 CS2h Parking management specialist 1.5 Total person-months 4.0 22.0 BRT = bus rapid transit, GIS = geographic information system, ICT = information and communication technology Source: Asian Development Bank estimates.

87. CS2a: Municipal engineer (national, 5 person-months). The municipal engineer will have a university degree or above in municipal engineering, or related field with demonstrated knowledge in detailed technical project design, urban infrastructure planning (water supply, wastewater and drainage, flood engineering) and operation, and contract management. S/he will have at least 10 years of experience in relevant projects and /or government agencies, preferably also experience from projects funded by the ADB or other international funding agencies. This position requires an English language proficiency. Tasks and responsibilities of the specialist include but are not limited to the following: (i) providing support to the Yanji City project management office (PMO) on project preparation and preparation of advance procurement and retroactive financing contract packages; (ii) providing technical and operational assistance to the PMO in reviewing detailed designs by the local design institute (LDI) and bills of quantities for the bidding documents for the water supply, drainage/wastewater pipe, and river rehabilitation subcomponents; (iii) support technical aspects of procurement processes and preparing technical documents, including bidding documents, specifications, bid evaluation reports, etc., for preparation of procurement packages intended for advance contracting; (iv) assisting the PMO in preparing necessary technical documents for urban infrastructure bid documents and civil works and goods contracts; (v) providing assistance to the PMO on other project startup and implementation related tasks as needed; (vi) preparing a report on the status of project startup activities and project implementation; and (vii) handover documents and files to the project implementation support consultant firm and reporting on the status and outstanding issues.

88. CS2b: Sustainable urban transport specialist (national, 3 person-months). The sustainable urban transport specialist will have a university degree or above in transportation planning, public transport, road and civil engineering, or related field with demonstrated knowledge in detailed technical project design, road and public transport BRT infrastructure planning and operation, and contract management. S/he will have at least 10 years of experience

52 in relevant projects and /or government agencies, preferably also experience from projects funded by the ADB or other international funding agencies. This position requires an English language proficiency. Tasks and responsibilities of the specialist include but are not limited to the following: (i) providing support to the PMO on project preparation and preparation of early procurement contract packages including BRT and road-links connecting the BRT stations with local vehicular and nonmotorized transport; (ii) providing technical and operational assistance to the PMO in reviewing detailed designs by the LDI and bills of quantities for the bidding documents for the sustainable transport subcomponents of output 1 of the project; (iii) support technical aspects of procurement processes and preparing technical documents, including bidding documents, specifications, bid evaluation reports, etc., for preparation of procurement packages intended for early contracting; (iv) assisting the PMO in preparing necessary technical documents for transport infrastructure bid documents and civil works and goods contracts; (v) providing assistance to the PMO on other project startup and implementation related tasks as needed; (vi) preparing a report on the status of project startup activities and project implementation; and (vii) handover documents and files to the project implementation support consultant firm and reporting on the status and outstanding issues.

89. CS2c: Project procurement and management specialist (national, 3 person-months). The procurement specialist will have a university degree or above in management, accounting, or related field with demonstrated knowledge in procurement procedures and processes. S/he will have at least 10 years of experience in procurement of civil works, goods, and services including international competitive bidding, preferably on projects funded by the ADB or other international funding agencies. Knowledge of ADB or other international funding agency procurement guidelines and procedures will be required. This position requires an English language proficiency. Tasks and responsibilities of the specialist include but are not limited to the following: (i) organizing and maintaining a project filing system according to specifications by the PMO and ADB in both hard copy and electronic files and will be used by all startup consultants and the PMO offices; (ii) providing administrative and operational assistance to the PMO; (iii) assisting in the preparation of procurement packages for advance contracting; (iv) organizing procurement processes and preparing documents, including bidding documents, specifications, bid evaluation reports, etc., for preparation of procurement packages intended for advance contracting; (v) providing assistance to the PMO and to the tender evaluation committee during the tendering process in preparing the following in accordance with ADB procurement guidelines: (a) detailed terms of reference for relevant packages in consultation with relevant technical experts, (b) invitations to bid, (c) answers to bidders’ queries, and (d) bid evaluation reports; (vi) coordinating with ADB during tender evaluation; (vii) assisting the PMO in preparing necessary documents for contract signing and contractor/consultant mobilization; (viii) preparing a report on the status of project startup and procurement; and (ix) handover documents and files to the project implementation support consultant firm and reporting on the status and outstanding issues.

90. CS2d: Environment specialist (national, 3 person-months). The environment specialist will have a university degree or above in environmental or civil engineering, or related field with demonstrated relevant experience. S/he is proficient in English and shall have at least 10 years of experience in environmental impact assessment on projects funded by ADB or other international funding agencies. Knowledge in environment safeguard policies and procedures by ADB or other international funding agencies is required. Tasks and responsibilities of the environment specialist include, but are not limited to the following: (i) assisting the implementing agencies to update the environmental impact assessments and environmental management plans based on final design; (ii) assisting implementing agencies and/or PIUs to design adequate mitigation measures to reduce the expected adverse environmental impacts; (iii) ensure adequate environmental management readiness prior to implementation; (iv) assisting the PMOs and/or PIUs to establish an effective grievance redress mechanism (GRM) with reporting of environmental impact related complaints, follow-up actions, and results; (v) providing training to the PMOs and the PIUs so they understand ADB policies and compliance requirements for environmental safeguard; (vi) assisting the PMOs and PIUs in establishing an internal environmental monitoring and reporting system, which will be included in project progress reports; and (vii) assisting the PMOs and PIUs in handing over relevant documents and files on project implementation support to the consultant firm (package CS1) and brief them on the preparation and implementation status and outstanding issues.

91. CS2e: Resettlement specialist (national, 3 person-months). The resettlement specialist will have a university degree or above in resettlement, social, or related field with demonstrated experience. S/he is proficient in English and shall have at least 10 years of experience in resettlement on projects funded by ADB or other international funding agencies. Knowledge in resettlement safeguard policies and procedures by ADB or other international funding agencies is required. Tasks and responsibilities of the resettlement specialist include, but are not limited to the following: (i) assisting the implementing agencies to update the resettlement plans based on final design, meaningful consultation with affected people, detailed measurement surveys, and census of affected persons; (ii) assisting implementing agencies and/or PIUs to ensure adequate resettlement readiness prior to implementation; (iii) assisting the PMO and/or PIUs to establish an effective GRM with reporting of complaints, follow-up actions, and results; (iv) providing training to the PMO and the PIUs so they understand ADB policies and compliance requirements for resettlement safeguard; (v) assisting the PMO and PIUs in establishing an internal resettlement monitoring and reporting system, which will be included in project progress reports; and (vi) assisting the PMO and PIUs in handing over relevant documents and files on project implementation support to the consultant firm (package CS1) and brief them on the preparation and implementation status and outstanding issues.

92. CS2f: Geographic information system and smart city information and communications technology specialist (national, 5 person-months). Geographic information system (GIS) and smart city ICT specialist will have a university degree or above in computer or software engineering, or related field with demonstrated experience. S/he is proficient in English and shall have at least 10 years of experience in ICT systems design and operation in the PRC. Tasks and responsibilities of the specialist include, but are not limited to the following:

(i) assess current ICT systems and data platforms of the implementing agencies/PIUs; (ii) identify and document the business functions supported by the ICT platform; (iii) benchmark the ICT solutions against best practices in the PRC or elsewhere; (iv) perform an evaluation of the solutions and identify functional areas that needs to be strengthened, or introduced newly; (v) propose solutions for improvements; (vi) suggest list of pilot projects that can be undertaken during implementation; (vii) provide functional and technical specifications, and costs and benefits associated with pilots; (viii) develop detailed functional and technical specifications and cost estimates; (ix) factor total cost of ownership requirements of the solution and economic justification; (x) develop detailed cost estimates with assumptions, and risks and associated mitigation; and (xi) develop maintenance and operation plans required for the ICT platform; and (xii) develop a detailed training and change management plan.

93. CS2g: Bus rapid transit and traffic management specialist (international, 2.5 person- months). The specialist will have a university degree or above in civil or transport engineering, or related field with demonstrated knowledge in detailed technical engineering design, public urban transport infrastructure planning and operation, and traffic management. S/he will have at least 15 years of experience in relevant projects and working with cities, preferably also experience from projects funded by the ADB or other international funding agencies and project experience in the PRC. This position requires an English language proficiency. Tasks and responsibilities of the specialist include but are not limited to the following: (i) providing support to the Yanji city PMO on reviewing and critically assessing the BRT and transport management feasibility study design, preliminary design and detailed engineering designs and providing comments and proposals for design improvements and optimization based on demand and international best practice; (ii) providing assistance to the PMO in reviewing detailed designs and tender documents by the LDI including bills of quantities for the BRT and traffic management component; (iii) preparing a report on the status of project startup activities, and project implementation progress and including technical guidance provided to the PMO; and (iv) cooperating and coordinating and providing guidance to the CS3 consultant firm and providing training to the PMO.

94. CS2h: Parking management specialist (international, 1.5 person-months). The specialist will have a university degree or above in civil or transport engineering, or related field with demonstrated knowledge in detailed technical engineering design, urban transport infrastructure planning, parking and traffic management. S/he will have at least 15 years of experience in relevant projects working with cities, preferably also experience from projects funded by the ADB or other international funding agencies and project experience in the PRC. This position requires an English language proficiency. Tasks and responsibilities of the specialist include but are not limited to the following: (i) providing support to the Yanji City PMO on reviewing and critically assessing the parking management design, preliminary design and detailed engineering designs and providing comments and proposals for design improvements and optimization based on demand and international best practice;

(ii) providing assistance to the PMO in reviewing detailed designs and tender documents by the LDI including bills of quantities for the parking management component; (iii) preparing a report on the status of project startup activities, and project implementation progress and including technical guidance provided to the PMO; and (iv) cooperating and coordinating and providing guidance to the CS3 consultant firm and providing training to the PMO.

95. Cost estimate. The estimated total cost for the contract package bundle CS2 consisting of 8 individual contracts is in Table 27.

Table 27: Cost Estimates for Contract Package Bundle CS2 ($'000 equivalent) Item Amount Financed by the ADB loan 1. a. Remuneration and per diem i. International consultants 80 ii. National consultants 175 b. International and local travel 40 c. Reports and communicationsa 10 2. Miscellaneous administration and support costs 5 3. Contingencies 40 Total 350 a Includes communications facilities, printing and binding of reports, and translation. Source: Asian Development Bank estimates.

3. CS3: External environment, resettlement and social monitoring services (national, 42 person-months)

96. The executing agency on behalf of the four cities will recruit a national consulting firm, or institute with a team of qualified and experienced external monitoring experts through CQS. The external monitoring experts should have the following qualifications and experience: University degree in a relevant field (social science, engineering, and land management); experience in working in urban development projects and with vulnerable households and on civil and environmental engineering and monitoring projects; demonstrated knowledge and experience in applying best practices in involuntary resettlement, social and gender development plans, and environmental management plan implementation; at least 5 years of experience in the formulation and implementation of resettlement plans and social and gender action plans (SGAPs), and environmental impact assessments (EIAs) and environmental management plans (EMPs); and proficiency in English report writing.

97. External monitoring of resettlement plan implementation and safeguards monitoring. One of the provisions in the resettlement plan is the engagement of an external resettlement monitor to carry out monitoring and evaluation of social safeguard compliance of the project during and after resettlement implementation as well as the SGAP. A national resettlement and social and environmental consulting firm or institute will be engaged for the whole duration of project implementation to act as external monitor. The institute with estimated total input of 42 person-months of national consultants will be engaged by CQS method.

98. Team of specialists required. To carry out the scope of work and tasks outlined above, the consulting firm will provide a total of three national specialists for a total of 22 person-months. The consultants will be duly qualified with respective relevant academic degrees equivalent to

masters degree or higher and have at least 8 years (team leader and social development and gender specialist) and 4 years (deputy team leader) of experience in their respective fields relevant to the project’s requirements.

Table 28: Summary External Resettlement and Social Monitoring Consultant Inputs National Area of Expertise (person-months) 1. Senior resettlement specialist (team leader) 5 2. Resettlement specialist (deputy team leader) 12 3. Social development and gender specialist 5 Total 22 Source: Asian Development Bank estimates.

99. Objectives and requirements of monitoring and evaluation. The external monitor will (i) assess the effectiveness, impacts and sustainability of land acquisition, compensation, and resettlement measures; (ii) determine whether such activities have met the safeguard policy requirements of the project; and (iii) extract and highlight lessons for future social safeguard policy formulation and project planning. All data and analysis will be disaggregated by gender, if applicable. The external monitor will carry out semiannual monitoring of the resettlement plan implementation during the entire period of resettlement plan implementation, which includes the payment of compensation, assistance and implementation of livelihood restoration programs, if any. The findings of the monitoring exercise will be presented in a resettlement monitoring report to be submitted to PMO and ADB for review prior to disclosure on ADB website. This semiannual monitoring will continue for a year after the completion of the resettlement plan implementation, after which a resettlement completion report will be prepared to assess the overall effectiveness of resettlement plan implementation, evaluation of whether the affected persons have been able to at least restore their original livelihoods prior to relocation, if not improved. The external monitoring process will include the following activities: (a) review and verification of the internal monitoring reports and resettlement completion reports of the PMO; (b) identification and selection of project impact indicators; (c) impact assessment (e.g., restoration of incomes and living conditions) through quantitative and qualitative studies; (d) gender-sensitive consultations with affected persons; (e) assessment of compliance with government’s laws and regulations and the ADB Safeguard Policy Statement’s (SPS, 2009) involuntary resettlement policy requirements outlined in the resettlement plan; (f) recommendations on the land acquisition process modification and adaptation measures; (g) effectiveness of the GRM; and (h) lessons learned.

100. External monitoring key indicators: (i) impacts of land acquisition on the affected households, especially the poor and other vulnerable households; (ii) economic status of the affected households, their employment status, income levels, and household assets with the assessment done against the pre-project baseline information; (iii) changes in the status of affected vulnerable persons, in terms of food security, household demographics, and livelihoods in relation to project impacts; (iv) degree of support the affected persons received through consultations, assistance in restarting income activities, and livelihood restoration

(v) outstanding land acquisition and resettlement (LAR) or compensation issues (status and the time frame to complete and/or resolve them); (vi) perceptions of the affected persons regarding the implementation of the land acquisition and compensation payment processes; (vii) impacts on affected businesses (permanent and temporary); (viii) participation of affected persons in the implementation of the resettlement plan; (ix) level of consultations with affected persons by the PMO and relevant agencies; (x) effectiveness and fairness of valuation, compensation, and compensation disbursement measures; (xi) implementation and effectiveness of income restoration measures; (xii) effectiveness and fairness of the GRM process; (xiii) level of satisfaction among the affected persons in the post-resettlement plan phase; (xiv) adequacy of resettlement funds, their timely availability, and results of financial audits; and (xv) performance monitoring of LAR implementing agencies.

101. Monitoring methodologies will be but not limited to the following: (i) desk review and field visits; (ii) use of structured questionnaires; (iii) meetings with various departments and organizations, local officials, and affected households; (iv) focus group discussions (FGDs); and (v) key informant interviews. Separate meetings will be held with women and vulnerable households. Monitoring indicators and findings will be disaggregated by gender, if applicable.

102. External monitoring of social and gender action plan. The external social monitor will review the progress of SGAP implementation as part of the semiannual monitoring process. The consultant will: (i) carry out external monitoring in accordance with the SGAP; (ii) review the SGAP internal monitoring reports and guide and assist the PMOs and PIUs in carrying out the internal monitoring; (iii) monitor and evaluate performance of organizations responsible for SGAP implementation; (iv) collect sex-disaggregated baseline data to monitor the progress of SGAP implementation; (v) update the SGAP implementation progress matrix as part of the external monitoring, and submit it with external monitoring reports semiannually to ADB and executing agency; (vi) interviews, focus group discussions (FGDs), and consultations will be carried out with the direct project beneficiaries, in addition to affected people to assess the progress of SGAP implementation; (vii) when the project is completed, carry out post-review on SGAP activities to collect sex-disaggregated quantitative data and conduct qualitative FGDs with women on how the project has changed their quality of life; and (viii) complete any other tasks relating to SGAP external monitoring as required by PMOs.

103. External environment monitoring. This portion of the assignment is for the duration of project implementation to act as external environment monitor. The external environment monitor experts will provide technical and management support to ensure compliance during project implementation with the environmental impact assessment and environmental management plan (EMP). The external environment monitor experts will be responsible for environmental management training, independent environmental verification, and appointment and

58 management of licensed environmental quality monitoring institute(s) to conduct periodic environment quality monitoring. Specific tasks include: (i) assisting the PMO and PIUs to establish a project-level environmental management system, consisting of relevant staffing, inspection, monitoring, GRM, and reporting; (ii) assessing project components’ environmental readiness prior to implementation based on the readiness indicators defined in Table EMP-6 in the EMP; (iii) assisting PMO to update the EMP including the mitigation measures and environmental monitoring program therein, based on the detailed engineering design and submit for executing agency and ADB’s clearance and disclosure; (iv) assisting PIUs in contracting of environment supervision consultants for each civil works contract; (v) reviewing and clearing site EMPs; (vi) assisting the PMO and PIUs to establish a GRM, and provide training for the GRM access points; (vii) conducting independent verification of the project’s environmental management performance, undertake site visits as required, identify any environment-related implementation issues, propose necessary corrective actions and reflect these in a corrective action plan; (viii) contracting local environmental monitoring stations or other licensed institutes to conduct environmental impact monitoring per requirements specified in the EMP during construction; coordinating the external environmental impact monitoring; comparing the predicted with the actual environmental impacts, assessing the effectiveness of the mitigation measures, and suggesting enhancement measures, as required; (ix) preparing semiannual environmental monitoring and progress reports to ADB; (x) prior to midterm review mission, providing support to PMO and PIUs in organizing public meetings in the project city/towns to present and discuss EMP implementation progress, solicit community opinions and concerns, and agree on required corrective actions; (xi) prior to project completion, organizing surveys in the project city/town to assess community satisfaction with project implementation, project outputs, and EMP implementation performance, and document the results in the PCR; (xii) providing input of environmental protection to progress report, midterm report, project completion report, and other project required documents; and (xiii) service completion report.

104. Team of specialists required. To carry out the scope of work and tasks outlined above, the consulting firm will provide a total of two national specialists for a total of 20 person-months. The consultants will be duly qualified with respective relevant academic degrees equivalent to masters degree or higher and have at least 8 and 4 years of experience in their respective fields relevant to the project’s requirements.

Table 29: Summary External Environment Monitoring Inputs National Area of Expertise (person-months) 1. Team leader: Senior environment specialist 5 2. Deputy team leader: environment specialist 15 Total 20 Source: Asian Development Bank estimates.

105. Frequency of Monitoring and Reporting Requirements. The external monitor will carry out semiannual monitoring for the entire implementation of resettlement plans and SGAP estimated to be 3 years between 2020 and 2022. Post-evaluation will be carried out during the fourth and fifth years estimated in 2023 and 2024, or within 24 months after completion of resettlement activities. The external monitor for environment will carry out semiannual monitoring for compliance with EIA and EMP implementation during the entire implementation period of the project. A monitoring report will include: (i) a summary of field and document review findings; (ii) field observations and a summary of affected persons and social and environmental impacts and stakeholders’ views and suggestions and recommendations; (iii) major issues, grievances, and problems identified during field visits (existing and potential); (iv) recommendations on mitigation or prevention measures; (v) comments on internal monitoring (relevance, adequacy, and timeliness); (vi) an assessment of previous external monitoring follow-up actions; and (vii) conclusion, which summarizes the above.

106. All monitoring reports will be written in English and Chinese languages. The city PMOs will ensure that information on the progress and status on all aspects of land acquisition and resettlement activities will be provided to the external monitor for verification. The external monitor will submit all the monitoring reports simultaneously to the executing agency, implementing agencies, and ADB.

107. The external monitor will present its key findings and recommendations to the PMOs at least 2 days prior to the end of each monitoring period. The external monitor will submit monitoring reports (in English and Chinese languages) simultaneously to the executing agency and implementing agencies and ADB within 15 working days after completion of each monitoring activity. The external monitor is also required to revise the external resettlement and social monitoring reports and the external environment monitoring reports based on comments received from the PMO and ADB and submit the revised reports simultaneously to the PMO and ADB within 7 working days. Photos, site photos, minutes of meetings, and attendance sheets, held with various stakeholders will be attached in the reports. Documents obtained during monitoring will also be attached as necessary.

108. The monitoring schedule starting from 2020 and until 2 years after resettlement plan implementation actions completion is as follows.

Table 30: Schedule for CS3 Activities / Tasks Timing Submission of Report Semiannual monitoring (2020–2022) 1 January–30 June 15 August Semiannual monitoring (2020–2022) 1 July–31 December 15 February Post-evaluation monitoring (2023–2024) 1 January–31 December 15 February

109. Cost estimates. The estimated cost for the external resettlement and social monitoring and external environment monitoring services is shown in Table 31.

Table 31: Cost Estimates for Contract Package CS3 ($'000 equivalent) Item Amount 1. Consultants a. Remuneration and per diem (national consultants) 230 b. Local travel 30 c. Reports and communicationsa 5 2. Surveys and resettlement and social data collection, and 20 environmental data collection including sampling 3. Contingencies 15 Total 300 a Includes communications facilities, printing and binding of reports, and translation. Source: Asian Development Bank estimates.

4. CS4: Consulting Services for Low-Carbon City and Sustainable Transport Action Plan preparation (international consulting firm, international, 12 person-months and national, 105 person-months) (i) Low Carbon City based on transit-oriented development (TOD) principles and Sustainable Transport Action Plan preparation, (ii) Traffic Impact Assessment, Modelling and Evaluation, (iii) Parking Management Study, (iv) BRT operation capacity development, (v) BRT network planning including next generation ITS functionalities and implementation framework, and (vi) Pedestrian and Bicycle and Universal Design Masterplanning.

110. Scope of work. The consultant team comprising of international and national experts will carry out but will not be limited by the following tasks: (i) prepare low-carbon TOD City and Sustainable Urban Transport Action Plan, covering all sectors identifying carbon-reductions in energy, transport, industry, residential, commercial, utilities sectors, information communications technology sector, and develop specific programs for Yanji that promote low-carbon lifestyles (in coordination with CS6 on healthy lifestyles); (ii) carry out a traffic impact assessment and evaluation especially of BRT and along its corridor and covering the center city transport impact and propose recommendations for the BRT alignment and station design, intersection design and traffic signaling etc.; (iii) develop a traffic model, define the survey and data collection inputs required for baseline data and manage and monitor carrying out of the survey as required for the model and build the model based on the inputs and calibrate develop a preliminary operational plan and develop a detailed operational during the construction phase, and after commencement of operation revise the model and propose operational optimizations and refinements; (iv) prepare a parking management study and parking plan for the area along the BRT corridor and the inner-city area and integrate parking improvement recommendations, facilities and enforcement proposals with the BRT system and station planning and design. Identify possibilities of introducing smart parking meters; (v) support BRT operation capacity development, and carry out BRT network planning in preparation of the currently planned lines 2 and 3 including technical feasibility planning and support to identification of financing sources including from private sector and assessing possibility of further ADB support i.e., through ADB East Asia’s non-sovereign operations, or ADB’s private sector operations department, or ADB’s office for public-private partnerships; (vi) compare ITS functionalities and digital technologies used/proposed to be used in Yanji Project with next generation ITS in advanced countries, and develop a plan

to implement the improvements, along with costs and benefits and develop a next generation ITS roadmap; (vii) carefully review preliminary and detailed engineering designs and cost estimates of the local engineering design firm to ensure and respond to and address issues arising during project implementation; (viii) carry out a survey for detailed project baseline demand and passenger perceptions as well as perceptions of pedestrians, bike/e-bike users and car drivers in the BRT corridor and carry out surveys during and after project implementation as basis for an impact analysis produced; (ix) analyze all major intersections along the proposed BRT corridor to assess BRT and mixed traffic impacts of proposed configurations, and to analyze the delays and intersection performance of different options being considered and liaise regularly with the traffic police to ensure that best practice approaches to intersections are recommended; (x) prepare a Pedestrian and Bicycle, Universal Design Masterplan for Yanji city also in coordination with CS6 on healthy city and age-friendly city design and integrate pedestrian and bicycle networks and facilities and parking improvements planning with the BRT system and station planning and design; (xi) review preliminary and detailed engineering design and ensure that project implementation is in accordance with the FSR design principles and in line with international best practices; (xii) carry out training needs assessment and prepare capacity development plan including domestic and international study tours to best practices; (xiii) prepare training material and provide training in the form of workshops, study tours and on-the-job training for local government officials and stakeholders; (xiv) prepare and carry out stakeholder consultations and public awareness raising campaigns on low-carbon city planning and low-carbon lifestyles, traffic impact assessment, parking management, traffic management and safety, public transport and BRT planning, nonmotorized transport planning, universal design and others as needed; (xv) carry out required surveys for the preparation of the above listed plans; and (xvi) prepare knowledge product(s) and organize and/or support organization and/or contribute to knowledge sharing events to share lessons from demonstration, pilot and best practice project experience with other cities in the PRC and across the Asia and Pacific region.

111. Required experts to carry out the tasks are as summarized in Table 32.

Table 32: Summary of Consultant Inputs for CS4 (tentative) International National Area of Expertisea (person-months) (person-months) 1 Sustainable Urban transport and BRT Planning and 4 12 Management Specialists (team leader/deputy team leader) 2 Low Carbon Development Planning and Implementation 2 8 Specialist 3 Pedestrian and Bicycle Universal Design Planning 2 8 Specialists 4 Transport Modeling and Survey Specialists 2 10 5 Traffic Management Specialist 8 6 Parking Management Specialist 6 7 Road and Traffic Safety Specialist 5 8 Intelligent Transport Specialists 2 3 9 Local GIS Specialist and Project Coordinator 40

International National Area of Expertisea (person-months) (person-months) 10 Public Awareness Campaign Specialist 5 Total person-months 12 105 BRT = bus rapid transit, GIS = geographic information system. a In addition some specialists will be engaged as resource persons to carry out specific training programs and events. Source: Asian Development Bank estimates.

112. Cost Estimate of the Consulting Services Package CS4.The costs for the consulting services are estimated as follows.

Table 33: Cost Estimates for Contract Package CS4 ($'000 equivalent) Item Amount Financed by the ADB loan 1. Consultants a. Remuneration and per diem i. International consultants 210 ii. National consultants 680 b. International and local travel 60 c. Reports and communicationsa 20 2. Workshops, training, seminars, and conferences 30 3. Surveys 70 4. Miscellaneous administration and support costs 10 5. Contingencies 120 Total 1,200 Note: Not included in the calculation is the counterpart funding from local governments to be provided in-kind including office space with desks and chairs, local transport in project cities for project meetings and site visits; qualified fulltime counterpart personnel in the PMO to work with the consultants; and access to all data, including documents, reports, accounts, drawings and maps, and permissions. a Includes communications facilities, printing and binding of reports, and translation. Source: Asian Development Bank estimates. 113. Reporting requirements for the consulting services package CS4 are as follows.

Table 34: Reporting Requirements for CS4 Category Schedule Target Audiences Inception report Within 1 month after PMO issues the PMO, IAs, ADB notice to proceed of Consulting service Semiannual consolidated progress During implementation period, PMO, IAs, ADB reports semiannual (end of Jan and Jul) Midterm review report Midterm review preparation report PMO, IAs, ADB Project completion report 1 month before ADB PCR mission PMO, IAs, ADB Semiannual environment monitoring Annual (end of Jan) PMO, IAs, ADB reports Draft training and study tour plana End of the first year PMO, IAs, ADB Reports for each capacity development Inception reports for each plan 2 PMO, IAs, ADB activity: months after each activity starts and Low-Carbon TOD City and Sustainable no later than one year after Urban Transport Action Plan commencement of the work, interim Traffic impact assessment and reports, draft final reports and final evaluation reports 2 months after completion of Parking management study and parking each activity plan for the area along the BRT corridor and the inner city area. BRT operation capacity development, and carry out BRT network planning Pedestrian and Bicycle, Universal Design Masterplan for Yanji City All training materials After each lecture/workshop PMO, IAs, ADB All public education materials After preparation PMO, IAs, ADB ADB = Asian Development Bank, IA = implementing agency, PMO = project management office, PCR = project completion report, TOD = transit-oriented development. a International study tours must comply with the People’s Republic of China regulations and guidelines. Source: ADB.

114. Reports or other consulting service packages under the project must be prepared in both English and Chinese language. The PMOs will decide on the number of copies of reports to be provided by the consultants to the PMOs and will distribute reports to relevant PIUs and local government agencies and an electronic copy of all reports in English language will be submitted to ADB.

5. CS5: Consulting services for urban climate change adaptation and sponge city action plan preparation including hydraulic modeling and simulation and Open Space Masterplanning (4 individuals; 1 international urban climate change adaptation specialist, 1 international climate change hydrologist and sponge city specialist, 1 national sponge city infrastructure and open space planning specialist, 1 national/local geographic information system (GIS) specialist/hydrologist)

115. Scope of work. The consultant team comprising of international and national experts will carry out but will not be limited by the following tasks: (i) prepare Urban Climate Change Adaptation and Sponge City Action Plan; (ii) complete climate risk and adaptation options assessment for those parts of the city not yet included during the preparation of the project, i.e. south of the Buer Hatong River; (iii) carry out detailed hydraulic modeling and simulation for the whole of Yanji city building on the model prepared by the TRTA consultants including digital elevation mapping, drainage pipe network modeling, surface runoff and infiltration information and precipitation and storm event information;

(iv) prepare a Sponge City Masterplan for Yanji City and integrate with the one prepared for the norther part of the city during the preparation of the project; (v) prepare an overall Open Space Masterplan for Yanji City integrating with Sponge City Masterplan and integrating with public space needs and ecosystems services masterplan; (vi) continue and maintain a geographic information system (GIS) data base as developed by the consultants during the preparation of the project and provide training to local officials; (vii) carry out training needs assessment and prepare capacity development plan including domestic and international study tours to best practices; (viii) prepare training material and provide training in the form of workshops, study tours and on-the-job training for local government officials and stakeholders; (ix) prepare and carry out stakeholder consultations and public awareness raising campaigns on climate change adaptation risk and adaptation options assessment and urban climate change adaptation action planning, hydrological and hydraulic modeling and GIS application, sponge city green infrastructure planning, open space and ecosystems services planning and others as needed; (x) deliver all data and platforms to Yanji city for their use; (xi) coordinate: Technical support and training by the European Space Agency: Remote Sensing Analytics and Training on Use of Satellite Information for Climate Change Adaptation Planning (provided as grant through the European Space Agency over the course of 3 years; and (xii) prepare knowledge product(s) and organize and/or support organization and/or contribute to knowledge sharing events to share lessons from demonstration, pilot and best practice project experience with other cities in the PRC and across the Asia and Pacific region.

116. Required experts to carry out the tasks are found in Table 35.

Table 35: Summary of Consultant Inputs for contracts under CS5 (tentative) International National Area of Expertise (person-months) (person-months) CS5a International Urban Climate Change Adaptation Specialist 3 CS5b International Climate Change Hydrologist and Sponge 4 City Specialist CS5c National Sponge City Infrastructure and Open Space 10 Planning Specialist CS5d National/local GIS Specialist/Hydrologist 10 Total person-months 7 20 Source: Asian Development Bank estimates.

117. Cost Estimate of the Consulting Services Package Bundle CS5.The costs for the consulting services are estimated as follows.

Table 36: Cost Estimates for Contracts under CS5 ($'000 equivalent) Item Amount Financed by the ADB loan 1. Consultants a. Remuneration and per diem i. International consultants 115 ii. National consultants 130 b. International and local travel 30 c. Reports and communicationsa 5 3. Miscellaneous administration and support costs 5 4. Contingencies 15 Total 300 ADB = Asian Development Bank. Note: Not included in the calculation is the counterpart funding from local governments to be provided in-kind including office space with desks and chairs, local transport in project cities for project meetings and site visits; qualified fulltime counterpart personnel in the PMO to work with the consultants; and access to all data, including documents, reports, accounts, drawings and maps, and permissions. a Includes printing and binding of reports, and translation. Source: ADB estimates.

6. CS6: Consulting services for healthy and age-friendly city masterplan and monitoring program development (4 individuals: 1 international public health specialist, 1 national public health specialist, 1 national urban planner and universal design specialist, 1 national communication and public awareness campaign specialist)

118. Scope of work. The consultant team comprising of international and national experts will carry out but will not be limited by the following tasks: (i) prepare Healthy and Age-Friendly City Masterplan and Monitoring Framework in close collaboration with Yanji City officials, particularly the Yanji City Health Bureau contributing to Healthy China 2030; (ii) work closely with the Yanji City Health Bureau to develop needs assessments and capacity-building medium and long-term plans for Healthy and Age-Friendly City initiatives based on the needs of Yanji city and in line with the Jilin Provincial Health Plan and the Healthy China 2030 Plan; (iii) public Health Monitoring and Management Program Development; (iv) contribute data to the GIS data base as developed by the consultants for the transport, drainage, water supply and sponge city green infrastructure planning components during the preparation of the project; (v) ensure inclusion of world-class standards in Healthy and Age Friendly City planning and management, including inclusion of ICT, internet of things, participatory approaches, intersectoral collaboration and others as needed; (vi) develop a standardized monitoring framework to assist city officials track progress of Healthy City initiatives making us of existing monitoring and review processes; (vii) ensure implementation of universal design principles and healthy environments in the infrastructure planning components of the project; (viii) identify and define synergies with the loan project components and ensure that the investment optimizes health benefits in close collaboration with the project executing and implementing agencies, and PMO; (ix) carry out training needs assessment and prepare capacity development plan including domestic and international study tours to best practices;

(x) prepare training material and provide training in the form of workshops, study tours and on-the-job training for local government officials and stakeholders; (xi) prepare and carry out stakeholder consultations and public awareness raising campaigns on public health management, healthy city and universal design, healthy lifestyles and others as needed; (xii) coordinate with and inform government of ADB healthy city pilot program support and training; (xiii) prepare reports in English and Chinese languages; and (xiv) prepare knowledge product(s) and organize and/or support organization and/or contribute to knowledge sharing events to share lessons from demonstration, pilot and best practice project experience with other cities in the PRC and across the Asia and Pacific region.

119. Required experts to carry out the tasks are as follows found in Table 37.

Table 37: Summary of Consultant Inputs for contracts under CS6 (tentative) International National Area of Expertise (person-months) (person-months) CS6a International Public Health Specialist 4 CS6b National Public Health Specialist 12 CS6c National Urban Planner and Universal Design Specialist 10 CS6d National Health Communication and Public Health 5 Awareness Campaign Specialist Total person-months 4 25 Source: Asian Development Bank estimates.

120. Qualification. The international/national public health specialist will have a post-graduate degree in health, urban development or related field with a demonstrated knowledge in developing health programs for cities. S/he will have at least 10 years of experience in health and urban program planning internationally, preferably with experience in the PRC. S/he is proficient in written and spoken English and have experience on health and urban development projects funded by national/international agencies. The national communication and public awareness specialist will have at least 5 years of experience in developing public health and safety and behavioral change campaigns at the provincial and city level in the PRC, with demonstrated experience in urban public health campaigns especially those related to reducing non- communicable diseases (heart disease, diabetes, stroke, etc.). International experience is an asset.

121. Cost Estimate of the Consulting Services Package Bundle CS6. The costs for the consulting services are estimated in Table 38.

Table 38: Cost Estimates for Contracts under CS6 ($'000 equivalent) Item Amount Financed by the ADB loan 1. Consultants a. Remuneration and per diem i. International consultants 70 ii. National consultants 150 b. International and local travel 25 c. Reports and communicationsa 5 2. Surveys 15 3. Miscellaneous administration and support costs 5 4. Contingencies 30 Total 300 ADB = Asian Development Bank. Note: Not included in the calculation is the counterpart funding from local governments to be provided in-kind including office space with desks and chairs, local transport in project cities for project meetings and site visits; qualified fulltime counterpart personnel in the PMO to work with the consultants; and access to all data, including documents, reports, accounts, drawings and maps, and permissions. a Includes printing and binding of reports, and translation. Source: ADB estimates.

7. CS7: Consulting services for nonrevenue water (NRW) reduction and leakage identification, and Water Safety Plan Preparation (national consulting firm, QCBS, 9 national specialists and 55 national person-months)

122. This contract is proposed to be a single service delivery package using ADB’s QCBS (90:10) procedure with an indicative cost estimate of $450,000 equivalent. This contract will aid on piloting nonrevenue water (NRW) reduction, district management areas (DMA), and pressure management schemes in Yanji, and the preparation of a Water Safety Plan following the guidelines for preparation of such plans developed jointly by ADB and the World Health Organization.

123. The scope of work for the consultant team of specialists for the NRW reduction portion will include but not be limited by the following tasks: (i) design an NRW reduction scheme, control plan and a workplan including identification of leakage; (ii) support identification of leakages; (iii) provide recommendations for an organizational structure to institutionalize NRW management; (iv) review existing data and format of water supply system; (v) establish hydraulic model for the water supply system and enter data in GIS to be given to the government after completion of the contract; (vi) pilot DMA management and pressure management schemes; (vii) provide reports on DMA management and pressure management and recommendations for improvements; (viii) review water supply network status and providing suggestions on system optimization to ensure stable operation; (ix) provide guidance on development and management of water system emergency response plan; (x) optimize the pilot operation during implementation; (xi) draw lessons learned and developing a comprehensive report including an executive summary including a recommended NRW control plan; (xii) develop an NRW control plan for the water supply system;

(xiii) carry out training on modelling, software application, dispatching and operation, DMA management, pressure management; and (xiv) prepare knowledge product(s) and organize and/or support organization and/or contribute to knowledge sharing events to share lessons from demonstration, pilot and best practice project experience with other cities in the PRC and across the Asia and Pacific region.

124. The scope of work for the consultant for the water safety plan preparation will be led by a professional water safety plan specialist who will be part of the team and have relevant qualifications and have a minimum of 7 years of relevant specific work experience in the field of drinking water quality and water safety planning (WSP). She/He among others will lead the development of a water safety plan following ADB/WHO guidelines and select relevant water supply components and organize inception workshops on the WSP. The consultant will establish a WSP team with relevant stakeholders; hold training workshops on the preparation of WSP; conduct initial system assessment for each water supply component; hold workshops to draft WSPs as a result of the initial system assessments; assess institutional capacity development and infrastructure improvement needs under the selected project components. She/He will support the ADB project preparation in Yanji and neighboring (upstream in watershed of drinking water supply catchment areas) to incorporate the WSPs into the project design; perform capacity development trainings for leaders to comprehend the principles of water safety, risk assessment and water safety preparation; and prepare a draft final report and a final report. Detailed tasks will include but not be limited by the following: (i) discuss with the Yanji city government, and neighboring concerned (upstream) counties/towns governments and ADB to assemble a WSP team comprising: (a) engineers of the consulting firm team, (b) representatives from selected local water utilities, including engineers and staff responsible for water quality, (c) representatives of the city and upstream counties/towns government agencies responsible for standards and regulation of drinking water quality and supervision of the water utility entities, (d) representatives of government agencies responsible for urban infrastructure investment policy and catchment management; (ii) discuss with the stakeholders: (a) the concept of WSPs, their benefits and importance, and how they are developed and implemented into the local context, (b) the existing water supply system and drinking water quality control measures, (c) the existing situation with respect to water safety, (d) the apparent actions required for the improvement of water safety either by the water utility or others; (iii) lead initial system assessments of the selected water supply systems; project. This will include a high-level description of the existing and proposed water supply systems, identifying flow charts which show sources, control points and receptors. The basic elements for describing the water supply system should cover the whole system from the source (catchment) to the point of consumption (consumers); it should document the inputs and outputs even if they do not operate all the time. The flow diagram should be taken on site to check its accuracy and local knowledge; (iv) conduct a workshop to undertake high-level risk assessment for preparation of a draft WSP through initial system assessment. They should identify (a) the sources of risk to water safety in the region including potential upstream pollution by villages, towns, industries and farmers, (b) potential biological, physical and chemical hazards to water safety along the system, (c) the current control measures for those risks, (d) residual risks which are not controlled, (e) the required action for improvements, (f) the indicators by which drinking water safety improvements will be measured, (g) the level and institutional responsibilities of

ensuring mid- and long-term WSP implementation, and (h) the cost implications of any of the recommendations proposed. Reference should be made to existing literature, particularly the WHO and International Water Association Manual on Water Safety Plans; (v) ensure that the WSP will identify the needs for institutional capacity and infrastructure improvements in order to improve water safety; (vi) incorporate the findings of the system assessment and WSP suggestions and recommendations into a WSP; (vii) provide recommendations of indicators by which the success of the WSP implementation by the city can be measured in terms of (a) update of the WSP and (b) beneficial outcomes of improved water safety; and (viii) prepare knowledge product(s) and organize and/or support organization and/or contribute to knowledge sharing events to share lessons from demonstration, pilot and best practice project experience with other cities in the PRC and across the Asia and Pacific region.

125. The estimated inputs of specialists are shown in Table 39.

Table 39: Summary of Consultant Input for CS7 National Area of Expertise (person-months) 1. Project manager 8 2. NRW control specialist 12 3. GIS application specialist 5 4. Modelling specialist 5 5. Water supply system optimization specialist 5 6. DMA specialist 3 7. Pressure management specialist 3 8. Water supply system dispatching and operation specialist 4 9. Water Safety Plan Specialist 10 Total person-months 55 DMA = district metering areas, GIS = geographic information system, NRW = nonrevenue water. Source: Asian Development Bank estimates.

126. Reporting requirements. All reports required for the consulting service package CS7 under the project must be prepared in both English and Chinese language. The PMO will decide on the number of copies of reports to be provided by the consultants to the PMO and will distribute reports to relevant PIUs and local government agencies and an electronic copy of all reports in English language will be submitted to ADB.

Table 40: Reporting Requirements for CS7 Category Schedule Target Audiences Inception report Within 1 month after PMO issues the PMO, IAs, ADB notice to proceed of Consulting service Semiannual consolidated progress During implementation period, PMO, IAs, ADB reports semiannual (end of Jan and Jul) Midterm review report Midterm review preparation report PMO, IAs, ADB Project completion report 1 month before ADB PCR mission PMO, IAs, ADB Semiannual environment monitoring semiannual (end of Jan) PMO, IAs, ADB reports Draft training and study tour plan (in End of the first year PMO, IAs, ADB coordination with CS1 consultants) and coordination plan with utility twinning programa Reports for each capacity development Inception reports for each plan 2 PMO, IAs, ADB activity: NRW reduction and months after each activity starts and management program and Water no later than one year after Safety Plan preparation commencement of the work, interim reports, draft final reports and final reports 2 months after completion of each activity All training materials After each lecture/workshop PMO, IAs, ADB All public education materials After preparation PMO, IAs, ADB ADB = Asian Development Bank, IA = implementing agency, PCR = project completion report, PMO = project management office. a International study tours must comply with PRC regulations and guidelines. Source: ADB.

127. Cost estimates or contract package CS7 are in Table 41.

Table 41: Cost Estimates for Contract Package CS7 ($'000 equivalent) Item Amount 1. Consultants a. Remuneration and per diem National consultants 360 b. Local travel 40 2. Contingencies 50 Total 450 Source: Asian Development Bank estimates.

VII. SAFEGUARDS

A. Environment

128. The Project is classified as Category B for environment on the basis of ADB’s Rapid Environment Assessment. An initial environmental examination (IEE), including environmental management plan (EMP) was prepared in accordance with ADB’s Safeguard Policy Statement (SPS, 2009) on the basis of three domestic environmental impact assessment reports (DEIAs), feasibility study report, findings of site survey and technical due diligence and studies by ADB. The IEE and EMP will be disclosed on the project website of ADB as endorsed by YCG. The domestic EIAs is expected to be approved by Yanji Environmental Protection Bureau by May 2019. The project will improve public transport services by introducing a BRT system along the main corridor of the city and improve nonmotorized transport, pedestrian facilities and traffic management measures along the BRT corridor to provide safe and convenient accessibility to public transport. The sponge city green infrastructure and drainage pipe improvements and Chaoyang river rehabilitation will reduce waterlogging and flood risk. Enhancement of the water supply system will reduce nonrevenue water. The coverage of wastewater network will be increased to improve water quality of Buer Hatong River and Yanji River.

B. Involuntary Resettlement

129. The project is categorized as B for involuntary resettlement. The project will permanently acquire 50.68 mu of land, including 28.64 mu village collective cultivated land, 3.23 mu of an 29 unused village owned fish pond, and 18.81 mu village collective unused land.27F Structure demolition impacts will be limited to 200 square meters of an abandoned brick-wood non- residential structure, belonging to the village collective of Yilan town. The project will affect 80 households with 268 persons, and will not involve demolition of houses, shops, enterprises, and institutions. Agriculture is not the source of livelihood of affected persons losing collective cultivated lands, and the impacts on household incomes is less than 5% for all the 80 affected households. A draft resettlement plan has been prepared following the laws and regulations of PRC as well as Jilin Province and Yanji city, and SPS. The local government will be responsible for compensation and provision of support and assistance prior to land acquisition and relocation activities. Due diligence of land acquisition and compensation confirmed that there are no past or present concerns related to impacts on involuntary resettlement for an area of the BRT corridor where land acquisition was completed by the YCG in 2018. During implementation, training on ADB’s involuntary resettlement policy and procedures will be provided to the project management office and resettlement management staff. An external agency will be engaged for semiannual external monitoring and evaluation.

130. YCG will ensure that (i) the resettlement plan agreed between YCG and ADB is updated based on detailed design and submitted to ADB for review and concurrence prior to land acquisition and relocation activities and implemented in accordance with applicable Government laws and regulations and SPS; in case of any inconsistency between Government laws and ADB’s policy, the latter will prevail; (ii) all affected persons are given adequate opportunity to participate in resettlement planning, updating, and implementation; (iii) counterpart funds for land acquisition and resettlement activities are provided according to the budget and project schedule; (iv) any additional costs in excess of the resettlement plan budget estimates are met within the project schedule; (v) PMO and the implementing agencies will designate adequate staff and resources to supervise and monitor updating and implementation of the resettlement plan and submit semi-

29 A mu is a Chinese unit of measurement (1 mu = 666.67 square meters).

annual internal monitoring reports to ADB; (vii) the grievance redress mechanism (GRM) established is effective and functional; and (viii) the PMO engages an external monitor acceptable to ADB to verify implementation and carry out its own monitoring evaluation of resettlement activities on a semi-annual basis.

131. The project implementing agencies shall not hand over a specific section of a contract to the civil works contractor until: (i) payment of compensation has been fully disbursed to the affected people and rehabilitation measures are in place for that specific section as per the agreed resettlement plan; (ii) affected people who were compensated for that specific section have vacated the site; and (iii) the specific section of the subproject is free from any encumbrances.

C. Indigenous Peoples

132. The project is categorized as C for indigenous peoples. In the project areas of six subdistricts and three towns, there are totally 308,902 ethnic minority people, accounting for 52.4% of total populations, among which 97.4% are Korean minorities. The poverty and social analysis have identified that ethnic Koreans are socially and economy not vulnerable. The project will be implemented mostly in the urban areas, where all the minority groups are well integrated with the Han population and have no distinguished characters. All the ethnic minorities will equally benefit from the project, and no adverse impacts is expected.

133. Health Impact Assessment. A rapid HIA of the project was carried out according to ADB’s framework (footnote 14). Cardiovascular diseases, hypertension, and diabetes are currently prevalent health burdens in Yanji, as well as injuries and casualties from traffic accidents. During consultations, residents’ concerns were lack of open and green spaces, poor pavements, and sidewalks with parked cars causing lack of opportunities for physical activity. The HIA confirmed that the project addresses key health concerns of residents and its contribution to improved public health. The BRT, NMT, and sponge city facilities will enable more physical exercise and walking, including for vulnerable groups, as they will provide a safer and more attractive environment for pedestrians and cyclists. The project will reduce traffic accidents and exposure to air and water pollution. Sponge city green infrastructure will provide attractive open space for exercise and improved livability, improved microclimate, and reduced risk of flooding. Capacity building to prepare a healthy city masterplan under output 4 will contribute to making Yanji a pilot healthy and age-friendly city with broad positive impacts.

134. Prohibited investment activities. Pursuant to the SPS, ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the SPS.

VIII. GENDER AND SOCIAL DIMENSIONS

135. Poverty and social analysis. A poverty and social analysis (PSA) was undertaken during the project preparation phase in accordance with ADB guidelines on gender and social dimensions. The PSA included a review of secondary data, a household survey, focus group discussions and key informant interviews. The PSA assisted in the design of the various subprojects to ensure they are socially inclusive and implemented with a high degree of community participation, especially for the local people including women, ethnic minorities, poor and other vulnerable persons in the project areas.

136. The project will contribute to environmentally sustainable, climate-resilience, low-carbon, socially inclusive, and green urban and economic development of Yanji city. The project will bring

direct impacts to beneficiaries on: (i) improved urban mobility by BRT and NMT systems; (ii) road safety by improved traffic management; (iii) environment improvement and improved health condition brought by flood control, sponge city development, water supply and wastewater management; (iv) 1,683 newly created job positions during project implementation, including 508 management and technical, and 1,175 unskilled positions. The project design and investment directly respond to issues raised by the poverty and social assessment by gender and disabled- sensitive designs, especially in bus transport and NMT systems. The project would further enhance social inclusiveness through improved public facilities in Yanji, and the resultant eco- environment and attractive tourism provisions will bring indirect impacts on all Yanji people as well as tourists. To ensure the positive benefits of project components, public awareness and education program has been designed and included in the social and gender action plan 30 (SGAP),28F and will be conducted during the course of the project supported by the loan implementation consulting services. These programs will particularly address the needs and risks for vulnerable groups such as women and the poor on public transport, environment and health improvement. Social and gender indicators will be included in the project performance management system, and appropriate consultant inputs for implementation and monitoring SGAP are included in the supervision consultant package. The SGAP will be implemented, progress will be monitored, and achievement of results will be measured and reported semi-annually. The following sections provide some further guidance for the implementing agencies.

137. Summary poverty reduction and social strategy. The summary poverty reduction and 31 social strategy (SPRSS) report29F (linked report and recommendation of the President (RRP) 32 document) describes how each action required under the project gender,30F consultation and participation, labor, HIV/AIDs, and other social risks will be implemented.

138. The project benefits all of Yanji city except one township. In 2018, the project population in six subdistricts and three towns of Yanji is 0.59 million, of which 0.48 million or 81.36% are urban inhabitants, 0.11 million or 18.64% are rural inhabitants, 0.30 million or 50.85% are females, and 0.31 million or 52.54% are ethnic minorities. According to the poverty and social analysis, the main causes of poverty include (i) unemployment and underemployment due to insufficient new job opportunities created by unbalanced and inadequate industrial and agricultural development in Yanji; and (ii) lack of qualified labor force due to the low education level, physical disability, and long-time illness. A total of 13,137 poor and low-income persons living in the project areas will benefit from the project.

139. The project will directly benefit 0.59 million inhabitants (96.5% of Yanji’s population) in 9 subdistricts/towns, including 0.30 million female residents (50.9%), 0.48 million urban residents (81.4%), 0.11 million rural residents (18.6%), 0.013 million (2.2%) poor people, and about 0.31 million ethnic minority people (52.5%), will directly benefit from improved urban mobility, climate- resilient ecosystem-based flood risk management and sponge city infrastructure development, improved water supply and wastewater management systems, as well as improved health and sanitary conditions, living environment and employment opportunities in the project areas.

30 The Social and Gender Action Plan is Table 42. 31 ADB's Handbook on Social Analysis: A Working Document.https://www.adb.org/sites/default/files/institutional- document/33763/files/handbook-poverty-social-analysis.pdf. 32 Briefing Note: Project Gender Action Plans.https://www.adb.org/sites/default/files/publication/29008/gender-briefing- note.pdf; and Updated Gender Mainstreaming Categories of ADB Projects. https://www.adb.org/sites/default/files/institutional-document/33623/files/guidelines-gender-mainstreaming- categories-adb-projects.pdf.

140. The project will benefit about 0.59 million people through improved (i) urban mobility with BRT and NMT systems; (ii) road safety through traffic management; (iii) public health, environment, pollution (water, air, and noise), flood risk, sponge city greening, and water supply and wastewater management; and (iv) employment, with about 1,683 new jobs during project implementation, comprising about 508 management and technically skilled positions and about 1,175 unskilled positions. The project directly responds to issues raised by the poverty and social assessment through designs that are sensitive to issues of gender and disabled people, especially in the BRT and NMT systems. The project will further enhance social inclusiveness, with improved public facilities and environment benefitting all Yanji residents and tourists.

141. Key design features include (i) targeted employment for women and poor people; and (iii) strengthening public participation and consultation in decision-making related to project designs, and public hearings for bus fare and water and wastewater service charges; (iii) gender and disable sensitive designs such as wheelchair accessible ramp, alarm button for female staff in BRT stations; (iv) road safety training and environment awareness campaigns for students and training to the safety and environment focal persons of schools; (v) accessible sports facilities for children and elderly-friend activity space and open green recreation spaces, which will enhance the health condition of residents.

142. Social and Gender benefits. The project is categorized as effective gender mainstreaming. The project will have significant benefits for women as they are primarily burdened with household and family responsibilities such as water collection and conservation, wastewater and solid waste disposal and management, as well as related household activities. According to the poverty and social analysis, women also use the public transport more often than men. Therefore, they considered improvements in traffic safety and access to better public transport service, water supply and wastewater collection, urban environment, and health condition as important benefits to enhance their quality of life. Majority of female respondents support the project as it will generate more job opportunities locally for themselves and for family members, and benefit by public hearings and relevant public awareness activities will strengthen their capability in effective project implementation and sustainable development. The SGAP has been prepared, which will help to ensure women’s participation in economic, social and decision- making activities related to the project, including: (i) provide job opportunities during construction (20%) and operation (30%); (ii) ensure gender-responsive physical design features in the project design; (iii) awareness raising on environmental protection, roads safety, river protection and flood risk management through public education program (50%); (iv) support women’s equitable participation in all project-related public consultations (50%); and (v) appropriate gender targets, indicators and sex-disaggregated data for project monitoring and evaluation. It is agreed that a national social development specialist with gender expertise will be hired under the capacity development component to ensure the effective implementation of the SGAP. An assurance for implementation of the SGAP has been included. SGAP will be monitored by an external agency twice a year. Activities and target indicators included in the SGAP will be monitored also through the project performance management system and project progress reports on a semi-annual bases, and ADB supervision missions. 2 person-months international and 12 person-months national social and gender specialists inputs are included in the loan implementation consultant package.

143. To address the risk of spread of HIV/AIDS/STI, the project requires (i) inclusion of clauses on HIV/AIDS/STI and other communicable disease awareness for the contractors/subcontractors and employees into contract bidding documents; (ii) conduct of public health and HIV/AIDS prevention education to the civil works contractors; (iii) establishment of health measures for construction workers (e.g., setting up a temporary infirmary, using local medical resources); and

(iv) conduct of diverse publicity activities on HIV/ AIDS (e.g., brochures, posters and picture albums).

144. Other social aspects. As per the loan assurances, construction workers hired from the local communities will be trained on sanitation knowledge campaigns, health and occupational safety measures while working at the construction sites, and capacity building will be undertaken to protect their legal labor rights during construction or operations.

145. Labor issues. Core labor standards will be complied with based on national laws. Civil works contracts will stipulate priorities to (i) employ local people for works, (ii) ensure equal opportunities for women and men, (iii) pay equal wages for work of equal value, (iv) pay women’s wages directly to them, and (v) not employ children or forced labor. Specific targets for employment have been included in the SGAP. The project executing and implementing agencies are responsible for coordinating activities and ensures the implementation of the SGAP. The executing agency will monitor contractors’ compliance with these project assurances in conjunction with the Human Resources and Social Security Bureau, and Civil Affairs Bureau. The executing agency shall assign or appoint one social/gender development staff during project implementation to ensure timely and appropriate implementation of the SGAP. The social and gender specialist of the project implementation consultant will assist the coordinator in executing agency and social and gender development staff.

Table 42: Social and Gender Action Plan

Responsible Proposed Actions Indicators and Targets Agencies Timeline Budget Output 1: Low-carbon bus rapid transit line integrated with non-motorized transport infrastructure constructed Bus Rapid Transit Pilot Demonstration Line (i) Ensure universal design, gender, age (i) Number and type of gender, age, and (i) PMO and 2020–2024 (i) Project cost and disability-sensitive BRT as well as disability-sensitive design features implementing (ii) Bus company safe BRT stations for all (wheelchair accessible ramp, priority agencies operational (ii) Capacity building campaigns for staff, seating for pregnant women, elderly, (ii) Design institutes costs including bus drivers working for BRT, disabled and children and lighting in (iii) CTG, SMO and (iii) Local on road safety and safe driving, BRT stations, heated spaces for neighborhood government’s station operation management, first commuters in cold weather); committee cost for aid in emergency situations etc. (ii) Number and percentage of bus company (iv) Price Bureau hearing (iii) Community consultations on bus staff participating in the capacity-building, (v) CAB, ERAB needs and designs on BRT lines and with at least 50% women; (2019 facilities, including BRT station baseline: 24.7%); locations, facilities, etc. (iii) Number and percentage of participants (iv) Public hearings and public for consultations and public hearings by consultations on transportation tariffs sex, age and poverty, with at least 20% and subsidies poor, 20% elderly and 50% women; (v) Information and public awareness (iv) Number, type and coverage campaign on benefits of the BRT use. (disaggregated by sex, age and poverty) (vi) Job opportunities during the project of awareness campaign on the BRT use; implementation with prior training (v) At least 880 jobs created during project opportunities. implementation, and 350 jobs created during operation, with at least 20% local poor and at least 20% women during implementation (of which 25% skilled and managerial) and 30% women during operation (of which 25% skilled and managerial); (2017 baseline: 17% poor, and 11.42% women in construction, and 25% women in operation) Improvement of the NMT Network and Pedestrian Environment (i) Ensure universal design, gender, (i) Pedestrian links to BRT stations (i) Education Bureau 2020–2024 (i) Project age, and disability-sensitive NMT including safe crossings and routes to (ii) Education Bureau, management road infrastructure and facilities. schools and hospitals following universal (iii) PMO and and capacity (ii) Community consultation on bicycle design principles, and with lighting to implementing development lanes, sidewalks, crosswalks, traffic ensure safety for women provided (2017 agencies such as budget signals, and isolation facilities on baseline: 0) Yanji City Transport (ii) Traffic dangerous segments to identify the (ii) Number and percentage of Bureau Police’s needs of beneficiaries. participants disaggregated by sex (iv) ACWF, ERAB administrative (iii) Traffic safety awareness and and age, with at least 50% elders and (v) SHB cost for traffic education campaign for schools 20% women; (2017 baseline：0); safety

Responsible Proposed Actions Indicators and Targets Agencies Timeline Budget along the BRT corridor in (iii) Number of training sessions in awareness cooperation with safety-related schools including both Han and training responsible persons in schools (such Korean schools, with student as safety director, director of participants disaggregated by sex administration, etc.) and ethnicity. (at least 50% are girls (iv) Training on trainers for the safety- and 20% ethnic minority students; related responsible persons at 2017 baseline: 48% of female and schools along BRT corridor (such as 14% of ethnic minority students) vice principals, director of (iv) At least 12 (one for each schools) of administration, director of communist trainers reported improved youth league, head teachers and knowledge in traffic safety; (at least instructors, etc.), on traffic safety 75% are women, 50% are ethnic awareness to improve their minorities; 2017 baselines are 75% knowledge and skills to educate female and 41% ethnic minorities) students. Traffic Management, Road Safety, and Intelligent Transport System (i) Public consultation to identify the (i) Number and percentage of participants (i) Implementing 2020–2024 (i) Project residents’ needs on traffic disaggregated by sex and age with at agencies (Yanji management infrastructure and facilities, especially least 50% elders and 20% women; (2017 City Traffic Police budget for safety issue in intersections such baseline:0) and CTG) (ii) Traffic as crosswalk in intersections with (ii) Type and number of traffic safety (ii) SMO and Police’s reasonable signal phases, speed programs for the residents and students; neighborhood administrative bumps or other speed reduction (iii) Number and percentage of residents committee cost facilities near the school areas, and and students disaggregated by sex, age, (iii) ACWF, ERAB car parking facilities; and ethnicity. (At least 50% female (ii) Traffic safety programs for residents residents and students; 20% elderly and school students people and 50% minority residents and 20% minority students; 2017 baseline: 0 for residents, and 48% for female and 14% minority students) Output 2: Climate-resilient flood risk management and sponge city green infrastructure constructed (i) Public consultation on locations for (i) Number and percentage of participants (i) Implementing 2020–2024 (i) Project safety warnings, well-lit bicycle and disaggregated by sex, age, and ethnicity, agencies (YWGC, management pedestrian paths, children and elderly- targeting at more than 50% female, 50% YHCB) budget friend activity space including sports elderly, 30% youth and 50% ethnic (ii) Education Bureau, (ii) Operational spaces and children’s play facilities minorities. (2017 Baseline: 0); ACWF, ERAB cost of Water used for free, isolation facilities along (ii) Number and percentage of community (iii) CTG, SMO and NC Resource the rivers; residents disaggregated by sex and (iv)SHB Bureau (ii) Public awareness on environment, ethnicity, with at least 50 % female and wetland and river protection, flood risk 50% minorities (2017 Baseline: 0); and public health for communities and (iii) At least 12 (one for each schools) of schools; trainers reported improved

Responsible Proposed Actions Indicators and Targets Agencies Timeline Budget (iii) Training for the health-related knowledge in environment protection, responsible persons at schools on water conservation, and public awareness of environment protection, health. (at least 75% are women, water conservation, and public health to 50% are ethnic minorities- 2017 improve their knowledge to educate baselines：75% females and 41% students; ethnic minorities) (iv) Job opportunities during the project (iv) 320 jobs created during project implementation with prior training implementation, and 120 jobs created opportunities. during operation, with at least 20% poor and 20% women during implementation (of which 25% skilled and managerial) and 30% women during operation (of which 30% skilled and managerial); (2017 baseline: 17% poor, and 11.42% women in construction, and 11% women in operation) Output 3: Water supply system improved (i) Public hearing for water supply and (i) Number and percentage of people (i) Implementing 2020–2024 (i) Project wastewater tariff participating in the hearing with at least agencies YWGC, management (ii) Public awareness activities for residents 20% poor, and 50% women; (2019 CTG budget on water conservation and household baseline is 0) (ii) Price Bureau (ii) Local wastewater recycling, which can be (ii) Number and percentage of residents (iii) SMO and government’s integrated in the activities in water- participating in awareness activities neighborhood cost saving days each year; disaggregated by sex, age, and ethnicity; committee (iii) Training in WAB and YWGC to (2017 baseline is 0) (iv) CAB, SHB, ERAB improve the water-save publicity (iii) Numbers of trainings with staff materials with advanced participants disaggregated by sex and experience and concepts; ethnicity (2017 baseline: 0); (iv) Job opportunities during the project (iv) 483 jobs created during project implementation with prior training implementation, and 30 jobs created opportunities. during operation, with at least 20% poor and 20% women during implementation (of which 25% skilled and managerial) and 30% women during operation (of which 30% skilled and managerial); (2017 baseline: 17% poor, and 11.42% women in construction, and 25% women in operation)

Output 4: Capacity in low-carbon, climate-resilient, healthy city planning and infrastructure management developed

Responsible Proposed Actions Indicators and Targets Agencies Timeline Budget (i) Recruitment of SDG specialist as part (i) One national SDG specialist to be (i) PMO 2020–2024 Project of loan implementation; recruited with 6 person-months input; (ii) Implementing management and (ii) PMO and IAs assign at least one SDG (ii) One SDG focal person in each IAs agencies including capacity specialist to be responsible for the coordinating SGAP activities; traffic police, WAB, development SGAP implementation and reporting; (iii) Sex -disaggregated data are collected EEPB budget (iii) Sex-disaggregated data to be for SGAP monitoring; (iii) CAB, ACWF, ERAB collected through PPMS to ensure the (iv) Action plans and guidelines which are (iv) CTG monitoring, evaluation and reporting of inclusive and gender-sensitive prepared SGAP; on low-carbon TOD, pedestrian and (iv) PMOs and IA staffs to be trained to bicycle network, urban climate change ensure effective project adaptation, city-wide hydraulic model implementation, particularly SGAP; with sponge city green infrastructure, (v) Capacity development for Yanji City open space system, and healthy city, government and its administrative and accepted by Yanji City Government bureaus on comprehensively plan and and shared with other cities in PRC and implement actions to become a low- other DMCs (2019 baseline: 0); carbon and climate-resilient city (v) At least 50 staff (of which 40% women) report improved knowledge on low- carbon city planning and lifestyles, TOD, parking management, BRT advanced operations, urban climate change adaptation and community resilience, sponge city green infrastructure, healthy city, water safety and non-revenue water management (2019 baseline: not applicable)

ACWF= All China Women’s Federation, BRT = bus rapid transit, CAB = Civil Affairs Bureau, CTG = Chaoyangchuan township government, DMC = developing member country, EEPB = Ecology and Environment Protection, Planning Bureau, ERAB = Ethnic and Religious Affairs Bureau, IA = implementing agency, LRB = Land Resource Bureau, NMT = non-motorized transport, PIU = project implementation unit, PMO = project management office, PPMS = project performance management system, SDG = social development and gender, SHB = sanitary and health bureau, SGAP = social and gender action plan, SMO = subdistrict management office, TOD = transit-oriented development, WAB = Water Affairs Bureau, YHCB = Yanji Housing and Construction Bureau, YWGC = Water Supply Company. Source: ADB.

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING, AND COMMUNICATION

A. Project Design and Monitoring Framework

Table 43: Design and Monitoring Framework Impact the Project is Aligned with Inclusive, environmentally sustainable, and competitive development of Yanji city achieved (Yanji City General Urban Master Development Plan)a

Performance Indicators with Targets Data Sources and Results Chain and Baselines Reporting Mechanisms Risks Outcome By 2028: Livability, low-carbon a. Greenhouse gas emissions in Yanji city a. Yanji statistical Change of development, climate from transport sector reduced by yearbook government resilience, and health 60,000 tCO2 per year (2017 baseline: 0) priorities away in Yanji city improved (RFI A) from sustainable b. Mode share of public transport increased b. Yanji city transport urban planning by 8% (2017 baseline: 44%) (RFI B) bureau annual report and management c. Flood risk in urban catchment area of c. Yanji statistical Chaoyang River reduced to 1-in-50 years yearbook, water affairs (2017 baseline: 1-in-20 years) bureau annual report d. Annual conservation of 4.8 million tons d. Water affairs bureau of drinking water achieved (2017 baseline: annual report, Yanji 0) Water Group Company annual report Outputs By 2027: 1. Low-carbon bus 1a. BRT line of about 20 km and at least 1a–i. PMO semiannual Delay in optimal rapid transit line 25 stations constructed and equipped with progress reports BRT system integrated with wheelchair access, alarm buttons for operation and nonmotorized women, priority seating, and safe lighting, effective parking transport especially for women (2019 baseline: 0) management infrastructure (RFI C) because of lack of constructed 1b. Fleet of at least 100 clean-energy BRT capacity of the buses procured and bus terminal building operator and constructed (2019 baseline: 0) (RFI C) limited willingness 1c. At least 30 km of pedestrian links to to enforce parking BRT stations provided, including safe policies crossings and routes to schools and hospitals following universal design principles, and with lighting to ensure safety for women (2019 baseline: 0) (RFI B) 1d. At least five plazas with landscaping and exercise equipment for all ages provided near BRT stations (2019 baseline: 0) (RFI C) 1e. Sidewalk parking removed in at least six locations along the BRT corridor and 100 new parking spaces provided near BRT stations (2019 baseline: 0) (RFI C) 1f. At least 30 km of bicycle lanes along BRT corridor provided, linking to BRT stations and parking facilities at BRT stations (2019 baseline: 0) (RFI C) 1g. Priority seating for people with special needs (pregnant women, elderly, and disabled) in BRT buses installed (2019 baseline: 0)

Performance Indicators with Targets Data Sources and Results Chain and Baselines Reporting Mechanisms Risks 1h. At least one ITS command center established providing information services to operator users (2019 baseline: 0) 1i. At least 880 jobs created during project implementation, and 350 jobs created during operation, at least 20% for local poor people and at least 20% for women during implementation and 30% for women during operation; (2017 baseline: 17.00% poor and 11.42% women in construction, and 25.00% women in operation) 2. Climate-resilient 2a. At least 4 km of river with improved 2a–d. PMO semiannual flood risk flood risk, green embankments, and progress reports management and ecological low-water level in-stream sponge city green channel design and bicycle and pedestrian infrastructure paths (2019 baseline: 0) constructed 2b. At least 8,000 square meters of sponge city stormwater retention green space integrating physical activity areas for all ages and at least 43 km of drainage pipes and 40 km of wastewater pipes built (2019 baseline: 0) (RFI C) 2c. At least two end-of-storm-water pipe sedimentation tanks and reed-bed sand filters to clean first flush stormwater constructed (2019 baseline: 0) 2d. At least 320 jobs created during project implementation, and 120 jobs created during operation, with at least 20% for local poor people and 20% for women during implementation and 30% for women during operation; (2017 baseline: 17.00% poor and 11.42% women in construction, and 11.00% women in operation) 3. Water supply 3a. At least 330 flow meters and 3a–c. PMO semiannual system improved 4,000 smart meters procured and installed progress reports (2019 baseline: 0) 3b. At least 32 km of leaking water supply pipes replaced (2019 baseline: 0) (RFI C) 3c. 483 jobs created during project implementation, and 30 jobs created during operation, with at least 20% for poor people and 20% for women during implementation, and 30% for women during operation; (2017 baseline: 17.00% poor, and 11.42% women in construction and 25.00% women in operation) 4. Capacity in low- 4a. Action plans and guidelines which are 4a. PMO semiannual carbon, climate- inclusive and gender sensitive prepared on consolidated progress resilient, healthy city low-carbon, transport-oriented reports planning, and development; pedestrian and bicycle infrastructure networks; urban climate change management, adaptation; citywide hydraulic model with developed sponge city green infrastructure; open space systems; and healthy city; and are accepted by Yanji city government and shared with other cities in the People’s Republic of China and other developing member countries (2019 baseline: 0) (RFI D)

Performance Indicators with Targets Data Sources and Results Chain and Baselines Reporting Mechanisms Risks 4b. At least 50 staff (of which 40% are 4b–c. Post-training women) report improved knowledge on participant feedback low-carbon city planning and lifestyles, surveys transport-oriented development, parking management, BRT advanced operations, urban climate change adaptation and community resilience, sponge city green infrastructure, healthy city, water safety, and NRW management (2019 baseline: not applicable) (RFI E) 4c. At least 30 government staff report improved capacity to assess water safety, develop effective mechanisms to reduce NRW, and operate geographic information systems and smart city solutions in Yanji (2019 baseline: not applicable) (RFI E) Key Activities with Milestones 1. Low-carbon bus rapid transit line integrated with nonmotorized transport infrastructure constructed 1.1 Prepare preliminary and detailed design for BRT system and nonmotorized transport links and network (Q2 2022–Q4 2024). 1.2 Procure BRT stations and pilot route of BRT in west part of BRT corridor (Q2 2023–Q1 2025). 1.3 Construct pilot route of BRT and associated pilot stations in west part of BRT corridor (Q2 2024–Q4 2025). 1.4 Construct remaining BRT route, stations, terminal building, pedestrian links and pathways, bicycle lanes, and bicycle parking facilities at stations (Q1 2024–Q4 2025). 1.5 Install BRT station equipment, traffic signals, ITS equipment, traffic safety equipment, signals, landscaping, and lighting (Q3 2024–Q4 2025). 1.6 Conduct trial operation of BRT, including testing of ITS and command center components (Q1 2026–Q3 2026). 1.7 Implement and enforce parking management plan (Q3 2025–Q3 2026). 2. Climate-resilient flood risk management and sponge city green infrastructure constructed 2.1 Prepare preliminary and detailed design and update of resettlement plan (Q2 2019–Q3 2020). 2.2 Implement resettlement plan (Q4 2020–Q1 2021). 2.3 Procure and award contract (Q4 2020–Q1 2021). 2.4 Construct and install drainage pipes and sponge city green infrastructure, including end-of-pipe facilities (Q2 2021–Q3 2022). 2.5 Construct green river embankment, in-stream bio-engineering, and landscaping (Q2 2022–Q4 2022). 2.6 Produce knowledge products on innovations in sponge city interventions (Q2 2022). 3. Water supply system improved 3.1 Prepare preliminary and detailed design and procurement of advance procurement package for goods contract (Q2 2019–Q1 2020), and (Q3 2020). 3.2 Install flow meters and smart meters (Q2 2020–Q3 2020). 3.3 Replace water supply pipes (Q2 2021–Q4 2021). 4. Capacity in low-carbon, climate-resilient, healthy city planning, and infrastructure management developed 4.1 Project implementation consultants support PMO with management, design review, bid document preparation, contract management, site supervision, monitoring and evaluation, report preparation, and preparation and implementation of training and study tour plan (Q2 2020–Q1 2027). 4.2 Conduct capacity development, awareness raising, and knowledge sharing on low-carbon city planning, traffic impact assessment and BRT operation planning, and pedestrian and bicycle master planning applying universal design (Q3 2022–Q4 2026). 4.3 Conduct capacity development, awareness raising, and knowledge sharing on urban climate change adaptation action planning, hydraulic modeling, and sponge city and open space master planning (Q2 2020–Q4 2026). 4.4 Conduct capacity development, awareness raising, and knowledge sharing on healthy city planning, monitoring, and awareness raising (Q2 2020–Q4 2026). 4.5. Conduct capacity development, awareness raising, and knowledge sharing on water safety planning and NRW reduction (Q2 2020–Q4 2026). 4.6 Conduct capacity development, awareness raising, and knowledge sharing on integrated digital solutions improvements for Yanji project areas (Q4 2026). Project Management Activities Engage project start-up consultants; and low-carbon, transport, and parking consultants (Q3 2019–Q4 2019).

Engage project implementation consultants; climate adaptation, sponge city and hydrology, health, NRW, and water safety consultants. (Q4 2019–Q2 2020). Inputs Asian Development Bank: €117.48 million (loan) Government: €117.29 million Assumptions for Partner Financing Not applicable BRT = bus rapid transit, tCO2 = ton of carbon dioxide, ITS = intelligent transport system, km = kilometer, NRW = nonrevenue water, PMO = project management office, RFI = results framework indicators, Q = quarter. a Yanji city government. 2009. Yanji City General Urban Master Development Plan (2009–2030). Yanji city. Contribution to the Asian Development Bank Results Framework: RFI A: Total annual greenhouse gas emissions reduction (tCO2 equivalent/year). Expected: 60,000. RFI B: People benefitting from improved services in urban areas. Expected: about 0.59 million. RFI C: Urban infrastructure assets established or improved. Expected: 10 (20 km BRT corridor; 30 km bicycle lanes; 30 km pedestrian pathways and sidewalks; 5 plazas; 100 new parking spaces; 100 clean-energy buses; 4 km of sponge city river greenways, 43 km drainage pipes; 40 km wastewater pipes, 32 km of leaking water supply pipes replaced). RFI D: Measures to improve regulatory, legal, and institutional environment for better planning supported in implementation. Expected: 5 (action plans developed and accepted by the Yanji city government). RFI E: Urban climate and disaster resilience capacity development initiatives implemented. Expected: 1 (urban climate change adaptation action plan and training). Source: Asian Development Bank. B. Monitoring

146. Project performance monitoring. The PMO will be responsible for monitoring and reporting on project performance. The basis for performance monitoring will be the design and monitoring framework (DMF), which identifies performance targets for the impact, outcomes, and outputs of the project. Disaggregated baseline data for output and outcome indicators gathered during project processing will be updated and reported quarterly through the executing agency's quarterly progress reports and semiannual consolidated reports and after each ADB review mission. The quarterly reports will provide information necessary to update ADB's project 33 performance reporting system.31F At the start of project implementation, the PMO and implementing agencies, with support from the project implementation consultant, will develop a performance review framework and 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’s impact and outcome taking into account the components’ scope. By collecting data from the sources identified in the DMF, the PMO will be able to report on an annual basis the performance of the project. Specific reporting requirements will be set out in the agreement between ADB and the government. The PMO will collect the data, calculate the indicators, analyze the results, and prepare a brief report describing the extent to that the project is generating the intended outputs and outcomes, as well as the overall impact on the project municipalities. The relevance and practicability of data collection for indicators was confirmed with the PMO and the implementing agencies. Meanwhile, the agreed socioeconomic and environmental indicators to be used will be further enhanced to measure project impacts. The PMO and the implementing agencies agreed and confirmed that they will (i) refine and integrate the project performance management framework at the start of project implementation; (ii) confirm that targets are achievable; (iii) develop recording, monitoring, and reporting arrangements; and (iv) establish systems and procedures no later than six months after project inception.

147. Compliance monitoring. The executing agency, implementing agencies, and the project implementation consultant, will conduct compliance monitoring, submit reports and information to ADB concerning the use of ADB loan proceeds, project implementation, project implementation

33 ADB's project performance reporting system is available at https://www.adb.org/sites/default/files/institutional- document/31483/om-j1.pdf.

performance, and compliance of loan covenants. These reports will include (i) quarterly progress reports, (ii) semiannual consolidated progress reports on project implementation; and (iii) project completion report, which should be submitted not later than six months after the completion of the project facilities. The compliance status of loan and project covenants will be reported and assessed through the semiannual progress report. ADB review missions will verify these statuses.

148. Safeguards monitoring–environment. Three types of environment safeguard monitoring will be conducted under the EMP: compliance monitoring; internal monitoring; and, external monitoring. The environmental monitoring program, including roles, responsibilities, monitoring frequency and variables, is described in the EMP. ADB and the PMO will monitor the status of EMP implementation through: (i) monthly/quarterly PIU project progress reports and provide semi-annually environmental progress reports to ADB; (ii) reports by the Project Implementation Environment Consultant (PIEC) to PIUs and ADB; and (iii) review missions. EMP implementation will be coordinated by the PMO’s Environment Officer, supported by the PIUs, and municipal EPB, and project implementation environment consultant, to ensure overall compliance of all relevant agencies with the EMP.

149. Internal monitoring and reporting by construction supervision companies (CSCs). During construction, CSCs and designated Environmental Supervision Consultants (Internal) will be responsible for conducting internal EMP monitoring and supervision in accordance with the monitoring plan defined in the EMP. During construction, the monitoring will include biodiversity monitoring, air quality, noise measurements, earth spoils and dredged spoil dispersal sites. The results will be reported through the CSCs’ reports to the IA’s. The ESCs will guide Construction Contractors in adhering to EMP requirement at each subproject site.

150. Environmental impact monitoring by Environment Monitoring Station (EMS). The IAs will contract the local EMSs to conduct environmental impact monitoring in accordance with the monitoring plan. Monitoring will be conducted during construction and operation period, until a project completion report (PCR) is issued.

151. EMP implementation monitoring and progress reporting. The PIEC will review project progress and compliance with the EMP based on consultation with Environmental Supervision Consultants (Internal), field visits, and the review of the environmental impact monitoring conducted by the EMSs. The findings of the PIEC will be reported to ADB through the semiannually EMP monitoring and progress reports. The reports will include (i) progress made in EMP implementation, (ii) overall effectiveness of the EMP implementation (including public and occupational health and safety), (iii) environmental monitoring and compliance, (iv) institutional strengthening and training, (v) public consultation (including GRM), and (vi) any problems encountered during construction and operation, and the relevant corrective actions undertaken. The PIEC will help PMO prepare the reports and submit the English report to ADB for appraisal and disclosure.

152. Project readiness inspection. Before construction, the PIEC will assess the readiness of the PMO and implementing agencies for environmental management, based on a set of indicators in the EMP and report to ADB and PMO. This assessment will demonstrate that environmental commitments are being met and environmental management systems are in place before construction starts, and/or suggest corrective actions to ensure that all requirements are met.

153. External monitoring by independent experts/agency: The PMO shall employ qualified and experienced external environment experts/agency (as per CS3) for environmental monitoring financed by the loan proceeds.

154. External monitoring reports will cover qualitative verification of reports by the implementing agencies and contractors of many of the same parameters as the internal monitoring. PIU’s internal report would focus on the quantitative measurement of selected environmental variables at and near construction sites to ensure compliance with regulatory standards whereas the external experts report would focus on qualitative aspects of how any adverse environmental impact was occurring could be mitigated. The external monitoring report would document progress of implementation of mitigation measures as outlined in the project IEE/EMP and participation in ongoing stakeholder consultations and evaluation and reporting on how environmental grievances, if any, are handled.

155. The independent reporting by external monitoring experts/agency will provide recommendations and suitable actions to the PMO. The external monitoring report will be provided to ADB semiannually for review and disclosure at ADB website. The reporting of monitoring results to internal and external audiences is required to verify compliance.

156. Project completion environmental audits. Within three months after each subproject completion, or no later than one year with permission of the city EPB, environmental acceptance monitoring and audit reports of each subproject completion shall be (i) prepared by a licensed environmental monitoring institute in accordance with the PRC Guideline on Project Completion Environmental Audit (2001), (ii) reviewed for approval of the official commencement of individual subproject operation by environmental authorities, and (iii) finally reported to ADB through the semiannual EMP monitoring and progress reporting process.

157. Safeguards monitoring–resettlement. The PMO, together with the concerned implementing agencies, will monitor resettlement plan implementation and submit semiannual monitoring reports to ADB. The PMO will also engage an external resettlement monitor to carry out verification and compliance monitoring. The external resettlement monitor will submit semiannual monitoring reports to the PMO and ADB during the period of resettlement plan implementation and for one year after the completion of resettlement plan implementation. After one year of the completion of resettlement plan implementation, the external resettlement monitor will assess the implementation of land acquisition and resettlement provisions in the project and submit a resettlement completion report to PMO and ADB.

158. Gender and social dimensions monitoring. The PPMS will include monitoring of the SGAP. Clear targets and indicators have been established and some indicators, such as those on features of facilities such as lighting at BRT stations, employment by local poor and women and women participation in capacity development, are also captured in the DMF. The social and gender specialists will assist the PMO and IAs establishing effective monitoring systems, and work with the appointed local focal points in the PMO and implementing agencies to ensure implementation of the SGAP. The SGAP will be monitored semiannually and reported as part of the semiannually consolidated project progress reports and reviewed during ADB review 34 missions.32F

34 ADB's Handbook on Social Analysis: A Working Document. https://www.adb.org/sites/default/files/institutional- document/33763/files/handbook-poverty-social-analysis.pdf; Strengthening participation for Development Results: An Asian Development Bank Guide to Participation.https://www.adb.org/sites/default/files/institutional-

C. Evaluation

159. ADB, executing agency and implementing agencies will undertake regular Project Review Missions at least once a year to review the implementation progress and loan covenant compliance. A Midterm Review Mission will be carried out after 2–3 years of loan effectiveness. Special Project Administration Missions will be carried out as needed in addition to review and address implementation challenges. After Within 6 months of physical completion of the project, the Yanji city government, the executing agency of the project will submit a project completion report to ADB.

160. Loan review missions will: (i) review overall implementation of the project and update, in consultation with the EA, the project implementation schedule; (ii) examine implementation problems that the project is encountering or is likely to encounter, and work out measures with the EA to resolve them, including financial management matters; (iii) review actions required in terms of poverty reduction, environmental impact assessments and/or initial environmental examinations, environmental management plan, resettlement plans, indigenous peoples plans, and where required; (iv) check on availability and timeliness of budgetary allocations and counterpart funding; (v) review project expenditures, and estimate whether the project can be completed within the original cost estimates (foreign and local currency); (vi) identify cost overruns or savings that may materialize under the project and ascertain the need to reallocate loan proceeds between categories or cancel surplus loan proceeds. Where a cost overrun is anticipated, examine the arrangements made by the borrower to finance it; (vii) review progress with procurement and disbursement; and verify, based on a comparison of ADB’s and the EA's records, the contracts awarded, and commitments and disbursements made; (viii) verify the statement of expenditure when applicable; (ix) review the borrower's compliance with loan covenants and, where there is any noncompliance or delay, discuss proposed remedial measures with the borrower (including discussions with the external auditor of the borrower or EA where relevant); (x) assess the likelihood of achieving the project’s outcome and outputs as indicated in the risks section of the DMF; (xi) examine the need to extend the loan closing date, and where required, work out with the EA the most suitable loan closing date based on a revised implementation schedule, and advise the EA and borrower to submit a formal request for extension to ADB; and (xii) examine any other matter related to the project that requires ADB’s attention including discussions with consultants and contractors, as necessary.

document/33349/files/strengthening-participation-development-results.pdf; and, CSO Sourcebook: A Staff Guide to Cooperation with Civil Society Organizations.https://www.adb.org/sites/default/files/institutional- document/32629/files/cso-staff-guide.pdf.

161. The midterm review mission will be undertaken to review whether a project is likely to achieve its outcome and outputs on time and within budget. The mission will review all aspects of project administration and identify appropriate mitigation measures to address implementation problems. The results will be used when comparisons between implementation progress and results at project completion are required. The mission will:

162. Special Project Administration Missions are fielded as needed to deal with specific project implementation matters that have not been covered by a review mission. The mission will discuss and consult with the borrower specific implementation issues and agree on actions to be taken.

D. Reporting

163. The Yanji city government, the executing agency of the project will provide ADB with (i) quarterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated semi-annual reports following at a minimum the ADB’s project administration instructions for the executing agency’s progress report contents 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 the next 12 months; and (iii) a project completion report within 6 months of physical completion of the project. To ensure that projects will continue to be both viable and sustainable, project accounts, and the audited project financial statements, statement together with the associated auditor's report, should be adequately reviewed.

Table 44: Key Reporting Requirements Report Reference Timing of Reporting Project performance management system Project Agreement, Develop comprehensive project Schedule, No later than 6 months after performance management system paragraphs loan effectiveness procedures Reporting of baseline and progress Annual, may be included in data including environmental the project progress reports management plan Quarterly project progress reportsa Project Agreement, Quarterly Schedule, Article Semiannual consolidated project progress Project Agreement, Semiannual, within two reportsa Schedule, Article month after the end of each period Audited project accounts and financial Project Agreement, Not later than 6 months after statements auditor's report Schedule, Article the closure of fiscal year (end of June) Resettlement monitoring Internal monitoring reports and Project Agreement, Include summary in the external monitoring reports Schedule, semiannual project progress (semiannually) paragraphs reports Resettlement completion report Prior to loan closure (within 3 months after project completion) Environmental reports Project Agreement, Construction phase–environmental Schedule, Semiannual management plan monitoring and paragraphs progress report Construction phase–external Semiannual environmental management plan

Report Reference Timing of Reporting Operations phase–external monitoring Semiannual, until a project report completion report is issued Social safeguard monitoring of SGAP Project Agreement, Semiannually; may be Schedule, included in the progress paragraphs reports Project completion report Project Agreement, Not later than 3 months after Schedule, Article the physical completion of the project SGAP = social and gender action plan. a Need to include and be structured at a minimum following ADB’s project administration instructionsexecuting agency’s progress report contents is available at: https://www.adb.org/sites/default/files/institutional- document/33431/pai-5-01.pdf Source: Asian Development Bank.

E. Stakeholder Communication Strategy

164. Project information will be communicated through public consultation, information disclosure mechanism in ADB’s and government’s website, meetings, interviews, focus group discussions, and community consultation meetings, in accordance with ADB’s requirements of information disclosure policy (footnote 24).

165. Environment. Meaningful consultation, participation and information disclosure at each project city/county has been conducted during feasibility study and environmental impact assessment in accordance with the PRC Interim Guideline on Public Consultation in EIA (2006) and ADB’s Safeguard Policy Statement (SPS, 2009). Information disclosure and public consultation included newspaper disclosure; informal communication with key stakeholders, including residents, local authorities. During construction, the affected people will be consulted through questionnaire surveys and interviews by the environment specialist of the project management consultant. The project’s environmental information shall be disclosed by the local EPBs, PMO and ADB as follows: (i) the project EIA is disclosed at www.adb.org; (ii) the Chinese EIAs are disclosed on the website of the relevant Environmental Protection Bureaus; and (iii) the semi-annually EMP progress and monitoring reports will be disclosed at www.adb.org. A GRM has been defined to prevent and address community concerns, reduce risks, and assist the project in maximizing environmental and social benefits.

166. Involuntary resettlement. Consultations with the affected households and other stakeholders have been undertaken and will continue during resettlement plan updating and implementation. Resettlement information booklets have been prepared and distributed to the affected households during project preparation. Disclosure will continue to be carried out during resettlement plan updating and implementation.

167. Social and gender action plan. Consultations with communities have taken place and will continue at different points in the implementation of the SGAP not only to inform people about the components or specific activities, but also to enable people in the community to ask questions, make suggestions, state preferences, and express concerns. Special attention will be paid to the participation of women, and any other vulnerable groups, such as the poor.

168. Public awareness and education program on social services, safety and health, environmental and river protection, flood risk, recycle, road traffic safety for nearby communities and schools etc. will be conducted as part of the project components and actions to enhance the involvement of women are included in the SGAP.

169. Public disclosure. Public disclosure of all project documents will be undertaken through the project PMO and on the ADB website, including the project datasheet, DMF, EIA report, resettlement plan, EMDP and GAP and the report and recommendations of the President. Disclosure of external social and environmental monitoring reports will be undertaken during project implementation.

X. ANTICORRUPTION POLICY

170. ADB reserves the right to investigate, directly or through its agents, any violations of the 35 Anticorruption Policy relating to the project.33F 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 and/or entities on ADB’s anticorruption debarment list are ineligible to participate in 36 ADB-financed activity and may not be awarded any contracts under the project.34F

171. To support these relevant provisions are included in the loan agreement, and the bidding documents for the project. ADB’s Anticorruption Policy (1998, as amended to date) will be explained to and discussed with the executing and implementing agencies. 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 will be included in the loan agreement and the bidding documents for the project. In particular, all contracts financed by ADB in connection with the project will include provisions specifying the right of ADB to audit and examine the records and accounts of executing agency, implementing agencies, and all contractors, suppliers, consultants, and other service providers as they relate to the project. The executing agency 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.

172. The executing and implementing agencies will comply with ADB’s Anticorruption Policy (1998, amended from time to time). The executing agency agrees (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 require contractors and suppliers 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.

173. The executing agency will (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 relevant provisions of ADB’s Anticorruption Policy (1998, as amended to date) in all bidding documents for the project specifying the right of ADB to audit and examine the records and accounts of the PMO, implementing agencies, and all the contractors, suppliers, consultants, and other service providers as they relate to the project.

174. The executing agency and the implementing agencies will also (i) involve the agencies responsible for oversight of each implementing agency in bidding and construction to enhance

35 Anticorruption Policy.http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf. 36 ADB's Anticorruption and Integrity Office website. https://www.adb.org/site/integrity/main.

construction quality control and supervise effective work; (ii) introduce a dual-signing system in which each works contract winner also signs an anticorruption agreement with the employer; (iii) periodically inspect the contractors’ activities related to fund withdrawals and settlements; (iv) require the project management consulting service to support the PMO and implementing agencies to ensure good governance, accountability, and transparency in project operations; and (v) in consultation with relevant ministries at the central level, update rules and regulations on corporate governance and anticorruption to enhance the transparency of the operations of the executing agency and implementing agencies.

175. The executing and implementing agencies will comply with ADB’s Anticorruption Policy (1998, amended from time to time). The executing agency agrees (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 require contractors and suppliers 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.

XI. ACCOUNTABILITY MECHANISM

176. People who are, or may in the future be, adversely affected by the project may submit complaints to ADB’s 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 an effort in good faith to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still 37 dissatisfied, should they approach the Accountability Mechanism.35F

XII.RECORD OF CHANGES TO THE PROJECT ADMINISTRATION MANUAL

177. The PAM is a living document and is subject to change after ADB Board approval of the project's report and recommendation of the President. It is concise yet informative, providing checklists of all activities related to project implementation along with the necessary procedures for the PMO to effectively implement and monitor the project.

Table 45: Changes to the Project Administration Manual No. Changes/Updates Date Remarks 1. Project administration manual initial draft 22 March 2019 Agreed during the loan fact-finding mission

37 Accountability Mechanism.http://www.adb.org/Accountability-Mechanism/default.asp.

91 Appendix

Executing Agency’s Progress Report Contents

A. Introduction and Basic Data

(i) loan number, project title, borrower, executing agency(ies) (EA), implementing agency(ies) (IA); (ii) total estimated project cost and financing plan; (iii) status of project financing including availability of counterpart funds and cofinancing; (iv) dates of approval, signing, and effectiveness of ADB loan; (v) original and revised (if applicable) ADB loan closing date and elapsed loan period based on original and revised (if applicable) loan closing dates; and (vi) date of last ADB review mission.

B. Utilization of Funds

(i) cumulative contract awards financed by the ADB loan, cofinancing, and counterpart funds (commitment of funds to date), and comparison with time-bound projections (targets); (ii) cumulative disbursements from the ADB loan, cofinancing, and counterpart funds (expenditure to date), and comparison with time-bound projections (targets); and (iii) re-estimated costs to completion, need for reallocation within ADB loan categories, and whether an overall project cost overrun is likely.

C. Project Purpose and Implementation Progress

(i) status of project scope and implementation arrangements compared with those in the report and recommendation of the President (RRP), and whether major changes have occurred or will need to be made; (ii) an assessment of the likelihood that the project outcome and outputs will be achieved in part or in full, and whether remedial measures are required based on the current project scope and implementation arrangements; (iii) an assessment of changes to the key risks that affect achievement of the outcome and outputs, and quantifiable implementation targets; (iv) other project developments, including monitoring and reporting on gender, safeguards (environment, resettlement and Indigenous Peoples), and social safeguards requirements that might adversely affect the project's viability or accomplishment of project outcome; (v) assessment of project implementation arrangements such as establishing, staffing, and funding of the project management office or project implementation units; (vi) information relating to the EA’s internal operations that impacts on implementation arrangements or project progress; (vii) assessment of the progress of each implementation activity, such as, a. recruitment of consultants and their performance; b. procurement of goods and works (from preparation of detailed designs and bidding documents to contract awards); c. the performance of suppliers, manufacturers, and contractors for goods and works contracts; and d. comparison with the original implementation schedule—quantifiable and monitorable target, (include charts such as bar or milestone to illustrate

92 Appendix

progress and actual versus planned expenditure, S-curve graph showing the relationship between physical and financial performance, and actual progress in comparison with the original schedules and budgets). The reference framework or guidelines in calculating the project progress including examples are shown in Appendix 2.

D. Compliance with Covenants

(i) the borrower's compliance with policy loan covenants such as sector reform initiatives and EA reforms, and the reasons for any noncompliance or delay in compliance; (ii) the borrower’s and EA’s compliance with financial loan covenants including the EA’s financial management, and the provision of audited project accounts or audited agency financial statements; and (iii) the borrower’s and EA’s compliance with project-specific loan covenants associated with implementation, safeguards (environment, resettlement, and Indigenous Peoples), social and gender dimensions, and other requirements specified in the loan agreement. Sections VII. Safeguards and VIII. Gender and Social Dimensions of the PAM.

E. Major Project Issues and Problems

Summarize the major problems and issues affecting or likely to affect implementation progress, compliance with covenants, and achievement of project outputs and outcome, including the findings of any project procurement-related review that may have been undertaken. Recommend actions to overcome these problems and issues (e.g., changes in scope, changes in implementation arrangements, and reallocation of loan proceeds).