Shaanxi Green Intelligent Transport and Logistics Management Demonstration Project

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Report and Recommendation of the President to the Board of Directors

Project Number: 51401-002 November 2020

Proposed Loan People’s Republic of China: Shaanxi Green Intelligent Transport and Logistics Management Demonstration Project

Distribution of this document is restricted until it has been approved by the Board of Directors. Following such approval, ADB will disclose the document to the public in accordance with ADB's Access to Information Policy.

CURRENCY EQUIVALENTS (as of 13 November 2020)

Currency unit – yuan (CNY) CNY1.00 = $0.1512 $1.00 = CNY6.6130

ABBREVIATIONS

ADB – Asian Development Bank BOC – Bank of Communications CO2 – carbon dioxide EMP – environmental management plan FCUC – Foreign Capital Utilization Center FIL – financial intermediation loan G20 – Group of Twenty GHG – greenhouse gas IT – information technology m2 – square meter O&M – operation and maintenance PAM – project administration manual PIE – project implementing entity PMC – project management consultant PRC – People’s Republic of China SDGAP – social development and gender action plan SMEs – small and medium-sized enterprises SPFD – Shaanxi Provincial Finance Department SPTD – Shaanxi Provincial Transport Department YGUDDA – Yan’an Green Urban District Demonstration Area

NOTE

In this report, “$” refers to United States dollars.

Vice-President Ahmed M. Saeed, Operations 2 Director General James P. Lynch, East Asia Department (EARD) Director Sujata Gupta, Sustainable Infrastructure Division (EASI), EARD Team leaders Masahiro Nishimura; Senior Rural Development Specialist; Environment, Natural Resources, and Agriculture Division; South Asia Department (SARD) Arun Ramamurthy, Senior Infrastructure Specialist (Digital Technology), EASI, EARD Deputy team leader Chenglong Chu, Senior Portfolio Management Officer, People’s Republic of China Resident Mission, EARD Team members Jenny Yan Yee Chu; Procurement Specialist; Procurement Division 2; Procurement, Portfolio, and Financial Management Department Czareana Dello, Associate Project Analyst, EASI, EARD Daisy Garcia, Senior Project Officer, Energy Division, Central and West Asia Department Shinsuke Kawazu, Principal Counsel, Office of the General Counsel Kang Hang Leung; Principal Infrastructure Finance Specialist; Public Management, Financial Sector, and Regional Cooperation Division; EARD Ma. Concepcion Jea Macrohon, Project Analyst, EASI, EARD Veronica Mendizabal Joffre, Social Development Specialist (Gender and Development), Office of the Director General, EARD Jeffrey Miller, Principal Transport Specialist, EASI, EARD Srinivas Sampath, Chief, Public–Private Partnership Thematic Group, Office of Public–Private Partnership Jian Zhou, Social Development Specialist (Safeguards), EASI, EARD Yun Zhou, Senior Environment Specialist, EASI, EARD Peer reviewer Kaoru Kasahara, Senior Transport Specialist, Transport and Communications Division, SARD

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CONTENTS

Page PROJECT AT A GLANCE MAP I. THE PROPOSAL 1 II. THE PROJECT 1 A. Rationale 1 B. Project Description 4 C. Value Added by ADB 5 D. Summary Cost Estimates and Financing Plan 6 E. Implementation Arrangements 7 III. DUE DILIGENCE 8 A. Technical 8 B. Economic and Financial Viability 8 C. Sustainability 9 D. Governance 9 E. Poverty, Social, and Gender 9 F. Safeguards 10 G. Summary of Risk Assessment and Risk Management Plan 11 IV. ASSURANCES 12 V. RECOMMENDATION 12

APPENDIXES 1. Design and Monitoring Framework 13 2. List of Linked Documents 16

Project Classification Information Status: Complete

PROJECT AT A GLANCE

1. Basic Data Project Number: 51401-002 Project Name Shaanxi Green Intelligent Transport and Department/Division EARD/EASI Logistics Management Demonstration Project Country China, People's Republic of Executing Agency Shaanxi Provincial Borrower People's Republic of China Government

Country Economic https://www.adb.org/Documents/LinkedDocs/ Indicators ?id=51401-002-CEI Portfolio at a Glance https://www.adb.org/Documents/LinkedDocs/ ?id=51401-002-PortAtaGlance

2. Sector Subsector(s) ADB Financing ($ million) Transport Multimodal logistics 165.00 Finance Small and medium enterprise finance and leasing 15.00 Information and ICT strategy and policy, and capacity development 20.00 communication technology Total 200.00 3. Operational Priorities Climate Change Information1 Accelerating progress in gender equality GHG reductions (tons per annum) 69,967 Tackling climate change, building climate and disaster resilience, and Climate Change impact on the Medium enhancing environmental sustainability Project Making cities more livable ADB Financing Adaptation ($ million) 14.06 Mitigation ($ million) 119.60

Cofinancing Adaptation ($ million) 0.00 Mitigation ($ million) 0.00 Sustainable Development Goals Gender Equity and Mainstreaming SDG 1.a Some gender elements (SGE) SDG 5.c SDG 9.1, 9.3, 9.4 Poverty Targeting SDG 12.7 General Intervention on Poverty SDG 13.a

4. Risk Categorization: Low . 5. Safeguard Categorization Environment: B Involuntary Resettlement: B Indigenous Peoples: C

. 6. Financing Modality and Sources Amount ($ million) ADB 200.00 Sovereign Project (Regular Loan): Ordinary capital resources 200.00 Cofinancing 200.00 KfW Bankengruppe - Project loan (Not ADB Administered) 200.00 Counterpart 404.08 Government 404.08 Total 804.08

Currency of ADB Financing: US Dollar

1 The project reduces greenhouse gas emissions. However, it does not fall under the eligibility criteria for climate mitigation finance as defined by the joint multilateral development bank methodology on tracking climate finance, which notes that not all activities that reduce greenhouse gases in the short term are eligible to be counted towards climate mitigation finance. Accordingly, greenfield fossil fuel projects are excluded, and climate mitigation finance is considered zero.

Source: Asian Development Bank This document must only be generated in eOps. 26102020142441962869 Generated Date: 27-Oct-2020 14:31:48 PM o o Tongchuan ’E o ’E Binxian ’E WEINAN GANSU XIANYANG Map of Shaanxi Province

INNER MONGOLIA AUTONOMOUS REGION Pucheng Dali Qianxian YULIN

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YAN'AN Taibai XI’AN

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SICHUAN o ’E CHONGQING o ’E HANZHONG Xixiang ANKANG Ankang Baihe SHAANXI GREEN INTELLIGENT o ’N o ’N TRANSPORT AND LOGISTICS MANAGEMENT DEMONSTRATION PROJECT Pingli HUBEI IN THE PEOPLE'S REPUBLIC OF CHINA SICHUAN 0 20 50 CHONGQING Civilian Aerospace New Town Logistics Park Subproject o Kilometers (km) ’E Railroad Multimodal Bulk Commodity Logistics Park in Xi'an Subproject

YULIN o ’E Suide Xi'an High-tech New Town Logistics Park Subproject Ankang Hengkou Demonstration Zone Subproject Yan'an Green Urban District Demonstration Area Subproject

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This map was produced by the cartography unit of the Asian Development Bank. The boundaries, colors, denominations, and any other information shown on this Huanglong map do not imply, on the part of the Asian Development Bank, any judgment on the 0 20 50 legal status of any territory, or any endorsement or acceptance of such boundaries, colors, denominations, or information. o Kilometers (km) TONGCHUAN ’E WEINAN - AV

I. THE PROPOSAL

1. I submit for your approval the following report and recommendation on a proposed loan to the People’s Republic of China (PRC) for the Shaanxi Green Intelligent Transport and Logistics Management Demonstration Project. The project will support Shaanxi Province in developing and demonstrating climate-resilient and green intelligent transport, logistics, and supply chain management ecosystems for low-carbon growth.

2. The PRC is the world’s largest emitter of greenhouse gases (GHGs), and mitigating these emissions requires large-scale integration of low-carbon development solutions. The proposed project will assist Shaanxi Province in reducing GHG emissions by improving operations, facilities, and safety in the transport and logistics sector. The development of multimodal logistics systems and financial intermediation facility will also support private sector development, increasing participation of small and medium-sized enterprises (SMEs) in the provision of logistics services. The adoption of Group of Twenty (G20) principles1 for high-quality infrastructure investments will transform Shaanxi Province into a low-carbon region and demonstrate innovative approaches to environmental protection in the Yellow River Basin.2

II. THE PROJECT

A. Rationale

3. National commitment to low-carbon development and air quality improvement. The PRC, the world’s largest emitter of GHGs, is committed to addressing the issue of global warming. The PRC is a signatory to the Paris Agreement under the United Nations Framework Convention on Climate Change, and its Nationally Determined Contribution includes an ambitious target to peak carbon emissions by 2030; and has recently announced its goal to be carbon neutral by 2060. Environmental sustainability is a priority for the government, and innovative green development is one of the five core development principles in the PRC’s Thirteenth Five- Year Plan, 2016–2020. As part of this effort, the government aims to maintain acceptable national air quality levels in major cities for 80% of days by the end of 2020.

4. Role of the transport and logistics sector in reducing emissions. The transport and logistics sector in the PRC is a rapidly growing source of GHG emissions and other air pollution. Carbon dioxide (CO2) equivalent emissions from the transport sector were 827.9 million tons (8.6% of national emissions) in 2014.3 In the last decade, this share has been increasing at an average annual rate of 2.8%. Unless actions are taken earlier to adopt low-carbon technologies, the PRC transport sector will continue to contribute to GHG emissions.4 Reducing GHG emissions from the transport sector is crucial to achieving the objectives of the Paris Agreement. The future vision and road map of the PRC’s transport and logistics sector is presented in the Outline for Building the PRC’s Strength in Transport.5 The document prioritizes (i) establishing a green, low- carbon, and efficient modern logistics system; and (ii) accelerating the development of new business modes. The National Logistics Hub Planning and Construction Plan provides a road

1 Government of Japan, Ministry of Finance. G20 Principles for Quality Infrastructure Investment. Tokyo. 2 Shaanxi is one of the riparian provinces of the Yellow River Basin. The Asian Development Bank (ADB) and the Government of the PRC have agreed to develop a programmatic approach to focus ADB’s lending and nonlending support to create a Yellow River economic corridor by promoting high productivity of natural, human, social, and physical capital. The project directly contributes to the strengthening of human and physical capital. 3 World Bank. World Bank Open Data. Total greenhouse gas emissions (accessed 26 August 2020). 4 World Resources Institute. 2019. Toward Net Zero Emissions in the Road Transport Sector in China. Beijing. 5 Government of the PRC, State Council. 2019. The Outline for Building the PRC’s Strength in Transport. Beijing. 2

map until 2035 for developing highly efficient, green, and intelligent national transport and logistics systems.6

5. Transport and logistics constraints in Shaanxi Province. The transport and logistics sector in Shaanxi Province plays an important and strategic role in supporting provincial and national economic activity. Xi’an, the capital and main first-tier city of Shaanxi Province, functions as a major hub for national and international traffic, and this role is expanding rapidly. The total value of goods handled by logistics facilities in Shaanxi Province increased from CNY3.6 trillion in 2014 to CNY5.1 trillion in 2018, an average annual increase of 9.1%.7 However, the logistics industry in Xi’an has not evolved to meet the increase in service requirements, and future growth is constrained by a lack of capacity and modern logistics facilities. The per capita storage capacity of Xi’an is 0.8 cubic meters, which is far lower than other first-tier cities in the PRC, e.g., the per capita storage capacity of Shanghai is 1.8 cubic meters.8 Logistics facilities in second-tier cities of Shaanxi such as Ankang and Yan’an need to be developed to decentralize operations and decongest Xi’an. Refrigerated warehouse capacity in the PRC is concentrated in wealthier provinces, and the lack of adequate cold storage facilities and refrigerated trucks in Shaanxi Province results in the contamination, spoilage, and wastage of food and medicines.9

6. The transport terminals in Xi’an include numerous small private facilities in the inner city within the ring road. This concentration leads to heavy freight traffic in the area, contributing to congestion and air pollution. Xi’an is ranked as the eighth most congested city in the PRC. The municipal government of Xi’an has imposed restrictions on the movement of trucks in the city during certain times of the day to mitigate the congestion and pollution, but these measures increase logistics costs and delays. Freight transport in Shaanxi Province is dominated by road- based movements, with 75% of freight by volume transported by road, 24% by railway, and 1% by inland waterways. Increasing the volume of freight transported by railway and inland waterways would reduce GHG emissions and logistics costs but integrating these different transport modes requires modernized and efficient multimodal logistics facilities.

7. Logistics facilities in Shaanxi Province use suboptimal cargo handling methods, including semi-mechanical loading and unloading systems, energy-inefficient technologies, and outdated logistics operations, all of which contribute to higher costs and GHG emissions. Automation of logistics management systems consistent with G20 high-quality principles can improve efficiencies, reduce costs, and lower the consumption of energy and materials. The information and communications technology (ICT) systems are not integrated, and the absence of real-time traffic monitoring contributes to congestion and delays in responses to accidents. The main players in logistics operations in Shaanxi Province are private SMEs acting under government regulations and policy incentives. Most of these SMEs offer limited logistics services, are not integrated, and have limited access to technical and financial resources to upgrade their operations.10

8. Shaanxi Province’s commitment to low-carbon development. The Shaanxi Provincial Government, in line with the national government’s priorities, is working to reduce GHG emissions from the transport and logistics sector, which comprise 9% of Shaanxi Province’s total emissions.

6 Government of the PRC, National Development and Reform Commission and Ministry of Transport. 2019. National Logistics Hub Cities Plan. Beijing. 7 Shaanxi Provincial Government. 2018. Status and Analysis of Logistics Industry in Shaanxi, 2018. Xi’an. 8 The current total storage capacity is 83,000 m2, and the utilization rate is above 95%. No specific data is available for Ankang, but the lack of storage capacity is considered more severe compared to Yan’an. 9 Deloitte. 2015. Investment Promotion Report of China's Logistics Industry 2014–2015, Simplified Version. Shanghai. 10 A very limited number of large international and domestics operators are based in Shaanxi Province.

The target set by the Shaanxi Provincial Government during the Thirteenth Five-Year Plan is to reduce CO2 emission intensity (CO2 emissions per unit of gross domestic product) by 18% in 2020 from the 2015 level.11

9. The Shaanxi Provincial Government recognizes the key role of the transport and logistics sector in reducing GHG emissions. Its medium- and long-term development plan for the logistics industry identifies the following challenges: (i) the need for greening and transforming the logistics industry; (ii) limited awareness about innovative logistics concepts; (iii) low capacity of logistics operators, especially SMEs; (iv) lack of a logistics service network; and (v) weak policy implementation. The Shaanxi Port Development Initiative, included in the Thirteenth Five-Year Plan, is addressing the concentration of logistics facilities in the center of Xi’an, which is one of the main causes of operational inefficiencies in delivering logistics services in Shaanxi Province. This initiative includes a decongestion plan to move some logistics activities from the center of Xi’an to peripheral locations and to establish logistics facilities in other cities in Shaanxi Province, including Ankang and Yan’an. The Shaanxi Provincial Government is also supporting the implementation of the National Logistics Hub Planning and Construction Plan (para. 4), which has designated Xi’an and Yan’an as national demonstration hubs for sector innovations.12

10. Demonstrating green intelligent transport and logistics management in Shaanxi Province. The project will demonstrate how improving operations in the transport and logistics capacities can contribute to a reduction in GHG emissions and other air pollution in Shaanxi Province. The project will establish multimodal systems and climate-friendly logistics facilities in Ankang, Xi’an, and Yan’an. Multimodal centers will support the shift of freight transport from roads to railway, lowering the energy and carbon intensity of the sector. The logistics facilities in Xi’an will improve market connectivity and agricultural value chain linkages between local farmers, agribusiness, and markets. The project will develop an integrated information technology platform that will connect all the facilities with the Shaanxi Provincial Transport Department (SPTD) systems to facilitate better traffic planning and management. The project’s financial intermediation program will help SMEs (at least 30% of which will be managed by women) leverage private sector funding to green and modernize their logistics operations. The project will engage with the private sector and explore partnerships to operate and maintain facilities, where possible. The project will also improve capacity and knowledge sharing, including developing a strategy to improve the capacity of the SPTD and the logistics industry to take advantage of future opportunities.

11. Alignment with ADB’s Strategy 2030. The project will focus on two of the seven operational priorities of Strategy 2030 of the Asian Development Bank (ADB): operational priority 3 (tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability); and operational priority 4 (making cities more livable).13 This will be achieved by developing more efficient, safe, green, and sustainable logistics systems as identified in ADB’s country operations business plan for the PRC, 2019–2021.14

12. Lessons. The project leverages the partnership established through implementing development interventions with the Shaanxi Provincial Government and incorporating lessons

11 Shaanxi Provincial Government. 2016. Implementation Plan for Greenhouse Gas Emission Control during the Thirteenth Five-Year Plan in Shaanxi Province. Xi'an. 12 Shaanxi Provincial Government. 2015. Medium- and Long-Term Logistics Plan of Shaanxi Province, 2015–2020. Xi’an. 13 ADB. 2018. Strategy 2030–Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific. Manila. 14 ADB. 2019. People’s Republic of China: Country Operations Business Plan (2019-2021). Manila.

4 from other relevant projects on logistics and transport development, agricultural value chain, and market connectivity.15 For example, the Xi’an Urban Road Network Improvement Project provided insights for a centralized project management organization rather than a distributed management structure; the Hubei–Xiangyang logistics planning study underscored the importance of spatial planning for efficient logistics operations; and the Chongqing Integrated Logistics Demonstration Project is supporting the creation of green and sustainable logistics in a large city.

13. Demonstration effect. The climate-friendly, green, and intelligent logistics facilities will support capacity building in Shaanxi Province to achieve net zero emissions logistics infrastructure based on the best practices followed by some of the leading international private logistics service providers. The experience and knowledge gained from the innovative designs and interventions can be replicated in other cities in and outside the PRC through workshops and regional forums like the ADB transport forum.

14. Relevance in the COVID-19 situation. In emergency pandemic situations, it is essential to maintain supply chains for essential goods and services. In line with the recommendations of the Food and Agriculture Organization of the United Nations, the project enables better logistics facilities and processes to store food and agricultural produce, and supports maintenance of market access and distribution channels.16 The facilities developed by the project will also strengthen Shaanxi Province’s capacity to store and distribute medicine and vaccines. The smart features designed in the project will enable better quality assurance and efficient inventory management of medical products. Also, the project will introduce sanitary and phytosanitary processes in the cold storage facilities that help in the containment of animal-borne diseases, zoonoses, and contaminants.

B. Project Description

15. The project is aligned with the following impact: green economic development in Shaanxi Province enhanced (footnote 12).

16. The project will have the following outcome: low-carbon, efficient, and climate-friendly logistics services in Shaanxi Province improved.17

17. Output 1: Low-carbon and intelligent logistics facilities and transport systems designed and demonstrated. This output will develop low-carbon and intelligent logistics facilities and transport systems in strategic locations throughout Shaanxi Province. In the three logistics parks—the Hi-Tech City Park in Xi’an, Civilian Aerospace Park in Xi’an, and Yan’an Green Urban District Demonstration Area (YGUDDA)—the project will introduce efficient cold storage warehouses with high-level technology inventory management systems and modern sanitary and phytosanitary measures. Also, warehouse facilities incorporating low-carbon design and energy efficiency will be developed in the Railroad Multimodal Commodity Logistics Park in Xi’an, Ankang Hengkou Demonstration Zone, and YGUDDA to handle storage and distribution of materials, consumer goods, and commodities. The cold storage facility in the YGUDDA will be developed as an underground storage facility that reduces ambient storage temperature and saves energy and related GHG emissions. The space above the underground facility will be

15 ADB. 2011. PRC: Xi'an Urban Road Network Improvement Project; ADB. 2016. PRC: Chongqing Integrated Logistics Demonstration Project; and ADB. 2018. Technical Assistance to the People’s Republic of China for the Hubei Xiangyang Integrated Sustainable Transportation and Logistics Planning and Strategic Study. Manila. 16 Food and Agriculture Organization of the United Nations. 2020. Responding to the Impact of the COVID-19 Outbreak on Food Value Chains Through Efficient Logistics. Rome. 17 The design and monitoring framework is in Appendix 1.

5 converted into a 24,000 square meter (m2) green park for public use. All the facilities will incorporate sponge city techniques, such as rainwater harvesting and use of porous concrete in open spaces and will earmark 35% of the land to be developed as green areas.18

18. Output 2: Institutional capacity strengthening program designed and implemented. This output will (i) develop an integrated ICT system maintained by the SPTD to enhance the government’s capacity to manage real-time traffic monitoring, optimize route planning, and enable sharing of operational data between the logistics providers; (ii) provide a financial intermediation loan (FIL) to the Bank of Communications (BOC) in Xi’an to provide financing to SMEs in the logistics industry; and (iii) provide implementation support through the project management consultant (PMC) to coordinate, track project progress, and monitor implementation of the project components following ADB implementation requirements. The funding arrangement to SMEs will facilitate the provision of greener and more efficient logistics services, and also support gender inclusiveness by earmarking at least 30% of the financing for SMEs managed by women.

19. Output 3: Knowledge on green intelligent transport and logistics management shared and replicated. The output will (i) expose the project implementing entities (PIEs) to international best practices outside the PRC and roll out training programs focused on these best practices and low-carbon technologies; (ii) roll out knowledge-sharing programs, workshops and publications, and Shaanxi logistics expos; and (iii) train the SPTD to review its priorities, and identify future challenges and opportunities for logistics management in Shaanxi Province. The Shaanxi experience will be disseminated through national and international fora thereby facilitating the replication of best practices of the Project within and outside the PRC.

C. Value Added by ADB

20. ADB and German development cooperation through KfW supported the government in designing the project by providing expert resources to incorporate international best practices.19 In addition, ADB’s intervention helped develop the SPTD’s capacity to include green and low- carbon design components in the project, including concepts that improve the efficiency of operations.20 A joint report with KfW was prepared, which resulted in incorporating additional low- carbon development features in the project design, such as solar-based power, the construction of energy management systems for the logistics facilities, and sponge city elements.21 The project has further developed the work done by other development partners, such as the World Bank and German development cooperation through KfW, to green the sector and lower GHG emissions.22 The project was designed to have a significant impact in Shaanxi Province; this scale of intervention was made possible through cofinancing from German development cooperation through KfW. In addition, through the financial intermediation loan component, the project will help SMEs to access additional private domestic financing, including from the identified entrusted bank. This will help the SMEs transform their operations to adopt green and smart business practices.

18 Sponge city techniques in logistics facilities refers to structures that are designed to absorb rainwater and utilize it to reduce floods. 19 ADB. PRC: Shaanxi Transport and Logistics Port Project. 20 Summary of Innovation Features (accessible from the list of linked documents in Appendix 2). 21 Report on Low-Carbon Development, Green Logistics, and Environmentally Sustainable Infrastructure Design (accessible from the list of linked documents in Appendix 2). 22 Sector Assessment (Summary): Transport (Multimodal Logistics) (accessible from the list of linked documents in Appendix 2).

D. Summary Cost Estimates and Financing Plan

21. The project is estimated to cost $804.08 million (Table 1).

Table 1: Summary Cost Estimates ($ million) Item Amounta A. Base Costb 1. Low-carbon and intelligent logistics facilities and transport systems designed and demonstrated 644.97 2. Institutional capacity strengthening program designed and implemented 73.79 3. Knowledge on green intelligent transport and logistics management shared and replicated 6.60 Subtotal (A) 725.35 B. Contingenciesc 74.51 C. Financial Charges During Implementationd 4.22 Total (A+B+C) 804.08 Note: Numbers may not sum precisely because of rounding. a Includes taxes and duties of $67.69 million to be financed from the government resources either as cash contribution or exemption. Such amount does not represent an excessive share of the project cost. b In September 2020 prices: CNY6.8384=$1.00. c Physical contingencies are computed at 5% for civil works. Price contingencies for all procurement and consulting services are based on Asian Development Bank cost escalation factors. Includes a 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 5-year United States dollar fixed swap rate of 0.459% plus an effective contractual spread of 0.5% and maturity premium of 0.10%. Commitment charges for the ordinary capital resources loan are 0.15% per year to be charged on the undisbursed loan amount. Source: Asian Development Bank estimates.

22. The government has requested a regular loan of $200.00 million from ADB’s ordinary capital resources to help finance the project. The loan will have a 25-year term, including a grace period of 6 years; an annual interest rate determined in accordance with ADB’s London interbank offered rate (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 15.75 years, and the maturity premium payable to ADB is 0.10% per year.

23. The summary financing plan is in Table 2. ADB will finance expenditures in relation to works, goods, consultants, and capacity building. The government will ensure that counterpart funds for the project are provided in a timely manner. German development cooperation through KfW will provide parallel loan cofinancing in euros equivalent to $200 million. The co-financing will fund warehouse facilities in the five logistics parks that are not covered by ADB financing, which includes construction of at least three warehouse facilities in the three cities. Detailed cost estimates by expenditure category and by financiers are included in the project administration manual (PAM).23

23 Project Administration Manual (accessible from the list of linked documents in Appendix 2).

Table 2: Summary Financing Plan Amount Share of Total Source ($ million) (%) Asian Development Bank Ordinary capital resources (regular loan) 200.00 24.90 German development cooperation through KfW (loan) 200.00 24.90 Government of the People’s Republic of China 404.08 50.20 Total 804.08 100.00 Note: Percentages may not total 100% because of rounding. Source: Asian Development Bank estimates.

24. Climate finance. Climate mitigation is estimated to cost $416.09 million of which $119.60 will be financed by ADB and climate adaptation is estimated to cost $50.42 million of which $14.06 million will be financed by ADB. ADB will finance 28.74% of mitigation costs and 27.88% of adaptation costs. Details are in the project administration manual (footnote 23).

E. Implementation Arrangements

25. The SPTD will be the executing agency for the project. The Foreign Capital Utilization Center (FCUC) of the SPTD will be the implementing agency. The FCUC will establish the project management office under the SPTD. The five PIEs, which are state-owned enterprises, as owners of the facilities, will implement the different components of the project under the FCUC’s coordination. The PIEs are (i) Shaanxi Railway Investment Logistics Company Limited, (ii) Yan’an New District Municipal Public Utilities Company Limited, (iii) Ankang Henkou Demonstration Zone Investment and Development Corporation, (iv) Shaanxi Provincial Traffic Monitoring and Operations Center, and (v) Shaanxi Provincial Communication investment Group Company Limited. The Ministry of Finance will relend to Shaanxi Provincial Finance Department (SPFD); the SPFD will onlend to the SPTD, Yan’an City Government, and Ankang Municipal Government and who will further onlend to the PIEs. The provision of FIL under output 2 will be administered by Shaanxi Provincial Communication Investment Group Co. Ltd., for which an FIL account will be established at the BOC Shaanxi under an FIL facility management agreement between the SPFD and BOC. Specific selection criteria, such as modernizing operations of SMEs by using green and smart practices, will be used. Also, funds flow and accounting arrangements for the FIL are provided in the PAM (footnote 23). The FCUC will recruit the PMC to assist with project management, technical support, safeguards monitoring and implementation of the social development action plan, and the communication strategy. The PMC will also cater to the reporting needs of ADB and KfW. The implementation arrangements are summarized in Table 3 and described in detail in the PAM (footnote 23). The project implementation period is 6 years.

Table 3: Implementation Arrangements Aspects Arrangements Implementation period January 2021–January 2027 Estimated completion date January 2027 Estimated loan closing date July 2027 Management (i) Oversight body Project steering committee Director general, SPTD (chair) Representative(s) from the Shaanxi Provincial Development Reform Committee; representative(s) from the Shaanxi Provincial Finance Department; deputy director general, SPTD; and representatives from other relevant government agencies and townships (members) (ii) Executing agency SPTD (iii) Implementing agency Foreign Capital Utilization Center, SPTD Procurement OCB (with international advertisement) 6 contracts $40.23 million

Aspects Arrangements OCB (with national advertisement) 12 contracts $313.37 million Consulting services QCBS, CQS, and/or ICS (as appropriate) 4 packages $6.01 million Retroactive finance and Advance contracting will include four work packages. Retroactive financing will advance contracting apply up to 20% of the loan amount for expenditures incurred prior to loan effectiveness, but not earlier than 12 months prior to the signing of the loan agreement. Disbursement The loan proceeds will be disbursed following ADB’s Loan Disbursement Handbook (2017, as amended from time to time) and detailed arrangements agreed between the government and ADB. ADB = Asian Development Bank, CQS = consultants’ qualification selection, ICS = international consultant selection OCB = open competitive bidding, QCBS = quality- and cost-based selection, SPTD = Shaanxi Provincial Transport Department. Source: ADB estimates. III. DUE DILIGENCE

A. Technical

26. The project is technically viable based on the feasibility studies conducted separately for the components under output 1 (para. 17) and the provincial logistics information and communication technology system of output 2 (para. 18). The studies of the logistics parks included the following attributes: (i) technical design of the facilities to meet the projected demand; (ii) location, scale, and layout; (iii) traffic management; and (iv) the construction plan. Suitable engineering solutions were selected based on cost-effectiveness; climate, environmental, and social impacts; and compliance with domestic standards in the PRC consistent with the adoption of international best practices.

B. Economic and Financial Viability

27. Economic analysis. The economic viability of the project and its outputs were assessed. The project is economically viable, with an estimated economic internal rate of return of 12.7% and a net present value of CNY1,833.1 million at a 9.0% discount rate. All project outputs are economically viable. Six categories of economic benefits have been quantified: (i) reductions in GHG emissions; (ii) cost savings in the handling of cargo, particularly through automated loading and unloading operations; (iii) savings from the reduction of traffic congestion; (iv) additional storage space; (v) reductions in transport costs; and (vi) reductions in shipping time. Also, the project will generate benefits from reduced air pollution (other than GHGs) and traffic crashes, but these have not been quantified because of the lack of available data. Sensitivity analysis shows that the project remains economically viable under likely scenarios. The capital cost would have to increase by 38% or total benefits would have to decrease by 22% for the rate of return to decrease to the threshold.24

28. Financial analysis. The analysis included (i) financial evaluations of the revenue- generating components to determine the project’s financial viability and (ii) an incremental recurrent cost analysis of the SPTD to examine the project’s financial sustainability.25 The financial evaluations reveal that the financial internal rate of return of each revenue- generating subproject exceeds the weighted average cost of capital, indicating that the project is financially viable. Sensitivity analysis indicated that the project remains financially viable when it is influenced by adverse changes in key quantifiable variables. Due diligence conducted on BOC, the entrusted bank, confirmed that it is financially sound and meets the financial obligations and

24 Economic Analysis (accessible from the list of linked documents in Appendix 2). 25 Financial Analysis (accessible from the list of linked documents in Appendix 2).

ADB’s eligibility criteria for the proposed FIL component. Integrity due diligence confirmed that BOC complies with ADB’s integrity standards.

C. Sustainability

29. The SPTD will be responsible for funding the costs of operation and maintenance (O&M) of the project. The financial sustainability analysis demonstrates that the SPTD will have sufficient financial resources to cover the incremental recurrent costs for O&M for the project. Further, the PIEs are exploring engagement of private sector entities for O&M. Two of the five PIEs—Ankang Henkou Demonstration Zone Investment and Development Corporation, and Shaanxi Provincial Communication Investment Group Co. Ltd. will explore forming a strategic alliance with leading private sector logistics management companies to operate and maintain the facilities. Further, a commercial bank will implement the FIL component. The facilities incorporate climate-friendly solutions, such as use of renewable energy sources and water conservation adopting sponge city methods. Smart systems used in the projects enable data-based management solutions. Based on the climate risk and adaptation assessment, various adaptation options were proposed to address future climate risks. These include designing sufficient cooling capacity and adopting equipment with high energy efficiency for the extreme high temperature risks and increasing design standards for stormwater management systems for an increase of 6%–10% flooding intensity. The subprojects are required to develop appropriate operational procedures to adapt to and minimize climate risks. These initiatives, coupled with strong commitments by the SPTD and PIEs, make the project interventions sustainable.

D. Governance

30. Financial management. The financial management assessment was conducted in accordance with ADB’s Financial Management Assessment Technical Guidance Note.26 An assessment of the financial management capacity of the executing agency, implementing agency, and PIEs confirmed that all have adequate financial management systems and procedures in place to implement the project efficiently. The financial management risk is rated moderate. Given that the PIEs are less familiar with ADB loan proceeds disbursement requirements and procedures, a financial management specialist has been included in the PMC team, and on-the-job training in ADB disbursements will be provided to improve project implementation efficiency further.

31. Procurement and anticorruption. A strategic procurement planning review was carried out to identify procurement risks, develop mitigating measures, review procurement options, and agree on fit-for-purpose procurement arrangements, considering the procurement capacity of the PIEs, executing agency, and implementing agency, as well as the market context. Value for money will be achieved by using advance contracting as well as counterpart financing to leverage implementation efficiency from procurement-ready packages. ADB’s Anticorruption Policy (1998, as amended to date) was explained to and discussed with the government. The specific policy requirements and supplementary measures are described in the PAM (footnote 23).

E. Poverty, Social, and Gender

32. The project will benefit citizens in three project cities, including 7.32 million women (49.02%), 5.33 million rural residents (35.71%), 0.38 million poor people (2.54%), and 0.13 million ethnic minority people (0.90%). The development of a transport and logistics management system

26 ADB. 2015. Financial Management Technical Guidance Note. Manila.

10 throughout Shaanxi will provide a more livable environment, contribute to improved health outcomes, lower GHG emissions, and support business development needs of SMEs in Shaanxi Province. Likewise, the project will directly create 973 job opportunities during construction and 904 during the operation period.

33. The project is categorized some gender elements. Gender assessment was conducted, and the project identified opportunities to strengthen skills training for women, particularly in green and smart logistics management. Interviews and survey with the Shaanxi Women’s Enterprise Association and female-owned logistics operators indicate that SMEs led by women continue to face barriers in accessing financial services and knowledge on green logistics. A social development and gender action plan (SDGAP) has been developed to support the following: (i) public–private partnership and green logistics skills training opportunities for at least 30% women staff of the SPTD and PIEs, (ii) training on new IT skills is conducted for at least 80% of the female IT professionals in the SPTD, (iii) at least 30% of SMEs financed through the FIL are led by women, (iv) at least 50% of the participants in the awareness-raising activities about green and intelligent logistics are women, (v) at least 30% of jobs generated by the project are provided to women, and (vi) sex-disaggregated data is collected.27 A social and gender development specialist will be engaged for SDGAP implementation. Semiannual SDGAP monitoring and reporting will be carried out by an external monitor.

F. Safeguards

34. Environment (category B). Initial environmental examinations, including environmental management plans (EMPs), were prepared following ADB’s Safeguard Policy Statement (2009) and the PRC national regulations for the project. An environment and social management system was developed for the FIL component. The executing and implementing agencies are committed to implementing the agreed EMPs and environment and social management system. None of the subprojects will involve environmentally sensitive ecosystems or cultural heritage sites. The FIL will exclude environment category A subprojects from ADB financing. Potential impacts during construction and operation—including soil erosion, noise, dust emissions, construction waste and wastewater, and occupational and community health and safety—are mostly temporary, predictable, and reversible, and can be mitigated through adherence to national regulations and implementation of the EMPs. Potential impacts during operation—which include wastewater, locomotive and vehicle exhaust, dust generated from loading and unloading, noise and vibration, domestic and kitchen waste, packaging and hazardous (oily) waste, and occupational and community health and safety—will be mitigated through the implementation of the EMPs. Meaningful public consultations have been conducted. Grievance redress mechanisms will be established. Sufficient budget has been allocated in the EMPs to ensure proper implementation of mitigation and monitoring measures during construction and operation. Environmental monitoring reports will be submitted to ADB semiannually during construction and annually during operation. Initial environmental examinations will be updated as necessary and disclosed on the ADB website if unanticipated impacts are identified during project implementation. A climate risk and adaptation assessment has been conducted and the findings of the assessment will be incorporated in the project design.

35. Involuntary resettlement (category B). A total of 2,035.26 mu of land is required for implementing facilities identified in output 1 (para. 17).28 All prior land acquisition and house demolition conducted were not in anticipation of ADB financing. Except for the Civilian Aerospace

27 Social Development and Gender Action Plan (accessible from the list of linked documents in Appendix 2). 28 A mu is a Chinese unit of measurement (1 mu = 666.67 m2).

Park (where limited information was obtained during due diligence, land acquisition, and resettlement), implementation for the other facilities were assessed based on ADB’s Safeguard Policy Statement requirements.29 There are no outstanding or legacy issues on the land allocated for the Railroad Multimodal Commodity Logistics Park and YGUDDA facilities. However, for the Ankang Inland Port Logistics Park subproject, there are 175 households affected by land acquisition that have yet to receive their compensation payment by December 2020. In the Hi- City Park in Xi’an there are 24 affected households that received full payment but are still in transition as construction of their permanent relocation houses is yet to be completed.30 The respective PIEs have committed to time-bound corrective actions as specified in the due diligence reports. Further, an external monitor will be engaged, and semiannual monitoring reports will be submitted to ADB. Under the FIL component, subprojects classified as category A or B for involuntary resettlement are excluded from ADB financing.

36. Indigenous peoples (category C). The population of scattered ethnic minorities in the three project cities accounts for 0.9% of the total municipal population. The project will benefit all residents, and it does not have differential impacts on any specific ethnic minority communities that would trigger ADB’s indigenous peoples policy requirements. The social analysis has confirmed that they will not suffer any adverse impacts because of the project.31 Under the FIL component, subprojects classified as category A or B for indigenous peoples are excluded from ADB financing.

G. Summary of Risk Assessment and Risk Management Plan

37. Significant risks and mitigating measures are summarized in Table 4 and described in detail in the risk assessment and risk management plan.32

Table 4: Summary of Risks and Mitigating Measures Risks Mitigation Measures Inefficient O&M of A study on future improvements in logistics will be conducted under the logistics facilities project. The best practices identified will be incorporated in O&M of the facilities. PIEs staff will be trained on new methods to operate and maintain logistics facilities. A study tour to countries with advanced logistics systems will be undertaken as part of knowledge sharing and best practice assimilation of efficient management of logistics facilities. Training programs will be conducted for enhancing operational skills in green and smart logistics for the private sector small and medium-sized enterprises participating in the financial intermediation loan component. High turnover among Training manuals will be prepared, and capacity acquired during training SPTD staff negatively and workshops will be shared with other SPTD staff through internal affects project knowledge sharing. implementation Integrated ICT processes A working group comprising PIEs’ ICT staff will be established to lead and not realized because of coordinate the ICT systems design for all the facilities. lack of coordination in PIEs’ development of IT systems

29 Due diligence was carried out during the coronavirus disease (COVID-19) pandemic but direct personal contact and access to information were limited. The land was reportedly acquired in 2011, and there are no outstanding and legacy issue. Further due diligence will be carried out and the due diligence report will be submitted to ADB for review and concurrence by December 2020. 30 All 24 households received rental allowance during transition. Relocation to permanent houses is expected to be completed by December 2022. 31 Poverty, Gender, and Social Analysis (accessible from the list of linked documents in Appendix 2). 32 Risk Assessment and Risk Management Plan (accessible from the list of linked documents in Appendix 2).

ICT = information and communication technology, IT = information technology, O&M = operation and maintenance, PIE = project implementing entity, SPTD = Shaanxi Provincial Transport Department. Source: Asian Development Bank.

IV. ASSURANCES

38. The government and the FCUC have assured ADB that implementation of the project shall conform to all applicable ADB requirements, including those concerning anticorruption measures, safeguards, gender, procurement, consulting services, financial management, and disbursement as described in detail in the PAM and loan documents.

39. The government and the FCUC have agreed with ADB on certain covenants for the project, which are set forth in the draft loan agreement and project agreement.

V. RECOMMENDATION

40. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Asian Development Bank (ADB) and recommend that the Board approve the loan of $200,000,000 to the People’s Republic of China for the Shaanxi Green Intelligent Transport and Logistics Management Demonstration Project, from ADB’s ordinary capital resources, in regular terms, with interest to be determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility; for a term of 25 years, including a grace period of 6 years; and such other terms and conditions as are substantially in accordance with those set forth in the draft loan and project agreements presented to the Board.

Masatsugu Asakawa President

17 November 2020

Appendix 1 13

DESIGN AND MONITORING FRAMEWORK

Impact the Project is Aligned with Green economic development in Shaanxi Province enhanced (Medium- and Long-Term Logistics Plan of Shaanxi Province, 2015–2020) a Data Sources and Performance Indicators with Reporting Risks and Critical Results Chain Targets and Baselines Mechanisms Assumptions Outcome By 2027: Low-carbon, efficient, and a. Growth rates of logistics a. Annual statistics R: Inefficient O&M of climate-friendly logistics industry in Shaanxi Province and report of Shaanxi logistics facilities services in Shaanxi Xi’an City are more than 20 Province Province improved basis points higher than the A: Timely gross domestic product growth materialization of KfW rate (2019 baseline: 8.26%) parallel financing arrangement b. 69,000 tons CO2 net carbon b. Annual report of footprint reduced per yearb SPTDd (2020 baseline: 0) (RFI A) Outputs By 2026: 1. Low-carbon and 1a. At least 5 million m2 low- 1a–d. Annual report of intelligent logistics carbon, climate-resilient, and SPTD facilities and transport high-quality infrastructure systems designed and logistics management facilities demonstrated constructed (2020 baseline: 0) (RFI B)

1.b At least 100,000 m2 green space constructed (2020 baseline: 0) (RFI B)

1c. At least 10 gender- and disability-inclusive design features included in the facilities constructedc (2020 baseline: 0) (RFI B)

1d. At least five smart energy- efficient technologies installed (2020 baseline: 0) (RFI C)

2. Institutional capacity 2a. One enhanced digital 2a–d. Annual report of R: High staff turnover strengthening program monitoring and management SPTD among relevant SPTD designed and platform installed and divisions may affect implemented implemented knowledge transfer (2020 baseline: 0) (RFI D)

2b. At least one private sector O&M modality implemented (2020 baseline: 0) (RFI D)

2c. At least three eligible logistics operators of SMEs provided with financial intermediary loan (2020 baseline: 0) (RFI D)

2d. At least 30% of SMEs financed are led by womene (2020 baseline: 0) (RFI E)

14 Appendix 1

Data Sources and Performance Indicators with Reporting Risks and Critical Results Chain Targets and Baselines Mechanisms Assumptions 3. Knowledge on green 3a. At least 80% of female IT 3a–d. Participants’ intelligent transport and professionals in SPTD trained feedback survey report logistics management on the new platform (2020 and SPTD annual report shared and replicated baseline:0) (RFI F) (section on internal operational activities); 3b. At least 100 SPTD staff, SPTD quarterly reports including project implementing on the components or entity’s staff (30% women), aspects of the project trained and report improved that is adopted for use knowledge on PPP and green amongst project logistics (2020 baseline: 0) implementing entities (RFI F)

3c. At least 100 SPTD staff and 10 persons from SMEs who participated in 1 national and 1 international knowledge sharing seminars and conferences have improved knowledge and/or demonstrated innovative project design methods in transport and logistics management (2020 baseline: 0)

3d. Knowledge on best practices from project share in 2 international fora with at least 50 participants each and with at least 1 other province. (2020 baseline: 0)

Key Activities with Milestones 1. Low-carbon and intelligent logistics management facilities and transport systems designed and demonstrated 1.1 Complete detailed design for civil works and facilities (Q4 2021). 1.2 Commence IT system procurement (Q2 2022). 1.3 Mobilize supervision consultants (Q4 2021). 1.4 Complete construction of facilities and implementation of equipment (Q1 2023–Q1 2024). 2. Institutional capacity strengthening program designed and implemented 2.1 Design an integrated IT system (Q4 2022). 2.2 Complete system testing and trial operations (Q1 2023–Q1 2024). 2.3 Disburse financial intermediation loan to a financial intermediary (Q2 2022–Q4 2022). 2.4 Provide loans to SMEs (Q2 2022–Q3 2026). 2.5 Demonstrate initial implementation of the O&M with the private sector (Q2 2024–Q4 2024). 3. Knowledge on green intelligent transport and logistics management shared and replicated 3.1 Commence recruitment of training consultants (Q1 2021–Q2 2021). 3.2 Conduct training, study tours, and capacity strengthening (Q3 2021–Q2 2022). 3.3 Conduct thematic studies, workshops, and study tours (Q12021–Q3 2023). 3.4 Present in International fora and national forum to disseminate Shaanxi experience (Q1 2023-Q3 2026).

Project Management Activities Recruit project management consultant (Q4 2020–Q2 2021). Provide project management support through a consultant team (Q2 2021–Q1 2027). Submit annual environmental monitoring reports to ADB (Q1 2021–Q1 2027). Submit semiannual internal and external resettlement monitoring and evaluation reports to ADB (Q1 2021–Q1 2027). Implement social development and gender action plan, and communication strategy; and monitor implementation and submit semiannual social monitoring reports to ADB (Q1 2021–Q1 2027). Monitor and evaluate project impact, outcome, and outputs using the project performance management system; and submit quarterly project progress reports (Q1 2021–Q1 2027). Submit project completion report (Q3 2027).

Appendix 1 15

Inputs Asian Development Bank: $200.00 million (loan) Government of the People’s Republic of China: $404.08 million German development cooperation through KfW $200.0 million (loan) (not ADB-administered) 2 ADB = Asian Development Bank, A = assumptions, CO2 = carbon dioxide, IT = information technology, m = square meter, O&M = operation and maintenance, PPP = public–private partnership, Q = quarter, RFI = results framework indicator, R = risks, SMEs = small- and medium-sized enterprises, SPTD = Shaanxi Provincial Transport Department, tCO2e = ton of carbon dioxide equivalent. a Shaanxi Provincial Government. 2015. Medium- and Long-Term Logistics Plan of Shaanxi Province, 2015–2020. Xi’an. b Baseline footnote: CO2 emission reduction is calculated based on with-project and without-project scenarios. Without the project, total CO2 emissions would be 88,774.4 tons per year based on traffic volume and logistics development in the project areas. With the project, total CO2 emissions would be 18,807.1 tons per year. Therefore, the net CO2 savings from the project is 69,967.3 tons per year. c Such as accessible parking lots, toilets, childcare center d Shaanxi Provincial Government. 2018. Statistics Yearbook of Shaanxi Province and Statistical Bulletin of National Economic and Social Development in Shaanxi Province. Xi'an. e An SME led by a woman or women is defined as (i) a formal (registered) enterprise in the logistics services and transport sector in the People’s Republic of China with majority ownership by one or more women, or (ii) an enterprise where senior management responsibility is held by one or more women. Contribution to the ADB Results Framework: RFI A: Total annual greenhouse gas emissions reduction (tCO2e per year). Expected: 69,000 tCO2e per year. RFI B: Infrastructure assets established or improved (number). Expected: 3 assets (5 million m2 logistics management facilities; 100,000 m2 green space; gender- and disability-inclusive facilities). RFI C: Low-carbon solutions promoted and implemented (number). Expected: 5 energy-efficient technologies. RFI D: Measures supported in implementation to improve capacity of public organizations to promote the private sector and finance sector (number). Expected: 3 measures, including 2 systems (monitoring/management and O&M systems) and a $4 million loan to private operators RFI E: Women with strengthened leadership capacities (number). Expected: At least 1 of the SME-financed logistics operators is owned by women. RFI F: Women enrolled in technical and vocational education and training and other job training (number). Expected: To be determined. 80% of SPTD women staff trained on IT; 30% of SPTD women staff trained on PPP and green logistics. Source: ADB.

16 Appendix 2

LIST OF LINKED DOCUMENTS http://www.adb.org/Documents/RRPs/?id=51401-002-3

1. Loan Agreement 2. Project Agreement 3. Sector Assessment (Summary): Transport (Multimodal Logistics) 4. Project Administration Manual 5. Financial Analysis 6. Economic Analysis 7. Summary Poverty Reduction and Social Strategy 8. Risk Assessment and Risk Management Plan 9. Social Development and Gender Action Plan 10. Initial Environmental Examination: Civilian Aerospace New Town Logistics Park Subproject 11. Initial Environmental Examination: Ankang Hengkou Demonstration Zone Subproject 12. Initial Environmental Examination: Xi’an High-tech New Town Logistics Park Subproject 13. Initial Environmental Examination: Railroad Multimodal Bulk Commodity Logistics Park in Xi’an Subproject 14. Initial Environmental Examination: Yan’an Green Urban District Demonstration Area Subproject

Supplementary Documents 15. Indicative Knowledge Sharing and Best Practices Plan 16. Report on Low-Carbon Development, Green Logistics, and Environmentally Sustainable Infrastructure Design 17. Summary of Innovation Features 18. Social Safeguard Due Diligence Report: Civilian Aerospace New Town Logistics Park Subproject 19. Social Safeguard Due Diligence Report: Ankang Hengkou Demonstration Zone Subproject 20. Social Safeguard Due Diligence Report: Xi’an High-tech New Town Logistics Park Subproject 21. Social Safeguard Due Diligence Report: Railroad Multimodal Bulk Commodity Logistics Park in Xi’an Subproject 22. Social Safeguard Due Diligence Report: Yan’an Green Urban District Demonstration Area Subproject 23. Poverty, Gender, and Social Analysis