Technical Assistance Consultant’s Report Project Number: 46048-001 March 2014 People’s Republic of China: Jilin Urban Development Project FINAL REPORT (Volume I of V) Prepared by HJI Group Corporation Costa Mesa, CA, USA. For Jilin Provincial Government This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design. CURRENCY EQUIVALENTS (As of 15 January 20141) Currency Unit – yuan (CNY) CNY 1.00 = $ 0.1667 $1.00 = CNY 6.000 ABBREVIATIONS 1 Due to the uncertainty of future change of the exchange rate, a fixed currency exchange rate is assumed and used for the analysis of the project. WEIGHTS AND MEASURES NOTE In this report, "$" refers to US dollars. Jilin Urban Development Project (TA 8172-PRC) Final Report March 24, 2014 Mr. Arnaud Heckmann Project Manager Urban Development Specialist East Asia Department Asian Development Bank Manila, Philippines Re: Draft Final Report Submission Jilin Urban Development Project (TA 8172-PRC) Dear Mr. Heckmann: The PPTA Consultant, HJI Group Corporation (HJI), is pleased to submit the Final Report for the referenced project for your review and approval. The report was prepared based on the project Terms of Reference and summarized the study and assessment results during the PPTA process.. Should you have any questions regarding the submission, please do not hesitate to contact me. Very Truly Yours, HJI Group Corporation Yinbo Liu, PhD, PE Team Leader Encl. Cc: Jim Qin (w/o enclosure) file 2 Jilin Urban Development Project (TA 8172-PRC) Final Report Table of Contents ACKNOWLEDGEMENTS .......................................................................................................... 8 MAPS ........................................................................................................................................ 9 EXECUTIVE SUMMARY ......................................................................................................... 17 I. THE PROPOSAL .............................................................................................................. 22 A. PROJECT BACKGROUND ....................................................................................... 22 B. BAISHAN CITY ......................................................................................................... 23 B.1 Natural Conditions .............................................................................................. 24 B.2 Urban Development Master Plan ........................................................................ 24 B.3 Subproject Rationale and Justification ................................................................ 28 C. BAICHENG CITY ....................................................................................................... 31 C.1 Natural Conditions .............................................................................................. 32 C.2 Urban Development Master Plan ........................................................................ 32 C.3 Subproject Components ..................................................................................... 37 C.4 Subproject Rationale and Justification ................................................................ 38 II. THE PROJECT ................................................................................................................. 41 A. RATIONALE .............................................................................................................. 41 B. IMPACT AND OUTCOME .......................................................................................... 41 C. OUTPUT .................................................................................................................... 41 D. SPECIAL FEATURES ............................................................................................... 45 E. PROJECT INVESTMENT AND FINANCING PLAN ................................................... 46 F. IMPLEMENTATION ARRANGEMENT ...................................................................... 48 G. PROJECT APPROVAL AND TIMETABLE ............................................................ 49 III. DUE DILIGENCE .............................................................................................................. 51 A. TECHNICAL AND ENGINEERING ............................................................................ 51 A.1 Improved Urban Roads, Bridges and Municipal Services in Baicheng ................ 51 A.2 Integrated Municipal Solid Waste Management System in Baicheng .................. 59 A.3 Integrated Municipal Solid Waste Management in Baishan ................................. 63 A.4 Improved Water Supply Management in Baishan ............................................... 68 A.5 Contract Packaging............................................................................................. 75 A.6 Improved Capacity & Institutional Arrangement .................................................. 76 B. BAICHENG URBAN DEVELOPMENT ANALYSIS .................................................... 78 C. FINANCIAL ANALYSIS ............................................................................................. 83 C.1 Introduction ......................................................................................................... 83 C.2 Financial Sustainability Analysis for Non Revenue Generating Subcomponent ... 86 D. ECONOMICS ANALYSIS .......................................................................................... 90 D.1 Introduction ......................................................................................................... 90 D.2 Justification ......................................................................................................... 90 D.3 Demand Analysis ................................................................................................ 92 D.4 Economic Returns .............................................................................................. 94 E. ENVIRONMENTAL ANALYSIS ................................................................................. 95 5 Jilin Urban Development Project (TA 8172-PRC) Final Report E.1 Background ........................................................................................................ 95 E.2 Positive Impacts and Environmental Benefits...................................................... 95 E.3 Potential project impacts and mitigation measures ............................................. 98 E.4 Public consultation, information disclosure, and grievance redress mechanism (GRM). ......................................................................................................................... 99 E.5 Conclusions ........................................................................................................ 99 F. LAND ACQUISITION AND RESETTLEMENT ......................................................... 100 F.1 Introduction ....................................................................................................... 100 F.2 Components of the Project and Impact Scope .................................................. 100 F.3 Resettlement Principles and Entitlements ......................................................... 102 F.4 Resettlement and Livelihood Rehabilitation ...................................................... 102 F.5 Institutional Arrangement .................................................................................. 103 F.6 Cost and Schedule ........................................................................................... 103 F.7 Monitoring and Evaluation................................................................................. 103 G. POVERTY & SOCIAL ANALYSIS ....................................................................... 105 G.1 Introduction ....................................................................................................... 105 G.2 Rationale .......................................................................................................... 105 G.3 Methodology ..................................................................................................... 105 G.4 Socio-economic Profile of the Project Area ....................................................... 105 4.1 Project Areas and Beneficiaries ............................................................................ 105 4.2 Economic Development, Income, Employment and Education ............................. 106 G.5 SOCIAL IMPACT ANALYSIS ............................................................................ 107 5.1 Integrated Solid Waste Management System ....................................................... 107 5.2 Water Supply Management .................................................................................. 107 5.3 Urban Roads and Municipal Service ..................................................................... 108 G.6 Poverty Analysis ............................................................................................... 108 G.7 Gender.............................................................................................................. 109 G.8 Ethnic Minority .................................................................................................. 109 G.9 Social Risks and