Project Administration Manual Project Number: 44022 Loan Number: August 2013 People’s Republic of China: Guangxi Baise Integrated Urban Environment Improvement Project Contents I. PROJECT DESCRIPTION 1 A. Background 1 B. Detailed Description of Components 8 II. IMPLEMENTATION PLANS 1 A. Project Readiness Activities 1 B. Overall Project Implementation Plan 2 III. PROJECT MANAGEMENT ARRANGEMENTS 1 A. Project Implementation Organizations – Roles and Responsibilities 1 B. Key Persons Involved in Implementation 2 C. Project Organization Structure 4 IV. COSTS AND FINANCING 1 A. Overall Investment and Financing Plans 1 B. Detailed Cost Estimates by Expenditure Category 3 C. Allocation and Withdrawal of Loan Proceeds 4 D. Detailed Cost Estimates by Financier 5 E. Detailed Cost Estimates by Outputs/Components 6 F. Detailed Cost Estimates by Year 7 G. Contract and Disbursement S-curve 8 H. Fund Flow Diagram 9 V. FINANCIAL MANAGEMENT 1 A. Financial Management Assessment 1 B. Disbursement 2 C. Accounting 3 D. Auditing 3 VI. PROCUREMENT AND CONSULTING SERVICES 1 A. Advance Contracting and Retroactive Financing 1 B. Procurement of Goods, Works and Consulting Services 1 C. Procurement Plan 2 D. Consultant's Terms of Reference 6 VII. SAFEGUARDS 1 VIII. GENDER AND SOCIAL DIMENSIONS 1 IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 1 A. Project Design and Monitoring Framework 1 B. Monitoring 4 C. Evaluation 6 D. Reporting 6 E. Stakeholder Communication Strategy 7 X. ANTICORRUPTION POLICY 1 XI. ACCOUNTABILITY MECHANISM 1 XII. RECORD OF PAM CHANGES 1 APPENDIXES 1. DRAFT TERMS OF REFERENCE AND BUDGETS FOR CONSULTING SERVICES 2. ENVIRONMENTAL MANAGEMENT PLAN 3. PROJECT PERFORMANCE MANAGEMENT SYSTEM 4. DRAFT TRAINING PLAN Project Administration Manual Purpose and Process The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with Government and Asian Development Bank (ADB) policies and procedures. The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM. The Baise Municipal Government as project executing agency and the Baise Development & Investment Group as project implementing agency are wholly responsible for the implementation of ADB-financed projects, as agreed jointly between the borrower and ADB, and in accordance with Government and ADB’s policies and procedures. ADB staff is responsible for supporting project implementation, including compliance by Baise Municipal Government and Baise Development & Investment Group of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures. At Loan Negotiations the borrower and ADB shall agree to the PAM and ensure consistency with the Loan Agreement. Such agreement shall be reflected in the minutes of the Loan Negotiations. In the event of any discrepancy or contradiction between the PAM and the Loan Agreement, the provisions of the Loan Agreement shall prevail. After ADB Board approval of the project's report and recommendations of the President (RRP) changes in implementation arrangements are subject to agreement and approval pursuant to relevant Government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval they will be subsequently incorporated in the PAM. Abbreviations ADB = Asian Development Bank BDRC = Baise Development and Reform Commission BFB = Baise Municipal Finance Bureau BMG = Baise Municipal Government BPMO = Baise project management office BDIG = Baise Development & Investment Group DMF = design and monitoring framework DNC = Dongsun Neighborhood Committee EIA = environmental impact assessment EIR = environmental impact report EIS = environmental impact statement EMC = environmental monitoring center EMP = environmental management plan EPB = environmental protection bureau GAP = gender action plan GZAR = Guangxi Zhuang Autonomous Region GZARG = Guangxi Zhuang Autonomous Region Government ICB = international competitive bidding IEE = initial environmental examination km = kilometer km2 = square kilometer LIBOR = London interbank offered rate m3 = cubic meter NCB = national competitive bidding O&M = operation and maintenance PAM = project administration manual PIC = project implementation consultant PMO = project management office PPMS = project performance management system PRC = People’s Republic of China QBS = quality based selection QCBS = quality- and cost-based selection REMDP = resettlement and ethnic minority development plan SAP = social action plan SOE = statement of expenditure STI = sexually transmitted infection 1 I. PROJECT DESCRIPTION Borrower People’s Republic of China Classification Targeting classification: GI Sector (subsectors): Multisector (urban sector development, urban transport, water supply and sanitation) Themes (subthemes): Social development (human development) Environmental sustainability (urban environmental improvement) Gender mainstreaming: Effective gender mainstreaming Location impact: Urban (high) Environment Assessment Category B. The project initial environmental examination was uploaded to the ADB website on June 2013. Involuntary Resettlement Category A. One resettlement and ethnic minority development plan was prepared for the whole project and was uploaded to the ADB website on June 2013. Indigenous Peoples Category B. The resettlement and ethnic minority development plan defines Assessment the measures for mitigation of negative resettlement impacts on the local minority population in Dongsun area. Loan Closing Date 30 June 2019 Estimated Project Completion Date 31 December 2018 Executing Agency Baise Municipal Government Implementing Agency Baise Development & Investment Group A. Background 1. After experiencing slow growth for decades, the Guangxi Zhuang Autonomous Region (GZAR) has prospered in recent years under the government’s National Strategy for Development of the West. Annual average growth rates during the Eleventh Five-Year Plan (2006–2010) reached 13.9%. In spite of the global recession, Baise achieved a 14.9% increase in economic output in 2010; and revenues of Baise Municipal Government (BMG) increased by 27.2% during the same period. The recent surge in economic growth is reflected in the horizontal and vertical expansion of the city. The Baise City Master Plan 2010–2030 calls for expansion of the city to the south along the central peninsula bounded by the Youjiang River and to the east in the Dongcheng area. Over the next 20 years, it is planned that the city will grow eastward until it merges with the current settlement of Tian Yang Cheng Qu. Despite this encouraging trend, overall poverty levels in Baise remain high. Gross domestic product per capita in 2011 was only CNY16,106, or 54% of the national average. Nine of Baise’s 12 counties are classified as national poverty counties, while two are designated as regional poverty counties in Guangxi Region. 2. Rationale. Baise is in western GZAR and has an urban population of 260,000. Baise is one of the 14 key national poverty areas in the PRC. Dongsun subdistrict is a peri-urban area 4 kilometers (km) west of Baise’s urban center.1 The Dongsun subdistrict industrial area was developed during 1950–1960, when a number of state-owned enterprises built factories and housing for its workers in the southwest of Baise along the Youjiang River.2 During 1980–1990, these plants’ low production efficiency became increasingly apparent as subsidies to state- 1 Dongsun subdistrict covers 2.8 square kilometers. 2 The industrial area included a coal mine, nitrogen fertilizer factory, motor plant, electrical power plant, and paper mill. For more than 50 years, these industries constituted, along with government administration, much of the urban economy of Baise. 2 owned enterprises were removed and production costs were brought closer to market norms. Consequently, facilities closed, and others were sold or leased to private enterprises. Today, only the coal mine, fertilizer factory, and motor plant continue to operate in Dongsun. 3. After more than 50 years of state-led industrialization, Dongsun shoulders heavy socioeconomic and environmental burdens. Since 2008, employment has shrunk as factories closed and workers were laid off or took early retirement options. Local residents are highly dissatisfied with inadequate social services and infrastructure.3 First, current flood control capacity in the project area is unable to protect against a flood that occurs once in 50 years, which is the standard requirement. Second, without a wastewater collection system, factories and residential areas discharge untreated wastewater directly into the Dongsun stream, which flows into the Youjiang river and thus pollutes Baise’s main source of drinking water. Third, the existing urban road network in Dongsun is inadequate for planned population growth, the resulting increased activity in residential and commercial areas, and proper links with other subdistricts.4 Fourth, solid waste transportation capacity must urgently be increased to mitigate the environmental pollution currently caused by uncontrolled solid waste dumping. Further, former and current industrial facilities have left Dongsun with localized moderate soil contamination. The detailed environmental site assessment5 undertaken under phase 1 of project preparatory technical assistance (PPTA) described