Xinjiang Tacheng Border Cities and Counties Development ...

Technical Assistance Consultant’s Report

Project Number: TA 8363-PRC

November 2014

People’s Republic of China: Xinjiang Tacheng Border Cities and Counties Development Project - Phase II (46063-001)

FINAL REPORT

Volume I of V

Submitted by:

HJI Group Corporation

3200 Park Center Drive, Suite 1180, Costa Mesa, CA 92626, USA

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned. ADB and the Government cannot be held liable for its contents. All views expressed herein may not be incorporated into the proposed project’s design.

Xinjiang Tacheng Border Cities and Counties Development Project (TA 8363-PRC) Final Report

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CURRENCY EQUIVALENTS

(As of 30 November 20141)

Currency Unit – Yuan (CNY) CNY1.0000 = $ 0.167 $1.0000 = CNY 6.000

ABBREVIATIONS

3R - reduce, reuse and recycle ADB - Asian Development Bank CEIA - consolidated environmental impact assessment CHP - combined heat and power CNY - Chinese Yuan DDR - due diligence report DI - design institute DMF - design and monitoring framework DRC - development and reform commission EA - executing agency FB - finance bureau EMCG - Emin County Government EIA - environment impact assessment EIRR - economic internal rate of return EMDP - ethnic minority development plan EMP - environmental management plan EPB - environmental protection bureau FIRR - financial internal rate of return FMA - financial management assessment FSR - feasibility study report GAP - gender action plan GDP - gross domestic product GHG - greenhouse gases GRM - grievance redress mechanism HCB - Housing and Construction Bureau IA - implementing agency ITS - intelligent transportation system LAR - land acquisition and resettlement LTND - Liaota New District Commission MOF - Ministry of Finance WRB - Water Resource Bureau MSW - municipal solid waste NDRC - National Development and Reform Commission NMT - non-motorized traffic OD - origin-destination O&M - operation and maintenance PAM - Project Administration Manual PCU - passenger car unit PLG - project leading group PMO - project management office PPMS - project performance monitoring system

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.


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PPTA - project preparatory technical assistance PRC - People’s Republic of China PSA - poverty and social assessment PVEC - present value of economic costs RP - resettlement plan SPRSS - summary poverty reduction and social strategy

SPS - Safeguard Policy Statement TA - Technical Assistance TLCG - Tuoli County Government TCMG - Tacheng Municipal Government TOR - terms of reference TPG - Tacheng Prefecture Government WACC - weighted average cost of capital WWTP - wastewater treatment plants XUAR - Xinjiang Uygur Autonomous Region YMCG - Yumin County Government

WEIGHTS AND MEASURES

kg - kilogram km L

- -

kilometer liter

m2 - square meter m3 - cubic meter cm - centimeter mu - Chinese land measuring unit (1 hector = 15 mu) t - ton (1,000 kg)


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Table of Contents

Project Maps .......................................................................................... 11

EXECUTIVE SUMMARY ......................................................................... 18

I. THE PROPOSAL ............................................................................... 25

A. PROJECT BACKGROUND ......................................................................... 25

1.2 TACHENG PREFECTURE .......................................................................... 27

1.3 TACHENG CITY .......................................................................................... 31

1.3.1. Natural Conditions .............................................................................. 31

1.3.2. Urban Development Master Plan ....................................................... 32

1.4 EMIN COUNTY ............................................................................................ 35



1.5 TUOLI COUNTY .......................................................................................... 40



1.6 YUMIN COUNTY ......................................................................................... 45



1.7 PROJECT RATIONALE AND JUSTIFICATION ......................................... 49

II. THE PROJECT ............................................................................... 52

A. Project Impact and Outcome .................................................................... 52

B. Project Outputs .......................................................................................... 52

C. Project Special Features ........................................................................... 55

D. Project Cost Estimates and Financing Plan ............................................ 56

E. Implementation Arrangement ...................................................................... 57

F. Project Approval and Timetable .................................................................. 59

G. Key Issues .................................................................................................. 61

III. DUE DILIGENCE ............................................................................ 63

A. Engineering and Technical Assessment ................................................. 63


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A.1 Tacheng Subproject ............................................................................... 63

A.2 Emin Subproject ..................................................................................... 74

A.3 Tuoli Subproject ..................................................................................... 79

A.4 Yumin Subproject ................................................................................... 80

B. Urban Roads and Bridges ......................................................................... 84

B.1 Introduction ............................................................................................. 84

B.2 Proposed Roads ..................................................................................... 84

B.3 Technical standards ............................................................................... 84

B.4 Engineering Geology.............................................................................. 84

B.5 Engineering Design ................................................................................ 85

B.6 Conclusion and suggestions ................................................................. 86

C. Kalanggur River Rehabilitation ................................................................. 87

C.1 Introduction ............................................................................................. 87

C.2 The area of the river rehabilitation ........................................................ 87

C.3 Flood control standard ........................................................................... 88

C.4 Water Surface Elevation ......................................................................... 88

C.5 Riverbed Erosion Depth ......................................................................... 89

C.6 The peak values of flood discharges at the key section ..................... 90

C.7 The river width after rehabilitation ........................................................ 90

C.8 The design of the Embankments .......................................................... 90

Conclusion and ............................................................................................. 95

C.9 Recommendations ................................................................................. 95

D. District Heating .......................................................................................... 96

D.1 Heating Sector in PRC ............................................................................ 96

D.2 Heating Sector in XUAR ......................................................................... 98

D.3 Due Diligence .......................................................................................... 99

E. Municipal Solid Waste Management ......................................................... 103

E.1 Introduction ........................................................................................... 103

E.2 Project Background.............................................................................. 104

E.3 Project rationales and justifications ................................................... 106

E.4 Project Summary and MSW Scheme .................................................. 109

E.5 Demands and supply analysis ............................................................ 111

E.6 Detailed engineering analysis ............................................................. 112

E.7 Recommendations ............................................................................... 116

F. Urban Development Analysis ..................................................................... 117

F.1 Introduction ........................................................................................... 117

F.2 Urban development at Tacheng Prefecture ........................................ 118

F.3 Urban Development Master Plan ......................................................... 121

F.4 Urban Road Network Analysis ............................................................ 123

F.5 Traffic Forecast ..................................................................................... 126

F.6 Conclusions and Recommendations .................................................. 130

G. Water Supply and Sanitary Sewer .......................................................... 131


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G.1 Tacheng Water Supply and Sanitary Sewer ....................................... 131

G.2 Emin County Water Supply and Sanitary Sewer ................................ 135

H. Financial Analysis .................................................................................... 138

H.1 Financial Management Assessment ................................................... 138

H.2 Financial Analysis for Xinjiang Tacheng Project ............................... 145

I. ECONOMIC ANALYSIS ............................................................................... 150

I.1 Introduction ........................................................................................... 150

I.2 Justification and Demand .................................................................... 150

I.3 Methodology and Assumptions .......................................................... 153

I.4 Least-Cost Analysis ............................................................................. 153

I.5 Economic Returns ................................................................................ 154

I.6 Distribution Analysis and Poverty Impact Indicator .......................... 155

J. ENVIRONMENTAL ANALYSIS .................................................................... 156

J.1 Environment Safeguards Categorization and EISs/IEE Progress .... 156

J.2 Positive Impacts and Environmental Benefits ................................... 157

J.3 Potential Impacts during construction and operation....................... 158

J.4 Major Findings in the domestic FSRs/EISs ........................................ 160

J.5 Public consultation, information disclosure, and grievance redress

mechanism (GRM). ......................................................................................... 161

J.6 Due Diligence for the Associated and/or Linked Facilities ............... 161

J.7 Project Risks ......................................................................................... 164

J.8 Conclusion ............................................................................................ 165

K. LAND ACQUISITION AND RESETTLEMENT .......................................... 166

K.1 Land Acquisition and Resettlement Impacts ..................................... 166

K.2 Resettlement Principles and Entitlements ......................................... 166

K.3 Public Participation and Grievance .................................................... 167

K.4 Resettlement and Livelihood Rehabilitation ...................................... 167

K.5 Institutional Arrangement .................................................................... 168

K.6 Monitoring and Evaluation ................................................................... 168

L. POVERTY AND SOCIAL ASSESSMENT .................................................... 172

Introduction ................................................................................................. 172

L.1 .................................................................................................................... 172

L.2 Methodology ......................................................................................... 172

L.3 Project outputs and Areas ................................................................... 172

L.4 Social Profile of project areas ............................................................. 173

L.5 Project Impact Analysis ....................................................................... 175

L.6 Public Awareness and Action Plans ................................................... 177

L.7 Recommendations ............................................................................... 178


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APPENDIXES

Appendix A - Design and Monitoring Framework (DMF)

Appendix B - Project Implementation Institutional Arrangement

Appendix C - Project Implementation Contractual Arrangement

Appendix D - Fund Flow Mechanism

Appendix E - Problem Tree

Appendix F - Sector Analysis

Appendix G - Project Schedule

Appendix H - Detailed Cost Estimates

Appendix I - Financial Analysis

Appendix J - Economic Analysis

Appendix K - Procurement Plan

Appendix L - SAP

Appendix M - GAP

Appendix N - SPRSS

Appendix O - SRP

Appendix P - Risk Assessment and Mitigation Measures

Appendix Q - Procurement Capacity Assessment

Appendix R - Development Coordination

SUPPLEMENTARY APPENDIXES

Volume II of V

Supplementary Appendix 1 - Project Administration Manual (PAM)

Volume III of V

Supplementary Appendix 2 - Road and Bridge

Supplementary Appendix 3 - Urban Planning and urban Development

Supplementary Appendix 4 - District Heating

Supplementary Appendix 5 - Water and Wastewater

Supplementary Appendix 6 - Kalanggur River Rehabilitation

Supplementary Appendix 7 - Municipal Solid Waste Management

Volume IV of V

Supplementary Appendix 8 - Financial Management Analysis (FMA)

Supplementary Appendix 9 - Financial Analysis

Supplementary Appendix 10 - Economic Analysis

Supplementary Appendix 11 - Poverty and Social Assessment (PSA)

Supplementary Appendix 12 - PSA Survey Report


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Supplementary Appendix 13A - Initial Environmental Examination (IEE)

Supplementary Appendix 13B - Environmental Management Plan (EMP)

Volume V of V

Supplementary Appendix 14A - Tacheng Resettlement Plan

Supplementary Appendix 14B - Emin Resettlement Plan

Supplementary Appendix 14C - Tuoli Resettlement Plan

Supplementary Appendix 14D - Yumin Resettlement Plan

Supplementary Appendix 15 - Ethnic Minority Development Plan


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ACKNOWLEDGEMENTS

The project team of TA 8363-PRC: Xinjiang Tacheng Border Cities and Counties Development Project, gratefully acknowledges the support given by the Asian Development Bank during the preparation of the project activities and deliverables, in particular from Mr. Antonio Resseno-Garcia, the mission leaders, for providing instructions and suggestions and encouragements during the preparation of the project. The project team is also gratefully acknowledges the supports and hospitality from EA/IAs and PMO, Xinjiang Uygur Autonomous Region Project Management Office, Tacheng Prefecture Government and Project Management Office, Tacheng Liaota New District and Liaota project implementing unit (PIU), Tacheng Municipal Government and Tacheng PIU, the county governments of Emin, Tuoli and Yumin and their PIUs. Their supports were the keys for the successful completion of the preparation of the project. The project team is also thankful to the design institute: Liaoning Municipal Design Institute, the environmental and resettlement institute, China Science and Research Institute, and other engineering design institutes who provided the required engineering analysis and design for the preparation of the project.


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Project Maps

Figure 1.1 Project Location Map

Figure 1.2 Project City and Counties in Tacheng Prefecture

Project

Location

Tacheng

Emin

Tuoli

Yumin


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Figure 1.3a Tacheng City Subproject


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Figure 1.3b Kalanggur River Rehabilitation


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Figure 1.3c Tacheng District Heating


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Figure 1.4 Emin County Subproject


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Figure 1.5 Tuoli County Subproject


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Figure 1.6 Yumin County Subproject


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EXECUTIVE SUMMARY

Background and Objectives:

1. Xinjiang connects Asia to Europe by land transport and it is an important gateway for Europe to reach Asia and the sea ports along the Asia coastal line for trade and economic development. This trade route has been developed over thousand years, referred as "Silk Road" historically due to the trade between the PRC and Europe started with silk trading. The trade route has been maintained and developed especially in the recent history. The PRC government has paid special attention to strengthen the trade development along the border. In according to the Xinjiang 12th Five Year Plan2, strengthening the trade corridor development to connect Europe and Asia is one of the major focuses in the plan. Border trade is one of the important trade developments in Xinjiang. Tacheng Prefecture is located in northern Xinjiang with almost 500 km border line to Kazakhstan. There are seven border ports with Kazakhstan including Baktu near Tacheng City. It is one of the two major border trade routes connected to Europe in Xinjiang. In order to promote the border trade development, the central government has cooperated with the local government to build both expressway and railroad lines from Karamay to Tacheng, and also to upgrade the existing Baktu Port facilities. This will bring in a big opportunity for Tacheng to become a transportation hub and border trade center. It places a huge pressure to the local governments to upgrade their urban infrastructures and municipal services to facilitate the projected border trade development. More enterprises and businesses will be brought in for export and import development. The border trade will play an important role in the local economic development. The proposed project will help the local municipalities improve the urban infrastructures and municipal services at Liaota New district and at Baktu Port to facilitate the trade development.

2. The project will build and update the urban infrastructures and municipal service facilities in four city/counties in Tacheng Prefecture, including Tacheng City, and the towns of Emin County, Tuoli County and Yumin County. The proposed project components include building and rehabilitating urban roads and bridges, urban and rural alley rehabilitation, urban water supply piping network, urban drainage piping network, district heating primary piping network and heat exchange stations, MSW management and facilities, municipal service operation and maintenance (O&M) equipment, river rehabilitation and flood control, etc. The project will greatly help these border city and towns to improve their urban infrastructures and municipal services to facilitate the central government and Xinjiang regional government investment and development for the area.

3. The main objectives of the proposed project are to upgrade the urban infrastructures and municipal services in Tacheng, Emin, Tuoli and Yumin to facilitate the fast urban development from the border trade development, increase the city and town competitiveness in regional economic development, improve urban environment and living condition, promote people centered urban transportation system with emphasis on pedestrian and bicycle traffic and public transportation. introduce and implement 3R principle based integrated municipal solid waste management

Rationale:

4. The project will assist the local government to update their urban infrastructures and municipal services to cope with the projected border trade development as promoted and heavily invested by the central and regional government, and to facilitate the fast urban

2 XUAR Economic and Social Development 12

th Five Year Plan, January 2011


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development once the railroad and expressway connecting Tacheng to central Xinjiang are completed.

5. In Tacheng city, many urban residents live in the areas without proper urban infrastructures and municipal services. The proposed project includes a component to improve the existing alleys in the exiting urban areas to provide new pavement, street lighting and other urban facilities. The component will improve the living condition of the existing urban residents and improve the urban living environment.

6. In comparison to other developed areas, even to the cities in central Xinjiang, Tacheng Prefecture is at a relatively remote and much less developed area. There are significant differences in economic productions and resident incomes between the area and other developed areas. The urban infrastructures and municipal services are out-of-date and require large investment for upgrading. The project will improve and upgrade the urban infrastructures and municipal services, improve urban resident living condition and help to reduce the poverty at this remote and less developed area.

7. Over fifty percent of the populations in Xinjiang are ethnic minorities. The living condition for the general population is not as good as those in the more developed areas. The proposed project will bring in direct and indirect benefits to the local population, especially for the ethnic minorities as the ADB safeguard policies to protect and help the ethnic minorities are well prepared and implemented. The direct benefits will involve the employment of the minorities during the construction and business activities caused by the project construction, while the long term benefits will come from the increased economic development resulted from the implementation of the project.

8. The proposed project components are in line with the urban development master plan in each project city, and the proposed construction contents are in compliance of the city master plan. The implementation of the project will help the local government achieve their urban development goals. 9. Tacheng City and the towns of Emin, Tuoli, and Yumin are medium to small city and towns. Based on the lessons learned from the other parts of the PRC, the urban development shall consider pedestrian, non-motorized traffic (NMT) and public transport oriented development rather than the motor vehicle dominated urban transport. The urban development shall emphasize developing a people-centered integrated urban transport system consisting of motorized traffic, NMT, pedestrian and bicycle traffic, public bus, subway and railroad traffic, etc. with the emphasis on developing pedestrian, bicycle and public transportation system, especially for small and medium size cities. One of the very painful lessons learned from the PRC rapid urbanization in the past 20 or more years is the negligence of developing an effective pedestrian/bicycle and public transport, resulting in very bad traffic congestion, heavy air pollution, and noise in many major cities in the PRC. The project will promote the people-centered urban transport system to provide a more environmentally friendly and resident friendly urban transport system. 10. The existing MSW management system in the PRC is relatively primitive simply with collection, transport and disposal. There are practices in the current MSW handling involved secondary pollution, especially near the MSW collection stations. There are only very limited practices for reduce, reuse and recycle, referred as 3Rs principles. The project will bring in the 3Rs principles to develop the MSW component, develop and implement 2-bin system for MSW sorting and recycling, a direct collect and transport MSW handling procedures to eliminate collection or transfer station to avoid secondary pollution, and help the local governments improve the solid waste management system.


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11. The Tacheng subproject will upgrade and build urban roads, water supply, sanitary drainage, heating, MSW management, rehabilitate and upgrade the exiting alleys, operation and maintenance equipment, river rehabilitation for Kalanggur River, upgrade equipment for city operation and maintenance operation, security monitoring system for Baktu Port, and the management and maintenance equipment at Baktu Port. Tacheng City is the administration, cultural and business center for the prefecture and it is the development center for border trade, agricultural production and tourism development. The existing urban area cannot accommodate the fast population growth from the migration labor from the countryside and the fast pace of urbanization, especially the projected fast growth of border trade development. The lagging behind urban infrastructures and municipal services have put negative impacts on the local economic development including less competitiveness to attract more investments and skilled people. The subproject will help improve the living condition in the urban area and improve the investment environment to increase the city competiveness.

12. The Emin subproject will rehabilitate a section of the existing urban road and build new urban roads in the new urban area. Emin Town is another development center in the prefecture with strong local economy on agricultural production and tourism development. The county is an important production center for the border trade, especially for agricultural production and mining products. The existing urban area needs to be upgraded and the urban area needs to developed to accommodate the fast population growth from the migration labor from the countryside and the fast pace of urbanization. The subproject will help improve the living condition in the existing urban area, build new urban infrastructures and municipal service, and improve the investment environment to increase the town competiveness.

13. The Tuoli subproject will build a new outer ring road to accommodate the urban expansion needs. Tuoli is the industrial development center in the prefecture with high growth rate in the last several years. The county is also an important production center for the border trade development for the industrial products of non-ferrous metal. Furthermore, Tuoli is located on the route between Urumqi and Tacheng including Baktu Port, There are many bypass truck traffic going through the town urban area, causing traffic accident. The proposed subproject will build the Outer Ring Road so that the bypass traffic cannot go into the downtown area and it will improve the traffic safety consider significantly.

14. The Yumin subproject will rehabilitate existing urban roads and build new urban roads to accommodate the urban expansion needs. Yumin town is an urban-rural integrated center as the administration, business and production center for the county. Due to lack of investment, the existing urban infrastructures are out-of-date and cannot accommodate the fast population growth from the migration labor from the countryside and the fast pace of urbanization. The subproject will rehabilitate some existing urban roads and build some new urban roads, and it will help improve the living condition in the urban area and improve the investment environment to increase the town competiveness.

Impact and Outcome:

15. The project impact is the improved border trade and economic growth with better environmental and living conditions in the urban areas of Tacheng City and the towns of Emin, Tuoli and Yumin. The project outcome is the improved border trade facilities and environmentally friendly urban infrastructures and municipal services in Tacheng including Baktu Port, Emin, Tuoli and Yumin.

Output:

16. There are five project outputs: i) Tacheng City infrastructures, municipal services, district heating, MSW management, and river rehabilitation; ii) Emin County infrastructures and


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municipal services; iii) Tuoli County infrastructures and municipal services; iv) Yumin County infrastructures and municipal services, and v) capacity development and institutional strengthening.

(i) Tacheng City Infrastructures, Municipal Services, District Heating, MSW Management, Alley Rehabilitation, Baktu Port Equipment Upgrade, and River Rehabilitation – The component will improve the urban infrastructures and municipal services in the existing and new urban areas, including: i) construction of 13 urban roads with a total length of 29.5 km for people centered urban transport system with emphasis on developing pedestrian/bicycle and public transport; ii) installation of a 45.4 km water supply piping network; iii) installation of a 48.8 km sanitary sewer piping network; iv) installation of a 37.2 km primary hot water heating pipe network and 21 hot water heat exchange stations; v) rehabilitation of 14.1 km alleys; vi) upgrade of security monitoring and MSW equipment for Baktu Port; vii) improvement of the MSW management by applying 3R principles; viii) city operation and maintenance (O & M) equipment upgrade; and ix) rehabilitation of 15.2 km Kalanggur.

(ii) Emin Town Infrastructures and Municipal Services – The component will

improve the urban infrastructures and municipal services in the existing as well as new urban area including: i) rehabilitation one and construction of 5 urban roads with a total length of 10.1 km; ii) installation of a 8.3 km water supply piping network; iii) installation of a 9.8 km sanitary sewer piping network, and iv) maintenance equipment upgrade.

(iii) Tuoli Town Infrastructures and Municipal Services – The component will

improve the urban infrastructures around the existing urban area by the construction of the outer ring road with a total length of 14.1 km, and the upgrade of city maintenance equipment

(iv) Yumin Town Infrastructures and Municipal Services – The component will improve the urban infrastructures and municipal services in the existing as well as new urban area including: i) rehabilitation three and construction of three urban roads with a total length of 9.7 km for people centered urban transport system with emphasis on developing pedestrian/bicycle and public transport, and ii) maintenance equipment upgrade.

(v) Improved Capacity and Institutional Arrangement – Provide support for project implementation on project management, institutional strengthening, capacity development and training. Capacity development on technical support, management support, financial management support, and other tasks to ensure the smooth implementation of all project components, including the soft components.

Project Investment Plan and Financing Plan:

17. The project investment plan and financing plan are shown in the following tables. ADB will finance $150 million, of which $110 million is for Tacheng subproject, $15 million for Emin subproject, $15 million for Tuoli subproject and $10 million for Yumin subproject. 18. The government has requested a loan of $150.0 million from ADB’s ordinary capital resources to help finance the project. The loan will have a 25-year term including a grace period of 5 years, an annual interest rate determined in accordance with ADB’s London interbank offered rate-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. The ADB


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loan will also finance taxes and duties for eligible ADB-financed expenditures, and transportation and insurance costs included in the base cost for ensuring smooth project implementation. The loan will finance 49.8% of the project cost, including civil works, equipment and materials, and institutional strengthening. The government will finance the remaining project cost through counterpart funds from the four project implementing agencies (IA) of Tacheng Municipal Government, Emin, Tuoli and Yumin County Governments.

Project Investment Plan ($ millions)

Item

(CNY million) ($ million)

A. Base Costb

1 Tacheng Subproject 1,158.3 193.05 63.7%

2 Emin Subproject 194.0 32.34 10.7%

3 Tuoli Subproject 130.3 21.71 7.2%

4 Yumin Subproject 90.6 15.10 5.0%

5 Capacity Development and Institutional Strengthening 10.2 1.70 0.6%

Subtotal (A) 1,583.4 263.90 87.1%

B. Contingenciesc188.7 31.45 10.4%

C. Financing Charges During Implementationd45.1 7.52 2.5%

1,817.2 302.87 100.0%

a Includes taxes and duties to be financed from ADB loan resources of: $6.23 million.

b In mid 2014 prices.

c

d

Source: Asian Development Bank estimates.

Amounta Share of

Total (%)

Total (A+B+C)

Physical contingencies computed at 8% for civil works; and 8% for field research and development, training, surveys,

and studies. Price contingences computed at 6.03% on foreign exchange costs and 9.37% on local currency cost;

includes provisions for potential exchange rate fluctuation under the assumption of a purchasing power party

exchange rate.

Includes interest and commitment charges. Interest during construction for ADB loan(s) has been computed at the 5-

year forward London interbank offered rate plus a spread of 0.5% and additional 0.1% surcharge for average loan

maturity premium. A commitment charge for an ADB loan is at 0.15% per year on the undisbursed loan amount.

Note: Numbers may not add precisely due to rounding.

Financing Plan ($ millions)

Share of

(CNY million) ($ million) Total (%)

Asian Development Bank 900.00 150.00 49.53%

Tacheng Municipal Government 676.40 112.73 37.22%

Emin County Government 129.65 21.61 7.13%

Tuoli County Government 63.88 10.65 3.52%

Yumin County Government 47.31 7.89 2.60%

Total 1,817.25 302.87 100.00%


SourceAmount


Period of Utilization:

31 December 2019

Project Completion Date:

30 September 2019

Implementation Arrangement:


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19. The executing agency (EA) for the project is Tacheng Prefecture Government (TPG). A project management office (PMO) has been established under TPG DRC responsible for daily management and communication for the project implementation. The implementing agency (IA1) for Tacheng City subproject is Tacheng Municipal Government (TCMG) who is responsible for the implementation of the Tacheng subproject. Three project implementing units (PIU) has been established: i) Liaota New District (PIU1) is responsible for implementing urban roads and bridges, water supply, sanitary sewer, district heating, and Baktu Port equipment upgrade; ii) Tacheng Water Resource Bureau (PIU2) is responsible for Kalanggur River Rehabilitation; and iii) Tacheng Housing and Construction Bureau (PIU3) is responsible for alley rehabilitation and MSW improvement. The implementing agency (IA2) for Emin Subproject is Emin County Government (EMCG) and Emin Housing and Construction Bureau is the PIU for the implementation of roads, bridges and municipal services. The implementing agency (IA3) for Tuoli Subproject is Tuoli County Government (TLCG) and Tuoli Housing and Construction Bureau is the PIU for the implementation of Outer Ring Road construction. The implementing agency (IA4) for Yumin Subproject is Yumin County Government (YMCG) and Yumin Housing and Construction Bureau is the PIU for the implementation of roads and municipal service.

Procurement:

20. All procurement to be financed under the loan will be carried out in accordance with ADB’s Procurement Guidelines (2007, as amended from time to time). Civil works contracts valued over $10 million and contracts for goods and related services above $1.0 million shall follow ADB procedures for international competitive bidding (ICB). Civil works contracts valued at $10 million or less and contracts for goods and related services at $1.0 million or less will be procured following national competitive bidding (NCB) procedures. Packages for goods and related services valued at $100,000 and less and civil works valued at $200,000 and less will be procured through shopping procedures. The selection and engagement of contractors and suppliers will be subject to ADB approval.

Consulting Services:

21. The Project includes provision for funding 15 person-months of international and 89 person-months of national consulting services to support the EA/PMO in project implementation and management and institutional capacity building. The consulting package is to be provided through a consultancy firm that will be selected using quality- and cost-based selection (QCBS) in accordance with the Guidelines on the Use of Consultants by Asian Development Bank and its Borrowers (2007, as amended from time to time).

Environmental Impact and Mitigation:

22. Potential project impacts, both positive and negative, were assessed during the domestic EIA, the CIEE and PPTA studies, through site visits, technical analysis, as well as consultations with government agencies and local communities, and dialogues among the EA, IAs, DIs, EIA institutes and PPTA consultants. During construction for all project components, potential impacts include soil erosion, noise and vibration, fugitive dust, construction wastewater and solid wastes, and community and occupational health and safety. Overall, construction-related impacts will be localized, short term, and can be effectively mitigated through the application of good construction practices and implementation of community and occupational health and safety plan.

Land Acquisition and Resettlement:


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23. The project will acquire a total of 4059 mu land and resettle a total of 57824 m2 house. The total affected households will be 674 and the affected people will 2393. The estimated cost for land acquisition and resettlement is CNY 370.64 millions.

Risks and Risk Management:

24. The Project does not have any unusual technical risks. The potential risks are mainly related to the project management, contract management and procurement management. The following risks could affect timely implementation and realization of the project: i) PMO/PIU is lack of the experience in project management, procurement, contract management, and financial management; ii) delays in implementing land acquisition and resettlement programs, and (iii) delays in the provision of counterpart funding.

25. These risks can be mitigated through the implementation of risk management plan. Risk (i) will be mitigated through capacity development program and the selection of a strong and experienced implementation consulting team to help EA/IA for the project implementation and to provide guidance in project management, contract management, procurement assistance, financial management and other management tasks. Risk (ii) will be mitigated by expeditious implementation of the detailed measurement surveys (DMS), early availability of AP compensation funding, and strict operational compliance with the RPs. Risk (iii) will be mitigated through covenanted assurances from the governments for timely provision of counterpart funding.


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I. THE PROPOSAL

A. PROJECT BACKGROUND

1. Xinjiang Uygur Autonomous Region (XUAR) is located in the northwestern China. XUAR is the largest province/autonomous region in the People’s Republic of China (PRC) with a total area of 1.66 million km2, which is about one sixth of the total area. The total population is 22.64 million (2013), ranked 25th (1.65%) among all provinces/autonomous regions in the PRC. The area is featured with 3 major mountains, namely Altai, Tian and Kunlun Mountains from north to south, and 2 major basins which are Talimu and Junggar in between. There are many rivers formed by snow melting from the mountains and forming many oases along the rivers and the edges of basins. About 5% of the total areas are oasis. The climate condition is a typical inland continental climate with abundant sunshine (2500 - 3500 hours/year), less precipitation (average 150 mm/year), and big temperature difference (-50oC - 49oC). Due to its remote location, the area has a much less dense population and is less developed in comparison to other parts of the PRC. 2. The geographical location of XUAR defines that it is the gateway connecting the continents of Europe and Asia. There are three railroad transportation corridors linking Asia and Europe: i) Siberia Corridors from Vladivostok in far east Asia to Moscow and other countries in Europe vs. trans Siberia railroad line; ii) New Europe-Asia Corridors from the port city of Lianyungang in southern China to XUAR, Kazakhstan, Russia and other countries in Europe; and iii) Southeast Asia-Europe Corridor from the port city of Qingdao to Yunnan, Nepal, India and Europe, which is under planning stage. The Trans Asia-Europe corridor vs. XUAR is the shortest inland transportation path and XUAR will play more and more important role in connecting Asia and Europe in trade and economic development. Historically, Xinjiang was on the path of the famous trade route, namely Silk Road, which connected Europe and the PRC for trade started over 2000 years ago. XUAR is bordered with 8 countries including Russia, Kazakhstan, Kyrgyz, Tajikistan, Pakistan, Mongolia, India, Afghanistan, and the total boundary line length is over 5600 km. There are total 17 national and 12 provincial level border ports along Xinjiang border. The border trade is one of the important trading developments in XUAR. 3. The XUAR is a minority concentrated living area. About 60% of the total population is ethnic minorities including Uygur, Kazakh, Mongolia, Hui, etc. Another special character of the area is that there are considerable residents from the production corps, the semi military units with their own jurisdictions scattered in the area. Historically, they were military units with the duties of both border protection and farming production. Through over 50 year development, these military units have transformed into more civilian like local governments and municipalities. They have established their own cities and towns and have their own municipal services and management system. Some of the jurisdictions of the production corps have converted into regular municipalities. At present, the estimated population from the production corps is about 257,000, or 12% of the total population.

4. Xinjiang is one of the less developed provinces/regions in the PRC. By 2013, the total gross domestic product (GDP) was CNY 851.0 billion, ranked 25th; the average GDP per capital was CNY 37,847, ranked 18th, and the average urban resident disposable income was CNY19,874, ranked 28th among 31 provinces/regions in PRC. In comparison to the national averages (GDP/person = CNY 41,805, disposable income = CNY 26,955), they are well below the national averages.

• Western Development Strategy


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5. In order to assist the development in Xinjiang, the central government has developed and implemented several initiatives helping the local economic development. The Western Development Strategy3 is a national strategy initiated by the central government in 2000 to use the excessive economic development capacity in the east coast area to assist the development of the less developed areas including Xinjiang, Tibet, Gansu, Qinghai, Ningxia, Sichuan, Yunnan, Guizhou, Chongqing, Shanxi, Guangxi, Inner Mongolia, Enshi, and Xiangxi, a total of 12 provinces, autonomous regions and cities. The latest western development plan is the Western Development 12th Five Year Plan approved by the State Council in February 2012, which states to continue the support to the development of the less developed western area.

• National Supporting Xinjiang Program

6. Supporting Xinjiang Program is another national strategy to mobilize the resources from the developed areas to assist Xinjiang local government economic development. Under the program, there are currently 19 provinces/cities from the developed area to provide direct supports to the partner cities/towns in Xinjiang in human resources, technologies, management, investments, and other relevant areas. The aid teams from these 19 provinces/cities have mobilized to Xinjiang to assist the development in the local municipalities with much needed skills, technologies and investments. By 2011, the total investment to Xinjiang had exceeded CNY 10 billion and the scale of the investment from other developed provinces and cities will continue increase. It is expected that by 2020 XUAR will eliminate most poverty in the area. In addition, the central government and state owned enterprises will continue increasing the investments to Xinjiang. The state council has announced4 that the investment to Xinjiang from the state owned enterprises will be over CNY 1,000 billion during 12th Five Year Plan period 7. Liaoning Province is the supporting partner for Tacheng Prefecture. Since the start of the program, Liaoning provincial government has provided full scale supports in industrial development, technology transformation, key project constructions, etc. By 2011, Liaoning had invested over CNY450 million in 65 projects covering agricultural production, mining, logistic development, manufacturing, etc. The support will continue for the following years and the planned investment will reach CNY 19.2 billion by 2020.

• Building Economic Development Area along the "Silk Road" 8. The "Silk Road" is referred to an ancient trade road between Asia and Europe established about 2000 years ago and had been developed as one of the major trading routes connecting the east and west before the ocean and air transport routes well developed. In order to facilitate the regional cooperation and development as well as the trade development between Asia and Europe, the PRC central government has decided to develop the economic development area along the historical "Silk Road"5. The policy requires speeding up economic reform, strengthening the construction of border ports, border cities, increasing regional cooperation, promoting logistic and tourism development. The proposed area will have approximately the population of 3 billion and there is tremendous economic growth potential for the area. Tacheng is located at the border with Kazakhstan and the border trade port of Baktu is only about 12 km to the center city.

3 In January 2000, the State Council established Western Development Leading Group; On December

8, 2006, the State Council approved The Western Development 11th Five Year Plan; In February 2012, the State Council approved The Western Development 12th Five Year Plan. 4 Conference of State Owned Enterprises for Supporting Xinjiang Development, May 2012, keynote

speech by the director of the State-owned Assets Supervision and Administration Commission. 5 The Decision on Several Key Issues on Economic Reform by Chinese Communist Party Central

Committee, November 15, 2013


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• Kazakhstan Policy on Border Trade Development

9. As Kazakhstan is in the process of joining World Trade Organization, the government has adjusted the national policies on reform and open border trade restriction. Baktu port is one of the 5 major ports along China-Kazakhstan border. As Kazakhstan government is losing the constrictions on border trade, Baktu Port could play a very important role in promoting border trade between the PRC and Kazakhstan as well as the trade gateway to Russia and Europe.

• Baktu Port 10. Baktu Port has over 200 year border trade history. It is one of the major connection points on the historical Silk Road. In 1994, the central government has approved Baktu Port as the national Class I border port, and it became one of the three border ports open to other counties in Xinjiang. Since the opening of the port, the border trade volume has been grown significantly. During 11th Five Year Plan, the total goods trade volume reached 829,100 tons with an estimated value of $2.8 billion US dollars. In 2012, the border trade goods reached 191,800 tons with the estimated value of $1.3 billion US dollars. In order to meet the increased trade development needs, the central and Xinjiang government have decided to invest and to upgrade Baktu Port. The project will cover a total area of 38.28 ha with the new construction of border inspection building (2791 m2), offices, parking lots, inspection and security facilities, commercial development, etc. It is expected the construction will be started in 2014. The proposed ADB project is as a part of the Baktu Port area development planning, which is about less than 10 km to the Baktu Port.

• Regional Transportation Planning and Development 11. In order to promote border trade and to develop Silk Road Economic Development Area, Xinjiang Uygur Autonomous Region Government has identify Tacheng as the transportation hub for trade development, and has invested and coordinated with the local government to upgrade the regional transportation system. The expressway from Karamay to Tacheng is under construction. The freight railroad line to Tacheng from the national railroad network in central Xinjiang has been designed and the construction has started in May 2014. The negotiation with Kazakhstan government to connect the new railroad to their railroad system is underway. Once the planned railroad and the expressway from Karamay to Tacheng completed, there will be a direct link from central Xinjiang to Baktu port and the direct connections to the major cities in Kazakhstan as well as Russia and Europe.

1.2 TACHENG PREFECTURE

12. Tacheng Prefecture is located in the northwestern XUAR at longitude 82o16' - 87o21' and latitude 43o25' - 47o15'. The area is the Tacheng Basin with Tarbahatai Mountain in the north, Baktu Mountain in the west, and the Kulusitai Grassland in the south. The water from snow melting from the surrounding mountains is the main water resource. There are 14 rivers and 43 streams and thausands of springs. The average annual available water resource is about 807 million m3 including 557 million m3 surface water and 256 million m3 underground water. The average available wter resource per capita is about 769 m3/person. 13. Tacheng City is the capital of the prefecture, and the distance to XUAR capital, Urumqi, is about 650 km. The prefecture is at the border with Kazakhstan in the west and with a border length of over 480 km. The Altai Mountain is at its northeast and Harbiduo Mountain and Poluokenu Mountains are at its south. The Jichang Hui Autonomous State as well as Shihezi City is at its east and the Borguta Mongolian Autonomous State and Yili Prefecture are at its west. There are two cities of Tacheng and Wusu, five counties of Emin, Tuoli, Yumin, Shawan


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and Buksare Mongolia Autonomous County. In addition, there are 36 farms by production corps. By 2012, the total population was 1.05 million. As shown in Figure 1.7, Tacheng Prefecture is located in the northwest of Urumqi Economic Development Zone. The south side of the prefecture, Wusu City is on the trading corridor from Urumqi to Huoerguosi post city. Tacheng is located in the north of the prefecture. The land port of Baktu Port is only about 12 km from the prefecture capital, Tacheng City. Baktu is one of the seven border ports between the PRC and Kazakhstan, including Aheitubiek, Jimunai, Ala Mountain, Huorguosi, Dulata, Muzhart, and Baktu. There are two major border trade routes in Xinjiang to Kazakhstan as shown in Figure 1.8. One is from Urumqi vs. Wusu to Huoerguosi and the other is from Tacheng to the border ports of Baktu. According to the regional development planning as shown in Figure 1.9, there are three major development centers in the prefecture. The first one is Wusu development center to speed up urbanization and economic development by integrating the development with Urumqi Economic Development Zone and developing petrochemical and energy productions. The second one is Tacheng City development center which covers Tacheng, Emin, Yumin, to strengthen border trading, transportation, logistic development, agricultural production, etc. for urbanization and economic development. The third one is Hebukesaier center in the northeast where the development will be concentrated on animal husbandry, mining and energy development due to the rich coal mine and other natural resources.

Figure 1.7 Tacheng Prefecture in Xinjiang

14. To facilitate the regional development goals and strengthening the border trade development, a new railroad line from Karamay to Tacheng City as shown in Figure 1.10 has been planned and the construction has started in 2014. It is expected that the construction of the railroad will be completed in 2017. The railroad line, once completed, will bring significant impact to the local economic development and effectively push the fast development of the border trade at Baktu Port, which would require the upgrade of the urban infrastructures and municipal services in the cities and towns in the area including Tacheng, Emin, Tuoli, Yumin, etc.


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Figure 1.8 Tacheng Trade Routes

Figure 1.9 Tacheng Cities and Towns Development Planning

15. The Tacheng Prefecture development plan has layout the industrial and production distribution for the area as shown in Figure 1.11. In Tacheng area, there are two major development corridors. One is from Shawan, Karamay to Tacheng with the emphasis to develop the border trade using Baktu Port for logistic development, agricultural production,


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petrochemical and related industrial developments. The other one is from Hefeng, Tiechanggou to Tuoli, Bortala and Huoerguosi Port with emphasis on animal husbandry, coal mining, and construction materials. There are other two development corridors originated from Wusu in southern part of Tacheng Prefecture. One is along Urumqi to Huoergousi corridor to the Kazakhstan, and the other one is from the cluster of Wusu, Kuitun and Dushanzi to Kanas Lake scenery area for tourism development.

Figure 1.10 Railroad and Highway Development Planning

Figure 1.11 Industrial Development Planning


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16. The proposed project is at the Tacheng City development center and the project will help the local city and counties’ governments to upgrade their urban infrastructures, improve the living condition and provide the necessary municipal services to facilitate the development needs in border trade, transportation, logistic, and agricultural productions.

1.3 TACHENG CITY

17. Tacheng City is the capital of Tacheng Prefecture. The city is located in the northwest Xinjiang at the border with Kazakhstan. The city area is 4,357 km2 with the dimensions in south-north of about 90 km and in east-west of 58 km. The distance to Urumqi is about 630 km. The border trade port of Baktu is only about 12 km in the west. 18. There are 2 cities, 2 towns, 4 townships, 3 agricultural farms, 3 production corps regiments, and 1 agricultural community. By 2012, the urban population was 169,400, in which 62,600 were ethnic minorities, accounting for about 37% of the total population. The total GDP was CNY 5.95 billion, ranking 38th, and the GDP per capita was CNY 35,836, ranking 30th among all 99 cities/counties in XUAR. The GDP growth rate was 12.5%. The average disposable income for the urban residents was CNY 16,464 (entire prefecture) which is about 8% less than the average of XUAR of CNY 17,921. The city is a less developed city in comparison to the other cities in central Xinjiang. The total amount of the production is relatively small and the average person income is also below the regional average.

1.3.1. Natural Conditions

19. The city is surrounded by mountains in three sides with Harbahatai and Bakyu mountains in west, north and east. The south side of the city is the open area formed by river deposits and with swaps and the famous Kulusitai grassland. The topography of the area is sloping down from north to south with the maximum elevation of 2,835 m on top of the mountain in the north and the lowest elevation of 403 m in the south. The area is rich in water resources. There are a total of 14 rivers, 24 large springs and many small streams and springs. The average usable water source is 807 million m3 including 558 million m3 surface flows. The underground water source is about 320 million m3. The area is in a typical continental climate condition with long and cold winter, strong wind and plenty of sunshine. The average annual precipitation is only 298 mm and the evaporation is more than 5 times. The climate condition is summarized in Table 1.1.

Table 1.1 Climate Condition in Tacheng

No. Description Data Remark

1 Average temperature 5.9oC

2 Highest temperature 40oC

3 Lowest temperature -40oC

4 Non-frost period 130-190 day

5 Sunshine time 4,447 hrs

6 Average annual precipitation 289 mm

7 Average evaporation 1,685 mm

8 Average relative moisture

9 Average wind velocity 1.8-3.1 m/s


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10 Maximum wind velocity 40 m/s At Tuoli Laofengkou

11 Primary wind direction Varies in different seasons

12 Frost depth 146 cm

(Source: Consultants)

1.3.2. Urban Development Master Plan

20. According to the city master plan, the objectives of the urban development is to build Tacheng into a development center at the border with the development focuses on border trade, tourism, and agricultural productions.

21. The existing urban are and land use is shown in Figure 1.12. Tacheng city has maintained a high growth rate (>10%) in the last several years. The current urbanization rate for Tacheng Prefecture is less than 50%, and it is expected it will reach 70% by 2030 6. The existing urban area cannot meet the fast growing needs for urban infrastructures and municipal services.

Figure 1.12 Existing Tacheng Urban Area

22. The municipal government has developed an urban development master plan to expand the city into west and east direction. The scheme of the city master plan for urban development is shown Figure 1.13. The urban development will be planned in three areas:

6 Tacheng Master Plan (2011 - 2030).


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A. New Urban Area - The area (in light red color) includes two subareas: i) the north area will be the city administration, commercial and cultural center with city government and other management offices; ii) the south area will be developed in conjunction of the new railroad station to a commercial and residential area.

B. Western Urban Area - The area (in grey color) will be the industrial development area to support agricultural production, logistic development, and new technology development.

C. Old Urban Area - The area covers the existing urban area and the new expansion areas in east and south. The development for the area will concentrate on the exiting urban area upgrade, the tourism development and environmental preservation along three rivers including Kalanggur, Ulastai and Jiauritamu Rivers.

Figure 1.13 Tacheng Urban Development Scheme

23. The city master plan for land use is shown in Figure 1.14. The proposed project components include the construction of urban roads, water supply, sewer drainage, district heating, municipal solid waste (MSW) management, etc. in the planned New Urban Area and Western Urban Area. The project will help Tacheng Municipal Government (TCMG) upgrade the urban infrastructures and municipal services, provide the much needed urban facilities for industrial and border trade development as well as the agricultural production, improve the living environmental and living condition, and help the local economic development.


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Figure 1.14 Tacheng Urban Development Master Plan

24. Based on the proposed project components, the key control parameters from the city development master plan are summarized in Table 1.2.

Table 1.2 Summary of City Master Plan Development Criteria

No Description Criteria/Target Remark

1 Planning Period 2011 - 2030

Short Term Year 2015

Medium Term Year 2020

Long Term Year 2030

2 Population Projection:

Short Term 132,000

Long Term 320,000

3 Urban Population / Urbanization Rate:

Short Term 49%

Long Term 69%

4 Average Land Use/Person 143 m2/person

5 Urban Transport Public transport

oriented transport


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6 Public Transport Network Density 2-3 km/km2

7 Water Supply Standard

Short Term 150 L/person-day

Long Term 120 L/person-day

8 Wastewater

Wastewater/Water Supply Rate 80%

Wastewater Collection Partial combined

9 Stormwater Direct discharge

2015 47,900 m3/day

2020 61,500 m3/day

9 District Heating Standard 65 W/m2

10 Municipal Solid Waste (MSW)

MSW Daily Amount 1.3 kg/day-person

Long Term MSW Quantity 416 ton/day


1.4 EMIN COUNTY

25. Emin County is located in the east of Tacheng Prefecture. The county is bordered with Kazakhstan in the northwest, Bukesar Mongolia Autonomous in the east, Tuoli County in the south and Tacheng City in the west. The county is on the transport route between Tacheng and Urumqi and the distance to Urumqi is about 480 km. The county area is 9,531 km2 with the dimensions in south-north of about 87 km and in east-west of 123 km. About 5,069 km2 of land are mountains, which is about 53% of the total area. 26. There are 1 town, 10 townships, and 6 agricultural farms from the production corps. By 2012, the total population was 219,165 in which 100,897 were ethnic minorities, accounting for about 46% of the total population. The urban population at Emin town was 86,123 (2011). The total GDP was CNY5.59 billion, ranking 40th, and the GDP per capita was CNY 25,505, ranking 47th among all 99 cities/counties in XUAR. The GDP growth rate was 10.2%. The average disposable income for the urban residents was CNY 16,464 (entire prefecture), which is about 8% less than the average of XUAR of CNY 17,921. The county is a less developed area in comparison to the other cities/counties in central Xinjiang. The total amount of production is relatively small and the average person income is also below the regional average.


27. Emin County is surrounded by mountains in three sides with Tarbahatai in north and Wurkaxiar in south and east. The west side is the open area formed by river deposit. The topography of the area is sloping down towards west. The rainwater has formed many valleys and ditches and many streams with springs. Most of the county areas are on the Emin River basin. The area is rich in water resources. There are a total of 18 rivers, 55 large springs and many small streams and springs. The available water resource is 1,006 million m3. The underground water resource is about 250 million m3. The area is in a typical continental climate condition with long and cold winter, strong wind and plenty of sunshine. The average annual precipitation is only 270 mm and the evaporation is more than 6 times. The climate condition is summarized in Table 1.3.


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Table 1.3 Summary of Climate Condition in Emin


1 Average Temperature 7.1oC

2 Highest Temperature 41.7oC

3 Lowest Temperature -40.2oC

4 Non-frost Period 168 days

5 Sunshine Time 2,796 hr

6 Average Annual Precipitation 270 mm

7 Average Evaporation 1,779 mm

8 Maximum Velocity 20 m/s

9 Average Wind Velocity 3.6 m/s

10 Primary Wind Direction W and SE

11 Frost Depth



28. According to the city master plan, the objectives of the urban development is to build Emin into a development center at the border with the focuses on industrial and trade development, coordinated development with the production corps, and tourism development. The county will be divided into five development areas as shown in Figure 1.15. The existing county city, Emin County, will be the administration, cultural and economic center and to play a leading role for the county development. The second development center will be Wushishui Town, which is the administration center of the production corps. By utilizing the natural resources in East Mountain and North Mountain, the two areas will be the focuses to develop tourism. Finally the eastern part of the county will be used for mining industrial development.

Figure 1.15 Emin County Development Plan


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29. The proposed project component is in Emin County. The existing urban area and land use are shown in Figure 1.16. Emin county has maintained a high growth rate (>10%) in the last several years. The current urbanization rate for Emin County is less than 50%, and it is expected to reach 77% by 20307. The existing urban area cannot meet the fast growing needs. The project component will build new urban roads and upgrade the municipal services in the existing urban area.

Figure 1.16 Emin County Existing Land Use

30. The county government has developed an urban development master plan to expand the existing urban area. The city master plan for urban development is shown in Figure 1.17 and the functions of each urban subarea are shown in Figure 1.18, respectively. There are eight subareas in the master plan:

1) Railroad Station Area - the area around the railroad station for travel, logistic, commercial and residential development.

2) Chaoyang Area - the area is at the west side of the city and it is the administration and living center for the production corps.

3) South Old City - the area is at the southern side of the existing urban area which will be mainly for commercial and residential development.

4) North Old City - the area is at the northern side of the existing urban area and it is adjacent to the existing industrial park. The area will be developed mainly as the residential area for the industrial park.

7 Emin County Master Plan (2012 - 2030).


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5) New Urban Area - the area is at the northeast side the existing urban area and it will be the new administration and business center for the county city and it will be the home for the county government agencies.

6) East Qiaonan Area - the area is at the east side of urban area across the river and the area will be developed along the river as the urban open and recreation area.

7) West Qiaonan Area - the area is at the west side of East Qiaonan Area and the area will be as the residential area for the industrial park in the south.

8) Qiaonan Industrial Park - the area is at the southern part of the urban area and will be developed as the agricultural production base.

31. The proposed project component will build urban roads and municipal service facilities in the New Urban Area. The project will help Emin County Government (EMCG) to upgrade the unban infrastructures and municipal services, provide the much needed urban facilities for industrial and border trade development as well as the agricultural production, improve the living environment and living condition, and help facilitate the local economic development.

Figure 1.17 Emin County City Master Plan


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Figure 1.18 Emin County City Area Functions

32. Based on the proposed project components, the key control parameters from the city development master plan are summarized in Table 1.4.

Table 1.4 Summary of Emin County City Master Plan



Short Term 2015

Medium Term 2020

Long Term 2030

2 Population Projection/Urbanization Rate

Short Term 125,000/50%

Medium Term 168,000/60%

Long Term 255,000/77%

3 Water Supply Amount

Short Term 38,000 ton/day

Long Term 63,000 ton/day

4 Wastewater (WW) System Partial combined


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Short Term WW Quantity 22,000 m3/day

Long Term WW Quantity 36,000 m3/day

5 Municipal Solid Waste (MSW) Treatment:

Long Term Quantity 204 ton/day

Average MSW Amount 1.2 kg/person-day


1.5 TUOLI COUNTY

33. Tuoli County is located in the southeast of Tacheng Prefecture. The county is in the north of Wusu City and bordered with Karamay in the east, Yumin County in the west, and Kazakhstan in the southwest with a border line of 58 km. The total county area is 21,300 km2. The county capital, Tuoli Town, is about 512 km to Urumqi, 703 km to Yining in the south and 123 km to Tacheng City in the northwest. The county area is 21,300 km2 with the dimensions in south-north of about 159 km and in east-west of 222 km. 34. There are three towns and four townships. By 2012, the total population was 100,235 in which 73,907 were ethnic minorities, accounting for about 74% of the total population. The urban population in Tuoli town was 24,002 (2010). The total GDP was CNY3.57 billion, ranking 61th, and the GDP per capita was CNY 35,658, ranking 31 among all 99 cities/counties in XUAR. The GDP growth rate was 16.2%. The average disposable income for the urban residents was CNY 16,464 (entire prefecture) which is about 8% less than the average of XUAR of CNY 17,921. The county is a less developed area in comparison to the other cities/counties in central Xinjiang. The total amount of production is relatively small and the average person income is also below the regional average.


35. Tuoli County is at the western Junggar Basin on a large plain. The area is rich in water resources. There are many rivers including Kupu River, Langutile River, Duolate River, Wuxuete River, Keketale River, Halegai River, etc. The available water resource is 244 million m3. The area has rich mining resources including coal, gold, chrome, iron ore, etc., in which the chrome quantity is estimated at about 2.6 million tons, ranking first in the PRC. The area is in a typical continental climate condition with long and cold winter, strong wind and plenty of sunshine. The average annual precipitation is only 241 mm and the evaporation is more than 6 times. The climate condition is summarized in Table 1.5.

Table 1.5 Summary of Tuoli Climate Condition








7 Average Evaporation

8 Maximum Velocity 40 m/s At Laofengkou


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9 Average Wind Velocity

10 Primary Wind Direction

11 Frost Depth



36. According to the county master plan, the objective of the urban development is to build Tuoli into a new industrial development center for husbandry and agricultural productions, non ferrous metal development, and construction material production. The county will focus on developing four centers as shown in Figure 1.19. Tuoli Town is the political and commercial center of the county and the town will serve as the administration, cultural and economic center. The second center is Tiechanggou Town, which will be the industrial center for non-ferrous metal mining and production and energy production. The third center is Junggar Industrial Park, which will be the construction material production center. The fourth center is Miaoergou Town, which will be also the non-ferrous metal production base.

The proposed project component is in Tuoli Town. The existing urban area and land use are shown in Figure 1.16. Tuoli County is the industrial center for Tacheng Prefecture and has maintained a high growth rate (>15%) in the last several years. The current urbanization rate of Tuoli County is less than 50%, and it is expected to reach 68% by 20308. The existing urban area cannot meet the fast growing needs. The project component will build new urban roads and upgrade the municipal services in the existing urban area.

Figure 1.19 Tuoli County Development Planning

8 Tuoli County Master Plan (2012 - 2030).


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Figure 1.20 Tuoli County Existing Land Use

37. The county government has developed an urban development master plan to expand the existing urban area. The scheme of urban development is shown in Figure 1.21. According to the population projection in the master plan, it is expected that the urban population will be 42,000 by 2015 and 100,000 by 2030. The existing urban area will be expanded towards north to develop a new urban area; meanwhile, the town will be expanded outwards in four directions as shown in Figure 1.21. The town land use master plan is shown in Figure 1.22.


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Figure 1.21 Tuoli Town Development Planning

38. The proposed project component will build urban roads and municipal service facilities in the New Urban Area. The project will help Tuoli County Government (TLCG) to upgrade the unban infrastructures and municipal services, provide the much needed urban facilities for industrial development, improve the living environment and living condition, and help the local economic development. 39. Based on the proposed project components, the key control parameters from the city development master plan are summarized in Table 1.6.


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Figure 1.22 Tuoli Town Urban Development Master Plan

Table 1.6 Summary of Tuoli Master Plan Development Criteria



Short Term 2015

Medium Term 2020

Long Term 2030



Long Term 230,000/68%

3 Rural Road Network

Short coverage to villages 100%



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Short Term 4,500 ton/10k person-day

Long Term 6,000 ton/10k person-day

5 Drainage System Separated sewer and storm system

6 Wastewater/Water Supply Ratio 85%


1.6 YUMIN COUNTY

40. Yumin County is located in the south of Tacheng Prefecture at the western part of Junggar Basin. The county is bordered with Tuoli in the east, Emin in the northeast, Tacheng in the north, and Kazakhstan in the west and southwest with a border line of 170 km. The county capital, Yumin Town, is about 452 km to Urumqi, 73 km to Tacheng, and 90 km to Baktu Port. The county area is 6,120 km2 with the dimensions in south-north of about 120 km and in east-west of 65 km. The deposit plain area is about 2,157 km2, accounting for about 35% of the total area. 41. There are one town and five townships. By 2012, the total population was 59,465, in which 24,006 were ethnic minorities, accounting for about 40% of the total population. The urban population in Yumin town was 20,200. The total GDP was CNY1.19 billion, ranking 91th, and the GDP per capita was CNY20,141, ranking 57th among all 99 cities/counties in XUAR. The GDP growth rate was 10.7%. The average disposable income for the urban residents was CNY 16,464 (entire prefecture), which is about 8% less than the average of XUAR of CNY 17,921. The county is a less developed area in comparison to the other cities/counties in central Xinjiang. The total amount of production is relatively small and the average person income is also below the regional average.


42. Yumin County is at the edge of Junggar Basin. The northern part is Weihu plain area with the elevations from 390 m to 500 m. The middle part is the deposit plain with the elevations from 500 m to 1,200 m and it is the agricultural area. The southern part is at Barerlu Mountain with thee elevations from 1,400 m to 2,000 m. There are 24 major rivers in the area, and most of them are between mountain valleys. Only five of them can be used for irrigation at the present time. The area has rich underground water resources. The available water resource is 90 million m3. The area is in a typical continental climate condition with long and cold winter, strong wind and plenty of sunshine. The average annual precipitation is only 270 mm and the evaporation is more than 3.9 times. The climate condition is summarized in Table 1.5.

Table 1.7 Summary of Yumin Climate Condition








Average humidity 60%


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7 Average Evaporation 1,050 mm

8 Maximum Velocity 36 m/s

9 Average Wind Velocity

10 Primary Wind Direction W

11 Frost Depth 1.3 m



43. According to the county master plan, the objective of the urban development is to build the county into an urban rural integrated center with better infrastructures, municipal services and living environment. The county will focus on developing Yumin Town as the political, culture and commercial center, and two corridors: i) Yumin to Baktu Port for border trade development; and ii) Yumin to Tuoli to connect to the regional industrial center. The county development plan is shown in Figure 1.23.

Figure 1.23 Yumin County Development Planning

44. The proposed project component is in Yumin Town. The existing urban area and land use are shown in Figure 1.24. Yumin has maintained a high growth rate (>10%) in the last several years. The current urbanization rate for Yumin County is less than 50%, and it is


47

expected it will reach 80% by 20309. The existing urban area cannot meet the fast growing needs. The project component will build new urban roads and upgrade the municipal services in the existing urban area.

Figure 1.24 Yumin Existing Land Use

45. The county government has developed an urban development master plan to expand the existing urban area. The strategy for the development is to protect and preserve the environment as the priority and to expand the urban area in a progressive manner. The fundamental principles for the development are to have the industrial development in north and living area in the west, and to have the green open space along the rivers at east and west sides of the town. Based on the urban development master plan, the existing urban area will be expanded towards north to develop a new urban area. The town land use master plan is shown in Figure 1.25. 46. The proposed project component will build the urban roads and municipal service facilities in the northern part of the existing urban area. The project will help Yumin County Government (YMCG) to upgrade the unban infrastructures and municipal services, provide the much needed urban facilities for industrial development, improve the living environmental and living condition, and help the local economic development. 47. Based on the proposed project components, the key control parameters from the city development master plan are summarized in Table 1.8.

9 Yumin County Master Plan (2012 - 2030).


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Figure 1.25 Yumin Land Use Master Plan

Table 1.8 Summary of Yumin Master Plan Development Criteria



Short Term 2015

Medium Term 2020

Long Term 2030



Long Term 120,000/80%

Yumin Town - Short Term 50,000

Yumin Town - Long Term 90,000

3 Urban Transport Promote public transport


Short Term 25,000 ton/day

Long Term 53,000 ton/day

5 Drainage System Partial combined

Stormwater discharge Rivers/ditches

Sewerage discharge Wastewater treatment plant

6 Wastewater/Water Supply Ratio 80%


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1.7 PROJECT RATIONALE AND JUSTIFICATION

48. The project will build and update the urban infrastructures and municipal service facilities in four city/counties in Tacheng Prefecture, including Tacheng City, and the towns of Emin County, Tuoli County and Yumin County. The proposed project components include building and rehabilitating urban roads and bridges, urban and rural alley rehabilitation, urban water supply piping network, urban drainage piping network, district heating primary piping network and heat exchange stations, MSW management and facilities, municipal service operation and maintenance (O&M) equipment, river rehabilitation and flood control, etc. The project will greatly help these border city and towns to improve their urban infrastructures and municipal services, to meet the increasing urban development and urbanization demands, to facilitate the central government and Xinjiang regional government investment and development for the area, to coordinate with the ongoing border trade facility development program by providing additional infrastructures and equipment to update the existing border trade facilities at Baktu Port, to provide more opportunities for improving the life of ethnic minorities, and to improve the environmental and living condition for the urban residents. 49. Xinjiang connects Asia to Europe by land transport and it is an important gateway for Europe to reach Asia and the sea ports along the Asia coastal line for trade and economic development. This trade route has been developed over thousand years, referred as "Silk Road" historically due to the trade between the PRC and Europe started with silk trading. The trade route has been maintained and developed especially in the recent history. The PRC government has paid special attention to strengthen the trade development along the border. In according to the Xinjiang 12th Five Year Plan10, strengthening the trade corridor development to connect Europe and Asia is one of the major focuses in the plan. Border trade is one of the important trade developments in Xinjiang. In 2012, the border trade amount accounted for about 35% of Xinjiang total trade volume. Tacheng has seven border ports with Kazakhstan including Baktu near Tacheng City. It is one of the two border trade routes connected to Europe in Xinjiang. In order to promote the border trade development, the central government has cooperated with the local government to build both expressway and railroad lines from Karamay to Tacheng, and also to upgrade the existing Baktu Port facilities. This will bring in a big opportunity for Tacheng to become a transportation hub and border trade center. It places a huge pressure to the local governments to upgrade their urban infrastructures and municipal services to facilitate the projected border trade development. More enterprises and businesses will be brought in export and import development. The border trade will play important role in the local economic development. The proposed project will help the local municipalities improve the urban infrastructures and municipal services at Liaota New district and at Baktu Port to facilitate the trade development. 50. In Tacheng city, many urban residents live in the areas without proper urban infrastructures and municipal services. Many urban alleys are without pavement and they will become difficult to access during the raining seasons. Many alleys are without street lighting and other fundamental facilities. The proposed project includes a component to improve the existing alleys in the exiting urban areas to provide new pavement, street lighting and other urban facilities. The component will improve the living condition of the existing urban residents and improve the urban living environment.

51. In comparison to other developed areas, even to the cities in central Xinjiang, Tacheng Prefecture is at a relatively remote and much less developed area. There are significant differences in economic productions and resident incomes between the area and other developed areas. The urban infrastructures and municipal services are out-of-date and require large investment for upgrading. It can be estimated that the urban development and living condition in Tacheng area is about many years lagging behind the more developed area. As 10

XUAR Economic and Social Development 12th Five Year Plan, January 2011


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more rural people migrating to the cities and the expected fast urban population growth, the existing urban infrastructures and municipal services are in urgent need for upgrading and improvements. Xinjiang is one of the targeted area receiving supports from the more developed areas in coastal and central PRC under the national policies of Western Development Strategy and Supporting Xinjiang Program. The central government has developed many policies and brought in a lot investment to help local urban development and city construction. The proposed project is in line with the PRC policy to support Xinjiang development, helping to improve and upgrade the urban infrastructures and municipal services, and helping reduce the poverty at this remote and less developed area.

52. Over fifty percent of the populations in Xinjiang are ethnic minorities. The living condition for the general population is not as good as those in the more developed areas. Tacheng is located in the relatively remote area and the living conditions are not good in comparison to other cities in Xinjiang and other parts of PRC. The proposed project will bring in direct and indirect benefits to the local population, especially for the ethnic minorities as the ADB safeguard policies to protect and help the ethnic minorities are well prepared and implemented. The direct benefits will involve the employment of the minorities during the construction and business activities caused by the project construction, while the long term benefits will come from the increased economic development resulted from the implementation of the project.

53. To facilitate the urban development, each municipality in the PRC is typically to have a city development master plan as the guidelines the urban development. The master plan outlines the development strategy, spatial layout and structure, control criteria, development targets, etc. Usually the master plan covers development strategy, urban development planning, land use, urban road and bridge, water supply, sanitary sewer, power supply, stormwater drainage, public transport, street lighting, etc. The planning period is usually for 20 years. The approved urban development plan is the official legal document for urban development and the city development shall follow the framework defined in the plan. The necessary adjustment and improvement to the master plan can be considered and accepted if there are strong justifications. The proposed project components are in line with the urban development master plan in each project city, and the proposed construction contents are in compliance of the city master plan. The implementation of the project will help the local government achieve their urban development goals. 54. Tacheng City and the towns of Emin, Tuoli, and Yumin are medium to small city and towns. Based on the lessons learned from the other parts of the PRC, the urban development shall consider pedestrian, non-motorized traffic (NMT) and public transport oriented development rather than the motor vehicle dominated urban transport. The urban development shall emphasize developing a people-centered integrated urban transport system consisting of motorized traffic, NMT, pedestrian and bicycle traffic, public bus, subway and railroad traffic, etc. with the emphasis on developing pedestrian, bicycle and public transportation system, especially for small and medium size cities. One of the very painful lessons learned from the PRC rapid urbanization in the past 20 or more years is the negligence of developing an effective pedestrian/bicycle and public transport, resulting in very bad traffic congestion, heavy air pollution, and noise in many major cities in the PRC. The project will promote the people-centered urban transport system to provide a more environmentally friendly and resident friendly urban transport system. 55. The existing MSW management system in the PRC is relatively primitive simply with collection, transport and disposal. There are practices in the current MSW handling involved secondary pollution, especially near the MSW collection stations. There are only very limited practices for reduce, reuse and recycle, referred as 3Rs principles. The key for MSW management is to reduce the final quantity for disposal, which will effectively reduce the demand for land resource uses, save money and protect the environment. The PRC central


51

government has developed and issued the policy to improve the MSW management promoting 3Rs principles. The project will bring in the 3Rs principles to develop the MSW component, develop and implement 2-bin system for MSW sorting and recycling, a direct collect and transport MSW handling procedures to eliminate collection or transfer station to avoid secondary pollution, and help the local governments improve the solid waste management system. 56. The Tacheng subproject will upgrade and build urban roads, water supply, sanitary drainage, heating, MSW management, rehabilitate and upgrade the exiting alleys, river rehabilitation for Kalanggur River, upgrade equipment for city operation and maintenance, security monitoring system for Baktu Port, and the management and maintenance equipment at Baktu Port. Tacheng City is the administration, cultural and business center for the prefecture and it is the development center for border trade, agricultural production and tourism development. The existing urban area cannot accommodate the fast population growth from the migration labor from the countryside and the fast pace of urbanization, especially the projected fast growth of border trade development. The lagging behind urban infrastructures and municipal services have put negative impacts on the local economic development including less competitiveness to attract more investments and skilled people. The subproject will help improve the living condition in the urban area and improve the investment environment to increase the city competiveness.

57. The Emin subproject will rehabilitate a section of the existing urban road and build new urban roads in the new urban area. Emin Town is another development center in the prefecture with strong local economy on agricultural production and tourism development. The county is an important production center for the border trade, especially for agricultural production and mining products. The existing urban area needs to be upgrades and the urban area needs to developed to accommodate the fast population growth from the migration labor from the countryside and the fast pace of urbanization. The subproject will help improve the living condition in the existing urban area, build new urban infrastructures and municipal service, and improve the investment environment to increase the town competiveness.

58. The Tuoli subproject will build a new outer ring road to accommodate the urban expansion needs. Tuoli is the industrial development center in the prefecture with high growth rate in the last several years. The county is also an important production center for the border trade development for the industrial products of non-ferrous metal. Furthermore, Tuoli is located on the route between Urumqi and Tacheng including Baktu Port, There are many bypass truck traffic going through the town urban area, causing traffic accident. The proposed subproject will build the Outer Ring Road so that the bypass traffic cannot go into the downtown area and it will improve the traffic safety consider significantly.

59. The Yumin subproject will rehabilitate existing urban roads and build new urban roads to accommodate the urban expansion needs. Yumin town is an urban-rural integrated center as the administration, business and production center for the county. Due to lack of investment, the existing urban infrastructures are out-of-date and cannot accommodate the fast population growth from the migration labor from the countryside and the fast pace of urbanization. The subproject will rehabilitate some existing urban roads and build some new urban roads, and it will help improve the living condition in the urban area and improve the investment environment to increase the town competiveness.


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II. THE PROJECT

A. Project Impact and Outcome

60. The project impact is the improved economic growth, border trade capacity and living conditions in the project border cities and counties. The project outcome is the improved urban infrastructures, municipal services and border trade capacity in project border cities and counties.

B. Project Outputs

61. There are five project outputs as shown in Table 2. 1 including: i) Tacheng City infrastructures, municipal services, district heating, MSW management, and river rehabilitation; ii) Emin County infrastructures and municipal services; iii) Tuoli County infrastructures and municipal services; iv) Yumin County infrastructures and municipal services, and v) capacity development and institutional strengthening.

(vi) Tacheng City Infrastructures, Municipal Services, District Heating, MSW Management, Alley Rehabilitation, Baktu Port Equipment Upgrade, and River Rehabilitation – The component will improve the urban infrastructures and municipal services in the existing and new urban areas, including: i) construction of 13 urban roads with a total length of 29.5 km for people centered urban transport system with emphasis on developing pedestrian/bicycle and public transport; ii) installation of a 45.4 km water supply piping network; iii) installation of a 48.8 km sanitary sewer piping network; iv) installation of a 37.2 km primary hot water heating pipe network and 21 hot water heat exchange stations; v) rehabilitation of 14.1 km alleys; vi) upgrade of security monitoring and MSW equipment for Baktu Port; vii) improvement of the MSW management by applying 3R principles; viii) city operation and maintenance (O & M) equipment upgrade; and ix) rehabilitation of 15.2 km Kalanggur.

(vii) Emin Town Infrastructures and Municipal Services – The component will

improve the urban infrastructures and municipal services in the existing as well as new urban area including: i) rehabilitation one and construction of 5 urban roads with a total length of 10.1 km; ii) installation of a 8.3 km water supply piping network; iii) installation of a 9.8 km sanitary sewer piping network, and iv) maintenance equipment upgrade.

(viii) Tuoli Town Infrastructures and Municipal Services – The component will

improve the urban infrastructures around the existing urban area by the construction of the outer ring road with a total length of 14.1 km, and the upgrade of city maintenance equipment

(ix) Yumin Town Infrastructures and Municipal Services – The component will improve the urban infrastructures and municipal services in the existing as well as new urban area including: i) rehabilitation three and construction of three urban roads with a total length of 9.7 km for people centered urban transport system with emphasis on developing pedestrian/bicycle and public transport, and ii) maintenance equipment upgrade.

(x) Improved Capacity and Institutional Arrangement – Provide support for project implementation on project management, institutional strengthening, capacity


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development and training. Capacity development on technical support, management support, financial management support, and other tasks to ensure the smooth implementation of all project components, including the soft components.


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Table 2. 1 Project Components

No Description

Type/

Classification Unit

Length/

Capacity Remark

1. Tacheng City Infrastructures, Municipal Services, Heating, MSW, Alley Rehab, Baktu Port Upgrade and River Rehabilitation

A Roads

1 Third Ring Road Urban Major m 3,867

2 Fifth Ring Road Urban Major m 2,678

3 Tiyuguan Xi Road Urban Major m 1,866

4 Chanye Yi Street Urban Major m 2,200

5 Chanye Nan San Road Urban Major m 1,800

6 Second Ring Road Secondary m 3,463

7 Tianyuan Nan Road Secondary m 2,032

8 Xixing Nan Road Secondary m 2,032

9 Heshan Nan Road Secondary m 2,032

10 Fourth Ring Road Secondary m 2,184

11 Chanye Si Street Secondary m 3,016

12 Hemei Road Urban Major m 1,656

13 Hemu Nan Road Secondary m 620

subtotal = 29,447

B Baktu Equipment

MSW and Street Cleaning Equipment set 1

Security Monitoring System set 1

C Alley Rehabilitation Branch m 14,057

D Municipal Service Facilities

Water Supply Pipe Network PE & DI pipe m 45,443

Sanitary Sewer Pipe Network HDPE & RC m 48,791

Primary Heating Piping Network Steel m 37,210

Heat Exchange Stations ea 21

E Kalanggur River Rehabilitation m 15,240

4 Bridges of 60 m span and 12 to 34 m wide

F Municipal Solid Waste Management

(MSW stations, toilets, garbage container, MSW equipment, etc.) LS 1

2. Emin Town Infrastructures and Municipal Services

A Emin Road and Bridge

1 Arxiate Road - Rehabilitation Urban Major m 3,224

Arxiate Road - New Urban Major m 664 New

2 Wenhua Road Secondary m 931

3 Guihua Wu Road1 Urban Major m 1,285

4 Guihua Qi Road Branch m 1,962

5 Guihua Jiu Road Secondary m 2,065

subtotal = 10,131

B Water Supply Pipe Network PE & DI m 8,260

C Sanitary Sewer Pipe Network RC & HDPE m 9,865

D Maintenance Equipment LS 1

3. Tuoli Town Infrastructures and Municipal Services

1 Outer Ring Road Urban Major m 14,090

2 Maintenance Equipment LS 1

4. Yumin Town Infrastructures and Municipal Services

A. Road and Bridge:

1 Guihua Yi Road Secondary m 1,476

2 Guihua Er Road Urban Major m 1,876

3 Longzhen Road (Rehab) Secondary m 2,338

4 Yujinxiang Road (Rehab) Secondary m 418

Yujinxiang Road (Rehab) Secondary m 953

Bus stations at Bilingual Kindergarten (in-lane bus stop -

1)

5 Honghua Road (Rehab) Branch m 1,168

Bus stations at County Hospital (in-lane bus stop -1)

6 Donghuan Road Secondary m 1,505

subtotal = 9,734

C. Water Supply m Note 1

D. Sanitary Sewer m Note 1

E. Urban Cleaning Equipment, MSW Container & Trash Bin set 1

5. Capacity Development and Institutional Strengthening

A Project implementation support

B Institutional Capacity Development

MSW = municipal solid waste

(Source: PPTA Consultant)

Notes: 1. The water supply and sewer pipe will be installed separately by using domestic funding.


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C. Project Special Features

62. The project is located in the relatively remote and less developed area in the far west of PRC at the border with Kazakhstan. In comparison to other small to medium cities in the mainland area, even to the other cities in central Xinjiang, the cities and towns in Tacheng Prefecture are much less developed with quite primitive urban infrastructures and municipal services. The project will try to improve the existing urban infrastructures and municipal services in considerations of the local actual conditions and to be compatible to the current existing infrastructures and services. The project will try to bring in new concepts and innovative approaches as the pilot and demonstration features as the guidelines for the cities and towns future development. The special features included in the project include:

a. People Centered Urban Transport System

63. Tacheng City is a small to medium size city with the urban population less than 100,000. Public bus, bicycle and walking are used to be the main travel means for the urban residents. However, as the fast growing of the numbers of private cars and the construction of more urban roads without much considerations for developing public transport, pedestrian and NMT facilities, the traffic congestion starts to become an urban development problem and the city is following the failure path of creating traffic congestion and air pollution like many other cities in PRC. As one of the special features, the proposed project pays special attentions to develop the people centered urban transport system. The proposed urban roads will include the separated NMT lanes when there are adequate space within the construction red lines; adequate widths of sidewalks are provided wherever is possible; public bus stations including bay bus stations are incorporated along the bus service lines; mixed motor vehicle lane and non motor traffic lane as well as the mixed pedestrian and NMT lane are avoided wherever possible; pedestrian crossing at the intersections and other urban traffic safety features are considered in the design.

b. Ecologically and Environmentally Friendly River Rehabilitation

64. The conventional river rehabilitation in PRC is typically to build wide concrete or stonemasonry harden river channel with the only consideration of flood protection. The drawback of this approach is to have negative impacts to the ecological and environmental conditions of the natural river system. The flow in the harden channel will discharge into the downstream more rapidly without much recharge to the ground; the water quality tends to deteriorate quickly without the filtration and cleaning actions from the vegetation along the natural riverbanks; and the harden river channel, sometimes the dry channel due to the seasonal flow, has negative impact to the urban development, especially losing the opportunities to provide more green space and recreation area for the urban residents. The proposed river rehabilitation component will apply the ecological river rehabilitation concept to integrate the flood control and urban green space development by using more natural and environmental friendly river embankment system. A compound river channel embankment system will be used, which is consisted of a narrow small first level river channel made from stone or gabion for the normal water flow and a wide second level river channel embankment made from vegetation reinforced by geogrids for passing flood water. During most time of the year, the second level river channel will work as the green space for the urban area, and it will serve as the river channel only during the flooding period, which may not happen in many years. The proposed river embankment system does not separate the river flow from the ground and part of flow can be recharged to the ground and the vegetation along the channel will help to clean and improve the water quality.

c. Improvement of MSW Management System

65. The existing MSW management system in Tacheng City is still the very old practice used in many PRC cities many years ago. The city established many MSW collection stations


56

at street intersections or street sides with the spacing less than 100 m. Currently there are close to 100 of such collection stations in the urban area. Among these collection stations, some use small steel plate houses, some use steel containers, and some use garbage barrels. The urban residents bring and place the garbage to the nearby collection station, and the city MSW trucks come to load the garbage, transport and dispose to the landfill site outside the city. The big problem for the system is the secondary pollution at the collection stations from bad smell and leachate, especially during the summer, and the impact to the urban living condition is pretty big due to the large numbers and close distances among the stations. This old practice had been abandoned in many cities in the more developed areas. The proposed MSW component will introduce the direct collection and disposal MSW management system at the selected communities to serve as the demonstration project feature. The MSW compaction trucks with automatic loading capacity and garbage barrels specially designed for the truck will be introduced. The truck can automatically load the garbage in the barrels, compact it and transport it to the landfill site outside city (at about 11 km) directly. The proposed component will setup the 2-bin garbage barrel stations near the front doors of the buildings at the selected communities. The residents can bring their recyclable and non-recyclable trashes to dispose into the corresponding garbage barrels, the community service crew or the private recycling venders will pick up the recyclable items and sending them to the recycling stations for profits. The remaining non-recyclable garbage will be picked up by the compaction trucks and disposed at the landfill site. Since the existing landfill site is only about 11 km outside the center city, it will be very efficient to use compaction MSW trucks to directly collect and dispose the garbage avoiding the secondary pollution caused by the garbage collection stations at the street corners. In addition, a demonstration recycle station will be setup at the selected communities with the separated recycle collection containers for paper, plastic, glass, and old clothes. The residents are encouraged to sort the waste at home to separate recycle and non-recycle items, bring and place the recycle items at the recycle station in their communities.

d. Stormwater Infiltration Using Roadside Vegetation Area

66. The climate condition in Tacheng area is an inland dry condition with limited precipitation. The average annual precipitation is less than 300 mm and most of it is at winter snow and summer months. The rainfalls are usually short and slow. As the result, most cities in Xinjiang do not have the separated stormwater drainage system at the time being. The more developed cities such as Urumqi have started to use the separated drainage system not very long ago. The urban runoff is simply discharged into the city sewer system or to the nearby rivers. In order to minimize the urban runoff flowing into the city sewer system, a roadside stormwater infiltration system will be used, which will allow the urban runoff to flow into the roadside vegetation area for infiltration to reduce the runoff amount flowing into the city sewer system. The infiltration system will not only recharge the water into the ground but also serve as to water the urban landscaping area. The roadside vegetation area will be set at a little lower elevation than the road surface and the openings or gaps will be placed on the curb to allow runoff flowing into the vegetation areas.

D. Project Cost Estimates and Financing Plan

67. Based on the draft feasibility study report (FSR), the overall estimated project cost is $301.10 million. ADB will finance $150 million, or 49.82% of total investment. For Tacheng City subproject, the total subproject cost is $221.37 million and ADB will finance $110 million or 49.69% of the subproject cost. For Emin County subproject, the total subproject cost is $36.09 million and ADB will finance $15 million or 41.56% of the subproject cost. For Tuoli County subproject, the total subproject cost is $25.74 million and ADB will finance $15 million or 58.27% of the subproject cost. For Yumin County subproject, the total subproject cost is $17.89 million


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and ADB will finance $10 million or 55.89% of the subproject cost. The cost estimates and the proposed financing plan are shown in Table 2. 2 and Table 2. 3, respectively.

Table 2. 2 Project Investment Plan

Item


A. Base Costb






Subtotal (A) 1,583.4 263.90 87.1%



1,817.2 302.87 100.0%



c

d


Amounta Share of

Total (%)

Total (A+B+C)




exchange rate.





Table 2. 3 Project Financing Plan

Share of







Total 1,817.25 302.87 100.00%


SourceAmount


E. Implementation Arrangement

68. The executing agency (EA) for the project is Tacheng Prefecture Government (TPG). The implementing agency (IA1) for Tacheng City subproject is Tacheng Municipal Government (TCMG) who is responsible for the implementation of urban roads and bridges, water supply, sanitary sewer, district heating, alley rehabilitation, MSW improvement, Baktu Port equipment upgrade, and Kalanggur River rehabilitation. The implementing agency (IA2) for Emin Subproject is Emin County Government (EMCG) who is responsible for the implementation of roads, bridges and municipal services. The implementing agency (IA3) for Tuoli Subproject is Tuoli County Government (TLCG) who is responsible for the implementation of Outer Ring Road construction. The implementing agency (IA4) for Yumin Subproject is Yumin County Government (YMCG) who is responsible for the implementation of roads and municipal service.


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69. A project leading group (PLG) has been established in the TPG to provide overall guidance and coordination for the project preparation and implementation. The PLG is chaired by the vice governor of the TPG with representatives from the Tacheng Prefecture Development and Reform Commission (TPDRC), Tacheng Prefecture Finance Bureau (TPFB), Tacheng Prefecture Housing and Construction Bureau (TPHCB), Tacheng Prefecture Environmental Protection Bureau (TPEPB), TCMG, EMCG, TLCG, and YMCG. The PLG will provide overall policy guidance, facilitate interagency coordination, and resolve any institutional problems affecting project preparation and implementation. A project management office (PMO) has been established under the TPDRC to provide overall guidance, supervision, coordination, and management of project preparation and implementation.

70. In Tacheng City, a city level PLG has been established for overall guidance and inter-agency coordination. It is headed by the vice mayor with the members of the director or deputy directors from the municipal Housing and Construction Bureau (HCB), Development Reform Commission (DRC), Finance Bureau (FB), Environmental Protection Bureau (EPB), Water Resource Bureau (WRB), and Liaota New District Commission (LTND). An IA PMO has been established under the municipal DRC, headed by the DRC director, responsible for routine management for preparing and implementing the Tacheng subproject. There are three project implementing units (PIU) under Tacheng City PMO. The LTND will be PIU 1 to implement the roads, bridges, water supply, sanitary sewer, district heating, Baktu equipment upgrade and MSW improvement in Liaota New District. The municipal WRB will be PIU2 to implement Kalanggur River rehabilitation. The municipal HCB will be PIU3 to implement alley rehabilitation and MSW improvement in the existing urban area. 71. In Emin County, a county level PLG has been established for overall guidance and inter-agency coordination. It is headed by the vice county commissioner with the director or deputy directors from the county HCB, DRC, FB, and EPB. An IA PMO has been established under the county DRC, headed by the DRC director, responsible for routine management for preparing and implementing the Emin subproject. The local HCB will work as the PIU for implementing the Emin subproject of urban infrastructure and municipal services.

72. In Tuoli County, a county level PLG has been established for overall guidance and inter-agency coordination. It is headed by the vice county commissioner with the director or deputy directors from the county HCB, DRC, FB, and EPB. An IA PMO has been established under the county DRC, headed by the DRC director, responsible for routine management for preparing and implementing the Tuoli subproject. The local HCB will work as the PIU for implementing the Tuoli subproject of urban infrastructure and municipal services.

73. In Yumin County, a county level PLG has been established for overall guidance and inter-agency coordination. It is headed by the vice county commissioner with the director or deputy directors from the county HCB, DRC, FB, and EPB. An IA PMO has been established under the county DRC, headed by the DRC director, responsible for routine management for preparing and implementing the Yumin subproject. The local HCB will work as the PIU for implementing the Yumin subproject of urban infrastructure and municipal services.

74. At Xinjiang Uygur Autonomous Region government level, there is a project management office (Xinjiang PMO) to overlook all foreign funded projects in Xinjiang. Xinjiang PMO is established in Xinjiang Housing and Construction Department with the representatives from Xinjiang Finance Department and Xinjiang DRC. Xinjiang PMO has managed and overlooked all 6 ADB projects in Xinjiang and is very experienced in managing ADB and other foreign funded projects. For this project, Xinjiang PMO will play a very important role for the project preparation and future implementation to provide overall guidance, advices, and interagency coordination among Xinjiang autonomous region government.


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75. A project implementation institute arrangement organization chart is shown in Appendix B. A contractual arrangement among all parties including ADB, MOF, TPG, TCMG, EMCG, TLCG, and YMCG is shown in Appendix C.

F. Project Approval and Timetable

76. For a successful implementation of the project, it is essential to obtain all required approvals and to secure all funding sources identified in the financing plan. It is more critical that the project shall be processed following both domestic and ADB procedures in a synergy way, and the domestic and ADB approvals shall be processed in a synchronized manner.

Domestic Approvals

77. Some ADB approvals can only be processed after domestic approvals such as Preliminary Land Use Application, EIA, FSR, etc. The delay of those domestic actions and approvals may impact the ADB loan processing. The domestic approvals and actions, both approved and to be approved (with target dates), are shown in Table 2. 4 and Table 2. 5, respectively.

Table 2. 4 Timetable for Major Domestic Approvals

No Item Approval Agency Approval

Date Target Date

1 Project Identification Document and Approval

XDRC Dec 2013

2 Preliminary Land Use Application11

XLRD Oct 2014

3 Environmental Impact Assessments (EIAs) TPEPB Oct 2014

4 Feasibility Study Report XDRC Oct 2014

5 Resettlement Plans Local Government Nov 2014

6 Preliminary Design XDRC Jan 2015

7 Foreign Capital Utilization Report NDRC Dec 2014

8 Project Evaluation Opinion Report MOF Dec 2014

9 Project Negotiation Approval State Council Jan 2015

10 Loan Negotiation MOF/ADB Feb 2015

11 Land Acquisition Approval XLRD Apr 2015

12 Bidding Document Approval for Advanced Contracting

ADB Jan 2015

13 Contracts Award for Advanced Contract Packages

EA/IAs Mar 2015

14 Bidding Document Preparation IAs Feb 2014

15 Bidding Document Approval ADB Mar 2015

16 Solicit Implementation Consultant PMO Apr 2015

17 Begin Construction for Advanced Contracting Packages

EA/IA Apr 2015

18 Begin Construction other Packages EA/IAs May 2015

11

The approval of the Land Use Certificate is required for FSR approval and it could take up to 6 months to process

the approval.


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ADB = Asian Development Bank, EA = executing agency, IA = implementing agency, MOF = Ministry of Finance, NDRC = National Development and Reform Commission, PMO = project management office XDRC = Xinjiang Development and Reform Commission, XEPD = Xinjiang Environmental Protection Department, XLRD = Xinjiang Land and Resources Department (Source: PPTA Consultant)

78. In consideration of the current project status, the consultant recommends the EA/PMO exercise close coordination and supervision over the FSR, EIA, and land use submission and approval processes to ensure the approvals meet the target dates, especially to secure the preliminary land use application which is the precondition of the FSR approval by Xinjiang DRC.

Timetable for PPTA and Loan Processing

Table 2. 5 Timetable for PPTA and ADB Process and Approval

No Milestone Approval Date Target Date

1 Commencement of PPTA Jan 2, 2014

2 Submission of Inception Report Feb 15, 2014

3 Inception Mission Feb 24-28, 2014

4 Draft CEIA Submission May 10, 2014

5 Draft Social Development Action Plan May 10, 2014

6 Draft Social and Poverty Impact Report May 10, 2014

7 Draft Gender Action Plan May 10, 2014

8 Draft SPRSS May 10, 2014

9 Draft Ethnic Minority Development Plan May 10, 2014

10 Draft Resettlement Plan May 10, 2014

11 Draft Summary of Resettlement Plans May 10, 2014

12 Submission of Interim Report May 10, 2014

13 Interim Review Mission May 12-16, 2014

14 IEE Submission Sep 23, 2014

15 Social Poverty Analysis Report Oct 15, 2014

16 Social Development Action Plan Oct 15, 2014

17 Gender Action Plan Oct 15, 2014

18 Ethnic Minority Development Plan Nov 25, 2014

19 Resettlement Plans Nov 30, 2014

20 Summary Resettlement Plans Nov 30, 2014

21 SPRSS Oct 15, 2014

22 Submission of Draft Final Report Jul 21, 2014

23 DFR Review/Fact-Finding Mission Aug 4-14, 2014

24 Submission of Final Report Nov 30, 2014

25 Management Review Meeting Jan 15, 2015

27 Loan Negotiations Feb 2015

28 Board Approval Mar 2015

29 Loan Signing Mar 2015

30 Loan Effectiveness Jul 2015

CEIA = Consolidated Environmental Impact Assessment, SPRSS = Summary Poverty Reduction and Social Strategy, DFR = draft final report, PPTA = Project Preparatory Technical Assistance (Source: PPTA Consultant)


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79. It is assumed that the advanced contracting and retroactive financing shall be applied to start the construction earlier. In accordance with ADB policy, the retroactive financing contracts can be procured after the loan appraisal and 12 months before the loan is effectiveness. At this stage, the timetable is an overview only and has not yet identified all the actions and supporting documentation required for the ADB Loan Fact-Finding and so on. This more detailed listing will depend on issues identified as the PPTA progresses and on what assurances to ADB will be required.

G. Key Issues

80. The PPTA consultants have reviewed the existing project information, conducted field visits, and performed the preliminary evaluation and assessment for the project. Based on the preliminary finding and assessment, the following key issues have been identified, which may have significant impact on the outcome of the project.

Institutional Strengthening for Project Preparation, Implementation and O&M

81. In order to ensure the successful preparation, the implementation and later O&M of the project, a project management organization with all required units including engineering, construction management, contract management, social and safeguard, accounting and disbursement, etc. with adequate staffing will be required. The PMO director or deputy director shall be full time staff with the sole responsibility to manage and coordinate the project preparation and more importantly the project implementation later on. It is important that the management organization and management staff who are involved in the project preparation shall be the ones to be responsible for the project implementation due to the special requirements from ADB during the project preparation and to ensure these special requirements to be met during the project implementation. The very important issue is the continuation of the management organization and management staff. Currently, the EA PMO is at the TPDRC, which will provide coordination and overview of the project preparation and implementation. The actual daily operation for the subproject preparation and implementation will be undertaken by the PIUs in the four subproject city and counties. The current institutional arrangement is not strong enough for the project preparation and it will be more demanding during the project construction period. The strong PMO/PIUs with adequate full-time staff are the precondition of the successful implementation of the project. The PMO/PIUs shall have the capacity to handle project management, construction management, contract management, safeguard assurance, financial management and disbursement, and other project implementation tasks. At the present time, the PMO and PIUs are relatively weak without adequate full-time staff. It is critical to staff up the PMO and PIUs at the present time so that the PMO and PIU staff can be trained by the consultants during project preparation stage and prepared for the future project implementation. The current institutional arrangement will need a very strong support from the implementation consultants as well as long term on-job training in order to fulfill the ADB project management requirements and to ensure the successful implementation of the project.

PPTA Consultant Eligibility for Working on Project Implementation

82. The PPTA consultant will complete the project preparation in about six (6) months and

leave the project site. A new consultant team will be solicited per ADB consultant selection

procedures to provide consulting services for the project implementation. ADB has a policy that

the PPTA consultant will not be eligible to work on the project implementation if the consultant

is involved in preparing the terms of reference (TOR) for the loan implementation consultant. In


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order to keep HJI Group eligible to be considered for the future loan implementation phase, the

PPTA consulting team will not be involved in the preparation of the TOR.


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III. DUE DILIGENCE

A. Engineering and Technical Assessment

A.1 Tacheng Subproject

A.1.1 Tacheng Roads and Bridges

83. The project component will construct 13 roads, of which 6 are urban major roads and 7 are urban secondary roads, and six 20 meter span bridges. The total road length is 29.5 km. The roads, as shown in Figure 1.3, are part of the new urban road networks at Liaota New District, which is the administration and supporting area for Baktu Port at about a few kilometers west at the border with Kazakhstan. The construction of the new urban area started a few years ago and some of the urban major roads have been completed or under construction. The proposed road component will build the remaining urban roads around the center of the new area to form the road network so that they can be more functional to serve the area. The road network will connect the new urban area to the existing center city, and they are in compliance of the approved city master plan for the urban area and will serve as the first batch of the roads to provide the essential urban infrastructures for the new urban area. The summary of the roads and bridges is shown in Table 3A.1.

Table 3A. 1 Tacheng Road and Bridge Summary

No Name Classification

Design Speed

(km/h)

Design Live

Load Length (m)

1 Third Ring Road Urban Major 50 50 BZZ-100 3,867

Third Ring Road Bridge 20 m single span void slab, 36 m width Roadway I

Bus Station (7 in-lane bus stops)

2 Fifth Ring Road Urban Major 50 50 BZZ-100 2,678

Fifth Ring Road Bridge 20 m single span void slab, 36 m width Roadway I


3 Tiyuguan Xi Road Urban Major 30 50 BZZ-100 1,866

4 Chanye Yi Street Urban Major 46 50 BZZ-100 2,200

Chanye Yi Street Bridge 20 m single span void slab, 36 m width Roadway I


5 Chanye Nan San Road Urban Major 46 50 BZZ-100 1,800

6 Second Ring Road Secondary 42 40 BZZ-100 3,463

7 Tianyuan Nan Road Secondary 42 40 BZZ-100 2,032

8 Xixing Nan Road Secondary 42 40 BZZ-100 2,032

9 Heshan Nan Road Secondary 42 40 BZZ-100 2,032

Heshan Nan Road Bridge 20 m single span void slab, 36 m width Roadway II

10 Fourth Ring Road Secondary 42 40 BZZ-100 2,184

11 Chanye Si Street Secondary 36 40 BZZ-100 3,016

Chanye Si Street Bridge 20 m single span void slab, 30 m width Roadway II

12 Hemei Road Urban Major 50 50 BZZ-100 1,656

13 Hemu Nan Road Secondary 36 40 BZZ-100 620

Hemu Nan Road Bridge 20 m single span void slab, 30 m width Roadway II

Total = 29,447

(Source: PPTA Consul tants )

ROW

Width

(m)

84. The design of the urban roads is based on the principle of promoting people centered urban transport system with emphasis on providing pedestrian and NMT and public transport facilities. The separated NMT lanes are provided wherever there is enough space within the construction red lines, the adequate sidewalk width is provided, and the type and location of


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bus stations are considered. The road cross section details, including the bridges, are summarized in Table 3A. 2

Table 3A. 2 Tacheng Road and Bridge Cross Section Details

R Sdwk (m) R NMT (m)

R Shldr/

Sep (m) R Lane (m)

Median

(m)

L Lane

(m)

L Shldr/ Sep

(m)

L NMT

(m)

L Sdwk

(m)

ROW

(m)

Third Ring Road 3.00 4.00 3.00 11.00 8.00 11.00 3.00 4.00 3.00 50.00

Third Ring Road Bridge 3.00 4.00 0.00 11.00 0.00 11.00 0.00 4.00 3.00 36.00


Fifth Ring Road 3.00 4.00 3.00 11.00 8.00 11.00 3.00 4.00 3.00 50.00

Fifth Ring Road Bridge 3.00 4.00 0.00 11.00 0.00 11.00 0.00 4.00 3.00 36.00


Tiyuguan Xi Road 2.00 4.00 2.00 7.00 0.00 7.00 2.00 4.00 2.00 30.00

Chanye Yi Street 3.00 4.00 5.00 11.00 0.00 11.00 5.00 4.00 3.00 46.00

Chanye Yi Street Bridge 3.00 4.00 0.00 11.00 0.00 11.00 0.00 4.00 3.00 36.00


Chanye Nan San Road 3.00 4.00 5.00 11.00 0.00 11.00 5.00 4.00 3.00 46.00

Second Ring Road 3.00 4.00 3.00 11.00 0.00 11.00 3.00 4.00 3.00 42.00

Tianyuan Nan Road 3.00 4.00 3.00 11.00 0.00 11.00 3.00 4.00 3.00 42.00

Xixing Nan Road 3.00 4.00 3.00 11.00 0.00 11.00 3.00 4.00 3.00 42.00

Heshan Nan Road 3.00 4.00 3.00 11.00 0.00 11.00 3.00 4.00 3.00 42.00

Heshan Nan Road Bridge 3.00 4.00 0.00 11.00 0.00 11.00 0.00 4.00 3.00 36.00

Fourth Ring Road 3.00 4.00 3.00 11.00 0.00 11.00 3.00 4.00 3.00 42.00

Chanye Si Street 2.00 4.00 4.00 8.00 0.00 8.00 4.00 4.00 2.00 36.00

Chanye Si Street Bridge 3.00 4.00 0.00 8.00 0.00 8.00 0.00 4.00 3.00 30.00

Hemei Road 3.00 4.00 3.00 11.00 8.00 11.00 3.00 4.00 3.00 50.00

Hemu Nan Road 2.00 4.00 4.00 8.00 0.00 8.00 4.00 4.00 2.00 36.00

Hemu Nan Road Bridge 3.00 4.00 0.00 8.00 0.00 8.00 0.00 4.00 3.00 30.00

ROW = right-of-way (red l ine), R = right, L = left, Sdwk = s idewalk, Shldr = shoulder, Sep = separation


Cross Section

• Second Ring Road

85. The approved urban master plan for the road network in the area is in a hexagon pattern with seven ring roads around the hexagon center and numbers of radial roads from the center of hexagon. The First ring Road and the 2 major radial roads, No. 1 Road and No. 2 Road are completed or under construction. The proposed road is the second ring road around the hexagon center. The road has 42 m construction red line width and the cross section includes 3 m sidewalk, 4 m separated NMT lane, 3 m vegetation separation, and 3 vehicle lanes in each direction. The typical road cross section is shown in Figure 3A. 1

Figure 3A. 1 Second Ring Road, Tianyuan Nan Road, Xixing Nan Road, Heshan Nan Road,

Fourth Ring Road

• Third Ring Road, Fourth Ring Road, Fifth Ring Road

86. The proposed roads, as indicated by their names, are the third, fourth and fifth ring roads around the hexagon center. The proposed component will construct these roads in the


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southwest quadrant only. Third Ring Road and Fifth Ring Road are the urban major roads with the construction red line width of 50 m, and their road cross sections include 3 m sidewalk, 4 m separated NMT, 3m vegetation separation, and 3 travel lanes in each direction. The in-lane type public bus stations will be built along Third and Fourth Ring Roads. The typical road section is shown in Figure 3A. 2. An 8 m vegetation median is provided to separate the roadway in each direction. There is a 20 m single span bridge carrying the road over a small stream in both Third Ring and Fourth Ring Roads. The bridge width is 36 m, which is not consistent with the roadway width. The road has an 8 m median, and how to make the transition from the roadway to the bridge shall be detailed in the nest step preliminary design. Fourth Ring Road is an urban secondary road with the construction red line of 42 m, and its cross section includes 3 m sidewalk, 4 m separated NMT, 3 m vegetation separation, and 3 travel lanes in each direction, and the road typical section is shown in Figure 3A. 1.

Figure 3A. 2 Third and Fifth Ring Roads Cross Section

• Changye Yi Street, Tiyuguan Xi Road

87. These two roads are basically the sixth road in the southwest quadrant. They are urban major roads with the construction red line widths of 46 m and 30 m, respectively. Changye Yi Street's cross sections include 3m sidewalk, 4 m separated NMT lane, 5 m vegetation separation, and 3 travel lanes in each direction. The in-lane public bus stations will be built along Changye Yi Street. Tiyuguan Xi Road's cross section includes 2m sidewalk, 4 m NMT lane, 2m vegetation separation and 2 travel lanes as shown in Figure 3A. 4. The Tiyuguan Xi Road is also serves as the south-north connection road between the center city and the Liaota New District and the Baktu Port.

Figure 3A. 3 Changye Yi Street and Changye Nan San Road


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Figure 3A. 4 Tiyuguan Xi Road Cross Section

• Changye Si Street

88. Chang Ye Si Street is an urban secondary road parallel to Changye Yi Street in northwest - southeast direction. It is a road outside the hexagon road network. The construction red line width is 36 m, and the road cross section includes 2 m sidewalk, 4 m NMT lane, 4 m vegetation separation, and 2 travel lanes in each direction. The typical cross section is similar to that of Tiyuguan Xi Road, but with wider vegetation separation (4m) and travel lane (8 m).

• Tianyuan Nan Road, Xixing Nan Road, Heshan Nan Road, Hemu Nan Road, Hemei

Road

89. These roads are radials from the center of the hexagon. Hemei Road is the urban major road with the construction red line of 50 m. The road cross section is the same as the Third and Fourth Ring Roads, i.e., 3 m sidewalk, 4 m NMT lane, 3 m vegetation separation, and 3 travel lanes in each direction, as well as 8 m vegetation median as shown in Figure 3A. 2. Tianyuan Nan Road, Xixing Nan Road and Heshan Nan Road are urban secondary with the construction red line widths of 42 m. Their road cross sections include 3 m sidewalk, 4 m NMT lane, 3 m vegetation separation, and 3 travel lanes in each direction. The typical road cross section is shown in Figure 3A. 5. Hemu Nan Road is also an urban secondary road. The construction red line width is 36 m. and the road cross section includes 2 m sidewalk, 4 m separated NMT lane, 4 m vegetation separation, and 2 travel lanes in each direction. The road cross section is similar to that of Tiyuguan Xi Road as shown in Figure 3A. 4.

Figure 3A. 5 Tianyuan Nan Road, Xixing Nan Road, Heshan Nan Road


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• Changye Nan San Road

90. The road is an urban major road in south-north direction connected to Tiyuguan Xi Road and Changye Yi Street. The construction red line width is 46 m, and its cross section includes 3m sidewalk, 4m NMT lane, 5 m vegetation separation, and 3 travel lanes in each direction as shown in Figure 3A. 3.

A.1.2 Baktu Port Equipment Upgrade

91. In order to support the planned Baktu Port upgrade project, the project will provide the additional support to supplement the planned upgrade project. The subcomponent will provide security monitoring system at the port, MSW handling equipment, and the operation and maintenance equipment for the port service area and facilities. The summary of the equipment upgrade is shown in Table 3A. 3.

Table 3A. 3 Baktu Port Equipment Upgrade

No Name Unit Quantity Remark

1 Water Spray Truck (40 ton/hour) ea 1

2 MSW Compaction Truck (5 ton) ea 1

3 Street Cleaning Truck ea 2

4 Cheery Picker (16 m) ea 1

5 Snow cleaning truck/plow (2.2 m wide) ea 2

6 Snow Sweeping Vehicle (3.0 m wide) ea 1

7 Emergency Repair Vehicle (2.0 L) ea 2

8 Garbage Barrel (0.34 m^3) ea 30

9 2-bin Trash Bin (50L) ea 60

10 Security Monitoring System set 12


A.1.3 Tacheng Alley Rehabilitation

92. Due to lack of funding, a lot of alleys in the urban area as well as at the junction between urban and rural areas are in poor shape. Many of them are not paved and without proper street lighting. The living condition of these areas is quite bad. The project will improve the living condition of these areas by providing pavement as well as street lighting on those deteriorating alleys. The alley rehabilitation will cover the center city and the villages next to the city including Bali Village, Kalanggur Village, Yuanyi Village, Zuogong Village and Kaladun Village. The total length of the rehabilitated alleys is about 14.1 km, and the details are summarized in Table 3A. 4.


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Table 3A. 4 Summary of Alley Rehabilitation

No Description

Width

(m)

Length

(m) Remark

1 Center City

Alley 1 4 207

Alley 2 5 187

Alley 3 5 644

Alley 4 4 155

Alley 5 5 423

2 Bali Village subtotal = 1,617

Alley 1 7 729

Alley 2 4 246

Alley 3 5 384

Alley 4 4 270

Alley 5 5 305

Alley 6 6 653

Alley 7 6 385

Alley 8 5 334

Alley 9 5 161

Alley 10 5 142

3 Kalanggur Village subtotal = 3,608

Alley 1 4 534

Alley 2 4 111

Alley 3 4 140

Alley 4 4 80

Alley 5 4 196

Alley 6 4 251

4 Yuanyi Village subtotal = 1,312

Alley 1 4 169

Alley 2 4 209

Alley 3 4 63

Alley 4 4 62

5 Zuogong Village subtotal = 503

Alley 1 3 97

Alley 2 5 79

Alley 3 4 41

Alley 4 4.5 74

Alley 5 4.5 94

Alley 6 3 97

Alley 7 4.5 251

Alley 8 4.5 519

Alley 9 3 501

Alley 10 3 495

Alley 11 3 486

6 Kaladun Village subtotal = 2,735

Alley 1 4 194

Alley 2 7 253

Alley 3 3 54

Alley 4 4 135

Alley 5 5 1,059

Alley 6 6 269

Alley 7 5 538

Alley 8 5 127

Alley 9 5 116

Alley 10 6 149

Alley 11 5 191

Alley 12 5 802

Alley 13 5 194

Alley 14 4 89

Alley 15 4 112

subtotal = 4,282

Total = 14,057



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A.1.4 Tacheng Water Supply

93. There are three water supply plants (WTP) in Tacheng, No 1, 2 and 3 WTP, but only No.3 WTP is operational with the daily water supply capacity of 15,000 ton/day. The plant was built in 1993 and there 4 wells as the water source. A new water treatment plant, No. 4 WTP has been planned with daily water supply capacity of 13,000 ton/day. The underground water will be used as the water source. A water transmission project to transmit water from Abdulla River is in planning. The short term water supply capacity will be 40,000 ton/day and the long term capacity will be 120,000 ton/day. In addition, there are many private water wells to supplement the municipal water supply. Based on the demand analysis, after the completion of the planned WTPs, the municipal water supply will have adequate capacity for both existing and the new urban area. 94. The water supply component will build water distribution network from the existing WTP to the new urban area. Most of the water distribution pipes will be constructed along the new urban roads in the project. The project will build a total of 47.7 km water supply pipeline and the associated fire hydrants, manholes and other related facilities. The summary of the water supply component is shown in Table 3A. 5.

Table 3A. 5 Summary of Water Supply Component

No Name

Diameter

(mm)

Pipe

Material

Length

(m) Remark

1 PE Pipes DN150 PE 1100

DN200 PE 5277

DN300 PE 18949

2 Ductile Iron Pipes subtotal = 25,326

DN400 DI 13194

DN500 DI 2727

DN700 DI 4196

subtotal = 20,117

Total Length = 45,443

Type Unit Quantity

3 Water Supply Facilities

Valve manhole (D = 1500) Conc Block ea 130

Discharge manhole (D = 1200) Conc Block ea 5

Air release manhole (space = 1 km) Conc Block ea 48

Fire hydrant (Spc < 120 m) ea 480

DI = Ductile Iron Pipe, PE = Polyethylene Pipe


A.1.5 Tacheng Sanitary Sewer

95. There are two existing sanitary sewer lines along the exiting No. 1 and No. 2 Roads in Liaota New District. The existing sewer lines are connected to the existing wastewater treatment plant (WWTP) at south side of Tacheng City. The project will build the sanitary sewer network connecting to the existing WWTP. Most of the sewer pipe will be built along the new


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urban roads. A total of 48.8 km sewer pipe line will be built including 1,220 manholes. The summary of the sanitary sewer system is shown in Table 3A. 6.

Table 3A. 6 Summary of Sanitary Sewer

1 HDPE Pipe DN300 HDPE 10,415

DN400 HDPE 16,010

2 Reinforced concrete pipe DN500 RC 10,361

DN600 RC 3,555

DN700 RC 4,250

DN800 RC 4,200

Total = 48,791

3 Manhole (ea) 1250 mm 1,220


A.1.6 Tacheng District Heating

96. The project component will build the primary heating network and heat exchange stations in the new urban area. Currently there are three existing heating providers in Tacheng City. Tacheng Hongrui Heating Company (formerly Runsheng Heating Company) has 3 boilers with the capacities of 2x29 MW, 58 MW and 91 MW, and 19 heat exchange stations to provide heating to the center city area. The service area is about 1.83 million m2. Tacheng Yitong Heating Co Ltd has two boiler houses with 3 boilers with capacities of 29 MW, 14 MW and 2x70 MW to provide heating service to the eastern part of the city. The company possesses 11 heat exchange stations and the service area is about 1.35 million m2. Western Tacheng Weicheng Heating Company (formerly Luyuan Heating Company) possesses two boilers of 29 MW and 46 MW and 13 heat exchange stations with the service area of about 1.27 million m2. The plant is under expansion to install 2x70 MW boilers, which will be in operation by the end of 2014. 97. The heat source of the proposed heating component will come from a combined heating and power plant (CHP) to be invested and built by China Xinjiang Power Investment Company. The CHP is located in industrial area of Liaota New District, and it will install 2x350MW combined heat and power boilers. The generated heat will be connected to the existing heating network from the three existing heating companies to provide heating for the entire urban area. As the CHP become operational and start to supply heat, the three existing heating plants will only serve as the supplementary heat sources during the peak heat supply periods. Before the CHP is completed and operational, the existing heating plants will provide the heat to the new urban area in short term.

98. The proposed heat component will build 35.5 km primary heating pipe network and 21 heat exchange stations with the capacities ranging from 100,000 to 200,000 m2. The insulated steel heating pipe will be used using the direct burry construction method. The summary of the heating components is shown in Table 3A. 7.


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Table 3A. 7 Summary of Heating Component

1 Primary Heating Piping Network

D219×6 Steel 1.6 130/70 560 1 way

D273×6 Steel 1.6 130/70 3,460 (typ)

D325×7 Steel 1.6 130/70 1,113

D377×7 Steel 1.6 130/70 932

D426×7 Steel 1.6 130/70 918

D478×7 Steel 1.6 130/70 1,033

D630×8 Steel 1.6 130/70 1,585

D820×8 Steel 1.6 130/70 4,708

D1020×10 Steel 1.6 130/70 2,731

D1220×8 Steel 1.6 130/70 1,565

subtotal = 18,605

Total Length = 37,210

2 Heat Exchange Stations Type Unit Quantity

#1 to #3 150,000 m2

3

#4 to #17 200,000 m2

14

#18 to #21 100,000 m2

4

Total = 21


A.1.7 Kalanggur River Rehabilitation

99. The Kalanggur River is an inland river in Tacheng area. The estimate river length is 28.9 km and the drainage area is about 249 km2. Kalanggur Reservoir is located at about 43 km north of Tacheng City. The reservoir design capacity is 3900x104m3, the dam length is 465.4 m and the height is 61.5 m. The maximum flood discharge rate is 185.6 m3/s. Based on the historical record, the largest flood was in 1993 and the flood flow reached 127 m3/s. 100. Kalanggur River runs through the western part of Tacheng City. According to the city master plan, the area along the river will be the city tourism development area and urban green development area. A city park will be developed around the existing river section near the downstream of the highway bridge.

101. The river rehabilitation component will build river embankment for the river section running through Tacheng urban area with a total length of 15.2 km, and the landscaping tree lines along both sides of the river. It is the government intention to integrate the river flood control, landscapings and the urban green open space development. The rehabilitation scheme is developed based on the principles of ecologically friendly river rehabilitation by using more natural materials such as stones and vegetation. A compounded river embankment cross section is adopted with the first level embankment made from natural stones to contain normal water flow, and the second level embankment made from vegetations and bushes reinforced by geogrid to contain large flow during the flooding periods. During the normal time, the second level embankment will serve as the urban green area for open space and recreation area.

102. The river rehabilitation includes 6 sections:

a. Sta. 7+400 to Sta. 9+400 (L = 2.0 km) 103. This is the beginning section of the river rehabilitation. Both sides of the river are mainly farmland and natural open area. The gabion will be used for the river embankment and the river channel width is 120 m and the average gabion embankment height is about 1.8 m.

b. Sta. 9+400 to Sta. 17+121 (L =7.7 km)


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104. The area along the river channel will be the urban green area. The compound river embankment system is used. The first level river channel and embankment, at 20 m width and the average depth of 0.5 m, is constructed with natural stones for normal river flow. The second level embankment has two sections with 25 m wide at each. The first section is the lower embankment next to the main channel. The embankment is made from the geogrid reinforced natural grass surface. The second section is the upper part of the embankment made from geogrid reinforced bushes. The total width of the second level embankment is 50 m at each side of the river. At the top of the river embankment, a 20 m wide landscaping tree line will be planted at both sides of the river, and a passage way at the top of the embankment to serve both as flood control service and maintenance access and the walking trail for city green space will be included.

c. Sta. 17+121 to Sta. 21+607 (L = 4.5 km)

105. This section of the river rehabilitation is not included in the project. The rehabilitation work of the section is done by designated funding from the Ministry of water Recourse. A conventional reinforced concrete embankment has been used and the construction is underway. The river embankments from the project need to be integrated with the section that is under construction, and the details shall be developed during next step preliminary design.

d. Sta. 21+607 to Sta. 23+007 (L = 1.4 km)

106. This section of the river rehabilitation is similar to the section "b" by using the compound river embankment with the small stone channel in the middle for normal water flow and the second level of geogrid reinforced vegetation and bushes for the flood water.

e. Sta. 23+007 to Sta. 23+880 (L = 0.87 km)

107. This is the river section for city to develop as the city park. At the section, the concept of compound embankment will be used. However, the first level of river embankment will follow the natural river channel with a variable channel width to fit the natural river channel. For the second level embankment, the existing highlands away from the river channel will be used as the embankment. Some earth berms used to fill up the lower area to contain the flood water. No major earthwork will be done for the area to protect the natural river settings.

f. Sta. 23+880 to Sta. 26+455 (L = 2.6 km)

108. This is the second part of the river embankment at the downstream of the city park. The similar concept will be used to protect the natural settings. The existing river channel will be reinforced with riprap to contain the normal water flow, and the highlands at the end of the flood plain will be used as the second level embankment. Some earth berms will be placed at the lower areas.

g. Sta. 26+455 to Sta. 27+123 (L = 0.67 km)

109. This is the last section of the river rehabilitation at the downstream of the highway bridge. The current river channel experiences severe bank erosions. The river channel will be regraded and reinforced with the gabion and the river channel width will be 60 m and the embankment height is about 1.8 m. 110. The summary of the river rehabilitation for all six sections as well as the section under construction by the domestic funding is shown in Table 3A. 8.


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Table 3A. 8 Kalanggur River Rehabilitation

No Description Length (m)

Channel

W (m)

Windbreak

Width (m) Embankment Type

Height

(m)

1 Sta 7+400 to Sta 9+400 2,000 120 Gabion 1.8

2 Sta. 9+400 to Sta 17+121 7,721 120 20 x2 20 m stone + 50x2 green 1.5

Sta 17+121 to Sta 21+604 4,483 (in construction by domestic funding)

3 Sta 21+604 to Sta 23+004 1,400 120 20 x 2 20 m stone + 50x2 green 1.5

4 Sta 23+004 to Sta 23+880 (city park) 876 varies Riprap at channel + dam

5 Sta 23+880 to Sta 26+455 2,575 varies Riprap at channel + dam

6 Sta 26+455 to Sta 27+123 668 60 Gabion 1.8

Total (w/o domestic section) = 15,240

Total (w/ domestic section) = 19,723

1 K15+600 Bridge 60 L 13 (m) (Width, 2 lanes)



4 Tiyuguan Xi Road Bridge (K25+450) 60 L 36 (m) (Width, 8 lanes)

(all bridges are 3x20 m void slab)

(Source: PPTA Consul tants ) 111. As shown in the table, there are four bridges to be built over the section of the rehabilitated river. At the present time, the details of the bridges including the roadways to be connected to the bridges are not available. It is not clear if these bridges are in the approved city master plan and the justifications to build these bridges are not clear. The bridges shall not be included in the ADB financed part if the required information including the compliance to city master plan, planning and construction status of the roadways connected to these bridges, engineering considerations and alternative study, etc.

A.1.8 Tacheng MSW Management

112. The MSW management component is developed by applying 3R principles. The MSW component will introduce MSW sorting at the source and the direct collection and disposal method at the selected communities to minimizing secondary pollution on the urban streets using MSW collection houses or containers. This direct collect and transport scheme at the selected communities will serve as the demonstration project in Tacheng. The municipal government may extend the demonstration program to other urban areas in the future. The MSW compaction trucks with the automatic loading device and garbage barrels will be procured. At the selected communities, the 2-bin barrel MSW stations/spots will be setup in the front of the building or unit entrances. The two bin barrels are marked as "Recyclable" and "Non-recyclable". The residents will bring out their recyclable and non-recyclable garbage to the designated barrel at the MSW station/spot on their way out. The community service crew or the private recyclable venders will pick up the recyclable items and take them to the recyclable stations in the urban area for profits. The municipal garbage truck will come to the communities to load the remaining non-recyclable garbage and transport it to the landfill site directly. A detailed operation procedures and the corresponding training program shall be developed and implemented during the project implementation to ensure the successful implementation of the component. 113. In order to promote recycle and reduce of the domestic solid waste, a recyclable station with different sorting containers for paper and cardboard, plastics, and glass will be setup at the selected communities. The recycle station will be placed at the designated the location in the selected communities, maintained and managed by the home association crew. The maintenance crew will take the recycle items from the station to the city recycle collection stations for cash reward. A public awareness program shall be developed and implemented during the project implementation to educate the public for domestic solid waste sorting and recycling, and coordination with the government agency to develop policies and incentive


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program to encourage the public's for recycling and reuse, and raise the public awareness of low carbon urban life, resource and energy conservation, recycling, reuse, and to protect and preserve the natural environment.

114. The project component will also upgrade the existing MSW handling and urban maintenance equipment including the conventional MSW housing, garbage bins and barrels, movable toilet, street cleaning equipment, etc. The summary of the MSW management component is shown in Table 3A. 9.

Table 3A. 9 Summary of Tacheng MSW

No Description Type Unit Qty Remark

A. MSW Source Sorting

1. Huaxi Community 2-bin ea 102

2. Guangming Community 2-bin ea 60

3. Minhang Community 2-bin ea 61

B. Recycle Station

1. Huaxi Community 3 Container ea 1

2. Guangming Community 3 Container ea 1

3. Minhang Community 3 Container ea 1

C. MSW Bins, Containers, Equipment & Toilets

1 Intellectual Garbage Collection Station ea 2

2 Steel Garbage Container 0.24 m3ea 300

3 MSW Transport Truck 3 tons ea 4

4 Movable MSW Container (coupled with 3) 3 m3ea 32

5 Self Loading MSW Compaction Truck ea 5

6 Side Loading MSW Truck 3 tons ea 3

7 Armed MSW Truck 10 tons ea 1

8 Movable MSW Container (coupled with 7) 10 m3 ea 3

9 Toilet - Concrete Masonry 87.6 m2ea 7 civil work

10 Toilet - movable 10 m2ea 2

11 2-Bin Trash Bin ea 212

12 Street Cleaning Truck ea 3

13 Snow Cleaning Truck 2.2 m wide ea 3

14 Dump Truck 30 ton ea 3

15 Water Spray Truck 10 ton ea 1


A.2 Emin Subproject

A.2.1 Emin Roads and Bridges

115. The project component will construct 5 roads, including a section of 3.2 km road rehabilitation, of which 3 are urban major roads and 1 is urban secondary roads and 1 branch road, and one 5 span bridge. The total road length is 10.1 km. The roads, as shown in Figure 1.4, are existing and new urban roads in the center city and the city outskirt area. The proposed component will improve the existing urban infrastructures as well as to help the county government to expand the existing urban area to accommodate the fast growing of the urban population. The project roads and bridge are in compliance of the city master plan. The summary of the roads and bridges is shown in Table 3A. 10.


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Table 3A. 10 Emin Road and Bridge


Design Speed

(km/h)

Design Live

Load Length (m)

1 Arxiate Road - Rehabilitation Urban Major 22 40 BZZ-100 3,224

Arxiate Road - New Urban Major 44 40 BZZ-100 664

Bus Stations (8 bay bus stops)

2 Wenhua Road Secondary 44 30 BZZ-100 931

3 Guihua Wu Road1

Urban Major 44 40 BZZ-100 1,285

Binhe Road Bridge 5 span 20 m box beam and width of 28 m


4 Guihua Qi Road Branch 24 20 BZZ-100 1,962

5 Guihua Jiu Road Secondary 34 30 BZZ-100 2,065

Total = 10,131


Note 1. Due to large amount of LAR cost, only 28m wide of the road cross section will be built.

ROW

Width

(m)

116. The design of the urban roads is based on the principle of promoting people centered urban transport system with emphasis on providing pedestrian and NMT and public transport facilities. The separated NMT lanes are provided wherever there is enough space within the construction red lines, and the adequate sidewalk width is provided. The road cross section details, including the bridges, are summarized in Table 3A. 11.

Table 3A. 11 Emin Road and Bridge Cross Sections


R Shldr/

Sep (m) R Lane (m)

Median

(m)

L Lane

(m)

L Shldr/ Sep

(m)

L NMT

(m)

L Sdwk

(m)

Total

(m)

Arxiate Road - Rehabilitation 2.00 0.00 2.00 7.00 0.00 7.00 2.00 0.00 2.00 22.00

Arxiate Road - New 11.00 3.75 0.00 7.25 0.00 7.25 0.00 3.75 11.00 44.00

Bus Stations (8 bay bus stops)

Wenhua Road 8.00 3.50 3.00 7.50 0.00 7.50 3.00 3.50 8.00 44.00

Guihua Wu Road1 3.00 3.75 0.00 7.25 0.00 7.25 0.00 3.75 3.00 28.00

Binhe Road Bridge 3.00 3.75 0.00 7.25 0.00 7.25 0.00 3.75 3.00 28.00


Guihua Qi Road 6.00 2.50 0.00 3.50 0.00 3.50 0.00 2.50 6.00 24.00

Guihua Jiu Road 5.00 3.00 2.00 7.00 0.00 7.00 2.00 3.00 5.00 34.00



Cross Section

• Arxiate Road - Rehabilitation

117. Arxiate Road is one of the urban major roads running through the urban area in east-west direction. The project will rehabilitate a section of 3.2 km existing road and build a section of 664 m new urban major road. The planned road construction red line width in the city master plan is 44 meters. However, for the existing road cross section, the roadway width is only about 22 meter. There are dense residential and business houses along both sides of the road. In order to reduce the LAR impact and the associated cost, the rehabilitation section will remain as the same as the existing road width. The road section will include 2m sidewalk, 2m vegetation separation, and 2 travel lanes in each direction. There is no designated NMT lane due to the road width limits. The typical road cross section is shown in Figure 3A. 6.


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Figure 3A. 6 Arxiata Road - Rehabilitation

• Arxiate Road - New

118. The construction red line width for the new Arxiate Road is 44 m. In order to match the existing road cross section but also leave space for future development, 1 parking lane and 2 travel lanes are proposed for the road cross section so that the 2 travel lanes are consistent between the existing and new road cross sections. The remaining space, in addition to the sidewalk, will be reserved by planting trees. The bay type bus stations will be built at the new roadway section to promote public transportation in the city. The bay type bus station will have minimum impact to the traffic flow in the regular lanes, and it shall be used when there are adequate spaces on the roadways. The typical road cross section is shown in Figure 3A. 7

Figure 3A. 7 Arxiate Road - New

• Wenhua Road

119. Wenhua Road is the urban secondary road with the construction red line width of 44 m. The road is parallel to Arxiate Road, and it is in a similar situation that the new road is connected to a narrow exiting road. In order to maintain the consistence of travel lanes, only 2 travel lanes are placed to match the exiting road cross section. The remaining space will be covered by 8 m sidewalk, 3.5 m NMT lane, and 3 m vegetation separation in each direction. The space is reserved for future widening when the existing road section is widened and rehabilitated. The typical road cross section is shown in Figure 3A. 8

Figure 3A. 8 Wenhua Road Section


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• Guihua Wu Road

120. Guihua Wu Road is an urban major road with the construction red line width of 28 m. The road intersects with Arxiate Road at the east side of the town and it is one of the major north-south direction roads. Due to the limited red line width, the road will use mixed NMT and motorized lane. The road cross section includes 3 m sidewalk, 3.75 m NMT lane, and 2 travel lanes in each direction. The bus stations will be built along the roads to promote public transportation in the town. The in-lane type bus stations will be used due to the space limitation. The typical road cross section is shown in Figure 3A. 9

Figure 3A. 9 Guihua Wu Road Section

121. There is a 5 span large bridge carrying Guihua Wu Road over the Emin River. The proposed bridge cross section is 28 m, which is consistent with the roadway cross section. Since a bridge will serve a lot longer than roadway and it is very expensive and difficult to be widen in the future, it is usually to design and built the bridge with wider cross section to make the travel lanes to be consistent with the roadway cross section and to preserve for future widening. A wider bridge cross section shall be considered in the next step preliminary design.

• Guihua Qi Road

122. Guihua Qi Road is an urban branch road with the construction red line width of 24 meters. The road cross section includes 6 m sidewalk including 2.5 m landscaping area, 2.5 m mixed NMT lane, and 1 travel lane in each direction. The typical road cross section is shown in Figure 3A. 10

Figure 3A. 10 Guihua Qi Road Section


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• Guihua Jiu Road

123. The road is an urban secondary road with the construction red line width of 34 m. The road is in north-south direction in the new expanded area in the east of the city. The road cross section includes 5 m sidewalk, 3m NMT lane, 2 m vegetation separation, and 2 travel lanes in each direction. The typical cross section is shown in Figure 3A. 11

Figure 3A. 11 Guihua Jiu Road Cross Section

A.2.2 Emin Water Supply

124. There are rich underground water resources with good water quality. The current water supply is all from the groundwater. Currently there are 3 water treatment plants in Emin town. No.1 and No.2 WTPs were built long time ago and the plants do not have the proper disinfection equipment. The 2 plants have been or will been stopped operation soon. No. 2 WTP was built in 2000 with the daily supply capacity of 8000 ton/day. The WTP from the production corporation has the daily capacity of 9000 ton/day. The county government is planning to build a new WTP with the water supply capacities of 20000 ton/day in short term and 30000 ton/day in long term. After the completion of the new WTP, the combined water supply capacity will be 37000 ton/day in short term and 47000 ton/day in long term. 125. The water supply component will build water lines along the project roads. The project will build a total of 8.3 km water supply pipeline and the associated fire hydrants, manholes and other related facilities. The summary of the water supply component is shown in Table 3A. 12.

Table 3A. 12 Emin Water Supply

No Name

Diameter

(mm)

Pipe

Material

Length

(m) Remark

1 PE Pipe DN200 PE 2,620

DN300 PE 1,840

2 Ductile Iron Pipe DN400 DI 1,340

DN500 DI 2,460

Total = 8,260

Size Unit Quantity

3 Valve Manhole 1500mm ea 90

4 Air Release Manhole ea 9

5 Fire Hydrant ea 80

DI = Ductile Iron, HDPE = High Density Polyethylene, PE = Polyethylene



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A.2.3 Emin Sanitary Sewer

126. There is an existing wastewater treatment plant located at 5 km west of the town. The WWTP was built in 2006 and the design capacity is 13000 m3/day. The treatment capacity can be expanded to 16800 m3/day by 2030. The sanitary sewer pipeline will be built along the project roads. A total of 9.9 km sewer pipe line will be built. The summary of the sanitary sewer system is shown in Table 3A. 13.

Table 3A. 13 Emin Sanitary Sewer

No Name

Diameter

(mm)

Pipe

Material

Length

(m) Remark

1 HDPE Pipe DN300 HDPE 2,070

DN400 HDPE 2,405

2 Reinforced Concrete Pipe DN500 RC 2,130

DN600 RC 440

DN800 RC 2,820

Total = 9,865

3 Manhole 1250 Con Block 290 ea

(Source: PPTA Consul tants ) A.2.4 Urban Maintenance Equipment

127. The subproject also includes a package to update the existing urban clean and maintenance equipment. The summary of the maintenance equipment is shown in Table 3A. 14.

Table 3A. 14 Maintenance Equipment

No Name Type Unit Quantity Remark

1 Street Sweeping Truck ea 1

2 MSW Compaction Truck 5 tons ea 1


A.3 Tuoli Subproject

128. The project component will construct the 1 new road, the Outer Ring Road, at the outskirt of the existing urban area. Tuoli is on the route connecting Tacheng and Urumqi. There are a lot of pass through trucks in the center city area, causing traffic safety concern and traffic congestion. The proposed outer ring road will effectively divert the bypass truck traffic to improve the traffic safety in the center city area. The location of the roads is shown in Figure 1.5. The project road is in compliance of the city master plan. The length of the road is 14.1 km. There are about 17 culverts or small bridges along the road, and the summary of the road is shown in Table 3A. 15. The road cross section is shown in Table 3A. 16 as well as in Figure 3A. 12. The Outer Ring Road is an urban major road with the construction red line width of 30 m. Since the purpose to build the road is to divert the bypass traffic and the road is located outside the urban area with almost no residents or business, the road is basically a rural highway rather than the urban road. Therefore, only the travel lanes are provided for the road without sidewalks, NMT lanes, and even urban utilities. The road cross section includes 5.5 m sidewalk (vegetation to preserve the space for future use), 2.5 m shoulder, and 2 travel lanes in each direction.


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129. The project component will also upgrade the urban maintenance equipment, and the details of the equipment are shown in Table 3A. 17

Table 3A. 15 Tuoli Road and Bridge


Design Speed

(km/h)

Design Live

Load Length (m)

1 Outer Ring Road Urban Major 30 40 BZZ-100 14,090

Culverts and small bridge (span 1 - 10 m) - total of 17.

Total = 14,090


ROW

Width

(m)

Table 3A. 16 Tuoli Road Cross Section


R Shldr/

Sep (m) R Lane (m)

Median

(m)

L Lane

(m)

L Shldr/ Sep

(m)

L NMT

(m)

L Sdwk

(m)

Total

(m)

Outer Ring Road 5.50 2.50 0.00 7.00 0.00 7.00 0.00 2.50 5.50 30.00



Note 1. The 5.5 m sidewalk will be vegetation for the time being and will be upgraded with the sidewalk in the future when there

are pedestrian traffic.

Cross Section

Figure 3A. 12 Tuoli Outer Ring Road Cross Section

Table 3A. 17 Tuoli Maintenance Equipment


1 Street Sweeping Vehicle 2.2 m wide ea 1

2 Snow Removal Truck 2 m wide ea 1


A.4 Yumin Subproject

A.4.1 Yumin Roads and Bridges

130. The project component will construct 6 roads, including a section of 0.95 km road rehabilitation, of which 1 is the urban major roads and 5 are urban secondary roads and 1 is a branch road. The total road length is 9.7 km. The roads, as shown in Figure 1.6, are existing


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and new urban roads in the center city and the city outskirt area. The proposed component will improve the existing urban infrastructures as well as to help the county government to expand the existing urban area to accommodate the fast growing of the urban population. The project roads and bridge are in compliance of the city master plan. The summary of the roads and bridges is shown in Table 3A. 18.

Table 3A. 18 Yumin Roads


Design Speed

(km/h)

Design Live

Load Length (m)

1 Guihua Yi Road Secondary 30 30 BZZ-100 1,476

2 Guihua Er Road Urban Major 40 40 BZZ-100 1,876

3 Longzhen Road (Rehab) Secondary 20 30 BZZ-100 2,338

4 Yujinxiang Road (Rehab) Secondary 18 30 BZZ-100 418

Yujinxiang Road (Rehab) Secondary 19 30 BZZ-100 953

Bus stations at Bilingual Kindergarten (in-lane bus stop -1)

5 Honghua Road (Rehab) Branch 20 20 BZZ-100 1,168


6 Donghuan Road Secondary 30 30 BZZ-100 1,505

Total = 9,734


ROW

Width

(m)

131. The design of the urban roads is based on the principle of promoting people centered urban transport system with emphasis on providing pedestrian and NMT and public transport facilities. The separated NMT lanes are provided wherever there is enough space within the construction red lines, and the adequate sidewalk width is provided. The road cross section details, including the bridges, are summarized in Table 3A. 19.

Table 3A. 19 Yumin Road Cross Section


R Shldr/

Sep (m) R Lane (m)

Median

(m)

L Lane

(m)

L Shldr/ Sep

(m)

L NMT

(m)

L Sdwk

(m)

Total

(m)

Guihua Yi Road 5.50 2.50 0.00 7.00 0.00 7.00 0.00 2.50 5.50 30.00

Guihua Er Road 6.00 3.50 3.00 7.50 0.00 7.50 3.00 3.50 6.00 40.00

Longzhen Road (Rehab) 4.00 2.50 0.00 3.50 0.00 3.50 0.00 2.50 4.00 20.00

Yujinxiang Road (Rehab) 4.00 1.50 0.00 3.50 0.00 3.50 0.00 1.50 4.00 18.00

Yujinxiang Road (Rehab) 4.00 2.00 0.00 3.50 0.00 3.50 0.00 2.00 4.00 19.00

Bus stations at Bilingual Kindergarten (in-lane bus stop -1)

Honghua Road (Rehab) 3.00 0.00 0.00 7.00 0.00 7.00 0.00 0.00 3.00 20.00


Donghuan Road 5.00 2.75 0.00 7.25 0.00 7.25 0.00 2.75 5.00 30.00



Cross Section

• Guihua Er Road

132. Guihua Er Road is an urban major road located in the expanded new urban area in north of the town. The construction red line width is 40 meters. It will serve as one of the major east-west roads going through the new urban area. The road cross section consists of 6 m sidewalk, 3.5 m NMT lanes, 3 m vegetation separation, and 2 travel lanes in each direction. The typical road cross section is shown in Figure 3A.13.


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Figure 3A. 13 Guihua Er Road Cross Section

• Guihua Yi Road

133. Guihua Yi Road is an urban secondary road parallel to Guihua Er Road in the north. The construction red line is 30 meters. Due to the limited road width, a mixed NMT and travel lanes are used. The road cross section consisted of 5.5 m sidewalk, 2.5 m mixed NMT lane, and 2 travel lanes in each direction. The typical section is shown in Figure 3A. 14.

Figure 3A. 14 Guihua Yi Road Cross Section

• Longzhen Road

134. Longzhen Road is an urban secondary road in north-south direction at the west side of the urban area. The construction red line width is 20 meters. The proposed road cross section is consisted of 4 m sidewalk, and 6 m mixed travel and NMT lane in each direction.

• Yujinxiang Road 135. Yujinxiang Road is urban secondary road with different construction redline widths. The road consists of a section of 0.95 km with the construction red line width of 19 m and a section of 0.42 km with the red line width of 19 m. For both section, there are 4 m sidewalk in each side, and a mixed NMT and travel lane of 5.5 m (5 m for 18 m wide section) in each direction. The public bus stations will be built along the road to promote public transportation in the town. An in-lane type bus station is used due to the space limitation.

• Honghua Road

136. The road is an urban branch road parallel to Yujinxiang Road in the west. The construction red line width is 20 meters. The road cross section consists of a 3 m sidewalk and 2 travel lanes in each direction. The public bus stations will be built along the road to promote public transportation in the town. An in-lane type bus station is used due to the space limitation.


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• Donghuan Road

137. The road is an urban secondary road located in the east side of the city along the west bank of the river. The construction red line width is 30 meters. The road cross section consists of 5 m sidewalk, 2.75 m mixed NMT lane, and 2 travel lanes in each direction. The typical road cross section is shown Figure 3A. 15.

Figure 3A. 15 Donghuan Road Cross Section

A.4.2 Yumin Water and Sanitary Sewer

138. The current project component does not include any water supply and sanitary sewer pipe lines. The water supply and drainage pipe lines will be placed using domestic funding prior to the construction of the proposed project.

A.4.3 Yumin Urban Operation and Maintenance Equipment

139. The project will upgrade the existing MSW handling and urban clean and maintenance equipment including MSW collection and transport trucks, street cleaning vehicles, landscaping and lawn care equipment, etc. The list of the equipment upgrade is shown in Table 3A. 20.

Table 3A. 20 Summary of Equipment


1 MSW Compaction Truck 8 ton ea 2

2 Enclosed MSW Compaction Truck 8 m3

ea 2

3 Street Sweeping Vehicle ea 2

4 Water Spray Vehicle 1 40 ton/h ea 1

5 Dump Truck ea 2

6 Loader 3 m3

ea 2

7 Sidewalk Clean Cart 2 m wide ea 2

8 Cherry Picker 16 m ea 1

9 Snow Cleaning Machine 2.2 m wide ea 2

10 Water Spray Vehicle 2 10 ton ea 1

11 Truck Crane 12 ton ea 1

12 Water Leaking Detector 50 -320 Hz ea 1

13 Brush Cutter ea 4

14 Compress Air Tree Branch Cutter ea 2

15 Tree Branch Cutter ea 4

16 Lawn Mower ea 2

17 Lawn Mower II ea 2

18 Lawn Aerator ea 1

19 Snow Cleaning Machine 3 m wide ea 1



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B. Urban Roads and Bridges

B.1 Introduction

140. This project includes four sub-projects, locating in Tacheng city and three county towns of Emin County, Yumin County and Tuoli County. Each of the city/towns has formulated its urban master plan and also its road network plan. 141. According to national specifications, the urban roads are classified into three categories: urban main road, urban secondary road and branch road. The main roads and secondary roads together constitute the framework of city/town’s road system.

142. All the proposed roads, respectively, are in line with the road planning of each sub-project area. Most of them belong to main roads and secondary roads, that means the construction or improvement works will bring great promotion to local traffic conditions.

143. It is needed to be noted that the hexagonal road network in Tacheng central area is not reasonable in view of traffic control and management. Once traffic volume increased to some extent, even much less than the projected volume, traffic jam would be sure to happen in this area. This has been proven in many constructed areas in many cities.

B.2 Proposed Roads

144. 13 roads of 29447 meters are proposed in Tacheng sub-project, including 6 main urban roads of 14067 m and 7 secondary urban roads of 15379 m. All the roads are new roads. The subproject will also rehabilitate 51 alleys with a total length of 14 km in the exiting urban area as well as the villages adjacent to the city urban area. 145. 5 roads of 10131 m are proposed in Emin sub-project, including 2 main roads of 5173 m, 2 secondary roads of 2996 m and 1 branch road of 1962 m. Of which, part of one main road needs to rebuild, and the other 4 roads are new roads.

146. One new urban main road of 1490.19m, Outer Ring Road, is proposed in Tuoli sub-project. 147. 6 roads of 9734 m are proposed in Yumin sub-project, including 1 main road of 1876 m, 4 secondary roads of 6690 m and 1 branch road of 1168 m. of which, 3 are new roads, and the other 3 are rebuilt roads.

B.3 Technical standards

148. The technical standard of each proposed road is determined according to the road planning and the results of traffic forecast. Actually, the city/town’s master plans have specified the classification and plane alignment of each road, so the traffic forecast results are generally used to verify its justification and provide guidance to technical designs.

B.4 Engineering Geology

149. Engineering geology surveys have been conducted in all the proposed road sites. Based on the surveys, engineering geological conditions of all the proposed roads are quite good, and suitable for engineering construction. No adverse geological condition exists, and ground water has no influence to engineering works.


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B.5 Engineering Design

150. The design of proposed roads is generally adequate, except following issues which could be further studied in next stage.

B.5.1 Alignment

151. Plane alignment and longitudinal profile design are in line with national specifications. However, the alignment of a road in Tacheng sub-project seems to have been designed too strictly corresponding to the master plan, which leads to the demolition of the Customs building. Design optimization or adjustment should be conducted in next stage.

B.5.2 Cross section

152. The road dross sections are determined based on alternative study. During the inception and interim periods, the consultants had reviewed FSRs conducted workshops and provided suggestion for each road. DI has adopted most of the suggestions in the updated FSRs, and the proposed cross section scheme of each proposed road is adequate, which could meet traffic demand, could ensure traffic safety of pedestrian and NMT, and the landscape is also relatively good.

B.5.3 Pavement

153. In view of road classification and traffic volume forecasted, the pavement structures seem to be thinner than usual. But according to experience from other local similar roads, the pavement structures proposed are adequate and reasonable. The key point is whether real traffic volume will be as much as forecasted. In the next stage, DI should check traffic volume and other information to verify and optimize pavement design.

B.5.4 Street Lighting

154. In Tacheng sub-project, High Pressure Sodium (HPS) Lamp and Light Emitting Diode (LED) Lamp are compared, and LED road lamp was proposed due to its energy-saving performance.

B.5.5 Traffic Safety and Public Transportation

155. Based on traffic analysis, the traffic signs, markings and traffic lights are fully considered. The pedestrian crossings and barrier-free facilities are also well designed at intersections, road sections and bus stations. 156. The intersection design has taken account of sight distance, traffic volume and other factors. Based on traffic organization, intersections are well channelized. The designs are in line with national specifications, and traffic safety could be ensured on the proposed roads.

157. Bus stations are considered on some proposed roads according to planning. Due to low demand, public bus service will not be considered on proposed roads in Tuoli and Yumin. This consideration is realistic.

B.5.6 Bridge


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158. For Tacheng subproject, there are 6 bridges on urban roads and 4 bridges across the rehabilitated river. In Emin subproject, the Guihua Wu Road crosses Emin River, where a bridge in length of 100m is designed. On the Outer Ring Road in Tuoli, small bridges and culverts are designed over the small gullies and streams. . 159. Supper structure of each bridge is determined after scheme comparison. The proposed supper structures are adequate. The proposed structures are commonly used in Xinjiang and china, which are applicable and economical. The sub structures are also well designed based on engineering geology on the sites.

B.6 Conclusion and suggestions

160. TA consultants had reviewed FSRs and provided revising suggestions. The DI has revised and submitted the updated version for further review. The updated FSRs are basically adequate, but there are still some issues which should be checked and clarified soon after this mission. It is suggested that DI should collect more detailed information and correct any inconsistence in cross sections designs and optimize the design pavement structures.


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C. Kalanggur River Rehabilitation

C.1 Introduction

161. Tacheng City is located in the northwest of Xinjiang Uygur Autonomous Region at the northwest edge of Junggur Basin and the south of Tarbhatai Mountains. The elevation varies from 400 m in the south to about 2800 m in the north. The Kalanggur River starts at Tarbhatai Mountains from snow melting and rainfalls, flows towards Tacheng Basin, and runs through the east part of Tacheng City. The river length is about 93 km, the drainage area is about 349 km2, and the average annual surface flow is about 126 million m3. In the middle reach of the river, Kalanggur Reservoir was built in 2000 for flood control and irrigation. The reservoir is located at about 43 km north of Tacheng City. The reservoir design capacity is 3900x104 m3 and the maximum discharge flood flow is 186 m3/s. Before the construction of the reservoir, the recorded maximum flood flow was 127 m3/s in 1993. Based on the historical data, there were two types of floods. The snow melting flood happened during the months of April and May and the magnitude of the floods depends on the snow amount and the pace of raising temperature. The floods from the heavy rain falls in the mountain area happened during the months of June to September. This mountain flood may happen quickly with quick raise of the river flow. 162. An early flood warning system has been be installed by the local water resource bureau along Kalanggur River. The system consists of the monitoring stations, data transmission system to the central control room in the Water Resource Bureau, and flood warning notification system. In the events of flooding, the water resource bureau will evaluate the severness of the flood and send out the flood warning notice if needed.

C.2 The area of the river rehabilitation

163. Based on the updated FSR, the urban flood control project starts 2 km north of the North Ring Road Bridge at Station 7+400 South Ring Road Bridge and ends at Station 27+123. The total length of the river rehabilitation is about 15.2 km, excluding the 4.5 km section financed by the domestic funding. In addition to the river rehabilitation, the landscaping tree lines will be planted along the top of the river embankments at both sides of the river. The river embankment service and maintenance road will be built on top of the embankments; the component will also built 4 bridges crossing the river to be rehabilitated. The construction components for river rehabilitation are shown in Table 3C. 1, which are different from that at Inception stage.

Table 3C. 1 Kalanggur River Rehabilitation

No Components Unit Quantity Remark

1 River rehab. km 15.2 River reach: 7+400-16+000、21+400-27+123

2 Landscapings Mu 546.0 9+400~17+104、21+604-23+004 , on both sides of the embankment, tree band width are 20m on two sides

3 Access road km 17.5 Road on the left side of the embankment

4 Bridge 4 4 New bridges

164. The river rehabilitation can be divided into six sections. As shown in Figure 3C.1, one section from Stations 17+104 to 21+104 is financed by the domestic funding, and the remaining five sections will be constructed under the proposed project. In order to protect the ecological and environmental conditions, and in conjunction with the urban development, an ecologically friendly river rehabilitation scheme is adopted for the river embankments. A compound river


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embankment system will be used. The main river channel will be protected by stone, and the geogrid reinforced vegetations and brushes will be used for the second level embankments.

Figure 3C. 1 River Rehabilitation Sections

C.3 Flood control standard

165. In according to national standards and the projection of population growth in Tacheng City, the design flood for Kalanggur river rehabilitation is 2% flood (50 years flood)..

C.4 Water Surface Elevation

166. The one dimension steady hydraulic model is used to compute the water depth in the river. The steady hydraulic model is easy to use, however the control sections and the water depth must be known when using the steady model. The control sections are the sections where the changes occurs such as geometrical condition of river width, the bed slope, the position of the road bridge across the river, the roughness of the bed, etc. The water depth at these locations should be known before computation. For Kalanggur River section to be rehabilitated, the river width changes from 60m to 120m, and even wider than 500m at the city park, and the bed roughness also increases at the park section. The results of the water depth for the design flood of 50 year are shown in Table 3C.2. It can be seen that the water depth is about 50 to 60 cm in the regular sections, while it increases to 184 cm in the compound channel. These results should be refined during next step preliminary design.

Table 3C. 2 Water Surface Elevation

No Section 7+400~9+400 9+400~11+900 11+900~12+400 12+400~15+400

Item Symbol Unit Design Check Design Check Design Check Design Check

1 Discharge Q m³/s 201.4 252.8 195 244 187 233 187 233

2 Water depth h m 0.51 0.52 1.61 1.84 1.58 1.81 1.59 1.82

3 Bed Slope i 0.015 0.015 0.014 0.014 0.014 0.014 0.014 0.014

4 Channel width

b1 m 120.0 120.0 18.0 18.0 18.0 18.0 18.0 18.0

5 Velocity v m/s 2.97 3.58 2.76 2.95 2.73 2.92 2.72 2.91

6 Super elevation

Δh m 0.70 0.70 0.70 0.70 0.70 0.70 0.70 0.70

7 Wave height RP m 0.18 0.21 0.03 0.03 0.03 0.03 0.00 0.00


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8 Height by wind

e m 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

9 Water surface H计 m 1.58 1.64 2.38 2.61 2.34 2.57 2.29 2.52

10 Embankment H取 1.80 1.80 2.80 2.80 2.60 2.60 2.60 2.60

Table 3C. 3 Water Surface Elevation (cont'd)

序号 Section 15+400~17+121 21+600~23+004 26+455-27+123

Item Symbol Unit Design Check Design Check Design Check 1 Discharge Q m³/s 181.0 227 176.0 220 162.0 205.7

2 Water depth h m 1.57 1.79 1.74 1.99 0.55 0.58

3 Bed Slope i 0.014 0.014 0.008 0.008 0.014 0.014

4 Bottom width for main channel

b1 m 18.0 18.0 18.0 18.0 60.0 60.0

5 velocity v m/s 2.71 2.89 2.17 2.33 3.93 4.81

6 Super elevation Δh m 0.70 0.70 0.70 0.70 0.70 0.70

7 Wave height RP m 0.00 0.00 0.00 0.00 0.20 0.20

8 Height by wind e m 0.00 0.00 0.00 0.00 0.00 0.00

9 Dike Height H计 m 2.27 2.49 2.44 2.69 1.64 1.68

10 H取 2.60 2.60 2.80 2.80 1.80 1.80

C.5 Riverbed Erosion Depth

167. The riverbed erosion depth is computed by a simple formulation, and the results are

shown in Table 3C. 3. In the table, Bh is the erosion depth, ph is the water depth, Vcp is the

flow velocity in m/s, V is the allowable design velocity, and n is the riverbed surface coefficient. It can be seen that the maximum erosion depth is 187cm. Any bridge and structure foundation depth shall be at least deeper than the erosion depth.

Table 3C. 4 Riverbed Erosion Depth

Section hp Vcp V n hB Safety

Depth (m) Foundation Depth (m)

7+400~9+400 0.51 2.97 3.9 0.25 0.44 1 1.44

0.52 3.58 3.9 0.25 0.50 1 1.50

9+400~11+900 1.61 2.76 3.9 0.25 1.53 0 1.53

1.84 2.95 3.9 0.25 1.77 0 1.77

11+900~12+400 1.58 2.73 3.9 0.25 1.49 0 1.49

1.81 2.92 3.9 0.25 1.74 0 1.74

12+400~15+400 1.59 2.72 3.9 0.25 1.50 0 1.50

1.82 2.91 3.9 0.25 1.75 0 1.75

15+400~17+121 1.57 2.71 3.9 0.25 1.48 0 1.48

1.79 2.89 3.9 0.25 1.72 0 1.72

21+600~23+004 1.74 2.17 3.9 0.25 1.60 0 1.60

1.99 2.33 3.9 0.25 1.87 0 1.87

26+455-27+123 0.55 3.93 3.9 0.25 0.55 1 1.55

0.58 4.81 3.9 0.25 0.63 1 1.63


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C.6 The peak values of flood discharges at the key section

168. As shown in Table 3C. 3, the peak discharge values for 2% flood is shown on the 53rd column in, and the maximum discharge value is 201 m3/s.

Table 3C. 5 Flood Peak Discharge Value

Flood frequency %

Item 1 2 50 year in one

3.3 5 20year in one

10

Reservoir 216 173 153 128 94.4 Mouth of maintain

264 211 187 156 115

7+400 252.8 201.4 179.4 148.8 109.2 9+400 244 195 173 144 106 11+900 233 187 165 138 102 15+400 227 181 160 134 98.7 18+000 220 176 156 130 95.7 24+000 208 166 147 123 90.5 26+000 205.7 162.0 143.8 119.8 88.1

C.7 The river width after rehabilitation

169. In determining the river rehabilitation width, the actual water surface width shall be considered. As the river width and riverbed roughness change very often, the control sections should be determined at all major transition positions, and the water level should be known at these positions before the water surface computation is performed using the steady hydraulic model. Using the assumptions mentioned, the river widths for rehabilitation are determined and shown in Table 3C.5, which are from 60m to 120m.

Table 3C. 6 River Rehabilitation Width

Section River width Remarks

7+400 ~9+400 120m North side of the North ring road

9+400~17+104 120m ADB fund

17+104~21+604 120m Domestic fund

21+604~23+004 120m ADB fund

21+604~23+880 Original width City park, width 300-550m

2+455 ~ 27+123 60m South side of Yemenle bridge

C.8 The design of the Embankments

170. By considering the geometrical condition and the river width, different kinds of embankments are designed for each section of the river and outlined in the following sections.

1) River reach from 7+400 to 9+400


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171. This river reach is located at the north of North Ring Road Bridge. The river width is 120 m. Four different kinds of embankments are considered as summarized in Table 3C. 6 and Figure 3C. 2..

Table 3C. 7 River Embankment Type at Section I

Type Description Type-1 Wire box containing gravels for both the foundation and the

embankment slope; Type-2 Concrete foundation, and slope is protected by concrete grid

in which the grass is planted; Type-3 Wire box containing gravels for the foundation only, and the

slope is protected by ecology and green concrete which allow the grass growth;

Type-4 Concrete slab from the foundation to the top of the slope

Figure 3C. 2 Embankment Alternatives from Sta. 7+400 to 9+400

172. Type-1 is recommended for 7+400~ 9+400. The river section is trapezoidal and the river bed which is 120 m (bottom of the trapezoidal). The slope is 1:3 for the embankment and 1:2.5 for the foundation. The slope for the outside is 1:3. The wire box of 0.6 0.6 0.6m m m× × will be used, in which the gravels is filled.

2) River reach from 9+400 to 17+400


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173. This river reach is started from the south face of the bridge. The rehabilitated river width is 120 m. Four different embankment alternatives are compared, and the alternatives are summarized in Table 3C.7 and Figure 3C. 3.

Table 3C. 8 Embankment Alternatives in Section II

Type Description

Type-1 Glass fiber grids in which the vegetation is planted

Type-2 The slope is protected by vegetation

Type-3 Concrete foundation, and slope is protected by concrete grid in which the

grass is planted;

Type-4 Wire box containing gravels for the foundation only, and the slope is protected

by ecology and green concrete which allow the grass growth;

Figure 3C. 3 Embankment Alternatives from Sta. 9+400 to 17+400

174. Type-1 is recommended. A compounded river channel is used with the riverbed width of 120 m, and the top width of the dike is 20m. The main river channel is protected by 300 mm rock fill and the width of the main channel is 18, the depth is 0.5m, and the slope is 1:2. For the second level river embankment, the slope is protected by glass fiber grids reinforced vegetation, and the range is from 10-60m from the central line of the river.

3) River reach from 21+604-23+004

175. This river reach is located at the south end of the river reach rehabilitated using the domestic fund. The river width is 120m. Four different embankment alternative same to those in


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Section II are compared and the same river embankment system is selected as that for river reach from 9+400 to 17+400.

4) River reach (23+004-23+880)

176. This river reach is located at the north side of the Kalanggur River Bridge. This river reach is in the planned city park area. Four types of embankment alternatives are studied as shown in Table 3C.8. The river width will be kept as the original width, and four types of embankments are shown in Figure 3C. 4.

Table 3C. 8 Embankment Comparison in Section IV

Type Description Type-1 Rock fill for the main channel, the dike outside of the city park is protected

by the fiber grid which allow grass growing; Type-2 Rock fill for the main channel, the dike outside of the city park is protected

vegetation; Type-3 Wire box containing gravels for both the foundation and the embankment

slope; Type-4 Ecology and green concrete for both the foundation and the embankment

slope

Figure 3C. 4 Embankment Alternatives at City Park

177. Type-1 is recommended for the river reach. The main river channel will be protected by rock fill. The dike will be constructed at the outside of the city park.

5 River reach 23+880-26+455 at City Park

178. This river reach is located at the south of the Kalanggur Bridge at the downstream of this river in the city park. The same type of river rehabilitation scheme as that in the city park


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section is used. The river width will be kept as the original width, the existing high ground is used as the second level river embankment and the earth berm at outer edges of the flood plain will be built at the lower areas.

6) River reach for 26+455-27+123

179. This river reach is located at the south end of the project; the river width will be 60m after the rehabilitation. Four different embankments are compared as shown in Table 3C.9 and Figure 3C.5.

Table 3C. 9 Embankment Comparison in Section VI

Type Description Type-1 Wire box containing gravels for both the foundation and the

embankment slope; Type-2 Concrete foundation, and slope is protected by concrete grid in which

the grass is planted; Type-3 Wire box containing gravels for the foundation only, and the slope is

protected by ecology and green concrete which allow the grass growth;

Type-4 Concrete slab from the foundation to the top of the slope

Figure 3C. 5 Embankment Alternatives Sta. 26+455 to Sta. 27+123

180. Type-1 is recommended. The river section is trapezoidal with the river bed which of 60 m (bottom of the trapezoidal) and the slope is 1:3 for the embankment and 1:2.5 for the


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foundation. The slope for the outside is 1:3. The wire box of 0.6x0.6x0.6 m will be used, in which the gravels is filled.

C.9 Four Bridges over Rehabilitated Kalanggur River

181. There are four bridges crossing over the rehabilitated section of Kalanggur River. The bridge type and locations of the bridge are shown in Table 3C.10. Based on the alternative study, three span 20 m void slab bridge is recommended. The bridge cross sections and details are shown in Table 3C.11.

Table 3C.10 Bridge Type, Span and Locations




4 Tiyuguan Xi Road Bridge (K25+450) 60 L 36 (m) (Width, 8 lanes)

(all bridges are 3x20 m void slab)


Table 3C.11 Bridge Cross Sections


R Shldr/

Sep (m) R Lane (m)

Median

(m)

L Lane

(m)

L Shldr/ Sep

(m)

L NMT

(m)

L Sdwk

(m)

ROW

(m)

K15+600 Bridge 3.00 0.00 0.00 3.50 0.00 3.50 0.00 0.00 3.00 13.00

K23+000 Bridge 3.00 0.00 0.00 3.50 0.00 3.50 0.00 0.00 3.00 13.00

K17+050 Bridge 3.00 0.00 0.00 7.00 0.00 7.00 0.00 0.00 3.00 20.00

Tiyuguan Xi Road Bridge (K25+450) 3.00 3.50 0.00 7.50 8.00 7.50 0.00 3.50 3.00 36.00


Cross Section

182. The project component will not include the approach roadways connecting the bridges to the urban road network. These approach roadways are the associated facilities, and they will be built by the domestic funding. It is important that these associated roadways have to be designed and constructed in compliance of all ADB and domestic regulations and requirements, including ADB Safeguard Policy Statement requirements for environmental protection, resettlement, social, gender and indigenous people. The EA and IA have to make necessary arrangement so that the approach roadways will be built and completed before the start of the bridge construction.

C.10 Conclusion and Recommendations

183. For Kalanggur river rehabilitation design, the flood control standard of 50 year in one had been adopted. The water surface elevation was computed by considering the river channel geometry and hydrological data. The embankment type was determined according to geological and the water flow condition for different river reaches. The ecological friendly embankment had been chosen based on the embankment type comparison. For the upstream (7+400 to 9+400) and the downstream section (26+455-27+123) the river channel will be protected by gabion. The other parts of the river channel will be rehabilitated using compound channel, and the slope will be protected by glass fiber grids reinforced vegetation. More detailed hydrological and hydraulic analysis and engineering details shall be performed in the next step preliminary design to verify and confirm the design.


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D. District Heating

D.1 Heating Sector in PRC

D.1.1 District Heating Market Analysis

184. District heating coverage. Space heating for homes and offices is a necessity in northern provinces of the PRC. Heating can be achieved via family heating stoves, small neighborhood boilers for a few buildings and large centralized heating (or district heating) systems. District heating is the most efficient and less polluting heating means for households in urban area with dense population. District heating supply is growing rapidly in the PRC along with the fast economic development (GDP grew 2.5 times in the past seven years) and urbanization (urbanization rate at 53.73% in 2013). In the past, 15 provinces and provincial level municipalities in the north, northeast, and northwest PRC adopted DHSs. Along with the rapid socio-economic development and concerns on urban air pollution, more province and cities are installing energy efficient DHSs. 185. Heat volume and area. The heat supply volume and heating area of the PRC have been continuously increasing in recent years along with fast urbanization and GDP growth. In 2010, the total heat supply volume in the urban areas reached 2.91 billion GJ, and the total district heating area reached 4.4 billion m2 compared to 1.9 billion m2 in 2003 with an average annual increase rate of 12%.

186. It is expected to have further growth in DHSs with support from the growth in economic and housing sectors, urbanization, rising incomes, privatization of residential housing, a favorable policy environment, urban planning trends, such as the proliferation of modern high-rise buildings, industry concentration in economic development zones, and redevelopment of city centers. These contribute to the increased density of heat load, which is favorable for the development of centralized heating. The PRC Government forecast varies from 7.5 billion m2 to 13.7 billion m2 on total heating area in the PRC in 2020.

187. Heat sources. Among different types of heat sources, about 36% of heat is provided by coal or gas fired CHP plants and 64% is provided by coal or gas-fired HOBs (Heat-Only boilers) in the centralized DHSs. The PRC Government estimates that 50% of heat will be provided by CHP and remaining 50% by HOBs by 2020. It plans to install additional 491 GW of CHP capacities and eliminate 1,995 GW capacities of inefficient and polluting small HOBs. This will improve the energy efficiency of heat generation.

D.1.2 National Policies on District Heating Sector Reform

188. In the PRC, heating services were regarded in the past as a part of the government welfare services and government responsibility. As a result, energy was inefficiently supplied and used in the district heating sector, which increased urban air pollution. Government subsidies were allocated to state-owned district heating enterprises, which often did not efficiently operate the DHSs. To change this situation, the Government took initiatives since 1996 to (i) increase energy efficiency in the district heating sector; (ii) create modern district heating market and allow private companies to enter the market; and (iii) start to pilot and implement heating tariff reforms based on actual consumption. 189. The PRC has issued a series of policies and measures to implement heating reform and improve energy efficiency in the district heating sector. The average annual energy consumption per square meter floor area in 2009 was 0.53 GJ/m2, with an average annual


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decrease of 4.16% from 2003 (0.68 GJ/m2). However, comparing with international level of only 0.37 GJ/m2, there is still a large potential to improve energy efficiency and conserve energy in the district heating sector of the PRC.

190. In 2007, the National People’s Congress of the PRC amended the “Energy Conservation Law”, which requires implementation of household-based heat metering and consumption based billing. The NDRC and MOHURD issued the “Urban Heating Price Reform Tentative Guideline” in 2007 to guide local governments in setting appropriate heating tariffs, which requires phasing in two parts heating tariff consisting of fixed charge and variable charge. The State Council of the PRC issued the “Energy Conservation Ordinance for Civil Construction” in 2008, which requires installation of energy efficiency devices at household level. Further, the MOHURD together with NDRC, MOF, and General Administration of Quality Supervision, Inspection and Quarantine issued the “Comments on Further Enhancing Heating Metering Reform” in 2010. It requires implementation of consumption based billing system for newly completed buildings and existing buildings with energy control devices. Following the national guidelines, the HPG issued the “Notice on Further Promoting the Heat Metering Reform in the Province” in May 2010, which requires all old and new buildings with heat meters adopt consumption based billing system.

D.1.3 Challenges in District Heating Sector Reform

191. Energy waste in the district heating sector is enormous in the PRC due to inefficient heat source plants, aging heat distribution network, lack of demand side management, and inefficient energy insulation etc. It typically requires 50-100% more energy to heat the same space compared to comparable climates in North America and Europe. Energy efficient DHSs are an important element for constructing low carbon cities and improving the public health in northern provinces of the PRC. Some of the factors affecting the energy waste in district heating sector in the PRC are summarized below: 192. Old district heating infrastructures. Most of existing infrastructures in the heating systems are old and lack proper maintenance for many years. Large gains from energy efficiency and emission reduction can be attained through (i) replacing inefficient neighborhood boilers with centralized cleaner DHSs; (ii) improving insulation in transmission and distribution pipe network systems, and (iii) installing demand control DHSs (i.e., variable flow drives, computer monitoring and control system and heat flow control valves at the end user side).

193. Poor insulated buildings. The building codes in the PRC have been updated to international levels. However, enforcement of building codes is inadequate. Enhanced enforcement of building codes will increase the heat efficiency on demand side including energy efficient construction materials, ventilation system, and double-shield window.

194. Consumption-based heating tariff. Current heating tariffs and billing system is based on a flat rate per square meter per heating season in most cities of the PRC. This system should be transformed to the consumption-based system to send consumer a price signal and encourage energy conservation on the demand side. However, progress is slow in switching to the consumption-based tariff and billing system. Buildings constructed before 2008 are not installed with energy efficiency devices at the household level, such as heat meters, room temperature regulators, and heating system controllers. Accelerating installation of energy efficiency devices to the existing old buildings is required for further demand side energy conservation. Heating tariff reform needs to be widened in order to achieve energy consumption reduction from the demand side.


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195. Private sector participation. Transformation from subsidized social welfare tariff to cost recovery tariff is essential to foster the healthy district heating market and industries including private sector participation. Modernization of state-owned heating companies to provide customer-oriented services is important to increase the efficiency of heating business. In this sense, private sector plays a significant role to change the culture of district heating business practice. Currently, district heating service is still dominated by state owned enterprises in major cities of the PRC, while small and medium size municipalities and counties have started to have private companies to provide a part of the heating service. For small asset and revenue based heating companies, they have limited access to commercial financing for system rehabilitation and expansion of business. To improve the energy efficiency in the industry and access to commercial financing, consolidation of small heating businesses to large ones is necessary. During the transition period, the government financing support is required for medium and small scale companies. 196. Invisible government subsidies. Subsidies for heating by local and provincial governments have decreased over the years but there are still subsidies. Changing to a transparent and targeted heat subsidy system is important to efficiently use the government budget, which includes transferring heat bill payment responsibility from employers or companies to consumers and targeted subsidy for low-income consumers to ensure their affordability.

D.2 Heating Sector in XUAR

D.2.1 District Heating Market Analysis

197. Heat volume and area. With the accelerating pace of urbanization and economic growth, district heating in cities and towns of XUAR has experienced fast development in recent years; the total heating area in XUAR was 294 million m2 in 2012. 198. Rapid urbanization of XUAR substantially increases district heating demand, as of 2013, the urbanization rate of XUAR reached 44.5%. The existing heating system can no longer meet the growing heating demand. It is imperative to demolish low-efficiency small boilers and expand DHSs that are more energy-efficient and lower in emissions.

199. Heat sources. In XUAR, heat is supplied mainly by CHP and coal-fired HOBs. The remaining houses and buildings without district heating supply mainly use stoves for space heating in winter.

200. Currently in XUAR, the most commonly used fuel for heating is coal. Most existing heating facilities in the cities are outdated and inefficient, and lack necessary pollution control equipment. There are still many scattered, inefficient, small coal-fired boilers that not only create a huge waste of energy but also lead to serious air pollution, thus adversely impacting public health.

201. According to the “12th Five-year Plan on National Economy and Social Development of XUAR”, XUAR will expedite the construction of CHP plants, biomass heating and heating pipeline upgrade during the 12th Five-year period. By 2015, the district heating area of XUAR will increase by over 168 million m2.

D.2.2 XUAR Policies on District Heating Sector Reform


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202. Energy efficiency at heat source and distribution system. Tax preferential policies and other financial support are implemented for energy-saving retrofitting projects. In terms of heat source, small low-efficiency boilers are being closed and replaced by large scale high-efficiency HOBs and CHP plants. Many small cities and towns are being connected to DHSs and household stoves being dismantled. Air pollution control devices to remove PM and SO2 are being installed to further reduce the air pollutants emissions. Pilot projects are implemented in biochemical engineering, biomass briquette utilization and coal-fired boiler retrofitting for burning biomass. On the hot water transmission and distribution side, old heat pipelines are being replaced and upgraded with improved insulation to reduce heat and water losses. Direct heating system has been changed to indirect heating system by installing HESs and variable flow pumps. 203. Energy efficiency in buildings. Building energy conservation is legally required in XUAR following the “Regulations on Energy-Saving for Civil Buildings” published by AR government in January 2003. Energy-saving materials, such as insulation board made of polystyrene foam and heat insulated concrete form, are used for new building construction. Some old buildings have been rehabilitated for energy conservation.

204. Heat metering reform. In 2010, XUAR government issued the notice on further promoting the heat metering reform in XUAR following the national “Guidance on Further Enhancing Heating Metering Reform” issued by four ministries. It requires that in 2010, all new buildings and existing ones finishing heat metering retrofitting shall adopt heat consumption based billing instead of floor area based billing. The specific billing measures will be established by the local governments. In order to motivate consumers to save energy, the base proportion among the two-part heating tariff mechanism could adopt 30% of the total while the other 70% is based on actual heat consumption. It requires that existing large-scale public buildings and government buildings should complete retrofitting for heat metering and realize consumption-based billing by the end of 2012.

D.3 Due Diligence

D.3.1 Component Rationale

205. A. Carry out the national energy-saving policy, build up a conservation-minded society and implement sustainable development strategy. Tacheng City is located in the north temperature area, the main characteristics of the climate is with cold winters and hot summers. The outdoor calculating temperature in winter is -23℃ and the actual heating period are 180 days. Nowadays, the nation encourages the utilization of district heating to replace the existing large numbers of scattered small boiler houses to achieve greater energy efficiency with less cost on land, environment, fuel and water resources. To satisfy the heating demand in the future new urban area and significantly improve the energy utilization efficiency, energy conservation and air quality, the Project is going to replace the scattered coal-fired small boiler houses with district heating based on power plant. Thus, this Project can put the national energy policy; establish conservation-minded society and sustainable development strategy in practice. 206. B. Improve the urban infrastructure and optimize resource allocation. With the construction of Tacheng 2x350MW Cogeneration Project by China Power Investment Corporation, it is imperative to use cogeneration for heat supply in Tacheng City. Along with the accelerating construction of the new urban area, new buildings are increasing with more heating demand. The capacity of the boiler houses in thermal power company is full thus unable to support new buildings. As a result, new pipeline network for power plant and heating stations are urgent.


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207. C. Protect the environment, build environmentally-friendly city and satisfy the heating demand. It is largely accepted that scattered boiler heating is disadvantaged with a waste of energy resource and pollution to the environment. However, district heating based on power plant is able to increase efficiency of energy utilization and heating quality and diminish the usage of scattered boilers, thus improve the environment by reducing the direct dust and SO2 disposal to atmosphere.

D.3.2 Project Component

208. The proposed heating subproject will improve energy efficiency and reduce emission of greenhouse gases and other pollutants in Tacheng city by introducing energy efficient district heating systems. This project component will construct total length of new hot-water heat-supply network is 18.6Km, with the maximum pipe diameter of D1220×10, and 21 water-water heat exchange stations with hot water supply from existing heat-only boiler and purchased from the new combined heat and power (CHP) plants. Since boilers used by the component will have CHP or large Scale boilers of much higher energy efficiency than that of small coal-fired heat-only-boilers (HOBs) and family heating stoves, the project will result in a significant energy efficiency improvement, i.e. above 25% compared to small boilers and 40% compared to family stoves.

D.3.3 Technical Analysis

209. According to Tacheng city master plan, the floor area will be 9.87 million m2 by 2015, 11.55 million m2 by 2022 and 15.20 million m2 by 2030. The heat load will be 654MW by 2015, 741 MW by 2022 and 914MW by 2030. The existing district heating penetration is 68%, according to Tacheng city master plan and Tacheng heating master plan, the district heating penetration will be 88% by 2017, 93% by 2022, and 98% by 2023. 210. Heat Demand. According to Tacheng Municipal Government Development Plan and Heating Plan, the district heating area will cover an area of 9,391 million m2 in 2017. Of which, the existing district heating area is 5.982 million m2 and increased area is 3.889 million m2 (with increased building area 3.889 million m2, including 480,000 m2 of warehouse buildings as non-heat building.) 211. Heat Index and Heat Load. The local heating period of Tacheng City is 180 days; the heating starting temperature is 5℃. In the heating period, the outdoor calculating temperature,

the average outdoor calculating temperature and indoor calculating temperature is －23℃, is －

6.3℃ and 18℃ respectively. Currently, lots of buildings in heating areas are brick structures, with wall thickness of 370mm and double window. The heat indexes are calculated based on local heating experiences in Xinjiang and recommendation values in Urban Heating Pipeline Network Design Specification.

212. Heat Source. By 2012, there are 4 regional district heating boiler rooms responsible for heat supply in Center District, Dong District and Border Economic Cooperation Zone. The total heat supply capacity of these boilers is 466MW, and the total heat supply area is 3.85 million m2, accounting for 68% of total heat supply area.

213. The Tacheng Combined Heating and Power Plant (CHP) by China Power Investment Corporation will be the major heat source, 2×350MW cogeneration units will be built. The rated heating extraction quantity of the steam turbine unit is 230t/h, while the rated extraction quantity of two units can reach 460t/h, the heat supply capacity is 358.8MW, which can satisfy the overall recent heat load. The future heat supply load needs to be met through the expansion of the power plant and peak-adjust boiler houses.


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214. The preliminary approval from DRC of Xinjiang for the CHP project was received, and the other documents for the CHP project are in preparation. All these documents will be submitted NDRC for review and preliminary approval. The FSR and EIA will be prepared after getting preliminary approval from NDRC, and then the FSR and EIA will be submitted NDRC for review and approval, the CHP project will be allowed to construct in case of getting approval, the construction period of the CHP project will be at least 2 years. According to the existing national energy policy, there is an uncertainty to get approval from NDRC in a timely manner. ADB expressed that the district heating component will not be financed unless the CHP project start construction. The issue has to be resolved before ADB can process the loan. It is suggested that a two stage implementation plan for heat source shall be developed for the potential delay of CHP approval and construction. In the short term, due to the low heating demands in the new district, the existing heating plants will be used to supply the heat. After the completion of CHP construction, the heat source will be switched to CHP and the existing heat plants will serve as the backup heat sources as originally planned. The engineering analysis and the necessary adjustment in the design shall be conducted.

215. Heat Supply pipeline network. By 2017, it is planning to build hot-water pipeline network of 17.73 km with maximum diameter of D1220×10 (including heating pipe diameter of D820×8 from Runsheng Thermal Plant, and the length of construction is 7852m). The pipeline network from heat source to thermal power station will adopt Level 1 pipe network, the supply and return water temperature of which is 130℃,70℃ respectively.

216. Heat Exchange Station. The subproject is planning to build 21 water-water heat exchange stations (HES).The heat exchanger will adopt plate heat exchanger for its small floor space and high heat-transfer coefficient. To enter the thermal power station, the primary hot water transmission line will enter the heat exchanger through the scrubbing of dirt separator; the return water temperatures of secondary network are 65℃/60℃. The secondary network will enter the thermal power station through dirt separator, and then be forced into the heat exchanger. Each thermal power station will set the demineralized water equipment and water tank, and then provide water filling and constant pressure for the secondary lines. The System will set pipeline pressure gauge, thermometer valves and other control equipment accessories.

217. SCADA Control System. Each thermal power stations will set local monitor stations, which can run the computer control devices independently and responsible for collection, monitoring and automatic control of on-site operation parameters in district heating area. The system will provide human-machine interface, in addition, through communication and computer network in heat supply network monitoring center, it enables the transmission of monitoring data from the thermal power station and subject to monitoring center’s command.

D.3.4 Key Technical Parameters

218. The key technical Parameters of this subproject are shown in the table below.

Key Technical Parameters of Tacheng District Heating Subproject

No. Technical Parameters Unit Value

1 Total heating area 104 m2 939.1

2 Maximum heat load MW 541.40

3 Average heat load MW 340.56


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4 Minimum heat load MW 189.20

5 Integrated heat index W/m2 70.00

6 Total capacity of thermal power plant MW 358.8

7 Total length of pipeline network km 17.73

8 New HESs set 21

9 Annual total heat consumption GJ/a 5,293,418

10 Energy consumption per m2 of heating area GJ/(a.m2) 0.56


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E. Municipal Solid Waste Management

E.1 Introduction

E.1.1 Tacheng will improve the existing municipal solid water (MSW) towards a sustainable solid waste management system. The main objective is not only to improve the existing sanitation facilities and integrated waste management system, but also to promote different potential and suitable ways for pollution reduction, waste minimization and beneficiary reuse of the MSW, based on the international waste hierarchy and taking into account the local conditions. Thereby, the amount of the MSW to be disposed of into the sanitary landfill site will be reduced and the service lifetime of the existing or new sanitary landfill site can be extended accordingly. Finally, an essential basis of the innovative integrated solid waste management (ISWM) can be stepwise established by implementing this project. 219. At present a daily generation of MSW has reached 125 tons in Tacheng City. The city has achieved the removal rate of 100%; waste years freight volume of 45100 tons, street cleaning area of 750800 square meters, and the mechanical cleaning rate 42%. Street snow removal is mainly by manual cleaning with no special machinery and equipment. With regard to the current situation of the solid waste management system, solid waste collection system and efficient landfill operation and management capacity are lacked according to the preliminary version of the FSR. Most of equipment and technique used for solid waste collection and transfer within the urban area are aged and cannot be modernized up to now due to the lack of investment. For the MSW management system, there is also no systematic waste separation and no attempt to reduce, reuse or recycle the MSW.

220. The integrated solid waste management (ISWM) system is a method to minimize the final disposed amount of MSW by applying the 3Rs principles of reduce, reuse and recycle. For today's MSW management, there are generally three important elements to be considered and integrated in the process of development and implementation of the ISWM: waste minimization, beneficiary reuse and safe disposal of MSW. With regard to each mentioned element:

221. Waste minimization of MSW can be understood here as efficient separation before beneficiary reuse and safe disposal. The separated recyclable MSW will be reused in different ways while the rest of MSW is to be disposed of into landfills. For this reason, an efficient separation can maximize both beneficiary reuse and safe disposal. Therefore, it is also an important condition for sustainability of the ISWM. In case of Tacheng City, the concept of sorting at the source will be proposed. At the selected communities of the urban area, a double-barrel collection system will be established, including one for recyclable waste and one for the rest. In addition to the double-barrel system, numberless collection points/stations for recyclable inorganic waste such as old paper, glass and plastics will be set up in each selected communities for direct material recycling by using special collection containers. The feasibility and efficiency of this first separation at the collection source is depending on public awareness and participation. Hence, the public awareness campaigns are also an important instrument and action for efficient separation at collection source.

222. Beneficiary reuse of MSW can first reduce amount of MSW for disposal into landfills so that sustainability of the ISWM will be respectively increased in view of the service lifetime of landfill sites. In principle, there are two methods for beneficiary reuse: (a) material recycling by compost and fermentation; (b) energy recovery by incineration and fermentation. In comparison with compost and incineration, fermentation can benefit from both material recycling and energy recovery, but the required technology for pre-treatment of MSW and fermentation is very complicated. Incineration needs not only complex technology, but also high investment and operation costs. With regard to environmental protection of air, the exhaust gas treatment and emission during incineration is always a major challenge. Based on 3R principles, the


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international waste hierarchy, the international and national best practice related to the solid waste sector as well as the evaluation of all feasibility documents, local conditions and information exchange with all parties involved, an ISWM system has developed by the PPTA team in close cooperation with the DI and IA. It consists of following ISWM components:

1) Establishing collection points for recyclable inorganic waste such as old paper, glass and plastics in some new urban area of Tacheng City for direct material recycling by using special collection containers

2) Pre-separation at source collection (household) by using double-barrel system, one for recyclable waste and one for rest waste

3) Collection of rest waste in bin and garbage barrel in household by compaction solid waste trucks as well as mobile compaction garbage containers. The MSW trucks will be coupled with garbage barrels, mobile compaction garbage containers for direct loading and transporting to the landfill site without secondary pollution.

4) Kitchen waste collection and recycle system will be developed and implemented by the municipal government in the future, and it is not a part of the proposed ADB project.

.

5) Public awareness campaign shall be included during the project implementation, which may include: • Frequent conducting public awareness campaigns in residential zone or on street

with focus on waste separation in recyclable and unrecyclable waste as well as in kitchen waste and hazardous waste

• Integration of education program of environmental protection in daily life for kids at school

• Introduction of different tariff program for recyclable organic waste and rest in such residential zones where a so-called two-bin (double barrel) waste collection system is used.

E.2 Project Background

E.2.1 Project background

223. Tacheng is a temperate continental climate, the territory of the land is fertile, natural condition is rich. Tacheng city is located in the Northwest of China border in the northwest of the Xinjiang Autonomous Region in north of Tianshan Mountain. The city is at Tacheng basin northwestern edge in the south is Taerbahatai Mountain. The total area of 4356.6km2 and the border line of 155km. Tacheng city is adjacent to Kazakhstan Republic in the northwest. Emin County is in the east and Yumin County is at the south

224. According to the city master plan of Tacheng City, the garbage output is 125t/d, and the removal rate is 100%. The annual accumulated municipal solid waste disposal quantity is 45100 tons. The street cleaning area is 750800 m2, of which the mechanical cleaning rate is about 42%.

225. Currently the main treatment and collection methods of Tacheng municipal solid waste are as follow:

Waste refuse collect boat Swing arm type garbage truck

waste sanitary landfill site


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Waste trash bin truck waste sanitary landfill site

Waste dustbin beside the road refuse collect boat Swing

arm type garbage truck waste sanitary landfill site

226. Most of equipment and technique used for solid waste collection and transfer within the urban area are underdeveloped and cannot be modernized up to now due to lack of investment. With regard to the current situation of the solid waste management system, both solid waste collection system and efficient landfill operation and management capacity are lacked. 227. In order to solve the above mentioned acute problems with an inefficient infrastructure of the municipal solid waste management system in Tacheng City, a number of necessary technical measures are suggested in preliminary version of the FSR. The main target of all proposed project components almost focuses on improvement of the current situation in solid waste collection, transfer, such as reduction, recycling and reuse as well as public awareness campaigns.

228. From the viewpoint of the PPTA team, the present solid waste management system without systematic separation and recycling at source collection and/or before deposit into landfill sites can at most achieve the goal of a safe treatment and disposal of MSW only. In the long term, due to the very limited service life of the landfill site in Tacheng, the only safe disposal by landfill is not enough to establish a sustainable solid waste management basis. Therefore, project components such as measures for waste minimization and beneficiary reuse of MSW should be developed and integrated in the present solid waste management system.

E.2.2 Current situation and existing problems of waste separation

229. Currently all the municipal solid waste in Tacheng City is mixed collected. Basically there are no sorting facilities. Municipal solid waste is transported to landfill site for disposal after mixed collected. Only waste materials such as beverage bottle, glass, waste paper, plastic, etc. are recycled spontaneously by recycle station and the inhabitants. There are about 110 scrap purchasing station in Tacheng City, employing about 560 people, the unemployed is no organization and autonomous, more than about 70 tons of waste are collected per-day.

230. The mixing collection method of municipal solid waste right now, only a small amount of recyclable matter are sorted out, mainly shows that the spontaneous behavior disorder, only the economic benefit are sorted out, sell and reuse. The poor economic components without sorting, resulting the waste resources and reduce the landfill life. In addition, kitchen waste containing organic perishable waste with high water content is collected together with other waste. This kind of waste has the characteristics of high water content, high organic matter content, high biodegradability and low heat value. They are easily rotten and smelly with breeding mosquitoes when remained in the dustbin, collection point. On the other hand, high water content of waste might lead to wastewater percolation during transportation process to leak the wastewater and pollute the city roads.

231. Mixing collection is not good for the following waste treatment either. By applying the existing landfill method the high water content and low heat value of the mixing waste will largely increase leachate production and raise the secondary pollution treating cost.


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E.2.3 Current situation and existing problems of waste collection and transfer

232. There are 37 vehicles in Tacheng City, including the garbage truck, the road sweeper, plows, loaders, bulldozers, forklifts and so on. With the urban expansion, the domestic waste collection and transportation of the new area can only be removed by the existing collection vehicles, while the current collection vehicles quantity is limited, barely able to maintain in the old city life garbage, the garbage vehicle is overload, the vehicle loss is more serious. The equipments are needed to be updated. With the urban expansion, the fund of the living garbage collection and transportation facilities is low. The collection facilities can’t meet the new urban area. The collection point service radius is too large. It is difficult to complete the new regional living garbage collection and transportation.

233. Tacheng city collection facilities are mainly refuse collection boat, the backward open collection and transportation mode without sorting facilities, Cause second pollution, impact the city appearance; there are 329 garbage collection stations, which is also the pollution. The garbage without sorting only is sorted and sold by the disorder scavenger. The environmental management department can’t put propaganda and take the measures on garbage sorting management. The government departments have not introduced policies and corresponding policy subsidies. It is difficult to treatment resources, increasing the amount of garbage clean-up, furnace ash counts for 46.8% of waste, which occupies the landfill capacity.

234. With the urban expansion, the sprinkler, the existing washing vehicle number, snow sanitation vehicle less, unable to complete the new city road cleaning work. The new equipment is needed to purchase.

E.2.4 Current situation of waste landfill

235. The waste landfill is located in Taer Road at about 11 km away the city center, and the capacity is 190t/d. The total volume is 1.50×106 m³. The landfill is to be expanded at the south of the existing landfill. The capacity for the expanded landfill is 180t/d with a covering area of 178089 m2. The design service life is 13 years.

E.3 Project rationales and justifications

E.3.1 Comments on City MSW Master

236. Based on 3R principles, the international waste hierarchy, the international and national best practice related to the solid waste sector as well as the evaluation of all available documents, local conditions and information exchange with the relevant department, an adjustment proposal of the MSW treatment and disposal master plan for Tacheng City is developed by the PPTA team in close cooperation with the DI and the IA. 237. The municipal solid waste is proposed to be classified as: (i) recyclables waste as beneficial reuse; (ii) kitchen waste through compost for landscaping; (iii) hazardous waste for unified treatment after fixed point collection; (iv) remain waste for landfill. The specific classification and disposal method of MSW is referred to the following diagram, recommendation as followed:


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E.3.2 Selection of project components for ADB financing

238. Based on the master plan and taking into account the current situation in views of geographic locations, environmental conditions and the level of socio-economic development in Tacheng City, the following project components for ADB financing are proposed by the PPTA team in closed cooperation with the DI team and IA:

239. The FSR study area is mainly Tacheng new area and West center area, waste classification point test, purchase of collection facilities and transport vehicle and environmental vehicle etc. to build perfect garbage classification system and direct transportation management mode.

240. Separation category test work in Tacheng new area residential area, for the recyclable material, recycled through the waste recycling station, then reused. The toxic and hazardous waste collected in fixed time and location, treated integrated after collection, other waste directly sent to Tacheng landfill site for sanitary landfill through the closed bins, the hook arm vehicle and mobile compression box. Due to the aging of some devices and the extension of the urban area, according to the needs of practical work and following the standard of sanitation equipment such as dustbin, sewage suction truck, snow cleaning truck, etc. needs to be supplemented and renewed.

241. Procurement of construction waste treatment equipment with 2 sets of mobile crushing facilities. Based on Tacheng situation, with ‘nearest disposed’ principle, 1 set of mobile crushing equipments are set up. The facilities work in site without transportation, the transportation cost is reduced. The processing capacity is 90~180t/h. The product meets road bed backfill requirement.

242. The following principle is considered during the process of the project components: (i) Comply with ADB's investment-related industrial policy; (ii) Comply with Xinjiang municipal solid waste innocent treatment facilities building “Twelfth Five-Year” Plan; (iii) Start from the current situation of Tacheng municipal solid waste, taking into account the progress of municipal solid waste; (iv) Achieve the initial mode of municipal solid waste disposal; (v) Accumulate experience and foundation for the follow-up project.

E.3.3 Project rationale

Recyclables Kitchen Waste Remaining Waste

Municipal Solid Waste

Hazardous Waste

Resources Reutilization by

Recycling through Collection Point

Compost for Landscaping Unified Treatment after

Fixed Point Collection

Collection Transport Station

Disposal in Landfill Site


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243. The PRC Government is accelerating its support to organize the development of the country’s small- and medium-sized cities. The country’s macro urban strategy aims at rationalizing the unbalanced urban structure at all levels of the urban hierarchy, which currently provides a weak base for supporting a sustainable and inclusive development. One of the main approaches is to promote the rapidly growing medium-sized cities, which have the potential to drive a sustainable and inclusive urban development. They can benefit from economies of scale and clustering of local economic activities without the cost and inefficiency associated with big cities, and plays a key role in reducing the gap between rural and urban areas.

244. The Eleventh and Twelfth Five-Year Plans have indicated clear targets and measures to maximize their delivery of social and environmental goals, and to increase their economic performances. However, medium-sized cities are still lacking adequate infrastructure resulting in (i) environmental pollution, (ii) constrained economic development, (iii) inability to effective absorb the flow of rural surplus labor. They are challenged with water scarcity, water pollution, unsustainable solid waste management, and lack of connectivity to basic municipal services. One of the key challenges is to develop medium-sized cities to be viable and resource efficient. The Asian Development Bank (ADB), through several projects in the PRC, has been a key partner in implementing municipal services solutions adapted to the size and the capacity of medium-sized cities. Including the Xinjiang (Kanas, Alashankou, Yining) project has been successfully implemented. Xinjiang city traffic and environment improvement project are to promote. The Aletai project has entered the construction phase; Kuitun project and Karamay project are entering the end. The ADB has built through multiple investments a long-term strategic partnership to decrease urban pollution and support a more balanced urban development. 245. By the research to this project in aspects of construction scale, construction condition, engineering technical design, investment and financial situation, the conclusion is as followed: the project plays a very important role in Tacheng solid waste treatment, promotion of city construction and improvement of city environment. The construction of the project fits with national industrial policy, fulfills good construction condition, picks reasonable construction scale, and has good social and environmental benefits, it is feasible. The project promotes MSW source recovery and the reuse of available resources. The project follow the principle of ‘reduction, resources, harmless’, assure the Tacheng City sustainable development.

E.3.4 Project justification

246. According to Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Wastes (2004-12-29 Revision), treatment of municipal solid waste follows the principle of “waste minimization, beneficial reuse, safe disposal”. In this project, it also follows this rule.

247. Tacheng City applies an integrated approach to deal with municipal solid waste. Hence, in this project, the principle to choose municipal solid waste disposal method is: the first is through separated collection of useful components in waste recovery and recycling as much as possible; the next is to the biodegradable materials of the municipal solid waste for compost as much as possible; the last is to the rest waste for landfill. After the classified collection, the kitchen waste with organic matter is to be compost in the future.

a. MSW source separation

248. Municipal solid waste separated collection is a very important process in handling safe disposal, waste minimization and beneficial reuse. According to Municipal solid waste disposal technical guide (MOHURD [2010] No. 16), “it should be avoided and reduced from the source


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of municipal solid waste generation as much as possible, it should be separated and recycled of generated municipal solid waste as much as possible, to achieve source reduction. Separation and recycling of waste should implement separated transportation and separated treatment by resources. By continuously improving the level of municipal solid waste treatment, it is to ensure the municipal solid waste to get the harmless treatment and disposal.” Therefore, this project decides to carry out separated collection work of municipal solid waste in the selected communities with better infrastructure in Tacheng. The kitchen waste with high organic matter is to be composted. The rest goes for landfill after transportation.

b. MSW transfer station renovation

249. Waste collection and transportation treatment system is a very important sign for city modernization. Therefore, it is very necessary to establish collection and transport system which matches the environmental protection standard. Therefore, this project decides to make renovation to existing waste collection stations, and add compression facilities. It fits with the regulation in “Twelfth Five-Year” national municipal solid waste innocent treatment facilities construction plan which is “waste compression collection transportation method compression, overall layout management of the waste transfer stations, construction and upgrading strengthening of compression waste transfer stations. Confined collection and transportation promotion, open type collection and transport elimination, avoiding and reducing secondary pollution of municipal solid waste during transit”. So, the closed collection box, collection barrel and compress vehicle are purchased to reduce secondary pollution.

E.3.5 Project benefit

250. The implementation of this project helps to improve the quality of city environmental sanitation, further the city appearance, opening environment and living conditions, to promote economic, social undertakings to achieve high speed, ultra-conventional, leaping comprehensive development, and ultimately playing a significant role in promoting city development. Therefore, the implementation of the project is necessary.

251. The progress of this project makes positive promotion to the resource source point recycle of Tacheng municipal solid waste as well as the reuse of available resources. Also this project agrees with the principle of “waste minimization, beneficial reuse, safe disposal”, gives great protection to the local sustainable development of Tacheng such as (i) waste minimization; (ii) beneficiary reuse; (iii) safe disposal; (iv) public awareness campaign.

E.4 Project Summary and MSW Scheme

252. Through the source classification, from 2015-2030 years, the annual landfill amount reduction is about: 166700 tons (in the FSR, the amount is 208000 tons, is high). The current waste landfill quantity is 65000 tons every year, which will prolong the service life for 2 more years. The waste is collected by the closed type garbage box, closed type garbage compression box, and 2 sets of intelligent garbage rooms. The collection method improves the influence of sewage, odor, and other types of secondary pollution to the residents around the collection stations. The waste is direct transported by dustbin matching with compress truck, mobile compress box matching with hook truck. The spatter phenomenon is avoided. The transport efficiency is increased, and the transport cost is reduced. The average annual fuel consumption is saved by 8596.5L. The automatic sweeper and snow sweeper improve the cleaning rate, reduce the labor intensity. The work efficiency is improved.


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253. According to Xinjiang city plan and Tacheng city plan, the selection principle of MSW treatment methods is to recycle and reuse of useful substances as much as possible by separated collection, followed by the approaches to compost the biodegradable material; and lastly to dispose in the landfills.

254. MSW sorting work is a very complex process. For the project, the sorting at the sources is used, i.e. two bins collecting recyclable matter and unrecyclable matter in the residential area is used. The community workers sort the garbage first to separate the recycle and non recycle wastes while the recyclable garbage can be directly sold to recycling stations, such as paper, plastic, glass and metals, and the remaining waste are transported to the landfill. At present, the MSW sorting collection way meets the Tacheng city actual demand.

255. The garbage source sorting work is set in the selected communities. The community maintenance workers will supervise and guide people to sort the domestic waste, help to further separate the recycle items dumped by the residents without sorting, arrange and coordinate to send the recycle items to the recycle collection stations in the city. It is suggested that a community participation program to be developed and implemented to get the retirees in the community to participate and help on domestic solid waste sorting and recycling actives.

256. In the business district and office building area, the sorting and collection will be done by providing 2-bin system for recycle and non recycle solid wastes. Since the business and office building areas are more crowded with heavy traffic and people, the proposed 2-bin system is more practical. A public awareness campaign shall be developed and implemented to raise public awareness in recycle and reuse in order to make the 2-bin system effective.

257. The proposed MSW improvement scheme can be achieved by procuring the corresponding MSW collection and transport equipment. The equipment will include the trash bins with the garbage trucks designed to load such bins, the MSW compaction trucks with the automatically loading platform, the MSW side loading trucks with the specially designed garbage barrels, etc.

258. The issue of kitchen waste was investigated. A lot of household waste comes from kitchen. The Kitchen waste can be defined as any food substance, unwanted cooked food, etc. and the composition of kitchen waste is organic. As the overall best practice for kitchen waste management in most developed countries, the kitchen waste is mostly separated collected with a special waste bin and treated through composting with green waste together. The compost product will be reused for landscaping like garden and forest greening. In China, mixed collection of MSW is the most way for waste collection which is very hard for waste minimization, beneficiary reuse and safe disposal. As the waste is mixed to be collected in China, there are many material such as glasses, plastic and metals which is not good for the soil. Therefore, the waste sorting is the key pre-treatment to make sure the high quality of the compost product as a valuable organic fertilizer. Due to lack of source separation and pre-sorting, it is at present very difficult to implement and extend the composting in China.

259. The source separation of kitchen waste in selected communities and composting with pre-sorting facility is not only based on the international waste hierarchy and best practice, but also in line with national policies and programs for waste minimization, beneficiary reuse and safe disposal. Tacheng City kitchen garbage accounts for about 24.5% of the total waste, and there is big potential for developing composting in the area. However, based on the waste comprehensive treatment in the autonomous region, the composting treatment construction has not yet to be in the acceptable practices, and more study and testing will be needed in consideration of the special local environmental and climate conditions.


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260. Taking into account technical and operational aspects, the selection of communities for the source separation will be based on following criteria: (1) even distribution on the project district area; (2) suitable road network for special waste vehicles in communities; (3) communities with better management in order to make the demonstration feasible and successful before to expand the work to other remaining communities easily on next stage.

261. In order to promote the recycling and reuse of waste in new urban area, the new urban areas should promote the classification of garbage collection. For the recyclable material like paper, glass and clothes, special collection points/stations will be set up in each selected community by using three special collection containers. As for the toxic and harmful waste, to be collected regularly and treated centralized. As for the recovery stations distributed uniform, therefore, it is suggested that the government departments reduce or subsidies the tax, to promote the recycling of waste resources and social employment.

E.5 Demands and supply analysis

a. Quantity and Ingredient of MSW

262. Xinjiang is located in northwest of China. The winter is cold and the heating period is long. The regional economic development level is low. Some residents use coal-fired heating in winter, resulting in more ash, residue contents in living garbage. The average waste per person daily life trash quantity is higher comparing to other part of country. Based on the sanitation department statistics date of 2013, the average city life garbage in 2013 is 1.47 kg / d. Based on this assumption, the domestic garbage quantity prediction is calculated as following:

Q=q×Pn

where Q—daily garbage quantity

q—People

Pn—per capita waste production

263. By calculating, the daily garbage quantity by 2020 is 126.98t/d and the daily garbage quantity in 2030 is 254.80t/d. Based on the calculation results, the design MSW amounts are 125t/d by 2020 and 250t/d by 2030, respectively. The summary of the prediction amounts each years is shown in the following table:

Table 3E. 1 Domestic Garbage Amount Projection

year People (×104)

The per capita waste production

(kg/(IE*d))

Daily waste production (t/d)

Target treatment capacity

104t/d

Waste total

104t/d

2013 50000 1.47 73.50 2.68 2.68 2014 55000 1.46 80.30 2.93 5.61 2015 61700 1.45 89.47 3.27 8.88 2016 66642 1.44 95.96 3.50 12.38 2017 71980 1.43 102.93 3.76 16.14 2018 77746 1.42 110.40 4.03 20.17 2019 83974 1.41 118.40 4.32 24.49 2020 90700 1.40 126.98 4.63 29.12 2021 97965 1.39 136.17 4.97 34.10 2022 105812 1.38 146.02 5.33 39.42


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2023 114288 1.37 156.57 5.71 45.14 2024 123442 1.36 167.88 6.13 51.27 2025 133330 1.35 180.00 6.57 57.84 2026 144010 1.34 192.97 7.04 64.88 2027 155546 1.33 206.88 7.55 72.43 2028 168005 1.32 221.77 8.09 80.53 2029 181462 1.31 237.72 8.68 89.20 2030 196000 1.30 254.80 9.30 98.50

b. MSW Waste Composition

264. With the city economic development, the compositions of the residents living garbage will be in a trend of increasing organic and combustible contents, decreasing of ash from coal burning. The kitchen waste will also increase. By 2020 the MSW composition projection will be estimated as organics for 30%-40%, inorganic for about 45-50%, and the recyclable waste for 10-25%. The heat value of garbage is about 2500-3500kJ/kg. The summary results is shown in the following table:

Table 3E. 2 MSW Composition

Component Organics Inorganic Recyclable waste

%

Kitchen others ash muck others paper plastic glass metal

24.5 6.5 24.3 10.5 12 5.5 8.8 4.9 3

31.0 46.8 22.2

c. Scale of Project

265. The design quantity of the MSW collection is 120t/d by 2020 and 250t/d by 2030, and the MSW collection rate is 100%.

E.6 Detailed engineering analysis

E.6.1 The MSW components

a. Domestic solid waste source separation in Huaxi, Guangming and Minhang communities; establish recycle stations in each of the community.

b) Procurement of 300 sets of bins, 5 sets of behind load compression trucks (3 sets of 8t, 2 sets of 5t ) and 3 sets of side load compression trucks ( weigh is 3t ) till 2020.

a. Build 7 sets of the water flushing toilets (including the tool room) and 2 sets of environmental protection toilet.

b. Procurement of 212 sets of garbage bins.

c. Upgrading urban cleaning and maintenance equipment fleet.


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E.6.2 Specifications and standards

The method of calculate and forecast about municipal domestic waste output,

CJ/T 106-1999

Standard for setting of municipal solid waste collection station, (Construction standard154-2011)

Technical specification for municipal solid waste collecting center, CJJ179-2012

Code for planning of urban environmental sanitation facilities, GB50337-2003

Standard for setting of environmental sanitation facilities, CJJ 27-2012

E.6.3 Engineering design

a. Waste collection and transportation system

266. Based on the source classification collection to achieve the reduction, the resource sorting and recycle as well as the waste collection and transportation system is as follows:

b. Design of waste transportation system

267. Transportation - The short term scale is 125t/d and the long term scale is 250t/d. The existing landfill is located in Taer Road at about 11km away from the centre town. The transport distance is short. The waste is transported to the landfill by the collection car directly without waste transfer station to avoid secondary pollution.

268. Transport route - The MSW is transported from the urban road network and finally through Taer Road to the landfill.

269. Transportation mean - The MSW collected is transported to the landfill by the back loading compaction trucks or side loading compaction trucks. The confined compression type garbage truck (8m3 and 5m3) and compression vehicle (3m3) and mobile compress box (10m3) will be purchased.

c. Source separation

270. In order to promote the recycling and reuse of waste in new area and west area of Tacheng City, the municipality should gradually transfer the current total disposal to the landfill site to method to the integrated MSW management by reduce, reuse and recycle. MSW separated collection should be adhered to the following principles in short term: (i) the sorting should not be more than two; (ii) the unrecyclable waste should be collected separately; (iii) the recyclable material should be collected as one kind; and (iv) for the different functional areas, the collection scheme shall be adjusted.

271. By the principle of step by step implementation, the separated collection of MSW in Tacheng should be gradually introduced following the classification principle as below: (i) for

Waste Waste collection

Recyclable Waste

Harmful Waste

Other Wastes

Waste recycling station

Central disposal

Compress truck Landfill


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the recyclable materials, the waste recycling through the stations near residential collection points and beneficial reuse after recycling shall be used. (ii) for the toxic and harmful wastes, they shall be collected regularly and treated centralized; and (iii) the remaining waste is shipped to sanitary landfill site.

272. The proposed project will start the demonstration MSW practice in the selected area. The component is to set 2-bin system with one for recyclable items and the other for non recyclable waste in the new area and west area of Tacheng City. For the recyclable materials like paper, glass, plastics and used clothes, the special collection points/stations will be set up in each selected community by using four special collection containers. In order to promote the recycle and reuse, it is suggested that the government departments reduce or subsidies the tax, to promote the recycling of waste resources and social employment, especially for the current private recyclable collection stations in the city. In addition, the government departments need to be standardized from environmental protection, fire and other aspects. The scrap metal recycling business park shall be considered. As for the toxic and harmful waste, they should be collected regularly and treated centralized. The remaining waste compressed in the collection vehicle, then to be shipped to Tacheng City sanitary landfill.

273. The number of garbage containers is calculated using the present garbage output as the base taking into account the garbage classification. The project will purchase 300 garbage classification collection cans and 212 bins. The garbage source sorting site will increased with residents awareness of classification is enhanced gradually.

d. Environmental sanitation equipment

274. Tacheng City is in the Northwest of China, and there are a lot of snows in the winter. To ease sanitation workers labor intensity and improve transport efficiency, snow cleaning truck, snow dump truck and snow throwing machine are to be procured. A total of 3 sets of snow throwing machines will be purchased.

275. At present, the street sweeping area in Tacheng is 7.508×105km2, of which only about 42% of the area is cleaned by machine and the remaining are cleaned manually. The project will purchase 3 units of road sweeper to help on the street cleaning work.

e. Collection and transportation system

276. The garbage is transported by closed garbage bin, garbage barrel and compression garbage truck to the landfill site directly. The improved garbage collection and transport mode eliminates the open collection and transportation mode to minimize the secondary pollution.

277. According to the “Code for planning of urban environmental sanitation facilities”, the garbage collection service radius should not far away 70m. Combined with other cities construction experience and Tacheng actual situation, the project set the garbage box collection point and bin collection point to the service radius 70 ~ 100 meters. By calculating, 32 sets of hook garbage boxes (3m3) and 3 sets of mobile compress garbage boxes (10m3) will be placed in the residential square, business square and industry area. The detailed layout is as follows:

a) 0.24 m3 iron dustbin

278. The project set 300 iron dustbins (0.24 m3). To set 2 bins near the building house unit for recyclable and unrecyclable waste, the property staffs collect garbage to the road beside, then transported to the landfill by the compress truck. The placement of the bins is as followings:


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• To set 102 iron dustbins in Huaxi residential square. • To set 60 iron dustbins in Guangming residential square. • To set 138 iron dustbins in Minhang residential square.

b) 3m3 hook dustbin with cover

• To set 4 hook dustbins with cover in Huaxi residential square. • To set 2 hook dustbins with cover in Guangming residential square. • To set 5 hook dustbins with cover in Minhang residential square. • To set 21 hook dustbins with cover in Huayuan residential square.

c) 10m3 mobile compress garbage box

• To set 1 mobile compress garbage box in Huaxi residential square. • To set 1 mobile compress garbage box in Minhang residential square. • To set 1 mobile compress garbage box in Huayuan residential square.

d) Intelligence garbage room • To set 1 mobile compress garbage box in Minhang residential square. • To set 1 mobile compress garbage box in Huayuan residential square.

f. Public toilets

279. Public toilet should be set according to the city planning and population density. The average set density should be 3 - 5 seat selection per square kilometer in the planning and design. The project will build a total of 9 public toilets including 7 fixed flushing toilet (including tool room), and 2 movable toilets. The locations for the fixed toilets are as followings:

Location Liuhe

square Xinqu park

Huaxi home

Between Youhao and Xibu

Baketu port

ComprehensiveBonded area

Number 1 2 1 1 1 1

g. Dustbin

280. The dustbin should meet the requirements of garbage separation and collection. The dustbin is to be set in the both sides of the road and entrances of public places. The project will place 212 dustbins in short term.

h. Other urban clean and maintenance equipment

281. The project will upgrade the city clean and maintenance equipment fleet including street sweeping, snow cleaning, water spraying, etc. The details are shown in the following table.

No. Name Standard Material Unit quantity remark

Garbage collection system

1 Color steel plate collection room

Color steel

plate one 2

Color steel plate room

2 Mobile compress box 10 m³ one 3 3 Garbage collection bin 3.0m³ iron one 32 4 Garbage collection bin 0.24m³ iron one 300


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5 Behind load compress

truck 8t one 3

6 Behind load compress truck

5t one 2

7 Side hanging type

garbage truck 3t one 3

8 Hook vehicle 10t one 1 Match with

garbage box

9 Hook vehicle 3t one 4 Match with

garbage box

二 Environmental sanitation facilities

1 Wash flushing toilet 87.6m2 brick one 7

Including tool room

2 Environmental protection type toilet

10m2 product one 5

3 Classification dustbin product one 212 Metal

三 Environmental sanitation vehicles

1 Street sweeper one 3

2 Multifunctional snow removing vehicle

Width of 2.2m

one

3

3 Dump truck Load of 30t one 3 4 Sprinkler (and spraying) Load of 10t one 1

E.7 Recommendations

282. The detailed engineering work shall be performed during the preliminary design. The waste of every town should be calculated. The ratio of source classification production and the total waste production should be calculated. The details for setting up the waste bins, garbage barrels, mobile boxes in the residential area, commercial areas, and industrial area shall be provided.


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F. Urban Development Analysis

F.1 Introduction

284. In 1999 the PRC Government launched its Western Region Development Strategy aiming to promote pro-poor economic growth stimulate economic development and raise the living standards of the population. Although growth has accelerated the western region still lags well behind the eastern (coastal) region. The per capita GDP in the western region is only 69.0% of the national average and out of an estimated 35.5 million low-income people in the PRC 55.9% live in the western region.

285. To address these regional disparities in the PRCs 12th Five-Year Plan 2011-2015 (12FYP) the Government places inclusive and balanced regional development as a key strategic priority addressing environmental protection and pollution control issues along with promoting the sustainable development of basic infrastructure.

286. A major focus of the Western Region Development Policy is on improving border port facilities strengthening economic cooperation and trade with neighboring countries improving infrastructure development protecting the environment and encouraging non-state-owned investment. ADB is actively supporting the Government development initiative and has recommended that inter alia the Western Region Development Strategy should focus on accelerating infrastructure development (transportation power and water resources) and environmental management to lay a foundation for development improved cooperation with the Central Asia republics (CARs) and sustainable socioeconomic development.

287. Xinjiang Uygur Autonomous Region (XUAR) one of the poorest and most remote regions in the PRC is the largest and has the longest frontier among all provinces and autonomous regions in the PRC. Located in the northwestern part of the country it has a large ethnic minority population (61% of the total) from 46 ethnic minority groups. It also has one of the highest population growth rates in the PRC (1.8% annually compared to the national average of 0.5%) and is facing serious challenges regarding employment and urbanization. In addition around 97% of the XUARs population lives in an oasis belt that comprises only 8% of the total land area of the Region. Predominantly a desert territory with strong winds and a high evaporation rate water resources are also a critical concern to preserving the fragile ecology of XUAR. Infrastructure facilities and basic services provision are inadequate to support the necessary industrial activity expansion of the local economy and job creation. There is also a need to support environmentally sustainable economic growth in order to improve urban living conditions. Although XUAR is a major transport corridor on the historic Silk Road the Region remains poor. Its per capita annual disposable income of urban households of CNY11432 ($1681) in 2008 was the second lowest among all 31 provinces/autonomous regions/municipalities of the PRC.

288. Given Xingjian's location and abundance in natural resources (including coal petroleum natural gas precious stones gold mica copper coal etc) the Xinjiang Uygur Autonomous Region government (XUARG) focuses its development strategy on its potential role in the Central Asia Regional Economic Cooperation (CAREC) Program.

289. Improvement of the road network and urban infrastructure and the strengthening of environmental protection and management are crucial to achieving and sustaining inclusive growth in Xingjian's west-northern border areas (including Tacheng area). An efficient safe and environmentally sustainable road network together with improved public utility and environmental infrastructure is needed to (i) cope with the increasing demand as a result of cross-border trade growth industrial development and urbanization; and (ii) benefit the poor and ethnic minorities.


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F.2 Urban development at Tacheng Prefecture

F.2.1 Economic development overview

290. Tacheng which is located at the west-northern part of XUAR northern foot of the Tianshan Mountains southern foot of the Tarbagatay Mountains and in the hinterland of Eurasian Continent borders Kazakhstan to the west with a border of 155 km and thus a large potential for the development of cross-border trade. Tacheng city in the northwest border with Kazakhstan Republic adjacent to the East with Emin County South and adjacent Yumin County.

291. On the western frontier of the PRC Tacheng city covers 4356.6km2 the length throughout the north and south is 90km wide 58km 530km to the capital of Urumqi City Center District west of the country type 1 port -- Baktu port straight-line distance of only 12km. The southern marshes swales dotted. The northern mountain ranges rolling hills; the central system wide alluvial plain. Tacheng city is located in Xinjiang Economic Development Zone on the northern slope of the Tianshan mountains be richly endowed by nature agricultural production conditions industrial production scale the western development to inject new vitality into the economic development of Tacheng city.

292. Tacheng City comprises 1 city 2 towns 4 townships 3 Farms Nongjiushi 3 regiment 1 rural communities. Respectively is: Tacheng City Ergong town Qiaxia town Asir Daur Ethnic Township Abudula Go Kara harbach Xiang Yemen Le Xiang Bo Zi Duck Ranch exactly wo Yijiayilao Ji ranch 162 regiment 163 regiment 164 regiment Qibaerji Diego community.

293. In 2013 Tacheng city resident population is 170441 of which the local population 153715 the population of Bingtuan 16726 the temporary resident population8735. Tacheng City residing in the Han Kazak Uygur Hui Daur and other 25 ethnic groups including ethnic minorities accounted for 36% of the total population. It is still a low-income remote region of the PRC suffering from poor infrastructure and a very harsh climate with sub-zero temperatures between November and March each year.

F.2.2 Trans Europe-Asia trade route

294. Xingjian's foreign trade has grown rapidly especially since the CARs became independent in 1992. It has increased more than eleven fold from Trans Europe-Asia trade route (an annual average growth rate of 41%). Baktu port is Xingjian's more larger trading partner. To maximize strong growth potential and raise the living standard of the people in particular the ethnic minorities the XUARG in its 12FYP accorded high priority to sustainable economic development particularly in its northern border areas with tourism potential through construction and upgrading of the infrastructure while at the same time protecting the environment.

295. In 2013 the China National government put forward the Silk Road Economic Belt strategic conception. Joint construction of the "Silk Road Economic Belt" is a benefit of the peoples of the big business. Silk Road economy with a total population of 3000000000 the market scale and potential of market large international cooperation in the field of trade and investment potential is huge. The Silk Road Economic Belt is a new regional economic development based on the concept of the ancient Silk Road on the East led by the Asia Pacific Economic Circle the West has developed European economic circle which is considered to be the "big economic corridor the longest in the world with the most development potential".


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296. The government of the XUARG put forward to build Xinjiang into an important economic belt "traffic hub of the silk road". Tacheng is the western city of Xinjiang is to be known to all the world's a century trading port in modern times because the Russian built Tuxi railway a Agus junction station from Tacheng in the East and West and flat smooth flow of goods through Tacheng. Tacheng has become an important trade route connecting Central Asia West Asia North China transit. Take the 270km from Baktu port toward the northwest is access to the Kazakhstan East Kazakhstan state railway artery Aya Cuse train station. The Ayatollah coos to the northwest is the capital of Kazakhstan Astana and then to the northwest the Novosibirsk is Russia's Moscow to the southwest Belarus is Minsk and then to the Baltic Sea. This is the Silk Road Economic Belt of the northern line.

297. Tacheng is a transportation hub of the northwest entrance. Baktu port is the national first class port 12km port of downtown to Tacheng its contact with Russia Central Asia and radiation and enter the European market through third countries. Karamay - Tacheng expressway is scheduled to open in 2014 July. Karamay - Tacheng joint venture railways in 2014 April will start the construction after completion of Unicom and Kazakhstan railway it will act as an important part of the Third Eurasian Continental Bridge.

298. Chinese government attaches great importance to rebuild the “Economic Development Area along Silk Road”, On September 8, 2013, President Xi Jinping give a important speech in Kazakhstan: in order to make the economic ties between the European and Asian countries more closely, mutual cooperation more deeply, more broad development space, Chinese government can use the innovation mode of cooperation, to jointly build the "Silk Road Economic Belt", to point to an area, from the line to the sheet, and gradually formed the regional cooperation. Get through from the Pacific to the Baltic Sea transportation channels, and gradually form connecting East and West Asia, South Asia transportation network. The construction of this project will greatly promote the economic development and environmental protection along the Silk Road

F.2.3 Border trade and Baktu port

299. ADB has been actively supporting the PRC development initiative and the Western Region Development Strategy both of which focus on the provision of infrastructure and environmental management to lay a foundation for development. It has also been supporting the promotion of regional trade through the CAREC Program since the late 1990s and is working with other development partners to advance cross-border cooperation between the CARs.

300. In recent years with the accession of Kazakhstan to speed up the process of the WTO made some adjustments in the policy of opening to the outside world and regional economic development in Baktu port trade restrictions gradually let go. Baktu port act as one of the five major ports Chinese docking with Kazakhstan play a very important role in our foreign trade development.

301. Chinese has become one of Kazakhstan's largest trade partners the first half of 2013 Sino Kazakhstan bilateral trade amounted to $13570000000 in ha of total foreign trade accounted for 17.33% in addition to the mineral resources both sides to cooperate in the manufacturing industry. Tacheng city Baktu port for China in the one of the important port of Kazakhstan the Kazakh trade and economic cooperation is faced with hitherto unknown opportunities but also lay a solid foundation for the fast development in tower city.


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F.2.4 Regional transport planning and development

302. It is financing the ongoing the Xinjiang Regional Road Development Project (KorlaKuqa Section) Xinjiang Municipal Infrastructure and Environmental Improvement Project and Xinjiang Urban Transport and Environmental Improvement Project. The second project includes components in Alashankou Land Port Kanas Scenic Region and Yining City all located near the northern and north-western borders of XUAR; it is aimed at strengthening of cross-border trade tourism development and economic growth to raise the living standards while protecting the environment through the provision of roads water supply wastewater treatment heating solid waste management and forestation. The third project includes components in the cities of Altay Changji Hami Kuitun and Turpan that seek to improve urban living conditions and public health and protect the environment by upgrading and extending roads and sanitation infrastructure. These projects fully support XUAR development objectives and the CAREC transport and cross-border trade strategy.

303. In 2014 the CPC Central Committee issued the "National model town planning (2014-2020)" planning to Tacheng City listed as one of 6 "national key construction land border town" of Central Asia and West Asia and is one of the developed countries in Europe the nearest port town. This marks the Tacheng border town planning has raised to the national level for the strengthening of municipal infrastructure and public service facilities construction as the key one of Tacheng is to speed up the development of major strategic opportunities.

304. This planning introduced will directly promote the construction of Tacheng city land border towns perfect and Central Asia and Europe's border trade financial services transportation hub to build Tacheng into the international trade nodes and processing base. The rapid development of Tacheng border trade is the inevitable requirement of Tacheng City Road water supply and drainage heating and other infrastructure improvement in order to meet the fast flow of border trade logistics development brings to the infrastructure needs.

F.2.5 Recourses and constrains for the economic development

305. The poor existing infrastructure in the project areas is unable to meet the increasing demands from rapid urbanization. Existing roads were often inadequately designed and poorly constructed and their surfaces have become severely damaged. Furthermore the road network is incomplete which impedes connectivity and hinders economic and tourism development. The current water supply capacity cannot meet the local demand and the pipe network coverage is low. Most of the areas are without sewer and the wastewater treatment capacity is low. Garbage disposal and collection is not properly managed with few facilities and most of the landfills are merely unregulated simple dumping grounds exposed to windy conditions. The ecological environment is fragile and ecological improvements are needed to restrict desertification protect precious surface and subsurface water resources as well as wildlife lessen the impact of climatic extremes and improve public amenities. Investment needs far exceed the budgets of the local governments that are responsible for capital investment in urban and environmental infrastructure and the operation and maintenance of urban services. 306. The Project is designed to alleviate infrastructure constraints address environmental concerns and promote sustainable economic growth in Tacheng area and is consistent with the PRCs development priorities for the Western Region. It will also support tourism development to promote economic growth and reduce poverty while protecting the environment. The provision of improved or new infrastructure facilities in Tacheng and Baktu port will support the development of these towns into larger land ports with environmentally sustainable infrastructure services that will facilitate the rapidly growing cross-border trade and tourism


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create favorable conditions for trade-related investment and employment and expedite development of the processing and services industries.

307. The Project will help raise the efficiency in port operations improve the conditions for infrastructure and public amenities in the project area increase employment and reduce the incidence of poverty. It will support environmentally sustainable economic growth and poverty reduction in XUAR and the promotion of the PRCs national development and CAREC strategy by improving urban infrastructure and environmental protection in Tacheng area. It is supportive of ADB's Country Strategy for the PRC to make markets work more efficiently through infrastructure development and to promote environmental sustainability and also of its CAREC strategy. It is designed in line with XUARs 12FYP to improve local living condition and development of tourism as well as facilitation of regional economic cooperation. These programs will undoubtedly also feature strongly in the 13 FYP (2016 to 2020) currently in the early stages of preparation.

F.3 Urban Development Master Plan

F.3.1 Tacheng City

308. Tacheng area is the east-west traffic artery since ancient times. The 12 FYP of Tacheng clearly pointed out that the city will be built the front position in Central Asia and Russia's exports of agricultural products production and processing base import resources deep processing base and the opening to the West. To create the Tacheng Basin Economic Zone and the East Kazakhstan state economic belt based economic and trade development as a link Baktu port as the combination point tarbagatay economic circle the city will be built the tower of radiation in Tacheng basin and East Kazakhstan regional central city.

309. The Tacheng put forward priority to urban road water supply and drainage heating centralized treatment of sewage treatment channel construction projects around the tower city during the in 12 FYP period the advantages of resources to highlight the construction of border trade market in downtown port. 12 FYP also proposed to tower city built into a profound cultural foundation cultural tourism industry agriculture and animal husbandry agricultural (livestock) resources products deep processing the equipment manufacturing industry the modern logistics as the characteristics of the saving environment friendly with significant ethnic amorous feelings of the regional center city.

310. Current situation of Tacheng: including 222 Highway 221 highway through the city area with the Tacheng Municipal Airport which is an important channel to Kazakhstan in North Xinjiang. is It is only 100km from Tacheng city to Ur-Garr airport and about 200km away to Alata Pass Railway Station also as the second of the Eurasian Continental Bridge and about 300km to Kazakh territory of Ayatollah coos train station. In the planning of Karamay, there are Tacheng railway and G3015 from Karamay to Tacheng. When the highways is constructed the traffic is more convenient and has a strong internal induced and outputting the advantage.

311. Tacheng City resides in the Han Kazak Uygur Hui Daur and other 25 ethnic groups including ethnic minorities accounted for 36% of the total population. Other smaller minority groups are Russian Tatar Tajik Uzbek.

312. The outside of the city residents a large minority of people involved in the project construction the urban roads water supply and drainage heating pipe sanitation facilities river training facilities and roadway construction project construction in the urban construction foundation mainly around the periphery of the city road environment renovation.


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313. Constantly improve the patency of the road greening area increase along the water sewage minority residents demand and heating facilities will improve their living environment the infrastructure construction and machinery equipment purchase will create a lot of job opportunities which will greatly improve the living conditions of ethnic minorities.

314. Under the central government and Xinjiang government support, the border trade in Tacheng has grown steadily and more investments have been moved in and more enterprises have been established. As of May of 2014, there are 37 large industrial enterprises and 361 small businesses. A total investment of 61,200 million CHY has been poured in, of which large enterprises, such as Xiamen Benma industrial group, Hubei Nuanshan Investment Limited, etc. have moved to Liaota New District, aiming to boost the border trade activities. In 2013, the import and export goods at Baktu reached 98,000 tons, the entry-exit personnel reached 85,000 people, vehicles 10,000 vehicles, with the increase rate of 75%, 66%, and 73%, respectively. It is estimated that by 2025, the numbers of the enterprises will increase by 200 and the population will reach 165,000 in Liaota New District.

F.3.2 Emin County

315. Emin county is located in the north of the Tianshan Mountains northwestern border China Ta'er basin northwest of the XUAR the northwest edge of Junggar basin northeast of the county Taer basin; about 480km to Urumqi City about 57km away northwest to Tacheng city about 23km away from Tacheng Airport 72 kilometers away from Baktu port bordering with Kazakhstan country in favor of Emin County strengthen in-depth cooperation in energy and resources complementary with neighboring countries These provide convenient conditions for the development of the Emin county.

316. Emin county is located in the northwest of Tacheng area the Northwest tarbagatay mountains bordering the industry and the Kazakhstan east to the Poplar River as the boundary and Hoboksar Mongol Autonomous County adjacent to the south to Urclick Mountains Woxue River and connected with Tuoli county West to the Xibe River and adjacent to Tacheng City. The land area of the county is 9531.9km2The most long distance 123km the longest distance 87km accounting for 0.6% of the total area of Xinjiang. Among them the mountain is 5069.43 km2 the total area of the county of plain 4462.47km2 53.18%; total area of the county accounted for 46.82%.

317. There is the population of 144700 in Emin County which composed of 22 nationalities mainly includes Kazakhstan Han Uygur Kazak Mongolia Hui etc. There are three provincial highway, the 221 West to Tacheng South to Tuoli County; the 318 provincial highway east to Hebukesaier County; the 201 provincial highway east to the Karamay city.

318. Emin County 12 FYP clearly marked the direction of infrastructure construction: the new land used mainly for industrial land and green future development of Emin County public facilities land to residential land replacement.

319. To give priority to the Emin River south development focus on the development of the industrial warehousing and transportation facilities land; the eastward expansion of city is construction land increasing land living; the northern part of the county to the transformation of the old city; the West County as the agricultural division nine development spare.


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F.3.3 Yumin County

320. Yumin county is located in the western margin of the Junggar basin Northwestern the XUAR Ta'er basin. The Tuoli County adjacent to Emin county and northeast North adjacent to Tacheng City adjacent to the west the southwest and with Kazakhstan Republic border the border line of 170km long about 425 km from the county seat of halabuh town to Urumqi city. About 73km North from Tacheng area administrative office about 90km to the county seat from a the national level Baktu port 180km to Alashankou port known as the Second Eurasian Continental Bridge in Golden Triangle area.

321. Its jurisdiction includes 1 town 5 townships for Yumin County: Halabula Town Halabulaxiang Xin Di Xiang Aleteng also Mule Xiang Ji also Ke Xiang Jiang He xiang. County People's Government is located in the town of Halabula entire county total population 48147.

322. City master plan proposed to increase the intensity of urban construction Yumin County Ecological livable in the 12 FYP period. In order to build an ecological city positioning strengthening the city construction planning to start the construction of eco industrial park landscaping lighting green town most of the roads improve water supply and drainage heating garbage harmless treatment facilities the implementation of the natural gas pipeline network gas station and the city bus line project to create "sightseeing leisure vacation ecological and livable" town.

F.3.4 Tuoli County

323. Tuoli county is located in the northwest of XUAR on the west side of the southern margin of Jungur basin a vast territory Ta'er basin north of Emin County south of Wusu city Jinghe Bole City East bordering with Karamay Hoboksar Mongol Autonomous County west with Yumin County Kazakhstan to the southwest the border line of about 58km. Xinjiang north-south width 159.3km long 221.6km with total area of 21300km2. About 512km (distance of road) to Urumqi City from about 703km to the Yili Autonomous Prefecture Yining city about 123km to Tacheng city.

324. The main road in city includes two province roads: 221 provincial highway through the city; 318 provincial highway from the north of the city. Tuoli County District within the existing road length is about 25.98km urban road network density is 1.93km/km2 urban residents have road area 11.13m2 per person

325. Present situation of urban road network layout is messy presented the "grid" shaped road network trend but in different regions because of their different development level the degree of perfection of the function there are "broken line" or "dendrite" network form.

326. The planning of Tuoli city road system is divided into three levels: the outer ring road the roads and slip roads. The roads are divided into trunk road secondary road. The overall structure of road network is: "six vertical and four horizontal ring road" the overall structure of the system of grid and loop.

F.4 Urban Road Network Analysis

F.4.1 Tacheng


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327. Tacheng City a total of 2: the domestic provincial highway 221 line and 222 line are to contact the outside world Tacheng city trunk highway. Highway 221: the road from Karamay tower from southeast to north fork to Baktu port passing through Tuoli Emin Tacheng three Tacheng city in full length 296Km 57km pavement of three national standards Tacheng to Emin section of a road. Highway 222: Tacheng to Yu Min full-length 68km the territory of Tacheng a total of 35km pavement of three national standards.

328. Present situation of urban road network for the main structure: the main by the tarbagatay Road Jian Xin Jie cultural road and other roads north-south traffic organization. By Xinhua Street Yining Road Jiefang Road Guangming Road Wen Qinlu organization left things traffic link. A total of urban road 56 with a total length of about 85.8km urban roads with a total length of 25.98km 3.75km/km2 the density of road network road network density of 1.14 km/km2 road area per capita 20.14m2.

329. According to the "Tacheng city master plan (2012 - 2030)" city form of the future Tacheng city will form a "one body with two wings the overall structure of the six road" the overall planning of road network for composite. Among them: "rings" refers to: a loop two 3rd Ring Rd four ring road ring road. "The six road" means: Avenue harmony and Peace Avenue harmony and Peace Avenue. In order to meet the different needs of the development of the partition combined by grid hybrid the new city and old city radiation type and the Xicheng District phase to the main east-west road Unicom as the link the formation of the road network structure composite.

330. Four ring roads the proposed two loops 3rd Ring Rd four ring road ring road as the "rings" plays an important role in the traffic road network in the city at the same time as the dredging of the main road give priority to meet the traffic needs. Good road peace road and the road to the "three road six road" as the living road both motorized and non motorized traffic especially traffic need to meet life.

331. Tacheng city is the center of politics economy culture information in Tacheng area. The international border trade and export-oriented industry cultural tourism oriented diversified leisure and tourism city livable port.

F.4.2 Emin

332. Emin County status of external traffic is mainly road transport mode through the city and provincial highway S221-S201. City road is formed "trunk road network structure of three vertical and three horizontal". Among them: "three horizontal": the summer road friendship road Yemen Le Road. The "three vertical": Xinhua Road -- Army Road tower frontal Road Yingbin road.

333. Provincial Highway S221-S201 through the county brought great influence to the county environmental and internal traffic. Urban road system is not perfect the function is not clear enough influence the normal function of the road. City of the lack of public parking along the street park vehicles parking phenomenon is serious. Seriously affect the traffic of county town. City road system is not perfect the narrow road the traffic is difficult to solve the traffic problems should not.

334. In the city overall planning of county roads within the current will form a "trunk road network structure of the four vertical cross - link the five". "Four horizontal": the summer road friendship road No. 2 Road Yemen Le Road planning. The "five vertical": Tower Road Xinhua Road Junken road -- the amount Yingbin Road No. 5 road planning of No. 13 road. "One ring": the outer loop.


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335. Emin county master plan (2012-2030 years) pointed out the development direction of the new county seat: mainly for industrial land and green future development of Emin County public facilities land to residential land replacement. Emin county land development ideas for "south north West East preparation".

336. To give priority to the Emin River south development focus on the development of the industrial warehousing and transportation facilities land; the eastward expansion of city construction land increasing land living; the northern part of the county to the transformation of the old city; the West County as the agricultural division nine development spare.

337. Emin county economic development is relatively fast in the Tacheng area the county of minority poverty rate is low the population and the motor vehicle increases relatively fast. Therefore the demand of people logistics of the road is also increasing will produce great pressure on the city road. Therefore, the county road extension to be imperative.

F.4.3 Yumin

338. By the end of 2013 the county has15 major roads with a total length of about 23.7km. The built-up area has been basically formed a square grid road network pattern five longitudinal and three transverse. County road network mainly exist in the following problems: (1) network grading is not reasonable function is not clear; (2) the longitudinal road links is not smooth the lack of penetration; (3) the provincial traffic pressure of urban transit traffic on the city there are certain interference and there is an upward trend; (4) part of the road section combination is not reasonable;

339. County Road Network Planning: fully combined with the present situation of road and building the center city texture time frame main frame "road three vertical and five horizontal" urban road network grid in the "three vertical and five horizontal and one ring" of the urban road branch system to maintain the status quo Jie Xiang try to keep building and the original spatial relations and to reduce the amount of demolition. Center city within the road is connected with the outer ring road the East Outer Ring Road and the city of S317 line and city on the north side of the S222 line strengthen the city's transport links and try to eliminate the transit vehicles into the city to ensure that the internal road center city traffic capacity. Planning of urban road and traffic facilities land for 179.98 hectares the total construction land 14.51% per capita 19.99m2/.

F.4.4 Tuoli

340. Tuoli County is minority inhabit a region as the main body in Kazak. The total population of 93098 people of which 66947 ethnic minority people (in 64027) the county accounted for 71.91% of the total population composed of Han Uygur Kazak Hui and other 28 ethnic groups.

341. Highway 221 north to south of the city traffic on both sides to bear and distribution of a large number of public service facilities the traffic situation is confusion. The outer loop is built largely can resolve the status of the residents along the road travel inconvenience shorten their travel time.

342. Road construction includes planting and irrigation of various trees shrubs which will further improve the surrounding residents living environment. The smooth pavement can effectively reduce dust and reduce the noise of traffic facilities with perfect can make the vehicle quickly safely and effectively improve the residents along the road safety travel environment;


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road greening not only can effectively improve the traffic environment but also to beautify the city reduce noise improve the environment.

343. Tuoli County is located in the south of Taer basin located in Eurasia for Inner Asia and Europe is an important node on the channel. Tuoli County is the four northern counties of Tacheng prefecture (city) east of Junggar basin is an important node traffic portal with the development of Tacheng city group and the Northern Slope Economic Zone of Tianshan Mountain area the advantage is clear.

344. Vast territory abundant land resources have become the base of high-quality animal products potential. The mineral resources and mining condition is good; the wind resource is rich there are two Xinjiang nine major wind zones development and utilization of a broad prospect.

345. Tuoli County has initially formed the industrial structure including the green high quality animal products processing coal energy mineral development and processing of metal materials. As the western region resources in the county Tuoli County will obtain the bigger development space in the eastern industrial transfer.

346. Put forward the general planning of the county seat Tuoli County in the highway railway (forward) as the leading build harmonious development of multi way for the modernization of the regional transportation system; actively participate in the Xinjiang area transit system strengthen the construction of fast channel and transport hub surrounding the city strengthen the entrance channel and the external transport hub construction establishment of multi mode transportation system; and shift through traffic trunk highway 221 highway 318 to alleviate traffic pressure reduce the occurrence of traffic accidents avoid the lives and property of residents along the loss.

F.5 Traffic Forecast

F.5.1 Tacheng City 347. The standard traffic forecast analysis method adopted in PRC is used for projecting the traffic volume on the proposed urban roads. The method is based on the traffic counts on the existing roads projected GDP growth estimated elasticity coefficient induced and diverted traffic etc. to project the future traffic. The method is also referred as four-stage analysis method. The major steps for the traffic analysis and forecast are summarized in the followings:

a. Traffic Survey 348. The traffic data surveys on the exiting urban roads were conducted by the local transport agency for each subproject site. The survey traffic data will be used as the baseline value for traffic analysis and forecast.

b. Elasticity Coefficient 349. The elasticity coefficient reflects the correlation between the growth of traffic volume and the GDP. The growth rate of the traffic volumes is estimated by the elasticity coefficients method in which the traffic growth is estimated by using the correlation between the traffic and economic growth. Based on the domestic and overseas experience and the historical data the elasticity coefficient was determined for each of the subproject.

c. GDP Growth Projection


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350. Based on the historical data and the economic development targets set in the urban development master plan the GDP growth projection was estimated for each subproject city/town/district which will be used for the traffic forecast.

d. Traffic Growth Rate 351. The traffic growth rate for the subproject roads is estimated using the elasticity coefficient and the projected GDP growth for each subproject. The traffic growth rates were estimated at five (5) year intervals for the entire design life of the proposed roads.

e. Induced and Diverted Traffic 352. Due to the construction of new roads and the rehabilitation of the existing roads more traffic will be generated or diverted from other types of transportation such as railroad traffic to use the new and improved urban road system. The induced and diverted traffic is considered in the traffic forecast analysis.

f. Traffic Distribution and Traffic Forecast 353. The overall increased traffic including the induced and diverted traffic is distributed into the subproject urban roads based on their road classifications. The projected traffic volume on the subproject urban roads is used for the road engineering design and determination of the road cross sections. The detailed traffic analysis and forecast for each subproject is presented in the attached annexes.

354. For Tacheng in the true understanding and bright road Guangming Road and culture Road Guangming Road and Yining Road cultural road and highway 221 and highway 221 and Tabalu five intersections were investigated in travel mode according to the survey data analysis the current residents of the city of Tacheng summer travel mode mainly for taxis bicycles and motorcycles all kinds of travel the proportion of table:

Table 3F. 1 Travel Modes in Tacheng

Travel mode Walking Bus Heavy truck

Car Motorcycle Taxi

2013 6% 21% 10% 30% 18% 15%

Table 3F. 2 Traffic Forecast for Tacheng Roads

Road component

PCU AADT

2019 2019 Passenger

car Bus Truck Motorcycle others 2024 2029 2034 2039

1 /San Ring Street

6648 6647 2659 1861 798 864 465 9568 12488 15409 18329

2 /Wu Ring Street

5492 5492 2197 1538 659 714 384 8956 12420 15883 19347


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3 Gymnasium West Street

4047 4047 1619 1133 486 526 283 6854 9661 12467 15274

4 /Chanye Street 1

3757 3757 1503 1052 451 488 263 6636 9516 12395 15274

5 /Chanye south road 3

5202 5202 2081 1457 624 676 364 8484 11766 15047 18329

6 / Ring Road 2

4436 4436 1774 1242 532 577 311 8065 11695 15324 18953

7 /Tian Yuan South Road

3592 3592 1437 1006 431 467 251 6659 9725 12792 15858

8 /Xixing South Road

2535 2535 1014 710 304 330 177 4914 7293 9672 12051

9 /Heshan South Road

2324 2325 930 651 279 302 163 4642 6959 9275 11592

10 /Ring Road 4

3169 3169 1268 887 380 412 222 5923 8677 11430 14184

11 /Chanye Street 4

2746 2746 1098 769 330 357 192 5187 7629 10070 12511

12 /Hemei Road

3757 3757 1503 1052 451 488 263 6636 9516 12395 15274

13 /hemu South Road

2324 2325 930 651 279 302 163 4516 6707 8898 11089

F.5.2 Emin County

355. In March 7 2014 we conducted a live 24 hour traffic survey and travel to the residents along the road in Emin County Er Xia Te Lu and Taelu intersection the summer road and Tacheng Road intersection the Xia Te Lu and planning five road cultural road and road 4 at the intersection of the poll. In 2013 August the summer special driveways are arranged on both sides of the two times of heating pipe network leading to the road is rugged difficult road fewer motor vehicles. At present the old city resident trip mode mainly taxi private car and bus travel modes see table:

Table 3F. 3 Emin Travel Modes

Travel mode Walking Bus Heavy truck Car Motorcycle Taxi 2014 8 10 6 25 17 34

Table 3F. 4 Emin Traffic Forecast

Traffic Forecast for Yrmin County Project Road

Road component

PCU AADT

2019 2019 Passenger


1 /Aerxiate Road 2986 3732 2538 75 373 336 411 7931 12129 16328 20526

2 /Wenhua Road 6913 6913 3664 207 830 1175 1037 9657 12401 15144 17888

3 /Guihua Road 5

6357 6358 3369 191 763 1081 954 8877 11397 13916 16436


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4 /Guihua Road 7

3819 3819 2024 115 458 649 573 5332 6844 8357 9869

5 /Guihua Road 9

6193 6193 3282 186 743 1053 929 8648 11104 13559 16014

F.5.3 Yumin County

356. In October 13 2013 the traffic investigation worked in safflower road and Baerluke Road, Yumin County Long Zhen Lu and Baerlukelu intersection tulip road and road intersection Costas on-site 24 hours the traffic investigation and to the residents along the road to the polls. At present the old city resident trip mode mainly for walking and motorcycle travel modes in table:

Table 3F. 5 Yumin Travel Modes

Travel mode Walking Bus Heavy truck Car Motorcycle Taxi 2013 11 7 6 29 9 38

Table 3F. 6 Yumin Traffic Forecast

Traffic Forecast for Yumin County Project Road

Road component

PCU AADT

2019 2019 Passenger


1 /Longzhen Road

4396 4397 2594 88 528 703 484 9540 14682 19825 24967

2 /Honghua Road

2204 2203 1300 44 264 353 242 4793 7383 9972 12562

3 /Yujinxiang Road

3400 3400 2006 68 408 544 374 7375 11350 15325 19300

4 /Guihua Road 2

5014 5014 1604 953 602 1103 752 8921 12828 16735 20642

5 /Guihua Road 1

4941 4941 1581 939 593 1087 741 8812 12682 16553 20423

6 /Donghuan Road

3280 3280 1050 623 394 722 491 6157 9035 11912 14789


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F.5.4 Tuoli County

357. In March 10 2014 the traffic survey working in the site Kapuqike road and Mayile Road Tuanjie road and Wenhua road intersection. At present Tuoli County residents travel mode mainly includes walking and motorcycle travel modes in following table:

Table 3F. 7 Tuoli Travel Modes

Travel mode Walking Bus Heavy truck

Car Motorcycle Taxi

2014 15 16 5 25 16 23

Table 3F. 8 Tuoli Traffic Forecast

Traffic Forecast for Tuoli County Project Road

1 Road component

PCU AADT

2019 2019 Passenger


1 /Waihuan Road

16014 5300 3074 318 1378 371 159 8664 12029 15393 18757

F.6 Conclusions and Recommendations

358. The infrastructure construction of Tacheng Emin Tuoli Yumin four sub-projects has been imminent has affected the region's social and economic development the city infrastructure is a pressing matter of the moment. So the construction of the project can obtain obvious economic benefits social benefits and environmental benefits.


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G. Water Supply and Sanitary Sewer

359. Tacheng and Emin subjects have water supply and sanitary sewer pipe networks in conjunction with the urban road construction. Tuoli subproject does not have any utility pipeline work along the proposed road since the road is outside of the urban area. For Yumin subproject, the utility pipelines have been or will be constructed using domestic funding.

G.1 Tacheng Water Supply and Sanitary Sewer

G.1.1 Introduction

360. The proposed component will build 47.6 km water distribution pipeline and 48.8 km sanitary sewer pipeline for Liaota New District. There are 3 existing water supply plants (WSP) in Tacheng City. The water resources of all 3 WSPs are groundwater. The capacity of No.1 WSP was 550 m3/d. The capacity of No.2 WSP was 3000 m3/d. The facilities in No.1 and No.2 WSPs were too old to supply qualified drinking water to local residents. The sites locate in the central urban area. Both No.1 and No.2 WSPs were closed in 2000. No.3 WSP was built in 1993. The site locates 675 meters north from the cross of Huayuan Road and Wenhua Road. The current water supply capacity is 15,000 m3/d. The raw water is pumped from 4 wells (3 for regular use and 1 for spare). The water supply capacity of each well is about 200-250 m3/h. The total daily supply capacity is about 15,000 m3/d. In addition, there are 87 wells from private water supplies from companies and enterprises. The maximum daily water supply amount is about 10,000 m3/d, in which the water is not treated and disinfected for utilization. The private water supply wells will continue to supply water in the short term, but for long term the wells will be shut down. The water supply amount will be included into municipal water supply plants.

361. The water supply pipeline network will provide water to local residents and some industrial users. Most industrial users use private water supply wells. The water supply pipeline covers 61% of the urban area. The total length of water supply pipe with diameter larger than DN75 is about 165 km with the larger water main of about 35 km. The average depth of buried pipe is about 1.8 m.

362. The existing WWTP locates at the site of No. 5 Unit at Tougong Village in Ergong Town, Tacheng city. The construction of the existing WWTP began in 2002 and the operation started in 2004. The plant occupies about 75 mu land, and the design treatment capacity is 20,000 m3/d by 2015 and 40,000 m3/d by 2025. The current actual treatment amount is 16,000 m3/d. The main biological treatment process is Orbal Oxidization Ditch. The discharge standard is class II as defined by “Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant” (GB18918-2002). The plant includes preliminary treatment workshop, car garage, office building, sludge dewatering room, chlorine dosage room, power distribution room and boiler room. The dewatered sludge is disposed in the landfill.

363. The wastewater collection pipeline construction started in 2013 in Liaota New District, and the total length of existing wastewater collection pipeline is about 2.0 km. The diameter of the main wastewater collection pipe is DN300. This pipe only collects the wastewater drained by the enterprises along the road.

G.1.2 Demand and supply analysis

364. According to water supply and drainage plan of Tacheng City, the projected population will be 61,700 by 2015 and 196,000 by 2030. The planned construction land area will be 10.02 km2 by 2015 and 27.6 km2 by 2030. The per capital land use is 162.5 m2 by 2015 and 140.8


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m2 by 2030. The population will determine the drinking water demand of local residents. The construction site area will determine the industrial water demand.

365. The proposed WSP will supply water to Liaota New District; the industrial water demand amount rate is 10,000 m3 per square kilometers. Tacheng city is a class 3 city with population from 200,000 to 500,000 and a service coefficient of 0.3 shall be used. The water demand is:

Water demand in short term (2015): 0.3×10.02＝3×104m³/d

Water demand in long term (2030): 0.3×27.6＝8.28×104m³/d

366. The current water supply capacity is 25,000 m3/d, which includes 15,000 m3/d from No.3 WSP and 15,000 m3/d from the individual wells, and the water demands as well as the water supply deficiencies are shown in Table 3G.1.

Table 3G.1 Water Demand and Supply

Item 2015 2030

Forecasted water demand (1000 m3/d)

75 4.5 (old urban area)

14.59 6.59 (old urban area)

3 (new urban area and

western urban area) 8 (new urban area and

western urban area) Existing water supply capacity (1000 m3/d)

1.5 1.5

Required additional water capacity (1000 m3/d)

-6.0 -13.09

367. The table shows that the required additional water capacity is 60,000 m3/d by 2015 and 130,900 m3/d by 2030. In the short term, the existing No.3 WSP has the capacity of 15,000 m3/d, the planned No. 4 WSP will provide 13,000 m3 water per day, and the planned No.5 WSP will supply 40,000 m3/d, in which the water will be provided from the water transmission project from Abudula River. The left capacity will be provided by self-developed wells. Table 3G.2 shows the water balance for the short term.

Table 3G.2 Water balance in short term Unit: 1000 m³/d

Name N0. 3 WSP No. 4 WSP No. 5 WSP Self-developed wells Balance Capacity 15 13 40 10 +3 Demand 75

368. In long term, the existing No.3 WSP will keep the capacity of 15,000 m3/d, the planned No. 4 WSP will provide 13,000 m3 water per day, and No. 5 WSP will expand the supply capacity to 120,000 m3/d. All individual wells will be shut down. Table G3 shows the water balance for the long term.

Table 3G.3 Water balance in long term Unit: 1000 m³/d

Name N0. 3 WSP No. 4 WSP No. 5 WSP Self-developed wells Balance Capacity 15 13 120 0 +21 Demand 145.9


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G.1.3 Water Supply

a. Engineering design

(i) Layout

369. According to the overall city’s planning, terrain conditions, the user’s distribution and future development, the piping network can be determined. The layout of water distribution pipeline depends on the water demand by the residents, industry and other users. The layout will also consider district and block management. The pipeline will be built together with the new roads.

(ii) Hourly and Daily Flow Variation Ratio

370. According to “Code for Design of Outdoor Water Supply Engineering” (GB50013-2006), the hourly flow variation ratio is 1.2-1.6. The daily flow variation ratio is 1.1-1.5. According to actual conditions in Tacheng and data of the cities in Xinjiang Province, the hourly flow variation ratio is taken as 1.5. The hourly flow is 45,000 m3/d. The daily flow variation ratio is 1.2. The daily flow is 36,000 m3/d.

(iii) Pipe diameter

371. The approach of the water balance calculation to the existing water distribution network and the planned network is adopted for pipe network design. The Hazen -William Formula is used to calculate the pipe pressure:

87.4852.1

852.17.10

DC

Qi

×=

Where:

i---section of water head loss along tubes, m/m;

Q- pipe flow, m3/s;

D –pipe’s diameters, m;

C –pipe’s friction coefficient

(iv) Pressure

372. The design pressure of the water distribution pipe is 2.4 MPa. The limit design pressure is 1 MPa in the worst assumed case. The pipe network pressure calculation result drawings are presented in the FSR.

b. Construction Quantity

373. The total length of water distribution pipeline is about 48km. Table 3G.4 shows the diameter, material and length of the water distribution pipeline.

Table 3G.4 Pipe Amount of Water Distribution Pipeline

No. Diameter (mm) Material Length (m)


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1.1 DN200 PE 8,711

1.2 DN250 PE 1,246

1.3 DN300 PE 16,660

1.4 DN350 PE 2,109

1.5 DN400 PE 8,054

1.6 DN500 DIP 3,435

1.7 DN600 DIP 5,116

1.8 DN800 DIP 1,416

1.9 DN1000 DIP 914

Total 47,661

G.1.4 Sanitary Sewer Pipeline


(i) Layout

374. The wastewater is collected by gravity. The wastewater of the new district and western urban area will flow to Chengnan WWTP. According to the overall city’s planning, terrain conditions, the user’s distribution and future development, the sanitary sewer pipe network can be determined.

(ii) Pipe diameter

375. The pipe diameter is determined by the capacity of wastewater and pipe material. The design capacity is the long term projected flow of 110,000m3/d, and the pipe can be determined by using Manning Equation,

b. Construction quantity

376. The total length of wastewater collection pipeline is about 48.8km. Table 3G.5 shows the diameter, material and length of the wastewater collection pipeline.

Table 3G.5 Pipe Amount of Wastewater Collection Pipeline


2.1 DN300 HDPE 10,415

2.2 DN400 HDPE 16,010

2.3 DN500 RC 10,361

2.4 DN600 RC 3,555

2.5 DN700 RC 4,250

2.6 DN800 RC 4,200

Total 48,791


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G.2 Emin County Water Supply and Sanitary Sewer

G.2.1 Introduction

377. The water supply system in Emin County is divided into Emin County Part and Nongjiusi Part. The Emin County Water Supply Company is responsible for water supply in the northern urban area from Tae Road, and the Nongjiusi Water Supply Company supplies water for the western urban area from Tae Road. The Emin County Water Supply Company has 3 WSPs. The No.1 WSP locates at west to Yingbin Road and north to Youhao Road. The No. 1 WSP has 1 water well and the water supply capacity is 1500 m3/d. The No. 1 WSP had no disinfection facility and has been out of the service. The No. 2 WSP locates at the north to Wenhua Road and east to Yingbin Road. The No. 2 WSP has 2 water wells and 1 water tower. The water supply capacity is 2500 m3/d. The No.2 WSP also has no disinfection facility. The No.3 WSP was built in 2000 and it locates at the northeast of Emin County. The water resource is the groundwater. The well depth is about 120 m. The No. 3 WSP has a clean water tank with a volume of 2000 m3. The water supply capacity is 8000 m3/d. The diameter of the main water is 600 m and the length is 1300 m.

378. Emin County urban area (including Nongjiusi Area) has a combined wastewater and stormwater collection pipeline and WWTP. The utility belongs to Emin County Water Supply Company. Emin County WWTP locates at 513 Unit in Jiaoqu Town at about 5 km from the urban area. The WWTP was built in 2006. The design capacity is 13,000 m3/d by 2015 and 16,800 m3/d by 2030. The pre-treatment process is stabilized oxidization pond. The discharge treated water meets the standard of class 3 defined by Discharge Standard of Pollutants for

Municipal Wastewater Treatment Plant GB18918-2002 and Farm Land Irrigation Water

Quality Standard (GB5084-2005). In summer, the treated wastewater will irrigate the wind prevention woods, and in winter, the treated wastewater will turn into ice and pile up in the woods reserved for summer irrigation use.

379. The existing wastewater collection pipeline was built in 2004. The main pipes were built along Aerxiate Road, Wenhua Road, Yinbin Road and Youhao Road. The diameters of the pipes include D315, D400, D500 and D800. The total length is about 16 km. The main materials of the pipes include UPVC and RC. Some pipes are HDPE dual layers wave pipes.

G.2.2 Water Supply


(i) Layout

380. According to the overall city’s planning, terrain conditions, the user’s distribution and future development, the water supply pipe network can be determined. The layout of water distribution pipeline depends the water demand by the residents, industry and other users. The layout will also consider district and block management. The pipeline will be built together with the new roads.

(ii) Hourly and Daily Flow Variation Ratio

381. According to “Code for Design of Outdoor Water Supply Engineering” (GB50013-2006), the hourly flow variation ratio is 1.2-1.6. The daily flow variation ratio is 1.1-1.5. According to actual conditions in Tacheng and data of the cities in Xinjiang Province, the hourly flow variation


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ratio is 1.4. The hourly flow is 50,400 m3/d. The daily flow variation ratio is 1.3. The daily flow is 46,800 m3/d.

(iii) Pressure`

382. The design pressure of the water distribution pipe is 2.4 MPa. The limit design pressure is 1 MPa in the worst assumption case. The pipe network pressure calculation result drawings will be prepared as part of the FSR.


383. The total length of water distribution pipeline is about 7.7km. Table 3G.6 shows the diameter, material and length of the water distribution pipeline.

Table 3G.6 Pipe Amount of Water Distribution Pipeline


1.1 DN200 PE 2,620

1.2 DN300 PE 1,840

1.3 DN400 DI 1,340

1.4 DN500 DI 2,460 Total 8,260

G.2.3 Sanitary Sewer Pipeline


(i) Layout

384. The wastewater is collected by gravity. The wastewater of the new district and western urban area will flow to Chengxi WWTP. According to the overall city’s planning, terrain conditions, the user’s distribution and future development, the sanitary sewer network can be determined.

(ii) Pipe diameter

385. The pipe diameter is determined by the capacity of wastewater and pipe material. The capacity is the long term planned flow as 18,000m3/d. Manning Equation can be used to determine the pipe sizes.


386. The total length of wastewater collection pipeline is about 9.8km. Table 3G.7 shows the diameter, material and length of the wastewater collection pipeline.

Table 3G.7 Pipe Amount of Wastewater Collection Pipeline


4.1 DN300 HDPE 2,070


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4.2 DN400 HDPE 2,405

4.3 DN500 RC 2,130

4.4 DN600 RC 440

DN800 RC 2,820

Total 9,865


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H. Financial Analysis

H.1 Financial Management Assessment

H.1.1 Introduction

387. Effective financial management is a critical factor to ensure the benefits of a well designed and implemented project are sustainable. The EA/IAs’ financial management arrangements should be capable and of adequate for recording all transactions and balances, supporting the preparation of regular and reliable financial statements, safeguarding the entity’s assets, and are subject to audit.

388. The objective of financial management assessment to the project implementing agencies is to ensure that IAs is managerially and financially capable of efficiently and effectively implementing the proposed project. The specific appraisal goals are to: (i) determine whether the financial management capacity justifies ADB loan approval; (ii) identify the institution’s financial management development needs that should be addressed either as a project component or by TA; and (iii) confirm that the financial management system is sustainable throughout the project life. 389. The financial management assessment was conducted by the Consultant with the following methodologies: (i) collected and reviewed national and local rules or regulations on general accounting, auditing and financial management as well as specific policies on accounting method for projects financed by international aid agencies or foreign governments; (ii) on the basis of ADB Financial Management Assessment Questionnaire (FMAQ) undertook interviews with heads or staff of relevant accounting and finance division of the implementing agency in each project area. (iii) carried out on-the-site observation to the current practices in accounting, reporting and internal control in the EA/IAs with a focus on their implementation of construction projects; (iv) analyzed the facts and information collected in terms of their suitability to the project implementation; (v) identified issues or risks associated with the entity’s financial management systems and recommended risk mitigation measures to facilitate more effective project design and implementation. (vi) presented the outcomes from questionnaire, facts found, assessment results and improvement recommendations through report writing.

390. The assessment follows ADB’s Guidelines for Financial Management and Analysis of Projects (2005). Its scope covers institutional capacities of the Executive Agency (EA) and Implementing Agencies (IA) at the prefecture and city/county levels, funds flow arrangements, staffing, accounting policies and procedures, internal and external auditing arrangements, reporting and monitoring aspects and information system. The FMA targets the EA and all IAs for the sub-projects including Tacheng Prefecture Government’s (TPG) Finance Bureau (TFB), TPG Water Bureau (TWB), Liao Ta New District (LTND), E’min Construction Bureau (ECB), Tuoli Construction Bureau (TCB) and Yumin Construction Bureau (YCB).

H.1.2 Executing and Implementing Agencies

391. The proposed Xinjiang Tacheng and Border Cities Urban Development Project is the sixth ADB supported project in Xinjiang Uyghur Autonomous Region (XUAR). The outcome of the project will be integrated urban infrastructure improvement in four administrative areas, i.e., Tacheng City and E’min, Tuoli and Yumin Counties. There are 11 project components (sub-projects) covering upgraded roads, water and wastewater management services, solid waste treatment, district heating and flood control. TPG is the EA and the governments of Tacheng


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City and the three counties are the implementing agencies for the sub-projects in their own jurisdictional areas. The sub-projects and their respective implementing agencies are demonstrated in Table 3H.1.

Table 3H. 1 Subprojects and Implementing Agencies

No. Sub-projects Implementing Agency Tacheng City

1 Road Tacheng Municipal Government

2 Water Supply Tacheng Municipal Government

3 Sewage Tacheng Municipal Government

4 District Heating Tacheng Municipal Government

5 River Rehabilitation Tacheng Municipal Government

6 Solid waste treatment Tacheng Municipal Government

E’min County

7 Road E’min County Government

8 Water Supply E’min County Government

9 Sewage E’min County Government

Tuoli County

10 Road Tuoli County Government

Yumin County

11 Road Yumin County Government

392. TPG is the governing body of Tacheng Prefecture which covers seven cities or counties. It has been designated as the EA responsible for overall planning and management of the Project. Located in TPG’s Development and Reform Commission (TDRC), a Project Management Office (PMO) has been established to lead the project preparation activities, manage project progress, handle ADB loan disbursements, monitor project resettlement and environmental impacts, supervise and assist the IAs in implementing their own sub-projects. Historically TPG has been implementing 14 foreign aid projects financed by foreign governments, the World Bank or other international institutions, so it is not unfamiliar with international financing practices even though those funds were managed by an XUAR level executive agency.

393. The finance office of the EA will be the key node in the overall project financial management system and fund flow network. The office will not carried out the routine accounting-related works such as book keeping, contractor’s invoice processing and financial statement preparation for the sub-projects. It will focus on financing-related activities including counterpart fund payments, ADB loan recording, loan disbursement processing, financial statement summarizing and submitting to ADB,


140

394. The EA’s PMO is currently considering contracting with external high-quality accountants from an accounting firm to do the accounting and finance duties in a more professional way. The Consultant has recommended that to maintain close ties with the relevant government bureaus and to facilitate various work processes, at least one financial person from the finance bureau and construction bureau each should be dispatched to the PMO as full time staff members. External professionals could be hired, but public tendering shall be conducted and training on ADB financial management principles and loan disbursement procedures is a necessity.

395. The financial management responsibilities of the EA include: 1. Organize and distribute the counterpart fund through the existing procedure; 2. Review payment documents for ADB loan disbursement submitted by the IAs; 3. Prepare initial ADB loan withdrawal applications with supporting documents

attached and submit them to the superior PMO in the autonomous region; 4. Keep ADB loan related accounting records and prepare the financial section of the

project progress reports to be submitted to ADB and annual financial reports for auditing;

5. Provide guidance to the financial staff of IAs; 6. Monitor and coordinate accounting and finance activities on the subprojects.

396. The grass roots accounting staff in IAs will do the day to day financial jobs and set up

a base for the whole financial management structure. They should have accumulated hands-

on experiences in the financial accounting and reporting for the subproject in a specific

infrastructure sector. The financial management responsibilities of the IAs include:

1) Establish the accounts for each subproject and execute the fundamental accounting process for each transaction;

2) Receive and verify original invoices provided by the contractor for the finished works of the subprojects;

3) Trigger each payment process based on the acknowledged work quality by preparing and submitting payment documents to the EA’s PMO;

4) Formulate project statistics and regularly provide financial data to the PMO for financial statement preparation as required by ADB;

5) Frequently interface with the contractor, supplier and PMO to identify report and solve financial problems.

H.1.3 Accounting Policies and Procedures

397. The Ministry of Finance (MOF) developed since 1993 some 30 accounting standards aimed at bringing accounting and financial reporting practices in China more in line with the international best practices. The Standing Committee of National People’s Congress issued “PRC Accounting Law” in October 1999 which has been the highest guiding rule over the country’s accounting activities undertaken by all types of organization including government agencies.

398. Forty-three standards including the China’s Independent Auditing Standards, General Standard on Professional Ethics, General Standards on Quality Control and General Standard on Continuing Professional Education, after approval by the MOF, were issued by the Chinese Institute of Certified Public Accountants (CICPA) From 1994 to 2003, and became effective from 1 July 2003 at latest. The PRC Audit Law was revised in 2006 and the corresponding PRC Audit Law Implementation Rules were updated and promulgated in February 2010.


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399. Published in July 2013 the “Accounting System for Administrative Institutions (draft)” sets guidance for the daily accounting works in various government agencies and some public service providers. It stipulates that the objective of government agencies’ accounting is to provide accounting information on the agencies’ financial status, implementation of the public budget and execution of the trusted governmental responsibilities so as to facilitate the accounting information users in their administrating, supervising and decision-making activities. The document has formulated a standard chart of accounts covering assets, liabilities, net assets, incomes and expenses. It particularly regulates that in an administrative institution the accounting for assets, liabilities and net assets should be conducted on the accrual basis, while the cash basis should be applied to incomes and expenses.

400. In accordance with the “Norm for Financial Management of Government Agencies”, implemented from January 2013, an unified income and expense management approach is adopted throughout the government agencies, where fund is distributed from the treasury bureau based on pre-determined amounts and pre-determined purposes and no compensation is granted in case of overspending. Every agency should prepare an annual budget to be submitted to the treasury for approval and then strictly executed. Project fund should be utilized on the fixed purpose with separate accounting treatment. Fund utilization status must be reported regularly and subject to irregular inspections and audits. Reports on financial settlement, asset delivery and project outcomes should also be made upon project completion. As a general practice, the long-term non-revenue earning assets administered by government agencies or their representatives are not depreciated. A government agency should prepare annual financial status explanatory memorandum and financial statements including asset balance sheet, income and expense statement, detailed expense sheet, fixed assets expenditure statement, etc.

401. The “Regulation on Financial Management for Capital Construction”, promulgated by MOF in 2002, is adaptable to any project developer who uses fund from the public fiscal budget no matter at national, provincial or local level. It indicates that the finance bureaus at relevant levels as the major agency to manage and supervise the financing activities for government-funded capital construction projects, both revenue-earning and non-revenue-earning in nature. During project construction the developer shall prepare an annual fund utilization plan to be approved by the finance bureau before the fund is actually distributed. The document requires that the developer should designate responsible persons and establish an independent financial management unit to deal with various works including implementation of the approved budget, accounting arrangement, recording of material and equipment purchase, inventory and other assets, monitoring of project progress, regular checking of physical assets and submission of financial statements.

402. “Accounting Method for World Bank Loan Projects” and “Rule on Fund Disbursement Management for Projects Lent by International Financing Organizations”, issued or updated by MOF separately in 2000 and 2007, are specifically regarding the accounting and financial management of capital projects financed with loan from international financing organizations. Even though the first document targets World Bank-funded projects, ADB requires all its loan projects to obey it as well. The method has established a unified chart of accounts and corresponding serial numbers for the projects to apply in order to make it consistent and easy for voucher record, journal entry, book keeping, reconciliation and accounting computerization. The projects are required to submit bi-annual financial statements including, fund balance sheet, project progress sheet, loan utilization statement and imprest account statement. The rule on fund disbursement management for projects with funding from international financing organizations is very much similar to the ADB’s loan disbursement handbook but rather succinct and straightforward.


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H.1.4 Staffing

403. The accounting and finance people in EA will mainly come from the TPG finance bureau, while the accounting function in IAs will be performed by the staff from the local construction bureaus. According to feedback to the FMA questionnaire and Consultant’s interviews, all of the future project financial people have at least a two-year college degree or above and have obtained the basic accountant certificate, namely, the primary requirement for a person to undertake the accounting job. Most of them have stayed in the same agency for more than 10 years. Even though Liaota New District only has a history of 3 years, its financial staff had been transferred from the city’s finance bureau. Somebody with fairly good English needs to be arranged to support the financial people, especially at the early stage of project implementation. Table 2 lists the information of the pertinent financial staff. 404. Most agencies keep written position descriptions that clearly define duties, responsibilities, lines of supervision, and limits of authority for the financial officers. The TPG finance bureau regularly organizes professional training by external trainers to all the financial staff in the government agencies at the prefecture and city/county levels in order to let them be access to the newest knowledge and skills. As a usual practice, the officers in the government agencies do not sign labor contracts and there is generally no job rotation or internal transfer system among the financial staff. Training on ADB financial management guideline and disbursement procedure is definitely required.

Table 3H. 2 Financial Management Staffing

EA/IA Name Age Year in IA Position Education Credential

TPG Finance Bureau

Wu Songlin

48 25 Chief of Foreign-capital division

College degree

Senior Accountant Certificate

Wang Yong

39 13 Deputy chief of Foreign-capital division

College degree

Assistant Accountant Certificate

Tacheng Water Bureau

Wang Huihua

50 30 Accountant Two-year college

Assistant Accountant

Han Weihua

40 7 Cashier Two-year college

Basic accounting certificate

Liaota New District Administration

Cai Yongbin

46 3 Finance College degree


Liu Fei 40 3 Cashier College degree


Xie Zuguo 38 3 Cashier College degree


Yumin Construction Bureau

Li Guojun 45 29 Accountant College degree


Shu jianguo




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E'min Construction Bureau

Lin Zhongyan



Hao Jinyuan



Tuoli Construction Bureau

Wang Hongmin



Guan Wenhui



Yu Fei 24 2 Book keeper Two-year college


H.1.5 Financial Management Practices

405. The detailed project budget is usually formulated by the engineering division other than the financial one, but the financial staff needs to make sure the costs are incurred within the budget. The authorized signatories in the bank account are the financial chops and the signature of the bureau’s director or deputy director in charge of accounting and finance. The accounting jobs are properly separated. The organizations maintain an adequate and up-to-date cashbook recording cash receipts and payments. The bank accounts, cashbook and the general ledger are reconciled on a monthly basis.

406. All the financial transactions of the government agencies have to be approved by the finance bureau, and the finance bureau at the county level directly makes payments on behalf of other agencies while little cash is actually handled by the other agencies. There is guidance on advance payments clearly defining proper authorization and ceiling of advance amounts, particularly for construction projects. The project payment progress is required to be strictly in line with the construction contracts signed with external contractors. Usually 10% of each payment is withheld and will not be released until after the quality assurance period expires.

407. A computerized accounting system called Xin Zhong DA has been installed by and well connected with the finance bureau all over the government agencies. The accounting records and payment processes are closely monitored by the finance bureau through the network. The staff has been trained to use and maintain the data in the system. Project financial reports in accordance with China Accounting Standards for Government Agencies are generated by the system rather than by manual quarterly and yearly. However, it seems that the reports contain mainly the summarized accounting data but inadequate information and corresponding analysis about comparison of actual expenditures with budgeted and programmed allocations. There is little awareness about cost-benefit analysis for publically funded projects. This could be an area for improvement in future because financial people are expected to play a monitoring and advisory role to the operations.

408. The other agencies do not have an internal auditor because all the financial transactions are approved and monitored by the finance bureau. The finance bureau has set up an internal auditing division in parallel with other divisions of the bureau, reporting directly to the senior management. It plays a critical role in assuring that the normal financial management procedures and policies are well adopted in all the government agencies and all the payments included in the fiscal budget conform to the pre-determined objectives and direct to the target


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beneficiaries. The TPG’s Audit Bureau is responsible for yearly external auditing to financial activities including those related to project constructions conducted by the government agencies.

409. The following table summarizes the assessment results on the EA and IAs financial management skills. It illustrates that skills in the general financial management practices such as book keeping, project accounting, statutory reporting, internal control and audit are sufficiently acquired. This is thanks to the traditional good accounting environment and standardized practices within the government agencies. They are fairly good at the computerized accounting system and payment processing. The project budgeting is modest but the financial modeling, project evaluation and management accounting are basically unsatisfactory.

Table 3H. 3 Review of Agency Financial Management Skills

1) Skills Required 2) Current Level

3) Comments

4) Financial accounting (book keeping)

5) High 6) Staff skills in this area are well possessed. Most of them have an accounting career of over 10 years.

7) Corporate treasury (debt financing, investment, cash management)

8) Middle 9) As government agencies they are handling fiscal expenditure instead of commercial investment. Almost no debt is involved. Cash management is strictly monitored.

10)Statutory reporting 11)High 12)Financial reports are regularly prepared, for instance, asset balance sheet, income and expenditure statement, fixed asset status report and so on. But there is no understanding of the financial reporting requirements for ADB loan.

13)Fixed assets accounting (including construction in process)

14)High 15)The financial people in the IAs responsible for subproject implementations will come from the local construction bureaus which are constantly dealing with physical project constructions and public facility maintenances. They are very familiar with the project construction accounting.

16)Inventories accounting

17)Low or irrelevant

18)There are public facilities rather than production inventories managed by government agencies.

19)Computerized accounting

20)High 21)The accounting systems in all the government agencies under TPG have been computerized with software called Xin Zhong Da and connected with the finance bureau. Every financial transaction has to be approved and monitored by the finance bureau through the network.

22)Management accounting and reporting

23)Low 24)Cost analysis and reporting are a weak point.

25)Corporate budgeting 26)High 27)An overall budget is done each year to the agency and approved by the finance bureau.

28)Project budgeting and costing

29)Middle 30)Project budgeting is carried out by the engineering people as a one-off task. No updating follows up periodically. Project costing is generally well done.

31)Financial modeling and project evaluation techniques

32)Low 33)The staff lacks such a skill as almost all their projects have been financed from the fiscal budget.

34)Internal control and audit

35)High 36)The internal control is very strong. The IAs do not need to have an internal auditor as all the transactions are approved and monitored by the finance bureau. The


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finance bureau has set up an internal auditing division overseeing all the agencies.

410. Upon review and assessment of the financial management system and routine accounting practices, it is concluded that the EA and IAs have established quality financial management institutions. The financial management policies and accounting standard which are basically the national rules are rather perfective. An effective internal control is in place. The finance bureau has maintained an overall monitoring and supervising structure to the local agencies including the EA and IAs to assure the whole accounting and finance works are under strict surveillance. The financial management capability of the Project-related agencies is rated average and there is a space for enhancement through implementing the Project.

411. Since both the EA and IAs have no prior record of directly managing funds from foreign governments or international development institutions, familiarizing the relevant personnel with ADB and its rules and procedures should be a starting step for them to execute the ADB loan in a standard way. The staff shall be access to specific training on the ADB’s procurement and disbursement guidelines as well as handbooks on environment protection and social and resettlement management. Based on the historical performances and current capacities, considering the great support and guidance to be provided by the ADB Loan Project Management Office of XUAR, it is expected that the EA and IAs are able to build and operate the proposed ADB funded Project satisfactorily.

H.1.6 Fund Flow Arrangements

412. On behalf of the PRC Government, the Ministry of Finance (MOF) is the first borrower of ADB loan. MOF shall transfer the proceeds of the loan to the ADB loan end-users through XUAR finance department, TPG finance bureau and the city/county finance bureaus. The terms and conditions stated in the Loan Agreement between ADB and MOF should be fully prosecuted during the loan proceeds transfer process. Apart from the ADB loan the Project will receive counterpart funding from the city/county governments. Loan guarantee and counter guarantees will be provided by the relevant governments from the local ones through to XUAG Government.

H.2 Financial Analysis for Xinjiang Tacheng Project

H.2.1 Introduction

413. The proposed Xinjiang Tacheng and Border Cities Urban Development Project consist of 11 project components (sub-projects). For the non-revenue generating components, including the city/county’s public transport roads, river rehabilitation and solid waste management, assessment of the government’s fiscal capacity and solvency has been conducted to ensure the financial sustainability of those subprojects. For revenue generating components, i.e., the water supply pipelines, wastewater discharge pipelines and district heating transmission facilities, financial return approach and tariff structure analysis in relation to end-users’ affordability have been carried out.

H.2.2 Project Cost Estimation and Financing Plan


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414. The Project capital cost estimation and financing plan were prepared with the following basic assumptions. The current official exchange rate applied is USD1.0 = CNY6.2. For inflation forecasting for the foreign currency costs of the Project the Manufacture's Unit Value (MUV) index is used, which are 1.0% for 2015 and 1.4% for 2016 and 2017 and 1.5% for 2018 and 2019. The China’s domestic inflation rates are referred to the ADB projections, which are 3.0% for 2015 and the succeeding years. The physical contingencies are calculated at 8% of the basic costs. 415. The potential ADB loan will have a total duration of 25 years including a grace period of 5 years. The schedule of loan principal repayment after the grace period is prepared with the straight-line repayment method that calculates an equal annual repayment amount by dividing the total loan principle by the number of repayment years. The interest expenses for the loan during construction are determined in accordance with the LIBOR-based 5-year fixed swap rate (1.696% as of July 2014), plus a fixed effective contractual spread of 0.50% and a maturity premium of 0.10%. For the sake of conservativeness, the rebate on funding cost margin has been ignored. A 0.15% commitment charge is to be incurred on the undisbursed balance of loan on a yearly basis. The interests for the ADB loan during operation are determined with the LIBOR-based 10-year fixed swap rate (2.613% as of July 2014), also plus a fixed spread of 0.50% and a maturity premium of 0.10%, where the rebate on funding cost margin is ignored.

416. The ADB loan is expected to be $150 million including financing charges during implementation. The loan has been allocated by Tacheng Prefecture Government (TPG) to the four Project areas as following: $110 million to Tacheng City, $15 million to E’min County, $15 million to Tuoli County and $10 million to Yumin County. The four local governments will contribute their own counterpart funds: CNY688.25 million from Tacheng City, CNY126.55 million from E’min County, CNY64.44 million from Tuoli County and CNY47.36 million from Yumin County. The total capital cost is estimated to be USD301.10 million, or CNY1,806.6 million equivalent. The distribution proportions of the capital costs over the five implementation years are assumed to be 15%, 20%, 30%, 25% and 10%.

Table 3H.4 Project Investment Plan Item


A. Base Costb






Subtotal (A) 1,583.4 263.90 87.1%



1,817.2 302.87 100.0%



c

d


Amounta Share of

Total (%)

Total (A+B+C)




exchange rate.






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Table 3H.5 Fianacing Plan

Share of







Total 1,817.25 302.87 100.00%


SourceAmount


417. The financial sources for ADB loan repayment and for maintenance of the facilities after project completion will come from three government income channels: (1) the city construction and maintenance fee of the corresponding year; (2) the land right transfer fee of the year; (3) other sources listed in the year’s fiscal budget. These other sources may include the annual financial aid provided by Liaoning Province, the twin counterpart of TPG. Such a financial aid is estimated to be CNY540 million in 2014 and is expected to grow at an annual rate of 25% over the next few years.

H.2.3 Government’s Fiscal Capacity and Solvency Assessment

418. Based on the generally accepted criteria employed by the World Bank, the counterpart contributions are considered to be affordable by the government if the required annual amount does not exceed 15%–20% of the projected annual capital construction budget. Alternatively, the project’s annual counterpart funding is compared with government’s overall annual expenditure and also as a share of infrastructure projects that are funded by the government. In the case of debt service, the general acceptance is that debt service payments associated with a project will not cause concern if they do not exceed 2.5% of the fiscal income of the year or 1.0% of the overall government spending. 419. From 2009 to 2013 the fiscal incomes of TPG as a whole increased from CNY1.37 billion to CNY4.25 billion at a compound annual growth rate (CAGR) of 30.5%. This was a significant achievement considering the overall fiscal incomes of China during the same period increased by 17.2%. It is worth to notice that in the fiscal income structure two thirds (66.85%) derived from the fiscal transfers by the central government or financial aid provided by the twin counterpart province. This implies a great supports to XUAR from the other areas of the country, especially the central government and eastern regions. The fiscal expenditure of TPG has also increased at an over 30% CAGR. The historical fiscal incomes and expenditures of Tacheng City and E’min, Tuoli and Yumin Counties have encountered a similar trend during the same period.

420. If the country’s GDP average growth is estimated at 7% over the next 5-10 years, XUAR’s growth may be at 9% and Tacheng Prefecture’s GDP could increase by 11-12% yearly. As a result, it is expected that TPG’s fiscal incomes would increase by 25% in 2014-2016, by 20% in 2017-2020 and by 15% thereafter, provided the government’s treasury structures stay unchanged. The key precondition for intensified fiscal capacity in future is that the fiscal transfer and financial aid from outside will maintain the current momentum. Such a forecast is deemed reasonable and conservative, since the central government has made long-term commitment from political and strategic perspectives to supporting the social and economic development in XUAR, and TPG is in the frontier for consolidating the ties between China and the Central Asia countries.


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421. For the whole Project the share of counterpart fund in the annual fiscal income of TPG will be 0.67% at most in the construction period of 2015-2019. The loan principle and interest repayment combined with annual recurrent O&M cost will be as much as 0.20% of the fiscal expenditure in the first operation year and will decrease gradually over the following years along with the reduction of interest payments. It signifies a relatively strong sustainability of TPG and a general confidence in the financial sources from the Chinese side for the Project.

422. For Tacheng City the counterpart fund will account for 4% at most in the city’s annual fiscal income. The spending on debt service and O&M will be 1.22% of the fiscal expenditure in the first operation year, which is moderately over the World Bank’s project sustainability benchmark. Even though the 1.0% threshold is just an early warning line rather than a risky line, attention shall be paid to careful arrangement of the funds in the light of a cautious project financing plan and loan repayment schedule. A more relaxing fiscal status is envisaged for E’min, Tuoli and Yumin Counties, where the highest percentage of counterpart fund against the annual fiscal income during project implementation will be 0.73%, 0.36% and 0.44%, and the highest share of debt service plus O&M in the annual fiscal expenditure will be 0.17%, 0.15% and 0.16%.

423. The analysis illustrates that based on the assumed growth rates and financial sources identified during project preparation, including normal budgets, special funds incomes, subsidies, fiscal transfer and allocations, TPG as a whole and the three county governments are expected to possess sufficient counterpart funds for project implementation, namely, physical construction, facility maintenance and loan repayment. Tacheng City may feel some sort of pressure in the first few years of project implementation and at the early stage of facility operations. However, it is believed that TPG will grant full support to Tacheng City in case of temporary financing shortage.

H.2.4 Financial Viability Assessment for Revenue-Generating Components

424. The water tariff covers the cost for water treatment plants and the cost for water supply pipeline networks in the region. The average water tariff CNY1.53/m3 in Tacheng City, including CNY1.10/m3 for households, was determined in 2003. In 2012 the average water supply cost was CNY1.98/m3 already, which brought about large quantity of government subsidy. A water tariff reform plan was proposed for Tacheng City in later 2013 and subject to final approval by TPG before being executed in 2014 or 2015. The new tariff, making the water supply cost break-even, will also be the step-1 tariff of a potential stepped water tariff system. Whereas the step-1 tariff is aimed to cover 80-90% of household users, a step-2 water tariff will be 1.5 times the step-1 tariff and expected to be established after 2015. 425. According to the water tariff reform proposal for Tacheng City the average water tariff shall be lifted up to CNY2.11/m3, increased by 36.55%, based on the estimated water consumption volume calculated by deducting 12% water leakage from the average water supply volume during 2010-2012. This will delete the government subsidy to water usage in a general manner. After completion of the tariff reform the water spending by each household member each month will be increased by CNY1.30. But the current tariff CNY1.10/m3 will still be applied to the low-income families.

426. According to the World Bank’s criterion it is considered affordable for an ordinary household in developing countries if the water expenditure occupies 3-5% in the family’s disposable income. A study conducted by the Ministry of Housing and Urban-Rural Development of PRC has indicated that a 2.5-3% share would be appropriate in China.


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427. The average household disposable income per capita in Tacheng City and E’min County was CNY17,756 in 2013. Assuming 5 people per family on average and 200 liters of water consumed per person per day, the daily water consumption by a family would be 1,000 liters (200 liters x 5 persons) or 1 m3 and the yearly water consumption cost for a family would be CNY620.50 (1 m3/d x CNY1.70/m3 x 365 days). The waste water treatment charge for a family would be CNY146 (80% x 1 m3/d x CNY0.50/m3 x 365 days). Therefore, the yearly total water expenditure of a family is CNY766.50. The average household disposable income is currently CNY88,780 (CNY17,756 x 5 persons) a year. As a result, the share of water expense in the household disposable income will be 0.86% after the tariff reform is realized eventually. This is well within the envisaged comfortable zone for water cost affordability.

428. Promulgated in 2012, the current heat tariff in Tacheng City is CNY22.275/m2 for the whole heating period or around 180 days a year. There is no plan to adjust the heat tariff in the near future because the price of coal used for electricity production and heat generation is strictly constrained in XUAR, whereas in the eastern regions of the country the market force plays a dominant role in coal price setting.

429. For financial analysis of the revenue-generating sub-projects a 20-year operation period is assumed. The value of civil works is depreciated for 20 years, while the value of equipment is depreciated for 15 years. The income tax rate is 25% on the pre-tax operating profit. The after-tax cost of equity is assumed to be 8% as usually applied to water supply projects. The weighted average cost of capital (WACC) is computed to be 2.8%.

430. The water supply sub-projects in Tacheng City and E’min County are financially analyzed through proportionally allocating part of the expected water tariff and part of the overall water supply cost in the area to those sub-projects. Out of the expected water tariff CNY2.11/m3 to be utilized in Tacheng City after the tariff reform, CNY0.58/m3 is allocated to the water supply sub-project with capacity of 33,500 m3 a day. The water supply sub-project in E’min County with capacity of 8,500 m3 a day is allocated with CNY0.35/m3 from the expected water tariff. The water supply entities are charged with 3% water resources fee on its revenue. Incorporated with the capital and operating costs, the financial internal rate of return (FIRR) for the two sub-projects are 6.01% and 4.85% respectively, which are well above the WACC. A 10% plus/minus change to either the capital costs or the revenues does not turn the sub-projects into a negative territory. The sales revenue tends to be more sensitive than the capital cost.

431. The waste water treatment sub-projects in Tacheng City and E’min County are both allocated with CNY0.30/m3 from CNY0.80/m3 of their own waste water treatment charge. Based on the daily drainage volume of 58,200 m3 and 9,500 m3 respectively and combined with the estimated capital and operating costs, the FIRR of the two sub-projects are 5.56% and 5.01% which are higher than the WACC. The sensitivity analysis concludes that the sub-projects are basically risk-resistant when the capital cost and revenue change within a range of 10%.

432. The central heating sub-project including several heat exchange stations will be connected after completion with the existing heating pipeline network in Tacheng City by the Tacheng heat supplying entity, who buys heat from the heat generators and sells it to end-users. The heat purchasing cost is CNY14.36/GJ and the heat selling price is CNY22.275/GJ. The entity incurs operating costs for electricity, water, coal, labor, maintenance, administration and so on apart from the heat purchasing cost. The FIRR is calculated to be 8.46%. The sub-project is considered fairly safe in terms of financial risk.


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I. ECONOMIC ANALYSIS

I.1 Introduction

433. The central government of PRC is accelerating the development of small- and medium-sized cities. Small and medium-sized cities contributed to 56.22 percent of the country's overall economy in 2012, with a combined GDP of CNY 26.51 trillion. China’s urbanization rate reaches 52.57% by the end of 2012, measured by the urban population, up 1.3% from a year earlier12. Urbanization is thought a key for China’s modernization. By clustering the production and innovation capacities in the cities, economies of scale can achieve. However, incomplete urbanization will not only impede its growth, but also become a source of widened income inequality and consequent social tension and instability. Adequate infrastructure would help to mitigate the negative impact of rapid urbanization in medium-sized cities. This is because adequate infrastructure will ensure that local or migrant workers can get easier access to better public transportation system, sanitation water supply, public services, affordable housing and education as urban residents. These benefits can eventually yield better employment opportunities for the vulnerable groups at a lower cost. 434. Tacheng city was confirmed by the state council as ‘further opening city along the border’ in 1992 and ‘autonomous local reform and opening experimental area’ in 1994 and gained rapid economic growth. The GDP reached CNY6.83 billion in 2013 or 13.2% annual growth rate. Fiscal revenue grew to CNY0.41 billion in 2013 from previous year, or a growth rate of 36.9%. Foreign trade volume in terms of value, realized USD0.27 billion. Disposable income for farmers increased CNY2800 to CNY 13650, and for urban residents, it grew CNY 1850 to CNY 18450, in 2013. During the 12th five year plan period, GDP is expected to grow at 24% annually; and 20% and 16% annually for 2015-2020 and 2020-2030 periods respectively. This implies that the GDP will reach CNY12.19 billion by 2015, 30.03 billion by 2020, and 134.65 billion by 2030.

435. The strategic role of border cities is reflected in the president Xi Jinping’s speech at Nazarbayev University at Kazakhstan on building a new silk road economy. In 2014, the central government released the ‘New Urbanization Plan (2014-2020)’ which specifies Tacheng as one of the 6 national key land border cities to be constructed. Municipal infrastructure and public services investment is crucial to the development of Tacheng according to the plan. 436. However, Tacheng faces urgent needs for investments on its infrastructures currently. The proposed project will deal with the demand for urban road networks, water supply, wastewater collection, heat transmission of centralized heating, river rehabilitation, and solid waste management in Tacheng. The methodology, baseline assumptions, analysis, and results of the FSR were reviewed.

I.2 Justification and Demand

437. China’s urban population increased dramatically from 170 million in 1978 to 670 million in 2010 and the urban share of the total population rose from a mere 18% to more than 50% today. The most noticeable evidence is the urbanization of land (Lu et al., 200713). 438. The total population of China increased from 6620.7 million in 1960 to 13409.1 in 2010, an increase of 6788.4 million, or of 102.5%. At the same time the number of people residing in urban areas increased from 1307.3 million to 6697.8 million, an increase of 5390.5 million or of

12

This rate was 39.09% in 2002. 13 Lu, D. D., Yao, S. M., Liu, H., Gao, X. L., Li, G. P., & Duan, J. J. (2007). 2006 report of China’s regional

development: Urbanization process and space sprawl. The Commercial Press (In Chinese).


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412.3%. Since 1980, China has pursued urbanization with a growth rate 0.53% per year. Since 1995, when the urbanization process further accelerated, increasing at about 1.4% per year. The increased levels of urbanization facilitated economic development in China. 439. The development of these infrastructures of Tacheng city will substantially enhance the competitiveness of the city in terms of attracting foreign as well as domestic investment, creating employment opportunities and eventually improve the living standard of the residents. As an integrated part of the new urban area to be developed, the road network is the most fundamental infrastructure. Worldwide, one of the most obvious and potent tools for promoting market integration is investment in transport network. A recent research14 shows that aggregate Chinese real income was approximately 6% higher than it would have been in 2007 had the road network not been built, although this does not take into account the opportunity costs associated with expenditure on the network. 440. Due to the rapid urbanization process15, the exiting urban road systems in Tacheng, Emin, Tuoli and Yumin cannot meet the urban development needs. The proposed project will build the 2nd, 3rd, 4th and 5th ring roads and connecting roads in Tacheng, along with water supply, sanitary sewers, power supply, stormwater drainage, public transport, street lightings, etc. The proposed project will greatly shorten local residents’ travel time, generating more jobs, increase vehicle life, improve the safety of pedestrians, and reduce traffic accidents and associated damages. When the project is completed, total urban road length will increase by 30km, total road areas will reach 172.73hm2, or 18.32% of urban total construction areas. 441. Similarly, Emin County’s road network is lagged and became a constraint for the development and quality of urban life. The proposed project will construct 5 new roads in the county town with a total length of 10.13km, extend one existing road with a length of 3.22km, as well as associated street lighting, greening, traffic signs, and sanitation facilities. The project will also construct water supply networks as well as sewer and stormwater drainage pipelines. 442. For Tuoli county town, the project will construct a 14km long outer circle road. This road will serve multiple purposes such as stretching the town area and releasing traffic pressures from boundary cross vehicles etc. The proposed project will also invest in Yumin County for 6 urban roads with a total length of 9.71km, of which 3 are newly constructed. 443. For water supply demand in Tacheng, the FSR provides several approaches including per capita water consumption and population growth, category, and construction area approach. The three approaches yield consistent projections of long run water demand. The FSR concludes that the short run water demand is 3×104m³/d and long run demand is 8.28×104m³

/d.

444. The proposed project will also finance a considerable amount of solid waste collection, transport, storage facilities in Tacheng city. Based on the analysis of daily per capita solid waste generation, the FSR projects the annual solid waste output in Tacheng city, which is summarized in the following table.

Table 3H. 1 Solid Waste Output in Tacheng (2013-2030)

14

Roberts, Mark, U. Deichmann, B. Fingleton, T. Shi, 2012, Evaluating China’s road to prosperity: A new economic geography approach, Regional Science and Urban Economics, 42: 580-594 15

Currently total population in Tacheng is 170 thousand, where the planned population by 2015 is 132 thousand, making the infrastructure lagged. By 2025, the expected population will be 320 thousand.

Year Service Per capita per Daily Ouput Annual output Accumulated


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445. The total MSW amount in China increased from 31.3 million tons in 1980 to 164 million tons in 2011. Currently, waste composition in China is dominated by a high organic and moisture content, since the concentration of kitchen waste in urban solid waste makes up the highest proportion (at approximately 60%) of the waste stream. According to China Statistical Yearbook series, the total amount of MSW collected and transported was 164 million tons in 2011, of which 80% was treated and 76.9% of the treated SW was landfills, 19.9% was incinerated and 3.3% in other category. 446. Currently, there are about 660 cities in China that produce about 160 million tons of municipal solid waste annually and, account for 28% of the world’s MSW each year. In 2004, China surpassed the United States as the world’s largest waste generator. China’s per capita waste generation rate is 0.5 to 1.0 kg/ capita/day, while a typical developed country generates 1.43 to 2.08 kg/capita/day. The MSW generation rate also varies among different cities in China, e. g., with rates of about 1.00 kg/capita/day in Beijing in 2011, 0.92 kg/capita/day in Shanghai, 0.85 kg/capita/day in Jilin’s urban areas, and only 0.41 kg/capita/day in Jiangxi’s cities. 447. The demand for centralized heating in Tacheng is projected based on the projected growth of its population and per capita housing space.

Table 3H. 2 Tacheng District Heating Load

Centralized heating load MW

Incremental load

(MW) Current load

(MW) Total (MW)

population day weight

(Kg/p.c.d)

(T/d) 104T/year output

104T/year

2013 50000 1.47 73.50 2.68 2.68

2014 55000 1.46 80.30 2.93 5.61

2015 61700 1.45 89.47 3.27 8.88

2016 66642 1.44 95.96 3.50 12.38

2017 71980 1.43 102.93 3.76 16.14

2018 77746 1.42 110.40 4.03 20.17

2019 83974 1.41 118.40 4.32 24.49

2020 90700 1.40 126.98 4.63 29.12

2021 97965 1.39 136.17 4.97 34.10

2022 105812 1.38 146.02 5.33 39.42

2023 114288 1.37 156.57 5.71 45.14

2024 123442 1.36 167.88 6.13 51.27

2025 133330 1.35 180.00 6.57 57.84

2026 144010 1.34 192.97 7.04 64.88

2027 155546 1.33 206.88 7.55 72.43

2028 168005 1.32 221.77 8.09 80.53

2029 181462 1.31 237.72 8.68 89.20

2030 196000 1.30 254.80 9.30 98.50


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Short run 2017 225.1 316.3 541.4

Mid-run (2022 344.9 316.3 661.2

Long run 2030 567.5 316.3 883.8

I.3 Methodology and Assumptions

448. The economic returns are mainly in the form of savings in road-user costs due to the provision of a better road facility. The benefits depend on the future transport demand in the area. The economic analysis applies standard transport model through simulations of the traffic load using existing data for calibration. By modifying the number of trips generated and attracted by each area, it is possible to simulate changes in average daily intensities for each route, both with and without the Project. Three types of benefits are taken into account: those due to changes in the vehicles' operation costs, changes in accidents' costs, and user travel time savings. 449. For road components, the operation costs include: (i) maintenance, repairs and spare parts; (ii) tire's wear and tear; and (iii) fuel costs. Fuel consumption is calculated as a function of petroleum prices, distances travelled and travelling speed. Average consumption per km at each speed is estimated using national data. Accidents' costs with and without the Project are computed as a function of total travelled distance. Note that theoretically this benefit can be negative in net since although improve road infrastructure reduces the number of accidents which would take place, would increase average driving speeds, thus increases the probability of death in each accident. When converting travel time savings by absolute time values into monetary units, a value for travel time savings needs to be chosen. The detailed road transport model and its assumptions are relegated to the appendix. 450. The economic benefits of water supply pipelines, sewer and stormwater drainage system, as well as centralized heating, are assumed as parts of the total economic benefits of the complete corresponding systems, i.e., for water supply, the proportion of benefit is assumed as project investment against all necessary investments including water treatment facilities and distribution networks. Similar treatment is applied to sewer and storm water drainage pipelines, and centralized heating components. 451. The economic evaluation of the project was carried out by comparing with-project and without-project scenarios. All benefits and costs are in constant 2013 prices. The economic costs of the project components include (i) capital cost, including land acquisition and resettlement, and environmental mitigation and monitoring; and (ii) operation and maintenance costs, including replacement cost of depreciated equipment. Tradable commodities were valued at border prices at the prevailing exchange rate. Non-tradable commodities were valued through shadow prices using a standard conversion factor of 0.987, and specific conversion factors: 1.00 for equipment and civil works, 1.00 for skilled labor, and 0.67 for unskilled labor. A shadow price was used to put an economic value on the wages paid to unskilled labor but not on the wages paid to skilled labor.

I.4 Least-Cost Analysis

452. Least-cost analysis is used for alternative analysis. The FSRs consider different engineering options for all project components. For road networks components, costs of pavement materials between asphalt and cement concrete are compared. As part of the road


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components, costs of bridge structures between pre-stressed concrete box girder and pre-stressed concrete hollow slab are compared.

Table 3H. 3 Cost for Road Pavement Options

Asphalt concrete Cement concrete

Vehicle lane cost CNY229.5/m2 CNY240/m2

Passenger lane cost CNY80/m2 CNY80/m2

453. Concrete is a long-lasting option, with reduced needs for maintenance and repair as compared to asphalt. It has a smooth and attractive surface, and can showcase precise, fine edges, holds up in most weather conditions and vehicle weights, and is versatile for different usages. However concrete cracks over time, and a topcoat to existing concrete is impossible. Since asphalt entails a lower investment cost and overall maintenance cost, asphalt is chosen as the least cost option.

Table 3H. 4 Cost for Bridge Options

Pre-stressed Concrete

Box Girder Bridge Pre-stressed concrete

hollow slab Bridge

Pros and cons Duration of construction is longer; outlook less

attractive.

Shorter duration of construction; higher

urban landscape value

Costs CNY13000/m2 CNY9000/m2

454. Since pre-stressed concrete hollow slab bridge has a lower cost, it is chosen as the least cost option against the pre-stressed concrete box girder bridge. 455. The costs of pipeline materials for the water supply and sewer drainage purposes are compared at different diameter levels. It is found that the conclusions drawn by the FSRs based on these least cost comparisons are reasonable and convincing. 456. Financial costs, including physical contingencies, were converted to economic costs through different approaches. For the road component, the project costs included (i) the economic costs of construction, including monetary compensation for land acquisition and resettlement triggered by the road construction; and (ii) the economic costs of road operation and maintenance.

I.5 Economic Returns

457. The base case EIRR calculation for individual subprojects and the whole project are presented in the following tables. At a 12% discount rate, the whole project is found to be economically viable. The NPV for the whole project is CNY 339.8 million and the base case EIRR for the whole project is 15.1%, which exceeds the EOCC. The EIRRs for Tacheng city, Emin, Tuoli, and Yumin subprojects are 15.4%, 12.4%, 16.4% and 14.8% respectively. The sensitivity analysis shows that the project’s economic return is robust against negative impacts from benefit reduction, cost overrun and project implementation delay. The results of the sensitivity analysis, EIRR for each subproject, as well as the whole project, are presented below.


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Table 3H. 5 Sensitivity Analysis

Cases EIRR NPV(CNY million)

Base Case 15.1% 339.8

(i) Benefits reduce 10% 13.5% 157.0

(ii) Investment cost increase 10% 14.1% 243.6

(iii) delay one year 13.9% 224.3

(iv) Combination of (i), (ii), and (iii) 11.0% (118.9)

I.6 Distribution Analysis and Poverty Impact Indicator

458. As a result of the project, some participants lose and others gain. At a discount rate of 12 percent, the economy will lose CNY 121.91 million, mainly because of expenditures on O&M. Laborers will gain CNY 46.12 million because the project pays wages in excess of the economic opportunity cost of labor. The project does not generate financial return but generates sufficient economic return; as the result the consumers will gain CNY2047.95 million from more convenient transportation and improved living environment.

Table 3H. 6 Distribution of Whole Project Benefits

Accounts Beneficiaries Financial Economic Difference Government Accounts Accounts Consumers Economy Labor Total Benefits 2047.95 2047.95 2047.95

0.00

Total benefits 0.00 2047.95 2047.95 2047.95

Costs

Capital Costs 1199.78 1077.87 (121.91) 121.91

Labor 243.48 194.36 (49.12) 49.12

Income Taxes 75.51 (75.51) 75.51

O & M 596.49 589.47 (7.03) 7.03

Total Costs 2115.26 1861.70 (253.56)

Net Benefits (2115.26) 186.25 2301.51 2047.95 204.44 49.12 2301.51


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J. ENVIRONMENTAL ANALYSIS

J.1 Environment Safeguards Categorization and EISs/IEE Progress

459. The Project was classified as environmental category B for the purpose of EIA under ADB SPS. Domestically, the Project was classified as Category A in accordance with the Guideline on EIA Classification for Construction Projects issued by the PRC’s Ministry of Environmental Protection (MEP) in 2008.

460. The five EIS reports and six tabular EIAs have been drafted for the project components by the EIA Institute16 in accordance with the PRC Law on Environmental Impact Assessment (2003), the Technical Guidelines for Environmental Impact Assessment (HJ/T2-93) and other domestic environmental policies, regulations and standards, as well as the World Bank Group’s Environmental, Health and Safety Guideline (EHS) and ADB’s SPS. Tacheng Prefecture EPB was authorized by XUAR EPD to review and approve the EIAs for all projects components. The institutional framework for the EIA approval process for this project is summarized in Table 3J.1.

Table 3J.1 Institutional Framework for the EIA Approval

Responsible Division Scope of work

Tacheng Prefecture EPB (i) Organizes experts for EIA evaluation, including compliance with appropriate laws, regulations and standards; and (ii) Final EIAs approval.

The project city/counties’ EPBs

(i) Environmental management and supervision during project implementation, including the management and supervision of the implementation and (ii) fulfillment of the environmental mitigation measures and environmental monitoring (through local EMSs).

Source: EIA Institute

461. According to the EIA Institute, the final domestic EISs are expected to be approved before 15 September 2014 by Tacheng Prefecture EPB. The PPTA consultants assisted the finalization of the domestic EIAs.

Table 3J.2 Expected Date for EIA Completion and Approval

EIA Type

No. EIA of Component Date of EIA completion

Date of EIAs approval

EIS Report

1 Tacheng City Infrastructures and municipal service Component

8 July 2014 15 September 2014

2 E’min County Infrastructures and municipal service Component

3 Tuoli County Infrastructures and municipal service Component

4 Yumin County Infrastructures and municipal service Component

5 Tacheng City River Rehabilitation

Tabular EIA

6 Tacheng City Sewage 30 June 2014 7 Tacheng City Water Supply 8 Tacheng City Heating Supply 9 Tacheng City Municipal Solid Wastes 10 E’min County Water Supply 11 E’min County Sewage

Source: EIA Institute

16 The Xinjiang Branch of Ecological Geography Institute of Chinese Academy of Science (the Grade A EIA Institute).


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462. The English IEE has been drafted by the PPTA Consultants in accordance with the requirements of ADB’s SPS on the basis of the domestic EIS reports, the Feasibility Study Reports (FSRs), the social and economic assessments under the PPTA, and policy discussions between the ADB missions, PPTA consultants, Tacheng Prefecture PMO (TPPMO), and the IAs of Tacheng City and the counties of E’min, Tuoli and Yumin. Due to delay submission of the Tacheng River EIS, the first draft IEE will be sent to ADB for review before the end of July 2014.

J.2 Positive Impacts and Environmental Benefits

463. Direct project beneficiaries. The project will bring significant benefits directly to about 178,400 urban residents in the four project city/counties in Tacheng Prefecture by improving urban infrastructures, municipal service and supporting environmentally sustainable river rehabilitation and flood control, and increasing urban sanitation facilities. Of the total direct beneficiary populations, approximately 49.7% are women, 11.84% live under the urban poverty line of less than CNY331 per capita per month, and 45.8% are ethnic minorities in the project areas.

464. Carbon sequestration and GHG emission reduction. The GHG emission reduction benefits of the project are derived primarily from the following major interventions: (i) promoting enhanced energy efficiency through higher quality of road surfaces, grades and curve radii, improved road network connectivity, reduced road congestion and travel time; (ii) promoting public transportation and non-motorized transport (low carbon transportation modes) following the PRC programs on vehicle emissions, clean fuel regulations, and public transport priority policy to maximize the benefits; and (iii) the application of LED street lights, which is expected to save 2.4267 million KWh per year of electricity, resulting in a CO2eq emission reduction of 2,420 t/a17 as compared to conventional street lighting.

Table 3J.3 Energy Saving and GHG Emission Reduction by Using LED Street Lighting

City/county Numbers of street light

Electricity saving (kWh/a)

Standard coal saving (t/a)

CO2eq emission reduction (t/a)

Tacheng 1,677 1,285,421 514.2 1,281.8

E'min 296 226,884 90.8 226.2

Yumin 488 374,052 149.6 373.0

Tuoli 705 540,383 216.2 538.9

Total 3,166 2,426,739 970.7 2,419.9

Source: Domestic EISs and PPTA consultant

465. The project generally conforms to the principles of the Bellagio Declaration on sustainable transportation and climate change, which recommends that adaptation strategies, at a minimum, contain the following aspects: (i) a long-term perspective (building climate resilient infrastructure); (ii) requirements for fixing and adapting what already exists (such as road rehabilitation and maintenance in E’min County), (iii) recognition of the need to respond to climate emergencies (such as an emergency preparedness approach for snow melt flood, and drought control), and ecological river rehabilitation and restoration method to be conducted to achieve local environmental and ecological improvement.

466. The infrastructure and municipal service components with improved road connectivity will be beneficial in coping with any increase in the incidence of natural disasters and extreme

17

A KWh electricity saving reduces 0.997 kg of CO2.


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weather events that might result from future climate change. They will provide efficient and alternative routes for both emergency vehicles and escape.

467. Flood control. The Kalanggur River rehabilitation and flood control component will construct and strengthen unstable embankments along Kalanggur River (with a flood protection standard of once in 50 years), thus Tacheng City’ ability for flood control and protection will be significantly improved. Consequently, damages of flood to farm lands and crops, will be prevented and/or mitigated, and therefore increasing the land value.

468. Improved urban transport and municipal services. The infrastructures and municipal services components will reduce traffic congestions, and help the project city/counties establish efficient, safe, sustainable and environmentally friendly urban transport systems including public transportation facilities, bicycle lanes, pedestrian crossings, and traffic management facilities. The road and bridge constructions will also provide opportunities to complete and expand municipal services through the provision of pipelines and conduits for water supply, and sewer collection, which will benefit the local economies and residents’ health and safety.

469. The infrastructure components in Tacheng City and E’min County will construct 56.871 km sewer pipeline, with the service population of 170,200. The estimated amount of domestic wastewater to be collected is 39,800 m3/d. This wastewater will be delivered to the existing municipal WWTPs, where it will be treated to Class-2B Standard prior to discharge into the natural rivers/channels. The sewer system will reduce contamination of receiving water bodies, and will result in cleaner and healthier living environment for the urban residents. The estimated pollution abatement is shown in Table 3J.4.

Table 3J.4 Summary of Pollutants Removal through the Sewer Pipelines

Item Tacheng City E’min County Total

Length of sewer pipe (km) 48.791 8.08 56.871 Service population 75,200 95,000 170,200

Wastewater collected (m3/d) 21,800 18,000 39,800

CODcr (t/yr.) removal 5.232 4.32 9.552 BOD (t/yr.) removal 4.36 3.6 7.96

TN (t/yr.) removal 0.654 0.54 1.194 TP (t/yr.) removal 0.0654 0.054 0.1194

NH3-N (t/yr.) removal 0.6976 0.576 1.2736 Source: the EIA Institute and PPTA Consultants

470. Improved urban sanitation and public health. The Tacheng City MSW management subcomponent by applying 3R principles will improve the existing urban sanitation condition by enhancement of the city garbage collection and management program to improve the conditions of random dumping and littering in the three urban areas. It’s estimated that about 103.2 t/d of solid waste will be collected and disposed in Tacheng City after implementation of the project.

J.3 Potential Impacts during construction and operation

471. The potential impacts were screened during the EIA studies, through a number of methods such as rapid environment assessment (REA), site visits, technical analysis and consultations with key stakeholders ranging from the government agencies to members of the local communities and APs in the project areas. The purpose of the screening and scoping were to: (i) identify the relative significance of potential impacts from project activities during construction and operation; (ii) establish the scope of the assessment which assists in focusing


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on major, critical, and specific impacts; and (iii) enable flexibility in regard to consideration of new issues, such as those that reflect the requirements of both the PRC’s environmental laws, regulations and standards, and ADB’s SPS.

472. The major potential impacts of the infrastructures and municipal services components during the construction phase include: noise, air pollution (mainly fugitive dust), water pollution, earthwork and soil erosion, solid waste disposal, interference with traffic and municipal services, as well as permanent and temporary acquisition of land, involuntary resettlement; and occupational and community health and safety.

473. The major anticipated impacts of the infrastructures and municipal service components during operation phase include traffic noise; vehicle emissions; traffic safety; and possible risk of spills caused by traffic accidents with impacts on rivers, groundwater, farmlands and the local ecosystem, as well as odor and pest impact for operation of the MSW collection and transfer equipment; and noise impact to nearby residents during operation of the heat exchange stations.

474. The river rehabilitation and flood control component will improve the local environment and the resilience to flood. But negative impacts may occur during the construction and operation phases if no appropriate measures are defined. Main potential impacts during construction on the riverbanks include water pollution from increased river sediment transport, and impact on modified habitats along some sections of Kalanggur River. Potential impacts during the operation phase include: risk and impact of above-standard floods if any; changes in vegetation communities, in particular during the reforestation, river pollution causing by fertilizers and pesticides during planting and maintenance of trees along the river. The need for periodic maintenance; and potential impacts on beneficial users, including downstream users.

475. Soil erosion. According to the soil erosion protection plans (SEPPs), the natural soil erosion intensity in the four project areas is 500 tons per square kilometer and year (the four project areas all belong to wind erosion Gobi desert type). Higher soil erosion rates are expected during construction when surface vegetation and soil are damaged or disturbed. Soil erosion can also occur after completion of construction in areas if site restoration is inadequate. The most vulnerable soil erosion areas in the construction sites of influence include deep cuts, high fills, spoil sites, temporary construction sites, and other areas where surface soil is disturbed. The estimation of the soil erosion amounts for each component is shown in Table below.

Table 3J.5 Estimated Soil Erosion Amount for each Component during Construction (ton)

Component Impacted soil erosion area

(ha)

Original soil erosion amount

Increased soil erosion amount

Total soil erosion amount

Tacheng infrastructures 132.5618

1,658.1 6,367 8,035.3 Tacheng River 370.87 23,147.23 13,847.41 36,994.64 E’min Infrastructures 29.1 457 1,283 1,740

Tuoli Infrastructures 49.6 1,860 1,637 3,497 Yumin Infrastructures 25.6 307.5 1180.8 1,488.8 Total 475.2 27,429.8 24,315.2 51,755.7 Source: EISs

18

Includes the 13 roads and the alleys maintenance.


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J.4 Major Findings in the domestic FSRs/EISs

476. The Combined Sewage and Stormwater Drainage System: the updated FSRs still propose that the non-separated sewer and stormwater networks will be built in Tacheng City and E’min County (See the section 5.2.3 of Tacheng FSR). But the PRC State Council newly issued “Regulation for Urban Sewage and Stormwater Collection and Treatment” on 16 October 2013, which became effective on 1 January 2014. The regulation emphasizes “enforcement of separated sewer and rainwater network” for any new construction project. The consultants remind TPPMO and the IAs of the FSRs approval difficulty for adopting combined drainage system.

477. The consultants understand that Tacheng is located on an arid area; the average annual evaporation is more than five times of average annual precipitation (Table 3J.6). The stormwater runoff modulus is very small, but obvious street runoff occurs in snow-melt season, which will significantly increase the treatment load of WWTPs.

Table 3J.6 Average Annual Precipitation and Evaporation in the Project City/counties

City/county Average Annual

Precipitation (mm/a) Average Annual

Evaporation (mm/a)

Tacheng City (Liaota Area) 289.3 1,685.7 E’min County 262.8 1,786.0 Tuoli County 243.0 1,984.5

Yumin County 269.7 1650.0

478. Rainwater Utilization Design: In the updated FSRs, the roadside curbs with holes are proposed (See section 3.9.1 of Tacheng FSR and figure 1 below), which is beneficial for transferring rainwater and snow-melt runoff from impermeable surfaces to roadside greenbelts and other permeable ground to increase infiltration amount. But landscaping sprinkler irrigation system, by using tap water is also proposed (See section 3.11.2 of the Tacheng FSR). The consultants believe it’s not a proper design. Rainwater and snow melt water are valuable in Tacheng area. The consultants strongly suggest that the following measure for rainwater utilization should be designed: i) design more permeable areas on roadsides to increase runoff infiltration; and ii) design and built underground rainwater collection ponds along the roadsides for at least watering greenbelts in dry season.

Figure 1. Holes on curb allow rainwater

runoff flow to roadside greenbelt Figure 2 A Roadside Underground

Rainwater Collection Tank

javascript:;


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J.5 Public consultation, information disclosure, and grievance redress mechanism (GRM).

479. Information disclosure and public consultation for the project components were conducted in accordance with the PRC Guideline on Public Consultation in EIA (2006) and ADB’s SPS requirements. Two rounds of public consultation were conducted separately in the four project city/counties, through questionnaire survey and public hearings with community representatives, and local village committees. A total of 2,278 people and 47 organizations were consulted in the four project city/counties. Consulted persons and organizations supported the project and believed it will benefit resident's health, local economy, living standards, and local environmental and sanitation conditions. Suggestions from consulted people were received, including noise control during construction, odor and pests control for the MSW equipment and associated facilities, good planning to avoid repeated excavation of underground pipelines.

480. A GRM has been developed in each of the project city/counties to receive, document, and resolve community concerns and to assist the project to maximize environmental and social benefits. The GRM was discussed during public consultations. Most consulted people believe the project GRM is an improvement compared with local current practices.

J.6 Due Diligence for the Associated and/or Linked Facilities

481. The associated and/or linked facilities for Tacheng City Component include the Kalanggur Reservoir, Tacheng existing wastewater treatment plant (WWTP), water supply plant (WSP), and planned combined heat and power (CHP) generation plant; while those for E’min component are E’min WWTP and WSP.

482. The Kalanggur Reservoir. The Kalanggur Reservoir is located on the up reach of the proposed Kalanggur River Rehabilitation section, 33 km northeast of Tacheng urban area. The reservoir was designed by Shan’xi Hydropower Design Institute for flood control, irrigation, hydropower generation and fish farming, and the reservoir was completed and put into operation in 2002. The reservoir structure is a rock-filled dam with concrete face, side-bank spillway. The diversion structure (conduit system) is located on the west side of the reservoir. The major design parameters of reservoir are shown in Table 3J.7.

Table 3J.7: Main Characteristic of Kalanggur Reservoir

No. Items Unit Quantity

1 Total storage capacity of the reservoir m3

3.808 million

2 Dead storage capacity of the reservoir m3 0.5 million

3 Designed flood control standard Once in years 50

4 Maximum height of the dam m 61.5

5 Length of the dam m 565.4

6 Maximum discharge volume of the spillway m3/s 167.3

7 Type of the dam Rock-filled dam

8 Type of diversion tunnel Circular (3.6m diameter)

9 Length of diversion tunnel 600.28

10 Width of the spillway m 10

11 Length of spillway m 40

12 Maximum flow of spillway m3/s 122

13 Water quality of the reservoir Grade II of GB3838-2002

14 Minimum ecological flow provision m3/s 0.12 m

3/s

Source: PPTA consultant


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483. The WSPs in Tacheng City: There is an existing WSP (No. 3 WSP)19 with the total treatment capacity of 15,000 m3/d in Tacheng City, of which the water source is 100 m deep groundwater (four wells). The treatment process of the WSP is groundwater taking - disinfection (chlorination) – pumping to consumers. The main pipeline of water supply is a graphite cast iron pipe with the diameter of 600 mm. the quality of water supplied meets the national drinking water quality standard of GB5749-2006. There are also 87 wells owned by enterprises in Tacheng City, which will be gradually closed according to the city’s master plan. Due to lack of water supply distribution pipeline network, the current coverage of Tacheng’s water supply is 61% only.

484. According to the city’s master plan, two new WSPs will be constructed before 2020. The No.4 WSP, with the designed water supply capacity of 13,000 m3/d, is located at 3 km northeast of Tacheng urban area, which will use groundwater as water source; the No.5 WSP, with the capacities of 40,000 m3/d and 120,000 m3/d by 2015 and 2030, respectively, will use Abdulla River water as the water source. The tap water demands of Tacheng City are 75,000m3/a by 2015 and 145,900 m3/d, respectively. The both current and long term water supply capacities of Tacheng City are enough to satisfy the demands. The current problem of water supply system is lack of distribution pipelines.

Table 3J.8 Balance of Water Supply Capacity and Demand – Tacheng City (m³/d)

Year Item No.3 WSP

No.4 WSP

No.5 WSP

Water supply by individual enterprises

Water balance

2015

Water supply capacity

15,000 13,000 40,000 10,000 +3,000

Water demand 75,000

2030

Water supply capacity

15,000 13,000 120,000 0 +2,100

Water demand 14.59

Source: the domestic EIS

485. The existing WWTP in Tacheng City. There is an existing WWTP in Tacheng City, located on north of the city, with a capacity of 20,000 m3/d, which was put into operation in 2004. The WWTP adopts the Carrousel Oxidation Ditch treatment process, and its effluent meet the Class II-B of the PRC WWTP’s effluent quality standard. The current sewer collected and discharge into the WWTP is 18,000 m3/a in the City,

486. Due to topographically high in the north and low in the south with the elevation difference of 55 m in western part of Tacheng urban area, according to the city’s master plan, a new WWTP, located on southwest of the city with the capacity of 40,000 m3/a will be put into operation by the end of 2015. The WWTP treatment process is Orbal oxidation ditch, and the effluent will comply with the PRC Class I-B quality standard. The sewage collected through the proposed drainage pipeline will be discharge into the new WWTP. According to the FSR, the total sewage to be collected by the proposed pipeline will be 21,800 m3/d, after the project completion, the sewage collection and treatment rate will reach 80% of the total.

19

The No.1 and No.2 WSP, with the total water supply capacity of 3550 m3/d were closed in 2000.


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Figure 3 The existing Tacheng WWTP Figure 4 Kalanggur Reservoir in Tacheng Cit

487. The combined heat and power generation (CHP) Plant in Tacheng City. The associated CHP plant is located at 2.0 km northeast of Tacheng urban area (at longitude 82°56’56’’ E and the latitude 46°46’ 28’’ N). The total land area of CHP is 56.1 ha, and the investor of CHP is China Power Investment Corporation. The FSR of CHP has been approved by XUAR DRC on 2 July 2013 (the approval document No. is XUAR-DRC-Energy-2013/2215), BUT IT will have to further get approval from the PRC’s NDRC. The designed capacity of CHP is 2×350 MW supercritical steam CHP cogeneration units. The designed maximum heating supply is 685.7 MW, which is enough for the heating demand load of 537.5 MW. The design parameter for heating are listed in Table 3J.9.

488. The current district heating supply rate in Tacheng city in 64.4% only, while the heating supply by small low efficiency boilers and family stoves are 7% and 28.6%, respectively, which is one of the major air pollution sources in winter. After completion of the proposed project component, the district heating supply rate will increase to 75%.

Table 3J.9 Key Technical Parameters of the CHP

Items Unit Total

CHP cogeneration units (supercritical steam power and heat generation)

each 2

Maximum heat supply capacity MW 685.7

Maximum heating demand load MW 537.9

Steam extraction pressure MPa.a 0.4

Rated Steam extraction speed t/h 250

Maximum stream extraction speed t/h 550

Boiler efficiency % 93

maximum continuous rating t/h 1170

Annual heat supply Million GJ 5.160375

Source: PPTA Consultant

489. The WSPs in E’min County: There are three existing WSPs with the total treatment capacity of 12,000 m3/d in E’min County. The water source of WSPs is 120 m deep groundwater. The treatment process of the WSP is groundwater taking - disinfection (chlorination) – pumping to consumers. The main pipeline of water supply is a 13 km long graphite cast iron pipe with the diameter of 600 mm. the quality of water supplied meets the national drinking water quality standard of GB5749-2006.

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490. According to the county’s master plan, the WSPs of No. 1 and No.2 will be closed by the end of 2015. The No.3 WSP will be expended to 20,000 m3/d by the end of 2015, while a new Nan’an WSP, with the capacity of 10,000 will be constructed by the end of 2015; the capacities of the No.3 and Nan’an WSPs will be further expended to be 30,000 m3/d and 26000 m3/d, respectively, by the end of 2030 according to the master plan. The both current and long term water supply capacities of the County are enough to satisfy the demands. The current problem of water supply system is lack of distribution pipelines resulting in the water supply coverage of 60% only.

Table 3J.10 Water Supply Plants in E’min County (m3/d)

WSP Current Capacity

(2014) Capacity by the

end of 2015 Capacity by the end

of 2030

No. 1 WSP 1500 Will be closed No. 2 WSP 2500 Will be closed No. 3 WSP 8000 20,000 30,000

Planned Nanan WSP 0 10,000 26,000 Total water supply 12,000 30,000 56,000

Water demand 15,000 28,000 54,000 Water balance 3,000 2,000 2,000

Source: the domestic EIS

491. The existing WWTP in E’min County. There is an existing WWTP in the county, located at 5 km west of the county town (total land area is 26.7 ha), with a capacity of 13,000 m3/d, which was put into operation in 2006. The WWTP adopts the coarse & fine screens + sedimentation + lagoon treatment process, and its effluent meets the Class II-B of the PRC WWTP’s effluent quality standard. The current sewer generated in the county town is 18,000 m3/a,

492. According to the county’s master plan, a new South WWTP, with the total treatment capacity of 12,000 m3/d (by 2017), will be constructed at southwest of the county town, the designed treatment process is Oxidation Ditch, and its effluent quality will meet the Class II-B of the PRC WWTP’s effluent quality standard. The total sewage to be collected by the proposed pipeline will be 9,500 m3/d according to the EIS. After the project completion, the sewage collection and treatment rate will reach about 60% of the total sewage generated in the county town.

J.7 Project Risks

493. Project risks were assessed during the PPTA. The majority of environmental risks relate to design features and operational plans, which will mitigate impacts but rely on the commitment and capacity to implement and consistently follow-up of the TPPMO, the LPMOs, PIUs, construction supervision companies (CSCs) and contractors. The remaining relate to the likelihood of unexpected negative impacts. More specifically, the main project risks include: (i) low institutional capacity for environmental management and the possibility that the TPPMO, the PIUs, the LPMOs, CSCs and contractors will fail to monitor the environmental impact and implement the EMP during the implementation of the project; (ii) unforeseen land acquisition and resettlement issues, which could constrain the efficient implementation of the project works and restoration of livelihoods of the APs; and (iii) inadequate construction site management, resulting in occupational and community health and safety concerns.

494. Measures have been identified in the EMS of IEE to address the project risks: (i) appointment of an Environmental Expert under Loan implementation consultancy services (LIS-ES) and other experts in environmental management and monitoring, river rehabilitation, restoration and maintenance, transport safety, and training/awareness raising; (ii) clear


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definition of roles and responsibilities for EMP implementation, performance indicators, and mechanisms for feedback and adjustment; and (iii) a comprehensive capacity building and training component with strong focus on soil erosion, river system management and monitoring, EMP implementation and supervision, and urban transport and river pollution control.

J.8 Conclusion

495. All the project components will support the PRC’s Western Development Strategy, Sustainable Development Policy, as well as XUAR’s, Tacheng prefecture’s and project city/counties’ development master plans. The public consultation indicated that the majority of the potential APs supported the project and project components and believed they would benefit the local economy, raise residents’ living quality, improve local environmental conditions, and effectively protect the local environment. The overall findings of the domestic EISs and the IEE are that some negative impacts on air, water, soil erosion and acoustic environment are expected, especially during construction. Any adverse environmental impacts and risks associated with the project can be prevented, eliminated, or minimized to an acceptable level, if all the mitigation measures and monitoring requirements defined in the EMP are strictly implemented during detailed design, construction and operation, and the environmental management and institutional capacities of TPPMO, the IAs, the PIUs and the operators of project facilities (OPFs) are strengthened through implementation of the comprehensive training and capacity building program.


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K. LAND ACQUISITION AND RESETTLEMENT

496. The proposed project will support the development of Tacheng Prefecture of Xinjiang Uyghur Autonomous Region; improve infrastructure and eco-environment of Tacheng City, E’min County, Tuoli County and Yumin County. According to Feasibility Study Report (FSR) of the project, the project consists of four (4) components: (i) Tacheng (including Liaota New Area) new urban road construction and existing alley rehabilitation, municipal services facilities including pipeline network of water supply, sanitary sewer, primary heating supply, heat exchange stations, communication and power lines, Kalanggur River rehabilitation, and Municipal solid waste management; (ii) E’min new roads and bridge, and pipe network of water supply and sanitary sewer; (iii) Tuoli new outer ring road; and (iv) Yumin new road and bridge construction and existing road rehabilitation, and pipe network of water supply and sanitary sewer.

497. Four (4) resettlement plans (RPs) should be prepared for the Project, including (i) Component of Tacheng; (ii) Component of E’min; (iii) Component of Tuoli; and (iv) Component of Yumin. In addition, three (3) due diligence reports (DDRs) on land acquisition and resettlement for construction of facilities related to the Project should be prepared as one of appendixes of the RPs of the corresponding components, including DDRs for (i) heating-combined power plant related to Component I; (ii) 2 roads under construction related to Component II; and (iii) 2 roads under construction related to Component IV.

498. By 15 July 2014, two (2) draft RPs for Tuoli and Yumin components were submitted to the PPTA team. The PPTA resettlement specialists reviewed and commented the two RPs of Chinese version. The English version of the two RPs are reviewed and submitted to ADB mission by the PPTA resettlement specialists. Tacheng City PMO and Emin County PMO completed impact scope identification and will submit the draft RPs to the PPTA team in July 2014.

K.1 Land Acquisition and Resettlement Impacts

499. Both Tacheng and Emin components will involve both land acquisition and house demolition, while Tuoli and Yumin components will involve land acquisition only. Detail impacts are presented in Table 3k.1.

K.2 Resettlement Principles and Entitlements

500. The RPs are prepared in compliance with the Land Administration Law of the People’s Republic of China (2004), Law of the People's Republic of China on Administration of the Urban Real Estate (2007 Revised); Regulations regarding the Administration of Urban Housing Removal (2001); Guidelines Regarding Urban Housing Removal Estimation, and other applicable guidelines. They were also based on local policies regarding LAR in Xinjiang Autonomous Region, and the project cities, and ADB’s Safeguard Policy Statement (June 2009). Based on consultation with the local governments and affected persons (APs) and general practices in the project area, the IAs have adopted a set of resettlement principles and an entitlement matrix has been prepared for the Project.

501. Compensation for land acquisition, residential housing, and non-residential buildings (shops and enterprises) are paid to the affected owners or users. For land acquisition, compensation fees include land compensation, resettlement subsidy, and compensation for young crops and/or trees. The land acquisition compensation rates are based on comprehensive district prices of different areas in Tacheng Prefecture. The compensation rate


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for both land compensation and resettlement subsidy for the Tacheng component is 39,000 CNY/mu, for E’min component is 46,500 CNY/mu, for Tuoli component is 15,600 to 35,000 CNY/mu and for Yumin component is from 38,100 CNY/mu. The affected farmers will receive 100% compensation of resettlement subsidy and young crops and/or trees, and village collectivity can get land compensation. And the collectivity villagers will discuss the usage of the land compensation. Once temporary land occupation is involved, the compensation is 1,500 CNY/mu per year for young crops and 3,000 CNY/mu for the land re-cultivation.

502. The PPTA Consultants addressed compensations for land acquisition and house demolition and any attachments must meet full replacement values of the loss. The PMO of each component must evaluate the loss and provide full compensations to APs.

K.3 Public Participation and Grievance

503. Public consultation has been the key for the preparation of the RPs. From October 2013 to April 2014, a series of consultation activities were carried out with the APs, resettlement communities (RCs), institutions and enterprises, and other project stakeholders. The physical object survey on land and building asset inventory, and social and economic survey of sampling households, enterprises and institutions have performed. The APs have participated in the preparation of the RPs through the measurement and socioeconomic surveys, and community meetings. Their concerns and comments have been integrated into the RPs. Further consultations will be held during the implementation of the RPs. June 15, 2014 is set as cut-off date of existing physical status in the affected areas for all four components. A grievance procedure has been established for the APs to redress their LAR issues, including three channels: (i) Townships resettlement offices (ROs), (ii) ROs of subprojects of the project city/counties; and (iii) Tacheng Prefecture PMO. The resettlement information booklets will be disclosed to the APs in local language (Chinese) prior to the ADB management review meeting and RPs will be distributed to affected households, village/community committees, town/street offices before the resettlement implementation. In addition, the RPs will be uploaded on ADB website in both English and Chinese.

K.4 Resettlement and Livelihood Rehabilitation

504. To minimize the resettlement impacts to APs and restore their living standards, detailed programs of restoration and relocation have been arranged in the RPs. APs can choose the available programs according to their requirements. Based on the socioeconomic survey and analysis of the affected households, and local experiences in relocation and resettlement of similar projects, measures for resettlement and income restoration have been prepared. These measures include unified planning and provision of house plots by government and APs rebuild their new houses, unified resettlement housing, provision of economically affordable housing, distribution of living expenses to the APs, employment creation by the local safeguard network, skill training for the APs, employment related to the Project and non-monetary support and so on.

505. The PPTA Consultants addressed (i) measures for resettlement and income restoration shall be prepared based on full consultation and participation of affected peoples; (ii) current production and living styles of affected households shall be considered and included during the measure preparation; (iii) specific rehabilitation measures for vulnerable households shall be prepared so that their living standards are improved; (iv) special measures for ethnic minority development shall be included to maximum benefits to affected ethnic minority groups; (v) details of social security measures, improving agricultural practices on remaining farmland land, provision of jobs, shop spaces etc. shall be included specifically and explain how they will benefit the APs in livelihood restoration; (vi) the part of the land compensation to be used by


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affected village committees shall be explained fully; and (vii) detail training plan to improve APs’ income shall be included.

K.5 Institutional Arrangement

506. The Tacheng Prefecture PMO will assume the overall responsibility for supervision of the implementation of LAR, including the planning, implementation, financing, and reporting of LAR. The IAs, Tacheng (city), E’min, Tuoli and Yumin PMO, respectively, will take the primary responsibility for the resettlement consultation, implementation, and timely delivery of entitlements. To ensure smooth implementation, the staff in charge of LAR will undertake training on resettlement implementation organized by the Tacheng Prefecture PMO. The resettlement implementation schedule has been prepared based on the preparation and construction timetable. The RPs will be updated based on the final design and detailed measurement survey, disclosed to affected persons in local language and submitted to ADB for review and approval prior to award of civil works contracts.

K.6 Monitoring and Evaluation

507. A detailed plan for both the internal and external monitoring and evaluation (M&E) is included in the RPs. The Tacheng Prefecture PMO will submit an internal monitoring report quarterly to ADB. Furthermore, the Tacheng Prefecture PMO will employ an external resettlement monitoring institute or firm to establish an independent external monitoring organization in order to deliver a truly independent and unbiased external monitoring report. A baseline study of APs will be completed before the LAR begins and the first monitoring report will be submitted in March 2015. After that and until project completion, semi-annual monitoring reports will be prepared and submitted for ADB’s review during resettlement implementation and annually for two (2) years after completion of resettlement. The implementation plan of the RPs is summarized in Table 3K.2.

Xinjiang Tacheng Border Cities and Counties Development Project (TA 8363-PRC)Draft Final Report

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Table 3K.1 - Impact of Land Acquisition and Resettlement

Unit Tacheng

Component E’min

Component Tuoli

Component Yumin

Component Total

Affected town/urban subdistrict No. 1 2 2 1 6

Affected village/community No. 7 4 2 1 14

Permanent land acquisition

Total mu 1,743.41 181.63 845.31 184.64 2,954.99

Collective land mu 840.74 93.73 377.63 161.79 1,473.89

Farmland mu 626.07 81.00 373.93 161.79 1,242.79

House plot mu 157.78 12.73 0 0 170.51

Construction land mu 28.98 0 0 0 28.98

Enterprise land mu 0 0 0 0 0

Other land mu 27.91 0.00 3.70 0 31.61

State land mu 902.67 87.90 467.68 22.85 1,481.10

Acquisition of residential houses and structures

Rural house m2 35,517.67 7,389.18 0 0 42,906.85

Rural shanty m2 24,588.62 1,181.95 0 0 25,770.57

Urban house m2 0 2,713.50 0 0 2,713.50

Urban shanty m2 0 1,849.29 0 0 1,849.29

Urban enterprise/shop m2 16,712.53 1,604.30 0 0 18,316.83

Affected rural households and persons

By land acquisition only HH 263 32 77 41 413

person 866 103 323 161 1,453

By house demolition only HH 158 53 0 0 211

person 560 203 0 0 763

Both land and house acquisition

HH 29 0 0 0 29

person 100 0 0 0 100

Affected urban households and persons

Acquisition of residential houses

HH 0 21 0 0 21

person 0 79 0 0 79

Total of affected households and persons HH 450 106 77 41 674

Xinjiang Tacheng Border Cities and Counties Development Project (TA 8363-PRC)Draft Final Report

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person 1,526 385 323 161 2,395

Total of enterprises/shops No. 15 1 0 0 16

person 127 19 0 0 146

Table 3K.2 - Implementation and Supervision Milestones

No. Resettlement Tasks Target Responsible

Agency Deadline

1. Consultation and Disclosure

1.1 Draft RP circulation and endorsement

Cities and project Counties.

IA and county governments 15 Aug 2014

1.2 RIB distribution All affected villages and people

City and County ROs Sep 2014

1.3 Consultations for updating RP Seriously affected villages and people

IA, City and County ROs, consultant

Oct 2014

1.4 RPs distribution All affected villages City and County ROs Oct 2014

2. Resettlement Plan & Budget

2.1. DMS DI, city & county ROs, affected villages and APs

Dec 2014

2.2 Updating RP based on DMS IA, consultant Jan 2015

2.3 Approval of final RP & budget Each City & county Government

Jan 2015

3. Capacity Building

3.1 Establishment of a resettlement offices at various levels

IA, Local governments Sep 2014

3.2 ROs capacity building 30 staff IA, Consultant Oct 2014

3.3 Designate village authorities All affected villages City and County ROs Oct 2014

4. Commencement and Completion of Resettlement

4.1 Agreements with villages and APs

All villages and APs City & County ROs Feb 2015

4.2 Commencement All ROs Feb 2015

4.3 Disbursement of compensation to APs

City & County ROs Feb – Mar 2015 onwards

4.6 Completion All ROs 31 Dec 2017

5. Monitoring & Evaluation

5.1 Internal monitoring reports Semi-annual reports

IA Feb and Aug each year

5.2 Contracting external monitor IA Jan 2015

5.3 Baseline survey 10-20% of seriously affected HHs

50% affected villages

External monitor Feb 2015 (during and shortly after DMS)

5.4 External monitoring report Semi-annual reports External monitor Mar and Sep each year

5.5 Resettlement completion report Report External monitor 31 Dec 2019


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L. POVERTY AND SOCIAL ASSESSMENT

L.1 Introduction

508. The objectives of the Poverty and Social Assessment (PSA) are to (i) assess the impact of the Project on the social development and poverty reduction in the project area; (ii) optimize the project design through social considerations in order to maximize social benefits, particularly benefits to the vulnerable people, including the poor, women, ethnic minorities and other social groups; and (iii) ensure the social dimensions are fully incorporated into the final design of the Project.

509. The Project will contribute to poverty reduction through improvement of the local infrastructural facilities, protection of the environment by reduction of risks to health, and support of the PRC Government’s national and regional infrastructure development strategies. It will also provide employment opportunities during both the construction and operation phases of the Project, with additional multiplier effects to levels of economic activity. A full PSA report is one of the PPTA documents as Supplementary Appendix 11.

L.2 Methodology

510. This PSA includes the results of a socio-economic survey, a range of stakeholder consultation sessions, and a series of key informant interviews, particularly with local government bureaus with mandates related to employment, vulnerable people, women and ethnic minorities. It also includes the results of discussions with staffs from the executing agency (EA) as represented by Tacheng Prefecture Project Management Office (TPMO), and implementing agencies (IAs), and other PPTA team members, and integrates the results of field observations at the various project component sites over the period January – March 2014 and the results of household survey and focus group discussions (FGDs) conducted in April and May 2014. 486 households were surveyed and 17 FGDs were conducted in the project areas.

511. Based on these approaches, beneficiaries for each component and for the Project as a whole, and key benefits and risks of the Project are identified. The project impacts on inhabitants and local social development are assessed. Job opportunities generated directly and indirectly by the Project to be filled by local recruitment are estimated; including employment opportunities from construction, maintenance, operation, and opportunities for targeting vulnerable people is investigated. In addition, gender impacts and risks are identified.

L.3 Project outputs and Areas

512. The Project has five outputs, including: (i) Tacheng City infrastructures, municipal services, district heating, municipal solid waste (MSW) management, and river rehabilitation; (ii) Emin County infrastructures and municipal services; (iii) Tuoli County infrastructures and municipal services; (iv) Yumin County infrastructures and municipal services, and (v) capacity development and institutional strengthening.

513. Tacheng Prefecture is located in northwest of Xinjiang Uygur Autonomous Region (Xinjiang) and consists of 2 cities and 5 counties20 with area of 105,000 km2 including Tacheng City, Emin County, Tuoli County and Yumin County defined as the direct project city/counties or project areas. There are 5 counties (city)21 bordering Kazakhstan. The Prefecture had a total population of 1.355 million, including endemic population of 0.968 million. A total of 0.4456 million of ethnic minority’s people in 29 ethnic groups are living in the Prefecture, according for 45.8% of the total endemic population in 2012.

20 Including Tacheng City, Wusu City, Emin County, Tuoli County, Yumin County, Hoboksar County and Shawan County. 21 They are Tacheng City, Emin County, Tuoli County, Yumin County and Hoboksar County


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514. The Project will be implemented in Tacheng City, Emin County, Tuoli County and Yumin County, which population accounts for 50% of the total population of Tacheng Prefecture. They are all border counties. Among them, Tuoli is a key national poverty county and Yumin is one of poverty counties in the level of Xinjiang Uygur Autonomous Region.

515. According to project components in FSRs, different components will be implemented in different areas in the project city counties. The subdistricts or towns where the components will be implemented are defined as directly affected project area (DPA). A total of 256,751 people, including about 34,533 poor (13.5% of the total population), 127,268 female residents (49.6% of the total population) and 120,183 ethnic minority people (46.8% of the total population), will be affected directly by the project in DPA, and they will benefited from the project due to the river rehabilitation, district heating improvement, municipal solid waste improvement, alley rehabilitation and new road network construction.

L.4 Social Profile of project areas

a. Basic Social and Economic Characterization

516. As of December 2012, Xinjiang had a population of 22.33 million, including 9.82 million of urban residents and 12.51 million of rural residents, while 0.4777 million of urban residents and 0.49 million rural residents are in Tacheng Prefecture. The area and population of the project city/counties are presented in Table 3L.1. The Income and Expenditure of the project areas are shown in Tables 3L.2 and 3.

Table 3L.1 Population and Composition in Project Area and Tacheng Prefecture in 2012

Item Unit Project Area

Tacheng Prefecture

Tacheng City

Emin County

Tuoli County

Yumin County

Land Area km2 4,356.6 9,147 19,992 6,107 104,547

No. of Household HH 51,475 58,493 28,988 1,8829 324,776 Population person 153,179 163,759 97,855 54,081 968,416 Ethnic minority person 62,168 98,232 73,245 23,912 445,623 Male person 76,931 82,611 48,991 27,368 490,254 Female person 76,248 81,148 48,864 26,713 478,162 Non-rural person 91,006 78,161 38,354 24,728 477,722 Rural person 62,173 85,598 59,501 29,353 490,694

Source: Statistical Communiqué on 2013 National Economic and Social Development of Tacheng Prefecture；Leader’s Handbook of Tacheng Prefecture 2013

Table 3L.2 Per Capita Economic Indicators of Project Area & Tacheng Prefecture in 2012

Item Unit Project Area

Tacheng Prefecture

Xinjiang

China Tacheng

City Emin Tuoli Yumin

Urban Disposable Income Per Capita

yuan 16,600 15,696 14,228 14,520 16,464 17,921 24,565

Rural Net Income Per Capita

yuan 10,850 10,039 6,214 9,116 11,551 6,394 7,917

Average Wages of Staff and workers

yuan 44,741 41,196 46,190 36,999 33,461 36,048 37,760

GDP per Capita yuan 38,316 28,938 35,636 19,630 42,814 33,799 38,400

Source: Statistical Communiqué on 2013 National Economic and Social Development of Tacheng prefecture；Leader’s Handbook of Tacheng Prefecture 2013

Table 3L.3 Average Expenditure Per Capita of Tacheng Prefecture 2010-2012 (CNY/year)

Urban Consumption

Expenditure Per Capita (in Increase (%)

Rural Living Expenditure

Increase (%)


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Tacheng City) Per Capita

2010 10,509 -- -- -- 2011 11,873 11.5 7,145 -- 2012 14,636 18.8 8,474 18.6

Source: Tacheng Prefecture Statistic Yearbook 2012

b. Poverty

517. XUAR is one of 12 less-developed provinces and autonomous regions in the western PRC. Tuoli is one of national key poverty counties and Yumin is one of Xinjiang key poverty counties. Both urban and rural poverty incidences of the project city/counties are presented in Table 3L.4. Tacheng Prefecture Government (TPG) has increased the MLSS from CNY140 per month in 2010 to CNY155 per month in 2011 and CNY331 per month in 2013. The rural lowest living safeguard standard was adjusted from CNY1,720 to CNY1,912 per year in 2013.

Table 3L.4 Poverty Households and Population in Project City/counties

Project Area

Year

Urban Poverty Rural Poverty Annual

Accumulation

HHs Population

(person)

Percentage of

Population (%)

HHs Population

(person)

Percentage of

Population (%)

Tacheng City

Dec.2013 4,420 10,550 11.84 2,633 6,600 12.15 215,843

Emin County

Dec.2013 4,836 12,468 15.95 4,980 12,152 14.02 289,000

Tuoli County

Dec.2013 1,962 5,461 13.65 1,627 5,404 8.93 115,676

Yumin County

Dec.2013 1,413 3,047 12.46 2,506 3,990 13.5 84,412

Source: 2012-2013 statistical form of civil affairs bureau of Tacheng Prefecture

c. Ethnic Minority Groups

518. The total population of ethnic minorities in Tacheng Prefecture is about 445,600, accounting for 45.8% of the total population according to the population statistic of Tacheng Prefecture in 2011. The top seven minorities in the Project area and Tacheng Prefecture based on the last census are presented in Table 3l.5.

Table 3L.5 Population of Main Ethnic Minorities in Project Area and Tacheng Prefecture in 2011(person)

District Kazak Hui Mongolia Uygur Daur Russian Xibe Tacheng Prefecture

264,421 80,077 34,406 41,878 5,350 3,506 1,990

Tacheng City 26,723 13,201 1,824 5,122 5,167 2,379 1,520 Emin County 74,823 7,339 6,194 8,084 60 585 91 Tuoli County 70,376 1,102 528 1,268 9 19 63 Yumin County 18,365 3,704 146 181 37 236 59

Source: Xinjiang and Tacheng Prefecture Statistic Yearbook 2012; Annual reports of Tacheng Nationality and Religious Affairs Committee

d. Gender Development

519. About 478,162 female residents are living in Tacheng Prefecture, accounting for 49.4% of the total population of the prefecture. In the four project city/counties there are 232,973 female residents, accounting for 49.7% of the total population of the city/counties, as presented in Table 3L.1. With the social and economic development of Xinjiang, more and more women including minority women have participated in the social economic activities. In Tacheng project area, most of the urban female has already obtained employment. In the rural area, female in farming and pastoral fields are directly engaged in the production activities.


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L.5 Project Impact Analysis

a. Project Beneficiaries

520. The project beneficiaries include (i) local governments; (ii) relevant government management departments; (iii) relevant companies; and (iv) local residents including ethnic minority, female and poor people. The project will benefit all residents in the DPA. According to project components in FSRs, in the project city/counties, all urban residents and some rural residents in a total of 256,751 people, including about 34,533 poor (13.5% of the total population), 127,268 female residents (49.6% of the total population) and 120,183 ethnic minority people (46.8% of the total population), will benefit directly from better access municipal services and enjoy the improved living environment and business conditions of the project. In addition, all residents in the project city/counties will benefit indirectly from the project by promoting local social and economic development. A total of 0.4689 million residents in Tacheng City, Emin County, Tuoli County and Yumin County, including 0.2576 million ethnic minority (54.9% of the total), 0.2330 million female (49.7% of the total), 0.2366 million rural people (50.5% of the total), will benefit from the project.

b. Employment Generation

521. During the project construction, a total of about 25,727 person-months will be created directly, including about 2,573 of technical and management, 5,691 of skilled labors, and 17,464 of unskilled labors. During the operation, a total of about 237 job positions will be created directly, including 22 technical and management positions, 80 positions of skilled labors, and 132 positions of unskilled labors.

c. Willingness to Pay and Affordability

522. For low-income households, the heating cost per heating season is about CNY 1,320, accounting for 13.7% of income based on MLG. Local government provide MLG families and low income families with heating subsidies according to their real situation, poor families don’t need to pay or pay less than 20% for heating services. Therefore, the heating cost accounts for less than 2.73% of total income of low-income households. In Tacheng City, urban residents should pay CNY 2.5 per month/person, which is accounted for less than 1% of annual income of low-income households. Currently, MLG households should pay half.

d. Impacts on Poverty

523. The project implementation will promote the urban development, and also take the opportunity to improve the living conditions of the poor households. However, the possibility can't be ruled out that the urban environment improvement by the project will substantially increase the living cost, resulting in an even harder living condition of the poor families. Therefore, paying special attention to the poor households in the project area and taking concrete and feasible measures to help them improve their poverty will have a significant meaning to reduce the poverty in Tacheng Prefecture.

e. Impacts on Ethnic Minority Groups

524. The river rehabilitation subproject of Component I of the project will improve living environment and eco-environment condition and flood risks for agriculture production of Axier Township. The environment improvement will attract urban residents to the villages for tourism and leisure, to create new jobs for local people. Axier Township established a Daur Nationality Museum in 2012 to develop the Daur characteristic tourism and increase income of local residents. The project will promote more and more people to visit the Daur Nationality Museum and increase the tourism income.

525. The district heating subproject of Component I of the project will improve the heating services for urban residents who are using different district heating services now by providing a


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steady and better heating source. In addition, some rural residents in the Liaota New Area will use the heating services after they move into new resettlement apartment buildings and will not use household heating stoves. The heating services will improve local air quality by replacing household heating stoves that burn coal or waste straw without any emission control. The heating services will especially benefits for affected women by reducing housework burden, more leisure time and reducing disease incidence of family members. Both ethnic minority and Han residents like to use the district heating services.

526. The solid waste management subproject of Component I of the project will improve public sanitation environment in the developed urban area of Tacheng City and newly developing urban area of the Liaota New Area. Both ethnic minority and Han residents will benefit from better living environment. By introducing the 2-bins system, the subproject will promote municipal garbage sorting based on 3R principle, which will benefit garbage recycle and reuse and saving land used for landfill in Tacheng City.

527. The road network construction subproject of Component I of the project in the Liaota New Area will change the existing rural road system totally. Both local ethnic minority and Han residents will benefit from better road pavement, separate motor vehicle land, non-motor vehicle land and sidewalk, lighting, traffic safety management system, etc of the subproject. The rural residents need to change their traffic behavior to meet requirement for urban road traffic management. There is no difference in traffic behavior for local ethnic minority and Han people.

528. The Emin Component of the project will improve urban traffic and reduce traffic risks. The project urban road networks will link a new area and the existing urban towns together and expand the Emin County. Reconstruction of the existing roads by renewing pavement of both motor land and sidewalk will improve current traffic conditions largely, and benefit business operation on both sides of the roads for both ethnic minority and Han people. Construction of the project new roads will meet the need of urban space development and promote local economic development of the county, which will create more employment opportunity for local residents of both ethnic minority groups and Han.

529. The Tuoli Component will construct an out ring road in the county. The out ring road construction and improvement of traffic management will reduce traffic flow on the existing provincial road and accidents caused by the existing road that pass through the urban area of the county, and improve traffic condition of the county. In addition, the new out ring road will pass near two villages. The villagers’ traffic behavior has to be changed from current traffic on rural roads to traffic on urban primary road, especially for motor bicycle riders as mentioned by local residents. Agricultural machinery and livestock across the road should be considered during the road design and construction.

530. The Yumin Component will construct new roads and rehabilitation of three existing roads in the county. Residents of Yumin Township will benefit from convenient traffic and municipal services, improved living conditions and environments after completion of the project. Convenient traffic and municipal services, improved living conditions and environments will promote urbanization and regional economic growth in the county. Reconstruction of the existing roads by renewing pavement of both motor land and sidewalk will improve current traffic conditions largely, and benefit business operation on both sides of the roads for both ethnic minority and Han people.

f. Impacts on Gender

531. During the FGDs, all participants in Tacheng City agreed that the project construction can improve the living environment to help them save money on household heating stoves and save housework time on daily room clean in winter. Most of women support the solid waste


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management system based on 3R principles. In fact, most of women have sorted household garbage for many years. For the villages near the urban areas, the traffic conditions and environment improvement by the Project will attract urban resident to the village for tourism and leisure, to create new jobs. The participants from the village believe that women can generate the income by opening “Rural Home Inns” and stores.

532. Female residents like to receive employment information and also like to receive relevant skill training to better job positions from the project. Female residents concern traffic safety more than male residents for newly constructed roads. They hope governments can take necessary measures for traffic safety management and ensure traffic safety of local residents, especially during the early stage after commencement of the new road operation.

533. Women (particularly poor women) pay more attention to the heating rates and sanitation management fee than men, as women in most of families control the daily living expenses. They expect the government to maintain the current charges without change, but also agree to the reasonable increase in price by obtaining the resident understanding in advance. The women from poor family hope the government considering price hike not to increase their burden.

L.6 Public Awareness and Action Plans

a. Public Consultation and Awareness Plan

534. Further public consultation and awareness should be conducted during the project implementation. A detail public consultation and awareness plan will be prepared by the TPMO with support of a social development and gender specialist at early stage of the project implementation. The main points to be contained in the plan include as follows.

535. Urban solid waste management. (i) Brief introduction of urban solid waste management procedures, input, cost and impact on environment and communities; (ii) why we need to conduct 3Rs; (iii) how to do 3Rs from households to landfill and solid waste treatment centers; (iv) who play important roles during 3Rs implementation; (v) detail actions to be conducted in local communities and primary and middle schools; (vi) budget for the public awareness; (vii) implementation schedule; and (viii) monitoring and evaluation, and reporting.

536. Traffic safety management. (i) Brief introduction of local traffic safety status in the past three years; (ii) what are included in traffic safety management, and how relevant government departments to manage local traffic safety; (iii) why we need to address traffic safety, difference of urban traffic from rural traffic; (iv) how to improve traffic safety from personal travel behavior, to households and school education; (v) who play important roles in traffic safety management; (vi) detail actions to be conducted in local primary and middle schools, and communities directly affected by the project; (vii) budget for the public awareness; (viii) implementation schedule; and (ix) monitoring and evaluation, and reporting.

537. Project implementation schedule plan. (i) Brief introduction of the project; (ii) project influence scope during construction; (iii) detail civil work construction schedule; (iv) detail measures for residents traffic and business operation, safety and environment mitigation; (v) appeal mechanism and detail contact information; and (vi) residence organization of contractors, supervisors, and implementation unit.

b. Social Action Plan

538. A social action plan (SAP) is prepared to ensure that important social and poverty issues are addressed during project implementation, which is designed to enhance project benefits and mitigate any likely negative impacts. Any adverse impacts need to be avoided or mitigated, and project benefits should be inclusive of vulnerable groups (i.e., the poor, women, and others). The SAP emphasizes social inclusion and equitable access to the new economy, and


178

gender-specific measures are also included in the resettlement plans, and gender action plan (GAP).

539. The SAP will be implemented by the four PIUs with support of a social development and gender specialist who will be one of members of a consulting team for the project management. The PMOs will supervise the SAP implementation.

c. Gender Action Plan

540. A total of 127,268 female residents (49.6% of the total population) will benefit directly from better access municipal services and enjoy the improved living environment and business conditions of the project. Extensive consultation and gender analysis was conducted during the poverty and social assessment survey. The assessment indicated that women strongly support the project and are affected by currently unsatisfied heating services, dirty solid waste collection environment, and poor mobility and access. Women are generally burdened with family and household responsibility, and are employed in low-paying jobs. Improving heating services by providing a stable district heating will benefit women by relieving women’s time in running household heating stoves and enjoying better living conditions. Improving community waste collection environment by community-based 3R waste sorting with 2 bin system will benefit women by reducing illness and associated time and cost burdens. Improving transportation by establishing road network and public transport, pedestrian and non-motorized transport will benefit women by increasing access, mobility and safety; reducing time and cost burdens, and caring family daily life efficiently. Women will benefit by employment priority during the project implementation and operation. Women’s participation in public hearings, 3R waste sorting program design, public transport service and road safety program, and relevant public awareness activities will strengthen effective project implementation and sustainable development.

541. A GAP is prepared during the PPTA and will be implemented during the project implementation.

d. Ethnic Minority Development Plan

542. The project is categorized as B for the indigenous peoples (ethnic minorities) safeguard. A total of 831 ethnic minority persons from 224 households will be affected by land acquisition and resettlement (LAR). It is accounted for 34.8% of the whole affected persons. All affected ethnic minority people will be compensated and resettled. Measures for their income recovery are prepared in RPs and will be implemented and monitored to ensure better living conditions after LAR. About 120,183 ethnic minority people (46.8% of the total population) in directly affected project areas will benefit directly from better access municipal services and enjoy the improved living environment and business conditions of the project. An ethnic minority impact assessment is prepared for the project in this PSA and a standalone document.

543. A standalone ethnic minority development plan (EMDP) doesn’t prepare for the project. However, main features and actions benefited ethnic minority people are included into the SAP.

L.7 Recommendations

544. Recommendations are suggested as follows.

(i) The TPMO, PIUs and relevant government agencies should read the PSA carefully, and confirm actions suggested in the SAP and GAP.

(ii) The SAP and GAP will be implemented during the project implementation. The PIUs will be responsible for the implementation, while the TPMO will be responsible for


179

supervision of the implementation.

(iii) A social development and gender specialist (SDGS) need to be recruited. He/she will be one of members of a consulting team that assist the PIUs and TPMO in the project implementation and management. The specialist will help the PIUs to prepare a detail plan for the SAP and GAP implementation.

(iv) A detail public consultation and awareness plan should be prepared by the TPMO with support of the SDGS at early stage of the project implementation. The main points to be contained in the plan are addressed in this PSA.


180

APPENDIXES


App A - 1

Appendix A

Design and Monitoring Framework


App A - 2

Design and Monitoring Framework

Design Summary Performance Targets and Indicators with Baselines

Data Sources and Reporting

Mechanisms

Assumptions and Risks

Impact

Improved economic growth, border trade capacity and living conditions in the project border cities and counties

By 2024 (baseline 2014)

Average GDP per capita annual

growth rates are maintained at

10% from 36,550 and average

urban resident annual per

capita disposable income is

increased by 8% from CNY

17,921 in Tacheng Prefecture

(2012 data)

Tacheng Prefecture border

trade average annual increase

by 10% from CNY 448 million

(2012)

Urban resident satisfactory rate

to the urban infrastructure and

municipal services increase

from 70% (2013) to 85%

Tacheng, Emin,

Tuoli and Yumin

statistic yearbooks

XUAR and Tacheng

Prefecture statistical

yearbooks

Survey reports from

the statistic bureaus

from Tacheng,

Emin, Tuoli and

Yumin

Assumptions

Central government and provincial government continue investments and support to Tacheng Prefecture and Baktu Port development The cities and counties master plans of Tacheng, Emin, Tuoli and Yumin are implemented effectively Regional corporation with the neighboring countries maintained and strengthened

Risks

Insufficient funds to

support implementation

of project cities and

counties master plans

Outcome

Improved urban

infrastructures,

municipal services

and border trade

capacity in project

border cities and

counties


Annual probability of seasonal flooding reduced to 2% and the protected area is increased by 17.0 km

2 in Tacheng City

Fatality rate per 10,000 person reduces 5% from 5.07 (XUAR average) in project cities and counties Improved urban areas 14.7 km

2

in LTND, 5.1 km2 in Emin, 7.0

km2 in Tuoli, and 4.5 km

2 in

Yumin 20% of the MSW or 20 ton/day in Tacheng City are sorted and recycled for reuse 1280 jobs will be created during

construction and 237 jobs will

be created during operation, of

which 30% are women and

30% are minorities

Independent

professional

verification of flood

protection standards

Statistics published

annually by XUAR

Statistics Office and

Tacheng Prefecture

statistical records

Statistic reports from

Tacheng, Emin,

Tuoli and Yumin

Project completion

report (PCR)

PPMS Report

Assumptions

Government

commitment and support

for environmentally

sustainable urban

development

Risks

Inadequate management

capacity to maintain the

pace of the development

The additional

requirements on

procurement,

management, social and

safeguard monitoring

may take longer time to

process due to the weak

capacity of EA/IAs in

dealing with foreign

funded projects.


App A - 3



Mechanisms


Outputs

1. Improved urban

infrastructures and

municipal services

in Tacheng City


15.2 km of Kalanggur River

rehabilitated and 00.0 ha of

tree-planting completed

29.5 km of roads, six 20m span

bridges and 14.1 km of

rehabilitated alleys put into use

47.7 km of water supply pipe,

48.8 km of sewer pipe and 40.6

km of primary heating pipe are

operational

Equipment and systems for

MSW direct collection, sorting

and disposal are operational

Upgraded monitoring, cleaning

and MSW equipment in Baktu

Land Port put into use

Tacheng City landscaping and

MSW workforce includes at

least 30% women

Project completion and progress reports

Assumptions

Project counterpart fund is appropriated timely

The project is properly managed and monitored to ensure final implementation is completed in compliance of contract documents.

Risk

Land acquisition approvals and implementation are delayed

2. Improved urban

infrastructures and

municipal services

in Emin County

10.1 km of rehabilitated and

newly constructed urban roads,

7.7 km of water supply pipe and

8.8 km sewer pipe are put into

use


3. Improved urban

infrastructures and

municipal services

in Tuoli County

14.1 km of newly constructed

urban road and upgraded

maintenance equipment are put

into use


4. Improved urban

infrastructures and

municipal services

in Yumin County

9.7 km of newly constructed

urban road and upgraded

maintenance and MSW

equipment are put into use


5. Improved

Capacity and

Institutional

Arrangement

Staff are trained and systems

are in place for effective

functioning of executive and

implementing agencies

Community SWM awareness

and educational campaigns with

at least 30% participation are

completed

Border trade development


Assumption

Project financing is provided on time

Staff of relevant bureaus, project O&M entities, and public and related stakeholders participate in capacity building trainings

Risk


App A - 4



Mechanisms


strategy developed

Traffic safety audit completed

and public traffic safety

awareness carried out.

Policy and operational

programs for urban transport

and land port management are

completed

Recruitment of the loan implementation consultant is delayed

Activities with Milestones Inputs

1 Tacheng Subproject 1.1 Preliminary design by Q4 2014 1.2 Bidding document preparation by Q4 2014 1.3 Construction drawing by Q1 2015 1.4 Land acquisition and resettlement by Q1 2015 1.5 Road, bridge and associated facilities by Q3 2019 1.6 Baktu equipment upgrade by Q2 2015 1.7 Alley rehabilitation by Q3, 2015 1.8 Kalanggur River Rehabilitation Q3 2019 1.9 MSW improvement by Q4 2016 2. Emin Subproject 2.1 Preliminary design by Q4 2014 2.2 Bidding document preparation by Q4 2014 2.3 Construction drawings by Q1 2015 2.4 Land acquisition and resettlement by Q1 2015 2.5 Roads, bridges and utilities construction by Q4 2018 3. Tuoli Subproject 3.1 Preliminary design by Q4 2014 3.2 Bidding document preparation by Q1 2015 3.3 Construction drawings by Q1 2015 3.4 Land acquisition and resettlement by Q1 2015 3.5 Road construction by Q4 2018 3.7 Maintenance equipment upgrade by Q4 2017 4. Yumin Subproject 4.1 Preliminary design by Q4 2014 4.2 Bidding document preparation by Q4 2014 4.3 Construction drawings by Q1 2015 4.4 Land acquisition and resettlement by Q1 2015 4.5 Roads and bridge construction by Q4 2018 4.6 Maintenance and MSW equipment by Q4 2017 5. Capacity development and institutional arrangement 5.1 Recruit and mobilize consultants by Q1 2015 5.2 Establish project management system for EA, IAs, and

PIUs set up by Q2 2015 5.3 Establish PPMS for EA and IAs by Q2 2015 5.4 Establish RP monitoring system by Q2 2015 5.5 Implementation of capacity building by Q4 2019 5.6 Implementation of EMP, RPs, GAP and SAP ny Q4 2019 5.7 Monitor implementation of EMP, RPs, SAP, and GAP until

Q4 2019

($ million)

ADB loan from ordinary

capital resource: 150.00

Base cost: 142.48

Contigencies: 0.00

Financial charges during

implementation: 7.52

Tacheng Municipal

Government 112.73

Base cost: 89.79

Contigencies: 22.95



Emin County Government 21.61

Base cost: 18.25

Contigencies: 3.35



Tuoli County Government 10.65

Base cost: 7.63

Contigencies: 3.02



Yumin County Government 7.89

Base cost: 5.75

Contigencies: 2.14



Total = 302.87


App A - 5

ADB = Asian Development Bank, EA = executing agency, EMP = environment management plan, GAP = gender action plan, ha = hectare, IA = implementing agency, km = kilometer, m

3/d = cubic meter per day, O&M = operation and

maintenance, PIU = project implementation unit, PPMS = project performance management system, REMDP = resettlement and ethnic minority development plan, RP = resettlement plan, SAP = social action plan. a = A mu is a Chinese unit of measurement (1 mu = 666.67 square meters).

Numbers may not sum precisely because of rounding. Source: Asian Development Bank.


Appendix B

Project Implementation Institutional Arrangement

INSTITUTIONAL ARRANGEMENT

Executing Agency

Tacheng Prefecture Government

TPPMO

(Under TPDRC)

Leading Group

Chair: Deputy Governor Member: TPDRC, TPFB, TPHCB, TPEPB,

TCMG, LTND, EMCG, TLCG, YMCG

LTND PIU 1 (Road, MSW )

Tacheng City LG Chair: Deputy Mayor

Member: TCDRC, TCFB, TCHCB, TCEPB, TCSLB,

LTND

Emin LG Chair: Vice County

Commissioner Member: EMDRC, EMFB, EMHCB, EMEPB, EMSLB

Emin PMO (Under EMDRC)

Tacheng City PMO (Under TCDRC)

IA 1 Tacheng Municipal Gov.

IA 2 Emin County Gov.

EMHCB PIU (Road & Infrastructures)

TCHCB PIU 3 (Heat, Allay)

WRB PIU 2 (River Rehab)

Tuoli LG Chair: Vice County

Commissioner Member: TLDRC, TLFB, TLHCB, TLEPB, TLSLB

Tuoli PMO (Under TLDRC)

IA 3 Tuoli County Government

TLHCB PIU (Road & Infrastructures)

Yumin LG Chair: Vice County

Commissioner Member: YMDRC, YMFB, YMHCB, YMEPB, YMSLB

Yumin PMO (Under YMDRC)

IA 4 Yumin County Gov.

YMHCB PIU (Road & Infrastructures)

Asia Development Bank

Xinjiang Uygur Autonomous Region Xinjiang PMO

Ministry of Finance

Implementation Consultants

Design Institute

LG = Leading Group, TPFB = Tacheng Prefecture Financial Bureau, TPDRC = Tacheng Prefecture Development and Reform Commission; TPHCB = Tacheng Prefecture Housing Construction Bureau, TPEPB = Tacheng Prefecture Environmental Protection Bureau, TCMG = Tacheng Municipal Government, LTND = Liaota New District, EMCG = Emin County Government, TLCG = Tuoli County Government, YMCG = Yumin County Government, PMO = Project Management Office, PIU = Project Implementation Unit, TCHCB = Tacheng Housing and Construction Bureau, TCDRC = Tacheng Development and Reform Commission, TCFB = Tacheng Finance Bureau, TCEPB = Tacheng Environmental Protection Bureau, TCSLB = Tacheng State Land Bureau, EMHCB = Emin Housing and Construction Bureau, EMDRC = Emin Development and Reform Commission, EMFB = Emin Finance Bureau, EMEPB = Emin Environmental Protection Bureau, EMSLB = Emin State Land Bureau, , TLHCB = Tuoli Housing and Construction Bureau, TLDRC = Tuoli Development and Reform Commission, TLFB = Tuoli Finance Bureau, TLEPB = Tuoli Environmental Protection Bureau, TLSLB = Tuoli State Land Bureau, YMHCB = Yumin Housing and Construction Bureau, YMDRC = Yumin Development and Reform Commission, YMFB = Yumin Finance Bureau, YMEPB = Yumin Environmental Protection Bureau, YMSLB = Yumin State Land Bureau EMP = Environmental Management Plan, RP = Resettlement Plan, Gov = Government, MOF = Ministry of Finance, FD = Financial Department


App C - 1

Appendix C

Project Implementation Contractual Arrangement


App C - 2

INSTITUTIONAL & CONTRACTUAL ARRANGEMENT

EA = Executive Agency, PMO = Project Management Office, IA = Implementing Agency, PIU = Project Implementation Unit, MSM = Integrate Solid Waste Management, TPDRC = Tacheng Prefecture Development and Reform Committee, TCDRC = Tacheng DRC, EMDRC = Emin DRC, TLDRC = Tuoli DRC,YMDRC = Yumin DRC, TCHCB = Tacheng Housing and Construction Bureau, EMHCB = Emin HCB, TLHCB = Tuoli HCB. YMHCB = Yumin HCB, TCWRB =Tacheng Water Resource Bureau, LTND = Liaota New District

Asian Development Bank

Tacheng Prefecture Government (EA) (PMO - TPDRC)

PIU 4 - EMHCB (Roads)

Implementation Consultants

Supervision Company

Contractors/Suppliers

Supervision Company


PIU 5 - TLHCB (Roads)

PIU 1 - LTND (Roads)

Design Institute

Supervision Company


IA 1 – Tacheng Municipal Government

(IA1 PMO - TCDRC)

IA 2 - Emin County Government

(IA2 PMO - EMDRC)

Project implementation Agreement

Project Agreement

Project Agreement (typ)

Supervision Company


PIU 2 - TCWRB (River Rehab)

Supervision Company


PIU 3 - TCHCB (MSW, Allays)

IA 4 - Yumin County Government

(IA4 PMO - YMDRC)

IA 3 - Tuoli County Government

(IA3 PMO - TLDRC)

PIU 6 - YMHCB (Roads)

Supervision Company


Co

ntr

act

(ty

p)


App D - 1

Appendix D

Fund Flow Mechanism


App D - 2

FUND FLOW DIAGRAM

LEGEND: XUAR = Xinjiang Uygur Autonomous Region Government (Govt), TPG = Tacheng Prefecture Govt, TCMG = Tacheng City Municipal Govt, EMCG = Emin County Govt, TLCG = Tuoli County Govt, YMCG = Yumin County Govt, MSW = Municipal Solid Waste, TCHCB = Tacheng Housing and Construction Bureau (HCB), EMHCB = Emin HCB, YMHCB = Yumin HCB, TCWRB = Tacheng Water Recourse Bureau, LTND = Liaota New District Lending/onlending Loan repayment Disbursement/reimbursement Disbursement application

YMHCB (Roads)

Ministry of Finance (On behalf of PRC)

Tacheng Prefecture Financial Bureau (On behalf of TPG)

Asian Development Bank (ADB)

Loan

Direct payment to contractors, consultants

and suppliers

Relending Re

imbu

rsem

ent/

re

ple

nis

hm

en

t o

f im

pre

st a

cco

unt

Imprest account payment

Yumin Financial Bureau (On behalf of YMCG)

Contractors, Suppliers,

Consultants, Affected People

Tacheng Financial Bureau (On behalf of TCMG)



LTND (Roads)

Onlending



TCWRB (River Rehab)

Loan Payment (Typical) XUAR Financial Dept (On behalf of XUAR)

Imprest Account



TCHCB (MSW, Allays)



EMHCB (Roads)



TLHCB (Roads)

Emin Financial Bureau (On behalf of EMCG)

Tuoli Financial Bureau (On behalf of TLCG)

Onlending

Onlending


App E - 1

Appendix E

Problem Tree


App E - 2

PROBLEM TREE

LEGENDS: MSW = Municipal Solid Waste, NMT = Non Motorized Traffic

Lack of Private

Investment

Limited Revenue

Lack of Technical

Knowledge

Incidence of Extreme Weather

Climate Change

Ecosystems Degraded

Urban Rural Migration

Population Growth

Urbanization Demands

Urban Traffic

Congestion

RR & Hwy to Tacheng in

Construction

Degraded Urban

Environment

Lack of Management

Skill

Weak Institutional

Capacity

Lack of investment

Narrow Sidewalks

Insufficient Municipal Services

Secondary Pollution

MSW High % Construction

Waste

Street Corner MSW Collection

Baktu Lack Infrastructures

Baktu in Upgrading

Insufficient Public

Transport

DEVELOPMENT PROBLEM Inadequate and Poor Urban Infrastructures & Municipal Services, Deteriorating

Urban Living Condition, and Constrains on Border Trade Development

Unpaved Roads for

Allays

Unsustainable Urban

Expansion

Environmental Degradation & Pollution Poor Quality of Life in Urban Areas Slow Economic & Employment Growth Decreased City Competitiveness

EFFECT Poor Viability, Resource Efficiency and Quality of Life in

Tacheng Border Cities and Towns

Slow Urbanization and Economic Development

Poor Urban Infrastructure &

Municipal Services

Pollution due to Poor MSW &

Municipal Services

Slow Baktu Border Trade Development

Lack of Public Transport &

NMT Facilities

Flooding at Kalanggur

River

Poor Municipal Government Management

Poor Living Condition in

Existing Allays

CAUSE

Lack NMT Lanes

Constrains on Border

Trade

Lack of Climate Resilient

Infrastructures

Lack of Urban Green Area

River Flooding

Flooding Risk & Lack of

Open Space


App F - 1

Appendix F

Sector Analysis


App F - 2

SECTOR ANALYSIS

1. Introduction 1. The sector analysis outlines: (i) the People’s Republic of China (PRC) government urban development policies and targets; (ii) the Asian Development Bank (ADB) urban development policies and programs; (iii) the current urban development situation in PRC and Xinkiang Uygur Autonomous Region; (iv) urban infrastructures, municipal services. and solid waste management in PRC and Xinjiang Uygur Autonomous Region; and (v) the current urban infrastructures, municipal services, solid waste management in Tacheng, Ermin, Tuoli and Yumin. 2. Sector Performance, Problem, and Opportunities

A. Urban Development

2. In recent decades, PRC has experienced annual urban population growth at rate of around 1.5-2% per year. Urbanization has been a key drive of the economic growth that has lifted millions out of poverty. By 2013, the urban population was 713.1 million or about 53.73% of the total population of 1,360.72 million1 with the annual growth rate of 1.16%. The urban population resides in 1,510 cities, of which 288 are prefecture cities or direct municipalities with over 80% of them having population over 500,000, and 19,683 towns (2012). Two-thirds of the urban population growth is attributable to rural-to-urban migration, which has taken different patterns, but has predominantly been rural inland to urban coast. By 2015, the total population is projected to reach 1.4 billion and the urban population will surpass the rural population, exceeding by 700 million. Continuing urbanization and sustained economic growth in coming years will present significant opportunities and challenges for sustainable urban development and poverty reduction. Constraints include water scarcity and pollution, air pollution, waste management, energy demand, competition for land and resources, and economic and social pressures.

3. Rapid growth of urbanization has put great pressure to each municipal government to upgrade the existing and construct new urban infrastructure to facilitate the needs of the fast growing urban population. The municipal governments have to upgrade and build new urban roads, water supply and sewerage infrastructure, district heating, power supply, information and communication, and other relevant municipal facilities, while minimize the impact to the environment as well as building the sustainable and environmental friendly urban areas. Due to high population density in the exiting cities, many municipalities have to expand their urban areas by developing new and expanding the existing urban districts. It is critical to develop the new urban areas according to high urban development standards, using modern urban development technologies and policies and considering urban transport, living environment, sustainable development, and environmental protection.

4. Xinjiang Uygur Autonomous Region is one of the less developed provinces in PRC located in the far northwest of China. The area accounts for about one sixth of the total country area and its 22.6 million population is only about 1.7% of the total population. The large area is mainly consisted of mountains and deserts, and the local residents live along mountains where water from snow melting could support the living. Due to the harsh environmental condition and underdeveloped transportation system, the area is less developed in comparison to the other cities in central and coastal areas. The pace of urbanization has been picking up in the last ten years, which is about 10 to 20 years lagging behind of the other more developed areas.

1 PRC 2013 Statistic Report, National Bureau of Statistic of China


App F - 3

5. Xinjiang is located between Asia and Europe and it is the gateway to connect Europe to Asia coastal area for trade development. The trade route can be traced back over 200 years ago, referred as Silk Road, and it become the new focus of regional trade and economic development by PRC government as well as the countries in the area such as Kazakhstan, Kyrgyzstan, Russia, Mongolia, etc. The PRC government has made a strategy to develop the Silk Road Economic Development Area to emphasize the regional cooperation and trade development along the historical silk road, and to strengthen the link between Asia and Europe.

6. In order to help the economic development and to improve the living condition in Xinxiang, the central government has made several programs aiming to help local economic development. Most noticeable are the Western Big Development and the Helping Xinjiang Development. More resources of investment, high level managerial people, skilled worker, etc. are moving in Xinjiang to help the local development. Most of major cities and municipalities receive direct assistance in there urban development.

7. Tacheng Prefecture is located at the far north of Xinjiang at the border with Kazakhstan and other central Asia countries. It is a remote and less developed area. There is no railroad and expressway connection to Urumqi, the provincial capital, and only regular low standard highways are available. The travel time from Tacheng to Urumqi can take up to 7 to 8 hours by cars. The urban development is much lagging behind in comparison to cities in other part of the countries. Tacheng is an important border trade center both in history and at the present time. It was an important stop in the historical Silk Road, and the border trade Kazakhstan and Russia was very active from time to time. The most recent border trade booming was in 1990's when PRC started its economic reform and open door policy. At the present, Xinjiang and local government are investing heavily in regional transportation for railroad and expressway to connect Tacheng with Urumqi directly and in updating Baktu Port in Tacheng, which is one of the seven border ports with Kazakhstan. The border trade could become one of the major economic development driving forces in the near future.

B. Urban Transport

8. The PRC’s rapid urbanization presents significant challenges - roads, bridges, water supply, sewerage and other municipal infrastructure and facilities are urgently in demand. Moreover, associated urban transport management systems including urban road, transport, and traffic planning and management, infrastructure development, operation and maintenance are urgently required. Growing vehicle fleet, increasing road accidents, and the lack of parking management compound urban transport sector challenges. Therefore, the PRC government has prioritized the development of urban infrastructure and systems, including water supply and sewerage, public transport, solid waste and environmental improvement. However, due to lack of expertise and inadequate planning and engineering, there are common problems associated with the urban transport in many cities in PRC, especially for the small and medium size cities. Some of the representative problems and challenges include: 9. Urban Transport Planning – In PRC, the urban transport planning is usually as a part of the city development master plan. The current planning system in PRC was adopted from the old planned economic system. A municipality will hire a planning design institute to develop a city development master plan, including the transport planning, and the master plan will be submitted to the upper authority and the people’s congress for approval. Once the planning is approved, it becomes a legal document to be used for urban development. The approved planning will stay in its original shape, in some cases the planning are over five years old. In many cities, the urban transport planning is out of date due to the rapid urban development, and the planning is lack of details such as road network analysis and road function analysis. The urban transport planning shall be a dynamic system to reflect the rapid development needs


App F - 4

and urban expansion. The planning system shall include a long term transport planning as well as a short term planning and all urban transport components such as motor vehicle traffic, non-motorized transport, public transport, subway and rail traffic, pedestrian and bicycle traffic, etc. shall be integrated to have a people centered urban transport system.

10. Road Safety – the road safety, which has always been a concern in the urban development sector. Due to the fast urban development, more attentions have been paid to build new roads, bridges and other infrastructures. The traffic safety, in the other hand, has not been put as the top priority in urban transport development. Urban traffic safety is an complicated issue involving engineering design, public safety awareness, traffic management and control, traffic safety reinforcement, etc. To improve the road safety, the municipalities need to (i) conduct road safety education for different groups of urban population; (ii) design urban transport infrastructure with road safety considerations, and (iii) enforce traffic safety regulations. The absence of road safety considerations while designing transport infrastructure, general road safety education, and traffic safety enforcement, are the main causes of the high incidence of road accidents.

11. Public Transportation – An efficient and sustainable public transportation and a well planned non-motorized transportation (NMT) system are among the most effective urban transport tools to easy urban traffic congestion. In early stage of the urban development in PRC, the authority has put too much emphasis on building new urban roads and lack of the development of public transportation system. As the results, many big cities in PRC are experiencing bad traffic congestion because more people use private cars for commute, less people use public transportation, and the growth of automobiles is out pace of the urban road construction. In recent years, the municipal governments in big cities have started to build subways, which are proved to be an effective method to solve urban transport problem. However, in the medium and smaller cities where there are no subways, the public bus system remains as the main urban transport system. It is important to emphasis public bus development in these cities. Public transportation has better capacity to move people around cities and is more environmental friendly. A well-developed public transportation planning is a superior response to urban transportation challenges.

12. Pedestrian, Mon Motorized Traffic (NMT) and Bicycle Traffic – The mobility of pedestrians and bicycles is declining as motor vehicles are progressively dominating roads and as trip distances grow in line with urban expansion. However, NMT remains one of the major travel modalities in smaller and more-remote cities. As cities grow, safety starts worsening due to limited availability and obstruction of pedestrian crossings, encroachment of moving and parked motor vehicles on NMT lanes, and cyclists being forced to operate in dangerous mixed traffic environment. Nevertheless, NMT will continue to be an essential element of cities’ transport systems. Integrated networks of protected or separated bicycle lanes are needed, together with bicycle parking facilities at bus stations. For pedestrians, the road network must be made safer with appropriate sidewalks, mid-block crossings, and pedestrian signals. The municipalities need to develop and enforce respective policies to create more attractive streetscape, as well as to make urban blocks either smaller or prioritize NMT over motorized traffic.

13. Asset Management – The urban infrastructure management and maintenance system is relatively primitive in comparison to the developed countries. There are no systematic urban infrastructure asset management systems in the majority of cities in PRC. There are several pilot programs in some of the larger metropolitan areas, but they are more or less still in the testing and demonstration stage without actual implementation. The urban infrastructure operation and management systems, such as bridge and roadway management systems, are the mandated requirement in the US and other developed countries, but not yet in PRC. For example, in the US, all bridges with span over 6 m (20 feet) need to be inspected every two years for their safety and serviceability. The recent incidents of bridge collapses in PRC could


App F - 5

be avoided if such management system is implemented and the bridges are inspected for their safety periodically since all these bridge collapses are clearly resulting from bridge elements deteriorations and lack of the necessary maintenance. Implementation of such an infrastructure management system, also referred as asset management, becomes more critical today than ever before.

14. Road Maintenance – The prevalent road maintenance approach involves a periodic maintenance and rehabilitation program. The existing road networks in most small and medium PRC cities are poorly maintained due to inefficient management of maintenance systems, and inadequate allocations of financial, technical, and human resources. Municipal governments fail to allocate sufficient budget resources to finance routine road maintenance, and there are no effective systems to help municipal governments plan and conduct maintenance more effectively.

15. Urban Parking Management – Parking in most small and medium PRC cities is poorly planned and regulated, which results in illegal parking on sidewalks and in NMT lanes, creating obstacles to NMT, and reducing the attractiveness of the streetscape. In conjunction with NMT planning, comprehensive parking management plans and policies should be developed as an integral part of city master plans. Moreover, pricing systems for parking management have significant potential as demand-management tools.

16. The urban transport has been the area that lacked adequate attention of municipalities during the rapid urban development process. The problems exist in all stages ranging from planning, engineering design, construction to the management and maintenance. In the second and third tier cities in the less developed areas, the problem is even worse. The major effort of urban infrastructure development is focused on building roads, bridges, water and sewer lines, with less effort on achieving and sustaining the urban transport efficiency, safety, and longer service life. Common problems include inadequate facilities for public transport and NMT, poor traffic management and traffic safety, inadequate infrastructure management and maintenance, inadequate education program and public awareness for traffic safety and traffic regulation, etc. C. Water Supply and Wastewater 17. For years, water demand has been outstripping available water supply in the People’s Republic of China (PRC) due to its rapid economic development, increasing urbanization, and large growth in population. The total annual renewable water resources of PRC amount to about 2,841,000 m3, the sixth largest in the world. The annual per capita freshwater resources of PRC, however – about 2,156 m3 in 2007 – are among the lowest for a major country2. The scarcity of water in China is aggravated by extensive pollution from industrial, domestic, and agricultural sources. Over the past three decades, despite great efforts to control it, water pollution has increased, spreading from inland water bodies to inshore coastal areas, and from surface waters to groundwater resources. The lack of adequate sanitation provisions and robust wastewater and waste management has contributed to deteriorating water quality. In addition, lack of access to treated drinking water and sanitation provisions, and poor hygiene practices, remain a contributing factor to ill-health, particularly among children and elderly. Total wastewater discharges have steadily risen to 75 billion tons in 2010. Nonpoint pollution (NPP), primarily related to agricultural activities such as fertilizer and pesticide run-off from farmland and infiltration of livestock waste, has long been out of control and is becoming an increasingly important source. 18. Inadequate water supply facilities in many areas of China contribute to lower water supply coverage, poor drinking water quality and non-revenue Water NRW losses. With regard

2 Addressing China’s Water Scarcity, World Bank, 2009


App F - 6

to the applicable requirements on salinity standard of drinking water, there is a need for upgrading water purifying facilities of water supply plants WSP and treatment technologies to ensure safe water supply. Due to that fact that a great number of pipelines are under service life exceeding 50 years and built with lower standard materials, the water quality rate in the distribution network is lower than water quality within WSP. The higher leakage ratio has also contributed to cause for network broken. During the last 3 decades, the fast urbanization process has installed a lot water distribution pipe network in the new and existing urban area, especially in the larger cities. As a result, the average coverage rate of water supply in the big cities, counties level and township level has increased to 90%, 79% in and 62% respectively in 20103. 19. Along with the rapid urban development, the municipal service capacities and facilities have been grown rapidly. As indicated in Table 1, from 2000 to 2012, the urban water supply capacity in PRC has increased from 218 to 272 million m3/d with an average annual increase of 1.86%; the water supply pipe length has increased from 254,561 km to 581,872 km, and the urban water supply coverage has been increased and maintained at 97% for the last 3 years.

Table 1 Water Supply Capacity and Facilities of PRC

Year

Water Supply

Capacity (mil m

3/d)

Water Supply

Pipe Length

(km)

Annual Water Supply (mil m

3)

Annual Domestic

Water Supply (mil m

3)

Average Daily

Water Use (Liter)

Population with Access

to Water Supply (mil)

Urban Water

Coverage (%)

2000 218.42 254561 46,898 20,000 220 249 96%

2005 247.20 379332 50,206 24,374 204 327 91%

2006 269.62 430397 54,048 22,203 188 323 87%

2007 257.08 447229 50,195 22,637 178 348 94%

2008 266.04 480084 50,008 22,820 178 351 95%

2009 270.47 510399 49,675 23,341 177 362 96%

2010 276.02 539778 50,782 23,875 171 382 97%

2011 266.69 573774 51,343 24,765 171 397 97%

2012 271.77 591872 52,303 25,724 171.8 410 97.2%

Sources: China Statistics Yearbooks 2001, 2006 to 2012.

20. The urban wastewater treatment facilities and treatment capacity have increased rapidly along with the fast urbanization development. As shown in Table 2 of the summary of wastewater treatment facilities in PRC, from 2000 to 2012, the daily wastewater treatment capacity has been increased steadily from 47 to 137 million m3/day with an average annual growth rate of 9.9%; the total sanitary sewer pipe line length has increased from 141,758 to 439,080 km with an average annual growth rate of 10.2%.

Table 2 Wastewater Treatment Facilities and Capacities

Year Total

Domestic Wastewater

Wastewater Treatment

Facility

Sanitary Sewer Pipe

Length

Urban Drainage

Pipe Density

Daily Wastewater Treatment

3 . of The national urban 12

th FYP and the 2020 Vision of Water supply facilities renovation and construction, The

Ministry of housing and urban construction jointly with the State Development and Reform Commission, 2012.


App F - 7

Discharge (mil tons)

(Each) (km) (km/km2) Capacity

(mil m3/d)

2000 - - 141,758 6.30 47.41

2005 28,140 69,231 241,056 7.40 79,90

2006 29,663 75,830 261,379 7.80 97.34

2007 31,020 78,210 291,933 8.20 103.37

2008 33,003 78,725 315,220 8.70 111.73

2009 35,470 77,018 343,892 9.00 121.84

2010 37,978 80,332 369,553 9.00 133.93

2011 - - 414,074 9.50 133,04

2012 439,080 136.93


21. The national standards for municipal service have adopted a mandatory requirement for using the separated stormwater and sanitary sewer system for all new urban areas. However, due to the long history of using combined sewer system in the urban area or lack of sewer piping network, there are many urban areas, especially in the small and medium size cities in the less developed areas, still without sanitary sewer service connections or using the old combined sewer system. The sanitary sewer service coverage in some small and medium cities could be only at about 50-60%. To improve the sanitary service to the existing urban area where without adequate sewer coverage is an important step to improve the living environment in the urban areas.

22. In comparison to designing roads, bridges and other important urban infrastructures, the engineering and design of the stormwater and municipal service facilities is considered as the secondary facilities without necessary emphasis in PRC. Recent incidents of flooding in many major cities in PRC are indications of inadequate engineering and management. For the stormwater, the current design method is simply to collect the street runoffs and discharge them to the nearby river or water body directly. This design method has been abandoned long time ago in the developed countries due to its negative impact to environment and ecology associated with flooding, erosion, wild life, pollution, etc. For an area in its natural condition before any urban development, the earth surface is exposed with natural grasses and trees. When a rainfall starts, the rainwater falling on the ground will be partially infiltrated into the ground to charge the underground water and partially flowed toward lower ground of ditches and channels and reached rivers eventually. During the water movement, the vegetation and ground surface slows the flow of the rainwater and filter the pollutants in the surface runoff. As the result, the surface runoff that reaches the river and water body is cleaned and delayed. When the area is developed into urban area with roads and concrete or other impermeable material covers most of the area, the rainwater will be collected by scuppers and stormwater piping network and discharged into the river and water body. Since there is no grass or natural ground surface to filter and slow down the rain waters, the surface runoffs with pollutants collected from the road and concrete surface will discharged into the river system with a much faster speed. If more and more urban areas are developed, there will be more and more urban runoffs from all developed urban areas dumped to the river system at a much faster speed and big quantity in comparison to its original natural condition. If the rainfall is big enough, flooding will occur in the downstream of the water. It can be noted in China that an area that was in drought condition a few days ago could turn into flooding condition in a very short period of time. This is a very obvious indication that the natural ecological condition of the area has been


App F - 8

damaged due to the rapid urban development, and the ecological environment cannot effectively regulate the rainfall runoffs any more. It has been noted that more and more people has realize the problems and the impertinence of stormwater management for environmental and ecological protection. It is anticipated that the proper stormwater management practices that have been successfully used in the developed countries for the last 50 or more years will be implemented in PRC in the near future.

D. Municipal Solid Waste

• International MSW Practices 23. The municipal solid waste management practices vary greatly around the world. However, in principle there are fundamentally three types of treatment methods: i) sanitary landfill; ii) incineration; and iii) composting. The percentages among three treatment methods in some of the countries are shown in the Table 3. As shown in the table for the developed countries, where the MSW sorting and recycling are more advanced, the percentages for landfill is relatively low (55%), while those for incineration and composting are relatively higher at about 36% and 9%, respectively. In PRC, the percentages among landfill, incineration and composting are 80%, 15% and 2%, respectively. Table 3 Percentages of MSW Treatment among Landfill, Composting and Incineration

Country Landfill Compost Incineration

America 65 10 25

Japan 18 4 78

Germany 72 3 25

England 85 0 15

France 50 20 30

Belgium 62 9 29

Switzerland 15 14 70

Denmark 32 2 66

Austria 65 11 24

Sweden 75 2 23

Australia 62 11 24

Average in developed countries 55 9 36

24. The landfill is still one of the main MSW treatment methods even in the developed countries. However, in the countries where the land resources are limited, the percentage of MSW treatment by landfill is quite low. For example, Japan only has about 18% of the MSW in landfill. The method of incineration was started by Germany in 1896, which becomes one of the major MSW treatment methods in the developed countries, especially for those countries with limited land resources. However, the environmental impact from the incineration, specifically the emission of Dioxin, has caused many developed countries very cautious in using incineration. In 1996, the government shutdown 52 incineration plants in the Big Lake area in concern of environmental impact. Many other counties have issued tougher restrictions on operating the incineration plants. For the method of composting, the treatment is to use microorganism process to turn part of the MSW into compost for landscaping and agricultural uses. It accounts about 10% of the total MSW treatment among the developed countries, but the percentage varies greatly.


App F - 9

25. Due to the drawbacks from different MSW treatment methods, the developed countries have emphasized the MSW treatment concepts of quantity reduction at the sources, and maximizing the recycle and reuse to reduce the final MSW amount for landfills, which sometimes is referred as 3R principles, i.e. reduce, reuse and recycle. The application of 3R principle is the fundamental method for the MSW treatment.

• MSW Practice in PRC 26. By the end of 2010, the urban population in China has reached to 669.8 million, and the ratio of urban population has increased from 19% in 1980 to 50% in 2010. The waste generation rate has increased from 0.5kg/capita/day in 1980 to 1.1 kg/capita/year in 2010, which was increasing at a faster pace than population growth over the past three decades4. During “11th Five-Year” period, solid waste treatment investment is 2.1×1011 Yuan with the annual growth rate of 18.5%. The garbage treatment investment ranked first in environmental protection investment with growth rate of 25%. China Environmental Planning Institute of Environmental Protection Department forecasts that environmental protection investment will reach 3.1×1012 Yuan during “12th Five-Year” period, which doubles that of 1.4×1012 Yuan in the 11th Five-Year. Solid waste treatment investment will reach 8.0×1011 Yuan, over two times than that in the 11th Five-Year. 27. According to the 12th five-year-plan on urban MSW harmless disposal facilities construction planning5, the planned new amount of MSW harmless disposal capacity will reach to about 580 kiloton per day (kt/day) during the year of 2010–2015, of which 398 kt/day are newly increments in urban areas, while 182 kt/day are newly increments in the country towns. According to the World Bank, there will be a vast market for secondhand materials in China, and by 2030, urban waste in China – paper and metals in particular – will be one of the biggest commodity sources in the world.6 28. In 2010, the per capita annual amount of municipal solid waste (MSW) is about 300 kg in China; the annual growth rate is as high as 2~5% from 2006~2010. Although there are about 740 solid waste treatment plants, the sanitary treatment rate is less than 20%; a large amount of solid waste is stacked naked in outskirts. The storage volume has reached about 4×109 tons, and the occupied land is more than 5×108 m2. More than 200 cities are surrounded by solid waste. Therefore, how to select the reliable, safe, healthy, economical, environmental technology in accordance with the sustainable development requirements, thus fundamentally achieving “Reduction, Reuse, and Recycle” target is an important strategic task of social development facing China. The solid waste treatment method is also very important. Sanitary landfill is still the main method as a traditional and final processing method for most cities in China to solve municipal waste, accounting for about 95% of total treatment amount7. 29. Sanitary waste disposal rate of MSW is expected to reach 83% in 2015. The treatment volume of municipal garbage will reach 4.0×105 t/d in 2015. The treatment rate of counties and towns is relatively low, only 25% in 2010. The sanitary disposal rate is expected to increase by over 50% during the 12th five-year with daily disposal amount of 110,000 tons. The

4 National Bureau of Statistics of China (NBS), China Statistical Yearbook 2003–2010, China Statistics Press,

Beijing, China, 2004–2011.

5 The State Council/The central People’s Government of People’s Republic of China, The Chinese national 12th

five-year-plan on urban MSW harmless disposal facilities construction planning. Data online available at:

http://www.gov.cn/zwgk/2012-05/04/content 2129302.htm, 2012.

6 World Bank, Waste management in China: issues and recommendations, May 2005:11.

7 China Municipal Engineering Magazine, 2012


App F - 10

environmental protection investment will double during “12th Five-Year” period and the solid waste investment will increase by 4 times.8 30. At present, landfill is still dominant in China. However, landfill takes up a lot of land and it is difficult to promote in densely populated areas in China such as the eastern coastal areas which has high per capita density. According to “Reuse, Recycle and Reduce” principles for waste disposal proposed by Environmental Protection Department, incineration is the most optimal technology for reduction and sanitary treatment. Generally, the volume reduction with incineration is 75% of disposed waste, and the incineration heat can be used to generate heat and power. According to “Opinions on Further Strengthening the Solid Waste Disposal", Ministry of Housing and Urban-Rural Development and Ministry of Environmental Protection proposed that the incineration technology shall be given the first priority in the cities with land shortage and high population density. In addition, the government issued a series of preferential measures to encourage waste incineration power generation. "Renewable Energy Electricity Prices and the Cost-sharing Management Pilot Scheme" sets that electricity price is determined by benchmarking electricity price of desulphurization coal-fired unit plus subsidy whose standard is 0.25 Yuan/kilowatt-hour. In addition, waste incineration power generation enjoy the value-added tax relief. Moreover, the local government gives a certain waste disposal subsidy according to the local financial resource and incineration technology etc. 31. Composting is an important way for treatment of biodegradable organic fraction of the waste. Compost is most valuable as a soil conditioner that improves the overall soil characteristics resulting in less erosion, better moisture retention, better seed germination, better plant growth (stronger roots and better disease suppression), and the need for less synthetic fertilizer. Compost increases the efficiency of fertilizers by reducing runoff and making the fertilizer more available to the plants over a longer period (the compost molecularly binds to the fertilizer and holds it ready for plant use). However, as opposed to landfill and incineration, composting is not a widespread used waste treatment method in China. There are only 11 composting sites in 2010 with the designed composting capacity of 5480 t/day. The major obstacle to the development of composting is the decreasing market demand. There are multiple reasons for the weak demand. The first reason is the cost efficiency concern, because organic waste that are proper for composting, mainly food residues, is usually not source separated. In order to obtain proper organic for composting, very tough manual works are needed, which creates additional cost and makes composts less competitive in price compared with synthetic fertilizers9. The second reason is the market acceptance, farmers are reluctant to use compost made from waste materials10. Due to its low profitability and very limited market reach, composting has been unable to attract sufficient financial investment. 32. The urban environmental and health condition in PRC has improved dramatically due to the rapid urbanization with the newer urban residential areas and better municipal services. As shown in Table 3, from 2000 to 2012, the urban area being cleaned has been increased almost quadrupled; the municipal solid removed has increased from 118 to 171 million tons with an average annual growth rate of 3.1%, which seems not in pace of the fast urban development in the last decade. For the smaller cities, the inadequate capacity of garbage collection, transport and treatment is one of the major factors attributed to the poor city environment and health condition. The major urban garbage treatment method is still the landfill, followed by burning and other treatments. The urban garbage treatment capacity has increased significantly from 80.0 to 130.9 million tons from 2005 to 2011 with an average annual growth rate of 8.6%. 8 Specific Report on China Solid Waste Treatment Industry, 2012

9 X. Chen, A Systematic Comparison of Municipal Solid Waste Management Systems: Case Studies of Dalian City,

China and the Region of Waterloo, Canada, Master Thesis, University of Waterloo, 2008.

10 M. Zhu, M. Xi, A. Rovetta, Q. He, F. Vicentini, B. Liu, A. Giusti, Y. Liu, Munici- pal solid waste management in Pudong New Area, China, Waste Manage. 29 (2009) 1227–

1233.


App F - 11

However, there is still gap between the garbage removed and the treated. Another major problem for the garbage treatment is that so far there is almost no effective garbage sorting, reuse and recycle system and mechanism in PRC, which result in environmental problems associated with high energy consumption, material waste, big impact to the environment, and other negative impacts to the natural resources.

Table 3 Municipal Solid Waste and Urban Environment Health Facilities

Year

Urban Cleaning

Area (mil m

2)

Garbage Removal (mil ton)

Landfill (mil ton)

Burn (mil ton)

Other (mil ton)

Human Waste

Removal (mil ton)

Urban Cleaning Vehicle (each)

Public Toilet (each)

2000 1,662 118.2 - - - 28.3 44,846 106,471

2005 3,108 155.8 68.6 7.9 3.5 38.1 64,205 114,971

2006 3,248 148.4 64.1 11.4 2.9 21.3 66,020 107,331

2007 3,794 152.2 76.3 14.4 2.5 25.1 71,609 112,604

2008 4,685 154.4 84.2 15.7 1.7 23.3 76,400 115,306

2009 4,473 157.3 89.0 20.2 1.8 21.4 83,756 118,525

2010 4,850 158.1 96.0 23.2 1.8 19.5 90,414 119,327

2011 5,305 164.0 100.6 26.0 4.3 19.6 100,340 120,459

2012 5,735 170.8 105.1 35.8 3.9 18.1 112,157 121,941


33. Based on the statistics data by the end of 2012, there were about 540 landfill sites, which processed about 80.3% of the total MSW amount. There were about 138 incineration plants that processed about 15.5% of the total MSW, and 20 composting plants that processed about 3.5% of the total MSW. With the urbanization and the improvement of the living condition, the amount of waste is also growing. According to the Environmental Protection Agency data, in 2010, China's annual output of municipal waste reached 160 million tons, and with an annual growth rate of 8-10%. There are more than 200 cities in China are surrounded by MSW accumulated historically. The land used for MSW landfills is up to 750,000 mu and to effectively and efficiently treat the MSW has become a big challenge for many cities. 34. One special character of the MSW composition from China is the high percentage of kitchen waste, which is about over 40% of the total waste. The kitchen waste is wet and with low combustion value, which is not very efficient to be treated by incineration. Also the percentage of construction waste is pretty high with about 10% to 39%, which takes a lot of the landfill spaces. 35. The landfill is still the conventional and mostly used MSW treatment method. The PRC government has enforced the sanitary landfill requirements to eliminate the unprotected landfills. Due to the large amount of MSW, the landfill has taken more and more land. China has limited land resource due to the large population. To reduce the MSW amount in landfills has become the priority for many cities.

36. Chinese waste incineration technology started in the middle of 1980s. The incineration technology is the most efficient way in safe disposal, waste minimization and beneficial reuse. Currently the waste incineration technology is mainly used in the economic developed, densely populated areas of China, mostly in Yangtze River Delta and Pearl River Delta and other coastal areas. It is expected that the percentage of the MSW treated by the incineration will


App F - 12

reach 30% of the total MSW in 2015 and to 40% by 2020. Based on PRC practice, the capacity of the incineration plants is usually larger than 600 ton/day to be more efficient during operation; it is usually used in large cities.

37. Composting in MSW management is PRC has only a small percentage in total NSW treated. The history of using composting in China in china.11

(i) The initial phase (1950s - 1960s): the composting technology was used in a relatively simple composting process in rural areas. The process was categorized as one-time ferment using natural ventilation to complete the process. It is a simple and slow process.

(ii) Development Phase (1970s - 1980s): The application of waste composting techniques was getting more attentions by the government. More researches to find new technologies were carried out and the government invested in establishing composting facilities. The stage is a thriving period of composting study, and many new processes and new technologies have been developed.

(iii) Application Phase (1980s - 1990s): The government promoted to use composting technologies and a lot of composting facilities were constructed. During the period, the composting was ranked second next to the landfills.

(iv) Contraction phase (1990s): Due to high operation cost and lack of market for the compost products due to the high cost in comparing to the fertilizers, many composting plants were idled.

38. The failure of the composting production in the past can be summarized as follows:12 (i) Out-of-date technologies with poor products. (ii) Lack of maintenance for the equipment (iii) Poor composting product quality with low percentage of organic (20% vs. 40% as

required) and high impurities. (iv) The energy consumption was too much, resulting in high cost and lack of market

competitiveness. 39. In recent years, due to the problems from incineration and the advancements in the technologies, the process of composting has gained more attentions. May cities including Wuxi, Changzhou, Tianjin, Shenyang, Beijing, Wuhan, etc. have designed new composting plants using advanced technologies. The compost products are not limited to be used in gardens, landscaping, vegetation restoration, but also land reclamation and land desertification. The composting process will gain more strength in PRC MSW management. 40. The lessons learned from the previous composting practices include: i) simple and low cost technologies shall be used to control the production cost; ii) the products shall be identified for the potential market or municipal government users such as city maintenance unit for urban landscaping.

• MSW Management In Xinjiang 41. In the recent years, the municipal solid waste condition in Xinjiang Autonomous Region is improving continuously. The harmless disposed level of municipal solid waste has been upgraded largely. According to the data from China Statistical Yearbook (2013), in 2012 the municipal solid consumption wastes collected and transported in Xinjiang are 3.527 million tons. Xinjiang Autonomous Region currently applies a mixed collection for municipal solid waste. Presently the inorganic component in the municipal solid waste of Xinjiang still takes part in a large proportion, recyclables proportion is relatively small, and the combustible material has

11

JI Tao. Application and outlook of municipal domestic refuse composting[J]. Tianjin Technology, 2008 12

Refined Compost Technique in the Engineering of Municipal Solid Waste Treatment, Beijing Golden State Environment Development Co., Ltd, Beijing


App F - 13

relatively low heat value. Because of the mixed waste collection and disposal, it results in relatively high construction and operation costs of the waste treatment and disposal, leading to enormous resources waste. During the “Eleventh Five-Year” period, the related sanitation departments launched some pilot projects of regional waste separation in several cities, but it was very difficult to figure out the suitable waste separation development method for all the cities and districts. It mainly appears in the weak common environmental protection awareness of the residents and lack of acquaintances with the amount minimization from the waste sources. With the increasing urbanization level and the rapid growth of urban population, the conflict between the large municipal solid waste outputs and poor treatment capacity will become more and more prominent. The wasting proportion from the recyclable resources in the municipal solid waste will increase. 42. The MSW collection and transport method in Xinjiang, especially in the medium and smaller cities, is mainly using the very old method by collecting the MSW from the collection stations scattered on the street corners and transported to the landfill sites outside of the cities. Most small cities do not have MSW transfer stations, and the secondary pollution from the street corner collection stations is a common problem to have negative impact to urban environment. They become the mobile pollution sources emitting the odor when transporting the waste. 43. Currently the waste treatment of Xinjiang is main sanitary landfill and simple landfill. During the 11th Five-Year, the landfill counts for 100% of MSW treatment. According to the 12th Five Year Plan, the landfill will account for 91% of MSW treatment and the incineration will accounts for about 9% of the total MSW treated. E. District Heating

• Heating Sector in the PRC 44. Space heating for homes and offices is a necessity in northern provinces of the PRC. Heating can be achieved via family heating stoves, small neighborhood boilers for a few buildings and large centralized heating (or district heating) systems. District heating is the most efficient and less polluting heating means for households in urban area with dense population. District heating supply is growing rapidly in the PRC along with the fast economic development (GDP grew 2.5 times in the past seven years) and urbanization (urbanization rate at 53.73% in 2013). In the past, 15 provinces and provincial level municipalities in the north, northeast and northwest PRC adopted DHSs. Along with the rapid socio-economic development and concerns on urban air pollution, more province and cities are installing energy efficient DHSs. The heat supply volume and heating area of the PRC have been continuously increasing in recent years along with fast urbanization and GDP growth. In 2010, the total heat supply volume in the urban areas reached 2.91 billion GJ, and the total district heating area reached 4.4 billion m2 compared to 1.9 billion m2 in 2003 with an average annual increase rate of 12%.The PRC Government forecast varies from 7.5 billion m2 to 13.7 billion m2 on total heating area in the PRC in 2020. 45. Among different types of heat sources, about 36% of heat is provided by coal or gas fired CHP plants and 64% is provided by coal or gas-fired HOBs (Heat-Only boilers) in the centralized DHSs. The PRC Government estimates that 50% of heat will be provided by CHP and remaining 50% by HOBs by 2020. It plans to install additional 491 GW of CHP capacities and eliminate 1,995 GW capacities of inefficient and polluting small HOBs. This will improve the energy efficiency of heat generation.

• National Policies on District Heating Sector Reform


App F - 14

46. In PRC, heating services were regarded in the past as a part of the government welfare services and government responsibility. As a result, energy was inefficiently supplied and used in the district heating sector, which increased urban air pollution. Government subsidies were allocated to state-owned district heating enterprises, which often did not efficiently operate the DHSs. To change this situation, the Government took initiatives since 1996 to (i) increase energy efficiency in the district heating sector; (ii) create modern district heating market and allow private companies to enter the market; and (iii) start to pilot and implement heating tariff reforms based on actual consumption. PRC has issued a series of policies and measures to implement heating reform and improve energy efficiency in the district heating sector. The average annual energy consumption per square meter floor area in 2009 was 0.53 GJ/m2, with an average annual decrease of 4.16% from 2003 (0.68 GJ/m2). However, comparing with international level of only 0.37 GJ/m2, there is still a large potential to improve energy efficiency and conserve energy in the district heating sector of the PRC. 47. In 2007, the National People’s Congress of the PRC amended the “Energy Conservation Law”, which requires implementation of household-based heat metering and consumption based billing. The NDRC and MOHURD issued the “Urban Heating Price Reform Tentative Guideline” in 2007 to guide local governments in setting appropriate heating tariffs, which requires phasing in two parts heating tariff consisting of fixed charge and variable charge. The State Council of the PRC issued the “Energy Conservation Ordinance for Civil Construction” in 2008, which requires installation of energy efficiency devices at household level. Further, the MOHURD together with NDRC, MOF, and General Administration of Quality Supervision, Inspection and Quarantine issued the “Comments on Further Enhancing Heating Metering Reform” in 2010. It requires implementation of consumption based billing system for newly completed buildings and existing buildings with energy control devices. Following the national guidelines, the HPG issued the “Notice on Further Promoting the Heat Metering Reform in the Province” in May 2010, which requires all old and new buildings with heat meters adopt consumption based billing system.

• Challenges in District Heating Sector Reform

48. Energy waste in the district heating sector is enormous in the PRC due to inefficient heat source plants, aging heat distribution network, lack of demand side management, and inefficient energy insulation etc. It typically requires 50-100% more energy to heat the same space compared to comparable climates in North America and Europe. Energy efficient DHSs are an important element for constructing low carbon cities and improving the public health in northern provinces of the PRC. Some of the factors affecting the energy waste in district heating sector in the PRC are summarized below: 49. Old district heating infrastructures. Most of existing infrastructures in the heating systems are old and lack proper maintenance for many years. Large gains from energy efficiency and emission reduction can be attained through (i) replacing inefficient neighborhood boilers with centralized cleaner DHSs; (ii) improving insulation in transmission and distribution pipe network systems, and (iii) installing demand control DHSs (i.e., variable flow drives, computer monitoring and control system and heat flow control valves at the end user side).

50. Poor insulated buildings. The building codes in the PRC have been updated to international levels. However, enforcement of building codes is inadequate. Enhanced enforcement of building codes will increase the heat efficiency on demand side including energy efficient construction materials, ventilation system, and double-shield window.

51. Consumption-based heating tariff. Current heating tariffs and billing system is based on a flat rate per square meter per heating season in most cities of the PRC. This system should be transformed to the consumption-based system to send consumer a price signal and


App F - 15

encourage energy conservation on the demand side. However, progress is slow in switching to the consumption-based tariff and billing system. Buildings constructed before 2008 are not installed with energy efficiency devices at the household level, such as heat meters, room temperature regulators, and heating system controllers. Accelerating installation of energy efficiency devices to the existing old buildings is required for further demand side energy conservation. Heating tariff reform needs to be widened in order to achieve energy consumption reduction from the demand side.

52. Private sector participation. Transformation from subsidized social welfare tariff to cost recovery tariff is essential to foster the healthy district heating market and industries including private sector participation. Modernization of state-owned heating companies to provide customer-oriented services is important to increase the efficiency of heating business. In this sense, private sector plays a significant role to change the culture of district heating business practice. Currently, district heating service is still dominated by state owned enterprises in major cities of the PRC, while small and medium size municipalities and counties have started to have private companies to provide a part of the heating service. For small asset and revenue based heating companies, they have limited access to commercial financing for system rehabilitation and expansion of business. To improve the energy efficiency in the industry and access to commercial financing, consolidation of small heating businesses to large ones is necessary. During the transition period, the government financing support is required for medium and small scale companies. 53. Invisible government subsidies. Subsidies for heating by local and provincial governments have decreased over the years but there are still subsidies. Changing to a transparent and targeted heat subsidy system is important to efficiently use the government budget, which includes transferring heat bill payment responsibility from employers or companies to consumers and targeted subsidy for low-income consumers to ensure their affordability.

• Heating Sector in XUAR

54. With the accelerating pace of urbanization and economic growth, district heating in cities and towns of XUAR has experienced fast development in recent years; the total heating area in XUAR was 294 million m2 in 2012. Rapid urbanization of XUAR substantially increases district heating demand, as of 2013, the urbanization rate of XUAR reached 44.5%. The existing heating system can no longer meet the growing heating demand. It is imperative to demolish low-efficiency small boilers and expand DHSs that are more energy-efficient and lower in emissions. The heat is supplied mainly by CHP and coal-fired HOBs. The remaining houses and buildings without district heating supply mainly use stoves for space heating in winter. Currently in XUAR, the most commonly used fuel for heating is coal. Most existing heating facilities in the cities are outdated and inefficient, and lack necessary pollution control equipment. There are still many scattered, inefficient, small coal-fired boilers that not only create a huge waste of energy but also lead to serious air pollution, thus adversely impacting public health. 55. According to the “12th Five-year Plan on National Economy and Social Development of XUAR”, XUAR will expedite the construction of CHP plants, biomass heating and heating pipeline upgrade during the 12th Five-year period. By 2015, the district heating area of XUAR will increase by over 168 million m2.

• XUAR Policies on District Heating Sector Reform


App F - 16

56. Tax preferential policies and other financial support are implemented for energy-saving retrofitting projects. In terms of heat source, small low-efficiency boilers are being closed and replaced by large scale high-efficiency HOBs and CHP plants. Many small cities and towns are being connected to DHSs and household stoves being dismantled. Air pollution control devices to remove PM and SO2 are being installed to further reduce the air pollutants emissions. Pilot projects are implemented in biochemical engineering, biomass briquette utilization and coal-fired boiler retrofitting for burning biomass. On the hot water transmission and distribution side, old heat pipelines are being replaced and upgraded with improved insulation to reduce heat and water losses. Direct heating system has been changed to indirect heating system by installing HESs and variable flow pumps. 57. Building energy conservation is legally required in XUAR following the “Regulations on Energy-Saving for Civil Buildings” published by AR government in January 2003. Energy-saving materials, such as insulation board made of polystyrene foam and heat insulated concrete form, are used for new building construction. Some old buildings have been rehabilitated for energy conservation.

58. In 2010, XUAR government issued the notice on further promoting the heat metering reform in XUAR following the national “Guidance on Further Enhancing Heating Metering Reform” issued by four ministries. It requires that in 2010, all new buildings and existing ones finishing heat metering retrofitting shall adopt heat consumption based billing instead of floor area based billing. The specific billing measures will be established by the local governments. In order to motivate consumers to save energy, the base proportion among the two-part heating tariff mechanism could adopt 30% of the total while the other 70% is based on actual heat consumption. It requires that existing large-scale public buildings and government buildings should complete retrofitting for heat metering and realize consumption-based billing by the end of 2012. 3. Government’s Sector Strategy 59. The government acknowledges that the fast-paced economic growth and urbanization experienced by the country in recent decades must be more-carefully managed in the future. There has been debate on the appropriate rate of population growth and how this can be managed in the future to deliver greater economic benefits to the entire nation and reduce inequalities. Efforts are focusing on developing new urban centers in the hinterland to generate new employment opportunities and aiming to reduce demographic pressures in the main coastal cities. Promoting smaller town development has been central to the PRC’s urbanization strategy and is underscored by the government’s continuous search for specific policy initiatives that will enable economic growth and attract more rural migrants to towns rather than cities. 60. The urban development strategy is overseen by the State Council with specific areas designated to the relevant ministries. The Ministry of Environmental Protection (MOEP) supervises water quality of industrial discharge and municipal sewage discharge. The Ministry of Housing, Rural and Urban Development (MOHURD), formerly the Ministry of Construction, has regulatory responsibilities for urban management and public utility services, including roads, water supply, urban drainage, environmental sanitation, district heating and wastewater treatment but most of these responsibilities are delegated to local governments at various levels. MOHURD is only directly responsible for developing urban development strategies, medium and long-term development planning, and providing guidance for urban management and the provision of the related public utility services. The Ministry of Water Resources (MWR) has overall responsibilities for flood control, river pollution control, and water conservation. The Ministry of Health (MOH) is responsible for supervising public health, drinking water safety, and prevention of epidemics. The National Development and Reform Commission (NDRC), as a multi-functional administration department of the State Council, is responsible for overall


App F - 17

coordination of economic policy implementation, including energy saving and resource utilization. 61. The Twelfth Five-Year Plan (2011-2015) is expected to advance the agenda for developing a harmonious society and more balanced economic development that considers environmental and social conditions and promotes development of central and western regions of PRC. It is expected that the Twelfth Five-Year Plan will provide guidance on the rate of urban population growth and the national priorities for urban development. Acceleration of urban public facilities is a priority and investments of around $1 trillion are expected during this period. The plan will also identify the future economic growth model that the PRC intends to follow and is expected to focus on high-technology, green and clean industries, service sector and the development of skills and human resources that will be required to take advantage of this and provide employment opportunities.

4. ADB Sector Experience and Assistance Program 62. ADB’s assistance to the urban sector development has been effective in addressing a range of urban environmental problems that have a positive impact on water resources, pollution control and public health. Since 1992, ADB has provided over 30 loans totaling over $3.5 billion to the PRC for urban environmental improvement and infrastructure projects, and nearly $56 million for 80 TA studies to prepare these projects and study key issues in environmental improvement and urban infrastructure development. ADB-financed urban development and urban environmental improvement projects in the PRC generally perform well. Urban development requires an integrated and multi-sector approach. A comprehensive urban development master plan is prepared for a timeframe of 15 – 20 years updated from time to time that guides the urban development activities. Guided by such an urban master plan, holistic urban planning and integrated public investment may be effective instruments in strengthening urban sustainability, advancing human settlement, and improving urban environment. However, continued investment on physical infrastructure for urban development requires stronger capacity of the urban government to design, develop, and manage the associated operation or service delivery system. 63. The ADB Country Strategy and Program (CSP) promotes continued economic growth as the primary means to reduce poverty and recognizes that in the past these achievements have come at a considerable cost to the environment. Improving environmental protection is a key priority. Wastewater treatment is one of the specific investments identified as an operational focus. ADB's water policy supports integrated water resources management for surface water quality and an operational strategy for infrastructure, calls for market-oriented reforms, and directs attention to urban environmental problems. The market-oriented reforms emphasized in ADB’s CSP for PRC include the principles of affordability, efficiency, cost recovery through user charges and effective subsidization schemes. 64. The ADB Country Partnership Strategy (CPS)13 for PRC identifies urban development as a priority investment sector. Sustainable and environmentally friendly urban development remains as key focus area in the new CPS for the 2011-2015 period. It also conforms to ADB’s Water Policy,14 which encourages water efficient use and conservation, including wastewater reuse. It supports ADB’s Urban Development Sector strategy and the PRC's urbanization strategy which promote rural-urban integration and infrastructure investments in dynamic settlements. ADB’s Sustainable Transport Initiative 15 includes efficient design of urban road components and related institutional and capacity developing assistance by supporting

13

ADB. 2012. Country Partnership Strategy (2012–2015): People’s Republic of China. Manila. 14

ADB. 2001. Water for All: The Water Policy of the Asian Development Bank. Manila. 15

ADB. 2010. Sustainable Transport Initiative: Operational Plan. Manila.


App F - 18

improvement in public and non-motorized transport development, traffic and road safety and management.


Appendix G

Project Implementation Schedule

Project Implementation ScheduleActivities Start Finish

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

1A Tacheng Roads & Municipal Services

1A.1 Preliminary design Q1 2015 Q4 2016

1A.2 Bidding document preparation Q1 2015 Q2 2017

1A.3 Final Design Q2 2015 Q4 201

1A.4 Land acquisition and resettlement Q122015 Q2 2018

A1.5 Bidding & contract award Q2 2015 Q2 2018

1A.6 Road, bridge, utility construction Q3 2015 Q4 2018

1B Tacheng District Heating

1B.1 Preliminary design Q3 2016 Q4 2017

1B.2 Bidding document preparation Q3 2017 Q3 2017

1B.3 Final Design Q3 2016 Q4 2017

1B.4 Land acquisition and resettlement Q4 2016 Q4 2017

1B.5 Bidding & contract award Q4 2017 Q2 2018

1B.6 Construction and Equipment Q2 2018 Q2 2019

1C Kalanggur River Rehabilitation

1C.1 Preliminary design Q1 2015 Q4 2015

1C.2 Bidding document preparation Q1 2015 Q2 2016

1C.3 Final Design Q2 2015 Q232016

1C.4 Bidding & contract award Q3 2015 Q4 2016

1C.5 Construction Q3 2015 Q4 2018

2 Emin Roads and Municipal Services

2.1 Preliminary design Q1 2015 Q2 2016

2.2 Bidding document preparation Q1 2015 Q4 2016

2.3 Final Design Q1 2015 Q2 2017

2.4 Land acquisition and resettlement Q1 2015 Q2 2017

2.5 Bidding & contract award Q1 2015 Q2 2017

2.6 Construction Q2 2015 Q4 2017

3 Tuoli Roads







4 Yumin Roads







5 Capacity Development

5.1 Recruit and mobilize consultants Q1 2015 Q3 2015

5.2 Establish project management system Q232015 Q4 2015

5.3 Establish PPMS system Q2 2015 Q2 2016

5.4 Project implementation support Q2 2015 Q4 2019

5.5 Capacity development implementation Q3 2015 Q2 2019

5.6 Environmental monitoring Q3 2015 Q2 2019

5.7 Resettlement monitoring Q3 2015 Q4 2018

5.8 PPMS monitoring Q3 2015 Q2 2019

(Source: consultant)

2015 (Year 1) 2016 (Year 2) 2017 (Year 3) 2018 (Year 4) 2019 (Year 5)


Appendix H

Detailed Cost Estimates


A. Detailed Cost Estimate by Expenditure Category

Foreign Local Local Total

Exchange Currency Currency Cost

A.

1 Civil Works 103.30 929.71 1033.02 17.22 154.95 172.17 65.2%Tacheng Subproject 74.31 668.76 743.06 12.38 111.46 123.84 46.9%Emin Subproject 11.61 104.46 116.07 1.93 17.41 19.34 7.3%Tuoli Subproject 10.72 96.47 107.19 1.79 16.08 17.87 6.8%Yumin Subproject 6.67 60.02 66.69 1.11 10.00 11.12 4.2%

2 Mechanical and Equipment 6.63 59.68 66.32 1.11 9.95 11.05 4.2%Tacheng Subproject 5.58 50.21 55.79 0.93 8.37 9.30 3.5%Emin Subproject 0.11 0.99 1.10 0.02 0.17 0.18 0.1%Tuoli Subproject 0.09 0.77 0.85 0.01 0.13 0.14 0.1%Yumin Subproject 0.86 7.72 8.58 0.14 1.29 1.43 0.5%

3 Environment and Social Mitigation 1.12 10.07 11.19 0.19 1.68 1.86 0.7%Tacheng Subproject 0.71 6.38 7.09 0.12 1.06 1.18 0.4%Emin Subproject 0.23 2.07 2.30 0.04 0.35 0.38 0.1%Tuoli Subproject 0.08 0.68 0.75 0.01 0.11 0.13 0.0%Yumin Subproject 0.10 0.94 1.04 0.02 0.16 0.17 0.1%

4 Land acquisition & resettlement 0.00 380.13 380.13 0.00 63.36 63.36 24.0%Tacheng Subproject 0.00 287.90 287.90 0.00 47.98 47.98 18.2%Emin Subproject 0.00 66.76 66.76 0.00 11.13 11.13 4.2%Tuoli Subproject 0.00 15.88 15.88 0.00 2.65 2.65 1.0%Yumin Subproject 0.00 9.59 9.59 0.00 1.60 1.60 0.6%

5 Consultants 10.20 0.00 10.20 1.70 0.00 1.70 0.6%6 Design, surevy and management 7.64 68.80 76.44 1.27 11.47 12.74 4.8%7 Operation Capital 0.61 5.50 6.11 0.10 0.92 1.02 0.4%

Subtotal (A) 129.51 1453.89 1583.39 21.58 242.31 263.90 100.0%

B.

1 Salaries 0.00 0.00 0.00 0.00 0.00 0.0%2 Accommodation 0.00 0.00 0.00 0.00 0.00 0.0%3 Equipment Operation and Maintenance 0.00 0.00 0.00 0.00 0.00 0.0%

Subtotal (B) 0.00 0.00 0.00 0.00 0.00 0.0%Total Base Cost 129.51 1453.89 1583.39 242.31 263.90 100.0%

C.

1 Physical 0.00 69.85 69.85 1.29 11.64 12.94 4.9%2 Price 11.11 100.01 111.12 1.85 16.67 18.52 7.0%

Subtotal (C) 18.87 169.86 188.73 3.15 28.31 31.45 11.9%

D.

1 Interest During Implementation 34.45 6.89 41.34 5.74 1.15 6.89 2.6%2 Commitment Charges 3.78 0.00 3.78 0.63 0.00 0.63 0.2%

Subtotal (D) 38.23 6.89 45.12 6.37 1.15 7.52 2.8%186.61 1630.63 1817.25 31.10 271.77 302.87 114.8%

0.000.000.00

0.00

Financing Charges During Implementation

Total Project Cost (A+B+C+D)

21.58

Contingencies

Recurrent Costs

% of Total

Base CostCost Exchange

Investment Costs

Item

(CNY million) ($ US Dollar million)

Total Foreign


B. Detailed Cost Estimate by Financier

Total Cost

Amount

% of Cost

Category Amount

% of Cost

Category Amount

% of Cost

Category Amount

% of Cost

Category Amount

% of Cost

Category

A.

1 Civil Works 128.33 74.5% 30.77 17.9% 5.74 3.3% 4.02 2.3% 3.31 1.9% 172.17Tacheng Subproject 93.08 75.2% 30.77 24.8% 123.84Emin Subproject 13.61 70.4% 5.74 29.6% 19.34Tuoli Subproject 13.84 77.5% 4.02 22.5% 17.87Yumin Subproject 7.80 70.2% 3.31 29.8% 11.12

2 Mechanical and Equipment 11.05 100.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 11.05Tacheng Subproject 9.30 100.0% 0.00 0.0% 9.30Emin Subproject 0.18 100.0% 0.00 0.0% 0.18Tuoli Subproject 0.14 100.0% 0.00 0.0% 0.14Yumin Subproject 1.43 100.0% 0.00 0.0% 1.43

3 Environment and Social Mitigation 1.40 74.9% 0.29 15.7% 0.10 5.1% 0.03 1.5% 0.05 2.8% 1.86Tacheng Subproject 0.89 75.2% 0.29 24.8% 1.18Emin Subproject 0.29 75.2% 0.10 24.8% 0.38Tuoli Subproject 0.10 77.5% 0.03 22.5% 0.13Yumin Subproject 0.12 70.2% 0.05 29.8% 0.17

4 Land Acquisition and Resettlement 0.00 0.0% 47.98 75.7% 11.13 17.6% 2.65 4.2% 1.60 2.5% 63.36Tacheng Subproject 0.00 0.0% 47.98 100.0% 47.98Emin Subproject 0.00 0.0% 11.13 100.0% 11.13Tuoli Subproject 0.00 0.0% 2.65 100.0% 2.65Yumin Subproject 0.00 0.0% 1.60 100.0% 1.60

5 Consultants 1.70 100.0% 1.706 Survey, Design and Management 0.00 0.0% 9.73 76.4% 1.29 10.1% 0.93 7.3% 0.79 6.2% 12.747 Operation Capital 0.00 0.0% 1.01 99.2% 0.01 0.8% 0.00 0.0% 0.00 0.0% 1.02

Subtotal (A) 142.48 54.0% 89.79 34.0% 18.25 6.9% 7.63 2.9% 5.75 2.2% 263.90B.

1 Salaries 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.002 Accommodation 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.003 Equipment Operation and Maintenance 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.00

Subtotal (B) 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.00Total Base Cost 142.48 54.0% 89.79 34.0% 18.25 6.9% 7.63 2.9% 5.75 2.2% 263.90

C. 0.00 0.0% 22.95 73.0% 3.35 10.7% 3.02 9.6% 2.14 6.8% 31.451 Physical 0.00 0.0% 9.44 73.0% 1.38 10.7% 1.24 9.6% 0.88 6.8% 12.942 Price 0.00 0.0% 13.51 73.0% 1.97 10.7% 1.78 9.6% 1.26 6.8% 18.52

D. 7.52 100.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 7.521 Interest During Implementation 6.89 100.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 6.892 Commitment Charges 0.63 100.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.63

150.00 112.73 21.61 10.65 7.89 302.87

% Total Project Cost 49.5% 37.2% 7.1% 3.5% 2.6% 100.0%

(Source: Asian Development Bank) (See Table "Cost by Components" for notes)


($ million)

ADB Tacheng M. Gov. Yumin County Gov.

Item

Investment Costs

Recurrent Costs

Contingencies


Emin County Gov. Tuoli County Gov.


Detailed Cost Estimates by Outputs/Components

Amount% of Cost

Category Amount% of Cost



Category

A.

1 Civil Works 172.17 123.84 71.9% 19.34 11.2% 17.87 10.4% 11.12 6.5%2 Mechanical and Equipment 11.05 9.30 84.1% 0.18 1.7% 0.14 1.3% 1.43 12.9%3 Environment and Social Mitigation 1.86 1.18 63.3% 0.38 20.6% 0.13 6.7% 0.17 9.3%4 Land Acquisition and Resettlement 63.36 47.98 75.7% 11.13 17.6% 2.65 4.2% 1.60 2.5%5 Consultants 1.70 1.25 73.3% 0.17 10.0% 0.17 10.0% 0.11 6.7%6 Survey, Design and Management 12.74 9.73 76.4% 1.29 10.1% 0.93 7.3% 0.79 6.2%7 Operation Capital 1.02 1.01 99.2% 0.01 0.8% 0.00 0.0% 0.00 0.0%

Subtotal (A) 263.90 194.29 73.6% 32.51 12.3% 21.88 8.3% 15.22 5.8%B.

1 Salaries 0.00 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.00 0.0%2 Accommodation 0.00 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.00 0.0%3 Equipment Operation and Maintenance 0.00 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.00 0.0%

Subtotal (B) 0.00 0.00 0.0% 0.00 0.0% 0.00 0.0% 0.00 0.0%Total Base Cost 263.90 194.29 73.6% 32.51 12.3% 21.88 8.3% 15.22 5.8%

C.

1 Physical 12.94 9.44 73.0% 1.38 10.7% 1.24 9.6% 0.88 6.8%2 Price 18.52 13.51 73.0% 1.97 10.7% 1.78 9.6% 1.26 6.8%

Subtotal (C) 31.45 22.95 73.0% 3.35 10.7% 3.02 9.6% 2.14 6.8%D.

1 Interest During Implementation 6.89 5.05 73.3% 0.69 10.0% 0.69 10.0% 0.46 6.7%2 Commitment Charges 0.63 0.44 69.4% 0.06 9.5% 0.06 9.5% 0.07 11.7%

Subtotal (D) 7.52 5.49 73.0% 0.75 10.0% 0.75 10.0% 0.53 7.1%302.87 222.73 73.5% 36.61 12.1% 25.65 8.5% 17.89 5.9%

a Includes taxes and duties to be f inanced from ADB loan resources of: $6.23 million.


c

d

(Source: Asian Development Bank)

Includes interest and commitment charges. Interest during construction for ADB loan(s) has been computed at the 5-year forw ard London interbank offered rate plus a spread of 0.5% and additional 0.1% surcharge for average loan


Yumin Subproject

Investment Costsb

Recurrent Costs

Contingenciesd

Financing Charges During Implementationd

Item

($ million)a

Total Cost

Tacheng Subproject Tuoli Subproject


Physical contingencies computed at 8% for civil w orks; and 8% for f ield research and development, training, surveys, and studies. Price contingences computed at 6.03% on foreign exchange costs and 9.37% on local currency

cost; includes provisions for potential exchange rate f luctuation under the assumption of a purchasing pow er party exchange rate.

Emin Subproject


Total

2015

(Year 1)

2016

(Year 2)

2017

(Year 3)

2018

(Year 4)

2019

(Year 5)

A.

1 Civil Works 172.17 8.61 17.22 43.04 60.26 43.04Tacheng Subproject 123.84 6.19 12.38 30.96 43.35 30.96Emin Subproject 19.34 0.97 1.93 4.84 6.77 4.84Tuoli Subproject 17.87 0.89 1.79 4.47 6.25 4.47Yumin Subproject 11.12 0.56 1.11 2.78 3.89 2.78

2 Mechanical and Equipment 11.05 0.55 1.11 2.76 3.87 2.76Tacheng Subproject 9.30 0.46 0.93 2.32 3.25 2.32Emin Subproject 0.18 0.01 0.02 0.05 0.06 0.05Tuoli Subproject 0.14 0.01 0.01 0.04 0.05 0.04Yumin Subproject 1.43 0.07 0.14 0.36 0.50 0.36

3 Environment and Social Mitigation 1.86 0.09 0.19 0.47 0.65 0.47Tacheng Subproject 1.18 0.06 0.12 0.30 0.41 0.30Emin Subproject 0.38 0.02 0.04 0.10 0.13 0.10Tuoli Subproject 0.13 0.01 0.01 0.03 0.04 0.03Yumin Subproject 0.17 0.01 0.02 0.04 0.06 0.04

4 Land Acquisition and Resettlement 63.36 3.17 6.34 15.84 22.17 15.84Tacheng Subproject 47.98 2.40 4.80 12.00 16.79 12.00Emin Subproject 11.13 0.56 1.11 2.78 3.89 2.78Tuoli Subproject 2.65 0.13 0.26 0.66 0.93 0.66Yumin Subproject 1.60 0.08 0.16 0.40 0.56 0.40

5 Consultants 1.70 0.09 0.17 0.43 0.60 0.436 Survey, Design and Management 12.74 0.64 1.27 3.18 4.46 3.187 Operation Capital 1.02 0.05 0.10 0.25 0.36 0.25

Subtotal (A) 263.90 13.19 26.39 65.97 92.36 65.97B.

1 Salaries 0.00 0.00 0.00 0.00 0.00 0.002 Accommodation 0.00 0.00 0.00 0.00 0.00 0.003 Equipment Operation and Maintenance 0.00 0.00 0.00 0.00 0.00 0.00

Subtotal (B) 0.00 0.00 0.00 0.00 0.00 0.00Total Base Cost 263.90 13.19 26.39 65.97 92.36 65.97

C. 31.45 1.57 3.15 7.86 11.01 7.861 Physical 12.9 0.65 1.29 3.23 4.53 3.232 Price 18.5 0.93 1.85 4.63 6.48 4.63

D. 7.52 0.38 0.75 1.88 2.63 1.881 Interest during construction 6.9 0.34 0.69 1.72 2.41 1.722 commitment charges 0.6 0.03 0.06 0.16 0.22 0.16

302.87 15.14 30.29 75.72 106.01 75.72

% Total Project Cost 100% 5% 10% 25% 35% 25%

(Source: Asian Development Bank) (See Table "Cost by Components" for notes)

Contingencies



Detailed Cost Estimates by Years

($ million)

Item

Investment Costs

Recurrent Costs


1

Appendix I

Financial Analysis


2

Financial Analysis for Xinjiang Tacheng Project

A. Introduction

1. The proposed Xinjiang Tacheng and Border Cities Urban Development Project consist of 11 project components (sub-projects). For the non-revenue generating components, including the city/county’s public transport roads, river rehabilitation and solid waste management, assessment of the government’s fiscal capacity and solvency has been conducted to ensure the financial sustainability of those subprojects. For revenue generating components, i.e., the water supply pipelines, wastewater discharge pipelines and district heating transmission facilities, financial return approach and tariff structure analysis in relation to end-users’ affordability have been carried out.

B. Project Cost Estimation and Financing Plan

2. The Project capital cost estimation and financing plan were prepared with the following basic assumptions. The current official exchange rate applied is USD1.0 = CNY 6.0. For inflation forecasting for the foreign currency costs of the Project the Manufacture's Unit Value (MUV) index is used, which are 1.0% for 2015 and 1.4% for 2016 and 2017 and 1.5% for 2018 and 2019. The China’s domestic inflation rates are referred to the ADB projections, which are 3.0% for 2015 and the succeeding years. The physical contingencies are calculated at 8% of the basic costs.

Table 1: Project Investment Plan

Item


A. Base Costb






Subtotal (A) 1,583.4 263.90 87.1%



1,817.2 302.87 100.0%



c

d


Amounta Share of

Total (%)

Total (A+B+C)




exchange rate.





3. The potential ADB loan will have a total duration of 25 years including a grace period of 5 years. The schedule of loan principal repayment after the grace period is prepared with the straight-line repayment method that calculates an equal annual repayment amount by dividing the total loan principle by the number of repayment years. The interest expenses for the loan during construction are determined in accordance with the LIBOR-based 5-year fixed swap rate 1.883% as of August 2014), plus a fixed effective contractual spread of 0.50% and a maturity premium of 0.10%. For the sake of conservativeness, the rebate on funding cost margin has been ignored. A 0.15% commitment charge is to be incurred on the undisbursed balance of loan


3

on a yearly basis. The interests for the ADB loan during operation are determined with the LIBOR-based 10-year fixed swap rate (2.682% as of August 2014), also plus a fixed spread of 0.50% and a maturity premium of 0.10%, where the rebate on funding cost margin is ignored.

4. The ADB loan is expected to be $150 million including financing charges during implementation. The loan has been allocated by Tacheng Prefecture Government (TPG) to the four Project areas as following: $110 million to Tacheng City, $15 million to E’min County, $15 million to Tuoli County and $10 million to Yumin County. The four local governments will contribute their own counterpart funds: CNY 668.25 million from Tacheng City, CNY 126.55 million from E’min County, CNY64.44 million from Tuoli County and CNY 47.36 million from Yumin County. The total capital cost is estimated to be USD 301.10 million, or CNY 1,806.60 million equivalent. The distribution proportions of the capital costs over the five implementation years are assumed to be 15%, 20%, 30%, 25% and 10%.

Table 2: Financing Plan

Share of







Total 1,817.25 302.87 100.00%


SourceAmount


5. The financial sources for ADB loan repayment and for maintenance of the facilities after project completion, will come from three government income channels: (1) the city construction and maintenance fee of the corresponding year; (2) the land right transfer fee of the year; (3) other sources listed in the year’s fiscal budget. These other sources may include the annual financial aid provided by Liaoning Province, the twin counterpart of TPG. Such a financial aid is estimated to be CNY540 million in 2014 and is expected to grow at an annual rate of 25% over the next few years.

C. Government’s Fiscal Capacity and Solvency Assessment

6. Based on the generally accepted criteria employed by the World Bank, the counterpart contributions are considered to be affordable by the government if the required annual amount does not exceed 15%–20% of the projected annual capital construction budget. Alternatively, the project’s annual counterpart funding is compared with government’s overall annual expenditure and also as a share of infrastructure projects that are funded by the government. In the case of debt service, the general acceptance is that debt service payments associated with a project will not cause concern if they do not exceed 2.5% of the fiscal income of the year or 1.0% of the overall government spending.

7. From 2009 to 2013 the fiscal incomes of TPG as a whole increased from CNY1.37 billion to CNY4.25 billion at a compound annual growth rate (CAGR) of 30.5%. This was a significant achievement considering the overall fiscal incomes of China during the same period increased by 17.2%. It is worth to notice that in the fiscal income structure two thirds (66.85%) derived from the fiscal transfers by the central government or financial aid provided by the twin counterpart province. This implies a great supports to XUAR from the other areas of the country, especially the central government and eastern regions. The fiscal expenditure of TPG has also increased at an over 30% CAGR. The historical fiscal incomes and expenditures of Tacheng City and E’min, Tuoli and Yumin Counties have encountered a similar trend during the same period.


4

8. If the country’s GDP average growth is estimated at 7% over the next 5-10 years, XUAR’s growth may be at 9% and Tacheng Prefecture’s GDP could increase by 11-12% yearly. As a result, it is expected that TPG’s fiscal incomes would increase by 25% in 2014-2016, by 20% in 2017-2020 and by 15% thereafter, provided the government’s treasury structures stay unchanged. The key precondition for intensified fiscal capacity in future is that the fiscal transfer and financial aid from outside will maintain the current momentum. Such a forecast is deemed reasonable and conservative, since the central government has made long-term commitment from political and strategic perspectives to supporting the social and economic development in XUAR, and TPG is in the frontier for consolidating the ties between China and the Central Asia countries.

9. For the whole Project the share of counterpart fund in the annual fiscal income of TPG will be 0.70% at most in the construction period of 2015-2019. The loan principle and interest repayment combined with annual recurrent O&M cost will be as much as 0.20% of the fiscal expenditure in the first operation year and will decrease gradually over the following years along with the reduction of interest payments. It signifies a relatively strong sustainability of TPG and a general confidence in the financial sources from the Chinese side for the Project.

10. For Tacheng City the counterpart fund will account for 4.11% at most in the city’s annual fiscal income. The spending on debt service and O&M will be 1.20% of the fiscal expenditure in the first operation year, which is moderately over the World Bank’s project sustainability benchmark. Even though the 1.0% threshold is just an early warning line rather than a risky line, attention shall be paid to careful arrangement of the funds in the light of a cautious project financing plan and loan repayment schedule. A more relaxing fiscal status is envisaged for E’min, Tuoli and Yumin Counties, where the highest percentage of counterpart fund against the annual fiscal income during project implementation will be 0.80%, 0.39% and 0.46%, and the highest share of debt service plus O&M in the annual fiscal expenditure will be 0.17%, 0.15% and 0.16%.

11. The analysis illustrates that based on the assumed growth rates and financial sources identified during project preparation, including normal budgets, special funds incomes, subsidies, fiscal transfer and allocations, TPG as a whole and the three county governments are expected to possess sufficient counterpart funds for project implementation, namely, physical construction, facility maintenance and loan repayment. Tacheng City may feel some sort of pressure in the first few years of project implementation and at the early stage of facility operations. However, it is believed that TPG will grant full support to Tacheng City in case of temporary financing shortage.

D. Financial Viability Assessment for Revenue-Generating Components

12. The water tariff covers the cost for water treatment plants and the cost for water supply pipeline networks in the region. The average water tariff CNY1.53/m3 in Tacheng City, including CNY1.10/m3 for households, was determined in 2003. In 2012 the average water supply cost was CNY1.98/m3 already, which brought about large quantity of government subsidy. A water tariff reform plan was proposed for Tacheng City in later 2013 and subject to final approval by TPG before being executed in 2014 or 2015. The new tariff, making the water supply cost break-even, will also be the step-1 tariff of a potential stepped water tariff system. Whereas the step-1 tariff is aimed to cover 80-90% of household users, a step-2 water tariff will be 1.5 times the step-1 tariff and expected to be established after 2015.

13. According to the water tariff reform proposal for Tacheng City the average water tariff shall be lifted up to CNY2.11/m3, increased by 36.55%, based on the estimated water consumption volume calculated by deducting 12% water leakage from the average water supply volume during 2010-2012. This will delete the government subsidy to water usage in a general manner. After completion of the tariff reform the water spending by each household member each month will be increased by CNY1.30. But the current tariff CNY1.10/m3 will still be applied to the low-income families.


5

14. The average household disposable income per capita in Tacheng City and E’min County was CNY17,756 in 2013. Assuming 5 people per family on average and 200 liters of water consumed per person per day, the daily water consumption by a family would be 1,000 litres (200 litres x 5 persons) or 1 m3 and the yearly water consumption cost for a family would be CNY620.50 (1 m3/d x CNY1.70/m3 x 365 days). The waste water treatment charge for a family would be CNY146 (80% x 1 m3/d x CNY0.50/m3 x 365 days). Therefore, the yearly total water expenditure of a family is CNY766.50. The average household disposable income is currently CNY88,780 (CNY17,756 x 5 persons) a year. As a result, the share of water expense in the household disposable income will be 0.86% after the tariff reform is realized eventually. This is well within the envisaged comfortable zone for water cost affordability.

15. Promulgated in 2012, the current heat tariff in Tacheng City is CNY22.275/m2 for the whole heating period or around 180 days a year. There is no plan to adjust the heat tariff in the near future because the price of coal used for electricity production and heat generation is strictly constrained in XUAR, whereas in the eastern regions of the country the market force plays a dominant role in coal price setting.

16. For financial analysis of the revenue-generating sub-projects a 20-year operation period is assumed. The value of civil works is depreciated for 20 years, while the value of equipment is depreciated for 15 years. The income tax rate is 25% on the pre-tax operating profit. The after-tax cost of equity is assumed to be 8% as usually applied to water supply projects. The weighted average cost of capital (WACC) is computed to be 2.9%.

17. The water supply sub-projects in Tacheng City and E’min County are financially analyzed through proportionally allocating part of the expected water tariff and part of the overall water supply cost in the area to those sub-projects. Out of the expected water tariff CNY2.11/m3 to be utilized in Tacheng City after the tariff reform, CNY0.58/m3 is allocated to the water supply sub-project with capacity of 33,500 m3 a day. The water supply sub-project in E’min County with capacity of 8,500 m3 a day is allocated with CNY0.35/m3 from the expected water tariff. The water supply entities are charged with 3% water resources fee on its revenue. Incorporated with the capital and operating costs, the financial internal rate of return (FIRR) for the two sub-projects are 5.83% and 5.25% respectively, which are well above the WACC. A 10% plus/minus change to either the capital costs or the revenues does not turn the sub-projects into a negative territory. The sales revenue tends to be more sensitive than the capital cost.

18. The waste water treatment sub-projects in Tacheng City and E’min County are both allocated with CNY0.30/m3 from CNY0.80/m3 of their own waste water treatment charge. Based on the daily drainage volume of 58,200 m3 and 9,500 m3 respectively and combined with the estimated capital and operating costs, the FIRR of the two sub-projects are 4.54% and 4.71% which are higher than the WACC. The sensitivity analysis concludes that the sub-projects are basically risk-resistant when the capital cost and revenue change within a range of 10%.

19. The central heating sub-project including several heat exchange stations will be connected after completion with the existing heating pipeline network in Tacheng City by the Tacheng heat supplying entity, who buys heat from the heat generators and sells it to end-users. The heat purchasing cost is CNY14.36/GJ and the heat selling price is CNY22.275/GJ. The entity incurs operating costs for electricity, water, coal, labor, maintenance, administration and so on apart from the heat purchasing cost. The FIRR is calculated to be 8.40%. The sub-project is considered fairly safe in terms of financial risk.


App J - 1

Appendix J

Economic Analysis


App J - 2

ECONOMIC ANALYSIS

A. Introduction

1. The central government of PRC is accelerating the development of small- and medium-sized cities. Small and medium-sized cities contributed to 56.22 percent of the country's overall economy in 2012, with a combined GDP of CNY 26.51 trillion. China’s urbanization rate reaches 52.57% by the end of 2012, measured by the urban population, up 1.3% from a year earlier1. Urbanization is thought a key for China’s modernization. By clustering the production and innovation capacities in the cities, economies of scale can achieve. However, incomplete urbanization will not only impede its growth, but also become a source of widened income inequality and consequent social tension and instability. Adequate infrastructure would help to mitigate the negative impact of rapid urbanization in medium-sized cities. This is because adequate infrastructure will ensure that local or migrant workers can get easier access to better public transportation system, sanitation water supply, public services, affordable housing and education as urban residents. These benefits can eventually yield better employment opportunities for the vulnerable groups at a lower cost. 2. Tacheng city was confirmed by the state council as ‘further opening city along the border’ in 1992 and ‘autonomous local reform and opening experimental area’ in 1994 and gained rapid economic growth. The GDP reached CNY6.83 billion in 2013 or 13.2% annual growth rate. Fiscal revenue grew to CNY0.41 billion in 2013 from previous year, or a growth rate of 36.9%. Foreign trade volume in terms of value, realized USD0.27 billion. Disposable income for farmers increased CNY2800 to CNY 13650, and for urban residents, it grew CNY 1850 to CNY 18450, in 2013. During the 12th five year plan period, GDP is expected to grow at 24% annually; and 20% and 16% annually for 2015-2020 and 2020-2030 periods respectively. This implies that the GDP will reach CNY12.19 billion by 2015, 30.03 billion by 2020, and 134.65 billion by 2030. 3. However, Tacheng faces urgent needs for investments on its infrastructures currently. The proposed project will deal with the demand for urban road networks, water supply, wastewater collection, heat transmission of centralized heating, river rehabilitation, and solid waste management in Tacheng. B. Justification and Demand 4. The Tacheng subproject will upgrade and build urban roads, water supply, sanitary drainage, heating, MSW management, rehabilitate and upgrade the exiting alleys, operation and maintenance equipment, river rehabilitation for Kalanggur River, upgrade equipment for city operation and maintenance operation, security monitoring system for Baktu Port, and the management and maintenance equipment at Baktu Port. Tacheng City is the administration, cultural and business center for the prefecture and it is the development center for border trade, agricultural production and tourism development. The existing urban area cannot accommodate the fast population growth from the migration labor from the countryside and the fast pace of urbanization, especially the projected fast growth of border trade development. The lagged behind urban infrastructures and municipal services have put negative impacts on the local economic development including less competitiveness to attract more investments and skilled people. The subproject will help improve the living condition in the urban area and improve the investment environment to increase the city competiveness. 5. In Tacheng city, many urban residents live in the areas without proper urban infrastructures and municipal services. Many urban alleys are without pavement and they will become difficult to access during the rainy seasons. Many alleys are without street lighting and

1 This rate was 39.09% in 2002.


App J - 3

other fundamental facilities. The proposed project includes a component to improve the existing alleys in the exiting urban areas to provide new pavement, street lighting and other urban facilities in some sections of the city. The component will improve the living condition of the existing urban residents and improve the urban living environment. 6. In comparison to other developed areas, even to the cities in central Xinjiang, Tacheng Prefecture is at a relatively remote and much less developed area. There are significant differences in economic productions and resident incomes between the area and other developed areas. The urban infrastructures and municipal services are out-of-date and require large investment for upgrading. It can be estimated that the urban development and living condition in Tacheng area is about many years lagging behind the more developed area. As more rural people migrating to the cities and the expected fast urban population growth, the existing urban infrastructures and municipal services are in urgent need for upgrading and improvements. Xinjiang is one of the targeted area receiving supports from the more developed areas in coastal and central PRC under the national policies of Western Development Strategy and Supporting Xinjiang Program. The central government has developed many policies and brought in a lot investment to help local urban development and city construction. The proposed project is in line with the PRC policy to support Xinjiang development, helping to improve and upgrade the urban infrastructures and municipal services, and helping reduce the poverty at this remote and less developed area. 7. Due to the rapid urbanization process2, the exiting urban road systems in Tacheng, Emin, Tuoli and Yumin cannot meet the urban development needs. The proposed project will build the 2nd, 3rd, 4th and 5th ring roads and connecting roads in Tacheng, along with water supply, sanitary sewers, power supply, stormwater drainage, public transport, street lightings, etc. The proposed project will greatly shorten local residents’ travel time, generating more jobs, increase vehicle life, improve the safety of pedestrians, and reduce traffic accidents and associated damages. When the project is completed, total urban road length will increase by 30km, total road areas will reach 172.73hm2, or 18.32% of urban total construction areas. 8. Similarly, Emin county’s road network is lagged and became a constraint for the development and quality of urban life. The proposed project will construct 5 new road in the county town with a total length of 10.13km, extend one existing road with a length of 3.22km, as well as associated street lighting, greening, traffic signs, sanitation facilities. The project will also construct water supply networks as well as sewer and stormwater drainage pipelines. 9. For Tuoli county town, the project will construct a 14km long outer circle road. This road will serve multiple purposes such as stretching the town area and releasing traffic pressures from boundary cross vehicles etc. The proposed project will also invest in Yumin county for 6 urban roads with a total length of 9.71km, of which 3 are newly constructed. 10. For water supply demand in Tacheng, the FSR provides several approaches including per capita water consumption and population growth, category, and construction area approach. The three approaches yield consistent projections of long run water demand. The FSR concludes that the short run water demand is 3×104m³/d and long run demand is 8.28×

104m ³ /d. The proposed project will also finance a considerable amount of solid waste collection, transport, storage facilities in Tacheng city. 11. The proposed project will also finance a considerable amount of solid waste collection, transport, storage facilities in Tacheng city. Based on the analysis of daily per capita solid waste generation, the FSR projects the annual solid waste output in Tacheng city, which is summarized in the following table.

2 Currently total population in Tacheng is 170 thousand, where the planned population by 2015 is 132 thousand,

making the infrastructure lagged. By 2025, the expected population will be 320 thousand.


App J - 4

Table 2. Solid waste output in Tacheng (2013-2030)

12. The demand for centralized heating in Tacheng is projected based on the projected growth of its population and per capita housing space.

Table 3. Tacheng centralized heating load

Centralized heating load MW

Incremental load

(MW) Current load

(MW) Total (MW)

Short run 2017 225.1 316.3 541.4

Mid-run (2022 344.9 316.3 661.2

Long run 2030 567.5 316.3 883.8

C. Methodology and Assumptions

13. The economic returns are mainly in the form of savings in road-user costs due to the provision of a better road facility. The benefits depend on the future transport demand in the area. The economic analysis applies standard transport model through simulations of the traffic load using existing data for calibration. By modifying the number of trips generated and attracted by each area, it is possible to simulate changes in average daily intensities for each route, both with and without the Project. Three types of benefits are taken into account: those due to changes in the vehicles' operation costs, changes in accidents' costs, and user travel time savings. 14. The operation costs include: (i) maintenance, repairs and spare parts; (ii) tyres' wear and tear; and (iii) fuel costs. Fuel consumption is calculated as a function of petroleum prices, distances travelled and travelling speed. Average consumption per km at each speed is estimated using national data. Accidents' costs with and without the Project are computed as a function of total travelled distance. Note that theoretically this benefit can be negative in net since although improve road infrastructure reduces the number of accidents which would take place, would increase average driving speeds, thus increases the probability of death in each accident. When converting travel time savings by absolute time values into monetary units, a value for travel time savings needs to be chosen. The detailed road transport model and its assumptions are relegated to the appendix. 15. The economic benefits of water supply pipelines, sewer and stormwater drainage system, as well as centralized heating, are assumed as parts of the total economic benefits of the complete corresponding systems, i.e., for water supply, the proportion of benefit is assumed as project investment against all necessary investments including water treatment facilities and

Year Service

population

Per capita per day weight

(Kg/p.c.d)

Daily Ouput (T/d)

Annual

output 104T/

year

Accumulated

output 104

T/year

2013 50000 1.47 73.50 2.68 2.68

2019 83974 1.41 118.40 4.32 24.49

2030 196000 1.30 254.80 9.30 98.50


App J - 5

distribution networks. Similar treatment is applied to sewer and storm water drainage pipelines, and centralized heating components. 16. The economic evaluation of the project was carried out by comparing with-project and without-project scenarios. All benefits and costs are in constant 2013 prices. The economic costs of the project components include (i) capital cost, including land acquisition and resettlement, and environmental mitigation and monitoring; and (ii) operation and maintenance costs, including replacement cost of depreciated equipment. Tradable commodities were valued at border prices at the prevailing exchange rate. Non-tradable commodities were valued through shadow prices using a standard conversion factor of 0.987, and specific conversion factors: 1.00 for equipment and civil works, 1.00 for skilled labor, and 0.67 for unskilled labor. D. Least-Cost Analysis 17. Least-cost analysis is used for alternative analysis. The FSRs consider different engineering options for all project components. For road networks components, costs of pavement materials between asphalt and cement concrete are compared. As part of the road components, costs of bridge structures between pre-stressed concrete box girder and pre-stressed concrete hollow slab are compared.

Table 4. Costs for road pavement options

Asphalt concrete Cement concrete

Vehicle lane cost

CNY229.5/m2 CNY240/m2

Passenger lane cost

CNY80/m2 CNY80/m2

18. Concrete is a long-lasting option, with reduced needs for maintenance and repair as compared to asphalt. It has a smooth and attractive surface, and can showcase precise, fine edges, holds up in most weather conditions and vehicle weights, and is versatile for different usages. However concrete cracks over time, and a topcoat to existing concrete is impossible. Since asphalt entails a lower investment cost and overall maintenance cost, asphalt is chosen as the least cost option.

Table 5. Costs for bridge structure options

Pre-stressed Concrete

Box Girder Bridge Pre-stressed concrete

hollow slab Bridge

Pros and cons

Duration of construction is longer; outlook less

attractive.

Shorter duration of construction; higher

urban landscape value

Costs CNY13000/m2 CNY9000/m2

19. Since pre-stressed concrete hollow slab bridge has a lower cost, it is chosen as the least cost option against the pre-stressed concrete box girder bridge. 20. The costs of pipeline materials for the water supply and sewer drainage purposes are compared at different diameter levels. It is found that the conclusions drawn by the FSRs based on these least cost comparisons are reasonable and convincing. 21. Financial costs, including physical contingencies, were converted to economic costs through different approaches. For the road component, the project costs included (i) the economic costs of construction, including monetary compensation for land acquisition and resettlement triggered by the road construction; and (ii) the economic costs of road operation and maintenance.


App J - 6

E. Economic Returns

22. The base case EIRR calculation for individual subprojects and the whole project are presented in the following tables. At a 12% discount rate, the whole project is found to be economically viable. The NPV for the whole project is CNY 362.0 million and the base case EIRR for the whole project is 15.3%, which exceeds the EOCC. The EIRRs for Tacheng city, Emin, Tuoli, and Yumin subprojects are 15.5%, 13.8%, 16.2% and 14.6% respectively. The sensitivity analysis shows that the project’s economic return is robust against negative impacts from benefit reduction, cost overrun and project implementation delay. The results of the sensitivity analysis, EIRR for each subproject, as well as the whole project, are presented below.

Table 6. Sensitivity Analysis for the Whole Project

Percent Change Recalculated ENPV (12%) Switching Change Variable in Variable EIRR (CNY million) Value

1. Benefit reduction 10% 13.7% 176.8 20.0%

2. Capital cost overrun 10% 14.3% 265.7 26.0%

3. Delay in benefits by one year 14.1% 246.4 2 years

4. Combination of 1, 2 and 3 11.2% (99.3)

Base EIRR = 15.3%

Base NPV @12% = 362.0 CNY million F. Distribution Analysis and Poverty Impact Indicator 23. As a result of the project, some participants lose and others gain. At a discount rate of 12 percent, the economy will lose CNY 124.23 million, mainly because of expenditures on O&M. Laborers will gain CNY 45.06 million because the project pays wages in excess of the economic opportunity cost of labor. The project does not generate financial return but generates sufficient economic return; as the result the consumers will gain CNY2074.11 million from more convenient transportation and improved living environment.

Table 7. Distribution of the Whole Project Benefits Accounts Beneficiaries Financial Economic Difference Government Accounts Accounts Consumers Economy Labor Total Benefits 2074.11 2074.11 2074.11 0.00 Total benefits 0.00 2074.11 2074.11 2074.11 Costs Capital Costs 1203.36 1079.13 (124.23) 124.23 Labor 224.84 179.79 (45.06) 45.06 Income Taxes 85.16 (85.16) 85.16 O & M 596.76 589.50 (7.25) 7.25 Total Costs 2110.12 1848.42 (261.70) Net Benefits (2110.12) 225.69 2335.82 2074.11 216.65 45.06 2335.82


App K - 1

Appendix K

Procurement Plan


App K - 2

PROCUREMENT PLAN

Basic Data

Project Name: Xinjiang Tacheng Border Cities and Counties Development Project Project Number: Approve Number: Country: People’s Republic of China Executing Agency: Xinjiang Tacheng Prefecture

Government Loan Amount: $150.0 million ADB Financing: $150 million Non-ADB Financing: Date of First Procurement Plan: (loan approval date) Date of this Procurement Plan: 12 August 2014

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

1. Procurement and Consulting Methods and Thresholds

Except as the Asian Development Bank (ADB) may otherwise agree, the following process thresholds shall apply to procurement of goods and works.

Procurement of Goods and Works Method Threshold International Competitive Bidding (ICB) for Works $10 million or more International Competitive Bidding for Goods $1 million or more National Competitive Bidding (NCB) for Works Beneath that stated for ICB Works National Competitive Bidding for Goods Beneath that stated for ICB Goods Shopping for Works Below $100,000 Shopping for Goods Below $100,000

Consulting Services

Method Comments Quality and Cost Based Selection (QCBS) Consultant Quality Based Selection (CQS) Individual Consultant Selection (ICS)

Quality and Cost Ratio = 80:20

2. Goods and Works Contracts Estimated to Cost $1 Million or More

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


App K - 3

Package

No General Description

Estimated

Value

Procurement

Method

Review

(Prior/Post)

Bidding

Procedure

Advertisement

(Quarter/Year) Comments

Tacheng Subproject

Civil Work

CTC01Second Ring Road & Hemu Nan

Road$8,364,251 NCB (AC&RF) Prior 1S1E Q4/2014

CTC02 Hemei Road & Tianyuan Nan Road $7,186,134 NCB Post 1S1E Q3/2015

CTC03Changye Yi Street & Heshan Nan

Road$9,031,675 NCB Post 1S1E Q4/2015

CTC04Xixing Nan Road, Chanye Si Street &

Chanye Nan San Road$12,106,380 ICB Prior 1S1E Q4/2016

CTC05 Third Ring Road & Fifth Ring Road $15,105,887 ICB Prior 1S1E Q4/2017

CTC06 Fourth Ring Road & Tiyuguan Xi Road $6,122,469 NCB Post 1S1E Q4/2018

CTC07 Tacheng Alley Rehabilitation $2,848,317 NCB Post 1S1E Q2/2015

CTC08Water Supply Pipe Lines on Existing

Roads$3,603,093 NCB Post 1S1E Q4/2015

CTC09Sanitary Sewer Pipe Line on Existing

Roads$5,081,898 NCB Post 1S1E Q4/2015

CTC10Primary Heating Pipe Line on New

Roads - Phase I$6,817,433 NCB Post 1S1E Q1/2015

CTC11Primary Heating Pipe Line - Phase II

(Liaota)$8,714,181 NCB Post 1S1E Q1/2018

CTC12Primary Heating Pipe Line - Phase II

(Tacheng)$5,203,330 NCB Post 1S1E Q1/2019

CTC13River Rehablitation (Sta 7+400 to

11+400)$5,537,908 NCB Prior 1S1E Q1/2015

CTC14River Rehablitation (Sta11+400 to

17+104)$9,589,440 NCB Post 1S1E Q1/2016

CTC15River Rehablitation (Sta 21+604 to

27+123)$2,983,881 NCB Post 1S1E Q1/2015

CTC16 Embankment Vegetation & Trees $6,219,126 NCB Post 1S1E Q4/2015

CTC17 4 Bridges over Kalanggur River $7,028,437 NCB Post 1S1E Q2/2015

Equipment Supply & Installation

ETC02 Street Lighting $3,690,134 ICB Prior 1S1E Q1/2015

ETC04Heating Exchange Stations &

Equipment - Phase I$2,343,291 ICB Prior 1S1E Q1/2015 Note 1

ETC05Heating Exchange Stations &

Equipment - Phase II$3,716,672 ICB Prior 1S1E Q1/2017

ETC06MSW and Urban Maintenance

Equipment$2,379,600 ICB Prior 1S1E Q4/2015

Emin Subproject

Civil Work

CEM01Arxiate Road, Wenhua Road, Guihua

Wu Road$14,339,601 ICB (AC&RF) Prior 1S1E Q4/2014

CEM02 Guihua Qi Road & Guihua Jiu Road $5,359,851 NCB (AC&RF) Prior 1S1E Q4/2014 Note 2


Tuoli Subproject

Civil Work

CTL01 Outer Ring Road(K0+00 to K5+200) $6,639,621 NCB(AC&RF) Prior 1S1E Q4/2014

CTL02 Outer Ring Road(K5+200 to K10+500) $6,767,306 NCB Post 1S1E Q4/2015

CTL03 Outer Ring Road(K10+500 to K14+090 $4,584,135 NCB Post 1S1E Q4/2016


Yumin Subproject

Civil Work

CYM01Donghuan Road and Guihua Yi Road

& Longzhen Road$6,194,292 NCB Prior 1S1E Q1/2015

CYM02Guihua Er Road, Yujinxian Road &

Honghua Road$5,074,890 NCB Post 1S1E Q1/2017


EYM01 Maintenance Equipment $1,449,646 ICB Prior 1S1E Q2/2015

NCB = National Competitive Bid, ICB = International Competitive Bid, AC = Advance Contracting, RF = Retroactive Financing

Notes:

1. Includes civil work cost estimated at = $432,320

2. Includes drainage pipe on Jiarblark Road.



App K - 4

3. Consulting Services Contracts Estimated to Cost $100,000 or More

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

Package

No. General Description

Estimated

Value

Procurement

Method

Review

(Prior/Post)

Advertisement

Date

(quarter/year)

Type of

Proposal Comments

CS1Consulting Services and Capacity

Development$1,623,200 QCBS (AC) Prior Q4/2014 Full

QCBS = Quality and Cost Based Selection, ICS = Individual Consultant Selection, AC = Advance Contracting, RF = Retroactive Financing,


4. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100,000 (Smaller Value Contracts)

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

Goods and Works

Package


Estimated

Value

Procurement

Method

Review

(Prior/Post)

Bidding

Procedure

Advertisement

(quarter/year) Comments

ETC01 Baktu Port Equipment $676,691 NCB Post 1S1E Q2/2015

ETC03 Flood Monitoring Equipment $190,933 NCB Post 1S1E Q4/2015

EEM01 Maintenance Equipment $186,695 NCB Post 1S1E Q4/2015

ETL01 Maintenance Equipment $141,667 NCB Post 1S1E Q4/2015

NCB = National Competitive Bid, ICB = International Competitive Bid, AC = Advance Contracting, RF = Retroactive Financing


Consulting Services

Package


Estimated

Value

Procurement

Method

Review

(Prior/Post)

Advertisement

(quarter/year)

Type of

Proposal Comments

CS2 Start Up Support $76,800 ICS (AC&RF) Prior Q4/2014 Biodata

ICS = Individual Consultant Selection, CQS = Consultant Quality Based Selection, AC = Advance Contracting, RF = Retroactive Financing,


B. Indicative List of Packages Required Under the Project

The following table provides an indicative list of goods, works and consulting services contracts over the life of the project, other than those mentioned in previous sections (i.e., those expected beyond the current period).

Goods and Works

Package


Estimated

Value

(cumulative)

Estimated

Number of

Contracts

Procurement

Method

Review

(prior/post)

Bidding

Procedure Comments

Works $41,551,867 3 ICB Prior 1S1E

Works $26,558,016 4 NCB Prior 1S1E

Works $102,393,657 17 NCB Post 1S1E

Goods $13,579,343 5 ICB Prior 1S1E

Goods $1,195,986 4 NCB Post 1S1E

NCB = National Competitive Bid, ICB = International Competitive Bid,

AD = Advance Contracting, RF = Retroactive Financing



App K - 5

Consulting Services

Package


Estimated

Value

(cumulative)

Procurement

Method

Review

(prior/post)

No of

Contracts

Type of

Proposal Comments

CS1Consulting Services and Capacity

Development$1,623,200 QCBS (AC) Prior 1 Full Q:C = 80:20

CS2 Start Up Support $76,800 ICS (AC&RF) Prior 1 Biodata

NCB = National Competitive Bid, ICB = International Competitive Bid, CQS = Consultant Qualification Selection

AC = Advance Contracting, RF = Retroactive Financing


C. List of Awarded and On-going, and Completed Contracts

The following tables list the awarded and on-going contracts, and completed contracts.

a. Awarded and Ongoing Contracts - None b. Completed Contracts - None

D. Non-ADB Financing - None

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


App P - 1

Appendix P

RISK ASSESSMENT AND RISK MANAGEMENT PLAN


App P - 2

RISK ASSESSMENT AND RISK MANAGEMENT PLAN

1. On 31 July 2006, the Asian Development Bank (ADB) approved its second Governance and Anticorruption Action Plan (GACAP II 1), which aims to improve ADB’s performance in implementing governance and anticorruption policies in sectors where ADB is active. GACAP II requires the preparation of governance risk assessment and management plans (GRAMPs) as an integral part of country partnership strategies, programs and projects. GRAMPs focus on specific thematic issues—public financial management (PFM), procurement and anti-corruption—at the country level, in priority sectors where ADB is active, and for programs and projects. 2. In the case of the People's Republic of China (PRC), a country-level GRAMP was prepared in 2007 with a focus on two priority sectors: railways and wastewater management This document identifies the main governance-related risks confronting the proposed Project, with emphasis on the GACAP II themes of PFM, procurement, and anti-corruption. 3. For the proposed project at Tacheng Prefecture in Xinjiang Uygur Autonomous Region, in addition to the risks commonly presenting at the country level, there are project specific risks in conjunction to the urban development, project implementation and project management. The risks and the management to mitigate these risks are summarized in the following table.

Risks Assessment

without Mitigation

Management Plan

Assessment with

Mitigation

Responsible parties: TPG, TCMG, EMCG, TLCG, YMCG, Xinjiang PMO, Xinjiang FD, Xinjiang DRC, Xinjiang HCD, TP PMO, PIUs, audit agencies, consultants

1. Public Financial Management

1.1. Capacity building Weak capacity of implementing agencies to effectively withdraw ADB loan proceeds, resulting in disbursement and construction delays

High Provide training workshops to build capacity for PMO and IA staff and relevant government agencies

(Before and during project

implementation)

Low

1.2. Internal controls Weak financial management and internal control mechanisms for implementing agencies

Medium A separate auditor’s opinion on the use of the imprest account and statement of expenditure will be part of the audit reports. The implementing agencies annual audited financial statements and audited project accounts will be submitted to ADB no later than 6 months after the end of the fiscal

Low

1 Second Governance and Anticorruption Plan, July 2007, Revised December 2011


App P - 3

Risks Assessment

without Mitigation

Management Plan

Assessment with

Mitigation

year throughout the implementation period (During project implementation).

1.3. Counterpart funding Disbursements to ADB projects are affected by late provision of counterpart funding.

Medium Assurance from TCMG, EMCG, TLCG and YMCG that all required counterpart funding are from the government budget

(Before, during and after project

implementation).

Low

1.3 Exchange Rate The risk of the change of the exchange rate between the local currency and foreign currency (US Dollar) may result in the short fall of loan amount when converting to local currency

Medium Use the projected currency exchange rate at the project preparation to give a best estimated average exchange rate during the project implementation rather to use the current real time exchange rate

Low

2. Procurement

2.1. Procurement capacity The implementing agencies and PIUs do not have sufficient capacity or recent experience with procurement under ADB-funded projects, resulting in poor preparation of the procurement plan and bidding documents; poor management of the procurement process, and significant delay of the process.

High • Provide start-up technical assistant to bidding document preparation including technical specifications and bidding process before the mobilization of the loan implementation consultants.

• Provide implementation consulting support for technical specifications in the bidding documents and assisting in tender documentation preparation.

• Engage tendering agent with significant ADB experience in a timely manner to assist with contract, bid documentation, bidding and evaluation procedures, and appointment of contractors.


implementation)

Low

2.2. Contract variation ADB procurement

Medium • Provide technical assistance in bidding document preparation to ensure the

Low


App P - 4

Risks Assessment

without Mitigation

Management Plan

Assessment with

Mitigation

guidelines require to award the contract to the lowest bidder. As a result of competition, lower bid prices are common for all ADB projects. The contractors will try to apply for more contract variations to claim more money. Contract variations occur frequently because of poor quality of site survey and bidding documentation.

contract documents covering all major construction items avoiding potential variation.

• Provide technical assistance in design review to ensure that the designs are detailed enough to cover all major construction items.

• Provide rigorous and frequent training for staff involved in procurement

• PMO’s to review and request revision of the preliminary and final designs to ensure the quality of design drawings and Bill of Quantities.


implementation)

2.3. Cost escalation Cost estimates for construction tend to be unrealistic because of inadequate design and costs escalate because of contract variation and renegotiation after awarding of contract.

High • Significant attention paid by the project team and PPTA consultant during project preparation.

• Assistance for detailed design and technical specification review.

• Build capacity of contractors for professional bidding

• Provide clear instruction on bidding procedures, compliance with instructions, and evaluation and selection criteria

• Prepare and provide high quality bidding documents to cover all major construction items

(Before and during

implementation)

Low

2.4. Contract Management Lack of management experience in ADB funded projects and unfamiliar with ADB project management policies and procedures leading to poor management, delay of

High • Provide strong loan implementation consultants to assist EA/IAs implementing the project

• Provide extensive training and capacity development program to improve the management capacity

• Enhance monitoring and

Low


App P - 5

Risks Assessment

without Mitigation

Management Plan

Assessment with

Mitigation

management submission and delay of the project

guidance program during project implementation

(Before and during implementation)

2.5. Construction supervision Lack of construction supervision to oversee and evaluate contractor’s performance, leading to substandard operation, administration, and service.

Medium • Provide implementation consulting assistance to PMO and implementing agencies to develop construction management and supervision policies and procedures.

• Develop and implement monitoring mechanism to ensure that supervision by relevant agencies is on time.

• Provide assistance to PMO’s and implementing agencies to build capacity in monitoring. (During implementation)

Low

3. Institutional Strengthening

The current PMO is established under the municipal government DRC. The PMO has strong capacity for the project preparation, but relatively weak in project implementation, which may impact the project implementation

Medium • Carry out capacity development and training to strengthen the project implementation capacity

• Strengthen the PMO with the people from the Housing and Construction Bureau who will directly manage and supervise the project construction and implementation

Low

Change of PMO, IAs and PIUs project management staffs causing the discontinuation of project management and project implementation

Medium • Assurance that TPG, TCMG, EMCG, TLCG, YMCG will implement the institutional strengthening and maintain the stability of the management staffs

• Implementation of the capacity development program and training to improve the project management capacity of the managing staff

Low


App P - 6

Risks Assessment

without Mitigation

Management Plan

Assessment with

Mitigation

4. Approval of CHP for Heating Component

The heat source of the proposed heating pipe network and heat exchange stations is a CHP to be invested and built by another state enterprise (China Electrify Investment Company). The CHP has been cleared for proceed by XUAR, but waiting for NDRC approval. The final approval and the construction date are yet to be determined. The delay of the CHP construction may result in no heat source for the proposed heating pipe network

High • Close coordination among TCMG, China Electricity Investment Company, XUAR DRC and other involved agencies shall be prioritized to ensure the approval and constriction of CHP prior to the construction of the heating component

• The construction implementation plan shall be developed to implement the heating component late in the project implementation so as to after the approval of the CHP construction

• Since the proposed urban road network only at a small part of the heating network, an interim backup plan has been developed for the project roads where the heating pipe network will be built. For this limited area, the existing heating plant will be used to supply the heat in an interim basis till the CHP is built and operational. The existing heat plant has the adequate capacity to supply heat for this limited new urban area.

Low

5. Delay in Land Acquisition and Resettlement Approval and Implementation

Delay of land acquisition and resettlement due to the shortage of counterpart funding or unforeseen problems raised during LAR negotiation

High • Assurance from TCMG, EMCG, TLCG and YMCG the availability of counterpart funding with detailed financing plan

• Update the resettlement plans based on the final design and survey

• Institutional strengthening and training for carrying out LAR tasks

Low


App P - 7

Risks Assessment

without Mitigation

Management Plan

Assessment with

Mitigation

3. Corruption

3.1. Corrupt practices Corrupt practices may affect project design, procurement and implementation, leading to poor-quality projects.

Medium • Assurance that TPG, TCMG, EMCG, TLCG and YMCG will further undertake the following anticorruption actions: (i) involve full-time officials from the government discipline investigation bureau in the bidding process and award of contracts and in the approval of variation during construction; (ii) executing with the civil works both an anticorruption contract and civil works contract; and (iii) periodically inspecting the contractor’s fund withdrawals and settlements.

• Introduce a dual-signing system in which the civil works contract winner also signs an anticorruption contract with the employer. (During implementation)

Low

3.2. Anti-corruption measures Limited enforcement of anti-corruption measures.

Medium • Assist the PMO’s and implementing agencies to ensure good governance, accountability, and transparency in project operations.

• In consultation with relevant central government ministries, update rules and regulations on local and corporate governance and anticorruption, and enhance the transparency of implementing agency operations.

(During project implementation)

Low

Overall MEDIUM LOW

O&M = operation and maintenance, PPTA = project preparatory technical assistance, DRC = Development and Reform Commission, TPG = Tacheng Prefecture Government, TCMG = Tacheng City Municipal Government, EMCG = Emin County Government, TLCG = Tuoli County Government, YMCG = Yumin County Government, PMO =


App P - 8

project management office, PIU = Project Implementing Unit, XUAR = Xinjiang Uygur Autonomous Region, TP = Tacheng Prefecture, HCD = Housing and Construction Department, FD = Financial Department,

Source: Asian Development Bank.


App Q - 1

Appendix Q

Procurement Capacity Assessment


App Q - 2

PROCUREMENT CAPACITY ASSESSMENT

A. Introduction 1. As part of the project-preparation process, ADB requires an assessment of the capacity of the executing agency (EA) and implementing agencies (IAs) to procure goods, works and consulting services, and recommendations to be made on actions required to address weakness or constraints. Specifically, the assessment exercise involves:

(i) Evaluating the ability of existing EA/IA procurement processes to comply with ADB’s procurement guidelines;

(ii) Identifying the need for training and specific procurement arrangements (in resources or processes) to be adopted during project preparation and implementation, to develop staff competence and improve effectiveness, and to minimize implementation risks; and

(iii) Defining the appropriate level of review, either prior or post by ADB.

2. The assessment has three components:

(i) The assessment of the general procurement environment; (ii) A questionnaire completed by the EA and IAs; and (iii) The preparation of a procurement capacity assessment report, including corrective

recommendations. B. Expected Procurement under the Project 3. The project will involve a broad range of procurement contracts covering consulting services, goods and works contracts. There will be three (3) goods contracts procured by ICB (above $1.0 million), five (5) works contract procured by ICB (above $10 million), four (4) goods contracts procured by NCB (between $0.1 million but less than $1.0 million), and thirteen (13) works contracts procured by NCB (between $0.1 million and $10 million). There will be also four (4) consulting service contracts, one by QCBS selection, one by individual consultant selection (ICS), and two (2) by consultant qualification selection (CQS). The QCBS (80:20) method will be used to procure consulting services for the loan implementation. C. Assessment of General Procurement Environment 4. The assessment of the general procurement environment for PRC is an exercise that is undertaken by ADB and updated normally on an annual basis. The ADB assessment is shown in Table 1 - National Procurement Environment (PRC). 5. This assessment is essentially to ascertain the level of risks (low, average, or high) associated with the procurement process. The main areas with high risks are identified to be:

(i) Existing procurement law makes no differentiation between procurement processes for consulting services and goods/works;

(ii) Lack of a procurement manual specifying how the legal requirements are translated into detail work procedures, and

(iii) Lack of procurement accreditation or professionalization program. 6. However, the requirement to adhere to the procedures stated in ADB Procurement Guidelines will mitigate these risks to acceptable levels.

Jilin Urban Development Project Appendix R (TA 8172-PRC) Final Report

App Q - 3

Table 1 The National Procurèrent Environnent (PRC) General Procurement Environment Assessment Risk Assessed as Low Average High

1. Is there a procurement law? The answer to this is a simple yes or no, i.e. is there a single law governing procurement which is representative of best practice or is procurement governed through various laws, decrees etc.? Assess this as either “High” or “Low”

X yes

2. Are the laws and regulations clear and concise? If there is no single law check “high”, and similarly if the law is complex and difficult to follow check “average”. If the law is easy to follow check “low”.

X yes

3. What does the law (or regulations applicable to procurement) cover? If there is a single law, “low” will apply when the law covers drafting and use of standard bidding documents evaluation, contracting, through to the management of contracts including payment, warranty and defects liability periods. The less the procurement process is covered the higher the risk. If there is no single law, check “high”

X

4. Does the law cover the procurement of consulting services? If consulting services are not covered or there is no law the risk is high, if they are covered the risk is low.

X

yes

5. Does the law differentiate between processes for consulting services and Goods/Works? If there is no law, or it applies the same processes to consulting services as for goods and works check high. If there is some differentiation but the processes are similar, check average. If consulting services are dealt with separately check low

X no

6. Does the law require advertisement of all procurement opportunities Low risk will be represented through advertisement all above $25,000, average above all above $100,000, high by no advertisement or advertisement at a higher threshold than $100,000.

Requirements are different in different provinces and sectors 7. Are contract awards advertised?

The same thresholds as stated at question 6 should be applied 8. Are there restrictions on goods works and services on the basis of origin?

If procurement is limited to solely national origin check high, if there are restrictions or a national preference scheme, average. If None low

X

9. Do the law or relevant legislation and regulations provide acceptable provision for the participation of state owned enterprises? Only if the SOE is legally and financially autonomous and not a dependent agency of the purchaser low, other than this high

X

10. Are there restrictions on the nationality of bidders and consulting firms invited? If procurement is limited to solely national firms and individuals check high, if there are restrictions or a national preference scheme, average. If None low

X

11. Are foreign bidders and consultants forced to offer through or with local partners? If yes, high; in certain circumstances, average; never, low

X

12. Is there a domestic preference scheme? If there is across the board high, if applicable in limited circumstances, average, if none, low.

X

13. Is there a national standard mandated for use for quality control purposes? No, or Yes with direct, accessible international equivalents low, yes without international equivalents high

X

14. Are any agencies exempt from the law? Such as the security forces, if yes high, also high of any types of goods are exempt from parts of the law such as medicines, text books or any other commodity

For government procurement, yes; For general procurement, no


App Q - 4


15. Is the default method for procurement open competition? Either yes or no and low or high

X

16. Is open procurement easily avoided? If the procurement law allows avoidance of open procurement above the national threshold on the basis of circumstances that are not in response to natural disasters, i.e. simple urgency, check high, if open procurement can be avoided by senior management decision average. If avoidance requires approval of an oversight agency, low.

X

17. Do the rules and regulations require pre-qualification? Only for complex contracts, low, no contracts average, all contracts high.

X

18. Do the rules and regulations require registration? If yes, high, if only for specialist goods such as medicines average. If no registration low.

Require company registered

19. Are there systematic procurement process audits? Yes, low. Only financial audits average, none, high

X

20. Is there a national procurement manual or guide? A single procurement manual or guide, low, manual exists but out of date/not in wide use average, none high

X

21. Do the laws and regulations mandate the use of standard documents? Documents for goods, works and consultants services low, just for 2 of the three average, only one or none high

Depend on sectors, some line ministries have standard documents

22. Have these standard bidding documents been approved for use on ADB projects? Yes low, some but not all average, no high

X

23. Do the regulations require the collection of nationwide statistics on procurement? Yes and statistics collected low, yes but data not collected or used average, no high

X

24. Is consolidated historical procurement data available to the public? Yes low, too much or too little, average, no high

X

25. Do the procurement laws and regulations contain provisions for dealing with misconduct? Such as fraud and corrupt practices – the procurement law or regulations may include or cross refer to anti-corruption legislation. Yes low, no high.

X

26. Is fraud and corruption in procurement regarded as a criminal act? The penalties should include penal servitude (prison) yes low, no high.

X

27. Have there been prosecutions for fraud and corruption? If there have been successful prosecutions for fraud and corruption, low, if prosecutions seem to focus solely on low grade junior staff average, none high

X

28. Is there an alternative disputes resolution process independent of government and courts? If there is an arbitration law and independent process low, if the standard contracts use ICC or similar dispute resolution average, if arbitration is through the courts or can be overturned by courts high.

X

29. Does the law allow for sovereign immunity to the EA for claims against it? If plaintiffs can sue the government for contractual non-performance low, if they cannot high

X


App Q - 5


30. Do the regulations allow for black listing (disbarment) of firms and individuals? If there is no black listing process or the process is transparent and equitable and undertaken by an independent oversight agency low. If there is a process and it is administered by a single line agency such as finance average, if it is administered by the executing agency high.

X

31. Which body oversees procurement? Independent body reporting to the elected body low, single body reporting to the cabinet average, no body or reports to a single state agency such as the Prime Minister or Finance Minister high.

By government at different levels

32. What powers does the oversight body have? If the body can impose administrative sanctions on an EA and its staff and overturn contact awards including ministerial decisions low, if the body only can impose sanctions through the head of the EA, average, if the body can only recommend action high

X

33. Is there a nationwide procurement training plan? If procurement training is assessed and planned for nationwide low, if this is delegated to line agencies average, if there is no strategy or plan high.

X

34. Is there a procurement accreditation or professionalization program? An externally recognized program low, a government sponsored program average, none, high

X

35. Are major projects identified within an agencies appropriation or budget? Yes low, no but a system in place for the ring-fencing of project funds average, neither low

X

36. Is the procurement cycle tied to an annual budgeting cycle? I.e. can procurement activity only commence once a budget is approved?

No a medium expenditure framework is in place low, activity may start up to but excluding contract award average, yes tied to annual budget high

Budget need to be approved, but may not be always on annual basis.

37. Once an appropriation or budget is approved will funds be placed with the EA or can the EA draw them down at will? Yes low, no – additional controls imposed high (such as cash release system)

X

38. Can an EA draw directly from a loan or imprest account or will it spend budgeted funds with the borrower claiming reimbursement?

Draws directly low, from budgeted funds high Both

39. When an EA is implementing a project using funds from the national budget has a delay in funding significantly delayed procurement?

No or not applicable low, yes high X


App Q - 6

D. EA Procurement Capacity Assessment 7. The procurement questionnaire as shown in Annex 1 was used to assess Tacheng Prefecture PMO. The PMO was established under Tacheng Prefecture DRC. The PMO is headed by the director of Tacheng Prefecture DRC. There are four deputy directors, including Vice Party Secretary of TMG, Vice Director of Prefecture DRC, Vice Director of Prefecture FB and Vice Director of Prefecture HCB. All members of the PMO have their regular job duties in addition to job for this project. They are still working at their original departments and undertaking their original duties in addition to the work related to this ADB project. The English proficiency of the PMO staff is low. The PMO will take the lead and coordinate with IAs for the procurement process for the entire project. The PMO will engage a tendering company to assist in procurement for all subprojects in Tacheng city and three counties. The PMO will coordinate with the consultants and the design institute for bidding document preparation, bidding process, bidding evaluation, prepare and submit bidding evaluation reports to ADB for endorsement. The procurement capacity is evaluated through interviews and the questionnaire as divided into five sub-sections:

(i) General resources –staffing and equipment; (ii) Procurement processes for goods and works –preparation of bid documents and

tendering process; (iii) Procurement processes for consulting services – consultant selection procedure; (iv) Process oversight and control – checks-and-balance and contract administration;

and (v) Record keeping.

Assessment of General Resources 8. Tacheng Prefecture Government has participated or involved in several foreign funded projects such as the water supply, sewerage and road construction funded by the Japan Bank for International Cooperation, the preparation of the agricultural water-saving irrigation project funded by the Israel National Government, the water-saving irrigation project funded by the World Bank, of which the total investment of the project including other cities in Xinjiang is $250 million. Some of the management staff in the prefecture government have some experience in dealing with foreign funded projects. In addition, some of the PMO and IA staff have participated in the preparation work for the first ADB finance project in XUAR. Although the Tacheng subproject finally dropped out from this project, the participating staff have accumulated valuable experience. The PMO is utilizing an automatic project management software, i.e. a dynamic monitoring system for investment projects under the central government budget. In terms of training, both the PMO and IA staff have accumulated some knowledge on ADB project preparation and implementation. However, due to limited available staffs and the heavy workload from their regular job duties, the overall procurement capacity is considered weak. 9. The capacity constraint due to inadequacy knowledge of procurement staff could result in delays or mistakes in directing and coordinating engineering design, bidding document preparation, bidding process, bidding evaluation, etc. during the procurement process. The loan implementation consultant is indispensable for successful implementation of the loan project, which should be engaged by EA to provide additional resources in assisting the EA and IAs in complying with the loan agreement terms as regards procurement, project management and other aspects. In considering the weak PMO procurement capacity, it is recommended a start-up procurement consultants shall be engaged even before the engagement of the loan implementation consultant, additional procurement support either from PPTA or other resources, especially in bidding document preparation, will be required to assist the PMO and IAs for the early stage of the procurement process.


App Q - 7

Assessment of Procurement Processes for Goods and Works 10. Responses to the questionnaire show a systematic process is not yet fully in place for preparing bid documents, bids evaluation and contract award. It is understood that the EA will hire a design institute to prepare the preliminary and construction drawing designs, engage a tendering company to assist the preparation of the bidding documents and bidding process. The common practice in PRC is that the design institute will prepare the detailed design drawings and the bills of quantities as the technical parts of the bidding documents, while the tendering company will prepare the commercial part of the bidding documents. However, since the bidding documents for the foreign funded projects require the full technical specifications and much more detailed bills of quantities, the domestic design institutes and PMO staffs are usually not able to complete the technical bidding documents to the quality required for the foreign funded projects. An extensive support from ADB shall be provided to ensure the implementation of the project. Since both design institute and the tendering company have only limited knowledge with ADB funded projects, it is necessary to include experienced procurement specialists both in the implementation consultant team and prior to the engagement of the implementation consultants to help EA/IAs prepare bidding documents and help in bidding process. The “Bid Evaluation Committee’ composed of the owner’s representatives and selected experts external to the organization will decide the successful bidder. The procedure is in principle satisfactory so long as the additional procedures specified in the ADB Procurement Guidelines are also complied with. 11. Due to the lack of engineering background in the implementation of procurement for this kind of complex project, and lack of capacity in preparing the technical parts of the bidding documents involved in the project, it is recommended that the capacity building program for the PMO should include experienced procurement specialists with adequate input assisting bidding document preparation and procurement training. 12. During project implementation, the loan implementation consultant should provide on-the-job training on procurement, review the design documents from the design institute and provide assistance in prepare and review the bid documents and update them using ADB standard bidding documents to ensure compliance with ADB requirements, and in addressing ADB’s comments during the tendering process. Assessment on Procurement Processes for Consulting Services 13. Based on discussions and interviews of the PMO management and staff, it is concluded that they have some experience of procuring a consulting firm for implementation of the Project. It is suggested that ADB provide guidance to the PMOs during recruiting the consulting firm process. It’s recommended that the consulting firm is recruited as soon as possible, certainly before the civil works and equipment contracts are awarded. Assessment of Process Control and Oversight 14. Based on interviews and surveys, the Consultant believes that the PMO has limited technical expertise and experience in urban infrastructure construction supervision and management Although it has some experience in ADB project preparation, it has not implemented any ADB project, so the members are not familiar with ADB procedures, requirements and international procurement process etc. Thus, they have much to learn in order to be effective in managing the project. It appears that control and oversight will be established:

(i) Separate agencies are involved in approving bid documents, tender recommendations etc.

(ii) There are procedures for dealing with invoicing, payment and non-payment. (iii) Declaration of conflict of interest in procurement process will be required.


App Q - 8

15. However, closely monitoring and detailed instructions to the PMO during the procurement process will be required. Additional controls by ADB through its reviews and approvals of bidding documents, instructions to the bidding process and contracts serve to ensure fairness and openness in procurement and compliance with ADB’s procurement principles. Assessment of Record Keeping 16. From responses received, it appears that a reasonable record system will be established for safekeeping the original contracts, copies of bids and bid evaluation, and contract administration documents. However, the importance of book keeping and clearly defined filing system shall be addressed to PMO’s and the filing system shall be enhanced through capacity development and training. E. Procurement Capacity of Implementing Agencies

17. There are four implementing agencies (IA) for the project, Tacheng Municipal Government, Emin County Government, Tuoli county Government and Yumin County Government. The primary role of each IA is to carry out the construction of the subproject in each city or town, and they are responsible for project construction management, supervision, quality control, etc. The implementing agency (IA1) for Tacheng subproject is Tacheng Municipal Government and there are project implementation units (PIUs) for implementing three project subcomponents, respectively. Liaota New District (LTND) commission will be responsible for the implementation of roads, bridges, heating, and Buktu Port equipment in LTND. Tacheng Housing and Construction Bureau will be responsible to implement Tacheng MSW management, and alley rehabilitation. Tacheng Water Resource Bureau will be responsible to implement Kalanggur River Rehabilitation. Currently in IA procurement unit, there are two part time staff. The management staff in IA and PIUs is familiar with the procurement process for the domestic construction projects, but does not have any experience working with foreign funded projects. 18. The implementing agency for Emin subproject (IA2) is Emin County Government and the implementation unit is Emin Housing and Construction Bureau. There are four full time staffs in the procurement department. The implementing agency for Tuoli subproject (IA3) is Tuoli County Government and the implementation unit is Tuoli Housing and Construction Bureau. There are two full time staffs in the procurement department. The implementing agency for Yumin subproject (IA4) is Yumin County Government and the implementation unit is Yumin Housing and Construction Bureau. There are three full time staffs in the procurement department. The situations for these three IAs/PIUs are similar. The procurement staff is experienced in domestic procurement process but does not have any experience in foreign funded projects.

19. Based on the responses from the procurement capacity assessment questionnaires for the four IAs (Annex 2 to Annex 5), the procurement capacities of all IAs have been assessed and evaluated in the four aspects and the results are summarized in the followings:

Assessment of General Resources 20. The staffs from all four IAs have certain experience with the procurement of urban infrastructure development for domestic funded project, but they do not have experience for procurement for foreign funded urban development projects. The staffs are in general lack of knowledge and experience for ADB procurement procedures, bidding document preparation, and procurement process. Assessment of Procurement Processes for Goods and Works


App Q - 9

21. The staffs from all four IAs are familiar with domestic procurement process and experienced dealing with domestic urban development projects. However, the responses to the questionnaire show a systematic process is not yet fully in place for preparing bid documents, bids evaluation and contract award as required by ADB procurement procedures. In particular, the staffs do not have knowledge of bidding document preparation and ADB procurement procedures. Since both design institute and the tendering company have limited knowledge with ADB funded projects, it is necessary to include experienced procurement specialists both in the implementation consultant team and prior to the engagement of the implementation consultants to help EA/IAs prepare bidding documents and help in bidding process. Assessment on Procurement Processes for Consulting Services 22. Based on the responses to the questionnaires to all four IAs, it is concluded that the management staffs from three IAs have limited experience in recruiting consulting service for domestic projects but no experience of procuring a consulting firm for implementation of the Project. Assessment of Process Control and Oversight 23. Based on interviews and surveys, the IA staffs are familiar with domestic procurement process for recruiting consulting services. There are well established national and local guidelines and regulations to engage consultants for the domestic consulting services. It appears that control and oversight will be established:

(i) Separate agencies are involved in approving bid documents, tender recommendations etc.

(ii) There are procedures for dealing with invoicing, payment and non-payment. (iii) Declaration of conflict of interest in procurement process will be required.

Assessment of Record Keeping 24. Similar to EA/PMO, it appears that a reasonable record system will be established for safekeeping the original contracts, copies of bids and bid evaluation, and contract administration documents. However, the importance of book keeping and clearly defined filing system shall be addressed to IAs and the filing system shall be enhanced through capacity development and training.

25. There are two aspects to procurement capacity as far as IAs are concerned. Firstly the IAs need to have the organization set-up, resources and technical knowledge to handle the procurement processes, and secondly it is necessary to examine the current procurement processes adopted to see how well these are aligned with ADB Procurement Guidelines. The IAs are mainly concerned with the procurement of contractors in accordance with the Procurement Plan developed during the PPTA and updated regularly thereafter. 26. The assessment indicates that IAs have some relevant experience, but they are lack of experience and knowledge for the procurement of goods and works for internationally financed project. Some IA staff received training in ADB procedures during the PPTA process. 27. The IAs follow the procurement processes spelled out in governing documents, notably the ‘PRC Tendering Law’ in accordance with established administrative procedures. Key processes adopted relating to procurement of contractors for goods and works are as follows:

(i) Design institute to develop construction drawings, bills of quantities, and a brief technical design notes, which is far too simplified in comparison to the full contract


App Q - 10

technical specifications used in the developed countries. (ii) Tendering agency to draft commercial part of the bidding documents following ADB

standard (iii) PMOs to approve contract documents (iv) Procedures in place for tender notification, submission and rejection (v) Tender evaluation by a committee composed of the owner and selected experts (vi) Need for personnel involved to declare any potential conflict of interest (vii) Requirement for external approval of major procurement decisions (viii) Requirement for written narratives for procurement decisions (ix) Monitoring of contractual performance and fulfillment of payment obligations (x) Requirement for safe keeping of original contract and contract correspondence

28. The assessment also reveals that there is no procurement manual available to guide detail operations, the IAs have no previous experience with ADB funded projects. Therefore, more procurement training is necessary and capacity of procurement must be enhanced. F. Summary of Assessment and Recommendations 29. The Tacheng prefecture PMO is responsible for the procurement of the consulting services for the project implementation, and the PMO is also responsible to provide guidance and coordinate with four IAs to procure all construction contracts for four subprojects and provides oversight of contract management. The PMO will coordinate and manage the preparation of bid documents by the design institute (technical part) and the tendering company (commercial part), organize bid evaluation, coordinate for contract award and signing of contracts. Subsequently the PMO will coordinate with IAs to provide contract administration and record keeping. The four IAs under the guidance of PMO will carry out procurement preparation activities and contract management activities, including working with the design institute and the loan implementation consultant to prepare the technical part of the bidding documents, provide project specified contract document requirements, construction and contract management and construction supervision. 30. Based on the evaluation of the EA and IAs and the responses to the procurement capacity questionnaires, the general findings of the assessment are as follows: The PMO and the four IAs have established procurement units/divisions, and the staffs are

experienced in procurement for domestic urban infrastructure projects, but they do not have much procurement experience for foreign funded including ADB projects.

The PMO has certain experience in procurement for consulting service contracts for domestic projects, and some experience for foreign funded projects.

The IAs have adequate technical resources to handle urban infrastructure components, but they do not have experience in procurement, contract management, construction management for foreign funded projects.

Rules and regulations will be in place within the PMO and IAs for handling the various stages of procurement from bid document preparation, bid evaluation, contract award and administration ensuring fairness and a reasonable degree of check-and-balance during the procurement process. Safe record keeping for contract documentations will also be provided for. However there is no detail procurement manual to guide detail operations.

The IAs are lack of expertise in bidding document preparation for foreign funded including ADB projects. The common domestic practice for urban infrastructure construction does not need the PMO/IAs get involved in the bidding document preparation as those are prepared by the design institute and the tendering company. However, for the foreign funded projects, the comprehensive technical bidding documents including bills of quantities, specifications and construction drawings are required. The common design institutes are usually do not have the expertise and experience to prepare them.


App Q - 11

The IAs have not implemented ADB projects before and therefore are unfamiliar with ADB procurement requirements and procedures, in particular if special actions are required for advance contracting and retrospective financing.

31. Based on the above assessment for the current procurement capacity for EA/IAs, the potential risks and other constraints associated with procurement are summarized as follows:

Due to lack of procurement capacity in dealing with foreign funded and ADB project, it is expected to take longer time for the PMO and IAs to learn and to get familiar with ADB procurement policies and procedure, especially during the early stage of the project implementation including the contracts for advance contracting and retroactive financing.

As the IAs have no international procurement experience and have no staff with good command of professional English, it is difficult to ensure high quality English bidding documents for international bids.

Lack of a detail procurement manual in the IAs make it difficult to ensure all work performed by the individual IAs are consistent and to the same format and quality, and this in turns makes supervision and coordination difficult. Adoption of the ADB Procurement Guidelines providing standard detail procedures will mitigate these risks.

The PMO/IAs as well as the design institute do not have expertise and capacity to prepare bidding documents meeting ADB procurement procedure requirements since the comprehensive technical bidding documents are not required for common domestic projects.

32. Based on the assessment and previous working experience with the municipal governments in similar size and natures, the following recommended measures to mitigate risks and facilitate procurement are proposed:

The loan implementation consultant to be engaged by the EA should include building procurement capacity, providing on-the-job training to PMO and IAs procurement staff on ADB requirements and procedures, and providing technical assistance in terms of review of detail design and bid documents, review of bid evaluation report, and addressing ADB’s comments on relevant documents.

The training for procurement capacity shall be provided in the project preparation stage, i.e. during PPTA to the EA and IAs procurement staffs so that they can get familiar with ADB procurement policies and procedures to ensure efficient implementation of the project.

After the completion of PPTA and before the mobilization of the loan implementation consultants, there is a period of time up to six or more months when there are no consultants help EA/IAs, and which is also the period that the bidding documents for the early contracts need to be prepared. It is recommended that an experienced procurement specialist team, the start-up consultants, should be engaged, either from PPTA consultants or independent consultants, to help EA/IAs in bidding document preparation, bidding process, bid evaluation and other procurement related tasks.

The common practice in PRC is to hire a tendering company to handle bidding process. The tendering company can only assist the owner in preparing commercial part of the bidding documents and help the owner to carry out the bidding process. It is important to ask PMO/IAs to engage a tendering company that have previous foreign funded and ADB project experience.

There is a need for assurance of ADB’s Guidelines on procurement. This will be in the form of ‘Prior Review’ by ADB in accordance with the agreed Procurement Plan. Prior review will be required for all ICB contracts, the first NCB contract for civil works, and the first NCB


App Q - 12

contract for goods for each IA. Post review will be applied to other procurement packages.

Extensive training on procurement will be necessary to reinforce understanding and compliance with ADB's Guidelines. Prior to the recruitment of procurement specialist and/or consulting firm, the staff from the PMO and IAs should seek opportunities to participate ADB or World Bank procurement training and workshops. Special training and workshops provided by the loan implementation consultant, and also by the ADB procurement specialist.

33. Nevertheless, it must be recognized that in the PRC, the procurement under externally funded projects is handled through a certified procurement agent system, which requires the project executing agency to engage a certified international tendering company as its agent to handle the loan-funded procurement operations. The procurement agent is engaged through national competitive procedures. The service is normally financed by domestic funding sources. The qualification of the certified international tendering companies is subject to the licensing requirements of the Government. As indicated previously, the tendering company can only assist the EA/IAs in preparing the commercial part of the bidding document and the bidding process, and they are not capable to prepare the technical bidding documents, rather this is the task to be completed by EA/IAs with the supports from the design institute and the consultants from the loan implementation firm or PPTA consultants.


App Q - 13

ANNEX 1

Capacity Assessment Questionnaire – Executing Agency/PMO

Part A: General Resource Assessment Response

A.1.Is there a procurement department? yes

A.2.What procurement does it undertake? works , consulting service

A.3.Are the staff provided with written job descriptions? No A.4.How many years experience does the head of the procurement unit have in a direct procurement role?

27 years

A.5.How many staff in the procurement department are: i)Full Time? 2 ii)Part Time? 2

iii)Seconded? A.6.At what level does the department report (to the head of agency, deputy etc.)?

head of agency

A.7.Do the staff that will be involved with the procurement have English language skills sufficient to undertake international procurement?

yes

A.8.Are the number and qualifications of the staff sufficient to undertake the additional procurement that will be required under the proposed project?

No

A.9.Does the unit have adequate facilities such as PCs, internet connections, photocopy facilities, printers etc. to undertake the expected procurement?

yes

A.10. Is there a procurement training program? yes

Part B: Procurement Processes: Goods and Works

B.1.Has the agency undertaken foreign assisted procurement of goods or works recently (last 12 months, or last 36 months)? (If yes funded by whom and name of the Project)

No

B.2.If the above is yes, what were the major challenges? n/a B.3.Is there a procurement process manual for goods and works? Yes B.4.If there is a manual is it up to date and does it cover foreign assisted procurement?

Yes

B.5.Is there a systematic process to identify procurement requirements (1 year or more)?

No

B.6.Who drafts the specifications? n/a B.7.Who approves the specification? n/a B.8.Are there standard bidding documents in use and have they been approved for use on ADB funded projects?

No

B.9.Who drafts the bidding documents? bidding agency for commercial part, nobody for technical part

B.10.Who manages the sale of the document? PMO B.11.Are all queries from bidders replied to in writing? yes B.12.Is there a minimum period for preparation of bids and if yes how long? 20 days B.13.Does the bidding document state the date and time of opening and how close is it to the deadline for submission?

28 days

B.14.Is the opening public? yes B.15.Can late bids be accepted? No B.16.Can bids be rejected at bid opening? No B.17.Are minutes taken? yes B.18.Who may have a copy of the minutes? the trading center B.19.Are the minutes free of charge? yes B.20.Who undertakes the evaluation (individual(s), permanent committee, ad-hoc committee)?

Selected experts from the pool of experts, and


App Q - 14

IA representatives B.21.What are the qualifications of the evaluators in respect to procurement and the goods and works under evaluation?

experts from the pool of experts

B.22.Is the decision of the evaluators final or is the evaluation subject to additional approvals?

It’s final

B.23.Using at least three real examples how long between the issue of the invitation for bids and contract effectiveness?

32 days

B.24.Are there processes in place for the collection and clearance of cargo through ports of entry?

No

B.25.Are there established goods receiving procedures? No B.26.Are all goods received recorded as assets or inventory in a register or similar?

yes

B.27.Is the agency / procurement department familiar with letters of credit? No B.28.Does the procurement department register and track warranty and latent defects liability periods?

yes

Part C: Procurement Processes: Consulting Services

C.1.Has the agency undertaken foreign assisted procurement of consulting services recently (last 12 months, or last 36 months)?

No

C.2.If the above is yes what were the major challenges? n/a C.3.Is there a procurement process manual for consulting services procurement?

Yes

C.4.Is the manual up to date and does it cover foreign assisted projects? Yes C.5.Who identifies the need for consulting services requirements? EA/PMO and IAs

C.6.Who drafts the ToR? PPMO, IA and bidding agency

C.7.Do the ToR follow a standard format such as background, tasks, inputs, objectives and outputs?

No

C.8.Who prepares the request for proposals? PPMO C.9.Are assignments advertised and expressions of interest called for? Yes C.10.Is a consultants’ selection committee formed with appropriate individuals in terms of procurement and technical expertise?

Yes

C.11.What criteria are used to evaluate EOIs? commitment and cost C.12.Historically what is the most common method used (QCBS, QBS etc.)?

QCBS

C.13.Do firms have to pay for the proposal document? Some firms do C.14.Do the evaluative criteria follow a pre-determined structure and are they detailed in the RFP?

No

C.15.Are pre-proposal visits and meetings arranged? yes C.16.Are minutes prepared and circulated after pre-proposal meetings? yes C.17.To who are minutes distributed? Attendants C.18. Are all queries from consultants answered to in writing? Yes C.19.Are the financial and technical proposals in separate envelopes? yes C.20.Are proposal securities required? no C.21.Are technical proposals opened in public? No C.22.Do the financial proposals remain sealed until technical evaluation is completed?

yes

C.23.Are minutes of technical opening distributed? yes

C.24.Who determines the final technical ranking and how? Experts committee , and by the scores

C.25.Are the technical scores published and sent to all firms? no C.26.Is the financial proposal open in public? no C.27.Are there minutes taken and distributed of financial proposal opening? yes

C.28.How is the financial evaluation completed? Use the procedure and formula in the bidding documents to calculate

C.29.Are face to face contract negotiations held? Yes


App Q - 15

C.30.How long after financial evaluation is the selected firm to negotiate? 7 days

C.31.What is the usual basis for negotiation? bidding documents and other related documents

C.32.Are minutes of negotiation taken and signed? No C.33.How long after negotiations until the contract is signed? within 30 days C.34.Are advance payments made? Yes C.35.Is there an evaluation system for measuring the outputs of consultants?

No

Part D: Process Oversight and Control

D.1.Is there a standard statement of ethics and are those involved in procurement required to formally commit to it?

Yes

D.2.Are those involved with procurement required to declare any potential conflict of interest and remove themselves from the procurement process?

No

D.3.Is the commencement of procurement dependent on external approvals (formal or de-facto) outside of the budgeting process?

No

D.4.Who approves procurement transactions and do they have procurement experience and qualifications?

yes

D.5.Which of the following actions require approval outside of the procurement unit or a permanent evaluation committee and who grants the approval?

Varies from case to case

a)Bidding document, invitation to pre-qualify or request for proposal b)Advertisement of an invitation for bids, pre-qualification or call for expressions of interest

c)Evaluation reports d)Notice of award e)Invitation to consultants to negotiate f)Contracts

D.6.Is contractual performance systematically monitored and reported upon?

yes

D.7.Does the agency monitor and track its contractual payment obligations? Yes D.8.On average how long is it between receiving a firm’s invoice and making payment?

within 5 days

D.9.What is the standard period for payment included in contracts? D.10.When payment is made late are the beneficiaries paid interest? No D.11.Are payments authorized by the same individuals empowered to approve invitation documents, evaluations and contracts?

Yes

D.12.Is there a written auditable trail of procurement decisions attributable to individuals and committees?

Yes

D.13.Are procurement decisions and disputes supported by written narratives such as minutes of evaluation, minutes of negotiation, notices of default / withheld payment?

Yes

D.14.Is there a formal non-judicial mechanism for dealing with complaints? Yes D.15.Is a complaints resolution mechanism described in national procurement documents?

not seen

Part E: Records Keeping

E.1.Is there a referencing system for procurement files? Yes E.2.Are original contracts secured in a fire and theft proof location? Yes

E.3.Are copies of bids or proposals retained with the evaluation? Yes E.4.Are copies of the original advertisements retained with the pre-contract papers?

Yes

E.5.Is there a single contract file with a copy of the contract and all subsequent contractual correspondence?

yes

E.6.Are copies of invoices included with contract papers? No E.7.For what period are records kept? Permanent


App Q - 16

ANNEX 2

Capacity Assessment Questionnaire – IA 1 (Tacheng Municipal City)


A.1.Is there a procurement department? yes A.2.What procurement does it undertake? works procurement A.3.Are the staff provided with written job descriptions? no

A.4.How many years experience does the head of the procurement unit

have in a direct procurement role? 6 years

A.5.How many staff in the procurement department are: i)Full Time? 2 ii)Part Time? iii)Seconded?

A.6.At what level does the department report (to the head of agency, deputy etc.)?

head of agency

A.7.Do the staff that will be involved with the procurement have English

language skills sufficient to undertake international procurement? yes

A.8.Are the number and qualifications of the staff sufficient to undertake the

additional procurement that will be required under the proposed project? yes

A.9.Does the unit have adequate facilities such as PCs, internet

connections, photocopy facilities, printers etc. to undertake the expected

procurement?

yes

A.10. Is there a procurement training program? yes



no

B.2.If the above is yes, what were the major challenges?

B.3.Is there a procurement process manual for goods and works? yes

B.4.If there is a manual is it up to date and does it cover foreign assisted procurement?

Yes


yes

B.6.Who drafts the specifications? procurement specialists B.7.Who approves the specification? head of agency

B.8.Are there standard bidding documents in use and have they been

approved for use on ADB funded projects? yes

B.9.Who drafts the bidding documents? bidding agency

B.10.Who manages the sale of the document? bidding agency B.11.Are all queries from bidders replied to in writing? yes

B.12.Is there a minimum period for preparation of bids and if yes how long? 20 days

B.13.Does the bidding document state the date and time of opening and how close is it to the deadline for submission?

Yes, and 15 days

B.14.Is the opening public? yes B.15.Can late bids be accepted? no B.16.Can bids be rejected at bid opening? no B.17.Are minutes taken? yes

B.18.Who may have a copy of the minutes? bidding agent, and it’s management agency

B.19.Are the minutes free of charge? yes


App Q - 17

B.20.Who undertakes the evaluation (individual(s), permanent committee, ad-hoc committee)?

specialists in database

B.21.What are the qualifications of the evaluators in respect to procurement and the goods and works under evaluation?

specialists in database


final


30 days


yes

B.25.Are there established goods receiving procedures? yes B.26.Are all goods received recorded as assets or inventory in a register or similar?

yes

B.27.Is the agency / procurement department familiar with letters of credit? yes B.28.Does the procurement department register and track warranty and latent defects liability periods?

yes



no

C.2.If the above is yes what were the major challenges? C.3.Is there a procurement process manual for consulting services procurement?

yes

C.4.Is the manual up to date and does it cover foreign assisted projects? yes C.5.Who identifies the need for consulting services requirements? head of agency C.6.Who drafts the ToR? procurement agency C.7.Do the ToR follow a standard format such as background, tasks, inputs, objectives and outputs?

Yes, international procurement practice

C.8.Who prepares the request for proposals? procurement specialists C.9.Are assignments advertised and expressions of interest called for? yes C.10.Is a consultants’ selection committee formed with appropriate individuals in terms of procurement and technical expertise?

yes

C.11.What criteria are used to evaluate EOIs? impute and cost C.12.Historically what is the most common method used (QCBS, QBS etc.)?

no

C.13.Do firms have to pay for the proposal document? yes C.14.Do the evaluative criteria follow a pre-determined structure and are they detailed in the RFP?

yes

C.15.Are pre-proposal visits and meetings arranged? yes

C.16.Are minutes prepared and circulated after pre-proposal meetings? yes C.17.To who are minutes distributed? procurement agency C.18. Are all queries from consultants answered to in writing? yes C.19.Are the financial and technical proposals in separate envelopes? yes C.20.Are proposal securities required? no

C.21.Are technical proposals opened in public? yes

C.22.Do the financial proposals remain sealed until technical evaluation is completed?

yes


C.24.Who determines the final technical ranking and how? Bid committee according to the score of the bidding document

C.25.Are the technical scores published and sent to all firms? yes

C.26.Is the financial proposal open in public? yes C.27.Are there minutes taken and distributed of financial proposal opening? yes C.28.How is the financial evaluation completed? hire financial specialists C.29.Are face to face contract negotiations held? yes C.30.How long after financial evaluation is the selected firm to negotiate? within 7 days


App Q - 18

C.31.What is the usual basis for negotiation? Bidding documents, bid-winning notice, etc

C.32.Are minutes of negotiation taken and signed? yes C.33.How long after negotiations until the contract is signed? Within 30 days C.34.Are advance payments made? yes C.35.Is there an evaluation system for measuring the outputs of consultants?

yes



yes


yes


yes, de-facto


Authorization to specialists. Yes.


All need to be approved by the committee

a)Bidding document, invitation to pre-qualify or request for proposal

b)Advertisement of an invitation for bids, pre-qualification or call for expressions of interest



yes

D.7.Does the agency monitor and track its contractual payment obligations? yes D.8.On average how long is it between receiving a firm’s invoice and making payment?

within 5 days

D.9.What is the standard period for payment included in contracts? 10 days D.10.When payment is made late are the beneficiaries paid interest? no D.11.Are payments authorized by the same individuals empowered to approve invitation documents, evaluations and contracts?

no


yes


yes

D.14.Is there a formal non-judicial mechanism for dealing with complaints? yes D.15.Is a complaints resolution mechanism described in national procurement documents?

yes


E.1.Is there a referencing system for procurement files? yes E.2.Are original contracts secured in a fire and theft proof location? yes

E.3.Are copies of bids or proposals retained with the evaluation? yes

E.4.Are copies of the original advertisements retained with the pre-contract papers?

yes


yes

E.6.Are copies of invoices included with contract papers? no

E.7.For what period are records kept? The entire procurement process


App Q - 19

Annex 3

Capacity Assessment Questionnaire – IA2 (Emin County Government)


A.1.Is there a procurement department? yes

A.2.What procurement does it undertake? construction material, equipment

A.3.Are the staff provided with written job descriptions? no


have in a direct procurement role? 2years



Head of agency


language skills sufficient to undertake international procurement? no

A.8.Are the number and qualifications of the staff sufficient to undertake

the additional procurement that will be required under the proposed

project?

no



procurement?

yes

A.10. Is there a procurement training program? no



no

B.2.If the above is yes, what were the major challenges? n/a

B.3.Is there a procurement process manual for goods and works? no


no


no

B.6.Who drafts the specifications? n/a B.7.Who approves the specification? n/a


approved for use on ADB funded projects? no

B.9.Who drafts the bidding documents? bidding agency for commercial part, nobody for technical part

B.10.Who manages the sale of the document? PMO B.11.Are all queries from bidders replied to in writing? yes

B.12.Is there a minimum period for preparation of bids and if yes how

long? Yes, 20 days


Yes, 28 days

B.14.Is the opening public? No B.15.Can late bids be accepted? No


App Q - 20

B.16.Can bids be rejected at bid opening? No B.17.Are minutes taken? Yes B.18.Who may have a copy of the minutes? Bidding center B.19.Are the minutes free of charge? yes B.20.Who undertakes the evaluation (individual(s), permanent committee, ad-hoc committee)?

specialists and IA

B.21.What are the qualifications of the evaluators in respect to procurement and the goods and works under evaluation?

specialists


It’s final


32 days


no

B.25.Are there established goods receiving procedures? no B.26.Are all goods received recorded as assets or inventory in a register or similar?

yes

B.27.Is the agency / procurement department familiar with letters of credit? no B.28.Does the procurement department register and track warranty and latent defects liability periods?

yes



no

C.2.If the above is yes what were the major challenges? C.3.Is there a procurement process manual for consulting services procurement?

no

C.4.Is the manual up to date and does it cover foreign assisted projects? no

C.5.Who identifies the need for consulting services requirements? EA/PMO and International practice

C.6.Who drafts the ToR? PPMO, IAs, and bidding agency


no

C.8.Who prepares the request for proposals? PPMO C.9.Are assignments advertised and expressions of interest called for? yes C.10.Is a consultants’ selection committee formed with appropriate individuals in terms of procurement and technical expertise?

yes

C.11.What criteria are used to evaluate EOIs? input and cost C.12.Historically what is the most common method used (QCBS, QBS etc.)?

no

C.13.Do firms have to pay for the proposal document? no C.14.Do the evaluative criteria follow a pre-determined structure and are they detailed in the RFP?

no


C.16.Are minutes prepared and circulated after pre-proposal meetings? yes

C.17.To who are minutes distributed? Chairman, general manager

C.18. Are all queries from consultants answered to in writing? yes C.19.Are the financial and technical proposals in separate envelopes? yes C.20.Are proposal securities required? no

C.21.Are technical proposals opened in public? no


yes


C.24.Who determines the final technical ranking and how? Permanent committee, according to the evaluation criteria


App Q - 21

C.25.Are the technical scores published and sent to all firms? no

C.26.Is the financial proposal open in public? no C.27.Are there minutes taken and distributed of financial proposal opening?

yes

C.28.How is the financial evaluation completed? Calculated by the program or formula in the bidding document

C.29.Are face to face contract negotiations held? yes C.30.How long after financial evaluation is the selected firm to negotiate? 7 days

C.31.What is the usual basis for negotiation? Bidding document and others

C.32.Are minutes of negotiation taken and signed? no C.33.How long after negotiations until the contract is signed? within 30 days C.34.Are advance payments made? yes C.35.Is there an evaluation system for measuring the outputs of consultants?

no



yes


no


no


authority


Varies according to conditions





yes

D.7.Does the agency monitor and track its contractual payment obligations?

yes

D.8.On average how long is it between receiving a firm’s invoice and making payment?

Within 15 days

D.9.What is the standard period for payment included in contracts? D.10.When payment is made late are the beneficiaries paid interest? no D.11.Are payments authorized by the same individuals empowered to approve invitation documents, evaluations and contracts?

yes


yes


yes


no


E.1.Is there a referencing system for procurement files? no E.2.Are original contracts secured in a fire and theft proof location? yes


App Q - 22



no


no


E.7.For what period are records kept? payment


App Q - 23

Annex 4

Capacity Assessment Questionnaire – IA3 (Tuoli County Government)


A.1.Is there a procurement department? yes A.2.What procurement does it undertake? Works\equipment A.3.Are the staff provided with written job descriptions? Yes


have in a direct procurement role? 2



Head of agency




additional procurement that will be required under the proposed project? no



procurement?

yes




no


B.3.Is there a procurement process manual for goods and works? no



no

B.6.Who drafts the specifications? do not know B.7.Who approves the specification? do not know







28 days

B.14.Is the opening public? yes B.15.Can late bids be accepted? no B.16.Can bids be rejected at bid opening? no B.17.Are minutes taken? yes B.18.Who may have a copy of the minutes? Trading center B.19.Are the minutes free of charge? yes B.20.Who undertakes the evaluation (individual(s), permanent committee, Expert


App Q - 24

ad-hoc committee)? B.21.What are the qualifications of the evaluators in respect to procurement and the goods and works under evaluation?

Expert in the specialists’ data base


Final decision


32 days


no


yes


yes



No

C.2.If the above is yes what were the major challenges? no C.3.Is there a procurement process manual for consulting services procurement?

no


C.5.Who identifies the need for consulting services requirements? EA/PMO and National laws and regulations,

C.6.Who drafts the ToR? provincial PMO IA and tendering agency


yes

C.8.Who prepares the request for proposals? Provincial PMO C.9.Are assignments advertised and expressions of interest called for? yes C.10.Is a consultants’ selection committee formed with appropriate individuals in terms of procurement and technical expertise?

no

C.11.What criteria are used to evaluate EOIs? Input and output C.12.Historically what is the most common method used (QCBS, QBS etc.)?

QBS

C.13.Do firms have to pay for the proposal document? don’t know C.14.Do the evaluative criteria follow a pre-determined structure and are they detailed in the RFP?

no


C.16.Are minutes prepared and circulated after pre-proposal meetings? yes C.17.To who are minutes distributed? manager C.18. Are all queries from consultants answered to in writing? yes C.19.Are the financial and technical proposals in separate envelopes? yes C.20.Are proposal securities required? no



yes


C.24.Who determines the final technical ranking and how? Bid evaluation experts according to the score


C.26.Is the financial proposal open in public? no C.27.Are there minutes taken and distributed of financial proposal opening? yes

C.28.How is the financial evaluation completed? according to the bidding document

C.29.Are face to face contract negotiations held? yes


App Q - 25

C.30.How long after financial evaluation is the selected firm to negotiate? within 7 days

C.31.What is the usual basis for negotiation? bidding documents, bid-winning notice, etc

C.32.Are minutes of negotiation taken and signed? no C.33.How long after negotiations until the contract is signed? Within 30 days C.34.Are advance payments made? yes C.35.Is there an evaluation system for measuring the outputs of consultants?

no



yes


no


no


Authorities


Varies according to condition





yes


Within 15 days


yes


yes


yes


no





no


no




App Q - 26

Annex 5

Capacity Assessment Questionnaire – IA4 (Yumin County Government)


A.1.Is there a procurement department? yes A.2.What procurement does it undertake? Works\equipment A.3.Are the staff provided with written job descriptions? No


have in a direct procurement role? 2



Head of agency




additional procurement that will be required under the proposed project? no



procurement?

yes




no


B.3.Is there a procurement process manual for goods and works? Yes



no

B.6.Who drafts the specifications? do not know B.7.Who approves the specification? do not know







28 days

B.14.Is the opening public? yes B.15.Can late bids be accepted? no B.16.Can bids be rejected at bid opening? no B.17.Are minutes taken? yes B.18.Who may have a copy of the minutes? Trading center B.19.Are the minutes free of charge? yes B.20.Who undertakes the evaluation (individual(s), permanent committee, Expert


App Q - 27

ad-hoc committee)? B.21.What are the qualifications of the evaluators in respect to procurement and the goods and works under evaluation?

Expert in the specialists’ data base


Final decision


32 days


no


yes


yes



No

C.2.If the above is yes what were the major challenges? no C.3.Is there a procurement process manual for consulting services procurement?

no


C.5.Who identifies the need for consulting services requirements? EA/PMO and National laws and regulations,

C.6.Who drafts the ToR? provincial PMO IA and tendering agency


yes

C.8.Who prepares the request for proposals? Provincial PMO C.9.Are assignments advertised and expressions of interest called for? yes C.10.Is a consultants’ selection committee formed with appropriate individuals in terms of procurement and technical expertise?

no

C.11.What criteria are used to evaluate EOIs? Input and output C.12.Historically what is the most common method used (QCBS, QBS etc.)?

QBS

C.13.Do firms have to pay for the proposal document? don’t know C.14.Do the evaluative criteria follow a pre-determined structure and are they detailed in the RFP?

no


C.16.Are minutes prepared and circulated after pre-proposal meetings? yes C.17.To who are minutes distributed? manager C.18. Are all queries from consultants answered to in writing? yes C.19.Are the financial and technical proposals in separate envelopes? yes C.20.Are proposal securities required? no



yes


C.24.Who determines the final technical ranking and how? Bid evaluation experts according to the score


C.26.Is the financial proposal open in public? no C.27.Are there minutes taken and distributed of financial proposal opening? yes

C.28.How is the financial evaluation completed? according to the bidding document

C.29.Are face to face contract negotiations held? yes


App Q - 28

C.30.How long after financial evaluation is the selected firm to negotiate? within 7 days

C.31.What is the usual basis for negotiation? bidding documents, bid-winning notice, etc

C.32.Are minutes of negotiation taken and signed? no C.33.How long after negotiations until the contract is signed? Within 30 days C.34.Are advance payments made? yes C.35.Is there an evaluation system for measuring the outputs of consultants?

no



yes


no


no


Authorities


Varies according to condition





yes


Within 15 days


yes


yes


yes


no





no


no




Appendix R

Development Coordination


DEVELOPMENT COORDINATION

A. Major Development Partners: Strategic Foci and Key Activities

1. External assistance to the Xinjiang Uygur Autonomous Region (XUAR) government for implementing its plans for an improved urban environmental and associated infrastructure has come from the Asian Development Bank (ADB), World Bank, the Government of Japan, Japanese banks, the Saudi Arabian Development Bank, the Government of the Republic of Korea, and several European governments.

Assistance Funded by Foreign Aid Agencies for Xinjiang Uygur Autonomous

Region for Infrastructure and Environmental Improvement

Development Partner

Project Name

Duration

Total Investment ($ million)

Amount ($ million)

Water Conservancy

World Bank Tarim Basin Water Conservancy and Agriculture Support

1998–2004 301 150

Transport

World Bank Turpan–Urumqi–Dahuang Mountain Expressway

1989–1998 15

World Bank Urumqi–Kuitun Expressway 1992–1997 30

Export-Import Bank of Japan

Urumqi Hetan Road 1995–1998 110 45

World Bank Kuitun to Syimlake Expressway 1997–2000 413 150

World Bank Urumqi Transportation Improvement 2000–2007 281 100

Government of the Republic of Korea

Korla Outer Ring Road 2003–2005 25 10

Urban Environmental Improvement

JBIC Yining Integrated Environment Management 107 37

Saudi Arabian Development Bank

Aksu Integrated Environment Management 2005–2008 105 22

Government of Japan

XUAR Integrated Environment Management (Hami, Turpan, Kuitun, Wusu, Altay and Atushi)

206 150

JBIC Altay City Integrated Urban Environmental Improvement

2009–2013 20

Municipal Infrastructure and Services

Nordic Development Fund, Finland

Urumqi Hedong WWTP 1994–1998 39 10

Danida, Denmark Shihezi District Heating 1997–1999 7.5 4.1

Norway Changji Second WWTP 16 4.9

Austria Hami WWTP 18 3.8

Finland Wusu WWTP 7 4.8

Government of Germany

Kashgar WWTP 2006–2008 18 4.8


ADB Xinjiang Regional Road Improvement Project 2007-2013 594 150

ADB Xinjiang Municipal Infrastructure and Environment Improvement

2008–2013 191 105

Nordic Investment Bank

Urumqi Urban Water Supply and Wastewater Online Monitoring and Management Information System

2008–2010

3.4

ADB Xinjiang Urban Transport and Environment Improvement

2009–2013 187.2 100

ADB Xinjiang Altay Urban Infrastructure and Environment Improvement Project 2011–2013 168.5 100

ADB Xinjiang Integrated Urban Development Project 2013–2018 372.7 200

JBIC Kuitun City Integrated Environment Project

2007–2013 72 56

Water Supply

Finland Urumqi Chaiwopu Lake West Water Supply

1997–1998 8.6 2.6

ADB = Asian Development Bank. JBIC = Japan Bank for International Cooperation, WWTP = wastewater treatment plant, XUAR = Xinjiang Uygur Autonomous Region. Source: Xinjiang project management office.

B. Institutional Arrangements and Processes for Development Coordination 2. ADB commits itself to sharing sector information and experiences in partnership with its developing member countries and other development agencies. In line with ADB's support for the 2005 Paris Declaration and the 2008 Accra Agenda for Action, it has been actively harmonizing its policies, procedures and practices with its key development partners through parallel implementation structures, technical working groups, and joint missions. In addition, ADB has also been supporting global and regional efforts to enhance aid effectiveness.

3. In the People’s Republic of China (PRC), the central government primarily undertakes development coordination; the main responsibility for this is vested in the Ministry of Finance and the National Development Reform Commission. All development partners are requested to align their operations to support the implementation of a national development strategy as set in the current five-year plan (FYP) for social and economic development approved by the National People's Congress. ADB’s PRC Resident Mission plays a key role in harnessing lessons from project design and implementation, and shares these with both the PRC government and other development partners (all of which have resident missions in Beijing) through regular exchanges.

4. At the XUAR government level the regional Development and Reform Commission and Finance Bureau both exercise development coordination. These bodies receive requests for development assistance from local governments, match needs to the priorities and programs of the different development partners, hold consultations with those partners to establish areas of mutual interest, and make requests to the national government for projects to be included in the relevant country support program.

5. There are separate project management offices established for various ADB, World Bank and other foreign-funded projects within Xinjiang. The various project management offices at the Xinjiang, prefecture and city and/or county level maintain close coordination and share experiences.


C. Achievements and Issues

6. Coordination between major development partners is strengthening in support of the PRC's five-year plans, strategic master plans, public awareness and education, financial and institutional strengthening, Millennium Development Goals, and other sector development objectives. The project team has met with development partners such as the World Bank and other bilateral development agencies operating in Xinjiang to share project processing and implementation experiences and such consultations will be continued during project implementations needed.

7. Urbanization is taking place at an unprecedented pace and scale across the PRC and in cities and towns with different geographic conditions and at different stages of social and economic development. This will provide a rich source of knowledge and practices, as well as valuable lessons for future operations. Continued efforts will be needed to gain and share knowledge with the government and development partners to respond to the challenges of rapid urbanization and economic transformation.

D. Summary and Recommendations 8. ADB will continue to closely coordinate with other development partners at the country and local level during project implementation to avoid duplication and ensure complementarity. The strengthening of development coordination in the PRC is expected to minimize transaction costs, maximize responsiveness, address policy issues more systematically, provide greater support for institutional strengthening and capacity building, and promote increased accountability to achieve greater development impact.

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