ASIAN DEVELOPMENT BANK

Transcription

1 ASIAN DEVELOPMENT BANK TAR:PRC TECHNICAL ASSISTANCE TO THE PEOPLE'S REPUBLIC OF CHINA FOR PREPARING THE GUANGXI NANNING URBAN INFRASTRUCTURE DEVELOPMENT PROJECT September 2004

2 CURRENCY EQUIVALENTS (as of 16 August 2004) Currency Unit yuan (CNY) CNY1.00 = $ $1.00 = CNY8.277 ABBREVIATIONS ADB Asian Development Bank EAR environmental assessment report FSR feasibility study report GZAR Guangxi Zhuang Autonomous Region NMG Nanning municipal government NNHTDIC Nanning New and High-Technology Development Investment Cooperation PMO project management office PPMS project performance management system PRC People's Republic of China TA technical assistance WWTP wastewater treatment plant TA CLASSIFICATION Poverty Classification Poverty intervention Sector Water supply, sanitation, and waste management Subsector Integrated urban development and housing Theme Environmental sustainability Inclusive social development Subtheme Urban environmental improvement Human development NOTE In this report, "$" refers to US dollars. This report was prepared by P. Wallum.

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4 I. INTRODUCTION 1. The Government of the People s Republic of China (the PRC) has requested the Asian Development Bank (ADB) to provide project preparatory technical assistance (TA) to help the Nanning municipal government (NMG) prepare the Guangxi Nanning Urban Infrastructure Development Project. The Fact-Finding Mission visited the project area in April 2004; held discussions with staff of the NMG and other agencies concerned; and prepared the detailed objectives, scope, costs, and implementation and financing arrangements for the project preparatory TA. The TA is listed in ADB's country program for II. ISSUES 2. Nanning City is the political, economic, and cultural center of the Guangxi Zhuang Autonomous Region (GZAR). The total population of greater Nanning is 6.3 million. Nanning City is 22,293 square kilometers (km 2 ), including seven counties under its jurisdiction. The main urban area has five districts (Chengbei, Jiangnan, Xincheng, Xingning, and Yongxin) with a total population of 1.4 million. The city is ranked among the top 50 cities in the PRC in terms of economic growth, which has risen particularly rapidly in recent years. However, the city s infrastructure facilities lag well behind its built environment, severely restricting future sustainable development. City standards of river management, flood control, environment, water and soil conservation, and ecological system protection need to be improved. 3. The Yongjiang River and its main tributaries, the Kelijiang and Xinxujiang rivers, run through the center of Nanning and impact significantly on urban mobility, water transport, and daily life. However, the riparian areas are subject to severe flooding resulting from a lack of flood protection, and aging and substandard design and performance of flood protection dikes. 2 The city districts bordering the tributary rivers are served by a combined sewerage system discharging into the rivers, which adds to the pollution of the river system. Further, domestic garbage in Nanning is disposed of mainly in simple landfills. Problems resulting from limited suitable sites, long haul distances, and the absence of adequate sorting and transfer stations are exacerbated by the rapid growth in the volume of garbage. Sorting and recycling facilities for resource recovery are few, and present practices harm people s health and the environment. These problems require sustainable solutions. 4. Considerable effort has already gone into improving the situation: the NMG has invested heavily in the construction of flood banks along the north bank of the Yongjiang River through the city, and several wastewater treatment plants (WWTP) are planned or under construction. The Langdong WWTP phase I, financed by the Government of France, is the only city WWTP in operation. It was commissioned in 1999 and provides a secondary treatment capacity of 100,000 cubic meters (m 3 )/day. Expansion of the plant s capacity by 100,000 m 3 /day is under planning and will be financed by a loan from the Government of Japan. Another WWTP, offering 240,000 m 3 /day of full secondary treatment, will be located at Jiangnan. The plant is being financed by the World Bank, and construction started in The World Bank-funded Guangxi Urban Environment Project is also under way. The project, covering Nanning and Guilin cities, includes construction of WWTPs and environmental subprojects. It will improve the environment 1 The TA first appeared in the Internet edition of the ADB Business Opportunities on 12 March The existing flood dikes were designed to control flood waters having a 2% annual probability of recurrence.

5 2 in Nanning and Guilin cities in support of sustainable economic growth and reduce poverty in the region To improve further the people s living standard in Nanning and to reduce the threats of flooding and pollution, the NMG will now implement, within the frame of the city development plan, additional measures for river upgrading, sewerage system improvement, ecological enhancement, and improvement of collection and disposal of domestic solid waste. The plan calls for efficient and sustainable urban development measures based on appropriate standards. Landscaped and green areas will also be developed to enhance the ecological and living environment. 6. In support of this strategy, this TA will prepare a project proposal consisting of four subprojects: Kelijiang River environmental upgrading, Xinxujiang River environmental upgrading, Qingxiu mountain ecological protection, and city-wide solid waste management. The Keilijiang River environmental upgrading component comprises the cleaning of the final 4.5 km length of the tributary, stabilization and general improvement of 17.3 km of banks and flood-control structures, inclusion of riparian landscaping, separation of foul sewage for piping to treatment from surface water drainage by laying 7.9 km of new sewers and siphons, and provision of a pumped flushing facility for use during low flow in the tributary river. The total area to be upgraded is 13.5 km 2. The Xinxujiang River environmental upgrading component comprises the cleaning of the final 6 km length of the tributary river, stabilization and general improvement of the banks and flood-control structures (totaling 14 km), inclusion of riparian landscaping, separation of foul sewage for piping to treatment from surface water drainage by constructing about 12.5 km of sewers, and, in association with the Kelijiang River component, provision of a low-flow flushing facility. The total area to be upgraded is approximately 12.5 km 2. The Qingxiu mountain ecological protection component will control soil erosion, and stabilize and improve the right bank of the Yongjiang River to protect 3.3 km 2. This component also includes the construction of basic infrastructure and improvements to the ecological system in an area totaling 16.1 km 2. The city-wide solid waste management component aims to improve coverage and methods of street cleaning and solid waste collection, handling, sorting, and transportation. The component will also reduce the volume of waste for sanitary landfill. The solid waste handling capacity will increase from the present 900 tons/day (t/d) to 1,200 t/d by The Project will thus provide enhanced urban infrastructure, including improved levels of river management and flood protection, pollution control, urban ecology, and solid waste management. The Project will bring down the high levels of flood risk and urban pollution, which result in socioeconomic damage, and supports the NMG's infrastructure development program and efforts to reduce environmental pollution. The Project is consistent with the NMG s river improvement, management, and flood control programs, and complements other internationally and locally funded river management and pollution control projects. The total cost of the possible project is estimated at about CNY2.48 billion ($300 million). 8. ADB has been involved in urban development and water resource management in the PRC and helped to incorporate structural and nonstructural measures in the flood management strategies of previous projects. The Yellow River and Songhua River Basin commissions have 3 The World Bank s Guangxi Urban Environment Project has the following components: sewerage and drainage in Nanning, sewerage and solid waste management in Guilin, Lijian flow regulation, sugar refinery pollution abatement, and (v) institutional development.

6 3 received ADB assistance to strengthen flood forecasting and warning systems. 4 ADB s ongoing and planned projects are focusing on pollution control in Fujian, Hubei, Henan, and Shandong provinces. The Project is consistent with ADB s country strategy and will support the Government s objectives in the urban, social, and water sectors. III. THE TECHNICAL ASSISTANCE A. Purpose and Output 9. The purpose of the TA is to prepare a project proposal to reduce the adverse economic, social, and environmental impacts of flooding, river pollution, riverbank erosion, and depletion of the green environment in Nanning City. This will be done through improving local infrastructure, including riverbank stability; mitigating floods; isolating sources of pollution; and improving the ecological environment. The Project will also support the city s strategic plans for improving domestic solid waste management. The main objective of the TA is to propose an investment project suitable for ADB financing. The TA will help the NMG review and identify the most appropriate urban infrastructure developments to protect vulnerable areas; prepare a feasibility study for each of the four subprojects; and prepare an integrated urban development project, including river management and flood control, enhancement of the green environment, water pollution control, and solid waste management, which will also include environmental impact assessments and resettlement plans consistent with ADB s policies and guidelines. The preliminary project framework is in Appendix 1. B. Methodology and Key Activities 10. The TA will be implemented in three phases. The first will undertake studies to assess the instability of riverbanks, risk of urban flooding within the project area, level of river pollution resulting from the combined sewerage system, extent of degradation of ecology and infrastructure within the Qingxiu ecological protection area and other riparian areas, and possibilities for strengthening existing solid waste management; review the Government s flood and pollution management strategies, priorities, and investment plans within the NMG urban development and river management programs; strengthen the selection criteria and prioritize potential interventions based on these criteria, including economic, financial, social, environmental impacts and the urgency of mitigation needs; review the shortcomings in solid waste collection, recycling, transport, treatment, and disposal; (v) review four feasibility study reports; and (vi) prepare an overall project feasibility study report. 11. During the second phase, the TA will assess the completeness and adequacy of Nanning s existing urban development, flood management, and pollution control programs based on technical, institutional, environmental, social, economic, financial, and other relevant factors; formulate balanced urban development, flood management, and pollution control strategies comprising structural and nonstructural measures; help formulate a strategic plan for solid waste management and develop initiatives to support it; update and undertake feasibility studies of the four subprojects; and (v) help the NMG to prepare and/or strengthen its draft environmental impact assessment and resettlement plans in accordance with ADB s guidelines and policies. During the third phase, the TA will help the NMG formulate an overall investment project for ADB funding; consolidate feasibility study reports prepared during the 4 ADB Report and Recommendation of the President to the Board of Directors on a Proposed Loan to the People's Republic of China for the Yellow River Flood Management Sector Project. Manila; and ADB Report and Recommendation of the President to the Board of Directors on a Proposed Loan to the People's Republic of China for the Songhua River Flood Management Sector Project. Manila.

7 4 second phase; review procurement needs and formulate corresponding procurement arrangements; and justify the project in financial, economic, social, and environmental terms. C. Cost and Financing 12. The total cost of the TA is estimated to be $748,000 equivalent, comprising $400,000 in foreign exchange costs and $348,000 equivalent in local currency costs. The Government has requested that ADB finance $560,000 equivalent, covering the entire foreign exchange cost and $160,000 equivalent of the local currency cost. The TA will be financed on a grant basis by ADB's TA funded program. The Government has agreed to provide the balance of local currency cost, equivalent to $188,000, for counterpart staff, office space, furniture, administrative support services, and logistics. Details of the cost estimates and financing plan are in Appendix 2. The Government has been informed that approval of the TA does not commit ADB to finance any ensuing project. D. Implementation Arrangements 13. The NMG will be the Executing Agency for the TA. A steering committee, chaired by the vice mayor of the NMG, will be formed to provide overall guidance and support to project preparation. A project management office (PMO) will be established, and will report to the steering committee. The office of the PMO will be in the Nanning New and High-Technology Development Investment Corporation (NNHTDIC). The vice director general of the Nanning Finance Bureau will be the director of the PMO. The PMO will ensure interdepartmental coordination and the TA team s access to information and data needed to liaise with ADB on TA implementation and to undertake environmental, socioeconomic, poverty, and other surveys. The NNHTDIC general manager will be the PMO executive vice director. The PMO will include staff from the Nanning Development Planning Commission, Financial Bureau, Construction Bureau, Environmental Protection Bureau, and Price Administration Bureau. The Government has agreed to provide 10 experienced and qualified counterpart staff to work full-time with the consultants. 14. The TA will be implemented over 6 months, from January 2005 to June A total of 45 person-months of consulting services will be required for the TA, comprising 17 personmonths of international and 28 person-months of domestic consultants. The international consultants will provide expertise in municipal engineering, flood and river management, sewerage and pollution control, solid waste management, financial and economic analysis, resettlement planning, social impact analysis (poverty reduction), and environment impact assessment. The domestic consultants will have expertise in urban development, river management, sewerage systems, solid waste management, civil and geotechnical engineering, project economics and financial analysis, environment protection and conservation, socioeconomic analysis and resettlement, and institutional and legal aspects for urban development including flood management. The terms of reference for the consulting services are in Appendix An international consulting firm, in association with domestic consultants, will be selected and engaged in accordance with ADB s Guidelines on the Use of Consultants and other arrangements satisfactory to ADB for the selection and engagement of domestic consultants. ADB will select and engage consultants following the quality- and cost-based selection method, using simplified technical proposal procedures.

8 5 16. The consultants will prepare inception, interim, draft final, and final reports, as well as, summary and full environmental impact assessments and resettlement reports. All reports will be prepared in English. The executive summary of the interim report and the complete draft final and final reports will be translated into Chinese. The consultants will maintain close relations with ADB and the NMG, and discuss progress and key findings. Tripartite review meetings involving the NMG, ADB staff, and the consultants will be held in Nanning to provide guidance to the consultants and review their reports. 17. The PMO will provide a suitably furnished office with utilities and telecommunication access, transport for consultants, materials, maps, data, and documents required by the TA, and will cover the cost of utilities for the use of consultants, counterpart professional staff, and support staff. The consultants will procure equipment for the TA in accordance with ADB s Guidelines for Procurement. The equipment will be transferred to the NMG upon TA completion. The initial poverty and social analysis is in Appendix 4. IV. THE PRESIDENT'S DECISION 18. The President, acting under the authority delegated by the Board, has approved the provision of technical assistance not exceeding the equivalent of $560,000 on a grant basis to the Government of the People's Republic of China for preparing the Guangxi Nanning Urban Infrastructure Development Project, and hereby reports this action to the Board.

9 6 Appendix 1 PRELIMINARY PROJECT FRAMEWORK Design Summary Sector / Area Goals Project Targets and Measurable Indicators Monitoring Mechanism Risks and Assumptions Promote sustainable economic development and improve environmental protection in Nanning City, including in flood-prone areas Environment for social and economic development improved Better security provided for property and residents Government documents, statistics, and reports Monitoring and evaluation report of the Nanning municipal government (NMG) Purpose/Objectives Land value and use increased River water quality improved to class III All solid waste safely disposed of Jobs increased Incidence of respiratory illness reduced by < 10% Conduct of surveys at midterm and at project completion as part of project performance management system (PPMS) River water-quality monitoring Flood-control monitoring Respiratory health monitoring at medical centers Assumptions: Reduce the adverse economic, social, and environmental impacts of flooding, water pollution, and solid waste in Nanning City Adopt an improved and integrated approach to flood mitigation, river management, and solid waste management in Nanning City Improve the benefits from the green environment within Nanning City Occurrence of flooding in Nanning City reduced through raising flood protection standards Direct losses due to floods reduced (percentage to be defined during project preparation) Polluting discharges into river catchments reduced or eliminated Environmental pollution and health risks reduced by improved management systems for solid waste disposal Atmospheric conditions improved in the city, and green space increased Institutional capacity strengthened and stakeholder involvement improved Implementing agencies management information system Baseline surveys, and surveys at midterm and project completion Project performance reporting Quarterly progress reports ADB review missions Reduction in fines and compensation paid for pollution of rivers Flood frequency and areas affected Air quality monitoring Increase in green space Infrastructure is properly managed, operated, and maintained. Communities participate in project design and implementation. Project implementation is effective. The tariff strategy is effective and communities are willing to pay. Planning controls are effective. Continued on next page

10 Appendix 1 7 PRELIMINARY PROJECT FRAMEWORK Continued Design Summary Components/Outputs a (For the TA) Project Targets and Measurable Indicators Monitoring Mechanism Risks and Assumptions Assumptions: Flood control Water pollution control Improved classification of river-water quality Improved solid waste collection, recycling, and disposal management Green spaces and improved atmospheric conditions Improved urban environment High-priority structural measures implemented, including the following: 30 kilometers (km) of existing riverbanks stabilized and flood protection embankments strengthened and improved, 10.5 km of river dredged, and pumped flushing introduced, separation (for treatment) of foul sewage from 6 km 2 of urban areas, ground stabilization, afforestation, and fire hazard measures introduced to protect a 19.4 km 2 public green amenity area; and improved and expanded solid waste management to serve up to 3 million inhabitants. Social survey Increase in property value within flood protected areas Quality of river water monitored River class achieved Visitor numbers to Qingxui Mountain area Reduced forest fires Proven ground stability agains t erosion and/or landslides Volume of available sanitary landfill provided Tonnage of solid waste collected and disposed of Landfill compaction ratios Materials recycled NMG remains committed to balanced and integrated urban development, and flood and pollution control management. Land is accessible and compulsory purchase of property successful. Resolution of resettlement issues is successful and cost-effective. The tariff strategy is effective and communities are willing to pay, generating sufficient contributions. Wastewater and solid waste tariffs are fully applied as planned. Sufficient connections are installed to intercept wastewater flows. High-priority nonstructural measures implemented, including the following flood emergency response and recovery measures enhanced; mapping of flood-risk areas prepared; flood zoning and land-use restrictions applied; and waste minimization initiatives introduced. The integrated flood control system operates effectively. Pumping stations operate correctly. Solid waste collection, sorting, recycling, and transport and disposal are properly managed. Counterpart funds are adequate and provided on time during project implementation. Continued on next page

11 8 Appendix 1 PRELIMINARY PROJECT FRAMEWORK Continued Design Summary Activities b (For the TA) Project Targets and Measurable Indicators Monitoring Mechanism Risks and Assumptions Maintenance of infrastructure and green facilities introduced under the Project is sustained. Assumptions: Cleaning of tributary rivers Stabilization and improvement of riverbanks and floodcontrol s tructures Inclusion of riparian landscaping Construction of new sewers and siphons Provision of low-flow flushing facilities Improvement of ecological protection areas Capacity-building trainings, workshops, and seminars Structural and nonstructural measures implemented, including the following: 30 km of existing riverbanks stabilized and flood protection embankments strengthened and improved; 10.5 km of river dredged, and pumped flushing introduced; separation (for treatment) of foul sewage from 6 km 2 of urban areas; ground stabilization, afforestation, and fire-hazard measures introduced to protect 19.4 km 2 of public green amenity areas; improved and expanded solid waste management to serve up to 3 million inhabitants; (v) flood emergency response and recovery measures enhanced; (vi) mapping of flood-risk areas prepared; (vii) flood zoning and land-use restrictions applied; and (viii) waste minimization initiatives introduced. a To be confirmed during technical assistance (TA) implementation. b To be developed during TA implementation. Progress reports ADB review missions PPMS NMG remains committed to balanced and integrated urban development, and flood and pollution control management. Counterpart funds are adequate and provided on time during project implementation. Competent counterpart staff members are available. Land is accessible and compulsory purchase of property successful. Resettlement issues are resolved costeffectively. The tariff strategy is effective and communities are willing to pay, generating sufficient contributions.

12 Appendix 2 9 COST ESTIMATES AND FINANCING PLAN ($'000) Foreign Local Total Item Exchange Currency Cost A. Asian Development Bank (ADB) Financing a 1. Consultants a. Remuneration and Per Diem i. International Consultants ii. Domestic Consultants b. International and Local Travel c. Surveys d. Reports and Communications Equipment and Software b Miscellaneous Administration and Support Costs c 4. Representative for Contract Negotiations d Contingencies Subtotal (A) B. Government Financing 1. Office Accommodation and Transport Remuneration and Per Diem of Counterpart Staff 3. Surveys and Investigations a. Environmental Impact Assessments b. Socioeconomic Surveys c. Project Design Others Subtotal (B) Total a Financed by ADB s technical assistance funding program. b Includes desktop computers, photocopier and fax machine. c Includes office supplies and translation services. d Includes the cost of travel and per diem of Government observers invited for contract negotiations. Source: ADB estimates.

13 10 Appendix 3 A. Overall Scope Of Work OUTLINE TERMS OF REFERENCE 1. The consultants, working in close association with the Executing Agency, the Nanning municipal government (NMG), will prepare a feasibility study report (FSR), including an assessment of the financial, economic, social, and environmental impacts of the Project in accordance with policies and guidelines of the Asian Development Bank (ADB); and formulate an investment project to improve urban infrastructure, pollution and solid waste management, and river upgrading and management in Nanning City. B. Particular Expertise Required 1. International Consultants a. Municipal Engineering, Sewerage, River Management, and Flood Mitigation Specialist (team leader, 6 person-months) 2. The duties of the specialist will include, but not be limited to, the following: (v) (vi) (vii) (viii) (ix) prepare a detailed work plan; review and assess all relevant government urban development policies, programs, plans and measures, in Nanning City and the Autonomous Region; recommend ways to improve the NMG's river management and flood control strategy; review and assess the FSRs for the four subprojects, and ensure that the Project is consistent with the municipal development programs; propose improvements to FSRs to comply with ADB s policies and guidelines; finalize feasibility-level designs for the urban development, pollution control, flood protection, and solid waste management facilities proposed for each subproject site based on existing studies and reports prepared by the NMG; prepare the project implementation schedule and detailed implementation arrangements; design the project management framework for monitoring, evaluating, and supervising project implementation, and cooperate with and guide the domestic consultants; and prepare the inception, interim, and draft final reports, and finalize the TA report. 3. The specialist will b. Solid Waste Management Environment Specialist (2.5 personmonths) analyze the NMG's proposals for solid waste collection and make comments and recommendations; review the sites allocated for solid waste treatment and disposal and comment on suitability for purpose, adequacy, limitations, and predicted lifespan; assess the suitability and economics of proposed separation and recycling of materials, and solid waste treatment and disposal methods;

14 Appendix 3 11 (v) (vi) (vii) (viii) (ix) (x) assess the maintenance requirements and associated staffing and financial commitment for managing and maintaining the solid waste collection and treatment facilities; review and comment on measures required to encourage and enforce the prohibition of solid waste disposal within urban areas, canals and rivers, and adjacent landscaped areas; review quantities and costing of proposed collection and transfer plant and equipment, materials separation, and waste treatment facility construction; list contract packages by type and budget value; help the NMG assess the environmental impacts of the proposed construction works, recommend mitigation measures, and develop an environmental and safety management plan; address environmental issues, including (a) clean production techniques and (b) enforcement of industrial wastewater pretreatment; and complete full and summary environmental impact assessment reports following ADB s Environmental Guidelines for Selected Infrastructure Projects 1 and Environmental Assessment Requirements The specialist will c. Resettlement and Social Impact Assessment Specialist (2.5 person-months) (v) (vi) (vii) (viii) define through discussions with the NMG the income threshold and how it is determined in identifying poverty, and identify how many poor people are affected by each project component proposal; review NMG policy, strategy, and programs for poverty reduction and regional development income as they pertain to the project areas; prepare socioeconomic and poverty profiles for the project areas in accordance with ADB s Handbook on Poverty and Social Analysis: A Working Document 3 and Handbook for Incorporation of Social Dimensions in Projects; 4 conduct surveys to develop a profile of existing wastewater and solid waste disposal and related costs and affordability, and use the information as a baseline for project performance monitoring; assess how each project component will impact on and improve livelihoods, estimating the number of beneficiaries and also those adversely affected, particularly by resettlement; prepare a social impact assessment report on people to be affected by the Project; review the resettlement plans prepared by municipal governments and prepare summary plans, which will include modifications to comply with ADB s policy on involuntary resettlement; and review the organizational structure and capacity of resettlement implementation and recommend improvements and actions required in the participatory process. 1 ADB Environmental Guidelines for Selected Infrastructure Projects. Manila. 2 ADB Environmental Assessment Requirements. Manila. 3 ADB Handbook on Poverty and Social Analysis: A Working Document. Manila. 4 ADB Handbook for Incorporation of Social Dimensions in Projects. Manila.

15 12 Appendix 3 d. Financial Analyst (3 person-months) 5. The analyst will analyze each subproject in accordance with the Guidelines for the Financial Governance and Management of Investment Projects Financed by the ADB. 5 In particular the following activities will be completed: (v) (vi) use the COSTAB 6 software model to analyze and summarize project costs; review current accounting and administrative capacities within the municipal authorities and industries, the internal control system employed, and internal and external auditing procedures, and recommend changes following ADB's Guidelines for Financial Governance and Management of Investment Projects Financed by the ADB (footnote 5); establish financial objectives and targets for each subproject and prepare financing plans and projections, including income statements, balance sheets, cash-flow statements, and other relevant financial statements in normal terms, for operations for 20 years after project completion; examine the availability of local counterpart funds and assess the liquidity of the various government agencies for different levels of borrowing and the associated repayments; forecast the financial obligations required for financial sustainability and compare them to forecasted income flows; and identify potential financial risks for each subproject, recommend risk mitigation measures in the subproject design, and conduct comprehensive sensitivity analyses. e. Natural Resource and Environmental Economist (3 person-months) 6. The economist will analyze each project subcomponent, following ADB's Guidelines for the Economic Analysis of Projects, 7 Economic Analysis in 2002: A Retrospective, 8 and Economic Analysis Retrospective: 2003 Update. 9 The analysis will include, but not be limited to, the following: (v) identify and explain the basic socioeconomic problems that the Project addresses; identify and explain the economic rationale for NMG intervention; identify and explain the rationale and value-added of foreign aid; investigate the potential for instituting or improving user charges, and propose any new user charges as needed, following ADB policies; and forecast demand for output of each subproject based on any projected user charges, and use the demand forecasts to establish the scale of each investment. 2. Domestic Consultants a. Municipal and River Engineer (co-team leader, 6 person-months) 7. The municipal and river engineer will perform the following tasks: 5 ADB Guidelines for the Financial Governance and Management of Investment Projects Financed by ADB. Manila. 6 COSTAB = a computer software program that helps financial analysts, project economist, and project engineer estimate project cost. 7 ADB Guidelines for the Economic Analysis of Projects. Manila. 8 ADB Economic Analysis in 2002: A Retrospective. Manila. 9 ADB Economic Analysis Retrospective: 2003 Update. Manila.

16 Appendix 3 13 (v) (vi) review and assess all relevant municipal and provincial flood control programs; review and assess the FSRs for the first three relevant subprojects and, in particular, ensure that the Project is consistent with the municipal river management programs and coordinates with other relevant river management projects and activities; assist with the evaluation and propose improvements to FSRs to comply with ADB s policies and guidelines, and help the environment specialist, resettlement and social impact assessment specialist, and economic and financial analyst with their studies; monitor the outputs of and guide the civil and geotechnical engineer in assessing ground engineering and earth structures; conduct supplementary studies, and finalize the feasibility-level design of the facilities at each subproject site, together with layouts, calculations, cost estimates, and justification; and prepare relevant sections of reports. b. Civil and Geotechnical Engineer (5 person-months) 8. The engineer will perform the following tasks: review and assess the plans and proposals by the NMG for the construction of earth structures to withstand the hydraulic effects of the river in spate, and assess the suitability of borrow pits for embankment materials, including geotechnical composition of soils, their suitability for purpose, and haul distances involved; review and assess the proposed plans and proposals for ground stabilization measures, review the geological data and plans relating to the Chengnan landfill site, and assess the suitability of proposed environmental protection measures; and prepare reports as required. c. Solid Waste Management and Environment Specialist (6 personmonths) 9. The specialist should have relevant qualifications in solid waste management, and about 10 years working experience in environmental assessment. He or she will perform the following tasks: (v) review and assess the solid waste management subproject proposal and prepare a review report from environmental and cost-benefit perspectives; help the team leader prepare suitable contract packages for procurement; review and comment on the environmental assessment reports for the subproject sites, prepared by the NMG, and conduct supplementary studies to improve the reports; prepare the project environmental impact assessment, including the environmental monitoring plan, in accordance with ADB's guidelines; and prepare relevant sections of reports. d. Resettlement and Social Impact Assessment Specialist (4 person-months) 10. The specialist should have relevant qualifications in social sector surveys and about 10 years work experience in social impact assessment. He or she will perform the following tasks: review and assess the resettlement plans and the social analyses in the four

17 14 Appendix 3 (v) subproject FSRs prepared by the NMG, and identify the expected beneficiaries and communities affected by the Project; conduct any supplementary studies to improve the resettlement plans and social analyses; assess the subprojects social impacts in accordance with ADB guidelines, and prepare a resettlement plan for any subproject site where the Project entails land and house acquisition or disruption of livelihood, in accordance with ADB s guidelines; determine if vulnerable groups (e.g., women, children, the aged) or indigenous people will be affected by the Project, develop mitigating measures, collect information, determine if indigenous people will be affected by the Project, and develop mitigating measures; and prepare relevant sections of reports. e. Financial and Economic Analyst (6 person-months) 11. The analyst will have extensive experience using COSTAB software, and demonstrated evidence of estimating financial and economic internal rate of returns according to ADB s guidelines. He or she will perform the following tasks: design and analyze the project cost structure; estimate the project costs, which should cover all components of the Project; and summarize the project cost estimates in the categories, broken down into direct and indirect foreign exchange and local currency cost for each year of implementation; compile and present procurement contract packages, and present financing plan based upon identified procurement contract packages and lump-sum packages; present a disbursement arrangement and withdrawal schedule (legal agreement arrangement), allocation table, among others; and update the cost estimates where necessary in close cooperation with the NMG and implementing agencies and design institutes. f. Legal and Institutional Specialist (1 person-month) 12. The specialist will perform the following tasks: assess the institutional capacity of the implementing agencies to carry out the scope of work proposed, and review and assess the legal, institutional, and administrative aspects of urban development plans and relevant programs; propose improvements to the administrative basis of integrated urban development and river management in Nanning City, and help the team leader recommend ways to strengthen, extend, and improve the NMG's river management and flood-control programs; examine the capacity of the NMG to implement proposed changes to river management; and describe the organizational arrangements for project implementation and monitoring; assess the institutional capacity of the domestic solid waste management organization and recommend changes to strengthen it; and prepare relevant sections of reports.

18 Appendix 4 15 A. Linkages to the Country Poverty Analysis INITIAL POVERTY AND SOCIAL ANALYSIS Is the sector identified as a national priority in country poverty analysis? Yes No Is the sector identified as a national priority in country poverty partnership agreement? Yes No Contribution of the sector or subsector to reduce poverty in the People s Republic of China: The Project will help reduce poverty by promoting economic development, improving basic urban infrastructure facilities, creating good urban ecological environment, and improving flood protection facilities. B. Poverty Analysis Proposed Poverty Classification: Poverty Intervention What type of poverty analysis is needed? The analysis will need to do the following: Identify how the Project relates to national priorities as identified in the country poverty analysis and in the poverty partnership agreement. Identify project beneficiaries and affected people (particularly poor and vulnerable groups), and possible barriers for their participation in and benefits from the Project. Assess the effects of the Project on the beneficiaries. Estim ate the poverty incidence and baseline for project evaluation, including basic socioeconomic characteristics of households disaggregated by general income sources; expenditures; assets; appraisal of net worth; and perception and attitudes concerning displacement, relocation options, and economic rehabilitation requirements. (v) Establish a basis for social assessment to identify mitigation measures and to incorporate them into the resettlement plan. C. Participation Process Is there a stakeholder analysis? Yes No Main stakeholders include national, provincial, municipal, and county government departments and officials; officers of the water management companies; project beneficiaries (urban residents, water users); and project-affected people. Further stakeholder analysis will be developed during technical assistance (TA) implementation. Is there a participation strategy? Yes No The participation strategy will incorporate the following: creation of a consultative group that will include representatives from each stakeholder group; consultations in the process of environmental impact assessment and resettlement plan development; and conduct of workshops, surveys, and public consultations. D. Gender Development Strategy to maximize impacts on women: The Project will carry out a gender analysis of the relocation (residential, industrial, and agricultural) to determine and assess the gender impacts and develop mitigation measures as part of the project design and implementation. Has an output been prepared? Yes No The output will be prepared during project preparatory TA implementation.

19 16 Appendix 4 E. Social Safeguards and other Social Risks Item Significant/ Not Significant/ None Strategy to Address Issues Plan Required Resettlement Significant Not significant A full resettlement plan will be prepared. Full Short None None Affordability Significant Not significant None Not deemed to be a major concern, but it will be assessed further during the project preparatory TA. Yes (in social impact assessment) No Labor Significant Not significant None No labor retrenchment is envisaged as a result of the ensuing project, but it will be assessed further during the project preparatory TA. Yes (in social impact assessment) No Indigenous Peoples Significant Not significant The Project is not expected to have any adverse impacts on indigenous people. Yes No None Other Risks and/or Vulnerabilities Significant Not significant None No other social risks are anticipated as a result of the ensuing Project. Yes No