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Private SectorProject Information Hebei Small Cities and Towns Development Demonstration Sector Project $ 10.02 Cr $ 100.25 Mn
16-Aug-2017
PID : 11388 Not Classified-China
Description

The impact of the Project is sustained socioeconomic growth and improved health and living conditions in small cities and towns in Hebei province. The outocme of the Project is improved infrastructure, environmental protection, and employment generation in small cities and towns in Hebei province.

The proposed Project focuses on supporting sustainable urban development and consist of a number of sector interventions primarily targeted to support industrial development, tourism, job creation, and environmental protection. The main sectors are water and wastewater, solid waste management, upgrading and greening of rivers, and district heating. The subsectors involve (i) increases in the capacity to supply potable water and coverage of distribution networks, and provision of sewerage systems with associated wastewater treatment facilities; (ii) river and lake improvement works to reduce the risk of seasonal flooding and increase the capacity to impound water for industrial, irrigation, and other uses; (iii) provision of modern solid waste collection equipment, development of engineered waste disposal sites, and strengthening of operational management; and (iv) provision of centralized heating plants and the associated heat distribution networks.

Detailed component proposals that fully support the planning strategy and sector goals are being developed for the first group of cities and towns in each province.

The Project will seek to develop approaches and solutions to problems that can be replicated in urban centers throughout the province and may be used to demonstrate to other provinces across the PRC how to formulate planning strategies and implement programs in support of structured development of small cities and towns.

Project Rationale and Linkage to Country/Regional Strategy The Government of the PRC is committed to developing small cities and towns as a way to foster economic growth, generate employment, and narrow the rural-urban income gap. The growth of small cities and towns creates economic opportunities for the rural poor, who are attracted to alternative incomes in urban areas. This is the key to realizing the PRC's vision of a _harmonious society,_ in which the benefits of economic growth are shared more equitably. The PRC's 11th Five-Year Plan (FYP) 2006-2010 identifies small city and town development as a means to provide a higher standard of living to rural migrants through improved basic urban infrastructure services. Building on the conclusions of the 2004 ADB-financed Town-Based Urbanization Strategy Study, the national town development policy calls for strengthening physical and economic linkages between major cities in metropolitan areas or development corridors and the smaller settlements at their periphery. Hebei's industrial structure is dominated by traditional capital intensive resource-processing industries that are state owned, generate limited employment, and are heavy polluters. It has remained a largely underdeveloped province, with limited economic, social, technological, or political linkages with Beijing and Tianjin, despite proximity to these major cities. Hebei suffers from undeveloped urban-rural linkages, underinvestment, weak urban management, and significant deterioration of the natural environment, including the depletion of water resources. The challenge is to improve infrastructure service delivery, safeguard the environment, and improve local living conditions to achieve sustainable development that balances economic growth, social advancement, and environmental recovery. Addressing these challenges will require integrated and coordinated policy and infrastructure interventions in various sectors. Hebei's Social and Economic Development 11th FYP 2006-2010 calls for developing a more balanced urban system through the growth of medium-sized cities that can serve as economic centers for surrounding towns. County-level cities and towns, in turn, are expected to enhance their economic integration with rural areas that depend primarily on agriculture. In this respect, town and county-level city development contributes directly to the provincial objective of promoting integrated rural and urban development. The main constraint on town development is inadequate urban infrastructure and services, according to the Hebei Urban Construction 11th FYP 2006-2010. Towns need more reliable and sustainable water supply and energy services to attract private sector investments that can create jobs and attract migrants. At the same time, improved wastewater and solid waste disposal is necessary to mitigate the environmental impacts of rapid economic growth and improve living conditions for local residents. Hebei's town development challenge therefore combines promoting economic growth with improving the urban environment and urban management and governance capacity. To help small cities and towns fulfill their economic potential and enable a more harmonious form of development, the Project will facilitate the delivery of improved environmental infrastructure and municipal services to (i) attract investment, especially in labor intensive industries and services; (ii) provide a decent urban environment to residents by substituting energy-efficient centralized heating for household coal burning, collecting and treating wastewater before discharge into the environment, and introducing sanitary practices and recovery of recyclables in solid waste management; (iii) strengthen urban management capacity in planning, implementation, and operation; and (iv) extend the benefits of growth to all residents by improving the coverage and quality of basic municipal services to households across the socioeconomic spectrum. The Project directly contributes to the continuing efforts of HPG to support socioeconomic development that balances economic growth, social advancement, and environmental recovery in the context of sustainable development. The Project is consistent with ADB's strategic objectives in the PRC to make markets work more efficiently through infrastructure development and to promote environmental sustainability. By supporting sustainable development integrating urban and rural areas, the proposed Project supports ADB's long-term strategic framework 2008-2020 (Strategy 2020)3 and country partnership strategy for the PRC (2008-2010) 4 by promoting efficient infrastructure, strengthening environmental management, and supporting inclusive growth and balanced development to help the Government build a xiaokang (moderately well-off) society. The Project will develop markets and create jobs by supporting urbanization and improving investment potential in towns, while protecting the environment.
Impact Improved urban environment and improved public health and quality of life for the residents of small cities and towns in Hebei Province

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