Xinjiang Hetian Comprehensive Urban Development and Environmental Improvement

Client: Asian Development Bank

Duration: 2017-2018

Location: Hetian City, Xinjiang Autonomous Region, PRC

Contract Value: USD 622,880

Loan Project Value: USD 168.10 million

Catalogue: Rural and Urban Development

Project Description

Hetian city, located in the southernmost part of the Xinjiang Uygur Autonomous Region (XUAR) is a growing (the city's 2015 population of 331,400 exceeds planning estimates) ethnic (87% Uygur) city, whose urban infrastructure and services are struggling to keep up with population growth. At the same time, the city faces (i) an arid climate (almost no rainfall), (ii) dependency on constrained water resources, and (iii) an encroaching desert. The boundaries for urban expansion, limited by the desert, lead to intensified urban development. Preserving Hetian's unique cultural heritage while addressing challenges associated with growth-driven urban development is a difficult, but necessary task.

To improve the environmental and social conditions in western China and achieve a well-off and harmonious society in Hetian city, XUAR Government requested an ADB loan to make the urban development in Hetian inclusive for all residents and climate resilient. The project delivered five outputs: (i) water supply, wastewater, and reclaimed water infrastructure renovated and expanded; (ii) environmental solid waste infrastructure and equipment improved; (iii) urban transport infrastructure constructed; (iv) public transportation system and equipment improved; and (v) capacity developed and skills built.

Services Provided by NAREE

NAREE provided the PPTA to prepare the loan project, undertaking due diligence in technical, safeguards, economic and financial, and poverty and socials. NAREE ensured the project in compliance with the domestic and ADB’s requirements and incorporation of international best practices in the project design. Detailed tasks conducted by NAREE during the PPTA includes the followings:

• Baseline study and sector assessment

• Feasibility Study Report review and project design optimization

• Economic and financial due diligence

• Safeguards due diligence, including survey and field study, environmental, social and resettlement assessment, relevant action plan and review framework development

• Financial and procurement risk assessment of the EA/IA, and risk management planning

• Investment plan and procurement plan preparation

• Institutional capacity building

• Loan project documents preparation and loan negotiation facilitating