Gansu province in 2009 had the second-lowest gross domestic product per capita in the People’s Republic of China. Its Tianshui municipality’s 3.6 million inhabitants included 640,000 urban dwellers in Qinzhou and Maiji districts with an estimated urban poverty rate of 13.5%. Although positioned as an economically developed, environment-friendly, and livable city, it faced multiple development challenges at project appraisal, including inadequate district heating and air quality, seasonal flooding, and insufficient urban transportation. Transport links were being improved by expressway and rail construction, and in July 2009, the State Council approved the establishment of the Guanzhong–Tianshui Economic Zone (GTEZ). The GTEZ was intended to become the northwest PRC’s economic backbone by 2020.
The Gansu Tianshui Urban Infrastructure Development Project was prepared to address the development challenges confronting Tianshui and enable it to accommodate urbanization pressures and maximize GTEZ-related benefits. Approved by the Asian Development Bank (ADB) for a loan of $100 million in June 2011, it aimed to promote balanced, environmentally sustainable urbanization while improving the living conditions in Tianshui, a second-tier city in the province. It was to support the restructuring and expansion of the Qinzhou district heating network; construction of urban roads, bridges, and such related services as better flood control; and strengthening of urban management capacity. Its envisaged impact was better living conditions in the municipality. Its expected outcome was improved heating, transport, and flood control services.
At approval, the project had four planned outputs: (i) Qinzhou District’s upgraded heating network operating to improve energy efficiency, operational effectiveness, and quality of district heating services; (ii) Chengji road and flood control facilities operating with annual probability of seasonal flooding along the Chengji road flood embankment to fall from 10% to 1%; (iii) Tianshui urban roads and bridges are opened to traffic and related services are operating to improve transportation for all vehicles using the improved corridors; and (iv) capacity developed and project management office (PMO) and implementing agencies strengthened.
Delivery of output 1 was affected by the cancellation of the China Huaneng Group, a state-owned enterprise, of the originally planned combined heat and power plant (CHP). In response, the Tianshui municipal government (TMG) decided to fully fund and build its own new heat source plant. This required a minor change in project scope and adjustments in the design of the heating network, which led to a 2-year extension of project completion. Outputs 2 and 3 were successfully delivered, albeit with some changes in the design of roads and bridges. The changes were required to minimize land acquisition and resettlement requirements and impacts. Under output 4, executing and implementing agency capacities in construction management and financial management were enhanced through domestic and overseas study tours and trainings. A series of domestic study tours, workshops, seminars, and training were likewise organized to introduce modern concepts and best practices in corporate governance and strengthen the knowledge and skills on road safety audit, emergency management, asbestos management, and soil erosion protection.
Overall successful delivery of the planned outputs enabled the project to achieve its intended outcome, surpassing targets in some cases. The annual probability of seasonal flooding along the Chengji embankment decreased and travel distances along the project road networks were reduced, in accordance with targets. Jobs created during project implementation and operation exceeded targets, including the number captured by women and the poor. The target to reduce heating-related carbon dioxide emissions was about 80% achieved by 2018, and is expected to be fully achieved by 2021.
The project had the TMG as executing agency. It had two implementation agencies: (i) the Tianshui Urban Construction and Investment Group for the Chenji road and flood control facilities component and Tianshui urban transport improvements component; and (ii) Tianshui Heating Company for the Qinzhou district heating network component.
