The economy of Hefei, the capital city and economic center of Anhui province in the eastern part of the People’s Republic of China (PRC), has been growing at an average annual rate of 13.5% since 2000. Rapid economic growth, industrialization, and urbanization have led to urban environmental pollution and degradation. With large amounts of wastewater discharged into rivers because of inadequate sewerage and wastewater treatment capacity, river water quality in the city, as of project appraisal in 2006, was much worse than PRC’s Class V or water fit for industrial or landscaping use only. Erosion due to solid waste and leachate leakage from a closed landfill site led to the significant pollution of the Nanfei River, the city’s main river system. Severe flood events had worsened the deterioration of river water quality, threatened human lives, and caused significant economic losses.
To help address the issues as well as improve traffic management, the Asian Development Bank (ADB) approved a $150 million loan for the Anhui Hefei Urban Environment Improvement Project in April 2007. The project’s envisaged impact was improved urban environment, public health, and quality of life in Hefei. Its intended outcome was improved public wastewater management, flood control, and transport services in the city. It had four components at appraisal: (i) wastewater and waste management, (ii) river rehabilitation and flood control improvement, (iii) improved road infrastructure and traffic management in the Xinzhan Zone, and (iv) institutional capacity building for project management. However, a change in the land use policy of the central government made implementation of the road and traffic management component impossible. Cancellation of the component left the project focused on improving the urban environment.
At completion, the project accounted for more than 20% of the entire city’s wastewater treatment; an innovative citywide, geographic information system-based sewer and drainage management system; improvements to the water quality in three main rivers; and better flood control along the three rivers and a significant area around Chao Lake. A new wastewater treatment plant was constructed and an existing one was expanded. New sewers were built, and improvements were made to the closed landfill site next to the Nanfei River. Silted rivers were dredged and widened, and flood control structures were rehabilitated/upgraded.
Water quality was consequently improved. By 2012, the flood risk along rivers was reduced from an average of 1 flood in every 3–5 years in all urban areas to 1 in every 100 years and to 1 in 20 years in the southern rural areas. The probability of floods around Chao Lake was likewise reduced from an average of 1 in every 10–20 years to 1 in every 20–30 years. In addition, the project contributed significantly to improving the urban environment through landscaped public green spaces, property value increases, better public health, and greater livability.
Direct project beneficiaries comprised an estimated 2.61 million people, while indirect ones totaled 1.89 million. By providing 3,136 temporary jobs for local workers in project-related construction, and 1,389 permanent jobs in subsequent operation and maintenance works, the project also helped increase incomes and reduce poverty. Affordability of the services provided by the project facilities was ensured through subsidies and other means. An affordability analysis taken at completion showed that, even without subsidies, the lowest decile of households below the poverty level would spend no more than 2.5% of their disposable income for water and wastewater combined.
The project had the Hefei municipal government as executing agency. A project management office, created within the Hefei Finance Bureau, coordinated the implementation of the project and communications with ADB and the participating agencies. Project implementation was by two key agencies: (i) the Hefei Urban Construction Investment Company for the wastewater and waste management and river rehabilitation and flood control improvement components, and (ii) the Hefei Chao Lake Ecological and Environmental Improvement Construction and Administrative Bureau for the Chao Lake subcomponent.
