Green Urban and Economic Revitalization
City: Hegang, Jixi, Qitaihe, Shuangyashan
Key Stakeholders and PartnersHeilongjiang Provincial Financial Bureau; Ministry of Finance; Asian Development Bank
Project Preparation Study PeriodApril 2017 – April 2018
CDIA SupportUS$ 70,000
Expected Downstream FinancingUS$ 310 million (ADB)
Infrastructure sectorsWater Supply
CDIA priority impact areasClimate Change Mitigation and Adaptation; Environmental Improvement; Good Governance
Key City Development Issues
The cities of Hegang, Jixi, Qitaihe, and Shuangyashan (project cities) are located in the east of Heilongjiang Province in the northeast of the People’s Republic of China. The project cities have a total combined population of 5.4 million. The East Heilongjiang subregion and the project cities have been an important coal base and electricity production hub delivering a cumulative total of more than 3.2 billion tons of coal to the country’s economy. However, Heilongjiang and the project cities face serious economic decline and population loss due to severe price cuts of coal and changes in the PRC’s energy and climate policy. With reduced revenues in the coal mining dependent economy, urban poverty has become serious with declining wages combined with poor and unsanitary living conditions due to lack of proper urban infrastructure and services.
Details of Cooperation
Co-financed by ADB and EIB, the project aims to revitalize the economy and improve environmental and social sustainability in the East Heilongjiang Province by establishing a non-coal economic base, i.e., green food, pharmaceuticals, renewable energy, and high-tech industries, in the four project cities. The project consists of: (i) building urban sewers and wastewater treatment plants; (ii) remediation and environmental clean-up of coal mining sites; (iii) developing electronic bus system; (iv) rehabilitation of heat supply pipes and water distribution pipes; and (v) improvement of stormwater infrastructure and management system. CDIA support included participation in due diligence missions and conduct of techno-economic due diligence, procurement, environmental and social impact assessments.
Expected Development Outcomes
The project will support the transformation and revitalization of the economy towards a sustainable non-coal future through: (i) strategic planning for non-coal industries and key investments that facilitate private investments in non-coal jobs; (ii) environmental clean-up and remediation of impacts from mining; and (iii) urban infrastructure services and environmental improvement that help attract and retain modern companies and qualified workers. Without the project, the economy will continue to decline, environmental safety and living conditions will worsen, and chances for improvements and investments will dwindle.
Key City informationLand Area: n/a
Estimated Population: 5.4 million (2017; aggregate of 4 cities)
City website: n/a