Xinjiang Tacheng Border Cities and Counties Development Project (ADB-46063-002)

  • China
Where the impacts of the investment may be experienced.
Specific Location
Xinjiang Uygur Autonomous Region
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Bank Risk Rating
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 29, 2015
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Government of People's Republic of China
The holder of the loan, grant, or other investment.
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 302.87 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Jul 2, 2020

Disclosed by Bank Sep 28, 2016

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Project Description

By meeting urgent needs in urban infrastructure and municipal services, the project will improve the environment, social inclusiveness, and border trade capacity of Tacheng City and the county cities of Emin, Tuoli, and Yumin.

Tacheng Prefecture is in the northwest of XUAR and shares a 480 kilometer (km)-long border with Kazakhstan. Due to its strategic geographical location along the economic corridors of the New Silk Road Economic Belt, border trade is playing an increasing role in local economic development, which is based mainly on the rich agricultural and mineral resources of the prefecture. To promote border trade development, the central government is cooperating with the regional and local authorities to build rail and road networks, upgrade key urban infrastructure and land port facilities, and support the development of small and medium-sized enterprises and the introduction of trade facilitation initiatives. These investments will provide a big opportunity for Tacheng City and neighboring counties such as Emin, Tuoli, and Yumin to become strategic economic hubs and derive the benefits from the growing regional border trade.

The urban road network in the project cities is inadequate for the planned population growth and the resulting increase in commercial activities. The lack of roads increasingly makes the urban areas difficult to access, causing serious economic and safety concerns for drivers, nonmotorized transport users, and pedestrians. Related to the poor quality of roads, access to basic utilities is also low on average, 16% of households in the project cities are not connected to clean piped water, and 19% are not connected to the sewerage system. The current coverage rate of district heating in Tacheng City is only 65%, and a significant share of the population still relies on small coal-fired boilers and family heating stoves, resulting in substantial energy inefficiency and air pollution. Municipal solid waste (MSW) management capacity is limited, sorting facilities are lacking, and collection systems are extremely basic, which also causes considerable environmental pollution. Tacheng City is crossed by the Kalangguer River, which carries snowmelt and storm flows from the mountains in the north. Throughout the city limits, the river remains unrestrained and some areas experience seasonal flooding that causes significant economic losses to its inhabitants. A considerable share of these urban populations resides in neighborhoods connected by unpaved alleys. These areas lack access to basic urban services and safety features such as street lighting, making living conditions difficult, especially in the harsh winters. In addition, all project cities and counties are also home to large numbers of ethnic minorities, whose members experience considerable difficulties in adapting to the changing urban, economic, and social conditions.

In 2012, Tacheng City and the counties of Emin, Tuoli, and Yumin approved their respective master plans (2012-2030), which target the cities to become livable and environmentally sustainable, prioritizing the development of municipal infrastructure and services that would raise the living standards of its residents and support their effective integration into the regional economy. The proposed project takes a multisector and integrated approach to urban development, meeting the urgent and prioritized needs identified in the master plans river rehabilitation; expansion of public and green spaces; improvements to the urban road network and traffic management, water supply and sewerage services, district heating service, solid waste collection system; and upgrading of equipment and services at the border land port. The proposed project will contribute indirectly to poverty reduction by enhancing the access of urban and peri-urban residents to upgraded municipal services and an improved urban environment. The project will also help promote regional cooperation and integration (RCI). This will be achieved by enhancing the level of preparedness of the target cities and counties to participate and benefit from the growing regional border trade and for their effective integration as key hubs on the economic corridors of the New Silk Road Economic Belt.

Improved urban environment, living conditions, and border trade capacity in the project border cities and counties.

All consultants financed by ADB will be recruited according to ADB''s Guidelines on the Use of Consultants (2013, as amended from time to time). An estimated 121 person-months (16 international, 105 national) of consulting services are required to (i) facilitate project management and implementation, (ii) provide capacity building and institutional strengthening, and (iii) required external monitoring.

All procurement of goods and works will be undertaken in accordance with ADB''s Procurement Guidelines (2015, as amended from time to time). International competitive bidding (ICB) will be used for civil works contracts estimated to cost $40 million and above. National competitive bidding (NCB) will be used for civil works contracts estimated to cost more than $100,000 equivalent to below $40 million. For goods and equipment, ICB will be used for values exceeding $3 million, while NCB will be used for goods and equipment for more than $100,000 to below $3 million equivalent. For NCB, the first draft English language of the procurement documents (prequalification, bidding documents, and draft contract) should be submitted for ADB approval regardless of the estimated contract amount. Subsequent procurements are subject to post review. All ICB contracts are subject to prior review. Prior review and approval of ADB of the procurement documents (prequalification, bidding, contract) is required.

Investment Description
  • Asian Development Bank (ADB)
Contact Information

Xinjiang Uygur Autonomous Region Government
XUAR Housing & Urban-Rural Dev't Bureau
No. 462 Zhongshan Road,
Urumqi, Xinjiang, PRC

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