Guangxi Regional Cooperation and Integration Promotion Investment Program (ADB-50050-002)

  • East Asia and Pacific
Geographic location where the impacts of the investment may be experienced.
  • China
  • Vietnam
Geographic location where the impacts of the investment may be experienced.
Specific Location
Pingxiang City, Gangkou District
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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 1, 2016
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Government of Guangxi Zhuang Autonomous Region
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Communications
  • Construction
  • Finance
  • Industry and Trade
  • Transport
  • Water and Sanitation
The service or industry focus of the investment. A project can have several sectors.
Potential Rights Impacts
  • Healthy Environment
  • Indigenous Peoples
  • Labor & Livelihood
  • Right to Water
Only for projects receiving a detailed analysis, a broad category of human and environmental rights and frequently at-risk populations.
Investment Type(s)
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 450.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 1,180.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Jul 2, 2020

Disclosed by Bank Dec 2, 2016

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The project aims to develop the North-South Economic Corridor under the Greater Mekong Subregion (GMS) Cooperation Program and to assist private business in border areas of China and Vietnam by improving cross-border connectivity as part of the Silk Road Economic Belt and 21st Century Maritime Silk Road Initiative.

According to bank documents, the project will support:

  • Expansion of small and medium-sized enterprises (SMEs) in border areas
  • Increase cross-border financial transactions and investment, develop integrated cross-border e-commerce platforms
  • Build key infrastructure and services for trade including roads, water supply and sewage treatment, logistics facilities. This include the constructions of 4-6 storey training center for Chinese and Vietnamese workers on Fengchenggang Poly Tech Vocational School Campus, 13 buildings for warehouse, custom declaration and inspection, payment and account settlement, Cross-border Labor Cooperation Demonstration Park for product exhibition, training, business offices and staff dormitory in Pingxiang Border Economic Zone; and
  • Improve physical and informational connectivity and policy coordination by improving border crossing points infrastructure and border roads including expansion of road from Kafeng to Coc Nam of Vietnam, a new road from Nonghuai BCP to Puzhai BCP linking Tan Thanh of Vietnam

Location: Pingxiang City, Gangkou District-Guangxi Zhuang Autonomous Region border with Quang Ninh, Lang Son and Cao Bang of Vietnam

Resources needed: land acquired.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Risk Category: Category B. According to the Asian Development Bank, proposed projects are screened based on the type, location, sensitivity, and magnitude of its potential environmental impacts including direct, indirect, induced and cumulative impacts. Category B because “it is considered the tranche 1 subprojects are unlikely to have significant adverse environmental impacts that are irreversible, diverse or unprecedented.”

Applicable Environmental and Social Policies

According to ADB documents, the following environmental and social safeguards are triggered:

Environment-triggered because “during the construction of subprojects 10 villages and 1 school would affected by dust and noise.” During the operation of subproject 2 there will be “generating of air pollutants such as volatile organic carbon (VOC), fine dust and smoke. The wastewater and muddy runoff on construction sites would be collected and treated using sedimentation tanks.”

Involuntary Resettlement – triggered because “15 households of 70 persons were affected by land acquisition of 27,035 mu in 2013. The land compensation, resettlement subsidies and compensation for standing crops had been paid.” “70 households with 280 persons were affected by forest land acquisition for the Fangchenggang Training Centre” Bank document stated that land for subprojects 1,2 and 6 was acquired by local governments prior to ADB funding. No additional land acquisition, house demolition and resettlement would be induced as a result of the project.

Indigenous People-triggered because “40% affected population from land acquisition is ethnic minority Zhuang,”

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

Our Risk Assessment

Based on available ADB documents, the project may pose risks to the following human rights:

Rights to Livelihood: While some local people may get unskilled jobs at the project,the acquisition of farm land and forest land may pose potential impacts to livelihoods if the adequate livelihood restoration is not implemented properly.

Indigenous People Rights: Though the due diligence report stated that “the Tranche 1 project will not incur any adverse impacts on ethnic minorities,” the subprojects involve construction of infrastructure development which has not been finalized can potentially be located where ethnic minority including Zhuang, Jing, Miao, Yao live that may cause potential impacts to their culture identities.

Right to Water: During the construction and operation, the project is likely to use water from nearby sources and will create wastewater. This could potentially affect Banling river about 1.7 km away and a shrimp culture pond.

Transboundary impact: According to the location and project activities, the project may cause transboundary impacts to Vietnam but the EWS team found no document explicitly mentions about impacts to Vietnam side.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Government of the People's Republic of China: US$ 730 Million

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Project Contacts

Government of Guangxi Zhuang Autonomous Region, through Guangxi Foreign Loans Project Management Office
18th Floor, Guangxi Development Plaza
East Building, No. 111-1 Minzu_Avenue
Nanning, Guangxi

The bank documents stated that the public consultation in the form of discussion forum were organized by PPTA consultant on the three subprojects involving civil works in August 2016 in Fengchenggang and Pingxiang. There were approximately 60 people participated in the three meeting represented local village, enterprises and government though the majority of participants are not villagers. Bank documents indicate that the concerns from affected people were about dust, noise and water quality during the construction and wastewater discharge during project operation.

The project plan for future consultation and participation includes “(i) involvement of affected people in discussion forums during inspection and monitoring of EMP implementation during construction and operation phases; (ii) participatory evaluation on the environmental and social-economic benefits and impacts in these forums; and (iii) consultation with the public after the project completion.”

Bank documents also state that the environment progress will be reported in the quarterly project progress reports and the annual environmental monitoring reports which will be
disclosed on ADB’s project website

Project Level Grievance Mechanism
The grievance mechanism includes:
1) a set of clear procedures developed by Guangxi Foreign Loans Project Managmenet Office (GMPO) to receive, record and address any concerns raised,
2) specific contact details for individuals at the GPMO, PIEs and the contractors. Contact information of all GRM entry points and the complaint center hotline will be disclosed on the construction site information boards; and
3) local Environmental Protection Bureau.

The grievance mechanism can be accessed by face-to-face meetings, written complaints, hotline number and telephone conversations, anonymous drop-boxes for written comments, and/or e-mail.

Accountability Mechanism of ADB
The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at:

How it works

How it works