People s Republic of China: Provincial Development Strategies for Chongqing Municipality and Guizhou Province

Transcription

1 Attachment 1 Technical Assistance Report Project Number: Policy and Advisory Technical Assistance (PATA) September 2009 People s Republic of China: Provincial Development Strategies for Chongqing Municipality and Guizhou Province The views expressed herein are those of the consultant and do not necessarily represent those of ADB s members, Board of Directors, Management, or staff, and may be preliminary in nature.

2 CURRENCY EQUIVALENTS (as of 12 August 2009) Currency Unit yuan (CNY) CNY1.00 = $ $1.00 = CNY ABBREVIATIONS ADB Asian Development Bank EA executing agency FYP five-year plan GDP gross domestic product MOF Ministry of Finance PRC People s Republic of China TA technical assistance TECHNICAL ASSISTANCE CLASSIFICATION Type Policy and advisory technical assistance (PATA) Targeting Classification Sector (subsectors) General intervention Public sector management (economic management and public affairs management, agricultural production and markets) Themes (subthemes) Economic growth (promoting economic efficiency and enabling business environment), environmental sustainability (eco-efficiency), private sector development (public private partnerships) Location impact Rural (high), urban (medium), national (low) NOTE In this report, "$" refers to US dollars. Vice-President C. Lawrence Greenwood, Jr., Operations 2 Director General K. Gerhaeusser, East Asia Department (EARD) Country Director R. Wihtol, PRC Resident Mission, EARD Mission leader L. Peng, Senior Economics Officer, EARD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

3 I. INTRODUCTION 1. The proposed technical assistance (TA) for provincial development strategies for Chongqing Municipality and Guizhou Province 1 continues a series of similar projects in the People's Republic of China (PRC). The Asian Development Bank (ADB) first approved TA for a provincial development strategy for Hebei Province in Encouraged by the success of that TA, the Government of the PRC requested that ADB develop a systematic approach to support provincial reforms and development, and other provinces have submitted proposals to the PRC Ministry of Finance (MOF) requesting similar ADB assistance. Five TA projects have thus far been approved for eight provinces or autonomous regions, including: (i) independent projects for Hebei Province and Inner Mongolia Autonomous Region; and (ii) three combined projects covering Xinjiang Uyghur Autonomous Region and Gansu Province, Hunan and Jiangxi provinces, and Heilongjiang and Jilin provinces During the 2008 Midterm Country Program Review Mission, the Government requested that ADB provide Chongqing and Guizhou with similar assistance. Chongqing and Guizhou were visited by an ADB reconnaissance mission in March 2009 and a fact-finding mission in June Agreement was reached with the provincial governments and MOF on the TA s scope, cost estimates, financing plan, terms of reference for consulting services, and implementation arrangements. The design and monitoring framework is in Appendix 1. 3 II. ISSUES 3. The PRC has made considerable progress in overall economic development in the last three decades, but the benefits have been unevenly distributed among regions. The western region covers 12 provinces or autonomous regions or municipalities, and has benefited less than the east coast from economic growth and reforms. Incomes are lower, poverty is more widespread, and health and education facilities are poorer than the national average. The Government has implemented its western development strategy since 1999 in an effort to rebalance regional development. ADB supports the Government's strategy by allocating more resources to the interior provinces, including loans and TA. The outputs of the previous TA projects for provincial development strategies were highly appreciated by the central and relevant provincial governments. Many policy recommendations and innovative ideas proposed under these TA projects have been reflected in government policy documents. The Government strongly supports continued provision by ADB of such TA. 4. Chongqing and Guizhou are located in the southwestern region, and each has a large rural population. Chongqing was established as the PRC's fourth provincial-level municipality in 1997, and has subsequently experienced robust economic growth. It remains poor, however; in 1 During the 2008 Country Programming Mission, held in Manila on December 2008, Guizhou Province was added to the TA at the request of the Government. Accordingly, the TA's title was changed from Strategy for Chongqing Development to Provincial Development Strategies for Chongqing Municipality and Guizhou Province, and the grant amount increased from $500,000 to $800, ADB Technical Assistance to the People's Republic of China for Hebei Provincial Development Strategy. Manila (TA3970-PRC); ADB Technical Assistance to the People's Republic of China for Energy Development Strategy for the Inner Mongolia Autonomous Region. Manila (TA4511-PRC); ADB Technical Assistance to the People's Republic of China for Provincial Development Strategy for Selected Provinces in Northwestern Region. Manila (TA4727-PRC); ADB Technical Assistance to the People's Republic of China for Provincial Development Strategy for Selected Provinces in the Central Region. Manila (TA7036-PRC); ADB Technical Assistance to the People's Republic of China for Provincial Development Strategy for Two Northeastern Provinces. Manila (TA7170-PRC). 3 The TA first appeared in the business opportunities section of ADB s website on 1 July 2009.

4 it ranked 19th of 31 provincial-level units in terms of per capita gross domestic product (GDP). Chongqing was recently selected as the only provincial-level unit to pilot the urban rural unification strategy, and it was felt that this pilot would benefit from external assistance. Guizhou is the nation's poorest province, with an average per capita GDP of CNY8,284 ($1,298) in 2008, or about one third of the national average of $3,266. Both Chongqing and Guizhou are home to many poor people. Supporting Chongqing and Guizhou in planning their development strategies will contribute to the PRC's poverty reduction, urban rural unification, western development, and sustainable development strategies. A. Chongqing 5. Chongqing is the most populous provincial-level municipality in the PRC, with a population of 31 million the other provincial-level municipalities are Shanghai (16.4 million), Beijing (13.2 million), and Tianjin (10 million). Chongqing is also the poorest of the municipalities. There are 1.42 million people in Chongqing living below the national poverty line, accounting for more than 5.9% of the municipality's rural population. 4 Fourteen of the 40 counties under Chongqing's jurisdiction are classified as national poverty counties Chongqing is the newest and largest municipality in the PRC, covering 82,400 square kilometers. Prior to its establishment as a provincial-level municipality in 1997, Chongqing was a city in Sichuan Province. Chongqing consists of three distinct parts, the downtown area, the counties originally under Chongqing city (a prefecture-level administrative unit), and the poor mountainous counties that were reallocated from Sichuan Province to Chongqing in While the Chongqing government has attempted to integrate these three parts into a single municipal system, its efforts have not been entirely successful. A systematic and consistent development strategy is needed to help the municipality attain its goal of urban rural integration. 7. After reviewing the previous development strategies and analyzing the various issues facing the municipality, the Chongqing government identified the following key constraints to the integration and development of Chongqing: transport, the living environment, security, environmental protection, and public health. The Chongqing government announced its intent to construct "five Chongqings", 6 and committed to address the major constraints in these five areas through Chongqing's 12 th Five-Year Plan (FYP) ( ). 8. To facilitate Chongqing's integration and socioeconomic development, the Government is encouraging the municipality to adopt an innovative approach to unifying its urban rural areas. The State Council issued a special policy document to guide Chongqing's urban rural unification in January The policy document endorsed the Chongqing government's efforts in the five key areas, and MOF requested that ADB provide TA to help Chongqing formulate a strategic framework and provide specific policy recommendations regarding the five areas. 4 The Government s national rural poverty line is set at an annual income of CNY1196 (about $176); there is no unified national urban poverty line. Rural residents with annual incomes equal to or below CNY1196 are considered poor and entitled to government allowances. The PRC had an estimated 40 million poor people in The Government targets its poverty reduction programs at national poverty counties, which have relatively high numbers of rural poor. Provincial governments also designate provincial poverty counties. 6 "Five Chongqings" consists of five key emphasis areas: (i) livable Chongqing, comprising a friendly environment, decent dwellings, well developed communities, and sufficient living facilities; (ii) smooth transport Chongqing, comprising adequate roads, smooth mass transport, and convenient transportation; (iii) forested Chongqing, comprising provision of good air quality and plentiful grass and/or forested land; (iv) peaceful Chongqing, comprising safety, security, and a low crime rate; and (v) healthy Chongqing, comprising good public health facilities, affordable medical charges, and sufficient sports and recreation facilities.

5 3 B. Guizhou 9. Guizhou has a population of million. More than 20% of Guizhou's total rural population lives below the national poverty line; these 5.85 million people account for 14% of the total poor population nationwide. Fifty of Guizhou s 88 counties are classified as national poverty counties. Guizhou was less than one third (29.1%) urbanized in 2008, the lowest proportion in the PRC, and many of its inhabitants are poor rural residents. Lessons derived from the development of the PRC s coastal region have led the province to promote green urbanization, with low carbon emissions and lower levels of industrial pollution. Green urbanization will benefit Guizhou s inhabitants while helping to reduce global climate change. 10. Guizhou is a mountainous inland province covering 176,100 square kilometers, 92.5% of which comprises mountains and foothills, with only 7.5% arable land. Guizhou features karst topography, and is composed largely (61.9%) of exposed limestone. Stony desertification is widespread 21.4% of Guizhou is currently stony desert, and another 19.3% is in the process of turning into stony desert 7 and constitutes a major constraint on Guizhou's development. Rehabilitating the existing stony desert and preventing further stony desertification are essential elements of Guizhou's development. 11. Guizhou s special geographical conditions, unique ecosystem, and benign climate make it an ideal place for producing environmentally-friendly agricultural products. However, the province's agricultural producers have limited access to larger outside markets and are constrained in terms of value-adding as a result of a lack of technology, shortage of agricultural engineers and skilled workers, inadequate capital, underdeveloped transport, inappropriate agribusiness models, and insufficient marketing. To help the rural poor and accelerate rural development, the provincial government hopes that the proposed ADB TA will help formulate a food development strategy that focuses on processing of hazard-free, green, and organic food Optimizing and upgrading the industrial sector and accelerating industrialization are vital to Guizhou's overall development. However, Guizhou's industries are constrained by low-end production, short production chains, outdated technology, and insufficient innovation, and concentrate on resource exploration and extraction and the manufacturing of unrefined products, with limited value-added. Secondary industry accounted for 42.3% of Guizhou's GDP in 2008, the second lowest in the PRC. There is a consensus among various stakeholders in Guizhou that the current unsatisfactory economic development pattern must be changed. Additional steps should be taken to promote recycling, enhance energy efficiency, extend the industrial chain, and accelerate innovation if economic development is to be increased and poverty reduced. III. THE TECHNICAL ASSISTANCE A. Impact and Outcome 13. The TA comprises a Chongqing component and a Guizhou component, and aims to help develop balanced and sustainable socioeconomic development strategies for the PRC's poorest municipality (Chongqing) and poorest province (Guizhou). The expected impact of the proposed 7 Stony desertification is the degradation of land in limestone areas resulting primarily from human activities and the resultant failure of ecological succession. 8 PRC food safety and quality standards include hazard-free (the basic standard of food safety), green food (a higher standard), and organic food (the highest quality standard).

6 4 TA will be unified development supported by related physical and social infrastructure in Chongqing and more balanced development in Guizhou. The expected outcome of the TA is the adoption by relevant government agencies of policy reforms, regulations, and new ideas and practices to be introduced or recommended under the TA. B. Methodology and Key Activities 1. Chongqing Component 14. The Chongqing component will produce a strategic report on promoting social investments in the construction of "five Chongqings" under the framework for unifying urban rural development. This report will comprise a comprehensive report and five subproject reports on the key emphasis areas e.g., livability, transport, the environment, safety and security, and health (footnote 6). The findings, conclusions, and policy recommendations will be submitted to the government in the form of policy briefs, report summaries, and final reports. The outputs of the Chongqing component will serve as inputs to the municipality's 12th FYP. The Chongqing component will also include consultative workshops and a dissemination conference. 15. The Chongqing component will address key constraints by reviewing ways to mobilize more private investments. This component will (i) diagnose the constraints to development in the five emphasis areas; (ii) rank the constraints in the order of importance and identify those that most urgently need to be addressed; (iii) prepare a strategy for development based on an analysis of the key constraints, favorable conditions, and their interrelationships; (iv) estimate the costs and resources needed to promote the "five Chongqings" against the background of unifying urban rural development; (v) draw from experiences and lessons from international best practices; and (vi) provide policy recommendations on how to attract private investment to promote the "five Chongqings." 2. Guizhou Component 16. The Guizhou component will produce a comprehensive report on changing Guizhou's economic development pattern, and will be supported by four sub-reports on: (i) accelerating industrialization in Guizhou; (ii) approaches to and policy reforms for accelerating green urbanization in Guizhou; (iii) more rapid development of hazard-free, green and organic food (as defined in footnote 8); and (iv) approaches to and policy measures for preventing and managing stony desertification. The findings, conclusions, and policy recommendations will be submitted to the government in the form of policy briefs, a summary report, and final reports. The outputs of the Guizhou component will serve as inputs to the province's 12th FYP. The Guizhou component will also include consultative workshops, a dissemination conference, and technical training. 17. The Guizhou component will focus on optimizing provincial economic development patterns through effective use of natural resources. This component will (i) conduct a thorough diagnosis of constraints to urbanization, industrialization, food development, and stony desertification management; (ii) rank the constraints in terms of importance and identify the most urgent constraints; (iii) develop a development strategy based on an analysis of the key constraints, favorable conditions, and their interrelationships; (iv) draw from experiences and lessons from international best practices; and (v) provide policy recommendations to promote changes in Guizhou's economic development pattern.

7 5 C. Cost and Financing 18. The estimated cost of the TA is $1,000,000 equivalent, of which $800,000 will be financed on a grant basis by ADB s TA funding program (Technical Assistance Special Fundothers); half of that amount will be allocated to Chongqing, and half to Guizhou. Contributions by the Chongqing and Guizhou governments, estimated at $100,000 equivalent each for a total of $200,000 equivalent, will cover remuneration of counterpart staff, office facilities, administrative support, and logistics. Appendix 2 details cost estimates and the financing plan. D. Implementation Arrangements 19. The executing agency (EA) for Chongqing will be the Chongqing Municipal Finance Bureau, and the EA for Guizhou will be the Guizhou Provincial Finance Department. The Chongqing Municipal Finance Bureau and the Guizhou Provincial Finance Department will coordinate with provincial agencies to carry out, monitor, and evaluate the respective TA components. Each province will establish a steering committee and a project office. The steering committee will be chaired by a Vice Mayor or Vice Governor and include members from the Municipal or Provincial Development and Reform Commission, Agricultural Department, government think tanks, and other relevant government agencies. The project office will provide office space with telecommunications access, counterpart staff, information, basic data, and logistical support needed by the consultants. The project office will appoint a provincial project coordinator who will liaise and coordinate with Chongqing and Guizhou stakeholders, ADB, and the consultants. 20. The TA project will be implemented over 18 months, from October 2009 to March All procurement will follow ADB's Procurement Guidelines (2007, as amended from time to time). All procured equipment will be handed over to the EAs at the completion of the TA project. A consulting firm will be selected and engaged by ADB for each component using quality- and cost-based selection, and an 80/20 quality/cost ratio. 9 A simplified technical proposal will be required. The consulting firms will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). The TA requires 77 person-months of international and national consultants and about 180 days of resource person services. The Chongqing component will require a total of 37 person-months of consulting services, including 3 person-months of international consultant services and 34 person-months of national consultant services. The Guizhou component will require a total of 40 person-months of consultant services, including 3 person-months of international consultant services and 37 person-months of national consultant services. The consultants terms of reference are in Appendix 3. The proceeds of the TA will be disbursed in line with the ADB s Technical Assistance Disbursement Handbook. 10 IV. THE PRESIDENT'S DECISION 21. The President, acting under the authority delegated by the Board, has approved the provision of technical assistance not exceeding the equivalent of $800,000 on a grant basis to the Government of the People s Republic of China for the Provincial Development Strategies for Chongqing Municipality and Guizhou Province, and hereby reports this action to the Board. 9 Quality- and cost-based selection considers both the quality of the technical proposals and costs in the financial proposals. The technical proposals will be given a weight of 80% and the costs a weight of 20%, which is a standard approach for quality- and cost-based selection. ADB Recruiting Consulting Firms. Project Administration Instructions. PAI Manila. 10 ADB Technical Assistance Disbursement Handbook. Manila.

8 Appendix 2 DESIGN AND MONITORING FRAMEWORK Design Summary Impact More balanced development in Guizhou and unified development supported by related physical and social infrastructure in Chongqing Performance Targets and/or Indicators No less than 7% of economic growth rates in the poorer regions in Chongqing and Guizhou starting from 2015 Investment in economy greening in Guizhou increases by about 20% annually by 2015 Data Sources and/or Reporting Mechanisms Government annual work reports Government pronouncements Statistical year books (national, Chongqing, and Guizhou) Media reporting Assumptions and Risks Assumptions The Government will continue its western development strategy in the 12th FYP. Rural development remains the Government's top priority. Urban rural infrastructure investment in Chongqing increases by no less than 15% annually by 2015 Outcome Adoption by relevant government agencies of policy reforms and regulations, and introduction or recommendation of new practices and ideas under the TA Investment through public private partnership in Chongqing increases by about 15% annually by 2015 Incorporation of policy recommendations under the TA in the 12th Chongqing and Guizhou FYPs that will be finalized in 2011 New regulations and policies issued during Provincial12th FYPs for Chongqing and Guizhou Government annual work reports Government pronouncements Media reporting Assumptions Policy recommendations are of high quality and implementation is feasible. Policy recommendations were reviewed and selected by neutral and visionary government authorities. Risks Prolonged economic turmoil reduces the priority given by the Government to sustainable development and emergent countercyclical measures.

9 Appendix 2 Design Summary Outputs 1. Report on attracting social investments in the construction of "five Chongqings" under the framework of unifying urban rural development 2. Report on promoting changes in Guizhou's economic development pattern 3. Consultative workshops 4. Dissemination conferences 5. Technical training Performance Targets and/or Indicators At least ten strategic policy recommendations for balancing economic, social, and environmental development At least three written case studies assessing international experience for each component About 150 participants in the workshops and dissemination conferences About 60 people trained Activities with Milestones Chongqing component Data Sources and/or Reporting Mechanisms Periodic TA progress reports Periodic accomplishment reports Minutes of joint meetings between Government and ADB Memorandums of understanding signed between Government and ADB 1.1. Inception workshop in Chongqing in March Interim report review workshop in Chongqing by the end of July Final draft report review workshop in Chongqing by the end of October Dissemination conference in Chongqing by the end of November Submission of final report and summary by the end of December TA completion by the end of March 2011 Guizhou component 2.1. Inception workshop in Guizhou in March Interim report review workshop in Guizhou by the end of July Final draft report review workshop in Guizhou by the end of October Technical training in Guizhou by the end of October Dissemination conference in Chongqing by the end of November Submission of final report and summary by the end of December TA completion by the end of March 2011 Assumptions and Risks Assumptions Support from all relevant stakeholders is ensured. Senior government officials will guide the research. Risks Qualified consultants are not available or not recruited in a timely manner. Data and information needed for the consultants to identify high-priority needs may be inaccessible or delayed. Inputs ADB: $800,000 Consulting Services: $490,000 Reports and Communication: $30,000 Translation, Interpretation, and Support Costs: $50,000 Workshops: $100,000 Equipment: $50,000 Contingencies: $80,000 Government: $200,000 for counterpart staff, office facilities, and local logistic supports. ADB = Asian Development Bank, Chongqing = Chongqing Municipality, FYP = five-year plan, Guizhou = Guizhou Province, PRC = People s Republic of China, TA = technical assistance. Robert Wihtol Country Director, PRCM Klaus Gerhaeusser Director General, EARD

10 Appendix 2 8 Item COST ESTIMATES AND FINANCING PLAN ($'000) Total Cost Chongqing Component A. Asian Development Bank Financing a 1. Consultants a. International Consultants i. Remuneration and Per Diem 45.0 ii. International Travel Costs b 15.0 b. National Consultants i. Remuneration and Per Diem ii. Domestic Travel Costs c 25.0 c. Resource Persons 2. Reports and Communications Translation, Interpretation, and Support Costs Training, Seminars, and Conferences d Equipment e Contingency 40.0 Subtotal (A) B. Government Financing (in kind) Counterpart staff, information, basic data, and logistical support Subtotal (B) Total Guizhou Component A. Asian Development Bank Financing a 1. Consultants a. International Consultants i. Remuneration and Per Diem 45.0 ii. International Travel Costs b 15.0 b. National Consultants i. Remuneration and Per Diem ii. Domestic Travel Costs c 25.0 c. Resource Persons 2. Reports and Communications Translation, Interpretation, and Support Costs Training, Seminars, and Conferences d Equipment e Contingency 40.0 Subtotal (A) B. Government Financing (in kind) Counterpart staff, information, basic data, and logistical support Subtotal (B) Total Total 1, ADB = Asian Development Bank. a Financed by ADB s Technical Assistance Funding Program (Technical Assistance Special Fund others). The funds will be administered by the engaged consulting firms. b Includes intercity travel in the People s Republic of China. c Includes local intercity travel in Chongqing and Guizhou.

11 9 Appendix 2 d Includes honoraria for resource persons in the workshops and costs for final report dissemination. Specific budget and arrangements are subject to prior ADB approval. e Office equipment and facilities to support implementation of the TA project may include laptop computers, printers, fax machines, scanners, cameras, digital recorders, copy machines, and other office consumables. Specific package is subject to prior ADB approval. The equipment will be procured through shopping procedure. Source: Asian Development Bank estimates.

12 Appendix 3 10 A. General OUTLINE TERMS OF REFERENCE FOR CONSULTANTS 1. Two consulting firms will be engaged, one to provide advisory and technical services to Chongqing Municipality, and the other to provide such services to the government of Guizhou Province. Each consulting firm will organize a team of international and national consultants. The consultants will carry out their assigned tasks in close cooperation with the government agencies and under the guidance of a vice mayor or vice governor. The consulting firms will be engaged by The Asian Development Bank (ADB) in accordance with its Guidelines on the Use of Consultants (2007, as amended from time to time). 2. The Chongqing component will require a total of 37 person-months of consulting services, including 3 person-months of international consultant and 34 person-months of national consultant services. The international consultants include a regional development planning specialist and a public resource management specialist. The national consultants will have expertise in regional development, urban rural unification, community development, finance, transportation, infrastructure, public private partnerships, forestation, ecological economics, social safety, traffic safety, health, and sports. The national consultants will be divided into six groups, as indicated below, and the international consultants will support all groups. 3. The Guizhou component will require a total of 40 person-months of consulting services, including 3 person-months of international consultant and 37 person-months of national consultant services. The international consultants include a regional development planning specialist and an ecological economist. The national consultants will have expertise in regional development and planning, promotion of the recycling economy, industrialization, urbanization, food processing, and stony desertification countermeasures. The national consultants will be divided into five groups, as indicated below, and the international consultants will support all groups. 4. The TA in both Chongqing and Guizhou will (i) conduct a thorough diagnosis of the constraints to development in the sectors of interest, (ii) rank the constraints in the order of importance and identify those that are binding, and (iii) develop strategies for development based on an analysis of the binding constraints and their interrelationships. In addition to the specific tasks listed below, all consultants are required to (i) summarize key policy recommendations periodically for distribution to senior government officials; (ii) present findings and conclusions at conferences; (iii) propose project concept profiles for potential high-priority projects that could be implemented in the short (1 2 years) and medium term (3 5 years), and in particular, highlight those suitable for ADB's involvement; (iv) act as resource persons for the training programs under this TA as required; (v) summarize experiences and lessons derived from similar ADB TA projects in other provinces and incorporate these in the implementation of this TA project; and (vi) share the results of the diagnosis of development constraints with the designated team of government officials. B. Chongqing Component 1. International Consultants (3 person-months) 5. Urban rural development specialist (1.5 person-months). The specialist should have

13 11 Appendix 3 knowledge and experience in regional development strategy formulation, housing and community development, public facility development and management, private sector development, and urban rural infrastructure programming. Work experience in the People s Republic of China (PRC) and proficiency in Chinese are advantages. Responsibilities will include (i) designing the project and assigning tasks to team member, in conjunction with the national regional development economist (team leader); (ii) advising the national consultants in groups 1 3 below in undertaking their studies; (iii) summarizing international best practices in regional development in the assigned areas and recommending applicable practices for use in Chongqing; (iv) identifying key challenges faced by Chongqing in the assigned areas; (v) ensuring inputs to reports prepared for ADB and the Chongqing provincial government are of consistent quality; and (vi) and editing of the final reports. 6. Public resource management specialist (1.5 person-months). The specialist should have knowledge of and experience in the areas of public private partnerships, project financing, public investment programming, private sector development, and regional development strategy formulation. Work experience in the PRC and proficiency in Chinese are advantages. In conjunction with the national regional development economist (team leader), responsibilities will include (i) designing the project and assigning tasks to team members; (ii) advising the national consultants in groups 4 6 below in undertaking their studies; (iii) summarizing international best practices in regional development in the assigned areas and making recommendations regarding their applicability to Chongqing s conditions; (iv) identifying key challenges faced by Chongqing in the assigned areas; (v) ensuring inputs to reports prepared for ADB and the Guizhou provincial government are of consistent quality; and (vi) editing of the final reports. 2. National Consultants (34 person-months) 7. Group 1 will consist of an investment and financing specialist (team leader, 5 personmonths), a fiscal and taxation specialist (deputy team leader, 4 person-months), and a public private partnership specialist (deputy team leader, 4 person-months). The consultants should have knowledge of and experience with regional development strategy formulation, community development, transportation, forestation, health care, social safety, and urban rural development. Work experience in Chongqing will be preferred. This group of consultants will be responsible for (i) designing the project and assigning tasks to team members; (ii) helping sector-level groups conduct the diagnosis of sector development constraints, cost and map out the resources needed for each sector, and tie all the sector reports together; (iii) using inputs from other national and international experts to prepare a comprehensive report on attracting social investments in the construction of "five Chongqings" under the overall framework of unifying urban rural development; (iv) designing the project methodology and approach in full consultation with the executing agency and ADB; (v) supervising the consulting team; and (vi) acting as a general coordinator during policy dialogues with government agencies and overall project implementation. Among other requirements, the comprehensive report must estimate the costs and resources required to construct the "five Chongqings", and provide policy recommendations on how to attract social capital to the construction efforts. 8. Group 2 will comprise a urban-rural development specialist (group leader, 4 personmonths). The consultant should have knowledge of and experience in regional development strategy formulation, housing and community development, public facility development and management, private sector development, and urban rural infrastructure programming. This group will be responsible for writing a subproject report on construction of "livable Chongqing", which comprises a friendly environment, decent dwellings, well developed communities, and sufficient living facilities. The report should (i) review and comment on Chongqing community

14 Appendix 3 12 development programs and related policy documents; (ii) propose changes to current programs and other arrangements; and (iii) in relation to the construction of livable Chongqing, (a) identify the key issues and challenges faced, (b) diagnose the constraints that discourage the participation of the private sector, (c) estimate the costs and resources needed, and (d) provide policy recommendations on how to attract private sector investment. 9. Group 3 will comprise a transportation specialist (group leader, 4 person-months). The consultant should have experience in and knowledge of urban rural transportation programming, transportation infrastructure development and management, and laws and policies that regulate investments and financing arrangements in transportation. This group will be responsible for writing a subproject report on construction of "smooth transport Chongqing," which comprises adequate roads, smooth mass transport, and convenient transportation. The report should (i) review and comment on Chongqing transportation development programs and relative policy documents; (ii) propose changes to the current programs and other arrangements; (iii) recommend policy and/or legislative changes to create enabling conditions for public private partnerships; and (iv) in relation to construction of smooth transport Chongqing, (a) identify the key issues and challenges, (b) diagnose the constraints that discourage the participation of non-public sectors, (c) cost and map out the resources needed, and (d) provide policy recommendations on how to attract non-public sector investment. 10. Group 4 will comprise a forestation specialist (group leader, 4 person-months). The forestation specialist should have experience with and knowledge of urban greening, park and garden planning, environmental protection, and relevant laws and policies that regulate investment activities and financing arrangements in forestation. This group will be responsible for writing a subproject report on construction of "forested Chongqing", which comprises provision of good air quality and plentiful grass and forested land. The report should (i) review and comment on Chongqing forestation programs and relevant policy documents; (ii) propose changes to the current programs and other arrangements; and (iii) in relation to construction of "forested Chongqing," (a) identify the key issues and challenges, (b) conduct a diagnosis of constraints that discourage the participation of non-public sectors, (c) cost and map out resources, and (d) provide policy recommendations on how to attract non-public sector investment. 11. Group 5 will comprise a social safety specialist (group leader, 4 person-months). The social safety specialist should have experience with and knowledge of urban rural emergency management, civil laws and criminal laws, criminal psychology, community safety management, and relevant laws and policies that regulate investment activities and financing arrangements in social safety. This group will be responsible for writing a subproject report on construction of "peaceful Chongqing," comprising safety, security, and a low crime rate. The report should (i) review and comment on Chongqing social safety programs and relative policy documents, (ii) propose changes to the current programs and other arrangements, and (iii) in relation to construction of "peaceful Chongqing", (a) identify the key issues and challenges, (b) conduct a diagnosis of constraints that discourage the participation of non-public sectors, (c) cost and map out the needed resources, and (d) provide policy recommendations on how to attract non-public sector investment. 12. Group 6 will engage a health specialist (group leader, 3 person-months) and a sports specialist (2 person-months). The health specialist should have experience with and knowledge of emergency management of epidemics and infectious diseases, prevention of epidemics, medical resource mobilization and management, quality control of medicine and chemical agents, supervision of medical services, and relevant laws and policies that regulate investment

15 13 Appendix 3 activities and financing arrangements in the health sector. The sports specialist should have experience with and knowledge of large-scale sports program development and management, public sports facility development and management, and the relevant laws and policies that regulate investment activities and financing arrangements in sports facilities and programs. This group will be responsible for writing a subproject report on construction of "healthy Chongqing", which comprises good public health facilities, affordable medical charges, and sufficient sports and recreation facilities. The report should (i) review and comment on Chongqing health programs and related policy documents; (ii) propose changes to the current programs and other arrangements, and in particular those linked with the new national health policy framework; and (iii) in relation to the construction of " healthy Chongqing", (a) identify the key issues and challenges, (b) conduct a diagnosis of constraints that discourage the participation of non-public sectors, (c) cost and map out the needed resources, and (d) provide policy recommendations on how to attract non-public sector investment. 3. Resource Persons (90 days) 13. ADB will additionally recruit short-term international and national resource persons indicatively for a total of 90 days. The resource persons will flexibly provide written inputs to the reports (groups 2 to 5 above in particular), contribute to workshops and training, and reformat TA policy recommendations for inclusion in policy documents, as needed. The tasks for resource persons will be jointly identified by the EA, ADB, and the consultants during work plan discussions at the TA inception workshop and the midterm review. The assignment for each resource person should not exceed 15 working days. C. Guizhou Component 1. International Consultants (3 person-months) 14. Regional development planning specialist (1.5 person-months). The specialist should have knowledge of and experience with regional development strategy formulation, poverty reduction, private sector development, industrialization, and urbanization. Work experience in the PRC and proficiency in Chinese are advantages. Responsibilities include, in conjunction with the national regional development economist (team leader) (i) designing the project; (ii) advising groups 1 3 below in undertaking their studies; (iii) summarizing international best practices in regional development in the assigned areas and recommending applicable practices for use in Guizhou; (iv) identifying key challenges faced by Guizhou in the assigned areas; (v) ensuring inputs to reports prepared for ADB and the Guizhou provincial government are of consistent quality; and (vi) editing the final reports. 15. Ecological economist (1.5 person-months). The economist should have knowledge of and experience with agricultural development, environmental protection, the economics of recycling, stony desertification treatments, and regional development strategy formulation. Work experience in the PRC and proficiency in Chinese are advantages. Responsibilities will include (i) in conjunction with the national regional development economist (team leader), designing the project; (ii) advising groups 1, 4 and 5 below in undertaking their studies; (iii) summarizing international best practices in regional development in the assigned areas and recommending applicable practices for use in Guizhou; (iv) identifying key challenges faced by Guizhou in the assigned areas; (v) ensuring inputs to reports prepared for ADB and the Guizhou provincial government are of consistent quality; and (vi) editing of the final reports. 2. National Consultants (37 person-months)

16 Appendix Group 1 will consist of a regional development economist (team leader, 5 personmonths) and an ecological economist (deputy team leader, 4 person-months). The consultants should have knowledge of and experience in regional development strategy formulation, the economics of recycling, technical innovation, industrialization, and urbanization. Work experience in Guizhou will be preferred. The consultants will be responsible for (i) conducting the diagnosis of sector development constraints and linking all sector reports; (ii) designing the project framework and formulating work plans, in full consultation with government agencies and ADB; (iii) coordinating with team members on sector study designs and work progress; (iv) using the inputs of other national and international experts to prepare a comprehensive report on promoting a change in Guizhou's economic development pattern; (v) supervising the consulting team members; and (vi) acting as a general coordinator in policy dialogues with the government, and reporting on TA implementation progress. 17. Group 2 will comprise an industrial economist (group leader, 4 person-months), a technological economist (3 person-months), and a recycling economy specialist (2 personmonths). The consultants should at minimum have knowledge of and experience with optimizing and upgrading industrial structures, technical innovation, and industrial greening. This group will be responsible for writing a subproject report on increasing the speed of industrialization in Guizhou. The report should (i) identify key issues with respect to Guizhou's current industrial structure, (ii) analyze challenges and opportunities relating to industrialization in Guizhou, (iii) evaluate Guizhou's unique and dominant industries, (iv) recommend an action plan for increasing the pace of development of unique and dominant industries and extending their industrial chains, and (v) provide policy recommendations for optimizing and upgrading Guizhou's industrial structure. 18. Group 3 will include an urbanization specialist (group leader, 4 person-months) and an urban rural unification specialist (3 person-months). The consultants should have knowledge of and experience with urbanization, migrant workers, agribusiness, and urban rural infrastructure. The group will be responsible for writing a subproject report on the approaches to and policy reforms for accelerating green urbanization in Guizhou. The report should (i) review the progress of and key issues regarding urbanization in Guizhou; (ii) analyze the challenges and opportunities relating to the promotion of green urbanization in Guizhou; (iii) propose approaches, development channels, and government interventions to hasten urbanization in Guizhou; and (iv) provide policy recommendations for accelerating green urbanization in Guizhou. 19. Group 4 will encompass an ecological agricultural specialist (group leader, 4 personmonths) and a food specialist (3 person-months). The consultants should have knowledge of and experience with agricultural product processing, food production and development, food storage and transportation, food safety, agribusiness, and marketing. This group will be responsible for writing a subproject report on accelerating the development of food that meets various food safety and quality standards (i.e., hazard-free, green and organic food). Detailed tasks include (i) reviewing Guizhou's geographical and climatic conditions and the resources available for producing environment-friendly agricultural products; (ii) identifying the competitive advantages of Guizhou's agricultural products; (iii) analyzing challenges and opportunities with respect to the development of hazard-free, green and organic food in Guizhou; (iv) proposing approaches, development channels, and government interventions to hasten the development of hazard-free, green and organic food; and (v) recommending policy reforms for this purpose.

17 15 Appendix Group 5 will include an economic geographer (group leader, 3 person-months) and a forestry expert (2 person-months). The consultants should have work experience in Karst areas and knowledge of stony desertification management and forest economy development. This group will be responsible for writing a subproject report on approaches and policy measures for preventing and dealing with stony desertification. Detailed tasks include (i) analyzing the causes and impacts of stony desertification; (ii) summarizing experiences and lessons related to stony desertification; (iii) reviewing the current policy arrangements for addressing stony desertification; (iv) proposing approaches, development channels, and government interventions related to stony desertification management; and (v) recommending policy changes for strengthening stony desertification management. 3. Resource Persons (90 days) 21. ADB will additionally recruit international and national short-term resource persons indicatively for a total of 90 days. The resource persons recruited will flexibly provide written inputs to the reports, contribute to workshops and training, and reformat TA policy recommendations for inclusion in policy documents, as needed. The tasks for resource persons will be jointly identified by the EA, ADB, and the consultants during work plan discussions at the TA inception workshop and the midterm review. The assignment for each resource person should not exceed 15 working days.