China - Chongqing Small Cities Infrastructure Improvement Project

Page 1 PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: AB267 Project Name Chongqing Small Cities Infrastructure Improvement Region EAST ASIA AND PACIFIC Sector Water supply (30%);Roads and highways (30%);Sanitation (20%);Flood protection (10%);Sub-national government administration (10%) Project ID P081161 Borrower(s) PEOPLE'S REPUBLIC OF CHINA Implementing Agency Chongqing Project Management Office Floor 14 th , Shengdi Mansion No.228, Renmin Lu Yuzhong District Chongqing, 400015 Environment Category [] A [X ] B [ ] C [ ] FI [ x] TBD (to be determined) Safeguard Classification [ ] S 1 [ X] S 2 [ ] S 3 [ ] S F [ x] TBD (to be determined) Date PID Prepared April 26, 2004 Estimated Date of Appraisal Authorization January 25, 2005 Estimated Date of Board Approval June 21, 2005 1. Key development issues and rationale for Bank involvement China is experiencing rapid urban growth. Over the next 10 to 15 years, over half of its population is expected to live in urban areas. Rural-urban migration is increasing as demand for farm labor declines and controls on mobility are reduced. Mobility is further facilitated by continuously improving transport links between secondary cities. This increased rural-urban migration means that cities are facing increased pressure to provide employment, housing and other basic infrastructure to the new arrivals. Government policies are directed towards the creating necessary infrastructure and improving environmental conditions in secondary cities to attract investment, to promote economic growth, and generate employment. Cities must compete for the needed investments by offering the strong incentives in terms of quality of life, excellent public and social infrastructure, a clean environment and a capable labor force. Chongqing Municipality, created in 1997, is the fourth municipality with provincial status. It is the largest economic center in the upper reaches of the Yangtze River in southwestern China, and has a population of about 31 million. Approximately 80% of Chongqing's population is agricultural or rural-based, but like other areas, Chongqing is seeing significant rural-urban migration. With rural incomes significantly below urban incomes and mobility on the rise, rural inhabitants are moving to Chongqing