Water reuse. Water reuse was included in the project design, which contributed to water conservation and efficiency. For commercial use of reclaimed water, identification of suitable industrial users is critical. Lingqing and Gaotang municipal wastewater management subprojects identified two existing paper mills close to the wastewater treatment plants as potential users at appraisal, and started providing treated wastewater upon operation of wastewater treatment plants to generate revenues. The Binzhou subproject failed to commercialize water reuse as the major potential industrial user relocated. Clean Development Mechanism program for small-scale landfills. The Clean Development Mechanism program has been implemented successfully in large-scale landfills. With strong support from ADB and Shandong Provincial Government, the Zouping solid waste management subproject was successfully registered as a Clean Development Mechanism project under the Kyoto Protocol. The implementing agency, Zouping County Domestic Solid Waste Limited Liability Company, signed a carbon purchase agreement with the Asia Pacific Carbon Fund. This subproject provided the first pilot of a small-scale landfill and actively contributed to global greenhouse gas reduction. ADB's technical support and commitment from local governments to achieve more environmental benefits are critical for Clean Development Mechanism program implementation. Cost recovery scheme for solid waste management project. In the PRC, tariff setting and collection for solid waste management generally lags behind other public services. In small cities or counties where solid waste management services are being extended to rural residents to promote integrated urban-rural development, the situation is even worse. For most solid waste management projects, local governments provide subsidies for their operation, in particular the solid waste collection and transfer. Although the situation is improving, it may take longer than expected to increase the tariff to cost recovery levels. For future projects, a more realistic cost recovery scheme or partial cost recovery scheme shall be considered. Flexibility to optimize project design during implementation. This flexibility, which is critical to enhance effectiveness of project outcomes, enabled the project to use loan savings to expand the municipal wastewater management and solid waste management subprojects' service areas and improve project facilities' operation efficiency. On the other hand, when the urban plan of Shanghe County was updated, the design of the Shanghe municipal wastewater management subproject was changed to a two-phase construction plan to avoid overcapacity of the wastewater treatment plant, which has been an issue according to prior ADB-financed projects. In addition, local governments leveraged further financing to expand infrastructure, such as sludge treatment and disposal facilities in municipal wastewater management subprojects and the wetland in Binzhou to further purify the wastewater treatment plant effluent for landscaping works use. These measures enhanced outcome effectiveness and sustainability of the project.
Shandong Hai River Basin Pollution Control Project