ADB Approves $150M Loan for Low-Carbon, Climate-Resilient Urban Development in Xianning

The financing will underpin a wide-ranging urban transformation initiative aimed at improving transport systems, urban services, and climate resilience in Xianning and its county-level city, Chibi.

The Asian Development Bank (ADB) has approved a CNY1.07 billion (approximately $150 million) loan to support low-carbon and climate-resilient urban development in Xianning Municipality, located in Hubei Province of the People’s Republic of China (PRC). The financing will underpin a wide-ranging urban transformation initiative aimed at improving transport systems, urban services, and climate resilience in Xianning and its county-level city, Chibi.

According to ADB Country Director for the PRC Asif Cheema, the Hubei Xianning Low-Carbon and Climate-Resilient Urban Development Project is designed to build an efficient, smart, safe, and resilient urban transport and service network. The project aligns closely with the PRC’s national objectives for high-quality and low-carbon urbanization, as well as ADB’s country partnership strategy for the PRC. Importantly, it is intended to function as a replicable model for other small and medium-sized cities across the country seeking to strengthen urban resilience while reducing carbon emissions.

Xianning is situated in southeastern Hubei Province along the middle reaches of the Yangtze River and has a population of around 2.6 million, including residents of Chibi City. Despite its abundant natural resources and strategic location within the Wuhan City Circle, the municipality faces persistent challenges that constrain economic growth and urban livability. These include aging and insufficient infrastructure, frequent flooding, worsening traffic congestion, and elevated road safety risks. Public transport usage remains relatively low, cycling infrastructure is limited, and deteriorating utilities have led to repeated disruptions in essential urban services.

The impacts of climate change and rapid urbanization have further intensified these pressures. Severe flooding in 2020 caused substantial economic losses, highlighting vulnerabilities in drainage and flood management systems. At the same time, urban expansion has progressed faster than institutional capacity for integrated planning, disaster preparedness, and emergency response, underscoring the need for coordinated, climate-informed infrastructure investments.

To address these challenges, the ADB-supported project will finance the construction of new public transport infrastructure, supported by advanced digital information and management systems to improve efficiency, reliability, and user experience. A new water supply pipeline will be built to enhance service reliability and access for more than 115,000 households, helping to safeguard water security amid climate variability. The project will also rehabilitate and expand nonmotorized transport facilities and urban drainage systems using a “dig once and build back better” approach, which minimizes repeated roadworks while maximizing resilience and cost efficiency.

A key component of the initiative is the establishment of a low-emission zone in the historic urban core of Chibi City. This measure aims to reduce air pollution, protect cultural heritage, and promote sustainable mobility. The project will introduce electric buses and electric boats to serve both daily commuting and tourism needs, contributing to lower greenhouse gas emissions and quieter, cleaner urban environments. Road safety will be significantly enhanced through the elimination of at least 20 identified safety blind spots, improving accessibility and protection for women, children, older persons, and other vulnerable road users.

Gender inclusion and social benefits are integral to the project design. Skilled employment opportunities will be created for women during both the construction and operational phases of the integrated smart electric bus and ferry network, supporting inclusive economic participation and capacity development.

ADB’s value addition extends beyond financing. The project incorporates advanced hydrological and hydraulic modeling to improve flood risk management, as well as artificial intelligence-based transport modeling to optimize network performance. The integration of a low-emission zone reflects ADB’s technical input and global experience in sustainable urban development. The build-back-better framework strengthens long-term resilience by coordinating drainage upgrades with transport and road improvements, and by embedding nonmotorized transport, nature-based solutions, and enhanced road safety measures into urban design.

In addition, Xianning will benefit from ADB’s regional and global knowledge platforms, including the Women in Transport Network and partnerships on sustainable urban transport. These platforms will support institutional strengthening, knowledge sharing, and long-term sustainability, ensuring that the project delivers enduring social, environmental, and economic benefits while contributing to the PRC’s broader low-carbon development agenda.