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36437-013: Integrated Ecosystem and Water Resources Management In Completion Report Project Number: 36437-013 Loan Number: 2428 Grant Number: 0194 August 2019 People’s Republic of China: Integrated Ecosystem and Water Resources Management in the Baiyangdian Basin Project This document is being disclosed to the public in accordance with ADB’s Access to Information Policy. CURRENCY EQUIVALENTS Currency Unit – yuan (CNY) At Appraisal At Project Completion (15 May 2008) (31 July 2017) CNY1.00 = $0.14285 $0.14852 $1.00 = CNY7.00 CNY6.73 ABBREVIATIONS ADB – Asian Development Bank APCF – Asia Pacific Carbon Fund BDRC – Baoding Development and Reform Commission BMG – Baoding municipal government BPMO – Baoding project management office COD – chemical oxygen demand EIA – environmental impact assessment EIRR – economic internal rate of return EMP – environmental management plan FIRR – financial internal rate of return FSR – feasibility study report FYEPP – Five-Year Environmental Protection Plan GEF – Global Environment Facility IEM – integrated ecosystem management IWRM – integrated water resources management PIU – project implementation unit PRC – People’s Republic of China SEIA – summary environmental impact assessment TA – technical assistance WACC – weighted average cost of capital WSS – water supply system WWTP – wastewater treatment plant WEIGHTS AND MEASURES CO2 – carbon dioxide CO2e – carbon dioxide equivalent ha – hectare km2 – square kilometer m2 – square meter m3 – cubic meter NOTES In this report, “$” refers to United States dollars. Vice-President Ahmed M. Saeed, Operations 2 Director General Amy S. P. Leung, East Asia Department (EARD) Director Benedict Bingham, People’s Republic of China (PRC) Resident Mission, EARD Team leader Xin Shen, Senior Project Officer, PRC Resident Mission, EARD Team members Ning Li, Senior Environment Officer, PRC Resident Mission, EARD Yurong Tao, Project Analyst, PRC Resident Mission, EARD Fang Wang, Senior Financial Management Officer, PRC Resident Mission, EARD Jia Wang, Operations Assistant, PRC Resident Mission, EARD Wenlong Zhu, Senior Safeguards Officer (Resettlement), PRC Resident Mission, 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. CONTENTS Page BASIC DATA i I. PROJECT DESCRIPTION 1 II. DESIGN AND IMPLEMENTATION 1 A. Project Design and Formulation 1 B. Project Outputs 3 C. Project Costs and Financing 5 D. Disbursements 5 E. Project Schedule 6 F. Implementation Arrangements 6 G. Technical Assistance 7 H. Consultant Recruitment and Procurement 7 I. Safeguards 8 J. Monitoring and Reporting 9 III. EVALUATION OF PERFORMANCE 9 A. Relevance 9 B. Effectiveness 10 C. Efficiency 10 D. Sustainability 11 E. Development Impact 12 F. Performance of the Borrower and the Executing Agency 13 G. Performance of the Asian Development Bank 13 H. Overall Assessment 13 IV. ISSUES, LESSONS, AND RECOMMENDATIONS 14 A. Issues and Lessons 14 B. Recommendations 15 APPENDIXES 1. Project Design and Monitoring Framework 16 2. Project Cost and Financing 23 3. Projected and Actual Contract Awards and Disbursements 26 4. Environmental Impact Analysis 28 5. Evaluation of Land Acquisition and Resettlement Implementation 32 6. Status of Compliance with Legal Covenants 37 7. Financial and Economic Reevaluation 49 8. Social Impact and Poverty Reduction 57 SUPPLEMENTARY APPENDIX (available on request) Global Environment Facility Terminal Evaluation Report BASIC DATA A. Loan and Grant Identification 1. Country People’s Republic of China 2. Loan/grant numbers and financing 2428 OCR/0194 GEF sources 3. Project title Integrated Ecosystem and Water Resources Management in the Baiyangdian Basin Project 4. Borrower People’s Republic of China 5. Executing agency Baoding Municipal Government 6. Amount of loan $100 million Amount of grant $2.975 million 7. Financing modality Loan and grant B. Loan and Grant Data 1. Appraisal – Date started 5 June 2007 – Date completed 13 June 2007 2. Loan negotiations – Date started 1 April 2008 – Date completed 2 April 2008 3. Date of Board approval 24 June 2008 4. Date of loan agreement 27 November 2008 5. Date of loan effectiveness – In loan agreement 25 February 2009 – Actual 27 March 2009 – Number of extensions 1 6. Project completion date – Appraisal 30 September 2013 – Actual 31 July 2017 7. Loan closing date – In loan agreement 31 March 2014 – Actual 31 July 2017 – Number of extensions 3 8. Financial closing date – Actual 5 March 2018 9. Terms of loan – Interest rate London interbank offered rate-based – Maturity (number of years) 25 years – Grace period (number of years) 5 years 10. Terms of relending (if any) – Interest rate London interbank offered rate-based – Maturity (number of years) 25 years – Grace period (number of years) 5 years – Second-step borrower Hebei Provincial Government – Interest rate London interbank offered rate-based – Maturity (number of years) 25 years – Grace period (number of years) 5 years ii – Tertiary-step borrower Baoding Municipal Government 11. GEF co-financing – GEF Council Approval 28 July 2008 – GEF CEO endorsement 23 February 2010 – Date of financing agreement 23 June 2010 – Closing date in financing 31 March 2014 agreement – Actual closing date 31 July 2017 – Number of extensions 3 – Actual financial closing date 7 March 2018 12. Disbursements a. Dates - Loan Initial Disbursement Final Disbursement Time Interval 15 June 2009 9 November 2017 101 months Effective Date Actual Closing Date Time Interval 27 March 2009 31 July 2017 100 months b. Dates – GEF Grant Initial Disbursement Final Disbursement Time Interval 11 May 2011 18 July 2012 14 months Effective Date Actual Closing Date Time Interval 23 June 2010 31 July 2017 85 months c. Loan amount ($ million) Changes Last Original during Revised Amount Undisbursed No. Category Name Allocation Implementation Allocation Disbursed Balance Works 48,000,000.00 (4,687,975.21) 43,312,024.79 38,439,943.69 4,872,081.10 01 Equipment 35,520,000.00 16,534,929.92 52,054,929.92 44,631,982.46 7,422,947.46 02 03 Consultants 1,750,000.00 350,000.00 2,100,000.00 1,143,919.95 956,080.05 Training, study tours, 500,000.00 0 500,000.00 1,885.27 498,114.73 04 conferences & workshops Interest & Commitment 12,000,000.00 (9,966,954.71) 2,033,045.29 2,033,045.29 0 Charge 05 06 Unallocated 2,230,000.00 (2,230,000.00) 0 0 0 Total 100,000,000.00 100,000,000.00 86,250,776.66 13,749,223.34 iii d. Grant Amount ($) Original Disbursed Undisbursed Number Category Name Allocation Amount Balance 1 Works 360,000.00 0 360,000.00 2 Equipment, Vehicles and 113,000.00 55,319.78 57,680.22 Furniture 3 Others 753,000.00 7,122.40 745,877.60 4 Consulting Services 1,749,000.00 168,625.07 1,580,374.93 TOTAL 2,975,000.00 231,067.25 2,743,932.75 C. Project Data 1. Project cost ($ million) Cost Appraisal Estimate Actual Foreign exchange cost 103.0 86.5 Local currency cost 170.4 114.3 Total 273.4 200.8 2. Financing plan ($ million) Source Appraisal Estimate Actual Asian Development Bank 100.0 86.3 Global Environment Facility 3.0 0.2 Borrower Financed 168.6 114.3 Asia Pacific Carbon Fund 1.8 0.0 Total 273.4 200.8 3. Cost breakdown by project component ($ million) Appraisal Item Cost Category Estimates Actual A. Base Cost 1 Subproject Investments 226.1 196.5 2 Biodiversity Conservation / Institutional Strengthening 4.5 0.9 3 Project Management Support 10.5 1.4 Subtotal (A) 241.1 198.8 B. Contingencies 19.5 - C. Finance Charges During Implementation 12.8 2.0 Total (A+B+C) 273.4 200.8 4. Project schedule Item Appraisal Estimate Actual Date of contract with consultants September 2009 October 2009 Civil works contract Date of award September 2010 April 2009 Completion of work March 2014 30 June 2017 Equipment and supplies First procurement April 2009 March 2009 Last procurement September 2010 October 2016 Completion of equipment installation March 2014 31 March 2017 Start of operations Completion of tests and commissioning September 2013 30 June 2017 Beginning of start-up March 2014 30 June 2017 iv 5. Project performance report ratings Ratings Implementation Period Development Objectives Implementation Progress From 28 March 2009 to 31 December 2009 Satisfactory Satisfactory From 1 January 2010 to 31 December 2010 Satisfactory Satisfactory Single Project Rating From 1 January 2011 to 31 March 2013 On-track From 1 April 2013 to 30 June 2013 Potential problem From 1 July 2013 to 30 September 2013 Actual Problem From 1 October 2013 to 30 September 2017 On-track From 1 October 2017 to 31 December 2017 Potential Problem From 1 January 2018 to 5 March 2018 On-track D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person-Days of Members Fact-finding 6-16 March 2007 5 40 a, b, c, d, e Appraisal 6-13 June 2007 4 28 a, e, f, h Carbon Market Initiative 15-19 October 2007 3 12 a, h, i Post-Appraisal 1 13-17 November 2007 3 12 a, j, k Post-Appraisal 2 25-28 January 2008 1 3 a Negotiation 1-3 April 2008 3 6 a, f, g Inception 8-11 December 2009 4 12 a, g, h, k Handover 1-2 March 2010 2 4 a, g Review 1 19-27 September 2010 5 20 g, k, l, m, o, Review 2 27 June-2 July 2011 6 15 e, g, k, n, p, q, Review 3 23-30 November 2011 2 14 g, h Review 4 5-9 November 2012 5 15 i, g, n, k, r Mid-term Review 17-25 June 2013 3 17 g, k, m Review 5 14-18 July 2014 3 12 g, n, s Review 6 22-25 December 2015 1 3 g Review 7 24-31 May 2016 1 7 g Project completion review 18-27 November 2017 4 20 g, k, l, n a = economist, b = resettlement specialist, c = project specialist, d = gender specialist, e = sector specialist, f = counsel, g = project officer, h = international consultant, i = national consultant, j = procurement officer, k = project analyst, l = resettlement officer, m = head, portfolio management unit, n = environment officer, o = portfolio management officer, p = financial control analyst, q = procurement specialist, r = deputy country director, s = environment specialist I.
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