The World Bank Report No: ISR15380

Implementation Status & Results China-Second Medium Cities Infrastructure Project (P092618)

Operation Name: China-Second Liaoning Medium Cities Infrastructure Project Project Stage: Implementation Seq.No: 8 Status: ARCHIVED Archive Date: 25-Jun-2014 (P092618)

Public Disclosure Authorized Country: China Approval FY: 2007 Product Line:IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Lioning Urban Construction and Renewal Project Office Key Dates Public Disclosure Copy Board Approval Date 26-Jun-2007 Original Closing Date 31-Dec-2013 Planned Mid Term Review Date Last Archived ISR Date 03-Mar-2014 Effectiveness Date 04-Dec-2007 Revised Closing Date 31-Dec-2014 Actual Mid Term Review Date 18-Oct-2010

Project Development Objectives China-Second Liaoning Medium Cities Infrastructure Project (P092618) Project Development Objective (from Project Appraisal Document) The project development objective is to improve the performance and sustainability of water supply, wastewater, and solid waste services in the LMC-2 cities. Enhanced wastewater and solid waste services will also help reduce pollution into the and contribute to improving Bohai Sea water quality. Has the Project Development Objective been changed since Board Approval of the Program? Public Disclosure Authorized Yes No

China-GEF-Liaoning (P090375) Global Environmental Objective (from Project Appraisal Document) The global environmental objective of the LMC-2 project with the GEF enhancements is the reduction of land-based pollution into the Bohai Sea through investments in wastewater and solid waste infrastructure and improved utility regulation, planning and management in the LMC-2 cities and throughout Liaoning Province. Has the Global Environmental Objective been changed since Board Approval of the Program?

Yes No

Component(s)

Component Name Component Cost Public Disclosure Authorized Wastewater Infrastructure 157.44 Water Supply Infrastructure 172.24 Solid Waste Management Infrastructure 84.39 Institutional Development 6.70 Public Disclosure Copy

Overall Ratings

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Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Satisfactory Progress towards achievement of GEO Moderately Unsatisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating

Implementation Status Overview A significant percentage (62%) of the physical works has been satisfactorily completed, and currently operational and delivering benefits to target population. Another 30% are substantially complete and will be operational before the closing date of December 31, 2104. The remaining 8% are small packages which have been delayed. Some of the key achievements to date include: (i) increasing clean water supply by 190,000 tons per day for and , benefiting a population of approximately 1.1 million; (ii) completing

Public Disclosure Copy three new wastewater treatment plants with a combined capacity of 250,000 tons per day in Yingkou, and Gaizhou, benefiting nearly 1.8 million with nearly 15,600 tons of biochemical oxygen pollution load reduction in 2013 that otherwise would have gone into the Bohai Sea; (iii) increasing modern sanitary landfill capacity by 1,400 ton per year in . These achievements far exceed the project targets. In addition the project successfully completed: (i) upgrading and installing 580 km of water supply networks ; (iii) upgrading and installing about 130 km of main sewers lines; (iv) implementing active Non-Revenue Water programs in five cities; and (v) improving cost recovery trends and installing satisfactory asset management plans in all participating water utilities. The project is also piloting a program that extends and integrates solid waste collection and disposal services into peri-urban communities in Panjin.

With respect to the GEF Grant, three activities have been satisfactorily completed. The remaining 7 activities are progressing satisfactorily and expected to be completed before the closing date of December 31, 2014.

Locations Country First Administrative Division Location Planned Actual China Liaoning Yingkou Shi ✔ ✔

China Liaoning Shi ✔ ✔

China Liaoning Panjin Shi ✔ ✔

China Liaoning Haicheng Shi ✔ ✔

China Liaoning Gaizhou Shi ✔ ✔

China Liaoning Fushun Shi ✔ ✔

China Liaoning Anshan Shi ✔ ✔

Results

Project Development Objective Indicators Public Disclosure Copy

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Indicator Name Core Unit of Measure Baseline Current End Target Wastewater Utility Cost Recovery Ratio for 4 Text Value Yingkou 1.0 Panjin 0.6 Yingkou 0.99; Panjin 0.88; Yingkou 1.0; Panjin 1.0; cities Fushun 0.5 Gaizhou 0.0 Gaizhou 1.0 Fushun 1.0; Gaizhou 1.0 Date 31-Dec-2006 11-Jun-2014 31-Dec-2014 Comments Revenue of the ww utilities is municipal government budget allocations. The utilities are not financially autonomous. Fushun data will be collected in the next mission. Water Supply Utility Cost Recovery Ratio for 5 Text Value Yingkou 0.9 Panjin 0.8 Yingkou 0.77; Panjin 0.98; Yingkou 1.0; Panjin 1.0;

Public Disclosure Copy cities Anshan 1.0 Haicheng 0.8 Anshan 0.84; Haicheng 0.85; Anshan 1.0; Haicheng 1.0 Xingcheng 0.9 Xingcheng 0.79; Fushun 0.88 Xingcheng 1.0; Fushun 1.0 Date 31-Dec-2006 11-Jun-2014 31-Dec-2014 Comments Based on financial data either in 2nd quarter or 3rd quarter of 2013. Solid Waste Disposed in Landfill (tons/day) in 3 Text Value Yingkou ETZ 0 Panjin 0 Panjin 550; Fushun 1150 Panjin 450 Fushun 600 cities Fushun 0 Date 31-Dec-2006 11-Jun-2014 31-Dec-2014 Comments Fushun exceeded target. Panjin’s landfill was financed Panjin landfill was constructed with alternative funds so it will by BOT arrangement (NBF); be dropped; Yingkou is Yingkou ETZ is dropping out. dropping its SWM component. Direct project beneficiaries Number Value 0.00 2900000.00 5100000.00 Date 31-Dec-2006 11-Jun-2014 31-Dec-2014 Comments The total urban population in target cities (in the PAD). Female beneficiaries Percentage Value 0.00 46.10 50.00 Sub Type Supplemental

Global Environmental Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target New Wastewater Treatment Plant BOD Text Value 0 15643 5750 removal (tons/year) in 4 cities Date 31-Dec-2006 11-Jun-2014 31-Dec-2014 Comments Exceeding the target. Target was revised in the Public Disclosure Copy April 2014 restructuring.

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New wastewater treatment plant total nitrogen Tones/year Value 0.00 3596.00 1100.00 (TN) removal (ton/year) in 4 cities Date 31-Dec-2006 11-Jun-2014 31-Dec-2014 Comments Exceeding the target. Target was revised in the April 2014 restructuring. New wastewater treatment plant total Tones/year Value 0.00 532.00 210.00 phosphorus (TP) removal (ton/year) in 4 cities Date 31-Dec-2006 11-Jun-2014 31-Dec-2014 Comments Exceeding the target.

Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Public Disclosure Copy WWTP Capacity (m3/day) Text Value 450000 700000 650000 Date 31-Dec-2006 11-Jun-2014 31-Dec-2014 Comments Panjin WWTP capacity was increased by 50,000m3/d. Exceeding the target. (Previous one shows the additional capacity installed) Total new or rehabilitated drainage pipelines Text Value 0 130 145 (km) Date 31-Dec-2006 11-Jun-2014 31-Dec-2014 Comments Work is still ongoing. Number of new or rehabilitated pipelines for Kilometers Value 0.00 5875.00 440.00 water supply Date 31-Dec-2006 11-Jun-2014 31-Dec-2014 Comments Exceeding the target. Target was revised in the April 2014 restructuring. Number of Water Meters installed (each) Text Value 0 82568 145000 Date 31-Dec-2006 11-Jun-2014 31-Dec-2014 Comments Work is still ongoing but Target was revised in the behind schedule. April 2014 restructuring. Industrial and municipal waste disposal Metric ton Value 0.00 2000.00 1050.00 capacity created under the project Date 31-Dec-2006 11-Jun-2014 31-Dec-2014 Comments Panjin (NBF) has 600 t/d and Yingkou is dropped out of the Fushun (BF) has 1,400 t/d project’s solid waste capacity. component. Training for Public Utility Program (Man-days) Text Value 0 49 100 Date 31-Dec-2006 11-Jun-2014 31-Dec-2014

Public Disclosure Copy Comments All Public Utility Program TAs were just started recently.

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Solid Waste Master Plans completed Text Value 0 0 Fushun, Yingkou, Gaizhou and Panjin Date 31-Dec-2006 11-Jun-2014 31-Dec-2014 Comments It is in progress. Solid Waste and Wastewater Master Plans Text Value 0 0 Panjin and Gaizhou Completed Date 31-Dec-2006 11-Jun-2014 31-Dec-2014 Comments It is in progress. Number of water utilities that the project is Number Value 0.00 6.00 6.00 supporting Date 31-Dec-2006 06-Nov-2013 31-Dec-2014 Comments No change. Public Disclosure Copy

Data on Financial Performance (as of 06-Jun-2014)

Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P092618 IBRD-48640 Effective 26-Jun-2007 19-Sep-2007 04-Dec-2007 31-Dec-2013 31-Dec-2014 P090375 TF-57757 Effective 19-Sep-2007 19-Sep-2007 19-Sep-2007 31-Dec-2013 31-Dec-2014

Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P092618 IBRD-48640 Effective USD 173.00 173.00 0.00 110.23 62.77 64.00 P090375 TF-57757 Effective USD 173.00 5.00 0.00 1.68 3.32 34.00

Disbursement Graph Public Disclosure Copy

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Key Decisions Regarding Implementation The project was restructured in April 2014, to reflect changes in scope, cost and financing plan. The

Restructuring History Level 2 CD Decision on 30-Dec-2013, Level 2 CD Decision on 04-Apr-2014

Related Projects P090375-China-GEF-Liaoning Public Disclosure Copy

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