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JIANGXI POYANG LAKE BASIN and ECOLOGICAL ECONOMIC ZONE SMALL TOWN DEVELOPMENT PROJECT Public Disclosure Authorized February 7, 2013

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JIANGXI POYANG LAKE BASIN and ECOLOGICAL ECONOMIC ZONE SMALL TOWN DEVELOPMENT PROJECT Public Disclosure Authorized February 7, 2013 Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 73408-CN INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN Public Disclosure Authorized IN THE AMOUNT OF US$150 MILLION TO THE PEOPLE'S REPUBLIC OF CHINA FOR A JIANGXI POYANG LAKE BASIN AND ECOLOGICAL ECONOMIC ZONE SMALL TOWN DEVELOPMENT PROJECT Public Disclosure Authorized February 7, 2013 China and Mongolia Sustainable Development Unit Sustainable Development Department East Asia and Pacific Region Public Disclosure Authorized This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank's policy on Access to Information. CURRENCY EQUIVALENTS (Exchange Rate Effective October 16, 2012) Currency Unit = Renminbi (RMB) RMBl.00 = US$0.1587 US$1.00 = RMB6.30 FISCAL YEAR July 1 - June 30 ABBREVIATIONS AND ACRONYMS CEA Cost-Effectiveness Approach CPLG County/City Project Leading Group CPMO County/City Project Management Office CPS Country Partnership Strategy CQS Consultant's Qualification Selection DA Designated Account DIs Design Institutes EA Environmental Assessment ECOP Environmental Code of Practice EIA Environmental Impact Assessment EMP Environmental Management Plan EPB Environmental Protection Bureau EPD Environmental Protection Department ERR Economic Rate of Return ET Expert Team FD Finance Department FM Financial Management FMM Financial Management Manual FPO Flood Protection Office GDP Gross Domestic Product GoC Government of China GoJ Government of Jiangxi ha Hectare IBRD International Bank for Reconstruction ICB International Competitive Bidding IFR Interim Financial Report JPAO Jiangxi Provincial Audit Office JPFD Jiangxi Provincial Financial Department M&E Monitoring and Evaluation MIS Management Information System MES Monitoring and Evaluation System NCB National Competitive Bidding NDRC National Development and Reform Commission O&M Operation and Maintenance ORAF Operational Risk Assessment Framework PAD Project Appraisal Document PAO Provincial Audit Office PDO Project Development Objective PDRC Provincial Development and Reform Commission PFD Provincial Finance Department PLEEP Poyang Lake Ecological Economic Plan PLEEDZ Poyang Lake Ecological Economic Development Zone PLG Project Leading Group PPLG Provincial Project Leading Group PM Procurement Manual PMO Project Management Office PP Procurement Plan PPMO Provincial Project Management Office PRC People's Republic of China QBS Quality-Based Selection QCBS Quality-and-Cost-Based Selection RAP Resettlement Action Plan RMB Renminbi SA Social Assessment SIL Sectoral Investment Loan TA Technical Assistance TD Transport Department TTL Task Team Leader VSL Variable Spread Loan WRD Water Resources Department Regional Vice President: Axel van Trotsenburg, EAPVP Country Director: Klaus Rohland, EACCF Sector Director: John Roome, EASSD Sector Manager: Mark R. Lundell, EASCS Task Team Leader: Ximing Zhang, EASCS CHINA Jiangxi Poyang Lake Basin and Ecological Economic Zone Small Town Development Project TABLE OF CONTENTS Page I. STRATEGIC CONTEXT ............................................... 1 A. Country Context ........................ 1........................ B. Sectoral and Institutional Context................1..................... C. Higher Level Objectives to which the Project Contributes ................... 2 II. PROJECT DEVELOPMENT OBJECTIVES ........................................... 3 A. Project Development Objective ............................... 33..... B. Project Beneficiaries ..................................... 3.......3 C. PDO Level Results Indicators......................3.... ............ 3 III. PROJECT DESCRIPTION .........................................................3 A. Project Description and Components....................3... ........... 3 B. Project Financing ....................................... 44....... C. Lessons Learned and Reflected in the Project Design........................ 5 IV. IMPLEMENTATION .............................................................6 A. Institutional and Implementation Arrangement ............. 6.........6 B. Results Monitoring and Evaluation .............................. 77.... C. Sustainability..............................7..... .............. 7 V. KEY RISKS AND MITIGATION MEASURES ................ ................. 8 A. Risk Ratings Summary Table ....................................... 8 B. Overall Risk Rating Explanation ............................... 88.... VI. APPRAISAL SUMMARY ..........................................................9 A. Economic and Financial Analysis .............................. 99.... B. Technical .................................................... 10 C. Financial Management.................11.... .................. 11 D. Procurement ........................................... ........... 11 E. Social (including Safeguards) ........... 1...........................1 F. Environment (including Safeguards) ................................. 12 Annex 1: Results Framework and Monitoring .................................................................... 15 Annex 2: Detailed Project Description.................................................................................. 18 Annex 3: Implementation Arrangements ............................................................................. 25 Annex 4: Operational Risk Assessment Framework (ORAF).............................................35 Annex 5: Implementation Support Plan ................................................................................ 39 Annex 6: Project Location Map (IBRD 39643) .................................................................... 42 PAD DATA SHEET China CN-JiangxiPoyang Lake Basin and EcologicalEconomic Zone Small Town Development Project (P126856) PROJECT APPRAISAL DOCUMENT EAST ASIA AND PACIFIC EASCS Basic Information Project ID Lending Instrument EA Category Team Leader P126856 Specific Investment B - Partial Assessment Ximing Zhang Loan Project Implementation Start Date Project Implementation End Date 21-Mar-2013 30-Jun-2018 Expected Effectiveness Date Expected Closing Date 21-Jun-2013 31-Dec-2018 Joint IFC No Sector Manager Sector Director Country Director Regional Vice President Mark R. Lundell John A. Roome Klaus Rohland Axel van Trotsenburg Borrower: Ministry of Finance Responsible Agency: Jiangxi Provincial Development and Reform Committee Contact: Li Jinhua Title: Deputy PPMO Director Telephone 079188858928 Email: [email protected] No.: Project Financing Data(US$M) [X] Loan [ ] Grant [ ] Other ] Credit [ ] Guarantee For Loans/Credits/Others Total Project Cost (US$M): 325.89 Total Bank Financing (US$M): 150.00 Financing Source Amount(US$M) Borrower 175.89 International Bank for Reconstruction and 150.00 Development Total 325.89 Expected Disbursements (in USD Million) Fiscal 2013 2014 2015 2016 2017 2018 2019 0000 0000 Year Annual 0.00 15.00 30.00 40.00 40.00 20.00 5.00 0.00 0.00 Cumulati 0.00 15.00 45.00 85.00 125.00 145.00 150.00 0.00 0.00 ve Project Development Objective(s) The development objective of the project will be to improve key public services in participating small towns of Jiangxi Province through improvements to prioritized infrastructure. Components Component Name Cost (USD Millions) Component A: Transport Infrastructure Improvement 189.55 Component B: Water Resources Management Infrastructure 86.26 Component C: Project Management and Capacity Building 24.93 Compliance Policy Does the project depart from the CAS in content or in other significant Yes [ ] No [X] respects? Does the project require any waivers of Bank policies? Yes [ ] No [X] Have these been approved by Bank management? Yes [ ] No [X] Is approval for any policy waiver sought from the Board? Yes [ ] No [X] Does the project meet the Regional criteria for readiness for implementation? Yes [X] No [ ] Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 X Natural Habitats OP/BP 4.04 X Forests OP/BP 4.36 X Pest Management OP 4.09 X Physical Cultural Resources OP/BP 4.11 X Indigenous Peoples OP/BP 4.10 X Involuntary Resettlement OP/BP 4.12 X Safety of Dams OP/BP 4.37 X Projects on International Waterways OP/BP 7.50 X Projects in Disputed Areas OP/BP 7.60 X Legal Covenants Name Recurrent Due Date Frequency Project Implementation Plan X Yearly Description of Covenant Throughout the implementation of the Project, the Project Implementing Entity shall apply, and shall cause the Project Participants to apply, the Project Implementation Plan in a timely and efficient manner satisfactory to the Bank. Name Recurrent Due Date Frequency Project Progress Reports X Half yearly Description of Covenant The Project Implementing Entity shall monitor and evaluate the progress of the Project and prepare Project Progress Reports on the basis of indicators agreed with the Bank and set forth in the Project Implementation Plan. Each such Project Report shall cover the period of one calendar semester, and shall be furnished to the Borrower not later than 45 days after the end of the period. Name Recurrent Due Date Frequency Annual Implementation Plan X Yearly Description of Covenant The Project Implementing Entity shall (a) by July 15, 2013, furnish to the Bank, for approval, an initial work and budget plan covering the first eighteen months of Project implementation,
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