Documentof The World Bank Public Disclosure Authorized Report No. T-7285-CHA Public Disclosure Authorized

TECHNICAL ANNEX

THE PEOPLE'S REPUBLIC OF

YANGTZE FLOOD EMERGENCY REHABILITATIONPROJECT Public Disclosure Authorized

January 19, 1999 Public Disclosure Authorized Rural Development And Natural Resources Sector Unit East Asia and Pacific Region ii

CURRENNCY EQUIVALENTS (As of November 1, 1998)

Currency = Renminbi Currency unit = Yuan (Y) Y 1.00 = $0.12 $1.00 = Y 8.3

WEIGHTS AND MEASURES

Metric System

ACRONYMSAND ABBREVIATIONS

GDP - Gross Domestic Product ICB - International Competitive Bidding MOF - Ministry of Finance NAO - National Audit Office NCB - National Competitive Bidding OED - Operations Evaluation Department PLG - Project Leading Group PMO - Project Management Office PPMO - ProvincialProject ManagementOffice SOE - Statement of Expenditures UNDP - UnitedNations DevelopmentProgram

FISCALYEAR

January I - December 31

Vice President: Jean-Michel Severino, EAPVP Country Manager/Director: Yukon Huang, EACCF Sector Manager/Director: Geoffrey B. Fox, EASRD Task Team Leader/Task Manager: Lang Seng Tay, EACCF CHINA

YANGTZE FLOOD EMERGENCY REHABILITATION PROJECT

TECHNICAL ANNEX

A. BACKGROUND AND STRATEGY

CountryBackground and Flood History

1. Floods are very devastating in China and their occurrences are as old as the country's history. There are several weather systems that occur over China that can cause prolonged, widespread and intensive rainstorms over the mountain, plain and coastal areas depending on where the rainstorms are located. Frequently, several weather fronts can roll over the country or regions one after another, causing the main rivers to peak several times and overtop the river banks (or dikes), flooding vast areas and causing devastating damage. Flash floods usually occur in the hilly areas after severe rainstorms and, combined with landslides, displace and kill many people. More than half of China's flood casualties are in the hilly areas where flash floods and landslides have buried villages. In addition, the coastal areas (, Zhejiang, Fujian and Guangdong Provinces) are subject to damage caused by typhoon-related flooding and tidal surges.

2. Beside weather patterns, other factors contributing to floods are mainly man- induced. Extensive logging of natural forest in the upper catchment areas of major river systems have deforested large areas, leading to serious soil erosion, silting and aggradation of river channels in middle and lower reaches, all leading to higher flood levels and larger flood volumes. Increased water diversion for consumptive uses (i.e., Yellow River) has caused deteriorating morphology of riverbeds. The reduced flows have sharply decreased sediment transport and the carrying capacity of river channels, which increases the probability of a given flood to overtop the riverbanks. In the Yangtze and Huai River basins, large areas of lakes and low-lying areas have been reclaimed for habitation and cultivation, reducing the flood detention capacity that would help to reduce the flood levels of the main rivers.

3. Despite centuries of flood control and protection works to keep river floods within their banks, devastation still occurs almost yearly in China in one or more of its eight major river basins In this century, major flood events have occurred in 1931, 1954, 1991, 1993, 1996 and 1998, with increasing frequency and severity during the 1990s. In the 1931 flood, some 400,000 people were killed and more than 50 million people in the Yangtze and Huai River basins were seriously affected. However, the loss of life has been 2 significantlyreduced from the pre-1950periods due to improvementsmade to the main river protectionsystems and the flood warningand evacuationplans that allowtimely evacuationof people to safety,and more effectivecontrol of the spread of epidemic diseasesthat used to kill thousandsafter floods. Despite majorinvestments in the past, the flood protection standardon the major rivers is stillvery low, i.e., it is only 10-20 years recurrencelevel of protectionin the YangtzeRiver (withoutflood detention),50-60 years in the YellowRiver, 40 years in the Huai River, about 20 years in the Liao, Songhua and Zhujiangrivers.

4. With such low levelsof flood protection,areas subjectto floodinghave been on the increasesince the 1950s. Floodedareas averagedover 10 millionhectares (ha) in the 1990s,but in 1998's historicflood, the areas affectedreached over 21 millionha. Flood damageand losses have reachedan enormouslevel. In the 1990s total flood damagesand losseshave been estimated at $130 billion,17 millionhouses destroyed,and 70 millionha of farmlandaffected. Economicand sociallosses are expectedto increaseas China concentratesits economicgrowth along major rivers. Extremepopulation and land pressureshave forced millionsof people to encroachon naturalfloodplains and even betweenriver dikes. Flood detentionbasins or lakes have also been rapidlyand highly developed,reducing much of their flood detentioncapacities. Some 17 millionpeople are estimatedto live in detentionbasins and lakes in the Yangtze, Yellowand Huai River basinsand lakes. They are veryvulnerable to any minorflood and would suffer devastatingdamage in any majorflood.

5. The Floods of 1998.Persistent torrential rains in the summerof 1998 caused enormousflooding in the YangtzeRiver Basin and northeastChina. The floods have affectedone-fifth of China's populationin 29 provinces,over 3,600 people have died, and about 5 millionha of crops were destroyed. There has been severedamage to schools, hospitals,power and water facilities,roads, bridges,factories and irrigationsystems. Economiclosses are over $36 billion. The lossesand hardshipsof the people would have been much worse without a massiveflood-fighting operation mounted by the central government,the provinces,all levelsof local government,and the armed services.

6. Yangtze River Flood. The Yangtzeis China's largestriver, 6,300 kilometerslong, with a basin covering 1.8 millionsquare kilometers(km 2). It holdshalf a billionpeople or 45 percent of China's total population,produces about 42 percentof its gross domestic product (GDP), and consumesjust over 43 percent of the country's total investmentin fixed assets. Over half of China's industrialoutput is now generatedwithin the basin. Of the country's estimated400 millionurban dwellers, 180 millionlive in the basin's 250 citiesand create almost a quarter of China's total GDP.

7. A combinationof eventscaused the vast areas of inundationin the Yangtzebasin. First, the extreme rainfallbegan in June and continuedinto late August. Second,water levelsin the Yangtzesurpassed record levels. Third, tributariesin the middlereach also carried record flows for long periods. Fourth, rainfallin areas behindthe Yangtze embankmentswas unprecedented--insome placesestimated to have a 300-yearreturn period. 3

8. In the Yangtze's middlereach, widespreadunprecedented rainstorms occurred during June and July and causedflash floods in the provincesof , and . Rivers and lakeswere rapidlyfilled. The resultanttorrential floods in the hillyregions, coupledwith mudslides,caused devastating damage to villagesalong the rivers, roads and bridges, and killedmany who were trapped by the flashfloods. Flooding in the lake and poldered areas was further aggravatedby the highriver stage in the YangtzeRiver (in all, eight flood peak waves occurred)during August and early September. Consequently,vast areas behindthe YangtzeRiver dikes were inundatedfor almostthree monthsdue to back flow of Yangtzewater. Somepoldered areas were deliberatelybreached for flood release and detentionto reduce criticalflood levelsthreatening the key city of . Floodwaterlevels and flows recordedin the Yangtzeexceeded the 1954 levels,the highest of moderntimes. High water levelspersisted for more than 60 days, comparedto less than 30 days in the high floodsof 1954 and 1931. Table 1 comparesthe 1998 flood with the past major flood events. Despitethese unprecedentedconditions, there was onlyone breach in the Yangtze River dikes. This breach, which occurredon August 7, 1998 at Jiujiangin JiangxiProvince, was closedin a few days through heroic efforts that will become a legendin China's flood-fightinghistory.

9. Commendableefforts were organizedby the provincialgovernment to containthe YangtzeRiver flood from breachingthe main dikes. Millionsof people were affectedby the flood and evacuatedto safetyon high ground and on top of the dikes. The flood has made millionshomeless, destroyed or damaged manyinfrastructure and social services facilities. There is an urgent need for aftermathflood recoveryworks to restore and rehabilitatethe damaged and destroyedpublic infrastructureand social servicesso as to restore rapidlythe economicproduction systems.

10. Flood Damage. Due to widespreadflooding of great depths and duration, damagehas been devastating,affecting practically all the sectorsin the three provinces. The worst areas were the breachedpoldered areas behindthe Yangtzemain dikes and the areas fringingthe lakes, whichwere floodedby the back flow of the Yangtze. Preliminary flood damagesassessed are summarizedin Table 2. Total economiclosses estimated for Hubei,Hunan and Jiangxiare $6.6, $3.96 and $4.63 billion,respectively. Final damages and economiclosses are expectedto be much higherbecause some of the polderedareas are still submergedas the breachedpolders have not yet been repaired,and large quantities of materialsacquired by the the governmentfor flood-fightinghave not yet been fully costed.

11. Flood Relief. Duringthe floodsthe three provincialgovernments organized the evacuationof millionsof people,especially those stayingin the breachedpoldered areas, to higherground (manyon river dikes) and housed them in temporaryshelters. Adequate relief(rations, water and warm clothing)and health serviceswere providedand maintained throughoutthe floods with aid and donationsin cash and kindfrom in-countryand overseasreceived by the Ministryof CivilAffairs. Flood reliefand aid are also being providedby the Federationof InternationalRed Cross and Red Crescent,United Nations 4

DisasterManagement Team (FAO,ILO, UNESCO,UNFPA, UNHCR, UNICEF, UNIDO, WFP, WHO) under UNDP, and other internationalcommunities in China.

12. RecoveryPlan. Recognizingthe 1998 devastatingflood in YangtzeRiver and the possibility of greater damage and losses incurred should the main Yangtze River dikes be overtopped or breached in future floods, the central government has issued the following policy directives to the nation, especially to the most severely flooded provinces of Hubei, Hunan and Jiangxi:

(a) stop logging in the natural forest areas in the upper catchment, and plant trees for reforestation; (b) restore cultivated land on slopes >25 degrees to forest in the upper catchment areas; (c) remove polders (in flood detention and lake basins) for flood diversion and detention; (d) return reclamationareas in flood channelsto facilitatefloodwater evacuation; (e) use aid (cash and materials)for flood recoveryworks to be undertakenby flood victims; (f) relocateand resettle flood-affectedpeople to new villagesand townshipsless vulnerableto floods; (g) strengthenriver dikes and flood-controllingreservoirs; and (h) dredge siltedriver channels.

13. Logging in upper catchment areas ( Province for the Yangtze River) has been officially banned since September 1, 1998. This will have a long-term positive impact on soil and water conservation and reduce the incidence of flooding downstream. The three provincial governments are planning massive programs to relocate and resettle about 1.5 million people (Hubei 820,000, Hunan 25,000, Jiangxi 46,000) over the next three years in new villages and townships to be constructed on higher ground less vulnerable to floods. Poldered areas will be consolidated and some secondary polders would be abandoned and returned to lakes, and others without people residing in them would be used for flood release and detention. Reconstruction work programs are being carried out by flood-affected people in the three provinces in exchange for relief in cash and kind. The central government, in collaboration with the three provincial governments, is planning major flood control and protection works on the Yangtze River that would include strengthening the main river dikes, raising the flood protection standards, constructing flood control works on some of the main tributaries, and improving the flood protection management of key lake basins (Dongting, Poyang, Honghu and Sihu lakes, etc.). Bank financing of $300 million has been proposed by the Government for the FY2000 lending program. 5

B. BANK GROUP RESPONSE AND STRATEGY

14. Rationale for Bank Group Involvement. Bank Group involvement in the proposed project will accelerate the restoration of economic and social activities through the rebuilding of water supply works, roads, schools, and health centers. The project is consistent with the Bank Group's Country Assistance Strategy for China (Report No. 1632 1-CHA) presented to the Board on March 18, 1997 and the CAS Progress Report (Report No. R98-107) of May 28, 1998, focusing on poverty alleviation and the reconstruction of essential infrastructure. The next CAS, now under preparation, will also focus on the water sector and the need for the Bank Group's short- and long-term strategy and involvement in view of the increasing frequency of floods and economic losses suffered in the county.

15. Responding to a request for assistance from the Ministry of Finance (MOF), a Bank Group reconnaissance mission visited the affected areas in Hubei, Hunan and Jiangxi Provinces from September 16 to 22, 1998. This was followed by an appraisal mission from November 11 to 24, 1998.

16. China has previously received assistance from the Bank Group after major natural disasters. Recovery and salvage operations after a major forest fire in northeastern China were successfully supported under the Da Xing An Ling Forest Fire Rehabilitation Program (FY88, $56.9 million), and earthquake reconstruction was supported under (a) the China Earthquake Reconstruction Project (FY90, $30 million equivalent); (b) the Inner Mongolia and Earthquake Reconstruction Program (FY97, $65 million equivalent); and (c) the Hebei Earthquake Rehabilitation Project (FY98, $28.4 million equivalent)

17. Lessons Learned from Previous Bank Group Assistance. The proposed project is modeled on the North China Earthquake Project, which was adopted successfully in the Inner Mongolia and Yunnan Earthquake Reconstruction Program. In the North China Earthquake Project the relevant lessons highlighted in the Bank Group's Operations Evaluation Department (OED) Performance Audit Report dated June 27, 1996, included: (a) the importance of strong local leadership and local project management offices; (b) attention to the Borrower's views; (c) minimizationof bottlenecks in the project's cash flow to accelerate urgent reconstruction activities; and (d) the benefits of using "fast track" project processing in the Bank Group. Some of these lessons learned have been applied in the design of this project.

C. PROJECT DESCRIPTION Project Preparation

18. The proposed Loan and Credit have been prepared as an emergency operation in accordance with the provision of OP/BP/GP 8.50, on the basis of the preliminary damage 6 assessmentcarried out from September16 to 22 and an appraisalof the recovery proposalsNovember 11 to 24, 1998in the three provinces. Subprojectswere selected accordingto the followingcriteria: (a) facilitiesmust be flood damagedor destroyed;(b) urgentlyneeded by the community;(c) priorityfor townshipsand polderedareas; (d) cost effectivenessfor restorationor reconstruction;and (e) capableof resistingsimilar floods in future upon completion,

Project Objectivesand Design

19. The objectiveof the proposed projectis to rebuildsocial and economic infrastructuredamaged by devastatingfloods in Hubei,Hunan and Jiangxiprovinces, therebyrestoring economic and socialactivities. In the project design,priorities have been givento reconstructionof water supplyand healthfacilities to prevent spread of diseases afterfloods, and reconstructionof roads and bridgesto restore key accessto the flooded areas so as to regenerateeconomic activities. Designswill also be based on current nationaland provincialstandards.

Project Components

20. The project is located in 54 counties of Hubei (27), Hunan (15) and Jiangxi (12) provinces that were most severely affected by floods from June to September 1998. The main proposed components are:

(a) Roads (Total $49.4 million, World Bank Group--$32.5 million)

(i) Hubei Province: Ten subprojectshave been proposed for restorationand reconstruction,covering a total of about 130 km and 2 bridgesin 12 counties and cities. These roads would restore a traffic load of about 12.5 millionton- km and traffic of 27,800 vehicles/day.

(ii) Hunan Province: A total of about 25 county roads totaling 465 km including 3 bridgeswould be restored and reconstructed,catering to about 47,600 vehicles/day.

(iii) Jiangxi Province: 49 roads in 12 counties totaling 351 km, including 926 bridges and culverts.Total trafficvolume to be restored is estimatedat 12,600 vehicles/day.

(b) Water Supply (Total $30.2 million, WB $18.3 million)

(i) Hubei Province:Seven countyand city water supplyplants would be restored or reconstructed,serving a total populationof about 547,000. 7

(ii) Hunan Province: A total of 18 county and township water supply plants would be restored and reconstructed. Some 1.27 million people would be provided with clean and safe water.

(iii) Jiangxi Province: Thirty water supply plants in 11 counties are to be restored and reconstructed to supply a total of 201,900 cubic meters/day of safe and clean water to about 650,000 people in 37 townships and 148 villages.

(c) Schools (Total $18.8 million, WB $12.4 million)

(i) Hubei Province: A total of 38 secondary and primary schools would be restored or reconstructed, covering a total built-up floor area of about 43,600 square meters (mi2 ), and serving a total student population of about 31,000.

(ii) Hunan Province: A total 28 secondary and primary schools damaged would restored or reconstructed to serve a total student population of about 62,000.

(iii) Jiangxi Province: A total of 133 secondary and primary schools are to be restored and reconstructed, covering a total built-up floor area of about 100,720 M2 . These schools will serve a total student population of about 129,500.

(d) Health Centers and Clinics (Total $16.1 million, WB $10.7 million)

(i) Hubei Province: A total of 32 hospitals, health centers and clinics would be restored or reconstructed, covering a total built-up floor area of about 63,200 in 2. The restored facilities would serve about 1.12 million people.

(ii) Hunan Province: A total of 18 hospitals and health centers would be restored or reconstructed to provide health services to about 1.3 million people.

(iii) Jiangxi Province: A total of 93 hospitals, health centers and clinics will restored and reconstructed in 12 counties, covering a total built-up floor area of about 70,500 M2 . This would restore health services to about 1.65 million people, mostly in the flood-damaged areas.

(e) Irrigation and Drainage (Total $7.5 million, WB $5.0 million)

(i) Hubei Province: Irrigation and drainage facilities will be restored in 18 irrigation areas, covering a total area of 44,200 ha and benefiting about 446,000 farmers.

(f) Studies and Technical Assistance (Total $1.3 million WB $0.8 million) 8

21. A provision of $400,000, $200,000 and $200,000 will be allocated to Hubei, Hunan and Jiangxi Provinces, respectively, for the following technical studies to be carried out during 1999-2000 to strengthen the flood control and management capability of each province:

(a) Hubei Province: The study will focus on development of a decision support system to evaluate and optimize options for flood management in relation to flood protection levels of the Yangtze dikes and flood diversion into flood detention areas.

(b) Hunan Province: The study would focus on developing a computerized model for flood forecasting, simulation and dispatch of the Zhi River system, which is one of four major rivers flowing into Dongting Lake.

(c) Jiangxi Province: The study would focus on developing a computerized model for flood forecasting, simulation and dispatch for the Gan and the Xiu River systems which are two of the major rivers flowing into the Poyang Lake.

22. Details of subprojects for each component in each province are summarized in Tables 3A and 3B.

D. Project Cost and Financing Plan

23. The project cost is estimated at Y 1,100 million (US$132.5 million equivalent), including a physical contingency allowance of 5 percent but no price contingencies in view of the short disbursement period. The Bank Group will provide a Loan/Credit of US$80 million, which will meet 60 percent of the total cost. The remaining $52.5 million will be provided by the Government. The project costs and financing are summarized in Table 3.

D. STUDIES AND TECHNICAL ASSISTANCE

24. The Bank Group would provide $400,000, $200,000, and $200,000 to Hubei, Hunan and Jiangxi, respectively, to finance technical studies and assistance to review existing or develop new flood control and protection management systems within each province. The technical studies and assistance would cover the following:

(a) Hubei. Hubei Province has a total about 1,065 km of Yangtze River dikes and thousands of km of secondary dikes protecting the various major lakes (Honghu, Sihu, etc.) and polders. The study would focus on the most critical sections of the Yangtze River dikes at Jinzhou, Jian Li and Honghu river systems and flood detention areas to optimize the overall flood control and management techniques. 9

(b) Hunan The study would focus on developing a flood forecasting, simulation and dispatch system for the Zhi River system, which is a representative river system for the four major rivers flowing into Dongting Lake. The computerized simulation model would then be modified and adapted for the other three river systems. The river flood simulation models would be integrated with the overall flood management model currently being studied by a Canadian consulting firm. Some of the existing hydrological stations would also be upgraded with telemetric equipment to monitor and report real-time events.

(c) Jiangxi. The study would focus on developing flood forecasting, simulation and dispatch systems for the Gan and Xiu Rivers, two of the five major river systems flowing into Poyang Lake before discharging into the Yangtze River. The Gan River has about 51.5 percent of Poyang Lake catchment area of 162,200 km2. Xiu River has the largest earth-filled dam in Asia with a embankment height of 165 m and reservoir capacity of about 7 billion cubic meters. The flood simulation and dispatch models developed would enhance the flood management of the central Poyang Lake region, which is a highly developed agricultural base with a total population of about 10.2 million people.

E. INSTITUTIONAL ARRANGEMENTS AND PROJECT IMPLEMENTATION

Project Organization and Management

25. Project Leading Groups (PLGs) would be established at the province, prefecture, city, and county levels to organize and direct implementationof project works. The members of these PLGs would include directors or vice directors of Finance, Planning, Construction Commission, Water Supply, Transportation, Health, and Education Bureaus. The main functions of the PLGs are to coordinate the different government agencies involved, to approve major policies related to flood reconstruction activities, and to make sure that counterpart funds for the project are available in adequate amounts and in a timely manner. Under each PLG, a Project Management Office (PMO) would be set up to coordinate project preparation, supervise project implementation, review and verify claims for reimbursement, and consolidate such claims and submit them to the Provincial Finance Bureau for payment from the Special Account. The Provincial PMO (PPMO) will prepare progress reports in a format agreed with the Bank Group and arrange for accounts and audits. The organizational structure for project implementation and management is shown in Figure 1.

ImplementationArrangements

26. The proposed reconstruction works would focus on top priority works in the most severely affected counties in each of the three provinces. This is to ensure quick 10 results and maximum impact, and to save time and cost in project supervision and management. As most of the works would be of a small scale and scattered, it would be most efficient carried out by the local contractors or construction teams who can mobilize the required resources very quickly. The specialized bureaus of the local governments (prefecture, city and county) will carry out planning and design for the works. The PMOs would be responsible for project implementation, with assistance from the local government technical departments in supervising construction works awarded on basis of competitive bids (priced quotations and national competitive bidding). The project is expected to be completed within three years (1999-2001), with most of the works substantially completed during 1999-2000.

Procurement Arrangements

27. Given the emergency nature of the project and the small and scattered works, international competitive bidding (ICB) would not be feasible. Therefore, the following procedures are proposed; these are in accordance with the "Guidelines for Procurement under IBRD Loans and IDA Credits of January 1995," revised January and August 1996, September 1997, and January 1999:

(a) Civil Works and Buildings: Those essential and emergency works identified to save lives and property would be procured prior to September 1, 1999 through lump-sum or unit price contracts (up to $1 million per contract and aggregate value of $69.6 million) on the basis of quotations obtained from at least three qualified domestic contractors in response to a written invitation. These procedures were adopted in the China Hebei Earthquake Rehabilitation Project (FY98) and found satisfactory. The remaining small works not procured prior to September 1, 1999 would also be procured through price quotation subject to a threshold of not more than $300,000 per contract and an aggregate value of $11.9 million. For other works with values ranging from $300,000 to $5 million per contract, national competitive bidding (NCB) procedures would be followed using Chinese Model Bidding Documents for Procurement of Works that have been developed by MOF for Bank Group-financed projects in China. The aggregate value for these 30 NCB contracts is estimated at $32.6 million

(b) Goods: The required construction materials will be included in the unit prices for the relevant work items in works contracts. Small quantities of pumps, motors, transformers and pipes, mostly for water supply system, up to $100,000 per contract and aggregate value of $3.8 million, would be procured on the basis of national shopping quotations from at least three established suppliers. Goods costing more than $100,000 but less than $250,000 per contract with an estimated aggregate value of $4.2 million would be procured through NCB procedures. Goods estimated to cost $250,000 or more would be procured by ICB procedures; however, none is expected. 11

(c) Studies may require the services of specialists on short-term assignments. They will be employed in accordance with the "World Bank's Guidelines for the Use of Consultants," dated January 1997, revised September 1997, and January 1999. Consultants' service contracts with a value of more than $100,000 would use Quality-and Cost-Based Selection (QCBS), less than $100,000 by Consultants' Qualifications (QS) and less than $50,000 by Individual selection. Consultants contracts over $100,000 for firms, or $50,000 for individuals, would be subject to prior review by the Bank Group. The terms of reference for engaging consultants with would be subject to prior review by the Bank Group.

(d) Prior Review of Bid Documents. NCB bid documents for works with value in excess of $2 million per contract and greater than $200,000 per contract for goods would be subject to prior review by the Bank Group. About 10 out of 30 NCB work contracts (43% of total value) and 5 out of 15 NCB goods contracts (30% of total value) would be subject to Bank's prior review.

The procurement arrangements are summarized in the following table:

Expenditure Contract Value Procurement Contracts Subject Category Threshold Methods To Prior review (S'000) (S'000)

1. Works >5,000 ICB All >300to <5,000 NCB All >2,000 <1,000for emergency Quotation None worksinitiated prior (smallworks) None to September1, 1999 <300for smallworks Quotation initiatedafter (smallworks) September 1, 1999 2. Goods >250 ICB All <100 to <250 NCB All >200 <100 Shopping None 3. Consultants'services >100 QCBS All <100 CQ None Individual Individual >50

Note: All contracts not subjectto Bank Groupprior reviewvwould be subjectto Bank Groupex-post review. ICB:International Competitive Bidding NCB:National CompetitiveBidding Shopping: National shoppingfor goodsestimated to cost less than $100,000per contract CQ: Consultants' Qualifications QCBS: Quality-andCost-based Selection 12

FinancialArrangements

28. MOF will make the proceeds of the Loan available to Hubei, Hunan and Jiangxi e at the Bank's standard interest rate for LIBOR-based US dollar single currency loan, with a maturity of 20 years, including 5 years of grace, and the Credit for 17 years including 5 years of grace, at zero interest rate, and a service charge of 0.75 percent per year on amounts withdrawn from the credit, and a commitment charge of 0.5 percent per year on the principal amount of the Loan and Credit not withdrawn. Each province will relend to the city, prefecture, county government and project entities at the same terms and conditions of on lending by MOF to the three provinces except the repayment period and grace period for the Loan and the Credit would be reduced by one year to provide adequate time for the provinces to recover, process and prepare repayments to MOF.

29. Counterpart funds would come from central, provincial and local government contributions, private contribution funds received locally and overseas, self-raised funds by project beneficiaries, and borrowing from local banks. Adequate and timely counterpart funds have been assured by the three province for project implementation. Table 7 shows the financing arrangements by the three provinces.

Disbursements

30. Disbursements would be made for eligible expenditures against statements of expenditures (SOEs) using procedures satisfactory to the Bank Group. Retroactive financing not to exceed $16 million, equivalent to 20 percent of the Loan/Credit amount, is recommended for eligible expenditures incurred from September 16, 1998 until signing of the Loan/Credit Agreements. A Special Account would be established in each province with an authorized allocation of $5 million. Audits of the project accounts would be performed annually, with copies of the audit reports to be provided to the Bank Group by June 30 of each year. The project is expected to be completed by December 31, 2001, and the closing date would be June 30, 2002. The Loan/Credit wo'uld finance 65 percent of expenditures for civil works and building, 100/100/75 percent for goods and 100 percent for studies and technical assistance. The proceeds are expected to be disbursed as summarized in Table 9.

Accountsand Audits

31. Provincial finance bureaus of the three provinces covered by the project have had extensive prior experience with Bank Group-financed projects and will manage the special accounts of the project. The provincial, city/prefecture and county PMOs, with their respective provincial financial bureaus' close guidance and assistance, will maintain by competent and experience staff separate accounts and records for the project and for all SOE-related expenditures based on "Temporary Regulations on Financial and Accounting 13

Managementfor Projects Financedby the WorldBank" issuedby MOF. A comprehensive financial/accountingmanual covering all major operationareas with proper controls has been prepared by each provinceto ensure clear allocationof financialauthority, segregationand delegationof duties,and preparationof timelyand accuratefinancial statements. Audit arrangementswill be similarto other Bank Group-financedprojects and will be audited by the NationalAudit office(NAO) or its branchesin the three provinces.

Reporting and Monitoring

32. The format, content and reporting frequency of a set of financial statements have been discussed and agreed with the three provinces. In addition, semiannual progress reports will be submitted to the Bank Group by the respective PPMOs. The project financial/progress statements, together with contract awards and disbursement documents will form the basis for routine monitoring of physical and financial progress. Table 4 shows the project physical and performance indicators to be monitored semiannually by each province. The results are to be furnished to the Bank Group not later than July 31 and January 31 for the first half and the second half of the year respectively for review. Each province will carry out a Mid-Term Review of the project implementation at the end of 1999, and thereafter implement any changes to the work programs as reviewed and agreed by the Bank.

F. FINANCIAL AND ECONOMIC JUSTIFICATION

33. As an emergency recovery loan to restore existing basic infrastructure and social services damaged and destroyed by floods, financial and economic analyses have been considered to be unnecessary and were not carried out. Instead, the benefits and social impacts have been assessed. These are summarized in the Table 5. Some 84 county roads with a total length of 945 km would be restored to provide vital access for economic activities. A total of 55 county and township damaged water supply plants would be restored or reconstructed to provide clean and safe water to about 2.5 million people. The proposed 199 secondary and primary schools to be restored would accommodate 222,000 students who are now temporarily dispersed to neighboring schools or placed in makeshift schools. Importantly, the 143 hospitals, health centers and clinics to be restored would serve a total of about 4.0 million people/year and their early completion would help to control the spread of gastrointestinal diseases in the flooded areas. Some 44,200 ha of irrigated land in 18 areas would have their irrigation facilities restored for early production by some 446,000 farmers. The damage is so widespread and severe that it is not possible for the limited Bank Group loan/credit to cover all the flooded areas in each province. However, for the selected project counties and townships, the subprojects to be implemented would restore significant social services and facilities, thereby helping to regenerate economic production and activities. 14

G. ACTION PLAN

35. The following have been agreed with the three provinces: (a) project leading groups and project management offices at the provincial, prefecture and county level would be maintained and provided with adequate resources; (b) each province would make available the proceeds of the loan and credit relent by MOF to project entities on terms and conditions acceptable to the Bank Group; (c) each province would monitor and report semiannually the physical and financial progress of the project to the Bank Group; (d) each province will carry out a Mid-Term Review of the project implementation progress at the end of 1999, and any changes reviewed and agreed with the Bank would be implemented by the respective province in 2000 and thereafter; (e) Hubei and Hunan would submit technical feasibility reports and preliminary designs for major water supply and road subprojects costing more than $10 million each to the Bank Group for prior review and approval before implementation; (f) each province will apply and use the provision of the agreed joint policy framework in resolving any involuntary resettlement, land acquisition and compensation encountered during project implementation; and (g) each province would implement the project according to the agreed Project Implementation Plan (PIP).

Attachments: Map IBRD No. 30036 Table 1 Flood data Chart 1 Historical Maximum Flood Levels Table 2 (Sheet 1 & 2) Summary of Flood Damages Table 3 Investment Cost by Sector and Province Table 4a Physical and Performance Monitoring (Hubei Province) Table 4b Physical and Performance Monitoring (Hunan Province) Table 4c Physical and Performance Monitoring (Jiangxi Province) Table 5 Project Benefits Table 6 Project Counties and Subprojects Table 7 Financing Plan Table 8 Subprojects for NCB Work Procurement Table 9 Disbursement Categories and Amounts Chart 2 Project Implementation and Management Organization Table I YANGTZE FLOOI) ENIERGENCY REHIABILITATION PROJECT FLOOD DATA

Ilubei llulwi li,l,,i llul-r Ilumn liubui Ilubei llubei Jiattgxi Jiauigxi Description Uuit Yitichag Sliashi ShL6hlou Jiamili Chenglinzii llonighiu Wiuhin lifsiigshi Jiuiiatl liulou

(GeseralData: Elevalton uf Top of Rivcr Dyke m 54 5 47 o 41.6 35.5 35.9-36.0 34.8 30 4 28 5 25 0 23.0 Elcvation of Ground Prolecedby Dykes m 53.0 30 0 25 0 30 4 20.0 24.0 20.0 18.0 - 20.0 18 0 - 20.0 Annual Average WaterLevel of YangizeRiver m 44 4 36 0 31 5 24 5 20.0 192 16.2 3 Average Annual Run-off of YangizeRiver m /s 14,3tlO 7.300 3,020 30.0(X) 23.500 24,500 4,690 Alen WaLerLevel (AWL) m 53 0 43 0 38 0 34 S 32 0 31 5 26 3 24.0 19.0 19.0 Danger Waler Level m 55.7 44 7 39.0 36.6 33 2 28.3 23.0 21.7

1998 Flood Data: Recordedhlighcsl Watcr Level m 54 5 45 2 40 9 38 3 35 9 35 0 29 4 26 3 23 0 22 6 1 Daic ut (ccurrig t7/Aug/98 17/Aug/9h 1'/Aiug/ ,8 17/Aug/18 20I/Aug/98 20/Aug/98 19/AugI98 0W/Aug199 01AugE98 3011u1198 3 RecordedMaxunum Flow ni /s 63,6tl0 53.7(XJ 452(0) 30.8(x) 08.6(X) 72,300 74,(xx) 73,500 31,9uO) 2 Daic of Occurring 16/Aug/98 26/Aug/98 17/Aug/98 01/Aug/98 7/Jul/98 19/Jul/98 20/Aug/98 26/Jun/98 Days of Rivcr Waler Levelover AWL day 38 52 73 79 84 80 82 79 94 94

3996Flood Data RecordedIlighcsl Water l.evel In 51 0 43 0 39)4 37 1 35 3 34 2 28.7 25.6 21.8 21 2 2 9 Dateo0 Occurring 05/Jul/96 25/Jul/96 21/JIul/i)X 25/Jul/96 22/Jul/96 22Jul/u96 2 /Jul/ 6 22/Jull/)6 23/Jul/96 23/Jul/96 Recordcd Maximum Flow in/s 4(.910 34,23) 28.50() 43.5(g) 68.400 70.70X) 72.700) 10.600 22 Date of Occurring 25/Jul/9)6 25/Jul/96 25/Jul/'X 19/Jul/9)6 /Jul/96 22/Jul/96 23/Jul/96 23/Aug/96 Z Days of River Water Levcl over AWL day 44 41 34 37 31 47 41

1934 Flood D:ta Recordedhighest Watcr Level m 557 44 7 39 9 366 3.1O 332 297 264 22.1 21 7 Datc of Occurring 07/Aug/54 (17/Aug/S) ((7/Ang/S4 08/Aug/S- 013/Aug/54 ((8/Aug/SI 18/Aug/54 19/Aug/54 16/Jul/54 16/Jul/54 RccordedMaximum Flow in'/s 6-4,8(X) 105,0tJ0 35.6(X 43,4(x) 78.8(1) 76.1(X) 78.300( 22,400 Date of Occurrtng 07/Aug/54 07/Aug/54 08/Aug/54 02/Aug/54 08/Aug/54 14/Aug/S4 15/Aug/54 DaysofRiverWaterLeveloverAWL day 29 69 74 300 136 119

1931 Flood Data Recordedhtighest Water Level m SS.0 43 5 39.8 33 2 28 3 25 2 20.5 Date of Occurriog 10/Aug/31 09/Aug/31 19/Aug/31 20/Aug/31 28/Jul/31 RecordodMaxinum Flow mi/s 63,600 571.88O 59.903) 61,500 Date ofOccurring 10/Aug/31 03/Jul/31 19/Aug/31 20/Aug/31 Days of River Water Leecl over AWL day 89

Note: Water level in di tableis describedin heighiabovc sca level Chart I

YANGTZE FLOOD EMERGENCY REHABILITATION PROJECT Historical Maximum Flood Levels

30 10~~~~~~~~j

0 Vichang Shashi Chengling Honghu Wuhan Hukou 17

Table 2 YANGTZE FLOOD EMERGENCY REHABILITATION PROJECT Damage Assessment Data

Hubei Province Hunan Province Jiangxi Province

Total in Total in Total in Total in Total in Total in Description Unit Province Project Area Province Project Area Province Project Area

Population - total population million people 58.73 15.20 64.00 11.05 41.50 6.57 - affected population million people 36.52 12.16 21.00 8.94 22.07 5.38 - injured and/or sick person 889,000.00 228,036.00 128,850.00 54,879.00 130,000.00 63,644.00 - deaths person 582.00 420.00 609.00 263.00 193.00 105.00 - evacuated during flood million people 5.36 3.22 1.93 1.69 2.90 1.70 - still in temporary shelter million people 0.46 0.46 0.32 0.21 1.30 0.33

Agriculture - total cultivated area millionha 3.34 1.27 NA 1.75 NA 1.02 -affected county no. 66.00 33.00 14.00 17.00 79.00 12.00 - polder breached & flooded no, 755.00 184.00 163.00 46.00 404.00 - affected crop area million ha 2.54 1.76 1.73 0.65 1.60 0.56 - damaged crop area million ha 1.07 0.92 0.39 0.31 0.90 0.39 - grain production reduced million ton 4.86 2.40 2.50 1.80 NA NA - grain lost million ton 1.42 0.76 0.77 0.29 3.00 2.60 forestry Damaged ha 12,548.00 10,622.31 32,585.00 13,034.00 9,987.50 5,744.20 -nursery ha 965.50 945.53 10,795.00 5,397.70 502.30 1,327.30 - livestock lost millionheads 1.37 0.47 1.41 0.42 0.60 0.63 Y million 376.26 128.41 797.42 237.53 NA 209.21 poultry lost million birds. 7.96 4.99 11.90 2.33 7.00 2.12 Y million NA NA 311.04 60.88 NA 31.34 - fishery lost ha 17,988.00 15,777.43 47,256.00 15,621.00 134,629.00 44,267.00 ton NA NA 256,371.00 150,636.00 132,957.00 86,059.00 Subtotal Agriculture losses Y million 22,070.00 11,062.77 9,870.00 8,324.52 25,100.00 8,020.98

Housing rooms destroyed million rooms 1.38 0.67 1.24 0.36 1.23 0.60 million m2 3,658.00 437.08 16.16 4.72 20.30 13.06 - rooms damaged million rooms 1.34 1.09 2.24 0.87 1.90 0.93 million m2 25.34 24.27 26.31 10.22 36.70 19.61 Subtotal of Damages Y million 4,560.00 4,318.73 4,185.06 2,195.72 4,220.00 3,628.90

Hospitals/Clinics - affected hospitals and clinics no. 1,751.00 579.00 975.00 541.00 5,915.00 1,044.00 - room destroyed m2 168,000.00 106,042.00 110,119.00 61,102.00 116,600.00 44,473.00 - room damaged m2 309,040.00 147,036.00 271,647.00 150,729.00 311,000.00 72,738.00 - equipment & materials Y million 127.29 62.69 53.30 26.66 86.70 46.28 Subtotal of Damage Y million 351.82 118.52 223.73 199.15 250.00 112.83

Education facilities - affected schools no. 6,950.00 3,435.00 20,978.00 2,313.00 5,751.00 1,478.00 - classrooms destroyed m2 848,845.00 685,390.00 1,090,000.00 262,075.00 521,000.00 455,975.00 - classrooms damaged m2 822,262.00 590,151.00 4,170,000.00 306,630.00 1,380,000.00 1,061,930.00 - other losses (books/furniture) Y million 485.60 439.48 1,179.44 147.44 84.00 110.74 Subtotal of Damage Y million 3,107.54 2,613.10 3,420.00 439.18 845.00 589.07

Water Conservancy Facilities - wells damaged no. 3,151.00 2,964.00 1,318.00 930.00 NA NA - dikes damaged km 5,097.50 1,856.68 2,201.00 1,193.20 4,581.00 2,355.21 18

Table 2 YANGTZE FLOOD EMERGENCY REHABILITATION PROJECT Damage Assessment Data

Hubei Province Hunan Province Jiangxi Province

DescriptionUnit Total in Total in Total in Total in Total in Total in Province Project Area Province Project Area Province Project Area

- canal etc. damaged km 4.555.00 2,866.33 4,305.00 1,367.90 4,594.00 1,254.90 - pumping station no. 1,891.00 1,388.00 5,400.00 1,887.00 4,614.00 1,442.00 - hydropower station (small) no. 218.00 113.00 30.00 7.00 446.00 122.00 - other losses NA 169.68 NA 36,050.00 NA NA Subtotal of Damage Y million 2,622.50 1,329.12 5,467.21 2,736.50 3,190.00 2,180.46

Infrastructure& Electricity

Power Supply Facilities - power station damaged no. 96.00 83.00 60.00 50.00 14.00 11.00 - power line damaged km 3,808.40 2,732.32 4,900.00 2,079.40 7,591.00 3,231.50 - communicationline km 6,388.90 3,684.70 5,100.00 2,072.70 4,028.00 2,377.40 Subtotal of Damage Y million 1,327.60 881.09 3,200.00 734.77 620.00 424.40

Water supply (city and rural area) - water plant destroyed no. 148.00 77.00 81.00 72.00 3,215.00 5.00 -water plant damaged no. 89.00 68.00 144.00 119.00 2,202.00 19.00 - wells (pumping & water wells) no 2,188.00 1,503.00 201.00 174.00 293,000.00 22,249.00 - pipeline damaged km 777.17 862.10 403.00 218.30 NA 85.30 Y million NA 56.08 NA NA NA 34.33 Subtotal of Damage Y million 509.56 362.37 420.00 362.38 150.00 72.37

Transportationand industry roads damaged or destroyed km 2,757.30 NA 6,350.00 1,716.00 9;746.00 2,211.10 million m2 37.66 NA NA NA NA NA bridges damaged no./m 1,493.00 NA 143.00 112.00 446.00 NA m 16,718.00 NA NA NA 6,426.00 NA - bridges destroyed no./m 671.00 NA 61.00 58.00 105.00 464.00 m 13,500.00 NA NA NA 2,138.00 5,776.00 - culverts no. 5,524.00 5,115.00 39,574.00 19,787.00 5,850.00 3,044.00 subtotal damage Y million 951.64 711.59 2,016.90 960.43 511.60 315.73 - affected Enterprises no. 5.256.00 3,460.80 5,331.00 2,555.00 8,930.00 12,682.00 - loss of enterprises Y million 3.833.00 2.01 3,303.31 1,621.30 NA NA Subtotal of Industrial & Transportation L Y million 16.417.98 4,163.59 6,114.00 3,129.58 4,067.00 2,014.26

Other sector losses Y milion NA NA NA NA NA 2,158.09

Total losses in province Y mUllon 54,800.00 31,792.88 32,900.00 18,121.80 38,442.00 19,601.35

Note: Total agriculture losses including the damage from crop, forestry, livestock and fishery. * the number of affected enterprises in the project area includesT&V enterprises. Table 3 YANGTZE FLOOD EMERGENCY REHABILITATION I'ROJECT Investment Cost by Sectors and Provinice

Sector< ---- lubei------> <------lunan------> <------Jiangxi------> <------Total------> <---- Investment-----> Bank Fin. <---- Investment-----> Bank Fin. <---- Investment-----> Bank Fin. <---- Investment-----> Bank Fin. Y'mln. $'mIn. $'mln. Y'mln. $'min. $'mln. Y'mln. $'mln. $8min. Y'mln. $'min. $rnln.

Roads 72.16 8.69 5.65 171.47 20.66 13.21 166.76 20.09 13.56 410.39 49.44 32.42

Water Supply 126.54 15.25 8.40 77.08 9.29 6.00 47.57 5.73 3.87 251.19 30.26 18.27

Schools 35.12 4.23 2.75 53.42 6.44 4.15 66.42 8.00 5.42 154.96 18.67 12.32

Hospitals & clinics 59.38 7.15 4.65 33.67 4.06 2.81 40.41 4.87 3.32- 133.46 16.08 10.78

Irrigation & drainage 62.02 7.47 5.02 0.00 0.00 0.00 0.00 0.00 0.00 62.02 7.47 5.02

Studies & Tech. Asst. 3.32 0.4(0 0.40 3.')2 0.47 0.20 3.55 0.43 0.20 10.79 1.30 0.80

Sub-total 358.54 43.20 26.87 339.56 40.91 26.37 324.71 39.12 26.37 1022.81 123.23 79.61

Others \a 20.85 2.51 0.00 33.87 4.08 0.00 18.70 2.25 0.00 73.42 8.85 0.00

1% Up Front Feefor Loan 1.11 (.13 0.13 I.10 0.13 0.13 1.10 0.13 0.133 3.31 0.40 0.40

TOTAL 380.50 45.84 27.00 374.53 45.12 26.50 344.51 41.51 26.50 1099.54 132.47 80.01 (As % of total investment) 58.90 63.85 60.40

\a: includes land acquisition and compensation, engineering and project management costs. 20

Table 4a YANGTZE FLOODEMERGENCY REHABILITATIONPROJECT Physicaland PerformanceMonitoring Indicators (Hubei Province)

Attainmentof Physicaland Perfornance Project Indicators Unit <- 1999------> <------2000------> Objectives Jan-Jun Jul-Dec Jan-Jun Jul-Dec

Restorationof Roads: economic Investment Y'OOO 35.39 70.78 77.55 77.55 activitiesand Roads restored/reconstr. km 59 118 129.7 129.7 production Bridges No. 2 0 0 0 Culverts No. 5 9 9 9 Trafficvolume restored Veh/day 0 0 27764 27764

Irrigation: Investment Y'OOO 23.97 47.94 56.23 64.42 No. of irrig. areas restored No. 18* 18 18 18 Area restored/rehabilitated 000 ha 44.18 No. of farmersbenefitted No. 442

Restorationof WaterSupply: social services Investment Y'OOO 39.1 78.2 107.16 136.12 and facilities No. of plants restoredor (education,health reconstructed No. 7* 7 7 7 and sanitation) Waterproduction restored tons/day 265 No. of villagesserved No. 61 No. of consumersserved 000 547 No. of enterprisesserved No.

Schools: Investment Y'OOO 18.22 36.43 36.43 36.43 Secondaryschools restored/reconstructed No. 9* 9 9 9 Build-upfloor area xOOOm2. 0 22.67 22.67 22.67 Primaryschools restored and reconstructed No. 29* 29 29 29 Built-upfloor area xOOOm2. 0 36.73 36.73 36.73 Studentpopulation served 000 31.06 31.06 31.06

HealthServices: Investment Y'OOO 30.52 61.04 61.56 61.56 Hospitalsrestored/recontr. No. 10* 10 10 10 Healthcenters restored or reconstructed No. 0 0 0 0 Health clinic restoredor reconstructed No. 23* 23 23 23 Total built-upfloor area xOOOm2. 0 73.1 73.1 73.1 Populationserved 000 0 1123.4 1123.4 1123.4

Note: All figures for 1999 to 2001 to be cumulative except otherwise indicated. Project will be completed in year 2000 in Hubei province. *: Indicates number of units under construction but not necessarily completed. 21

Table4b YANGTZE FLOOD EMERGENCY REHABILITATION PROJECT Physicaland PerformanceMonitoring Indicators (Hunan Province)

Attainmentof Physicaland Performance Project Indicators Unit <------1999------> <------2000------> < ------2001------> Objectives Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec

Restorationof Roads: economic Investment Y'OOO 60835 172630 172630 172630 172630 172630 activitiesand Roadsrestored/reconstr. km 290 465 465 465 465 465 production Bridges No. 20 35 35 35 35 35 Culverts No. 160 198 198 198 198 198 Trafficvolume restored Veh/day 15666 47616 47616 47616 47616 47616

Irrigation: Investment Y'000 No. of irrig. areasrestored No. Area restored/rehabilitated 000 ha No. of farmersbenefitted No.

Restorationof Water Supply: socialservices Investment Y'OOO 24631 47680 75830 75830 75830 75830 and facilities No. of plantsrestored or (education,health reconstructed No. 6 15 18 18 18 18 and sanitation) Waterproduction restored tons/day 320000 480000 584000 660000 660000 660000 No. of villagesserved No. 98 120 148 148 148 148 No. of consumersserved 000 565.87 947.87 1210.5 1272.75 1272.75 1272.75 No. of enterprisesserved No. 150 190 215 215 215 215

Schools: Investment Y'OOO 40024 50030 54250 54250 54250 54250 Secondaryschools restored/reconstructed No. 12 14 14 14 14 14 Build-upfloor area xOOOm2. 29 43.5 48.33 48.33 48.33 48.33 Primaryschools restored and reconstructed No. 12 12 12 12 12 12 Built-upfloor area xOOOm2. 23.52 35.28 39.2 39.2 39.2 39.2 Studentpopulation served 000 23.75 35.63 39.59 39.59 39.59 39.59

Health Services: Investment Y'OOO 18,637 36,790 36,790 36,790 36,790 36,790 Hospitalsrestored/recontr. No. 3 5 5 5 5 5 Healthcenters restored or reconstructed No. 3 5 5 5 5 5 Healthclinic restored or reconstructed No. 8 8 8 8 8 8 Totalbuilt-up floor area xOOOm2. 56.32 80.46 80.46 80A6 80.46 80A6 Populationserved 000 915 1,307 1,307 1,307 1,307 1,307

Note: All figuresfor 1999to 2001 to be cumulativeexcept otherwise indicated. 22

Table 4c

YANGTZE FLOOD EMERGENCY REHABILITATION PROJECT Physical and PerformanceMonitoring Indicators (Jiangxi Province)

Attainment of Physical and Performance Project Indicators Unit <------1999------> <------2000------> <------2001------> Objectives Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec

Restoration of Roads: economic Investment Y'OOO 34,251 76,144 116,403 149,368 165,529 176,473 activities and Roads restored/reconstr. km 65.8 146.2 232.4 302.4 331.5 350.9 production Bridges No. 3 9 12 18 18 18 Culverts No. 132 295 468 610 708 708 Traffic volume restored Veh/day 2363 2888 3084 2523 1016 700

Irrigation: Investment Y'OOO No. of irrig. areas restored No. Area restored/rehabilitated 000 ha No. of farmers benefitted No.

Restoration of Water Supply: social services Investment Y'OOO 11,768 26,151 39,696 48,725 50,339 50,339 and facilities No. of plants restored or (education,health reconstructed No. 6 18 25 29 30 30 and sanitation) Water production restored tons/day No. of villages served No. 18 18 124 145 448 448 No. of consumers served 000 46 205 487 543 619 619 No. of enterprises served No.

Schools: Investment Y'OOO 17,459 38,797 56,147 67,721 70,290 70,290 Secondary schools restored/reconstructed No. 16 35 47 56 56 56 Build-up floor area xOOOm2. 22.28 48.74 66.45 75.2 77.981 77.981 Primary schools restored and reconstructed No. 24 48 65 77 77 77 Built-up floor area xOOOm2. 18.417 12.097 57.91 67.532 67.532 67.532 Studentpopulationserved 000 36.2 82.2 III 130 131.8 131.8

Health Services: Investment Y'OOO 10,871 14,164 34,292 41,041 42,761 42,761 Hospitals restored/recontr. No. 1 2 4 4 4 4 Health centers restored or reconstructed No. 6 12 18 24 24 24 Health clinic restored or reconstructed No. 18 40 52 61 65 65 Total built-up floor area xOOOm2. 18.768 44.705 56.762 66.799 66.799 66.799 Population served 000 141 357 1,329 1,577 1,678 1,678

Note: All figures for 1999 to 2001 to be cumulative except otherwise indicated. 23 Table 5 YANGTZE RIVER FLOOD EMERGENCY REHABILITATION PROJECT Project Benefits

Description unit Hubei Hunan Jianpd Total province Province Province Project A. Water Supply 1. Water Treatment Plant no. 7.00 18.00 30.00 55.00 - renovated treatment plant no. 2.00 18.00 6.00 26.00

- reconstructedtreatment plant no. 5.00 NA 24.00 29.00 2. BenefittedCounties no. 6.00 12.00 11.00 29.00 3. BenefittedTownships no. 8.00 17.00 37.00 62.00 4. BenefittedVillages no. 61.00 148.00 148.00 357.00 5. Estimated householdsbenefitted x 000 136.00 363.60 186.50 686.10 6 Estimated Population benefitted x 000 547.00 1,272.80 649.00 2,468.80

B. Transportation/Roads 1. RenovationlReconstructionof Roads No. 10.00 25.00 49.00 84.00 - Length renovated km 62.10 465.00 41.23 568.33

- Length reconstructed km 67.60 NA 309.70 377.30 2 Estimated traffic volume restored Veh./day 27,800.00 47,600.00 12,600.00 88,000.00

C. Education/School 1. Schools (primary and secondary) no. 38.00 28.00 133.00 199.00 - renovated no. NA 9.00 30.00 39.00 - reconstructed no. 38.00 19.00 103.00 160.00 2. Built-upFloor Area '000 m2 59.40 775.26 145.50 980.16 - renovated '000 m2 NA 11.61 37.60 49.21 2 - reconstructed '000m 59.40 763.65 107.90 930.95 3. Estimated total student populatiion benefitted '000 31.00 62.09 129.45 222.54

D. Health-Care 1. Hospitals/Clinics no. 32.00 18.00 93.00 143.00

- renovated no. NA 8.00 26.00 34.00

- reconstructed no. 32.00 10.00 67.00 109.00 2. Total Built-up Floor Area '000 m2 73.00 56.60 69.80 199.40 3. Estimated population served xO00 1,123.00 1,307.30 1,648.70 4,079.00

E. Water Conservancy/Irrigation I No. of Irrigation Area No. 18.00 NA NA 18.00 - total irrigated area benefitted '000 ha 44.20 NA NA 44.20 - total drainage area benefitted '000 ha 38.00 NA NA 38.00 2 No. of Farmers Benefitted xO00 442.00 NA NA 442.00 24 Table 6

YANGTZEFLOOD EMERGENCY REHABILITATION PROJECT Project Counties

Project City/County < ------Sub-projects------> Road Water School Health Irrigation Supply Facilities Hubei Province Huang Shi City: Huang Shi City X Yang Xin County X X Da Ye City X X X City: Jingzhou City X X X Gong An County X X X X Shi Shou City X X X X X Jian Li County X X X X Honghu City X X X X County X Huang Gang City: Huang Gang City X Xi Shui County X Huang Mei County X X Tuan Feng County X Qi Chun county x Wu Xue City X Xian Ning Prefecture: Xian Ning Prefecture X Jia Yu County X X X Chi Bi City X Er Zhou City X

Xiao Gan City: Da Wu County X Han Chuan County X An Lu County X En Shi Zhou: En Shi City X X Xuan En county X Lai Feng County X Yi Chang City: Yi Chang City X Xian Tao City: Xian Tao City X X Qian Jiang City: Qian Jiang City X

Jing Men City X 25 Table6

YANGTZE FLOOD EMERGENCY REHABILITATION PROJECT Project Counties ProjectCity/County < ------Sub-projects------> Road Water School Health Irrigation Supply Facilities

HunanProvince ChangdeCity: An Xian County X X X X Shi Meng County X X X Tao Yuan County X Lixian County X

Yi Yang City: X X X Yuan Jiang County X X X X An Hua County X X X

Xian Xi Autonomous: Ji Shou City X X X

Zhang Jia Jie City Zhang Jia lie: X X X X

Changsha City: Wuling Yuan Region X X X Yong Ding Region X X X X

Yue Yang City: X X Hua Rong County X X X Yue Yang County X X X Xiang Yin County X

JiangxiProvince ShangraoPrefecture: Po Yang County X X X X Yu Gan County X X X Wan Nian County x x x x Yi Ying County X X X X Jiujiang City: Peng Zhe County X X X X JiujiangCounty X X X X Du Chang County X X X X Rong Xiu County X X X X Hu Kou County X X X X Xin Zhi County X X X X NanchangCity: XinJian County X X X X NanchangCounty X X X X

X: Indicates the county has one or more sub-projects under the respective component. 26

Table 7

YANGTZE FLOOD EMERGENCY REHABILITATION PROJECT Financing Plan in Y'million and US$' million Souceof Funding 1999 2000 2001 Total 1999 2000 2001 Total < ------Yuan million ------> < ------US$ million ------

HubeiProvince CentralGovernment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ProvincialGovernrent 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 City/Prefecture 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 County/Township 37.43 16.04 0.00 53.47 4.51 1.93 0.00 6.44 Self-raisedfunds 72.02 30.87 0.00 102.89 8.68 3.72 0.00 12.40 Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Sub-total 109.45 46.91 0.00 156.36 13.19 5.65 0.00 18.84

IBRD/IDA 182.98 41.12 0.00 224.10 22.05 4.95 0.00 27.00

Total Hubei 292.43 88.03 0.00 380.46 35.23 10.61 0.00 45.84 (As % of total) 76.86 23.14 0.00 HunanProvince Central Government 0 0 0 0 0.00 0.00 0.00 0.00 ProvincialGovernment 14.23 1.58 0 15.81 1.71 0.19 0.00 1.90 City/Prefecture 5.93 0.82 0 6.75 0.71 0.10 0.00 0.81 County/Township 11.86 1.63 0 13.49 1.43 0.20 0.00 1.63 Self-raisedfunds 109.77 12.26 0 122.03 13.23 1.48 0.00 14.70 Others

Sub-total 141.79 16.29 0 158.08 17.08 1.96 0.00 19.05

IBRD/IDA 197.32 22.63 0 219.95 23.77 2.73 0.00 26.50

Total Hunan 339.11 38.92 0 378.03 40.86 4.69 0.00 45.55 (AS % of total) 89.70 10.30 jiansvPrvnc Central Government 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ProvincialGovernment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 City/Prefecture 6.25 6.10 0.00 12.35 0.75 0.73 0.00 1.49 County/Township 40.04 34.13 12.87 87.04 4.82 4.11 1.55 10.49 Self-raisedfunds 13.00 11.07 0.00 24.07 1.57 1.33 0.00 2.90 Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Sub-total 59.29 51.30 12.87 123.46 7.14 6.18 1.55 14.87

IBRD/IDA 107.30 92.09 20.56 219.95 12.93 11.10 2.48 26.50

Total Jiangxi 166.59 143.39 33.43 343.41 20.07 17.28 4.03 41.37 (As % of total) 48.51 41.75 9.73 Total Project 798.13 270.34 33.43 1101.90 96.16 32.57 4.03 132.76

Summary: Local 310.53 114.50 12.87 437.90 37.41 13.80 1.55 52.76 IBRD/IDA 487.60 155.84 20.56 664.00 58.75 18.78 2.48 80.00 Total 798.13 270.34 33.43 1101.90 96.16 32.57 4.03 132.76 (As % of total) 72.43 24.53 3.03 Exhangerate used: Y8.30 = USSI00 27

Table 8

YANGTZEFLOOD EMERGENCY REHABILITATION PROJECT Subprojectsfor NCB Work Procurement

InvestmentValue Hubei Province Y,000 $Vow Roads: 1. Homg-ShanSection, Jingzhou 10.22 1.23 2. Road 106 to Tien Cheng 11.49 1.38 3. LaiFeng section 12.77 1.54 4. Road 318, En Shi 8.94 1.08 Sub-total 43.42 5.23 Water Supply: 4. Da Yu City 17.05 2.05 5. Shi Shou City 25.54 3.08 6. Jian li County 12.74 1.53 7. An Lu City 16.03 1.93 Sub-total 71.35 8.60

Total Hubei province 114.77 13.83

Hunan Province Roads: Yue Yang City 1. Hua Rong County Chengguan/Tiaoguan 8.00 0.96 2. Yue Yang /Yue Rong Road 17.00 2.05 3. Yue Yang City/ChangjiangRoad 17.00 2.05 4. Xiang Ying County/ Xiang Chang Road 15.00 1.81 Chang De City 5. An Xian County to Huang Shan Tou Township 11.13 1.34 6. ShiMen County, Hong Chai Gong 13.00 1.57 7. Li Nan New SettementArea bridge 10.35 1.25 Xian Xi Autonomousregion 8. Ji Shou City XiHuan Road Bridge 10.00 1.20 Zhang Jia Jie City 9. Zhang Jia Jie City Yong Ding Main Road 15.00 1.81 10 Wu Ning Yuan Region Gao Yun Main Bridge 8.10 0.98 124.58 15.01

Water Supply: 1. Yue Yang City W/S Plant #1 10.92 1.32 2. Zhang Jia Jie City W/S Plant #2 8.00 0.96 3. Wan Cheng County W/s Plant 12.00 1.45 Sub-total 30.92 3.73

Total Hunan Province 155.50 18.74

Total NCB packages 270.27 32.56

Note: NCB thresholds: > $300,000 <$5 million per contract. 28

Table9

YANGTZEFLOOD EMERGENCYREHABILITATION PROJECT DisbursementCategories and Amounts

Categories Credit Loan Per cent of (SDR) ($) ExpCNiu

(1) Works 65% of expenditures

(a) Hubei 8,430,000 10,315,000 (b) Hunan 9,280,000 12,517,000 (c) Jiangxi 9,300,000 12,598,000

(2) Goods 100% of foreignexpenditures, 100%of local expenditures (a) Hubei 1,320,000 2,650,000 (ex-factory)and 75% of (b) Hunan 290,000 400,000 local expendituresfor (c) Jiangxi 280,000 320,000 other items procuredlocally

(3) Consultantservices 100% of expenditures

(a) Hubei 0 400,000 (b) Hunan 0 200,000 (c) Jiangxi 0 200,000

(4) 1% Upfrontfee 0 400,000 Amountdue under Section2.04 of the Loan Agreement

TOTAL 28,900,000 40,000,000 Chart 2

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