Hubei Hydropower Development in Poor Areas Project
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CHINA Hubei Hydropower Development in Poor Areas Project Report No. 127227 JUNE 18, 2018 © 2018 International Bank for Reconstruction This work is a product of the staff of The World RIGHTS AND PERMISSIONS and Development / The World Bank Bank with external contributions. The findings, The material in this work is subject to copyright. 1818 H Street NW interpretations, and conclusions expressed in Because The World Bank encourages Washington DC 20433 this work do not necessarily reflect the views of dissemination of its knowledge, this work may be Telephone: 202-473-1000 The World Bank, its Board of Executive reproduced, in whole or in part, for Internet: www.worldbank.org Directors, or the governments they represent. noncommercial purposes as long as full attribution to this work is given. Attribution—Please cite the work as follows: The World Bank does not guarantee the World Bank. 2018. China—Hubei Hydropower accuracy of the data included in this work. 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Report No.: 127227 PROJECT PERFORMANCE ASSESSMENT REPORT CHINA HUBEI HYDROPOWER DEVELOPMENT IN POOR AREAS PROJECT (IBRD-46660) June 18, 2018 Financial, Private Sector, and Sustainable Development Independent Evaluation Group ii Currency Equivalents (Average exchange rate during the life of the project, 2002–11) Currency Unit = RMB Yuan US$ 1.00 = Y 7.87 Abbreviations and Acronyms CAS Country Assistance Strategy IBRD International Bank for CBDP Community Benefit Reconstruction and Development Plan Development CDCF Community Development ICB International Competitive Carbon Fund Bidding CDM Clean Development ICR Implementation Completion Mechanism and Results Report CPS Country Partnership Strategy IEG Independent Evaluation Group CRESP China Renewable Energy ISR Implementation Status Report Scale-up Program kW Kilowatt DRA Debt Reserve Account kWh Kilowatt-hour DSCR Debt Service Coverage Ratio kWp Kilowatts-peak EIA Environmental Impact M&E monitoring and evaluation Assessment MOF Ministry of Finance EIRR economic internal rate of MW Megawatt (1,000 kilowatts) return MWh Megawatt-hour EMP Environmental Management NPV net present value Plan OD Operational Directive ERPA Emission Reduction Purchase O&M operations and maintenance Agreement OP Operational Policy FIRR financial internal rate of return PAD Project Appraisal Document FMIS financial management PAP project-affected people information system PDO Project Development FY fiscal year Objective HPPC Hubei Provincial Power PMO Project Management Office Company POE Panel of Experts (for Dam GDP gross domestic product Safety) GW gigawatt (1,000 megawatts) RAP Resettlement Action Plan GWh gigawatt-hour RMB Renminbi (Chinese Yuan) VAT Value Added Tax Fiscal Year Government: January 1 – December 31 iii Contents 1. Background and Context................................................................................................. 1 2. Objectives, Design, and Their Relevance ....................................................................... 3 Project Development Objectives..................................................................................... 3 Relevance of Objectives ................................................................................................. 3 3. Implementation ............................................................................................................... 5 4. Efficacy ......................................................................................................................... 11 5. Efficiency ...................................................................................................................... 15 6. Outcome ........................................................................................................................ 17 7. Risk to Development Outcome ..................................................................................... 17 8. World Bank Performance ............................................................................................. 18 9. Borrower Performance .................................................................................................. 19 Government Performance ............................................................................................. 19 Implementing Agencies Performance ........................................................................... 20 10. Monitoring and Evaluation ......................................................................................... 20 11. Lessons ........................................................................................................................ 22 Tables Table 4.1. Annual Electricity Generation for Guangrun Component: 2014–17 ............... 12 Table 5.1. Economic Internal Rates of Return (EIRR) at project closing (2012) ............. 15 Table 5.2. Feed-in Tariff and Sales for Hydropower Components visited by IEG .......... 16 Appendixes Appendix A. Basic Data Sheet .......................................................................................... 24 Appendix B. Results Framework ...................................................................................... 30 Appendix C: Interview Questions for Hubei Hydro Project Stakeholders ....................... 37 Appendix D. List of Persons Met ..................................................................................... 38 This report was prepared by Andres Liebenthal (Consultant) under the supervision of Migara Jayawardena (Task Team Leader) and Midori Makino (Manager). The report was panel reviewed by Christopher Nelson and peer reviewed by Fernando Manibog. Richard Kraus provided administrative support. iv Principal Ratings ICR* ICR Review* PPAR Outcome Satisfactory Moderately Satisfactory Satisfactory Risk to Negligible to Low Moderate Moderate development outcome Bank performance Satisfactory Moderately Satisfactory Moderately Satisfactory Borrower Moderately Satisfactory Moderately Moderately Satisfactory performance Unsatisfactory * The Implementation Completion and Results (ICR) report is a self-evaluation by the responsible World Bank global practice. The ICR Review is an intermediate Independent Evaluation Group product that seeks to independently validate the findings of the ICR. Note: PPAR = Project Performance Assessment Report. Key Staff Responsible Positions At ICR At Approval Vice President: Pamela Cox Jemal-ud-din Kassum Country Director: Klaus Rohland Yukon Huang Sector Manager: Mark Lundell Mohammad Farhandi Project Team Leader: Yanqin Song Barry Trembath ICR Team Leader: Yanqin Song ICR Primary Author: Emmanuel Py v IEG Mission: Improving World Bank Group development results through excellence in independent evaluation. About this Report The Independent Evaluation Group (IEG) assesses the programs and activities of the World Bank for two purposes: first, to ensure the integrity of the World Bank’s self-evaluation process and to verify that the World Bank’s work is producing the expected results, and second, to help develop improved directions, policies, and procedures through the dissemination of lessons drawn from experience. As part of this work, IEG annually assesses 20–25 percent of the World Bank’s lending operations through fieldwork. In selecting operations for assessment, preference is given to those that are innovative, large, or complex; those that are relevant to upcoming studies or country evaluations; those for which Executive Directors or World Bank management have requested assessments; and those that are likely to generate important lessons. To prepare a Project Performance Assessment Report (PPAR), IEG staff examine project files and other documents, visit the borrowing country to discuss the operation with the government, and other in-country stakeholders, interview World Bank staff and other donor agency staff both at headquarters and in local offices as appropriate, and apply other evaluative methods as needed. Each PPAR is subject to technical peer review, internal IEG panel review, and management approval. Once cleared internally, the PPAR is commented on by the responsible World Bank country management unit. The PPAR is also sent to the borrower for review. IEG incorporates both World Bank and borrower comments as appropriate, and the borrowers’ comments are attached to the document that is sent to the World Bank’s Board of Executive Directors. After an assessment report has been sent to the Board, it is disclosed to the public. About the IEG Rating System for Public Sector Evaluations IEG’s use of multiple evaluation methods offers both rigor and a necessary level of flexibility to adapt to lending instrument, project design, or sectoral approach. IEG evaluators all apply the same basic method to arrive at their project ratings. Following is the definition and rating scale used for each evaluation criterion (additional information is available on the IEG website: http://ieg.worldbankgroup.org). Outcome: