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Flood Control Project Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 11308-CHA STAFF APPRAISAL REPORT CHINA Public Disclosure Authorized TAIHU BASIN FLOOD CONTROL PROJECT JANUARY 22, 1993 Public Disclosure Authorized Agriculture Operations Division China/Mongolia Public Disclosure Authorized Department East Asia & Pacific Regional Office This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (As of September 1992) Currency Unit = Yuan (Y) $1.00 = Y 5.50 Y 1.00 = $0.1818 FISCAL YEAR January 1 - December 31 WEIGHTS AND MEASURES 1 meter (m) = 3.28 feet (ft) 1 cubic meter (cu m) = 35.31 cubic feet 1 kilometer (km) = 0.62 mile 1 hectare (ha) = 2.47 acres (ac) I mu = 0.067ha I ton (t) = 1,000 kg = t2,205pounds Qbs) 1 kilogram (kg) = 2.2 pounds Qbs) ABBREVIATIONS AND ACRONYMS bcm billion cubic meters BWR Bureau of Water Resources (province) CMIEC China Machinery Import and Export Corporation CPLG Central Project Leading Group ECH Engineering Construction Headquarters GOC Government of China ICB International competitive bidding LCB Local competitive bidding M&E Monitoring and Evaluation MOF Ministry of Finance MWR Ministry of Water Resources NEPA National Environmental Protection Agency O&M Operation and Maintenance PMO Project Management Office PPLG Provincial Project Leading Group SFCH State Flood Control Headquarters SOE Statement of Expenditures TBA Taihu Basin Authority TBWRPB Taihu Basin Water Resources Protection Bureau TBWRPC Taihu Basin Water Resources Protection Committee FOR OMCIAL USEONLY CIINA TAIHU BASIN FLOOD CONTROL PROJECT LOAN/CREDIT AND PROJECT SUMMARY Borrower: People's Republicof China lBenfidary: Ministry of Water Resources(Taihu Basin Authority) Amount: Loan: $100 million Credit: SDR 72.8 million ($100 million equivalent) Termn: Loan: 20 years, includingfive years of grace, at the Bank's standard variable interest rate. Credit: IDA standardterms with 35 years maturity. Objectives and Desaiption: The project would control floods and improve land drainage in China's most industrializedand highly productive agricultural area. The project would also improve the quantity and quality of raw water for the ShanghaiCity water supply, and expand and improve inland waterway transportation. Flood control and land drainagewould be effectedthrough river channelizationof the Wangyu and Taipu Rivers to evacuate flood water to the YangtzeRiver, flood diversionthrough the Hang-Jia-Huriver system to Hangzhou Bay, and increased flood regulation in Tai Lake through strengtheningand upgrading of the lake's perimeter dikes. The enlarged Wangyu River channel would be used to divert water from the Yangtze River to augmentwater supply in the basin during dry seasons. Inland waterway transportationwould be improved through more stable and controlledwater levels and additional shiplocksconstructed in rivers and canals. Institutionalcapability would be strengthenedthrough better facilities for flood monitoring and forecasting, communication, staff training, technicalassistance, and equipment. Benefits and Risks: The main benefit is preventionof flood damage and losses. The cost of long-termannual averageflood damageand losse that wouldbe prevented is estimated at $77.6 million. The improved drainage on 86,000 ha of cropland would provide annual incrementalproduction of 43,000 tons of grain and rapeseed valued at about $4.5 million. Other benefits, not readily quantifiable, include: (a) enhanced quantity and quality of raw water for Shanghai's polluted water supply; and (b) improved and expanded inland waterway transportationwithin the Taihu Basin. The project faces no significanttechnical risks. The engineering concept is sound and the solutions have been derived after years of studies and This document has a restricteddistribution and may be used by recipients only in the performance of their officialduties. Its contents may not otherwisebe disclosedwithout WorldBank authorization. - ii - planning. The effects of any unprecedentedflood exceedingthe designed value would be substantiallyreduced by the project works and through flood forecastingsystem and contingencyplans to be provided under the project. Organizationaland institutionalrisks would be compensatedby staff training in project implementationand management. Estimated Project Co6t:A Local Forei4n Ttl …$---- $ million ----…- Land acquisition 32.0 0.0 32.0 Compensation 21.4 0.0 21.4 Earthwork. 82.1 49.3 131.4 Civil works 69.6 69.6 139.2 Machinery & equipment 3.6 33.0 36.6 Buildings 1.6 1.0 2.6 Other engineering 12.4 5.3 17.7 Training & tech. assistance 0.1 1.7 1.8 Design, supervision& mgm't 8.6 2.5 11.1 Base Cost 231.4 162.4 393.8 Physical contingencies 23.1 16.3 39.4 Price contingencies 42.7 21.4 64.1 Total Prolect Cost 297.2 200.1 497.3 FtnandngPlan: Government 297.2 0.1 297.3 IBRD/IDA 0.0 200.0 200.0 Total 297.2 200.1 497.3 EstimatedDisbursement: Bank/IDA FY 1993 1994 1995 1996 1997 1998 ------------ (S million) -_________ Annual 20 35 55 50 25 15 Cumulative 20 55 110 160 185 200 Ec_nomIcRate of Return: 27 percent La Project is exemptfrom taxes and duties. - iii - CONTENTS 1 Badkground ........................................... 1 A. Project Origin ....................................... 1 B. Flood Control in China ................................. 1 C. Bank Group Lending for Water Resource Development. ............. 3 D. Rationale for Bank Group Involvement ........................ 4 2 h Project Area ....................................... 5 A. Principal Features ..................................... 5 B. Climate and Hydrology ................................. 6 C. Water Resource Issues and Management ....................... 6 D. The 1991 Flood ...................................... 8 E. InstitutionalManagement ................................ 10 F. Infrastructure........................................ 10 3 TMeProjed . ..........................................11 A. Project Formulationand Objectives.11 B. Project Description .11 C. Principal Features.12 D. Schedulefor Design and Construction. 15 E. Cost Estimatesand Financing. 15 F. Procurement.17 G. Disbursement.19 H. Accountsand Audits .20 I. Environmenteaand Social Impacts. 20 J. EnvironmentalMitigation and Management.21 K. Land Acquisition,Relocation and Compensation.22 This report is based on the findingsof a preparationmission in April 1992 comprisingLang S. Tay (Mission Leader), W. T. Smith (Bank/IDA), Colin Fairn, M. Sydor and T. Whitington (Consultants),and appraisal missionsAugust 1992 comprisingLang S. Tay (MissionLeader), R. Reidinger, R. Vick (Bank/lDA),Lee Travers, Bi Mingjian and N. Odd (Consultants). Poer reviewers were Messrs. J. Berkoff, U. Kuffner (EMTWU); R. Vick (ASTIN); and A. Ghani (ASTEN). The China/MongoliaDepartment Director is Mr. Shahid Javed Burki and the AgricultureOperations Division Chief is Mr. J. Goldberg. Project Task Manager is Lang S. Tay. - lv - 4 Project Management and Coordination ....... 26 A. ProjectOrganization ................................... 26 B. Financial Management .................................. 27 C. Execution and Supervisionof Project Works .................... 28 D. Operation and Maintenance ............... ................ 29 E. Monitoring,Evaluation and Reporting ......... .. ............. 32 5 Justifilcation and Beneffts .................................. 34 A. General ..................... ...................... 34 B. Economic Evaluationand Analysis .......................... 35 C. Risks .......................................... 37 6 Agreements Reached and Recommendation ...................... 38 ANNEMS 1 Statistics .. 40 Table 1 - Taihu BasinArea Staistics .40 Table 2 - Taihu BasinArea AgriculturalProduction (1989) .41 Table 3 - Taihu Basin Area EconomicStatistics (1989) .42 Table4 - MeteorologicalData .43 Table 5 - Tidal Levels in Yangtze and Huangpu Rivers .44 2 Cost Estimates. 45 Table 1 - Project ComponentsFunded Entirely by Local Funds. 45 Table2 - Project Cost .46 (a)Project Cost Summary .. 46 (b)Summary Account Cost Summary .. 47 (c)Summary Account by Project Components .. 48 (d)Project Componentsby Year .. 50 Table 3 - Procurementof Major Works by ICB and LCB .52 Table 4 - Procurementof Machinery,Equipment and Materials.55 Table 5 - RetroactiveFinancing Estimates and Program.56 Table 6 - EstimatedDisbursement Schedule and Profile .57 Table 7 - Training Program .58 Table 8 - TechnicalAssistance Program .59 3 EconomicEvaluation and Analysis .......... .................... 60-74 4 Long-termBasinwide Environmental Management Plan ..... ............ 75-76 5 Plan for Relocation,Compensation and Land Acquisition ..... ........... 77-94 6 Project Planning and Hydraulic Modeling.......................... 95-100 7 TdlemetricMonitoring and CommunicationSystem ..... ............. 101-108 v - ANNEXES (cont'd) 8 Studyfor ContingencyPlan for Managementof CatastrophicFloods ........ 108-111 9 Summaryof Review of Water Quality Studies and Modeling............. 112-130 10 Monitoringand Evaluation ........... ....................... 131-132 Table 1 - Key MonitoringIndicators .......................... 131 Table 2 - ProposedBank/IDA SupervisionInput ................... 132 11 SelectedDocuments and Data Availablein Project File ................. 133 CHARTS 1 Project Organization.134 2 Organizationfor Operation and Management(TBA) .135 3 Organizationof the Taihu Basin Water ResourcesProtection
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