Document of The World Bank
FOR OFFICIAL USE ONLY Public Disclosure Authorized
Report No: 32359-CHA
IMPLEMENTATION COMPLETION REPORT (IDA-30930 SCL-43410 TF-27129)
ON A Public Disclosure Authorized LOAN/CREDIT
IN THE AMOUNT OF US$ 150 MILLION
TO THE
PEOPLE'S REPUBLIC OF CHINA
FOR THE
TARIM BASIN II PROJECT Public Disclosure Authorized
June 27, 2005
Rural Development and Natural Resources Sector Unit East Asia and Pacific Region Public Disclosure Authorized
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 (Exchange Rate Effective June 2005) Currency Unit = Yuan Y 1.00 = US$ 0.12 US$ 1.00 = Y 8.3
FISCAL YEAR
ABBREVIATIONS AND ACRONYMS
AusAID The Australian Agency for International Development BCM Billion cubic meters CAS Country Assistance Strategy CC Coordination Committee cum Cubic meter CUM/MU Cubic meters per mu DEP Domestic Expert Panel DFID Department for International Development EC Executive Committee EO Executive Office ERR Economic Rate of Return ET Evapo-transpiration FRR Financial Rate of Return GIS Global Information System GOC Government of China Ha Hectare (1 ha = 2.48 acres) HHWS Household Water Supply System IC Irrigation Committee ICB International Competitive Bidding ICR Implementation Completion Report IDC Irrigation District Committee IPM Integrated Pest Management IWRM Integrated Water Resources Management LWMP Land and Water Management Plan LYLI Low Yield Land Improvement MCM Million cubic meters M&E Monitoring and Evaluation M&I Municipal and Industrial MIS Management Information System MTR Mid-term Review Mu Chinese unit of area (15Mu = 1 ha) NBET Non-beneficial Evapo-transpiration NPV Net Present Value OED Operations Evaluation Department PDO Project Development Objective PPMO Prefecture Project Management Office
PAD Project Appraisal Document QAG Quality Assurance Group QC Quality Control RAR Resettlement Assessment Report RCR Resettlement Completion Report R&D Research and Development RPMO Regional Project Management Office SC Standing Committee SIDD Self-Financing Irrigation and Drainage District TA Technical Assistance TBMB Tarim Basin Management Bureau TBWRC Tarim Basin Water Resources Commission WASB Water and Salt Balance WRM Water Resources Management WSC Water Supply Corporation WTO World Trade Organization WUA Water User Association XUAR Xinjiang Uygur Autonomous Region
Vice President: Jemal-ud-din Kassum, EAPVP Country Director David R. Dollar, EACCF Sector Director Mark D. Wilson, EASRD Task Team Leader/Task Manager: Geoffrey Spencer/Liping Jiang, EASRD
CHINA CN - TARIM BASIN II
CONTENTS
Page No. 1. Project Data 1 2. Principal Performance Ratings 1 3. Assessment of Development Objective and Design, and of Quality at Entry 2 4. Achievement of Objective and Outputs 3 5. Major Factors Affecting Implementation and Outcome 12 6. Sustainability 14 7. Bank and Borrower Performance 15 8. Lessons Learned 16 9. Partner Comments 17 10. Additional Information 17 Annex 1. Key Performance Indicators/Log Frame Matrix 18 Annex 2. Project Costs and Financing 20 Annex 3. Economic Costs and Benefits 22 Annex 4. Bank Inputs 26 Annex 5. Ratings for Achievement of Objectives/Outputs of Components 29 Annex 6. Ratings of Bank and Borrower Performance 30 Annex 7. List of Supporting Documents 31 Annex 8. TBWRC Organization, Responsibility and Consultation Arrangement 32 Annex 9. Implementation Management of Safeguard Issues 34 Annex 10. Borrower's Comments in Detail 37 Annex 11. Research Topics by Project Areas 39 Annex 12. Pictorial Overview of the Tarim Basin and Project Achievements 43 Map IBRD 29489
Project ID: P046563 Project Name: TARIM BASIN II PROJECT Team Leader: Geoffrey Spencer TL Unit: EASRD ICR Type: Core ICR Report Date: June 28, 2005
1. Project Data Name: TARIM BASIN II PROJECT L/C/TF Number: IDA-30930; SCL-43410; TF-27129 Country/Department: CHINA Region: East Asia and Pacific Region Sector/subsector: Irrigation and drainage (78%); Agricultural extension and research (20%); Sub-national government administration (2%) Theme: Water resource management (P); Land administration and management (P); Other rural development (S); Environmental policies and institutions (S)
KEY DATES Original Revised/Actual PCD: 03/19/1997 Effective: 10/31/1998 12/18/1998 Appraisal: 02/09/1998 MTR: 11/30/2001 Approval: 06/09/1998 Closing: 12/05/0331 12/31/2005
Borrower/Implementing Agency: PRC/XINJIANG UYGUR AUTONOMOUS REGION Other Partners: AusAID through Bank executed Technical Assistance Grant
STAFF Current At Appraisal Vice President: Jemal-ud-din Kassum Jean-Michele Severino Country Director: David R. Dollar Yukon Huang Sector Director: Mark D. Wilson Geoffrey B. Fox Team Leader at ICR: Geoff Spencer and Jiang Liping Douglas C. Olson ICR Primary Author: Geoff Spencer
2. Principal Performance Ratings
(HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HL=Highly Likely, L=Likely, UN=Unlikely, HUN=Highly Unlikely, HU=Highly Unsatisfactory, H=High, SU=Substantial, M=Modest, N=Negligible) Outcome: HS Sustainability: HL Institutional Development Impact: H Bank Performance: HS Borrower Performance: HS
QAG (if available) ICR Quality at Entry: HS Project at Risk at Any Time: Yes 3. Assessment of Development Objective and Design, and of Quality at Entry 3.1 Original Objective:
3.1.1 The main project development objectives (PDOs) were: (i) to increase the incomes of poor farmers through irrigated agriculture development; (ii) to establish mechanisms for the sustainable development, management and use of the water resources and land in the Tarim Basin; and (iii) to partially restore and preserve the “green corridor” in the lower reaches of the Tarim River.
3.1.2. The project was demanding, complex and risky because of the depth of institutional reform required for setting up an intra-provincial river basin management arrangement, including the establishment of a water quota system, with an allocation of a water to the environment. Both had no precedent in China. It was further complicated because by design, it needed a well coordinated and integral approach across a number of government departments and political and administrative boundaries. To be successful it needed strong political support to create the establishing policy and institutional frameworks. Prior to the project, uncontrolled and increasing upstream water diversions for irrigation, municipal and industrial use were causing a steady deterioration of the downstream environment. The project was designed to bring about sustainable water resources management in the Tarim River Basin and to a create conditions of controlled development, allocation and use of water resources in the upper basin in order to increase water availability and quality for the lower river basin environment.
3.2 Revised Objective:
The original project objectives remained unchanged throughout the project’s implementation.
3.3 Original Components:
3.3.1 The project comprised eight components: (1) Water Conservancy; (2) Land Reclamation; (3) Low Yield Land Improvement (LYLI); (4) Agricultural Support Services; (5) Environmental Protection and Monitoring; (6) Institutional Development; (7) Tarim Basin Water Resources Commission (TBWRC); and (8) Regional Management.
3.3.2 The components were well designed as an integrated set of actions and activities that supported the full achievement of the PDOs. The components were effectively integrated using an implementation strategy directed at sustainable water resources development, allocation and management and employed both a “top-down” and a “bottom-up” approach. The project management arrangements adopted at Regional, Prefecture and County levels ensured effective management and coordination.
3.4 Revised Components:
The original components remained largely unchanged throughout the implementation period. However, activities under component 2 -Land Reclamation- involving the expansion of the irrigated area were stopped at the time of the mid-term review in order to be consistent with a change in Regional government policy supported by the Bank. The funds intended for this component were reallocated to the Low Yield Land Improvement Component and to Water Conservancy activities.
3.5 Quality at Entry:
While the project was not subject to a review by the Quality Assurance Group, the quality at entry is rated as having been highly satisfactory. The PDOs were consistent with the Bank’s Country Assistance
- 2 - Strategy for China, which called for: (i) sustainable agricultural development and diversified agricultural production in poor and environmentally vulnerable areas; (ii) promotion of continued sustainable development and upgrading of marginal lands; and (iii) the incorporation of major water storage, transfer, irrigation, drainage and flood control infrastructure. It was also in step with the government of China’s (GOC) long-term polices and strategies supporting increased food production by improving irrigated agriculture, increasing incomes and rural employment opportunities and furthering western regional development. The project design incorporated lessons learnt from the 13 previous Bank-funded water and irrigation projects in China and from the Operations Evaluation Department (OED) evaluation reviews of major water resources projects Bank-wide. The design also incorporated fully the Bank’s safeguard policies which included Environmental Assessment, Integrated Pest Management, Indigenous People, Dam Safety, and Involuntary Resettlement. An exception to the International Waters safeguard (O.P7.50) was sought and granted in August 1997.
4. Achievement of Objective and Outputs 4.1 Outcome/achievement of objective:
4.1.1 The outcome of the project is rated as highly satisfactory.
4.1.2 The project effectively brought about: (i) institutional reforms at the river basin management level; (ii) restrictions on agricultural water use by the introduction of a water quota system; (iii) increased productivity of water usage in irrigated agriculture; and (iv) the establishment of a water quota allocation specifically for the downstream riverside environment which resulted in significant environmental water releases. The physical outputs achieved under each component of the project are clear and measurable. What is not so easily measurable, but which is a striking achievement in such a short time, is the complete change of mentality and genuine understanding and commitment by stakeholder water-users and government officials within the basin that water use must be controlled within allocated quotas and that water must be allocated both for productive and environmental purposes.
4.1.3 The project was completed on schedule, with all the main physical targets met and with full disbursement of the loan/credit and all civil works were completed to high quality standards. The first objective (of increasing farmer incomes) was met by increasing agricultural productivity, improving and modernizing cropping systems, reducing input costs and diversifying agriculture to higher-value products. The second objective (of establishing mechanisms for sustainable allocation, use and management of the land and water resources) was achieved through the full implementation of institutional reforms in the entire basin. The achievements and outcomes under this component provide a “best practice” example of truly participatory and inclusive river basin institutional management arrangements. The third objective (of partially restoring the “green corridor” in the lower reaches of the river by providing water for the riverside environment) far exceeded the expectations established at appraisal. This was achieved by effectively reducing the quantity of water used in irrigation and allocating a water quota to the environment. The successful achievement towards this objective resulted in the Xinjiang Uygur Autonomous Region (XUAR) obtaining funding for a new nationally-funded regional project that began in 2001 to further leverage the project successes.
4.1.4 Over 200,000 farmer households in the project area have benefited directly from the project through raised annual cropping outputs as well as diversification into higher-value crops, particularly melons and other fruit crops. Compared to the estimates at appraisal, annual production exceeded these as follows: wheat by 5132 tons; corn by 14827 tons, rice by 19571 tons; cotton by 24459 tons; and sugar beet by 60844 tons. Compared to appraisal projections, the actual yields at project end for the widely
- 3 - planted crops of wheat and corn were better by 41% (4400kg /ha compared to 6210kg/ha) and 25% (1260kg/ha compared to 1580 kg/ha), respectively. Because of the LYLI component and the increase in livestock production, a huge increase in alfalfa production occurred – up 56,302 tons/annum compared to the baseline data. Significant diversification into higher-value crops (orchard, melons, vegetables and alfalfa) occurred on about 148,000 Ha. Measured against the baseline data, production increases were: oil seed crops, up 3044 tons/annum; melons, up 38,248 tons/annum and fruit production (apples, grapes, apricots, pears), up 8158 tons/annum.
4.1.5 As a result, farmers’ average annual income per capita increased from Y1946 to Y2510 or 29% across the five prefectures in the project area. The two poorest prefectures, Kizilsu and Hotan, benefited the most from project activity with average annual incomes increasing by 48% and 40%, respectively. All the counties in Hotan and most of the counties in Kizilsu are classified at a level below the national poverty line. The project was able to target the poorest prefectures because of good baseline data, particularly the data available for the nationally classified poverty areas. The project brought about not only a reduction in the total volume of irrigation water used but also an increase in the value of agricultural production such that on average the irrigation water productivity index increased by 43% from Y0.86/cum to Y1.23/cum.
4.1.6 During the project, the total volume of environmental water released from Daxihaizhi reservoir to the lower river "green corridor" was 1.7 Billion Cubic Meters (BCM). At completion, the project showed itself to be one of the most successful examples of sustainable river basin management in China, if not the world. The impact of the project was to change the mind set and the approach to integrated water resources management (IWRM) within the basin from a situation of unsustainable water use, no integrated or controlled management, and severe environmental degradation. The project clearly demonstrated that an economically-viable and environmentally-sustainable integrated water resource management approach can be achieved in a poor area of a developing country.
4.1.7 The project benefited from the favorable national political environment, the renewed national focus on rural development and sustainable water resource management, and the entry of China into the World Trade Organization (WTO). The project also introduced a number of new technological and management practices that contributed markedly to the expansion of agricultural production systems, raised productivity levels and increased water savings. The success of a number of innovations introduced under the project can be measured in part by the commitment by the XUAR government to now incorporate and mainstream these into national and regional funded programs. Of particular note are the continuation of the water and salt balance modeling for sound, knowledge-based planning and decision-making in the context of the river basin master plan; the use of evapo-transpiration management concepts in future planning, allocation and use of water; the use of geo-membrane in canal lining; the wide application of Integrated Pest Management (IPM); the initial application of laser-guided land grading to support water savings and increased agricultural productivity; the wider application of the community-driven, “bottom up” Land and Water Management Planning process; and the wider formation and fostering of the Self-Financing Irrigation and Drainage District (SIDD)/Water User Associations (WUAs), and adoption of irrigation water tariffs based on volumetric water use measurement.
4.2 Outputs by components:
4.2.1. Water Conservancy (US$116.8 m). The achievement of the output of this component is rated as highly satisfactory. This was the biggest investment component of the project and included the construction of the following: one main reservoir and four major headwork structures; rehabilitation and modernization of 1009km trunk/main canals; 1092 km main drains; 12 well-fields involving 572 new wells; one pumping station; and 88 km of electrical
- 4 - transmission lines.
4.2.2 A total of 433 km of canals were lined using 0.5 mm thick welded sheets of geo-membrane protected by concrete lining. The use of geo-membrane was the biggest single undertaking of its kind in the 2 world with 5.4 million m utilized, and ensured that the canals were made virtually seepage-proof. To put this huge achievement into perspective, the total amount of geo-membrane installed under the project in six years exceeded the total amount installed by the US Bureau of Reclamation for canal lining over the last 30 years. Seepage reductions were confirmed using standard canal seepage tests. (Under the previous Tarim I project, although seepage was significantly reduced using 0.2 mm thick geo-membrane with overlapping joints, there was still a significant amount of post-lining seepage also confirmed with seepage tests.) The water saved, estimated that 600-800 Million Cubic Meters (MCM)/annum was as a first priority returned to the river as environmental flows. Water in excess of environmental requirements was allocated to consumptive use, including M&I and a controlled expansion of the area under irrigation. The construction of well points and the conjunctive use of both surface and groundwater contributed to improvements in water operational efficiencies and greater drought protection for certain project areas. The benefits derived from conjunctive use of water were particularly evident in the Bosten Lake area. (See details in 4.2.6.2 below)
4.2.3 Land Reclamation (US$35.8 m). The achievement of the output of this component is rated as satisfactory. This component involved the reclamation of previously non-irrigated waste land within or adjoining existing irrigation “oases”. A total of 41, 462 ha was completed, involving the construction of (i) 1198 km of lateral canals of which 225 km were lined; (ii) 1129 km of farm canals of which 27 km were lined; (iii) 7838 associated canal structures; and (iv) 1360 farm access roads. The original objective at appraisal of 75,334 ha was not realized because investment in the component was stopped at the time of the Mid-term Review (MTR) in accordance with a change of government policy supported by the Bank, to limit irrigation expansion in favor of concentrating the investment on the consolidation and improvement of land already irrigated, including water conservation activities. A result of this readjustment was a greater volume of real water savings generated from irrigation and returned to the river as environmental flows, ensuring the full achievement of the third PDO.
4.2.4 Low Yield Land Improvement –LYLI (US $64.0 m). The implementation performance of this component is rated as highly satisfactory. About 123,373 ha (105,334 ha at appraisal) of existing low yield irrigated land was improved through the completion or rehabilitation of: (i) 1877 km of lateral canals, of which 510 km were lined; (ii) 2070 km of farm canals, of which 64 km were lined; (iii) 13,008 associated canal structures; and (iv) 268 km of farm access roads. At the MTR, this component was further expanded and enhanced by the inclusion of an amount of US$90/ha specifically directed at improving soil fertility through a combination of engineering, biological and land management/farming system measures. Engineering measures were directed at mitigating soil salinity and high groundwater levels (drainage); biological measures were directed at improving soil organic matter content (alfalfa for “green mature”); and changes to farming systems were directed at increasing the long-term fertility of soil (crop rotation and intercropping). This was successfully completed on all 123,373 ha and resulted in increases in both soil fertility and structure (1998-2003) as follows: organic matter content +20%, N +3.4%, P uptake +14.8%, reduction in pH -5%, and a reduction in total soil salt content -11%.
4.2.5 Agriculture Support Services (US$ 21.1m).
- 5 - 4.2.5.1 This component was fully achieved and its output contributed significantly to increased farmer incomes through productivity gains and diversification of irrigated agriculture and through the adoption of IPM. It is therefore rated as highly satisfactory. Its inclusion allowed a concentration on irrigated agricultural production and not just irrigation engineering; it was an integral part of the “bottom-up” measures which successfully brought together farmers (especially those organized into WUAs) and the water and agricultural support services providers, all focused on improving both agricultural and water use productivity. The successful outcomes were delivered through: (i) the enhancement of the seed production base (8350 ha); (ii) the construction and equipping of new seed processing plants down to township level (26800 m2); (iii) construction of agricultural extension stations at district/county/township levels (46 No.); (iv) the procurement of breeding bulls and ram/eves (15233 head); and (v) the construction of seven technical training centers. In addition the component introduced advanced and scientific farming technology practices, strengthened Research and Development and provided a total of 479,00 man days of agricultural training for technical staff and 568,000 training days for farmers. The majority, 517,000 (91%) of the farmer training days was directed at women (151,000 days) and ethnic minorities (366,000 days). An indication of the effectiveness of this component can be seen as part of the 2003 M&E of the project. For instance, a sample of project participating households across the whole project area recorded that 89% considered the farmer training provided related directly to solving their problems and addressed their practical needs. Further, the establishment and enhancement of the seed production base meant that 89% (1998 -64%) of farmers in the project area were covered by the program and had access to better seed quality and availability. The full impact of this component can be seen in the annual crop production increases (para 4.1.4), in farmer income increases (para 4.1.5). The following table that shows clearly the diversification in irrigated agriculture that has occurred in the project area.
Changes to the Cropping Pattern in the Project Area Unit: thousand h
4.2.5.2 This component also managed the IPM activities with training and extension directed at cotton cropping systems. The IPM activities were closely supported by the T.A. provided under the AusAID grant and were based around three levels of training of both staff and farmers reinforced through field demonstrations. The effectiveness of the IPM activities were measured against (i) the reduction in overall (chemical, biological and other) uses - result a 22.8% reduction. (ii) the reduction in the percentage of chemical pesticides used - result - 306871 kgs/annum reduction; (iii) the increase in biological pesticides use - result +19.6% and (iv) the increase in the application of other methods -result +17.0% (See annex 9 for more details on the IPM activities.)
4.2.6 Environmental Protection and Monitoring (US$16.9m).
- 6 - 4.2.6.1 This component played a very important role in sustainable water resources development and use within the basin and was completed highly satisfactorily. The main activity was the establishment of a basin-wide water and salt balance (WASB) model, built up from a set of sub-models at prefecture level. The component also financed the establishment of key water quality and quantity data points, the purpose of which was to provide knowledge for data input into the WASB models, which allowed the effectiveness of the model to be significantly improved over time. The early implementation of the models allowed knowledge-based decisions to be made at the time of the MTR that enhanced and allowed better-targeted Water Conservancy, LYLI and Agricultural Support Services activities and also contributed to significant improvement in the integrated (surface and groundwater) operational decision-making. The XUAR and prefecture governments are fully committed to the continuation and enhancement of the WASB models and this will ensure that future decision-making, as part of the Tarim Basin Master plan, is well founded.
4.2.6.2. The component also included the financing of a detailed environmental monitoring system for Bosten Lake and its environs. The data generated from these systems provided the knowledge base for the preparation of a comprehensive master plan for the Bosten Lake, including its natural catchment area. The high impact outcome was an integrated plan for the land and water resources (both surface and groundwater) implemented during the project, resulting in improved lake water quality, the re-establishment of historical levels of surface-water inflows and increased productivity of irrigated agriculture in the catchment area. The implementation of a well-field in an important irrigated area upstream of the lake and the conjunctive use of surface and groundwater resulted in a more secure water supply for irrigation and higher agricultural yields as well as increased inflows of water and reduced inflows of salt to the lake itself. Tube-wells now provide most of the water to the irrigated lands and low-salinity surface water that had been used for irrigation now flows into the lake. The benefits are derived from a lowered water-table that decreased water logging and salinization which previously had contributed to low yields and high non-beneficial evapo-transporation. Eleven similar well-fields were implemented with similar beneficial results in other parts of the project.
4.2.7 Institutional Development (US$17.5 m). 4.2.7.1 The component, which included SIDD/WUA development, applied Research and Development (R&D), special studies and training and technical assistance, was fully completed and implemented in a highly satisfactory manner. The main institutional development activities centered on the establishment of pilot SIDDs and a pilot Land and Water Management Plan (LWMP), both central to the “bottom-up” strategy for basin-wide institutional reforms. The SIDD model included the establishment of WUAs at the lower level of irrigation system management by farmers and the establishment of Water Supply Corporations (WSCs) for the larger water delivery systems. A fundamental tenet of the concept is that farmers should take responsibility for operating and maintaining the tertiary irrigation systems within their designated area of responsibility and the WUA leaders are elected by the farmers themselves. During project implementation, 15 successful pilot or demonstration WUAs and one successful WSC with its cluster of 19 WUAs was established. However, although the activities under the project were relatively modest they were very successful. The experience gained was so rich that the XUAR government took a decision to implement the SIDD/WUA concept throughout the Region. As a result, an additional 208 WUAs were established within the project area, a further 1,325 in the Tarim River Basin and 5,255 throughout the Region.
4.2.7.2 The program for the formation and fostering of WUAs significantly enhanced and complemented a separate regional program for Household Water Supply System (HHWS) aimed at improving water supply, water measurement and water charges at the household level. The establishment of WUAs meant that the HHWS could be focused at the more practical level of the WUA instead of the problematic and logistically difficult individual household. This allowed the fundamental change away from area-based
- 7 - water charges to volumetric charges that resulted in: (i) a significant reduction in water use by farmers; (ii) corresponding increases in water use productivity; (iii) the right incentives for farmers to invest in land-leveling, on-farm water management practices, tree crops and improved inputs (such as better seed and fertilizer); and (iv) improved transparency, reliability and equity of water distribution and of the water charges process.
4.2.7.3 The 15 “mature” WUAs at the center of the project are operating smoothly and detailed M&E shows clearly the benefits: (i) considerable water savings (gross water use was reduced by 16.8% from 1,149cum/mu to 956 cum/mu); (ii) through the introduction of volumetric charges, annual water fees paid by farmers were reduced by 24.2% from Y36/mu to Y27.3/mu; (iii) an increase of 42.6% in water productivity from Y0.82/m3 to Y1.27/m3; and (iv) increased annual production value/mu (from Y950 to Y1,127). In addition, WUAs provided hard to quantify benefits such as improved dispute resolution processes, transparency, reliability and equity of water distribution, and reduced labor inputs in managing irrigation on-farm. These benefits particularly favored women because of their close involvement in farming activities.
4.2.7.4 The upstream WSCs were more difficult to implement for a variety of reasons, including (i) a lack of financial viability because water charges were set too low; (ii) a lack of management autonomy, and complicated and fragmented personnel structures; and (iii) administrative management issues because the water management stations that would become the WSCs are government organizations within the County and Township Water Bureaus. It was decided during the MTR that it was not feasible to move forward with WSCs, given these issues, and that emphasis should be given to concentrating and expanding the WUA-related activities.
4.2.7.5 In Aksu Prefecture, however, a WSC with its 19 clustered WUAs was successfully established because it brought together and provided a “community of common concern” with a mechanism to focus on finding a solution to local problems of excessive water use; seasonal shortages of water; low-value/low-productivity agriculture resulting from poor land management practices; salinization and high groundwater; poor drainage; and a deteriorated downstream environment in the mid-Tarim River. Assistance from the AusAID grant was used very effectively to assist the community to find solutions to its complex set of problems. A LWMP, with a number of structural and nonstructural activities was developed, including the consideration and evaluation of different options for saving water, increasing farmer incomes and improving both the immediate irrigation area and downstream environments.
4.2.7.6 The LWMP adopted is an integrated set of actions that are the most cost-effective measures, divided into ten action areas: (i) canal rehabilitation and lining; (ii) water management to alleviate spring drought; (iii) whole-farm planning and land leveling; (iv) winter irrigation management; (v) water savings for irrigation; (vi) change of cropping patterns; (vii) water-table management and drainage; (viii) environmental protection; (ix) nonstructural measures to improve water management; and (x) further scientific studies.
4.2.7.7 Because the LWMP process was only completed near the end of the project, only part of the plan was implemented under the project. Awaiti County in Aksu Prefecture has officially adopted the plan and is working to find sources of financing to implement it through existing government programs and (perhaps) additional AusAID assistance.
4.2.7.8 One of the most significant conclusions from the LWMP process was that probably the most cost-effective measure for saving water and increasing crop yields is laser-guided land-leveling. The project supported the purchase of one large set of laser-guided land leveling equipment to demonstrate the
- 8 - technology. The analysis of the pilot conducted in Fengshou Irrigation Area in Awaiti County clearly shows the many and significant benefits of laser-guided land-leveling. These include: significantly improved accuracy and reliability and much lower unit costs of laser leveling compared to leveling by the traditional bulldozer (57% cost reduction); decreased water use (average of 20%) which also means cost-savings to farmers were volumetric charges are in place; increased productivity yields (cotton +16.8% and wheat +34%) and hence farm income ; increased efficiency of fertilizer use; increased land area utilization because of the elimination of farm-level canals and drains; significant time and labor savings with the irrigation period reduced from 5 to 4 days and the labor required for each irrigation reduced from 28 person-days to just two. Generally, this labor reduction benefits women the most.
4.2.8 Tarim Basin Water Resources Commission Support (US$12.7 m). This key component was implemented through two sub-components, both with highly satisfactory outcomes.
4.2.8.1 The Tarim Basin Water Resources Commission (US$3.5 million) This sub-component was central to the overall “top-down” institutional reforms achieved under the project, particularly relating to the second PDO. The objective was to enhance and strengthen the capacity of the fledgling TBWRC (established under the Tarim Basin I project) into a vital institution that could effectively and efficiently carry out its river basin management responsibilities for the planning, policy setting and overall management of the water and related natural resources of the Basin.
4.2.8.2 In January 1992, the XUAR government established the Tarim Basin Management Committee and the Tarim Basin Management Bureau (TBMB) under the Tarim Basin I Project. Although these institutions began to carry out certain functions of water resources management, there was a clear need identified to further strengthen the capacity under this project. During preparation of Tarim II, the XUAR People's Congress passed the Regulations for Tarim Basin Water Resources Management which established the TBWRC. During implementation, major efforts (supported by the AusAID grant assistance) were made to strengthen the TBWRC through the establishment of a Standing Committee (SC), an Executive Committee (EC), an Executive Office (EO), the TBMB, a Coordination Committee (CC) and two Irrigation Committees (ICs). Annex 8 provides a detailed organization chart. The SC and EC of the TBWRC are headed by the XUAR Vice Governor responsible for Agriculture and Water Resources. The EO is headed by the Director of the Regional Water Bureau. The TBMB, which is administratively accountable to the Regional Water Resources Bureau, is headed by its Deputy Director. These institutional arrangements developed, tested and made workable under the project and were made permanent when, in March 2005, the revised Tarim Basin Management Regulations were passed by XUAR People's Congress.
4.2.8.3 The main purpose of the TBWRC is to manage in a sustainable manner the water resources within the basin and to ensure the rational and equitable development, use and allocation of water resources, including water for the environment. Of particular importance is ensuring the delivery of water each year to the “Green Corridor” (See map). During project implementation, starting in 2000, the SC met at least once each year to establish water quotas for each sub-basin and for the Green Corridor and to make other principal decisions. These meetings are mandated in the current Regulations. For 2000 and 2001, the quotas were not completely met because of technical and administrative difficulties, but beginning in 2002 the quotas have been fully met each year and the procedures and mechanisms are in place to ensure that they will continue to be met each year in the future. Starting in 2000, six separate water deliveries have been made to the lower river “Green Corridor” totaling 1.7 BCM. The terminal lake systems at Taitema, previously a dust bowl with no water flowing to the system for 30 years, reached a maximum area of 200 km2. The increased river flows and the reinstatement of the lake system have resulted in the water table rising between 3.2 m and 12.6 m in the lower river reach. The mineral content of the ground-water has
- 9 - improved dramatically, from 4-5 g/l to 2-3 g/l. The trees, shrubs and grasslands have been revitalized on both sides of the river providing food, shelter and water for wildlife and people. The impact is that the lower river has seen a return of 25 species of native birds, amphibians, reptiles and 11 species of fish. Other wildlife, such as red deer, have also returned. An analysis of samples of tree rings taken along the lower river and at various distances from the main course show clearly the impact of the environmental flows on the revitalized growth of trees. From the year 2000 onwards, when environmental releases commenced, the native trees showed a dramatic increase in growth.
4.2.8.4 The sub-component also financed the construction of 29 water quality and quantity measurement stations, including monitoring equipment, a research monitoring and dispatch center, field office establishment in each prefecture, TA, training and study tours, modeling, Geographical Information System (GIS), remote sensing and river morphology activities.
4.2.8.5 Tarim River Works (US$ 9.2 m) The sub-component was completed in a highly satisfactory manner also. The sub-component financed activities on the middle reaches of the river, including 325 km of river training works and flood control levees. Also included were 27 ecological and water control structures in the levee system that allowed the rationalization of the number and location of river diversion points. At the MTR, and based on detailed studies, a decision was taken by the XUAR government and supported by the Bank, not to fund the construction of the Louhuluke reservoir for economic and technical reasons. Funds were reallocated within the sub-component to carry out additional river levee construction.
4.2.9 Regional Management (US$3.0 m).
4.2.9.1 This component was, implemented satisfactorily. It supported the development, testing and installation of a complete Management Information System (MIS) for the project. In the early stages, development was considerably delayed because, as designed, the MIS was too complex and the initial objective of designing a system for real time management of project data was unrealistic. In addition, the development of an expensive and dedicated communications system (fiber optical cable) was problematic. At the MTR, the original approach was assessed as being too ambitious and a modified and simplified approach that was more effective and less expensive was adopted. This modified approach included using the internet as the communications medium in place of the dedicated system. The MIS was completed and fully functional by the end of 2003 and fulfilled its intended purpose.
4.2.9.2 Monitoring and Evaluation (M&E) The component also included the project M&E. The responsibility for this function was assigned to the Planning Divisions of each level of PMOs. The annual monitoring and evaluation of the key performance indicators was carried out by an independent third party, the Xinjiang Agricultural University School of Economics and Management. This arrangement produced high quality annual reports and the same group produced the final M&E assessment for the borrower’s completion report.
4.3 Net Present Value/Economic rate of return:
The economic rate of return (ERR) for the overall project has been recalculated at completion, based on the major benefits generated from the Land Reclamation component, which increased irrigated agricultural production on an area of 41,458 ha and from the LYLI component covering 123,373 ha resulting in increased productivity of major crops (cotton, wheat, etc.) and from diversification to higher-value crops. The recalculated ERR is 18.6% compared to 14.3% estimated at appraisal. The Net Present Value (NPV) achieved was Y675.2 million at completion compared to the appraisal estimate of Y410.85 million. The
- 10 - major difference between the economic analyses carried out at appraisal and presented in the Project Appraisal Document (PAD) and that done at completion is that the appraisal under-estimated the scale of diversification into higher-value agricultural production and also the assessment of increases in major crop productivity. These higher benefits were offset to a degree by lower economic costs at ICR compared to appraisal because of China's entry into the WTO.
4.4 Financial rate of return:
In spite of a significant downturn in cotton, wheat and other prices that had a major impact on the project in the first and second years, with a corresponding reduction in house-hold incomes, the Financial Rate of Return (FRR) for the overall project at completion was 15.6%. The PAD assessment (16.9%) was made based on market prices prior to China entering the WTO and included allowances for the distortions in the market at the time. At ICR, with China in the WTO, the prices used reflected more accurately undistorted international market prices and generally, the financial prices at this time were lower than those at appraisal.
4.5 Institutional development impact:
4.5.1 Because of the depth and complexity of institutional development and reform achieved under the project, the impact is assessed as very high. The outcomes achieved provide an example of best practice of an institutional model for IWRM for an intra-provincial river basin and sets a national precedent in China. Furthermore, the principles developed and employed, particularly as they relate to the legal and institutional framework issues and the strategic approach adopted for the institutional development and capacity building, can also provide valuable guidance for those setting up or enhancing river basin institutional and management arrangements in any river basin world-wide.
4.5.2 Integrated water resources planning, allocation and management have been fully achieved through an integrated “top-down” and “bottom-up” implementation strategy. This outstanding achievement clearly demonstrates that with such a strategic approach it is possible to develop sustainable IWRM. The “top-down” aspects included: (i) establishing policies, laws, organizations, and regulations for managing water; (ii) defining the availability of water and determining broad water allocations within river basins and aquifers for different sectors and political administrative entities; (iii) setting water quality standards; and (iv) establishing an effective forum for cross-sectoral cooperation and coordination.
The integrated “bottom-up” approach centered on the participation and empowerment of water users and included: (i) educating and mobilizing water users, as well as incorporating their views into the planning and management processes; (ii) involving more participation at the local government level, establishing more ownership, accountability and contractual relationships; (iii) providing incentives and know-how to farmers for improving water-use efficiency and water conservation in conjunction with the water users and enhancing relevant agricultural support services; and (iv) defining rights and obligations in terms of water rights and permissible discharges and the system for coordinating, regulating and controlling stakeholder actions.
4.5.3 Sustainability of the institutional reforms is considered to be highly likely because the enhancement, empowerment and transformation of the TBWRC into a consultative and participatory river basin management organization involves all key stakeholder groups in decision making. At the core of the TBWRC’s ability to monitor and control water extraction and ensure environmental flows are the strong
- 11 - policy and legal frameworks developed as part of the project. These measures include the Regional Water Policy Statement and amended water law derived from the revised National Water Law and the adoption of the new Tarim Basin regulations. The allocation and management of the water resources of the basin is effectively done through the establishment and monitoring of an equitable and transparent annual water quota system. This system is strongly enforced through an annual process of sanction and reward and by daily control, monitoring and enforcement at key measuring structures under the management control of the TBMB.
5. Major Factors Affecting Implementation and Outcome 5.1 Factors outside the control of government or implementing agency:
Two force majeure events had an impact on project implementation: the national emergency in 2003 caused by outbreak of Severe Acute Respiratory Syndrome (SARS) outbreak; and an earthquake in Kashigar in 2002. The impact of both was to curtail project supervision and the provision of technical assistance and to slow down project implementation. Despite these events, project staff overcame the delays caused and implementation was completed on time. In the first half of the project implementation period, international commodity prices, especially for wheat and cotton were depressed, threatening the financial viability of farmers.
5.2 Factors generally subject to government control:
5.2.1 One of the key success factors was the regional government’s strong and consistent commitment and support to the project at all levels (Regional, Prefecture, County and Township). Of particular note is the continuous and consistent level of political leadership and the establishment of the enabling environment through changes to regional water law and water policy. Xinjiang was the first region (province) to revise its water law consistent with the revised National Water Law and to issue supporting policy statements (2003). The Regional government also revised and passed the specific new Regulations that gives the TBWRC its legal standing and is a key to the sustainability of the institutional development achieved under the project. The high level of government commitment throughout implementation was also evident in the selection of top quality, highly competent, responsible and accountable staff at all project management levels. A key success factor was also the government’s selection of the lead agency for the project, which was able to provided very effective horizontal and vertical coordination across departments and government and administrative boundaries. Timely project implementation was made possible in large part because sufficient counterpart funds were provided at all levels.
5.2.2 When the project implementation performance was rated unsatisfactory in 2000, the government took swift and decisive action to remedy the situation and within six months the project implementation performance was rated satisfactory.
5.2.3 The government took quick action in response to depressed staple commodity prices that affected farm incomes in the early part of the project by encouraging and promoting the diversification of agriculture into higher-value commodities. This strategic action helped to increase household incomes, particularly for the poorest households, and to improve the economic impact of the project.
5.2.3 Moving to a volumetric irrigation water tariff by incorporating the HHWS with the WUAs further improved irrigation water-use efficiency. Sustainability of arrangements in this regard introduced under the project have been enhanced by the establishment of WUA leading groups at the center and at each prefecture in the Tarim Basin and throughout Xinjiang.
- 12 - 5.3 Factors generally subject to implementing agency control:
5.3.1 Project management. The project management arrangements were highly effective and efficient and contributed tremendously to the successful project outcomes. The transparency and accountability of the project management systems adopted by the Project Management Offices (PMOs) at different levels instilled and enforced discipline and good management practices in the use of project funds. The rigorous project M&E was effective because of the establishment of excellent baseline data covering all components. The PMOs at all levels more than adequately resourced the M&E activity throughout the project and this resulted in the ability to complete an outstanding process of the measurement of achievements and evaluation of the project impacts. In particular, international technical assistance and study tours were used very effectively and with high impact by the PMOs to acquire modern, state-of-the-art knowledge and skills, and technical and management tools that not only added to project implementation efficiency but also built the institutional capacity and developed individual staff skills. The outcomes are seen in the many project initiatives that have been mainstreamed in regional water projects and programs. Some of these significant TA interventions include ET management including the use of remote sensing, community-driven LWMP processes, WUA development, WASB modeling, the application of IPM, river basin planning and management, environmental assessment, the use of geo-membrane as a part of canal lining, and laser-guided land grading techniques for irrigation land improvement.
5.3.2 Procurement and Disbursement. Early problems with the lack of knowledge and understanding of Bank procurement and disbursement procedures at all PMO levels caused delays, particularly with respect to International Competitive Bidding (ICB) processes. These initial problems were solved by providing additional training on Bank procurement and disbursement methods and guidelines.
5.3.3 Quality control. The project introduced and supported, through training and equipment procurement, a complete system of quality control (QC) and checking at every level. An individual “responsibility and accountability” system was developed that assigned QC at construction sites to individuals and made them accountable. The effectiveness of these systems was evident in the generally very high standard of works constructed and in the award to Prefectures and Counties of numerous Regional prizes for works quality. In addition, a truly independent, multi-skilled Domestic Expert Panel (DEP) was established as a government initiative that added considerable value to project implementation quality and problem-solving through its thorough, twice-yearly inspections and reports on project activities.
5.3.4 Compliance with Loan and Credit Agreements. The Borrower and the Project executing agencies and the PMOs all complied with the legal agreements with one exception. A requirement of the DCA was that where civil works involved involuntary resettlement, the PPMO was to prepare an RAP acceptable to the Bank before construction activity commenced. The Aksu PPMO began construction of the Laodahe main canal in 1998 without an approved RAP. A thematic Bank supervision mission was sent to the site in 2000 and requested that a RAP be prepared immediately, even though most of the PAPs had been physically resettled. The RAP was subsequently approved by the Bank and implemented very well by the PPMO. The impact on the livelihoods and incomes of the PAPs was assessed in December 2001 and again by an independent assessment in October 2004 and was rated as successful. (Details at annex 9)
5.4 Costs and financing:
The final cost of the project was US$287.8million, about 5.6% above the appraisal estimate of US $272.6 million. Of the total project cost, the IBRD and IDA loan/credit amount was US $150 million. A total of US $2.67 million was cancelled during the course of the project, making the total loan/credit amount
- 13 - available of $147.33 million. The total amount disbursed was US $146.7 million, or 99.6% of the loan and credit. The government provided counterpart funds and farmers' contributions totaling US $141.1 million. Detailed project costs and financing information are presented in Annex 2.
6. Sustainability 6.1 Rationale for sustainability rating:
The sustainability of the project is rated as being highly likely for the following reasons:
(i) The institutional arrangements established under the project for river basin management include effective consultative mechanisms that allow the involvement of all stakeholders in decision-making in an equitable and transparent way. The effectiveness of these mechanisms can be measured by the complete change of mind set of the stakeholder groups and the understanding of their respective roles and responsibilities. There is now a real sense of community pride in “their river basin” and a clear understanding of the importance of managing water as the single most precious natural resource in a desert environment.
(ii) New institutional arrangements, strongly supported by government through revised regional water law, policy and the regulatory environment.
(iii) A commitment by the XUAR government to the expansion of the formation and fostering of WUA, combined with HHWS and the creation of high-profile WUA Leading Groups at the Regional center and in each Prefecture. A project funded by United Kingdom's Department of International Development (DFID) will build on the WUA successes under the project.
(iv) Farmer-managed WUAs are sustainable: (a) because the farmers are highly supportive and enthusiastic and have embraced the WUA concept, and (b) because of the considerable benefits of membership, including transparency, equity and reduced costs for members.
(v) The development and capacity building of staff and the enhancement of public services under the project will continue to extend their impact in many development activities in Xinjiang and will be of growing value for other governments in China. Some of the project’s proven concepts and technical, environmental and social activities have already been incorporated into other regional and nationally-funded projects and programs in Xinjiang.
(vi) Financially-viable farmers in the project area, who are beginning to exploit their competitive edge regionally and nationally and to position themselves as part of the Chinese entry into the WTO. This aspect has been assisted by the uptake of IPM activities leading to the sustainable cropping of cotton in particular.
6.2 Transition arrangement to regular operations:
6.1.2 With full completion of the project as scheduled, and particularly the institutional development arrangements at the level of the TBWRC and the WUAs, the transition arrangements to regular operations have been completed and this is reflected in strong likelihood of project sustainability. The passing of the revised Tarim Basin regulations by the Regional People’s Congress in March 2005 was the last step in the transition.
- 14 - ``
7. Bank and Borrower Performance Bank 7.1 Lending:
The Bank’s performance was highly satisfactory. The project design reflected both the Bank’s Water Resources Management (WRM) strategies and those of the XUAR government. However, while the objectives for the long-term management of Tarim River Basin articulated by the regional government at the beginning of project preparation were sound, the proposed approach was too traditional and unworkable. The Bank brought to bear its world-wide expertise during preparation and the project, as designed, reflected the same objectives but incorporated an innovative and non- traditional approach to solving the complex water and environmental problems. The Bank’s input in terms of staff and skills mix was superior. Between identification and appraisal, five missions were mobilized consisting of multi-disciplinary teams of experts in the fields of Irrigation Economics, Water Resources Management, Drainage Engineering, Anthropology, Environment, Institutional and Financial Management, River Basin Management, Water Administration/SIDD/Farmer Organization and Irrigation Engineering.
7.2 Supervision:
Supervision was proactive and thirteen supervision mission were carried out, using the right mix of expertise depending on the implementation issues at the particular time. Supervision and implementation effectiveness were further enhanced by the use of a very effective technical assistance package financed under an AusAID grant. Where possible, the mobilization of experts under this TA coincided with supervision missions. Timely, detailed aide memoires allowed early effective action to be taken and this added considerable value to project supervision effectiveness. The supervision strategy employed an efficient combination of the TTL/Co-TTL (based in Washington and Beijing, respectively) with clear roles and responsibilities and the ability to interact with and be responsive to the daily needs with the client.
7.3 Overall Bank performance:
Based on the above, the overall Bank performance is rated as highly satisfactory. The total cost of processing the project and carrying out supervision was $1,191,913 equal to 0.8% of the loan/credit and 0.4% of total project costs.
Borrower 7.4 Preparation:
7.4.1 The borrower's performance in project preparation is rated as highly satisfactory. The borrower was well organized and committed adequate resources to the preparation effort. This resulted in the innovative and complex project being prepared, appraised and negotiated in just 17 months. The project preparation work adopted a fully participatory approach focused at the river basin-level and covered major technical, institutional, economic, procurement, technical (dam safety), environmental and social safeguards, financial and project management aspects. The views of many key stakeholders at the regional, prefecture, county and township levels were all reflected in the final project design.
7.5 Government implementation performance:
- 15 - 7.5.1 The government’s implementation performance is rated as highly satisfactory for the reasons set out in section 5.2 above.
7.6 Implementing Agency:
The performance of the implementation agency is rated highly satisfactory for the reasons set out in section 5.3 above. The RPMO was well lead, well resourced, highly skilled, competent and stable as were the PMOs at Prefecture and County levels. The RPMO was able to bring about effective coordination across agencies, technical, administrative and political boundaries. The very pro-active, hands-on management approach by the RPMO adopted for most of the project ensured smooth implementation and the ability to identify and solve problems early. This enabled the implementation of this technically complex and geographically wide-spread project to be completed on time and on budget with a very high level of impact.
In the early part of implementation (2000), the Bank rated implementation progress as unsatisfactory because of problems getting the RPMO to act on recommendations in the aide memoire. This brought about swift action by the XUAR government and corrective action by the RPMO and from this point on implementation proceeded satisfactorily and then highly satisfactorily.
7.7 Overall Borrower performance:
Consistent with comments in Section 5 and paragraph 7.4-7.6 above, the overall performance of the borrower is rated highly satisfactory.
8. Lessons Learned
8.1.1 Based on the ICR review and continuous assessment of the project over the course of implementation, the following lessons can be documented and used in similar situations as appropriate: l Technical: (i) investment in canal lining as a water-saving measure should incorporate the use of at least 0.5mm thick geo-membrane (with welded joints) under conventional lining materials to ensure maximum long-term seepage control; (ii) the use of ET management and remote sensing is a very effective way to assess and manage water resources, both surface and groundwater, and to identify “real” water savings in water-short river basins; (iii) the community-driven LWMP process developed under the project provides an excellent framework to address, in both structural and non-structural terms, the complex water supply, drainage, salinity, high groundwater, agricultural and cropping systems, land management and environmental issues facing typical irrigation systems world wide; (iv) changing to a volumetric tariff system for irrigation water charges changes the incentive basis for farmers and is perhaps the single most important step to bring about water-savings; closely aligned with water-saving measures are the benefits brought about by laser-guided land leveling of land for irrigation; and (vi) any water resource project that has "bottom-up" reforms involving irrigation farmers should always have an agricultural support services component l Institutional Reforms – IWRM: Any institutional reform process will only be delivered with strong political support and the right enabling policy and legal framework. The change process to bring about inclusive river basin based IWRM must include both integrated “bottom-up” and “top-down”
- 16 - measures. l Natural Resources and Environmental Management: (i) development of a mechanism for defining the rights to water, including the in-stream environmental needs, and effective monitoring systems will drive sensible investment in water-saving measures, conjunctive use of surface and groundwater, water quality improvements and drainage; (ii) investment early in modern and effective data collection system and computer models that will allow sound analysis are fundamental to making informed, knowledge-based decisions. l Social: River basin management arrangements should be consultative and include representation from all stakeholder groups. The establishment of WUAs is a fundamental part of institutional reform as it provides a focal point for communication and understanding by the farmers of their individual and collective responsibilities in efficiently using and managing water for irrigation. l Project Management: (i) where multi-departments are involved in a project, identifying a lead agency that can effectively coordinate all the players, have sufficient political influence and minimize vested interest will have a big influence on project implementation performance and outcomes; (ii) there is no substitute for the preparation of good baseline data and a commitment to a well-designed and resourced M&E activity; and (iii) success of project elements and the project itself will be determined to a large part through the identification and cultivation of “champions for change” at all levels.
9. Partner Comments (a) Borrower/implementing agency: Detailed comments on the draft ICR were received and included in Annex 10 verbatim. In summary, the borrower agreed that the draft ICR represented a fair, reasonable and objective assessment and evaluation of the overall achievement of the PDOs and that the ratings given by the Bank to each project component and to their performance are appropriate. The borrower assessed the Bank's performance as highly satisfactory. (b) Cofinanciers:
None. (c) Other partners (NGOs/private sector):
Comments from AusAID
AusAID was very proud to have played an important and sometimes pivotal role in the highly successful project outcomes. The contribution and impact of AusAID's assistance is reflected throughout the ICR. For the record, the project was supported by AusAID technical assistance, through a trust fund in the amount of about US$2.0 million. The technical assistance, which employed mostly Australian expertise in river basin institutional development, IPM and LWMP, was designed, implemented and managed by the Bank, as an integral part of the project and clearly contributed significantly to the overall achievement of the project objectives and the high level of impact . The cooperation between AusAID and the Bank is seen as a best practice example of how well designed, implemented and managed technical assistance can enhance project outcomes.
10. Additional Information A list of all significant research activities completed as part of the Agricultural Support Services and Environmental Protection and Monitoring components are shown in Annex 11
- 17 - Annex 1. Key Performance Indicators/Log Frame Matrix
Outcome/Impact Indicators
PDO PAD Performance Target or Objective Actual at Completion Indicator Statement in PAD Dec 2004 Oct 1998 Y/capita net Y/capita net 1. Increase Per capita incomes of Low 802 1328 incomes of poor project beneficiaries income farmers increased to specified HH levels Medium 1235 2344 income HH High 1888 5439 income HH 2. Establish Consumptive use Establish and enforce water Water quota system now an integral part mechanisms for allocations established use quotas for TBWRC. of the operations of the TBWRC, sustainable use, and enforced supported by updated regulations (2005) development and an institutional model that ensures management of effective monitoring and enforcement. water. 3. Partially Volume of water No annual volume was About 1.7 BCM of water was delivered restore green delivered below pre-established because to the "Green Corridor" - May 2000 corridor Daxihaizi Reservoir there was no precedent in to Dec 2004. This exceeded all China for an expectations environmental water allocation Other Impacts Incremental Grain 274,000 tons 359,271 tons Production Incremental Cotton 43,000 tons 67,459 tons Production
Output Indicators:
Project Component/ Activity Unit PAD Formal Actual % Of Estimated MTR MTR revised Estimate 1. Water Conservancy Headworks No. 3 4 4 100 Trunk/main canals No./km 37/739 65/1003 65/1009 100 Main Drains km 848 1093 1092 100 Reservoirs and live storage No./mm3 2/98 1/98 1/98 100 Wellfields and well numbers No./No. 14/696 14/665 12/572 86 Pumping stations and capacity No./ m3/s 1/2.5 1/2.5 1/2.5 100 Transmission line km 276 88 88 100 Intake gates No. 28 27 24 89
- 18 - Dike strengthened km 150 325 325 100 Water resources monitoring spot No. 29 29 29 100 Buildings M2 3067 3067 100 2. Land Reclamation Land reclamation area Ha 75334 41424 41462 100 Lateral canal km 1230 983 973 99 Lined km 904 514 225 44 Field canal km 2885 1349 1102 82 Lined km 888 27 27 100 Structures No. 14758 7316 7838 107 Farm access roads km 2115 1455 1360 93 3. Low-yield Land Improvement Improvement area Ha 105334 128553 123373 96 Lateral canal km 1068 1708 1367 80 Lined km 494 510 510 100 Field canal km 2159 2347 2006 85 Lined km 454 64 64 100 Structures No. 4931 11890 13008 109 4. SIDD Development WSC General Company No. 6 0 1 100 Branch Company No. 2 0 0 100 Demo WUA No. 8 15 15 100 Additional WUAs 208 5. Agricultural Support Services Seed Production Base ha 6458 8346 8350 100 Seed Processing sqm 41441 26831 26800 99.9 Seed Testing Centers sqm 28808 33022 33000 99.9 AGR Extension Stations No. 40 46 46 100 Breeding Stations sqm 1280 2080 2070 99.5 Breeding Stock head 13580 17619 15233 86.5 Technical Training Center No. 8 7 7 100 Alfalfa production base ha 2000 2666 2627 98.5 6. Environmental Protection Economic Forestry ha 3014 14341 14340 100 Windbreaks ha 6503 4176 4180 100
- 19 - Annex 2. Project Costs and Financing
Project Cost by Component (in US$ million equivalent) Appraisal Actual/Latest Percentage of Estimate Estimate Appraisal Component US$ million US$ million A. Water Conservancy 106.40 116.80 109.8 B. Land Reclamation 53.50 35.80 66.9 C. Land Improvement 25.30 64.00 253 D. Agriculture Support Service 15.00 21.10 140.7 E. Environmental Protection & Monitoring 9.70 16.90 174.2 F. Institutional Development & Support 14.70 17.50 119 G. Tarim River Subproject 11.50 12.70 110.4 H. Regional Management 6.50 3.00 46.2
Total Baseline Cost 242.60 287.80 Physical Contingencies 13.40 0 Price Contingencies 16.60 0 Total Project Costs 272.60 287.80 Total Financing Required 272.60 287.80
- 20 - Project Costs by Procurement Arrangement (US$ million equivalent)
a/ Figures in parenthesis are the amounts to be financed by Bank loan. All final costs include contingencies. b/ Includes civil works and goods to be procured though national shopping, force account, consulting services, training, technical assistance services, etc.
Project Financing by Component (in US$ million equivalent) Percentage of Appraisal Component Appraisal Estimate Actual/Latest Estimate Bank Govt. CoF. Bank Govt. CoF. Bank Govt. CoF. A. Water Conservancy 70.50 49.80 58.70 58.10 83.3 116.7 B. Land Reclamation 27.80 32.90 16.20 19.60 58.3 59.6 C. Land Improvement 11.70 17.40 28.70 35.30 245.3 202.9 D. Agriculture Support 12.60 4.20 14.30 6.80 113.5 161.9 Services E. Environmental 7.60 3.20 12.60 4.30 165.8 134.4 Protection & Monitoring F. Institutional 7.70 7.50 7.20 10.30 93.5 137.3 Development & Support G. Tarim River 6.80 6.00 6.10 6.60 89.7 110.0 Sub-project H. Region Management 5.30 1.60 2.80 0.20 52.8 12.5 Total 150.00 122.60 146.60 141.20 97.7 115.2
- 21 - Annex 3. Economic Costs and Benefits Economic Costs and Benefits
The major benefits of the project were generated by the following: (a) water conservation; (b) land reclamation; (c) low yield land improvement; (d)agricultural support services; (e)environmental improvements; and (f) social attributes.
(a) Water Conservation l The Xinir Dam was the only new dam constructed under the project and is a multipurpose structure. When the reservoir reaches its designed capacity it will provide supplementary irrigation to about 6,000 ha of farmland with estimated production increases of between 10% and 15%. The reservoir also is designed for regulating storage of water for the Tiemenguan and Shihuiyao hydro-stations. The dam also plays a pivotal role in re-regulating water to the lower river. l Canal lining has increased water-use efficiency from about 60% to about 95%, and previous water losses have been reduced significantly. Gross water use has been reduced from an average of 14,310 m3/ha to 11,010m3/ha.(-23%) l Drainage canals constructed under the project helped in reducing soil salinization and improving agricultural productivity. l Well fields constructed under the project provided 0.27 BCM of irrigation water and a similar amount of surface water was released for environmental purposes to the lower Tarim River ‘Green Corridor’. Additionally, establishment of the well fields has also played a role in reducing Non-beneficial Evapo-transpiration (NBET) or low efficiency Evapo-transporation and in providing much-needed irrigation water in drought or prolonged dry periods when surface water was not available.
(b) Land Reclamation The total land reclamation implemented in the five project areas from 1998 to 2003 was 41,458.5 ha. As a result, the accumulated production increase of the major crops in the six years from 1998 to 2004 was 220, 000 tons for wheat, 82,000 tons for cotton, and 116,000 tons for maize.
(c) Low Yield Land Improvement From 1998 to 2003, some 123,101.6 ha of low yield land was improved. Through soil improvement, the productivity of this area increased and stabilized. Compared to the base year of 1998, the yield of cotton increased by 47% (1,520 kg/ha from 1,030 kg/ha) and that of wheat increased by 48% (6,053 kg/ha from 4,069 kg/ha). Diversification into higher-value crops was significant. The area planted to vegetable, melons/water melons, alfalfa and fruit trees increased from 82,700 ha in 1998 to 230,600 ha in 2003.
(d) Agricultural Support Services Through the effective implementation of the agricultural support services component, 97% of the project area receives a supply of fine seed and 85% of the area planted to cotton utilizes IPM as part of the cropping system.
(e) Environmental Improvements From 2000 to 2004, six environmental water deliveries were made to the ‘Green Corridor’ in the downstream reaches of the Tarim River from the most downstream Daxihaizhi reservoir, totalling 1.7 BCM (See map). Consequently, vegetation along both banks of the downstream Tarim River has
- 22 - recovered and the previously dying poplar diversifolia trees there are now reviving. Meanwhile, with food, water, shelter and habitat conditions restored by environmental water deliveries, 11 species of fish, 25 species of birds and 7 species of amphibians, reptiles and other animals were counted in the downstream area according to data from survey. The terminal lake system at Taitema, which remained dry for 30 years prior to the start of environmental water releases, filled to a maximal water surface area of more than 200 km2. These benefits have not been quantified in this analysis.
(f) Social Attributes Although they are not quantifiable, social benefits resulting from the project activities are important to record: (i) The number of farmer households having access to a safe surface drinking water supply increased by 63.2%, and those from groundwater wells increased by 33.4%; (ii) Through establishing WUAs, farmers’ awareness of participatory irrigation management has been raised and their sense of water-saving has been increased through introduction of scientific irrigation and water measurement facilities. (iii) Women’s social status has been upgraded and their employment opportunities have been increased while on-farm labor intensity has been reduced.
Details of the economic and financial analysis, including crop budgets and farm models, are available in the project files.
The main financial and economic indicators for each component and the project overall are summarized below:
Income Analysis of Typical Farm Households
Under the project, track analyses of the sampled 1,100 farmer households in 22 project counties were conducted for five consecutive years from 1998 to 2003. Fifty typical farmer households were selected in each of the counties with the ratio of high, medium and low income being 3:4:3. For “with” and “without” project situations, the impact on farmers’ incomes was analyzed using data obtained from surveys of the typical farmer households in Aksu prefecture to track the project’s impact on poverty alleviation.
- 23 - 40000 35000 30000 25000 20000 15000 10000 5000 0 1998 1999 2000 2001 2002 2003 High Income Medium Income low Income
Figure 3.1 Changes of Income of Typical Farmer Households in High, Medium and Low Income Groups
Figure 3.1 indicates that in 1998 when the project commenced the income of the typical farmer households was relatively high. However, due to low grain and cotton prices in China over the period from 1999 to 2000, income of all the typical farmer households in the project area fell to the lowest level. Starting from 2001, along with completion of some of the project's investment, farmer households in the project area began to benefit gradually from the project. Meanwhile, rising market prices of the major crops, including grain and cotton, together with reinforced agricultural subsidies from the central government resulted in rapid income growth of the typical farmer households.
While general income growth occurred for all the typical households in the three groups (high, medium and low), the income increase in percentage terms of the poorest farmer households group exceeded that of the medium income group, and at the end of 2003 the low income group was fast approaching the medium income group. This indicates that while the project brought benefits to all farmer households throughout the project areas, it had greater impact on farmer households with low income and, therefore, strongly supported the poverty alleviation objectives of the project.
40000
30000
20000
10000
0 1998 1999 2000 2001 2002 2003 Planting Forestry Animal husbandary Other
Figure 3.2 Income Structure of Farmer Households in High Income Group
- 24 - 40000
35000 30000 25000 20000 15000 10000 5000 0 1998 1999 2000 2001 2002 2003
Planting Forestry Animal husbandary Other
Figure 3.3 Income Structure of Farmer Households in Medium Income Group
40000
30000
20000
10000
0 1998 1999 2000 2001 2002 2003
Planting Forestry Animal husbandary Other
Figure 3.4 Income Structure of Typical Farmer Households in Low Income Group
The above figures 3.2, 3.3 and 3.4 indicates the contribution to house hold income from cropping in the high, medium and low income groups was around 80%. With full completion of the project, income from crops will further increase particularly from diversified fruit tree crops that will only reach full productivity over the next few years.
- 25 - Annex 4. Bank Inputs (a) Missions: Stage of Project Cycle No. of Persons and Specialty Performance Rating (e.g. 2 Economists, 1 FMS, etc.) Implementation Development Month/Year Count Specialty Progress Objective Identification/Preparation 09/15/1996 3 IRRIGATION ECONOMIST(1) WATER RESOURCES ENGIN (2) 11/25/1996 4 IRRIGATION ECONOMIST(1); WATER RESOURCES ENGIN(1); DRAINAGE ENGINEER (1); ANTHROPOLIGIST (1) 03/25/1997 2 IRRIGATION ECONOMIST(1); WATER RESOURCES ENGIN (1) 05/18/1997 11 WATER RESOUR. ENGIN. (2); IRRIGATION ECONOMIST(1); ENVIRONMENTAL SPEC. (1); ECONOMIST (1); INSTITUTIONAL/FINANCIAL SPEC. (1); ANTHROPOLOGIST; (1) REVIER BASIIN MGT. ENGINEER (1) WATER ADMINISTRATION /SIDD SPEC. (1); FARMER ORG. SPEC (1); DRAINAGE ENGIN (1)
Appraisal/Negotiation 02/15/1998 8 WATER RESOUR. ENGINEER (2); WATER RESOUR. MANAGEMENT SPEC. (1) IRRIGATION ENGIN. (1); ENVIRON.SPEC. (1); OPERATIONS OFFICER (1); DRAINAGE ENGINEER (1); FINANCIAL MANAGMENT SPEC. (1) Supervision
11/14/1998 7 WAT. RS. ENG. (CO-TTL) (2); S S FIN. MGT. SPEC. (1); PROCUREMENT SPEC. (2); DISBURSEMENT SPEC. (1); IPM SPEC. (1) 05/07/1999 6 CO-TTL WAT. RES. ENG. (2); S S
- 26 - AGRI./ENVIROMENTALIST (1); INSTITUTIONAL SPEC. (1); WAT. RES. MAN. SPEC. (1); AGRI./IPM SPEC. (1) 05/07/1999 4 CO-TTL WAT. RES. ENG. (2); S S ECONOMIST (1); INSTITUTIONAL SPEC. (1) 05/07/1999 4 CO-TTL WAT.RES.ENG. (2); S S ECONOMIST (1); INSTITUTIONAL SPEC. (1) 05/07/1999 3 CO-TTL (2); PROCUREMENT S S (1) 10/27/2000 3 CO-TTL - WAT. RES. ENG (2); U S PROCUREMENT SPECIALIST (1)
06/08/2001 8 TTL (1); ECONOMIST (2); S S IRRIGATION SPEC. (1); WATER RESOURCES SPEC. (1); SOCIAL SPEC. (1); CONSULTANT (1); INTERPRETER (1) 11/30/2001 6 TTL (1); WATER RESOURCES S S SPEC. (1); ECONOMIST (2); IRRIGATION SPEC (1); SOCIAL SPEC (1)
06/22/2002 9 TTL - WAT. RES. ENG. (1); S S WAT. RES. ENG. (1); ECONOMIST (1); FIN. MAN. SPEC. (1); PROCUREMENT SPEC. (1); INSTITUTIONAL SPEC. (1); IRRIGATION ENGINEER (1); REMOTE SENSING SPEC. (2) 11/30/2002 5 TEAM LEADER (1); WATER S S RESOURCES ENGINE (1); IRRIGATION ENGINEER (1); AGRICULTURAL SPECIALIS (1); PROCUREMENT SPECIALIST (1) 11/14/2003 3 CO-TTL WR ENGINEER (1); HS HS CO-TTL IRRIGATION SPEC (1); SIDD/WUA SPEC (1) 12/04/2004 4 WATER RESOURCES HS HS SPEC.(1); IRRIGATION ENGIN. (1); SOCIAL DEVL. SPEC. (1); AGRI. ECONOMIST (1) ICR 03/2005 4 IRRIGATION SPEC. (2); HS HS WATER RESOUR. SPEC
- 27 - (1)
(b) Staff:
Stage of Project Cycle Actual/Latest Estimate No. Staff weeks US$ ('000) Identification/Preparation 495.38 Appraisal/Negotiation Supervision 696.53 ICR Total 1191.91
- 28 - Annex 5. Ratings for Achievement of Objectives/Outputs of Components (H=High, SU=Substantial, M=Modest, N=Negligible, NA=Not Applicable) Rating Macro policies H SU M N NA Sector Policies H SU M N NA Physical H SU M N NA Financial H SU M N NA Institutional Development H SU M N NA Environmental H SU M N NA
Social Poverty Reduction H SU M N NA Gender H SU M N NA Other (Please specify) H SU M N NA Formation and fostering of WUAs. Social inclusion of RBM consultative arrangements Private sector development H SU M N NA Public sector management H SU M N NA Other (Please specify) H SU M N NA
- 29 - Annex 6. Ratings of Bank and Borrower Performance (HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HU=Highly Unsatisfactory)
6.1 Bank performance Rating Lending HS S U HU Supervision HS S U HU Overall HS S U HU
6.2 Borrower performance Rating Preparation HS S U HU Government implementation performance HS S U HU Implementation agency performance HS S U HU Overall HS S U HU
- 30 - Annex 7. List of Supporting Documents l Report on Thematic Unified Management and Institutions Construction in the Tarim River Basin , - dated March 2005 l Report of Completing the Project, - dated March 2005 l Work Plan 2005-2007, - dated November 2004 l Implementation Completion Report, - dated March 2005 l Thematic Report on Development of Self-Management Irrigation & Drainage District and Water User Associations, - dated March 2005 l Land and Water Management Plan - Fengshou Irrigation Area, Awati County, - dated November 2004 l Paper Collection of the International Workshop on Tarim River Basin Management, - dated June 2004 l Irrigated Water Resources Management of the Tarim Basin - dated December, 2004 l Final Mission Report - Integrated Pest Management Component, April/May 2001 to August/September 2003 l Resettlement Action Plan (Chinese) - dated October 2004 l Monitoring and Evaluation Report of Year 2003-2004 - dated March 2005 l Special Implementation Completion Report on the Agricultural Development l Project Implementation Plan (three volumes) - dated May 11, 1998
- 31 - Additional Annex 8. TBWRC Organization Responsibility and Consultative Arrangements
Notes;
1. Xinjiang Water Resources Bureau (XWRB). Is the regional government agency that has overall functionally responsible for all water resource development and management in the Region 2. Tarim Basin Water Resources Commission (TBWRC). Established in 1997. Headed by a Vice
- 32 - Governor of the XUAR government responsible for agricultural and water resources. Manages the WR within the Tarim River Basin and ensure rational and equitable allocation of water resources, including environment and consists of 4 parts, a SC, an EC, the EO and the TRMB. (details are set out below) 3. Standing Committee (SC) . Undertakes the strategic decisions on Basin wide comprehensive treatment and other issues. It reviews water allocation schemes, reviews the operational effectiveness of the TBMB and it’s interaction with all water users within the Basin. 4. Executive Committee (EC). Is headed by same Vice Governor. The EC meet at least once each year (as mandated in the Regulations) to establish water quotas for each sub-basin and for the “Green Corridor”, and to make other principal decisions relevant to the Commission. It acts for the full Commission when it is not in session and is responsible for and carries out policy and decision making in accordance with TBWRC/SC instructions. 5. Executive Office (EO). Headed by a Director of the Regional Water Bureau and is responsible for daily and routine liaison between the TBMB and the EC and other XUAR government departments. Basin Operations 6. Tarim Basin Management Bureau (TBMB) is headed by a Deputy Director of the Regional Water Resources Bureau and is therefore administratively accountable the XWRB. The TBMB is the operating arm and responsible for basin wide planning, allocation and water operations in accordance with the Regulations and decisions of the TBWRC and the EC from time to time. Consultative Mechanisms 7. Water Resources Coordination Committee (WRCC) meets several times a year and consists of Prefecture level Water Bureau chiefs. Involved in the detailed management and decision making at Basin level. 8. Irrigation District Committee x 2 (IDC). These committees have county level representation from the Irrigation Districts and in addition have 2 elected farmer members. The IDC are involved with TBMB staff in water operations involving planning and dispatching, generally on the basis of a 10 water ordering and delivery schedule and in accordance with annual quotas set by the TBWRC.
- 33 - Additional Annex 9. Implementation Management of Safeguard Issues
The PPMO dealt effectively with four key safeguard issues through action and mitigation plans as follows.
Environmental Impacts and Mitigation Measures (OP 4.01) The RPMO and the PPMOs instituted and implemented very effective measures to mitigate environmental impacts of the project. The successful mitigation strategy was based on the thorough Environmental Impact assessment done as part of project preparation. This assessment identified the potential impacts of the project across a wide range of environmental factors. The mitigation strategy was carried out around the three forms of potential impact judge as potentially significant. These where (i) impacts on water and salt balances in the sub-project areas and on the Tarim River as a whole; (ii) water quality impacts, particularly in relation to water quality of Bosten Lake and (iii) impacts on cotton pest numbers in the sub-project areas.
Involuntary Resettlement (OP4.30) 1. A Resettlement Policy Framework was prepared (in full compliance with OD 4.30) for the Tarim Basin II Project in 1998. It was found that involuntary resettlement was involved for the Laodahe Irrigation Canal Project in Aksu Prefecture only when a Thematic Supervision Mission was fielded in 2000. A Resettlement Action Plan (RAP) was immediately requested, even though most of the resettlement activities had been completed by then. The details of the resettlement were:
Key Factors RAP Implementation 1. Land Acquisition (mu) 1,387 1,387 2. House Demolition (sq.m) 856 856 3. No. of Households Relocated 4 4 4. No. of People Affected by Land Acquisition & Relocation 273 273 5. Total Resettlement Cost (Y million) 2.97 3.48
2. A Resettlement Completion Report (RCR) was submitted by the Aksu PMO in December 2001. An independent Resettlement Assessment Report (RAR) prepared by the Xinjiang Agriculture College in March 2002 showed that the income of the project affected people (PAP) had not been restored in 2001, due to the significant drop in markets prices for cotton and wheat and a decrease of the cultivated land. A second RAR was requested and submitted to the Bank in October 2004. This report showed clearly that the income and livelihood of the PAP have been greatly raised in the past two years after the 2,750 mu of low-yielding land were improved and distributed among the affected farmers combined with an upswing in commodity prices. The income of the PAPs is shown in the table below:
Year Income Per Capita 1999 before land acquisition Y995 2000, the year of land acquisition Y931 2001, the year after land acquisition Y750 2002 Y1,918 2003 Y2,584
3. The resettlement implementation was successful and the local people were satisfied. The institutional capacity for resettlement implementation was built-up through training and both the Regional
- 34 - and Aksu Prefecture PMOs were pro-active in managing the resettlement issues. This was the only required involuntary resettlement action under the project.
Indigenous People (OD4.20) Almost 90% of the of the project beneficiaries belonged to minority nationalities. (Under the project the term "ethnic minorities" as referred to in the OP was replaced with the term "Minority Nationalities" having the same meaning, but this term is consistent with the Chinese Constitution.) In order to ensure cultural compatibility in project areas, a Local Beneficiaries Participation Plan was prepared by the borrower and included in the PIP as an output from the social assessment carried out at part of project preparation. Implementation of the Plan was the responsibility of the RPMO and was monitored annually as part of the project M&E.
International Waters (OP7.50) The main tributary rivers, the Kashgar and Aksu rise in the Kyrgyz Republic and in Tajikistan. An "Exception to the Notification" requirements was sort and given by the EAPVP on August 18, 1997 on the basis that the project involved minor additions or alterations to existing schemes that require rehabilitation construction or other changes.
Dam Safety (OP 4.37) The management of this safeguard issue was through the establishment of an independent dam safety review panel (DSRP). In addition, the Provincial Water Resources Bureau assisted and provided technical advice and standards to the Prefecture Water Resource Bureaus and the PMOs, and the Domestic Panel of Experts (DEP) had at least one member who had dam construction skills and provided another source of independent assessment and advice. There was only one new dam (Xinir Dam) constructed under the project, but there existed several dams that served project facilities. For Xinir dam, a construction supervision plan was approved by the Bank and adopted at appraisal. Existing dams were all inspected by the DSRP and remedial actions identified and carry-out in order to ensure sustained and safe operations. O&M plans for each dam were prepared and reviewed by the DSRP.
Integrated Pest Management (OP 4.09) The IPM aspects of the project were very effectively managed and coordinated across the broad project area through an IPM Training and Research Plan approved as part of the PIP. Both training and research activities were closely supported by international technical assistance (AusAID Grant) and by national consultants. Over the course of the project training was directed at both agricultural technical staff as well as farmers. The outcomes were to change traditional ideas and approaches to managing pests particularly in cotton. The independent project M&E showed that at the end of the project, 85% of the HH had at least a basic understanding of IPM . Despite this basic understanding, the M&E also recorded that 84% of the HH relied heavily on the advice and guidance on pest management from the agricultural office or from the technical extension staff .
Between 1998 -2004 the chemical pesticide application on cotton crops reduced by 52% and that the use of biological pest control increased significantly as shown in the table below:
- 35 - - 36 - Additional Annex 10. Borrower's Comments in Detail
The following comments were received from the borrower and are reproduced hereunder verbatim.
Xinjiang World Bank Financed Project Management Office No.16 Mingde Road ,Urumqi, Xin-jiang 830002,China Tel:86+991+2336892 . Fax:86+991+2810084
DATE: May 25, 2005 NO.OF PAGES:02 LOG NO.:
FOR: Geoffery.Spencer, Co-Task Team Leader of Tarim II Project Organization: World Bank Resident Mission in China (RMC) City/County: Beijing, China
FROM: Wang Fuqiang, Deputy Director of Xinjiang Regional Finance Bureau/ Regional PMO
SUBJECT: Comments For Draft ICR China-Tarim Basin II Project(Cr./Ln.3093/4341-CHN)
Dear Mr. Spencer,
Please refer to your E-mail dated May 5,2005 with attached Draft for ICR Comment, which we received and carefully reviewed and discussed with all project implementing agencies concerned. Based on the statement and description for the Borrower’s performance and the Project implementation status and all data provided in Draft ICR, we couldn’t agree more on your general assessments of overall achievement of the Project Objectives and Output and the evaluation for achievements and output of each components under the Project. We think all assessment and evaluation are fair, reasonable and objective. They are exactly in conformity with the Project implementing achievements and actually reflect the real situation and outcome of the Project. We are quite satisfied with all of your assessment , overall evaluation of Project Performance: (a) the revised Regulations on Tarim Basin Water Resources Management was adopted by the Regional People’s Congress on March 25, 2005, which ensures sustainability of river basin management in Tarim River Basin; (b) the final version of the pilot Land and Water Management Plan in Awati County of Aksu was completed and expected to be implemented as a Basin level pilot initiative; (c) the successful SIDD/WUA component: so far about 1,807 WUAs have been established in the Tarim Basin and the total number of the WUAs will reach 6,803 to cover the whole irrigation areas in Tarim Basin by 2008; (d) Seven ICRs (including the regional consolidated ICR and the five prefecture ICRs and TMB ICR) and three special studies were completed with good quality in general; and (e) both project investment and physical works were fully completed as planned in MTR and disbursement of the Bank loan was fully made against the planned investments, and three project objectives are successfully accomplished. We are quite pleased to share your views of ratings on the following aspects: The ratings for achievement of Objectives and Outputs, the ratings for Outputs by all Components, the ratings for Borrower Performance. We also agree on your perspective of the Project Sustainability.
We would like to thank the Bank ICR Mission for arduous efforts made and a great deal of efficient jobs done during the ICR Mission and we appreciate very much that the Bank officials, specialists, consultants, particularly the Task-team Leaders have provided good cooperation, helpful recommendation, constructive suggestions and strong supports and assistance for the successful implementation of the
- 37 - Project during the past six years.
We look forward to a continued good and close cooperation with you on future projects.
Best regards,
Sincerely, Wang Fuqiang Deputy Director of Xinjiang Regional Finance Bureau Xinjiang Regional PMO
- 38 - Additional Annex 11. Research Topics by Project Areas
Research Topics by Project Areas Completion Impacts Achieved Status Tarim Basin Management Bureau 1. Tarim River Groundwater/Surface Completed Useful references provided for locating monitoring Water Monitoring and Protection sections along the Tarim River for both surface and underground water monitoring 2. Research on Exchange of Underground Completed Useful references provided for better water resources and Surface Water of Tarim River utilization in the Tarim Basin Kizilsu 1. Water Measurement and Completed References provided for construction of water Engineering Planning measurement structures, increase of water prices and volumetric water charges. 2. Research on High Yield Grain Completed The systematic study on multi-planting of winter wheat Production and corn provides technical support to farmers for productivity increase 3. IPM for Cotton Production Completed Biological methods are used to improve pest control effect. 4. Research on Improving Crop Yield on Completed Optimized methods found to increase production of cotton, wheat and corn cotton, maize and rape seeds, which are helpful in adjusting the cropping pattern in the prefecture 5. Research on Combined Use of Surface Completed Provides useful reference for better management and and Underground Water utilization of water resources 6. Water and Salt Balance Analysis and Completed Better understanding obtained concerning groundwater Monitoring level and quality, utilization of water and land resources, status of water engineering structures including drainage structures, etc. and basic data provided for rational utilization of water resources 7. Study on Drip Irrigation System Completed Suitable practice for use of drip irrigation identified to save water through experiments Kash 1. Research on Cotton Pest Control Completed The IPM methods identified are now used to control cotton pests in an area of more than 500 thousand mu now, with cotton production increase of 8.2kg/mu and reduction of pesticide use by 5.4 yuan/mu in the demonstration area 2. Research on High Yield Wheat Completed New wheat variety selected to suit the local conditions Production and standardized planting methods identified for high wheat yield. In the demonstration area of 600 thousand mu, wheat production increase of 36kg/mu was achieved. 3. Research on Balanced Fertilizer for Soil Completed Balanced fertilizer provided with reduction of Improvement phosphorus use thus production cost can be reduced 4. Research on Cropping Techniques for Completed Benefits produced through study on and demonstration Cotton of suitable and high yielding cropping techniques in the prefecture 5. Study on High Quality Fruit Trees Completed Good quality apricot and pomegranate selected and production standards set up 6. Study on Micro-Sprinkler and Low Completed The study indicates that micro-Sprinkler method is
- 39 - Pressure Pipe Irrigation Methods unsuitable except for grass or alfalfa and suggests obvious benefits of water saving by using low pressure pipe for irrigation 7. Study on Drip Irrigation Method Completed The study proves great benefits of using drip irrigation method for fruit trees and demonstrates the technique in pilot areas Bayangol 1. Water and Salt Balance Analyses Completed Reports produced on Bosten Lake Environmental 2. Study on Interaction of Surface and Completed Protection and water resources in the Kaidu-Kongqi Underground Water River Basin, so that references provided for engineering 3. Research on Carrying Capacity of the Completed plan for groundwater utilization and environmental Bosten Lake protection 4. Research on Eutrophication of the Completed Bosten Lake 5. New Technology Research for Cotton Completed Solutions provided to solve water shortage problem for Production cotton production and upgrade cotton quality, production and economic benefits through research on water-saving techniques and suitable planting density of cotton. 6. IPM Research for Cotton Pest Control Completed Effective measures provided to control cotton pest, protect cotton land ecology and farm land environment, and thus ensure stable cotton development in the prefecture 7. Research on Pear Disease Control Completed Measures found to achieve better nutritious condition of the trees and increase of weight and quality of each fruit and the total production, thus total production, economic benefits and farmers’ income have been improved 8. Research on High Yield Maize Completed Effective measures provided to increase maize Production production, quality and economic benefits through providing adaptable seeds, plastic film coverage planting methods, optimized and balanced fertilizers and suitable planting density Aksu 1. Land and Water Management Plan Completed Provide a good example for participatory “bottom-up” in Fengshou Irrigation Area water planning and management and useful references for irrigation water saving and control with production enhanced 2. Water and Salt Monitoring and Completed Provide useful understanding of water and salt Research movement in the sub-river basin and guidance for future water and salt management 3. Water and Salt Balance Modeling and Completed Analysis 4. Use of GIS Techniques in Agricultural Completed Management system developed for project Engineering management and implementation 5. Use of EM38 in Soil Survey Completed Soil conditions figured out to guide soil improvement and water utilization 6. Analysis of Laser Guided Land Completed A detailed analysis of the laser land-leveling in Aksu Leveling Pilot in Awaiti County, Aksu Prefecture, Awaiti County confirms that the laser Prefecture land-leveling is cheaper, far more effective and more accurate per mu that conventional land leveling using
- 40 - bull dozers; saves water by 20% and reduces the irrigation timing by one day in five (20%), increases productivity of main crops (15%); decreases time and labor by farmers; improves the land utilization rate and fertilizer effectiveness. Hotan 1. Research on Low Yield Land Completed Effective measures provided to improve low yield land Improvement and thus increase agricultural productions 2. Research on Use of Plastic Film to Save Completed Effective water-saving measures provided to increase Water agricultural production 3. IPM Completed Effective measures found to control pests of fruits and vegetables and thus agricultural production increased 4. Research on High Yield Winter Wheat Completed Good quality winter wheat variety provided and thus agricultural production increased 5. Water and Salt Monitoring and Completed Useful references provided for better water and salt Modeling management and control Regional 1. Analyses on Water Quality Changes Completed Understanding obtained concerning water and land of the Tarim River Basin changes and quality throughout the Tarim River Basin 2. Special Study on Eco-environmental Completed by using techniques including remote sensing, thus Changes in Tarim Basin helped in planning and decision-making for the 3. Remote Sensing Investigation on Completed immediate improvement of the river basin Changes of Land and Water Resources of the Major Tributaries and Mainstream of Tarim River 4. Nine Case Studies on International Completed Case studies prepared by Aus-Aid technical assistance Advanced River Basin Management consultants provide knowledge of best practice for Practice and the Implication to Tarim river basin management in the world and useful Basin references and suggestions made available for Tarim river basin 5. Remote Sensing Monitoring in the Completed Useful data provided for land and water management Awati Pilot Area planning 6. Study on Irrigation Management in Completed Insight into a typical irrigation area provided to better Maigaite County, Kashgar understand the best way to saving water and upgrade irrigation management 7. Thematic Study on Irrigation Completed Details the very successful experience in improving the Management in Maigaiti County. land and water use efficiency in Maigaiti County, Kashgar Prefecture. Findings confirm that the water quota to farm plots had been steadily reduced, but the production increased considerably, as did the area irrigated. Some inexpensive improvements were carried out to the irrigation systems, and the installation of some drainage canals caused the water table to drop, the drainage and salinity problems were alleviated. A major portion of non-beneficial ET was eliminated and converted to crop consumptive use.
- 41 - Additional Annex 12. Pictorial Overview of the Tarim Basin and Project Achievements
- 42 -
- 43 - - 44 - - 45 - - 46 - - 47 - - 48 -
- 49 - IBRD 29489
74° 78° 82° 86° 90° 94°
CHINA TARIM RIVER BASIN II PROJECT XINJIANG PROVINCE Lake Habahe Zaysan Altay KAZAKHSTANTo Novosibirsk PROJECT AREAS Burqin To Novosibirsk "GREEN CORRIDOR"
Lake Fuyun FLOOD CONTROL EMBANKMENTS 46° Ulungur TARIM BASIN I PROJECT AREAS Tacheng Qinghe Lake To Novosibirsk Utubulak MONGOLIA Balkhash PERENNIAL/SEASONAL RIVERS AND STREAMS Lake Alakol DAMS 46° Ertai DAMS UNDER CONSTRUCTION Yumin DESERT Karamay HIGHER ELEVATIONS: Lake 2000 - 3999 METERS Manas Bole Lake To Alma-Ata Ebinur 4000 METERS AND ABOVE Lake Sayram SELECTED TOWNS OR CITIES Shihezi Huocheng Santanghu PREFECTURE CAPITALS Yining Qitai PROVINCE CAPITAL Changji ÜRÜMQI HIGHWAYS Lake Zhaosu RAILROADS Issyk-Kul O U N T A I N S Yiwu RAILROAD UNDER CONST RUCTION KYRGYZTo Naryn, H A N M I A N S PREFECTURE BOUNDARIES 42° Bishkek T Turpan Hami REPUBLIC Balguntay PROVINCE BOUNDARIES AKSU RIVER BASIN Lake INTERNATIONAL BOUNDARIES AKSU SUB-PROJECT DananhuBarkol Ak Keyi See IBRD 29493 for details su R KAIDU-KONQI RIVER BASIN 42° . Yanji Kuqa TARIM RIVER BAYINGOL SUB-PROJECT Peak Kaiser Bosten KASHGAR RIVER BASIN Peabody Dam SUB-PROJECT See IBRD 29494 for details Lake Lake To Osh KIZILSU SUB-PROJECT 7439 m Aksu Korla Aydingkol See IBRD 29492 for details Akqi Xayar Xingdi 150 km Flood Control DaXiHaiZi Kalpin Aral rim River LuoHuLuKe Awati Ta Embankment Reservoir Reservoir er in Two Banks iv Lake R H Weigan River r o Basin Scheme Lop-Nor GANSU Wuqia a t Atushi Kashg a Tarim Basin I Project 26 Control Gates n within middle reach Kashi Bachu R Jiashi i of Tarim River r v ng Rive e Yuepuhu rgia r Aketao Ye RUSSIAN FEDERATION Kongur Shan KASHGAR RIVER BASIN I N S 7718 m KASHGAR SUB-PROJECT A KAZAKHSTAN T HEILONGJIANG TAJIKISTAN Muztagata See IBRD 29491 for details Ruoqiang N 7546 m ° TAKLIMAKAN DESERT U 38 Shache O To Yumen Yerqiang River Basin Scheme MONGOLIA JILIN Tarim Basin I Project M Taxkorgan Yecheng KYRGYZ N Taitema Lake REP. LIAONING Pishan HOTAN RIVER BASIN D.P.R. OF Qiemo QINGHAI XINJIANG L KOREA U GO K HOTAN SUB-PROJECT 38° ON BEIJING AFGHAN- T NEI M BEIJING See IBRD 29490 for details AREA OF MAP TIANJIN SeaREP. OF JAPAN ISTAN U QINGHAI HEBEI L KOREA Kunjerap Hotan SHANXI of N Lopu A SHANDONG Japan PAKISTAN Pass Qira GANSU 4700 m NINGXIA JIANGSU To Islamabad L SHAANXI U Wuluwati Minfeng HENAN Dam SICHUAN Yellow K2 SHANGHAI N Lake ANHUISea 8611 m XIZANG HUBEI Ayakkum ZHEJIANG Lake NEPAL Aqqikkol XIZANG CHONGQING M HUNAN JIANGXI O 0 50 100 150 200 GUIZHOU East U YUNNAN FUJIAN N T A I N S To GolmudKILOMETERS National Capital China This map was produced by the Map Design Unit of The World Bank. GUANGXI GUANGDONG TAIWAN The boundaries, colors, denominations and any other information Province Boundaries Sea shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any International Boundaries MACAO, PORT.HONG KONG endorsement or acceptance of such boundaries. VIETNAM Bay of MYANMAR LAO ° To Shiquanhe ° ° ° ° P.D.R. HAINAN 78 82 86 90 94 Bengal THAI- PHILIPPINESPhilippine LAND Sea MAY 1998