The World Bank Report No: ISR10493

Implementation Status & Results SECOND ENVIRONMENT PROJECT (P077752)

Operation Name: SECOND SHANDONG ENVIRONMENT PROJECT Project Stage: Implementation Seq.No: 7 Status: ARCHIVED Archive Date: 07-Jun-2013 (P077752)

Public Disclosure Authorized Country: China Approval FY: 2007 Product Line:IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Public Disclosure Copy Board Approval Date 27-Feb-2007 Original Closing Date 31-Dec-2013 Planned Mid Term Review Date 01-Dec-2009 Last Archived ISR Date 26-Nov-2012 Effectiveness Date 07-Jun-2007 Revised Closing Date 31-Dec-2013 Actual Mid Term Review Date 30-Mar-2009

Project Development Objectives SECOND SHANDONG ENVIRONMENT PROJECT (P077752) Project Development Objective (from Project Appraisal Document) The development objective is to improve the environmental conditions in participating municipalities/counties through a package of priority interventions, including upgrading and development of wastewater collection and treatment facilities, river embankment rehabilitation, solid waste management, water supply improvements, industrial pollution monitoring, and enhancement of the financial performance and efficiency of key urban environmental service agencies. Public Disclosure Authorized Has the Project Development Objective been changed since Board Approval of the Program?

Yes No

CN-GEF-Second Shandong Environment Project (P090377) Global Environmental Objective (from Project Appraisal Document) The Global Environment Objective of the GEF activity is to reduce land-based pollution along the coast and the Bohai Sea through development of a pilot septic- tank management system in Yantai and dissemination of the Yantai model in Shandong Province and in other parts of China. Has the Global Environmental Objective been changed since Board Approval of the Program?

Yes No

Component(s) Public Disclosure Authorized Component Name Component Cost Wastewater Management Component 225.74 Solid Waste Management Component 24.31 Water Supply Component 15.76 Public Disclosure Copy Technical Assistance and Capacity Building Component 4.52

Page 1 of 7 Public Disclosure Authorized The World Bank Report No: ISR10493

Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Progress towards achievement of GEO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Low

Implementation Status Overview PDO: Good progress is being maintained towards achieving the PDO. Environmental conditions in seven out of nine project cities/counties have improved following completion of investments for water supply, waste water collection and treatment, and solid waste disposal. The remaining wastewater works in Qixia city are nearing completion. The last two

Public Disclosure Copy contracts for Xisha river rehabilitation in are expected to be completed in August 2013. With the completed works, the rate of wastewater treated in project cities/counties has risen from 65% at appraisal to 91.3%, exceeding the completion target of 80%; the percentage of population provided with solid waste services in and has now reached 92.5% against that of 84% at appraisal , nearing to the end of project target of 95%. In Gaomi county, 99% people now access to water supply services, exceeding the end of project target of 97%. The rate of compliance of connected industries with the discharged standards has risen from 60% at appraisal to 98.9% now, exceeding the target of 90%.

GEO: Good progress also has been made in the implementation of the Yantai GEF Pilot Septic Tank Management project. The septic tank emptying program is now fully operational. The service areas have expanded from the pilot demonstration area to an adjacent area in Zhibu . To date, 1,600 septic tanks have been emptied and 10,018.1 tons of septage were collected and treated in Xinanhe WWTP. BOD discharged to the Bohai Sea was reduced by an estimated 806.63 tons in 2012. The “Yantai City Urban Area Septic Tank Construction and Management Regulations” were finalized, and a septic tank emptying tariff will be implemented in 2013 to promote sustainability.

Locations Country First Administrative Division Location Planned Actual China Shandong Sheng Zaozhuang

China Shandong Sheng Yantai Shi

China Shandong Sheng Yantai

China Shandong Sheng

China Shandong Sheng Shi

China Shandong Sheng Weifang

China Shandong Sheng Rizhao

China Shandong Sheng Shandong Sheng

China Shandong Sheng Qixia

China Shandong Sheng Huantai Xian

Public Disclosure Copy China Shandong Sheng Heze

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Country First Administrative Division Location Planned Actual China Shandong Sheng Gaomi

Results

Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of water utilities that the project is Number Value 0.00 1.00 1.00 supporting Date 31-Dec-2005 31-Dec-2012 31-Dec-2013 Comments In Gaomi county Public Disclosure Copy Citizens' satisfaction with wastewater, solid Text Value 66% 92% waste and water supply services in Date 05-Dec-2005 31-Dec-2012 31-Dec-2013 participating cities/counties Comments Surveys will be done after completion of the Zaozhung works. Improvement of water quality within Text Value 0 104.9 148km participating cities/counties from Class V to Date 05-Dec-2005 31-Dec-2012 31-Dec-2013 Class IV Comments It consists of: 30 km in Weifang, 12km in Qixia, 62.9 km in Zaozhuang. Percentage of population connected to WWTPs Text Value 58% 89.6% 85% Date 05-Dec-2005 31-Dec-2012 31-Dec-2013 Comments EOP target has been exceeded. Percentage of treated effluent reuse Text Value 0.2% 10.7% 21% Date 05-Dec-2005 31-Dec-2012 31-Dec-2013 Comments The project does not have any investments in tertiary treatment plant (effluent Reuse). So the data just reflects overall reuse status in project cities: Yantai 15%, Gaomi 0, Weihai 21%, Weifang 20%,Qixia 8.8%, Zhoucun 2%, Zaozhuang 0 Rate of compliance of connected industries Text Value 60% 98.9% 90% Public Disclosure Copy with discharge standards Date 05-Dec-2005 31-Dec-2012 31-Dec-2013

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Comments EOP target has been exceeded. Percentage of population provided with solid Text Value 84% 92.5% 95% waste services Date 05-Dec-2005 31-Dec-2012 31-Dec-2013 Comments Steady progress towards EOP target should allow it to be met Direct project beneficiaries Number Value 0.00 3500000.00 Date 05-Dec-2005 31-Dec-2012 31-Dec-2013 Comments It consists of : Gaomi 0.8m,

Public Disclosure Copy Zhoucun 0.23m, Weihai 0.45m, Yantai 0.56m, Qixia, 32k, Weifang 0.2m, Zaozhuang 0.22m, heze 0.5m, Rizhao 0.5m Female beneficiaries Percentage Value 0.00 1750000.00 Sub Type Supplemental Number of people in urban areas provided with Number Value 0.00 800000.00 800000.00 access to Improved Water Sources under the Date 31-Dec-2005 31-Dec-2012 31-Dec-2013 project Comments New Added Core Indicator Only Gaomi county has water supply investments. Voume(mass) of COD pollution load reduction Tones/year Value 9400.00 29284.20 28000.00 achieved under the project Date 31-Dec-2005 31-Dec-2012 31-Dec-2013 Comments Including Gaomi 826 t t/y, Qixia 1670t/d, Weihai 671 t/y, Yantai 6626.2t/y, Weifang 2876t/d, Zaozhuang 5715 t/d, Zhoucun 10900 t/d

Global Environmental Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Pollution discharge to Bohai Sea reduced Text Value 0 806.4 1700 BOD tons/year Date 05-Dec-2005 31-Dec-2012 31-Dec-2013 Comments

Public Disclosure Copy Intermediate Results Indicators

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Indicator Name Core Unit of Measure Baseline Current End Target Wastewater Components: Volume of WW Text Value 103 mil m3/year; 65%; 9,400 426.4 mil; 91.3%; 29,284.2 226 mil m3/year; 80%; 28,000 treated in the cities/counties (mil m3/year); ton COD/year ton COD/year. ton COD/year Rate of WW treated in the cities/counties (%); Date 05-Dec-2005 31-Dec-2012 31-Dec-2013 Reduction of pollution load reaching the recipient rivers. Comments Including Gaomi 826 t COD/y, Qixia 1,670 t/y, Weihai 671 t/ y, Yantai 6,626.2t/y, Weifang 2,876t/d, Zaozhuang 5,715 t/ d, Zhoucun 10,900 t/d Solid Waste Component: Municipal solid waste Text Value 293,460 599,563 450,775 collected and transferred to sanitary landfill Date 05-Dec-2005 31-Dec-2012 31-Dec-2013 Public Disclosure Copy (ton/year) Comments Solid waste facility now is fully utilized in Heze and Rizhao WS Component: a) % of population with Text Value a)84%; b) 46.72; c)85%; d) a)99%; b) 24; c)0%; d)90; e) a) 97%; b) 104.03; c) 39%; d) access to water supply services; b) Water prod. 101; e) 25% 10% 127; e) 20% mil m3/year; c) Groundwater/tot. water prod. Date 05-Dec-2005 31-Dec-2012 31-Dec-2013 (%); d) Liters/cap./day; e) Non-revenue water as % of water prod. Comments Only for Gaomi componet, The target will be revised as Huantai component dropped. the Huantai component has dropped. Sector Dev. & Cap. Bldg.: Cost recovery ratio Text Value 2.5; 1.0; 1.6 1.2;1.1,1.1 1.2; 1.4; 1.2 of WW mgmt operations (%); Cost recovery Date 05-Dec-2005 31-Dec-2012 31-Dec-2013 ratio of solid waste mgmt operations (%); Cost recovery ratio of water supply mgmt operations Comments (%)

Sector Development and Capacity Building: Text Value 366 1038 800 No. of installation of online automatic Date 05-Dec-2005 31-Dec-2012 31-Dec-2013 monitoring stations at industrial discharge sites Comments Including Gaomi 29; Qixia 2; Weihai 662; Yantai 260; Zaozhuang 13;Zhoucun 72 Sector Development and Capacity Bldg: Public Text Value Annual Report Quarterly Report Monthly Report disclosure of the status of compliance of major Date 05-Dec-2005 31-Dec-2012 31-Dec-2013 pollution enterprises Comments GEF Component: Volume of septage collected Text Value 0; 0 10.02;10.02 150; 150 in Yantai (1,000 tons/year); Volume of septage Date 05-Dec-2005 31-Dec-2012 31-Dec-2013 jointly treated with wastewater in Yantai(1,000 tons/year) Comments 1600septic tanks have been emptied as of Dec 31, 2012. The information on the Public Disclosure Copy volume and number of tanks is incorrect at appraisal.

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Data on Financial Performance (as of 22-Mar-2013)

Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P077752 IBRD-48520 Effective 27-Feb-2007 30-Mar-2007 07-Jun-2007 31-Dec-2013 31-Dec-2013 P090377 TF-56948 Effective 30-Mar-2007 30-Mar-2007 07-Jun-2007 31-Dec-2013 31-Dec-2013

Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P077752 IBRD-48520 Effective USD 147.00 147.00 0.00 119.77 27.23 81.00 P090377 TF-56948 Effective USD 5.00 5.00 0.00 4.29 0.71 86.00 Public Disclosure Copy

Disbursement Graph

Key Decisions Regarding Implementation PDO: (1) Provincial Government has agreed to reallocate loan savings of about USD 15 million accrued from the Weifang component to Zhoucun District. The Provincial Project Management Office should send a restructuring proposal for the utilization of loan savings in Zhoucun District for Bank review before the upcoming mission scheduled for June 2013. GEO: Yantai Municipal Government should announce the tariff and its implementation date for septic tank emptying services.

Restructuring History

Public Disclosure Copy CD Approval on 22-Jan-2010

Related Projects

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P090377-CN-GEF-Second Shandong Environment Project Public Disclosure Copy Public Disclosure Copy

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