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The World Bank Public Disclosure Authorized Document of The World Bank Public Disclosure Authorized Report No: 29174 IMPLEMENTATION COMPLETION REPORT (IDA-26050) ON A Public Disclosure Authorized CREDIT IN THE AMOUNT OF SDR 79.9 MILLION (US$100 MILLION EQUIVALENT) TO THE PEOPLE'S REPUBLIC OF CHINA FOR THE XIAOLANGDI RESETTLEMENT PROJECT Public Disclosure Authorized June 29, 2004 Public Disclosure Authorized Rural Development and Natural Resources Sector Unit East Asia and Pacific Regional Office CURRENCY EQUIVALENTS (Exchange Rate Effective June 17, 2004) Currency Unit = Yuan (Y) Y 1.00 = US$ 0.121 US$ 1.00 = Y 8.2866 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS CAS - Country Assistance Strategy CRO - County Resettlement Office EIA - Environmental Impact Assessment EMO - Envrionment Management Office EMP - Envrionmental Management Plan EPB - Environment Protection Bureau ERR - Economic Rate of Return ESE - Environmental Supervising Engineer HPRO - Henan Provincial Resettlement Office ICR - Implementation Completion Report IDA - International Development Association MOF - Ministry of Finance MTR - Mid-term Review MWR - Ministry of Water Resources NRCR - National Research Centre For Resettlement POE - Panel of Experts RPDI - Reconnaissance Planning And Design Institute SAR - Staff Appraisal Report VEO - Village Environmental Officer SAR - Staff Appraisal Report SPRO - Shanxi Provincial Resettlement Office YRCC - Yellow River Conservancy Commission YRCH - Yellow River Central Hospital YRCCRO - Yellow River Conservancy Commission Resettlement Office YRWHDC - Yellow River Water Hydropower Development Corporation YRWHDCRO - YRWHDC Resettlement Office Vice President: Jemal-ud-din Kassum Country Director: Yukon Huang Sector Director: Mark D. Wilson Task Team Leader: Chaohua Zhang CHINA XIAOLANGDI RESETTLEMENT PROJECT 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 4 5. Major Factors Affecting Implementation and Outcome 14 6. Sustainability 16 7. Bank and Borrower Performance 17 8. Lessons Learned 18 9. Partner Comments 20 10. Additional Information 24 Annex 1. Key Performance Indicators/Log Frame Matrix 25 Annex 2. Project Costs and Financing 27 Annex 3. Economic Costs and Benefits 31 Annex 4. Bank Inputs 38 Annex 5. Ratings for Achievement of Objectives/Outputs of Components 40 Annex 6. Ratings of Bank and Borrower Performance 41 Annex 7. List of Supporting Documents 42 Annex 8. Project Scope and Progress 43 Annex 9. Loan Covenant Compliance 45 Annex 10. Living Standard Assessment of the Resettlers 47 Annex 11. Consultation, Participation and Grievance Redress Mechanism 53 Annex 12. Gender and Vulnerable Households in Resettlement And Rehabilitation 56 Annex 13. Project Organization and Management 59 Annex 14. Project Monitoring and Supervision 61 Annex 15. Environment Management 64 Annex 16. Cultural Property Preservation and Protection 70 Annex 17. Post Resettlement Assistance 74 Project ID: P003644 Project Name: CN - XIAOLANGDI RESETTLEMENT Team Leader: Chaohua Zhang TL Unit: EASES ICR Type: Core ICR Report Date: June 29, 2004 1. Project Data Name: CN - XIAOLANGDI RESETTLEMENT L/C/TF Number: IDA-26050 Country/Department: CHINA Region: East Asia and Pacific Region Sector/subsector: General industry and trade sector (43%); General transportation sector (19%); General information and communications sector (19%); General agriculture, fishing and forestry sector (11%); Central government administration (8%) Theme: Rural services and infrastructure (P); Other social protection and risk management (P); Other social development (S); Other environment and natural resources management (S) KEY DATES Original Revised/Actual PCD: 06/23/1993 Effective: 09/22/1994 09/22/1994 Appraisal: 11/20/1993 MTR: 06/30/1996 03/28/1997 Approval: 04/14/1994 Closing: 12/31/2001 12/31/2003 Borrower/Implementing Agency: The People's Republic of China/The Ministry of Water Resources Other Partners: STAFF Current At Appraisal Vice President: Jemal-ud-din Kassum Gautam Kaji Country Director: Yukon Huang Nicholas Hope Sector Manager: Mark D. Wilson Joseph Goldberg Team Leader at ICR: Chaohua Zhang Daniel Gunaratnam ICR Primary Author: Chaohua Zhang 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: S Sustainability: HL Institutional Development Impact: H Bank Performance: S Borrower Performance: S QAG (if available) ICR Quality at Entry: S Project at Risk at Any Time: No 3. Assessment of Development Objective and Design, and of Quality at Entry 3.1 Original Objective: 3.1.1 The objectives were to assist the Borrower: (a) to resettle and improve the livelihoods of approximately 154,000 people in the reservoir area who need to be resettled as a result of the construction and inundation up to the 265 meter level of the Xiaolangdi Multipurpose Dam; and (b) to minimize the effects of social adjustment of the resettlers and of their host communities following resettlement. 3.1.2 In practice, the project did not limit its livelihood development activities to only the resettled people, but included the host population. The objectives were realistic and important, both for the country as a whole and for the rural sector. The project had moderate to significant risks at appraisal, but most of these risks were ameliorated by effective and flexible management arrangements that allowed changes to the project directions. The major change in project direction was in the livelihood component where, instead of a larger share of incomes being generated from county industry the income was generated from a combination of land based schemes, village based commercial farming and village industries and some off-farm employment. It was a moderately complex project, but not one that placed undue demands on the implementing agency, which made changes to ensure risks were reduced. The project now is completed and throughout was very responsive to the circumstances of the Borrower and its development priorities. 3.2 Revised Objective: 3.2.1 The objectives of the project remained unchanged during the implementation phase, although the target populations of resettlers increased from 154,000 to 172,487. Although ten years have passed since its appraisal, the objectives of the project remain consistent with the current Country Assistance Strategy (CAS) for China and with current international understanding, policy and standards in reservoir resettlement that have seen significantly raised expectations and requirements. 3.3 Original Components: 3.3.1 The components of the project were: Component A Residential and Infrastructure Reconstruction for Villages and Towns Component B Transfer of Resettlers Component C Planning, Design and Institutional Support Component D Livelihood Development 3.3.2 In addition, the project included the following five important activities; they are described in different levels of detail in the SAR but are not stated as project components. Only Activity 4 had separate financing identified, and the other activities appear to be "embedded" in the main components: Activity 1 Social Adjustment Activity 2 Consultation, Participation and Grievance Redress Activity 3 Gender and Vulnerable Groups Activity 4 Environment Management Activity 5 Cultural Relics Protection 3.3.3 The project was prepared and designed on the basis of a detailed analysis and an understanding of experiences and lessons learned in the past 40 years in this sector in China. The components were closely related to the achievement of the objectives, and were well within the capacity of the implementing agency. One of the key lessons learned was the need for a "development" approach for reservoir resettlement. The - 2 - development approach consisted of, apart from pure compensation payments for replacement of housing, village and all infrastructure including industries, there was additional large economic project infrastructure provided for the resettlers like the Wenmengtan Land reclamation and associated irrigation and drainage (80,000 mu) and Houhe Dam and irrigation (75.000 mu). The value of the new infrastructure was about $100 million to help develop and restore livelihoods of resettlers and boost incomes of host families. Most of the industries were essentially compensated, so that resettlers could start with modern and environmentally friendly facilities, producing new and more marketable products. This was established as a fundamental principle in the Chinese policy framework for reservoir resettlement developed in the late 1980s and was built into the project design through several decades of planning and efforts by local design institutes and enhanced by international expertise and experience brought in with the preparation of the project. This was reflected in the project design through: (a) a clear objective that resettlers should not only restore, but also improve their living standard; (b) basic principles to be followed in planning, design and implementation in line with this objective; (c) an elaborate institutional establishment; (d) a participatory and consultative approach for planning and implementation; and (e) a commitment to carry out post-resettlement support activities for the sustainable development of the resettlers. 3.3.4 With the benefit of hindsight, it is now clear that the
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