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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 53283-CN PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN Public Disclosure Authorized IN THE AMOUNT OF US$100 MILLION AND A GRANT FROM THE GLOBAL ENVIRONMENT FACILITY (GEF) TRUST FUND IN THE AMOUNT OF US$4.265 MILLION TO THE Public Disclosure Authorized PEOPLE‘S REPUBLIC OF CHINA FOR A SUSTAINABLE DEVELOPMENT IN POOR RURAL AREAS PROJECT May 10, 2010 China and Mongolia Sustainable Development Unit Sustainable Development Department 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 May 2010) Currency Unit = Renminbi (RMB) Yuan (Y) Y 6.8 = US$1 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ABC Agricultural Bank of China AV Administrative Village CAPP Community Annual Project Plan CDD Community Driven Development CDF Community Development Financing CNAO Chinese National Audit Office CNY Chinese Yuan CPCO Central Project Coordination Office CPMO County Project Management Office CQ Consultants‘ Qualifications DA Designated Account DFID Department for International Development EIA Environmental Impact Assessment ERR Economic Rate of Return ESMF Environmental and Social Management Framework FCPMC Foreign Capital Project Management Center FM Financial Management FMM Financial Management Manual FMS Financial Management Specialist FRR Financial Rate of Return GEF Global Environment Facility ICB International Competitive Bidding IFR Interim Financial Report IPDP Indigenous Peoples Development Plan JSDF Japan Social Development Fund LGPR Leading Group for Poverty Reduction M&E Monitoring and Evaluation MIS Management Information System MLMA Migrant Labor Microenterprise Associations MLMSF Migrant Labor Microenterprise Support Financing MLSC Migrant Labor Service Center MOF Ministry of Finance NCB National Competitive Bidding NDRC National Development and Reform Commission NPV Net Present Value PADO Poor Area Development Office PAP Project-Affected People PLG Project Leading Group PMO Project Management Office PPMO Provincial Project Management Office PRCDP Poor Rural Communities Development Project (P071094) QBS Quality Based Selection QCBS Quality and Cost Based Selection QBPRP Qinba Mountains Poverty Reduction Project (P003590) RCC Rural Credit Cooperative RMS Rural Migrants Support SDPRAP Sustainable Development in Poor Rural Areas Project SIL Specific Investment Loan SLMA Sustainable Land Management and Adaptation SOE Statement of Expenditures SWPRP Southwest Poverty Reduction Project (P003639) TA Technical Assistance TCC5 China Economic Reform Implementation Project TPSW Township Project Work Station UNDP United Nations Development Programme WA Withdrawal Application Vice President: James W. Adams, EAPVP Country Director: Klaus Rohland, EACCF Sector Manager Ede Ijjasz-Vasquez, EASCS Sector Manager: Magda Lovei, EASER Task Team Leaders: Alan Piazza, SDV Ulrich Schmitt, EASCS CHINA Sustainable Development in Poor Rural Areas CONTENTS Page I. STRATEGIC CONTEXT AND RATIONALE ................................................................. 1 A. Country and sector issues.................................................................................................... 1 B. Rationale for Bank involvement ......................................................................................... 2 C. Higher level objectives to which the project contributes .................................................... 3 II. PROJECT DESCRIPTION ................................................................................................. 4 A. Lending instrument ............................................................................................................. 4 B. Project development objective and key indicators.............................................................. 4 C. Project components ............................................................................................................. 5 D. Lessons learned and reflected in the project design ............................................................ 9 E. Alternatives considered and reasons for rejection ............................................................ 10 III. IMPLEMENTATION .................................................................................................... 11 A. Institutional and implementation arrangements ................................................................ 11 B. Monitoring and evaluation of outcomes and results ......................................................... 13 C. Sustainability..................................................................................................................... 13 D. Critical risks and possible controversial aspects ............................................................... 14 E. Loan conditions and covenants ......................................................................................... 15 IV. APPRAISAL SUMMARY ............................................................................................. 16 A. Economic and financial analyses ...................................................................................... 16 B. Technical ........................................................................................................................... 17 C. Fiduciary ........................................................................................................................... 17 D. Social................................................................................................................................. 19 E. Environment ...................................................................................................................... 20 F. Safeguard policies ............................................................................................................. 21 G. Policy Exceptions and Readiness...................................................................................... 22 Annex 1: Major Related Projects Financed by the Bank and/or other Agencies ................. 23 Annex 2: Results Framework and Monitoring ........................................................................ 24 Annex 3: Detailed Project Description ...................................................................................... 29 Annex 4: Project Costs ............................................................................................................... 37 Annex 5: Implementation Arrangements ................................................................................. 39 Annex 6: Financial Management and Disbursement Arrangements ..................................... 42 Annex 7: Procurement Arrangements ...................................................................................... 55 Annex 8: Economic and Financial Analysis ............................................................................. 66 Annex 9: Safeguard Policy Issues .............................................................................................. 69 Annex 10: Project Preparation and Supervision ..................................................................... 74 Annex 11: Documents in the Project File ................................................................................. 76 Annex 12: Statement of Loans and Credits .............................................................................. 78 Annex 13: Country at a Glance ................................................................................................. 82 Annex 14: Incremental Cost Analysis ....................................................................................... 84 Annex 15: STAP Reviewer Comments and Team Response .................................................. 93 Annex 16: Summary of Environmental Monitoring of the SLMA Component ................... 95 Annex 17: Maps: IBRD# 36701, # 36702 ................................................................................ 104 CHINA SUSTAINABLE DEVELOPMENT IN POOR RURAL AREAS PROJECT APPRAISAL DOCUMENT EAST ASIA AND PACIFIC EASCS Date: May 10, 2010 Team Leader: Alan L. Piazza Country Director: Klaus Rohland Sectors: General agriculture, fishing and Sector Managers: Ede J. Ijjasz-Vasquez and forestry sector (45%); General water, Magda Lovei sanitation and flood protection sector (20%); Agricultural marketing and trade (20%); Roads Project ID: P099751 and highways (15%) Environmental Assessment: Partial Themes: Rural services and infrastructure Assessment (B) (50%); Poverty strategy, analysis and Lending Instrument: Specific Investment Loan monitoring (25%); Other environment and (SIL) natural resources management (25%). Global Supplemental ID: P101844 Team Leader: Ulrich K. H. M. Schmitt Lending Instrument: Specific Investment Loan Sectors: General agriculture, fishing and Focal Area: M-Multi-focal area forestry sector (80%); Agriculture research and Environmental Assessment: Partial extension (10%); Water supply (10%) Assessment Themes: Rural services and infrastructure Supplement Fully Blended?: Yes (30%); Poverty strategy, analysis and monitoring (20%); Climate change (20%); Vulnerability assessment and monitoring (20%); Natural disaster management (10%). Project Financing Data [X] Loan [ ] Credit [X] Grant [ ] Guarantee
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