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World Bank Document Documentof The World Bank FOROFFICIAL USE ONLY Public Disclosure Authorized Report No.: 18127 IMPLEMENTATIONCOMPLETION REPORT 'CHINA Public Disclosure Authorized SHAANXIAGRICULTURLAL DEVELOPMENT PROJECT CREDIT1997-CN June 29, 1998 Public Disclosure Authorized Public Disclosure Authorized Rural Development and Natural Resources Unit East Asia and Pacific Regional Office This document has a restricted distribution and may be used by recipients only in the perfonnance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Currency Unit = Yuan (Y) 1989 $1=Y 3.76 1990 $1=Y 4.78 1991 $1=Y 5.32 1992 $1=Y 5.42 1993 $1=Y 5.73 1994 $1=Y 8.50 1995 $1=Y 8.30 1996 $1=Y 8.30 1997 $1=Y 8.30 FISCAL YEAR January 1-December 31 WEIGHTS AND MEASURES Metric System 2 mu = 666.7 square meters (m ) 15 mu = 1 hectare (ha) ABBREVIATIONS AND ACRONYMS EASRD - Rural Development and Natural Resources Sector Unit of the East Asia and Pacific Regional Office EIRR - Economic internal rate of return FIRR - Financial internal rate of return FY - Fiscal year GPS - Grandparent Stock IBRD - International Bank for Reconstruction and Development ICB - International Competitive Bidding ICR - Implementation Completion Report IDA - International Development Association ITC - International Tendering Company of China National Technology Import & Export Corporation NCB - National Competitive Bidding O&M - Operations and maintenance OD - Operational Directive (of the World Bank) PMO - Project Management Office PPC - Provincial Planning Commission SAR - Staff Appraisal Report SDR - Special Drawing Rights Vice President :Jean-Michel Severino, EAPVP Country Director :Yukon Huang, EACCF Sector Manager :Geoffrey Fox, EASRD Staff Member :Daniel Gunaratnam, Principal Water Resources Specialist, EACCF FOR OFFICIALUSE ONLY CONTENTS PREFACE ........................................................ EVALUATION SUMMARY ....................................................... v PART I: PROJECT IMPLEMENTATION ASSESSMENT..................................................... 1 A. Project Objectives and Description ..................................................... 1l B. Achievement of Project Objectives.................................................... 1l C. Implementation Record and Major Factors Affecting the Project ..................................2 D. Project Sustainability..................................................... 5 E. IDA Performance.6 .................... 6 F. Borrower Performance.................. 7 G. Assessment of Outcome ......................................... ,.8 H. Future Operation ........................................ 10 1. Key Lessons Leamed ........................................ 10 PART II: STATISTICAL TABLES ......................................... 12 Table 1: Summary of Assessments ........................................ 12 Table 2: Related Bank Group Loans and Credits........................................ 13 Table 3: Project Timetable ........................................ 14 Table 4A: Loan/Credit Disbursement,: Cumulative Estimate and Actual ......................... 15 Table 4B: Loan/Credit Disbursement: Cumulative Estimate and Actual, by Semester .................................................. 15 Table 5: Key Indicators for Project Implementation .................................................. 16 Table 6: Key Indicators for Project Operations .................................................. 19 Table 7: Studies included in Projecit.................................................. 21 Table 8a: Project Costs in Yuan ...................... 22 Table 8b: Project Costs in US Dollar's.......................... 22 Table 8c: Project Cost Increase ..................... 23 Table 8d: Project Financing ..................... 23 Table 9: Economic Costs and Benefits .......................................... 24 Table 10: Status of Legal Covenants .......................................... 25 Table 11: Compliance with Operational Manual Statements .......................................... 26 Table 12: Bank Group Resources: Staff Inputs ...................................... 26 Table 13: Bank Group Resources: Missions ...................................... 26 ANNEX A: ICR MISSION'S AIDE MEMOIRE ...................................... 27 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. - iii - IMPLEMENTATION COMPLETION REPORT CHINA SHAANXI AGRICULTUR&LDEVELOPMENT PROJECT CREDIT 1997-CHA 'REFACE The Implementation Completion Report (ICR) describes the achievements of the Shaanxi Agricultural Development Project in China, for which Credit 1997-CN in the amount of SDR 78.8 million ($106 million in equivalent) was approved on September 19, 1989, and made effective on December 1:3,1989. The credit was closed on June 30, 1997. It was fully disbursed, and the last disbursement took place on September 5, 1997. The ICR was prepared by Daniel Gunaratnam (Principal Water Resources Engineer), Wang Xiaolan (Financial Analyst), Zhang Chaohua (Socioeconomist), Jiang Ping (Irrigation Institutional Specialisi:) and Hu Shunong (Construction Engineer- Consultant), and was reviewed by Geoffrey Fox, Sector Manager, Rural Development and Natural Resources Sector Unit, East Asia and Pacific Regional Office (EASRD). The Borrower was unable to provide comments on the final ICR, which are therefore not included as an annex to this ICR.. Preparation of this ICR was begun during the Bank Group's final supervision mission in November 6-17, 1997, and an ICR mission visited Shaanxi Province also during the same period. The ICR is based on materials in the project file and materials provided to the ICR mission. The Borrower contributed to preparation of the ICR by contributing views reflected in the mission's aide-memoire (see Annex A), preparing its own evaluation of the project's execution and initial preparation, and commenting on the draft ICR. Since the Borrower's ICR was too long to be included as an annex and a summary was not provided, the Borrower's ICR has been deposited in the project files. - v - CHINA SHAANXI AGRICULTURE DEVELOPMENT PROJECT CREDIT 1997-CN In accordance with Operational Policy 13.55 this Implementation Completion.Report was prepared 12 months after Credit 1997-CN was closed on June 30, 1997. However, the project's main components, Donglei Irrigation and Dingbian Water Supply, will only be completed by December 1999. This report is therefore an interim completion report. The project will have to be revisited in December 1999 to determine if all the works are completed and all the objectives of the project are met. EVALUATION SUMMARY Project Objectives and Description 1. The main objectives of this project were to boost farm production and incomes of poor households and to provide clean water through a program of investments in irrigation, rural water supply, and agricultural services. The main features of the project were: (a) improving and expanding th[e Donglei Irrigation System in the Guangzhong Plain and supplying water to rural areas; (b) providing potable water and irrigation in Dingbian County where there has been a high incidence of fluorosis because of the high fluoride content in the local water; (c) establishing 2,100 hectares (ha) of fish ponds; (d) establishing eight breeding and five commercial poultry operations; (e) constructing several seed processing and certification plants, and supplying fertilizers; (f) constructing and equipping three agroprocessing pilot plants; and (g) providing local and international training programs to staff involved in implementing the above subcomponents. 2. The project objectives were well designed and were appropriate to the Shaanxi government's strategy of reducing poverty by increasing agricultural production and incomes for the region. They were also consistent with the central government's objective to develop the interior provinces, reduce poverty, and fulfill the basic needs, such as clean water, of some of the poorest people in China. 3. Assessment of the project's ability to achieve the stated objectives must await the expected completion in December 1999 of the Donglei Irrigation and Dingbian Water Supply Components. The project objectives for the other four components (aquaculture, livestock, agroprocessing and seeds) have essentially been achieved. There are, however, solid indications that the objectives of the irrigation and water supply components will be achieved after completion of the unfinished works because most of the major construction issues have been resolved and Shaanxi Government is committed to completing the project. - vi - Results of Implementation 4. Donglei Irrigation and Dingbian Water Supply Components. Donglei Irrigation Systems are 70 percent complete, though a small subsystem, the Duanjiayuan Irrigation System (3,700 ha) commenced operation in 1996. Following the introduction of irrigation on this system, wheat yields increased by 100 percent. For newly irrigated areas, about 30 to 65 percent of the on-farm works and about 26 percent of the branch canals are scheduled to be completed by December 1999. The farmers have indicated that most of the on-farm works and water cisterns for domestic water supply will be completed by that date, since the land has already been leveled and the canals can be completed very rapidly if water is assured. Initial
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