OFFICIAL DOCUMINra
LOAN NUMBER 8153-CN
Project Agreement
(Waiter Conservation Project 11)
between
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
and
HEBEI PROVINCE SHANXI PROVINCE & NINGXIA HUI AUTONOMOUS REGION
Dated s/ ,2012 PROJECT AGREEMENT
AGREEMENT dated - ' , 2012, entered into between INTERNATIONAL BANK FDR RECONSTRUCTION AND DEVELOPMENT ("Bank") and HEBEI PROVINCE, SHANXI PROVINCE and NINGXIA HUI AUTONOMOUS REGION ("Project Implementing Entities") ("Project Agreement") in connection with the Loan Agreement ("Loan Agreement") of same date between People's Republic of China ("Borrower") and the Bank. The Bank and the Project Implementing Entities hereby agree as follows:
ARTICLE I - GENERAL CONDITIONS; DEFINITIONS
1.01. The General Conditions (as defined in the Appendix to the Loan Agreement) constitute an integral part of this Agreement.
1.02. Unless the context recuires otherwise, the capitalized terms used in this Agreement have the meanings ascribed to them in the Loan Agreement or the General Conditions.
ARTICLE H - PROJECT
2.01. Each of the Project Implementing Entities declares its commitment to the objectives of the Project. To this end, each of the Project Implementing Entities shall carry out the Proje-.t in accordance with the provisions of Article V of the General Conditions, and shall provide promptly as needed, the funds, facilities, services and other resources required for the Project.
2.02. Without limitation upon the provisions of Section 2.01 of this Agreement, and except as the Bank and the Project Implementing Entities shall otherwise agree, the Project Implementing Entity shall carry out the Project in accordance with the provisions of the Schedule to this Agreement and the PIP. For the avoidance of doubt, an amendment af6ecting only the Respective Part of the Project of a single Project Implementing Entity may be agreed in writing between the Bank and the relevant Project Implementing Entity only.
ARTICLE I -- REPRESENTATIVE; ADDRESSES
3.01. The Representative of each of the Project Implementing Entities is the Governor or Vice Governor or s ach other person or persons as the Governor or Vice' Governor shall designate in writing. -2-
'.02. The Bank's Address is:
International Bank for Reconstruction and Development 1818 H Street, NW Washington, DC 20433 United States of America
Cable: Telex: Facsimile:
INTBAFRAD 248423(MCI) or 1-202-477-6391 Washington, D.C. 64145(MCI)
3.03. The Project Implementing Entities' Addresses are:
For HEBEI: Hebei Provincial Finance Department 48 Zhonghuanan Street Shijiazhuang Hebei
For SHANXI: Shanxi Provincial Finance Department 345 Yingze Street, Taiyuan City Shanxi
For NINGXIA: Ningxia Provincial Finance Department 416 Jiefangxi Street, Xingqing District Yinchuan, Ningxia -3-
AGREED at Beijing, Peo-le's Republic of China, as of the day and year first above written.
INTERNATIONAL BANK FOR RECONSTRUCITON AND DEVELOPMENT
By 74/lvW
Authorized Representative
HEBEI PROVINCE
By
Authorized Representative
SHANXI PROVINCE
By
Authorized Representative
'NGXIA HUI AUTONOMOUS REGION
By
Authorized Representative -4-
SCHEDULE
Execution of the Project
Section I. Implementation Arrangements
4. Institutional and Other Arrangements
1. Each Project Implementing Entity shall establish, no later than September 1, 2012, and maintain or cause to be maintained, throughout the period of Project implementation:
(a) a Project leading group (PLG) at provincial level in each of the provinces, at municipal level in Hebei and Shanxi, and at each county level, included in its Respective Part of the Project, with composition and responsibilities acceptable to the Bank, to formulate Project-related policies, coordinate among relevant agencies and provide overall guidance on implementation of its Respective Part of the Project; and
(b) a Provincial Project Management Office (PPMO) or a Municipal Project Management (MPMO, for Hebei and Shanxi), at the Provincial and Municipal levels, and a County Project Management Office each of the counties (County PMOs) included in its Respective Part of the Project, with composition and responsibilities acceptable to the Bank, with competent staff in adequate numbers, to organize, coordinate and implement Project activities.
2. Each Project Implementing Entity shall maintain, throughout the period of Project implementation, a mobile specialist team responsible for providing technical advice to the PPMO, and the County PMOs, under terms of reference and composition satisfactory to the Bank.
3. Each Project Implementing Entity shall not later than November 30 in each year, commencing November 3 D),2012, prepare and furnish to the Bank, for its review and comment, an annual work plan detailing the activities to be carried out the following year.
B. Anti-Corruption
Each Project Implementing Entity shall ensure that its Respective Part of the Project, including all Sub-projects, is carried out in accordance with the provisions of the Anti-Corruption Guidelines. -5-
C. Subproject
Preparation
Each Project Implementing Entity shall, in accordance with the guidelines set forth in the PIP, prepare each Sub-project proposed to be included in its Respective Part of the Project as a Subproject and prepare and furnish to the Borrower a report, including, if applicable, a Resettlement Action Plan, in respect of said proposed Sub-project, for the Borrower's and the Bank's review pursuant to Part D.3 of this Schedule.
2. Eligibility Each investment Sub-project proposed for inclusion in a Project Implementing Entity's Respective Part o-_ the Project shall qualify as a Subproject eligible for financing out of the proceeds of the Loan only if said Project Implementing Entity has determined on the basis of an appraisal carried out in accordance with the PIP that:
(a) the proposed Subproject includes: (i) selection of site-specific irrigation technology, agronomic and forestry and irrigation management measures; (ii) water balance studies; (iii) detailed engineering designs; (iv) a Subproject implementation plan; (v) a financing and repayment plan; and (vi) a mcnitoring and evaluation plan;
(b) the proposed Subproject is technically and economically feasible;
(c) the proposed SUbproject is in compliance with the Safeguards Instruments, and with all applicable laws and regulations of the Borrower and the Project [mplementing Entity relating to health, safety and environmental and social protection; and
(d) if the Subproject would involve the resettlement of persons affected by said Subproject, it includes a plan for resettlement and compensation for all said persons which has been prepared in accordance with the Resettlement Policy Framework.
D. Environmental Management; Resettlement, Safeguards
1. Each Project Implementing Entity shall:
(a) ensure that all activities under its Respective Part of the Project shall conform to the Safeguards Instruments, and the environmental regulations and guidelines issued by the Borrower's Ministry of Environmental Protection from time to time and said Project Entity's Environmental Protection Bureau; and -6-
(b) to that end, implement the EMP applicable to its Respective Part of the Project, in a manner satisfactory to the Bank.
2. Each Project Implementing Entity shall, not later than June 30 each year, commencing June 30, 2013, prepare and furnish to the Bank an annual monitoring report identifying groundwater, surface water and soil quality monitoring frequency and monitoring parameters for the monitoring of the environmental impact of its Respective Part of the Project, and providing preliminary information concerning monitoring sites, including specific identification of groundwater, surface water and soil quality monitoring sites for the first year of implementation of its Respective Part of the Project;
3. Each Project Implementing Entity shall: (a) ensure that all works to be carried out under its Respective Part of the Project shall be planned in accordance with the objective of avoiding, where feasible, any change in land or water use that would result in the involuntary loss by persons of shelter, of productive assets or access to productive assets or of income or means of livelihood; (b) to this end, ensure that its PPMO gives due attention to said objective in the preparation of annual works plans for its Respective Part of the Project pursuant to paragraph A.3. of this Schedule; and (c) if, during the preparation of any such plans, said PPMO determines that such change in land or water use would nevertheless be unavoidable, ensure that said PPMO takes the following actions, and shall confirm to the Bank that said actions have been taken, prior to the commencement of any such works:
(i) prepare a resettlement action plan on the basis of policies, planning principles, institutional arrangements and design criteria acceptable to the Bank and set forth in the Resettlement Policy Framework, so as to improve the living standards and production levels of said persons, and furnish said action plan to the Project Implementing Entity and, if more than 200 persons are involved, to the Bank, for approval; and
(ii) carry out such resettlement action plan as shall have been approved by the relevant Project Implementing Entity (and the Bank, if more than 200 persons are affected).
4. Whenever required pursuant to the Resettlement Policy Framework, each Project Implementing Entity shall proceed to have a Resettlement Action Plan:
(i) prepared in form and substance satisfactory to the Bank;
(ii) except as otherwise agreed with the Bank, submitted to the Bank for review and approval, prior to the award of any contracts for civil works; and -7-
(iii) hereafter, adopted and publicly disclosed.
5. Each Project Implementing Entity shall carry out the Pest Management Plan in accordance with its terms.
6. Shanxi shall:
(a) maintain an independent dam safety expert to (i) inspect and evaluate the safety status of the existing Linked Dams in its territory; (ii) review and evaluate the owner's operation and maintenance procedures including emergency preparedness plans; (iii) provide written reports on the findings and recommendations for remedial work or safety-related measures; and (iv) review the qualifications of the designer for the new dam to be built under the Project, under terms of reference satisfactory to the Borrower and to the Bank;
(b) implement and cause the Project Counties to implement the Dam Safety Plans in a manner ;atisfactory to the Bank.
(c) ensure timely provision of adequate funding for completing the Longmen Main Canal in Jia,cheng County funded by Shanxi, and furnish to the Bank, for its review and approval, any RAP prepared in accordance with the RPF, in connection with the said Longmen Main Canal.
7. Ningxia shall no later than March 3 leach year, commencing March 31, 2013, prepare and furnish to the Bank, a dam safety status description for the Shapotou and the Qingtongxia dams in its annual progress report.
8. Without limitation to the provisions of paragraphs I through 6 of this Part D, each Project Implementing Entity shall take all measures necessary on its part to regularly collect, compile, and submit to the Bank, as part of the Project Reports, information on the status of compliance with the Safeguards Instruments, giving details of:
(a) measures taken in furtherance of the Safeguards Instruments;
(b) conditions, if any, which interfere or threaten to interfere with the smooth implementation of the Safeguards Instruments; and such (c) remedial measures taken or required to be taken to address conditions. -8-
Q. In the event of any inconsistency between the provisions of any of the Safeguards Instruments and the provisions of this Agreement or the Loan Agreement, the provisions of this Agreement and the Loan Agreement shall prevail.
Section II. Project Monitoring, Reporting and Evaluation
A. Project Reports
1. Each Project Implementing Entity shall monitor and evaluate the progress of its Respective Part of the Project and prepare Project Reports in accordance with the provisions of Section 5.08(b) of the General Conditions and on the basis of the indicators set forth in the Annex to this Schedule. Each such Project Report shall cover the period of one (1) calendar semester, and shall be furnished to the Borrower not later than thirty (30) days after the end of the period covered by such report for incorporation and forwarding by the Borrower to the Bank of the overall Project Report.
2. Without limitation to the provision of I above, each Project Implementing Entity shall:
(a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators set forth in the Annex to this Schedule, satisfactory to the Bank, the carrying out of its Respective Part of the Project and the achievement of the objectives thereof, including detailed monitoring and evaluation of three (3) hydraulic areas within the territory of the said Project Entity;
(b) prepare, under terms of reference acceptable to the Bank and furnish to the Borrower for consolidation and forwarding to the Bank pursuant to Section II A.I of Schedule 2 to the Loan Agreement:
(i) semi-annual reports, not later than March 3 land September 30 in each year, beginning March 31, 2013, summarizing the monitoring and evaluation activities carried out by it pursuant to subparagraph (a) of this paragraph in respect of the preceding calendar semester, and setting forth the physical and financial progress in the implementation of its Respective Part of the Project, both cumulatively, and in respect of the said preceding calendar semester; and
(ii) a mid-term report, not later than December 31, 2014, integrating the results of the monitoring and evaluation activities performed pursuant to Section II.A of this Schedule, on the progress achieved in the carrying out of its Respective Part of the Project during the period preceding the date of said report and setting -9-
out the measures recommended to ensure the efficient carrying out of its Respective Part of the Project and the achievement of the objectives thereof during the period following such date; and
(c) promptly review with the Borrower and the Bank the reports referred to in paragraph (b) of this Section, and, thereafter, take all measures required to ensure the efficient completion of its Respective Part of the Project and the achievement of the objectives thereof, based on the conclusions and recommendations of the said reports and the Borrower's and Bank's views on the matter.
3. Each Project Implementing Entity shall provide to the Borrower not later than three (3) months after the Closing Date, for incorporation in the report referred to in Section 5.08(c) of the General Conditions (Implementation Completion Report), all such informa:ion as the Borrower or the Bank shall reasonably request for the purposes of that Section.
B. Financial Management, Financial Reports and Audits
I. Each Project Implementing Entity shall maintain a financial management system and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Bank, both in a manner adequate to reflect the operations, resources and expenditures related to its Respective Part of the Project.
2. Without limitation on the provision of Part A of this Section, each Project Implementing Entity shall prepare and furnish to the Bank as part of the Progress Report not later than forty-five (45) days after the end of each calendar semester, interim unaudited financial reports for the Respective Part of the Project covering the semester, in form and s ibstance satisfactory to the Bank.
3. Each Project Implementing Entity shall have its financial statements referred to above audited by independent auditors acceptable to the Bank, in accordance with consistently applied auditing standards acceptable to the Bank. Each audit of these financial statements shall cover the period of one (1) fiscal year of the Project Implementing Entily. Each Project Implementing Entity shall ensure that the audited financial statements for each period shall be furnished to the Borrower and the Bank not later than six (6) months after the end of the period.
Section III. Procurement
1. All goods, works and services required for the Project and to be financed out of the proceeds of the Loan shall be procured in accordance with the provisions of Section III of Schedule 2 to the Loan Agreement. - 10-
Annex Performance Monitoring Indicators and Results Framework
Project Development Objective (PDO) and to increase agriculture water productivity in the project areas. The project development objectives are to improve agriculture water management Description Source/ Responsibility (indicator PDO Level Unit of Baseline Target Values Data Methodol_for Data definition etc.) Results UFrequency Frequency Methodology Collection C Measure (2011) Indicators* Idctr*YR 1 YR 2 YR3 YR 4 YRS Direct County PMO Cumulative Indicator One: 3 22.2 Annually measurement and Provincial PO-l: Reduction million m 0 5 10 15 19 PMO in consumptive (MCM) water use of O irrigated
Annually Calculate County PMO Calculated Indicator Two: SW, and Provincial cumulatively MCM 0 2 5 8 11 13.5 based on PO-2: Reduction GW, rainfall PMO in Groundwater El and irrigation overdraft (Hebei) observation Calculate ET County PMO Calculated Indicator with assistance cumulatively MCM (of 0 1 3 4 5.5 6.8 Annually based on Three: surface water from based on ET) PO-3: Reduction withdrawal, Provincial observation in consumptive GW table, PMO (MST) results of water use rainfall and irrigated irrigation agriculture observation (Shanxi) Annually Random County PMO Calculated Indicator Four: sampling with assistance average PO-4: increase in kg/ m' (of 1.0 1.05 1.1 1.15 1.20 1.20 based on crop from agricultural ET) types Provincial water O PMO (MST) productivity (Shanxi, Ningxia and Hebei) - 11 -
INTERMEDIATE RESULTS
Intermediate Result (Component One): To improve facilities and efficiency of water delivery and on-farm irrigation systems. Intermediate Semi- County PMO Construction Incremental Result indicator Km 0 10 15 20 21.77 21.77 annually enters MIS supervision One: O team 10-Ll a. Length of main canal lining/dredging Intermediate Semi- County PMO Construction Incremental Result indicator Km 0 15 39 58 80 92.82 annually enters MIS supervision Two team I0-1.1b. Length O of main water conveyance
Intermediate Semi- County PMO County PMO Incremental Result indicator Ha 0 9,000 24,000 39,000 50,000 58,466 annually enters MIS Three: based on I0-1.2a. Area completion/ equipped with supervision water-saving reports irrigation facilities
Intermediate Result (Component Two): To reduce non-beneficial ET, improve soil fertility and increase farm yield and output value. Intermediate Semi- Enter into County PMO Incremental, Result indicator Ha 0 4,500 12,000 19,500 27,000 30,020 annually MIS based cumulative One: on l0-2.1a. O completion farmland area reports with land leveling
Intermediate Semi- Enter into County PMO Incremental, Result indicator Ha 0 2,700 7,200 11,700 16,200 17,580 annually MIS based cumulative Two: on I0-2.1 b. O completion farmland area reports adopting plastic film covering_ - 12-
Intermediate Ha 0 4,000 11,000 17,500 22,000 24,428 Semi- Enter into County PMO Incremental, RP Tsult indicator H I I I I I I I annually MIS based cumulative 1hree: on 10-2. 1c. completion farmland area [0 reports adopting 'return crop residue to field' practice
Intermediate Ha 0 2,400 8,400 15,400 23,500 27,468 Semi- Enter into County PMO Incremental, Result indicator annually MIS based cumulative Four: on 10-2.1 d. completion farmland area [0 reports adopting balanced fertilizer applications Intermediate Ha 0 2.000 4.000 6.000 7.864 7,864 Semi- Enter into County PMO Incremental. Result indicator annually MIS based cumulative Five: on County I0-2.2a. agricultural farmland area l seeds adopting new & administratio improved seeds n and field confirmation Intermediate No. 0 1,000 2,100 4,000 5,500 6,920 Semi- Enter into County PMO Result indicator annually MIS based Six: on IO-2.3a. number completion of green houses reports operational Intermediate 000 Ton 546 600 685 Semi- Agricultural County PMO Typical food Result indicator annually experts crops refer to Seven: monitor in wheat, corn and I0-2.3b. Total O farm field paddy. Yield is yield of main based on to converted to food crops crop types standard crop I I I 0 11 1 yield. - 13 -
Intermediate Result (Component Three): To improve agricultural water management and building the capacity of irrigation management staff and Wt'As. Intermediate No. 0 30 80 150 210 259 Semi- Enter into County PMO Incremental, Result indicator annually MIS based cumulative One: on WUA 10-3.1a. number U monitoring of functional WUAs (new or strengthened) Intermediate. Person- 0 60 160 300 420 518 Semi- Enter into County PMO Incremental, Result indicator month annually MIS based cumulative Two: on payment 10-3. 1b. number request of farmers trained Intermediate No. 0 0 0 2 3 4 Annually Enter into County and Two counties Result indicator MIS based Provincial in Hebei and Three: on progress rivius one eacn in 10-3.2a. number Shanxi and of county level El Ningxia groundwater/ water resources management plan (strategic) Intermediate Descriptive Part of basic Water Water right Water right Semi- Progress and Hebei/Handan Measure at key Result indicator framework in right management management annually monitoring PMOs and stages Four: place system regulations system reports and Guantao l0-3.3a. design issued functional Bank County PMO Establishment of complete mission aide ET based water memoire right management system in Guantao County (Hebei)
Intermediate Descriptive Withdrawal Water right Water right Water right Semi- Progress and Ningxia PMO Measure at key Result indicator quota management management management annually monitoring and stages Five: (entitlement) system regulations system reports and Qingtongxia I0-3.3b. allocated to design issued functional Bank PMO Establishment of O county level complete mission aide an ET-based memoire Water Right (Entitlement) System and I - 14 -
Formulation of a 1ater Tr-Ao Strategy in t he Qmgtongxia Pilot Area (Ningxia)
Intermediate Result (Component Four): To ensure timely project inputs and support.
Semi- MIS and County/Provinc A web-based 10-4 estbsscriptive Not Function functional functional functional functional annually special ial PMOs under MIS enhanced results-based functional al monitoring CPMO by special M& E system O guidance monitoring reports