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TACR: People's Republic of China: Agricultural Infrastructure Technical Assistance Consultant’s Report Project Number: 43049 June 2011 People’s Republic of China: Agricultural Infrastructure Comprehensive Development Project Prepared by Beijing SINOC Investment Consulting Co., Ltd. People’s Republic of China For the State Office of Comprehensive Agricultural Development, People’s Republic of China This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design. ASIAN DEVELOPMENT BANK Project Number 43049- 03 ADB PPTA 7311 Agricultural Infrastructure Comprehensive Development Project Final Report June 2011 Report submitted by Beijing SINOC Investment Consulting Co., Ltd. This report has been prepared by a team of consultants contracted under ADB financed Technical Assistance PPTA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project. The views expressed in this report are those of the consultants and not necessarily those of the Government of the People’s Republic of China or the Asian Development Bank. Prepared by: Dr. John WICKS – Team Leader/Agricultural Economist Mr. DING Kunlun – Deputy Team Leader & Irrigation Engineer Mr. Richard HARDIMAN – Irrigation Engineer Mr. Gregory VEECK – Agriculture and Agro-forestry Specialist Mr. SI Zhizhong – Environment Specialist Ms. Bettina GRANSOW – Social Development Specialist Mr. Zhu Youxuan – Social Development Specialist Mr. LI Zhou – Agriculture and Agro-forestry Specialist Mr. MENG Fanqiao – Environment Specialist Mr. ZHENG Shaofeng – Financial Management Specialist Mr. LIU Qunchang – Feasibility Study Specialist Mr. ZHOU Mingyao – Feasibility Study Specialist Mr. SHI Guoqing – Resettlement Specialist Mr. CHEN Ajiang – Poverty, Participation, Ethnic Minority and Gender Specialist Mr. ZHU Xingming – Project Performance Monitoring System Specialist Key Data Sheet Name of Project: PPTA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Contractor: Beijing SINOC Investment Consulting Co., Ltd. Contracting Authority: Asian Development Bank 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines Start/End Date 19 October 2009 / 30 June 2011 Budget: US$791,500 Beneficiary: 6 participating provinces and autonomous regions Primary Location: 6 participating provinces and autonomous regions Secondary Locations: 69 counties/farms in the 6 participating provinces and autonomous regions Final Report / June 2011 Table of Contents 1 INTRODUCTION ................................................................................................ 1 1.1 Background ............................................................................................ 1 1.2 Project Deliverables ............................................................................... 1 1.3 Consultant Team and Organization ........................................................ 2 1.4 Consultants Schedule and Workplan ..................................................... 5 1.4.1 Personnel Schedule ....................................................................... 5 1.4.2 Workplan ........................................................................................ 5 1.5 Scope and Layout of this report ............................................................. 8 2 RATIONALE: SECTOR PERFORMANCE, PROBLEMS, AND OPPORTUNITIES ..................................................................................................... 9 2.1 Rationale ................................................................................................ 9 2.2 Sector Performance ............................................................................. 10 2.2.1 Comprehensive Agricultural Development .................................... 10 2.2.2 Agriculture .................................................................................... 12 2.2.3 Water Resources.......................................................................... 13 2.2.4 Project Provinces ......................................................................... 16 2.3 Government Policies and Plans ........................................................... 18 2.3.1 Agricultural Policies and Plans ..................................................... 18 2.3.2 Water Resource Policies and Plans ............................................. 19 2.3.3 Social Policies and Plans ............................................................. 19 2.4 Key Problems ...................................................................................... 21 2.5 Justification for ADB Assistance to CAD Program ................................ 24 2.6 ADB’s Country Strategy and Policy Dialogue ....................................... 24 2.7 Development Coordination and Lessons Learned ................................ 25 2.7.1 Development Coordination ........................................................... 25 2.7.2 Lessons Learned .......................................................................... 26 3 THE PROPOSED PROJECT ........................................................................... 28 3.1 Proposed Lending Modality .................................................................. 28 3.2 Impact and Outcome ............................................................................ 29 3.3 Outputs ................................................................................................ 29 3.3.1 Improved Irrigation and Drainage Infrastructure ........................... 29 3.3.2 Improved Irrigated Agriculture ...................................................... 30 3.3.3 Strengthened Project Management Capacity ............................... 31 3.4 Project Description ............................................................................... 31 3.4.1 Selection Criteria for Project Provinces ........................................ 31 3.4.2 Selection Criteria for Project Cities/Counties ................................ 32 3.4.3 Project Area ................................................................................. 33 3.4.4 Project Components ..................................................................... 33 3.5 Special Features .................................................................................. 35 3.6 Project Investment Plan ....................................................................... 37 3.7 Financing Plan ..................................................................................... 38 3.7.1 Flow of Funds ............................................................................... 38 3.8 Implementation Arrangements ............................................................. 39 3.8.1 Summary of Implementation Arrangements.................................. 39 3.8.2 Project Management .................................................................... 40 3.8.3 Implementation Period ................................................................. 41 3.8.4 Procurement ................................................................................. 41 3.8.5 Consulting Services ...................................................................... 41 3.8.6 Advance Contracting and Retroactive Financing .......................... 42 3.8.7 Disbursement Arrangements ........................................................ 42 3.8.8 Accounting and Auditing ............................................................... 43 3.8.9 Project Performance Monitoring and Evaluation ........................... 43 i Final Report / June 2011 3.8.10 Project Review ......................................................................... 44 3.9 Technical Assistance ........................................................................... 44 3.9.1 Capacity Development Technical Assistance ............................... 44 3.9.2 Solar-powered Irrigation Pilot ....................................................... 44 3.9.3 Rural Women’s Economic Empowerment .................................... 45 4 PROJECT BENEFITS, IMPACTS, ASSUMPTIONS, AND RISKS ................... 46 4.1 Project Benefits and Impacts ................................................................ 46 4.2 Financial Sustainability ......................................................................... 46 4.3 Economic Analysis ............................................................................... 47 4.4 Environmental Benefits and Impacts .................................................... 48 4.5 Social Dimensions ............................................................................... 48 4.5.1 Poverty Impact and Social Development ...................................... 48 4.5.2 Gender Equality and Women’s Development ............................... 49 4.6 Resettlement ........................................................................................ 51 4.7 Ethnic Minorities ................................................................................... 52 4.8 Risks and Mitigating Measures ............................................................ 53 5 OUTSTANDING ISSUES AND PROPOSED ASSURANCES .......................... 54 5.1 Outstanding Issues .............................................................................. 54 5.2 Proposed Assurances .......................................................................... 57 ii Final Report / June 2011 APPENDIXES 1. Project Design and Monitoring
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