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
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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
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APPENDIXES
1. Project Design and Monitoring Framework 2. Sector Analysis and Policy Framework 3. Problem Tree Analysis 4. Development Coordination 5. Lessons Learned 6. Key Features of County-Level Projects 7. Detailed Description of Project Components 8. Detailed Cost Estimates 9. Organizational Chart and Flow of Funds 10. Institutional and Capacity Analysis 11. Project Implementation Schedule 12. Procurement Plan 13. Project Performance and Monitoring System 14. Financial and Economic Analysis 15. Environmental Assessment 16. Summary Poverty Reduction and Social Strategy 17. Gender Action Plan 18. Gender and Development Cooperation Fund Proposal 19. Resettlement Framework 20. Ethnic Minorities Development Framework 21. Risk Assessment and Risk Management Plan 22. Capacity Development Technical Assistance 23. Pilot Solar-powered Irrigation Study 24. List of Persons Met 25. Comments Matrix
SUPPLEMENTARY APPENDIXES
A. Detailed Sector Analysis B. Detailed Cost Tables C. Completed Financial Management Assessment Questionnaires D. Completed Procurement Capacity Questionnaires E. Detailed Financial and Economic Analysis F. Initial Environmental Examination and Environmental Management Plans G. Poverty Reduction and Social Strategy H. Resettlement Plans for Selected Counties I. Ethnic Minority Development Plans for Selected Counties J. Integrated Information Management System for Comprehensive Agriculture Development K. Project Administration Manual
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List of Tables
Table 1.1: List of Reports ...... 2 Table 3.1: Project Investment Plan ...... 37 Table 3.2: Financing Plan ...... 38 Table 3.3: Implementation Arrangements ...... 39 Table 4.1: Summary of Provincial and Overall Economic Analysis ...... 47
List of Figures
Figure 1.1: Overview of PPTA Team Organization ...... 4 Figure 1.2: Personnel Schedule ...... 6 Figure 1.3: Work Plan ...... 7
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CURRENCY EQUIVALENTS (as of 1 September 2010)
Currency Unit – Yuan (CNY) CNY1.00 = $0.1495 $1.00 = CNY 6.69
ABBREVIATIONS AND ACRONYMS
ADB - Asian Development Bank AR - Autonomous Region CAD - Comprehensive Agricultural Development CDTA - Capacity Development Technical Assistance CEDAW - Convention on the Elimination of Discrimination against Women COCAD - County office for Comprehensive Agricultural Development CPMO - County Project Management Offices CPS - Country Partnership Strategy DfID - Department for International Development (UK) EA - Executing Agency EIA - Environmental Impact Assessment EPB - Environmental Protection Bureau (provincial level) FA - Farmer Association FIRR - Financial Internal Rate of Return FMA - Financial Management Assessment FMAQ - Financial Management Assessment Questionnaire FNPV - Financial Net Present Value FSR - Feasibility Study Reports FYP - Five-Year Plan GDP - Gross Domestic Product GEF - Global Environmental Facility GMO - Genetically modified organism IA - Implementing Agency ICB - International Competitive Bidding IEE - Initial Environmental Examination IFAD - International Fund for Agricultural Development IAIP - Irrigated Agriculture Intensification Project (World Bank) IPM - Integrated Pest Management MEP - Ministry of Environmental Protection MIS - Management Information System MOA - Ministry of Agriculture MOF - Ministry of Finance MWR - Ministry of Water Resources NDRC - National Development and Reform Commission NWCWC - National Working Committee on Women and Children O&M - Operation and Maintenance PLG - Project Leading Group PMO - Project Management Office POCAD - Provincial Office for Comprehensive Agricultural Development PPMO - Provincial Project Management Office PPTA - Project Preparation Technical Assistance PRC - People's Republic of China RF - Resettlement Framework RP - Resettlement Plan SIDD - Self-managed Irrigation and Drainage District
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SIEE - Summary Initial Environmental Examination SOCAD - State Office for Comprehensive Agricultural Development TA - Technical Assistance WACC - Weighted Average Cost of Capital WFP - World Food Programme WUA - Water User Association
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WEIGHTS AND MEASURES
ha – hectare km – kilometer km 2 – square kilometer kv - kilovolt kW - kilowatt masl - meters above sea level m2 – square meter m3/day – cubic meters per day m3/s – cubic meters per second mg/L – milligrams per liter mm – millimeter mu – a Chinese land measure approximately equal to 0.06667 ha, or 15 mu to 1 ha t - ton (1,000 kg) t/y – tons per year
NOTES
(i) The fiscal year (FY) of the PRC Government and its agencies ends on 31 December.
(ii) In this report, "$" refers to US dollars
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1 INTRODUCTION
1.1 BACKGROUND
1 The purpose of the technical assistance (TA) is to assist the Rural Development Office of the Ministry of Finance (MOF) to prepare a proposal for PPTA-7311-PRC, the Agriculture Infrastructure Comprehensive Development Project (the Project). The Project will be implemented in 69 counties/cities 1 in six selected provinces - Anhui, Heilongjiang, Henan, Jilin, Ningxia Hui Autonomous Region (Ningxia AR), and Yunnan. The Project is proposed to finance investments in: (i) rehabilitation and upgrading of irrigation and drainage systems, including dual-purpose systems together with creation/strengthening of Water Users Associations (WUAs); and (ii) improvements in irrigated agriculture including land development, introduction of improved agricultural technologies, formation/strengthening of farmer associations, and promotion of green agricultural products. The proposed interventions that comprise the subprojects should respond to the clients’ (male and female farmers) needs for improving farm productivity and at the same time should be acceptable to both the Government and the Asian Development Bank (ADB). In addition to the interventions for irrigation and agriculture development, the Project will support strengthening of project management at the Central, Provincial, and County levels to facilitate smooth implementation of the current project and to benefit anticipated future projects.
2 The draft design and monitoring framework is provided in Appendix 1.
The list of persons met during the PPTA is included as Appendix 24.
1.2 PROJECT DELIVERABLES
3 Standard reports as required by the ADB are summarized in Table 1.1. The submission dates are as agreed with ADB during the inception review workshop and subsequently modified, and differ to those detailed in ADB’s contract with SINOC.
4 Detailed comments on the Draft Final Report were received from ADB on 18 June and distributed to all consultants through the detailed Comments Matrix (Appendix 25) in order to obtain their responses and to provide the Final Report. The Draft Final Report was also reviewed during the final Review Meeting (July 27-28) and additional comments received.
1 The number of counties/cities was initially indicated to be 71 but the latest data from the executing agency indicates that 3 of the original projects in Ningxia Hui Autonomous Region have been combined into a single project. 1
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011
Table 1.1: List of Reports Report Comments Submission Date
Inception Report a Draft inception report submitted 19 November, 2009, and revised December inception report taking into account ADB comments submitted 4 2009 January 2010.
Interim Report Submitted. Contains the Rationale: Sector Performance, Problems, 8 March 2010 and Opportunities; Project Details; preliminary Project Benefits, Impacts, Assumptions, and Risks, preliminary economic, social, and environmental safeguards; and preliminary frameworks
Submitted. Builds on the material presented in the Interim Report Draft Final Report plus new appendixes required for the ADB’s new processing 4 June 2010 procedures
Final Report Revised version of the DFR including the comments of ADB, the September EA and the IAs. Due to problems related to revision of project 2010 scope and costs, together with delays in upgrading social aspects to the required standard, the Final Report submitted at this stage does not include all of the required information
Revised Final This report. An update of the final report based on the revised December Report project scope and costs provided by the Government to the 2010 Consultant in October 2010 together with the revised environmental analysis based on the domestic Environmental Assessment and the revised EMDPs and EMDF.
1.3 CONSULTANT TEAM AND ORGANIZATION
5 The initial consultant mobilization took place on 18 October 2009 with the mobilization of the national consultant members of the Team and the International Environment Specialist, Mr. Si Zhizhong. The International Social Development Specialist, Ms. Bettina Gransow, participated in a Project Preparation Technical Assistance (PPTA) Team Meeting on 26 October and established communications with the national consultants for the social aspects of the study. However, she did not mobilize effectively until 6 December. The International Agriculture and Agro-forestry Specialist, Mr. Gregory Veeck, assisted the national consultant on the basis of home office contributions. Due to unanticipated circumstances the other international specialists were not mobilized during the inception phase and two specialists – the Team Leader/Agricultural Economist and the Irrigation Engineer – were replaced. Mobilization of the remaining international consultants was achieved with the arrival of the Team Leader/Agricultural Economist, Dr. John Wicks, and the Irrigation Engineer, Mr. Richard Hardiman, on 30 November. The team was finally fully mobilized with the arrival of the International Agriculture and Agro-forestry Specialist on 13 December.
6 The first phase of the PPTA, including preparation of the inception and interim report, was undertaken on a predominantly home-office basis with the Team Leader being the only consultant permanently in the PPTA office. Both international and national consultants participated in most of the field trips to the six provinces and attended the inception workshop but otherwise undertook all report preparation at their home offices in China and overseas. All international and national consultants participated in the interim report workshop and presented their individual areas of expertise. One of the key areas of discussion during the workshop was the impact of the ADB’s new procedures and safeguards policy on the
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ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 expected outputs from the TA. As a result of these discussions some additional sections and appendixes have been added the contents. In addition, the draft Project Administration Manual was agreed to be prepared as an additional Supplementary Appendix. The interim review meeting provided the opportunity for the consultants to meet for discussion of the requirements for preparation of the draft final report, but subsequent to that meeting all contributions have been prepared on a home office basis.
7 Despite having access to email and other forms of internet communications the lack of physical presence of a substantial part of the project team in a central office for a significant part of TA implementation, together with many consultants providing only a part-time input to the study, has undoubtedly had a negative impact on progress due to a combination of the impact of different time zones, the problems of communicating rapidly with team members, and the impossibility of conducting regular team meetings to discuss project formulation. This has been further frustrated by the need for repeated updating of basic project data as errors and inconsistencies have been identified and corrected, followed by circulation to all team members.
8 An overview of team organization and its links to the EA and the financing agency is shown in Figure 1.1 with the consultants broken down into separate working units to improve operational efficiency. Each group was headed by an international consultant who was ultimately responsible for the group’s outputs. While this, to some extent, facilitated TA implementation, it caused further communication problems due to the dispersal of each of the groups.
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ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011
Figure 1.1: Overview of PPTA Team Organization
Executing Agency Financing Agency SOCAD -State Office of Comprehensive Agricultural Development AD B
Project Support Project Direction John W ICKS JIANG Yaoying Team Leader GUO Junjie/Secretary DING Kunlun YUAN Chunyu/Translator Deputy Team Leader
PROJECT MANAGEMENT, TECHNICAL UNITS SAFEGUARDS UNITS ECONOMICS & FINANCIAL UNITS
IRRIGATION & DRAINAGE AGRICULTURE & AGRO -FORESTRY PROJECT MANAGEMENT ECONOMIC & FINANCIAL SOCIAL Environment John W ICKS Bettina GRANSOW Richard H ARDIMAN Gregory V EECK Agricultural Economist Social Development John W ICKS SI Zhizhong Irrigation Engineer Agriculture and ZHU Xin gming Agricultural Economist Specialist Agro -forestry Specialist PPMS Specialist Zhu Youxuan Environment Specialist Social Dev. Specialist LIU Qunchang DING Kunlun LI Zhou ZHENG Shaofeng SHI Guoqing Feasibility Study Specialist Resettlement Specialist MENG Fanqiao Irrigation Engineer Agriculture and Financial Management Specialist Agro -forestry Specialist ZHOU Mingyao CHEN Ajiang Environment Specialist Feasibility Study Specialist Pov., Participation, Ethnic Minority, Gender Specialist
Source: PPTA Consultant
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ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011
1.4 CONSULTANTS SCHEDULE AND WORKPLAN
1.4.1 PERSONNEL SCHEDULE
9 The revised personnel schedule agreed during the Inception Workshop and included in the revised Inception Report has been subsequently updated to reflect the inevitable delays experienced due to data problems and delays in the domestic EIA process. The final personnel schedule, excluding all inputs provided after the final review meeting particularly relating to the extended time required due to the major cost and scope changes made during domestic preparation, is shown in Figure 1.2.
1.4.2 WORKPLAN
10 The workplan was agreed during the Inception Workshop and modified during the interim workshop and subsequently to reflect the delays that have occurred largely through the lack of data. The final workplan is shown in Figure 1.3. The Consultant has managed in general to maintain the schedule agreed in the interim workshop although finalization of the report has been delayed by delays in receipt of the revised project scope and costs in an acceptable form and delays in completion of the domestic Environmental Impact Analysis.
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ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011
Figure 1.2: Personnel Schedule 2009 2010 MONTHS INPUT Name Position OCT NOV DEC JAN FEB MAR APR MAY JUN JUL Field Home Total 1 2 3 4 5 6 7 8 9 10 International Consultants John Wicks Agricultural Economist/TL 4.25 2.75 7 Richard Hardiman Irrigation Engineer 1.5 1 2.5 Gregory Veeck Agriculture and Agro-forestry Specialist 1.5 1.5 3 SI Zhizhong Environment Specialist 2 0 2 Bettina Gransow Social Development Specialist 1 0 1 Subtotal 10.25 5.25 15.5 National Consultants DING Kunlun Irrigation Engineer/DTL 6 1 7 LI Zhou Agriculture and Agro-forestry Specialist 3 1 4 MENG Fanqiao Environment Specialist 4 1 5 ZHENG Shaofeng Financial Management Specialist 2.5 2 4.5 LIU Qunchang Feasibility Study Specialist 1 3 0 3 ZHOU Mingyao Feasibility Study Specialist 2 3 0 3 SHI Guoqing Resettlement Specialist 2.5 0.5 3.5 CHEN Ajiang Poverty, Participation, Ethnic Minority,Gender Specialist 4 1 5 ZHU Xingming Project Performance Monitoring System Specialist 2 0 2 Subtotal 30 6.5 37 Total 40.3 11.8 52.5
Field (Int'l Cons) Home base (In'l.& National Cons.)
Field (National Cons) Home Base (Intermittent inputs)
Source: Consultant’s estimates and records
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ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011
Figure 1.3: Work Plan 2009 2010 Activity OCT NOV DEC JAN FEB MAR APR MAY JUN JUL 1 2 3 4 5 6 7 8 9 10
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 31 32 33 34 Phase I (4.5 months) 1.1 Hold commencement meeting with TMO of MOF 1.2 Translate Chinese version of National Proposal 1.3 Hold commencement meetings with provincial TIOs and TMO of MOF 1.4 Review proposals from provincial TIOs - 2 or 3 day visit to each province 1.5 Identify and collect top-level socio-economic information on each province 1.6 Identify and collect top-level information on agricultural situation in each province 1.7 Develop engineering, agricultural production, and financial/economic criteria for project evaluation and selection 1.8 Draft first-cut of project rationale and project design/monitoring framework 1.9 Submit Draft Inception Report ▲ 1.10 Inception Workshop with TMO and TIOs ● 1.11 Revise Inception Report based on ADB's comments 1.12 Submit revised Inception Report ▲ 2.1 Provinces prepare & submit proposed proposed provincial and representative county FSRs 2.2 First phase of poverty, ethnic minority, gender analysis 2.3 First phase of environmental analysis 2.4 Evaluate agricultural production and engineering by province and for each project 2.5 Preliminary evaluation of financial/economics for each province 2.6 Final selection of projects from each province 2.7 Revise project rationale and design monitoring framework 2.8 Develop project strategy 2.9 Submit Interim Report ▲ 2.10 Midterm Workshop with ADB, TMO, TIOs ●
Phase II (4.0 months) 3.1 Complete detailed review of agricultural production and engineering for each project/province 3.2 Complete poverty, ethnic minority, gender analysis 3.3 Complete environmental analysis 3.4 Conduct resettlement analysis 3.5 Complete financial and economic analysis for each province 3.6 Complete project cost estimates, financing and procurement 3.7 Review and update project strategy and design and monitoring framework 3.8 Complete project implementation issues 3.9 Prepare Draft Final Report 3.10 Submit Draft Final Report ▲ 3.11 Final Workshop with ADB, TMO, TIOs 3.12 Review project design and budget with TMO and TIOs 4.1 Edit Final Report 4.2 Submit Final Report ▲ Source: Consultant’s estimates and records
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ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011
1.5 SCOPE AND LAYOUT OF THIS REPORT
11 Following this introductory chapter the remainder of the Final Report is set out broadly following the format used up to the end of 2009 for ADB’s Report and Recommendation of the President but with some additional material as agreed at the Interim Report Review Mission to accommodate ADB’s new business procedures commencing in 2010. The report is divided into the main report containing 5 chapters, together with 25 appendixes and 11 supplementary appendixes. The layout of the Final Report differs to that of the Draft Final Report due to (i) the combination of the inclusion of Appendix 14 Financial Sustainability in Supplementary Appendix E Financial and Economic Analysis and the addition of a brief section in Appendix 15 Economic Analysis together with renaming of this appendix as Appendix 14 Financial and Economic Analysis ; and (ii) merging of Appendix 20 Resettlement Plan Framework and Appendix 21 Identification of Resettlement Issues into a new Appendix 19 Resettlement Framework. A new Appendix 25 has been included to summarize the comments from ADB and the Consultant’s responses.
12 Chapter 2 sets out the rationale for the proposed project in terms of a summary of sector performance, identification of problems, external assistance to the sector and lessons learned from similar internationally funded projects, and opportunities for ADB investment. A new section has been included to provide a summary of the sector analysis Chapter 3 outlines the proposed Project in terms of the preferred lending modality, impact and outcome, outputs, project description, special features, project investment and financing and implementation arrangements, together with a summary of implementation arrangements and a capacity development technical assistance (CDTA). Chapter 4 details the project benefits, impacts, assumptions and risks: areas that are covered under due diligence in the new format. Chapter 5 focuses on outstanding issues that need to be reviewed with the government and proposed assurances for successful project implementation. It also highlights some areas that should be considered by each of the provinces as they prepare their provincial proposals.
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ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011
2 RATIONALE : SECTOR PERFORMANCE , PROBLEMS , AND OPPORTUNITIES
2.1 RATIONALE
13 Comprehensive Agricultural Development . The CAD program was introduced in 1988 in response to the nation’s food security problems resulting from population growth, arable land loss, weak agricultural production capacity, land degradation and unchecked soil erosion, and lack of local government capacity to address the issues. The program promotes improving the yield-capacity of farmland through improving field-level irrigation systems, promoting improvement of soil quality, and improving agricultural production capacity through a range of related activities including strengthening/formation of Water User Associations (WUAs) and farmer associations (FAs).
14 The CAD program has a dynamic structure whereby qualifying counties (and state farms) can be admitted as CAD counties (farms) for the purpose of implementing CAD projects and are retained subject to satisfactory performance and the continued availability of land that needs improvement. CAD counties withdraw from the program when there is insufficient land requiring improvement. The total number of CAD counties in 2008 was 1,965, or 69% of the national total of 2,859, and there were also 202 CAD farms. The six proposed project provinces include 437 CAD counties, 73% of the total 602 counties, and 21 CAD farms.
15 Grain and Food Crop Production . While grain production in China reached 528.7 million tons (t) in 2008 and is projected to grow over the next decade, producing the increases that are required to meet the goal of >95% self-sufficiency for a population expected to peak at around 1.46 billion in 2030 is a challenge. Domestic grain demand is expected to reach 700 million t by 2050 as diets diversify and meat consumption increases. This is also expected to place demands on the production of non-grain, particularly cash, crops. A second major challenge is to ensure that rural incomes do not lag behind those of urban residents, a basic requirement for a harmonious society. Modernizing the agricultural sector through preserving and improving the arable land base thus become a priority for all levels of government.
16 Agricultural Modernization . To ensure food security and improve farm incomes, agricultural production and product quality, safety, and market values must be raised. The production efficiency and competitive capability of farmers must be enhanced to meet market-demand requirements for new products, including organic products. This will require investments to modernize agricultural production through (i) more and improved agricultural support services, (ii) increased crop diversification to higher value crops including organic grains, (ii) adoption of better quality and higher-value varieties, (iii) greater production and efficiency, and (iv) improved techniques for environmental management and protection. Promotion of FAs provides one of the important mechanisms for achieving these objectives.
17 Water Resources . Water availability remains the greatest challenge to agricultural development with agriculture currently using 63.5% of the national water budget of 550 billion cubic meters (m3). Forecasts indicate that this must be reduced to 37-46% of an estimated 675-750 billion m 3 by 2050 to increase the increasing demands of the industrial and domestic sectors. Since most of China’s water resources are already fully exploited, these savings must be obtained from increased water use efficiency. As much as water scarcity seriously affects agricultural production, so water logging impacts crop yields particularly in coastal and
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ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 low-lying plain areas where the land is close to sea level and the water table is high. Nationally, there are 24.4 million hectares (ha) of cultivated land prone to water logging, and this problem is of concern in the project provinces of Anhui, Heilongjiang and Jilin. In addition there is about 7.3 million ha of cultivated land prone to salinity including in the project province of Ningxia.
18 Much of the total national irrigated area in 2008 of 59 million ha, which represents 40% of the total area of arable land, was constructed between the 1950s and 1970s and is in need of either rehabilitation or completion of field level infrastructure. Introduction of water-saving technologies, including lining of earthen canals, could have a significant impact on water use efficiency. Average water use efficiency was reported as 0.48 in 2008 and the Ministry of Water Resources (MWR) is aiming to increase this to 0.50 in canal irrigation systems and 0.90 in tubewell systems. The current water use efficiency in the project area is undoubtedly much lower due to the widespread poor condition of the irrigation systems.
19 Water User Associations . About 46% of China’s irrigated area is managed through water companies or irrigation bureaus, an additional 27% is farmer-managed, and the remainder is farmer-managed through groundwater extraction. WUAs have an important role to play in the management of water at the sub-lateral and lower level as well as in the operation and maintenance (O&M) of the infrastructure. The concept of WUAs was introduced to China by the World Bank in 1994, and there were about 34,000 WUAs in China at the end of 2006. While WUAs are proposed as the best irrigation management practice, enhancing farmer participation, many outstanding issues need to be addressed. In particular there is a lack of farmer and in particular female farmer participation, strong links to village leaders, and a tendency for organization on political rather than hydraulic boundaries. Furthermore, most WUAs have only an informal status while some have legal status under the Farmer Associations Law , 2007, and are registered at the Civil Affairs Bureau.
2.2 SECTOR PERFORMANCE
20 This section summarizes the findings relating to sector performance in agriculture and water resources as they relate to the CAD program, and the following section summarizes the relevent government policies and plans. The analysis is set out in greater detail in Appendix 2 and a comprehensive treatment is provided in Supplementary Appendix A
2.2.1 COMPREHENSIVE AGRICULTURAL DEVELOPMENT
21 CAD was developed and introduced in 1988 in response to specific conditions facing PRC’s agricultural sector, in particular (i) population and arable land loss were increasing, threatening the nation’s food security and forcing the PRC to spend scarce foreign exchange for food grain and feedstuffs; (ii) agricultural production capacity was weak in many parts of the country, in part due to an excessive amount of low yielding farm land vis-à-vis total arable land; (iii) local governments lacked the tools to reverse the trend; (iv) disaster-affected crop land accounted annually for about 20% of total sown area; and (v) a high proportion of arable land was degraded, and soil erosion was unchecked in many areas. Up to 2007 total funding amounted to CNY320.3 billion, providing direct benefits to about 30 million farmers and indirect benefits from CAD-supported agriculture industrialization projects to a further 20 million.
22 The program promotes (i) converting low-yielding fields to high-yielding fields; (ii) improving irrigation systems and introduction of water-saving technology; (iii) improving agricultural production capacity, especially grain production capacity within the main producing areas; (iv) promoting regional agricultural comparative advantage in crop selection and post-harvest processing; (v) promoting agricultural and rural economic restructuring; (vi) 10
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 improving the organization level of farmers; (vii) reducing soil erosion and water loss; (viii) improving the agricultural ecological environment and promoting sustainable agricultural development; (ix) promoting agricultural industrialization, including infrastructure construction for agricultural products storage and transportation, preservation, processing and wholesale markets; and (x) supporting agricultural science and technology demonstration and extension, including technology demonstration and technology promotion. CAD thus represents a complex integrated approach to agricultural development.
23 The number of CAD counties has increased from 495 in 1988 to 1,965 in 2008, 2 while the number of CAD farms has decreased from 251 to 202. The number of CAD counties represents 69% of the total county-level regions in the country. The six project provinces include 437 CAD counties and 21 CAD farms out of a total of 602 counties. The CAD counties are thus 73% of the total counties and the 68 CAD counties and 1 CAD farm included in the project represent 15% and 5%, respectively, of the provincial totals. According to national CAD policies, admission of a county to the CAD program must follow a clear set of procedures. For provinces where there is no limit on the number of CAD counties, any county that meets the conditions for CAD can apply for project approval. For provinces where the number of counties is restricted, the counties with the larger potential can apply subject to the number of counties that have exited the program. The conditions for declaring and validating a new CAD county are also defined. 3 A CAD county can have its status suspended or cancelled if it fails to follow the required procedures, violates CAD discipline, fails to consult with farmers, or misappropriates project funds. The rectification and reform period for a suspended county is one year and for a cancelled county 2 years. If corrective measures are in place by the end of this period, suspended counties can be reinstated and cancelled counties can reapply for approval according to the application procedures.
24 One of the key focuses of the CAD program is the upgrading of low- and medium-yielding land to medium- and high-yielding land. According to the Ministry of Agriculture (MOA) low-, medium-, and high-yielding land is defined by region based on the yield of the dominant crop, or cropping pattern: for example the categories for the Northeast China Plain, including Heilongjiang and Jilin, are defined by the yield of rice or maize and the lower limit for high-yielding land is 9.0 t/ha while the upper limit for low-yielding land is 6.0 t/ha. For the North China Plain, including Anhui and Henan, the categories are defined based on a maize-wheat cropping pattern with the lower and upper limits at 12.0 t/ha and 7.5 t/ha for high- and low- yielding land, respectively. Based on these classifications, 32% of the national cropped area is classified as low-yielding and 35% as medium-yielding.
25 Monitoring of CAD projects is largely the responsibility of individual Provincial Offices of Comprehensive Agricultural Development (POCADs), who collate data collected by the provincial offices, prepare reports and forward them to the State Office of Comprehensive Agricultural Development (SOCAD). Monitoring is largely an ad hoc process, particularly for domestic CAD projects, although a multi-province, project-wide approach has been developed for the World Bank financed projects. As a consequence different POCADs are at different levels of development regarding project monitoring, ranging from reliance on traditional tabular approaches to initial work on geo-referenced monitoring systems with the capacity for data mapping. As a result, each has a different concept of potential of project monitoring and different demands on a future system (Supplementary Appendix J).
2 Including 2 units with county-level authority - Liaohe Farms and Land Reclamation Administration of Shuangliao city in Siping City, and Gongzhuling National Agricultural Science & Technology Zone of Gongzhuling city in Siping City. 3 For conditions of becoming a CAD county and conditions for validating and declaring a new CAD county see Appendix 2, Section A2.2. 11
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011
2.2.2 AGRICULTURE
26 In 2008, China’s grain production reached a record 528.7 million t, marking seven consecutive years of increase. Further increases are required if the nation is to meet its goal of providing >95% of the grain needs for a population expected to peak around 1.46 billion by 2030. Domestic grain demand may reach 700 million t in 2050 as diets diversify and meat consumption increases even as population stabilizes and then declines. Feeding this population, while meeting the needs of the expanding agro-processing industry, is one of the sector’s two major challenges. The second, and closely related, requires that rural incomes do not lag further behind those of urban residents, a requisite for a harmonious society. Current goals call for increasing grain production to 540-550 million t by 2020 while simultaneously doubling rural per capita incomes. 4 For these goals to be met, technical and environmental innovations and related programs for the sector must be continued and expanded.
27 Modernizing the agriculture sector and successfully developing a New Socialist Countryside are priorities at all levels of government. Legislative support has been coupled with funding at unprecedented levels. 5 In 2009, central government financial support was CNY716.14 billion, up 20.2% over 2008, and more than double that allocated in 2006. 6 Substantial additional investment is needed especially with respect to the rational use of water and land resources, improvements to these stocks, and development of institutions and organizations that allow the most effective use of infrastructure and crop production technologies.
28 Preserving and improving the China’s arable land base is also critical. Every year, farm land is lost to urban/industrial development and environmental degradation, including desertification and salinity. Land regulations must be more effectively enforced. New programs associated with land improvement, already heavily subsidized, must receive even greater fund allocation and promotion throughout the nation. To ensure food security and improve farmer incomes, agricultural production and product quality, safety, and market values must be raised. At the same time, the production efficiency and competitive capability of farmers must be enhanced to meet market-demand requirements for new products, including organic products. This will require investments to modernize agricultural production through (i) more and improved agricultural support services, (ii) increased crop diversification to higher value crops including organic grains, (iii) adoption of better quality and higher-value varieties, (iv) greater production and efficiency, and (v) better techniques for environmental management and protection such as afforestation, balanced fertilizer application, more effective use of organic fertilizers, integrated pest management (IPM), and conservation tillage.
29 China’s agricultural experts realize that synergies can be achieved when infrastructure investments are made in conjunction with technical improvements and training. Recently more investment has been dedicated to training together with more appropriate extension offerings. Current legislation provides for training covering a wide range of technical classes including farm equipment use and maintenance, use of straw and organic manures, IPM, field leveling, deep plowing, transplanting techniques, and crop marketing. Much more needs to be done, and the quality of the extension personnel and courses must be continuously improved.
4 NDRC, 2009 . Production Capacity Plan (2009-2020) for A Nation-wide Increase of 50 Billion Kilograms of Grain , Beijing, November 2009 5 China’s Eleventh Five Year Plan for National Economic and Social Development (2006-2010). http://www.gov.cn/english/special/115y_index.htm 6 Li Lihui, 2009, “2009 Witnesses a New High in the Central Fiscal Support for Agriculture, December 31, People’s Daily, http://english.agri.gov.cn/ga/news/200912/t20091231_1540.htm 12
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30 Central to these activities are the ubiquitous, albeit extremely variable in quality, FAs. Agricultural technology, market information, and market access can be improved substantially with the establishment of more comprehensive FAs, which are seen as central to the promotion of new technologies, new crops and products. FAs must be promoted and developed into more professional organizations offering services for a wide range of crops and opportunities in contrast to single-product “growers associations”. WUAs, as a specialized form of FA, are also central to the continued health and success of the agricultural sector. Women have increasing responsibilities both in agriculture and irrigation because men migrate to cities for work. Case studies for several villages in Gansu Province show that women's participation in new WUAs is minimal. The implications of this gender difference for effective and equitable water management have been largely ignored. Given the growing share of farm work conducted by women in the project areas, greater attention must be directed at training and incorporation of women into all types of FAs.
2.2.3 WATER RESOURCES
31 Water availability remains the greatest challenge to agricultural development. The national annual water budget for 2050 for agriculture, industry and domestic use is estimated at between 675 billion m 3 and 750 billion m 3,7 a 20-33% increase above the current level of about 550 billion m 3. Moreover forecasts have indicated that the current water allocation to agriculture of 63.5% must be reduced to 37-46% to satisfy the increasing demands of the industrial and domestic sectors. 8 Most of China’s water resources have already been fully exploited and only a few niche areas remain where further water can be extracted. Some of these are in the project areas.
32 Surface water from rivers and lakes are allocated to provinces by the seven River Commissions under the MWR, which are in charge of the water resources of China’s seven major river basins. However there is insufficient monitoring of the actual volume of water extracted by the provinces, which often exceed their allocation. MWR is aware of this and currently considering installing volumetric measuring at various extraction points. The Yellow River Conservancy Commission is imposing more austere measures for water allocation and regulation based on real-time measurements. Groundwater allocation is less regulated: a license is required to extract a specified volume of water from groundwater resources but monitoring only takes place in selected wells.
33 Water scarcity is a major problem affecting agriculture. Between 2001 and 2006 an average of 35 million t of grain/year was lost due to drought (7% of total output), which affected an average of 25 million ha (20% of the total cultivated area).9 Water scarcity is most serious in the North China Plain, in particular the project provinces of Anhui, Henan, and Ningxia AR. Moreover increased groundwater extraction is resulting in the groundwater tables in northern China dropping at an alarming rate. 10 In parts of the North China Plain the groundwater table is dropping at about 1.0 m/year resulting in groundwater funnels, ground subsidence and sea-water intrusion. To resolve China’s water scarcity problems the Government has targeted technologies to increase water supply through developing
7 Jingzhu Zhao et. al (2007): Opportunities and challenges of sustainable agricultural development in China; State Key Laboratory of Urban and Regional Ecology, Research Center for Eco-environmental Sciences, Chinese Academy of Sciences 8 University of East Anglia, 2008. The Impacts of Climate Change on Chinese Agriculture - Phase II, National Level Study: The Impacts of Climate Change on Cereal Production in China , Report to DEFRA (now DECC) and DfID. 9 Hu Si Yi (Vice Min, Water Resources, personal communication 10 Wang, J., S. Rozelle, A. Blanke, Q. Huang, and J. Huang. 2005. The Development Challenges and Management of Groundwater in Rural China , ed. M. Giordano, and T. Shah, Colombo, Sri Lanka: International Water Management Institute. 13
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 comprehensive canal networks and constructing larger reservoirs. 11 However, this strategy is insufficient and focus is needed on increasing water use efficiency and better management practices.
34 As much as water scarcity seriously affects agricultural production, so water-logging impacts crop yields in parts of China. There are 24.4 million ha of cultivated land prone to water-logging, which is particularly prevalent in coastal and low-lying plain areas where the land is close to sea level and the water table is high. Of the project provinces water-logging is of concern in Anhui, Heilongjiang, and Jilin. Water-logging is mostly alleviated by open drainage canals: subsurface, mole and tube-well drainage and drainage by pumping are less common due to cost. Whilst considerable investment has been made to reduce water-logging the lack of field drains for effective control remains a major constraint to crop production.
35 There are 7.3 million ha of cultivated land still prone to salinity, which has a serious impact on crop yield. Salinity is mainly prevalent in northern China as a result of low rainfall, high evaporation rates and high water tables. Two approaches are used to rehabilitate saline land: (i) tube-well pumping, which has a dual function of drainage and irrigation and is widely used in the North China Plain (Anhui, Shandong and Henan Provinces and Ningxia AR) where drought, water-logging and salinity coexist; and (ii) construction of irrigation and drainage canals to leach out salts, which is used in combination with a rotating cropping system of paddy and dry land crops (wheat and maize) where local water resources are more plentiful. A large area of saline-alkaline wasteland has been reclaimed by this method in Xinjiang AR and Ningxia AR.
36 The total irrigated area in China in 2008 was 59 million ha, comprising 40% of total arable land (122 million ha). The irrigated area increased by about 22% between 1980 and 2003, with the most dramatic increase (almost 20%) since 1990. However, much of the irrigation infrastructure was constructed between the 1950s and 1970s and comprises earthen ditches particularly in sub-lateral and lower level canals, which result in leakage and low water use efficiencies. Based on MWR definitions, 24 million ha (38% of the irrigated area) uses water saving irrigation methods. 12 The remaining 62% must improve water use efficiency to ensure that agricultural and grain production meet future demand while limiting the use of water. Inefficient and degraded irrigation systems must be improved, regional coordination of water consumption must be initiated, and WUAs must be organized to promote rational pricing and conservation. MWR’s current strategy aims to increase the canal irrigation coefficient to 0.50 through lining canals, and the tubewell irrigation coefficient to 0.90 by installing low pressure pipes. 13 The 2008 average irrigation coefficient was reported to be 0.48 in 2008, and MWR intended to increase it to 0.50 by 2010. 14 However, it may be presumed to be much lower in the project areas, where the canals are predominantly earthen. The increase in efficiency by rehabilitating/converting earthen canal irrigation with canal lining, low-pressure pipes, sprinkler irrigation and micro-irrigation is estimated at about 20%, 30%, 40% and 60% respectively.15
37 In addition to the resultant water saving there will be reduction of percolation of water to the groundwater and enable irrigation water in canals to reach extended areas and
11 Boxer, B. (2001), Contradictions and challenges in China's water policy development, Water International 26 : 335-341. Ross, L. (1983), Changes In Water Policy In The Peoples-Republic-Of-China, Water Resources Bulletin 19 : 69-72. 12 2008 Statistic Bulletin on China Water Activities. Edited by Ministry of Water Resources. 13 Hu Si Yi (Vice Min, Water Resources), personal communication 14 MWR, 2009. 2008 National Water Resources Development Statistics Bulletin . Beijing 15 MWR. 1999. Paper Collections on China Water-saving Agriculture Issues . China Water Press, Beijing. H Wang, et al. 2008: Study on water use trend and strategic countermeasures in China . MWR. S. Zhou, et al. 1991: Well irrigation with low-pressure pipe for water conveyance in Xiongxian of Hebei Province (project report). 14
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 therefore enlarge the total irrigation area using the same volume of water. It is estimated that 75.7 million m 3 of water can be saved annually throughout the project area by introduction of water saving methods, which, is equivalent to irrigation of an additional 15,000 ha (Appendix 2, Section A2.4.5). The project will increase the total irrigated area from 58,529 ha (without project) to 97,528 ha (with project), an increase of 38,729 ha. This will require an incremental water supply of 191 million m3, which will increase total water use in the project by 115.3 million m 3, a substantial but acceptable increase particularly since the areas where increases are expected are those with more than sufficient water available.
38 About 46% of China’s irrigated area is managed through water companies or irrigation bureaus, an additional 27% of the area is farmer-managed and the remaining 27% is farmer-managed through groundwater extraction. The mechanism of management of each type is different. Surface irrigation water from rivers, lakes or reservoirs is managed at the source by irrigation bureaus or water companies and lateral/sub-lateral distribution of water is managed by the township or village government. Management of the irrigation scheme is usually in accordance with administrative boundaries of the township/village and not with hydrologic boundaries of the irrigation scheme. This causes considerable difficulties in water distribution management. Management of groundwater resources for irrigation is simpler and in most instances involves a small group of about 10 farm households sharing one well covering about 50 mu (3.3 ha) of land. Farmers come to a common agreement on well location and ownership, and pay an extraction fee for water. When the pump needs replacement, the farmer group covers the cost.
39 The concept of WUAs was introduced to China by the World Bank in 1994 through ‘Self-managed Irrigation and Drainage Districts’ (SIDDs) which comprise two parts: (i) a water supply organization (irrigation bureau or water company) responsible for delivery of water from the head works and trunk canal system; and (ii) a farmer-led WUA responsible for the irrigation delivery system to the farmers. According to the MWR there were about 34,000 WUAs in China at the end of 2006. SOCAD has produced a series of training and operational manuals to promote the adoption and functioning of WUAs.16
40 While WUAs are proposed as the best irrigation management practice enhancing farmer participation, democratic election processes, equitable water distribution, water saving and transparency, many outstanding issues still need to be addressed: 17
(i) Farmer participation in WUA election processes and decision making is only 25%;
(ii) Water saving is largely a result of financial incentives to water managers regardless irrigation management format;
(iii) Most WUAs have strong links to the village leaders; and
(iv) In areas where canals have been re-lined, irrigation is mainly under traditional collective management;
16 1. Self-Managed Irrigation District Training Material (by CAD Office Under MWR and SOCAD under MOF) (October 2001). 2. WUA Theory and Practice (By State Office of Comprehensive Agriculture Development of MOF) (June 2005). 3. Manual for WUA Establish and Operation Capacity Building on Rural Women Participating in WUA Activities (no English documents are available) 17 Huang Qiuqiong, Rozelle S., Wang J., Huang J. 2009. Water management institutional reform: A representative look at northern China. Agricultural Water Management, Vol 96/2, pp 179-348. Wang Jinxia, X. Zhigang J. Huang, S. Rozelle. 2006. Incentives to managers or participation of farmers in China’s irrigation systems: which matters most for water savings, farmer income, and poverty? Agricultural Economics. 34: 315–330. 15
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In the case of groundwater irrigation, formation of formal WUAs is less necessary where there are small farmer groups using a common tube-well, but could be necessary where farmers are using a common power source for a cluster of tube-wells particularly if the groundwater table is declining and needs to be monitored and controlled. Common decision making is critical where groundwater resources are scarce.
41 Whereas WUAs can help to ensure equitable distribution of water within the WUA, they have no power or control over allocation of water between different irrigation districts. Conflicts can arise between irrigation districts in water-scarce areas and could be resolved through establishment of WUA federations. To date there is no information that such federations have been created in China. Financially, WUAs are supported by the Water Company/Irrigation Bureau, which returns 1% of funds collected from water tariffs to the WUAs to cover basic salary costs and costs of cleaning canals. These are insufficient for major repairs.
42 In the project area WUAs take various forms of management including cooperatively managed, farmer managed, and government managed. In some locations WUAs have been operating for several years. Most WUAs have only an informal status while some have legal status under the Farmer Associations Law , 2007, and are registered at the Civil Affairs Bureau.
43 Surface water irrigation water tariffs are CNY0.035-0.055/m 3 and are determined by the local Pricing Bureau taking socio-economic factors into consideration. However, revenue from tariffs is inadequate to cover canal/reservoir maintenance costs. Irrigation water released from reservoirs or rivers is measured by volume but water tariffs paid by farmers are based on irrigation/unit area and are extremely low, giving farmers little incentive to save water, and often do not warrant the manpower invested in collecting fees. 18 Increasing water tariffs is an extremely sensitive issue and farmers demonstrate extreme reluctance to any increase in the cost of inputs. Moreover, increases in water price would result in reluctance of farmers to use irrigation water and could lead to reduced production and increased food prices. Installation of multiple volumetric measuring systems at farm level in an irrigation district is often impractical due to small farm size.
44 Ground water extraction requires a license from the local water resource. However there is normally no charge for water extracted from wells for agricultural purposes. 19 Farmers therefore only need pay the electricity fee, about CNY0.6/kwh, and the price of water ranges from CNY0.06/m 3 to CNY0.56/m 3 depending on the depth of the water table. Price can have a major impact on the amount of water a farmer is willing to apply to his crops. For this reason, and others cited above, increase in water tariffs is not necessarily the appropriate approach to reducing water consumption. An integrated package of policies would provide a better solution.
2.2.4 PROJECT PROVINCES
45 The six provinces represent very different levels of development with respect to farm sector conditions and commodity production in both agriculture and agro-forestry. As the major problems in each of the six provinces are different, slightly different approaches will likely be required for their solution.
18 Irrigation tariffs are at flat rate of between CNY10/mu/irrigation (CNY150/ha/irrigation) to CNY40/mu/year (CNY600/ha /year). 19 Wang, J., Z. Xu, J. Huang, and S. Rozelle (2005b), Incentives in Water Management Reform: Assessing the Effect on Water Use, Production, and Poverty in the Yellow River Basin, Environment and Development Economics 10 : 769-99. 16
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46 Heilongjiang and Jilin Provinces are two of the 16 key grain production bases of China, endowed with extensive arable land and good water resources. Lower relative population density means that per capita sown area, 0.46 ha Jilin and 0.75 ha in Heilongjiang, is higher than in most other provinces. 20 Larger farms support plans to rapidly increase mechanization. Soybeans, maize and rice are the main crops together with significant areas of potatoes, oil crops, and sugar beet. Grain production, including soybeans and tubers, reached 42.3 million t in Heilongjiang in 2008, 8% of national production, and is expected to reach 50.5 million t by 2015 following improvement of irrigation works in the grain production centers and other incentives introduced by MWR. In 2008, the Jilin provincial government announced an ambitious plan to increase annual grain production by more than 5 million t over a 5-year period, taking it from the current level of 28.4 million t to over 33.4 million t in 2012. Due to higher gross margins, rice is becoming the preferred grain crop where water resources and irrigation systems are sufficient, and the area sown to rice surpassed soybeans in 2006. In 2009, rice was sown to 658,700 ha and soybeans to 618,700 ha. Water resources in Jilin and Heilongjiang are relatively plentiful due the short cropping season and low evapo-transpiration rate. Thirty-two of the subproject counties use surface water for irrigation while the other 10 use groundwater. Water quality is mainly good except in urban/industrial areas where it reaches Class IV 21 . However large areas of land suffer from water-logging and flooding due to heavy alluvial soils, flat plains and poor drainage systems.
47 Ningxia AR is one of the driest provinces in China with an average annual rainfall 180-200 mm and an evaporation rate of 1,000-1,500 mm. Irrigation is therefore essential to boost crop yields. The irrigation area is located on the richer flood plains of the Yellow River. Rice is a major crop using surface water diverted from the Yellow River. Yellow River water has a moderate salt content of 0.4 g/l and salinity is problematic due to high evaporation rates, high volumes of water used and poor drainage systems. The Yellow River derives 56% of its annual flow volume from the Himalayan Plateau above Lanzhou City and is therefore subject to possible abnormal flow rates as a result of glacial melt.
48 Henan and Anhui Provinces are also among the 16 grain production bases of China. The main agricultural areas are within the flat plains and are dominated by a winter wheat/summer maize cropping system Supplementary crops include soybeans, winter rapeseed, cotton, sesame, peanuts, beans, potatoes and vegetables. Irrigated rice is grown in Anhui where alluvial soils dominate: Rice used to be grown in Henan in the vicinity of the Yellow River, but was stopped in the 1980s due to soil salinity caused by excessive irrigation. In the plain areas in the proximity of the Yellow, Huai and Hai River systems the groundwater table is shallow. Anhui Province suffers more from water-logging than Henan due to the heavy alluvial soils and high water table, which is a major issue for the project areas. Strong annual and seasonal fluctuations in rainfall patterns have a critical impact on crop yield. Supplementary irrigation is therefore required to stabilize yields. The overall thrust of the project in Anhui Province is to shift towards rice/winter wheat double cropping in the renovated irrigation systems, whereas in Henan it is to maintain the current cropping system of maize/winter wheat and to use irrigation water for supplementary irrigation. Groundwater irrigation is proposed in all project counties except in those close to the Yellow River where a combination of surface and well irrigation is proposed.
49 Yunnan Province is hilly from west to east with an average elevation of 2000 meters above sea level (masl) and is China’s most agriculturally diverse province. Crops vary from maize, rice, and winter wheat in the north to tropical plantations of fruit, tea, rubber, tung oil, pine resin, and bamboo in the south. There is potential to increase multiple cropping through
20 China Statistical Yearbook 2009, Table 12-12. 21 The water quality classification system for China (GB3838-3002) is: Class I: headwater and natural reserves; Class II: 1 st class drinking water sources; Class III: 2 nd class drinking water sources; Class IV: for agricultural, industrial use and recreational use, not for human contact; Class V: for agricultural use only. 17
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 improvements to water management and irrigation systems. Yunnan project areas are plentiful in surface water resources and farmers do not need to use groundwater. All of the subproject areas use surface water for irrigation and, as a result of rehabilitation of irrigation systems and increased irrigation coefficients, water consumption will decrease. Much of the water is derived from snow and ice in the Himalayan region and temperature increase from global warming could therefore impact seasonal flow regimes. Water quality, ranges from Class I to Class III, which is suitable for irrigation.
2.3 GOVERNMENT POLICIES AND PLANS
2.3.1 AGRICULTURAL POLICIES AND PLANS
50 To support its ambitious goals China has enacted 14 comprehensive laws, 24 administrative rules and 151 MOA regulations related to agriculture since 1978, many of which are relevant to the project. The basis for China’s agricultural policy initiatives include major policy statements and circulars that are introduced and the actual initiatives that stem from these policy statements. The National Framework for Food Security (2008-2020) was released by the National Development and Reform Commission (NDRC) in 2008 and sets out the food production goals through 2020. This was accompanied by the Production Capacity Plan for Increase Grain Production, released by the State Council in 2009 for a nation-wide increase of 50 million t by the year 2020. The New Socialist Countryside Policy 22 was introduced in 2006 with an aim to improve the livelihood of the rural sector. The package involves multiple initiatives geared towards rural livelihoods and infrastructure in which budgets allocated to the different sectors have been increased substantially 23 . The National Agricultural Policy Analysis and Decision Support Systems Laboratory is a joint project launched in 2003 by the MOA and MOF with the support of the World Bank, and serves as an open public platform for agricultural policy evaluation and analysis.
51 Laws and plans relating to specific areas of concern for CAD include those for (i) subsidies and agricultural tax cuts, (ii) promotion of FAs, (iii) conservation tillage and soil improvement, (iv) balanced fertilizer application, (v) agricultural mechanization, and (vi) promotion of IPM. There are numerous forms of government subsidies including subsidies for: grain production; inputs such as high-quality seeds, compound fertilizer and agricultural machinery. 24 The Government also buys quantities of rice, wheat, corn, soybeans, cotton, rapeseed, sugar, and rubber at fixed prices to support market prices. 25 The Farmer’s Associations Law , July 2007, allows farmers to establish FAs to increase efficiency of small farmers in marketing, supply and technology know-how on operation and farming methods, although conditions on the ground lag far behind the provisions in the law. In 2008, MOA and NDRC jointly issued the Conservation Tillage Construction Plan (2009-2015 ) but the popularity of conservation tillage remains limited and is used in only 1.5% of total cultivated land area. The MOA and CAD are incorporating demonstration areas into programs that promote balanced application of fertilizers in conjunction with soil fertility testing and technical help. To date, the total area of arable land evaluated has reached more than 66.7 million ha (i.e. more than 50% of the total area). The Law on Promotion of Agricultural Mechanization, 2004, aims to increase mechanized production systems and post-harvest systems within the agricultural sector. Firms specializing in agricultural are eligible for tax breaks and farmers’ purchase price and fuel costs are also subsidized. Finally, IPM measures have received increasing financial support from the Central Government with the three main goals of more
22 http://www.gov.cn/english/special/rd_index.htm 23 China sets goals for building new socialist countrysidehttp://news.xinhuanet.com/English/2005-2/29/ content_3987226.htm 24 ibid 25 The format and some of the information in this section was taken from Gale’s China Agricultural Policy Table found at http://www.ers.usda.gov/Briefing/China/policy.htm 18
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 effective pest and disease control, lower production costs resulting from lower farm chemical costs, and health dividends for consumers (including the export market). Between 2010 and 2020, coverage of IPM programs for crop diseases and insect pests is planned to increase to 10% and 50% of arable land, respectively.
2.3.2 WATER RESOURCE POLICIES AND PLANS
52 The revised PRC Water Law, 2002, is a comprehensive document covering all aspects of water resource management and key to initiatives made in the water sector. Of particular relevance to the Project are the sections relating to (i) river basin water allocation, (ii) water-saving methods, (iii) water users association policy, and (iv) water pollution.
53 The Water Law defines a strict regulation on the allocation of water in accordance with the water quota and based on a long-term watershed and water supply plan for the river basin water distribution program. The water quota is determined in accordance with the availability of water under the water allocation program. A supplementary regulation was released in August 2006 concerning the serious depletion of water reserves in the Yellow River.26 The regulation provides stricter measures for water allocation and regulation including a more detailed scheduling of water allocation to the 11 provinces within the Yellow River Basin throughout the year depending on water availability and is based upon real time monitoring rather than the previous year’s flow records.
54 The Water Law requires governments at all levels to implement water-saving irrigation methods and water-saving technology in agriculture, water storage facilities, water diversion projects, and to take the necessary anti-seepage measures to improve agricultural water use efficiency. Moreover the law encourages water metering and charging based on progressive increase in water resources fees. However it encourages water tariffs to be maintained at a low rate to protect farmers from excessive charges.
55 A circular entitled “On the strengthening of farmer water user associations and constructive advice” that encourages establishment of farmer WUAs was circulated by SOCAD to provincial CAD offices in 2005.27 The legal status of WUAs was incorporated under the Farmer Association Policy that came into effect in July 2007. 28 This is complemented by a notice to encourage farmer-led self-management of small-scale well-operated irrigation systems, reservoirs and irrigation canal systems. 29
56 The Water Law requires local governments to promote agricultural production in saline and alkaline prone areas and take measures to control and reduce groundwater level decline and pollution. The Water Pollution Prevention Law, 1 June, 2008 provides that groundwater and surface water should be protected by introduction of anti-seepage measures. Further the Law prevents extraction of water from mixed aquifer layers that have been polluted with pesticides and fertilizers to prevent water pollution.
2.3.3 SOCIAL POLICIES AND PLANS
57 Social policies and plans relating to the proposed Project cover poverty reduction, ethnic minorities and gender.
26 Decree No.472: Regulations of Yellow River Water Regulation, August 1, 2006 (Not translated) 27 Water, agriculture (2005), Circular No. 502. 28 http://news.xinhuanet.com/english/2009-12/16/content_12658517.htm 29 Recommendations on the Implementation of Reform on Management System for Small-scale Rural Water Works, Shuinong [2003] No.603,December 9, 2003, (not translated). 19
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011
58 The history of anti-poverty policies in China is considered a success story. The decline in mass poverty achieved as a result of agrarian reforms in the first half of the 1980s meant a reduction by half of the number of Chinese living in poverty. Since the mid-1980s, the Government has undertaken targeted structural measures to combat rural poverty. The development of such programs can be traced through a phase of structural reforms (1979-85), a regional development approach (1986-93), the so-called 8/7 plan (aiming at lifting 80 million people out of absolute poverty within the seven years from 1994 to 2000, and a 10-year program (2001 to 2010). At the start of the 21 st century, the Government continued its efforts to combat rural poverty by concentrating its focus on areas containing ethnic minorities, former revolutionary bases, border regions, and destitute parts of the central and western regions. As the Government adopted its new ten-year poverty strategy in 2001, the number of people living in poverty was 32.1 million, as defined by the national poverty line adjusted for inflation (CNY625/capita/year net rural income at 2000 prices). Under this strategy 592 key counties were selected, which together with poor villages in non-key counties were eligible for national poverty funding. In 2009, a new anti-poverty standard was implemented benefiting low-income people in the countryside. According to this standard, per capita subsidy was increased to CNY1,196 per year and 40.07 million people are covered.30
59 China pursues a policy of regional autonomy for ethnic minorities. Five provinces are designated as autonomous regions - Tibet, Xinjiang, Inner Mongolia, Guangxi and Ningxia. Ethnic or cultural diversity is officially recognized through designation of 55 minority nationalities whose status is protected by the constitution and other legislation. Minorities vary in their interactions with the broader Chinese society and economy: some are highly integrated into the social mainstream and economic system while others, particularly in frontier areas, continue to live in more traditional ways, often relying primarily on subsistence-level activities with little involvement in the broader economy. China’s poverty alleviation strategy (2001-2010) concentrates on central and western regions of China, with priority given to minority and border areas. To accelerate the development of the Western region and to reduce regional and national poverty, the particular needs and circumstances of minorities is integrated in the design and implementation of planning strategies. The success of the Western Region Development Strategy and its objective of further poverty reduction will depend on the degree to which minorities participate in the provincial, prefectural and county level in the design and implementation of these strategies. The two project provinces that include significant ethnic minorities are part of the Western Region.
60 In recent years, the Government has made fairness and justice, including gender equality, an important part of its efforts to build a harmonious socialist society. This is formulated in the Government’s White Paper on Gender Equality and Women’s Development in China , August 2005. Recent legislation, from the Law on the Protection of Rights and Interests of Women, 1992, to the revised Marriage Law , 2001, have enshrined both the general principle of legal equality and special measures to promote gender equity by focusing on areas where women are disadvantaged. The commitment of the Government to gender equality is expressed in the Program for the Development of Chinese Women (2001-2010), which addresses six fields in which the development of women is to be promoted: (i) women and economy; (ii) participation of women in administration and decision-making; (iii) women and education; (iv) women and health; (v) women and law; and (vi) women and the environment . With respect to gender and agriculture the PRC’s gender equality commitments translate into policies acknowledging the particular problems faced by rural women and the significant roles which such women play in the economic survival of their families. This is confirmed by the PRC’s CEDAW 31 reports stating to ensure rural women the right to (i)
30 Wei Jianguo (2009), “China’s Development and Poverty Reduction: Modes and Experience”, Paper contributed to the International Conference on “Sharing Experiences to Promote Learning on Development Partnerships for Growth and Poverty Reduction”, Beijing: October 28-29, 2009. 31 UN Convention on the Elimination of All Forms of Discrimination against Women 20
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 participate in the elaboration and implementation of development planning at all levels, (ii) have access to adequate health care facilities, (iii) benefit directly from social security programs, (iv) obtain all kinds of training and education as well as the benefits of all community and extension services in order to increase their technical proficiency, (v) organize self-help groups and cooperatives in order to obtain equal access to economic opportunities through employment or self-employment, (vi) participate in all community activities, and (vii) have access to agricultural credit and loans, marketing facilities, appropriate technology and equal treatment in land and agrarian reform as well as in land resettlement schemes to enjoy adequate living conditions particularly in relation to housing, sanitation, electricity and water supply, transport and communications.32 In 2006, China’s central authorities released a major document calling for the construction of a New Socialist Countryside showing the government’s concern for rural problems. Its aim was to boost modern agriculture, develop new relations between industry and agriculture, cities and countryside and to increase rural affluence. The All China Women’s Federation (ACWF) commented that women are restricted by four factors in the New Socialist Countryside: (i) the low level of rural women’s understanding of science and culture; (ii) traditional ideas (on the superiority of men); (iii) conflicts between double roles; and (iv) lack of self-awareness by rural women. Besides upgrading rural women’s educational level through multi-level courses publicity campaigns to educate people about basic state policies on the equality of men and women were seen as necessary to create an enabling environment for women to participate in the New Socialist Countryside. 33 Reform policies gave the ACWF a new role for formulating the problems facing women, providing contact and advocacy functions, and attempting to support women, especially in their careers. Funding and personnel have, however, been cut back. At the same time, the beginnings of a non-state run, active women’s movement in China are developing, aiming to reach a wide audience in different social domains.
2.4 KEY PROBLEMS
61 Based on the sector analysis, field work, and discussions within the PPTA team, a problem tree analysis has been developed and refined (Appendix 3).
62 Water Scarcity. Increasing water demand is impacting water availability throughout China, especially in the northern plain and the Yellow River Basin. This combined with the effect of climate change is impacting irrigation water availability for agriculture, which currently consumes 63.5% of the total national water budget. Based on plans for increased urbanization and industrialization, one can anticipate further reductions of water allocated to agriculture in favor of industrial/urban needs, which will require increased austerity and efficiency of irrigation systems.
63 Climate Change. Climate change is becoming accepted as a reality with evidence of increasing temperatures and the impact of extreme events – drought and floods. In particular, the increasing rate of retreat of the Himalaya glaciers will likely impact the water resources storage capacity of the ‘water tower of Asia’ resulting in more erratic and more seasonal river flows. This will especially affect irrigation supplied from water flowing in China’s rivers stemming from the Himalayas (Yellow, Yangtze, Mekong) and provinces dependent upon glacial water sources (Yunnan, Sichuan, Qinghai, Gansu). Moreover, whilst climate change models predict increased and more erratic rainfall in most of the project areas, this will be
32 Consideration of reports submitted by States parties under article 18 of the Convention on the Elimination of All Forms of Discrimination against Women. Combined fifth and sixth period report of States parties. UN CEDAW/C/CHN/5-6 (2004), p.52. 33 “Restrictions and Solutions: New Socialist Countryside Construction and Women’s Development” in China Women’s News (2006), http://www.womenofchina.cn/ Issues/Politics/12413.jsp ) 21
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 countered by increased evapotranspiration that will likely result in reduced yields under non-irrigated conditions.
64 Efficiency of Surface Water Irrigation Facilities. A major constraint for canal system irrigated agriculture in China is the low efficiency of many of the existing irrigation and drainage systems and especially the on-farm works at the lateral level and below. Many of the canals are earthen structures, over 30 years old, in poor repair and unable to meet the original design performance requirements. The irrigation coefficients of the irrigation systems are low (about 0.35) and consequently they are unable to cover the full irrigation area in the original design. In their present condition, these facilities are inefficient, water-wasting and incapable of supporting reliable water supply for high-yield grain production. They need rehabilitation and improvement, especially of lateral and sub-lateral canals.
65 Sustainability of Irrigation Systems. Irrigation water tariffs are extremely low and inadequate to cover anything other than costs for irrigation water supply and basic maintenance. Increased tariffs would impose a greater burden on a poor sector of society. Any financial support for major repairs and rehabilitation of irrigation systems therefore depends on government budgets, which may be intermittent and not always in line with immediate needs. It is possible that the promotion of FAs and WUAs could create institutions that will partially bear the cost of maintenance.
66 Irrigation Water Measurement Systems. Irrigation water is only measured volumetrically at the off-take of main irrigation canals. Flows in the laterals and sub-laterals are not measured volumetrically and, at the field level, water use is calculated on an area basis. Hence, there is little incentive to increase irrigation water use efficiency at either the farm or sub-irrigation district level.
67 Irrigation Operation and Maintenance. O&M of irrigation systems is poor for various reasons including: (i) equitable water distribution to farmers cannot be assured if farmer-led WUAs are not in place; (ii) irrigation water distribution to farmers is difficult in WUAs that are based on administrative boundaries; (iii) WUAs that are hydrologically based, rather than based on administrative areas, encounter administrative difficulties; (iv) where irrigation water supply is inadequate, conflicts arise between irrigation districts and these can only be resolved through a WUA Federation covering the whole irrigation area; and (v) funds from water tariffs supporting WUAs are only sufficient to cover WUA salaries and basic canal maintenance costs but are inadequate for canal rehabilitation.
68 Groundwater. Irrigation from groundwater sources is subject to decreasing water tables particularly in the North China Plain where available water resources are already fully allocated and overexploited, and groundwater levels are falling over wide areas, sometimes as much as 1.0 m/year.
69 Salinity. Soil salinity is a problem mainly in northwest China and particularly in the Yellow River Basin where the water table is high and rainfall is low. Where salinity occurs in irrigation areas, it has been caused mainly by poor irrigation management, rice cultivation, excess water application and inadequate drainage.
70 Water-logging. Water-logging is serious in irrigation areas where the water table is high and/or soils are heavy (black soils) and have inadequate drainage systems. The drainage systems have deteriorated and are unable to achieve the drainage requirement of the original design. This is particularly apparent in northeast China and coastal regions.
71 Low Soil Fertility/Poor Soil Structure. The mechanics of soil structure formation are exceedingly complicated but there are numerous ways that humans impact both soil fertility and soil structure. Soils that have been used as long and intensely as those throughout much 22
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 of China often show signs of fatigue, including low levels of organic material and a proclivity for soil compaction. Soil compaction occurs for numerous reasons, including (i) limited proportions of soil volume comprised of organic matter which allows aeration, drainage and soil nutrients, (ii) compaction by equipment, and (iii) natural concentrations of clays in the hardpan due to extensive irrigation or the production of rice without rotation. Greater attention to cultivation systems that allow addition of household and farmyard compost as well as processed crop residue such as corn stalks and wheat straw is needed throughout the country, but particularly in the more arid areas of the north and west.
72 Poor Quality Inputs for Grain Production. Seed quality is uneven throughput China with problems including poor quality, poor germination rates, and the use of varieties that are inappropriate for local conditions or do not allow full use of the growing season, as well as improper storage, processing and handling of seed. Similarly, while there have been significant improvements in the types and quality of nitrogen fertilizer available, and availability of phosphate compounds is getting better, there remain significant shortages of potassium throughout much of China. Similarly, compound (N-P-K) fertilizers are often in short supply, or when locally produced, are of very poor quality and/or lower than advertised fertility due to poor storage and packaging.
73 Limited Mechanization of Field Crop Agriculture. Mechanized plowing and harvesting equipment is sufficient in many farming areas in the eastern provinces and the peri-urban or suburban areas of western and central provinces and autonomous regions. However, it is still inadequate throughout the poorer and middle-income farming areas of the nation. Equipment shortages are only part of the issue: there is a need for training and expertise in maintenance, new product development, and operation of machinery enterprises as financially viable enterprises.
74 Lack of Agreement and Understanding Regarding Organic Agricultural Products. National standards and definitions for organic and “green” foods are needed to restore consumer confidence in Chinese agro-products at home and abroad. Currently there are numerous symbols printed on processed and semi-processed agricultural products signifying their organic origins. Most consumers are uncertain as to which of these labels are genuine and represent true inspection of the product. Similarly, produce is routinely marketed as organic when it is not. Farmers producing “Green Food” routinely believe a product can be called green as long as they do not use farm pesticides or antibiotics, even if they use inorganic fertilizers to produce the crop.
75 Undeveloped Markets for Alternative Crops. While the Government has been extremely supportive of subsidies, marketing schemes, and technical help related to grain production, similar support for non-strategic crops is largely absent. This maintains enthusiasm for grain, soybeans, and other strategic crops such as cotton and tobacco, but limits efficient production of alternatives which may bring higher returns and reduce income gaps. Marketing channels for alternative crops such as mint, Chinese medicinal plants, Chinese culinary spices, fungi, and crops grown for food additives or pigments remain poorly developed, often putting farmers at risk of exploitation.
76 Lack of Relevant Agricultural Extension. While agricultural extension agencies and offices down to the township level are ubiquitous throughout rural China, there is often a gap between the services provided and the services needed. This is particularly true in four main areas: (i) IPM; (ii) balanced fertilizer application and soil testing; (iii) training and promotion of organic agriculture/“green” food production; and (iv) marketing. More training is needed for effective promotion of many of China’s new agricultural programs.
77 Limited Adoption of Windbreaks and Shelterbelt Forests. Research throughout China has indicated the contributions that windbreaks and shelterbelt forests can make to 23
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 improving cultivation conditions and field crop yields. Unfortunately, as these improvements are typically made on public land, there is frequently no regular source of local funding for planting and maintenance. Without dedicated funds, adoption of these innovations will remain limited.
2.5 JUSTIFICATION FOR ADB ASSISTANCE TO CAD PROGRAM
78 The wide-ranging problems identified are best addressed in a comprehensive integrated manner as typified by the CAD program. However, many of these – such as undeveloped markets, lack of farmers’ marketing capacity, need for improvements in the understanding of pollution-free and green agriculture, and the lack of a relevant agricultural extension system – are currently only handled to a limited extent within the existing CAD program. Even with the limited contents the unit costs of such a comprehensive program are high and an increasing proportion has to be met by relatively poor farmers in the form of cash or in-kind contributions, and this is inconsistent with the government’s overall policies of poverty alleviation.
79 At the current rate of progress, and assuming no change in the trend in the proportion of CAD funds being obtained from domestic and international banks (currently estimated at just 6%) upgrading all of the low- and medium-yielding land and introducing appropriate agricultural practices will take at least 32 years, and possibly up to 95 years if there is not adequate allowance for inflation. 34 ADB offers one potential source for accelerating the rate of CAD implementation through making funds available at a preferential interest rate,
80 Given ADB’s wide experience of implementing agricultural development projects, both in China and in other member countries, and the success elsewhere at promoting an integrated approach, it is well positioned to assist China with the necessary expansion of the scope and size of the CAD program required for sustained rural development.
2.6 ADB’S COUNTRY STRATEGY AND POLICY DIALOGUE
81 ADB’s Country Partnership Strategy (CPS) 35 highlights four areas in which public sector investment is required to address key development strategies, one of which is a focus of the proposed project: that is the need to assist in development of rural infrastructure to support rural public services and boost domestic consumption. The goal of the CPS is to help the Government build a harmonious and moderately prosperous ( xiao kang ) society by supporting measures aimed at supporting environmentally sustainable development and inclusive growth.
82 To support this goal, ADB is financing operations that aim at developing relevant infrastructure and introducing new knowledge and innovations. The goal of the CPS is supported by four pillars, two of which – inclusive growth and balanced development, and resource efficiency and environmental sustainability – are of direct relevance to the proposed project. Under the first of these pillars, the CPS notes that investments will be concentrated in areas where growth and development are lagging, in particular central and western provinces as well as old industrial areas of the north east and, among others, investment in rural infrastructure will include rural roads and water supply. These investments are expected to result in economic growth that will raise incomes and improve job opportunities in rural areas. The CPS also proposes supporting better income and job opportunities in rural areas through projects and policy advice that improve resource management and access to markets. With
34 Tun Lin, 2009. Comprehensive Agricultural Development: Opportunities from the Current Economic Crisis , Asian Development Bank, Manila. 35 ADB, 2008. Country Partnership Strategy, People’s Republic of China, 2008-2010 . Manila, Philippines. 24
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 respect to the second pillar, the CPS proposes to help promote sustainable rural ecosystem management, manage scarce natural resources, and meet environmental challenges. To achieve these objectives, projects should focus on promoting river basin and ecosystem management, efficient use of natural resources, and the value chain of agricultural production.
83 Assistance is envisaged under the CPS for agriculture, natural resources, and rural development to focus on relieving the constraints to raising incomes and protecting farmland. The types of assistance to raise incomes include linking small-scale producers to primary markets, strengthening extension services, and improving resource allocation and productivity. For preserving farmland and improving environmental management, it is proposed to finance projects that link sustainable agricultural development with ecosystem management, support sustainable natural resource use and conservation, and build capacity for integrated ecosystem management.
84 The priorities of the CPS correspond to institutional commitments to gender mainstreaming and safeguards on the Chinese side. China has made substantial efforts to set up government institutions to promote the development of women and children. The government and legislative institutions on women’s issues serve as venues or coordinators to put women’s concerns into the policy agenda. The government created the National Working Committee on Women and Children (NWCWC) under the State Council in 1992 and, by 2000, its membership had expanded to twenty-four ministries and five mass organizations. The NWCWC plays an important role in protecting women’s and children’s rights and interests. It has succeeded in promoting the promulgation of laws and national plans on the development of women and children, and acts as a “watch dog” in monitoring the implementation of the policies and laws concerning women’s and children’s rights and development. However, like many national mechanisms for women in development worldwide, NWCWC suffers under constraints concerning its location, resources, and staffing. NWCWC is under-resourced by the central government. Most of its funds come from donors, implying that its priorities will be driven by donors. In addition to the NWCWC, the Office of Workers, Youth and Women Committee in Internal and Judicial Affairs of the National People's Congress are the most important institutions. At same time, the ACWF also plays an important role in national women’s affairs.
85 The proposed Project, with its emphasis on improving land quality, upgrading irrigation systems for more efficient water resource use, improving agricultural production systems, strengthening the management capacity of the CAD offices, and gender mainstreaming in rural areas, clearly fits in with the goals and strategic priorities of the CPS.
2.7 DEVELOPMENT COORDINATION AND LESSONS LEARNED
2.7.1 DEVELOPMENT COORDINATION
86 Many ongoing and completed projects and programs of multilateral and bilateral development partners target the agriculture and natural water resources (including water) sector. The range of project activities includes infrastructure investment, capacity development, strategy development, and policy reforms. The development partners are committed to supporting the Government’s ongoing 11th Five Year Plan (FYP), 2006-2010, and thus are generally coordinated around the 11 th FYP. The World Bank is the major supporter of agriculture and irrigation development and has approved projects for supporting CAD, promoting participatory irrigation management, developing WUAs, rural training and advisory services for farmers, and capacity building for provincial and lower-level government cadres. The ADB has supported a number of Technical Assistance (TA) and Loan Projects to assist China in integrated water resources management, flood management, wetland 25
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 management, sustainable irrigated and rainfed agriculture development, wetland management, and environmental and ecosystem management. Other smaller, but extremely important contributions have been provided by the International Fund for Agricultural Development (IFAD) with cofinancing from the World Food Programme (WFP) who have focused on the specific needs of the rural poor, and the Department for International Development (DfID) of the United Kingdom and the Australian Agency for International Development, who focus on improved management of the water resources sector.
87 External support for CAD has, to date, come predominantly from the World Bank, particularly through its Irrigated Agriculture Intensification Projects, which has provided over $500 million of loans and grants including assistance for mainstreaming climate change adaptation. DfID has made a limited, but never-the-less extremely important contribution, through its Pro-Poor Rural Water Resources Reform Project, which assisted both SOCAD and MWR in the formation of WUAs.
88 The proposed Project offers an unusual opportunity for collaboration between ADB, the World Bank and DfID since the World Bank has extensive experience of CAD and DfID has worked closely with the government on the establishment of WUAs. The Consultant has worked closely with both of these organizations in formulating the Project and ADB expects to have further close collaboration during loan processing and implementation, including the possibility of participating in each other’s review missions.
Development coordination is detailed in Appendix 4.
2.7.2 LESSONS LEARNED
89 ADB’s experience with sector projects in China has highlighted the difficulties of implementing this specific loan modality. These relate in particular to the operational model required by the NDRC, which limits the flexibility in subproject selection and processing that is inherent in the sector loan modality, and has resulted in significant delays in project implementation. An alternative approach that satisfies the needs of both China and the ADB is therefore needed.
90 The Project Completion Report for the ADB-supported Hainan Agriculture and Natural Resources Development Project 36 highlighted several lessons learned of relevance to the proposed Project. These include (i) overly ambitious fixed targets set at appraisal precluded a flexible approach to achieve the overall goal, making the project supply-driven rather than market-driven; (ii) a strong sense of ownership is an important factor in effectively implementing a project and this can be best ensured by supporting the project management office to be fully effective; and (iii) strong Project Leading Groups are essential to provide direction and ensure the success of the project. Further, recent Reports and Recommendations of the President (RRPs) of ADB projects 37 in the agricultural and natural resources sector have listed a consistent set of lessons learned that are of relevance to the
36 ADB, 2004, Project Completion Report on the Hainan Agriculture and Natural Resources Development Project (Loan No. 1372-PRC), Manila, Philippines. 37 See for example: ADB, 2008, Report and Recommendation of the President to the Board of Directors on a Proposed Loan and Technical Assistance Grant to the People’s Republic of China: Ningxia Integrated Ecosystem and Agricultural Development Project . Manila, (Loan No. __-PRC, $100 million, approved __. ADB, 2008, Report and Recommendation of the President to the Board of Directors on a Proposed Loan and Administration of Grant to the People’s Republic of China: Dryland Sustainable Agriculture Project . Manila, (Loan No. __-PRC, $83 million, approved __. ADB, 2009, Report and Recommendation of the President to the Board of Directors on a Proposed Loan and Administration of Grant to the People’s Republic of China: Shaanxi Qinling Biodiversity Conservation and Demonstration Project . Manila, (Loan No. __-PRC, $40 million, approved __. ADB, 2009, Report and Recommendation of the President to the Board of Directors on a Proposed Loan and Administration of Grants to the People’s Republic of China: Shanxi Integrated Agricultural Development Project . Manila, (Loan No. __-PRC, $100 million, approved __. 26
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 proposed Project. These include (i) the need for stakeholder involvement and community participation in planning and implementation; (ii) flexibility in design that allows stakeholders to revise planned activities to respond to market demand; (iii) strong ownership by project stakeholders including private sector enterprises, farmers, and local government implementing agencies; (iv) capacity building in advisory and other support services to facilitate the adoption of new technologies and practices, particularly among small-scale and poor farmers; (v) promotion of sustainable farming techniques particularly on marginal lands; (vi) an effective and robust project performance monitoring system should be established early in project implementation to ensure the collection of adequate information required for timely corrective measures; (vii) timely and adequate provision of counterpart funds and staff resources by provincial and local governments to avoid delays in project implementation; (viii) proper administration of bidding processes in accordance with agreed procedures; and (ix) effective provincial and lower level project leading groups that can provide the necessary leadership and guidance in project implementation
91 The Implementation Completion Report for the World Bank-supported Irrigated Agriculture Intensification II Project 38 (IAIL2) reported that the key lessons learned included (i) the need for well-planned and designed subprojects, (ii) the success and need to follow up further on SIDDs, (iii) the critical nature of adequate and timely counterpart funds, (iv) active participation and effective coordination and management by government leaders at all levels was critical in ensuring smooth project implementation and in avoiding delays, (v) the lack of practical or price advantage reasons for the use of International Competitive Bidding (ICB) procedures, and (vi) the need to increase farmers’ incomes through the introduction of value-added production and marketability.
92 Lessons learned are further elaborated in Appendix 5.
38 World Bank, 2005, Implementation Completion Report on a Loan in the Amount of US$300 million to the People’s Republic of China for the Irrigated Agriculture Intensification II Project , Rural Development and Natural Resources Sector Unit, East Asia and Pacific Region. 27
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011
3 THE PROPOSED PROJECT
3.1 PROPOSED LENDING MODALITY
93 Review of the project proposal suggests that the Project could be implemented using either an investment loan or a sector loan modality depending on how it is structured and the specific requirements of both ADB and the Government. Use of an investment loan modality would require confirmation that the overall project is technically feasible, environmentally and socially acceptable, and financially and economically viable. For projects involving only one or a few large subprojects this is relatively simple to accomplish through thorough comprehensive feasibility studies of each of the subprojects. Subprojects that do not satisfy the requirements for viability and feasibility are then removed from the proposed project, ensuring a final product that satisfies all requirements. For projects with a large number of small subprojects the situation is more complex since it is not practical to complete feasibility studies, or even review feasibility studies, of all of the subprojects within the available time. An alternative is to select and analyze a limited number of indicative subprojects, which in aggregate reflect the total of subprojects proposed and can therefore provide an indication of overall project viability and feasibility. Based on the findings from the analysis, criteria can be defined to ensure the feasibility and viability of the other subprojects.
94 The proposed project comprises a total of 69 county/city level projects (or subprojects) in 6 provinces. Initial examination of these subprojects suggests that in most provinces many, if not all, are similar from both a technical and agronomic point of view, offering the possibility of aggregating them as a single project for much of the technical, financial, and economic evaluation. For the environmental examination, many of the key issues are common and can be treated in a similar manner. However, some of the financial, social, resettlement, gender and ethnic minority issues still need to be addressed for each subproject, or at least in detail for a representative sample. Guidance can then be provided on the analysis required for the remainder of the subprojects to address any critical issues that might be identified. This approach has been called “sector-like” since, while being an investment loan modality, it retains many of the characteristics of a sector loan.
95 The alternative option would be to adopt the sector loan modality, which is intuitively appealing since the project involves a large number of subprojects in the sector to be financed, 39 and the borrower clearly satisfies the three key conditions that:
(i) the borrowing developing member country has a sector development plan to meet the priority development needs of the sector;
(ii) the borrowing developing member country has the institutional capacity to implement the sector development plan; and
(iii) the policies applicable to the sector are appropriate and will be improved, if warranted.
96 Under the sector modality the consultants would review and improve a limited number of subprojects, known as the core subprojects, which are indicative of the overall project. The review would confirm their technical viability, financial and economic feasibility and environmental and social acceptability. Appraisal of these subprojects would provide the basis for acceptance of the overall project. Responsibility for preparation and appraisal of the
39 As detailed in ADB’s Operations Manual Bank Policies (BP), OM Section D3/BP, October 2003. 28
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 remainder of the subprojects would be assumed by the EA, subject to any requirements placed on it by ADB.
97 However, there remains a key issue of the relevance of producing a large number of feasibility studies (69 less the number of core subprojects), many of which would be very similar, and the capacity of the EA and IAs to complete these when they have many other important tasks to perform. Production of environmental assessment and social analyses for so many subprojects would also likely be highly repetitive and impede rather than facilitate project implementation. Moreover, these requirements would likely be far more onerous than those of NDRC, and would unnecessarily complicate the project
98 Consequently a sector-like lending modality is proposed for the following reasons: (i) one single integrated and comprehensive agriculture development model will be adopted throughout the project area; (ii) the single model will be replicated and applied in all 69 counties; and (iii) the EA has rich successful experience in implementing similar projects supported by the World Bank. Under this sector-like lending modality, the Consultant has reviewed and assessed the project design at the provincial level, undertaken economic analysis of subproject aggregates at the provincial level, and used selected representative counties for detailed analysis particularly with respect to financial, social, resettlement and ethnic minority issues. The analysis includes preparation of frameworks for ethnic minority development programs and resettlement plans to assist the Government in undertaking the required due diligence for the remaining subprojects.
3.2 IMPACT AND OUTCOME
99 The impact of the Project will be increased rural incomes for both male and female farmers and enhanced food security from increased output of grains and high value crops. The outcome will be increased agricultural productivity in the project area..
3.3 OUTPUTS
100 The Project will finance an area and time slice of the Government’s CAD Program with an emphasis on the sustainable rehabilitation and improvement of existing irrigation and drainage systems, including completion of field-level irrigation systems, and modernization of agricultural production systems in low- and medium-quality land in six key provinces. The project outputs are (i) improved irrigation and drainage infrastructure, (ii) improved irrigated agriculture, and (iii) strengthened project management. All three components will address gender equality and rural women’s empowerment. Through these outputs, the project is expected to benefit a total area of 98,350 ha.
3.3.1 IMPROVED IRRIGATION AND DRAINAGE INFRASTRUCTURE
101 Improved irrigation and drainage infrastructure will increase crop production while achieving real water savings and improved utilization of water resources through support of construction and rehabilitation of irrigation and drainage infrastructure, and improved irrigation O&M measures. Support will include (i) upgrading and completion of surface-water irrigation and drainage systems in 49 cities/counties covering an area of 56,588 ha and increasing the irrigated area by 8,650 ha (18%); (ii) developing and upgrading tubewell (groundwater) irrigation systems in 32 cities/counties covering an area of 41,183 ha and increasing the irrigated area by 29,979 ha (268%);40 (iii) introducing water-saving technology on 74,495 ha of surface- and groundwater-irrigation systems; (iv) supporting 95 new and
40 The total of the number of subprojects with surface irrigation plus the number with tubewell irrigation is greater than the total number of subproject since some subprojects contain both types of system (see Appendix 6). 29
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 existing WUAs with a focus on ensuring participation of women both as members and on the management committees; and (v) developing and operating pilot solar-powered irrigation systems in 9 locations in Ningxia AR.
102 The interventions will include excavation and dredging of irrigation and drainage canals and ditches, construction of irrigation and drainage canal structures and rehabilitation and construction of new pumping stations. Developing and upgrading tubewell irrigation systems will include construction of new tubewells together with the supply of associated equipment, rehabilitation of existing tubewells including replacement of equipment and installation of agricultural electrification comprising electric cables and transformers. Water-saving technologies will include lining of newly-constructed and upgraded irrigation canals to prevent seepage, provision and installation of low-pressure PVC underground pipelines, provision and installation of sprinkler irrigation systems, provision and installation of micro-irrigation (including drip irrigation) systems, provision of moveable flexible irrigation pipes, and construction of new, and rehabilitation of existing, small-scale water-storage tanks. Creating new, and strengthening existing, WUAs will be accomplished through provision of grants to selected WUAs to cover the cost of promotion activities, preparing training materials, conducting training of farmers on WUA establishment procedures and O&M, providing workplace and office equipment and materials, WUA registration, and provision of water-measurement facilities. Specific requirements are likely to vary between WUAs and packages will be designed accordingly.
3.3.2 IMPROVED IRRIGATED AGRICULTURE
103 Improved irrigated agriculture will support (i) improved soil quality for about 67,138 ha; (ii) improved and new service roads of about 1,866 km; (iii) improved agricultural practices on the entire project area; (iii) reduced land degradation in critical areas; (iv) improved farmer capacity through greater training and the establishment of FAs, including co-operatives; and (v) promotion of demonstrations of modern agricultural technologies.
104 Improved soil quality will include field leveling particularly of small hummocks to achieve a generally leveled surface, deep plowing to a depth of about 25 cm to improve drainage and crop production, promotion of balanced fertilizer application programs with special emphasis on encouraging farmers to apply farmyard manure but also including soil analysis and determination of appropriate fertilizer use, and promotion of crop residue programs to encourage farmers to return unwanted straw to their fields after chopping. All of these activities will be promoted through single-year subsidies amounting to about 20-25% of the cost of the activity. Improved and new service roads will include gravel and dirt roads to improve field access and reduce the cost of crop production and harvesting. Improved agricultural practices will include increased production, drying and storage of quality seeds, provision of farm machinery and crop protection equipment to farmer associations and farm machinery service providers for provision of contract services, and demonstrations of IPM, including provision of IPM equipment. Reduced land degradation will include support for shelter-belt forests and environmental production forests, support for straw processing, and reduced salinity through improved irrigation. The capacity of farmers, particularly female farmers, will be improved through the strengthening of established, and creation of new, FAs, including start-up and running costs, provision of instruments and equipment, and farmer training and study tours. FAs will be encouraged to include female members in their management with a target of 50% female representation. The support will follow the approach proposed for WUAs. In addition to the strengthening of FAs, a substantial amount of male and female farmer training will be supported. Demonstrations of modern agricultural technologies will include greenhouse crop production, pollution-free agriculture and green agricultural production, and will be directed particularly at women farmers with a target of 50% to be undertaken by women.
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ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011
3.3.3 STRENGTHENED PROJECT MANAGEMENT CAPACITY
105 Strengthened project management capacity will focus on (i) increasing the capacity of the 6 provincial and 69 city/county CAD offices; (ii) establishing a pilot CAD integrated information management system in Heilongjiang and Ningxia AR and (iii) raising gender awareness of CAD offices staff and implementation of a pilot program for strengthening the capacity of the ACWF regarding leadership skills related to community empowerment and gender issues in 6 villages, 2 in each of Anhui, Ningxia and Yunnan (Appendix 18)..
106 Capacity building for the CAD offices will include substantial domestic and international training and study tours to improve capacity for CAD implementation and monitoring. Specific details of the contents of the training and study tours will be agreed between the executing agency (EA), implementing agencies (IAs) and ADB during project implementation. In addition the physical capacity of the county and provincial offices will be upgraded by supplying necessary office equipment and vehicles to improve the efficiency of their operation and communications between CAD offices at all levels. Thirteen sets of management information system (MIS) equipment will be provided to selected CAD offices in all provinces to improve their capacity to manage and monitor projects. Pilot activities will be conducted in Heilongjiang and Ningxia AR to support the establishment of a CAD integrated information management system that will use a geographic information system together with satellite imagery and geographic positioning system to improve the visual presentation of CAD projects for strengthened management. The project will finance the necessary hardware, software, satellite imagery, etc. and technical support will be provided through a Capacity Development Technical Assistance (CDTA) (Appendix 22). A limited system for environmental and social monitoring will be supported in Anhui Province. Gender-sensitive indicators will be included in the project M&E system.
3.4 PROJECT DESCRIPTION
3.4.1 SELECTION CRITERIA FOR PROJECT PROVINCES
107 National food security is considered a major policy issue for China and it is recognized that this must be based both on increasing food production in surplus regions so as to provide sufficient food for the growing urban areas and increasing production in the currently food-balanced regions so as to ensure their continued food security. Major grain surplus provinces have to maintain and enhance food production so that they can continue exporting surplus to other provinces and autonomous regions. 41 The 13 major grain-producing provinces, in terms of area, each accounted for more than 3% of the national area and, in total, accounted for 66.8% of the national area of grains and 68.0% of the national area of cereal crops in 2008.42 In terms of output the 13 largest producing provinces accounted for 75.5% of national grain output and 77.0% of national cereal output. Heilongjiang, Henan, Jilin, and Anhui – the top four food-surplus provinces – are all included in the top 10 in terms of area and production of grains and cereals and in aggregate accounted for 29.5% and 28.0% of the area of grains and cereals respectively and 29.2% and 29.6% of output of grains and cereals respectively in 2008. These four provinces are thus of high importance in ensuring food security, which is consistent with the government’s policies for increasing grain production (Section 2.3).
108 The food-balanced regions, i.e. those provinces and autonomous regions that are currently producing just sufficient food for their own consumption, also need to maintain and
41 Grain crops are defined as cereals, beans, and tubers. 42 National Bureau of Statistics, 2009. National Statistical Yearbook 2009 , Beijing. 31
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 enhance food production so that they will not become food-deficit areas. Currently many provinces in the western part of the country are included in this category. Among the food-balanced provinces, Yunnan is also an important grain- and cereal-producing province, being ranked 11 th and 13 th respectively in terms of area. However in terms of output, Yunnan is ranked outside the top 13, producing only 2.9% of the national grain output and 2.6% of national cereal output, suggesting that current yields are below the national average. Ningxia AR, while self-sufficient in grain and cereal production is a minor producer within the national context, being a small province with a relatively small population.
109 Six provinces and autonomous regions were identified for the proposed project: Anhui, Heilongjiang, Jilin, Henan, Ningxia, and Yunnan. The first four represent the major food-surplus regions of the country and the last two represent the food-balanced regions of the northwest and southwest of the country. The wealthier eastern seaboard provinces, some of which are major grain producers, were excluded from consideration. These six provinces/autonomous regions provide a reasonable basis on which to develop new concepts that could be extended to the rest of the country.
3.4.2 SELECTION CRITERIA FOR PROJECT CITIES/COUNTIES
110 Within each province/AR counties and county-level cities were selected for participation in the Project based on criteria set out in the national proposal. The criteria for selecting the project counties (cities) were:
(i) The county had to be classified as a CAD county (Appendix 2, section A2.2).
(ii) Proposed subproject areas should have a large contiguous area of land suitable for developing agriculture on an increased production scale and for developing a sustainable agricultural base.
(iii) The availability of water resources should be assured including the existence of a basic water conservancy framework that reflects the situation with respect to irrigation, drainage, and flood control.
(iv) Government at provincial, prefecture/municipality and city/county level, and farmers, must be fully supportive of the project, have an urgent need for a comprehensive agriculture development project, and assure the local counterpart financial contributions.
(v) Annual counterpart contributions at the county level should not exceed more than 1% of the annual county budget
(vi) Agricultural comprehensive development organizations at all levels have already been established and have experience in project management.
(vii) Proposed subprojects will not be implemented in environmentally sensitive areas and will exclude activities with critical negative environmental impacts.
(viii) Proposed subprojects will not be implemented in areas, or include activities, that involve significant levels of resettlement.
(ix) There are clear and sound economic, social, and environmental benefits associated with implementation of the subproject.
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ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011
3.4.3 PROJECT AREA
111 Based on these selection criteria, 69 counties (cities) in the six provinces/ARs were selected for inclusion in the Project. 43 Details of the geographic locations of these counties are shown in Appendix 7, Maps A7.1-A7.6. Within each county the CPMO identified a project area, which may be one or more contiguous areas depending on local circumstances. However, these are all areas where the irrigation systems are in a poor state of repair or have not been completed at the field level, or in the case of tubewell systems where they currently do not exist. The areas are characterized by the prevalence of low- and medium-yield land and poor quality field and farm roads compared to the surrounding areas. The project areas thus represent relatively poor pockets within the project counties, which is confirmed by comparison of the average per capita annual income of the project area, which at CNY3,614 is only 84% of the average for the project counties (CNY4,282). Appendix 6 sets out some of the key statistics of the project areas.
3.4.4 PROJECT COMPONENTS
112 The project components for the overall project are outlined below and described in detail in Appendix 7. The breakdown by province is shown in Table A7.
113 Improved Irrigation and Drainage Infrastructure . Activities relating to the improvement of irrigation and drainage systems include: (i) rehabilitation and completion of surface water irrigation distribution systems; (ii) installation and upgrading of tube-wells to extract water from groundwater sources; (iii) introduction of water saving technologies; (iv) formation and strengthening of WUAs including encouragement of women’s participation both as members and in WUA management; and (v) support for pilot solar-powered irrigation systems.
114 Rehabilitation and completion of surface water irrigation projects will be undertaken to increase the area of irrigation systems to originally designed area. Dredging of existing drainage ditches will be undertaken to reduce problems of water-logging and flooding and/or salinity. This will be complemented by construction and rehabilitation of auxiliary facilities: irrigation pumping stations, reservoirs, small dams, culverts, spill weirs, canal bridges and other necessary structures.
115 Tubewell irrigation projects will be constructed to support extraction of water from underutilized groundwater resources and will ensure a balance between groundwater extraction and recharge. Facilities for motor-pumped wells and pump stations will include hydro buildings, electromechanical equipment, and the facilities for electricity transmission lines less than 10kv must be linked and managed in an integrated manner so that the overall efficiency of the devices reaches the relevant standards.
116 Water saving technologies will be supported including lining of irrigation canals to reduce seepage, installation of low pressure pipe irrigation (mainly from tube-well pumping systems), and installation of sprinkler and micro-irrigation systems. These activities will increase irrigation coefficients and water use efficiency. Within the areas covered by the surface-water and groundwater irrigation systems water saving technologies will be introduced on 74,495 ha that currently experience water shortages for some period during the cropping season.
117 Infrastructure improvements will be complemented by improved irrigation O&M systems through establishment of 95 new and existing WUAs. Support for WUAs will be
43 Originally a total of 71 subproject counties/cities were selected but three in Ningxia AR were subsequently combined into a single subproject. 33
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 provided through small-scale grants to individual WUAs to cover the cost of promotion activities, preparing training materials and conducting training of farmers on WUA establishment procedures and O&M, preparing work place and office equipment and materials, registration to county civil affair bureaus, and buying/constructing necessary water measurement facilities for better water distribution management and water fee collection through the WUAs. Women will have equal access to all WUA related training and will be encouraged by gender sensitive curricula.
118 Ningxia AR proposes investing in nine investing in pilot solar power units for the pumping of groundwater for irrigation either for production of high value crops or to supplement existing irrigation sources. All pilots are proposed for the first two years of project implementation.
119 Improved Irrigated Agriculture. Activities related to the improvement of improved irrigated agriculture include: (i) improvement to soil quality; (ii) construction/improvement of major farm and field roads to improve access to fields for field operations and transportation of crops; (iii) improved agricultural practices; (iv) reduced land degradation through expansion of forest area; (v) improvements to farmer capacity through greater training and the establishment/ strengthening of FAs including co-operatives, and (vi) demonstrations of modern agricultural technologies including greenhouse production, pollution-free agriculture, and green agricultural production. Women’s participation in all activities will be encouraged and enabled by the provision of promotion activities and other measures.
120 Improvements to soil quality will be supported through field consolidation, where appropriate, and field leveling to promote drainage and water use efficiency. In addition, soil improvements will be made through field-by-field soil assays to determine the appropriate application rates for N, P, and K, while also establishing the percentage of organic material in individual fields. This will allow more rational use of N, P and K chemical fertilizers and compound fertilizers, improving yields while controlling costs and run-off. Directly related to these assessments is the promotion of crop residue processing and distribution on arable land. Processing of crop straw/stalks prior to incorporation into soil results in better mixing and ha a positive impact on drainage, moisture retention, and soil fertility. Deep plowing, in the classic sense, has been found to consistently improve drainage and soil aeration, while reducing soil compaction. While deep-plowing may not always be of sufficient depth, benefits related to soil aeration and drainage will be substantial. Salinity mitigation will be carried out in a limited area in Ningxia AR.
121 To improve access to fields from the villages, particularly during the rainy season, and to reduce agricultural production and marketing costs, the project will rehabilitate existing field trunks and farm (production) roads, including construction of new roads as required. Within the areas covered by the surface water and groundwater irrigation systems this subcomponent will support rehabilitation of existing field trunk and production roads and the construction of new roads, where required, to reduced agricultural production and marketing costs.
122 Various improved agricultural practices will be promoted under the Project. Distribution and use of improved seed has proved effective in raising yields through reduction in the use of disease-susceptible varieties as well as simply the use of more productive contemporary varieties. Few grain-crop varieties are used longer than 5-7 years in major grain-exporting nations. Efforts made in project areas to promote quality seed reflect awareness that varietal improvements, selected to fit local conditions, will increase yields without significantly increasing costs. Expansion of mechanized field cultivation and harvest activities will prove beneficial. Mechanized tillage and sowing consistently improve yields by creating a better medium for crop production, and more uniform seeding rates and seed distribution. Mechanical harvesting will reduce crop losses . Improved and expanded 34
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 extension services are essential to improved agriculture. Promotion of IPM will typically reduce the use of agricultural pesticides and fungicides through their more timely and rational use. Benefits are diverse including lower production costs, reduction in disease incidence, improvements in quality of run-off water, and improved farmer safety.
123 Reduced land degradation through expansion of shelter-belt forests and environmental production forests reflects the important relationship between the productivity of arable land and associated forested areas in proximity. Shelter-belt forests reduce crop-level wind speed, reduce erosion and improve soil moisture retention while limiting crop damage from wind. In addition activities will include restoration of pasture in Ningxia AR and treatment of salinity-affected areas, particularly in Ningxia AR.
124 Improvement of farmer capacity through greater training and the establishment of more comprehensive, and inclusive, FAs are closely associated with the promotion of CAD programs. Formation and strengthening of FAs will allow farm families to get the maximum benefit from upgraded infrastructure, increased and improved mechanization, quality seed programs, balanced fertilizer application programs, promotion of best-practices for crop production, post-harvest processing, and market awareness. Training of farmers will provide a basis for sharing of their expertise with other farmers.
125 Demonstrations of modern agricultural technologies will provide the basis for wider adoption of these practices throughout the project area. For example, while greenhouses are proposed to be demonstrated on individual farmer’s fields, with the farmers benefiting by assuming ownership of the infrastructure following the demonstration, it is expected that neighboring farmers will observe the demonstrations and be encouraged to adopt the technology. Similarly demonstrations of pollution-free and green agriculture will encourage diversification of farmer’s product mix, raise crop returns, promote safe-food production and increase awareness of the potential rewards related to the production of “green” products. There is expected to be a close association with the development of these activities and an expanded role for farmer’s associations.
126 Strengthened Project Management. Although CAD projects have been implemented through the SOCAD for more than 20 years management capacity remains highly variable. Some provincial CAD offices appear highly progressive and are attempting to introduce the latest technologies for project implementation and monitoring, while others are less advanced. Strengthened project management will focus on improving the overall capacity of the CAD offices by providing a substantial level of domestic and international training and study tours for all of the participating offices, and incremental office equipment and MIS equipment. Focus will be given to ensuring the participation of female staff in all training and study tours. In addition a more advance integrated management system will be introduced to selected CAD offices in Heilongjiang Province and Ningxia AR, as well as a limited system in Anhui Province, to demonstrate the potential for more advanced approaches to project management and monitoring. This component also includes grant-funded activities for rural women’s economic empowerment.
3.5 SPECIAL FEATURES
127 A number of potential special features of the Project have been identified as a result of discussions between the consultant team, ADB, the EA and the IAs. These include:
128 A Single and Comprehensive Agricultural Development Model. The sector analysis has identified several key problems that are common to all of the project provinces, including incomplete and deteriorated surface and groundwater irrigation systems, lack of effective WUAs, poor and declining soil quality, poor quality inputs for grain production,
35
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 limited mechanization of field crop agriculture, lack of effective FAs particularly with respect to input supply and output marketing, and inadequate extension services including lack of demonstrations of modern agricultural technologies (including pollution-free crop production, organic/green agriculture and greenhouse production). The project will adopt a single integrated and comprehensive agriculture development model throughout the project area to address these problems rather than taking a partial or fragmented approach. This will simplify project design and allow each province to learn from the experience of others, thus facilitating project implementation in a large number of locations in the six provinces. The network of provincial, municipal/prefecture national and county CAD offices established under SOCAD will make it organizationally possible to implement such a model where lessons learned in any project area can be effectively promoted elsewhere.
129 Adaptation to Climate Change. The impact of climate change in terms of reduced water availability through changes in rainfall and glacial melt in some locations, and more variable rainfall in other locations, has been identified as a key issue in the sector analysis. Lessons learnt from World Bank/Global Environmental Facility (GEF) projects in improving agricultural adaptation to climate change have been carefully reviewed and incorporated into the project design. Project design has to take account of agricultural adaptation to climate change by incorporation of key activities relating to irrigation and irrigated agriculture. Major aspects will include (i) an increased area of irrigation canal systems, (ii) improved water use efficiencies through promotion of water-saving technologies such as irrigation canal lining, low-pressure underground PVC pipelines, and sprinkler and micro-irrigation systems; (iii) reinforcement of irrigation barrages and small-scale water storage structures; (iv) promotion of production and distribution of improved seed varieties, (v) promotion of crop varieties with lower water requirements; and (vi) public awareness promotion and institutional development. Technical assistance will also be provided to support promotion of climate change adaptation in Ningxia AR. 44
130 Clean Energy Development. One of the major investments for tubewell and pumped irrigation systems is the purchase and installation of the electricity supply, which may require transmission lines and voltage transformers. The cost of electricity also represents a major part of operation costs and in many rural areas these costs are so large that farmers are discouraged from irrigating their crops. As a result an interest has been expressed in Jilin Province and Ningxia AR in conducting pilots of solar-powered irrigation systems. Smaller tests have also been proposed for Anhui and Heilongjiang Provinces. ADB has recently supported a pilot solar-energy irrigation system for irrigated pasture production. 45 Results indicate that it is feasible to irrigate pasture for improved livestock production in areas where mains electricity is not readily available and that solar power is likely to be more economically viable than diesel-powered pumps. For livestock production the pay-back period was estimated at 6-8 years. One of the main constraints identified related to the depth of groundwater, which should not be more than 30 m otherwise the investment for the photovoltaic pump would be too high. The project will support a pilot demonstration of solar-powered irrigation for production of high-value crops in selected project counties in Ningxia AR (Appendix 23), the results of which will be used to support project investments.
131 Gender Equality and Women’s Empowerment. Core to the effective delivery of all project components is the enhancement of gender equality and rural women’s empowerment. Seventy five percent of rural women in China participate in agriculture.46 A nationwide survey of rural women undertaken in 2006/07 identified the following problems as hampering rural
44 A revised version of the technical assistance, which is combined with the clean energy development Technical assistance is in process and will be included in the updated version of the Final Report. 45 ADB, 2010. Qinghai Pasture Conservation Using Solar Photovoltaic (PV)-Driven Irrigation , Final Report, ADB RSC-C919300 (PRC) 46 Zhen Yan (ed), Reports on the Situation of Rural Women in China, Beijing: Social Sciences Academic Press (chin.), p. 2. 36
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 women’s full participation in the New Socialist Countryside construction: (i) lack of capital; (ii) lack of practical (market) information services; and (iii) restrictions due to obligations to look after children, ill family members and the elderly.47 With the increasing number of young male farmers migrating to urban areas, females and the elderly comprises a significant proportion of the farmers in the project area. The sector analysis has identified the problems in many areas of the availability of suitable labor and technology, lack of adaptation of training courses to women’s particular needs and consequently their limited participation in training, and women’s limited knowledge of and participation in agricultural marketing. The project include a grant to pilot specific approaches to strengthening female farmers' technical skills for agricultural production, marketing skills to sell agricultural produce, and managerial skills in managing the irrigation and other infrastructure (Appendix 18). Successful implementation of the pilot will demonstrate the opportunities for adoption of more gender sensitive approaches throughout the Project as well as for future projects.
132 Project monitoring and impact evaluation. One of the lessons learnt from previous CAD projects is that more focus was put on project implementation than monitoring and evaluation. Moreover, review of the current monitoring systems indicates that it is centered on the needs of individual projects rather than the overall needs of the CAD program, thus limiting the opportunities for comparing progress and achievements of different projects, and that there are significantly different capacities in the provincial CAD offices. The proposed Project will improve the existing CAD project monitoring and evaluation by supporting development of pilot integrated information management systems in Heilongjiang Province and Ningxia AR that combine the conventional type of M&E system with a modern geo-referenced system that uses GIS, GPS, satellite imagery, etc. The integrated information and management system will be supported through equipment and material purchase supported by the project and technical support provided through a piggy-backed Capacity Development Technical Assistance (CDTA) (Appendix 22).
3.6 PROJECT INVESTMENT PLAN
133 The project is estimated to cost $318.65 equivalent including contingencies ($24.65 million), financial charges ($10.17 million), and taxes and duties ($30.75 million). The investment plan is summarized in Table 3.1 and detailed cost estimates are shown in Appendix 8.
Table 3.1: Project Investment Plan ($ million) Item Amount a A. Base Cost b 1. Improved Irrigation and Drainage Infrastructure 154.75 2. Improved Irrigated Agriculture 98.88 3. Strengthened Project Management 30.20 Subtotal (A) 283.83
B. Contingencies c 24.65
C. Financing Charges During Implementation d 10.17 Total (A+B+C) 318.65
47 Ibid, p.10. 37
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011
a Includes taxes and duties of $30.75. b In late-2010 prices. c Physical contingencies computed at 5.2% for civil works; and 5.2% for field research and development, training, surveys, and studies. Price contingencies were computed using foreign escalation factors of 0.7% for 2011, 0.3% for 2012 and 0.5% for 2013, 0.7% for 2014 and 0.8% for 2015, and local escalation factors of 1.7% for 2011, and 2.0% thereafter. d Includes interest and commitment charges . Interest during construction for ADB loan(s) has been computed at the 5-year forward London interbank offered rate plus a spread of 0.4%. If the loan is negotiated before 1 July 2011, the spread will be reduced to 0.3%. Commitment charges for an ADB loan are 0.15% per year to be charged on the undisbursed loan amount. Source: Consultant’s estimates
3.7 FINANCING PLAN
134 The PRC Government has requested a loan of $200 million from ADB’s ordinary capital resources to help finance the project. The loan will have a 25-year term, including a grace period of 5 years, an annual interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility, a commitment charge of 0.15% per year. The government will provide ADB with (i) the reasons for its decision to borrow under ADB’s LIBOR-based lending facility based on these terms and conditions, and (ii) an undertaking that these choices were its own independent decision and not made in reliance on any communication or advice from ADB.
135 The financing plan is shown in Table 3.2 and details of the financing plan are shown in Appendix 8.
Table 3.2: Financing Plan Amount Share of Source ($ million) Total (%) Asian Development Bank 200.00 62.76 Provincial and Local Governments 84.98 26.67 Central Government 10.17 3.19 Beneficiaries 23.50 7.35 Total 318.65 100.00 Source: Consultant’s estimates.
136 Of the estimated total cost of $318.65 million, the ADB loan will finance $200 million or 62.76%. Provincial and local governments will provide counterpart funds of $84.98 million (CNY568.5 million) or 26.672% of the total cost, and the beneficiaries (farmers) will contribute $23.50 million (CNY157.2 million) or 7.35% of the total cost, predominantly as in-kind contributions such as labor inputs. The central government will finance the financial charges, estimated at about $10.17 million. The farmers' contribution for the project is about CNY106/mu, which is extremely low compared to other CAD projects (including the World Bank's projects) and roughly equivalent to about 2 days' labor input per mu. The total investment cost is CNY1,445/mu, about $3,240/ha.
3.7.1 FLOW OF FUNDS
137 The project will focus on improving agricultural public goods and is non-revenue generating. To motivate the provinces and autonomous regions to carry out the project, the Government will give grants (instead of on-lending the loan proceeds) to the participating provinces and autonomous regions. The loan will be borrowed and repaid by the MOF.
138 MOF will open an imprest account and the provincial financial department and county financial bureaus will open counterpart fund accounts in the commercial banks respectively to
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ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 manage counterpart contributions in line with the requirements in the Loan Agreement. A draft of the proposed flow of funds arrangement is shown in Appendix 9.
3.8 IMPLEMENTATION ARRANGEMENTS
3.8.1 SUMMARY OF IMPLEMENTATION ARRANGEMENTS
139 The implementation arrangements are summarized in Table 3.3 and described in detail below.
Table 3.3: Implementation Arrangements Aspects Arrangements 1 Implementation period 5 years from July 2011 to June 2016 2 Estimated project completion date 30 June 2016 3 Project management 3.1 Oversight body Project Leading Group of SOCAD, chaired by the Leader of SOCAD, with members from various relevant central ministries 3.2 Executing agency SOCAD 3.3 Key implementing agencies The PPMOs of Anhui, Heilongjiang, Henan, Jilin, Ningxia and Yunnan will assume day-to-day responsibility for programming, planning and organization of the provincial CAD program, management of the cities’ and regions’ CAD offices, implementation of project activities relating to technical guidance and training; and for organization and structuring of annual reports and the related work The CPMOs for the 69 participating counties/farms are responsible for the daily management of the project, including the preparation of the project implementation, checking construction progress and quality, organizing civil works, bidding and purchasing goods, inspecting financial management, coordinating and solving problems encountered in the process of implementing the work. 3.4 Project implementation unit 69 CPMOs in Each CPMO has a full complement COCADs of staff sufficient for undertaking the project 4 Procurement National competitive 69 contracts (1 $160,724,400 bidding civil works contract for each subproject) Shopping About 276 $67,999,400 contracts for goods and training & study tours (estimated average 4 per subproject) Community 136 contracts $2,453,800 Participation (57for WUAs and 79 for FAs NBF To be defined by $59,092,900 Government 5 Consulting services none
39
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011
6 Retroactive financing and/or advance SOCAD has requested advance contracting and retroactive contracting financing to enable early commencement of procurement of civil works, goods, and services including training. Retroactive financing will apply up to $40.0 million, or 20% of the total ADB loan amount, with respect to expenditures incurred before loan effectiveness, but not more than 12 months before the signing of the loan agreement. 7 Disbursement Direct payment The loan proceeds will be disbursed Reimbursement in accordance with ADB's Loan Imprest account Disbursement Handbook (2007, as SOE amended from time to time) and Full supporting detailed arrangements agreed upon documentation between the Government and ADB. process ADB = Asian Development Bank, CAD = Comprehensive Agricultural Development, COCAD = County Office for Comprehensive Agricultural Development, CPMO = county project management office, FA = farmer association, NBF = non-bank financed, PPMO = provincial project management office, SOCAD = State Office for Comprehensive Agricultural Development, SOE = statement of expenses, WUA = water user association Source: Consultant’s estimates
3.8.2 PROJECT MANAGEMENT
140 SOCAD will be the executing agency (EA) for the project and will be responsible for planning, financing and financial management, overall implementation management, and reporting of progress to both ADB and the Government. A Project Leading Group (PLG) will be established within SOCAD and will be responsible for organization and coordination during overall planning and implementation process, so that construction tasks are completed on schedule. The leader of SOCAD will be the chair of the PLG and the members will be representatives from various relevant central ministries including NDRC, Ministry of Environmental Protection (MEP), MWR and MOA.
141 PLGs and project management offices have been established at the provincial, regional (city/ prefecture) and district (county/county-level city) levels in association with the water conservancy, agriculture, forestry and other relevant departments. All of the provinces and counties/cities have established CAD project offices with a full complement of full-time staff responsible for project management, execution and monitoring. The PLGs are responsible for overall planning, organization of implementation, coordination with involved departments, and supervision to ensure timely completion of project construction.
142 The Provincial Project Management Offices (PPMOs) are responsible for programming, planning and organization of the provincial CAD program, management of the cities’ and regions’ CAD offices, implementation of project activities relating to technical guidance and training; and for organization and structuring of annual reports and the related work deployed by SOCAD.
143 The County (City) Project Management Offices (CPMOs) are responsible for daily management of the project, including project implementation, checking construction progress and quality, organizing civil works, bidding and purchasing goods, inspecting financial management, coordinating and solving problems encountered in the process of implementing the work. The CPMOs include specialists from agriculture, forestry, water conservancy and other departments to ensure the projects are technically sound.
144 The national Project Management Office (PMO) has sound regulatory and management mechanisms based on previous project management experience. Procedures are updated regularly. The project is planned and designed in accordance with Project Construction Standards of National Agricultural Comprehensive Development and Management of Land. Institutions at all levels of project management have control of the 40
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 management system in accordance with the project management and operation, project bidding and purchasing, reimbursement, monitoring and evaluation, financial management, inspection and acceptance, operation and maintenance, etc. in accordance with the corresponding rules and regulations.
145 The proposed project management organization is showed in Appendix 9 and institutional and capacity analysis is detailed in Appendix 10.
3.8.3 IMPLEMENTATION PERIOD
146 The Project will be implemented over a 5-year period starting in mid-2011. The draft implementation plan is shown in Appendix 11.
3.8.4 PROCUREMENT
147 ADB-financed civil works, goods, and services will be procured in accordance with ADB's Procurement Guidelines (2010, as amended from time to time). Procurement activities are expected to be implemented in a similar manner to that followed by the earlier World Bank IAIL2 Project, which has been reviewed prior to specifying the procurement plan. In general procurement will be in accordance with National Competitive Bidding (NCB) procedures in accordance with the PRC's Tendering and Bidding Law (1999), subject to modifications agreed upon with ADB for civil works packages in excess of $200,000 and for equipment packages in excess of $100,000. The shopping procedures will be used for civil works packages less than $200,000 and equipment packages less than $100,000. International Competitive Bidding (ICB) procedures, which would be required for civil works packages in excess of $10 million and equipment packages in excess of $1 million, are not expected to be used. The relevant sections of ADB's Anticorruption Policy (1998, as amended to date) will be included in all procurement documents and contracts. Provinces will in general be responsible for procurement of equipment and may combine the requirements for several projects while counties will generally be responsible for the procurement of civil works contacts. The procurement plan is provided in Appendix 12.
148 The Consultant has undertaken a procurement capacity assessment in line with ADB’s Guide to EA Procurement Capacity Assessment. The findings of the assessment are in Supplementary Appendix D but in line with the requirements of the Guide no analysis has been undertaken.
3.8.5 CONSULTING SERVICES
149 Given the extensive experience of the PMO in implementation of the CAD program and in management of World Bank financed projects, and taking into account the results of the institutional and capacity analysis (Appendix 10), the PMO and PPMOs are considered capable of implementing the proposed project. However, training courses to familiarize the PMO and PPMOs with ADB procedures, particularly in procurement, disbursement, resettlement, and reporting, should be included in ADB’s training program for EAs and IAs and do not require additional assistance. Technical assistance has been agreed to be necessary in some specific areas such as WUA and FA formation and strengthening, and has been included in a proposed CDTA (Appendix 22). In addition four of the provinces – Henan, Jilin, Ningxia, and Yunnan, have indicated the need for consulting services to assist with technical issues of project implementation. The proposed services - comprising 225 person-months for Henan, 31 person-months for Jilin, 131 person-months for Ningxia, and 116 person-months for Yunnan – will be provided entirely by national consultants who will be recruited by each of the provinces. Terms of reference for the consulting services will be
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ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 prepared by the Government and provided to ADB prior to or during the loan processing mission.
3.8.6 ADVANCE CONTRACTING AND RETROACTIVE FINANCING
150 The Government indicated during the Interim Report Workshop that they will request advance contracting and retroactive financing to enable early commencement in key subproject areas of procurement of civil works, goods, and services including training. The details of activities to be financed and their justifications will be set out in a written request to ADB. The Government and provincial governments have been advised that retroactive financing may only apply to up to 20% of the amount of the ADB loan in respect for expenditures incurred before loan effectiveness, but not earlier than 12 months before signing of the loan agreement. All contracts for advance contracting will be undertaken in accordance with ADB's Guidelines on the Use of Consultants and Procurement Guidelines . The Government and provincial governments have also been advised that approval of advance contracting and retroactive financing does not commit ADB to financing the project. 48
3.8.7 DISBURSEMENT ARRANGEMENTS
151 The loan proceeds will be disbursed in accordance with ADB's Loan Disbursement Handbook (2007, as amended from time to time). Direct payment, reimbursement, commitment, and imprest fund procedures may be used to withdraw funds from the loan account. To expedite the flow of funds and simplify document processing, the statement of expenditures procedure may be used to reimburse, replenish, and liquidate eligible expenditures for any individual payment not exceeding $100,000. Payments exceeding this ceiling will be reimbursed, replenished, and liquidated based on the full documentation process. The cost of taxes and duties ($20.56 million or 6.28% of the project cost) has also been taken into consideration in estimating the contract amount during the preparation of the procurement plan to ensure full utilization of loan proceeds. It is proposed that ADB financing percentages will be applied to eligible expenditures inclusive of taxes and duties.
152 An imprest account will be set up for the project by SOCAD in a commercial bank acceptable to ADB. The initial amount deposited into the imprest account will not exceed 10% of the total loan amount, or the estimated expenditures to be financed from imprest account for the first 6 months of implementation, whichever is lower. SOCAD will be responsible for management, monitoring, and reconciliation of the imprest account. The FMA shows that SOCAD has the capacity to manage the imprest account, but will require further training on ADB policies and procedures on disbursement and financial management as the project is the first ADB loan for the CAD program. The request for initial advance to the imprest account should be accompanied by an estimate of expenditure sheet 49 setting out the estimated expenditures for the first 6 months of project implementation, and submission of evidence satisfactory to ADB that the imprest account has been duly opened. For every liquidation and replenishment request of the imprest account, the borrower will furnish to ADB (a) the statement of account (bank statement) where the imprest account is maintained, and (b) the imprest account reconciliation statement reconciling the above mentioned bank statement against the executing agency’s records .50
48 Advance contracting and retroactive financing will be elaborated in greater detail during the loan fact finding mission at which time the revised project costs and more detailed procurement and implementation scheduling is expected to be available. 49 Available in Appendix 29 of the Loan Disbursement Handbook. 50 Following the format provided in Appendix 30 of the Loan Disbursement Handbook. 42
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3.8.8 ACCOUNTING AND AUDITING
153 The PMO will prepare consolidated quarterly progress reports indicating progress achieved and problems encountered during the review period, including steps taken or proposed to remedy the problems, proposed program of activities, and progress expected in the following quarter. The PMO will ensure that these reports are submitted to ADB in a timely manner and will submit a completion report within 6 months of the project's physical completion.
154 The PMO and each PPMO and CPMO will maintain separate records and accounts that identify the goods and services, and the expenditures financed from the loan proceeds and counterpart funds for the project. Each CPMO will prepare annual financial statements for their project activities and submit these to PPMO, which will consolidate and submit them to the PMO. The PPMOs will also prepare annual financial statements for their project activities and submit these to the PMO. The PMO will consolidate the annual financial statements of the PPMOs, the consolidated annual financial statements of the CPMOs, and its own annual financial statements, as well as those related to the imprest accounts. All financial statements will be prepared in accordance with relevant accounting standards and regulations acceptable to ADB. The consolidated financial statements will be audited annually by an independent auditor in accordance with auditing standards acceptable to ADB. Within 6 months after the end of each fiscal year, the PMO will submit to ADB certified copies (in English) of such audited financial statements and auditor's reports from the second year of project implementation until the following year after the loan is closed. The audit reports will include an assessment of the adequacy of internal control systems with respect to project activities and compliance with loan covenants specified in the loan and project agreements, and a separate opinion on utilization of the imprest account and the statement of expenditures procedure.
3.8.9 PROJECT PERFORMANCE MONITORING AND EVALUATION
155 To monitor the progress of the project in achieving the planned outcome and outputs, the PMO will establish and maintain a project performance management system (PPMS), which will be designed to permit adequate flexibility to adopt remedial action regarding project design, schedules, activities, and development impacts. The PPMS will adopt the following agreed indicators: (i) project physical and financial progress, (ii) irrigated agriculture development and productivity, (v) improvement in irrigation water use efficiency, (vi) fee collection and O&M, (vi) poverty and rural income, and (vii) social development (resettlement, ethnic minority, and gender). A proposed set of data to be collected is shown in Appendix 13. Each of the indicators in Appendix 13 has both spatial and temporal dimensions in that the data can refer to either individuals or a specific geographic unit such as a village or township, and to a specific date during project implementation. Design of the PPMS will ensure that maximum advantage is taken of these dimensions.
156 At the beginning of project implementation, PMO will finalize comprehensive PPMS procedures to systematically generate data in the above areas in consultation with IAs. The PMO will refine the PPMS framework, confirm achievable targets and the monitoring and recording arrangements, and establish relevant systems and procedures not later than 6 months after project implementation begins. The PMO and IAs will assign staff or consultants to collect baseline and progress data at the requisite time intervals, including annual reporting on the environmental management plan (EMP). The PMO will be responsible for analyzing and consolidating reported data through its MIS, and reporting outcomes to ADB through quarterly progress reports.
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3.8.10 PROJECT REVIEW
157 In addition to regular monitoring, project performance will be jointly reviewed at least once a year by ADB and the Government. The review will assess implementation performance and achievements towards project outcomes and outputs, financial disbursements, and issues and constraints affecting implementation. It will also include development of a time-bound action plan for resolution of issues and constraints. ADB and the Government will undertake a midterm review to assess implementation status and take appropriate measures like modification of scope and implementation arrangements or reallocation of loan proceeds as appropriate, to achieve the project impact and outcome.
3.9 TECHNICAL ASSISTANCE
3.9.1 CAPACITY DEVELOPMENT TECHNICAL ASSISTANCE
158 A CDTA of $1,050,000 is requested by SOCAD to strengthen national and provincial capacity in developing effective WUAs and FAs, improve water-use efficiency, and improve information management. ADB will finance $800,000 from its TA funding program. SOCAD and the six POCADs will provide $250,000 equivalent for in-kind costs. The CDTA will address five priority issues identified through sector and capacity analysis: (i) effective farmer-based WUAs and FAs including the possibility of combining these functions; (ii) the possible role of WUA federations; (iii) promotion of water efficiency measures in irrigated agriculture; (iv) establishment of an integrated information management system for CAD at the national and provincial level; and (v) development of strategies for the promotion and dissemination of cultivation and post-harvest processing techniques. The CDTA will be implemented over 2 years from June 2011 to December 2013. A total of 20 person-months of international and 54 person-months of national consultants will be recruited through a firm by using the quality- and cost-based selection method. Details of the CDTA are provided in Appendix 22.
3.9.2 SOLAR-POWERED IRRIGATION PILOT
159 A TA of $850,000 is requested by SOCAD for pilot demonstrations of solar-powered irrigation systems in three provinces – Heilongjiang, Jilin, and Ningxia AR – to (i) demonstrate their feasibility for crop irrigation; and (ii) strengthen the capacity of central, provincial and county officials to promote this innovative technology. ADB will finance $700,000 in the form of a TA grant from available sources. SOCAD and the three participating POCADs will provide $150,000 equivalent for in-kind costs. The expected impact of the TA is the demonstration and testing of solar-powered irrigation systems in 9 locations in three provinces under different climatic conditions, irrigation methods and crops. The expected outcomes are (i) the increased awareness of the executing agency and implementing agencies of alternative irrigation methods using renewable energy sources, and (ii) results of pilot trials enabling technical and economic evaluation for possible replication in other areas. The TA has three outputs: (i) establishment of pilot solar-powered irrigation systems in 9 locations in 3 provinces; (ii) evaluation of the pilots using solar powered irrigation systems in 3 provinces and climatic areas; (iii) summarizing and promoting solar powered irrigation systems. The TA will be implemented over 2 years from October 2011 to December 2013. A total of 6.0 person-months of international and 7.5 person-months of national consultants will be recruited through a firm by using the quality- and cost-based selection method. The solar-powered irrigation pilot is detailed in Appendix 23.51
51 This section and the related appendix will be replaced in the revised version of the Final Report based on material to be provided by the review team. 44
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3.9.3 RURAL WOMEN’S ECONOMIC EMPOWERMENT
160 A Gender and Development Cooperation Fund (GDCF) grant of $300,000 is requested by SOCAD to pilot activities to support rural women’s economic empowerment as feminization and graying of agriculture become increasingly common across China, particularly in the central and western provinces. As men migrate seasonally or permanently to urban centers or coastal areas, leaving women to attend to household chores as well as fields and livestock, women are disadvantaged since they receive neither sufficient economic benefits nor adequate opportunities for development. The proposed grant subproject will complement the project by piloting different approaches and interventions to promote empowerment of women in selected villages in 2 counties in each of Anhui, Ningxia and Yunnan Provinces. The GDCF grant will support (i) training of women’s production groups; (ii) strengthening of the capacity of the ACWF; and (iii) introducing an innovative model of women’s empowerment (ACWF plus). The subproject will be implemented over 12 months from June 2011 to December 2012. A total of 32 months of national consultants will be recruited through a firm by using the quality- and cost-based selection method. The GDCF proposal is in Appendix 18.
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4 PROJECT BENEFITS , IMPACTS , ASSUMPTIONS , AND RISKS
4.1 PROJECT BENEFITS AND IMPACTS
161 The project is expected to benefit about 1.23 million persons, including 691,000 rural laborers, comprising 326,000 farm households in 501 villages. These villages are located in 111 townships and 4 state farms. 52 The beneficiary population represents about 2.2% of the farm households and 4.0% of the farm population of the project counties and state farms. At full project development, average per capita income of the farm population is expected to increase by about CNY400/year from CNY3,614 to CNY4,012 in constant 2010 values, an increase of about 11%. With an average household size of 3.78 persons, the incremental income per farm household is estimated at about CNY1,500. While substantial, this still implies that average per capita income in the project area will be below the average for the project counties (CNY4,282).
162 Based on a total cultivated area within the project area of 98,350 ha, the average cultivated area is just 0.08 ha/person (1.20 mu/person) or 0.30 ha/household (4.52 mu/household). Under these circumstances, the low incomes and incremental incomes do not appear unreasonable, and it should not be expected that the project will have a significant impact on reducing migration.
163 Average incremental grain production at full project development is estimated at an annual amount of 210,990 t, comprising 191,960 t of cereals (58,930 t of wheat, 48,455 t of corn, 81,375 t of rice, and 3,200 t of barley), 8,950 t of soybeans, 6,740 t of potatoes, and 24,610 t of others, including silage maize. Average incremental production of cash crops is estimated at an annual amount of 210,200 t, predominantly in the form of vegetables (including melons), which account for 209,770 t. Other cash crops that are expect to make a contribution to incremental production include groundnuts (7,170 t), rapeseed (1,580 t), cotton (940 t), and others (840 t).
4.2 FINANCIAL SUSTAINABILITY
164 Capacity to Finance Counterpart Contributions . Financial counterpart contributions will be provided by provincial, city 53 and county governments and beneficiaries. The capacity to finance counterpart contributions is assessed for the 6 provincial governments and 8 representative county governments based on comparison of their proposed contributions as determined in the financing plan and fiscal revenue in the most recent annual government report. Lankao in Henan, and Eryuan and Yulong in Yunnan do not have to provide counterpart contributions as they are poverty counties. All of the provinces and the other IAs have the capacity to finance their counterpart contribution and satisfy the selection criterion (Appendix 14).
165 Financial Viability. The project’s financial viability is assessed on the basis of the financial internal rate of return (FIRR) being greater than the weighted average cost of capital (WACC), which is estimated to be 4.19%; a positive FNPV using the WACC as the discount factor; and sensitivity tests. The analysis indicates that the overall FIRR is 18.3%, with FIRRs for individual provinces ranging from 9.4% for Heilongjiang to 31.1% for Anhui, all well above the WACC. Financial sustainability is presented in detail in Appendix 14.
52 The total population and households includes Saertu District for which it is reported there are no villages or townships as the area is a part of Daqing City. 53 Only for Anhui, Henan, and Yunnan Provinces. 46
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4.3 ECONOMIC ANALYSIS
166 The economic analysis of the project has been undertaken for the overall project and for aggregates of the subprojects in each province using with- and without-project scenarios in accordance with the ADB guidelines. 54 Crop budget data were obtained from the provincial summaries prepared by each of the provincial offices and with- and-without project net revenues estimated per hectare for each of the provincial project areas rather than for representative farms. Demand analysis undertaken for the major project outputs indicated that incremental production will not have an impact on price since demand is expected to increase due to the rapidly developing and urbanizing economy. Project alternatives were not explicitly considered since the only realistic alternative to the proposed project, which will complete and rehabilitate existing irrigation systems, would be to develop new irrigation systems and this would clearly be far more expensive.
167 The main quantifiable benefits from the project are the incremental crop production, predominantly grain crops but also vegetables and other cash crops. Other benefits that were not quantified include environmental benefits from increased water use efficiency and improved soil quality, as well as benefits from reduced land degradation due to increase forest shelterbelts. Financial benefits were converted to their economic values based on world market prices for tradable commodities and local market prices for non-traded commodities. Project costs were estimated using Costabs and similarly converted to economic values. All economic values are expressed using the world price-level numeraire .
168 The economic analysis indicates that the overall project is economically viable with an economic internal rate of return (EIRR) of 20.2% and an economic net present value (ENPV) of CNY870.8 million (Table 4.1). The EIRRs of individual provinces range from 11.5% for Heilongjiang to 29.3% for Anhui. These EIRRs are considered reasonable for the type of subprojects proposed.
169 Sensitivity analyses undertaken for the overall project and the individual provinces indicate that the analysis is generally robust in terms of the impact of increased costs, decreased benefits, increased costs and decreased benefits combined, and a lag in benefits. An additional sensitivity test was conducted on the impact of increased O&M costs, which indicated that if these were double the level used in the economic analysis the overall EIRR would be reduced to 18.2%, which is still well above the required value for economic viability.
Table 4.1: Summary of Provincial and Overall Economic Analysis Province/Autonomous Region EIRR ENPV (%) (CNY million) Anhui 29.3 367.6 Heilongjiang 11.5 (8.2) Henan 21.1 184.7 Jilin 14.6 44.6 Ningxia 17.8 77.9 Yunnan 23.2 204.2 Overall Project 20.2 870.8 EIRR = economic internal rate of return; ENPV = economic net present value (at 12% discount rate) Numbers in parenthesis are negative. Source: Consultant’s estimates based on provincial data
170 Details of the economic analysis are provided in Appendix 14.
54 ADB. 1997. Guidelines for the Economic Analysis of Projects . Manila, Philippines 47
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011
4.4 ENVIRONMENTAL BENEFITS AND IMPACTS
171 An Initial Environmental Evaluation (IEE) has been prepared (Supplementary Appendix F), which indicates that the project is expected to generate multiple environmental benefits including: (i) irrigation water savings; (ii) reduced use of agrochemicals; (iii) reduced soil loss and improved soil quality; (iv) reduced salinity and water-logging; (v) promotion of green agriculture; and (vi) increased resilience to climate change. These benefits will contribute to sustainable agricultural development and income generation for farmers. No project activities will be carried out in environmentally or socially sensitive areas. Without the implementation of mitigation measures, the potential environmental impacts of construction activities will be minor and temporary and localized, considering the vast area and small scale of the engineering works.
172 In identifying and assessing the potential environmental impacts during the operation phase, a review of World Bank’s comprehensive agriculture development projects in the PRC has been undertaken. The environmental analysis focused on the following issues: (i) water availability; (ii) irrigation water quality; (iii) lake eutrophication; (iv) dam and reservoir safety; (v) pollution prevention, public health and biodiversity protection; (vi) physical and cultural resources; (vii) involuntary resettlement and economic displacement; and (vii) indigenous peoples. It is concluded that with mitigation measures the residual impacts in respect to the above areas will be insignificant.
173 Seven environmental management plans (EMPs) – including one for the overall project and one each for the six project provinces – have been developed (Supplementary Appendix F). The EMPs include a detailed description of the potential environmental impacts and mitigation measures, environmental monitoring program, public consultation program, reporting and supervision, feedback and adjustment mechanism and institutional responsibilities. They are designed to fit into the PRC’s existing environmental management system.
174 The IEE contains several important recommendations. It is been recommended that the safety of all existing dams and reservoirs to be used for irrigation under the project be assessed. A time-bound action plan will be prepared for rehabilitating and strengthening any faulty dams and reservoirs. The safety assessment report and the time-bound action plan will be submitted to ADB for review and approval prior to project implementation. It is further recommended that the capacity building component includes a training of trainers program for county/city agricultural service centers who, after being trained, will offer training to local farmers. The training of trainers program and the farmers’ training program will cover the priority areas of project: water-saving irrigation, IPM, balanced fertilizer application and organic farming.
4.5 SOCIAL DIMENSIONS
4.5.1 POVERTY IMPACT AND SOCIAL DEVELOPMENT
175 The Project will improve the income and livelihood of local people in the project area. Currently, the economic development of most of the project provinces is less than the national average of China’s 31 provinces. Heilongjiang (rank 16), Jilin (22), Yunnan (24) and Ningxia (29) are on the lower ranks in terms of GDP (2009). Anhui (rank 14) and Henan (5) are above the average. 55 The Human Development Index (HDI) ranks Heilongjiang, Jilin and
55 GDP of 31 provinces in 2009. http://english.peopledaily.com.cn/90001/90778/98505/6903538.html 48
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011
Henan in the middle, and Ningxia, Anhui and Yunnan at the bottom. 56 Most of the selected counties are major grain producing areas. They are also comparatively poor. Of the 68 counties and 1 farm, 13 are included in the national plan for poverty reduction through development and 6 are included in the provincial level plan. The Project will improve the income and livelihood of about 1.23 million rural people in the project area, including about 210,300 ethnic minority people. The expected increase in per capita annual income is about CNY400 (Section 4.1). During field visits in Henan 57 it was estimated that the per capita net income of farmers in the project area will increase from CNY1,815 in 2008 by at least CNY300 after implementation of the project. It will also have an impact on encouraging the development of new industries such as greenhouse vegetables. Along with the improvement of irrigation infrastructure, institutional development will benefit poverty reduction and regional development A participation strategy has been designed, and consultation will be held with primary stakeholders to disclose information and to communicate project impacts, form or strengthen water user associations (WUAs), and prepare for implementation of operation and maintenance where WUAs will have primary responsibility for irrigation management. The Project will support capacity development for public consultation and participatory planning targeting PMOs and local communities in the subproject areas.
176 With completion and rehabilitation of the drainage systems, output and farmers’ income will be increased. Due to the deteriorated canal systems, drainage is difficult in some places, e.g. in the affected area of Anhui Province, this kind of problem has influenced crop output and farmers’ incomes. Salinity has appeared in some areas, e.g. in Ningxia, which has seriously influenced agricultural production. The Project will construct and improve the drainage system so that water in low-lying areas can be effectively discharged, which will increase grain yields by 10-15%.
177 The Project will assist local inhabitants with livelihood improvements on the basis of more efficient water use and water management. The infrastructure improvement makes it possible to upgrade the traditional agricultural chain and to develop new industries. Some land formerly used for planting rice and wheat can be diversified into growing vegetables in greenhouses. With the same amount of land area, the output of and income from greenhouse crops is several times higher than the output from traditional agriculture. It is thus an effective way of contributing to poverty reduction and improving farm income, but careful monitoring is required, particularly to avoid oversupply and a price slump.
178 The summary poverty reduction and social strategy is in Appendix 16.
4.5.2 GENDER EQUALITY AND WOMEN’S DEVELOPMENT
179 The majority of agricultural laborers in the project area are female and the overall quality of the irrigation and drainage infrastructure is relatively poor. With substandard infrastructure the women’s workload is higher than necessary. The project, by improving irrigation and drainage infrastructure, will reduce the work load particularly for women farmers, increase their incomes, and promote their development.
180 The Gender Action Plan (GAP) is developed to protect women’s right, interests, and participation while maximizing their contribution to the project. The proposed gender design features correspond to the three project components: (i) improved irrigation and drainage infrastructure; (ii) improved irrigated agriculture; and (iii) strengthened project management capacity by (i) encouraging the participation of women in the establishment and strengthening of WUAs, (ii) women’s participation in the establishment and strengthening of FAs and
56 Human Development Report China 2007/08. Access for All. Public Services for 1.3 Billion People, UNDP Beijing 2008, p.22. 57 January 2010 49
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 improved capacity through training, including training on pollution free and organic agriculture, and (iii) women’s economic empowerment (as part of strengthened project management). The project management will ensure that all project implementation units effectively implement and monitor gender-related activities and actions.
181 The project includes a special focus on the support of women, as feminization and graying of agriculture becomes increasingly common across China, especially in the central and western provinces. Because rural women are busy both with farming and household chores, they have no chance to learn new technologies necessary to reduce their heavy labor burden and to improve their livelihoods.
182 The proposed Rural Women’s Economic Empowerment grant subproject complements the project by pilot-testing different approaches and interventions to promote the economic empowerment of women in selected villages, for further scaling-up and incorporation in the Project components.
183 Three possible activities are suggested:
(i) Training needs will be identified through consultation and focus group discussion with local women. Training on agricultural skills, pollution free and organic agriculture marketing, alternative livelihoods, business skills, and gender awareness approaches are likely to be included. The training courses should be considered accordance with the female’s physical and psychological features. Training sites should be selected considering suitability and access for local women. Teachers with local knowledge, and know ethnic languages will be considered with priority.
(ii) To ensure sustainability of the subproject, it is vital to strengthen the capacity of ACWF from county level down to the village level so that they can carry out women’s empowerment activities. Training needs will be identified through consultation with members of ACWF. Courses are likely to include mobilization, organization, leadership skills and thematic skills related to community empowerment and gender issues. The training will be conducted in 6 counties in Anhui, Ningxia and Yunnan Provinces,58 which were selected based on the following criteria: (a) participating county in the Project; (b) county with high poverty incidence or high rate of ethnic minorities; (c) high male out-migration rate; (d) high enthusiasm of the county government; and (e) county with a high demonstration effect.
(iii) Introducing an innovative model of women’s empowerment – ACWF plus. Given the importance of women’s participation in the organization and decision-making of WUAs and FAs as part of an effective and sustainable implementation of the CAD project, it is proposed to establish a new model of collaboration between the local ACWF and FAs and WUAs. This would provide an innovative, flexible and gender-sensitive approach for sharing specialized training and information, including market information, production and marketing activities. Such an ACWF plus model could also include a blending with rural grass-root women’s organization that have been established in recent years but are often scattered and not very powerful. Such a model could contribute to women’s empowerment as well as to community empowerment and strengthen the bargaining power at the local level.
184 Details of the GAP are set out in Appendix 17; and details of the Rural Women’s Economic Empowerment grant in Appendix 18.
58 These are Linquan County and Funan County in Anhui Province, Helan County and Qingtongxia City in Ningxia Hui AR, and Eryuan County and Yulong County in Yunnan Province. 50
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4.6 RESETTLEMENT
185 Identification of Resettlement Impacts . Possible resettlement impacts in subprojects have been screened based on permanent farmland acquisition, temporary farmland occupation, demolition of all types of assets such as houses, trees, tombs and facilities etc. (numbers and types), and distribution of farmland use rights although ownership is not changed in most of the subprojects that include resettlement impacts. The PPMOs, together with CPMOs, clarified the impacts and resettlement activities in each county. The results of the resettlement impact assessment (Appendix 19, Annex A19.1) indicate that: (i) the impacts of land requisition and house demolition are generally not significantly adverse; (ii) most subprojects will not need any permanent farmland acquisition; (iii) there are very few stables and other assets to be demolished; and (iv) in a few counties there will be some temporary farmland occupation.
186 The main reasons why the resettlement impacts are not significantly adverse are:
(i) During the design of the project and selection of the subprojects, land acquisition and house demolition have been considered and avoided as much as possible. For example, in Yulong County, Yunnan Province, two reservoirs were dropped from the subproject despite the fact that they had not much permanent farmland acquisition. (ii) Most irrigation canal improvement projects include upgrading to concrete-lined canals from soil canals to improve their quality and save water. The structures will normally be located on existing canals or use existing rights-of-way for construction. (iii) Most roads located in farmlands will improve the road surface from the soil to concrete. Even if there are some changes in road alignment or widening, they do not change the farmland ownership title. This does not have any impact on farmland acquisition and may only result in minor redistribution of village farmland. (iv) Other subprojects mostly use existing land for the developments, and land ownership titles are not changed. (v) Though there is some temporary farmland acquisition, the impacts will be small and of short duration, typically 2-3 months.
187 Resettlement Framework . The Consultant has collected all relevant national- and provincial-level laws and legal documents, regulations and policy documents., A Resettlement Framework has been prepared based on the Chinese and ADB’s resettlement policies (Appendix 19), and will guide resettlement activities during project implementation.
188 Resettlement Planning . The resettlement plans (RPs) for two selected typical counties – Linquan County in Anhui Province and Zhaoyang County in Yunnan Province – have been prepared (Supplementary Appendix H). The RPs were prepared by the Consultant together with the involved CPMOs through field survey, interviews and consultation with project- affected people and communities, and discussion with local government officials.
189 The PMO has confirmed that ADB’s resettlement policies will be followed. During the project implementation stage, the PPMOs and CPMOs will again identify the resettlement impacts. If resettlement impacts are identified due to changes in the project design, RPs will be prepared according to the Resettlement Framework and will be based on ADB's Safeguard Policy Statement of 2009 and its annexes.
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4.7 ETHNIC MINORITIES
190 In the project areas, besides Yunnan Province and Ningxia AR, there is only a small ethnic minority population by marriage or employment. Five counties in Yunnan Province and three in Ningxia AR have been investigated by the Consultant. The ethnic minority of Ningxia AR is mainly Hui, while there are several ethnic minority populations in Yunnan. 50.4% of the beneficiaries in the project areas in Yunnan and 29.3% of the beneficiaries in Ningxia AR are ethnic minority population. The ethnic minority population in Ningxia project areas is relatively low due to the fact that similar CAD projects have been completed earlier in areas of Ningxia more densely populated by ethnic minorities.
191 Yunnan Province. Yunnan is a multi-national borderland province with numerous nationalities. Ethnic minorities are scattered over vast areas of Yunnan although some live in concentrated communities. The project counties where the socioeconomic survey was undertaken were Eryuan, Heqing, Yaoan, Yiliang and Yulong. The ethnic minorities in these counties are predominantly Bai, Naxi, Yi and Hui.
192 Ningxia Hui Autonomous Region . Ningxia AR is located in the northwest of China, in the upper and middle reaches of the Yellow River. It is the only Hui Autonomous Region at provincial level. The Hui of Ningxia AR account for 33% of the total population in the province and for 20% of the national Hui population. The project counties where the socioeconomic survey was undertaken were Helan County, Litong District of Wuzhong City and Qingtongxia City.
193 Improvement of agricultural infrastructure will contribute to reduced production costs and increased financial returns. Currently, most of the irrigation facilities were completed before the household contract responsibility system. With the completion and rehabilitation of irrigation systems, output and farmers’ incomes in the ethnic minority areas will be increased. Furthermore improvement of the drainage systems will reduce the problems of salinity resulting in higher and more stable yields. The rehabilitation of irrigation systems might also contribute to more harmonious social relations. In Qingtongxia County, for example, the establishment and improvement of the irrigation and drainage system such as ditch, canal, and floodgate will probably reduce the conflicts over water supply. Currently people have to wait at the water intake day and night. This gives rise to interpersonal arguments and conflicts, which in the past have resulted in fights with weapons for dividing water. Building and improving the irrigation and drainage system as well as improving the corresponding institutions, such as setting up WUAs, will save rural laborers’ time and energy, and will avoid or at least reduce the possibility of social conflicts caused by water problems.
194 Based on the analysis of the condition of ethnic minority people, views of relevant government agencies, and the expressed aspirations of ethnic minority people themselves, the Project will follow a proactive approach to ensure ethnic minority peoples' full participation in decision-making, implementation, and receiving benefits from the subprojects. Ethnic minority people will use domestic and agricultural water, take part in irrigation operation and maintenance, participate in soil and water conservation, and have opportunities for employment (for women and men) during project implementation. For ethnic minorities affected by land acquisition and resettlement, specific attention will be given to vulnerable people, if any, with special measures provided where necessary. These will be addressed in the resettlement plans.
195 The Ethnic Minorities Development Framework is in Appendix 20 and detailed EMDPs for 2 selected counties are in Supplementary Appendix I.
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4.8 RISKS AND MITIGATING MEASURES
196 The project has potential implementation, institutional, environmental, governance, and policy risks. In general the project design has provided adequate measures for mitigating these risks, particularly in the areas of environment, resettlement, and other social issues where subproject selection has minimized the likely impacts. However, it is recognized that there are significant risks associated with the sustainability of the project in terms of the operation and maintenance of the irrigation infrastructure, the sustainability of the soil improvement activities that will only be supported for one year, and the sustainability of FAs and farm machinery service providers. The project has placed a special emphasis on the development of sustainable WUAs and FAs through provision of a CDTA focused in these areas and will support farmer training to mitigate risks associated with project sustainability and adoption of agricultural technologies. However, it is suggested that the loan should contain adequate assurances to strengthen risk mitigation. Risks and mitigating measures are summarized in Appendix 21.
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5 OUTSTANDING ISSUES AND PROPOSED ASSURANCES
5.1 OUTSTANDING ISSUES
197 The main outstanding issues at the final report stage relate to the possible impacts of the delays in preparation of the domestic feasibility studies, in particular the revised costs and scope of work that were raised during the final review mission, and the reliability of the crop- yield data.59
198 Completion of the necessary analysis and production of the draft final/final report from the earlier interim report involved a continuing cyclical process of data checking, reference back to the government, checking with the provinces, and subsequent updating of the data set to ensure feasibility in what is reported and consistency between the domestic and the Consultant’s data sets. The Consultant fully appreciates the commitment that has been made by the government to answering the many questions and to assuring the accuracy of the data set. However, it remains likely that there will more errors and inconsistencies identified when the domestic feasibility studies are prepared and adjustments will be required to the Consultant’s report to ensure that ADB loan processing is also consistent. At the time of preparing this version of the final report no new data were available for updating the report.
199 The second issue relates to the accuracy and consistency of the without- and with-project crop yields used in the financial and economic analysis. Crop yields for the main grain crops 60 are detailed in Supplementary Appendix A (Chapter 5) and definitions of low- medium- and high-yielding land are also in Supplementary Appendix A (Chapter 2). Given the dominance of low- and medium- yielding land in the project area (Appendix 6), average crop yields without-project are expected to be less than both the average yields for medium-yielding land and the average yields for the province/prefecture. Similarly, with-project yields are expected reflect the changes in the areas of the different land types. Given the increased in the area of medium- and high-yielding land they will likely be both higher than the provincial/prefecture average, and above the average for medium-yielding land. However, the average with-project yield is unlikely to be above the upper limit for medium-yielding land. Analysis of the without- and with-project yield data (Supplementary Appendix E) indicates that the yields proposed for many of the subproject areas are likely above what is currently being achieved, or can be achieved with the project. However, the incremental gains may be plausible so that the financial and economic analysis remains consistent. These data have been agreed to be checked at the provincial and lower levels and adjusted as required.
200 The final issue that should be addressed relates to observations that were made by the Consultant during field visits and suggestions, as requested by the interim review mission, of areas that could be developed in the domestic feasibility studies. These are detailed by province.
201 Anhui Province. Interviews with officials in project areas and provincial leaders indicate significant concerns with crop straw residues management. Straw processing equipment and post-harvest processing training will help. As the nation’s paper industry is modernized and environmental sanctions are instituted, the option of using straw for paper production faces reduced demand. There is no single solution. Rather diverse uses should be
59 Updated data were scheduled for delivery at the end of August, but have been delayed. This has resulted in a delay in the preparation of the domestic feasibility studies. This issue will be reviewed when updated data are available. 60 National and Provincial Statistical Yearbooks, various years. 54
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 examined, such as a medium for edible fungi, a substitute packaging material as environmental concerns limit the use of petrochemical-derived “Styrofoam”, a livestock feed, and as a source of organic material for soil improvement.
202 Many local officials are unsure how to effectively use crop straw residue especially wheat straw which, without treatment with urea or ammonia, is a poor feedstuff, and without proper processing can actually reduce crop yields when left in excess on the fields. This is a complicated issue in part related to Anhui’s fast rise as a major grain-producing area as well as being an area where household livestock have focused on swine, fowl, and water buffalo. Crop residues such as wheat and rice straw can be important as a maintenance feed for ruminants so some of the surplus could be effectively used to meet growing demand for beef, mutton, lamb and dairy products. Currently crop residues are often used as is, with no treatment to improve intake and digestibility. The effectiveness of wheat and rice straw as feedstuffs can also be increased significantly with the addition of molasses, salt, bone meal and other additives. However, when used alone, these by-products are of very low feeding value with poor metabolizable energy, negligible available protein, and are seriously deficient in mineral and vitamins. On the other hand, crop residues vary greatly in chemical composition and digestibility depending on varietal differences and agronomic practices, so that varietal selection is an important consideration if by-products are to be used more profitably. Similarly options are also available for introduction or development of short straw varieties of wheat or rice Feed value and intake of rice and wheat straw can also be greatly improved through treatment and supplementation with protein and energy-rich feeds. It may be that a shift to larger scale feedlot operations for beef and dairy cattle will help. Further, in addition to additives, the utilization of these crop residues as ruminant feedstuffs may be enhanced through the use of forage legumes and protein/energy-rich industrial by-products as local opportunities arise.
203 Regarding their use as soil additives, studies in the USA indicate that improved management of crop residues is possible without any adverse effect on the subsequent crop yield when incorporated with adequate levels of N and P fertilizers so that the balanced fertilizer programs and related farmer training in project areas will have synergistic effects on the successful utilization of the crop residues.
204 The proposal for Anhui devotes significant resources to sub-soiling or deep plowing, long common in most major agricultural nations. This is appropriate but the range of equipment for such soil improvement has expanded rapidly in recent years. Care should be taken to select appropriate equipment for local conditions to obtain the best results while also minimizing fuel costs and maximizing the use of funds. This is especially true with the growing popularity of minimum tillage where para-tilling implements have seen significant technical improvements in the last decade.
205 Heilongjiang Province. Given Heilongjiang’s climate and low population density, expenditure for greater mechanization and technical training for new cultivation methods that effectively optimize the growing season is most reasonable. Within the budget for mechanized equipment, it is not clear what other additional equipment will be purchased, but the PPTA team strongly encourages the promotion of post-harvest grain processing equipment and technical training for post-harvest grain processing as well. Post-harvest grain losses due to poor facilities and poor grain handling have historically been quite significant in the province.
206 Henan Province. As one of China’s most important grain production centers, project areas will continue to produce major grains using traditional double cropping systems. The CAD approach is well recognized to be effective among provincial planners and this is reflected in the proposal. Efforts to promote further field leveling, balanced fertilization, and crop straw mulching will be accelerated by project extension efforts and funding. There is no reason that all of these efforts should also not be brought to bear on increased area devoted to 55
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 organic grain production. National surveys place food safety high in priority among urban consumers and the demand for organically grown wheat is increasing rapidly. Organic and “safe food” (minimum pesticide) demonstration areas are not included in the proposal despite the fact that the province’s recently improved transportation system are bringing the urban markets of eastern China closer than ever. Project managers should consider these options.
207 Historically crop production areas along the Yellow River in Henan Province have been prone to salinity. Whilst the Government has successfully combated this phenomenon by reducing rice production and leaching, the risk still persists. It is therefore recommended that a groundwater monitoring program be initiated in the project area in order to ensure that increased salinity is prevented.
208 Jilin Province. The level of development of Jilin’s eco-agricultural region program is among the highest in the nation. This program will benefit from significant expansion of both IPM and certified “safe” agricultural cropland that limits farm chemical applications within project areas. Jilin has been a leader in “green food” production including organic grain and large allocations of funds for farmer training will expand this provincial goal. The next step will be to diversify product mix and establish both vertical and horizontal linkages with major domestic and international food markets, possibly including industry lead retailers. This will require collaboration between local firms, wholesales (including TVEs) and government extension agents.
209 Ningxia Hui A.R. The financial benefits of growing rice, given low water prices, are clear. While rice production will aid in reducing salinity in the short-run due to the benefits of leaching out salts with large amounts of water, long term production will increase soil salinity as a result of importation of salts in irrigation water (dissolved solids in Yellow River irrigation water is 400 mg/l) to the area and high evapotranspiration rates.. The long-term strategy should therefore be to promote crops with lower water requirements and higher market value such as vegetables and other organic “green food” crops, or where this is not possible or acceptable to farmers, to encourage judicious use of irrigation water for crop production through introducing effective grain crop irrigation management practices such as shallow-ponding for rice. Even so, salinity will remain a risk in Ningxia and a continuous monitoring program is recommended to be established on both water-use efficiency by crop under different irrigation regimes and salinity measurements of groundwater and inflow and drainage water.
210 Arid environments such as those in the project areas in Ningxia have repeatedly been found, around the world, to be locations where IPM is more effective. It is possible that the growing dairy industry could provide synergies for low-cost IPM promotion such as an increase in alfalfa cultivation rather than rice for the above-mentioned reasons. Alfalfa has several attributes which make it excellent for application of IPM. Cows tend to be tolerant of insect damage and/or insect parts in their diet so there is no reason not to establish realistic economic thresholds. Moreover, alfalfa is for the most part, quite tolerant of moderate pest densities. This permits greater reliance on alternative control methods. Because the crop is semi-permanent, and supports a diverse arthropod fauna, biological control has considerable potential. Other crops with potential include the high-value production of “seed potatoes” as the arid conditions-beyond irrigation limit the effects of many pests, and fungal diseases that attack potatoes but are far more prevalent in more humid regions. Seed potatoes are simply an example. There are many more possibilities that would require the support of extension classes and technical innovations already supported by the project. The more general suggestion is to seek out alternative non-traditional substitutes for rice that will allow similar returns and take advantage of the arid, irrigated, agro-environment.
211 Yunnan Province. The programs related to improved irrigated agriculture in Yunnan are intended to raise productivity on a fixed set of grain and economic crops. There is the 56
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 potential for some local varieties of minor grain crops such as buckwheat or millet to get “lost” in the process. Declining genetic diversity in grain crops due to adoption of improved varieties is a global problem. In the process of the program, it would be expedient to work with the Yunnan Botanical Institute and Yunnan Agricultural University to collect viable seed for grains and other crops under-represented in the improved seed portion of the project within project areas to protect this important resource.
212 Yunnan’s long growing season is amenable to double cropping even in the highland areas of the northern part of the province. Cropping intensity can be increased once the water shortages from January to April are alleviated though improvements to irrigation systems in the project areas. Local expertise in multiple cropping systems should not be ignored. Farmer’s in southwest China have developed many innovative cropping systems that combine grain crops with legumes and economic crops. These mixed cropping systems may raise farm revenues above those possible from double-cropped grain systems, while still meeting the government goals of raising overall grain production through higher yields due to land improvement. This is a clear case where local expertise should not be overlooked.
213 Yunnan Province will be one of the main provinces to suffer as a result of climate change which will cause irregular flow in river channels and streams depending upon glacial melt. The construction of small barrages and irrigation reservoirs will serve as a means to adapt to the potential impact of climate change in the project area.
5.2 PROPOSED ASSURANCES
214 In addition to the standard assurances it is proposed that the following specific assurances be incorporated into the legal documents:
(i) Counterpart financing . Provincial and local governments will ensure that (a) the counterpart financing necessary for the project is provided in time to enable timely completion of the project (b) beneficiary contributions in cash and kind are provided in a timely manner and, if not, will be provided by the governments, and (c) additional counterpart funding will be provided for any shortfall of funds or cost overruns.
(ii) WUA formation and strengthening . WUAs will be established or strengthened before rehabilitation or construction of the irrigation system begins for all surface water irrigation schemes where more than 50 farmer households are involved.
(iii) WUA federations . The recommendations of the CDTA will be carefully reviewed particularly with reference to the role and scope of WUA federations, which will be initiated where applicable to allow equitable distribution of water, and avoid conflicts, between irrigation districts sharing the same lateral canal.
(iv) Project sustainability. The PMO will ensure that the PPMOs and CPMOs promote project sustainability particularly with respect to the WUAs, FAs and farm machinery service providers by ensuring that (a) these organizations prepare and implement a management plan aimed at improving cost recovery for services provided; (b) WUAs charge farmers a fee that covers water charges made by the water bureaus as well as the cost of maintenance of the lower-level systems; and (c) FAs and other farm machinery service suppliers are cognizant of the future need to replace their machinery pool. At the same time the PPMOs and CPMOs will ensure that the WUAs and FAs take due regard of farmers’ capacity and willingness to pay such increased service fees.
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(v) Project performance monitoring. The PMO will ensure that the PPMOs and CPMOs monitor and evaluate project outcome and outputs through the PPMS to ensure that project facilities are constructed and managed efficiently and the use of other project investments is optimized so as to ensure that economic and social benefits are maximized. The PPMO and CPMOs will (a) collect the necessary information, including data disaggregated by gender and ethnic group wherever possible, on project performance before project implementation, at completion of the project, and/or 3 years thereafter; and (b) submit the reports to the PMO. The PMO will be responsible for collating the reports of all of the PPMOs and summarizing the key findings prior to submission to ADB. Specific attention will be given to groundwater monitoring including of water table depth and salinity in Ningxia AR and Henan Province and monitoring of salinity of intake and drainage water in Ningxia AR.
(vi) Resettlement. The PMO, through the PPMOs and CPMOs, will ensure that (a) additional resettlement Plans are prepared for all subprojects with resettlement requirements in accordance with the Resettlement Plan Framework and the example resettlement plans prepared during project preparation; (b) all resettlement plans are approved by the PMO and forwarded to ADB prior to the start-up of work on the subproject; (c) all land and rights-of-way required by the project are made available in a timely manner; (d) the provisions of the resettlement plans, including compensation and entitlements for affected persons, are implemented in accordance with all the borrower’s applicable laws and regulations, and ADB's Safeguard Policy Statement (2009); (d) compensation and resettlement assistance is given to the affected persons prior to dispossession and displacement; (e) the timely provision of counterpart funds is made for land acquisition and resettlement activities; (f) any obligations in excess of the resettlement plan budget estimates are met; and (g) the affected persons are at least as well off as they would have been in the absence of the project. The PPMO and CPMOs will (a) ensure that civil works contractor specifications include requirements to comply with the resettlement plans and entitlements for permanent and temporary impacts to affected persons, and supervise the contractors to ensure compliance with requirements of the resettlement plans; (b) ensure that adequate staff and resources are committed to supervising and internally monitoring implementation of the resettlement plans and providing ADB with key information in the progress reports during resettlement implementation and in the resettlement completion report; and (c) contract an independent institute acceptable to ADB to carry out monitoring and evaluation and to forward reports to ADB as specified in the resettlement plans.
(vii) Ethnic minority development. The PPMO and CPMOs will ensure that (a) additional EMDPs are prepared for all subprojects with a significant ethnic minority population in accordance with the Ethnic Minorities Development Framework and the example EMDPs prepared during project preparation (b) all EMDPs are implemented in accordance with their terms, (c) targeted ethnic minorities benefit from the project at least equitably and in accordance with ADB's Safeguard Policy Statement (2009), and (d) civil works contractor specifications include requirements to comply with the EMDPs and provide employment to ethnic minority people with priority. The PPMOs and CPMOs will ensure that (a) adequate staff and resources are committed to supervising and monitoring implementation of the EMDPs and reporting progress to ADB; (b) an independent agency acceptable to ADB is engaged to monitor and evaluate progress annually and to forward reports to ADB annually until project completion; and (c) monitoring reports include data disaggregated by ethnic group and gender, and assessment of gender impacts. 58
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(viii) Gender and development. The PMO, PPMOs and CPMOs will follow ADB's Policy on Gender and Development (1998) during project implementation and take necessary steps to encourage women living in the project area to participate in planning, construction, and operation of the project, including O&M of the constructed infrastructure. The PPMOs and CPMOs will ensure that gender enhancement measures as set out in the EMDPs and presented in the GAP and GDCF subproject will be implemented, and that at women will represent at least 50% of the members and committee members of WUAs and FAs. The PPMO and CPMOs will monitor the effects of the project on women during project implementation. Gender-sensitive indicators will be included in the project M&E system, especially in areas such as access to technical advice and training, employment and income, and women’s representation in decision making. The CPMO will periodically monitor the indicators, and female representatives in the village will participate the M&E annually.
(ix) Labor standards. The PMO, through the PPMOs and CPMOs, will ensure that the construction contractors (a) provide timely payment of wages and safe working conditions to all workers; (b) provide women’s employment, where appropriate, and pay equal wages to female and male employees for equivalent labor; (c) give special consideration to hire ethnic minority people in areas where there are a significant number of ethnic minorities, as well as to women and other disadvantaged and vulnerable persons; and (d) not employ child labor as required by the relevant laws and regulations of the borrower.
(x) Environmental safeguards. The PMO, through the PPMOs and CPMOs, will ensure that the implementation procedures agreed with ADB are followed. The PPMO and CPMOs will ensure that civil works contractor specifications include (a) provisions relating to the environment, including obligating contractors to carry out the mitigating and monitoring measures; and (b) requirements for contractors to estimate costs for all such mitigating and monitoring measures. The PPMOs and CPMOs will cause the WUAs to operate, maintain, and monitor all project facilities in strict conformity with (a) all applicable laws and regulations, including national and local regulations and standards for environmental protection, health, labor, and occupational safety; (b) ADB's Safeguard Policy Statement (2009); and (c) the environmental impact mitigating and monitoring measures detailed in the applicable government reports.
(xi) Grievances. The PMO, through the PPMOs and CPMOs, will ensure that complaints and problem management mechanisms and procedures are established and functioning effectively to (a) review and document complaints of project stakeholders; (b) proactively address grievances; (c) provide the stakeholders with notice of the chosen mechanism, action, and/or decision; and (d) prepare periodic reports to summarize the final outcomes and make these available to ADB upon request. Eligible complaints include those related to the project, any of the service providers, or any person responsible for carrying out the project.
215 These proposed assurances will be reviewed during loan processing and modified as agreed prior to incorporation in the project documents.
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APPENDIXES
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Appendix 1 Draft Design and Monitoring Framework
Design Summary Performance Indicators Monitoring Assumptions and Targets Mechanisms And Risks Impact Assumptions • • • Enhanced food security and increased rural Grain output from County, provincial • Government continues incomes project areas in surplus and national to support CAD provinces increased economic and program. from 500,700 t in 2009 poverty records • Provincial, city and to 662,700 t in 2020 and annual county Governments and in marginal statistics maintain commitment provinces from 162,300 to CAD program and t to 211,300 t over support for promoting same period. sustainability of • Average per capita investments. income increased by • Farmers have access 11% from CNY3,614 in to improved irrigation 2010 to CNY4,012 in and agricultural 2020 in constant 2010 technologies, and values. marketing channels
Risks • Drought and excessive climate variation Outcome Assumptions • • • • Increased agricultural productivity in the Land quality improved County, provincial Availability and project area from 45,156 ha of low-, and national timeliness of 50,034 ha of medium-, economic and counterpart funds from and 3,160 ha of poverty records provinces, cities and high-yielding land to and annual counties. 9,085 ha of medium-, statistics • Willingness of farmers and 88,545 ha of high- • WRB statistics to participate and yielding land. • Project provide contributions • Grain crop yields performance • Crop production is increased by 27% from monitoring and economically viable 5.74 t/ha to 7.31 t/ha, reports by PMO and competitive both cash crop yields • Project nationally and (excluding vegetables) Completion internationally by 25% from 2.34 t/ha Report • Water tariffs are to 2.93 t/ha, and sufficient to encourage vegetables by 35% water saving
from 25.2 t/ha to 32.0 Risks t/ha. • Inadequate • Cropping intensity maintenance of increased from 137% irrigation systems due to 147%. to lack of funds • Overall water use
efficiency increased from 50% to 60%: for surface water systems from 40% to 45% and for groundwater (tubewell) systems from 60% to 75%.
Outputs Assumptions
1. Improved Irrigation and Drainage By the end of project • Project progress • Male and female Infrastructure implementation (mid 2016): reports farmers participate in • Surface water irrigation • County and design, construction systems in 49 cities/ provincial WRB and management of counties upgraded/ records irrigation & drainage completed on 56,588 ha • County and infrastructure to increase irrigated area provincial annual • WUAs and FGs for by 8,650 ha (18%). statistics groups management of • Tubewell (groundwater) • WUA M&E surface water and irrigation systems in 32 records tubewells systems
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Design Summary Performance Indicators Monitoring Assumptions and Targets Mechanisms And Risks cities/counties • ADB review function properly developed/ improved on missions • Timely and equitable 41,183 ha to increase distribution of water irrigated area by 29,979 ha (268%). Risks • Water saving technology • Management gap introduced on 74,495 ha. between WUAs and • 97 WUAs formed/ irrigation bureaus strengthened with at • Inadequate financial least 50% women incentive to maintain members and committee irrigation canals members • 9 pilot solar-powered irrigation systems developed and operating in Ningxia AR.
2. Improved Irrigated Agriculture By the end of project • Project progress Assumptions implementation (mid 2016): reports • Farmers are receptive • Soil improvement • County and to improved implemented on 67,138 provincial annual technologies and ha including 16,769 ha of statistics farmer organizations land leveling, 24,713 ha • FA records and • Local extension of deep plowing and reports services have capacity 28,162 ha of balance • ADB review to provide required fertilizer application. missions services • 1,044 km of major roads and 822 km of working Risks roads improved • Increased cropping • Improved agricultural intensity & yields practices adopted increases stress on including quality seed soils and reduces soil coverage increased from fertility 93% to 98%, mechan- • Reduced crop diversity ized farming from 75% to increases pest and 83%, & IPM demon- disease problems strated on 9,725 ha. • Increased soil • Reduced land compaction due to degradation through larger-scale farm increased shelterbelts equipment and environmental • Improved seed protection forests of varieties require better 2,855 ha, straw crop & water processing promoted on management 38,400 ha & salinity decreased on 2,000 ha in Ningxia AR. • Farmer capacity improved through establishment/ strengthening of 66 FAs, with at least 50% female participation as members and on management committees, and provision of 16,904 pm of training, with at least 60% female participation. • Agricultural demon- strations completed covering 201 ha of greenhouses, 15,088 ha of pollution-free agriculture, and 2,345 ha of green agriculture with
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Design Summary Performance Indicators Monitoring Assumptions and Targets Mechanisms And Risks at least 60% of demonstrations benefiting women and poor farmers.
3. Improved Project Management By the end of project • Project progress Assumptions implementation (mid 2016): reports • Provinces and cities/ • 6 provincial and 69 • CDTA Completion counties retain CAD city/county CAD offices Report staff at required levels upgraded by provision of • GDCF TA following training staff training (3,263 pm Completion • CAD offices are domestic &1,665 pm Report supportive of women’s international) and study • ADB review development tours (1,665 domestic & missions 201 pm international) with specific emphasis on female employees, 1,530 sets of office and management equipment and 87 project management vehicles. Staff training will include capacity development regarding gender awareness and the GAP. • 3 provincial and 6 county/village ACWF offices upgraded by provision of staff training on leadership and thematic skills related to community empower- ment and gender issues financed by a grant- funded subcomponent • CAD integrated management system established in Heilongjiang and Ningxia CAD offices. Activities with Milestones Inputs 1. Improved Irrigation and Drainage Infrastructure ADB: $200.0 million 1.1. Upgrade and complete surface water irrigation systems in 49 city/county-level subprojects by late 2015. Item Amount ($ million) 1.2. Upgrade and complete tubewell (groundwater) irrigation systems in 32 city/ Civil works 138.0 county-level subprojects by late 2015. Equipment 48.9 1.3. Implement water-saving innovations on 74,495 ha between mid-2011 and mid- 2016. Training and study tours 12.0 1.4. Support capacity building for 95 new and WUAs by mid-2016. WUA and FA grants 1.1 1.5. Include at least 50% female farmers in the formation and strengthening of new and existing WUAs both as members and management committee by mid-2016. Government: $10.2 million 1.6. Implement 9 solar irrigation pilots by mid-2016. Item Amount 1.7. Complete and implement resettlement plans, including land acquisition and ($ million) resettlement during 2011-2014. Interest during 10.2 construction and 2. Improved Irrigated Agriculture commitment charges
2.1. Implement subsidized soil improvement program on 67,138 ha of land, including 16,769 ha of land leveling, 24,713 ha of deep plowing, and 28,162 ha of Provincial & local balanced fertilizer application programs by mid- 2016. Governments: $85.0 million 63
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Design Summary Performance Indicators Monitoring Assumptions and Targets Mechanisms And Risks Item Amount 2.2. Construct and improve 1,866 km of major/working roads by mid-2016. ($ million) Civil works 40.1 2.3. Implement improved agricultural practices including 7,510 m 2 of quality seed storage 2 warehouses, 56,400m of seed drying and packaging area, and demonstration of 9,725 ha Research and 22.4 of IPM by mid-2016. monitoring
2.4. Plant 2,855 ha of farm shelterbelts and economic forests, promote straw Contingencies 22.6 processing on 34,800 ha and improve salinity on 2,000 ha by mid- 2016.
Beneficiaries: $23.5 million 2.5. Establish/strengthen 66 FAs including training of farmer members by mid-2016.
Item Amount 2.6. Include at least 50% female farmers in established/strengthened FAs both as ($ million) members and management committee by mid-2016. Civil works 21.4
2.7. Train farmers, with at least 50% female farmer participation, in improved irrigated Contingencies 2.1 agriculture by mid-2016.
2.8. Undertake demonstrations of modern agricultural production including CDTA (Grant): $0.80 million greenhouse demonstrations (201 ha), pollution-free agriculture (15,088 ha) and green/organic agriculture (2,345 ha), with at least 50% female ownership of GDCF (Grant): $0.30 million demonstrations, by mid-2016
2.9. Implement EMDPs, GAP and related measures from mid-2011 to mid-2016.
3. Improved Project Management
3.1. Provide domestic and international training and study tours for PPMOs and CPMOs during 2011 – 2016.
3.2. Provide first set of office equipment to PPMOs and CPMOs by late 2012 and additional sets up to late 2015.
3.3. Include gender awareness as part of capacity development for PPMOs and CPMOs during 2011 – 2016.
3.4. Develop project management information system by mid-2012.
3.5. Develop integrated information management system by end 2012 and operational through 2016
3.6. Implement GDCF grant from mid-2011 to mid-2013.
3.7. Implement CDTA between mid-2011 and end 2013
3.8. Conduct regular M&E activities, including gender sensitive M&E indicators, during 2011-2016,
ADB = Asian Development Bank, CAD = comprehensive agricultural development, CDTA = Capacity Development Technical Assistance, CPMO = County Project Management Office, EMDP = ethnic minority development plans, EMP = environment management plan, EPB = Environment Protection Bureau, FA = farmer association, FSR = feasibility study report, GDCF = Gender Development and Cooperation Fund, ha = hectare, IPM = integrated pest management, km = kilometer, m3 = cubic meter, M&E = monitoring and evaluation, O&M = Operation and Maintenance, p.a. = per annum, pm = person-month, PMO = project management office, PPMO = Provincial Project Management Office, PRC = People's Republic of China, RP = resettlement plan, WRB = water resources bureau, WUA = Water Users Association. Source: Consultant’s estimates
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Appendix 2 Sector Analysis and Policy Framework
A2.1 Background
1. National grain production peaked at 508 million t in 1999 before declining to 430 million t in 2003 and then steadily recovering to reach 528 million t in 2008. Although the vagaries of climate have played a part in grain production in recent years, other more fundamental constraints exist, especially with regard to land and water. Farm land is being lost annually to urban development and desertification, and increasing water resource scarcity is becoming a severe constraint, especially in the relatively dry north. Water scarcity, especially in the North China Plain, threatens both rural income growth and food security. Overall, China is relatively water-deficit, ranking in the bottom 25% of countries in the world in terms of average annual water runoff per capita, with about 70% of precipitation received from June to October. In the North China Plain water resources are less than one-third of China’s average with increasing water pollution exacerbating the problem. Groundwater levels are falling over wide areas, sometimes by as much as a meter per year. In other areas water demand is high and growing. Available water resources are already fully allocated and overexploited,
2. To ensure food security and safety, grain production needs to keep pace with demand. The agricultural sector must undergo substantial structural change and modernization to become more market-oriented and competitive. Farmers have to improve agricultural practices to produce safe and high-quality products, adopt more high-value crops including organic products, and receive a larger share of output market value. Water resources must be used much more efficiently and agricultural pollution curtailed.
3. These issues are high on the Government’s priority list. Raising productivity levels, domestic self-sufficiency, reform of food safety control and international competitiveness in the global market are central themes in China’s Eleventh Five Year Plan (FYP). 1 Reform of the agricultural sector is critical to achieving these strategic national objectives, in particular for ensuring food security and safety, and raising farm incomes. However the agricultural sector faces serious constraints.
4. To ensure food security and improve farmer incomes, agricultural production, product quality, safety standards and market values must be raised. At the same time, the production efficiency and competitive capability of farmers must be enhanced to meet market-demand requirements and international competition. This will require investments to modernize agricultural production through (i) more and better agricultural support services, (ii) increased crop diversification to higher-value crops, (ii) adoption of better quality and higher-value varieties, (iii) higher production and efficiency, and (iv) better techniques for environmental management and protection such as forestation, integrated pest management (IPM) and production of non-polluting/green food with reduced chemical and pesticide applications. Agricultural technology, market information and access can be improved with the establishment of improved Farmer Associations (FAs).
A2.2 Comprehensive Agricultural Development
5. CAD was developed and introduced in 1988 in response to specific conditions facing PRC’s agricultural sector in the 1980s. First, population and arable land loss were increasing, threatening the nation’s food security and forcing the PRC to spend foreign exchange for food grain and feedstuffs. Second, agricultural production capacity remained weak in many parts of the country, in part due to an excessive amount of low yielding farm land vis-à-vis total
1 State Council, 2005. Eleventh Five Year Plan for National Economic and Social Development (2006-2010) 65
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 arable land. Local governments lacked the tools to reverse the trend. Low-yielding crop land accounted for more than 1 billion mu of a total land area of less than 2 billion mu. At the same time, disaster-affected crop land accounted annually for about 20% of total sown area. Further, a high proportion of arable land was degraded, and soil erosion was unchecked in many areas; agricultural technology and farm extension services and outreach lagged behind similar factors in other sectors; grain production varied greatly from year to year, complicating planning and the shift to “free market” prices; and agricultural infrastructure was aging, often of low quality, and farmers had little incentive and less capacity for effecting changes.
6. From 1998 to 2007, the total funding of the Comprehensive Agriculture Development (CAD) program was CNY320.3 billion. About 30 million farmers have directly benefited from CAD programs, and 22 million have indirectly benefitted from CAD-supported agriculture industrialization projects resulting in a mean increase in per capita income of about CNY500 per year. Specific tasks for CAD programs include (i) converting low-yielding fields to high- yielding fields; (ii) improving irrigation systems and introduction of water-saving technology; (iii) improving agricultural production capacity, especially grain production capacity within the main producing areas; (iv) promoting regional agricultural comparative advantage in crop selection and post-harvest processing; (v) promoting agricultural and rural economic restructuring; (vi) improving the organization level of farmers; (vii) reducing soil erosion and water loss; (viii) improving the agricultural ecological environment and promoting sustainable agricultural development; (ix) promoting agricultural Industrialization, including infrastructure construction of agricultural products storage and transportation, preservation, processing and wholesale markets; and (x) supporting agricultural science and technology demonstration and extension, including technology demonstration and technology promotion.
7. At its inception in 1988 there were 495 counties and 251 farms included in the CAD program. While some counties and farms have subsequently exited the program, there has been steady increase in numbers to reach a total of 1,965 counties 2 and 202 farms in 2008. This compares to a national total of 2,859 county-level regions in 2008. 3 The six project provinces include 437 CAD counties and 21 CAD farms out of a total of 602 counties. The 68 CAD counties and 1 CAD farm thus represent 15% and 5%, respectively, of the provincial totals.
8. According to national CAD policies, 4 admission of a county to the CAD program must follow a clear set of procedures. For provinces where there is no limit on the number of CAD counties, any county that meets the conditions for CAD can apply for project approval. For provinces where the number of counties is restricted, the counties with the larger potential can apply subject to the number of counties that have exited the program. Cancelled (excluded) counties can apply for readmission when their problems have been resolved. The conditions for a county to become a CAD county are (i) agricultural resources are abundant; (ii) irrigation water is adequate; (iii) flood control of farmland is guaranteed; (iv) the project involves water conservation; (v) irrigation and drainage works are basically constructed; (vi) cultivated land is more than 133,000 ha and 67,000 ha in plain and hilly areas respectively; (vii) the cultivated land that requires upgrading is concentrated in contiguous areas; (viii) there are clear resource advantages for farming and livestock production; and (ix) there is a large potential to enhance overall agricultural efficiency and to increase farmer incomes.
9. The conditions for declaring and validating a new CAD county are (i) the county government must submit an application, or reapplication, report to the prefectural- and
2 Including 2 units with county-level authority - Liaohe Farms and Land Reclamation Administration of Shuangliao city in Siping City, and Gongzhuling National Agricultural Science & Technology Zone of Gongzhuling city in Siping City. 3 County-level regions include districts under the jurisdiction of Cities, county-level cities, counties, and autonomous counties. 4 Pers com. SOCAD 66
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 provincial-level CAD agencies, including all necessary appendixes (see Supplementary Appendix A); (ii) when the application report is approved by the provincial and national CAD offices, the authorized CAD office makes on-site inspections and assessment; (iii) the county is approved by the assessment and the leader of the Ministry of Finance (MOF) to become a new CAD county for a trial period of one year; and (iv) on completion of the trial period the State Office for Comprehensive Agricultural Development (SOCAD) or the authorized Provincial Office for Comprehensive Agricultural Development carries out an assessment. Counties that pass the assessment become formal CAD counties, while those that do not pass have their titles cancelled.
10. A CAD county can have its status suspended or cancelled if it fails to follow the required procedures, violates CAD discipline, fails to consult with farmers, or misappropriates project funds. 5 The rectification and reform period for a suspended county is one year and if corrective measures are not in place by the end of this period, the title of CAD County is cancelled. The rectification and reform period for a cancelled CAD county is 2 years and, if the problems are resolved in 2 years, the county can reapply for approval according to the application procedures. CAD counties should exit from the program when (i) the county’s medium- and low-yielding farmland that needs to be improved is less than 667 ha in plain areas and 333 ha in hilly areas; or (ii) the related county government departments or farmers no longer have the enthusiasm or willingness to implement CAD projects. Counties that have exited from the program can apply for national agricultural industrialization projects. Recent amendments to the focus of the CAD program include the transformation of financial support from agricultural leading enterprises to farmer cooperatives with strong demonstration and leadership abilities, a business license issued by industrial and commercial administrations, sound organizational structure, and the capacity to support the leading enterprises with a strong demonstration effect.
11. One of the key focuses of the CAD program is the upgrading of low- and medium-yielding land, including to high-yielding land. The definition of these according to the Ministry of Agriculture depends on the dominant cropping pattern, single or double crop, in the province as shown in Table A2.1 for the six project provinces. While the individual provinces use slightly different definitions, this probably has little impact on the area of different land types.
Table A2.1: Classification of Land Yield Types for the Project Provinces, 2007 Area Grain Crops High -yield Medium -yield Low -yield Project Provinces Land Land Land (t/ha) (t/ha) (t/ha) N.E. Plain Maize or rice >9.00 6.00-9.00 <6.00 Heilongjiang, Jilin N. China Plain Maize & wheat >12.00 7.50-12.00 <7.50 Henan, Anhui Inland Areas Maize or wheat >9.00 4.50-9.00 <4.50 Ningxia S. Rice Areas Rice & wheat >12.75 8.25-12.75 <8.25 Yunnan N. = North, N.E. = Northeast, S. = Southern Source: Ministry of Agriculture website (translated from Chinese)
A2.3 Agriculture and Agro-Forestry
12. Concern for grain security and improvement of farm household incomes are the two issues that most influence China’s agricultural policies, and programs. Current conditions with respect to land use and resource allocation in the agricultural sector are directed by demands placed on the sector by the large population and the growing disparity between farm and non-farm incomes. Beyond the needs of the growing population for a reliable and affordable
5 See Supplementary Appendix A for details. 67
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 food supply and higher rural incomes are challenges to the sector to meet increasingly diverse production goals. Economic growth has dramatically altered the mix of products required by the food system and growing export-related agro-industries. Even so, grain security will remain central to planning and policies related to the agricultural sector.
13. China’s population on 1 July 2009 was estimated at 1.34 billion persons and is expected to peak at about 1.46 billion around 2030, slowly declining thereafter. Meeting the strategic goal of near self-sufficiency in grain (>95% of demand year-on-year) is particularly challenging given that available arable land is estimated at 1.22 million ha, or only 0.085 ha/capita (1.28 mu/capita),6 approximately 40% of the world average.
14. The pressing demand for food and fiber means that current conditions in the sector reflect policy initiatives and stimulus programs designed to assure self-sufficiency in grains and other strategic crops. Unfortunately, these policies do not necessarily promote profit maximization and higher incomes for farmers, which are important considerations when reviewing the sector’s performance in recent years .
15. Currently, China’s agricultural planners are directing efforts in numerous, and sometimes conflicting, directions. Two are central to the current review: (i) the implementation of a wide range of policies and actions that promote food security particularly with respect to grains; and (ii) the introduction of policies that promote greater rural-urban equity and enhance farmers’ income potential. China has essentially met its demand for grain to the present, but the many programs needed to maintain supply in light of continued population growth and loss of arable land to other uses suggests that efforts will grow increasingly expensive and will cause significant distortions over time to the nation’s agricultural sector. In the short run, the benefits of vastly improved extension and farming technologies and the subsidies built into these programs are clear. Contributions to grain production and yields through improvements to farm technologies, improved land quality, basic agricultural research and more effective farm extension have proven essential and remarkably effective.
16. Self-sufficiency in grain production should be credited as much to government policies and financial stimulus programs directed at encouraging grain production as to improvements in technical inputs, farming systems, and improved extension programs. The CAD program and the other agricultural development programs play important and effective roles in China’s successful efforts directed at self-sufficiency in grain production. Improvements to the quality and availability of technical inputs such as quality seed, farm chemicals, and fertilizers and improvements to land quality, including field leveling, deep plowing, field consolidation and improved drainage (as well as irrigation) have also played a critical role. All of these innovations represent major investments by national programs, including CAD, since few farmers are able, or willing, to invest in such costly transformations on their own.
A2.3.1 Land Analysis
17. Assessing land quality is, at best, a very inexact science involving soil fertility, access to water, drainage conditions, and many other related factors including soil compaction, slope, soil parent material, mineralization and ph, elevation, topography, and actual productivity as measured by yield. Typically, in China, mean yield is used as a surrogate summary variable, representing, in a practical way, the totality of all of the effects of these other factors. The CAD approach seeks to address the ultimate goal, improved and sustainable yields, by addressing all of the underlying causes. Improving land by a single step - from low- to medium-yielding or from the medium- to high-yielding - is significantly easier than moving
6 Yan Y., J.Z. Zhao, H.B. Deng, Q.S. Luo. 2006. Predicting China’s cultivated land resources and supporting capacity in the twenty-first century, International Journal of Sustainable Development and World Ecology, Vol. 13, no. 3, p. 1 -16 . 68
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 from low-yielding to high-yielding since a limited number of measures – such as improved drainage, irrigation combined with balanced fertilizer application, or the incorporation of organic material – may have sufficient impact to achieve the required yield increase. Larger improvements require a more complex combination of interventions and may be hampered by underlying natural causes of low productivity such as limited moisture, alkaline soils, topography, and annual temperature regimes.
18. The proportion of arable land classified as high-yielding declined by just over 2.5% in 2008 compared to the average for 1980 to 1989, while the share of low yielding land increased by almost 12% (Table A2.2). About one third of China’s arable land was classified as high yielding in 2008, indicating potential for significant improvement, not only in moving low- to medium-quality and medium- to high-quality land, but also reversing the trend towards degradation by renovating and expanding irrigation and drainage systems and improving agricultural practices.
Table A2.2: Summary Data on China’s Low, Medium and High Yield Land Year High Yield Medium and Low Yield Land Land (%) Combined Medium Low Yield (%) Yield (%) (%) 1980-1989 average 34.92 65.08 41.94 23.14 2008 32.29 67.71 32.85 34.86 Change -2.63 2.63 -9.09 -11.72 Land area by type in 2008 (million ha) 44.95 83.79 54.00 29.79 Source: Chinese Academy of Agricultural Sciences.
19. With reference to the six provinces included in the project area, the national trend whereby about 33% of arable land is classified as high yielding land applies except for Ningxia AR, where recent estimates assign only 26.7% of arable land to the high-yield category, and Jilin, where almost 40% of the land is classified as high yielding (A2.3). Low- and medium-yielding land is not evenly distributed throughout each province. Particular regions have a disproportionate amount of low and medium quality land, which justifies their inclusion in the proposed project.
Table A2.3: Summary Data on Six Project Provinces Low, Medium and High Yield Land Province Area of Different Land Types Total Cultivated Area (% of provincial total) (million ha) High - yielding Medium - yiel ding Anhui 35.0 65.0 5.73 Jilin 39.9 60.1 5.53 Heilongjiang 33.0 67.0 11.83 Henan 34.5 65.5 7.93 Ningxia 26.7 73.3 11.07 Yunnan 32.9 67.1 6.07 Sources: Anhui Province, Ministry of Science and Technology Office, 2009. Technology Work , No. 50.; Heilongjiang and Jilin Provinces, Liaoning Academy of Agricultural Sciences, 2009. Grain production in northeast situation and development strategy, Chinese Society of Agricultural Meteorology Branch Summit Report ; Henan Province, Land Use Planning of Henan Province (2006 ~ 2020) ; Ningxia Autonomous Region, 2006. Ningxia type of low-and medium irrigation and rehabilitation measures, Journal of Water Resources and Water Engineering , 2006, 4; Yunnan Province, from Ren Weidong and Qing Li, 2009, Work to promote low-yielding farmland ”, Guangming Daily June 12; Cultivated area from NBS, 2009. China Statistical Yearbook . Beijing.
20. While inadequate irrigation and drainage systems are undoubtedly one of the major causes of low- and medium-yielding land, as is highlighted by the focus of the CAD program, there are no clear statistics as to the extent of this problem.
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A2.3.2 Crop Production and Future Demand
21. Efforts to assure grain security have proven successful both in terms of increased output and significant increases in yields for all major crops. One indicator of the efficacy of measures already taken is the fact that total grain production has increased for 7 years beginning in 2004. National Statistics Bureau data show that in 2004 national grain output reached 469.5 million t, an increase of 9% over the previous year. From 2005 to 2008, total grain production increased from 484.0 million t to 528.5 million t, an average annual increase of 3.1%. The trend continues: total grain output for 2010, baring extreme climatic events, is expected to set a new record. This most recent period represents the first time in nearly 40 years that China has achieved seven consecutive years of growth. Perhaps as importantly as the absolute increases in all three major grains as well as for aggregate beans and tubers is the shift in shares represented by rice and maize. While wheat output has remained largely unchanged at about 25% of total cereal production over the past 18 years, rice production has slowly lost just over 6% of total share to maize, which now accounts for 34.7% of total cereal production at 165.9 million t.
22. The new target of the Government is to increase grain production to 540 million t by 2020 while doubling per capita income over the 12 years from 2008 to 2020. To reach this goal, the Government raised its agricultural budget by 30.3% in 2007, 37.9% in 2008 and another 20.2% in 2009. Gross production of food/feed grains and other crops increased due to increases yields as grain-sown area actually declined. Aggregate grain yields increased 24.1% from 1991 to 2008. Other important economic crops had even greater increases with cotton yields increasing by 33.0%, peanuts by 34.9%, and rapeseed by 33.9%.
23. Beyond the uncertainly of population growth, demand estimates for total grains vary widely not because of variable estimates of per capita grain consumption, but largely due to differing estimates of the amount, and type, of meat in the diet. Typically, models assume a 7.5:1 grain/meat ratio for beef, 3.5:1 for pork, and 2:1 for poultry. As dietary tastes change, so will the feed grain portion of the total demand estimate. Food grain elasticities tend to be close to zero so that estimates of food grain demand vary mainly with estimates of population growth. However, there is no reason to assume that consumption of food grains will decline as meat consumption goes up, given the relatively small percentage of meat in the daily diet especially in rural areas. In 2008, Zhou et al estimated that 180 million t of grain was used for meat production and suggested that by 2010 demand for feed grains would exceed that for food grains.7 Current estimates of grain demand range from 540-650 million t in 2020, possibly rising to 700 million t in 2050. As meat consumption increases, the volume of grain required to feed livestock will increase and overall domestic grain demand will increase accordingly.
A2.3.3 Factors of Production
24. Recent years have seen greatly accelerated efforts to improve the nation’s agricultural water and land resources, and associated technical means of production. In the Reform Era, many programs have been introduced to improve grain production while also improving yields through field terracing and consolidation, technical innovations, and infrastructure improvement including to irrigation and water management systems. The more successful and far-sighted of these have considered improvements to land and water resources in their context as a subsystem of a larger and more complex agro-ecological economic system. Regulations and well-funded programs have been developed for (i) field leveling, (ii) balanced NPK fertilizer application complete with on-field soil fertility assessments, (ii) high quality seed propagation and distribution, (iv) soil improvement initiatives such as deep plowing and
7 Z.Y. Zhou, W. M. Tian, and B. Malcolm. 2008. Supply and Demand Estimates for Feed Grains in China , 70
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 straw/stalk applications, and (v) shelterbelt forest planting for crop protection. Funded largely by the Central Government, but also with provincial technical and financial support, these programs are still in their infancy as significant funding for most of them has really only emerged within the past decade.
A2.3.4 Current Challenges to the Agricultural Sector
25. Success to date in meeting China’s food security goals has not come without cost. Improving low production land or expanding irrigation systems is very expensive. Beyond improvements to land stocks and infrastructure, there are two measures that most importantly reflect a new commitment to improving conditions for farmers. First, the Government completely abolished the agricultural tax levied on farm households in 2004. The national-wide exemption from the agricultural tax reduced government revenue by CNY 23.3 billion/year. The actual impact was greater as the agricultural special product tax, which generated CNY6.8 billion/year, was eliminated at the same time for a total annual tax relief of CNY 30.1 billion, largely eliminating the tax burden on farmers. This program resulted in farm households having more disposable income and has narrowed the income gap between farm families and their urban counterparts, at least for a while. Second, nation-wide subsidy programs have expanded to provide numerous fiscal supports to farm families planting grain. These are not all new programs, but are much better funded than in the past. Allocations include unit area support for the planting of all major grain crops as well as subsidies for the purchase of improved varieties, agricultural capital goods, land improvement, and farm machinery purchase. Local governments may also provide additional support and training which promotes the adoption of innovations in crop cultivation and processing. Taken collectively, these programs have proven effective in raising incomes for rural farming families by significantly lowering the cost of inputs and, perhaps more importantly, making new technology more accessible and allowing farmers to take the initiative to improve land, helping to promote the adoption of scientific farming and agricultural development.
26. The benefits of technical improvements to factor endowments are clear, but greater benefits can be derived from CAD programs. Farmers and extension agents need better training, extension programs must be targeted to specific issues, crop quality must be improved, and marketing channels must be more accessible and more transparent. The means of improving arable land in China have been conventional, but conducted at a pace and scale with few if any precedents. Central Government investments through CAD programs and others have transformed China’s arable land base in under two decades, with the greatest efforts and investments coming in the last ten years. Other major improvement programs are dedicated to renovated irrigation systems, improved drainage, increased mechanization, and rural electrification projects. All of these measures have helped farmers while accelerating agricultural development. At least for the medium term, the subsidy system is a reality and any assessment of the potential benefits of increased investments in infrastructure including irrigation must consider how the subsidies already in place will impact outcomes in agricultural decision-making by farmers and other stake-holders. Subsidies at the current level raise issues with respect to sustainability, but these can only be addressed through more detailed studies of the long- term effects of subsidies on the sector.
27. Another major trend in the agricultural sector relates to the degree of specialization associated with production of all major agricultural crops, which continues to increase at a much faster rate than in the past. This is often with government support, but also because the adjustments make economic sense to farmers. Use of specialized equipment for agricultural production activities for many crops, including grains, greatly reduces production costs. Due to cost savings associated with mechanization (at least to farmers through subsidy programs), farmers have chosen to employ machinery, and the specialized labor that operates this equipment in some cases, to complete sowing and harvesting activities, the two most labor-intensive activities of agricultural production. Greater profit margins accelerate this 71
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 trend so that mechanization levels for agricultural commodities continue to increase. Farmers want to embrace these technologies but adoption is often limited due to cost. The promotion of more effective and comprehensive FAs could increase efficiency and reduce these costs.
28. The contribution of total factor productivity growth to the farm sector has increased significantly in recent years. Specifically, numerous studies indicate that scientific and technological progress in the agricultural sector has become a decisive force in rural economic development. The contribution of total factor productivity to agricultural growth reached 51% in 2009.
29. Despite progress in the areas noted above, the agricultural sector still faces some daunting challenges. Beyond the income gap there are two main structural problems challenging farmers. First, the proportion of low-yielding fields is far too high. Because of numerous environmental and physical factors, the productive potential of much of the nation’s arable land has not been fully achieved. Increased attention to improving low yielding crop land will have immediate benefits on grain supply, the reliability of that supply and on rural incomes and the greater rural economy. Second, there is a lack of standardized agricultural production processes and quality standards. No longer a luxury, these areas must be improved if continued progress is to be made and stable prices are to be achieved. Food safety for produce, grains, and meat has become a major concern for domestic consumers and also must be addressed due to export requirements. Consumers are increasingly concerned about the quality and safety of farm commodities, semi-processed, and processed foods. Food safety issues and the implementation of quality controls for production (including organic foods) must be addressed.
A2.3.5 Agro-forestry
30. The connection between field agriculture and agro-forestry is often poorly understood, especially by the farmers who stand to benefit most when substantial improvements are made to both systems. Research shows the synergies between shelter forest expansion and sustainable crop production. The contribution of shelter-belt forestry to grain crop production is widely recognized and supported by numerous studies within the project areas and provinces, which suggest that shelterbelt forests can reduce crop-level wind speed by about 50%, lower summer temperatures by 0.6 0C, increase relative humidity by almost 6% and reduce surface evaporation by 33%. The contribution of shelter-belt forests to grain crop production is also widely recognized and supported by numerous studies within the project areas and provinces. Farmland shelterbelts are increasingly included in CAD planning due to the synergies between these plantings, and the crop land that they protect.
A2.4 Irrigation Water Resources and Operation and Management
A2.4.1 Water Budget
31. China’s available annual fresh water budget increased dramatically between 1949 and 1985 from 100 billion m 3 to 450 billion m 3 due to expansion and exploitation of surface and ground water resources. However since 1997 the annual water budget has been more or less stable at 550 billion m 3 increasing marginally to 563 billion m 3 in 2005 indicating that exploitation of water resources has reached its maximum capacity and further increases in the annual water budget will be marginal.
32. Water demand models under different population increase and gross domestic product (GDP) scenarios the annual water budget required by 2050 will be from 675 billion m 3
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ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 to 750 billion m 3, a 20-33% increase above the current water budget. 8 Further water resources will require investment into major water diversion schemes possibly external to China’s borders.
33. In 2005 the distribution of China’s water budget between the four sectors - agriculture, industry, domestic, and environmental consumption - was 63.5%, 22.8%, 12%, and 1.6% respectively. Water demand forecasts, carried out under different scenarios, confirm that water allocation to the agricultural sector will decrease from the current 63.5% to between 50% and 37% of the total water budget in favor of the industrial and domestic sectors. The implications of these results suggest that China will have to increase its water use efficiency in all sectors, but especially in the agricultural sector, to maintain and increase production.
A2.4.2 Irrigation and Drainage in China
34. As of the end of 2008, the total irrigation area in China was 64.1 million ha, of which the effective irrigation area was about 59 million ha. Of this, the water saving irrigation area was 24.4 million ha, (41.8% of the total area). The water saving irrigation area comprises: 42.8% (10.44 million ha) with lined canals, 24% (5.87 million ha) with low-pressure pipe irrigation; 11.6% (2.83 million ha) with sprinkle irrigation; 5.1% (1.25 million ha) with micro-irrigation and, 16.5% (4.04 million ha) with other water saving irrigation methods. Table A2.4 shows the irrigation areas of each project province be the end of 2008.
Table A2.4: Irrigation area of project provinces in 2008 (Unit: 10,000 ha) Province Effective Water saving irrigation area irrigation Total Canal Low - Sprinkler Micro - Other area lining pressure Irrigation pipe Anhui 345.4 76.5 18.8 6.7 7.6 0.7 42.7 Heilongjiang 312.3 199.6 6.0 1.0 76.3 2.4 114.0 Henan 498.9 141.2 47.1 58.9 11.1 0.8 23.3 Jilin 165.4 23.5 1.8 0.0 20.7 0.0 0.9 Ningxia 45.2 22.7 17.7 1.7 0.5 0.6 2.1 Yunnan 153.7 49.0 39.0 4.0 0.6 0.2 5.2 National Total 5,847.1 2,443.5 1,044.8 587.3 282.1 125.0 404.4 Source: MWR, 2010. China water saving irrigation, Beijing.
35. In China, large-scale irrigation districts are defined as 20,000 ha and above; medium-scale are 667 - 20,000 ha, and small-scale are those smaller than 667 ha.
36. Large-scale Irrigation Districts: As of the end of 2008, there were 447 large-scale irrigation districts, covering a total irrigation area of 16.73 million ha. Management of large-scale irrigation districts is largely carried out by a professional management unit together with peoples’ participation. The professional management unit is usually the Irrigation District Management Bureau under the leadership of water resources bureaus at provincial, municipal or county levels. It is responsible for management and O&M of the main irrigation structures (water source works, main and branch canals and their structures, etc.). The professional units are mainly financed by central and local governments and from water tariffs. Peoples’ participation in management is mainly through the local township, villages and farmers, who benefit from the irrigation system. In some cases they form WUAs to participate in irrigation management (Section A2.4.10).They are mainly responsible for the O&M and water distribution below branch canal and collecting water fees from farmers. The
8 Jingzhu Zhao et. al. 2007. Opportunities and challenges of sustainable agricultural development in China . State Key Laboratory of Urban and Regional Ecology, Research Center for Eco-environmental Sciences, Chinese Academy of Sciences 73
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 full cost of supplying water to the large-scale irrigation districts in 2008 was CNY0.02-0.583/m 3. However, the water tariff charged to farmers was CNY0.02-0.256/m 3.
37. The main issues and challenges of the large scale irrigation districts are (i) low proportion of lined canals below branch level, resulting in low irrigation efficiency; (ii) low water tariff, often less than 50% of the full cost of water supply in most districts, and an average water fee collection rate is less than 80%; (iii) insufficient financial revenues for paying management staff and for O&M cost – the actual financial revenues are only 54% of management staff cost and 29% of O&M costs; and (iv) over-staffing resulting in increased management costs.
38. Medium-scale Irrigation Districts: China had 7,300 medium-scale irrigation districts in 2008, covering an irrigation area of 15.4 million ha. Of these, there were 1,500 key medium-scale irrigation districts, each between 3,300 ha and 20,000 ha, covering a total irrigation area of 8.07 million ha and 5,800 smaller medium-scale irrigation districts, which are between 666 ha and 3,333 ha and cover a total irrigation area of 7.33 million ha.
39. The main issues in medium scale irrigation districts are (i) in key medium-scale irrigation districts, existing main and branch canals are only 87% of the originally designed length, and completed canal structures average only 83% of the original design, resulting in an effective irrigation area of only 70% of the designed area; (iii) only 25% of the total length of the main and branch canals are lined in the key medium scale irrigation districts resulting in water use efficiencies of only 0.51 for the main and branch canals; (iii) the irrigation management system is rigid with unclear responsibility, poor O&M, inadequate management staff skills; and (iv) low water price and difficulty in water fee collection.
40. Small-scale Irrigation Systems: As of the end of 2008, there were about 20 million small-scale irrigation systems, including more than 6 million water ponds, 1.1 million small water diversion works, 470,000 small pumping stations, 4.3 million tube wells and more than 6 million water tanks and water cellars. All these small works are independently managed and operated by the local beneficiaries, including townships, villages, farmers’ group or individual farmers
41. According to a survey conducted in 500 counties in 2008, the proportion of small irrigation works in good condition was low: 50% for small mountain dams and water ponds, 70% for water tanks and cellars, 49% for small water intake gates and weirs, 51% for small pumping stations, 74% for tube well equipment, 48% for small irrigation canals, and 47% for field drainage channels.
42. Required Measures for Irrigation Development: In order to increase water use efficiency in irrigation districts it is necessary to (i) increase the investment into rehabilitation of the main structures of the medium-scale irrigation districts and into the field level facilities in the large- and medium-scale irrigation districts; (ii) enhance water saving demonstrations and encourage and guide farmers to adopt water saving irrigation equipment and technologies; (iii) continue to implement the system of “professional irrigation management units + WUAs + water users’ group (farmers);” (iv) guide farmers in irrigation management, O&M of facilities, water fee collection etc.; (v) support WUA management organizations in their operation, technical issues, funding and capacity-building; (vi) reform property ownership and rights system for small irrigation projects and adopt different forms of contracting, leasing, auction, ownership cooperation, and using flexible methods of management and O&M system; (vii) strengthen water measurement and water tariff collection; and (viii) strengthen basic research and support policies and measures on water saving irrigation.
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43. Drainage facilities: As of the end of 2008, the total drainage area in China was 21.43 million ha, of which there were 1,032 large-scale drainage pumping stations serving a total designed drainage area of 5.32 million ha. There are two management modules for these large-scale drainage pumping stations: state management and collective management. The staff and operation costs are mainly from the governments funds.
A2.4.3 Water Allocation
44. Surface water from rivers and lakes is allocated to provinces by the seven River Commissions under the Ministry of Water Resources (MWR) that are in charge of water resources in the seven major river basins. Water is allocated on the basis of the previous year’s water flow records and water available after subtraction of essential needs. The provincial allocation is then distributed to counties within the province. However there is insufficient monitoring of the actual volume of water extracted by the provinces, which often exceeds their allocation. The MWR is currently considering installing volumetric measuring at various extraction points.
45. Based on 1987 calculations, the Yellow River has a total water flow of 58 billion m 3 of which 21 billion m 3 is allocated for flushing sediment. The remaining 37 billion m 3 is allocated between the provinces along the river. In theory any shortfall in flow is shared between the provinces.9 In practice this is rarely the case and it is estimated that Ningxia and Inner Mongolia exceed their annual quota by 1 billion m 3 which is about 10% of their total allocation. 10 To have better control over the Yellow River water allocation the State Council issued Decree No. 472,11 which was put into effect August 1, 2006 and imposes more austere measures for water allocation and regulation based on real-time measurements.
46. Groundwater allocation is less regulated. The responsibility for groundwater was passed over to the MWR from the Ministry of Land Resources in 2000 and in consequence the overall monitoring of groundwater resources is less advanced. A license is required to extract a specified volume of water from groundwater resources but monitoring only takes place in selected wells.
A2.4.4 Water Scarcity
47. Water scarcity is a major problem affecting agriculture. Between 2001 and 2006 annual grain output reduced 35 million t (7% of total output) and affected 25 million ha, 20% of total cultivated land area. 12 Water scarcity is most serious in the North China Plain and in particular in Henan, Ningxia and Anhui Provinces. The four river basins of Northern China - Songliao, Hai-Luan, Huai, Yellow - cover 60% of the nation’s cultivated area and account for 44% of the population. Water shortages in the urban and industrial sectors are becoming increasingly common resulting in reductions in the agricultural sector. Moreover increased extraction of groundwater is leading to lowering of groundwater tables in large areas of northern China resulting in ground water tables dropping at an alarming rate. 13 In parts of the North China plain the groundwater table is dropping at approximately 1.0m/year in groundwater funnels, causing ground subsidence and sea-water intrusion. Between 1958 and 1998 groundwater levels in the Hai River Basin fell by up to 50 m in some shallow aquifers and by more than 95 m in some deep aquifers. 14
9 In 2003 the Yellow River flow fell below 45 billion m 3; in 2009 it was 50 billion m 3. 10 Thirst of the cities drives the giant drills to water China's parched north, Guardian press report 18 May 2009 11 Yellow River Conservancy Commission. 2006. Decree No. 472: Regulations of Yellow River Water Regulation . 12 Hu Si Yi (Vice Min, Water resources, personal communication 13 Wang, J., S. Rozelle, A. Blanke, Q. Huang, and J. Huang (2005). The Development Challenges and Management of Groundwater in Rural China , ed. M. Giordano, and T. Shah. Colombo, Sri Lanka: International Water Management Institute. 14 MWR, World Bank, and AusAID, 2001. Agenda for Water Sector Strategy for North China , No. 22040-CHA. 75
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48. In order to resolve China’s water scarcity problems the Government has targeted technologies to increase the supply of water through developing increasingly comprehensive canal networks and constructing larger reservoirs. 15 Between 1980 and 1997 China invested more than CNY171 billion in water control 16 and in 2001 the State Council began construction of the $50 billion-plus South-to-North Water Transfer Project. However it is increasingly clear that this strategy is insufficient and that focus should now be on increasing water use efficiency and better management practices.
A2.4.5 Water Use Efficiency
49. The average irrigation efficiency in China in 2008 was 48% 17 and MWR intends to increase this value to 50% by 2010. However irrigation efficiencies along earthen canals are much lower and the increase in efficiency by rehabilitating/converting earthen canals with: canal lining, low-pressure pipes, sprinkler irrigation and micro-irrigation is estimated to be 20%, 30%, 40%, and 60% respectively.18 (Table A2.5).
Table A2.5: Increase in Irrigation Efficiency and Water Saving by Irrigation Measures Increased Average Total Water Saving Water Water Irrigation Water water Irrigation Measure by a saving Saved Volume by Saved saved Type Converting from 3 Irrigation 3 (%) Earthen Canal (m /ha/yr) (mn m / earthen canals 3 Area (m /ha/yr) year) (ha) Surface Concrete lined canal 20 6,735 b 1,347 40,065 54.0 Well Low-pressure pipes 30 4,200 c 1,260 10,616 13.4 Sprinkler Sprinkler irrigation 40 4,200 1,680 4,838 8.1 Micro Micro-irrigation 60 4,200 2,520 109 0.3 Total volume of water saved in project area 75.7 a MWR, 1999. Collections on China Water-Saving Agriculture Issues. China Water Press, Beijing, 1999. b H Wang, et al. 2008. Study on water use trend and strategic countermeasures in China . MWR, 2008 c S. Zhou, et al . 1991. Well irrigation with low-pressure pipe for water conveyance in Xiongxian of Hebei Province (project report). Source: Consultant’s estimates
50. Within the context of the project the introduction of water saving practices will be of key pertinence since increase of irrigation efficiencies will result in overall water saving with reduction of percolation of water to the groundwater and enable irrigation water in canals to reach extended areas and therefore enlarge the total irrigation area using the same volume of water. It is estimated that 75.7 million m 3 of water can be saved annually throughout the project area by introduction of water saving methods, which, is equivalent to irrigation of an additional 15,000 ha or can be used for other purposes. The project will increase the total irrigated area from 58,529 ha (without project) to 97,528 ha (with project), an increase of 38,729 ha. This will require an incremental water supply of 191 million m3, which will increase total water use in the project by 115.3 million m 3, an acceptable increase particularly since the areas where increases are expected are those with more than sufficient water available.
15 Boxer, B. 2001. Contradictions and challenges in China's water policy development , Water International 26 : 335-341. Ross, L. 1983. Changes In Water Policy In The Peoples Republic of China , Water Resources Bulletin 19 : 69-72. 16 Fan, S., L. Zhang, and X. Zhang. 2002. Growth, Inequality, and Poverty in Rural China: The Role of Public Investments . Research Report No. 125, International Food Policy Research Institute, Washington DC. 17 MWR, 2008. Study Report on China Irrigation and Drainage Development. 18 MWR, 2009. 2008 National Water Resources Development Statistics Bulletin . 18 MWR, 1999. Paper Collections on China Water-saving Agriculture Issues . China Water Press, Beijing. H Wang, et al. 2008: Study on water use trend and strategic countermeasures in China . MWR. S. Zhou, et al. 1991. Well irrigation with low-pressure pipe for water conveyance in Xiongxian of Hebei Province (project report). 76
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A2.4.6 Water-logging
51. As much as water scarcity seriously affects agricultural production, so water-logging impacts crop yields in parts of China. There are 24.4 million ha of cultivated land prone to water-logging, which is particularly prevalent in coastal areas and on low lying plains areas where the land is close to sea level and the water table is high. Of the proposed project provinces, water-logging is of concern in Heilongjiang, Jilin and Anhui.
52. Water-logging is mostly prevented by open drainage canals, whereas subsurface, mole and tubewell drainage, and drainage by pumping are less common due to cost. However mole drainage is used in some clay areas of southern and northeastern China and drainage by pumping is used in lowland areas in where water cannot be freely drained. Whilst considerable investment has been made to reduce water-logging the lack of necessary field drains for effective control remains a major constraint to crop production.
A2.4.7 Salinity
53. There are 7.33 million ha of cultivated land prone to salinity, which also has a serious impact on crop yields. Salinity is mainly prevalent in northern China as a result of low rainfall, high evaporation rates and high water tables. Several approaches are used to rehabilitate saline land, including: (i) tube-well pumping, which has a dual function of drainage and irrigation and is widely used in the North China Plain (Anhui, Shandong, Henan and Ningxia Provinces) where drought, water-logging and salinity coexist; and (ii) construction of irrigation and drainage canals to leach out salts in combination with a rotating cropping system of paddy and dry land crops (wheat and maize), which is used where local water resources are more plentiful. A large area of saline-alkaline wasteland has been reclaimed by this method in Xinjiang and Ningxia Provinces.
A2.4.8 Irrigated Agriculture
54. The yield of irrigated land averages about twice that of rainfed land. Irrigation brings more reliability to crop production, assures yield consistency and local food security. The total irrigated area in China is 59 million ha (2008), accounting for about 48% of total arable land (122 million ha). The increase in irrigated area was been dramatic between 1989 and 2003, increasing by about 22%. Expansion of the irrigation area has not only had a dramatic impact on agricultural production but also on China’s water resources, particularly in the Northern water basins. According to the MWR 24 million ha (38% of irrigated area) uses water saving irrigation methods.19 However other data suggest that only 13.3 million ha of farmland actually has irrigation facilities that are classified as good or above. The MWR’s current strategy aims to increase canal irrigation efficiency to 50% through lining canals and well- irrigation efficiency to 90% by installation of low pressure pipes. More sophisticated types of water-saving technologies, such as drip and sprinkler irrigation, are only economically viable for cash crops such as greenhouse crops, vegetables, fruit trees and cotton. The condition of irrigation facilities and equipment for most irrigated land is poor. Much of the infrastructure was constructed between the 1950s and 1970s and throughout the nation, many irrigation facilities are aging and outdated, and cannot meet modern performance requirements. They commonly lack effective on-farm distribution and have deteriorated since they were constructed especially at lower levels.
55. The major problems faced by irrigation and drainage systems include (i) inadequate operation and maintenance (O&M), (ii) insufficient government budget, (iii) low water charges and collection rates, (iv) poor irrigation service, and (v) lack of direct farmer participation and
19 2008 Statistic Bulletin on China Water Activities. Edited by Ministry of Water Resources. 77
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 ownership in managing irrigation systems. The result is a vicious cycle of poor O&M, system deterioration, and lack of incentive to rehabilitate existing irrigation systems.
A2.4.9 Irrigation Water Management
56. About 46% of China’s irrigated area is managed through Water Companies or irrigation bureaus, 27% is farmer-managed from surface water sources, and a further 27% is farmer-managed through groundwater extraction. The management mechanism of each of these types is different.
57. Surface Irrigation Water Management . Surface irrigation water from rivers, lakes or reservoirs is managed at the source by irrigation bureaus or water companies and in the traditional format distribution of water was managed by the township or village government. Moreover management of irrigation schemes usually follows administrative boundaries of the township/village rather than hydrologic boundaries of the irrigation scheme. This causes considerable difficulties in irrigation water management.
58. Groundwater Management. Irrigation management of groundwater resources is simpler and in most instances much easier since it usually involves a small group of about 10 farm households sharing one well covering about 50 mu (3.3 ha) of land. The farmers come to a common agreement, without a formal agreement or institutional setting, based a common set of guidelines for the well to be located on one farmer’s land and for that farmer to take ‘ownership’ of the well and pump. Other farmers may draw water according to needs and pay an extraction fee based on electricity cost plus a moderate fee to the farmer for occupation of his land and maintenance costs. When the pump needs replacement (the anticipated life of a pump is 15 years), the farmers collectively cover the cost.
A2.4.10 Water User Associations
59. The concept of Water User Associations (WUAs) was introduced to China by the World Bank in 1994 through ‘Self-managed Irrigation and Drainage Districts’ (SIDD), which is an internationally advocated form of participatory agricultural irrigation management pattern, comprising a Water Supply Company and farmer WUAs. The basic model of SIDD consists of: (i) a Water Supply Organization that is responsible for management of water resource works, trunk water delivery canal system and water supply; (ii) a farmer-led WUA which takes responsibility for irrigation canal system and its management at branch (lateral) level and the level below. The two parts are independent legal persons respectively entering into a contractual relationship rather than a subordinated relationship administratively.
60. The MWR reports that there were about 34,000 WUAs in China at the end of 2006. SOCAD has produced a series of training and operational manuals to promote the adoption and functioning of WUAs.20 Moreover WUAs are now part of national policy as shown by Circular 502 issued by MWR and the National Development and Reform Commission (NDRC) in 2005 (and circulated to all of project provinces except Heilongjiang by SOCAD under SOCAD Circular 307). WUAs have (i) reduced the government’s financial burden, (ii) improved irrigation management and service to farmers, (iii) enabled effective farmer ownership and participation, (iv) saved water, and (v) enhanced the quality and sustainability of irrigation for better agricultural production.
20 Including (i) Self-Managed Irrigation District Training Material (by SOCAD Office Under MWR and SOCAD under MOF) (October 2001); (ii) WUA Theory and Practice (By State Office of Comprehensive Agriculture Development of MOF)(June 2005); and (iii) Manual for WUA Establish and Operation Capacity Building on Rural Women Participating in WUA Activities. 78
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61. Whereas WUAs can ensure equitable distribution of water within the WUA, they have no power or control over the allocation of water between different irrigation districts. In areas of water scarcity farmers may illegally block branch canals to ensure more water to their fields. This causes conflicts between irrigation districts and could be resolved through establishment of WUA federations. To date there is no information that federations have been created.
62. One of the main problems facing the WUAs is low water tariffs. All water tariffs collected by the WUA are transferred to the Water Company/Irrigation Bureau, which then returns about 1% of the total to the WUA to cover costs of basic salaries and canal cleaning. However no funds are allocated for irrigation canal maintenance, which have to be financed from other sources. Canal maintenance under SOCAD projects is currently guaranteed by the provincial CAD offices.
63. In the project provinces existing WUAs take various forms, including cooperative managed, farmer managed and government managed. In some locations WUAs have been operating for several years. Some have legal status under the Farmer Associations Law , 2007, and are registered at the Civil Affairs Bureau. However, most WUAs only have an informal status. According to a survey conducted in the proposed project area, 19 counties have existing WUAs; 40 counties plan to establish WUAs, and 28 counties are interested in setting up WUAs.
64. While WUAs are promulgated as the best irrigation management practice, enhancing farmer participation, democratic election processes, equitable water distribution, water saving and transparency, evidence from recent studies indicate that many outstanding issues still need to be addressed. A brief summary of conclusions of these studies 21 conducted in Henan and Ningxia provinces are as follows:
(i) WUAs are more transparent that other forms of irrigation water management; (ii) Farmer participation in WUA election processes and decision making is only about 25% of the total electorate. Most farmers are unaware they are members of their WUAs; (iii) Water saving is largely a result of financial incentives to water managers regardless of the type irrigation management instituted; other methods of reducing water volumes are rarely employed. (iv) Application of water saving methods –i.e. modification of irrigation frequency or amount result in a reduction of yield particularly in winter/spring crops i.e. wheat; (v) Initiation and formation of WUAs was mainly driven by reform activities of local officials; (vi) WUAs were not formed as a result of water scarcity but more associated with areas where water was not a constraint and possibly associated with areas of higher levels of education; (vii) Most WUAs have strong links to the village leaders; (viii) In areas where canals have been re-lined, irrigation is mainly under traditional collective management
65. Hence despite substantial progress, development of WUAs faces many challenges. In particular, promotion of participation to develop sustainable institutions that provide significant benefits to all members requires the transfer of knowledge and support to water users and other relevant stakeholders.
21 Huang Qiuqiong, Rozelle S., Wang J., Huang J. 2009: Water management institutional reform: A representative look at northern China. Agricultural Water Management Vol 96/2 pp 179-348. Wang Jinxia ,, X. Zhigang J. Huang, S. Rozelle 2006: Incentives to managers or participation of farmers in China’s irrigation systems: which matters most for water savings, farmer income, and poverty? Agricultural Economics 34: 315–330 79
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66. Women in rural areas have increasing responsibilities both in agriculture and domestic water use because men are migrating for work. Case studies for several villages in Gansu Province show that women's participation in WUAs is minimal. The implications of this gender difference for effective and equitable water management have been largely ignored.
67. Formation of formal WUAs is less necessary under conditions where there are small farmer groups using a common tube-well. However World Bank experience in Hebei Province 22 indicates that WUA formation for tube-well extraction is beneficial where (i) farmers are using a common power source for a cluster of tube-wells; (ii) the groundwater table is declining and needs to be monitored and controlled and (iii) common decision making on irrigated cropping systems is required due to scarce ground water sources.
A2.4.11 Irrigation Water Tariffs
68. Surface water irrigation water tariffs are between CNY0.035/m 3 and CNY0.055/m 3, about 2-5% of drinking water tariffs. Under the policy guidelines issued by the State Council, the tariff is determined by the local Pricing Bureau which takes socio-economic factors into consideration. The revenue from tariffs is inadequate to cover canal/reservoir maintenance costs.
69. Irrigation water released from reservoirs or rivers to irrigation districts is measured by volume. However water tariffs to farmers are based on irrigation/unit area and not volume of water used. Irrigation tariffs are at flat rate of between CNY10/mu/irrigation (CNY150/ha/irrigation) and CNY40/mu/year (CNY600/ha/year). These rates are extremely low, giving little incentive for water saving and often do not warrant the manpower investment in collecting the fees.
70. Increasing water tariffs is a sensitive issue impacting an already poor sector of society and farmers demonstrate extreme reluctance to any increase in costs of farm inputs. Moreover increase in water prices would result in reluctance of farmers to use irrigation water and could lead to reduced production and increased food prices.
71. Applying volumetric measurement of water use, whilst important to impose judicial use of water, is difficult in practice. Farm size is small and in irrigated area is about 0.2-0.4 ha/farm family depending on the location and rural population density. Therefore installation of multiple volumetric measuring systems at farm level in an irrigation district is impractical.
72. Ground water extraction requires a license from the local water resource authority. However there is normally no charge for water extracted from wells for agricultural purposes.23 Fixed costs, such as those associated with sinking a well or buying a pump, are not included in pumping costs. Farmers therefore only pay the electricity or diesel costs for pumping, which is sometimes calculated through a rechargeable integrated circuit (IC) card inserted to start the pump. Nominally the electricity fee is CNY0.6/kwh and the price of water, depending on the depth of the water table in the well, ranges from CNY0.06/m 3 to CNY0.56/m 3. Hence the price paid for water by different households can vary by a factor of 9 depending on groundwater depth. This can have a major impact on the amount of water a farmer is willing to apply to his crop. For this reason, and other reasons cited above, increase in water tariff is not necessary the correct approach to reducing agricultural water consumption and may have a significant negative impact both on grain production and
22 Personal communication Richard Reidinger, World Bank 23 Wang, J., Z. Xu, J. Huang, and S. Rozelle (2005b), Incentives in Water Management Reform: Assessing the Effect on Water Use, Production, and Poverty in the Yellow River Basin, Environment and Development Economics 10 : 769-99. 80
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 farmers’ incomes. If the Government plans to increase water prices an integrated package of policies will need to be developed.
A2.5 Project Provinces
73. All of the proposed provinces have 60-70% of the rainfall during the June-September period. Ningxia is the driest province with 194 mm annual rainfall and hence in most need of irrigation, whilst other provinces have a range of annual precipitation of 439-982 mm and irrigation is supplementary to annual rainfall. The number of frost-free days is representative of the length of the growing season in each province and increases from 100-150 in the northeast (Heilongjiang) to 210-365 in the southwest (Yunnan Province).
A2.5.1 Anhui Province.
74. Anhui Province lies within China’s eastern lowlands, with 33% of the province south of the Yangtze River. The proposed project counties are in the northern-central part of the province within the Huai River basin. The alluvial udisols that dominate have high clay content and water-logging, a major issue for the project areas, is common. The main agricultural areas are within these flat plains and are dominated by a winter wheat/summer maize cropping system together with irrigated rice. Supplementary crops include soybean, winter rape seed, cotton, sesame, peanuts, beans, potatoes and vegetables. Since 2005 the province has made organic agriculture, including organic grain production, a priority.
75. With the help of massive investments in infrastructure, flood control, and agricultural technology, Anhui’s farm sector has increasingly diversified and increased output. In 2008 grain production reached a record 30.2 million t, with a mean yield of 4.61 t/ha, below the national average of 4.95 t/ha.24 Average cereal yield amounted to 5.35 t/ha, while the yields of individual crops were 6.24, 4.98, and 4.06 t/ha for rice, wheat, and maize, respectively. The average soybean yield was just 1.22 t/ha. Other than for wheat, all of these yields were below the national average.
All of the proposed subproject areas use groundwater for irrigation, although Linquan County also uses some surface water. Most of the areas will extract more groundwater with the project: the increase in groundwater extraction ranges from 131% in Jieshou County to 1,330% in Mengcheng County. This indicates that attention must be paid to the groundwater balance to avoid possible over-extraction of groundwater. In Linquan County, surface water used after the project will be larger than the past 10-year average available surface water source, which may indicate that either there is not enough surface water for the designed irrigation area or use of more groundwater.
76. Water quality in most areas is suitable for irrigation, ranging from Class I-III according to the Surface Water Quality Classification of China. However, in Woyang County, groundwater quality is classified as Class V and is affected by industrial pollution. Further investigation may be required to see if the groundwater is suitable for irrigation.
A2.5.2 Heilongjiang Province
77. Heilongjiang Province is one of the 16 key grain production bases of China, endowed with extensive arable land and good water resources. Total long-term average annual water resources are 81.03 billion m 3, including 68.6 billion m 3 of surface water and 28.7 billion m 3 of groundwater. The climate is best described as temperate continental with moderately hot summers and extremely cold winters. Mean annual provincial precipitation is 531mm but varies from lower in the north and increasing southward. Within the central agricultural plains
24 China Statistical Yearbook 2009. 81
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 up to 80% of rainfall falls from June to September. The average frost-free period is 100-150 days, necessitating lower-yielding short-season varieties, newly developed varieties, or intensive transplanting methods to shorten time to harvest. Grain production reached 42.3 million t in 2008, equivalent to 8% of the national total of 528 million t, including soybean and tubers. Heilongjiang plans to harvest up to 50.5 million t of grains in 2015 with the improvement of the irrigation works in the grain production centers and incentives introduced by the MWR. Crop yields in Heilongjiang tend to be low with all below both the national average and the average of the six project provinces in 2008. Grain yields averaged just 3.85 t/ha compared to a national average of 4.95 t/ha and project provinces average of 4.75 t/ha. Cereal yields averaged 5.45 t/ha with rice at 6.35 t/ha, wheat 3.75 t/ha, and maize 5.07 t/ha. Soybean yields averaged 1.54 t/ha.
78. Thirteen of the proposed project counties use surface water for irrigation, including Huanan and Qing’an Counties which also use groundwater. The four other counties use groundwater exclusively. For most of those using surface water, demand for water with the project will be reduced: only in Hulin, Dumeng and Huachuan counties will additional water be required with increments of 70%, 70% and 157% respectively. This is unlikely to cause a shortage as surface water sources are abundant. In counties using groundwater irrigation, water consumption after the project will either be decreased or marginally increased since only a small amount of supplementary irrigation is required. Water quality ranges from Class I - IV and is suitable for irrigation. 25
A2.5.3 Henan Province
79. Henan Province is another of the 16 grain production bases. Of the province’s 8.74 million ha of land sown to grain, 60.1% was wheat, the largest area for wheat of all provinces. The main agricultural area is formed by the extensive alluvial plain located in the central and eastern part of the province. A winter wheat/summer maize cropping system dominates but summer crops, including peanuts, soybeans, and cotton, are important alternatives. Irrigated rice accounts for 604,000 ha. In 2008, the province produced 53.7 million t of grain. Average grain yield, at 5.59 t/ha was above both the national average (4.95 t/ha) project provinces average (4.75 t/ha). Average cereal yield was 5.86 t/ha with individual crops averaging 7.33 t/ha for rice, 5.80 t/ha for wheat, 5.73 t/ha for maize, and 1.75 t/ha for soybeans. All of these are above the national and project provinces average
80. Until the 1980s rice was an important crop in the irrigation districts along the Yellow River but declined due to the volume of irrigation water required and poor management, which caused extensive salinity and rising water tables. Rainfall is a prime limiting factor for winter and summer cropping with large annual and seasonal fluctuations in rainfall patterns having a critical impact on crop yields. Supplementary irrigation is therefore required to stabilize yields.
81. All of the proposed project counties in Henan Province use tube-well irrigation with the exception of Qinyang City where both groundwater and surface water are used. Surface water is taken directly from the Yellow River and used when flow is in excess and pumping costs can be saved. With the project, groundwater extraction for irrigation will increase by 25% in Mengzhou City and 57% in Yanjing County. Water quality is generally suitable for agricultural irrigation in the project areas, ranging from Class I-IV.
A2.5.4 Jilin Province
25 The water quality classification system for China (GB3838-2002) is: Class I: headwater and natural reserves; Class II: 1 st class drinking water sources; Class III: 2 nd class drinking water sources; Class IV: for agricultural, industrial use and recreational use, not for human contact; Class V: for agricultural use only 82
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82. Jilin Province is also one of the16 key grain production bases of China. As in Heilongjiang, mono-cropping is the norm, except for vegetables. In 2008, 87.9% of the sown area was devoted to grain crops, and maize accounted for 52.2% of the area sown to grains (including soybeans and tubers). In 2006, the area sown to rice surpassed soybeans as the second most important crop in terms of area, and the gap is widening. In 2008, rice was sown to 658,700 ha, while soybeans were sown to 618,700 ha. Soil quality is variable, but the alluvial areas in the middle of the province are generally fertile.
83. Low population density means that per capita sown area (0.46 ha) is significantly greater than all other provinces except Heilongjiang (0.75 ha) and Inner Mongolia Autonomous Region (0.57 ha). 26 Larger farms, and the potential for significantly larger farms through consolidation in the emerging land contracts market, support the ambitions of agricultural planners to rapidly increase levels of mechanization. In 2008, the provincial government announced an ambitious plan to increase Jilin's annual grain production by more than 5 million t over a 5-year period, from 28.4 million t to over 33.4 million t in 2012. Other than for wheat, average crop yields in Jilin are well above the national averages with a grain yield in 2008 of 6.47 t/ha (compared to the national average of 4.95 t/ha), all cereals 7.35 t/ha, rice 8.79 t/ha, wheat 3.14 t/ha, 7.13 t/ha, and soybeans 1.72 t/ha.
84. Three of the 15 proposed project counties use groundwater for irrigation (including Baicheng where integrated groundwater and surface water are both used). With the project, groundwater extraction for irrigation will increase by 32% in Nong’an County and by 73% in Lishu County project areas. However, these increments will likely not cause significant impacts on the regional groundwater balance since the absolute increase in extraction is insignificant. A significant increment of surface water consumption for irrigation is noted in Taobei County, from 132 million m 3 to 207 million m 3, or 57%. The impact of the project on the surface water balance in that county should be monitored. Water quality in Jilin Province is suitable for irrigation, ranging from Class I-III.
A2.5.5 Ningxia Autonomous Region
85. Agriculture in Ningxia Province is divided into two types: (i) the richer flood plains of the Yellow River, which circumvents the province and provides the prime water resource; and (ii) the poor upland areas of the Loess Plateau in which most agriculture is terraced and has little access to irrigation water. The soil types in Ningxia are mainly loess and silt soils with low calcium content (pH 7.2), low organic matter content (0.8%), and high potassium content (106 ppm). The soil types in the vicinity of the Yellow River irrigation districts are mainly alluvial and are dominated by irrigated warp soils, reflecting the 2000-year history of intensive irrigation and cultivation. Recent efforts to diversify into more profitable crops have increased the area of fruit, including grapes.
86. Ningxia is one of the driest provinces in China with an average rainfall of 180 mm. In addition, winters are long and cold with an average of 140-160 frost-free days. Summers are warm and dry with an evaporation rate of 1,000-1,500 mm some 5-8 times the annual rainfall. Irrigation is therefore an essential component to boost crop yields and take advantage of other positive factors such as available radiation. The main climate constraints to agriculture are drought, frost damage, hail, hot dry winds, and low temperature damage. The area also suffers from frequent sandstorms.
87. Rice is a major crop in the irrigation districts of Ningxia due to its profitability and the availability of water. A continuous deep flooding irrigation method is commonly used in the paddy fields to control salinity. The amount of water used for rice is twice that in other regions of North China where water-saving practices have been introduced and the current irrigation
26 China Statistical Yearbook 2009, Table 12-12. 83
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88. Average grain yield in the province in 2008 was 3.98 t/ha, well below the national average (4.95 t/ha) and the project province average (4.75 t/ha). Average cereal crop yield was 5.31 t/ha with rice 8.27 t/ha, wheat 3.14 t/ha, and maize 7.19 t/ha. The average rice and maize yields were well above both the national and project provinces average. In contrast average soybean yield was extremely low at just 0.69 t/ha.
89. All of the proposed project counties use surface water diverted from the Yellow River through canal systems and three – Helan, Yongning, and Qingtongxia – also use limited amounts of groundwater. Yellow River water has a salt content of 0.4 g/l and is suitable for irrigation. Pumping of groundwater for irrigation is encouraged and piloted in some downstream areas, mainly because of the availability of Yellow River water diverted into the district. The groundwater in this region is recharged by irrigation water resulting in a shallow groundwater table in most of the project counties and causing soil salinity as a result of insufficient or degraded drainage systems.
A2.5.6 Yunnan Province
90. The terrain of Yunnan Province is hilly from west to east with an average elevation of 2,000 masl. Yunnan is China’s most agriculturally diverse province/autonomous region. It’s location in the low latitudes results in abundant radiation, which coupled with annual precipitation in the south of over 1,000 mm/year, supports the greatest diversity of crops of any province. Crops vary from grain production - maize, rice, and winter wheat - and walnuts in the north, to tropical plantations for fruit, tea, rubber, tung oil, pine resin, and bamboo in the south.
91. Generalization about agriculture in proposed project areas is not possible as they are widely distributed and diverse. Land resources are very limited, and cultivated land per capita is only 0.09 ha.27 Subject to water availability, crop selection is essentially dependent on the frost free period, which ranges from 210–220 days in the intermountain valleys of the north, where the project counties are located, upwards. However, due to water shortages, many grain-sown areas are not yet double-cropped despite sufficient radiation and a lengthy frost-free period, indicating the potential to increase cropping intensity through improvements to water management and irrigation systems. In northern Yunnan grain production and forestry dominate. The provincial area sown to grain in 2008 was 68.8% of the total sown area, with 75% of this in cereals. Maize accounted for 44% of all cereal sown area, rice 34%, and wheat 14.6%. 28 The average grain crop yield was just 3.71 t/ha, far less than the national average (4.95 t/ha) and the project provinces average (4.75 t/ha). Similarly the average yield of cereals (4.20 t/ha), rice (6.10 t/ha), wheat (1.95 t/ha), maize (3.99 t/ha), and soybeans (1.98 t/ha) were all less than their respective national and project provinces averages.
92. The proposed project areas are plentiful in surface water resources and there is little need to exploit groundwater although this is done in Yiliang, Shiping and Eryuan County subproject areas. As a result of rehabilitation of irrigation systems and increased irrigation coefficients, water consumption will decrease in all counties. Water quality, ranging from Class I-III, is suitable for irrigation.
A2.6 Climate Change
27 China Statistical Yearbook 2009, Table 12-15. 28 China Statistical yearbook 2009 Table 12-13 and Yunnan Statistical Yearbook 2009. 84
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93. By 2020, temperatures are to likely increase between 0.8-1.5 oC.29 Northern and western China will be impacted by the increase, which will have a positive impact on crop yields. Rainfall will change between -2.5% and +6.5% throughout China. Results of models indicate there will be consistent and progressive shifts to wetter conditions, particularly in northern and western China, although some seasons and southern and eastern regions will experience moderately drier conditions in the 2020s. Beyond 2020, continued increase in temperatures will likely have a negative impact on crop production due to increased evapotranspiration. Hence increased areas of irrigated agriculture are essential to climate change adaptation under current predictions.
94. Increased frequency of ‘extreme’ events will destabilize crop production and ultimately food security. Extrapolation of recent data trends indicates that the frequency and intensity of heat-waves, temperature extremes, and precipitation variations will increase, leading to extreme droughts and/or floods together with destructive storms and ultimately instability of agricultural production.
95. Climate change will likely to have an impact in all of the project provinces due to increased temperature and evapo-transpiration. Increased irrigation areas and improved water use efficiency are key approaches to reducing the negative impacts of climate change in terms of reduced water availability. Specific impacts of climate change in the project area are: (i) reduction of water availability as a result of glacial melt and glacier retreat and (ii) extreme events of floods and droughts as a result of reduction of glacial water/ice storage capacity and consequent sharp fluctuation of river levels affected by seasonal rainfall. This will be felt in provinces depending on Himalayan glaciers for irrigation, including Yunnan, and provinces served by the Yellow River, including Ningxia and Henan. It is therefore import to offset the impacts of climate change on water supply fluctuations, specifically, in the case of Yunnan, by installing irrigation water reservoirs or barrages, and, in the case of Ningxia (and Henan), by optional secondary exploitation of groundwater resources to compensate for periods when the Yellow River flow declines.
A2.7 Government Policies and Plans
96. Various government policies have been implemented or revised in order to support increased grain production and water use efficiency.
A2.7.1 Agriculture and Agro-forestry
97. The basis for China’s agricultural policy initiatives include major policy statements and circulars that are introduced and the actual initiatives that stem from these policy statements, including the Number 1 Documents of the Chinese People’s Congress (CPC) Central Committee, the National Framework for Food Security, the Production Capacity Plan for Increase Grain Production, the New Socialist Countryside Program, and the Agricultural Policy Analysis Laboratory.
98. Awareness of the pressing need to increase food security while raising rural incomes dates back to the earliest years of reform and even during the end of commune era, but only recently was there funding available to address these issues in a more comprehensive manner. Every year since 2004, the Government has initiated policies for rural issues in the Number 1 Document of the CPC Central Committee.30
29 University of East Anglia, 2008. The Impacts of Climate Change on Chinese Agriculture - Phase II, National Level Study: The Impacts of Climate Change on Cereal Production in China , Report to DEFRA (now DECC) and DfID. 30 http://english.cpc.people.com.cn/66102/6860672.html 85
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99. NDRC released the National Framework for Medium-to-Long-Term Food Security (2008-2020) in 2008, which sets out the food production goals for China through 2020. Specifically, the goals include: (i) increase food production efficiency; (ii) promote grain-saving technologies in the growing animal husbandry sector; (iii) strengthen international cooperation (sales) in grains and oils; (iv) improve grain circulation and post-harvest processing systems; (v) improve grain reserve/storage systems; and (vi) improve food processing system.
100. In 2009, the State Council also released a related document called The Production Capacity Plan (2009-2020) for A Nation-wide Increase of 50 Billion Kilogram of Grain . This document provides a blueprint for increasing national grain production by 50 million t to reach 550 million t by 2020, reaching.
101. The New Socialist Countryside Policy 31 was introduced in February 2006 with the aim of improving the livelihood of the rural sector, which has been lagging significantly behind the urban sector over the past 15 years. The package involves multiple initiatives geared towards rural livelihoods and infrastructure in which budgets allocated to the different sectors have been increased substantially 32 . Specific policies introduced under the policy include: (i) promotion of a comprehensive set of policies to upgrade grain production including high quality seed production and use; (ii) balanced fertilizer use; and (iii) provision of funding for comprehensive infrastructure packages with funds that can be used to upgrade rural infrastructure including irrigation infrastructure, rural roads and village roads. The New Socialist Countryside Program is closely linked to the promotion of CAD in rural areas throughout the nation.
102. The National Agricultural Policy Analysis and Decision Support Systems Laboratory is a joint project presided over by the Ministry of Agriculture (MOA), the Ministry of Finance (MOF), and the World Bank. The work of the laboratory is directed by the Institute of Agricultural Economics and Development of the Chinese Academy of Agricultural Sciences. The project was officially launched in October 2003 and serves as an open public platform for agricultural policy evaluation and analysis.
A2.7.2 Agricultural Initiatives for Meeting Policy Goals
103. The comprehensive goals for the programs summarized above reflect the holistic approach represented by the CAD program. Programs are comprised of specific actions or measures implemented within the comprehensive sets of policies including those for FAs, subsidies and agricultural tax cuts, minimum grain prices, research and development, conservation tillage and soil improvement, balanced fertilizer use, agricultural mechanization, IPM, and promotion and standardization of pollution-free and organic produce.
104. The development of more responsive and effective FAs has been a stated goal of rural development planners in China for decades. To achieve this goal and to integrate new and existing FAs into CAD, new initiatives promoting these organizations were passed into law on July 1, 2007. Specialized farmers cooperatives aid members in a variety of ways, including: (i) offering services such as purchasing inputs in bulk for sale at reduced prices to members; (ii) providing each other with assistance in processing, transporting, storing and marketing farm products, and (iii) as a point of information distribution, providing new information related to agricultural production, equipment and other technologies, and advice on operation and farming methods. The latter includes information on the production of new products such as organic products as well as developing new marketing opportunities.
31 http://www.gov.cn/english/special/rd_index.htm 32 China sets goals for building new socialist countrysidehttp://news.xinhuanet.com/English/2005 /29/ content_3987226.htm 86
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105. There are numerous forms of government subsidies. The largest are those providing payments to grain farmers based on grain sown area. These range from CNY35-65/mu from the Central Government. Local governments may add to this. In addition, for grain crops and some economic crops, there are subsidies that cover part of the cost for modern inputs such as high-quality seeds, compound fertilizer and agricultural machinery.
106. Procurement at "protection prices" means that the Government procures set quantities of rice, wheat, maize, soybeans, cotton, rapeseed, sugar, and rubber at a fixed price to support market prices. Associated closely with this policy of providing farmers with a “safety net” in case prices fall too quickly, is the strategy by which central, provincial, and local governments maintain reserves of grains, vegetable oils, cotton, and pork. Taken together, this allows the Government to manage both the price and availability of grain stocks.
107. Central and provincial governments play active roles in research and development in terms of developing sources of funding and increasing funding for research institutes developing crop and livestock varieties with improved quality and yields. In addition, most CAD programs incorporate a research and development component through the use of advisors from provincial or national agricultural universities and research institutes operated by the Academies of Agricultural Sciences.
108. In order to expedite dissemination of conservation tillage ideas and technologies, MOA and NDRC jointly issued The Conservation Tillage Construction Plan (2009-2015) in 2008. Despite the fact that conservation is widely recognized to have significant benefits, the popularity of conservation tillage remains limited. At present, the total area is only 1.5% of the cultivated land area. In response, MOA has initiated a nation-wide program to more widely and effectively promote these technologies. From 2002 to 2009, the total investment for conservation tillage and related programs by central and local governments was CNY200 million and CNY800 million respectively.
109. There are few programs initiated by the MOA that have had as immediate an impact as the balanced fertilizer use program, which recognized that cost savings and ecological benefits can be derived from conducting soil tests on every field, and prescribing the proper amount of N, P and K that should be applied for optimum benefit. Through the MOA and CAD demonstration programs of MOF, more areas are being incorporated into program. As of 2008, there are 1,861 project counties implementing programs providing subsidy support for soil testing for balanced fertilizer assessment. As a result of the 2008-2009 program enhancements, 150 million farmers were provided with free soil assessment and technical help. To date, the total arable land evaluated has reached more than 66.7 million ha.
110. The Law on Promotion of Agricultural Mechanization , 2004, was adopted with the goal of significantly increasing the role of mechanized production systems and post-harvest systems within the agricultural sector. The law underscores the important role of government at all levels in the promotion of a modern mechanized agricultural sector. Firms specializing in agricultural machinery production in accordance with the state provisions are eligible for tax breaks or tax “holidays” for some period after the plant begins operation. Farmers’ purchase price and fuel costs are also subsidized.
111. Since 1980, various forms of IPM research targeting China’s most important crops have been included in many national “key technology” research programs. IPM has also received increasing financial support from the central government but the greatest research funding has come in the last five years. Efforts to date have resulted in numerous IPM programs that seek to combine “natural” control (pheromones, predator/prey relationships) with more conventional disease and infestation mitigation or prevention methods, with three 87
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 main goals of more effective pest and disease control, lower production costs resulting from lower farm chemical costs, and health dividends for consumers (including the export market). By 2020, coverage of all arable land by IPM programs for crop diseases and insect pests is planned to reach 50%.
112. The most recent official policies related to developing pollution-free, green, and organic produce were put into law on August 8, 2005. Since then, MOA has been working to establish a single set of certification and testing standards for organic and "green" agriculture. China’s Certification and Accreditation Administration oversees the licensing and inspection of nearly 30 organic certification companies/centers with re-licensing required every two years.
A2.7.3 Water and Irrigation
113. The revised Water Law, 2002, is a comprehensive document covering all aspects of water resource management and is key to initiatives made in the water sector including river basin water allocation, Yellow River water regulation, water-saving methods, water fees and tariffs, WUAs, management of small-scale irrigation systems, and pollution. Each of these has direct implications for the proposed project.
114. The Water Law defines a strict regulation on the allocation of water in accordance with the water quota. However, more difficult is the monitoring of the amount of water used by the different provinces and counties. Article 45 of the Law provides that regulation, storage and distribution of water be based on a long-term watershed and water supply plan for the river basin water distribution program. Moreover cross-provincial plans are to be submitted to the State Council for approval. The water allocation at the county level and above is according to the approved distribution plan and the annual forecast of water demand and scheduling (Article 46) . The water quota is determined in accordance with the availability of water under the water allocation program based on the volume of water and quota allocated (Article 47).
115. Further to the above Articles a supplementary regulation was released in August 2006 concerning the serious depletion of water reserves in the Yellow River. 33 The regulation provides stricter measures for water allocation and regulation including a more detailed scheduling of water allocation to the 11 provinces within the river basin throughout the year in accordance with water availability based on real time monitoring and not the previous year’s flow records.
116. Article 3 of the Water Law requires governments at all levels to implement water-saving irrigation methods and water-saving technology in agriculture, water storage facilities, water diversion projects, and to take the necessary anti-seepage measures to improve agricultural water use efficiency. The Law stipulates (i) rational use of water including water measurement in accordance with the water plan, (ii) water metering and charging based on a progressive increase in water resources fees, and (iii) supply of water to be charged in accordance with compensation for the cost of a reasonable return.
117. Article 3 of the Water Law also sets a series of measures to improve water charges collection methods through establishment of water user groups, but encourages water tariffs to be maintained at a low rate in order to protect farmers from excessive charges. The above law is complemented by a notice released by the MWR where agricultural water prices should compensate for water production costs, excluding profit and taxes, and water metering should be implemented. 34
33 Decree No.472: Regulations of Yellow River Water Regulation, August 1, 2006 (Not translated) 34 Order No. 4 Water Supply price control approach, January 1, 2004 88
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118. A circular entitled On the Strengthening of Farmer Water User Associations and Constructive Advice reinforcing the concept of farmer-led WUAs was released jointly by MWR, NDRC and the Ministry of Civil Affairs in 2005. 35 The circular provides a set of recommendations to (i) strengthen the building of WUAs, (ii) foster and enhance the awareness and level of farmer self-management, (iii) clear ownership of rural water conservancy facilities, and (iv) establish a modern efficient management system and operational mechanism. Moreover the legal status of WUAs was incorporated under the Farmer Association Policy that came into effect in July 2007. 36
119. Management of small-scale irrigation systems can be applied to the management of irrigation wells and water ponds as well as the small irrigation and drainage canals With regard to the issuance of small-scale rural water conservancy management systems, farmer-led self-management of small scale well-operated irrigation systems, small reservoirs, and irrigation canal systems is encouraged together with formation of intra-village or inter-village small-scale rural water conservancy cooperative organizations whereby subsidies and assets provided by the state can be transferred to the water cooperatives at no charge. 37
120. The Water Law provides that local governments at all levels should strengthen irrigation, drainage, soil and water conservation work, and to promote development of agricultural production in salinity and alkali prone areas. They should also to take measures to control and reduce the groundwater level decline and pollution. Further the Water Pollution Prevention Law , June 1, 2008, provides that groundwater and surface water should be protected by introduction of anti-seepage measures especially for transport or storage of waste water containing toxic pollutants, pathogens, sewage and other wastes (Article 36). The law forbids extraction of water from mixed aquifer layers which have been polluted (Article 37), forbids the use of non-compliant pesticides (Article 47), and requires rational use of pesticides and fertilizers to prevent water pollution (Article 48).
A2.7.4 Social
121. The history of anti-poverty policy in China is considered a success story. The decline in mass poverty achieved as a result of agrarian reforms in the first half of the 1980s meant a reduction by half of the number of Chinese living in poverty. Since the mid-1980s, the Government has undertaken targeted structural measures to combat rural poverty. These measures have been coupled with the creation of general institutional conditions at various local levels that have enabled the implementation of anti-poverty programs. The development of such programs can be traced through a phase of structural reforms (1979-85), a regional development approach (1986-93), the so-called 8/7 plan (aiming at lifting 80 million people out of absolute poverty within the seven years from 1994 to 2000, and a 10-year program (2001 to 2010). At the start of the 21 st century, the Government continued its efforts to combat rural poverty by concentrating its focus on areas containing ethnic minorities, former revolutionary bases, border regions, and destitute parts of the central and western regions. As the Government adopted its new ten-year poverty strategy in 2001, the number of people living in poverty in China was 32.1 million, as defined by the national poverty line adjusted for inflation (CNY625/capita net rural income with 2000 prices). Under this strategy 592 key counties were selected. Together with poor villages in non-key counties, these areas are eligible for national poverty funding. Priority was given to remote and mountainous areas, minority areas and areas exhibiting severe poverty. The selection of these key counties was not only based on income, but also on social, geographical and environmental conditions.
35 Water, agriculture [2005] Circular No. 502 36 http://news.xinhuanet.com/english/2009-12/16/content_12658517.htm 37 Recommendations on the Implementation of Reform on Management System for Small-scale Rural Water Works, Shuinong [2003] No.603 (not translated) 89
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The methodology underlying this new strategy is referred to as county poverty alleviation planning, which has its basis in the village, using the local knowledge of village communities to identify sustainable income and employment generation activities for the inclusion of these indicators in a village poverty reduction plan. In 2009, a new anti-poverty standard was implemented benefiting low-income people in the countryside. According to this new standard, per capita subsidy was increased to CNY1,196 per year and 40.07 million people are covered. 38
122. China pursues a policy of regional autonomy for minorities. Five provinces are designated as autonomous regions - Tibet, Xinjiang, Inner Mongolia, Guangxi and Ningxia. Ethnic or cultural diversity is officially recognized through designation of 56 nationalities, including the Han majority nationality and 55 minority nationalities whose status is protected by the Chinese constitution and other legislation. The minority nationalities vary in their interactions with the broader Chinese society and economy. Some minority nationalities are highly acculturated into the social mainstream and wholly integrated into the economic system. Such groups may maintain distinctive customs only for holidays, ceremonial occasions, or for promotion of tourism – their lives otherwise may not be distinguishable from that of their Han neighbors. Other groups in frontier areas, by contrast, continue to live in more traditional ways, or continue to rely primarily on subsistence-level activities with little involvement in the broader economy. China’s poverty alleviation strategy (2001-2010) concentrates on central and western regions of China, with priority given to minority and border areas. To accelerate the development of the Western region and to reduce regional and national poverty, the particular needs and circumstances of minorities is integrated in the design and implementation of planning strategies. The success of the Western Region Development Strategy and its objective of further poverty reduction will depend on the degree to which minorities participate in the provincial, prefectural and county level in the design and implementation of these strategies.
123. In recent years, the Government has made fairness and justice, including gender equality, an important part of its efforts to build a harmonious socialist society. This is formulated in the Government’s White Paper on Gender Equality and Women’s Development in China , published in August 2005 to commemorate the 10th anniversary of the Beijing Declaration and the Platform for Action adopted at the Fourth United Nations (UN) World Conference on Women held in Beijing in 1995. The high-level commitment to gender equality is reflected in the Chinese Constitution and in many of the policies and legislative measures adopted by the Government since 1949, and especially in the 1990s. More recently, a spate of legislation from the Law on the Protection of Rights and Interests of Women, 1992, to the revised Marriage Law , 2001, have enshrined both the general principle of legal equality and special measures to promote gender equity by focusing on areas where women are disadvantaged. The commitment of the Chinese government to gender equality is expressed in the Program for the Development of Chinese Women (2001-2010) . The plan addresses six fields in which the development of women is to be promoted: (i) women and economy; (ii) participation of women in administration and decision-making; (iii) women and education; (iv) women and health; (v) women and law; and (vi) women and the environment . Reform policies gave the All China Women’s Federation (ACWF) a new role. It formulates the problems facing women and has contact and advocacy functions, attempting to support women, especially in their careers. Funding and personnel have, however, been cut back. At the same time, the beginnings of a non-state run, active women’s movement in China are developing, aiming to reach a wide audience in different social domains.
38 Wei Jianguo (2009), “China’s Development and Poverty Reduction: Modes and Experience”, Paper contributed to the International Conference on “Sharing Experiences to Promote Learning on Development Partnerships for Growth and Poverty Reduction”, Beijing: October 28-29, 2009 90
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Appendix 3 Problem Tree Analysis
Reduced food Depressed farm security incomes
Low productivity of irrigated agriculture in the project area
Inadequate irrigation and drainage infrastructure Deficient agricultural technology and practices Weak project management capacity
Incomplete/ deteriorated field irrigation & Low/ declining soil quality due to uneven fields, Low CAD staff capacity at drainage systems low/declining organic matter, poor fertilizer use, and provincial and lower levels increased acidity Limited maintenance of existing irrigation & Limited training in project drainage systems Poor quality field and access roads management and implementation Limited use of water-saving technologies Limited farmer knowledge of appropriate irrigated agricultural technologies Lack of CAD office equipment and project monitoring systems Lack of/weak water delivery and water user at provincial and lower levels organizations with limited, if any, farmer Low quality and limited inputs including seeds/ involvement seedlings and modern varieties, farm mechanization, and modern pest management Poor management of water resources including over-extraction of surface and Lack of effective farmer associations/cooperatives groundwater and induced salinity resulting in lack of market access for farmers CAD program Low and inappropriate basis for water tariffs Limited structures for crop protection from wind and in part due to lack of water measurement low temperatures equipment
Limited government financial resources at provincial and lower levels 91
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Appendix 4 Development Coordination
A4.1 Major Development Partners: Strategic Foci and Key Activities
1. Many diverse ongoing projects and programs from multilateral and bilateral development partners target the agriculture and natural resources (including water) sector in the PRC, which is a major priority for the Government. The range of project activities includes infrastructure investment, capacity development, strategy development, and policy reforms. The development partners are committed to supporting the Government’s ongoing 11 th Five Year Plan (FYP), 2006-2010, and thus are generally coordinated around the 11 th FYP. The World Bank is the major supporter of agriculture and irrigation development and has approved projects to support Comprehensive Agriculture Development (CAD), promotion of participatory irrigation management (PIM) development of water users associations (WUAs), rural training and advisory services for farmers, and capacity building for provincial and lower-level government cadres. The Asian Development Bank (ADB) has supported a number of Technical Assistance (TA) and Loan Projects to assist the PRC in integrated water resources management, flood management, wetland management, sustainable irrigated and rainfed agriculture development, wetland management, and environmental and ecosystem management.
2. Other smaller, but extremely important contributions have been provided by the International Fund for Agricultural Development (IFAD) with cofinancing from the World Food Programme (WFP) who have focused on the specific needs of the rural poor, and the Department for International Development (DfID) of the UK and the Australian Agency for International Development, who focus on improved management of the water resources sector.
3. External support for CAD has, to date, come predominantly from the World Bank, particularly through its Irrigated Agriculture Intensification Projects, which has provided over $500 million of loans and grants including assistance for mainstreaming climate change adaptation. In addition, DfID has made a limited, but never-the-less extremely important contribution, through its Pro-Poor Rural Water Resources Reform Project, which assisted both the State Office for Comprehensive Agricultural Development (SOCAD) and the Ministry of Water Resources (MWR) in the formation of WUAs. The proposed Project is ADB’s first investment in CAD and consequently the project design will reflect significantly on the experience of these development partners.
4. During project preparation, the Consultant has reviewed the relevant project preparation and completion documents of the major development partners (Table A4) and distilled the lessons learned from past agriculture and natural resources projects for incorporation into the design of the proposed Project.
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TableA4: External Assistance to the Sector Sectors and Development Duration Amount Project Name Themes Partner ($ million) Agriculture ADB-Loan Fujian Soil Conservation and Rural Development 1995-2002 53.00 and natural West Henan Agricultural Development Project 2001-2007 69.23 resources Yellow River Flood Management 2001-2008 150.00 Sustainable Songhua River Flood Management Project 2002-2009 150.00 economic Efficient Utilization of Agricultural Wastes Project 2002-2009 33.12 growth Fujian Soil Conservation and Rural Development II 2004-2010 80.00 Gender and Sanjiang Plain Wetlands Protection 2005-2012 15.00 development Hunan Flood Management Sector 2006-2013 200.00 Environmental Henan Sustainable Agriculture and Productivity sustainability Improvement 2007-2013 66.70 Capacity Dryland Sustainable Agriculture 2008-2014 83.00 development Ningxia Integrated Ecosystem and Agriculture Development 2008-2014 100.00 Integrated Ecosystem and Water Resources Management in Baiyangdian Catchment 2008-2014 100.00 Qingdao Water Resources and Wetland Protection 2008-2014 45.00 Guiyang Integrated Water Resources Management 2009-2015 150.00 Shaanxi Qinling Biodiversity Conservation and Demonstration 2009-2015 40.00 Shanxi Integrated Agricultural Development Project 2009-2016 100.00 Forestry and Ecological Restoration in Three tbd 100.00 Northwest Provinces 2010-2014 Qinghai Rural Water Resources Management 2010-2015 60.00 Integrated Renewable Biomass Energy Development Sector Project 2010-2016 90.00 ADB-TA Preparing National Strategy for Soil and Water Conservation 2000-2001 0.80 Strategic Planning for the Preparation of Yellow River Law 2001-2002 0.97 PRC-GEF Partnership on Land Degradation in Dryland Ecosystems 2001-2002 1.15 Flood Management Strategy 2004-2005 0.50 Capacity Building to Combat Land Degradation Project (under the PRC-GEF Partnership) a 2004-2007 8.70 River Basin Water Resources Allocation and Management Policy 2008-2010 0.75 Study for Drought Management 2009-2010 0.40 Study on Government Expenditure in Agriculture Development 2009-2011 1.00
World Bank Yangtze Basin Water Resources Project 1995-2005 210.00 Gansu Hexi Corridor Project 1996-2001 150.00 Tarim Basin Irrigation Project II 1998-2003 74.00 Irrigated Agriculture Intensification Project II 1998-2005 300.00 Second Loess Plateau Watershed Rehabilitation Project 1999-2004 150.00 Guanzhong Irrigation Improvement Project 1999-2004 100.00 Water Conservancy Project 2000-2005 74.00 Jiangxi Integrated Agricultural Modernization Project 2003-2008 100.00 Poor Rural Community Development Project 2005-2009 100.00 Irrigated Agriculture Intensification Project III 2006-2010 200.00 Mainstreaming Climate Change Adaptation in Irrigated Agriculture Project 2008-2010 5.00 Eco-farming Project 2009-2014 120.00
IFAD/WFP b South Gansu Poverty Reduction Programme 2006-2012 33.10 Environment Conservation and Poverty-Reduction Programme in Ningxia and Shanxi 2005-2011 36.30 Southwest Anhui Integrated Agriculture Development Project 1997-2003 29.30
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Sectors and Development Duration Amount Project Name Themes Partner ($ million) DfID Water Resources Demand Management 2005-2010 15.00 Pro-Poor Rural Water Resources Reform Project (Phase I & II) 2004-2009 12.50 China Watershed Management Project 2003-2008 7.42
AusAID c Water Entitlement and Trading Actability - Phase 2 2007 2.08 Water Entitlement and Trading Actability Water and Agricultural Management in Hebei Project 2002-2007 14.09 ADB = Asian Development Bank, AusAID = Australian Agency for International Development, DfID = Department for International Development (United Kingdom), IFAD = International Fund for Agricultural Development, WFP = World Food Programme a Due to the size of the grant this Technical Assistance was processed as if it were a loan. b Loan amounts include WFP cofinancing. c Financing is shown in Australian dollars not US. Source: Relevant documents of Development Agencies, including their websites.
A4.2 Institutional Arrangements and Processes for Development Coordination
5. The government coordinates all external assistance from development partners through the National Development and Reform Commission (NDRC) and through ministries appointed as “window agencies” to work with each organization. The Ministry of Finance serves ADB and the World Bank. The NDRC and window agencies work together to ensure that external assistance supports the five-year plans, serves the PRC’s needs, and suits the interests and expertise of each organization.
6. ADB and other development partners work together, formally and informally. They invite each other to conferences and workshops, along with the government. International organizations also meet informally to share information and discuss common interests. ADB also works formally and informally with NGOs and other civil society stakeholders. By building links between the government and civil society, ADB can help mobilize all parties' strengths while improving ADB's own effectiveness, and reinforcing the government's aims to strengthen the role of civil society.
7. The proposed Project offers an unusual opportunity for collaboration between ADB, the World Bank and DfID since the World Bank has extensive experience of CAD and DfID has worked closely with the government on the establishment of WUAs. The Consultant has worked closely with both of these organizations in formulating the Project and ADB expects to have further close collaboration during loan processing and implementation, including the possibility of participating in each other’s review missions.
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Appendix 5 Lessons Learned
1. ADB’s experience with sector projects in the PRC, in particular with the Songhua and Hunan Flood Management Sector Projects has highlighted the difficulty of implementing this specific loan modality. These relate in particular to the operational model used by the National Reform and Development Commission (NDRC), which limits the flexibility in subproject selection and processing that is inherent in the sector loan modality. As a result ADB sector projects have an implicit contradiction of having been fully prepared and approved under PRC regulations while the lending agency is awaiting final feasibility studies and due diligence documents. This contradiction has been the cause of significant delays in project implementation and an alternative approach is needed to speed up the process.
2. The Project Completion Report for the ADB-supported Hainan Agriculture and Natural Resources Development Project 1 highlighted several lessons learned of relevance to the proposed Project. These include that: (i) overly ambitious fixed targets set at appraisal precluded a flexible approach to achieve the overall goal, making the project supply-driven rather than market-driven; (ii) a strong sense of ownership is an important factor in effectively implementing a project and this can be best ensured by supporting the project management office to be fully effective; and (iii) strong Project Leading Groups are essential to provide direction and ensure the success of the project.
3. Recent Reports and Recommendations (RRPs) of proposed ADB-supported projects 2 in the agricultural and natural resources sector have listed a fairly standard set of lessons learned that are all of relevance to the proposed Project. These include: (i) the need for stakeholder involvement and community participation in planning and implementation; (ii) flexibility in design that allows stakeholders to revise planned activities to respond to market demand; (iii) strong ownership by project stakeholders including private sector enterprises, farmers, and local government implementing agencies; (iv) capacity building in advisory and other support services to facilitate the adoption of new technologies and practices, particularly among small-scale and poor farmers; (v) promotion of sustainable farming techniques particularly on marginal lands; (vi) an effective and robust project performance monitoring system should be established early in project implementation to ensure the collection of adequate information required for timely corrective measures; (vii) timely and adequate provision of counterpart funds and staff resources by provincial and local governments to avoid delays in project implementation; (viii) proper administration of bidding processes in accordance with agreed procedures; and (ix) effective provincial and lower level project leading groups that can provide the necessary leadership and guidance in project implementation.
1 ADB, 2004, Project Completion Report on the Hainan Agriculture and Natural Resources Development Project (Loan No. 1372-PRC), Manila, Philippines. 2 See for example: ADB, 2008, Report and Recommendation of the President to the Board of Directors on a Proposed Loan and Technical Assistance Grant to the People’s Republic of China: Ningxia Integrated Ecosystem and Agricultural Development Project . Manila, (Loan No. __-PRC, $100 million, approved __. ADB, 2008, Report and Recommendation of the President to the Board of Directors on a Proposed Loan and Administration of Grant to the People’s Republic of China: Dryland Sustainable Agriculture Project . Manila, (Loan No. __-PRC, $83 million, approved __. ADB, 2009, Report and Recommendation of the President to the Board of Directors on a Proposed Loan and Administration of Grant to the People’s Republic of China: Shaanxi Qinling Biodiversity Conservation and Demonstration Project . Manila, (Loan No. __-PRC, $40 million, approved __. ADB, 2009, Report and Recommendation of the President to the Board of Directors on a Proposed Loan and Administration of Grants to the People’s Republic of China: Shanxi Integrated Agricultural Development Project . Manila, (Loan No. __-PRC, $100 million, approved __. 95
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4. The recent Country Assistance Program Evaluation3 highlights that the main lesson learned from the PRC experience is that assistance programs succeed if the client demonstrates strong ownership, effective capacity, and good policies but also the reluctance of the PRC to borrow for agricultural projects on ordinary capital resources terms due to insufficient financial rates of return and difficulty servicing debt.
5. With respect to poverty impact the ADB Working Group on Rural Poverty 4 suggested that interventions to improve the productivity of land and other natural resources through irrigation, better management of water, and other environment-based interventions would impact significantly on the poor since poor farmers typically work on low productive marginal land with insufficient moisture and other soil deficiencies, which are being further aggravated by changing climate patterns.
6. The Implementation Completion Report for the World Bank-supported Irrigated Agriculture Intensification II Project 5 (IAIL2) reported that the key lessons learned included (i) the need for well-planned and designed subprojects, (ii) the success and need to follow up further on self-financing irrigation and drainage districts (SIDDs), (iii) the critical nature of adequate and timely counterpart funds, (iv) active participation and effective coordination and management by government leaders at all levels was critical in ensuring smooth project implementation and in avoiding delays, (v) the lack of practical or price advantage reasons for the use of International Competitive Bidding (ICB) procedures, and (vi) the need to increase farmers’ incomes through the introduction of value-added production and marketability.
7. More specifically, the sub-projects supported under IAIL2 were small scale, well planned and easily designed, integrating irrigation and drainage with forestry. They proved to be effective and capable of being implemented rapidly and achieving the desired benefits. Replication over the remaining large tracts of low- and medium-yield irrigated areas throughout the country was concluded to be possible.
8. SIDDs were introduced as a pilot project and were considered generally successful although promotion on a larger scale was assessed to require careful groundwork and, in particular, the support of local governments and farmers. Based on IAIL2 experience, future developments were proposed to include provision of appropriate incentives to encourage establishment of WUAs and to ensure their sustainable operation and maintenance (O&M). Water Supply Company’s (WSC) primary responsibility for water delivery systems at the main and branch canal level was proposed only to be promoted if there are no inherent problems with transfer of assets financial viability, staff retrenchment, and liability for social welfare support of retired staff.
9. IAIL2 faced serious problems due to the requirement to use ICB for procurement of equipment and Bank missions repeatedly faced strong representations from the provincial offices to simplify or waive ICB requirements to save expense and time.
10. Finally the positive effects of supporting non-grain production to meet changing market needs was clearly demonstrated where grain production was less attractive. Promotion of value-added production systems – such as green, non-polluted and organic food – and of specialized farmer professional associations or cooperative enterprises was proposed for future similar projects.
3 ADB, 2007, Country Assistance Program Evaluation for the People’s Republic of China . Operations Evaluation Department, Manila. 4 ADB, Working Group on Rural Poverty, Rural Poverty Reduction and Inclusive Growth Report, Manila. 5 World Bank, 2005, Implementation Completion Report on a Loan in the Amount of US$300 million to the People’s Republic of China for the Irrigated Agriculture Intensification II Project , Rural Development and Natural Resources Sector Unit, East Asia and Pacific Region. 96
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11. The Irrigated Agriculture Intensification III Project 6 (IAIL3) incorporated the specific lessons learned from previous Bank-financed water resources in the PRC, including: (i) active support and participation by leaders at all levels and effective inter-agency coordination and management are essential; (ii) irrigation system management should be based on hydraulic units and not on political or administrative boundaries; (iii) expansion of the largely successful SIDD concept and WUAs depends on local government and farmer support; (iv)project design should support the “user pays” principle; (v) user/farmer should be explicitly built into project planning, costs, implementation, and operation; and (v) project design should include strengthening the capacity of provincial and local Water Resources Bureaus. In addition emphasis was placed on the need to increase water use efficiency and productivity in technical and economic terms by a combination of rehabilitating existing infrastructure, much of which was never completed or has deteriorated over time, and reducing evapotranspiration through the use of micro-irrigation technologies, plastic and organic mulch, plastic tunnels and greenhouses, and conversion to crops that use less water. Relatively small investments to improve these facilities can produce significant gains in irrigation efficiency.
12. The appraisal document for mainstreaming climate change adaptation into IAIP III 7 identified two categories of adaptation measures that should be promoted: (i) modification of current practices to adapt to changed climate trends; and (ii) opportunistic search for practices favored by global warming which will also benefit humans and the ecological environment. However, it was noted that current knowledge of adaptation and adaptive capacity is generally insufficient for rigorous evaluation of planned adaptation options, measures, and policies.
13. DfID, through its recently completed Pro-Poor Rural Water Resources Reform Project (Phase I & II), has been supporting World Bank efforts in WUA development in particular by (i) increasing the government’s capacity and commitment to management reforms for small-scale irrigation facilities; (ii) promoting sustainability and equity; and (iii) maximizing benefits to, and participation of, small farmers. The main accomplishments included (i) WUA establishment guidelines were developed; (ii) lessons learned and best practices were documented; and (iii) participatory monitoring and evaluation systems were established. The success of WUAs was found to be dependent of the clear establishment of principles, including (i) being democratic and self-organized; (ii) being clearly based on hydrological units; and (iii) measuring and charging for water on a volumetric basis.
14. The DfID-supported Water Resources Demand Management Assistance Project 8 demonstrated the importance of working on basis of the whole river basin with respect to planning and developing institutional capacity while concentrating on a more localized area in terms of developing improved groundwater monitoring equipment, procedures and training. The focus on agricultural irrigation in pilot areas, with the aim of improving irrigation efficiency/demand management, was on (i) irrigation scheduling; (ii) crop selection; (iii) review of the irrigation norms system; field size adjustments; (iv) agronomic trials; (v) flow measurement in canals; (vi) canal lining; (vii) canal control structures and flow measurement works; and (viii) use of IC control systems on the delivery system of tubewells. 9
6 World Bank, 2005, Project Appraisal Document on a Proposed Loan in the amount of US$200 million to the People’s Republic of China for an Irrigated Agriculture Intensification III Project , Rural Development and Natural Resources Sector Unit, East Asia and Pacific Region. 7 World Bank, 2008, Project Appraisal Document on a Proposed Grant from the Special Climate Change Fund in the amount of US$5.0 million to the People’s Republic of China for a Mainstreaming Climate Change Adaptation in Irrigated Agriculture Project , Rural Development, Natural Resources and Environment Sector Unit, Sustainable Development Department, East Asia and Pacific Region. 8 DfID, 2009, Water Resources Demand Management Assistance Project, 2005-2010 , Project Summary. 9 IC cards are electronic tokens that define the water assigned to a farmer based on a water purchase system. 97
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15. In order to address the problem of loan modality the standard project loan modality is adopted with sufficient flexibility incorporated into the key issues of due diligence for environment, ethnic minorities, and resettlement where problems might be encountered during detailed subproject preparation. While each of these aspects is investigated to the extent possible, frameworks are specified to allow the implementing agencies to prepare, in the same manner as for a sector loan, the additional documents that might be required for a specific subproject.
16. With respect to the lessons learned from previous ADB projects these are addressed by relying predominantly on the CAD model, which emphasizes that the county-level CAD offices and beneficiary farmers should have a strong role in the design of the subprojects an ensuring that the targets are not over-ambitious. Moreover the selected provinces and counties are required to have effective PLGs. The project design includes key areas of capacity development, promotion of sustainable farming, and development of an effective project monitoring performance system, all of which were developed in response to the perceived needs of the EA and IA. The recommendations relating to IAIL2 are incorporated into the proposed project through adoption of a similar approach to that used in the World Bank’s IAIL3 project.
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Appendix 6 Key Features of County-Level Projects
Map A6.1: Location of Project Counties/Cities in Anhui Province
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Map A6.2: Location of Project Counties/Cities in Heilongjiang Province
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Map A6.3: Location of Project Counties/Cities in Henan Province
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Map A6.4: Location of Project Counties/Cities in Jilin Province
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Map A6.5: Location of Project Counties/Cities in Ningxia Autonomous Region
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Map A6.6: Location of Project Counties/Cities in Yunan Province
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Table A6.1: Key Features of Subproject Areas (part 1)
Current Planned Existing Cropping Sub- Culti- Main Canal Branch Canal Irrigated Area Irrigated Area WUAs Intensity Current Crop Areas (ha) Province/ Irrigation project vated Length (km) Length (km) No. County (ha) (ha) (no.) (%) City District Area Area a Tube a Tube b (ha) (ha) Surface Surface w/o With w/o With w/o With Grain Cash Wheat Maize Rice well well Anhui - 1 Fuyang Jieshou Well 3,360 2,353 - 50 - 2,276 0 - - - - 188 197 4,360 58 1,960 1,840 0 2 Fuyang Taihe Well 3,406 2,353 - 100 - 2,250 0 - - - - 189 198 4,379 78 2,329 662 0 3 Fuyang Funan Well 3,249 2,166 - 12 - 2,105 0 - - - - 185 190 3,671 341 2,000 1,436 0 4 Fuyang Linquan Well 3,000 2,353 400 200 600 1,650 0 5.0 6.0 12.0 18.0 188 198 3,955 468 2,050 350 950 5 Fuyang Yinquan Well 3,530 2,353 - 200 - 2,250 0 - - - - 189 198 4,379 78 2,329 661 0 6 Fuyang Yingzhou Well 3,240 2,160 - 350 - 2,097 0 - - - - 196 203 4,000 225 2,050 1,500 0 7 Bozhou Mengcheng Well 3,050 2,287 - 80 - 2,225 0 - 2.7 - - 189 198 3,653 663 2,196 377 0 8 Bozhou Guoyang Well 3,233 2,287 - 65 - 2,230 0 - - - - 189 198 3,719 606 2,260 388 0 Heilong-
jiang 9 Harbin Binxian Erlongshan 1,390 1,200 1,200 - 1,200 - 1 36 36 26 26 100 100 1,200 - - - 1,200 10 Qiqihaer Fuyu Well 1,240 1,000 - 110 1,000 0 100 100 1,000 - - 730 - 11 Mudan- Hailin Xin’an 1,360 1,000 1,000 - 1,000 - 2 2.8 2.8 16.5 16.5 100 100 1,000 - - - 1,000 jiang 12 Mudan- Ning’an Bohai 1,340 1,000 1,000 - 1,000 - 3 1.8 1.8 24.5 24.5 100 100 1,000 - - - 1,000 jiang 13 Jiamusi Huachuan Xinhegong 1,240 1,000 1,000 - 1,000 - 0 25 25 14 23 100 100 1,000 - - - 1,000 14 Jiamusi Huanan Xiangyang 1,362 1,000 900 160 900 160 3 50 50 168 168 100 100 1,000 - - - 1,000 15 Jiamusi Fujin Xingfu 1,266 1,000 1,000 - 1,000 - 0 8.8 8.8 17 17 100 100 1,000 - - - 1,000 16 Suihua Qing’an Lanhe 1,313 1,000 986 200 986 700 0 - - - - 100 100 1,000 - - - 1,000 17 Suihua Wangkui Weixing 1,413 1,000 1,000 - 1,000 - 0 3 3 12 12 100 100 1,000 - - - 1,000 18 Daqing Dumeng Zhuo’erdun 1,430 1,000 1,000 - 1,000 - 0 6.1 6.1 5 31 100 100 1,000 - - - 1,000 19 Daqing Saertu Well 1,360 1,070 - - 1,150 0 100 100 1063 - - - - 20 Hegang Luobei Fengxiang 1,087 1,000 1,000 - 1,000 - 1 10.6 10.6 16 16 100 100 1,000 - - - 1,000 21 Hegang Suibin Aolai 1,340 1,000 1,000 - 1,000 - 1 5 5 14 14 100 100 1,000 - - - 1,000 22 Shuaya- Raohe Zhengbao- 1,380 1,000 1,000 - 1,000 - 0 11.4 11.4 25.2 25.2 100 100 1,000 - - - 1,000 shan dao 23 Shuaya- Baoqing Longtou- 1,172 1,000 - - 1,000 - 0 2 2 0 7.5 100 100 1,000 - - - - shan qiao 24 Jixi Hulin Hutou 1,120 1,000 900 160 900 320 0 10.5 10.5 13 15 100 100 1,000 - - - 1,000 25 Heihe Nenjiang Well 1,500 1,000 - - - 1,000 0 - - - - na na 1,000 - - - - Henan 26 Zhengzhou Zhongmou Well 2,730 2,000 - 504 - 2,000 0 - - - - 180 189 2,400 1,200 1,400 1,000 0 27 Zhengzhou Xinzheng Well 2,888 2,000 - 1,040 - 2,000 0 - - - - 147 167 2,154 777 1,058 1,096 0
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Current Planned Existing Cropping Sub- Culti- Main Canal Branch Canal Irrigated Area Irrigated Area WUAs Intensity Current Crop Areas (ha) Province/ Irrigation project vated Length (km) Length (km) No. County (ha) (ha) (no.) (%) City District Area Area Tube Tube (ha) (ha) Surface a Surface a w/o With w/o With w/o With Grain b Cash Wheat Maize Rice well well 28 Kaifeng Lankao Well 2,085 1,333 - 550 - 1,333 0 - - - - 179 199 3,286 294 1,785 1,501 0 29 Kaifeng Qixian Well 2,608 2,000 - 2,000 - 2,000 0 - - - - 180 200 2,678 922 1,644 1,034 0 30 Kaifeng Kaifeng Well 2,260 2,000 - 174 - 2,000 0 - - - - 170 200 2,750 650 1,850 900 0 31 Xinxiang Yanjing Well 2,282 2,000 - 772 - 2,000 0 - - - - 170 191 2,400 1,000 1,800 600 0 32 Xinxiang Changyuan Well 2,857 2,000 - 838 - 1,740 0 6.3 6.3 15.6 15.6 192 198 2,930 909 1,838 1,093 0 33 Jiaozuo Qinyang Well + 3,414 2,000 500 1,740 500 1,740 0 0 0 0 0 194 196 3,780 100 1,900 1,880 0 Guangli 34 Jiaozuo Mengzhou Well 2,516 2,000 - 1,236 - 2,000 0 - - - - 194 196 3,780 100 1,900 1,880 0 Jilin 35 Changchun Yushu Yanqing 5,460 1,333 800 - 1,333 - 0 18.8 18.8 7.6 7.6 100 100 1,333 0 0 0 1,333 36 Changchun Jiutai Yinmahe 2,000 1,333 1,013 - 1,333 - 2 3.6 3.6 14.7 14.7 100 100 1,333 0 0 0 1,333 37 Changchun Dehui Songmu 1,800 1,333 1,333 - 1,333 - 5 36.9 36.9 90.0 186.2 100 100 1,333 0 0 0 1,333 38 Changchun Shuang- Shuang- 1,500 1,000 1,000 - 1,000 - 0 29.7 29.7 8.5 8.5 100 100 1,000 0 0 0 1,000 yang yang 39 Changchun Nong’an Well 2,828 1,000 - 200 - 1,000 1 0 0 0 0 100 100 1,000 0 0 1,000 - 40 Jilin Changyi Tuchengzi 1,848 669 669 - 669 - 0 0.9 0.9 8.5 8.5 100 100 669 0 0 0 669 41 Jilin Yongji Xingxing- 1,650 1,000 1,000 - 1,000 - 1 8.5 8.5 13.5 13.5 100 100 1,000 0 0 0 1,000 shao 42 Songyuan Fuyu Yijiadian 3,610 1,000 1,000 - 1,000 - 1 5.0 5.0 13.4 13.4 100 100 1,000 0 0 0 1,000 43 Siping Lishu Well 1,350 1,000 - 48 - 992 0 0 0 0 0 100 100 1,000 0 0 1,000 0 44 Liaoyuan Dongfeng Hengdaohe 3,158 1,333 1,333 1,333 - 1 2.8 2.8 151.4 151.4 100 100 1,333 0 0 1,333 45 Liaoyuan Dongliao Well 3,280 1,000 667 - 667 - 0 18.4 18.4 14.6 14.6 100 100 1,000 0 0 333 667 46 Tonghua Meihekou Hailong 5,330 1,333 1,333 - 1,333 - 0 28.0 28.0 63.3 63.3 100 100 1,333 0 0 0 1,333 47 Tonghua Liuhe Heping 3,560 1,333 1,333 - 1,333 - 1 19.0 19.0 64.0 81.8 100 100 1,333 0 0 0 1,333 48 Tonghua Huinan Huifahe 2,225 1,333 1,208 - 1,333 - 0 12.0 12.0 38.5 38.5 100 100 1,333 0 0 0 1,333 49 Baicheng Taobei TaoErhe 2,100 1,000 817 0 817 516 1 181.5 181.5 24.4 24.4 100 100 1,000 0 0 0 1,000 Ningxia 50 Yinchuan Helan Qingtongxia 1,867 1,494 1,614 35 1,634 45 5 8.4 8.4 23.5 23.5 114 116 1,568 136 527 303 738 51 Yinchuan Yongning Qingtongxia 1,867 1,494 1,784 16 1,936 16 4 8.0 8.0 21.0 21.0 116 115 1,547 191 615 426 506 52 Yinchuan Lingwu Qingtongxia 1,867 1,434 40 - 75 - 4 35.0 35.0 19.5 19.5 114 114 1,558 73 495 473 590 53 Wuzhong Qingtong- Qingtongxia 1,867 1,497 1,374 120 1,350 144 2 9.0 9.0 13.8 13.8 111 120 1,485 215 427 171 855 xia 54 Wuzhong Wuzhong Qingtongxia 1,867 1,494 1,494 - 1,494 - 7 11.0 11.0 38.4 38.4 113 115 1,392 306 514 490 388 55 Zhongwei Zhongwei Weining 1,867 1,498 1,494 - 1,494 - 10 15.0 15.0 22.0 22.0 104 117 1,330 229 150 359 821 56 Zhongwei Zhongning Weining 1,867 1,453 1,350 - 1,350 - 7 43.0 43.0 4.6 4.6 111 120 1,156 463 413 474 269 57 Nongken Pingjibao & Qingtongxia 1,867 1,506 1,333 - 1,363 - 5 4.5 4.5 3.6 3.6 108 112 1,426 207 316 842 268 Nanliang cattle farm 106
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Current Planned Existing Cropping Sub- Culti- Main Canal Branch Canal Irrigated Area Irrigated Area WUAs Intensity Current Crop Areas (ha) Province/ Irrigation project vated Length (km) Length (km) No. County (ha) (ha) (no.) (%) City District Area Area Tube Tube (ha) (ha) Surface a Surface a w/o With w/o With w/o With Grain b Cash Wheat Maize Rice well well Yunnan 58 Kunming Yiliang Nanpanjiang 49,480 1,741 927 27 1,714 27 0 32.9 41.3 46.8 74.5 153 174 2,513 146 265 364 1,146 River 59 Kunming Songming Milianghe 15,510 1,405 495 - 1,405 - 8 32.0 32.0 55.0 88.0 177 192 1,809 674 393 526 277 60 Qujing Qilin Nanpanjiang 2,266 1,353 798 - 1,353 - 0 18.4 18.4 74.8 110.6 113 132 964 565 0 0 964 61 Baoshan Tengchong Longchuan- 124,900 1,303 1,010 - 1,303 - 4 28.0 28.0 85.0 120.0 165 181 1,077 1,079 0 0 989 jiang 62 Baoshan Changning Longchuan- 8,054 1,312 490 - 1,312 - 0 31.0 31.0 98.0 145.0 119 145 862 698 449 0 413 jiang 63 Zhaotong Zhaoyang Yudong 40,018 1,308 1,001 - 1,308 - 3 22.9 22.9 31.5 61.5 149 169 1,041 912 227 406 112 64 Lijiang Yulong Jinshajiang 2,718 1,308 650 - 1,308 - 0 25.0 25.0 0.0 0.0 125 148 1,453 185 633 514 259 River 65 Chuxiong Yao’an Qinglinghe 4,502 1,525 997 - 1,525 - 0 45.0 45.0 138.0 208.0 148 173 1168 1,083 0 806 362 66 Honghe Shiping Yilonghu/ 5,058 1,302 1,007 62 1,240 62 0 20.0 20.0 70.0 93.0 138 184 1,133 667 200 133 1,067 Gaochong 67 Dali Heqing Jindun 5,230 1,351 978 - 1,351 - 0 26.0 26.0 84.0 114.0 140 200 1,892 0 0 120 860 68 Dali Eryuan Mijuhe 102,325 1,350 880 155 1,195 155 0 35.0 38.0 75.0 101.0 104 122 714 690 201 0 513 69 Dehong Luxi Zhefang 5,300 1,308 830 - 1,308 - 1 30.0 30.0 23.0 26.0 166 183 954 1,214 0 0 954 WUAs = Water user associations a Surface irrigation includes irrigation from reservoirs, pumping stations, and diversion sources. b Grain crops include wheat, maize, rice, soybeans, barley, potatoes, and others. c Shangri-La County, Jiangdong township;Lijiang Longpan township Source: County-level subproject summary data provided by provincial CAD offices, October 2010.
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Table A6.1: Key Features of Subproject Areas (part 2)
Crop Yields w/o (t/ha) Crop Yields with (t/ha) Land Yield Type (ha) Socio-Economic Characteristics Province/ FAs Town - Income No. County Villages HHs Population City Wheat Maize Rice Wheat Maize Rice (no.) Low Medium High ships (CNY/person (no.) (no.) (no.) (no.) /yr) Anhui 1 Fuyang Jieshou 5.24 5.25 - 7.12 7.75 - 4 653 1,500 200 3 11 10,300 36,400 3,129 2 Fuyang Taihe 5.32 6.10 - 7.05 7.20 - 3 1,333 1,020 0 2 7 4,700 21,430 3,850 3 Fuyang Funan 5.32 5.40 - 7.05 7.20 0 328 1,408 430 2 8 7,190 28,300 2,557 4 Fuyang Linquan 5.25 5.40 7.35 7.50 8.00 8.25 0 500 1,853 0 1 6 6,600 29,170 2,463 5 Fuyang Yingquan 5.32 5.40 - 7.05 7.75 - 0 1,200 953 200 2 9 7,920 31,670 3,494 6 Fuyang Yingzhou 5.32 5.40 - 7.05 7.20 - 3 430 1,400 330 2 11 7,350 32,140 3,250 7 Bozhou Mengcheng 5.32 5.40 - 7.05 7.20 - 0 935 1,352 0 2 5 4,800 20,280 3,200 8 Bozhou Guoyang 6.44 6.45 - 7.05 8.25 - 5 973 1,314 0 2 7 5,800 26,000 2,898 Heilong- a jiang 9 Harbin Binxian - - 7.50 - - 9.00 2 290 910 0 2 4 732 3,660 5,631 10 Qiqihaer Fuyu - 63.00 - - 75.00 - - 530 470 0 1 8 680 3,210 3,320 11 Mudan- Hailin - - 7.20 - - 8.70 2 300 620 380 1 2 1,080 3,800 5,600 jiang 12 Mudan- Ning’an - - 7.50 - - 9.00 2 500 500 0 1 4 1,060 3,600 6,200 jiang 13 Jiamusi Huachuan - - 6.75 - - 8.25 1 370 630 0 1 3 470 2,110 3,890 14 Jiamusi Huanan - - 6.75 - - 8.25 0 570 430 0 1 3 720 3,200 4,280 15 Jiamusi Fujin - - 7.20 - - 8.70 0 650 350 0 1 2 560 2,100 5,320 16 Suihua Qing’an - - 7.20 - - 8.70 0 626 374 0 1 2 843 3,628 3,472 17 Suihua Wangkui - - 6.15 - - 7.65 0 580 420 0 1 1 743 3,200 2,166 18 Daqing Dumeng - - 6.75 - - 8.25 0 1,000 0 0 1 2 410 1,610 7,300 19 Daqing Saertu - 63.00 - - 75.00 - 0 600 470 0 0 0 1,040 3,600 5,050 20 Hegang Luobei - - 6.75 - - 8.25 1 620 380 0 1 2 358 1,300 4,896 21 Hegang Suibin - - 6.75 - - 8.25 6 606 394 0 2 6 736 2,650 2,320 22 Shuaya- Raohe - - 6.75 - - 8.25 0 600 400 0 2 5 340 1,823 4,250 shan 23 Shuaya- Baoqing - - - - - 7.50 23 1,000 0 0 1 3 770 2,470 5,500 shan 24 Jixi Hulin - - 6.75 - - 8.25 0 300 700 0 2 2 330 1,250 7,882 25 Heihe Nenjiang ------0 410 590 0 1 3 460 1,840 4,723 Henan 26 Zhengzhou Zhongmou 5.12 5.32 - 7.20 7.50 - 0 1,200 800 0 2 10 3,680 15,360 6,101 27 Zhengzhou Xinzheng 5.23 4.73 - 7.01 7.14 - 0 626 1,374 0 2 10 4,800 20,146 6,478 28 Kaifeng Lankao 5.06 5.12 - 6.75 7.25 - 0 1,000 333 0 1 11 3,600 16,100 2,360 108
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Crop Yields w/o (t/ha) Crop Yields with (t/ha) Land Yield Type (ha) Socio-Economic Characteristics Province/ FAs Town - Income No. County Villages HHs Population City Wheat Maize Rice Wheat Maize Rice (no.) Low Medium High ships (CNY/person (no.) (no.) (no.) (no.) /yr) 29 Kaifeng Qixian 5.70 5.75 - 7.20 7.80 - 0 1,260 740 0 2 15 5,370 21,500 3,600 30 Kaifeng Kaifeng 5.80 6.00 - 7.50 7.75 - 4 0 0 2,000 2 9 3,997 17,900 3,600 31 Xinxiang Yanjing 5.00 5.50 - 6.75 6.95 - 0 1,200 800 0 1 8 2,450 9,760 4,600 32 Xinxiang Changyuan 5.85 6.16 - 7.50 7.65 - 6 500 1,500 0 1 19 4,980 19,840 3,527 33 Jiaozuo Qinyang 5.70 6.00 - 5.70 7.50 - 15 0 2,000 0 2 23 6,500 23,070 4,357 34 Jiaozuo Mengzhou 5.25 5.25 - 6.00 7.50 - 9 0 2,000 0 2 14 5,056 21,791 4,158 Jilin 35 Changchun Yushu - - 8.40 - - 10.00 0 985 348 0 1 7 5,200 18,200 3,200 36 Changchun Jiutai - - 7.00 - - 9.00 1 333 1,000 0 1 3 2,287 6,861 6,750 37 Changchun Dehui - - 7.50 - - 9.50 1 733 600 0 3 7 3,478 13,701 4,500 38 Changchun Shuang- - - 7.50 - - 9.00 4 1,000 0 0 3 14 7,915 27,900 5,250 yang 39 Changchun Nong’an - - 7.50 - - 9.00 1 500 500 0 1 5 2,339 9,560 4,300 40 Jilin Changyi - - 7.74 - - 9.50 3 669 0 0 1 8 6,285 22,000 3,590 41 Jilin Yongji - - 8.25 - - 10.05 2 550 450 0 2 5 2,120 9,500 4,650 42 Songyuan Fuyu - - 6.75 - - 9.00 1 0 1,000 0 2 6 3,000 11,118 4,800 43 Siping Lishu - 7.50 - - 9.00 - 1 500 500 0 2 6 3,320 13,200 5,239 44 Liaoyuan Dongfeng - - 7.10 - - 9.10 1 733 600 0 1 7 2,900 10,640 5,016 45 Liaoyuan Dongliao - 9.00 7.20 - 11.25 8.95 3 310 690 0 1 5 2,980 7,870 5,180 46 Tonghua Meihekou - - 7.90 - - 9.00 5 600 733 0 1 7 1,300 5,200 5,352 47 Tonghua Liuhe - - 7.95 - - 9.70 2 891 442 0 2 8 9,319 34,480 4,093 48 Tonghua Huinan - - 8.10 - - 9.38 5 785 548 0 1 12 2,410 10,560 5,500 49 Baicheng Taobei - - 8.00 - - 10.00 0 510 490 0 1 3 1,861 6,514 3,500 Ningxia 50 Yinchuan Helan 5.50 6.50 7.80 6.95 7.15 8.58 2 997 497 0 1 4 1,200 7,000 4,399 51 Yinchuan Yongning 5.30 6.70 7.90 6.73 7.37 8.90 4 824 670 0 4 4 2,573 10,043 4,287 52 Yinchuan Lingwu 5.50 6.80 7.85 6.95 7.30 8.60 0 624 810 0 1 5 4,200 20,000 4,718 53 Wuzhong Qingtong- 5.85 6.50 7.90 7.30 7.20 8.83 4 857 640 0 1 4 1,358 6,000 4,850 xia 54 Wuzhong Wuzhong 5.30 6.60 7.12 7.00 7.20 7.90 6 700 794 0 3 7 3,940 16,790 5,060 55 Zhongwei Zhongwei 5.45 6.40 7.4 6.80 7.04 8.10 2 1,000 498 0 3 12 5,000 21,000 4,148 56 Zhongwei Zhongning 5.55 6.50 7.40 7.23 7.48 8.51 8 803 650 0 1 7 3,080 13,100 4,772 57 Nongken Pingjibao& 5.25 10.00 8.10 6.78 11.00 9.20 2 890 616 0 2c 6 1,020 3,160 8,812 Nanliang cattle farm Yunnan 58 Kunming Yiliang 2.05 3.84 5.55 3.55 4.18 7.27 6 277 1,464 0 2 13 42,000 125,330 3,656
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Crop Yields w/o (t/ha) Crop Yields with (t/ha) Land Yield Type (ha) Socio-Economic Characteristics Province/ FAs Town - Income No. County Villages HHs Population City Wheat Maize Rice Wheat Maize Rice (no.) Low Medium High ships (CNY/person (no.) (no.) (no.) (no.) /yr) 59 Kunming Songming 3.00 4.51 7.35 3.60 5.11 8.02 5 620 785 0 2 8 6,920 28,100 3,200 60 Qujing Qilin - - 5.63 - - 7.02 2 903 450 0 2 5 4,885 18,833 2,668 61 Baoshan Tengchong - - 6.15 - - 8.25 8 331 972 0 2 7 4,600 19,540 3,003 62 Baoshan Changning 4.42 - 7.38 6.47 - 11.61 - 712 600 0 2 8 4,200 29,800 2,919 63 Zhaotong Zhaoyang 2.40 6.40 6.25 3.00 6.80 7.26 10 887 421 0 3 19 35870 121,280 2,712 64 Lijiang Yulong 4.05 4.42 5.57 4.78 5.08 7.04 0 770 538 0 1 8 4,896 19739 2,851 65 Chuxiong Yao’an - 2.91 5.81 - 3.93 7.19 0 575 950 0 1 14 8,240 28,600 2,675 66 Honghe Shiping 3.75 5.34 7.62 3.95 6.00 7.95 3 180 1,122 0 1 6 8,630 26,710 2,333 67 Dali Heqing - 4.34 4.67 - 6.00 7.50 3 751 600 0 1 11 7,083 27,395 3,215 68 Dali Eryuan 2.81 - 5.90 4.02 - 6.84 3 658 692 0 5 11 9,350 39,690 2,828 69 Dehong Luxi - - 8.25 - - 9.08 0 882 480 0 1 4 5,000 26,000 1,896 w/o = without; FAs = farmer associations a Maize yields in Heilongjiang Province refere to silage not grain. b Saertu District is within Daqing City and does not have any townships or villages. c Data for Pingjibao& Nanliang cattle farm subproject in Ningxia Autonomous Region refer to the number of state farms and not townships. Source: County-level subproject summary data provided by provincial CAD offices, October 2010.
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Appendix 7 Detailed Description of Project Components
A7.1 Introduction
1. The overall objective of the Project is to contribute to an area and time slice of the Government’s Comprehensive Agricultural Development (CAD) Program with an emphasis on the sustainable rehabilitation and improvement of existing irrigation and drainage systems and modernization of agricultural production in currently low- and medium-quality land in six provinces. The overall impact of the Project is expected to be increased farm incomes for both male and female farmers and food security arising from the increased output of grain and high value crops. At the same time there is expected to be an increase in water use efficiency through the adoption of water saving technologies and effective gender mainstreaming through the project’s emphasis of the importance of the contribution of women to China’s rural development. Capacity building for provincial and city/county agencies will also assist the CAD offices to implement the methodologies and technologies in other areas, including improving their gender awareness.
2. The project comprises three components designed to achieve the overall objective: (i) improved irrigation infrastructure and operation and maintenance (O&M); (ii) improved irrigated agriculture; and (iii) strengthened project management capacity. The first component is expected to provide the basic infrastructure required for successful project implementation by completing and rehabilitating field-level irrigation and drainage systems that have fallen into disrepair or were never completed so that water can be provided to farmers’ fields in a more timely and efficient manner. The component will also support the establishment of water users associations (WUAs). These activities are planned to provide the basis for improvement of irrigated agriculture under the second component, which will promote agricultural development, including increased production of traditional grain crops and diversification into high value crops. Finally the third components will support the provincial and city/county CAD offices in improving the efficiency of their project management. Gender awareness features are included in each of the three components.
A7.2 Improved Irrigation and Drainage Infrastructure
3. Activities relating to the improvement of irrigation and drainage infrastructure include the rehabilitation and completion of irrigation distribution systems for both surface water and groundwater sources, the improvement of drainage facilities to reduce problems of waterlogging and flooding, formation and strengthening of WUAs, and pilot testing of solar- powered systems for irrigation in remote areas.
4. Surface water irrigation projects will comprise rehabilitation and lining of existing irrigation systems in order to reduce seepage and increase irrigation coefficients and water use efficiency and expansion of irrigation systems to cover a wider area, and dredging of the existing drainage ditches in order to reduce problems of waterlogging and flooding and/or salinity. This will be complemented by construction and rehabilitation of auxiliary facilities: irrigation pumping stations, reservoirs, small dams, culverts, spill weirs, canal bridges and other necessary structures.
5. Tubewell irrigation projects will extract water from underutilized groundwater resources and will ensure a balance between groundwater extraction and recharge. Facilities for motor-pumped wells and pump stations will include: hydro buildings, electromechanical equipment, and the facilities for electricity transmission lines less than 10kv – must be linked and managed in an integrated manner so that the overall efficiency of the devices reaches the relevant standards.
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6. Water saving technologies will comprise lining of irrigation canals, installation of low pressure pipe irrigation (mainly from tube-well pumping systems) and installation of sprinkler and micro-irrigation systems in green-houses.
7. These infrastructural improvements will be complemented by an improved irrigation operation and management system through establishment of Water User Associations.
A7.2.1 Completed/Upgraded Surface Water Irrigation Systems
8. Surface water irrigation systems 1 will be completed or upgraded on 56,588 ha in 49 city/county project areas providing an incremental irrigated area of 8,650 ha, or about 18%. The main activities relating to surface water irrigation systems will include:
(i) Excavation and dredging of about 3,852 km of irrigation canals and ditches including 771 km of branch canals, 1,139 km of lateral/sub-lateral canals, 693 km of branch drainage ditches, and 1,249 km of lateral/sub-lateral drainage ditches; (ii) Construction of 29,373 irrigation and drainage canal structures including: 9,566 bridges (160 of ≥10 m span, 1,683 of 4-10 m, and 7,723 of <4 m), 226 weirs, 6,838 culverts ( 922 of ≥100 cm diameter, 4,153 of 60-100 cm diameter, and 1,693 of <60 cm diameter), 2,584 gates (25 of ≥3m 3/s, 277 of 1-3m 3/s, and 2,282 of <1m 3/s), 399 aqueducts, 98 drop structures, 15 inverted siphons, 2 overflow weirs, 7,161 outlets, and 2,486 outlet structures; (iii) Rehabilitation and construction of 59 irrigation pumping stations, comprising construction of 9 new stations (3 of ≥100 kW capacity, 2 of 50-100 kW capacity, and 4 of <50 kW capacity) with provision of 20 sets of equipment, and rehabilitation of 50 existing stations (5 of ≥100 kW capacity, 19 of 50-100 kW capacity, and 26 of <50 kW capacity) with provision of 126 sets of equipment, each station requiring an investment of less than CNY2 million.
A7.2.2 Developed/Improved Tubewell (Groundwater) Irrigation Systems
9. Tubewell irrigation systems will be developed and improved on 41,183 ha in 32 city/county project areas providing an incremental irrigated area of 29,979 ha, or about 268%. The main activities relating to tubewell irrigation systems will include:
(i) Construction of 7,512 new tubewells with 12,586 sets of equipment and rehabilitation/improvement of 799 tubewells including replacement of 1,620 sets of equipment; (ii) Supply and installation of agricultural electrification comprising 1,809 km of electricity transmission cables and 933 voltage transformers 2;
A7.2.3 Water Saving Technology Promoted
10. Within the area covered by the surface water and groundwater irrigation systems component water-saving technology will be introduced on 74,495 ha. Rehabilitation and lining of earthen canals is anticipated to increase the irrigation efficiency from the prevailing 0.44 irrigation coefficient to 0.53 or more. Introduction of flexible pipe irrigation in groundwater irrigation systems is anticipated to increase the irrigation coefficient from 0.69 to 0.73. Increased irrigation coefficients will result in overall water saving with reduction of percolation of water to the groundwater and enable irrigation water in canals to reach extended areas
1 Surface water irrigation systems include reservoir, diversion systems, and pumped systems. 2 Some electrification equipment may be for pumped surface irrigation systems but no distinction is made in the proposal. 112
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 and thus permitting the irrigation of a larger area with the same volume of water. The activities to promote water saving will include:
(i) Lining of 1,666 km of newly constructed and upgraded canals to reduce seepage comprising 640 km of branch canals and 1,026 km of lateral/sub-lateral canals servicing 40,065 ha of irrigated land; (ii) Provision and installation of 1,318 km of low-pressure PVC underground pipelines benefiting 10,615 ha; (iii) Provision and installation of 605 sets of sprinkler irrigation systems benefitting 4,838ha; (iv) Provision and installation of 58 sets of micro-irrigation (including drip irrigation) benefitting 109 ha of; (v) Provision of 254 km of movable flexible pipe irrigation benefitting 18,857 ha; and (vi) Construction of 11 new and rehabilitation of 8 existing small-scale water storage structures each with a capacity of less than 50,000 m 3.
A7.2.4 Water User Associations Established/Strengthened
11. Support will be provided for 95 new and existing Water User Associations (WUAs) through the provision of small-scale grants to cover the cost of start-up and promotion activities, training and study tours for farmers and WUA officials (929 person-months) on WUA establishment and O&M, construction of WUA buildings (244 m 2), acquisition of 54 sets of water-measuring equipment for better water distribution management and water fee collection through the WUAs, and WUA operation. Women will participate equally in the formation/strengthening of the WUAs both as members and as elected officials on the WUA management committees.
A7.2.5 Pilot Solar Power Units
12. Ningxia AR proposes investing in nine pilot solar power units for the pumping of groundwater for irrigation either for production of high value crops or to supplement existing irrigation sources. All pilots are proposed for the first two years of project implementation.
A7.3 Improved Irrigated Agriculture
13. Improvements to grain production and household incomes must come from improvements to irrigated agriculture production systems. Improvements to irrigated agriculture employing a CAD approach will be made in numerous synergistic ways, including improved soil quality, improved farm and field access for field operations and transportation of crops, the adoption of a variety of better agricultural practices to a significant portion of arable land in project areas, a reduction in degraded land, improvements to farmer’s capacity, and demonstrations of modern agricultural practices including pollution-free and green (organic) agriculture.
14. Improvements to soil quality, include field leveling and deep plowing (or para-tilling on minimum tillage fields), balanced fertilizer application, and returning of crop residues to fields. Surveys will be carried out with the goals of field consolidation when possible and field leveling to promote better irrigation and drainage. Larger fields will allow more effective use of farm equipment. To improve access to fields from the villages, particularly during the rainy season, and to reduce agricultural production and marketing costs, the project will support rehabilitation of existing field trunks and production roads and the construction of new roads where required. Improvements to agricultural practices will include expansion of quality seed production, processing and promotion programs, promotion of mechanized farm implements to improve cultivation practices and efficiency, and the introduction of integrated pest management systems (IPM). Reduction in degraded land will be promoted with increased 113
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 afforestation in a number of project areas, expansion to shelter-belt forests, and salinity reduction.
15. Efforts to increase farmers’, and in particular female farmers’, capacity and competence will be carried out via expanded extension programs and demonstrations and promotion of farmer associations (FAs). Demonstrations will particularly focus on greenhouse production, pollution-free crop production, and green/certified organic agricultural production. Women will be encouraged to participate in both training and demonstrations with a target of achieving an average of at least 50% women’s participation in both of these types of activity.
A7.3.1 Improved Land Quality
16. Activities to support the improvement of land quality on about 67,138 ha3 will be conducted using a combination of beneficiary contributions and government subsidies, the latter accounting for about 20-25% of the cost of the activity. The activities will be subsidized for one year in the expectation that farmers will observe the benefits and adopt the practices in subsequent years. The following activities are proposed for support under the Project:
(i) Field (land) leveling on 16,769 ha comprising the flattening of small hummocks to achieve a general leveling. (ii) Deep plowing to a depth of about 25 cm on 24,713 ha to improve drainage and crop production. This activity will be undertaken predominantly by the farmers themselves possibly by contracting other farmers who own the required machinery. (iii) Balanced fertilizer application programs will be promoted on 28,162 ha with special emphasis on encouraging farmers to apply farmyard manure but also including soil analysis and determination of appropriate fertilizer use.
A7.3.2 Improved Service Roads
17. Within the areas covered by the surface water and groundwater irrigation systems these activities will support rehabilitation of existing, and where required construction of new, major and working rural roads to reduce agricultural production and marketing costs. The activities will include:
(i) Construction/rehabilitation of 1,044 km of major roads including 24 km of hardened roads of ≥6 m width, 434 km of hardened roads of <6 m width, 177 km of gravel roads of ≥6 km width and 409 km of gravel road of <6 m width; and (ii) Construction/rehabilitation of 822 km of working roads including 58 km of hardened roads, 381 km of gravel roads, and 384 km of earthen roads.
A7.3.3 Improved Agricultural Practices
18. Development of improved agricultural practices will be supported through a range of activities including promotion of improved quality seed to achieve an increased coverage from 93% to 98% of sown area; an increase in the area of mechanized farming from 75% to 83% overall, with area mechanically plowed increasing from 90% to 94% of area, mechanically sown area increasing from 75% to 82% of area, and mechanically harvested area increasing from 66% to 75%. The following activities will be undertaken to support improved agricultural practices:
(i) Area devoted to quality seed production will be increased by 1,234 ha. (ii) Storage warehouses for quality seed will increase by 7,510 m2.
3 Including activities for return of straw listed under reduced land degradation. 114
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(iii) Quality seed area for drying and packaging will increase by 56,400 m2. (iv) As a result of the above improvements the availability of quality seed for all crops will be increased by 4,414 t/year. (v) Farmer associations and farm machinery service providers will be supported through the provision of 462 tractors (of which 404 will be >80 hp), 224 sets of related equipment and machinery, and 59 sets of crop protection equipment. The total farm machinery capacity will increase by about 39,800 kW. (vi) IPM programs will be demonstrated on 9,725 ha, including provision of 555 sets of IPM equipment and 9 vehicles to IPM offices.
A7.3.4 Reduced Land Degradation
19. Activities for reducing land degradation will focus on increasing forest coverage and reclaiming damaged crop land in Ningxia Autonomous Region in part as a means as a means of increasing crop yields and mitigating land degradation. The following activities will be included supported:
(i) The area of shelter-belt forests directly adjacent to farm fields will be increased by 2,580 ha with the project financing provision of about 5.65 million saplings and farmers having responsibility for planting with support of a government subsidy. (ii) The area of environmental protection forests will be increased by 275 ha with the project financing provision of about 0.22 million saplings and farmers having responsibility for planting with support of a government subsidy (iii) Straw processing will be promoted on about 34,800 ha of land. (iv) Improved irrigation in Ningxia Autonomous Region is expected to result in reduced salinity on 2,000 ha of damaged crop land.
A7.3.5 Improved Farmer Capacity
20. Male and female farmer capacity will be strengthened through a combination of promoting FAs and cooperatives and farmer training. Women will be encouraged to participate equally in both FA/farmer cooperative development and farmer training with a target of 50% participation in all activities, including representation of management committees. Specifically, the activities will include:
(i) New and strengthened FAs/cooperatives will be supported through grants to cover start-up/running costs for 66 FAs, 412 sets of instruments and equipment, and 1,534 person-months of training and study tours; and (ii) Farmer training of 16,904 person-months, comprising 6,382 person-months for publicity and start-up and 10,522 person-months for technical training.
A7.3.6 Demonstrations of Modern Agriculture Technologies
21. Demonstrations of modern agricultural technologies will promote crop diversification and help raise incomes through the demonstration of modern agricultural technologies with special emphasis on greenhouse production of high-value crops, pollution-free agriculture, and green agriculture. The total area of these demonstrations will comprise 201 ha of greenhouses, 15,088 ha of pollution-free agriculture and 2,345 ha of green agriculture. Specifically:
(i) Small demonstrations of greenhouse crop production will be conducted on individual farmers’ fields with the project supporting the necessary earthworks on about 201 ha and provision of 16,971 sets of equipment, one set per demonstration. The average area of each demonstration will be about 118 m2 and the farmers will assume ownership of the completed demonstrations. 115
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(ii) Demonstrations of pollution-free agriculture will be conducted by the Provincial Offices of Comprehensive Agricultural Development (POCADs), who will directly contract the relevant government training institutes. The Project will support these demonstrations through the provision 911 sets of equipment, assistance with 16 sets of declaration costs for safe products, demonstration costs of CNY785/ha, and assistance for 165 monitoring studies. (iii) Demonstrations of green agricultural production will be conducted in Jilin and Yunnan accounting for about 2,345 ha. Support from the project will include provision of about 263 sets of equipment, demonstration costs of CNY970/ha, financial assistance with 12 green food declarations and support for 11 monitoring studies.
A7.4 Strengthened Project Management Capacity
22. Although CAD projects have been implanted through the SOCAD of MOF for more than 20 years the management capacity remains highly variable, not only at the city/county level but also at the provincial level. Some provincial CAD offices appear highly progressive and are attempting to introduce the latest technologies for project implementation and monitoring, while other continue in a more traditional fragmented manner that causes delays and errors in reporting activities and in general limits the progress of the overall program. These problems are even more distinct at the city/county level.
23. Strengthening of project management capacity will focus on improving the overall capacity of the CAD offices by providing a substantial level of domestic and international training and study tours for all of the participating offices, as well as incremental office equipment and management information system (MIS) equipment to strengthen their capacity for project monitoring. Training and study tours will address the needs of female employees of the CAD offices, who will be encouraged to participate in all activities. Gender awareness will also be a key focus of the training activities In addition a more advance integrated management system will be introduced to selected CAD offices in Heilongjiang Province and Ningxia Autonomous Region, as well as a limited system in Anhui Province, to demonstrate the potential for more advanced approaches to project management and monitoring. These demonstrations should prove valuable to the other participating provinces.
24. The component also includes a grant-funded subcomponent for rural women’s economic empowerment (Appendix 18).
A7.4.1 Upgraded Provincial and City/County CAD Offices
25. Upgrading the capacity of provincial and county/city CAD offices will focus on provision of training and study tours to selected staff and the upgrading of office equipment. In particular the activities will include:
(i) About 3,263 person-months of domestic training and 36 person-months of international training in improved project management and related areas, the specific scope of training to be identified during project implementation. (ii) About 1,665 person-months of domestic study tours and 201 person-months of international study tours to develop CAD staff capacity both in project management and implementation of CAD-type projects, the specific scope of training to be identified during project implementation. (iii) Provision of about 256 person-months of national consulting services. (iv) Provision of 1,530 sets of office equipment and 87 project management vehiclesto update the 75 provincial and city/county CAD offices. (v) Support for project design and management.
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A7.4.2 Rural Women’s Economic Empowerment
26. This grant-funded subproject (Appendix 18) will support on a pilot basis the economic empowerment of women in 6 counties in 3 provinces (Anhui, Ningixa and Yunnan). To enable and support the project from the perspective of women’s capacity building and participation in decision-making processes, activities will include:
(i) Training of women’s production groups; (ii) Strengthening the capacity of the All China Women’s Federation (ACWF) from county down to village level; and (iii) Introducing an innovative model of collaboration between local ACWF and FAs and WUAs (“ACWF plus”)
A7.4.3 CAD Integrated Management System Established and Operational
27. Activities to support the establishment and initial operation of an integrated management system for CAD projects in three provinces (Anhui, Heilongjiang and Ningxia) will facilitate the collection and processing of data at the city/county, provincial and national levels. Preliminary specification of the system is included in Supplementary Appendix J and more detailed specification will be undertaken during project implementation and it will then be pilot tested in a few locations. When proven successful, it will be extended to other locations depending on the availability of funds. Given the preliminary nature of the design, the specific equipment needs have not yet been specified, and the allocation is currently made in terms of cost. The specific activities envisaged include:
(i) an integrated management and information system comprising 3 servers, 3 sets of software design, 20 sets of satellite remote sensing images, a lump sum amount of CNY1.30 for data acquisition, and 6 sets of MIS software; (ii) 8 sets of environmental monitoring system; and (iii) 9 sets of social and poverty monitoring system.
A7.5 Project Components by Province
28. The above activities are derived from aggregates of the individual subprojects to the provincial level and above. While subprojects are fairly similar in most provinces, Yunnan having the most diverse range of subprojects, there is considerable variation between provinces. Table A6 details the activities by province to highlight these differences.
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Table A7: Activity Details by Province No. Component/Subcomponent/Activity Unit Province Anhui Heilongjiang Henan Jilin Ningxia Yunnan 1. Improved Irrigation and Drainage Infrastructure 1.1 Subproject Surface Water Irrigation Systems Completed/ Upgraded no. 1 14 1 13 8 12 1.1.1 with a total area ha 600 13,986 500 14,484 10,696 16,322 of which incremental area ha 200 1,000 0 978 213 6,259 1.1.2 Irrigation/drainage canals dredged km 1,058 507 514 449 1,183 141 Branch canals km 271 197 21 105 147 30 Lateral/sub-lateral canals km 181 92 0 116 641 109 Branch drainage ditches km 47 162 174 150 157 2 Lateral/sub-lateral drainage ditches km 560 56 318 78 237 0 1.1.3 Canal system structures built no. 5,375 3,432 2,478 1,417 10,365 6,304 Bridges no. 2,675 66 855 159 2,861 2,950 Weirs no. 0 0 0 0 226 0 Culverts no. 2,639 603 1,603 141 174 1,678 Gates no. 61 133 20 155 536 1,675 Aqueducts no. 0 15 0 26 357 1 Drop structures no. 0 16 0 4 78 0 Inverted siphons no. 0 0 0 14 1 0 Overflow weirs no. 0 0 0 2 0 0 Outlet structures no. 0 2,599 0 916 3,646 0 Tail water outlets no. 0 0 0 2,486 0 1.1.4 Irrigation pumping stations constructed/ improved no. 7 2 15 17 26 11 of which newly constructed no. 4 1 - 1 3 improved no. 3 1 15 16 26 8
1.2 Subproject Tubewell (Groundwater) Irrigation Systems Developed/Improved no. 8 6 9 3 3 3 with a total area ha 17,083 4,330 16,813 2,508 205 244 of which incremental area ha 16,026 3,700 7,959 2,300 34 0 1.2.1 New tubewells constructed no. 3,746 249 3,215 302 - - 1.2.2 Existing tubewells improved no. 0 - 788 - 11 - 1.2.3 Rural electric cables & accessories installed km 16 36 1,694 - 29 6 1.2.4 Transformers installed sets 59 16 823 - 22 1
1.3 Water Saving Technology Promoted ha 16,626 12,220 13,510 11,446 10,150 10,542 through 1.3.1 Canals lined km 8 201 26 201 787 442 Of which branch canals km 2 109 15 145 147 222 Lateral/sub-lateral canals km 6 82 21 56 640 220
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No. Component/Subcomponent/Activity Unit Province Anhui Heilongjiang Henan Jilin Ningxia Yunnan 1.3.2 Low-pressure pipelines installed km 103 - 1,171 - 8 44 1.3.3 Sprinkler irrigation installed ha - 1,150 - 992 366 316 1.3.4 Micro-irrigation (incl. drip irrigation installed) ha - - 3 1 - - 1.3.5 Movable flexible pipes supplied km - 222 80 - - 1.3.6 Small water storage structures developed no. - - - 8 - 11 of which newly constructed no. - - - - - 11 improved no. - - - 8 - -
1.4 Water User Associations (WUAs) supported no. 30 6 1 10 30 8 1.4.1 Start-up 59 - - 9 30 8 1.4.2 Buildings m2 100 4 60 80 - - 1.4.3 Training & study pm 292 16 2 619 - - 1.4.4 Water-measuring equipment sets - 10 - 44 - - 1.5 Pilot solar-powered irrigation pilots - - - - 9 -
2. Improved Irrigated Agriculture 2.1 Soil Quality Improved ha 9,675 7,495 18,193 7,665 17,744 6,366 through 2.1.1 Fields leveled ha 1,200 5,329 2,826 4,525 5,110 550 2.1.2 Land deep plowed ha 2,620 4,960 5,620 1,400 9,828 1,418 2.1.3 Balanced fertilizer application introduced ha - 4,564 6,837 1,786 7,140 7,219
2.2 Service Roads Improved km 274 264 628 155 204 227 2.2.1 Rural roads km 238 174 305 93 136 94 Hardened roads km 203 19 182 37 9 8 Gravel roads km 35 155 123 56 127 86 2.2.2 Working roads km 36 90 323 62 68 133 Hardened roads km 11 2 - - 40 4 Gravel roads km 25 59 68 62 28 129 Earthen roads km - 29 255 - - - 2.3 Agricultural Practices Improved through 2.3.1 Quality seed production area expanded ha 6 - - - - 1,220 2.3.2 Quality seed storage warehouse constructed m2 450 3,900 - 1,700 1,260 200 2.3.3 Quality seed drying areas constructed m2 1,200 17,600 - 11,600 26,000 - 2.3.4 Quality seed production increased tons 16 - 18 25 4,048 307 2.3.5 Agricultural machinery power increased kW 24,027 3,556 - 8,256 1,462 2,500 through provision of tractors units - 48 - 89 15 282 2.3.6 Farm implements distributed units - 28 - 99 60 4 2.3.7 Plant protection equipment distributed units - 61 - 20 36 -
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No. Component/Subcomponent/Activity Unit Province Anhui Heilongjiang Henan Jilin Ningxia Yunnan 2.3.8 IPM program introduced on ha - 1,000 606 - 4,909 3,210 Including equipment sets - 27 - 20 198 310 and vehicles no. - - 9 - - - 2.4 Land Degradation Reduced through 2.4.1 Farm shelter-belts planted ha 336 243 578 673 550 200 Requiring saplings purchased 000s 1,900 387 1,241 716 1,108 294 2.4.2 Environmental protection forests planted ha - - - 65 54 156 Requiring saplings purchased 000s - 10 - 110 104 - 2.4.3 Processes straw returned to farm land ha 10,970 1,370 12,846 2,540 5,100 2,035
2.5 Farmer Capacity Improved through 2.5.1 Farmer associations/cooperatives established and strengthened by start-up and running costs provided no. 24 2 7 30 2 1 Training and study tours organized pm 13 100 177 804 265 175 Instruments & equipment financed sets 3 24 65 131 154 35 2.5.2 Farmer training pm 1,455 2,059 2,290 3,431 761 6,907 Publicity & start up pm 291 254 711 1,751 290 3,085 Technical training pm 1,164 1,805 1,579 1,680 471 3,822
2.6 Modern Agriculture Technologies Demonstrated ha 19 2,145 672 4,570 7,702 2,528 Including 2.6.1 Demonstration greenhouses constructed ha 18.7 4.5 71.8 5.6 84.8 15.6 and greenhouse equipment provided sets - 36 1,499 337 15,021 78 2.6.2 Pollution-free/safe agriculture demonstrated ha - 2,140 600 2,989 7,617 1,742 including Equipment provided sets - 124 300 83 179 225 Declarations supported no. - 1 3 6 1 5 2.6.3 Organic/green agriculture demonstrated ha - - - 1,575 - 770 including Equipment provided sets - - - 133 - 140 Declarations supported no. - - - 7 - 5
3. Strengthened Project Management Capacity 3.1 Provincial and County CAD Offices Upgraded including 3.1.1 Domestic training provided pm 1,827 75 868 270 48 175 3.1.2 International training provided pm 4 4 4 4 16 4 3.1.3 Domestic study tours undertaken pm 251 92 733 235 180 175 3.1.4 International study tours undertaken pm 35 16 12 30 60 48 3.1.5 National consulting services pm - 1 50 105 92
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No. Component/Subcomponent/Activity Unit Province Anhui Heilongjiang Henan Jilin Ningxia Yunnan 3.1.6 Office equipment purchased & installed sets 399 310 198 188 107 344 3.1.7 Project management vehicles procured no. 12 20 15 17 10 13 3.1.8 Agricultural management information system equipment installed and operational Server equipment sets - - - - 3 - Software design sets - - - - 3 - Satellite remote sensing images sets - - - - 20 - Data acquisition no. - - - - 1 - MIS sets - 5 - - - 1 3.1.8 Environmental monitoring no. 4 - - 4 - 3.1.9 Social & poverty monitoring no. 4 - - 5 -
3.2 Rural Women’s Capacity Developed through 3.2.1 Women’s groups trained counties 2 - - - 2 2 3.2.2 ACWF capacity built counties 2 - - - 2 2
3.3 CAD Integrated Management System Established and Operational Comprising no. 3.3.1 Agricultural management and information system installed CNY mn - 5.00 - - 1.45 - Servers installed CNY mn - 0.20 - - 0.10 - Software design completed and operational CNY mn - 3.00 - - 0.20 - Satellite remote sensing images procured CNY mn - 0.90 - - 0.80 - Data acquired CNY mn - 0.90 - - 0.35 - 3.3.2 Environmental monitoring system established CNY mn 0.50 0.17 - - 1.00 - 3.3.3 Social and poverty monitoring system established CNY mn 0.50 0.17 - - 1.00 - ACWF = All China Women’s Federation, CAD = Comprehensive Agricultural Development, ha = hectare, IPM = Integrated Pest Management, km = kilometer, kW = kilowatt, m 2 = square meter, mn = million, no. = number, O&M = operation and maintenance, pm = person-months, WUA = water user association Source: National Proposal Summary Tables, May 2010
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Appendix 8 Detailed Cost Estimates
Table A8.1: Detailed Cost Estimates by Expenditure Category a ($ million) % % Total (US$ Million) Foreign Base Local Foreign Total Exchange Costs I. Investment Costs b A. Civil Works 1. Civil Works-Anhui 20.79 11.19 31.98 35 11 2. Civil Works-Heilongjiang 17.07 9.19 26.26 35 9 3. Civil Works-Henan 14.84 7.99 22.83 35 8 4. Civil Works-Jilin 18.32 9.86 28.18 35 10 5. Civil Works-Ningxia 15.10 8.13 23.24 35 8 6. Civil Works-Yunnan 21.21 11.42 32.64 35 11 Subtotal 107.33 57.79 165.12 35 58 B. NBF Civil Works 1. Anhui 6.32 - 6.32 - 2 2. Heilongjiang 7.36 - 7.36 - 3 3. Henan 5.75 - 5.75 - 2 4. Jilin 3.30 - 3.30 - 1 5. Ningxia 5.28 - 5.28 - 2 6. Yunnan 6.33 - 6.33 - 2 Subtotal 34.35 - 34.35 - 12 C. Equipment and Materials 1. Equipment 12.32 18.48 30.81 60 11 2. Materials 9.04 9.04 18.07 50 6 Subtotal 21.36 27.52 48.88 56 17 D. Research and Monitoring 20.13 2.24 22.37 10 8 E. Training and Study Tour 10.83 1.20 12.03 10 4 F. Water Users Association and Farm Association 1.03 0.05 1.08 5 - Total BASELINE COSTS 195.02 88.81 283.83 31 100 Physical Contingencies c 10.14 4.62 14.76 31 5 Price Contingencies c 8.75 1.15 9.89 12 3 Total PROJECT COSTS 213.91 94.57 308.48 31 108 Interest During Implementation d - 9.41 9.41 100 3 Commitment Charges e - 0.76 0.76 100 - Total Costs to be Financed 213.91 104.75 318.65 33 111 a In early-2010 prices. b Includes taxes and duties of $21.41 million. c Contingencies on ADB- and Government-financed portions will be financed by the Government. Contingencies on beneficiary contributions will be financed by beneficiaries Physical contingencies computed at 8% of base costs. Price contingencies were computed using foreign escalation factors of 0.7% for 2011, 0.0% for 2012 and 0.5% thereafter, and local escalation factors of 1.4% for 2011, 2.4% for 2012 and 2013, 2.6% for 2014 and 3.1% for 2015. d Interest during implementation computed at the five-year forward London interbank offered rate (LIBOR), with a spread of 0.3% for the ADB loan. e Commitment charge of 0.15% per year on the undisbursed amount of the ADB loan Source: Consultant’s estimates.
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Table A8.2: Detailed Cost Estimates by Financier ($ million) Provincial & Local Asian Development Local The Government Governments Bank Beneficiaries Total For. (Excl. Duties & Amount % Amount % Amount % Amount % Amount % Exch. Taxes) Taxes I. Investment Costs A. Civil Works 1. Civil Works-Anhui 6.05 18.9 25.92 81.1 - - 31.98 10.0 11.19 17.59 3.20 2. Civil Works-Heilongjiang 1.77 6.7 24.49 93.3 - - 26.26 8.2 9.19 14.44 2.63 3. Civil Works-Henan 6.19 27.1 16.03 70.2 0.61 2.7 22.83 7.2 7.99 12.56 2.28 4. Civil Works-Jilin 3.86 13.7 24.32 86.3 - - 28.18 8.8 9.86 15.50 2.82 5. Civil Works-Ningxia 1.35 5.8 21.89 94.2 - - 23.24 7.3 8.13 12.78 2.32 6. Civil Works-Yunnan 7.28 22.3 25.35 77.7 - - 32.64 10.2 11.42 17.95 3.26 Subtotal 26.50 16.1 138.01 83.6 0.61 0.4 165.12 51.8 57.79 90.82 16.51 B. NBF Civil Works - 1. Anhui - - 3.13 49.5 - - 3.19 50.5 6.32 2.0 - 6.32 - 2. Heilongjiang - - 4.17 56.6 - - 3.19 43.4 7.36 2.3 - 7.36 - 3. Henan ------5.75 100.0 5.75 1.8 - 5.75 - 4. Jilin - - 0.11 3.2 - - 3.20 96.8 3.30 1.0 - 3.30 - 5. Ningxia - - 2.56 48.4 - - 2.72 51.6 5.28 1.7 - 5.28 - 6. Yunnan - - 3.60 56.8 - - 2.73 43.2 6.33 2.0 - 6.33 - Subtotal - - 13.56 39.5 - - 20.79 60.5 34.35 10.8 - 34.35 - C. Equipment and Materials - 1. Equipment - - 0.00 - 30.81 100.0 - - 30.81 9.7 18.48 7.09 5.24 2. Materials - - 0.00 - 18.07 100.0 - - 18.07 5.7 9.04 5.96 3.07 Subtotal - - 0.00 - 48.88 100.0 - - 48.88 15.3 27.52 13.05 8.31 D. Research and Monitoring - - 22.37 100.0 - - - - 22.37 7.0 2.24 17.89 2.24 E. Training and Study Tour - - 0.00 - 12.03 100.0 - - 12.03 3.8 1.20 9.62 1.20 F. Water Users Association and Farm Association - - 0.00 - 1.08 100.0 - - 1.08 0.3 0.05 0.92 0.11 Total PROJECT COSTS - - 62.43 22.0 200.00 70.5 21.40 7.5 283.83 89.1 88.81 166.65 28.37 G. Contingencies - Physical Contingencies - - 13.50 91.5 - - 1.26 8.5 14.76 4.6 4.62 8.67 1.48 Price Contingencies - - 9.05 91.5 - - 0.84 8.5 9.89 3.1 1.15 7.84 0.90 Subtotal - - 22.56 91.5 - - 2.10 8.5 24.65 7.7 5.77 16.51 2.38 Interest During Implementation 9.41 100.0 ------9.41 3.0 - - - Commitment Charges 0.76 100.0 ------0.76 0.2 - - - Total Disbursement 10.17 100 84.98 113.50 200.00 62.76 23.50 7.37 318.65 100.0 94.57 183.16 30.75 Source: Consultant’s estimates
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Table A8.3: Expenditure Accounts by Component (Base Costs) a ($ million) Improved Irrigation Improved Strengthened Physical Infrastructure Irrigated Project Contingencies and O&M Agriculture Management Total % Amount I. Investment Costs A. Civil Works 1. Civil Works-Anhui 18.02 13.96 - 31.98 5.2 1.66 2. Civil Works-Heilongjiang 19.17 7.09 - 26.26 5.2 1.37 3. Civil Works-Henan 9.80 13.04 - 22.83 5.2 1.19 4. Civil Works-Jilin 22.37 5.81 - 28.18 5.2 1.47 5. Civil Works-Ningxia 20.90 2.34 - 23.24 5.2 1.21 6. Civil Works-Yunnan 21.09 11.55 - 32.64 5.2 1.70 Subtotal 111.34 53.78 - 165.12 5.2 8.59 B. NBF Civil Works 1. Anhui 2.84 3.48 - 6.32 5.2 0.33 2. Heilongjiang 3.24 4.12 - 7.36 5.2 0.38 3. Henan 2.09 3.67 - 5.75 5.2 0.30 4. Jilin 1.60 1.70 - 3.30 5.2 0.17 5. Ningxia 2.33 2.95 - 5.28 5.2 0.27 6. Yunnan 3.18 3.15 - 6.33 5.2 0.33 Subtotal 15.28 19.07 - 34.35 5.2 1.79 C. Equipment and Materials 1. Equipment 14.00 10.72 6.08 30.81 5.2 1.60 2. Materials 12.64 4.82 0.61 18.07 5.2 0.94 Subtotal 26.64 15.54 6.69 48.88 5.2 2.54 D. Research and Monitoring 0.61 5.06 16.70 22.37 5.2 1.16 E. Training and Study Tour 0.36 4.87 6.80 12.03 5.2 0.63 F. Water Users Association and Farm Association 0.52 0.56 - 1.08 5.2 0.06 Total BASELINE COSTS 154.75 98.88 30.20 283.83 5.2 14.76 Physical Contingencies 8.05 5.14 1.57 14.76 - - Price Contingencies Inflation Local 4.47 3.21 1.07 8.75 - - Foreign 0.71 0.38 0.06 1.15 - - Subtotal Inflation 5.18 3.59 1.13 9.89 - - Devaluation ------Subtotal Price Contingencies 5.18 3.59 1.13 9.89 4.9 0.49 Total PROJECT COSTS 167.98 107.61 32.89 308.48 4.9 15.25
Taxes 17.13 9.83 3.79 30.75 4.9 1.52 Foreign Exchange 57.32 30.56 6.69 94.57 4.9 4.67 a Costs exclude financing charges Source: Consultant’s estimates
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Table A8.4: Expenditure Accounts by Component (Total Costs) a ($ million) Improved Irrigation Improved Strengthened Infrastructure Irrigated Project and O&M Agriculture Management Total I. Investment Costs A. Civil Works 1. Civil Works-Anhui 19.54 15.15 - 34.69 2. Civil Works-Heilongjiang 20.88 7.73 - 28.61 3. Civil Works-Henan 10.65 14.15 - 24.81 4. Civil Works-Jilin 24.24 6.29 - 30.53 5. Civil Works-Ningxia 22.73 2.54 - 25.27 6. Civil Works-Yunnan 22.92 12.58 - 35.50 Subtotal 120.96 58.45 - 179.40 B. NBF Civil Works 1. Anhui 3.12 3.82 - 6.94 2. Heilongjiang 3.54 4.52 - 8.07 3. Henan 2.30 4.04 - 6.33 4. Jilin 1.74 1.87 - 3.62 5. Ningxia 2.56 3.25 - 5.82 6. Yunnan 3.48 3.47 - 6.95 Subtotal 16.74 20.98 - 37.72 C. Equipment and Materials 1. Equipment 15.04 11.50 6.46 33.00 2. Materials 13.60 5.20 0.66 19.46 Subtotal 28.65 16.71 7.11 52.46 D. Research and Monitoring 0.66 5.53 18.32 24.51 E. Training and Study Tour 0.40 5.35 7.46 13.20 F. Water Users Association and Farm Association 0.58 0.61 - 1.18 Total PROJECT COSTS 167.98 107.61 32.89 308.48
Taxes 17.13 9.83 3.79 30.75 Foreign Exchange 57.32 30.56 6.69 94.57 a Costs exclude financing charges Source: Consultant’s estimates
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Table A8.5: Expenditure Accounts by Year (Base Costs) a ($ million) Base Cost Foreign Exchange 2011 2012 2013 2014 2015 Total % Amount I. Investment Costs A. Civil Works 1. Civil Works-Anhui 3.50 9.64 9.73 9.11 - 31.98 35.0 11.19 2. Civil Works-Heilongjiang 2.61 5.85 7.47 7.84 2.49 26.26 35.0 9.19 3. Civil Works-Henan - 9.09 7.11 6.63 - 22.83 35.0 7.99 4. Civil Works-Jilin 5.40 7.37 7.42 7.16 0.83 28.18 35.0 9.86 5. Civil Works-Ningxia 3.26 5.75 5.96 5.91 2.36 23.24 35.0 8.13 6. Civil Works-Yunnan 4.78 7.82 7.94 8.50 3.60 32.64 35.0 11.42 Subtotal 19.55 45.50 45.63 45.16 9.28 165.12 35.0 57.79 B. NBF Civil Works 1. Anhui 0.72 1.82 1.95 1.83 - 6.32 - - 2. Heilongjiang 1.39 2.31 1.55 1.49 0.63 7.36 - - 3. Henan 0.00 2.12 1.94 1.69 - 5.75 - - 4. Jilin 0.75 0.90 0.68 0.81 0.16 3.30 - - 5. Ningxia 0.63 1.30 1.39 1.37 0.57 5.28 - - 6. Yunnan 1.47 1.34 1.50 1.46 0.56 6.33 - - Subtotal 4.96 9.80 9.02 8.65 1.93 34.35 - - C. Equipment and Materials 1. Equipment 8.75 7.79 6.54 6.15 1.58 30.81 60.0 18.48 2. Materials 2.07 6.28 5.39 3.85 0.48 18.07 50.0 9.04 Subtotal 10.82 14.07 11.93 10.00 2.06 48.88 56.3 27.52 D. Research and Monitoring 3.93 5.55 5.28 5.00 2.61 22.37 10.0 2.24 E. Training and Study Tour 1.97 2.77 3.03 2.85 1.41 12.03 10.0 1.20 F. Water Users Association and Farm Association 0.16 0.29 0.38 0.23 0.02 1.08 5.0 0.05 Total BASELINE COSTS 41.39 77.97 75.26 71.89 17.32 283.83 31.3 88.81 Physical Contingencies 2.15 4.05 3.91 3.74 0.90 14.76 31.3 4.62 Price Contingencies Inflation Local 0.24 1.46 2.48 3.43 1.14 8.75 - - Foreign 0.05 0.22 0.31 0.44 0.13 1.15 100.0 1.15 Subtotal Inflation 0.29 1.68 2.79 3.87 1.27 9.89 11.6 1.15 Devaluation ------Subtotal Price Contingencies 0.29 1.68 2.79 3.87 1.27 9.89 11.6 1.15 Total PROJECT COSTS 43.83 83.70 81.96 79.49 19.49 308.48 30.7 94.57
Taxes 4.66 8.36 8.10 7.74 1.89 30.75 - - Foreign Exchange 14.49 26.08 24.97 23.81 5.23 94.57 - - a Costs exclude financing charges Source: Consultant’s estimates
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Table A8.6: Expenditure Accounts by Year (Total Costs) a ($ million) Totals Including Contingencies 2011 2012 2013 2014 2015 Total I. Investment Costs A. Civil Works 1. Civil Works-Anhui 3.70 10.34 10.59 10.06 - 34.69 2. Civil Works-Heilongjiang 2.76 6.27 8.13 8.65 2.79 28.61 3. Civil Works-Henan - 9.75 7.74 7.32 - 24.81 4. Civil Works-Jilin 5.72 7.90 8.07 7.91 0.92 30.53 5. Civil Works-Ningxia 3.45 6.16 6.48 6.52 2.65 25.27 6. Civil Works-Yunnan 5.07 8.39 8.63 9.38 4.03 35.50 Subtotal 20.70 48.82 49.63 49.85 10.40 179.40 B. NBF Civil Works 1. Anhui 0.76 1.96 2.15 2.06 - 6.94 2. Heilongjiang 1.47 2.50 1.70 1.67 0.72 8.07 3. Henan 0.00 2.29 2.14 1.90 - 6.33 4. Jilin 0.79 0.98 0.75 0.91 0.18 3.62 5. Ningxia 0.67 1.41 1.54 1.54 0.66 5.82 6. Yunnan 1.56 1.45 1.65 1.64 0.65 6.95 Subtotal 5.26 10.59 9.94 9.72 2.21 37.72 C. Equipment and Materials 1. Equipment 9.25 8.30 7.03 6.68 1.74 33.00 2. Materials 2.19 6.71 5.82 4.21 0.53 19.46 Subtotal 11.44 15.01 12.86 10.89 2.27 52.46 D. Research and Monitoring 4.17 5.98 5.79 5.59 2.98 24.51 E. Training and Study Tour 2.09 2.99 3.32 3.19 1.61 13.20 F. Water Users Association and Farm Association 0.17 0.31 0.42 0.26 0.03 1.18 Total PROJECT COSTS 43.83 83.70 81.96 79.49 19.49 308.48 a Costs exclude financing charges Source: Consultant’s estimates
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Appendix 9 Organizational Chart and Flow of Funds
National Development and Ministry of Finance Asian Development Bank Reform Commission
State Office for Imprest Comprehensive Agricultural Account Development (SOCAD/MOF) Project Leading Group (PLG)
Central Project Management Office (PMO)
Provincial Office s for Provincial Finance Comprehensive Agricultural Department Development (POCADs) Project Leading Groups (PLGs) Counterpart funds Provincial Project Management Offices (PPMOs)
Prefecture Office s for Prefecture Finance Comprehensive Agricultural Bureau Development Project Leading Group (PLG) Counterpart funds Prefecture Project Management Office
County Office s for County Finance Comprehensive Agricultural Bureau Development (COCADs) Project Leading Groups (PLGs) Counterpart funds County Project Management Offices (CPMOs)
County Water County Agricultural Resources Bureaus Bureaus
Contractor/Supplier
Legend: Coordination and/or Administration Flow of Funds (Counterpart Funds) Lending Agreement Implementing Agency Flow of Funds (ADB Loan Proceeds)
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Appendix 10 Institutional and Capacity Analysis
1. The purpose of the Institutional and Capacity Analysis is to present an assessment of financial and managerial capacity of the Executing Agency (EA) and Implementing Agencies (IAs) envisaged being responsible for the proposed project based on ADB’s Guidelines for the Financial Governance and Management of Projects Financed by the Bank, In particular, adequate institutional capacity is needed to: (i) ensure that subprojects are successfully prepared and implemented; and (ii) facilitate effective and sustainable operations and maintenance of the project facilities. This Appendix provides a summary of existing capacity, current weaknesses, and how these will be overcome during project implementation.
2. According to the implementation arrangement, the EA/IAs of the project will currently involve State Office for Comprehensive Agricultural Development (SOCAD), 6 Provincial Offices for Comprehensive Agricultural Development (POCADs) including Anhui, Heilongjiang, Henan, Jilin, Ningxia and Yunnan and 69 County Offices for Comprehensive Agricultural Development (COCADs). The instrument used for the assessment is ADB’s standard financial management assessment questionnaire (FMAQ) and other information. FMAQs were completed by SOCAD as the EA, six POCADs as the provincial-level IAs and eight representative COCADs as the county-level IAs, based on guidance from the PPTA consultants. The FMAQs are summarized for the EA and IAs in Supplementary Appendix C.
A10.1 Capacity Analysis of Executing Agency
3. The EA is the SOCAD of the Ministry of Finance and has set up its organization structure and project leading group. It takes the overall responsibility for the Project, organizes the local offices for comprehensive agricultural development of the related provinces, prefectures (cities), counties (municipal or districts), together with related organizations of water conservancy, agriculture, forestry, etc., to implement the project together. SOCAD has prior experience in foreign loan management, but has not previously been involved with Asian Development Bank (ADB) projects.
A10.2 Capacity Analysis of implementing Agencies
4. There are six provinces participating in the Project, which have each established their organization structure and project leading groups. The six POCADs, as IAs, have established project management offices to implement the Project in association with related organizations of water conservancy, agriculture and forestry. They are responsible for project management including project implementation plan, quality supervision, procurement, financial supervision.
5. Although none of IAs has previously participated in a project financed by ADB, all, except Yunnan Province, have previous experience in managing and implementing foreign loan projects by the World Bank, the Global Environmental Facility (GEF), the Japanese Bank for International Cooperation (JBIC), and the Government of Germany. This experience will be of value in managing and implementing the Project.
A10.3 Capacity Analysis of Representative Counties
6. There are a total of 69 counties participating in the Project, of which 8 counties (Linquan in Anhui, Binxian in Heilongjiang, Lankao in Henan, Yushu in Jilin, Helan and Qingtongxia In Ningxia and Eryuan and Yulong in Yunnan) were chosen as representatives for the capacity assessment. Each of the representative counties have established County Project Management Offices (CPMOs) in the COCADs.
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Although none of representative COCADs has experience of participating in a project financed by ADB, all except Eryuan County and Yulong County in Yunnan Province have previous experience in managing and implementing foreign loan projects by World Bank, GEF, JBIC or the Government of Germany.
A10.4 Conclusion
7. The EA, and all IAs investigated (provincial and county level) are qualified to manage and implement the Project in terms of financial and management capacity, but they have no previous experience of ADB-financed projects. Procedures and additional training on ADB management policies and procedures need to be provided to enhance their capacity in terms of policies and procedures to ensure effective project implementation.
8. Table A 10-1 provides a more detailed analysis of the capacity needed for the main project preparations and implementation activities, and of the support that will be provided to overcome existing gaps and weaknesses in capacity.
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Table A 10-1 Capacity Analysis of Executing Agency and Implementing Agencies Project Required Tasks Responsible Required Existing Required Stage (Phase) Agency (RA) Capacity Capacity of RA Support for RA A. Design Stakeholder Participation IA supported by Engineering Participatory approaches Limited experience gained Ongoing support of domestic and Consultations Design Institute become institutionalized during PPTA by EA and core consultants IAs Engineering IA who will engage Familiarity with PRC and DIs have strong capacity During the PPTA some transfer • FSR preparation Qualified Engineering Design ADB requirements based on PRC requirements, of knowledge on ADB needs was Institute but less familiarity with ADB provided. Ongoing support of needs domestic consultants is desirable. Finance IA who will engage a qualified Ability to compute project FIRR and FNPV are During the PPTA some transfer Engineering Design Institute FIRR and FNPV calculated as part of of knowledge on ADB needs was and/or qualified Accounting IA analysis standard PRC procedures. provided. Ongoing support of Institute Financial Management Other aspects are not and routinely carried out under domestic consultants is Affordability assessments PRC procedures desirable. Economics IA who will engage a qualified Equivalent of M.A. in Primarily focused on PRC During the PPTA some transfer • Benefit-cost analysis Engineering Design Institute Economics procedures and not on the of knowledge on ADB needs was Experience in project broader assessment provided. Ongoing support of analysis required by ADB int’l and domestic consultants is necessary . Environment IA who will engage a qualified Familiarity with PRC • EIA preparation Institute licensed by MEP requirements Resettlement IA who will make appropriate Familiarity with PRC laws • RP preparation arrangements & ADB guidelines Ethnic Minorities IA who will make appropriate Familiarity with PRC laws • EMDP preparation arrangements & ADB guidelines B. Evaluation Engineering PMO supported by an Familiarity with PRC and Full familiarity with PRC None needed independent expert review ADB requirements requirements. institute Finance PMO supported by an As for design phase As for design phase Support of domestic independent expert review consultants is necessary . institute
Economics PMO supported by an Equivalent of M.A. in As for Design phase Support of domestic • Benefit-cost analysis independent expert review Economics consultants is necessary . institute Experience in project analysis Environment PMO/PPMOs/CPMOs/EPBs Familiarity with PRC • EIA review requirements Familiarity 131
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Project Required Tasks Responsible Required Existing Required Stage (Phase) Agency (RA) Capacity Capacity of RA Support for RA • IEE review with ADB requirements
Resettlement PMO supported by an Familiarity with PRC laws • RP review independent expert reviewer & ADB guidelines. Ability to interpret and apply the resettlement framework Ethnic Minorities PMO supported by an Familiarity with PRC laws • EMDP review independent expert review & ADB guidelines. institute Ability to interpret and apply the ethnic minorities framework C. Construction Project Management PMO Familiarity of ADB Already largely exists, except Consulting services to provide • Project coordination requirements gained for specifics of ADB assistance to set up reporting • Disbursements through previous ADB requirements systems and the PPMS. • PPMS project implementation • Progress reporting Advice & support to IAs Land Acquisition and IAs Familiarity with PRC laws Resettlement and the approved RP Detailed design Qualified Engineering Design Familiarity with relevant Already exists None required Institute PRC design standards Procurement Tendering Company Familiarity with PRC Already exists None required bidding law and ADB procurement guidelines Physical Construction Qualified contractors Previous relevant Already exists None required experience Construction Quality Construction Supervision Co Must possess relevant Already exists None required Assurance PRC license
Environmental monitoring Local EPB and its designated PRC environmental environmental monitoring monitoring certification institute Resettlement monitoring Independent Monitoring Familiarity with PRC laws agency and the approved RP Project Audit Qualified audit agency Familiarity with ADB and Already exists None needed PRC audit requirements D. Management
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Project Required Tasks Responsible Required Existing Required Stage (Phase) Agency (RA) Capacity Capacity of RA Support for RA
Financial Management IAs Only limited involvement IAs capacity okay for limited Development of WUA to become • Financial reporting and by IAs needs. involved in local O&M control
Environmental monitoring As construction phase As construction phase ADB = Asian Development Bank, CPMO = County Project Management Office, EA = executing agency, EIA = environmental impact assessment, EMDP = ethnic minorities development plan, EPB = Environmental Protection Bureau, FIRR=financial internal rate of return, FNPV=financial net present value, FSR = feasibility study report, IA = implementing agency, PPMO = Provincial Project Management Office, PPMS = project performance management system, PMO = project management office, PPTA = project preparatory technical assistance, PRC = People's Republic of China, RP = resettlement plan, MEP = Ministry of Environmental Protection. Source: Consultant’s evaluation
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Appendix 11 Project Implementation Schedule
2011 2012 2013 2014 2015 2016 ACTIVITY 1 2 3 41 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Loan Effectiveness ♦ A. Improved Irrigation Infrastructure and O&M 1. Barrage construction and renovation 2. Canal dredging 3. Construction of canal system structures 4. Pumping station construction/renovation a. New construction b. Renovation 5. Tubewell construction/renovation a. New construction b. Renovation 6. Rural electricity transmission line installation 7. Water-saving interventions a. Canal lining b. Low-pressure irrigation pipes c. Sprinkler irrigation d. Micro-irrigation (including drip) e. Moveable soft pipes 8. Small-scale water storage dams 9. Operation and Maintenance a. Water user association formation/strengthening b. Solar irrigation pilots B. Improved Irrigated Agriculture 1. Land improvement a. Land leveling b. Deep plowing c. Balanced fertilizer application d. Crop residue mulching 2. Rural road construction/renovation 3. Improved Agricultural Practices a. Improved quality seed base b. Integrated pest management c. Agricultural machinery promotion d. Consultation and research 4. Reduced land degradation a. Farmland shelterbelt planting b. Economic forests c. Straw processing and utlilization 5. Farmer capacity building a. Farmer association development b. Farmer training c. Agricultural demonstrations i. Greenhouse crop production ii. Green crop production iii. Organic crop production C. Strengthened Project Management Capacity
1. PPMOs & CPMOs strengthened
a. Domestic and international training
b. Domestic and international study tours
c. Office equipment provided
d. Project management information system development
2. CAD integrated Information & Management System
3. GDCF TA Implemented
4. CDTA implemented 5. Mid-term Evaluation
6. Preparation of Project Completion Report 7. Project Closing ♦
Full-time Activities Intermittent Activities
CAD = Comprehensive Agricultural Development, CDTA = Capacity Development Technical Assistance, GDCF = Gender Development Cooperation Fund, CPMO = County Project Management Office, O&M = Operation and Maintenance, PPMO = Provincial Project Management Office, TA = Technical Assistance Source: Consultant’s estimates
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Appendix 12 Procurement Plan
Project Name: Agricultural Infrastructure Loan (grant) Number : Comprehensive Development Project Loan Amount: US$200 million Executing Agency: State Office for Comprehensive Agricultural Development (SOCAD) Date of first Procurement Plan: Date of this Procurement Plan:
A. Process Thresholds, Review, and 18-Month Procurement Plan
1. Project Procurement Thresholds
Procurement Method To be used above/below (Value $) ICB Works > $10,000,000 ICB Goods > $1,000,000 NCB Works $200,000 NCB Goods $100,000 Shopping (SP) Works
2. ADB Prior or Post Review
Procurement of Goods and Works Procurement Method Prior or Post Comments ICB Works Prior ICB Goods Prior NCB Works Post ADB’s prior review and NCB Goods Post approval is required for the first NCB bidding documents for goods and for works. SP for Works Post SP for Goods Post CP for small grants to WUAs and FAs Post
Recruitment of Consulting Services QCBS Prior Consultant Qualification Selection Prior
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3. Goods and Works Contracts Estimated to Cost More Than $1 Million During the First 18 Months
Contract Ref Value Procurement Expected Date of Prior Contract Description ($'000) a Method Advertisement b Review Comments A. Civil Works 1.1 Anhui (Year 2) 1.1.1 Jieshou 1,246.0 NCB Oct-12 1.1.2 Taihe 1,142.7 NCB Oct-12 Tentative 1.1.3 Funan 1,231.6 NCB Oct-12 1.1.4 Linquan 1,133.9 NCB Oct-12 1.1.5 Yingquan 1,220.0 NCB Oct-12 Tentative 11.6 Yingzhou 1,078.0 NCB Oct-11 1.1.7 Mengcheng 1,209.9 NCB Oct-12 1.1.8 Guoyang 1,121.5 NCB Oct-12 2.1 Henan (Year 2) Yes (1 st 2.1.1 Lankao 1,159.0 NCB Jan-12 contract) 2.1.2 Changyuan 1,143.8 NCB Oct-12 3.1 Jilin (Year 1) NCB March-2012 Yes (1 st 3.1.1 Yushu 1,235.7 NCB Mar-12 contract) 3.1.2 Lishu 1,245.1 NCB Mar-12 3.1.3 Liuhe 1,008.7 NCB Mar-12 3.1.4 Taobei 1,235.7 NCB Mar-12 3.1 Jilin (Year 2) 3.2.1 Yushu 1,275.5 NCB Mar-13 3.2.2 Fuyu 1,041.8 NCB Mar-13 3.2.3 Lishu 1,171.9 NCB Mar-13 3.2.4 Meihekou 1,118.1 NCB Mar-13 3.2.5 Liuhe 1,022.3 NCB Mar-13 4.1 Yunnan (Year 2) 4.1.1 Yiliang 1,100.9 NCB Oct-12
B. Goods 1.1 Henan (Year 2) 1.1.1 Low-pressure pipe 1,402.7 NCB Mar-12 Yes a $1 = CNY6.69, same in below tables. b Where multiple contracts are defined the date is for the first. Subsequent contracts may be advertised later c during the procurement period. No information for counties
4. Consulting Services Contracts Estimated to Cost More Than $100,000 During the First 18 Months
Contract International Ref Recruitment Advertisement Description Value or National Comments Contract a Method Date ($'000) assignment
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5. Goods and Works Contracts Estimated to Cost Less Than $1 Million and Consulting Services Less Than $100,000 During the First 18 Months
Contract Ref Procurement Expected Date of Prior Description Value Comments Contract Method Advertisement Review ($'000) a, c A. Civil Works 1.1 Anhui (Year 1) NCB 1.1.1 Jieshou 401.2 NCB Oct-11 Yes (1 st 1.1.2 Taihe 522.9 NCB Jun-11 contract) Tentative 1.1.3 Funan 321.1 NCB Oct-11 1.1.4 Linquan 362.0 NCB Jun-11 Tentative 1.1.5 Yingquan 385.7 NCB Jun-11 Tentative 1.1.6 Yingzhou 348.3 NCB Jan-11 1.1.7 Mengcheng 414.3 NCB Oct-11 2.1 Heilongjiang (Year 1) NCB To be agreed during loan Yes (1 st 2.1.1 Binxian 224.2 NCB processing contract) 2.1.2 Fuyu 49.8 S 2.1.3 Hailin 290.9 NCB 2.1.4 Ning’an 261.4 NCB 2.1.7 Fujin 89.7 S 2.1.8 Qing’an 175.6 S 2.1.9 Wangkui 229.0 NCB 2.1.10 Dumeng 193.9 S 2.1.11 Saertu 196.2 S 2.1.12 Luobei 310.9 NCB 2.1.13 Suibin 186.8 S 2.1.14 Raohe 237.4 NCB 2.1.15 Baoqing 158.3 S 2.1.16 Hulin 122.6 S 2.1.17 Nenjiang 82.2 S 2.2 Heilongjiang (Year 2) To be agreed NCB during loan 2.2.1 Binxian 412.6 processing 2.2.2 Fuyu 275.8 NCB 2.2.3 Hailin 478.8 NCB 2.2.4 Ning’an 126.8 S 2.2.5 Huachuan 71.7 S 2.2.6 Huanan 289.8 NCB 2.2.7 Fujin 428.3 NCB 2.2.8 Qing’an 287.1 NCB 2.2.9 Wangkui 414.5 NCB 2.2.10 Dumeng 128.4 S 2.2.11 Saertu 595.7 NCB 2.2.12 Luobei 493.3 NCB 2.2.13 Suibin 225.5 NCB 2.2.14 Raohe 378.2 NCB 2.2.15 Baoqing 342.2 NCB 2.2.16 Hulin 301.9 NCB 2.2.17 Nenjiang 309.1 NCB 3.2. Henan (Year 2) Yes (1 st 3.2.1 Zhongmou 925.9 NCB May-12 contract) 3.2.2 Xinzheng 903.7 NCB Feb-12 3.2.3 Qixian 923.8 NCB Oct-12 3.2.4 Kaifeng 849.3 NCB Oct-12 3.2.5 Yanjing 847.2 NCB Oct-12 3.2.6 Qinyang 912.1 NCB Aug-12 3.2.7 Mengzhou 930.9 NCB Oct-12 4.1 Jilin (Year 1) NCB March-2012 Yes (1 st 4.1.1 Shuangyang 492.8 NCB Mar-12 contract) 4.1.2 Changyi 934.6 NCB Mar-12 4.1.3 Fuyu 470.2 NCB Mar-12 4.2 Jilin (Year 2) 4.2.1 Shuangyang 913.7 NCB Mar-13 4.2.2 Changyi 507.5 NCB Mar-13
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Contract Ref Procurement Expected Date of Prior Description Value Comments Contract a, c Method Advertisement Review ($'000) 5.1 Ningxia (Year 1) c 3,263.1 NCB To be agreed during Yes (1 st Expected 8 5.1.1 Helan loan processing contract) contracts with 5.1.2 Yongning average value 5.1.3 Lingwu of $407,900 5.1.4 Qingtongxia 5.1.5 Wuzhong 5.1.6 Zhongwei 5.1.7 Zhongning Pingjibao&Nanliang 5.1.8 cattle farm 5.2 Ningxia (Year 2) c 5,811.2 NCB To be agreed during Expected 8 5.2.1 Helan loan processing contracts with 5.2.2 Yongning average value 5.2.3 Lingwu of $726,400 5.2.4 Qingtongxia 5.2.5 Wuzhong 5.2.6 Zhongwei 5.2.7 Zhongning Pingjibao&Nanliang 5.2.8 cattle farm 6.1 Yunnan (Year 1) Yes (1 st 6.1.1 Yiliang 417.2 NCB Oct-11 contract) 6.1.2 Songming 480.9 NCB Oct-11 6.1.3 Qilin 363.3 NCB Oct-11 6.1.4 Tengchong 420.7 FOR Dec-11 6.1.5 Changning 367.4 NCB Jan-11 6.1.6 Zhaoyang 380.6 NCB Oct-11 6.1.7 Yulong 11.7 S Jan-11 6.1.8 Yao’an 468.3 NCB Oct-11 6.1.9 Shiping 448.4 NCB Oct-11 6.1.10 Heqing 376.9 NCB Nov-11 6.1.11 Eryuan 330.6 NCB Oct-11 6.1.12 Luxi 485.1 NCB Oct-11 6.2 Yunnan (Year 2) 6.2.2 Songming 863.6 NCB Dec-12 6.2.3 Qilin 706.5 NCB Oct-2011 6.2.4 Tengchong 767.6 NCB Dec-12 6.2.5 Changning 687.6 NCB Oct-12 6.2.6 Zhaoyang 668.7 NCB Oct-12 6.2.7 Yulong 13.3 S Jan-12 6.2.8 Yao’an 780.5 NCB Oct-12 6.2.9 Shiping 644.6 NCB Oct-12 6.2.10 Heqing 608.8 NCB Nov-12 6.2.11 Eryuan 519.7 NCB Oct-2012 6.2.12 Luxi 827.5 NCB Mar-13 B. Goods 1. Equipment & materials 1.1 Anhui (Year 1) 1.1.1 Moving soft pipe 1.5 CP May-11 Numerous 1.1.2 Rural transmission 29.9 S May-11 small lines contracts. 1.1.3 Low-pressure pipe 98.7 S May-11 Only 1 st NCB 1.1.4 Transformer 18.7 S May-11 in each 1.1.5 Office equipment 34.7 S May-11 province for prior review 1.1.6 Engineer 445.4 NCB May-11 Management Vehicle 1.1.7 Tube wells 5.2 S May-11 1.1.8 Pumping station 34.4 S May-11 equipment 1.1.9 Saplings 62.4 CP May-11
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Contract Ref Procurement Expected Date of Prior Description Value Comments Contract a, c Method Advertisement Review ($'000) 1.1.10 Comprehensive 14.9 CP To be agreed development MIS 1.2 Anhui (Year 2) 1.2.1 Moving soft pipe 14.3 CP Oct-12 1.2.2 Rural Transmission 56.0 S Oct-12 lines 1.2.3 Low-pressure pipe 518.0 NCB Oct-12 1.2.4 Transformer 116.0 NCB Oct-12 1.2.5 Office equipment 158.3 NCB Oct-12 1.2.6 Tube Well 721.8 NCB Oct-12 1.2.7 Equipment of 467.0 NCB Oct-12 Pumping station 1.2.8 Saplings 390.1 CP Oct-12 1.2.9 Comprehensive 29.9 CP To be agreed development MIS 2.1 Heilongjiang (Year 1) All dates to be 2.1.1 Rural Transmission 71.7 S agreed lines 2.1.2 Transformer 7.5 S 2.1.3 Office equipment 74.7 S 2.1.4 Engineer 658.3 NCB Management Vehicle 2.1.5 Equipment of IPM 9.0 S 2.1.6 Agro-machinery 728.1 NCB 2.1.7 Equipment of 144.2 NCB Sprinkler irrigation 2.1.8 Tube Well 340.8 NCB 2.1.9 Installment and safe 229.1 NCB agriculture 2.1.10 Saplings 69.1 S 2.1.11 Agricultural 9.0 S management MIS 2.2 Heilongjiang (Year 2) All dates to be 2.2.1 Rural Transmission 41.9 CP agreed lines 2.2.2 Office equipment 74.7 S 2.2.3 Engineer 307.6 NCB Management Vehicle 2.2.4 Equipment of IPM 6.0 S 2.2.5 Agro-machinery 605.3 NCB 2.2.6 Equipment of 262.3 NCB Sprinkler irrigation 2.2.7 Tube Well 177.9 NCB 2.2.8 Installment and safe 345.9 NCB agriculture 2.2.9 Saplings 241.3 NCB 2.2.10 Agricultural 457.4 NCB management MIS 3.1 Henan (Year 1) 3.1.1 Office Equipment 251.4 NCB Jan-11 3.1.2 Engineer 448.4 NCB Jan-11 Management Vehicle 3.1.3 Instrument for safe 26.9 S Aug-11 agricultural products 3.1.4 Saplings 55.3 S Aug-11 3.2 Henan (Year 2) 3.2.1 Moving soft pipe 72.5 S Mar-12 3.2.2 Rural Transmission 942.9 NCB Feb-12 lines 3.2.3 Transformer 650.8 NCB May-12 139
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Contract Ref Procurement Expected Date of Prior Description Value Comments Contract a, c Method Advertisement Review ($'000) 3.2.4 Tube Well 737.3 NCB Feb-12 3.2.5 Equipment for 244.8 NCB Feb-12 Modern agriculture demonstration 3.2.6 Saplings 457.0 NCB Feb-12 4.1 Jilin (Year 1) 4.1.1 Office equipment 64.3 S Mar-12 4.1.2 Engineer 635.3 NCB Mar-12 Management Vehicle 4.1.3 Equipment of Pump 163.8 NCB Mar-12 Station 4.1.4 Agro-machinery 554.6 NCB Mar-12 4.1.5 Equipment of 78.1 S Mar-12 Sprinkler irrigation 4.1.6 Tube Well 151.3 NCB Mar-12 4.1.7 Installment and safe 152.4 NCB Mar-12 agriculture 4.1.8 Saplings 323.6 NCB Mar-12 4.2 Jilin (Year 2) 4.2.1 Office equipment 83.7 S Mar-13 4.2.2 Equipment of Pump 109.8 NCB Mar-13 Station 4.2.3 Agro-machinery 707.4 NCB Mar-13 4.2.4 Equipment of 115.7 NCB Mar-13 Sprinkler irrigation 4.2.5 Tube Well 237.2 NCB Mar-13 4.2.6 Installment and safe 193.3 NCB Mar-13 agriculture 5.1 Ningxia (Year 1) To be agreed 5.1.1 Rural Transmission 14.8 S lines 5.1.2 Transformer 6.6 S 5.1.3 Office equipment 257.1 NCB 5.1.4 Engineer 442.5 NCB Management Vehicle 5.1.5 Equipment of IPM 55.7 S 5.1.6 Agro-machinery 292.3 NCB 5.1.7 Equipment of 417.8 NCB pumping station 5.1.8 Installment and safe 114.8 NCB agriculture 5.1.9 Saplings 125.7 NCB 5.1.10 Agricultural 157.0 NCB management MIS 5.1.11 Solar well pilot 28.2 S 5.2 Ningxia (Year 2) 5.2.1 Rural Transmission 69.6 S lines 5.2.2 Transformer 24.7 S 5.2.3 Water saving Project 263.9 NCB 5.2.4 Equipment of IPM 72.9 S 5.2.5 Agro-machinery 327.9 NCB 5.2.6 Equipment of 192.0 NCB pumping station 5.2.7 Installment and safe 192.9 NCB agriculture 5.2.8 Saplings 310.4 NCB 5.2.9 Agricultural 59.8 S management MIS 5.2.10 Solar well pilot 22.6 S
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Contract Ref Procurement Expected Date of Prior Description Value Comments Contract a, c Method Advertisement Review ($'000) 6.1 Yunan (Year 1) 6.1.1 Rural Transmission 4.7 S Aug-11 lines 6.1.2 Transformer 62.8 S Aug-11 6.1.3 Water saving Project 153.0 NCB Aug-11 6.1.4 Office equipment 367.1 NCB Aug-11 6.1.5 Engineer 450.1 NCB Jan-11 Management Vehicle 6.1.6 Equipment of IPM 7.1 QBC Dec-11 6.1.7 Agro-machinery 26.9 S Oct-11 6.1.8 Equipment of 64.4 S Oct-11 pumping station 6.1.9 Installment and safe 41.2 S Jan-11 agriculture 6.1.10 Saplings 46.3 LCS Dec-11 6.1.11 Agricultural 30.9 S Aug-11 management MIS 6.2 Yunnan(Year 2) 6.2.1 Water saving Project 172.7 NCB Oct-12 6.2.2 Office equipment 147.4 NCB Oct-12 6.2.3 Engineer 39.9 S Oct-12 Management Vehicle 6.2.4 Equipment of IPM 13.3 LCS Dec-12 6.2.5 Agro-machinery 30.6 S Oct-12 6.2.6 Equipment of 85.2 S Oct-12 pumping station 6.2.7 Installment and safe 58.1 S Jan-12 agriculture 6.2.8 Saplings 74.7 LCS Dec-12
2 Training & study tours 2.1 Anhui 1532.2 S To be agreed Numerous 2.2 Heilongjiang 1181.3 S To be agreed small 2.3 Henan 1167.8 S February 2011 packages. Including 2.4 Jilin 2515.2 S March 2012 beyond 18 2.5 Ningxia 946.2 S To be agreed months 2.6 Yunnan 908.4 S October 2011 3 WUA support 3.1 Anhui 129.7 CP January 2011 4 pkgs 3.2 Heilongjiang 14.9 CP To be agreed 2 pkgs 3.3 Jilin 219.0 CP March 2012 4 pkgs 3.4 Ningxia 77.7 CP To be agreed 4 pkgs 3.5 Yunnan 7.9 CP December 2012 4 FA support 4.1 Anhui 95.4 CP January 2011 4 pkgs 4.2 Heilongjiang 49.3 CP To be agreed 3 pkgs 4.3 Henan 91.2 CP February 2012 3 pkgs 4.4 Jilin 324.4 CP March 2012 6 pkgs 4.5 Ningxia 127.8 CP To be agreed 6 pkgs 4.6 Yunnan 27.1 CP October 2012 2 pkgs C. Services Henan 59.8 LCS January 2011 Teams of JIlin 14.9 LCS March 2016 national; Ningxia 62.8 LCS To be agreed experts Yunnan 83.0 LCS To be agreed
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B. Indicative List of Packages Beyond 18 Months
No Name of Subproject Location General Est. Value Est Value Est. No. of Procure - Comments Description (CNY'000) ($'000) Contracts ment Method A. Civil Works 1.1 Anhui (Year 3) 1.1.1 Rural transmission lines 3 41.1 6.1 3 CP 1.1.2 Water saving projects 1 874.8 130.8 1 CP 1.1.3 Rural roads 8 27572.0 4121.4 8 NCB 1.1.4 Canal system 8 29914.4 4471.5 8 NCB 1.1.5 Tube wells 8 6310.4 943.3 8 NCB 1.1.6 Pumping stations 1 849.8 127.0 1 S 1.1.7 Greenhouse agriculture 1 647.2 96.7 1 CP 1.2 Anhui (Year 4) 1.2.1 Rural transmission lines 3 46.4 6.9 3 CP 1.2.2 Water saving projects 1 874.8 130.8 1 CP 1.2.3 Rural roads 8 26635.0 3981.3 8 NCB 1.2.4 Canal system 8 26056.7 3894.9 8 NCB 1.2.5 Tube wells 8 6260.7 935.8 8 NCB 1.2.6 Greenhouse agriculture 1 647.2 96.7 1 S 2.1 Heilongjiang (Yr 3) 2.1.1 Rural transmission lines 3 291.0 43.5 3 S 2.1.2 Water saving projects 13 17076.5 2552.5 13 NCB 2.1.3 Rural roads 16 9354.8 1398.3 16 S 2.1.4 Canal system 17 11611.8 1735.7 17 S 2.1.5 Tube wells 6 5455.4 815.5 6 S 2.1.6 Pumping stations 1 960.0 143.5 1 S 2.1.7 Quality seed base 4 858.2 128.3 4 S 2.1.8 Greenhouse agriculture 5 2666.0 398.5 5 S 2.2 Heilongjiang (Yr4) 2.2.1 Rural transmission lines 2 92.0 13.8 2 S 2.2.2 Water saving projects 13 22394.6 3347.5 13 NCB 2.2.3 Rural roads 16 10054.5 1502.9 16 S 2.2.4 Canal system 17 8576.4 1282.0 17 S 2.2.5 Tube wells 5 5168.1 772.5 5 S 2.2.6 Quality seed base 4 1180.0 176.4 4 S 2.2.7 Greenhouse agriculture 4 1116.0 166.8 4 S 2.3 Heilongjiang (Yr 5) 2.3.1 Rural transmission lines 1 8.0 1.2 1 S 2.3.2 Water saving projects 9 7891.0 1179.5 9 S 2.3.3 Rural roads 9 3297.0 492.8 9 S 2.3.4 Canal system 13 4021.0 601.0 13 S 2.3.5 Tube wells 2 1120.0 167.4 2 S 2.3.6 Quality seed base 2 913.8 136.6 2 S 2.3.7 Greenhouse agriculture 2 400.0 59.8 2 S 3.1 Henan (Year 3) 3.1.1 Rural transmission lines 8 7201.3 1076.4 8 S 3.1.2 Transformer House 6 962.0 143.8 6 S 3.1.3 Water saving projects 1 1247.9 186.5 1 S 3.1.4 Rural roads 8 22887.6 3421.2 8 NCB 3.1.5 Canal system 8 7625.3 1139.8 8 S 3.1.6 Tube wells 8 12266.0 1833.5 8 NCB 3.1.7 Pumping stations 1 281.0 42.0 1 S 3.1.8 Greenhouse agriculture 5 5726.8 856.0 5 NCB 3.2 Henan (Year 4) 3.2.1 Rural transmission lines 7 7022.1 1049.6 7 S 3.2.2 Transformer house 7 867.0 129.6 7 S 3.2.3 Water saving projects 1 775.5 115.9 1 S 3.2.4 Rural roads 7 22377.2 3344.9 7 NCB 3.2.5 Canal system 7 5779.0 863.8 7 S 3.2.6 Tube wells 7 11374.9 1700.3 7 NCB
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No Name of Subproject Location General Est. Value Est Value Est. No. of Procure - Comments Description (CNY'000) ($'000) Contracts ment Method 3.2.7 Greenhouse agriculture 4 4866.5 727.4 4 NCB 4.1 Jilin (Year 3) 4.1.1 Water saving projects 8 25316.1 3784.2 8 NCB 4.1.2 Rural roads 6 4250.5 635.4 6 S 4.1.3 Canal system 8 15475.3 2313.2 8 NCB 4.1.4 Tube wells 1 1255.6 187.7 1 S 4.1.5 Pumping station 1 640.0 95.7 1 S 4.1.6 Greenhouse agriculture 1 875.0 130.8 1 S 4.1.7 Quality seed base 1 300.0 44.8 1 S 4.1.8 Small water storage dam 1 1250.0 186.8 1 S 4.2 Jilin (Year 4) 4.2.1 Water saving projects 7 26570.1 3971.6 7 NCB 4.2.2 Rural roads 6 9120.0 1363.2 6 NCB 4.2.3 Canal system 8 8958.1 1339.0 8 S 4.2.4 Tube wells 1 1255.6 187.7 1 S 4.2.5 Greenhouse agriculture 1 875.0 130.8 1 S 4.2.6 Quality seed base 1 360.0 53.8 1 S 4.2.7 Small water storage dam 2 453.2 67.7 2 S 4.3 Jilin (Year 5) 4.3.1 Water saving projects 1 4266.0 637.7 1 NCB 4.3.2 Rural roads 1 1375.5 205.6 1 NCB 4.3.3 Canal system 1 1360.8 203.4 1 NCB 4.3.4 Pumping stations 1 181.3 27.1 1 S 5.1 Ningxia (Year 3) 5.1.1 Rural transmission lines 2 110.0 16.4 2 S 5.1.2 Water saving projects 2 17286.9 2584.0 2 NCB 5.1.3 Rural roads 2 1799.2 268.9 2 NCB 5.1.4 Canal system 7 17892.4 2674.5 7 NCB 5.1.5 Pumping stations 1 221.0 33.0 1 FOR 5.1.6 Greenhouse agriculture 1 1489.6 222.7 1 NCB 5.1.7 Quality seed base 1 1401.5 209.5 1 NCB 5.1.8 Tube will 1 31.5 4.7 1 FOR 5.2 Ningxia (Year 4) 5.2.1 Water saving projects 2 17286.9 2584.0 2 NCB 5.2.2 Rural roads 2 2037.6 304.6 2 NCB 5.2.3 Canal system 8 18384.9 2748.1 8 FOR 5.2.4 Pumping stations 1 413.8 61.9 1 S 5.2.5 Greenhouse agriculture 1 1504.5 224.9 1 NCB 5.2.6 Tube wells 1 18.0 2.7 1 S 5.3 Ningxia (Year 5) 5.3.1 Water saving projects 2 7802.7 1166.3 2 NCB 5.3.2 Rural roads 2 559.2 83.6 2 S 5.3.3 Canal system 7 7190.8 1074.9 7 S 5.3.4 Quality seed base 1 146.2 21.8 1 S 5.3.5 Greenhouse agriculture 1 705.0 105.4 1 NCB 6.1 Yunnan (Year 3) 6.1.1 Water saving projects 11 32359.3 4837.0 11 NCB 6.1.2 Rural roads 10 18129.8 2710.0 10 NCB 6.1.3 Canal system 11 2806.4 419.5 11 S 6.1.4 Pumping stations 1 43.2 6.5 1 S 6.1.5 Greenhouse agriculture 3 1924.4 287.7 3 QBS 6.1.6 Small water storage dam 1 120.0 17.9 1 S 6.2 Yunnan (Year 4) 6.2.1 Water saving projects 11 32633.6 4878.0 11 NCB 6.2.2 Rural roads 11 18567.5 2775.4 11 NCB 6.2.3 Canal system 11 2936.0 438.9 11 S 6.2.4 Greenhouse agriculture 3 1924.4 287.7 3 NCB 6.2.5 Small water storage dam 1 80.0 12.0 1 S
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No Name of Subproject Location General Est. Value Est Value Est. No. of Procure - Comments Description (CNY'000) ($'000) Contracts ment Method 6.3 Yunnan (Year 5) 6.3.1 Rural transmission lines 1 5.0 0.7 1 S 6.3.2 Water saving projects 10 11050.0 1651.7 10 NCB 6.3.3 Rural roads 9 6585.0 984.3 9 NCB 6.3.4 Canal system 11 1111.8 166.2 11 S 6.3.5 Greenhouse agriculture 3 2741.7 409.8 3 NCB 6.3.6 Pumping station 1 294.5 44.0 1 S 6.3.7 Small water storage dam 1 40.0 6.0 1 S B. Goods 1.1 Anhui (Year 3) 1.1.1 Moving soft pipe 96.0 14.3 1 CP 1.1.2 Rural transmission lines 280.0 41.9 1 S 1.1.3 Low-pressure pipe 2340.5 349.9 1 NCB 1.1.4 Transformer 744.7 111.3 1 S 1.1.5 Office equipment 555.0 83.0 1 S 1.1.6 Tube wells 34.5 5.2 1 S 1.1.7 Pumping station equip. 248.9 37.2 1 CP 1.1.8 Saplings 2697.8 403.3 1 NCB 1.1.9 Comprehensive 100.0 14.9 1 CP development MIS 1.2 Anhui (Year 4) 1.2.1 Moving soft pipe 96.0 14.3 1 CP 1.2.2 Rural transmission lines 270.0 40.4 1 S 1.2.3 Low-pressure pipe 2241.6 335.1 1 NCB 1.2.4 Transformer 687.7 102.8 1 S 1.2.5 Office equipment 750.0 112.1 1 S 1.2.6 Tube wells 4820.4 720.5 1 NCB 1.2.7 Sapling 2617.0 391.2 1 CP 1.2.8 Comprehensive 100.0 14.9 1 CP development MIS 1.3 Anhui (Year 5) 1.3.1 Office equipment 120.0 17.9 1 S 2.1 Heilongjiang (Yr 3) 2.1.1 Rural transmission lines 1316.0 196.7 1 S 2.1.2 Transformer 194.0 29.0 1 S 2.1.3 Office equipment 700.0 104.6 1 S 2.1.4 IPM equipment 245.0 36.6 1 S 2.1.5 Agro-machinery 2286.0 341.7 1 NCB 2.1.6 Sprinkler irrigation equip. 2630.0 393.1 1 NCB 2.1.7 Tube wells 1440.0 215.2 1 NCB 2.1.8 Greenhouse and safe 1154.0 172.5 1 S agriculture 2.1.9 Sapling 1038.6 155.2 1 S 2.1.10 Agricultural management 910.0 136.0 S MIS 2.1.11 Straw processing equip. 296.0 44.2 1 S 2.2 Heilongjiang (Yr4) 2.2.1 Rural transmission lines 540.0 80.7 1 S 2.2.2 Transformer 154.0 23.0 1 S 2.2.3 Office equipment 700.0 104.6 1 S 2.2.4 IPM equipment 115.0 17.2 1 S 2.2.5 Agro-machinery 2196.0 328.3 1 NCB 2.2.6 Sprinkler irrigation equip. 3075.0 459.6 1 NCB 2.2.7 Tube wells 1342.0 200.6 NCB 2.2.8 Greenhouse and safe 436.0 65.2 1 S agriculture 2.2.9 Sapling 1703.6 254.6 1 NCB 2.2.10 Agricultural management 910.0 136.0 S MIS
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No Name of Subproject Location General Est. Value Est Value Est. No. of Procure - Comments Description (CNY'000) ($'000) Contracts ment Method 2.3 Heilongjiang (Yr 5) 2.3.1 Rural transmission lines 52.0 7.5 1 S 2.3.2 Transformer 22.0 3.2 1 S 2.3.3 Office equipment 700.0 101.4 1 S 2.3.4 IPM equipment 40.0 5.8 1 S 2.3.5 Agro-machinery 1065.0 154.3 1 S 2.3.6 Sprinkler irrigation equip. 325.0 47.1 1 S 2.3.7 Tube wells 410.0 59.4 1 S 2.3.8 Greenhouse and safe 400.0 58.0 S agriculture 2.3.9 Sapling 3408.5 494.0 1 NCB 2.3.10 Agricultural management 415.2 60.2 1 S MIS 3.1 Henan (Year 3) 3.1.1 Moving soft pipe 432.5 64.6 1 S 3.1.2 Rural transmission lines 5768.4 862.2 1 NCB 3.1.3 Transformer 3465.9 518.1 1 NCB 3.1.4 Low-pressure pipe 8570.3 1281.1 1 NCB 3.1.5 IPM equipment 1078.2 161.2 1 S 3.1.6 Tube tells 4927.0 736.5 1 NCB 3.1.7 Greenhouse and safe 932.5 139.4 1 S agriculture 3.1.8 Sapling 3058.4 457.2 1 CP 3.2 Henan (Year 4) 3.2.1 Moving soft pipe 380.4 56.9 1 S 3.2.2 Rural Transmission lines 5618.9 839.9 1 NCB 3.2.3 Transformer 3948.2 590.2 1 NCB 3.2.4 Low-pressure pipe 7992.4 1194.7 1 NCB 3.2.5 IPM equipment 323.0 48.3 1 S 3.2.6 Tube wells 4961.7 741.7 1 NCB 3.2.7 Greenhouse and safe 1118.6 167.2 1 S agriculture 3.2.8 Sapling 2444.4 365.4 1 CP 4.1 Jilin (Year 3) 4.1.1 Office equipment 650 97.16 1 S 4.1.2 Pump station equipment 64 9.57 1 S 4.1.3 Agro-machinery 4214.3 629.94 1 NCB 4.1.4 IPM equipment 13.2 1.97 1 S 4.1.5 Tube wells 516 77.13 1 S 4.1.6 Greenhouse and safe 817 122.12 1 NCB agriculture 4.1.7 Sapling 2075 310.16 1 NCB 4.2 Jilin (Year 4) 4.2.1 Office equipment 640.0 95.7 1 S 4.2.2 Agro-machinery 5666.0 846.9 1 NCB 4.2.3 Tube wells 516.0 77.1 1 S 4.2.4 Greenhouse and safe 699.8 104.6 1 NCB agriculture 4.2.5 Sapling 1595.0 238.4 1 NCB 4.3 Jilin (Year 5) 4.3.1 Office equipment 180 26.9 1 S 4.3.2 Pumping station equip. 1736.4 259.6 1 NCB 4.3.3 Sapling 520 77.7 1 S 4.3.4 Greenhouse and safe 240 35.9 1 S agriculture 5.1 Ningxia (Year 3) 5.1.1 Rural transmission lines 524.9 78.5 1 S 5.1.2 Transformer 110.3 16.5 1 S 5.1.3 Water saving projects 1765.3 263.9 1 NCB 5.1.4 IPM equipment 229.5 34.3 1 S 145
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No Name of Subproject Location General Est. Value Est Value Est. No. of Procure - Comments Description (CNY'000) ($'000) Contracts ment Method 5.1.5 Agro-machinery 2159.5 322.8 1 NCB 5.1.6 Pumping station equip. 315.4 47.1 1 S 5.1.7 Greenhouse and safe 1745.7 260.9 1 NCB agriculture 5.1.8 Sapling 2311.6 345.5 1 NCB 5.1.9 Agricultural management 400.0 59.8 1 S MIS 5.1.10 Tube will 23.6 3.5 1 S 5.2 Ningxia (Year 4) 5.2.1 Water saving projects 1465.3 219.0 1 NCB 5.2.2 IPM equipment 243.8 36.4 1 S 5.2.3 Agro-machinery 1272.9 190.3 1 NCB 5.2.4 Pumping station equip 315.4 47.1 1 S 5.2.5 Greenhouse and safe 959.1 143.4 1 NCB agriculture 5.2.6 Sapling 2536.9 379.2 1 NCB 5.2.7 Agricultural management 400.0 59.8 1 S MIS 5.2.8 Tube wells 82.7 12.4 1 S 5.3 Jilin (Year 5) 5.3.1 Water saving projects 2364.0 353.4 1 NCB 5.3.2 IPM equipment 86.1 12.9 1 S 5.3.3 Agro-machinery 38.5 5.7 1 S 5.3.4 Greenhouse and safe 607.2 90.8 1 S agriculture 5.3.5 Sapling 863.8 129.1 1 NCB 6.1 Yunnan (Year 3) 6.1.1 Transformers 110.0 16.4 1 S 6.1.2 Management vehicle 180.2 26.9 1 S 6.1.3 IPM equipment 109.0 16.3 1 QBS 6.1.4 Agro-machinery 325.0 48.6 1 S 6.1.5 Pumping station equip 370.0 55.3 1 S 6.1.6 Greenhouse and safe 453.4 67.8 1 S agriculture 6.1.7 Sapling 499.6 74.7 1 LCS 6.2 Yunnan (Year 4) 6.2.1 Engineer Management 150.0 22.4 1 S Vehicle 6.2.2 IPM equipment 179.0 26.8 1 QBS 6.2.3 Agro-machinery 627.0 93.7 1 S 6.2.4 Greenhouse and safe 383.0 57.2 1 S agriculture 6.2.5 Sapling 499.6 74.7 1 LCS 6.3 Yunnan (Year 5) 6.3.1 Rural Transmission lines 5.0 0.7 1 S 6.3.2 Transformer 35.0 5.2 1 S 6.3.3 IPM equipment 146. 8 21.9 1 QBS 6.3.4 Agro-machinery 527.0 78.8 1 S 6.3.5 Pumping station equip 75.0 11.2 1 NCB 6.3.6 Greenhouse and safe 130.5 19.5 1 S agriculture 6.3.7 Sapling 199.9 29.9 1 LCS 7 WUA support 7.1 Anhui 1368.0 204.5 4 CP 7.2 Heilongjiang 610.0 91.2 5 CP 7.3 Henan 82.8 12.3 1 CP 7.4 Jilin 1948.5 291.3 6 QBS 7.5 Ningxia 420.0 62.8 2 S 7.6 Yunnan 170 25.4 1 S
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No Name of Subproject Location General Est. Value Est Value Est. No. of Procure - Comments Description (CNY'000) ($'000) Contracts ment Method 8 FA support 8.1 Anhui 382.2 57.1 4 CP 8.2 Heilongjiang 1065.5 159.3 4 CP 8.3 Henan 830.9 124.2 3 CP 8.4 Jilin 3846.3 574.9 6 QBS 8.5 Ningxia 215.4 31.2 2 S 8.6 Yunnan 592.4 88.6 4 S C. Services Henan 1,400.2 209.3 1 CQS Jilin 149.9 22.4 1 LCS Ningxia 630.2 94.2 1 LCS Yunnan 370.0 55.3 1 LCS
ADB = Asian Development Bank, NCB = national competitive bidding, QCBS = quality- and cost-based selection, S = shopping, CP = Community Participation, pkg = package, n.a. = not applicable, tbd = to be defined.
C. National Competitive Bidding
The Borrower’s Law of Tendering and Bidding of the People’s Republic of China promulgated by Order No. 21 of the President of the People’s Republic of China on August 30, 1999, are subject to the following clarifications required for compliance with the Guidelines:
i. All invitations to prequalify or to bid shall be advertised in the national press, or official gazette, or a free and open access website in the Borrower’s country. Such advertisement shall be made in sufficient time for prospective bidders to obtain prequalification or bidding documents and prepare and submit their responses. In any event, a minimum preparation period of thirty (30) days shall be given. The preparation period shall count (a) from the date of advertisement, or (b) when the documents are available for issue, whichever date is later. The advertisement and the prequalification and bidding documents shall specify the deadline for such submission. ii. Qualification requirements of bidders and the method of evaluating the qualification of each bidder shall be specified in detail in the bidding documents, and in the prequalification documents if the bidding is preceded by a prequalification process. iii. If bidding is preceded by a prequalification process, all bidders that meet the qualification criteria set out in the prequalification document shall be allowed to bid and there shall be no limit on the number of pre-qualified bidders. iv. All bidders shall be required to provide a performance security in an amount sufficient to protect the Borrower/Project Executing Agency in case of breach of contract by the contractor, and the bidding documents shall specify the required form and amount of such performance security. v. Bidders shall be allowed to submit bids by mail or by hand. vi. All bids shall be opened in public; all bidders shall be afforded an opportunity to be present (either in person or through their representatives) at the time of bid opening, but bidders shall not be required to be present at the bid opening. vii. All bid evaluation criteria shall be disclosed in the bidding documents and quantified in monetary terns or expressed in the form of pass/fail requirements. viii. No bid may be rejected solely on the basis that the bid price falls outside any standard contract estimate, or margin or bracket of average bids established by the Borrower/Project Executing Agency. ix. Each contract shall be awarded to the lowest evaluated responsive bidder, that is, the bidder who meets the appropriate standards of capability and resources and whose bid has been determined (a) to be substantially responsive to the bidding documents and (b) to offer the lowest evaluated cost. The winning bidder shall not be required, as a condition of award, to undertake responsibilities for work not stipulated in the bidding documents or otherwise to modify the bid as originally submitted. x. Each contract financed with the proceeds of the Loan shall provide that the suppliers and contractors shall permit ADB, at its request, to inspect their accounts and records relating to the performance of the contract and to have said accounts and records audited by auditors appointed by ADB.
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xi. Government owned enterprises in the Borrower’s country may be permitted to bid if they can establish that they (a) are legally and financially autonomous, (b) operate under commercial law and (c) are not a dependent agency of the Borrower/Project Executing Agency. xii. Re-bidding shall not be allowed solely because the number of bids is less than three (3). . D. Community Participation
Where, in the interest of project sustainability, or to achieve certain specific social objectives of the project, it is desirable in selected project components to (a) call for the participation of local communities and/or nongovernmental organizations (NGOs) in the delivery of services, or (b) increase the utilization of local knowhow and materials, or (c) employ labor-intensive and other appropriate technologies, the procurement procedures, specifications, and contract packaging shall be suitably adapted to reflect these considerations, provided these are efficient and are acceptable to ADB. The procedures proposed and the project components to be carried out by community participation shall be outlined in the financing agreement and further elaborated in the procurement plan or the relevant project implementation document approved by ADB.
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Appendix 13 Project Performance and Monitoring System
Table A13.1: Indicators of Project Performance Monitoring System for Comprehensive Agriculture Development DMF Design Target Sub -target Perfor mance Indicator Unit Description Summary Impact Enhanced Grain output Cropped area Area by type of grain before project mu Area (mu) of each grain crop recorded separately food security increased Area by type of grain with project mu Area (mu) of each grain crop recorded separately and increased Average per Beneficiary Beneficiary population before project no. Baseline data on total population by village rural incomes capita income population Beneficiary households (hh) before no. Baseline data on number of hh by village increased project Beneficiary women before project no. Baseline data on number of women by village Female headed hh before project no. Baseline data on number of female headed hh by village Ethnic minority hh before project no. Baseline data on number of ethnic minority hh by village (specify type of ethnic minority) Beneficiary population with project no. With project population by village Beneficiary hh with project no. With project number of hh by village Beneficiary women with project no. With project number of women by village Female headed hh with project no. With project number of female headed hh by village Ethnic minority hh with project no. With project number of ethnic minority hh by village (specify which type of ethnic minority) Per capita Per capita income before project CNY Per capita income by hh before project income Per capita income with project CNY Per capita income by hh with project Income of low-income farmers CNY/capita Per capita income of the typical tracking famers in low-income Income of middle-income farmers CNY/capita Per capita income of the typical tracking famers in middle-income Income of high-income farmer CNY/capita Per capita income of the typical tracking famers in high-income Income in green crop farmers CNY/capita Per capita income of the typical tracking famers in green farm Per capita income of the typical tracking famers in the Income of PA farmers CNY/capita Professional Association Income of cooperative farmers CNY/capita Per capita income of the co-operative famers in typical tracking Outcome Increased Land quality Low-yielding Area without project ha. Area of low-yielding land in the project area before project agricultural improved land Area with project ha. Area of low-yielding land in the project area with project productivity in Medium-yielding Area without project ha. Area of medium-yielding land in the project area before project the project land Area with project ha. Area of medium-yielding land in the project area with project area High-yielding Area without project ha. Area of high-yielding land in the project area before project land Area with project ha. Area of high-yielding land in the project area with project Crop yields Grain crops Yield by type of grain crop before kg/mu Grain yield in kg/mu recorded separately for each grain crop increased project Yield by type of grain crop with project kg/mu Grain yield in kg/mu recorded separately for each grain crop 149
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DMF Design Target Sub -target Perfor mance Indicator Unit Description Summary Cash crops Yield by type of cash crop before kg/mu Grain yield in kg/mu recorded separately for each grain crop project Yield by type of cash crop with project kg/mu Grain yield in kg/mu recorded separately for each grain crop Cropping Cultivated area Cultivated area before project mu Total area of land cultivated before project intensity Cultivated area with project mu Total area of land cultivated with project increased Cropped area Area of crops before project mu Area of each crop grown during the year before the project Area of crops with project mu Area of each crop grown during the with-project survey year Cropping intensity before project % Estimated as total cropped area/total cultivated area Cropping intensity with project % Estimated as total cropped area/total cultivated area Water use Overall water use efficiency before % Overall water use efficiency before project efficiency project increased Overall water use efficiency with % Overall water use efficiency after project project Surface water use efficiency before % Surface water use efficiency before project project Surface water use efficiency with % Surface water use efficiency after project project Groundwater use efficiency before % Groundwater (tube well) use efficiency before project project Groundwater use efficiency with % Groundwater (tube well) use efficiency after project project Outputs Improved Surface water Irrigation Subprojects completed no. Number of subprojects completed irrigation and irrigation systems Irrigation area ha Irrigation area of subprojects completed drainage systems Reservoirs Existing number no. Total number of the existing reservoirs and embankments in the infrastructure upgraded/ district completed Existing storage capacity 10 4m3 Total storage capacity of the existing reservoirs and embankments in the district Existing irrigated area ha Irrigated area using the water from the reservoirs and embankments in the district Proposed number no. Total number of the proposed reservoirs and embankments to be built in the district Incremental storage capacity 10 4m3 Total storage capacity of the proposed reservoirs and embankments to be built in the district Incremental irrigated area ha Irrigated area using the water from the reservoirs and embankments in the district Completed number no. Total number of the reservoirs and embankments have been built in the project period Completed storage capacity 10 4m3 Total storage capacity of the reservoirs and embankments have
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DMF Design Target Sub -target Perfor mance Indicator Unit Description Summary been built in the project period Gravity Existing water intakes no. Number of the existing water intakes from rivers and lakes Irrigation from Existing diversion capacity m3/s Total existing diversion capacity from the rivers and lakes in the rivers and lakes district Existing irrigated area ha Irrigated area from the rivers and lakes in the district Incremental water ports no. Incremental water intakes from the rivers and lake Incremental diversion area m3/s Incremental diversion capacity from the rivers and lake Incremental irrigated area ha Incremental irrigated area from the water ports Canals Existing channels km Total length of the channel in the project district Proposed channels km Total length of the proposed channel to be built in the district Completed channels km Total length of the proposed channel has been built in the district Pumping station Existing pump stations no. Current number of pump stations in the district Existing installed power capacity kW Current total of installed power capacity of pump stations in the district Existing irrigated area ha Current total irrigated area by the pump station in the district Incremental pump stations no. Number of the newly installed pump stations in the district Incremental power capacity kW Power capacity of newly installed pump station in the district Incremental irrigated area ha Irrigated area to be increased in the district for the newly installed pump stations Tubewell Irrigation Subprojects completed no. Number of tubewell subprojects completed systems systems Irrigation area ha Irrigation area of tubewell subprojects completed developed/ System Existing pumped well no. Current number of pumped wells in the district improved characteristics Existing installed power capacity kW Current total of installed power capacity of the pumped wells in the district Existing irrigated area ha Current total irrigated area using pumped wells in the district Incremental pumped wells no. Number of the newly installed pumped wells in the district Incremental power capacity kW Power capacity of newly installed pumped wells in the district Incremental irrigated area ha Irrigated area to be increased in the district for newly installed pumped well Water saving Water saving Water-saving irrigated area before ha Currently irrigated area using water-saving irrigation measure technology irrigation area project introduced New water-saving irrigated area with ha Incremental irrigated area using water-saving irrigation measure project Types of water Canal lining km Length of existing & new irrigation canals lining saving Low-pressure PVC underground ha Area of low-pressure PVC underground pipelines installed pipelines Sprinkler irrigation systems ha Area of sprinkler irrigation systems installed micro-irrigation (including drip ha Area of micro-irrigation (including drip irrigation systems installed irrigation) movable flexible pipe irrigation ha Area of movable flexible pipe irrigation installed 151
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DMF Design Target Sub -target Perfor mance Indicator Unit Description Summary New small-scale water storage no. Number of new small-scale water storage structures constructed structures Rehabilitated small-scale water no. Number of small-scale water storage structures rehabilitated storage structures WUAs formed/ WUA numbers Existing WUAs no. Current number of WUAs in the district strengthened Incremental WUAs no. Newly established WUAs Coverage area for WUAs ha Coverage area for WUAs in the district WUA Promotion activities no. Number of activities conducted strengthening/ Training of farmers no. Number of farmers trained formation Office equipment no. Office equipment procured WUA registration CNY Cost of WUA registration Buying/constructing water no. Water measurement facilities constructed measurement facilities WUA Female members no. Number of females who are members of the WUA participation Female committee members no. Number of female members on the WUA committee Ethnic minority members no. Number of ethnic minority members of the WUA by minority group Ethnic minority committee members no. Number of ethnic minority committee members by minority group Solar-powered Number of pilot systems installed no. Number installed under the project pilot irrigation Crop yield without system kg/mu Crop yield for each crop to be irrigated by the system systems Crop yield with system kg/mu Crop yield for each crop irrigated by the system developed Amount of water pumped m3 Total amount of water pumped by month Improved Soil Fields leveled mu Area of fields leveled with project support Irrigated improvement Fields deep plowed mu Area of fields deep plowed with project support Agriculture implemented Balanced fertilizer application mu Area benefitting from balanced fertilizer application with project support Crop straw/residue treatment mu Area benefitting from crop straw/residue treatment with project support Service/field Service roads Existing service roads km Total length of the existing hardened road from the villages to the roads field in the project district improved Proposed service roads km Total length of the proposed hardened road to be built Completed service roads km Total length of the hardened road has been built in the project period Field roads Existing field roads km Total length of the existing hardened road in the field Proposed field roads km Total length of the proposed hardened road in the field Completed field roads km Total length of the hardened road has been built in the field Improved Quality seed Quality seed production area before ha Area of quality seed production per year in the project area agricultural project before project practices Quality seed production area with ha Area of quality seed production per year in the project area with adopted project project 152
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DMF Design Target Sub -target Perfor mance Indicator Unit Description Summary Quality seed storage before project m2 Area of warehouses for quality seed storage before project Quality seed storage with project m2 Area of warehouses for quality seed storage with project Quality seed drying area before project m2 Area for quality seed drying and packaging before project Quality seed drying area with project m2 Area for quality seed drying and packaging with project Quality seed availability before project tons Quantity of quality seed available annually before project Quality seed availability with project tons Quantity of quality seed available annually with project Farm Existing machinery no. Current total number of various types of agricultural machinery in mechanization the district Existing power capacity kW Current total power capacity of various types of agricultural machinery in the district Incremental machinery no. Total number of newly acquired agricultural machinery Farm mechanization level % Ratio of mechanized workload and total workload in the fields Farm implements distributed no. Number & type of farm implements distributed IPM Demos Plant protection equipment distributed no. Number and type of plant protection equipment distributed IPM demonstrations no. Number of IPM demonstrations Benefitting farmers no. Number of benefitting farmers Benefitting female farmers no. Number of benefitting female farmers Benefitting ethnic minorities no. Number of benefitting ethnic minorities by ethnic group IPM adoption ha Area that has adopted IPM after demonstrations Reduced land Shelterbelt Shelterbelt area ha Existing shelterbelt area in the project area degradation forests Incremental shelterbelt area ha Area of shelter belts planted by the project Environmental Environmental protection area Existing environmental protection area in the project area Production Incremental environmental protection Area of environmental protection forest planted by the project Forests area Overall forestry Forestry coverage area % Ratio of forestry area to total area Processed Return of straw before project ha Area benefitting from return of processed straw before project straw treatment return of straw with project ha Area benefitting from return of processed straw with project Salinity Saline area before project ha Area in which crop yields are depressed by soil salinity before project Saline area with project ha Area in which crop yields are depressed by soil salinity with project Farmer Farmer Incremental FAs no. Number of newly established farmer associations in the district capacity Associations Improved FAs no. Number of improved farmer associations in the district improved (FAs) Farmer members of FA no. Number of farmers in new and improved farmer associations FA farmer ratio % Ratio of total famers to farmer association farmers in district Female members of FA no. Number of females who are members of the FA Ethnic minority members of FA no. Number of ethnic minorities who are members of the FA, by ethnic minority group Female committee members no. Number of females members on the FA committee
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DMF Design Target Sub -target Perfor mance Indicator Unit Description Summary Ethnic minority committee members no. Number of ethnic minority members of the FA committee Participating farmers no. Number of famers participating in association activities Farmer Training Trained farmer no. Number of famers to be trained Trained women no. Number of women to be trained Trained minority no. Number of minority population to be trained Agricultural Greenhouses Number of demonstrations no. Number of demonstrations of greenhouses conducted demonstrations Females benefitting no. Number of women beneficiaries of greenhouse demonstrations completed Poor farmers benefitting no. Number of poor beneficiaries of greenhouse demonstrations Ethnic minorities benefiting no. Number of ethnic minority beneficiaries of greenhouse demonstrations Area of demonstrations m2 Total area of greenhouse demonstrations Pollution-free Number of demonstrations no. Number of demonstrations of pollution-free agriculture conducted agriculture Females benefitting no. Number of women beneficiaries of pollution-free agriculture demonstrations Poor farmers benefitting no. Number of poor beneficiaries of pollution-free agriculture demonstrations Ethnic minorities benefiting no. Number of ethnic minority beneficiaries of pollution-free agriculture demonstrations Area of demonstrations m2 Total area of pollution-free agriculture demonstrations Green Number of demonstrations no. Number of demonstrations of green agriculture conducted Agriculture Females benefitting no. Number of women beneficiaries of green agriculture demonstrations Poor farmers benefitting no. Number of poor beneficiaries of green agriculture demonstrations Ethnic minorities benefiting no. Number of ethnic minority beneficiaries of green agriculture demonstrations Area of demonstrations m2 Total area of green agriculture demonstrations Improved Provincial/ Training Domestic training persons no. Number of persons participating in domestic training Project county CAD Domestic training duration pm Number of person-months of domestic training provided Management offices International training persons no. Number of persons participating in international training upgraded International training duration pm Number of person-months of international training provided Study tours Domestic study tours persons no. Number of persons participating in domestic study tours Domestic study tours duration pm Number of person-months of domestic study tours provided International tours persons no. Number of persons participating in international study tours International tours duration pm Number of person-months of international study tours provided Equipment Equipment to provincial offices sets Number of sets of equipment provided to provincial CAD offices Equipment to city/county offices sets Number of sets of equipment provided to city/county CAD offices MIS equipment provided sets Number of sets of MIS equipment provided to CAD offices ACWF offices Training Women’s production groups no. Number of women’s production groups trained
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DMF Design Target Sub -target Perfor mance Indicator Unit Description Summary upgraded Capacity County ACWF development no. Number of county ACWF offices strengthened building Village ACWF development no. Number of village ACWF offices strengthened ACWF plus To be defined no. To be defined Integrated Integrated Servers no. Number of servers procured management Management Software Design % Progress with software design system System Remote sensing images procured To be defined established Data procured To be defined Other systems Environmental monitoring system % Progress of environmental monitoring system establishment Social and poverty monitoring system % Progress of social and poverty monitoring system establishment ACWF = All China Women’s Federation, CAD = Comprehensive Agricultural Development, DMF = Design and Monitoring Framework, FA = Farmers Association, hh = household, WUA = Water User Association Source: SOCAD, World Bank projects, modified by Consultant
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Table A13.2: Financial Progress (000s) Completed by this year Progress Allocated Funds Accumulated Progress Completed Funds Accumulated Allocated Completed Annual Allocated Completed Fund Sources Allocated % of Budget Funds % of Budget Funds % of Budget Completed Funds Appraisal MTR Funds Funds Budget Accumulated Accumulated Accumulated Accumulated MTR Accumulated Accumulated by last Year by last year 1. ADB loan 2.Local Counterpart Funds
Provincial Counterpart Funds Municipal Counterpart Funds County Counterpart Funds 3. Self-raised Funds Contribution by labor Contribution by cash 4. Others Total ADB = Asian Development Bank; MTR = mid-term review Source: Consultant’s recommendation based on current practice.
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Appendix 14 Financial and Economic Analysis
A14.1 Introduction
1. The project covers six provinces and 69 counties/cities, 13 of which are classified as national and 4 as provincial key counties for poverty reduction. The focus of the project is on generating sustainable economic growth through completing and improving irrigation systems, with particular emphasis on field-level water distribution systems, in order to improve water-use efficiency and to ensure that the available water resources are used in an environmentally sustainable manner. At the same time the project proposes to address the issues of capacity development for the implementing agencies at provincial and lower level, and gender and development, in particular the increasingly important role of women and ethnic minorities in agricultural production due to the high levels of migration to urban areas of working-age males. The project area includes both existing surface irrigation systems that are performing below their potential due to a combination of incomplete field-level irrigation systems and suboptimal irrigated agricultural technologies, and groundwater (tubewell) irrigation areas that either lack pumps or have deteriorated systems and similarly have suboptimal irrigated agricultural technologies. The project will address these problems by investing in comprehensive packages of improved/completed irrigation facilities and improved irrigated agricultural technologies in order to obtain the maximum benefits from the project area while ensuring that resources are used in an environmentally sustainable manner.
2. The project is expected to benefit about 1.23 million farm population in about 326,000 households covering 501 villages in 111 townships. 1 The area expected to benefit from the project is about 98,350 ha, of which 45,156 ha is currently classified as low-yielding, 50,034 ha as medium-yielding and 3,160 ha as high-yielding. With the project these areas are expected to be improved to 9,805 ha of medium- and 88,545 ha of high-yielding land. The per capita cultivated area is about 0.08 ha (1.20 mu 2). With improved irrigation and the adoption of modern irrigated agriculture technologies the productivity of both staple and cash crops, especially vegetables, is expected to increase. Farmers in the project area will receive increased incomes with the average incremental benefit at full project development estimated at about CNY400/year, equivalent to about 11% of the current per capita income of CNY3,614. In some areas it is likely that the farmers will opt to contract their land to larger-scale operators in order to pursue employment in as migrant workers and to ease the burden on those household members remaining in the rural areas. Moreover farm households will also benefit from the improved service roads and, in some cases, from improved availability of water that can also be used for household consumption.
3. Financial and economic analyses were undertaken in accordance with the relevant guidelines of the Asian Development Bank (ADB). 3 The cost and benefit analysis was undertaken using with- and without-project scenarios. Crop budget data were obtained from the provincial summaries prepared by each of the provincial offices. The analysis was conducted for aggregates of all provincial subprojects since individual subprojects in each province were considered to be fairly similar in terms of the crops and technologies involved. The main assumptions include the following:
(i) Financial costs and revenues are based on 2010 prices and are expressed in constant 2010 values.
1 The total population and households includes Saertu for which it is reported there are no villages or townships as the area is a district of Daqing City. 2 A mu is a Chinese unit of measurement (1 mu = 0.067 ha; and 15 mu = 1 ha). 3 ADB. 1997. Guidelines for the Economic Analysis of Projects . Manila, Philippines 157
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(ii) Project costs are expressed predominantly in local currency and an exchange rate of CNY6.69 = $1.00 is used, where applicable. (iii) A project life of 20 years following completion of the infrastructure construction is assumed. The residual value of infrastructure at the end of the project life is assumed to be zero. (iv) Operation and maintenance (O&M) costs are assumed to commence in the year following completion of the investment and are estimated at 2.5% of the cost of the civil works and equipment, which is the CAD norm for improved irrigation and drainage systems. (v) Economic costs and benefits are expressed in constant 2010 terms and are valued in local currency using the world price-level numeraire . (vi) Taxes and subsidies are excluded in the economic evaluation of the subprojects and overall project. (vii) Physical contingencies have been included in the cost estimates as a government contribution and are included in the economic analysis. (viii) Economic prices for the major traded crops – wheat, maize, rice, soybeans, cotton, and groundnuts – and fertilizer inputs – triple superphosphate, urea, and potassium chloride – are estimated by adjusting world market prices by transportation and processing costs to obtain the market price in the project area. (ix) Economic costs and benefits for nontradable inputs and outputs were derived by adjusting their values by a standard conversion factor (SCF) of 0.93, which is consistent with the SCF used in recent ADB projects for the People's Republic of China (PRC). 4 (x) The opportunity cost of surplus labor is estimated as 0.85 of the prevailing wage rate, and the opportunity cost of scarce labor for skilled labor is estimated as 1.0. These are adjusted by the SCF to obtain the conversion factors. (xi) The opportunity cost of capital used in the analysis is 12% per annum, which represents the opportunity cost of capital for the PRC.
A14.2 Demand Analysis
4. With respect to food self-sufficiency, the project area comprises two different types of provinces, surplus-producing and self-sufficient provinces. The surplus-producing provinces – Anhui, Heilongjiang, Henan, and Jilin – are among the 13 provinces targeted by the government as the source for incremental production to supply the growing needs of the rapidly expanding urban areas such as Beijing, Shanghai, and Tianjin. As the populations of these, and other, areas expand and per capita incomes increase, the demand for high quality and livestock products will increase placing pressure on these surplus areas to supply additional agricultural commodities. The self-sufficient provinces – Ningxia and Yunnan – will also face pressure to produce more agricultural commodities as they seek to avoid falling into deficit and having to rely on imports from surplus provinces. While the project will only make a marginal impact on increasing surpluses and maintaining self-sufficiency, the long-term impact is expected is expected to be greater since the benefits of the project are expected to be extended to other areas and other provinces.
5. Both the sector analysis and the national project proposal 5 have assessed the medium- to long-term demand for the agricultural crops proposed to benefit from the project and have concluded that while China is likely to remain generally self-sufficient in rice and wheat, with surpluses in some years and deficits in others, the demand for maize, soybeans
4 ADB. 2008. Report and Recommendation of the President to the Board of Directors for the Proposed Loan to the People's Republic of China for the Qingdao Water Resources and Wetland Protection Project. Manila; ADB. 2006. Inner Mongolia Autonomous Region Environment Improvement Projec t. Manila. and ADB. 2008. Report and Recommendation of the President to the Board of Directors for the Proposed Loan to the People's Republic of China for the Integrated Ecosystem and Water Resources Management in the Baiyangdian Basin Project . Manila. 5 Based on projections of the Agricultural Policy Study Office of Chinese Academy of Agricultural Sciences. 158
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 and other grain crops is likely to be well in excess of supply. Overall China is projected to achieve a self-sufficiency of about 95%, suggesting that there will be sufficient demand for the incremental production. For high value crops, including vegetable where China is already the world’s largest producer, the increased demand from increasingly wealthy local consumers is expected to account for all additional supplies.
A14.3 Project Alternatives and Least-Cost Analysis
6. The alternative to completing field-level investments and improving agricultural technologies in these identified systems were a substantial capital investment has already been made on headworks, main distribution systems, etc. would be to develop new irrigation facilities in previously undeveloped areas. Clearly this would take longer to implement given the need for more complex project preparation and construction, and would involve a much higher unit cost. Given the potential to upgrade areas where there have already been substantial capital investments but which are providing suboptimal returns, the advantages of making relatively minor investments are clearly evident. Due to the extent of cost savings of the proposed approach, a formal least-cost analysis was considered to be unnecessary.
A14.4 Costs and Benefit Analysis
A14.4.1 Project Costs
7. Project financial investment costs are estimated for each province and the overall project using COSTAB32. The costs include the investment in irrigation infrastructure, improved irrigated agriculture, and capacity building at the provincial and lower levels. Incremental O&M costs for irrigation and improved irrigated agriculture infrastructure are estimated at 2.5% of the cost civil works plus equipment. These relatively high costs are justified by the limited life of many of the investments, including pumps for tubewell irrigation systems, low pressure pipes, etc.
A14.4.2 Project Benefits.
8. The analysis considered direct and indirect as well as both quantifiable and non-quantifiable benefits. In particular there are expected to be substantial environmental benefits arising from improved water use efficiency as well as indirect benefits from the capacity building activities, and limited direct benefits from the improved availability in some areas of water for domestic consumption. However, the analysis focused on the direct and quantifiable benefits related to increased crop production. Under the without-project scenario, the cropped area and cropping intensity are expected to remain constant, while under the with-project scenario the cropped area is expected to remain constant 6 while the cropping intensity is expected to increase from 137% to 147%. 7 While the area of grain crops is expected to increase in the with-project scenario, their relative importance is expected to decline as farmers switch to cash crops, in particular vegetables, to take advantage of the improved irrigation facilities. 8 Full project benefits are expected to be achieved over a three-year period following completion of each year’s activities, reflecting the type of investment planned, which does not require full completion of a subproject before any benefits are obtained.
6 The cropped area represents the annual cultivated irrespective of how many times it is cropped in the year. Since the project involves only land that is currently cropped and there is neither a net reduction in the area cropped due to land being taken out of production nor a net increase due to land being developed, the cropped area is the same without- and with- project. 7 The cropping area is measure as the total area of crops grown during the year divided by the cropped area and expressed as a percentage. Intercrops are apportioned by the share of the land they occupy. 8 These cash crops typically have shorter growing seasons than traditional grain crops, thus permitting more crops to be grown on a specific piece of land during the year and resulting in a higher cropping intensity. 159
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9. Without- and with-project financial crop budgets for the main crops in each of the provincial project areas are detailed in Annex 2. The data used for the budgets, including baseline per capita incomes, per capita income increases, grain output increases, grain yield improvements, and cropping intensity increases, were provided by the provincial project offices and have been carefully reviewed by the Consultant. Actual and possible errors have been referred back to the provinces for review and correction prior to finalization of the analysis. The adjustments included updating of all input and output prices to early 2010 values.
A14.4.3 Economic Rates of Return
10. The economic analysis is undertaken separately for each province and the results aggregated to generate an overall economic analysis (Table A14.1). The analysis indicates that the overall project is economically viable with an economic internal rate f return (EIRR) of 20.2% and an economic net present value (ENPV) of CNY870.8 million. While each of the provincial-level investments is also economically viable there is a wide range of EIRRs, from 11.5% for Heilongjiang to 29.3% for Anhui. The relatively low EIRRs for Heilongjiang and Jilin are as expected since their farming systems are generally based on single-cropping, particularly of rice and, due to climatic constraints, there are few options for increasing cropping intensity. The higher EIRRs in Anhui and Yunnan are largely due to the opportunities for crop diversification and increases in crop intensity following the improved availability of irrigation, while the high EIRR in Ningxia is explained by the yield increases associated with the improved systems.
Table A14.1: Summary of Economic Indicators by Province and for Overall Project Province/Project EIRR (%) ENPV (CNY million) Anhui 29.3 367.6 Heilongjiang 11.5 (8.2) Henan 21.1 184.7 Jilin 14.6 44.6 Ningxia 17.8 77.9 Yunnan 23.2 204.2 Overall Project 20.2 870.8 EIRR = economic internal rate of return, ENPV = economic net present value. Note: Values in parenthesis are negative Source: Consultant’s estimates
A14.5 Financial and Institutional Sustainability
11. Financial analysis is undertaken to assess the financial viability and sustainability of the proposed project. The analysis comprises (i) assessment of provincial and county capacity to finance the counterpart contributions during the implementation period; and (ii) assessment of the financial viability of the investment.
A14.5.1 Capacity to Finance Counterpart Contributions
12. Financial counterpart contributions will be provided by provincial, city 9 and county governments and beneficiaries. The capacity to finance counterpart contributions is assessed for the 6 provincial governments and 8 representative county governments based on comparison of their proposed contributions as determined in the financing plan and fiscal revenue in the most recent annual government report. Binxian in Heilongjiang, Lankao in
9 Only for Anhui, Henan, and Yunnan Provinces. 160
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Henan, and Eryuan and Yulong in Yunnan do not have to provide counterpart contributions as they are poverty counties. All of the provinces and the other IAs have the capacity to finance their counterpart contributions and satisfy the selection criterion (Table A14.2).
Table A14.2: Capacity to finance counterpart contribution by county ($ million) Province Province/ Government Financing Counterpart Financing Required/ County Required Funds Funds Available Province County Available (%) A B C D E C/E or D/E Anhui Province 14.00 19,500 0.07 Linquan 1.33 0.36 56 0.64 Heilongjiang Province 14.00 21,269 0.07 Binxian 1.79 0.45 78 n.a. Henan Province 12.21 14,837 0.08 Lankao 1.00 0.00 31 n.a. Jilin Province 11.21 7,163 0.16 Yushu 0.65 0.22 59 0.37 Ningxia Province 9.60 3,142 0.31 Helan 0.78 0.30 53 0.57 Qiangtongxia 0.78 0.30 64 0.47 Yunnan Province 13.25 21,924 0.06 Eryuan 1.10 0.00 108 n.a. Yulong 1.10 0.00 26 n.a. n.a. = not applicable as counties do not have to provide counterpart funding. a Fiscal revenue for 2008. No revenue information of Binxian in Heilongjiang Source: Consultant’s estimates based on provincial information.
A14.5.2 Financial Viability
13. The project’s financial viability is assessed on the basis of the financial internal rate of return (FIRR) being greater than the weighted average cost of capital (WACC), which is estimated to be 4.19%; a positive FNPV using the WACC as the discount factor; and sensitivity tests. The WACC is estimated as the weighted value of the proportion of the project costs that are proposed to be financed by ADB using an interest rate of LIBOR +0.30% and the proportion that are proposed to be financed by counterpart, including beneficiary, contributions using an interest rate of 10%. 10 The analysis indicates that the overall FIRR is 18.3% and overall FNPV at the average WACC is CNY3,493.1 million. The FIRRs for individual provinces range from 9.4% for Heilongjiang to 31.1% for Anhui, all well above the WACC (Table A14.3)
14. However, since the project is non-revenue generating financial analysis from the perspective of the farmer beneficiaries should focus solely on their contributions. Should the beneficiary contribution include a cash contribution, the projects can be considered as revenue generating from the perspective of the farmers and estimation of the FIRR and FNPV for representative farmers is valid. However, should the contribution be limited to in-kind payments, through contributions of voluntary labor or similar activities, the FIRR will be no longer relevant ant the critical issue for farmers will be as to whether the incremental income from crop production is sufficient to cover the incremental cost of irrigation water and O&M as well as providing the beneficiaries with sufficient additional income to make the investment attractive. Given the high value of the overall FIRRs, the financial viability of the project from the farmers’ perspective can be assured.
10 10% is selected as the appropriate interest rate for the opportunity cost of counterpart funding as this is widely considered to be the achievable financial rate of return for locally financed agricultural projects in China. Consequently it is used as the standard for domestically financed agricultural projects in China. 161
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Table A14.3: Summary of Financial Indicators by Province and for Overall Project Province/Project FIRR FNPV WACC (%) (CNY million) (%) Anhui 31.1 1,394.2 4.29 Heilongjiang 9.4 184.7 3.96 Henan 17.4 606.0 4.29 Jilin 13.9 394.4 3.96 Ningxia 10.8 204.8 3.96 Yunnan 21.1 664.9 4.63 Overall Project 18.3 3,493.1 4.19 FIRR = financial internal rate of return; FNPV = financial net present value (using WACC as discount rate); WACC= weighted average cost of capital. Source: Consultant’s estimates
A14.6 Distribution Analysis
15. Since the primary focus of the project is economic development in order to increase farmers’ incomes and ensure food self-sufficiency, there has been no specific focus on selecting poverty areas or specific groups with poverty problems. In fact the poverty incidence throughout the project area is relatively low. Hence it does not seem appropriate to undertake a detailed poverty analysis. Even so, since the average per capita income in the project area, at CNY3,614 per year, is only 84% of the average for the project counties (CNY4,282/year) it is evident that the project areas are generally in the poorer parts of the counties and that the benefits from the project are largely directed towards the poorer sectors of the community.
A14.7 Sensitivity and Risk Assessment
16. Key risks that could affect the economic viability of the project are incorporated into standard sensitivity tests, including a 10% cost increase, a 10% benefit decrease, a 10% cost increase combined with a 10% benefit decrease, and a 1-year benefit lag. The results are summarized in Table A14.2. Overall, the project appears to be sufficiently robust with respect to these changes since, in particular it would require a 62% cost increase or 38% benefit decrease to make the project economically non-viable. An additional specific area of concern, given the nature of many of the investments, is the impact of increases in the cost of O&M. A sensitivity test on this variable indicates that an increase in O&M costs of 100%, that is from 2.5% to 5.0% per year would reduce the EIRR from 20.2% to 18.2% and the ENPV from CNY870.8 million to CNY651.3 million.
17. Standard sensitivity tests for individual provinces are also shown in Table A14.4. Heilongjiang is the only province with a marginally negative EIRR so that the sensitivity tests are not relevant in the conventional sense. Of the other provinces, Jilin is the most sensitive to both cost increases and benefit decreases, requiring only a 17.3% cost increase or 14.8% benefit decrease for the provincial investment to become economically non-viable. Anhui is the most robust, requiring a 133% cost increase or 57% benefit decrease to affect its economic viability. All of the other provincial-level proposals are considered to be sufficiently robust. The overall project is robust, requiring a 57% cost increase or a 36% benefit decrease to affect its economic viability.
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Table A14.4: Sensitivity Tests of Economic Analysis by Province and for Overall Project Province/Sensitivity Test EIRR ENPV SV SI (%) (CNY million) (%) Anhui 10% cost increase 26.8 340.0 133.2 0.8 10% benefit decrease 26.6 303.2 57.1 1.8 10% cost increase + 10% benefit decrease 24.3 275.6 1-year benefit lag 23.9 291.8 Heilongjiang 10% cost increase 9.9 (33.5) (3.2) 31.0 10% benefit decrease 9.8 (32.7) (3.3) 30.0 10% cost increase + 10% benefit decrease 8.3 (58.0) 1-year benefit lag 9.7 (36.9) Henan 10% cost increase 19.2 157.4 68.1 1.5 10% benefit decrease 19.0 139.1 40.5 2.5 10% cost increase + 10% benefit decrease 17.3 112.0 1-year benefit lag 17.8 130.8 Jilin 10% cost increase 13.0 18.9 17.3 5.8 10% benefit decrease 12.9 14.4 14.8 6.8 10% cost increase + 10% benefit decrease 11.4 (11.3) 1-year benefit lag 12.5 9.2 Ningxia 10% cost increase 15.9 56.2 35.9 2.8 10% benefit decrease 15.7 48.4 26.4 3.8 10% cost increase + 10% benefit decrease 13.9 26.7 1-year benefit lag 14.9 43.5 Yunnan 10% cost increase 21.1 179.2 81.7 1.2 10% benefit decrease 20.9 158.8 45.0 2.2 10% cost increase + 10% benefit decrease 19.0 133.8 1-year benefit lag 19.4 150.7 Overall Project 10% cost increase 18.3 718.4 57.1 1.8 10% benefit decrease 18.1 631.3 36.4 2.8 10% cost increase + 10% benefit decrease 16.3 478.8 1-year benefit lag 17.0 589.2 EIRR = economic internal rate of return, ENPV = economic net present value, SV = switching value, SI = sensitivity index Note: Numbers in parenthesis are negative. Source: Consultant’s estimates
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Appendix 15 Environmental Assessment
A15.1 Introduction
1. The project has been classified by the Asian Development Bank (ADB) as Category B for which an initial environmental examination (IEE) is required. This IEE is prepared in accordance with the requirements of ADB’s Safeguard Policy Statement (June 2009) 1 on the basis of a domestic EIA report that meets the requirements of the People’s Republic of China (PRC) EIA Law (2003) 2 and relevant regulations. 3
2. Under the PRC environmental laws and regulations, and in consideration of the multi-province nature of the project, a comprehensive EIA is undertaken and an environmental impact statement (EIS) prepared. The domestic EIA has been completed by a qualified local institute 4 using methodologies and standards consistent with relevant guidelines established by the PRC Ministry of Environmental Protection (MEP). The approval authority for the domestic EIA is the MEP. The project preparatory technical assistance (TA) consultants assisted in the design and execution of the domestic EIA. The environmental assessment studies, including the domestic EIS and the IEE, are assessed to contain sufficient detail that no environmental assessment review framework is necessary.
A15.2 National Regulatory Framework
3. The EIA process was formally established by the PRC Environmental Protection Law (Trial Implementation) which became effective in 1979. 5 In 2002, the PRC EIA Law was proclaimed, expanding the scope of application to programs and plans. In 2004, the State Environmental Protection Agency (SEPA) [now Ministry of Environmental Protection (MEP)] and National Development and Reform Commission (NDRC) jointly released the Directive on Review and Approval of Different Classes of EIAs for Construction Projects , to clarify the administrative provisions for EIAs after the reform of national investment policies. The Interim Guideline for Public Participation in EIA , published in 2006, details the requirements for information disclosure and public involvement in the EIA process.
4. A ministerial ordinance that defines the classes of construction projects by the magnitude of pollution, and the environmental and social sensitivity of the project sites for the purpose of EIA, was published by the SEPA in 2002 and amended in 2007 and 2008. 6 The ordinance defines construction projects into the following categories: (i) those with significant potential environmental impacts for which a comprehensive EIA is required; (ii) those with slight potential environmental impacts for which a simplified EIA is required; and (iii) those with minor potential environmental impacts for which an environmental impact screening matrix is required. 7
5. According to the 2009 MEP guideline on jurisdictional division of responsibilities for the review and approval of EIA reports, review and approval of EIAs for construction projects requiring the approval, authorization or registration by authority under or granted by the State
1 ADB. 2009. Safeguard Policy Statement . Manila, Philippines. 2 PRC. 2003. EIA Law of the People’s Republic of China . Beijing: People’s Congress. 3 A full version of the EIA is provided as an appendix to this Draft Final Report. 4 China Agriculture University EIA Center with a Class A Certificate issued by PRC Ministry of Environmental Protection. 5 The PRC Environmental Protection Law was amended in 1989. 6 The State Environmental Protection Administration (SEPA) was promoted in 2008 to become the Ministry of Environmental Protection (MEP). 7 SEPA. 2002. Guideline on Environmental Protection Management of Construction Projects . SEPA Order No. 14, 13 February 2002. 164
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Council, or trans-provincial construction projects rests with the MEP. 8 The approval authority for this project is MEP.
A15.3 Description of the Project
6. The proposed project covers a total of 69 counties and county-status cities and districts in six provinces. The six provinces include: Heilongjiang, Jilin, Ningxia, Henan, Anhui and Yunnan. They were selected on the basis of geographical diversity and food self-sufficiency, so that the success of the project can be disseminated to other provinces with similar conditions. In terms of geographical coverage, Heilongjiang and Jilin are situated in north-eastern, Anhui and Henan in central, Ningxia in north-western, and Yunnan in south-western PRC. To maximize poverty benefits, the relatively wealthy eastern provinces are excluded.
7. The overall impact of the project is expected to be enhanced food security and increased rural incomes arising from the increased output of grain and high value crops. At the same time there is expected to be an increase in water use efficiency through the adoption of water saving technologies. Capacity building for provincial and city/county agencies will also assist them the extent the technologies to other areas. The ADB loan will be used particularly for the modernization of irrigation and agriculture infrastructure with the main focus on medium- and low-yield farmland.
8. The project comprises two investment components: (i) improved irrigation and drainage infrastructure, and (ii) improved irrigated agriculture. There is also a capacity building component that focuses on strengthened project management in the two important areas of: (i) improving the project management capacity of all IAs from the provincial down to the county level, as well as at the national level where necessary, and (ii) developing the project monitoring and management system at county, province and national level by providing equipment and training in modern approaches. Training in agricultural comprehensive development policies will be strengthened for the rural cadres, technicians, financial personnel and benefited farmer households in the Project counties, making them familiar with the requirements of fund and project management and therefore better fulfill the tasks of the project.
9. The two investment components will produce the following major outputs: (i) upgrading and expansion of field-level irrigation systems on 97,771 ha of land (56,588 ha of surface irrigation and 41,183 ha of groundwater (tubewell) irrigation; (ii) transformation of 98,350 ha of predominantly low- and medium-yield fields into medium- and high-yield fields, (iii) promotion of water-saving irrigation technology on 74,495 ha, (iv) increase of environment-friendly agricultural products by 15,088 ha, and (v) increase in the area of organic agricultural products by 2,345 ha.
A15.4 Anticipated Environmental Impacts and Mitigation Measures
A15.4.1 Review of World Bank Projects
10. This study has adopted an analogue methodology by taking advantage of previous studies associated with previous World Bank and ADB projects of similar nature. The World Bank-financed projects include: (i) Irrigated Agriculture Intensification Project I (1991-1995); (ii) Irrigated Agriculture Intensification Project II (1998-2005); (iii) Guanzhong Irrigation Improvement Project (1998-2003); (iv) China Water-Saving Irrigation Project (2001-2005); (v) Jiangxi Integrated Agricultural Mechanization Project (2004-2010); (vi) Anning Valley
8 MEP. 2009. Guideline on Jurisdictional Division of Responsibilities for Review and Approval of EIAs for Construction Projects . SEPA Order No. 5, 16 January 2009. 165
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Agricultural Development Project (1999-2006); (vii) Irrigated Agriculture Intensification Project III (2005-2010); and (viii) Agricultural Technology Transfer Project (2005-2011). In recent years, the Asian Development Bank also financed a number of agriculture development projects in the PRC, including: (i) Henan Ecological Agriculture and Productivity Improvement Project (2007-2014); (ii) Dryland Sustainable Agriculture Development Project (2008-2014); (iii) Ningxia Integrated Ecosystem and Agricultural Development Project (2008-2014); and (iv) Shanxi Integrated Agriculture Development Project (2009-2015).
11. The review has enabled the study to focus on critical environmental issues of concern. These critical environmental issues of concern were identified early in the project preparation process in reference to World Bank and ADB project experiences, and in partnership between the central and provincial and local government officials, local design and EIA experts, ADB officers and specialists, PPTA consultants and community representatives.
A15.4.2 Potential Environmental Benefits
12. The proposed project is expected to generate many environmental benefits to the project areas. The major anticipated environmental benefits include: (i) irrigation water savings; (ii) reduced use of agrochemicals; (iii) reduced soil loss and improved soil quality; (iv) reduced salinity and water logging; (v) promotion of green agriculture; and (vi) increased climate resilience.
13. Irrigation Water Savings. Water savings under the project are anticipated to result from the following components: (i) upgrading and expansion of field-level irrigation systems; ii) water saving investments in existing farms; and iii) water management training for beneficiary farmers. Upgrading and expansion of field-level irrigation systems will benefit 97,771 ha of land, comprising 56,588 ha of surface water irrigation systems and 41,183 ha of groundwater (tubewell) systems. Water-saving innovations will be promoted on 74,495 ha, comprising 40,065 ha of canal lining (1,666 km), 10,616 ha of low-pressure PVC underground pipelines (1,318 km), 4,838 ha of sprinkler irrigation systems (605 sets), 109 ha of micro-irrigation (including drip irrigation), and 254 km of movable flexible pipe irrigation, and 19 small (<50,000 m 3) water storage facilities (11 new and 8 improved). The water savings for the whole project are estimated at 75.75 million m3/year.
14. According to PRC water-saving irrigation standards, 9 the composite productivity index (in terms of the output of grain or cotton) for irrigation water should increase at least 15% and the grain production per unit of water should increase by at least 20% after the adoption of water-saving irrigation compared to before. According to existing studies, 10 the adoption of anti-seepage measures for irrigation canals will reduce water loss by 70-80%. For large irrigation districts, the adoption of anti-seepage measures for irrigation canals will increase the water use coefficient by 0.2-0.4, and reduce water loss from canal seepage by 50-90%.
15. Moreover, a water management training program will be implemented under the capacity building component. Farmers will be trained on making more effective use of the infrastructure improvements, and on management techniques that will save additional water.
16. The increase in water use efficiency through the adoption of water-saving irrigation measures and the water management training program and the resultant water savings are particularly significant for water-short northern China, including the project provinces of
9 Ministry of Construction and General Administration of Quality Supervision, Inspection and Quarantine. 2006. Technical Specification for Water-Saving Irrigation Engineering . GB/T50363-2006, published on 7 April 2006, effective 1 September 2006. 10 Gao Feng, et al. 2009. On the Relationship between Anti-Seepage for Irrigation Canals and Water Utilization Coefficient . http://ncsl.mwr.gov.cn/infomationlist.do?method=showDetailInfoList&catalogid=88&formId=7237. 166
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Heilongjiang, Jilin, Henan, Anhui and Ningxia. This will enable the project areas to expand irrigated agriculture within the existing water resource constraints.
17. Reduced Use of Agrochemicals. Integrated pest management (IPM) will be introduced in all six project provinces either as a specific activity or as part of the demonstrations of safe and green agriculture. In Heilongjiang, the interventions include 1,000 ha of IMP demonstration together with purchase of 27 sets of equipment. In Jilin, the IPM program envisages the purchase of 20 sets of IPM equipment. In Henan, IMP introduction and demonstration will be implemented for 606 ha of farmland including the purchase of 9 IMP vehicles. In Ningxia, the interventions include IPM introduction and demonstration on 4,909 ha of farmland together with the purchase of 198 sets of IMP equipment. In Yunnan, the interventions include IPM introduction and demonstration on 3,210 ha of farmland together with the purchase of 310 sets of IMP equipment. IPM training for farmers will be implemented in all provinces. No IPM activities are planned for Anhui
18. The project will also include the adoption of balanced fertilizer application (BFA), which is is one of the key technologies promoted by the Ministry of Agriculture. BFA involves four major steps: (i) measuring the nutrient contents of the soil; (ii) determining the nutrient requirements of the planted crops; and (iii) determining the nutrient needs; and (iv) applying fertilizers according to the needs. BFA will generate a number of benefits, including: (i) increasing output by 5-25% for grain crops and 20-50% for vegetable crops; (ii) improving the quality of agricultural produces; (iii) reducing plant disease and pest infections by strengthening plant health; (iv) reducing the amount of fertilizer use and associated costs; and (v) reducing environmental pollution. Statistical information from Liaoning Province shows that adoption of BFA will result in the reduced use of chemical fertilizers by an average of 10% or 30-45 kg/ha. Thus, with a total BFA area of 28,162 ha for the six provinces, the project is estimated to result in reduced chemical fertilizer use of about1,056 t/year.
19. Reduced Soil Loss and Improved Soil Quality. A number of interventions will serve to reduce soil loss and improve soil quality on about 67,138 ha, including land leveling (16,769 ha), use of crop residues including straw (34,800 ha), balanced fertilizer application (28,162 ha), deep plowing (24,713 ha), multiple-cropping and reforestation. The use of deep plowing will increase the tillage depth from 10-15 cm to 25-30 cm, which will facilitate the release of soil nutrients, improve the physical properties of the soil, promote the growth of roots, reduce nutrient loss and improve the moisture retention and storage capacity of the soil.
20. Reduced Salinity and Water Logging. Salinity is an issue of concern for northern PRC where there is a shallow groundwater table and evaporation exceeds the precipitation. Such concern exists particularly in Ningxia and Henan. Water-logging is often found in the southern PRC where water is abundant, such as Yunnan and Anhui. The risk can be minimized by improved drainage that will lower the groundwater table and carry salts away from the soils. The project will support the construction or improvement of 59 pumping stations (9 new constructed and 50 improved), including 2 in Heilongjiang, 17 in Jilin, 15 in Henan, 7 in Anhui, 26 in Ningxia and 8 in Yunnan. Other interventions that help reduce salinity and waterlogging include canal dredging, culverts, drainage gates, aqueducts, water drops, inverted siphons and overflow weirs.
21. Promoting Green Agriculture. In the PRC, the demand for green agricultural produce is on the rise. Green produce includes both “pollution-free” and organic products. The former refers to controlled use of agrochemicals; and the latter no-use of agrochemicals. There is a certification process whereby an agricultural produce and the producing location can both be certified. The project interventions cover 15,088 ha of pollution-free agriculture demonstration, including 2,140 ha in Heilongjiang, 2,989 ha in Jilin, 600 ha in Henan, 7,617 ha in Ningxia and 1,742 ha in Yunnan; and 2,345 ha of organic farming demonstration, 167
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 including 1,575 ha in Jilin and 770 in Yunnan. These demonstration projects will promote the development of green agriculture in the project provinces.
22. Building Climate Resilience. All of the project interventions will help build resilience to climate change. Improved water management with upgraded irrigation capacity and drainage systems the project areas will be able to better resist drought and floods. Introduction of IPM, coupled with improved seed varieties, will enable farmers to better respond to the new pests that may emerge as a result of global climate change. Expansion of farm shelterbelts by 2,580 ha – including 243 ha in Heilongjiang, 673 ha in Jilin, 578 in Henan, 336 in Anhui, 550 ha in Ningxia and 200 ha in Yunnan – and environmental protection forests by 275 ha – 65 ha in Jilin, 54 ha in Ningxia, and 156 ha in Yunnan – will improve local climate and mitigate climate change. Finally, training and institutional strengthening programs will increase the awareness of local farmers and agricultural agencies on climate change impacts and adaptation.
A15.4.3 Potential Adverse Environmental Impacts and Mitigation Measures
23. Construction Impacts. Most of the civil works under this Project will be small-scale interventions in existing farming areas, ranging from land leveling, canal excavation and lining, construction and rehabilitation of small pumping stations, construction and maintenance of tube wells, construction and rehabilitation of small water impoundments, seeding nurseries, and workshops and administrative buildings. The works are small and relatively simple and scattered in the vast areas across the six provinces. They are undertaken in already developed farmland areas and the construction period will be short (generally within half a year). The civil works will be carried out by local farmers and extension service officers. On-site engineers will be assigned the responsibilities of supervising construction activities with respect to earth and vegetation removal, and disposal of spoils and garbage for compliance with relevant national and local environmental protection laws, regulations, standards and good practices. It is therefore anticipated that impacts will be limited. This judgment is supported by experience under similar World Bank projects, which utilized similar activities and approaches. A detailed review has shown there were no significant negative impacts.11
24. Use of Additional Water Resources. As the project involves expanded irrigation, the use of additional water resources is an issue of concern, especially in the northern provinces that already suffer from water shortages. To address this concern, water balance analysis has been conducted for all provinces. The analysis shows there is adequate water for the project.
25. During project implementation, project areas that use groundwater for irrigation will ensure that (i) no new wells will be built in groundwater overdraft areas, (ii) permits will be obtained for driven well for use of groundwater, (iii) depth of all newly drilled wells does not exceed 50 m, and (iv) ground water level will be monitored.
26. In addition, the significance of comprehensive water saving (“real” water saving) will be stressed during project implementation through implementing a series of measures including engineering, agronomical and intensified water saving measures. Estimations show that after construction of anti-seepage canals the water use rate will rise from the approximately 40% to above 70% while the rate for anti-seepage pipes and sprinklers will reach over 95%. Project implementation is expected to relieve the trend of groundwater overdraft and declining groundwater tables.
11 See Appendix 2 for a detailed review of World Bank-financed comprehensive agricultural development projects. 168
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27. Irrigation Water Quality. The PRC Standard for Irrigation Water Quality (GB 5084-2005) is applicable to the use of surface water, ground water, effluent from livestock and poultry farms and industrial wastewater from agroprocessing plants for irrigation purposes. It contains 16 basic and 11 supplementary 12 parameters of water quality requirements, as well as analytical methods to be used.
28. It has been confirmed through consultations with the provincial PMOs that the water quality in the proposed irrigation areas under the project meets the national standards. The domestic EIA has also investigated the present status of the water quality to verify that it will meet the national standards. Water quality samples will be taken for each irrigation area during the irrigation season. If any violation is discovered, irrigation will be immediately be ceased.
29. Lake Eutrophication. An important environmental issue involving the project is the impacts of agricultural runoffs from the project areas to the lakes of national significance, including Tai Lake, Chao Lake and Dianchi Lake that suffer from eutrophication. Of the three lakes of national significance, Chao Lake is situated in the project province of Anhui but the project counties and cities do not drain into the lake. The Dianchi Lake is situated in central Yunnan. Several project counties and cities are located in the lake catchment. Studies under the World Bank irrigation projects have shown that point sources (industrial wastewater and urban sewage) account for 80-90% of the nutrient loading while non-point sources (especially agricultural runoff) 10-20%.
30. Although agricultural intensification will increase the use of agrochemicals, the project does not finance the procurement of any chemical fertilizers. In response to the deficit of phosphate and potassium, particularly potassium, the Project provinces will adopt a number of measures during the implementation of the project to balance soil fertility, i.e. control of nitrogen (reducing nitrogen application in some project areas), stabilizing phosphate (increasing phosphate application in some areas) and supplementing potassium. In addition, advanced fertilizing techniques will disseminate in project areas, such as deep application, mixed application, etc., thus increasing the efficiency of fertilizers, lowering loss of chemical fertilizers and reducing the negative impacts of irrigation runoff on receiving water bodies, including the lakes of national significance. It is expected that after project implementation, the actual increase of nitrogen and phosphate in downstream lakes due to irrigation run-off from the project areas was minor compared with the existing load of nitrogen and phosphate of these lakes. Therefore, the negative impacts due to project implementation on lake eutrophication are judged to be negligible.
31. Pollution Prevention, Public Health and Biodiversity Conservation. No manufacturing or processing activities will be involved in the project. The possible sources of pollution during the operation phase will be related to the transport, storage, handling and use of agrochemicals such as fertilizers, pesticides, herbicides and seed treatment chemicals.
32. To prevent, reduce, or control the potential contamination of soils, groundwater, or surface water resources caused by accidental spills during transfer, mixing and storage, agrochemicals will be stored and handled in a manner consistent with the recommendations for hazardous materials management presented in the World Bank Group Environmental, Health and Safety Guidelines 13 . It is also worth mentioning that farmers training will be provided under the Project. Although the contents of training are not yet defined, the safe
12 The applicability of supplementary parameters is determined by the environmental protection authority at the county-level or above, on the basis of the water quality baseline characteristics, and environmental and agricultural product quality requirements. 13 World Bank. 2007. Environmental, Health and Safety Guidelines . Washington, DC. 169
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 transport, storage, handling and use of toxic agrochemicals and the safe disposal of containers will be included in the training program.
33. According to the domestic EIA, none of the project interventions will be located in protected areas. Biological surveys as part of the domestic EIA did not reveal any protected species. No public health hazards are anticipated from the operation of project facilities.
34. Physical and Cultural Resources. Surveys of cultural resources have been conducted under the domestic EIA study. No physical, historical or cultural relic sites have been discovered in the Project areas.
35. Involuntary Resettlement and Economic Replacement. Land acquisition and resettlement impacts have been identified, and resettlement plans prepared in accordance with the PRC laws and regulations and ADB’s Safeguard Policy Statement (2009). The resettlement plans provide a socioeconomic profile of affected persons and scope of impacts, and they address issues related to compensation entitlement, the legal framework, public consultations, grievance procedures, environmental protection, rehabilitation measures, and budget and implementation milestones. Resettlement requirements have been carefully considered and incorporated into the project design.
36. Indigenous Peoples . Ningxia and Yunnan are ethnic minority provinces. An assessment of the possible impacts of the project on ethnic minorities has been conducted in accordance with ADB’s Safeguard Policy Statement (2009) . The ethnic minorities are equal beneficiaries; no negative ethnic impacts are expected. Detailed results can be found in the poverty/social impact assessment report.
A15.5 Analysis of Alternatives
37. An analysis of alternatives has been performed. Alternatives to the project (i.e., the without-project scenario) and project alternatives (i.e., alternative designs) have been examined. For the without-project scenario, the use of traditional irrigation method would have a water use efficiency of about 30% compared to 70-80% for water-saving methods which will be adopted under the proposed Project. For the same token, the use of traditional fertilizer application methods would poor soil textures and high costs to local farmers.
38. The selection of project provinces and project counties in each province have taken into consideration of the local circumstances, including environmental and social factors such as water availability and potential for replication. Alternative designs for project interventions have been examined during the feasibility study phase.
A15.6 Information Disclosure, Consultation and Participation
39. Preparation for the project has been led by the State Office for Comprehensive Agriculture Development (SOCAD) within the Ministry of Finance (MOF) and its provincial counterparts from each province. Experts and personnel from relevant line agencies, such as the agriculture, water resources and environmental protection bureaus, as well as universities and technical institutions, have been mobilized and involved in detailed preparation discussions.
40. The primary project beneficiaries will be farmers living and working in the project area. During project preparation, extensive consultations with local farmers have been carried out by the county and city PMOs and design institutes. Further consultations have also been conducted by the EIA institute. Consultations have covered approximately 2,000 farmer households for each province and will continue during project implementation through the
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41. Information about the Project was posted on the internet in March and April 2010 in accordance with the Interim Guideline on Public Participation in EIA (2006) 14 . The draft EIA report has also been disclosed on the website of the respective finance bureaus to solicit further public comments. The public comments and suggestions have been incorporated into the formulation of environmental mitigation measures. The final domestic EIAs and the IEE will be posted on the ADB website.
A15.7 Grievance Redress Procedure
42. Public participation, consultation and information disclosure undertaken as part of the local EIA process, assessment and development of resettlement plans, and consultations undertaken by the project consultants have discussed and addressed major community concerns. Continued public participation and consultation has been emphasised as a key component of successful project implementation. As a result, major issues of grievance are not expected. However, unforeseen issues may occur. In order to settle such issues effectively, an effective and transparent channel for lodging complaints and grievances has been established (see Supplementary Appendix F), in parallel with the mechanisms developed under the resettlement planning process (Appendix 19).
43. In addition to the established project specific channels, ADB's overall accountability mechanism (2003) applies 15 . The mechanism provide opportunities for people adversely affected by ADB-financed projects to express their grievances; seek solutions; and report alleged violations of ADB’s operational policies and procedures, including safeguard policies. ADB’s accountability mechanism comprises two separate, but related, functions: (i) consultation, led by ADB’s special project facilitator, to assist people adversely affected by ADB-assisted projects in finding solutions to their problems; and (ii) providing a process through which those affected by projects can file requests for compliance review by ADB’s Compliance Review Panel.
A15.8 Environmental Management Plans
A15.8.1 Objective
44. The objective of establishing an EMP is to propose appropriate mitigation measures and to recommend establishment of institutions or mechanisms to monitor and ensure compliance with environmental regulations and implementation of the proposed mitigation measures. Such institutions and mechanisms will seek to ensure continuous improvement of environmental protection activities during preconstruction, construction, and operation in order to prevent, reduce, or mitigate adverse impacts. The EMP draws on the domestic EIA report and on the TA discussions and agreements with the relevant government agencies.
45. Since the six provinces under the project vary in natural conditions and differ in focuses on environmental issues, separate EMPs by province are prepared, according to the requirements of the Bank review missions, to make the plans more targeted at environmental issues and facilitate their implementation by each of the provinces.
A15.8.2 Important Features
46. The overall EMP and provincial EMPs have the following features:
14 Ministry of Environmental Protection. 2006. Interim Guideline on Public Participation in EIA . Beijing, China. 15 The accountability mechanism replaced ADB’s Inspection Function (1995). 171
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(i) Identifying environmental issues involved in the project, based on which the objectives and contents of environmental management are decided, making the EMP more targeted and applicable; (ii) Emphasizing analysis, evaluation and application of environmental monitoring data/results; (iii) Emphasizing water resources protection as a priority of environmental management in the project areas; (iv) Emphasizing water-saving irrigation, IPM, balanced fertilizer application and organic farming as priorities of environmental management in the project areas; (v) Including a legal covenant relating to dam and reservoir safety, to ensure preparation of an initial safety assessment report, prior to the start of project implementation, of all dams and reservoirs to be used under the project and the annual dam and reservoir safety monitoring reports, and provision to the Bank of inspection and acceptance documentation. (vi) Clarifying environmental management agencies, their respective responsibilities and costs and sources of funding for EMP implementation; and, (vii) Making necessary adjustments to the items, parameters, venue and frequency of environmental monitoring program;
47. In light of the current model for construction management of physical projects in China, the environmental protection measures to be implemented by the construction contractor are summarized and incorporated into the contract in the form of “rules for environmental protection of construction”, with its implementation being supervised by the on-site engineer entrusted by the county/city PMO.
A15.8.3 Environmental Management Plans
48. The EIA contains one overall EMP and six provincial EMPs. Each of the EMPs includes, among other things, a summary of and potential environmental impacts and mitigation measures, environmental monitoring program, public consultation program, reporting and supervision, feedback and adjustment mechanism and institutional responsibilities. The EMPs are provided in the appendices to the IEE (Supplementary Appendix F).
A15.9 Conclusions and Recommendations
49. The project is expected to generate multiple environmental benefits including: (i) irrigation water savings; (ii) reduced use of agrochemicals; (iii) reduced soil loss and improved soil quality; (iv) reduced salinization and water logging; (v) promotion of green agriculture; and (vi) increased climate resilience. They will contribute to sustainable agricultural development and income generation for farmers.
50. No project activities will be carried out in environmentally or socially sensitive areas. Without implementation of mitigation measures, the potential environmental impacts of construction activities will be minor and temporary and localized, considering the vast area and small scale of the engineering works.
51. In identifying and assessing the potential environmental impacts during the operation phase, a review of World Bank’s previous comprehensive agriculture development projects in the PRC has been carried out. The environmental analysis focused on the following issues: (i) water availability; (ii) irrigation water quality; (iii) lake eutrophication; (iv) dam and reservoir safety; (v) pollution prevention, public health and biodiversity protection; (vi) physical and cultural resources; (vii) involuntary resettlement and economic displacement; and (viii)
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52. Seven EMPs, including one for the overall project and one each for the six project provinces, have been developed. The EMPs include, among other things, a detailed description of the potential environmental impacts and mitigation measures, environmental monitoring program, public consultation program, reporting and supervision, feedback and adjustment mechanism and institutional responsibilities. It is carefully designed to fit into the PRC’s existing environmental management system.
53. The IEE contains several important recommendations that are worth highlighting. It has been recommended that the safety of all existing dams and reservoirs to be used for irrigation under the project be assessed. A time-bound action plan will be prepared for rehabilitating and strengthening the faulty dams and reservoirs, if any. The safety assessment report and the time-bound action plan will be submitted to ADB for review and approval prior to project implementation. It is further recommended that the capacity building component include a training of trainers program for county/city agricultural service centers who, after being trained, will offer training to local farmers. The training of trainers program and the farmers’ training program will cover the priority areas of project: water-saving irrigation, IPM, balanced fertilizer application and organic farming.
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Appendix 16 Summary Poverty Reduction and Social Strategy
Country/Project Title: Agricultural Infrastructure Comprehensive Development Project
Lending/Financing Department/
Modality: Division:
I. POVERTY ANALYSIS AND STRATEGY
A. Linkages to the National Poverty Reduction Strategy and Country Partnership Strategy Contribution of the sector or subsector to reduce poverty in PRC: The Project is contributing to the Chinese Government’s efforts to reduce poverty during the 12th Five-Year Plan (2011-15), including strengthening agricultural infrastructure, and thus increasing the income of poor and low income farm households. Improvements in water resources infrastructure and management will reduce non-income poverty due to lack of reliable water and increase incomes from agriculture and industry, raising the productivity of labor, water, and land resources, while also strengthening male and female farmers’ capacity to improve their livelihoods. The project is linked to the Chinese government’s poverty reduction strategy, combining a broader concept of poverty, better targeting accuracy and preparations for a comprehensive social security system. The project is in line with ADB’s country partnership strategy for China to continue reducing poverty through economic growth and focusing on poor people in rural areas and migrants from these areas. The majority of China’s poor still live in the countryside, in the central and western provinces where most of China’s minority nationalities are concentrated. These provinces lag behind the eastern provinces in achieving the Millennium Development Goals.
B. Poverty Analysis Targeting Classification: General Intervention 1. Key Issues There are 6 provinces involved in the project: Anhui and Henan are located in the middle part of the country; Ningxia and Yunnan in the western multi-national area; and Heilongjiang and Jilin in the Northeast. Most of the selected counties are major grain production areas. They also include comparatively poor counties. The ratio of poverty counties included in the project area (27.5%) is less than the ratio of poverty counties in the six project provinces (31.7%), particularly in Henan province (11.1% in the project area and 27.8% poverty counties in the province) and Ningxia AR (25% in the project area and 52.4% throughout Ningxia). The two provinces with the highest ratio of poverty counties (Ningxia: 52.4%, Yunnan: 60.5%) are also the two provinces with a considerable percentage of ethnic minority populations (Ningxia: 36.5% [2007], Yunnan: 55.2% [2007]). The main reasons for the lower ratio of poverty counties included in the project may be summarized as follows: (i) the primary objective of the project is rehabilitating old irrigation systems, improving agricultural production capacity, and ensuring food security for the whole nation, thus poverty reduction may be defined as a secondary objective of this project; and (ii) due to this overall objective some of the nine standards for selecting project counties are not in favor of selecting poverty counties, e.g., suitable sub-projects should be able to provide large areas of land for agricultural production – but poverty counties in mountain areas are not able to satisfy this criterion. A similar example is the requirement of assuring availability of water resources. Here part of the poverty counties are lacking access to sufficient water resources (which might be the reason for being poor) and are thus not eligible for the project. Since agricultural infrastructure in the project areas is old and deteriorated, and of low production standard, many villagers have to spend much time waiting for the water to get to the farmland. 2. Design Features. The poverty reduction and social strategy of the project follows a comprehensive and integrated approach of targeting rural women and minority nationality households (if applicable), and including poor and low income farm households in extending project benefits to the local population in the project areas. This approach has been mainstreamed into the project design and will be integrated with each of the
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three project components (irrigation and drainage infrastructure, irrigated agriculture and project management) through participation in technical and other training and employment, participation in local decision-making processes, institutional capacity building and community empowerment. Social and gender indicators have been included in the DMF and specific measures have been designed in the GAP, the Social Action Plan (SAP) and the EMDPs. The project will contribute to poverty reduction, including non-income poverty reduction, increased farmer incomes, especially for poor residents, and capacity building to improve their livelihoods. According to the field study the project will have a significant impact on poverty reduction by (i) reducing agricultural production costs; (ii) reducing the time needed for getting water. Additionally, the leakage problem will be reduced. Based on the analysis of Sizhiqu Village in Wuzhong City, Ningxia AR, 300-400 m3/mu of water can be saved during rice production by improving the irrigation system. From the perspective of the farm household, the cost of the agricultural production will be reduced. In terms of the overall system, more farmland can be irrigated with the same amount of water. Improved and more stable yields can thus be guaranteed for more farmland. (iii) The project will increase per capita farmer incomes by about CNY370/year. (iv) Construction and renovation of agricultural infrastructure (e.g. ditches, canals and roads) can improve basic conditions for developing new agro- industries. Land, where formerly only rice and wheat were planted, can now be changed for planting vegetables in greenhouses. With the same amount of land, the output of the greenhouse crops will be several times higher than that of traditional agriculture, thus paving the way for reducing poverty. II. SOCIAL ANALYSIS AND STRATEGY A. Findings of Social Analysis Farmers in the project areas are the intended beneficiaries of the project. To ensure the smooth implementation and sustainable utilization of irrigation infrastructure facilities, it is necessary to consider the current local farmers organization and governance situation. The field study and extensive discussion with local farmers, officials and technical staff indicate that the WUAs should be designed according to the local geographical conditions and sociocultural characteristics. The current WUAs are diverse, without a unified pattern, e.g., three types of WUAs can be summarized according to the investigation: (i) “Owner’s Responsibility System” in Fuyang Municipality, Anhui Province; (ii) WUAs in Irrigated Areas of Ningxia AR, and (iii) the Responsibility System of Designated Persons in Heqing County, Yunnan Province. Different systems and organizations exist in different project counties. The project therefore should not follow a “one-fits-all” approach in establishing and strengthening WUAs and other farmers’ organizations but carefully analyze the local situation and, together with relevant organizations, such as the ACWF, the Poverty Alleviation Bureaus and Minority Nationality Affairs Offices (where applicable) find solutions adapted to local circumstances. The primary beneficiaries – the farmers in the project areas, especially the women and the poor groups – strongly need the agricultural facilities to be improved, and in some communities, farmers strongly demand local governments to help improving the irrigation and drainage facilities and rural roads. The secondary beneficiaries, such as the villagers nearby the project, leaders of local governments, the technicians in PMO and concerned institutions, also promote the project. In their perspective, there are no better projects than the CAD projects. It needs only limited investment, but helps a considerable number of famers in those relatively poor areas. It also promotes regional development. B. Consultation and Participation Active participation of beneficiaries is crucial for the success of CAD projects. Information disclosure and participation of project beneficiaries play an important role in extending project benefits to men and women, to poor and low income farmer households and, in some project areas, to households of various ethnic minorities, Responsible decision-making needs timely and comprehensive information of the intended beneficiaries. Regarding collective village affairs, villagers should know the situation, discuss relevant problems and participate in decision-making through the Village Assembly or the Village Representative Assembly. As for individual issues, such as house demolition, villagers should be informed on relevant issues of the project in time, on related policies of the central and local governments and on their individual rights. Secondary stakeholders should be able to get the relevant information from newspapers, television, internet, etc. According to the field study, villagers in the selected project counties were well informed about the proposed project. In addition, they care about the project very much, and hope the subproject in their villages will start as soon as possible. At this early project stage it is difficult for the local cadres to offer accurate and reliable information.
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At project preparation stage, consultation and decision-making by the “one case, one meeting” mechanism has proved to be suitable for deciding on the proposed project. This has been the experience of earlier CAD projects. With the “one case, one meeting” mechanism villagers have been informed about possible risks and benefits of the project, their rights, obligations and responsibilities. Information has been disclosed particularly to villages that have not had the experience of implementing CAD projects before. After village heads have been informed, they follow up with information and start mobilization work. Village (Representative) Assemblies decide whether village cadres apply for the project formally. Female representatives should at least account for 40% of the total representatives. If there are one or more ethnic groups in the village, there should also be a corresponding proportion of ethnic minority representatives.
. What level of consultation and participation (C&P) is envisaged during the project implementation and monitoring? Information sharing Consultation Collaborative decision making Empowerment
3. Was a C&P plan prepared? Yes No
A C&P plan was prepared and is included in the Supplementary Appendix on Poverty Reduction and Social Strategy . No particular resources need to be invested, because this kind of consultation and participation mechanism has been formed in post CAD projects of the proposed project counties. Villagers and local governments are therefore familiar with the procedures.
C. Gender and Development 1. Key Issues. Core to the effective delivery of all project components is the enhancement of gender equality and rural women’s empowerment. 75% of rural women in China participate in agriculture. The main issues regarding gender equality of rural women in the project areas may be summarized as follows: (i) to participate in the elaboration and implementation of development planning at all levels, (ii) to have access to adequate health care facilities, (iii) to benefit directly from social security programs, (iv) to obtain all kinds of training and education as well as the benefit of all community and extension services in order to increase their technical proficiency, (v) to organize self-help groups and cooperatives in order to obtain equal access to economic opportunities through employment or self-employment, (vi) to participate in all community activities, (vii) to have access to agricultural credit and loans, marketing facilities, appropriate technology and equal treatment in land and agrarian reform as well as in land resettlement schemes to enjoy adequate living conditions particularly in relation to housing, sanitation, electricity and water supply, transport and communications. During the PPTA, interviews held with female and male focus groups confirmed priority needs for water and indicated interest and support from women and men in greater participation in water management. Public consultation roundtables included women, and showed importance of a proactive approach to disseminating information, inviting local leaders, and selecting convenient locations. 2. Key Actions. Measures included in the design to promote gender equality and women’s empowerment—access to and use of relevant services, resources, assets, or opportunities and participation in decision-making process: Gender plan Other actions/measures No action/measure A Gender Action Plan (GAP) has been developed to protect women’s right, interests, and participation while maximizing their contribution to the project. The proposed gender design features correspond to the three project components: (i) Improved irrigation and drainage infrastructure, (ii) Improved irrigated agriculture, and (iii) strengthened project management capacity by (i) encouraging the participation of women in the establishment and strengthening of WUAs, (ii) women’s participation in the establishment and strengthening of FAs and improved capacity through training, including training on pollution free and organic agriculture, and (iii) women’s economic empowerment (as part of strengthened project management). The project management will ensure that all project implementation units effectively 176
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implement and monitor gender-related activities and actions.
A Rural Women’s Economic Empowerment grant subproject complements the project by pilot-testing different approaches and interventions to promote the economic empowerment of women in selected villages. Three possible activities are proposed: (i) Training needs will be identified through consultation and focus group discussion with local women. Training on agricultural skills, pollution free and organic agriculture marketing, alternative livelihoods, business skills, and gender awareness approaches are likely to be included. Training sites should be selected considering suitability and access for local women. Teachers with local knowledge and with knowledge of relevant ethnic minority languages will be considered with priority. (ii) To ensure sustainability of the subproject, it is vital to strengthen the capacity of the ACWF from county level down to the village level so that they can carry out women’s empowerment activities. Training needs will be identified through consultation with members of ACWF. Courses are likely to include mobilization, organization, leadership skills and thematic skills related to community empowerment and gender issues. The training will be conducted in 6 counties in Anhui, Ningxia and Yunnan Province, 1 which were selected based on the following criteria: (a) participating county in the Project; (b) county with high poverty incidence or high rate of ethnic minorities; (c) high male out-migration rate; (d) high enthusiasm of the county governments; and (e) county with a high demonstration effect. (iii) Introducing an innovative model of women’s empowerment: “ACWF plus” Given the importance of women’s participation in the organization and decision-making of WUAs and FAs as part of an effective and sustainable implementation of the CAD project, it is suggested to establish a new model of collaboration between the local ACWF and FAs and WUAs. This would provide an innovative, flexible and gender-sensitive approach for sharing specialized training, information, including market information, production and marketing activities. Such an “ACWF plus” model could also include a blending with rural grass-root women’s organization which have been established in recent years, but are often scattered and not very powerful. Such a model could contribute to women’s empowerment as well as to community empowerment and strengthen the bargaining power at the local level. Details of the GAP are set out in Appendix 18; for details on the Rural Women’s Economic Empowerment grant subproject refer to Appendix 19.
III. SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS
Issue Significant/Limited/ Strategy to Address Plan or Other Measures No Impact Issue Included in Design
Significant Some subprojects require Involuntary Limited resettlement. A Full Plan Resettlement None resettlement framework Short Plan has been prepared Resettlement Framework together with 2 full No Action resettlement plans for sample subprojects in accordance with ADB’s SPS. Significant There are Hui people in Indigenous Peoples Limited Ningxia Autonomous Plan Other Action None Region (AR), and Bai, Indigenous Peoples Naxi, Yi, Lisu and Hui in Framework Yunnan Province. An No Action Ethnic Minority Development Framework has been prepared for the county PMOs. 8 detailed Ethnic Minority Development Plans at county level have been
1 These are Linquan County and Funan County in Anhui Province, Helan County and Qingtongxia City in Ningxia Hui AR, and Eryuan County and Yulong County in Yunnan Province. 177
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prepared for Helan, Qingtongxia and Wuzhong in Ningxia AR, and Eryuan, Heqing, Yaoan, Yiliang and Yulong in Yunnan Province.
Significant Additional jobs will be Labor Limited created during the Employment Plan None construction works. opportunities Other Action Labor retrenchment No Action Core labor standards
Significant Of the estimated total cost Limited of $318.65 million, the ADB Action Affordability None loan will finance $200 No Action million (62.76%). Central government will finance the financing charges during implementation of $10.17 million (3.19%). Provincial and local governments will provide counterpart funds of $84.98 million (26.67%), and beneficiary farmers will contribute $23.50 million (7.35%) in cash and kind, the latter predominantly as labor inputs. The field work shows that farmers and village committees are eager to implement the subprojects in their communities.
Other Risks and/or Significant The laborers for the Vulnerabilities Limited construction work will be Plan HIV/AIDS Other Action None from local or nearby Human trafficking No Action Others(conflict, political communities, so no project instability, etc.), please related impacts regarding specify communicable diseases are expected.
IV. MONITORING AND EVALUATION
Are social indicators included in the design and monitoring framework to facilitate monitoring of social development activities and/or social impacts during project implementation? Yes □ No
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Appendix 17 Gender Action Plan
1. With the transformation of the Chinese economy and society, changes have taken place in the structure of China’s agricultural labor force. Recently, an increasing number of men in the Central and Western regions of China have become migrant workers. While young women also leave the countryside to work in the cities, most married women with children stay at home and, together with the elderly, become the backbone of the agricultural labor force. According to the field work, about 60-70% of agricultural laborers in the project area are females. Over the last 30 years, the People’s Republic of China has achieved significant poverty reduction. However, women have not benefited equally due to socially assigned gender roles in production and reproduction. The Gender Action Plan (GAP) is developed to protect women’s right, interests, and participation while maximizing their contribution to the project. The proposed gender design features correspond to the three project components: (i) improved irrigation infrastructure and operational maintenance, (ii) improved irrigated agriculture, and (iii) strengthened project management capacity. The focus on (i) encouraging women’s participation in the establishment and strengthening of water user associations, (ii) women’s participation in the farmer associations and improved capacity through training, including training on pollution-free and organic agriculture, and (iii) women’s economic empowerment (as part of strengthened project management). Project management will ensure that all project implementation units effectively implement and monitor gender-related activities and actions.
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Table A17: Gender Equality Outputs, Activities, Targets and Responsibilities Gender Equality Outputs/ Activities Targets Responsibilities Time frame for Component implementation 1. Project Component: Improved Irrigation and Drainage Infrastructure Information All information related to the Rural women will be informed about Information will be disclosure and output of improved irrigation opportunities to access project funds, provided by the promotion of infrastructure will be technical advice and training, and CPMOs. gender disclosed to women employment opportunities. awareness
Employment Employment opportunities Women will receive at least a 50% share of will be made equally the total employment. accessible to both women and men
Technical advice The training programs will At least 60% of training opportunities will be The CPMOs will and training contain gender sensitive provided to women. Considering women’s monitor women’s curriculums, and women will situation, at least 1/3 of the training sites will participation. have equal access to all be selected in the local communities. training programs. Considering women’s situation, at least 1/3 of the training sites will be selected in the local communities and at times sensible to enable active participation of both men and women.
Participation of Women will participate At least 50% women part icipating in WUAs The CPMOs will women equally in the monitor women’s strengthening/ formation of participation. 57 WUAs
2. Project Component: Improved Irrigated Agriculture Information All information related to the Rural women will be informed about Information will be disclosure and output of improved irrigated opportunities to access project funds, provided by the promotion of agriculture will be disclosed technical advice and training, and CPMOs. gender to women employment opportunities. awareness
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Gender Equality Outputs/ Activities Targets Responsibilities Time frame for Component implementation Employment Employment opportunities Women will receive at least a 50% share of will be made equally the total employment accessible to both women and men
Technical advice Training programs will At least 60% of training opportunities will be The CPMOs will and training contain gender sensitive provided to women. Considering women’s monitor women’s curriculums, and women will situation, at least 1/3 of the training sites will participation. have equal access to all be selected in the local communities and at training programs. times sensible to enable active participation of both men and women.
Participation of Women will participate At lea st 50% women participating in F As The CPMOs will women equally in the formation/ monitor women’s strengthening of 101 FAs participation.
3. Project Component: Improved Project Management Strengthen Staff training includes Staff training of 6 provincial and 69 city/county ACWF at provincial gender capacity development CAD offices including capacity development level awareness regarding gender awareness for gender awareness and the GAP among project and the GAP staff
Enhance the Effective implementation and 3 provincial and 6 county/village ACWF ACWF at provincial ACWF’s role monitoring of gender-related offices upgraded by provision of staff training level. activities and actions on leadership and thematic skills related to community empowerment, ethnic minorities (where appropriate) and gender issues
Effective implementation and The ACWF chairwoman at county level will be The CPMO will monitor monitoring of gender-related a member of the county level leading group women’s participation. activities and actions
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Gender Equality Outputs/ Activities Targets Responsibilities Time frame for Component implementation Ensure women’s Women’s economic and At least 40% female representatives should The CPMO will rights in project political empowerment on the run for village council elections to ensure periodically monitor the decision making community level consultation and participation during project indicators. Female and decision making and implementation representatives in the implementation village will participate in M&E annually.
Sex- Gender-sensitive indicators Gender-sensitive indicators will be set up in Project performance disaggregated will be included in the project areas such as access to technical advice and monitoring and reports M&E M&E system. training, employment and income, and by PMO women’s representation in decision making.
ACWF=All China Women’s Federation, CPMO = County Project Management Office, GAP = Gender Action Plan, M&E=monitoring and evaluation, PMO = Project Management Office, WUA = water user association. Source: Consultant’s estimates
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Appendix 18 Gender and Development Cooperation Fund Proposal
Subproject Name: Rural Women’s Economic Empowerment in Anhui, Ningxia and Yunnan Country: People’s Republic of China Department/Division: Staff Responsible:
Amount Requested: $300,000 Background and Rationale:
The project includes a special focus on the support of women, as 75% of rural women in China are participating in agriculture (Zhen 2008:2), particularly middle-aged, married women that have to shoulder the double burden of productive and reproductive activities. Feminization 1 and graying of agriculture has become increasingly common across China, especially in the central and western provinces. In the 69 target counties, about 30-50% of men migrate seasonally or permanently to urban centers or coastal areas, leaving women to attend to household chores as well as fields or livestock, but women are neither receiving sufficient economic benefits nor adequate opportunities for development. Besides, because they are busy with farming, caring for family members and household chores, they have no spare time to learn new technologies necessary to reduce the heavy labor burden and improve their livelihoods.
The project provinces - Anhui, Henan, Heilongjiang, Jilin, Ningxia and Yunnan - are some of the poorest areas of China. The project area includes 69 counties, 111 townships, and 501 villages, in which about 98,350 ha of land will be improved. Both the infrastructure construction and farmer’s capacity building will help to reduce rural poverty.
After more than 20 years of poverty reduction efforts, the People’s Republic of China (PRC) has achieved significant progress. However, poverty remains, and is still a social problem in the Central and Western provinces, especially in remote and isolated mountain areas where many of China’s ethnic minorities are concentrated. In those areas, women are the particularly vulnerable group in rural development. To decrease the income gap between urban and rural households as well as to improve the accesses of the poor and women in disadvantaged areas to employment opportunities, technologies and information, marketing channels, and other living and production infrastructure are among the national strategies for poverty alleviation. Meanwhile, empowerment of the poor and women, with the rights of participation, expression of their own problems, needs and opinions, involvement in decision-making, and improvement of local governance are also among the strategies for social development and political reform of the nation. Poverty reduction in rural areas is one of the major issues of the government, which is reflected in the National Poverty Alleviation Program (2001–2010) and other documents.
It is important to raise the opportunities of rural women to become economically more productive, to increase household income, to improve rural livelihoods, and to become socially more equal in their families and to empower women to participate more actively in community activities and organizations as well as in local decision-making processes. The project thus aims to target more women through training. It also demonstrates greenhouse farming and green agriculture, which are physically manageable for women.
The proposed grant for the Rural Women’s Economic Empowerment subproject (the Subproject) complements the project by pilot-testing different approaches and interventions
1 On discussions regarding the concept of feminization of agriculture see de Brauw et al 2008. 183
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to promote economic empowerment of women in selected villages, for further scaling-up and incorporation into the Project components.
Scope: The training will be conducted in 6 counties in Anhui, Ningixa and Yunnan Provinces. They are Linquan County and Funan County in Anhui Province, Helan County and Qingtongxia City in Ningxia Hui Autonomous Region, and Eryuan County and Yulong County in Yunnan Province. These six counties were selected based on the following criteria: (i) participating county in the project; (ii) high poverty incidence or high rate of ethnic minorities; (iii) high male out-migration rate; (iv) high enthusiasm of the county governments; (v) commitment and receptiveness of the All China Women’s Federation (ACWF) branch at the county level; and (v) county with a high demonstration effect.
Three possible activities are suggested.
(1) Training of women’s production groups Training needs will be identified through consultation and focus group discussion with local women. Training on agricultural skills, pollution-free and organic crop production and marketing, alternative livelihoods, business skills, and gender awareness approaches are likely to be included. The training courses will be developed in accordance with women’s physical and psychological features. Training sites will be selected considering suitability and access for local women. Priority will be given to teachers with local knowledge and ethnic language capacity.
(2) Strengthening the capacity of the All China Women’s Federation To ensure sustainability of the Subproject, it is vital to strengthen the capacity of the ACWF from county level down to village level so that they can carry out women’s empowerment activities. The participation of the ACWF in international development projects has been described as “disempowered participation”, because often women’s participation is required in project contracts, but sector specific government departments are following a different institutional logic. A lack of gender awareness, commitment and gender budget produces an interpretation of the ACWFs participation as purely representative in conferences and of women’s project participation in terms of participation in physical work (sometimes even involuntarily). The qualifications of the ACWF such as doing effective needs assessment on the ground or linking with other institutions involved in poverty reduction or ethnic minority issues are rarely seen (Ye 2008,39-44). Here the GDCF activities will establish examples of empowerment and participation that will provide leverage and can influence the wider project. Training needs will be identified through consultation with members of ACWF. Courses will likely include mobilization, organization, leadership skills and thematic skills related to community empowerment and gender issues.
(3) Introducing an innovative model of women’s empowerment: “ACWF plus” Given the importance of women’s participation in the organization and decision-making of water user associations (WUAs) and farmer associations (FAs) as part of an effective and sustainable comprehensive agricultural development (CAD) program, it is proposed to establish a new model of collaboration between the local ACWF and FAs and WUAs. 2 This would provide an innovative, flexible and gender-sensitive approach for sharing specialized training, information, including market information, production and marketing activities. Such an “ACWF plus” model could also include a blending with rural grass-root women’s organization which have been established in recent years, but are often scattered and not very powerful. Such a model could contribute to women’s empowerment as well as to community empowerment and strengthening of bargaining power at the local level.
2Some positive experience have been made with the blending of the ACWF with various women’s civil society organizations on the local level (Ma/Wu 2007: 49) 184
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Relationship to ADB’s Policy on GAD, CPS, COBP/loan/TA: ADB’s policy on PRC focuses on rural development, environment, energy conservation, urban development and regional cooperation. This is aligned with PRC’s policy on social development. ADB’s Country Gender Assessment highlights the feminization of agriculture and the importance of involving women in productive activities, engaging them in planning and decision-making processes, and strengthening women’s national and social organizations. This subproject has been designed in line with the abovementioned strategies.
Implementation Arrangements: The executing agency will be the Poverty Alleviation Office (PAO) at the provincial level. PAO will collaborate with the provincial level ACWF. The implementing agency will be PAO at county level, in collaboration with ACWF at county level. County financial bureaus will be in charge of disbursing the funds to women. Mobilization, facilitation and training will be assisted by local nongovernment organizations (NGOs).
The Mission leader will be responsible for the overall management and administration to ensure continuity and consistency with the project.
Processing time is expected to take about 3 months, and the subproject will be implemented over the course of 12 months. The subproject will commence in July 2011 and run until December 2012.
Design and Monitoring Framework: GDCF Subproject
Design Summary Performance Indicators and Responsibilities Time Frame Targets and Monitoring Mechanism Impact
Rural women in 6 Rural women’s capacity Gender sensitive Start July counties (Ningxia, improved M&E to be 2011 Yunnan, Anhui) will institutionalized be empowered Outcome
Supported by the Rural women will have Mission leader will ACWF and attended training on agricultural be responsible for grass-root skills, pollution-free and organic the overall organizations rural crop production and marketing, management and women will acquire business skills, and gender administration economic, technical awareness and decision-making skills Outputs/Activities 1.Component 24 rural women’s production Executing Agency Training of women’s groups will receive training on will be the Poverty production groups agricultural skills, pollution-free Alleviation Office and organic crop production, (PAO) at the marketing, alternative provincial level livelihoods, business skills, and gender awareness
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2.Component 6 county ACWF and 12 village Implementing Mid-2011 to Strengthening the ACWF upgraded by provision Agency will be PAO mid-2013 capacity of the of leadership skills and at county level in ACWF thematic skills collaboration with the ACWF at county level 3. Component Women’s empowerment and Mobilization, Introducing an community empowerment will facilitation and innovative model of be combined by establishing training will be women’s and strengthening grass-root assisted by local empowerment: organizations such as WUAs grass-root “ACWF plus” and FAs with active support of organizations rural women
Table A18: Cost Estimates ($'000)
Total Item Cost 1. National Consultants a. Remuneration and per diem a 96.0 b. Local travel b 16.0 c. Reports and communications 20.0 2. Equipment c 80.0 3. Training, Seminars, and Conferences 35.0 4. Miscellaneous administration and Support Costs 21.0 5. Contingencies 32.0
Total 300 .0 a $3,000*32 person-months, including remuneration and per diem. b 40 domestic return trips c Includes projectors, screens, and office supplies for ACWF offices. Source: Consultant’s estimates
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Appendix 19 Resettlement Framework
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Draft Resettlement Framework
Project Number: 43049 June 2011
PRC: Comprehensive Agricultural Development Project
Prepared by the State Office for Comprehensive Agricultural Development of the People’s Republic of China for the Asian Development Bank.
This resettlement framework is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.
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Draft Resettlement Framework for the Comprehensive Agricultural Development Project
State Office for Comprehensive Agricultural Development of the People’s Republic of China June 2011
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CURRENCY EQUIVALENTS (as of 2 September 2011)
Currency unit – yuan (CNY) CNY1.00 = $0.1567 $1.00 = CNY6.3815
ABBREVIATIONS ADB – Asian Development Bank PMO – project management office RF – resettlement framework RP – resettlement plan SPS – Safeguard Policy Statement
NOTES (i) The fiscal year of the Government of the People’s Republic of China and its agencies ends on 31 December.
(ii) In this report, "$" refers to US dollars.
In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
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CONTENTS
A. Introduction B. Objectives, Policy Framework, and Entitlements C. Screening of Subprojects D. Procedure for Resettlement Plan Preparation 1. Social Impact Assessment 2. Consultation, Public Participation, and Information Disclosure 3. Compensation, Income Restoration, and Relocation 4. Grievance Redress Mechanism E. Institutional Arrangements and Implementation F. Budget and Financing G. Monitoring and Reporting 1. Internal Monitoring 2. External Monitoring
Tables: 1. Main Regulations, Laws, and Policies Regarding Resettlement Planning 2. Potential Impacts 3. Entitlement Matrix
Annexes: 1. Subproject Screening Form 2. Decision Tree for Subproject Preparation and Appraisal 3. Socioeconomic Information 4. Sample Questionnaire Templates 5. Outline of a Resettlement Plan
Figure 1: Organizational Diagram of Project Implementation
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{Insert endorsement letter signed by SOCAD}
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Resettlement Framework
A. Introduction
1. There is the potential of numerous small impacts of the project; but the project will overall have significant impact (loss of housing or more than 10% of their production/income generating assets) on very few, if any, households. The Asian Development Bank (ADB) has therefore classified the project as category B for involuntary resettlement. This resettlement framework (RF) and two draft resettlement plans (RPs) have been prepared. The RF explains under which conditions an RP has to be prepared; it specifies the detailed screening process, procedural requirements, the outline of the RP, details on monitoring, and a grievance redress mechanism. It will be used to guide compensation, relocation, and rehabilitation of people affected by resettlement. Initial screening of project sites for land acquisition indicates that there will be little permanent land acquisition and no residential house demolition. All impacts (canals and ditches, farm access roads, tube wells, etc.) will be within the villages on land that remains under village ownership, so no formal land acquisition will be necessary. The impact of land loss, temporary or permanent, to each affected household will be minor, as construction will mainly upgrade and use existing structures. Most land that will be needed temporarily or permanently for the project will be compensated through land adjustments in the villages.
2. The main objective of the Comprehensive Agricultural Development Project (the Project) is to increase agricultural productivity and food security in 69 counties in 6 provinces (Anhui, Heilongjiang, Henan, Jilin, Ningxia, and Yunnan). The project components are (i) improved irrigation and drainage infrastructure; (ii) improved agricultural support; and (iii) improved project management. The first two components potentially involve land acquisition and resettlement. Possible involuntary resettlement impacts in subprojects have been screened to assess permanent farmland acquisition; temporary farmland occupation; demolition of all types of assets such as houses, trees, tombs and facilities, etc. (numbers and types); and distribution of farmland use rights. Collective land ownership will not change for any of the subprojects that include resettlement impacts. The initial screening was done based on incomplete information, so detailed screening will be done based on subproject designs before commencement of project implementation.
3. ADB’s involuntary resettlement safeguard in the Safeguard Policy Statement (SPS, 2009) will be triggered by (i) permanent acquisition of land from legal title holders, (ii) temporary land acquisition, (iii) land adjustment due to project schemes, and for (iv) other land use-related economic impacts or loss of assets (e.g., crops, trees, ponds, structures, etc.) for titled or nontitled land users. The SPS requires RPs to be prepared for those project sites with land acquisition and resettlement as triggered under these definitions. According to the project implementation arrangement, the RP is to be prepared based on subproject design and census of affected persons and their affected assets. The RPs should be submitted to ADB for concurrence prior to the commencement of project-related physical activities that cause dispossession of assets.
B. Objectives, Policy Framework, and Entitlements
4. Based on the SPS, the national project management office (PMO) under the State Office for Comprehensive Agricultural Development (SOCAD) formulated this RF with its
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ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 corresponding principles and guidance to instruct resettlement planning and implementation.1 The general objectives include the following:
(i) Avoid involuntary resettlement wherever possible; (ii) Minimize involuntary resettlement by exploring project and design alternatives; (iii) Compensate or mitigate any losses so as to enhance, or at least restore, the livelihoods of all affected persons 2 in real terms relative to pre-project levels; and (iv) Improve the standards of living of the displaced poor and other vulnerable groups by ensuring that they will benefit from the project.
5. The RP must be compiled on the basis of relevant information (Annex 3) collected through questionnaires covering project impacts and socioeconomic data (Annex 4). “Affected persons” include the following:
(i) People whose agricultural land, housing land, or other land they use for livelihoods, is wholly or partly acquired by the project (permanently or temporarily, formally or informally); (ii) People whose residential house is wholly or partly acquired by the project (permanently or temporarily); (iii) Industry and commerce (enterprise and institutions, collective organizations, and stores) that is wholly or partly affected by the project (permanently or temporarily); and (iv) People whose young crops or structures attached to the ground are wholly or partly affected by the project (permanently or temporarily).
6. The RF is prepared according to ADB’s SPS, including the following principles and objectives:
(i) All affected persons are eligible to (a) claim replacement land, rehabilitation measures, or cash compensation; and (b) receive help to improve, or at least keep, their standards of living and livelihoods; this includes persons with formal legal rights to the land as well as persons without formal legal rights or titles to assets possessed prior to the cut-off date; (ii) Resettlement measures involve (a) using replacement costs with no-depreciation or residual recovery to compensate the affected persons for the removal of dwelling house and other structures; (b) replacement of farmland with the same output which can be accepted by the project-affected persons, or equivalent cash compensation if no land is available; (c) replacement of house and housing land with the same quantity which can be acceptable by the affected persons; and (d) assistance for relocation and living subsidy; (iii) If the affected persons agree to accept the replacement of house, housing land, and farmland, the new location should be as near as possible to their former land;
1 A national PMO has been set up within SOCAD to take care of the daily project preparation and management. A provincial PMO has been established in each province; and the existing County Office for Comprehensive Agricultural Development (COCAD) will serve as county PMO and be responsible for daily implementation of project activities, such as qualification of control; procurement of civil works and goods; and preparation and implementation of the ethnic minority development plan (EMDP), the RP, and related activities. 2 In the context of involuntary resettlement, displaced/affected persons are those who are physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land; or (ii) involuntary restrictions on land use, or on access to legally designated parks and protected areas. 194
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(iv) The transitional period of resettlement should be minimized as much as possible, and rehabilitation measures must be provided for any affected persons; (v) Compensation for lost assets will be based on replacement value using current market prices; (vi) The plan for any acquisition of land and other properties, and the rehabilitation measures should be prepared in consultation with the affected persons; (vii) The required funding and mitigation efforts are ensured to be made available as required either by the implementing agencies or the village committees; and the RP budget must include contingency costs; (viii) The institutional set-up to implement the RP in a timely manner should be ensured by the county PMO; and (ix) Implementation of the RP must be supervised, monitored, and evaluated effectively and timely.
7. The RP is executed in accordance with ADB’s SPS (2009) and relevant laws, regulations, and decrees of the People’s Republic of China (PRC), including national-, provincial-, and relevant city- and county-level laws and regulations. The main laws, regulations, and decrees of ADB and the PRC used to compile the RF and ensure its legal effectiveness are shown in Table 1. The project anticipates no or very little formal land acquisition, so the laws may not apply specifically to on-farm impacts; but their principles and objectives are valid and guide the RF and subsequently the RPs. For this reason, the mitigation measures for this project are explicitly designed to address potential land and social impacts on the village level.
Table 1: Main Regulations, Laws, and Policies regarding Resettlement Planning
Policy Date Implemented ADB Safeguard Policy Statement—Safeguard requirement 2 June 2009 Land management law of the PRC 28 August 2004 Implementation regulations of the land management law of 28 August 2004 the PRC The State Council’s decision on deepening reform and 21 October 2004 managing land strictly (State Issue [2004] No. 28) Guiding opinions for perfecting the system of compensation for land acquisition and resettlement (MOLR Issue [2004] 3 November 2004 County-level No. 238) Announcement on guiding opinions about employment training and social safeguard for rural affected persons 2006 (Administration Office of the State Council [2006] No. 29) Announcement on doing work better in social safeguard for rural affected persons, MLSS and MOLR (MLSS Issue 2007 [2007] No. 14) The implementation methods of Henan province for the land 26 November 2004 management law of the PRC Henan province Guidelines on implementation of employment training and 26 November 2008 social safeguard measures for rural affected persons Implementation methods for the land administration law of the 26 June 2004 PRC issued by Anhui province Anhui province Guidelines on the implementation of employment training and 12 June 2005 social safeguard measures for rural affected persons
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Policy Date Implemented Heilongjiang Regulations on the land administration in Heilongjiang 18 December 1999 province province Jilin province Regulations on the land administration in Jilin province 2 June 2005 Yunnan Regulations on the land administration in Yunnan province 24 September 1999 province Implementation methods for the land administration law of the Ningxia Hui AR 17 October 1997 PRC issued by Ningxia Hui AR Some related policies on resettlement in concerned city and Others county ADB = Asian Development Bank, AR = autonomous region, MLSS = Ministry of Labor and Social Security, MOLR = Ministry of Land and Resources, PRC = People’s Republic of China.
C. Screening of Subprojects
8. Subproject screening is used to identify the types and nature of potential impacts related to the activities proposed under the project; and provide adequate measures to address these impacts which ensure that potentially affected persons are
(i) informed about their options and rights pertaining to resettlement; (ii) included in the consultation process and given the opportunity to participate in the selection of technically and economically feasible alternatives; and (iii) provided with prompt and effective compensation at full replacement cost for losses of land, assets, income and restricted access to resources attributable to the subproject(s).
9. The screening process flow is described in Annex 2. It is based on the screening checklist (Annex 1) which will be completed by the county PMO for each subproject, and routed through the provincial PMO and the national PMO to ADB for approval. The checklist can be submitted together with a proposed course of action and/or a draft RP, or further action can be discussed with the national PMO and/or ADB. Additional relevant information, on which a proposed course of action is grounded, can be submitted together with the checklist. ADB will advise whether further assessment should be done to avoid or reduce physical or economic displacement, or whether the subproject proposal provides sufficient evidence for the decision proposed and confirm the best course of action. This course of action could be (i) the preparation of an RP; (ii) other mitigating actions as part of project design and implementation, including if possible changes in subproject design to minimize or avoid any form of displacement; or (iii) no further action.
10. Initial screening during PPTA identified some project features that create impacts and would require land acquisition. Potentially, this applies to subprojects that involve any kind of construction activities requiring some contiguous, separate areas to be cleared. Examples can be storage facilities, pumping stations, drying grounds, etc. Still, most subprojects and the relevant design features of the project indicate a multitude of limited impacts, in particular related to upgrading of canals, ditches, farm access roads, the construction of wells, etc. Most of these limited impacts should be mitigated on village level through readjustments without the need of formal land acquisition. The following table indicates possible impacts and proposed actions:
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Table 2: Potential Impacts
Project Severity Features Examples of Activities Potential Impact of Impact Action Required Upgrading Upgrading of ditches, None None None (include activities on canals, rural roads, lining avoidance of impact land/right of way of canals, hardening of in contracts of that already is roads, laying of tubes service providers) part of the along roads, posts for infrastructure transmission lines along canals or roads, or similar activities Upgrading Upgrading of ditches, Loss of land for Limited RP prepared; activities on canals, rural roads, lining affected providing collective land of canals, hardening of households, replacement land used by roads, laying of tubes temporary or through land households along roads, posts for permanent (less adjustments on adjacent to the transmission lines along than 10% of their village level or cash infrastructure canals or roads, or land/production compensation similar activities assets affected) Construction of Construction of new Loss of land for Limited RP prepared; any kind of ditches, canals, rural affected providing facilities on roads, laying of tubes, households, replacement land collective land wells, pumping stations, temporary or through land used by transformers, drying permanent (less adjustments on households grounds, storage than 10% of their village level or cash facilities, or similar land/ production compensation activities assets affected) Construction of Construction of larger Land loss of Severe To be avoided as larger/expanded canals, pumping more than 10% much as possible facilities on stations, drying grounds, of the If not to be avoided, collective land storage facilities, or household’s land/ RP prepared, used by similar activities production preferably proposing households assets, land adjustment temporary or inside the village permanent If no land for replacement available, compensation budgeted into project budget and paid to affected household before start of subproject in area Construction Not envisaged in project Permanent land Severe To be avoided as activities on land design loss for the much as possible that belongs to affected people Potentially any If not to be avoided, households and construction (roads, Formal land RP prepared, needs canals, pumping acquisition by the compensation ownership to be stations, drying grounds, project budgeted into project transferred storage facilities) budget and paid to affected household before start of subproject in area Any construction Not envisaged in project House Severe, To be avoided on or temporary design demolition, temporary completely; use of land relocation, and or subproject to be Potentially any 197
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Project Severity Features Examples of Activities Potential Impact of Impact Action Required classified as construction (roads, displacement permanent redesigned residential canals, pumping Formal land housing area stations, drying grounds, acquisition by the storage facilities) project
11. The screening of subprojects will lead to the preparation of RPs or the decision that no further action is required. RPs will be prepared to ensure the participation of the affected households and that adequate compensation or replacement land is provided in a timely manner, based on the entitlements of the affected households. Based on the impact categories laid out above, entitlements for affected people have been established as follows:
Table 3: Entitlement Matrix Definition of Affected Type of Loss Application Persons Entitlement Expected Results Loss of land Land to be Legal user(s) of Suitable land for cultivation, or Replacement permanently farmland redistribute the existing
acquired farmlands within the village and and/or provision of user rights to that ownership land; or changed Cash compensation under law Compensation of to meet the replacement value, the value of the land with the assistance of to the affected livelihoods recovery for persons farmland user(s) Loss or Agricultural Legal user(s) of Cash compensation for portion Income restoration restriction of land and land of land rented according to access to plots used/ rental agreement and village land rented committee decision collectively commercially based on Farmland Contract
Law;
Provision of other suitable land for cultivation, or redistribute the existing farmlands within the village; and securing title to that land Nontitled land Assistance in locating other Income restoration users (informal) suitable land for cultivation and securing land lease agreement Loss of trees, Standing Legal owner(s) Compensation at replacement Compensation for crops, crops, trees of land and cost for crops to enable them to standing crops and perennials owners of crops buy trees, etc. of equal or trees to ensure or trees higher quality income restoration (whether having legal or customary title to land or not)
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Definition of Affected Type of Loss Application Persons Entitlement Expected Results Partial or total Structures All affected Compensation for affected Restoration of removal of (residential or persons structures at replacement value dwelling and/or structure commercial) (whether without deductions for salvaged commercial (house or having legal materials; and assistance in structure commercial title to land or locating suitable alternative structure) not) housing or commercial building; Shifting allowance for relocating household or business goods and support Displacement Community Community Replacement as agreed with Restoration of of community structure representatives community or cash community structure structure compensation under law (with for common benefits additional grants as required) to meet replacement value without deductions for any materials salvaged Assistance with dismantling and reconstructing structure or property Unforeseen Impacts Concerned Determined as per the spirit of No impact left or unintended under the affected people this RF and mutually agreed by unmitigated impacts scope of this ADB and the national PMO RF and identified at the final design stage ADB = Asian Development Bank, PMO = project management office, RF = resettlement framework.
D. Procedure for Resettlement Plan Preparation
12. If the screening determines that there will be resettlement impacts, an RP will be prepared in accordance with ADB’s SPS (2009) and this RF, in close collaboration with those affected. Guidance is also provided in ADB’s Involuntary Resettlement Sourcebook (2011), and The RP must establish a safety net mechanism and specify appropriate income restoration measures to address impacts. Guidance on detailed RP contents is included in Annex 5. RPs will be prepared by the county PMOs with the assistance of their consultants as needed, disclosed to affected persons, and reviewed and approved by the provincial PMO and the national PMO prior to the national PMO’s submission to ADB for review and approval.
13. For subprojects requiring an RP, the county PMO will carry out a census of affected persons and a socioeconomic survey of at least 20% of affected households based on technical designs and using the questionnaires in Annex 4. The RP will be prepared based on the analysis of impacts; and will include income restoration, land adjustment plan, compensation standards, and other mitigation measures, as required. The RP will include a budget for RP implementation identifying where the source of funds, and an implementation schedule linked with the civil works. Construction of civil works will not commence until (i) ADB has approved the RP; and (ii) compensation has been paid, and/or replacement land has been allocated to affected persons. Compensation will be determined based on published rates from relevant government agencies with additional assistance as required to ensure compensation at replacement value and livelihood restoration.
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1. Social Impact Assessment
14. The main tasks of the socioeconomic survey regarding resettlement for the project with loan from ADB include the following:
(i) detail the quantity and quality of all kinds of affected physical goods within the project impact area, and prepare an inventory of affected land and assets; and (ii) collect information to provide basic information for (a) evaluating the loss of land acquisition; (b) analyzing project impacts, (c) discussing project scale; (d) studying socioeconomic impacts; (e) compiling the plan of recovery and removal of dwelling house, stores, enterprises, institutions, and infrastructure; and (f) general budgeting and estimating the resettlement implementation and monitoring.
15. The scope of the socioeconomic survey and details are laid out in Annex 3. The survey questionnaire templates are in Annex 4.
2. Consultation, Public Participation, and Information Disclosure
16. The consultation activities completed must be described in the RP, as well as consultation and participation (C&P) activities to be carried out for resettlement implementation. The affected persons should take part in the proposed resettlement arrangements for training regarding the improvement and recovery of their living standards. To ensure the affected persons’ opinions and suggestions are fully considered, public participation should precede the design and implementation of the resettlement measures. Public participation must be part of the whole process of RP planning, implementation and monitoring.
17. At the stage of drafting and finalizing the RP, each county PMO must disclose the RP to the affected persons and in local language, if necessary. The draft RP must be disclosed at least 1 month ahead of ADB evaluation. If there are changes to the final plan, it should be disclosed again after being accepted by ADB.
3. Compensation, Income Restoration, and Relocation
18. The purpose of compiling RPs is to ensure that affected persons can restore their lost property; and enhance, or at least restore, their former livelihoods in real terms relative to pre-project levels. To achieve this objective, the RP should ensure that all affected persons are enumerated and that the remedial measures are reasonable and effective. The main impacts include land loss (permanent or temporary); house removal; and loss of trees, crops, and other attachments. Affected persons, who lose their land or assets, are entitled to get the following compensation and recovery measures/options:
(i) After land acquisition, some collective farmland can be redistributed by village committees to ensure that all the collective members have the same amount and quality of farmland. All affected persons are entitled to participate in the land distribution and of sharing the benefits related to the investment project.
(ii) In the unlikely case of formal land acquisition and if replacement land cannot be provided under any circumstances, affected persons can be compensated in accordance with the land administration law (2004) and applicable local regulations. The specific compensation rates will be included in the RP.
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(iii) In the case of land affected on village level and without formal land acquisition, if affected households cannot be provided replacement land, they will get cash compensation for the years of land use from the project, and income restoration assistance from the village collective. (iv) In case of temporary land occupation by the project, the county PMO will make sure affected persons will be compensated for the loss of income, land recovery cost, and damaged infrastructure, by the contractor or the village committee.
19. No specific provisions for loss of commercial/business activities and for residential houses have been prepared yet under the project. These severe impacts should be strictly avoided by the subprojects. If any such impacts should occur, the RP will specify the compensation standard, rates, and other provisions in accordance with the general entitlement matrix (Table 3) of the RF and the principle of replacement cost.
4. Grievance Redress Mechanism
20. To avoid major disputes, any resettlement activities should be designed in a process that includes the participation of project-affected peoples. Affected persons should have channels to address every aspect of land acquisition and resettlement during consultation. Should they have any further grievance, an appeal process will be established as follows:
(i) Stage 1. Appeal to the village committee verbally or in written form. If the appeal is made verbally, the village committee will record it in written form. The village committee should make the decision within 2 weeks. Affected persons can also appeal to contractors with oral or written complaints, if applicable. The same rules as for village committee complaints apply. (ii) Affected people can also appeal to the county PMO with oral or written complaints if they are dissatisfied with the impacts, compensation, or proposed mitigation measures. If they appeal with oral complaints, the implementation organization deals with the case and notes it. (iii) Stage 2. If affected persons are dissatisfied with the decision of the village committee or the contractors, they can appeal to the county PMO after they received the decision. The county PMO should make the decision within 2 weeks. (iv) Stage 3. If affected persons are still dissatisfied with the decision of the county PMO, they can submit an appeal to jurisdictional administration departments for “Letters and Visits” and step-by-step for arbitration after they received the decision according to the administrative procedure law of the People’s Republic of China. (v) Stage 4. If affected persons are still dissatisfied with the arbitration, they can appeal to the civil court according to the civil procedure law after they received arbitration.
21. If two or more households think that they have suffered direct, material, and adverse harm; and believe that it stemmed from ADB's lack of compliance with its policy and/or the RP, they may submit a request to ADB at any time, and following procedures set out in ADB’s Accountability Mechanism .3
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E. Institutional Arrangements and Implementation
22. Preparation and implementation of the RP (including payment of related costs) is the responsibility of the borrower/client. The county PMO is responsible for project design, resettlement impacts identification, resettlement issues screening, RP preparation, and implementation (see Figure 1 for project implementation organization). The provincial PMOs are responsible for reviewing and general supervision of RP implementation, including monitoring. The national PMO is responsible for general oversight and coordination with ADB for final approval and other assessments. The township government will assist the county PMO to prepare and implement the RP. The village committee will take responsibility for land redistribution, collective compensation fund allocation and management, livelihoods recovery, consultation and participation activities, etc. When compiling the RP, affected persons will be sufficiently consulted to provide them with opportunities to participate in the project design and implementation. Figure 1: Organizational Diagram of Project Implementation
State Office for Comprehensive Agricultural Development (SOCAD) Project Leading Group (PLG)
National Project Management Office (PMO) in SOCAD
Provincial Offices for Comprehensive Agricultural Development (POCADs)
Provincial PMOs in POCADs
Prefecture Offices for Comprehensive Agricultural Development Prefecture PMOs
City/ County Offices for Comprehensive Agricultural Development (COCADs) City/ County PMOs , Ethic Affairs Bureau, Poverty Reduction Office
Township Government
Village Committees
Villagers, farmer professional associations, and water users associations
23. Because the project involves many subprojects with a broad field and long implementation period, the subproject RPs can be submitted to ADB approval in stages according to civil works plans. The national PMO has the overall responsibility of approval of the RP, and timely submission of screening checklists and RPs to ADB for approval.
24. RPs must establish a resettlement cut-off date. Draft RPs must be submitted to ADB for approval at least 2 months ahead of planned implementation. Only when ADB has approved the RP, which has been approved by the provincial PMO and the national PMO, can compensation, resettlement, and recovery action start. Compensation, rehabilitation, and land adjustment commitments must be completed before the start of civil works.
25. The RP will include a detailed schedule for all necessary activities. The compensation, recovery measures (in cash or kind) should be completed at least 1 month ahead of land
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F. Budget and Financing
26. Should formal land acquisition be necessary, each provincial and county PMO is responsible for all charges related to land acquisition and resettlement. For nonformal land acquisition of collective land, village committees are responsible for the land adjustments, compensations and rehabilitation. The cost evaluation and budget must be included in every RP and should specifically mention “in-kind” measures (e.g., land adjustment). All affected persons have rights to compensation and enjoy other compensation measures if they are impacted disadvantageously by formal or nonformal land acquisition. The budget of the RP must include contingency expenses, usually about 10% of the total budget or more, to meet the needs of unexpected resettlement expenses.
G. Monitoring and Reporting
27. Each provincial and county PMO should supervise and monitor implementation of the RP, and should cover such costs as part of project management costs. The results are recorded in the quarterly reports to ADB, the national PMO, and SOCAD.
1. Internal Monitoring
28. Internal monitoring and supervising by the implementing agencies and the county PMOs must include
(i) Checking performance status. Check the baseline information of all affected persons, the loss assessment of properties, the items of compensation, the performing condition of resettlement, and recovery rights for consistency with the RF and RP. (ii) Checking whether the measures and actions stipulated in the RP are implemented according to the design and approved implementation scheme. (iii) Checking whether the resettlement fund is paid in time and sufficiently, and whether the use of the fund is consistent with the items of the RP. (iv) Recording all the complaint and resolution schemes to ensure all complaints can be resolved in time.
2. External Monitoring
29. Each provincial PMO will employ an independent organization or individual consultant to carry out periodically external monitoring and evaluation of the implementation of the RPs. The organization/individual can be a research institution or university, nongovernment organization, or independent consulting company, all of which must have the qualified and experienced staff for social monitoring. The task outline must be acceptable to ADB and should include
(i) after 6 months of RP implementation, the monitoring organization should conduct a social sample survey, including 20% of the affected households, with the objectives of evaluating whether the resettlement entitlements have been provided in accordance with the RP, and whether the compensation and mitigation measures were implemented effectively;
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(ii) evaluating whether the objective of the RP is realized, which is improving or keeping at least to the former standard of living and income before they resettlement; (iii) collecting qualitative indicators of social and economic impacts of project implementation; (iv) proposing advice to improve the implementation of resettlement so that the principles and objectives of the RF can be realized; and (v) consolidated external monitoring reports covering all relevant subprojects are to be submitted by external monitors to each provincial PMO semiannually; the provincial PMOs will send through the county PMOs to ADB for review and website uploading; and (vi) external monitoring reports will be made available to affected persons.
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Annex 1 Subproject Screening Form
Project Title Comprehensive Agricultural Development Project
Subproject Name: ______Date: ______Short Subproject Description:
Location and impact area:
Probable Involuntary Resettlement Effects Yes No Remarks and Description of Impacts and Activities Will the subproject include any physical construction work?
Does the subproject include upgrading or rehabilitation of existing physical facilities (roads, canals, or other)?
Does the subproject include construction of physical facilities (roads, canals, pumping stations, storage, or other)?
Will any project effects likely lead to loss of housing, other assets, resource use, or incomes/livelihoods?
Is land acquisition likely to be necessary? Formal or non-formal land acquisitions?
Is the site for land acquisition known?
Is the ownership status and current usage of the land known? Is there any farmland permanent occupation but do not change ownership? Will easements be utilized within an existing right of way?
Are there any nontitled people who live or earn their livelihood at the site or within the right of way? Will there be loss of housing?
Will there be loss of agricultural plots?
Will there be losses of crops, trees, and fixed assets?
Will there be loss of businesses or enterprises?
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Will there be loss of incomes and livelihoods?
Will people lose access to facilities, services, agricultural land, or natural resources? Will any social or economic activities be affected by land use-related changes? If involuntary resettlement impacts are expected:
Will coordination between government agencies be required to deal with land acquisition? Are there sufficient skilled staff in the executing agency for resettlement planning and implementation? Are training and capacity-building interventions required prior to resettlement planning and implementation?
Information on Affected Persons: Any estimate of the likely number of households that will be affected by the project? [ ] No [ ] Yes If yes, approximately how many? ______Are any of them poor, female-heads of households; or vulnerable to poverty risks? [ ] No [ ] Yes If yes, please briefly describe their situation. ______Are any affected persons from indigenous or ethnic minority groups? If yes, please explain. ______
Prepared by: Date:
Endorsed by: County PMO Director Date:
ADB received by: Date:
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Annex 2: Decision Tree for Subproject Preparation and Approval
ADB: APPROVAL
Identify monitoring requirements
Refer to Annex A19.5: No RP required Screening Checklist
1. Screening checklist 2. Review by 3. Agreement 4. Resettlement prepared by RP ADB Social reached Plan county PMO; copy provided to Safeguard between ADB required affected village Specialist and PMO regarding action
RP revised
Request for amendment and revision
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Annex 3 Socioeconomic Information
A. Scope of Survey
1. The scope of this survey is mainly to prepare (i) an overall description of the socioeconomic impact of land acquisition, and (ii) an inventory of affected land and assets. It will include (i) the quantity and quality of physical goods on ground and underground within all the subproject area; and (ii) the quantity and quality of all physical goods which have to be removed because of the demolishing of dwelling houses, stores, enterprises, and institutions on the land for resettlement.
B. Survey Contents
2. Village collective land acquisition (permanent, temporary) and economic situation of the villages in each subproject site (i) Contents: Questionnaire 1; and (ii) Demands: (a) investigating and numbering the impacts on village collective land and rural economic situation for each subproject, and (b) investigating all impacts of permanent land acquisition and the recovery measures on villager groups.
3. Formal and Informal Land Acquisition at sub-village level (i) Contents: Questionnaire 2; and (ii) Demand: assessing the impact of formal and informal land acquisition for each sub-village.
4. Baseline situation of households (i) Contents: Questionnaire 3; and (ii) Demands: (a) investigating and numbering all affected household; (b) investigating the detail information of the affected households.
5. Basic information of vulnerable groups (i) Contents: Questionnaire 4; and (ii) Demands: Investigating and quantifying for each subproject.
6. Basic information of the impacts attachments and infrastructure (i) Contents: Questionnaire 5; and (ii) Demands: Investigating and numbering all impacts of ground attachment and infrastructure item by item for each subproject. Unlisted items, please mention on the back or additional sheets.
7. Baseline sample survey on basic conditions, income, and expenditure of project affected households (i) Contents: Questionnaire 6; and (ii) Demands: Assessment of overall situation of affected households and potential impacts—social impact assessment. Random sampling investigation (Sampling rate 20%).
8. Investigation of public opinions and suggestions (i) Contents: Questionnaire 7; and (ii) Demands: Assessment of overall information on project—social impact 208
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assessment. Random sampling investigation (Sampling rate 20%).
9. Socioeconomic situation of the affected villages (i) Contents: Questionnaire 8; and (ii) Demands: Investigating and numbering social economy situation of the impacts for each affected village.
10. Compensation standards of every type of each subproject (i) Contents: Questionnaires 9–11; and (ii) Demands: Investigating compensation policy and standards for each subproject.
Please note: Questionnaires 6 and 7 need only be applied to a sample of at least 20% of households. Not all questionnaires may apply to all subprojects. In particular, subprojects that require formal land acquisition (referred to in Questionnaire 9) and especially house demolition (referred to in Questionnaire 10) should be reconsidered.
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Annex 4 Sample Questionnaire Templates Questionnaire 1: Permanent and Temporary Village Land Occupation and Rural Economy No. Subproject name: Province District / County Town /village country Investigator ： Proposed Proposed Existing permanent temporary 1 Basic Condition Land types(mu) area land land occupation occupation Population Total households (family) Paddy field Total population (persons) Irrigated land In which male Dry land Agriculture population (person) Pond Non-agriculture pop. (persons) Vegetable land Labor Total laborers (person) Garden plot Production laborers Housing land Agriculture laborers 4. Influencing Household Population Labor force Tertiary industry laborers population (number) (person) (person) Permanent land Farmland Farmland area (mu) expropriation
In which: village collective land Temporary land occupation Paddy unit yield (kg/mu) Wheat unit yield (kg/mu) 4. Village social economic impact and resettlement opinions of land acquisition Corn unit yield (kg/mu) ） 1. Currency allocation 2. Adjustment within groups 3. Adjustment within villages Total yields of grain 4. Adjustment outside of villages 5. Safety install 6. other 6.Situation of Existing farmland area Population village groups Proposed (mu ） quantity of land affected by Name Total Total There into acquisition Labor land household population Agriculture Male area (mu) force occupation (family ） (person) population
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Questionnaire 2: a) Formal b) Informal Land Acquisition at Sub-Village Level
No. Subproject name: Province District / County Town /village Sub-village______
Investigator ：
Formal or Land Affected Affected Labors non-formal Type of Impact Quantity Households Population (persons) land (mu) (families) (persons) acquisition Paddy field
Irrigated land
Dry land
Permanent land land occupation Permanent Pond
farmland Vegetable land Garden plot
Non-farmland
Paddy field
Irrigated land
Dry land Temporary land occupation land Temporary Pond farmland Vegetable land
Garden plot
Non-farmland
Achieving national land approach: (1) remise (2) transfer (3) allocation
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Questionnaire 3: Current/Baseline Situation of Affected Households
No. Subproject name: Province District / County Town /village Sub-village______
Investigator ：
Owner’s name Family members (person)
Basic information Male Female Labor (person) Steel-concrete Brick-concrete Brick-timber Dwelling house removal （m2） Cabana
Brick-concrete Brick-timber Cabana Additional house （m2） Civil Wood Shed Land grade Land property right characteristic (1) self-demolition and self-building; (2) Demolition and construction Resettlement willingness together; (3) Self-building under unified planning Fence m trees(young) piece Toilet set trees(mature) piece pigsties set Fruit trees(young) piece motor-pumped well set Fruit trees(mature) piece 2 House attachment hand-press well set Cement ground m well set telephone set Color tv set gate tower set
Remarks
Remark: If land property rights in urban fringes are concerned, please fill out land grade and the properties of land property right. The properties of land property right includes national and collective.
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Table 4: Vulnerable Groups
No. Subproject name: Province District / County Township Village Sub-village ______Investigator:
Types （mark “√” ）
House area is small (only Family having Dwelling one Five Mino- Female Name Age Sex population Low- place house Dis- guaran rity Headed (person) and its income area abled - tees House House- family is less family - hold hold than city stipulat ion area ）
Monthly income per person（CNY ） Source of income Grade of impacts Resettlement wish
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Questionnaire 5: Impacts on Attachments and Infrastructure in Project Site No. Subproject name: Province District / County Township Village Sub-village ______Investigator:
Item Unit Quantity
Public toilet set 10KV wire pole km 380V wire pole km 380V wood wire pole km Transformer set Bridge set Highway m2 Road m2 Grave （soil ） set Grave （concrete ） set Underground structures m Gas pipe m Water supply pile m Drainpipe m Communication cable m Power cable m 2 Turf and parterre m Tap Water Pipeline m 2 Vegetable greenhouse structures m Motor-pumped well, Open Well set Scramble fruit tree set
Remark: Except the removal of dwelling house (urban, village), enterprise and institutions, stores. Please add other item if it is not listed in the table.
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Questionnaire 6: Basic Information on Affected Households
No. Subproject name: Province District / County Street/Town village / residents committee Investigator: Sub-village ______Town /village country Investigator ： Investigation time: Investigatio Investigated person’s name Contact method n time Occupation Family Age cohort al status
Family population Family member Sex Age Nationality Education (>18 years Family status Family s old) Owner 1）<5 yrs Spouse 2）5～10 yrs 3）11～20 yrs 4）21～30 yrs 5）31～50 yrs
6）>50 yrs
Agriculture Farm and Yield gross sideline Farm lands (mu) Crop (kg/mu) income laborers Farmlands and yield statusyieldand Farmlands (CNY) (person) Propose Exist d
ing expropri ation Paddy field (1) Grain Agriculture ： Irrigated land (2) Vegetable male (3) Flower female ： Dry land (4) Fruit tree Pond (5) Tree sideline Vegetables occupations male ： Garden plot female ： Student: Family annual expenditure Family annual income Family property (CNY) (CNY) (no.)
Family income and property status status property and income Family 1. Tax and various other Agriculture Color TV expense 2. Seeds Sideline occupations Refrigerator 3. Pesticide, fertilizer, etc Salary from enterprises Washing
and institutions machine 4. Irrigation water cost Income of working outgo Fan 5. Mechanical operation cost Others Air-condition 6. Electricity Telephone 7. Domestic water costs Mobil-telephone 8. Communication costs Motorcycle 9. Children school costs Tractor 10. Medical costs Other machinery 11. Fuel costs 12. Life non-staple food costs 13. Others Total annual expenditure Total annual income
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Questionnaire 7: Public Opinions and Suggestions in Project Site
No. Subproject name: Province District / County Street/Town village /residents committee Investigated person: age: sex: profession: Investigator: Investigation time:
Results No. Questions Answers (1) (2) (3) (4) (5) Do you know this project will （1）Yes （2）Not clearly （3）No 1 be constructed? How do you get the （1）Newspaper （2）Attending meeting 2 information about land (3) Neighbor （4）Social investigator acquisition for this project Do you approve the （1）Yes （2）No （3）Indifferent 3 construction of the project? Who d o you think will benefit a) National （1〕Yes （2）No 4 from the project? (multiple b) Collective （1〕Yes （2）No choice) c) Individual （1〕Yes （2）No Which benefits do you think （1）Protection the safety of life and the project will bring to you? property （2）Improving agriculture 5 production condition （3）Increasing economic income （4）Improving ecolo gical environment （5）Other Which unfavorable impacts （1）No unfavorable impacts （2）traffic do you think the project will condition during engineering construction （ ） 6 bring to you? 3 Possible economy loss for house removal （4）Decrease economic income for land acquisition （5）Other
Do you know the （1）Yes （2）Not well （3）No 7 compensation policy of removal and resettlement? Do you know how to appeal （1）Yes, when your legal rights were （2）No 8 violated during land acquisition and removal? What type of compensation （1）Currency compensation, no more would you prefer for land adjust land （2）Land adjustment, 9 acquisition compensation fees belongs to collective （3）Other （please list ） If you hope for currency （1）Do second and third industries （2） compensation, what will you Go out for working（3）Adjustment industrial 10 do with the money? structure （4）Purchase insurance （5）Other （please list ） What kind of support do you （1）Technology training （2）Offering 11 wish to get after land employment information （3）Other（Please acquisition? list ）
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Questionnaire 8: Socioeconomic Situation of Impacts (Affected Villages)
No. Subproject name: Province District / County
Investigator:
Population Total number of households (family) Total population (persons) Of which: male Agricultural population (persons) Laborers Total laborers (persons) Production laborers Agriculture laborers Tertiary industry manpower Farmland Farmland area (ten thousand mu) Total Land Grain crops Planting area (ten thousand mu ） Farmland per capita Total yield (t) Unit yield (kg/mu) Oil crops Planting area (ten thousand mu ） Total yield (t) Unit yield (kg/mu) Others Planting area (ten thousand mu) Total yield (t) Unit yield (kg/mu) Product (GDP ） Gross product (CNY ten thousand) Gross agriculture product (CNY ten thousand) Gross industry product (CNY ten thousand) Gross tertiary industry product (CNY ten thousand)
Finance income (CNY hundred million ） Disposable income per capita of urban residents (CNY) Farmers’ net income per capita (CNY)
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Questionnaire 9: Compensation Price and Policy for Land Acquisition
No. Subproject name: Province District / County
Investigator:
Policy Compensation standard according Province Province Fees City-county Fees Province multiple Impact item multiple of Annual outcome (CNY/mu） of resettlement young
assistance crops 2002 2003 2004 Average Paddy field Irrigated
land Dry land Permanent Pond occupation of Vegetable collective land land Garden
plot
Permanent Transfer CNY/mu occupation of Remise CNY/mu national land Allocation Paddy field CNY/mu Irrigated land CNY/mu Temporary Dry land CNY/mu occupation Pond CNY/mu collective land Vegetable land
Temporary occupation of national CNY/mu land Farmland CNY/mu reclamation cost Paid use fees of new added CNY/mu construction land Land Farmland
acquisition occupation tax tax Land acquisition CNY/mu and management cost
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Questionnaire 10: Compensation Price and Policy for House Removal
No. Subproject name: Province District / County
Investigator:
Compensation Main policy Impacts items Structure types Unit standard Province City-county Steel-concrete CNY/m 2 Brick-concrete CNY/m 2 Brick-timber CNY/m 2 Dwelling 2 Cabana CNY/m house
Brick-concrete CNY/m 2 Brick-timber CNY/m 2 Cabana CNY/m 2 Rural Attachment 2 Civil CNY/m dwelling house Wood CNY/m 2 house 2 removal Shed CNY/m
Transition cost of removal Removal allowance l Temporary Others resettlement allowance Reward fees for moving house in advance
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Questionnaire 11: Compensation Standard of Ground Attachment and Special Facilities
No. Subproject name: Province District / County
Investigator:
Compensation Items Unit s t a nd a r d Key Policies (CNY/unit) Public toilet Piece 10KV wire pole Piece 380V wire pole Piece 380V wood wire pole Piece Transformer Set Bridge Set Highway m2 Road m2 Grave (soil) Set Grave (concrete) Set Underground structures M Gas pipe M Water supply pile M Drainpipe M Communication cable M Power cable M Turf and parterre m2 Tap Water Pipeline M Vegetable greenhouse (structures) m2 Motor-pumped well Open Well Set Trees (young) Piece Tees (mature) Piece Scattered fruit tree Piece Gate tower Set
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Annex 6 Outline of A Resettlement Plan
A. Executive Summary
1. This section provides a concise statement of project scope, key survey findings, entitlements and recommended actions.
B. Subproject Project Description
2. This section provides a basic description of the subproject, discusses components that result in land acquisition, involuntary resettlement, or both and identify the subproject area. It also describes the alternatives considered to avoid or minimize resettlement.
C. Scope of Land Acquisition and Resettlement
3. This section: (i) discusses the subproject’s potential impacts, and includes maps of the areas or zone of impact of project components or activities; (ii) describes the scope of land acquisition and explains why it is necessary; (iii) summarizes the key effects in terms of assets acquired and displaced persons; and (iv) provides details of any common property resources that will be acquired.
D. Socioeconomic Information and Profile
4. This section outlines the results of the social impact assessment, the census survey, and other studies, with information and/or data disaggregated by gender, vulnerability, and other social groupings, including: (i) define, identify, and enumerate the people and communities to be affected; (ii) describe the likely impacts of land and asset acquisition on the people and communities; (iii) discuss the project’s impacts on the poor, indigenous and/or ethnic minorities, and other vulnerable groups; and (iv) identify gender and resettlement impacts, and the socioeconomic situation, impacts, needs, and priorities of women.
E. Information Disclosure, Consultation, and Participation
5. This section: (i) identifies project stakeholders; (ii) describes the consultation and participation mechanisms to be used during the different stages of the project cycle; (iii) describes the activities undertaken to disseminate project and resettlement information during project design and preparation for engaging stakeholders; (iv) summarizes the results of consultations with affected persons, and discusses how concerns raised and recommendations made were addressed; (v) confirms disclosure of the draft resettlement plan to affected persons and includes arrangements to disclose any subsequent plans; and (vi) describes the planned information disclosure measures (including the type of information to be disseminated and the method of dissemination) and the process for consultation with affected persons during project 221
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implementation.
F. Grievance Redress Mechanisms
6. This section describes mechanisms to receive and facilitate the resolution of affected persons’ concerns and grievances. It explains how the procedures are accessible to affected persons and gender sensitive.
G. G. Legal Framework
7. This section: (i) describes the legal and policy commitments from the county PMO for all types of displaced persons; (ii) outlines the principles and methodologies used for determining valuations and compensation rates at replacement cost for assets, incomes, and livelihoods, and sets out the compensation and assistance eligibility criteria and how and when compensation and assistance will be provided; (iii) describes the land acquisition process and prepare a schedule for meeting key procedural requirements.
H. Entitlements, Assistance and Benefits
8. This section: (i) defines displaced persons’ entitlements and eligibility, and describes all resettlement assistance measures (includes an entitlement matrix); (ii) specifies all assistance to vulnerable groups, including women, and other special groups; and (iii) outlines opportunities for affected persons to derive appropriate development benefits from the project.
I. Resettlement Budget and Financing Plan
9. This section: (i) provides an itemized budget for all resettlement activities, including for the resettlement unit, staff training, monitoring and evaluation, and preparation of resettlement plans during loan implementation; (ii) describes the flow of funds (the annual resettlement budget should show the budget-scheduled expenditure for key items); (iii) includes a justification for all assumptions made in calculating compensation rates and other cost estimates (taking into account both physical and cost contingencies), plus replacement costs; (iv) includes information about the source of funding for the resettlement plan budget.
J. Institutional Arrangements
10. This section: (i) describes institutional arrangement responsibilities and mechanisms for carrying out the measures of the resettlement plan; (ii) includes institutional capacity building program, including technical assistance, if required; (iii) describes role of NGOs, if involved, and organizations of affected persons in resettlement planning and management; and (iv) describes how women’s groups will be involved in resettlement planning and management. 222
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K. Implementation Schedule
11. This section includes a detailed, time bound, implementation schedule for all key resettlement and rehabilitation activities. The implementation schedule should cover all aspects of resettlement activities synchronized with the project schedule of civil works construction, and provides land acquisition process and timeline.
L. Monitoring and Reporting
12. This section describes the mechanisms and benchmarks appropriate to the project for monitoring and evaluating the implementation of the resettlement plan. It specifies arrangements for participation of affected persons in the monitoring process. This section will also describe reporting procedures.
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APPENDIX 20 Ethnic Minorities Development Framework
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Draft Ethnic Minority Planning Framework
Project Number: 43049 June 2011
PRC: Comprehensive Agricultural Development Project
Prepared by the State Office for the Comprehensive Agricultural Development of the People’s Republic of China for the Asian Development Bank.
This ethnic minority development framework is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.
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Draft Ethnic Minority Planning Framework for the Comprehensive Agricultural Development Project
State Office for Comprehensive Agricultural Development of the People’s Republic of China June 2011
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CURRENCY EQUIVALENTS (as of 2 September 2011)
Currency unit – yuan (CNY) CNY1.00 = $0.1567 $1.00 = CNY6.3815
ABBREVIATIONS ADB – Asian Development Bank CAD – comprehensive agricultural development CPMO – county project management office EMA – external monitoring agency EMPF – ethnic minority planning framework EMDP – ethnic minority development plan FPA – farmer professional association M&E – monitoring and evaluation O&M – operation and maintenance PMO – project management office PPMO – provincial project management office PRC – People’s Republic of China WUA – water users association
NOTES (i) The fiscal year of the Government of the People’s Republic of China and its agencies ends on 31 December. (ii) In this report, "$" refers to US dollars.
In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
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CONTENTS
1 Introduction
1.1 Background 1.2 Project Description 1.3 Policy Framework
1.3.1 Identification of Indigenous Peoples 1.3.2 Government Policy, Plans and Programs 1.3.3 ADB Policy on Indigenous Peoples
2 Social Impact Assessment of Project Areas
2.1 Ethnic Minority Distribution in Project Provinces 2.2 Ethnic Minorities in Project Counties 2.3 Ethnic Minorities in the Project Areas 2.4 Social Economic Characteristics of Affected Ethnic Minorities
3 Preparation Procedures and Key Requirements of EMDP
3.1 Preliminary Screening of Project Countries 3.2 Screening of Subprojects 3.3 Social Impact Assessment of Subprojects
3.4 Consultation and Participation 3.5 Ethnic Minority Development Plan 3.6 Information Disclosure 3.7 EMDP Approval Requirements 3.8 Budget and Financing Sources 3.9 Institutional and Implementation Arrangements 3.10 Grievance Redress Procedures 3.11 Monitoring and Evaluation 3.12 Reporting
Annex 1: Subproject Ethnic Minorities Screening Form Annex 2: Ethnic Minority Development Plan: List of Contents
Table 1: Minority Peoples in Project Provinces (2008) Table 2: Distribution of Ethnic Minorities in Project Areas (1,000 persons) Table 3: Distribution of Ethnic Minorities in Project Areas
Figure: Organizational Diagram of Project Implementation
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Insert endorsement letter signed by SOCAD
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ETHNIC MINORITY PLANNING FRAMEWORK
1 Introduction
1.1 Background
1 This ethnic minority planning framework (EMPF) has been prepared to ensure equitable sharing of the project benefits, where project beneficiaries include ethnic minority communities, 1 as well as adequate mitigation measures in the project area of the Comprehensive Agricultural Development Project in six participating provinces, including Anhui, Heilongjiang, Henan, Jilin, and Yunnan provinces, and the Ningixia Hui autonomous region, People’s Republic of China (PRC). The EMPF for the project is based on the social and poverty assessment, and consultation with ethnic minority groups in selected minority counties and relevant functional agencies among the project provinces, as well as the national laws and regulations concerning ethnic minority population in the PRC, and on provisions of the Asian Development Bank’s (ADB) Safeguard Policy Statement (2009) on indigenous peoples.2 Certain provisions for special mitigation measures have also been included in the resettlement framework and plans to ensure that ethnic minorities adversely affected by resettlement will also benefit from the project. In the PRC, ethnic or cultural diversity is officially recognized through designation of 56 nationalities, including the Han majority nationality and 55 minority nationalities whose status is protected by the Chinese constitution and other legislation. Current government policies and programs for ethnic minorities further help to protect and enhance project benefits to ethnic minority groups. About 22 groups are classified as small ethnic minority groups, and they receive special support.
2 According to preliminary screening, about 16 counties in Heilongjiang, Jilin, and Yunnan provinces, and the Ningxia Hui autonomous region have ethnic minority communities in the project area and among the project beneficiaries. Based on the social and poverty assessment, the project is not expected to create any negative impact on ethnic minorities. Accordingly, the project is classified by ADB as category B regarding the provisions on indigenous people of ADB’s Safeguard Policy Statement (2009). The Bai, Hui, Korean, Man, and Yi nationalities account for most of the minority population in the project areas. In addition, special attention will be given to the small ethnic minority groups if they are located in the subproject areas. Measures will be designed to ensure that the ethnic minority communities among the beneficiaries have been consulted, can fully participate, and derive benefits in a culturally appropriate manner. Special emphasis will be placed on ethnic minority participation during formation of the farmer professional associations (FPAs) and the water users associations (WUAs), and in the provision of training and extension services.
1.2 Project Description
3 The project will finance an area and time slice of the government’s comprehensive agricultural development (CAD) program with an emphasis on the sustainable rehabilitation and improvement of existing irrigation and drainage systems and the modernization of agricultural techniques in six key participating provinces (Anhui, Heilongjiang, Henan, Jilin, and Yunnan provinces, and the Ningxia Hui autonomous region). The first four provinces—Anhui, Heilongjiang, Henan, and Jilin are the top food-surplus provinces; and the remaining two—the Yunnan province and the Ningxia Hui autonomous region belong to the food-balanced regions. Within these provinces, 69 counties and/or cities were selected for
1 Ethnic minority groups refer to those groups that are different from the majority ethnic group—the Han. 2 The term ‘indigenous peoples’ used by ADB in its Safeguard Policy Statement (2009) is consistent with the term ‘ethnic minority’ as used in the PRC. 230
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 inclusion in the project. At present, in most of these areas, the irrigation systems are in a poor state of repair or have not been completed at the field level. Among the 69 project counties, 19 of them or 28% are national-level or provincial-level poverty counties, with poverty population accounting for 11.5% of total population in these project counties.
4 The project will consist of three components: (i) improved irrigation and drainage infrastructure, (ii) improved agricultural support, and (iii) improved project management. All three components will address gender equality and rural women’s empowerment. Through these outputs, the project is expected to benefit a total area of 98,350 hectares (ha). Where appropriate, the focus will be on the participation of ethnic minority communities and individuals, both men and women equally, in technical and other trainings; employment; local decision-making processes; institutional capacity development; and community empowerment. Project management will ensure that all project implementation units effectively implement and monitor ethnic minority-related activities and actions.
5 Without specific design features, the project may have limited benefits for ethnic minority people in terms of those receiving improved supplies of water for domestic use and irrigation, and increasing incomes. The project will reduce poverty by providing reliable access to water for irrigating crops for household consumption and for sale, including expansion into cultivation of high-value crops. These improved agricultural systems will be more sustainable and profitable, which will help ensure stable livelihoods and income growth. Project construction activities will benefit the ethnic minority communities who are spread throughout the rural areas. Specific measures will be designed to better extend project benefits to ethnic minority population, particularly when they are representing the poorer and more vulnerable parts of the society.
1.3 Policy Framework
1.3.1 Identification of Indigenous Peoples 6 The PRC pursues a policy of regional autonomy for ethnic minorities. 3 Ethnic or cultural diversity is officially recognized through the designation of 56 nationalities, including the Han majority nationality and 55 minority nationalities, whose status are protected by the 1949 PRC Constitution and other legislation. According to the census in 2000, the minorities of the PRC made up 92 million people, or equivalent to 8.4% of the population.
1.3.2 Government Policy, Plans, and Programs 7 The EMPF is developed to design and implement the project in a way that fosters full respect to ethnic minority peoples’ identity, livelihood systems, and cultural issues; and protection of their rights, so that they (i) receive culturally appropriate social and economic benefits, (ii) do not suffer adverse impacts as a result of the project, and (iii) can actively participate in the project. Consideration of ethnic minorities in the project design is based on the relevant laws and regulations of the PRC and ADB’s Safeguard Policy Statement (2009). The 1949 PRC Constitution established the legal equality of all ethnic groups in the PRC. Government policies and regulations consist of a variety of measures to address the needs of ethnic minorities, including autonomous governments at various levels, special consideration in education, and funding of programs for their development. 4 ADB recognizes the rights of indigenous peoples to direct the course of their own development.
3 Five provinces are designated as autonomous regions—Guangxi, Inner Mongolia, Ningxia Hui, Tibet, and Xinjiang Uygur autonomous regions. 4 The Revised Resolution on the Constitution of the People’s Republic of China, approved by the 2nd session of the 10th National People’s Congress on 14 March 2004, stipulates that all of the ethnic groups in the PRC are equal. The State guarantees legal rights and interests of all of the ethnic minority groups, to maintain and develop equality, united and mutual relationships of all of the ethnic minority groups, forbids any discrimination and pressure on any ethnic minority group, and forbids any action of destroying ethnic. 231
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8 In 2000, ethnic minorities represented 8.4% of the total PRC population, but they accounted for some 40% of the absolute poor. 5 To achieve a balanced development situation nationwide, the PRC commenced its Western Development Strategy in 2000 which should serve to help ethnic minority communities in the PRC’s western regions out of poverty. The PRC’s poverty alleviation strategy (2001–2010) concentrates on central and western regions of the PRC, with priority given to minority and border areas. Special support is also given to protect and assist the development of small ethnic minority groups.
1.3.3 ADB’s Policy on Indigenous Peoples 9 The objective of ADB’s policy on indigenous peoples is to design and implement projects in a way that they (i) receive culturally appropriate social and economic benefits, (ii) do not suffer adverse impacts as a result of projects, and (iii) can actively participate in projects that affect them.
10 The borrower/client will undertake meaningful consultation with affected ethnic minorities to ensure their informed participation in designing, implementing, and monitoring measures to (i) avoid adverse impacts on them; or when avoidance is not possible, minimize, mitigate, and compensate for such effects; and (ii) tailor project benefits that accrue to them in a culturally appropriate manner. Meaningful consultation is a process that (i) begins early in the project preparation stage, and is carried out on an ongoing basis throughout the project cycle; (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected persons; (iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and responsive, and tailored to the needs of disadvantaged and vulnerable groups; and (v) enables the incorporation of all relevant views of affected persons and other stakeholders into decision making, such as project design, mitigation measures, sharing of development benefits and opportunities, and implementation issues. Consultation will be carried out in a manner commensurate with the impacts on affected communities. The consultation process and its results will be documented and reflected in the ethnic minority development plans (EMDPs).
11 If the screening indicates that the subproject will have ethnic minority communities among the beneficiaries or cause adverse impacts on ethnic minorities, the borrower and/or client will prepare an EMDP commensurate with the impact that the subproject has on these people. Based on the consultation process, the EMDP will set out measures to ensure that (i) affected ethnic minorities receive culturally appropriate social and economic benefits, and (ii) adverse impacts are avoided or mitigated.
2 Social Impact Assessment of Project Areas
2.1 Ethnic Minority Distribution in Project Provinces
12 The six participating project provinces are spread over the PRC: Heilongjiang and Jilin provinces are located in the northeast region, Anhui and Henan provinces are located in the central areas, and the Ningxia Hui autonomous region and the Yunnan province are located in the western part of county. For these six participating project provinces, there are 24.39 million ethnic minority persons who account for 8.6% of total population. 6 Among them, the Ningxia Hui autonomous region at 36.7% and the Yunnan province at 34.3% have the
5 Ma Rong. Sociology of Ethnicity: Sociological Study of Ethnic Relations , Beijing: Peking University Press 2004: 663 (Chinese); Office of the State Council. 2001. White Paper on Rural China’s Poverty Reduction. Information Office, 15 October 2001, part IV. http://english.peopledaily.com.cn/features/Prpaper/ pr.html 6 Assuming that the minority population is growing in proportion with the Han nationality since 2000, the minority population in Hunan would be 6.86 million in 2003. 232
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 highest share of ethnic minority population, the Henan province with 1.2%, and the Anhui province with the lowest share at 0.7%. Table 1 provides a list of different ethnic minorities among these six participating project provinces. Table 1: Minority Peoples in the Project Provinces, 2008 (million) Heilong Hena Ethnic Group Yunnan Ningxia -jiang Jilin n Anhui Total % Han 29.73 3.91 36.09 24.82 98.29 67.47 262.31 Minorit Hui 0.69 2.22 0.15 0.13 1.19 0.39 4.77 19.6% y Bai 1.64 1.64 6.7% groups Yi 5.13 0.00 0.00 5.13 21.0% Man 0.01 1.18 1.05 0.07 0.01 2.32 9.5% Mongolian 0.03 0.17 0.17 0.10 0.02 0.49 2.0% Naxi 0.32 0.32 1.3% Korean 0.00 0.45 1.18 1.63 6.7% Lisu. 0.68 0.68 2.8% Hani 1.55 1.55 6.4% Dai 1.22 1.22 5.0% Zhuang 1.22 1.22 5.0% Miao 1.12 1.12 4.6% Others 2.00 0.05 0.21 0.01 0.01 0.04 2.29 9.4% Subtotal 15.61 2.27 2.16 2.52 1.37 0.46 24.39 100.% Percent 64.0 9.3% 8.9% 10.3% 5.6% 1.9% 100.0% Total Population 45.34% 6.18 38.25 27.34 99.67 67.94 284.71 Share of Minority 34.3 36.7 5.7% 10.2% 1.2% 0.7% 8.6% Source: Statistical Year Books of %2009 for six% prov inces.
13 In Yunnan, the first three ethnic groups are the Bai, Hani, and Yi nationalities, which account for 11% (1.64 million), 10% (1.55 million), and 33% (5.13 million), respectively of the total minority population in the province. In Ningxia, the dominating minority is the Hui nationality with 2.22 million accounting for 97.9% of the total minority population in the region. In Jilin, the top three ethnic groups are the Korean nationality with 1.18 million or 47% of the total minority population in the province; the Man (Manchu) nationality with 1.05 million or 42% of the total; and the Mongolian nationality with 0.16 million or 6% of the total. In Heilongjiang, the two top minorities are the Man nationality with 1.18 million or 54.6% of the total; and the Korean nationality with 0.45 million or 20.9% of the total. Among these six participating provinces, the three largest ethnic groups are the Hui, Man, and Yi nationalities, which account for about half of total minority population in the project area.
2.2 Ethnic Minorities in Project Counties
14 Screening was conducted by the six provincial project management offices (PPMOs), and the result is presented in Table 2. According to the screening result, the 69 project counties have a total population of 38.8 million with 3.14 million of ethnic minorities which account for 8.1%, slightly lower than the provincial average. Among them, the project counties in the Ningxia Hui autonomous region and the Yunnan province have the highest concentration of ethnic minorities with average minority population accounting for 28% and 26% respectively. Total minorities in these two participating provinces amount to 1.86 million, accounting for 59% minorities in the project counties. Following these two minority provinces, the ratio of minorities is 7.4% for Heilongjiang province and 7% for Jilin province. The minorities in project counties from these two provinces account for 35% of the total project
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counties. The remaining minorities come from the project counties in two central provinces with 1.3% in Henan province and 1% in Anhui province. Table 2 provides a detailed list of distribution of ethnic minorities among the 69 project counties.
Table 2: Distribution of Ethnic Minorities in the Project Area (1,000 persons) Total Total Minority Populatio Populatio The First Three Ethnic Groups Minorit n in the n in the Among Them y Popu- Project Minority Project Project lation No. County County Counties Counties No.1 No.2 No.3 (%) 1 Linquan 2,134.0 12.1 Hui Mongolia Man 0.6% n 2 Funan 1,626.0 25.0 Hui Mongolia Li 1.5% n 3 Jieshou 772.0 7.9 Hui Mongolia Man 1.0% n 4 Taihe 1,675.0 17.6 Hui 1.0% 5 Yinquan 679.0 8.9 Hui 1.3% 6 Yingzhou 708.0 6.3 Hui 0.9% 7 Mengcheng 1,310.0 12.0 Hui Yi Uygur 0.9% 8 Guoyang 1,481.0 9.6 Hui Miao Uygur 0.6% Anhui Subtotal 10,385.0 99.4 1.0% 1 Binxian 578.2 11.0 Man Korean Mongolian 1.9% 2 Fuyu 260.0 20.0 Man Dawoer Mongolian 7.7% 3 Hailin 409.4 48.0 Korean Man Hui 11.7% 4 Ningan 435.3 83.0 Man Korean Hui 19.1% 5 Huachuan 225.2 0.0 0.0% 6 Huanan 465.2 30.4 Man Korean Hui 6.5% 7 Fujing 470.2 0.0 0.0% 8 Qingan 387.1 7.9 Korean Hui Man 2.0% 9 Wangkui 484.4 80.1 Man Mongolia Hui 16.5% n 10 Dumeng 1 256.4 51.4 Mongolia Man Hui 20.1% n 11 Ranghulu 153.2 0.0 0.0% 12 Luobei 86.3 1.4 Korean Man Hui 1.6% 13 Suibin 190.5 8.4 Man Hui Mongolian 4.4% 14 Raohe 141.2 13.2 Man Mongolia Hui 9.4% n 15 Baoqing 420.0 22.4 Man Mongolia Hui 5.3% n 16 Hulin 294.3 9.9 Korean Man n.a. 3.3% 17 Nenjiang 345.6 27.6 Dawoer Hui Man 8.0% Heilongjiang 1 5,602.5 414.6 7.4% Subtotal 1 Zhongmou 677.0 8.8 Hui Mongolia Man 1.3% n 2 Xinzheng 623.1 0.0 0.0% 3 Lankao 848.0 9.3 Hui Mongolia Tujia 1.1% n 4 Yanjing 451.4 0.9 Hui Zhuang Miao 0.2% 5 Qinyang 494.0 13.8 Hui Mongolia Man 2.8% n 6 Mengzhou 378.0 5.8 Hui 1.5% 7 Changyuan 820.0 1.0 Hui Mongolia Tibetan 0.1% n 8 Qixian 1,040.0 6.2 Hui Tibetan Yi 0.6% 9 Kaifeng 753.0 36.2 4.8%
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Total Total Minority Populatio Populatio The First Three Ethnic Groups Minorit n in the n in the Among Them y Popu- Project Minority Project Project lation No. County County Counties Counties No.1 No.2 No.3 (%) Henan Subtotal 6,084.5 82.0 1.3% 1 Yushu 1,289.0 23.2 Man Hui Korean 1.8% 2 Jiutai 841.7 85.0 Korean Man Hui 10.1% 3 Dehui 943.7 68.1 Man Hui Korean 7.2% 4 Shuangyan 391.6 37.8 Korean Man Hui 9.7% g 5 Nongan 1,166.2 50.6 Man Mongolia Hui 4.3% n 6 Changyi 547.8 64.6 Man Korean Hui 11.8% 7 Fuyu 786.1 20.1 Man Korean Hui 2.6% 8 Lishu 786.0 16.0 Man Mongolia Korean 2.0% n 9 Dongfeng 405.3 48.9 Man Korean Hui 12.1% 10 Dongliao 354.6 26.6 Man Korean Hui 7.5% 11 Meihekou 619.0 71.1 Korean Man Hui 11.5% 12 Liuhe 374.6 50.7 Korean Man Hui 13.5% 13 Huinan 357.7 32.1 Man Korean Hui 9.0% 14 Yongji 392.5 72.0 Man Korean Hui 18.3% 15 Taobei 508.6 21.2 Mongolia Man Hui 4.2% n Jilin Subtotal 9,764.5 688.0 7.0% 1 Helan 192.7 48.8 Hui 25.3% 2 Yongning 211.5 40.6 Hui Man Mongolian 19.2% 3 Lingwu 1 231.6 118.5 Hui Man Mongolian 51.2% 4 Qingtongxia 276.1 50.6 Hui Man 18.3% 5 Wuzhong 1 369.4 213.6 Hui Man Mongolian 57.8% 6 Zhongwei 390.3 19.9 Hui Mongolia Man 5.1% n 7 Zhongning 319.3 66.8 Hui Man Mongolian 20.9% 8 Pengjibao 12.3 1.4 Hui Man Dongxiang 11.6% Farm Ningxia 2 2,003.2 560.2 28.0% Subtotal 1 Yiliang 429.0 37.7 Yi Hui Miao 8.8% 2 Yaoan 208.3 55.8 Yi Hui Bai 26.8% 3 Eryuan 1 285.0 197.2 Bai Yi Hui 69.2% 4 Heqing 1 275.9 179.5 Bai Lisu Miao 65.0% 5 Yulong 1 219.4 187.8 Nanxi Lisu Bai 85.6% 6 Qilin 694.8 29.4 Yi Hui Miao 4.2% 7 Tengchong 648.0 49.0 Lisu Dai Hui 7.6% 8 Changning 346.6 38.5 Yi Dai Miao 11.1% 9 Zhaoyang 816.9 135.5 Hui Yi Miao 16.6% 10 Songming 362.3 22.7 Hui Yi Miao 6.3% 11 Shiping 1 302.8 179.7 Yi Dai Hani 59.3% 12 Luxi 1 378.0 186.0 Dai Jingpo Deang 49.2% Yunnan Subtotal 5 4,966.8 1298.7 26.1% Total 8 38,806.6 3142.9 8.1% Note: According to the PPMOs, two counties in Ningxia Hui autonomous region and the two counties in Yunnan province are not minority counties, even though they are located in an ethnic minority autonomous region with over 50% of ethnic minority concentration. For preparing the EMDP, however, they are included as minority counties. Sources: PPMOs.
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15 A large proportion of minorities live in “ethnic minority areas”, which refer to those officially recognized minority counties, or counties with a significant portion of their population composed of ethnic minorities. In these six participating project provinces, there are eight ethnic minority counties, which include five minority counties in Yunnan; two minority counties in Ningxia; a minority county in Heilongjiang; and no minority counties in Anhui, Henan, and Jilin provinces.7
16 These eight minority counties are situated in four ethnic minority autonomous prefectures in Yunnan province, one minority municipality in Ningxia Hui autonomous region, and one minority county in Heilongjiang province. Except for Tumen Mongolian autonomous county in Heilongjiang (20.1%), all these eight counties have ethnic minority population accounting for more than 50% of the total population. It is likely that the subprojects in these eight counties will involve ethnic minority communities, and the EMDPs will be required during the implementation of the project. There are another eight counties with minority population accounting for 10%–50%, including some ethnic townships and villages (one in Heilongjiang, four in Jilin, two in Ningxia, and one in Yunnan). For these counties, the project area might involve some ethnic communities. As a result, these counties might also need to prepare EMDPs during project implementation.
2.3 Ethnic Minorities in the Project Area
17 Along with the finalization of the project area in 69 counties, a preliminary screening was conducted for all the subproject areas among the project counties and presented in Table 3. According to the screening, there are 1.23 million beneficiaries in the subproject areas with 98,350 ha of farmland. Among them, 215,000 are ethnic minority people, accounting for 17% of the total population in the project area. The concentration of ethnic minorities is higher than that of the project counties’ average, ranging from 32% for both the Yunnan province and the Ningxia Hui autonomous region to 11% for Heilongjiang, and 7% for Jilin province. There are no ethnic minorities in the subproject areas for both Anhui and Henan provinces.
18 The Bai, Hui, Korean, Man, Mongolian, and Yi nationalities are the main ethnic groups. Most of ethnic minority communities are concentrated in the two participating provinces of Ningxia and Yunnan. Total minorities in the project area of these two provinces amount to 178,347 persons, which account for 83% of the total minorities for all the project area in the six provinces. For the eight minority counties, there are 221,264 project beneficiaries. Among them, 143,952 are minorities, accounting for 65% of the total population. The minorities of these eight project counties account for 67% of the total minorities for the whole project. Table 3 below provides a detailed account of the ethnic minority distribution in the project area among all 69 counties in six participating provinces.
Table 3: Distribution of Ethnic Minorities in the Project Area Total Total Populatio Minority n in the Having in the The Three Top Minorities Project Minority Project Among the Total Minorities Percent No. Project Counties Area Villages Area No.1 No.2 No.3 Minority 1 Linquan 29,170 No 0 2 Funan 28,300 No 0 3 Jieshou 36,400 No 0 4 Taihe 21,430 No 0 5 Yinquan 31,670 No 0
7 For Jilin province, although there are no minority counties among its 15 project counties, there are at least 6 counties with over 10% minority population, 8 of which having minority townships, and 4 having minority townships in project areas; these counties might involve ethnic minority communities in the project area. 236
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Total Total Populatio Minority n in the Having in the The Three Top Minorities Project Minority Project Among the Total Minorities Percent No. Project Counties Area Villages Area No.1 No.2 No.3 Minority 6 Yingzhou 32,140 No 0 7 Mengcheng 20,280 No 0 8 Guoyang 26,000 No 0 Anhui Subtotal 225,390 0 0 0.0% 1 Binxian 5,540 No 0 2 Fuyu 4,000 No 0 3 Hailin 10,200 Yes 7,100 Korean Man Hui 69.6% 4 Ningan 3,600 No 0 5 Huachuan 2,110 No 0 6 Huanan 3,200 No 0 7 Fujing 2,100 No 0 8 Qingan 2,815 No 0 9 Wangkui 4,601 No 0 10 Dumeng 6,151 Yes 0 11 Ranghulu 9,800 No 0 12 Luobei 1,321 No 0 13 Suibin 2,650 No 0 14 Raohe 2,650 No 0 15 Baoqing 2,470 No 0 16 Hulin 1,250 No 136 Korean Man n.a. 10.9% 17 Nenjiang 1,840 No 0 Heilongjiang Subtotal 66,298 1 7,236 10.9% 1 Zhongmou 15,360 No 0 2 Xinzheng 20,146 No 0 3 Lankao 16,100 No 0 4 Yanjing 9,760 No 0 5 Qinyang 23,070 No 0 6 Mengzhou 20,791 No 0 7 Changyuan 19,840 No 0 8 Qixian 21,500 No 0 9 Kaifeng 17,900 No 0 Henan Subtotal 164,467 0 0 0.0% 1 Yushu 18,200 No 328 Man Hui Korean 1.8% 2 Jiutai 54,950 No 3,018 Korean Man Hui 5.5% 3 Dehui 38,596 No 378 Man Hui Korean 1.0% 4 Shuangyang 80,100 Yes 6,030 Korean Man Hui 7.5% 5 Nongan 35,468 No 530 Man Korean Mongolian 1.5% 6 Changyi 23,218 Yes 5,600 Man Korean Hui 24.1% Mongolia 7 Fuyu 53,393 No 109 Man Hui 0.2% n 8 Lishu 12,350 No 587 Korean Man Hui 4.8% 9 Dongfeng 11,656 No 689 Korean Man Hui 5.9% 10 Dongliao 8,795 No 583 Man Korean Hui 6.6% 11 Meihekou 12,991 No 3,127 Korean Man Mongolian 24.1% 12 Liuhe 46,528 Yes 4,199 Korean Man Hui 9.0% 13 Huinan 10,560 No 636 Man Korean Hui 6.0% 14 Yongji 10,302 Yes 3,436 Man Korean Hui 33.4% Mongolia 15 Taobei 3,927 No 113 Man Hui 2.9% n Jilin Subtotal 421,034 4 29,363 7.0% 1 Helan 7,623 Yes 304 Hui 4.0% 2 Yongning 9,124 No 168 Hui 1.8% 3 Lingwu 14,662 Yes 14,662 Hui 100.0% 4 Qingtongxia 9,388 Yes 4,168 Hui 44.4% 5 Wuzhong 16,788 No 7,417 Hui 44.2% 237
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Total Total Populatio Minority n in the Having in the The Three Top Minorities Project Minority Project Among the Total Minorities Percent No. Project Counties Area Villages Area No.1 No.2 No.3 Minority Mongolia 6 Zhongwei 21,632 No 32 Hui Man 0.1% n 7 Zhongning 4,063 No 939 Hui Man Mongolian 23.1% 8 Pengjibao Farm 3,164 No 234 Hui Man Dongxiang 7.4% Ningxia Subtotal 86,444 3 27,924 32.3% 1 Yiliang 32,640 No 659 Yi Hui Miao 2.0% 2 Yaoan 91,394 No 24,491 Yi Hui Bai 26.8% 3 Eryuan 40,587 Yes 30,706 Bai Yi Hui 75.7% 4 Heqing 36,565 Yes 27,625 Bai Lisu Miao 75.6% 5 Yulong 21,804 Yes 14,296 Nanxi Lisu Bai 65.6% 6 Qilin 18,852 No 41 Yi Hui Miao 0.2% 7 Tengchong 21,000 No 15 Lisu Dai Hui 0.1% 8 Changning 32,000 No 2,300 Yi Dai Miao 7.2% 9 Zhaoyang 55,928 No 1,044 Hui Yi Miao 1.9% 10 Songming 28,100 No 0 Hui Yi Miao 0.0% 11 Shiping 32,707 Yes 9,854 Yi Dai Hani 30.1% 12 Luxi 52,000 Yes 39,392 Dai Jingpo Deang a 75.8% Yunnan Subtotal 463,577 5 150,423 32.4% Project Areas Total 1,427,210 13 214,946 15.1% a Small ethnic minority. Sources: Provincial project management offices.
2.4 Socioeconomic Characteristics of Affected Ethnic Minorities
19 Among the eight minority counties, there are 171,345 mu of farmland in the project area, averaging 0.72 mu per person, which is only 62.6% the project counties average of 1.15 mu . Although the project area is selected based on the availability of irrigation waters and potential for developing into high-yield basic farmland, due to historic factors, the overall economic development in the ethnic minority-concentrated counties is relatively lower compared with non-minority areas. The rural per capita income is CNY3,072 in the minority counties, which is only 78% of that in non-minority counties.
20 As most of these ethnic minority counties are located in the mountainous areas where accessibility is poor, considerable poverty exists in these counties. Of the eight ethnic minority counties, four are designated as national or provincial poverty counties. In the project area, half of the minority counties are poor; whereas on national average, only 12% of all counties are poor.
21 To ensure adequate attention will be paid to the affected ethnic minorities during project planning and implementation, an EMDP will be prepared by each county PMO (CPMO) for subprojects that include ethnic minority communities. The EMDPs will be developed by following the basic procedures specified in this framework and the sample EMDPs, and after extensive surveys and consultations among ethnic groups and individuals.
22 Ethnic minorities in the Ningxia Hui autonomous region and the Yunnan province (to a lesser extent, the Heilongjiang and Jilin provinces) have distinct cultural identities, and most of them have their own languages (except the Hui and Man nationality). In the project area, their ways of earning a living and their aspirations regarding the project are generally similar to those of the Han. All eight subprojects in minority counties have significant concentration of ethnic minority people living in the subproject area. Based on initial assessments, up to 18 or 19 counties may require EMDP for their subprojects. According to the composition and distribution of the ethnic minority groups in the Ningxia Hui autonomous region, and the 238
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Heilongjiang and Yunnan provinces, the main minority nationalities affected by the project will be the Bai, Hui, Korean, Man, Mongolian, Naxi, and Yi nationalities. As these groups often form the majority of beneficiaries, the complexity of EMDP will depend on their vulnerability. Special attention will be given to small ethnic groups like the Deang.
3 Preparation Procedures and Key Requirements of EMDP
3.1 Preliminary Screening of Project Countries
23 The project is committed and has the organizational instruments to ensure that the ethnic minorities are (i) consulted in matters relating to each subproject, (ii) provided opportunities for participation in decision making related to the subproject, and (iii) provided opportunities for participation in project activities should they so desire. The basic criteria for determining whether an EMDP will be required for any subproject is to see whether there are significant proportion of ethnic minority communities among the project beneficiaries, or whether any ethnic minorities suffer direct or indirect adverse impacts. Based on preliminary screening of the project area in all 69 project counties, it appears to be necessary to prepare individual EMDPs among some 18 or 19 project counties. They include eight ethnic minority counties where minority population accounts for more than 50% of the total population in the counties, and 10 or 11 counties with significant concentration of minority communities in the project area. For the remaining project counties, no EMDPs are required, due to the fact that most subprojects are located in participating provinces or the project area with no ethnic minority communities. During early stages of project implementation, the data provided by the preliminary screening should again be checked for all of the project’s subprojects, as subprojects locations may have changed and other data is now available.
3.2 Screening of Subprojects
24 Impacts on ethnic minorities have been considered in the selection and prioritization of subprojects. For subprojects that are screened as having impacts, either positive or negative, on ethnic minorities, EMDPs will be prepared to ensure that potential negative impacts of the project will be minimized and positive benefits will be enhanced for the affected minority communities. The CPMOs will conduct the screening prior to project implementation to (i) determine whether there are any ethnic minority communities among the beneficiary population or adversely affected ethnic minorities, and (ii) confirm the need to prepare an EMDP for the subproject.
25 If the outcome of the screening indicates that there is no concentration of ethnic minorities in the project-protected areas, there will be no need to prepare an EMDP for such subproject. Instead, some clarification and explanation should be provided in the project screening report (Annex I).8 If the screening confirms the fact that there are considerable ethnic minorities among the project beneficiaries, or adversely project-affected persons, then an EMDP will be prepared.
3.3 Social Impact Assessment of Subprojects
26 For those subprojects requiring on EMDP, the CPMOs will need to conduct a social impact assessment in accordance with ADB’s Safeguard Policy Statement (2009). The CPMOs should carry out meaningful consultations among affected ethnic minority groups in the project area. They will gather both qualitative and quantitative data in the project area through a range of participatory rapid appraisal (PRA) techniques, which include (i) names of ethnic groups in the affected areas; (ii) total number of ethnic minority groups in the affected villages; (iii) percentage of ethnic minority population among total project beneficiaries; (iv)
8 Further templates may be provided prior to subproject implementation to improve screening results. 239
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 number and percentage of ethnic minorities among total persons affected by any land acquisition impacts; and (v) the number of ethnic minorities faced other adverse impacts caused by the proposed project. The vulnerability of affected ethnic minority communities will also be assessed in terms of poverty incidence, distinctive agricultural systems, decision making, etc. Vulnerability will often determine the extent to which mitigation or enhancement measures are essential for safeguard compliance.
Table 5: List of Project Countries that Require Screening for EMDPs Minority Percent of Percent Population Minority in Minority in in Project Project the Project Number Project County Province Counties Counties Area 1 Dumenga Heilongjiang 51,400 20.1% 0.0% 2 Hailin Heilongjiang 48,000 11.7% 69.0% 3 Changyi Jilin 64,600 11.8% 24.1% 4 Meihekou Jilin 71,100 11.5% 24.1% 5 Liuhe Jilin 50,700 13.5% 9.0% 6 Yongji Jilin 72,000 18.3% 33.4% 7 Qingtongxia Ningxia 50,600 18.3% 44.4% 8 Lingwu a Ningxia 118,500 51.2% 100.0% 9 Wuzhong (Litong) a Ningxia 213,600 57.8% 44.2% 10 Zhongning Ningxia 66,800 20.9% 23.1% 11 Yaoan Yunnan 55,800 26.8% 26.8% 12 Eryuan a Yunnan 197,200 69.2% 75.7% 13 Heqing a Yunnan 179,500 65.0% 75.6% 14 Yulong a Yunnan 187,800 85.6% 65.6% 15 Shiping a Yunnan 179,700 59.3% 30.1% 16 Luxi a Yunnan 186,000 49.2% 75.8% Total 1,793,252 32.8% 45.9% a Minority county. Source: Provincial project management offices.
3.4 Consultation and Participation
27 The EMDP is the outcome of a social impact assessment and consultation process which aims to ensure that ethnic minorities are well informed, consulted, and mobilized to participate in the subprojects to be supported by the project. Their participation can either provide benefits with more certainty to them, or protect them from any potential adverse impacts of subprojects, or lead to greater empowerment in terms of decision making in planning, and operation, and maintenance (O&M) of their irrigation system. The consultation for each subproject will be conducted during the social impact assessment. The subproject areas will be visited by the CPMO staff, relevant county agencies, particularly agencies in charge of minority or poverty affairs, and experienced consultants. Prior to the visit, respective project sponsors will send letters to the communities informing their leaders that they will be visited by the project sponsors and local authorities; and consultation will be conducted on the subproject. The letter will request that the communities invite representatives of farmers, women’s association representatives, village leaders, and ethnic minority representatives to the meeting for discussions on the subproject. During the visits, the community leaders and other participants will present their views with regards to the subproject. In addition, the social impact assessment team will conduct separate group discussions among male and female participants followed by interviews with key informants and a sample household survey. Such consultations will facilitate the incorporation of all relevant views of affected persons and other stakeholders into decision making, such as 240
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 subproject design, mitigation measures, the sharing of development benefits and opportunities, and implementation arrangements. The findings of consultations, including its process and results, will be documented and reflected in the EMDP.
3.5 Ethnic Minority Development Plan
28 The EMDP should be commensurate with the significance of the expected impact on the ethnic minorities and their vulnerability. It should be simple and short if limited impacts are expected; and it should be complex only if complex impacts, both positive or negative, are expected for vulnerable groups. Impacts due to land loss or relocation of ethnic minority households should also be covered under special provisions in the resettlement plans. Participation of ethnic minorities will also be crucial in the development and organization of the FPAs and WUAs, so they will also be involved in the O&M of the project facilities. This has to be ensured, and the implementation procedures laid out in the EMDP.
29 Based on extensive consultations among different stakeholders, an EMDP will be developed for each concerned subproject. The content of the EMDP, following ADB’s Safeguard Policy Statement (2009), will consist of an introduction to the concerned ethnic minority groups in the subproject area, their socioeconomic conditions, potential negative impacts, and expected positive benefits of the subproject. Specifically, the EMDP should include a range of measures to (i) mitigate potential negative impacts of the subproject; (ii) enhance positive benefits of the subproject for the ethnic minority beneficiaries based on existing policies and programs targeted at the ethnic minorities; and (iii) ensure protective benefits accrue to affected ethnic minority in a preferential or in an equitable manner. For example, issues like alignments of upgraded irrigation canals, drainage, and access roads; and level of labor input by benefitted villages, and what mitigation measures will be adopted need to be adequately discussed and consulted before finalizing the subproject design and implementation arrangements. Based on proposed measures, detailed budget and implementation arrangements should be developed, which include institutional structure and responsibilities, and monitoring and evaluation (M&E) arrangement. In general, an EMDP will include the following elements (further guidance is provided in Annex 2): (i) Project description (ii) Social impact assessment; (iii) Ethnic minority distribution in the project area; (iv) Project benefits and impacts for minorities; (v) Information disclosure, consultations, and participation; (vi) Beneficial and mitigative measures; (vii) Capacity development; (viii) Grievance redress mechanism; (ix) Institutional arrangement; (x) Budget and financing; and (xi) Monitoring, reporting, and evaluation.
3.6 Information Disclosure
30 Prior to approval, the draft EMDP will be disclosed to the affected ethnic minority people in the subproject area in a form and language understandable to them, and in a place accessible to them. In addition, all information concerning the subproject will be disclosed to the local people, particularly the ethnic minority communities, throughout the project design and implementation stages. For example during project preparation, the villagers including ethnic minorities will be informed about proposed projects which are followed by village meetings to assess the potential social benefits and possible adverse impacts of the proposed subprojects. The views and inputs of these villagers on the subproject, including any measures to extend project benefits to ethnic minority communities should be included in the project design. The project design and implementation should consider the local 241
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 minority’s customs carefully, not only in project design, but also during project implementation.
3.7 EMDP Approval Requirements
31 The completed EMDP, after being reviewed and endorsed by the CPMO and disclosed to affected persons, will be submitted to ADB through the PPMO as part of the subproject preparation documents along with the resettlement plans, environmental assessments, and project feasibility reports. Once cleared by ABD, it will be posted on ADB’s website and disclosed to affected ethnic minority people. No physical activities should commence on the relevant subproject until ADB clearance has been given to the PPMO.
3.8 Budget and Financing Sources
32 All measures included in EMDPs will be financed either by the local government or from project funds. Based on the types of measures undertaken, some will be financed by existing government ethnic minority assistance program or funds, and some will be financed by the project budget as part of the project components or environmental mitigation measures. Budget items might include translation costs if training sessions or training materials have to be translated into ethnic minority languages, or hiring of trainers that speak the local languages. EMDP budgets will be reviewed and approved as part of the process for review and approval of the EMDP. For practical implementation, budgeting could be adjusted according to the situation. Where necessary, specific funds will be specified in the EMDP and included in the project budget to implement specific actions in the EMDP, in addition to those related to routine implementation and resettlement activities. The CPMOs will also need to finance the cost of external monitoring and reporting of EMDP progress and achievements.
3.9 Institutional and Implementation Arrangements
33 The PPMO will be responsible for the management of the overall project implementation, including coordination of preparation and implementation of EMDPs (for a chart of the organization of the project implementation, see figure below). The ADB Project will include consulting services to support CPMOs to prepare and implement the EMDPs. The CPMOs are the implementing agencies, which will have the specific responsibility to prepare and implement the EMDPs in accordance to this EMPF. The PPMO will authorize the CPMO of each subproject city to conduct regular internal monitoring, supervision, and reporting of the implementation of EMDPs as per the requirements of this EMPF. Internal reports will be prepared by CPMOs and submitted to the relevant PPMO semiannually.
34 The CPMOs, through their implementing agencies and the contractors, will play a leading role in implementing most of the construction-related measures previously presented. Specifically, the CPMOs will be directly involved in building or upgrading the related irrigation, drainage, and rural access roads in the project area, improving irrigated farmlands, and implementing various demonstration projects through finance provision and construction supervision. The CPMOs will also oversee the implementation of FPAs and WUAs in the project area, and the O&M of project facilities in general.
35 County governments and relevant agencies will take the leading role in implementing the supporting measures such as technical training, microcredit, and poverty alleviation measures. These actions and routine work of local governments will undoubtedly be implemented regardless of the project. Several government agencies will be involved, including ethnic (and religious) affairs bureau, labor and social welfare bureau, poverty reduction office, forestry bureau, agricultural bureau, women’s federation, township governments, etc.
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Figure 1: Organizational Diagram of Project Implementation
State Office for Comprehensive Agricultural Development (SOCAD) Project Leading Group (PLG)
National Project Management Office (PMO) in SOCAD
Provincial Offices for Comprehensive Agricultural Development (POCADs)
Provincial PMOs in POCADs
Prefecture Offices for Comprehensive Agricultural Development Prefecture PMOs
City/ County Offices for Comprehensive Agricultural Deve lopment (COCADs) City/ County PMOs
Township Government
Village Committees
Ethnic minority villagers, farmer professional associations, and water users associations
3.10 Grievance Redress Procedures
36 The process of implementation will be monitored by representatives of the local community to ensure quality of construction. If they find any problem, they will discuss with the contractors or report to the CPMO to make any reasonable changes. Their concerns regarding social and cultural issues will be integrated into project implementation. Grievances from minority communities or individuals should be addressed to the CPMO. If there are any complaints, problems and suggestions for project improvement, minority people can select different channels for their grievance redress. The formal grievance procedure is as follows:
(i) Step 1. If the ethnic minority people in the subproject area have complaints, they can put forward the written or oral appeal to the villagers' committeeor the FPA/WUA, or bureau responsible for O&M in the project area. In case of an oral appeal, the relevant organization must write it down and answer within 15 days. (ii) Step 2. If a minority person is unsatisfied with the decisions of the relevant organization, he/she can submit the written or oral appeal to the CPMO within 1 month after receiving the reply. The CPMO will answer within 15 days. (iii) Step 3. If the person is not satisfied with the decisions of the CPMO, he/she can submit the appeal to the PPMO within 1 month after receiving the reply of the CPMO. The PPMO will answer within 15 days. (iv) Step 4. If the person is not satisfied with the decisions of the CPMO, he/she can submit the appeal to the relevant government office for “Letters and Visits”. (v) Step 5. If affected persons are still dissatisfied with the arbitration, they can appeal to the civil court according to the Civil Procedure Law after they received arbitration. (vi) Step 6. If the person still is not satisfied with the decision, he/she can sue to the local court following the Administrative Procedure Law. 243
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37 If two or more households think they have suffered direct, material and adverse harm, and believe it stemmed from ADB’s lack of compliance with its policy and/or the RP, they may submit a request to ADB at any time, and following procedures set out in ADB’s Accountability Mechanism .9
3.11 Monitoring and Evaluation
38 Monitoring and evaluation (M&E) of the EMDP is required to ensure the plan is implemented properly and meets the objectives specified. ADB through the PPMO will assist the CPMOs in formulating the M&E plan. Objectives of the M&E plan include the following: (i) Collect data and information needed to identify effects and project impacts, including qualitative information to describe social changes on minority people and their communities; (ii) Analyze and document the results and achievements of the EMDP; (iii) Assess and encourage participatory approaches (PA) needed to plan and implement complementary activities; (iv) Focus on key actions and processes learned from the project for replication in other areas; and (v) Review and summarize any grievances and how these were resolved. 39 The collection of data should be kept to a minimum and should concentrate on data that is required for key indicators relevant for the specific EMDP. Data collected shall be disaggregated by gender, income, and ethnic group. The indicators related to the implementation of the EMDP for the targeted villages or residential committees could include (i) production output value; (ii) income per capita; (iii) poverty incidence; (iv) ownership of assets, including vehicles; (v) number of unskilled labors employed in the project; (vi) new commercial activity in the villages; (vii) changes in use of machinery in planting and harvesting in selected villages; (viii) new houses built and/or under construction in selected townships; (ix) amount of technical and socioeconomic advice and training to selected villages; (x) participation of ethnic minorities in project management and FPA/WUA; and (xi) other indicators related to specific subproject EMDP actions. 40 Not all of the above data will apply in each case. Some are only relevant and appropriate once the irrigation system and rural access roads have been constructed. This will be clarified in each EMDP. Questions in the ‘before construction survey’ should probe into the anticipated benefits from the schemes and other development priorities. Surveys would be carried out in villages located in close proximity to the project.
3.12 Reporting
41 During project implementation, the PPMOs and the CPMOs will monitor and assess the project impacts on ethnic minorities according to the monitoring indicators specified in each EMDP. The CPMOs will prepare and submit semiannual internal monitoring reports to the PPMOs; these will be made available to ADB upon request. An external monitoring agency (EMA) will provide independent external M&E reports for the EMDP implementation and safeguard issues. Before project implementation, relevant PPMOs will contract an independent institute or nongovernment organization (NGO) as the EMA. The EMA will develop an M&E plan. Thereafter, semiannual investigations will be conducted; and consolidated provincial M&E reports will be prepared for submission to the CPMOs, the
9 http://www.adb.org/Accountability-Mechanism 244
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PPMOs, the national PMO, and ADB. Concerned CPMOs will coordinate their implementing agencies and with local governments to assist the EMAs in carrying out the M&E plan. The final budget for M&E activities will be determined once the detailed M&E plan is completed, which will be used for hiring EMA for monitoring EMDP implementation.
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Annex 1 Subproject Ethnic Minorities Screening Form
Project Title Project No.
Subproject Name: ______Date: ______Short Subproject Description: Location and impact area:
KEY CONCERNS (Please provide elaborations on the NOT Remarks column) YES NO KNOWN Remarks
A. Ethnic Minority Identification
1. Are there sociocultural groups present in or use the project area who may be considered as "ethnic or national minorities”, in the project area?
2. Are there national or local laws or policies as well as anthropological researches/studies that consider these groups present in or using the project area as belonging to "ethnic minorities", scheduled tribes, tribal peoples, national minorities, or cultural communities?
3. Do such groups self-identify as being part of a distinct social and cultural group?
4. Do such groups maintain collective attachments to distinct habitats or ancestral territories and/or to the natural resources in these habitats and territories?
5. Do such groups maintain cultural, economic, social, and political institutions distinct from the dominant society and culture?
6. Do such groups speak a distinct language or dialect?
7. Has such groups been historically, socially and economically marginalized, disempowered, excluded, and/or discriminated against?
8. Are such groups represented as "ethnic minorities" in any formal decision-making bodies at the national or local levels?
B. Identification of Potential Impacts
9. Will the project directly or indirectly benefit or target ethnic minority?
10. Will the project directly or indirectly affect ethnic minority’s traditional sociocultural and belief practices? (e.g. child-rearing, health, education, arts, and governance)
11. Will the project affect the livelihood systems of ethnic minority? (e.g., food production system, natural resource management, crafts and trade, employment status)
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12. Will the project be in an area (land or territory) occupied, owned, or used by ethnic minority, and/or claimed as ancestral domain?
C. Identification of Special Requirements :
13. Will the project activities include commercial development of the cultural resources and knowledge of ethnic minority?
D. Anticipated Project Impacts on Ethnic Minorities
Project Component/ Anticipated Negative Activity/Output Anticipated Positive Effect Effect
Prepared by: Date:
Endorsed by: County PMO Director Date:
ADB received by Date
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Annex 2 Ethnic Minority Development Plan: List of Contents
1. Its level of detail and comprehensiveness is commensurate with the significance of potential impacts on ethnic minorities. The substantive aspects of this outline will guide the preparation of ethnic minority development plans (EMDPs), although not necessarily in the order shown.
A. Executive Summary
2. This section concisely describes the critical facts, significant findings, and recommended actions.
B. Description of the Project
3. This section provides a general description of the project; discusses project components and activities that may bring impacts on ethnic minorities; and identify project area.
C. Social Impact Assessment
4. This section (i) reviews the legal and institutional framework applicable to ethnic minorities in project context; (ii) provides baseline information on the demographic, social, cultural, and political characteristics of the affected ethnic minority communities; the land and territories that they have traditionally owned or customarily used or occupied; and the natural resources on which they depend; (iii) identifies key project stakeholders and elaborate a culturally appropriate and gender-sensitive process for meaningful consultation with ethnic minorities at each stage of project preparation and implementation, taking the review and baseline information into account; (iv) assesses, based on meaningful consultation with the affected ethnic minority communities, the potential adverse and positive effects of the project. Critical to the determination of potential adverse impacts is a gender-sensitive analysis of the relative vulnerability of, and risks to, the affected ethnic minority communities given their particular circumstances and close ties to land and natural resources, as well as their lack of access to opportunities relative to those available to other social groups in the communities, regions, or national societies in which they live; (v) includes a gender-sensitive assessment of the affected ethnic minorities’ perceptions about the project and its impact on their social, economic, and cultural status; and (vi) identifies and recommends, based on meaningful consultation with the affected ethnic minority communities, the measures necessary to avoid adverse effects or, if such measures are not possible, identifies measures to minimize, mitigate, and/or compensate for such effects and to ensure that the ethnic minorities receive culturally appropriate benefits under the project.
D. Information Disclosure, Consultation and Participation
5. This section (i) describes the information disclosure, consultation, and participation process with the affected ethnic minority communities that was carried out during project preparation; 248
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(ii) summarizes their comments on the results of the social impact assessment; and identifies concerns raised during consultation, and how these have been addressed in project design; (iii) in the case of project activities requiring broad community support, documents the process and outcome of consultations with affected ethnic minority communities and any agreement resulting from such consultations for the project activities and safeguard measures addressing the impacts of such activities; (iv) describes consultation and participation mechanisms to be used during implementation to ensure ethnic minority participation during implementation; and (v) confirms disclosure of the draft and final EMDP to the affected ethnic minority communities.
E. Beneficial Measures
6. This section specifies the measures to ensure that the ethnic minorities receive social and economic benefits that are culturally appropriate, and gender responsive.
F. Mitigative Measures
7. This section specifies the measures to avoid adverse impacts on ethnic minorities; and where the avoidance is impossible, specifies the measures to minimize, mitigate, and compensate for identified unavoidable adverse impacts for each affected ethnic mMinority groups.
G. Capacity Development
8. This section provides measures to strengthen the social, legal, and technical capabilities of (a) government institutions to address ethnic minority issues in the project area; and (b) ethnic minorities organizations in the project area to enable them to represent the affected ethnic minorities more effectively.
H. Grievance Redress Mechanism
9. This section describes the procedures to redress grievances by affected indigenous peoples communities. It also explains how the procedures are accessible to indigenous peoples, and are culturally appropriate and gender sensitive.
I. Institutional Arrangement
11. This section describes institutional arrangement responsibilities and mechanisms for carrying out the various measures of the EMDP. It also describes the process of including relevant local organizations and NGOs in carrying out the measures of the EMDP.
J. Budget and Financing
12. This section provides an itemized budget for all activities described in the EMDP.
K. Monitoring, Reporting, and Evaluation
10. This section describes the mechanisms and benchmarks appropriate to the project for M&E of the implementation of the EMDP. It also specifies arrangements for participation of affected ethnic minorities in the preparation and validation of M&E reports. . 249
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Appendix 21 Risk Assessment and Risk Management Plan
Risk Assess - Management Plan ment Inadequate maintenance of new H The Project will continue to support the World Bank’s irrigation and drainage “Self-managed Irrigation and Drainage District concept whereby infrastructure the Water Supply Organizations (Water Bureaus or Supply Companies) are responsible for operation and maintenance (O&M) of the water resource works, trunk water delivery canal system, and water supply, and Water User Associations (WUAs) are responsible for basic maintenance of the irrigation canal system at branch (lateral) level and below.
Assurances will be incorporated into the loan agreement to encourage the gradual increase of irrigation fees to a level sufficient to cover the cost of O&M, and to ensure that WUAs have sufficient financing to undertake their responsibilities Lack of capacity and sustainability M The piggy-backed Capacity Development Technical Assistance of new/ strengthened WUAs. (CDTA) included with the loan will build on the achievements of earlier World Bank and the Department for International Development of the United Kingdom (DfID) programs for developing WUAs. The TA will specifically support the development of one pilot WUA using best international practices in each participating province and will support farmer field days so that other WUAs can benefit Lack of sustainability of tubewell M Tubewell irrigation will be shared by a group of farmer who will systems due to limited operating pay operation costs and tubewell and pump maintenance life of pumps and other including pump renewal when required. investments. Low adoption of water-saving L Lining of canals is a water saving technology completely technologies, especially financed by the project. Low pressure piping is relatively low low-pressure pipe, sprinkler, and cost and can be easily adopted for tubewell irrigation systems. micro-irrigation systems. Sprinkler and micro-irrigation systems will only be adopted for cash crops to ensure crop quality – not water saving. Project areas fail to achieve L Improvement in water use efficiency will be achieved through improvement in water use water saving technologies promoted by the project. Reduction efficiency and/or use of water of crop water use will be achieved through incentives increases. introduced together with establishment of water user associations. Soil salinity continues to increase M Agriculture Bureaus should carefully monitor the situation and particularly in rice production areas prepare appropriate extension programs as required. in Ningxia Hui Autonomous Region Lack of water saving management M The piggy-backed CDTA will include approaches water practices managers can reduce water use and maintaining yield Limited farmer adoption of soil M Agricultural extension services will be encouraged to improvement technologies – land incorporate promotion of soil improvement technologies into leveling, deep plowing, crop their extension packages. residue and balanced fertilizer application – after one year of subsidy support. Improved seed varieties will not L Agricultural Bureaus must work closely with seed companies to effectively increase yields as demonstrate/test all new varieties before release. Promotion expected or adoption will be programs must be financially supported. limited. Limited adoption of Integrated Pest M Where necessary, Agricultural Bureaus must be prepared to Management (IPM) technologies extend duration of IPM demonstrations Lack of sustainability of agro- H Any machinery organization or FA that wants to benefit from the machinery investments supply of agro-machinery under the project must have a well-developed management plan including a commitment to providing farmers with machinery services on a full cost-recovery basis, including replacement costs. Lack of capacity and sustainability M The piggy-backed CDTA included with the loan will address the of new/strengthened Farmer need for supporting the development of FAs and will undertake Associations (FA). pilot activities in some provinces. Poor adoption of modern L More inclusive and extensive training programs will be 250
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 agriculture demonstrations – developed to assure greater penetration of these ideas into all greenhouses, safe agriculture and project areas. green agriculture products Limited participation by women M The project will directly address women through the Gender particularly in key areas such as Action Plan (Appendix 17) and the Gender and Development project management, WUA and FA Cooperation Fund Proposal for Rural Women’s Economic management, and farmer training Empowerment in Anhui, Ningxia and Yunnan (Appendix 18). Ineffective development of L The IIMS will be conducted on a pilot basis in the two provinces integrated information (Ningxia and Heilongjiang) that have expressed specific interest management system (IIMS). in the proposal and will be supported through the CDTA H = High; M = Moderate; L = Low.
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Appendix 22 Capacity Development Technical Assistance
A22.1 Introduction
During project preparation, it was observed that there is a need to strengthen the capacity of the executing agency and, in particular, the implementing agencies. The sector analysis, capacity, and risk assessments have identified four priority issues that need to be improved to support the effective implementation and impact of the current, and future, Command Area Development (CAD) Projects: (i) effective farmer-based water user associations (WUAs) and other farmer associations (FAs) including the possibility of combining these functions; (ii) the possible role of WUA federations; (iii) promotion of water efficiency measures in irrigated agriculture; (iv) establishment of and integrated information management system for CAD at the national and provincial level; and (v) development of strategies for the promotion and dissemination of cultivation and post-harvest processing techniques emerging from the extensive demonstration areas in capacity-building efforts supported by the project.
It is also important to build social dimensions, such as gender ethnic minority development, into the capacity development of the implementing agencies and, in particular, into the management structures of the WUAs and FAs. The social analyses conducted for project preparation confirmed that in most of the project areas, due to high rates of urban migration by working-age males and young females, the rural population managing and operating the farms is predominantly female. This skewed gender bias is rarely manifested in the management structure and composition of WUAs and FAs, and requires close attention Given the increasing role that women play in crop production, training opportunities must be sited in locations that are close enough to homes to be accessible to women farmers who are usually required to provide care-giver services. This may involve moving training sites from county seats to townships.
A22.2 Impact and Outcome
The expected impact of the capacity development technical assistance (CDTA) is an enabled framework and capacity of the State Office for Comprehensive Agricultural Development (SOCAD) and the six Provincial Offices for Comprehensive Development (POCADs) for supporting economic growth and environmental sustainability. The expected outcome of the CDTA is the strengthened capacity of the executing agency and the implementing agencies to (i) support the sustainable development of CAD projects through effective farmer-based organizations, and (ii) monitor project implementation through an integrated information management system.
A22.3 Outputs
The CDTA has four outputs: (i) training and support for developing WUAs and other FAs; (ii) exploring the possibility of establishing WUA federations; (iii) summarizing and promoting water efficiency measures in irrigated agriculture; and support for establishing an integrated information management system for CAD. TA activities will be directly integrated with the project support the implementing agencies in improving the establishment and improvement of WUAs and FAs, ensuring the effectiveness of the proposed water efficiency measures, and assisting Heilongjiang and Ningxia POCADs in the establishment of the proposed integrated information management systems.
A22.3.1 Training and Support for Developing WUAs and Other FAs
The CDTA will support (i) training of SOCAD and related ministries and provincial bureaus on the principals and operation of WUAs and FAs as appropriate to the Chinese situation; (ii) 252
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 training of project management staff on the basic concepts of WUAs and FAs including sets of procedures, participatory processes, registration, budgeting, and water allocation and distribution; (iii) training of local government officials at the county, township and administrative village levels on the legal basis, structure, and benefits of WUAs and FAs, and how they can complement and support their formation and operation; (iv) training to farmers (including female farmers) on WUA and FA concept, structure, operations and participatory methods; and (v) establishing/strengthening one pilot WUA and one pilot FA in each project province including training of the WUA/FA officials and core members. The pilot WUAs/FAs will act as the focus for training of sub-provincial level officials and farmers.
The outline terms of reference (TORs) are as follows: (i) review the achievements to date with respect to development of WUAs, with particular reference to achievements under World Bank and Department of International Development (United Kingdom) assistance (ii) review the current status of WUAs and FAs in the project area and define the needs for capacity building; (iii) prepare training programs for each of the groups of trainees to be supported by the CDTA; (iv) undertake training at the national and provincial levels assist POCADs with the initial training at the lower level; (v) identify target WUAs and FAs for the pilot activities; (vi) assist with the establishment of pilot WUAs and FAs; and (vii) prepare manuals and guidelines for extension of the model to other areas.
A22.3.2 Exploring the Possibility of Establishing WUA Federations
The CDTA will support (i) training of SOCAD, provincial project management staff, and water supply organization staff in the principles and objectives of WUA federation formation and operation; (ii) conducting workshops in selected irrigation districts with the objective of discussing common issues and the proposal for establishing a WUA federation; (iii) training of WUA officials in selected irrigation districts on the concept, structure, operations and participatory methods of WUA federations; (iii) conducting workshops for election of board members, setting out procedures, Articles of Association and budgets, etc.; and (iv) conducting open days for WUA members from other irrigation districts.
The outline TORs are as follows: (i) review the principles and processes for establishment of WUA foundations in other similar countries in the region; (ii) prepare training documents and undertake training of participating government organizations; (iii) identify together with project management suitable candidate areas for establishment of WUA federations; (iv) assist SOCAD and POCADs to conduct workshops and training of WUA officials; (v) assist with organization and conducting of open days; and (v) prepare strategies for the promotion and dissemination of cultivation and post-harvest processing techniques emerging from the demonstration areas.
A22.3.3 Summarizing and Promoting Water Efficiency Measures in Irrigated Agriculture
The CDTA will support (i) collating and reviewing water efficiency measures – including both improved irrigation technologies and crop production – currently being used in China and internationally in order to identify a list of best practices; (ii) demonstration of selected measures in selected subproject areas; (iii) training provincial and county officials on the appropriate use of water efficiency measures, and (iv) conducting farmer field days for disseminating these measures.
The outline TORs are as follows: (i) undertake a review of water efficiency measures including irrigation technologies and crop production practices that are currently being used in China; (ii) prepare training material and undertake training courses for provincial and county officials; (iii) assist provincial and county officials with the identification of suitable demonstration sites in appropriate locations and selection of demonstrations; and (iii) assist 253
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 provincial and county officials with implementation of demonstrations and conducting of farmer field days.
A22.3.4 Support for Establishing an Integrated Information Management System for CAD
The CDTA will support (i) conducting workshops study tours for reviewing the alternative approaches for establishing an integrated irrigation management system for Ningxia and Heilongjiang, and potential connections to the SOCAD system; (ii) conducting needs analysis; (iii) providing assistance to the POCAD staff to develop and test the selected system; and (iv) conducting workshops and training to demonstrate the system to SOCAD and the other POCADs.
The outline TORs are as follows: (i) undertake a review of integrated irrigation management systems used by similar projects in other ministries, in particular the Ministry of Water Resources; (ii) based on the findings of the review propose and agree with SOCAD and the participating POCADs an appropriate strategy for the proposed system; assist the participating POCADs with acquisition of the necessary computer hardware and software, and satellite imagery, etc.; (iii) assist the POCADs with installation and testing of the system; (iv) assist in the organization and conducting of training and workshops to demonstrate the operational system; and (v) prepare comprehensive documentation of the installed system.
A22.4 Implementation Arrangements
SOCAD is the executing agency for the CDTA. The central project management office (PMO) will assume the day-to-day management responsibilities for the CDTA implementation and will coordinate with the provincial project management offices (PPMOs) to ensure the efficient selection of pilot areas and implementation of field work.
It is estimated that 20 person-months of international consulting services and 54 person-months of national consulting services will be required. The indicative international consultants include (i) a water user association/farmer association expert (8 person-months); (ii) an irrigation management specialist (6 person-months); (iii) an irrigated agriculture specialist (2 person-months); (iv) a management information systems specialist (2 person-months); (v) a training specialist (1 person-months); and a gender specialist (1 month). The indicative national experts include (i) a water user association expert (12 person-months); (ii) a farmer association specialist (8 person-months); (iii) an irrigation management specialist (8 person-months); (iv) an irrigated agriculture specialist (6 person-months); (v) a management information systems specialist (8 person months); (vi) a training and needs assessment specialist (6 person-months); and (vii) a gender and ethnic minorities specialist (6 months)
A consulting firm will be engaged by ADB in accordance with its Guidelines on the Use of Consultants (2007, as amended from time to time) using the quality- and cost-based selection with a quality-cost ratio of 80:20. Equipment to be purchased under the CDTA will be procured in accordance with the ADB’s Procurement Guidelines (2007, as amended from time to time). Implementation of the CDTA will take about 2 years from October 2011 to December 2013. Implementation progress will be monitored through inception, interim, and draft final review meetings, workshops and conferences. The training, workshop, and conference funds will be administered through the executing agency, and an advance payment facility will be provided.
A22.5 Costs and Financing
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The total cost of the CDTA is estimated at $1,050,000 equivalent, of which $800,000 will be provided by ADB on a grant basis. The remaining $250,000 will be financed by the Central and provincial Governments through in-kind contributions including provision of counterpart staff, office accommodation, and local travel in the provinces. The estimated cost and financing plan are provided in Table A22.
Table A22: Cost Estimates and Financing Plan ($’000) Item Total C ost A. Asian Development Bank Financing 1. Consultants a. Remuneration, and Per Diem (i) International Consultants 360.0 (ii) National Consultants 216.0 b. International and Local Travel 30.0 c. Reports, Communications, Translation, and Interpretation 25.0 2. Equipment and Supplies a 50.0 3. Support to Water User Associations, Water User Association Federations, and Farmer Associations b 35.0 4. Surveys and Workshops 35.0 5. Contingencies 51.0 Subtotal (A) 1,000.0 B. Government Financing 1. Remuneration and Per Diem of Counterpart Staff at Central and Provincial Level 100.0 2. Office Accommodation, Utilities, and Transport 80.0 3. Surveys and Investigations 25.0 4. Logistical Support in Provinces and Counties 20.0 5. Contingencies 25.0 Subtotal (B) 250.0 Total (A + B) 1,050.0 a Includes workstations, computers, copiers, printers, survey equipment, and office supplies. Equipment purchased with ADB financing will be handed over to the executing agency on the completion of the CDTA b Small grants (about $2,500) to each pilot WUA, WUA federation and FA as incentives for the establishment and conduct of demonstrations for other farmer groups. Source: Consultant’s estimates
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Appendix 23 Pilot Solar-powered Irrigation Study
A23.1 Introduction
Solar-powered water pumping systems can be used to pump groundwater from wells for irrigation, watering livestock or household water supply. For irrigation, the system comprises solar panels, converter from direct current (DC) to alternating current (AC), submersible pump, tube-well, and appropriate irrigation system. Options are available to use batteries to store surplus power. The system replaces power from fossil fuels and is most appropriate in areas where power supply is not available, groundwater tables are shallow (preferably above 20m), and the annual sunshine is above 2,600 hours.
Trials conducted in Qinghai 1 demonstrated that, using 2.0-kW solar panels and a submersible pump of 32 m 3/hr, drawing groundwater from 26-m depth could pump 5.1 m 3/hr or 41 m 3/9-hour day. Assuming an evapotranspiration rate of 4-5 mm/day this would be sufficient to irrigate 1 ha of land, with no alternative sources of water.
A Technical Assistance (TA) is proposed to establish pilot solar- irrigation pumping systems in Ningxia Autonomous Region (AR), and Heilongjiang and Jilin Provinces.
A23.2 Project description
Based on monthly sunshine hours for the six project provinces (Figure A23) Ningxia, Jilin and Heilongjiang are most appropriate for pilot trials of solar-powered irrigation for crop production, followed by Anhui, Henan and Yunnan.
Figure A23: Sunshine hours by month in six provinces
Source: China Statistical Yearbook 2005
The proposed locations are Nanliang and Pingjibao State Farms in Nongken County Ningxia AR; Binxian County in Heilongjiang Province, and Lishu County in Jilin Province. All of the
1 ADB. 2010. Qinghai Pasture Conservation Using Solar Photovoltaic (PV)-Driven Irrigation (ADB RSC-C91300 (PRC)) Final Report. 256
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 sites will use solar photovoltaic (PV) systems for pumping groundwater for irrigation of crops. The pilot areas will focus on development and demonstration of solar energy use together with water saving irrigation to develop a renewable energy ‐driven irrigation system. The parameters of the different sites are given in Table A23.1 and the characteristics of the sites are in Table A23.2.
Table A23.1: Climatic and irrigation parameters of Solar PV pumping irrigation pilot sites Pa rameters Nongken, Lishu, Binxian, Ningxia Jilin Heilongjiang Annual precipitation (mm) 200 577 578 Annual evaporation (mm 1,900 1,763 1,518 Annual sunshine hours 3,000 2,698 2,690 Groundwater table (m) 2 8 35-40 Well depth (m) 40-85 40 85-100
Table A23.2: Solar PV pumping irrigation pilot sites Irrigation Estimated Township, No. of Province County Crop Irrigation method volume (m 3/ha/ irrigation Village wells a crop/year) area (ha) Nanliang Groundwater pumped to Farm, 10,500 Ningxia Nongken Wolfberry canals for supplementary 7 11x7=77 Pingjibao (5 irrigations/yr) irrigation Farm Lamadian township, Drip under plastic sheet 1,265 Jilin Lishu Maize 1 15 Liujiazi mulch ( 6 irrigations) Village Binzhou Groundwater pumped to Heilong- township, Paddy field Binxian Rice canals for 1 0.7 jiang Erlong- irrigation supplementary irrigation shan cun a Irrigation area estimated based upon Qinghai solar irrigation results of 41 m 3/day using 2kW PV and 26-m water table
A23.3 Impact and Outcome
The expected impact of the TA is the demonstration and testing of solar-powered irrigation systems in 9 locations in three provinces under different climatic conditions, irrigation methods and crops. The expected outcomes are (i) the increased awareness of the executing agency and implementing agencies of alternative irrigation methods using renewable energy sources, and (ii) results of pilot trials enabling technical and economic evaluation for possible replication in other areas.
A23.4 Outputs
The TA has three outputs: (i) establishment of pilot solar-powered irrigation systems in 9 locations in 3 provinces; (ii) evaluation of the pilots using solar powered irrigation systems in 3 provinces and climatic areas; (iii) summarizing and promoting solar powered irrigation systems.
A23.4.1 Establishment of pilot solar-powered irrigation systems
The TA will establish pilot solar powered irrigation systems in Ningxia (7 locations), Jilin (1 location) and Heilongjiang (1 location) under different climatic conditions, irrigation water supply of wolfberry, maize and rice crops, respectively.
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The outline terms of reference (TORs) are: (i) review and evaluate proposals prepared by provincial comprehensive agricultural development (CAD) offices; (ii) prepare detailed appraisal for each subproject together with equipment specifications and costs; (iii) provide training to CAD staff for installation and maintenance of solar-powered irrigation systems; (iv) assist provincial and county officials with the identification of suitable demonstration sites and selection of demonstrations; and (v) assist with the establishment of the solar-powered irrigation system.
A23.4.2 Testing and Evaluation of solar powered irrigation systems
The TA will support (i) testing and monitoring of the solar-powered irrigation systems to evaluate their technical and economic feasibility in accord with the prevailing conditions and with respect to water pumping volume and crop yield; (ii) economic comparison against other types of irrigation system and hence ascertain suitability for replication in other areas; and (iii) proposals for modification to the system and its operation.
The outline TORs are as follows: (i) establish sets of parameters to be measured including control sites not using solar irrigation during crop season; (ii) identify monitoring equipment requirements for purchase and prepare specifications; (iii) collect and analyze data from a technical and economic perspective; and (iv) prepare conclusions and recommendation based upon study.
A23.4.3 Summarizing and Promotion of Solar-powered Irrigation Systems
The TA will support (i) conducting workshops and field days in selected irrigation districts for propagation of the concept of solar pump irrigation systems; (iii) training of provincial and county officials on the appropriate use of solar pump irrigation systems, and (iv) training of the executing agency and provincial project management staff on solar pump irrigation systems.
The outline TORs are as follows: (i) prepare training materials and undertake training courses for national, provincial and county officials; (iii) assist provincial and county officials with implementation of demonstrations and conducting of farmer field days together with brochures and workshop manuals and guidelines based upon results of the pilot trials; and (iii) conduct provincial and national workshops to disseminate the findings of the TA.
A23.5 Implementation Arrangements
The State Office of Comprehensive Agricultural Development (SOCAD) is the executing agency for the TA. The central project management office (PMO) will assume the day-to-day management responsibilities for implementation and will coordinate with the provincial project management offices (PPMOs) to ensure the efficient selection of pilot areas and implementation of field work.
It is estimated that 6.0 person-months of international consulting services and 7.5 person-months of national consulting services will be required. The indicative international consultants include (i) solar irrigation expert (3.5 person-months); (ii) irrigated agriculture extension specialist (2 person-months); and (iii) agriculture economist (1.0 person month). The indicative national experts include (i) experimental irrigation expert (5 person-months); and (ii) agricultural extension specialist (2.5 person months).
A consulting firm will be engaged by ADB in accordance with its Guidelines on the Use of Consultants (2007, as amended from time to time) using the quality- and cost-based selection with a quality-cost ratio of 80:20. Equipment to be purchased under the TA will be procured in accordance with the ADB’s Procurement Guidelines (2007, as amended from 258
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 time to time). Implementation of the TA will take about 2 years from October 2011 to December 2013. Implementation progress will be monitored through inception, interim, and draft final review meetings, workshops and conferences. The training, workshop, and conference funds will be administered through the executing agency, and an advance payment facility will be provided.
A23.6 Costs and Financing
The total cost of the TA is estimated at $850,000 equivalent, of which $700,000 will be provided by ADB on a grant basis. The remaining $150,000 will be financed by the Central and provincial Governments through in-kind contributions including provision of counterpart staff, office accommodation, and local travel in the provinces. The estimated cost and financing plan are provided in Table A23.3, and a breakdown of equipment costs by province is given in Table A23.4.
Table A23.3: Cost Estimates and Financing Plan ($’000) Item Total Cost A Asian Development Bank Financing 1. Consultants a. Remuneration, and Per Diem (i) International Consultants 120.0 (ii) National Consultants 30.0 b. International and Local Travel 15.0 c. Reports, Communications, Translation, and Interpretation 25.0 2. Equipment and Supplies a 482.2 3. Contingencies 27.8 Subtotal (A) 700.0 B Government Financing 1. Remuneration and Per Diem of Counterpart Staff at Central and Provincial Level 100.0 2. Logistical Support in Provinces and Counties 25.0 3. Contingencies 25.0 Subtotal (B) 150.0 Total 850.0 a Includes PV panels, controller, pump, well, well-house, drip irrigation systems. Equipment purchased with ADB financing will be handed over to the executing agency on the completion of the CDTA Source: Consultant’s estimates
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Table A23.4: Breakdown of Equipment Cost by Province Subproject/Equipment Description Cost ($) Binxian Heilongjiang PV module 2.5 kW 66,370 Controller DC to AC DC to AC 41,300 Pump 2.0 KW, Lift 50 m, 30 m 3/hr Submersible pump 3,690 Well 80-100 m 14,750 Well house 30 m 2 2,950 Subtotal 129,060 Lishu Jilin PV module 10 kW 26,550 Controller DC to AC DC to AC 3,250 Pump 10 KW, Lift 54 m, 32 m3/hr, Submersible pump 150QJ32-54 620 Well 40 m 2,640 Well house 30 m 2 660 Drip irrigation 8,260 Subtotal 41,980 Nongken Ningxia PV module 2.5 kW, 7 sets Controller DC to AC DC to AC, 7 sets 226,100 Pump 2.0 KW, lift 10 m, 35 m 3/hr 7 submersible pumps Well 40 m, 7 wells 33,480 Well house 7 well house with 50 m 2 each 51,620 Subtotal 311,200 Total 482,200
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Appendix 24 List of Persons Met
Unit Name Position Contact Details Jilin Province CAD Office Liang Dailiang Vice Director Mob: 13500800900 Land Management Sun Jian Deputy Director General Mob: 13756112200 Division, CAD Office Land Management Wang Changchun Section Chief Mob: 13604301605 Division, CAD Office Member of the Standing Yushu City Committee Tan Jingkun Mob: 13384470666 Committee, Deputy Mayor Qing Shan Village in Secretary of the Party Wang Chenghua Mob: 13904395505 Yushu City Committee Finance Bureau of Yushu Ren Ming Deputy Director General Mob: 13304390246 City Water Conservancy Liu Xifan Deputy General Engineer Mob: 13943156996 Bureau of Yushu City Administration Office of Zhu Yuwen Director General Mob: 13596133518 Yanqing Irrigation in Yushu Agriculture Bureau of Shao Jianting Section Chief Mob: 13756244680 Yushu City CAD Office of Yushu City Jin Yushuang Director Mob: 13364640098 CAD Office of Yushu City Li Qingshuang Vice Director Mob: 13304390548 CAD Office of Yushu City Wang Shulin Accountant Mob: 13844952890 CAD Office of Yushu City Hu Jingqiu Teller Mob: 13610795570 Heilongjian g Province CAD Office Li Rongxiang Director General Mob:13903711848 CAD Office Liu Wei Deputy Director General Mob:13313609291 CAD Office Wang Wengang Deputy Director General Mob:13304804550 CAD Office Liu Fei Section Chief Mob: 13069885133 CAD Office Tian Qingfeng Section Chief Mob: 13945688721 CAD Office Zou Qi Deputy Section Officer Mob:13839835036 Northeast Agricultural Wang Daqing Doctor Mob:13603812089 University Northeast Agricultural Director of Doctor Wang Hongyan Mob:15939811238 University Students Water Resources He Quan Engineer Mob:13603813008 Department Finance Bureau of Binxian Li Qian Deputy Director General Mob: 13904665987 County Water Conservancy Jiang Baixue Deputy Director General Mob: 13836056265 Bureau of Binxian County Agricultural Technology Promotion Center of Lan Yufemng Vice Director Mob:13845039958 Binxian Couty CAD Office, Harbin City Wang Tingrong Director General Mob:13945193360 Project Section, CAD Cao Bingxian Section Chief Mob:13603616055 Office, Binxian County Finance and Accounting Section, CAD Office, Dong Yu Section Chief Mob:13199520111 Binxian County Compositive Section, CAD Wang Lijun Section Chief Mob:13804630010
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Unit Name Position Contact Details Office, Binxian County Juren Town Luo Hongcheng Deputy Chief Mob:13796839578 Water Conservancy Bai Guilong Station Master Mob:13613638937 Station of Juren Town Cooperatives Zong Enhai Master Mob: 13039983389 Cooperatives Dan Baodong Member Mob:15545330027 Cooperatives Guo Zhanqi Member Cooperatives Feng Shaochen Member Cooperative Song Haifeng Member Henan Province Lankao County The head of Lankao Zhou Zhenliang Mob:13903783606 Government county Lankao County Deputy Head of Lankao Wei Sui’an Mob:13603485658 Government County Lankao County Zhang Anying Office Deputy Director Mob:13937815069 Government CAD Office, Lankao Wang Fengpu Director Mob:13937801286 County CAD Office, Lankao Wang Xiumin Vice Director Mob:13938629876 County CAD Office, Lankao Tao Jianfeng Section Chief, Engineer Mob:13783900199 County Finance Bureau of Lankao Deputy Director General, County Wang Yongzhen Certified Public Mob:13837806856 Accountant Finance Bureau of Lankao Jia Zhongsen Section Chief Mob:13937876759 County Agriculture Bureau of Deputy Director General, Sun Yukun Mob:13608605586 Lankao County Agronomist Agriculture Bureau of Deputy Director General, Wang Wujun Mob:13937883939 Lankao County Agronomist Water Conservancy Cai Huading Deputy Director General Mob:13839982356 Bureau of Lankao Design Institute of Water Conservancy Bureau of Zhao Fanyu Dean, Engineer Mob:13837883897 Lankao County Forestry Bureau of Lankao Deputy Director General, Dong Shuquan Mob:13608606343 County Engineer Forestry Bureau of Lankao Zhao Zhichu Section Chief, Engineer Mob:13598763914 County Bureau of Animal Deputy Director General, Husbandry in Lankao Zhu Shuiyong Specialist of Animal Mob:13837883526 County Husbandry Bureau of Land of Lankao Xiao Fujun Deputy Director General Mob:13937883573 County Science and Technology Zhao Guoqiang Deputy Director General Mob:13598792671 Bureau of Lankao County Department of Environmental Protection, Kong Bao’an Deputy Director General Mob:13937846233 Lankao County Anhui Pro vince CAD Office Wu Xingyi Deputy Director General
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Unit Name Position Contact Details Project Division, CAD Chen Jun Director General Office Project Division, CAD Wang Meng Section Chief Mob:13865917449 Office CAD Office, Bozhou City Song Dongmei Director CAD Office, Bozhou City Deng Feng Section Chief The People's Government Liu Shaotai Deputy Mayor of Fuyang City Finance Bureau of Fuyang Yang Haitao Deputy Director General City CAD Office, Fuyang City Yang Shixin Director General CAD Office, Fuyang City Liu Dongya Deputy Director General Party Committee of Tang Zhi Deputy Secretary Linquan county Linquan County Deputy Head of Linquan Zhang Fengguo Government County Linquan County Deputy Head of Linquan Sun Bin Government County Finance Bureau of Li Hui Director General Linquan County Finance Bureau of Wang Qiang Deputy Director General Linquan County Department of Transportation in Linquan Zhang Li Director General County Water Conservancy Sun Chuande Director General Bureau of Linquan County Agriculture Committee of Liu Sanli Director Linquan County Forestry Bureau of Xu Biao Director General Linquan County Secretary of the Party Taolaoxiang Village Cai Yongliang Committee Yunnan Province CAD Office Ning Yongjin Section Chief Mob:13888061229 CAD Office, Lijiang City Li Xianmin Director Mob:13988858207 CAD Office, Lijiang City Zhao Liju Vice Director Mob:13988878676 CAD Office, Lijiang City He Ming Vice Director Mob:13988877536 Finance Bureau of Yulong Zhou Yaoguang Director General Mob:13908880069 County Finance Bureau of Yulong Wen Zhenggang Secretary Mob:13308881011 County CAD Office, Yulong Wang Guoxin Director Mob:13988858852 County Office, Finance Bureau of He Yaoming Director Mob:13769031317 Yulong County Hebei Group Li Jixing Farmer Henan Group Zhu Daxuan Clerical Staff Henan Group Song Xianming Grouo Leader Baidong Group Zhang Honggui Farmer Majie Group Luo Zhi’an Farmer Hedong Group Yang Zixing NPC Member of th e Group
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Unit Name Position Contact Details Sanying Town Feng Zhuobin Staff member Government Sanying Town Li Jilong Deputy Chief Government CAD Office, Eryuan Dong Yukun Director County Office, Eryuan County Yang Guangxiong Vice Directo 0872-5127931 Government County Women's 0872-5127227 Li Wenli President Federation 0872-5127225 Agriculture Bureau of Yang Zhongwei Director General 0872-5123632 Eryuan County National Religious Office Gong Hongsong Director General 0872-5125608 of Eryuan County Water Conservancy Zhang Shiren Director General 0872-5123173 Bureau of Eryuan County Poverty Alleviation Office Duan Jianyu Director 13908721622 of Eryuan County Finance Bureau of Eryuan Yang Zeliang Director General 0872-5122271 County Finance Bureau of Eryuan Ai Chengcheng Deputy Director General 0872-5122787 County CAD Office, Finance Dong Yukun Director 0872-5122287 Bureau of Eryuan County CAD Office, Finance Yang Jianfa Statistician 0872-5122287 Bureau of Eryuan County CAD Office, Finance Chen Cuiqing Accountant 0872-5122287 Bureau of Eryuan County CAD Office, Finance Yang Jianxiang Teller 0872-5122287 Bureau of Eryuan County Ningxia Autonomous
Region CAD Office Chen Yan Director CAD Office Ma Qiong Vice Director CAD Office Liu Zhaobo Vice Director Land Division, CAD Office Liu Wei Section Chief Review Section, CAD Zhang Wei Section Chief Office Finance Division, CAD Sui Keren Section Chief Office Comprehensive Division, Wu Yanling Section Chief CAD Office Foreign Capital Section, 0871-3619492 Zhou Bin Section Chief CAD Office Mob:13888061229 Foreign Capital Section, Zhao Yan Mob:15809500735 CAD Office Foreign Capital Section, Liu Bing Mob:15825318002 CAD Office CAD Office of Helan Bao Changzheng Director Mob:13709510181 County CAD Office of Helan Yang Zhonglin Vice Director Mob:13709583339 County
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Unit Name Position Contact Details Agricultural Machinery Promotion Center of Helan Ma Weixin Vice Director Couty CAD Office of Helan Zhang Xuezhong Vice Director Mob:13895008603 County CAD Office of Helan Cheng Kai Vice Director Mob:13995387098 County CAD Office of Helan Xing Guolin Secretary Mob:13639597200 County CAD Office of Helan Xing Jianguo Accountant Mob:13995192873 County CAD Office of Helan Wang Xinghai Teller Mob:13909517468 County CAD Office of Helan Bai Weiguo Technician Mob:13909585331 County CAD Office of Helan Xie Yingchun Technician Mob:13099513457 County CAD Office of Helan Zhang Guo Technician Mob:13709572387 County CAD Office of Helan Lu Rui Technician County Water Management Wang Zhiyuan Deputy Director General Bureau of Qingtongxia City Agricultural Machinery Yan Tianliang Secretary Bureau of Qingtongxia City Forestry Bureau of Wu Tong Secretary Qingtongxia City Agricultural Technology Promotion Center of Jiang Wanbing Director Qingtongxia City Rural Economy Station of Ni Zhushan Deputy Station Master Qingtongxia City Finance Bureau of Cao Jinbao Qingtongxia Farming-pastoral Center of Zhangxu Technician Qingtongxia City Yesheng Town Wang Zuoyi Deputy Chief CAD Office of Qingtongxia Yuan Shaojun Engineer City CAD Office of Qingtongxia He Yongping Engineer City CAD Office of Qingtongxia Chen Xiaoqing Engineer City CAD Office of Qingtongxia Li Zirong Engineer City TV Station Wang Lifeng Journalist
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Appendix 25 Comments Matrix Section Comment Consultant’s Response/Action Ch 2.1, Land Analysis . While the crop analysis is good, land Much of this information is App 2 & analysis seems rather limited. I had difficulty in finding already in Supplementary 3, SA A the overall area, distribution and causes of low- and Appendix A, such as the yield medium- yield crop land in PRC and in project differences of different types of provinces for example. How much yield difference if land. A new section, 3.1, has we are comparing these lands with high-yield land? been added to supplement the How many percent of them do not have adequate land analysis. These aspects irrigation and drainage systems? are also clarified in Appendix 2. We are not looking for a thesis, but a few pages' The prevalence of inadequate discussion would be necessary. irrigation and drainage systems is not clearly quantified but this is a major cause of low- and medium-yielding land. Ch 2.1, Irrigation and Drainage System Analysis . We need The government’s “Report on App 2 & a review on the irrigation and drainage system in the Irrigation and Drainage 3, SA A PRC and in the project provinces - the quantity, the Development in China” provides quality, the maintenance, the property right and user a sound evaluation of the issues right, the accountability, the policy and institutions, the outlined. This has been problems, and the possible solutions. This is different reviewed and inserted in from water resources analysis. Supplementary Appendix A and We are not looking for a thesis, but a few pages' a summary included in Appendix discussion would be necessary. 2 and the main text, as appropriate. Ch 2.1, Productivity Analysis . Please demonstrate and Separation of the impacts of App 2 & estimate the productivity changes with and without the irrigation, drainage, and 3, SA A project (irrigation, drainage and other agricultural agricultural measures is not measures). This can be drawn from the data in possible. economic analysis. In the Supplementary Appendix A Comparison with the statement page 38, it is stated that "the productivity of irrigated in SA A on p38 is not valid since land averages about twice that rain-fed land" – is this CAD does not attempt to shift consistent with the economic analysis data? from rainfed to irrigated but from We are not looking for a thesis, but a few pages' poorly irrigated to better discussion would be necessary. irrigated. Some additional clarifying text has been added. This issue will be addressed when the revised data are received. Ch2.2 & While the problems are well discussed, we need to New section added to provide Ch 2.4 state what are the challenges and problems-to-solve justification. for CAD programs that justify ADB's assistance to a (time and area) slice of it? One example is that it is too slow (see my paper, completing one round in China at current investment rate takes 95 years). Another example is that beneficiary's share tends to be high while development loans are not sufficiently utilized (see my paper). Ch 2.2? Page 14: last para indicates a figure for water saving Yes it is the theoretical as of 123.4 million m 3. Is this saving a theoretical saving compared with the current as compared to normal agricultural development? Or agricultural practice. Details of is the water saving actual as compared to the actual the estimation of water savings water usage in the project areas? Also, is this saving are contained in Supplementary per year? Water usage and saving is also to be Appendix A, Section 4.2. This improved in the environmental assessment report. has been clarified in terms of the questions raised. Additional details are provided in Appendix 2 and are cross referenced in 266
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Chapter 2.2. The water saving reported here is the same as in the EIA report. Ch 2. 4 The problem tree has to correspond to the DMF. The problem tree has been App 3 There are four levels of boxes: impact (the boxes on simplified and restructured the top); outcome (the box with bold letters); Output based on the comments. (the boxes next to the bold box); and the Input (the boxes below). Several problems: for example, productivity appears at the outcome part and the impact part; management appears in the outcome part and the impact part. The three boxes at the output level relate to the three components of the project, which is good, except the last one can be changed into the capacity of project management. My suggestion is to • Simplify the problem tree to match the DMF (stay with the ones that project is going to address, and perhaps a few others that the project cannot directly tackle and should go into "assurance") , and • Give the reader an idea about the project and CAD. Ch 2.3.3 Social Policies a nd Plans on p 20 , in addition to Commitments from CEDAW (Hung) generic gender equality commitments, it would be included. useful and relevant to state what PRC’s gender equality commitments oblige with respect to gender and agriculture and/or rural women in particular. Similarly, what do national agriculture sector policies contain with respect to gender and rural women. For example, CEDAW contains a specific provision for rural women and all PRC CEDAW reports and subsequent CEDAW Committee Conclusions would have addressed the progress and adequacy of government efforts to implement this provision. Ch 2.5 pp 23 -24. It is important to also mention institutional Institutional commitments (Hung) commitments to gender mainstreaming and included (NWCWC and ACWF). safeguards vis-à-vis ADB’s PRC Country Strategy and Policy Dialogue. App 4 Development Coordination: Writing is good. Let's The draft main report and share our draft final report with them for their appendixes has been circulated comments? to development partners. App 5 Lessons Learnt: Shall we have one paragraph or two This has been included. to summarize how these lessons learnt been incorporated in the project design? Ch 3.1 Para 2 p 26 – please specifically articulate gender as This has been included as (Hung) another issue which ‘still needs to be addressed for indicated each of the projects, or at least in detail for representative sample’, in addition to the others. Gender needs to be stated, rather than presumed as a subset of ‘social’ throughout the report. Ch 3. 2, Impact: Suggest changing into "Increased rural Agreed and changed App 1 incomes and enhanced food security". Ch 3. 2 Outcome: Suggest changing into " Increased Agreed and changed App 1 agricultural productivity in the project area" Ch 3.? , Outputs: Suggest changing into "1. Improved These suggestions have been App 1, Irrigation and Drainage Infrastructure (no need to add incorporated throughout the text App 7 O&M, which is part of infrastructure improvement) 2. Improved agricultural technologies and practices; and 3. Improved project management". Ch 3.2, Sections 3.2 & 3.3 (Impact, Outcome and Outputs) The gender dimension has been 3.3 & and 3.4.4 (Project Components) are currently silent included in 3.2, 3.3., 3.3.1, 3.3.2, 3.4.4, on gender and hence do not reflect a gender 3.3.3 and 3.4.4; gender 267
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App 1 mainstreaming app roach. Gender Equality and dimensions are reflected in the (Hung) Women’s Empowerment needs to be addressed DMF across project components rather than treated as a stand-alone special feature. Therefore please include relevant gender dimensions in the description of these project components and reflect them in the corresponding Design and Monitoring Framework (DMF). E.g. targets for women’s participation in WUAs, FAs and farmer training, or inclusion of gender awareness and the project Gender Action Plan (GAP) in capacity development for project management staff. Please also note that one of the threshold criteria for an EGM categorization is for gender-specific design features and/or performance indicators/targets for at least 50% of project outputs, reflected in the DMF (App 1) (the DMF is currently also silent on gender) . Ch 3. 3’ , Indicators : App 1, • Please check all the indicators are time-bound (for All indicators are time-bound App 7 example, soil improvement implemented on 84,060 although the available data does ha by when?) not permit the level of • Refine the gender indicator ("Rural women disaggregation that would be economically empowered in 6 villages" – what does preferred. it mean?) Gender performance indicators • Per capita income increase, grain output increase, and targets have been refined grain yield improvement, cropping intensity increase, and included in the DMF; water use efficiency improvement are important gender dimensions have been indicators – please include in the appendix or mainstreamed into the detailed somewhere appropriate to explain how these were description of project calculated for the project area. components in Appendix 7 Water Savings . Is it possible to estimate the total Data sources for per capita water savings from the project (which will require income increases, grain yield looking into "increased" water demand from newly increases, etc., are clarified in irrigated area and "reduced" water demand as a result Appendix 14 Financial and of efficiency improvement) using both irrigation Economic Analysis and the SA analysis and the water balance analysis in the under benefit estimates environmental part? In Chapter 2.2.3, it states "123.4 For water savings: see earlier million m3 of water can be saveda" - This needs more responses on revisions. elaboration. Please see the comments in the environmental section as well. App 6 & Table A6 and A7 are good. Three problems with A7, 7 • Can we include county level breakdown in the This will be included in the final supplementary appendix? We need a list of activities report when the data are are by county, perhaps not complete, somewhere in the confirmed to have an acceptable document. breakdown to the county level. Previous data sets were not sufficiently detailed. Headings have been checked • A lot of headings of A7 are unclear – there are two and clarified. 1.2 for example. What is incremental area as an activity? Table A7 has been reformatted • A7 needs a reformat with proper indent. Units have been checked and • Some units do not make sense please recheck. For corrected as required. Units of example, what is "4 units of solar power pilots?" solar power pilots refer to the number of pilots as proposed by each province. Ch 3.5 Para on Gender Equality and Women’s Clarification on women’s role in (Hung) Empowerment on p 34 – this is rather shallow and agriculture included should not be regarded as a ‘special feature’ of the project but core to the effective delivery of all project 268
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components. Greater emphasis should be placed on gender mainstreaming as an approach (linked to ADB guidelines). The rationale for a gender-responsive or women’s focused approach should not be solely due to out-migration, but rather than women have always played a critical role in agricultural production anyway (our migration just compounds the existing issue). Please also stress the importance of gender-responsive monitoring and evaluation. Ch 3.8.6 Implementation and Fina ncing: The only question These issues were raised in the here is that we need to firm up the exact amount final review workshop. Based on needed (please make an estimate and consult with the the revised project scope and governments) for advance contracting and retroactive costs, provided October 2010, financing (section 3.8.6). Do not just use "up to 20%". clarification of advance contracting and retroactive financing needs will be addressed at fact-finding. Ch 3.5, Clean Energy Demonstration: This section and The clean energy demonstration App 25 appendices need careful work and major revision. (solar energy pilot) has been First, there are quite a number of inconsistencies revised following a field trip between the main report (page 34) and the CDTA undertaken at the time of the appendix. For example: review mission. • Four provinces are mentioned in the main report, but • According to the 25 May Table A7 shows 2 (Jilin and Ningxia), and Appendix national proposal there were 25 shows 3 (Jilin, Ningxia and Heilongjiang) 4 provinces proposing solar • The main report talks about the groundwater should pilots (Anhui, Heilongjiang, not be deeper than 30 meter, but Table 25.4 seems Jilin, and Ningxia) but in to suggest all deeper than 30 m. October 2010, this was • It is not clear how big the demonstration area is, how shown as 9 pilots, all in many demonstration sites and how many sets for Ningxia. Table A7 has been each site. updated to reflect this. The • The cost breakdown seems off. Taking Heilongjiang reference to 3 provinces in as an example, $66,370 for the solar panel – how Appendix 25 reflects the many kw are we talking about here given that it only provinces that would be cost $3 - $5 per watt for solar panel in the market??? included in the proposed TA. • What are the technical and economic • Other comments are considerations to suggest all DC pumps? addressed in the revised • Why do we have to pay for the wells and well houses proposal, which will be under the TA – does this mean there will be no wells combined with the Climate or well houses if we do not do solar-pumps? Change Adaptation • The most important thing is that, the only way this Demonstration and GDCF system can benefit the farmers is based on careful into a single TA proposal. water resource and energy analysis of the area; please give details on o Do the proposed areas all have no access to grid electricity? – let's try to replace diesel engines first o Local rainfall situation (too much rainfall makes the system unnecessary and too little rainfall might adversely impact on the groundwater level) o Distance from the surface water (for surface water irrigation) o Depth of the well (for ground water – I am very suspicious of 80-100m well in Heilongjiang) o Land slope Ch 3.5 Climate Change Adaptation Demonstratio n: the The Climate Change Adaptation report does not mention the specific locations of Demonstration has been climate change adaptation, leaving the impression that developed following a field trip we are going to do everything throughout the project. undertaken at the time of the While it is true for some activities, it may not be true for review mission. others (public awareness promotion? Water storage?). 269
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The way this is treated is "too light" – too much like lip services. What I had hoped the team to do is the following: • Identify suitable areas for demonstration (start with more vulnerable area, check local willingness, and assess the possibility) • Assess the possible impact (without project) • Assess the need ( what project can do - how many water storage structures needed, what kind of public awareness promotion needed) • Estimate the additional costs Here is a suggestion : can we combine it with the clean energy demonstration sites to make a few "Clean Energy and Climate Change Adaptation Demonstration Sites"? No need to be many, they are for demonstration purpose. But the team has to do research – this kind of research is exactly what local governments are incapable of – to increase the chance of success of the demonstration sites. Ch 3.8.4, Procurement Plan – One NCB per county: has this An updated procurement plan App 12 been confirmed by the governments? has been prepared based on the latest government information. This will be reviewed once the government FSRs are complete. App 14 Seems unusually short. Perhaps the appendix can Appendix 14 has been included explain the assumptions for these calculations. as a section of SA E, the main Consider combining it into the economic analysis. text of Chapter 4.1 has been moved to the Appendix on Financial and Economic analysis and Chapter 4.1 has been summarized. Ch 3.8.9 Information collected for DB1, DB2 and DB4 should all All data values within the data App 13 have a geographic/unit dimension, such as county, base will be specified with three SA J village, land field, or farmer household. The system dimensions - attribute, location, design may need to clarify or specify in this regard. For and time. The report has been instance, what is the most disaggregate level each revised to clarify this structure. variable/indicator will be collected, what are the levels In the geo-spatial Info the variables/indicators will also be aggregated into, DB1 is a GIS database. All data etc. - such as the distribution of roads, villages, farmland, crops, Some information the system is going to collect also etc. – have a spatial and time has a time dimension. For instance, we need to know dimension. not only where a new tubewell is built but also when. DB2 is the comprehensive Please consider how the system can incorporate the information database in which all time dimension. data values (attributes, must be defined by space and time. DB3 is the project management, database and includes contract, construction contents, income, etc. Again this must include spatial and time dimensions DB4 is the indicator database, in which all data need to have a time and spatial dimension. The list of indicators in the report is that of the core. In the database detailed design stage, the database structure should be considered including the need for spatial and time 270
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dimensions. Levels of aggregation for data collection and reporting are a design issue, but reporting can always be designed at any aggregation level higher than data collection Ch 3.8.9, The information collected may need to correspond to Table 4.1 in SA J and Table App 13 the project components and project objectives better. A13.1 in Appendix 13 have been SA J Specifically, can the system track the investments of restructured to reflect the project the projects in terms of financial amount, physical structure in Appendix 1 (the activity, receiving location/unit, and completion time? DMF). The data needs have The system may need to get more detailed information been reviewed and adjusted as on the farming inputs and outputs, such as water use, necessary. They should be fertilizer use, labor, crop areas and yields by further reviewed during design disaggregate crop types, etc. of the database system. Ch 3.8.9, The channels through which information is collected The proposed monitoring SA J and capacity needed may need to be specified a little system is based on a distributed more. For farmer household information, survey network system, and is design and sampling frame may need to be proposed to be installed in all considered at system design stage. CAD offices. The CAD offices will be responsible for data collection and entry into the database, although depending on local capacity, this may be contracted out. In the system design stage, the data collection procedures and needs will be fully defined as well as the detailed database structure, input formats, analysis procedures, and reporting formats. While reporting formats should be defined as fully as possible the system will be sufficiently documented to allow addition of new formats as required. Ch 4.1 Average incremental production of cash crops is This is per year for all crops. The estimated at 158,200 t – is this per year? Same for wording has been clarified. other crops. Ch 4.2.3, Why use 10% interest rate for the opportunity cost of 10% is selected as the App 14 counterpart funding – any basis? appropriate interest rate for the opportunity cost of counterpart funding as this is widely considered to be the achievable financial rate of return for locally financed agricultural projects in China. Included as a footnote. Ch 4.3, Yields . The issue of yields overestimation is important The issue of yields will be further Ch 5.1, and probably need to be verified by all means. reviewed on the basis of the new App 15, Although it is the difference between without and data that are being produced by SA E with-project that matters in the benefit estimation, the the EA difference estimates rely on correct estimates of the base numbers. Ch 4.3, Crop Choice . The assumption of crop areas will stay The reference is to “cropped App 15, the same is a bit strong. It may need to be analyzed in area” not “crop area”. Increased SA E more detail how the project would affect choice cropping intensity will result in between staple crops and cash crops and how this an increase in the area of crops factors in benefit estimation. but not in the cropped area. 271
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There will also be a change in the crop mix, which is included in the analysis. These terms are clarified in footnotes in SA E and the financial and economic analysis appendix. Ch 4.3, O&M . Please explain how the O&M costs are 2.5% O&M costs are the norm App 15, estimated and why 2.5% of the civil work costs as used by CAD for improved SA E O&M costs are high. irrigation. This is added to the text Sensitivity tests are also conducted on this value to determine the impact of higher costs. Environmental Assessment (Ch4.4, App 16, SA F) SA F The report is referred to as an environmental impact Revised to IEE. assessment report, while in fact only an initial environmental examination is required. SA F For ADBs record, please provide the draft Chinese The Consultant has advised the report that has been prepared already. The final PMO and EIA institute of the Chinese report will have to be disclosed on ADBs need for closure of the domestic website. EIA report, and will follow up. SA F Page 1, Section A: confirm that all activities have been One sentence is added in assessed in sufficient detail and that no environmental Section A and in the conclusion assessment review framework (EARF) is necessary. If and recommendation section. so, include this confirmation in the conclusion and recommendation section. SA F Page 10, section E1: it would be useful to summarize A new paragraph is added. in one brief paragraph the lessons learned, experiences, and the environmental issues of concern (as already included in Appendix 3). SA F Page 11, section E3a. While water efficiency and The actual savings are now water saving is presented as one of the main benefits, added. there is no calculation on the actual water savings. This should be included. SA F Page 12, section E3d: the linkage with reduced The pumping stations are part of salinization/water logging and pumping stations seems the drainage system that takes not correct. In fact, pumping of groundwater and water away from the improved groundwater drainage will help reduce water water-logged area, so the logging problems. But it seems that the pumping pumping stations help reduce stations will only provide more water. Please clarify water-logging and salinization. and update. SA F General on Impacts and mitigation measures The comment is fair. However, sectionE4: please try to include some of the local site given that there are many specific issues and highlights that are already included interventions in many locations, the local EMPs. The current sections are very generic. it is very difficult to be site-specific. We believe that mitigation measures by category of interventions would be more suitable. SA F Similar to the point above on quantification of water Figures on water demand and savings, the water balance does calculations do not balance by province can be clarify clearly in which areas the water demand will found in the provincial EMPs. increase. Is this 'the project water demand' the There are no areas where there incremental water demand for the provinces. Are there is an existing concern on water areas with an existing concern on water shortage? shortage, as areas with such concern were screened out at the first round of selection. Please see line 5, page 11: The 2nd criteria for selection project counties is: 272
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ii) The availability of water resources should be assured including the existence of a basic water conservancy framework that reflects the situation with respect to irrigation, drainage, and flood control. SA F Similar, in section E4b, 2 nd para it is mentioned that Unfortunately, no such groundwater will not be used in overdraft areas. At this information is made available to stage of project preparation we need to know already us. Hopefully, the provincial what areas are of concern, and which areas are to be FSRs will be able to provide disqualified. The World Bank project disqualified some such information. We would be areas because of dropping groundwater tables. How happy to update the report by about for this project? including the list of the project areas that are screened out. SA F Table 2 on water demand: it is not clear where the The project proposals that are water demand from the project fits in. Please improve provided to us contain only the presentation and justification for the project sites. information on a provincial basis. Since there is already a safeguard for screening out water-short counties, the table provides provincial safeguard that the water supply meets the various demands (agricultural, industrial and residential). SA F Page 16, section E4d: if true, please indicate that We agree with the comment on training will be provided to the farmers for adequate NPS pollution. An estimate is application of agro-chemicals. Non-points pollution has made of the reduced use of been highlighted earlier this year as one the largest chemical fertilizers to be 2,424.8 pollution source in PRC. As such, can we demonstrate t/year for the project as a whole. that the project will result in less agrochemical usage We have now included this then in other areas in PRC? (i.e. through component estimate in the project benefits, 2). see page 12 (3c). SA F Page 16, section E4e: It is not clear if the inspection of This has been discussed with the barrages and reservoirs is already agreed upon, or the EA and IAs during the review just proposed. Is this a requirement also in the meeting and has been domestic EIA report? Please clarify if this safety endorsed. The “Conclusions and inspection is considered necessary, and if so, please Recommendation Section” is discuss with the EA and IAs to ensure their revised. endorsement. This should also be reflected in the 'Conclusions and Recommendation Section. SA F Page 17, section F: again, it would be useful to One sentence is added. elaborate a bit on the water usage for the project, as compared to the 'without project scenario'. It is assumed that many areas already use water, and hopefully water can be saved using more efficient irrigation techniques. SA F Page 18, section G: please indicate the website where Done. the domestic EIA report is disclosed. Add also that the final domestic EIA and English IEE reports will be disclosed on the ADB website SA F Page 18, Section H: below is a more elaborate section Done. of a grievance mechanism that is being used for other projects. Please update and include in the general and provincial EMPs. A reference to these Appendixes can be made in Section H. SA F Page 20, section J: the statement on a time-bound Revised. action plan for faulty dams and reservoirs is not very clear. Please clarify. 273
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SA F EMPs: mitigation measures for waste water during the Revised. In any event, construction phase are not clear. These refer to wastewater during construction mitigation measures again. is not expected to be a significant issue, as there are “concentrated” project activities. SA F EMPs: Please include the water quantity related This is because overdraft conditions and mitigation measures in the EMPs. counties had been screened out While mentioned in the text, it seems there is nothing by the provincial PMOs, during about overdraft of groundwater, the selection of the project selection process. counties, depth of wells, etc. SA F It is understood that the numbers are changing Done. regularly during project preparation and that it is difficult to keep track of these. A final check will need to ensure that the numbers are consistent with the final project document. SA F, Is there a list of proposed activities per County? This This will be developed once Table would be useful to filter the critical issues in specific adequate county-level data are Ch 3.3, counties (as suggested during the interim review available (see response above). App7 mission). SA F Example of Grievance Redress Mechanism (adjust Done. and include in the EMPs) See ADB comments Social, Ethnic Minority, Gender and Resettlement Analysis Main The social aspects of the project have not been Report integrated into the overall report. The RP are reflecting to a certain extent the project activities, whereas the EMDP are not linked to project activities or components. FA and WUA are seen as part of the FAs and WUAs have been Rationale of the project (Subchapter 2.1 or Section included in the EMDP and 2.2.3) but are not part of EMDP or the Poverty and Poverty and Social Strategy. Social Strategy. Ch 2.3.3 Section 2.3.3 on Social Policies and Plans refers to This has been adjusted, policies on poverty and gender, but the paragraph on particularly taking into account ethnic minorities rests vague and provides no linkage the Western Region or references to policies or regulations. Development Strategy, which is the major policy affecting ethnic minorities in the project area. Ch 3.4.2 Point (ix) of Section 3.4.2 refers to "clear and sound [..] According to the consultant’s & Ch social [..] benefits" as selection criteria for project understanding, the poor and 4.5.1 cities. It should be made clear somewhere which ethnic minorities etc. are an criteria on social benefits were applied. Targeting of important part of the targeted poor and vulnerable populations could have been one, population. Based on this, the if this was not the case, please explain why. According project provinces were selected to 4.5.1, 19 out of 69 project counties are poverty as relatively poor areas (the counties. Please explain the impact on poverty overall selection of project provinces in the project area and in the poverty counties. was the first step), and 2 western province with ethnic minorities (Yunnan and Ningxia) were also selected. Considering that criterion (ix) is only one of the nine criteria, and is influenced by the over-riding requirements of criteria (i) to (iii), there is a limit to the number of poverty counties in the project area. Ch 4.5.1 Section 4.5.1 and the SPRSS specify that a The participation strategy has App participation strategy has been designed. Please been designed and integrated SPRSS include it as a separate appendix. into Supplementary Appendix G Poverty Reduction and Social 274
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Strategy, but has not been included as a separate appendix. This could be extracted if required but can be readily located for other documents Ch 4.5, The sections in the main report on resettlement, The sections have been revised 4.6, 4.7 ethnic minorities and poverty impact should be revised once the comments on the appendices (see below) have been addressed. Ch 5.2 The specific assurances should be prepared after the The revised sections refer to the social safeguard planning documents have been Safeguard Policy Statement revised an agreed upon. Please refer to Safeguard (2009) Policy Statement (2009), not the outdated policies. App 1 The DMF states an impact different from that in the This has been corrected main text, Subchapter 3.2. Especially regarding social aspects, this difference is major, as the main text refers to "increased farmer incomes". In the outcome statement, the DMF also refers to increased output from irrigated agriculture, while the main text refers to Gender indicators have been increased agricultural productivity. Some social or added to the output statements socio-economic indicators should be added to the in the DMF. output statements in the DMF. App 1 As this project is aiming for Category EGM, several 50% of the outputs are gender gender indicators and targets should be added to more related plus several new than 50% of the outputs. The implementation of the performance indicators and Gender Action Plan and the social safeguard planning targets documents are already included as activities. The implementation linkage and their integration into the project could be strengthened by referring to them and the proposed measures in the relevant sections on the components in the main report. App 17 Please use the revised SPRSS template available at The SPRSS has been revised in http://www.adb.org/Documents/Others/Social-Analysis accordance with the new -Toolkit/SPRSS-template.doc. template App 17 It is not clear whether poverty was used as a criterion The focus of the project is on (i) for selecting project sites. Only 25% of counties rehabilitation and upgrading selected are national or provincial poverty counties. of irrigation and drainage This should be explained. Within these counties, it systems, and (ii) improve- doesn't appear poverty villages have been targeted. ments in irrigated agriculture. This may be due to the focus on rehabilitating older The irrigation and drainage irrigation systems, please explain. systems are not necessarily located in the poorest regions of a province or county. In fact, irrigation and drainage systems are often located in the plain and better off regions, this becomes most obvious in Ningxia AR. Therefore it is suggested to define poverty reduction in this project as a secondary objective. Nevertheless, the project is indirectly targeting the poorer regions within the project counties. This can be seen from the poor state of
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repair of the irrigation systems as well as from the lower income levels in the project areas. App 17, It is noted that a Gender Action Plan (GAP) has been The GAP has been reorganized App 18 prepared, so this will be categorized as "effective according to outputs, targets, gender mainstreaming". The GAP (Appendix 18) responsibilities and time frame. should be organized in terms of project outputs, and Gender indicators have been gender indicators should be reflected in the DMF. reflected in the DMF App 17 Regarding indigenous peoples requirements, it is To cover all project counties with mentioned that 8 EMDPs have already been prepared. ethnic minorities, besides the 8 It is unclear whether EMDPs will be required for other draft EMDPs already prepared, counties. a further 10 EMDPs are required. The EMF and 2 detailed EMDPs have been finalized and these can be used as templates for subsequent EMDPs. SA G There was to be poverty, social and gender analysis. Poverty, social and gender This appendix is not sufficient. analysis has been included in SA G (Poverty and Social Strategy) SA G This appendix is surprisingly short and does not The revised SA G has been contain sufficient information. Table 2.1 is not even elaborated and is substantially updated for the number of project counties. longer. Table 2.1 has been updated. SA G For Table 2.1, please try to check how many CAD An additional table (Table 2.3) is counties are national and provincial key counties for included in SA G to clarify this poverty reduction (A) and how many of them are point selected in the project (B), then calculate the ratio. Poverty targeting has to comply with the first eligibility criteria – being CAD county – this is related to 2nd point on App 17 above. SA G In part 1, very little is said about details of and the Information on detailed measures that are part of the government policies. In measures of government footnote 1, something could be said about the different policies have been added poverty standards – 1.25USD, 2USD – and how they relate to the PRC policies. SA G Among other possible improvements, part 2 should In part 2 the relation between provide clear poverty, social and gender analysis. It poverty, social and gender should explain poverty levels and other social issues analysis have been explained general for all counties, and/or common for counties in and general and specific issues a province or region, and poverty, gender and social have been distinguished. issues specific for certain project areas. SA G Part 3 should at least provide a clearer assessment of Part 3 includes a detailed the social and poverty impact of the project – this was analysis of the organizational attempted to do – and explain specific measures and situation in the project areas and features of the project, their impact on social also of local practices regarding dimensions and poverty, and what inputs are needed consultation and participation to achieve them, in particular expertise, consulting practices on the basis of the services etc. This needs to be discussed with the other consultant’s field visits. Social, team members to ensure financing. The assessment gender and poverty of positive measures in the project should be provided consultants are included in as list or table in form of a Social Action Plan. the CDTA. App 20 Refer only to the Safeguard Policy Statement (SPS- References to the previous 2009), particularly safeguard requirement 2, not the policy or OMs has been deleted previous policy or OMs. Use the term "resettlement in 4.6, 5.2 and A20 etc. framework" throughout. App 20 Check the document for translation errors; some terms Documents have been checked 276
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are not so appropriate. and revised. App 20 The principles are OK but consider the new list Updated to reflect the new principles in the SPS. principles. App 20 Please follow the outline for a RF as set out in SPS Updated as suggested. Appendix 4. Also, Section A20.3 is quite detailed, so consider putting details as an annex. App 20 In Section A20.5, the compensation and rehabilitation The suggestions have been options should be presented. Not all villages will be incorporated into the appendix, able to offer replacement land. Also, standards vary by including the general entitlement jurisdiction so the RF should only mention the general policy matrix (Table A19.2).. policy options rather than specific standards or rates. Please include a general entitlement policy matrix. App 20 The institutional arrangements should include the roles These have been included in of the township government and the village Section A19.9. communities, as they are key for land compensation. App 20 Include a section on the "Procedural Arrangements for This has been done and is part Subproject RP Preparation". Subproject RPs can be of Section A19.9 submitted to ADB approval at any time, rather than annually. There is no longer any distinction between a short and full RP; revise the RF accordingly (see SPS). App 20 External monitoring reports are to be submitted to ADB Included in Section A19.11.2 semi-annually in accordance with the new SPS. App 20 Appendix 21 (table) should be included as an annex to The table is now included as the RF. Annex A19.1 of Appendix 19. Reset tlement Plans and Resettlement F ramework RF There are some major concerns regarding the RF, These issues are addressed in including: the revised RF (i) the lack of clarity on entitlements and entitlement standards, as replacement land may not be available everywhere, and (ii) the alignment with the SPS, in particular on the principles, should be clearer. RP The RPs need revisions at least regarding: The RPs have been revised as (i) details of the physical components to judge their suggested resettlement impact, including details of the land acquisition for larger project components like canals; (ii) impact on livelihoods of people using the land and Rights of Way required, and (iii) assurance that compensation rates are consistent, fair, and funded. Also, translation and numbers need to be checked for Translation and numbers have appropriateness and consistency, and the two RPs been checked, and the two prepared should be aligned so they can be used as sample RPs have been aligned templates. SA H (I) This was done as a sample RP and will need to be As they are government updated and resubmitted to ADB for concurrence once documents it is assumed the the detailed design for the subproject is completed. government will be responsible for revisions required after TA completion. SA H (I) Who is the author? I presume the Linquan County Linquan County PMO is the PMO. Please specify on the cover. Also, include an author as specified on the cover. endorsement letter, a one-page executive summary An endorsement letter and a and a subproject area map. 1-page executive summary have been added before the contents. SA H (I) Check the RP for translation errors; some terms are Checked and corrected not so appropriate. SA H (I) In Section 1, provide more details on the proposed Additional information has been physical components are their potential land provided to the extent possible.
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acquisition and resettlement (LAR) impacts. Show a The items in Table 1.2 have diagram, cross sections or give dimensions of canals, been clarified. roads or pumping stations so the reader can understand the impacts on land requirements, both permanent and temporary. Table 1.2 is not clear – what is meant by "before measures" and "after measures". SA H (I) Define the meaning of permanent land occupation, as The meaning of permanent land compared to permanent land acquisition. This has occupation has been defined. implications later for compensation standards. The collective land which will be affected by this project will not be expropriated, but will only be occupied permanently. SA H (I) In Section 2, the extent and degree of land impacts The project impacts are, in (permanent and temporary) should be fully explained. general, minor and do not Later in the RP it becomes clear that people are require a detailed analysis farming within existing rights-of-way, so the treatment of such impacts must be carefully addressed. SA H (I) In other projects, it was clearly established that canals The canals and ditches for this wider than 2 meters would require land acquisition by project are much wider than 2 m the relevant water resources bureau, and the canals but the land for agricultural water and ditches for this project are much bigger. Although facilities has been reserved, so ROWs were planned/reserved in the villages, it is there is no compensation for unclear whether compensation was ever paid for the permanent land occupation. land. If not, it should be paid under this project. SA H (I) Check the impact numbers carefully. Some numbers in These have been checked and the text don't match the numbers in the tables. Also, corrected as required. some impacts are not addressed later in the RP (e.g., entitlements, rehabilitation measures and budget). All impacts must be addressed. It would also be helpful to refer to the proposed household income benefits from the project, to put these losses into perspective. SA H (I) Sections 3.2.2 and 3.2.3 have repetition, and some Section 3.2 has been revised. numbers are incorrect. SA H (I) Section 3.3 on gender impacts is interesting, but the The project impacts are, in RP contains no measures to address these impacts. general, minor and do not Perhaps women should be targeted for project require a detailed analysis implementation. Also, any land improvements and land adjustment should consider provision of land to households with "married-in wives". SA H (I) Table 3.1 is a good table but some additional rows Additional rows have be should be added for: % males, cultivated land per included for % males, cultivated capita, GDP per capita and total land area. Also, land/capita, GDP/capita and explain how the numbers for labor force were derived. total land area. Industrial labor Give the data source(s) for such tables. force refers to the amount of labor in industry. Agricultural labor force generally refers to the number of who can do agricultural work. Tertiary labor force refers to the amount of labor in the tertiary industry. These data come from the Agricultural Economics Report by the affected township. SA H (I) Table 4.2 should include other items – participation in Participation in subproject subproject design, labor for construction, operation design, labor for construction, and maintenance, etc. operation and maintenance, etc. have been added in Table 4.2 SA H (I) Fix the formatting of Table 5. Why are more items Impacts in each component are included in the RP for Zhaoyang District (Yunnan). different. The RF defines all 278
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This should be a generic for all RPs. possibilities to the extent possible, but individual RPs are based on the actual situation. SA H (I) The relevant ADB is the SPS – SR-2. Delete References to the previous references to the previous policy or OMs. Reference to policy or OMs have been the Handbook is OK, if needed. deleted. SA H (I) Section 5.2 should also follow a consistent format for Impacts in each component are all RPs (compare this version with Zhaoyang). The different. The RF defines all principles in the RF and RP should be generic and possibilities to the extent consistent with the new SPS. possible, but individual RPs are based on the actual situation. SA H (I) The new land compensation standards are very good, The land compensation cost of but this could increase the cost of some subprojects. subproject is included in the This should be considered in the Project costs, Project costs. especially if local governments are expected to finance such cost. SA H (I) In Section 5.2.1, the compensation for PTO is Compensation has always been somewhat unclear. Initially, it was explained that the paid by the water resources ROWs had already been reserved, but it is unclear bureau. whether compensation had ever been paid by the water resources bureau. The land for the irrigation pumping station will be compensation but the compensation rate is reduced by 50%. There is no justification for this; please provide the relevant regulations if one exists. Also, this is not fair to affected households; if this is a public good, the village should contribute the remaining 50% to the affected households, or provide replacement land. Please make the policy consistent, fair and in accordance with ADB policy. SA H (I) In Section 5.2.2, explain whether TLO of collective TLO of collective lands requires lands require the approval of the land and resources the approval of the land and bureau. Also, appears some TLO areas are resources bureau and the policy compensation while others are not. Specify the for TLO has been revised a bit. duration of temporary impacts (number of crop seasons); the project schedule is shown as 5 years. Again, please make the policy consistent, fair and in accordance with ADB policy. SA H (I) In Section 5.2.3, include a table showing the The compensation rates for compensation rates for infrastructure and ground infrastructure and ground attachments. attachments have been added (Table 5.4, p 17). SA H (I) The entitlement matrix (Section 6, Table 6.1) should The entitlement matrix (Section be expanded to be comprehensive (add graves, other 6, Table 6.1) has be expanded facilities, vulnerable households, etc.) and the impact to be comprehensive (add degree should be consistent with tables in Section 2. graves, other facilities, Explain whether beneficiaries are expected to vulnerable households, etc.); contribute funding and labor, and why affected The affected persons will be persons will be exempted. Why are wages provided for exempted because the project construction labor? Once finalized, this entitlement would benefit for their own matrix should serve as a model for subsequent RPs to agricultural production. follow. SA H (I) In Section 7.2, the numbers do not match the costs in The numbers have been Section 11. Please make these consistent. Also, revised. confirm than land adjustment is a feasible option; if so, this should be included in the entitlement matrix. SA H (I) In Section 7.3, the word "permanent" should be It has been changed to changed to "temporary". Clarify whether all these "temporary" and all lands can be lands can be reused by APs after restoration. reused by APs after restoration. SA H (I) Include sub-sections for "Measures for Women", "Measures for Women", 279
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"Measures for Vulnerable Groups", and Livelihood "Measures for Vulnerable Training for APs". Groups", and Livelihood Training for APs". have been added in sections 7.5 and 7.6. SA H (I) In Table 8.1, clarify that these staff are not only In Table 8.1, the staff are not handling resettlement issues. Do they require only handling resettlement resettlement training and other "capacity building" for issues. The PMOs at different such minor levels of impacts? levels and the affected town and village communities will be responsible for resettlement. they require resettlement training and other "capacity building" for such minor levels of impacts SA H (I) For the grievance mechanism (Section 9), explain the ADB's accountability mechanism difference between steps 3 and 4. Also, add a footnote has been added in the footnote. to explain ADB's Accountability Mechanism. SA H (I) In Section 10, the implementation schedule should The resettlement refer to each subproject, and specific activities that implementation schedule has cause resettlement impacts. Also, the start time of been updated (Section 10, Table December 2010 sounds optimistic. When will detailed 10.1). design be done? Mention when the RP will be updated and resubmitted to ADB for concurrence. SA H (I) In Section 11 (and Table 11.1), make sure the costs The source of funds and fund are consistent with the impacts and compensation flows have been added (Section rates agreed earlier in the RP. Clarify the source of 11.1 in p. 29). funds and fund flows. SA H (I) In Section 12, evaluation indicators should include The external monitor indicators quality of implementation and level of AP satisfaction. have been added in Section The external monitor could be engaged by the 12.2. provincial level PMOs, so they could be responsible for a number of subprojects. This is more cost effective. Specify the external monitoring indicators in Section 12.2. The reporting schedule should be semi-annual and consistent with the subproject implementation schedule. SA H (I I) Many of the comments on the Linquan RP [SA H (I)] (i) Zhaoyang District PMO is also apply to the Zhaoyang RP [SA H (II)]. the author as specified on the cover (ii) An endorsement letter and a 1-page executive summary have been added before the contents. (iii) The meaning of permanent land occupation has been defined. The collective land which will be affected by this project will not be expropriated, but will only be occupied permanently. (iv) Some additional rows have been added for % males, cultivated land/capita, GDP/ capita and total land area. (v) Industrial labor force refers to the amount of labor in industry, agricultural labor force generally refers to the number of who can do agricultural work, tertiary 280
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labor force refers to the amount of labor in the tertiary industry. These data come from the Agricultural Economics Report by the affected township (vi) Participation in subproject design, labor for construction, operation and maintenance, etc. have been added in table 4.2 (vii) References to the previous policy or OMs have been deleted (viii) TLO of collective lands requires the approval of the land and resources bureau. And the policy for TLO has been revised a bit. (ix) A table showing the compensation rates for infrastructure and ground attachments. (x) The entitlement matrix (Section 6, Table 6.1) has been expanded to be comprehensive (add graves, other facilities, vulnerable households, etc.) (xi) "Measures for Women", "Measures for Vulnerable Groups", and Livelihood Training for APs" have been added. (xii) In Table 8.1, these staff are not only handling resettlement issues. The PMOs at different levels and the affected town and village community will be responsible for resettlement. they require resettlement training and other "capacity building" for such minor levels of impacts (xiii) ADB's accountability Mechanism has been added in the footnote. (xiv) The source of funds and fund flows have been added. (xv) The external monitor could be engaged by the provincial level PMOs. SA H (I I) This project area is near the county seat, so affected Agreed, affected households are households are not poor. not poor. Section 3.2 has given the socio-economic background of the project area. SA H (I I) Section 1.3 (Table 1.2) indicates some reductions in Taking these measures can impacts, without referring to the total impact. reduce the total area of 114.5
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mu PLO, and parts of TLO will be avoided. SA H (I I) Figure 2.1 is helpful, but would be better to show some It is a drawing used to convey dimensions. the basic meaning of land occupation which is a little hard to understand in text alone. SA H (I I) In Section 2.3, 4% of APs are ethnic minorities but The special measures for ethnic there are no special measures proposed in Section minorities in this project have 7.4; this is required by ADB SPS – SR-3. been add in section 7.4 and the details are: (i) since minorities in general farm in a single crop structure, and lack cultivation methods and technologies, the PMO will put emphasis on training minority populations, including crop cultivation techniques and using of biogas technology: (ii) in order to better enable minorities to get benefits in agricultural development projects, strengthened monitoring is also needed, including frequent consultation with the minority in the implementation of the project organizing training activities in an acceptable methods by the number of minorities to participate; and (iii) giving minority populations priority in project employment (Section 7.4, page 22). SA H (I I) In Section 3, the RP states there has been no land Though there is no land adjustment since 1984, yet land adjustment (section adjustment inside villages for 5.2.1) is the main solution for loss of land. Explain why years because "marriage, death, this is feasible. newborn children", but when some villagers’ land are occupied, the village group meeting will be convened and agreement on land adjustment will be reached by the villagers, In our previous survey and consultation with the villagers, we found it that they agreed to adjust the land within villages because the project occupied land (Section 7.2, page 21). SA H (I I) In Section 5.1.2, include all relevant local regulations. Convocation Rules ” Forestry Include Table 5.2 from the Linquan RP. Provide Law of the People's Republic of compensation standards in tables. China” in Yunnan Province (approved by 31th conference of 9th People's Congress Standing Committee of Yunnan Province Nov29,2002) and the pilot scheme of basic old-age security for landless farmers in Yunnan Province (effective as of 7 JAN 1st, 2009) have been added. Compensation standards
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have been added in 5.2.1 SA H (I I) (Yunnan) In Section 7.2, it should be clarified why no It was clarified that usually in compensation is paid when less than 50m 2 is affected. case of an area due to PLO is How can this provision be implemented for linear less than 50 m 2 no impacts? compensation or land adjustment will be implemented, according to the GF [2007] Document No.4, in case of “farm irrigation facility construction, road construction, forestation, land management related to agricultural development projects and other utilities villages need”, farmers have to raise money and labor. The APs will not have to raise money or labor as compensation. SA H (I I) In Section 11 (and Table 11.1), make sure the costs The resettlement fund will be are consistent with the impacts and compensation from the provincial and rates agreed earlier in the RP. Clarify the source of municipal fund for this project funds and fund flows. and fund flows have been added. EMDPs EMDF & They are too generic and do not show appreciation for Specific information has been EMDPs the cultural differences and local specificities. A added. All counties are quantitative and qualitative analysis of the ethnic screened and detailed minority situation broken down to county level was information about the Ethnic required, but not included. A more thorough analysis of Minorities shown in EMDF. the social situation in the different counties is needed. Issues such as the community Based on this analysis, the EMPD's need to be participation are strengthened in strengthened by including, among others, (i) clear the revised EMDF. linkages to the project activities, (ii) designed measures and indicators, (iii) linkages to existing EMDPs of Qingtongxia and national, provincial or other programs and policies, (iv) Eryuan are rewritten according clear monitoring arrangements, and (v) funding to the comments and based on a suggestions, be it through project funds or other questionnaire survey. A detailed sources. EMDP's that passed ADB's review quantitative analysis is added. procedures can be found at http://www.adb.org/ IndigenousPeoples/plans.asp for scrutiny about how to prepare them. This opening page refers to several plans under preparation, some of them in PRC, such as http://www.adb.org/Documents/IndigenousPeoples/ PRC/42012/42012-PRC-IPDP.pdf or http://www.adb. org/Documents/IndigenousPeoples/PRC/42016/defaul t.asp. Equally, the Safeguard Policy Statement (SPS) available at http://www.adb.org/Documents/Policies /Safeguards/Safeguard-Policy-Statement-June2009. pdf provides an outline for the requested plans as Annex to its Appendix Safeguard Requirements 3: Indigenous Peoples at http://www.adb.org/Documents /Policies/Safeguards/Safeguard-Policy-Statement-Jun e2009.pdf#page=68 for use as template and detailing the requirements. Most adverse impacts of the project can be addressed through the Resettlement Plans, so the EMDF and EMDP's should focus on community participation and inclusive distribution of project benefits to ethnic minorities. App 22 Is this EMDF required? Are the 8 EMDPs examples or There are 18 counties with the total number required? Screening should be ethnic minorities. Eight draft
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carried out to check for the presence of ethnic EMDPs have been prepared by minorities in the selected project areas of Heilongjiang the Consultant and 2 are being Province, as there are some sensitive small ethnic upgraded to final documents. An groups in the counties shown on the project map. If the EMDF has also been prepared. EMDF is not required, make sure that this is justified Local governments will need to through a thorough assessment of the ethnic minority upgrade the remaining 6 and situation in all project areas. prepare 10 EMDPs based on the EMDF, which is a key document. Screening of project counties has been undertaken and is included in the EMDF.. App 2 2 A listing of the ethnic minority composition of the A list similar to Appendix 21 is project counties and, as much as possible, the project provided as Table A20.1 based areas was requested, but never provided. A list similar on the screening to all project to what is now Appendix 21 should be provided as counties. The new Appendix annex to this appendix. It should at least state the 20 is the old Appendix 22. major ethnic groups, their absolute numbers and their percentage of the population, and other issues. Another possibility would be to provide an additional appendix with a list of counties that enumerates all data referring to social dimensions, such as poverty levels, resettlement issues, gender issues, ethnic minority groups and populations, etc. App 22 The focus of EMDF and EMDPs for this Project will be The community driven more on inclusive distribution of benefits and development approach, participatory decision-making by ethnic minorities, including the participation rather than mitigation of adverse impacts (which can strategy, has been be addressed in RPs). Consider strengthening strengthened. community driven development approach. App 22 Refer only to the Safeguard Policy Statement (SPS- Revised as indicated to refer to 2009), particularly safeguard requirement 3, not the the Safeguard Policy Statement previous policy or OMs. Also, there is no longer any distinction between a short and full RP; revise the EMDF accordingly (refer to the SPS and OM F1 at http://www.adb.org/Documents/Manuals/Operations/O MF01-4Mar2010.pdf for guidance). App 22 Some ethnic minorities such as Yi and Miao are mainly According the criteria for this living in mountain areas with poorer quality farmland, project (3.4.2; 3.4.3), it does not so they tend to have lower income levels. Does this target marginal farming areas. Project target such marginal farming areas? If so, we Miao have only 4 persons in can demonstrate it is inclusive of the poorer ethnic Zhaoyang, and the Zhaoyang minorities. If not, they may participate in the project as Government will pay attention to local migrants and should be mentioned and specific the Miao people when they measures targeted at them in the EMDP as much as prepare the EMDP. Some Yi live possible. in mountainous areas but others do not. For example, in Yaoan, Yunnan, some Yi live in the area with relatively good agricultural conditions. The revised EMDPs provide specific measures to these people as far as possible. App 22 Tourism can cause negative impacts on ethnic Tourism has been deleted as minorities. I don't see a tourism component in this suggested project, so I suggest we delete reference to such impacts (see Table A22.2). App 22 EMDP implementation may not require much budget if These have been included the measures are incorporated into the project design and implementation steps. Please add concrete measures and their implementation to the EMDP. App 22 If the EMDF is required, add a section for monitoring, A new section for monitoring, 284
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evaluation and reporting semi-annually to ADB. If the evaluation has been added. EMDF is not required, add a section on monitoring as described to each EMDP. SA I The approach to the EMDPs is too generic and doesn't The EMDPs for Qingtongxia and show appreciation for cultural differences of distinct Eryuan have been rewritten ethnic minority groups. More consideration and taking into account these attention should be given to conduct a comprehensive comments and providing the social analysis, included gender aspects. After these additional information as analyses, the EMDPs should be elaborated to: required (i) explain the local characteristics of the ethnic minorities (EMs) in each of the project areas/counties; (ii) document the consultation to date and the opinions/suggestions of Ems; (iii) consider specific design measures to benefit EMs and include them in project design, implementation and operation; (iv) prepare a participation plan for EMs; (v) formulate a training plan targeted at EMs, especially the women; and (vi) revise the cost estimates to implement the EMDPs. SA I 1.3.2, 2.3.2 and 3.3.2 state that This is changed in the revised EMDP Islam is also playing a role in community organization, gender roles, in economic and environmental perceptions. More knowledge is needed on whether and how this might influence the perception of the project. It would have been helpful if this knowledge had been acquired during PPTA. A measure should be part of the project design, e.g. of the capacity building component, that lays out how it should be acquired and how this would improve the project implementation. This should also be done for non-Hui minorities, will be applicable to all sites with significant impacts on ethnic minorities, be part of all EMDPs, and flow into the project design, thus not needing separate funding SA I Please explain in 1.3.3 and 1.3.4, and the The project impacts are limited corresponding sections of all EMDPs, how the project to agriculture so there are no impacts are different for Hui (and other minorities) major differences between Han compared to Han, and if there are no differences, and Hui, although there are please state that clearly and explain clearly why. If some minor differences. Based there are differences in impact, please design on these minor ones, specific measures to (i) increase the beneficial impacts and (ii) measures are proposed in the mitigate the negative impacts. EMDP for Qingtongxia. SA I Regarding 1.4.1 and 1.4.2, and the corresponding The revised EMDP of sections of all EMDPs, please state what consultation Qingtongxia has added new and participation efforts have already been undertaken information. prior to and during project design. Please also clarify the particular measures that are required of each EMDP, starting e.g. with language requirements, requirements on gender and attention to women's needs, etc. SA I 1.5, and the corresponding sections of all EMDPs, is The revised EMDP for one key section of an EMDP and clearly insufficient. It Qingtongxia includes design of states that new measures. In order to guarantee that Hui and Han people in the project areas will have equal chances and for a sound project design meeting their development demands,
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beneficial measures in the subsequent project process are needed. The Hui minority is one of the key factors that need to be considered in the project design. [a] Project design and implementation should consider carefully the local Hui customs. Technical training for Hui people, especially female Hui, should be stressed. None of this has been done. Beneficial measures have not been prepared, Hui (and the other minorities) have not been considered as factors in project design, Hui (and the other minorities) customs could not be considered as there is no description on how they are relevant to project activities, and technical training for Hui (and the other minorities) has not been designed in a specific manner. Grateful that these requirements are laid out here, we request they are designed into the project and the EMDPs. SA I The grievance redress mechanism in 1.6 should not The grievance redress refer to affected persons but persons with complaints mechanism has been revised to or complainants. refer to persons with complaints or complainants. SA I The monitoring and evaluation section 1.7 needs to be Monitoring and evaluation in reworded and follow the requirements laid out in the Qingtongxia EMDP is revised SPS, in particular, regarding external monitoring. and follows the requirements set out in the SPS. SA I The inclusions as laid out in 1.8 should be brought to This has been done and should the awareness of the other PPTA team members, so be continued during loan the relevant institutions will be considered for the processing project design in general. It needs to be made sure that the mentioned institutions are consulted in the way laid out. SA I Please explain in detail about how the measures The related parts have been suggested in 1.9 will be integrated into the project. revised in the new version of Qingtongxia EMDP. SA I Conduct a screening of the proposed project sites in A screening of the proposed Heilongjiang Province to confirm there are no ethnic project sites in all project minority communities. counties in Heilongjiang has been conducted and confirms that there are no ethnic minority communities in the project areas in this province.
Project Component 1: work on the WUAs requires a very The difference in skills focus & different set of skills and abilities to achieve the results requirement for infrastructure organiza required than that of the irrigation infrastructure development and WUA tion of upgrades, and I think this work should be set up in a development is fully recognized. activities completely separate component. In addition it may not However, after due be sensible to provide grants to existing WUAs to both consideration, the Consultant improve existing WUAs and create new ones, given suggests to retain the structure the very mixed successes in WUAs so far. An external developed by SOCAD. body may be a better choice. The use of grants for existing and new WUAs is consistent with the approach successfully used by the WB. The EA and IAs are familiar with the approach and it would seem logical for its retention Component 2, this is a blend of real engineering works The same argument as above is (leveling, new roads, land improvement) and key proposed as justification for not software and farmer engagement (training, organizing splitting farmer training into a farmer groups introducing new farming methods.) Can new component. 286
ADB TA 7311-PRC: Agricultural Infrastructure Comprehensive Development Project Final Report / June 2011 engineering works be included as an output of better quality farmland and infrastructure? I would strongly suggest you split the farmer training off and blend it with the WUA work. It might be useful to provide all services to one group (e.g. a water user assn is also a farmer assn) to increase motivation for participation, particularly given time stresses on farm labor due to out-migration. The output is then improved farmer capacity to use the improved infrastructure to increase agricultural output (volume and quality) and thus farmer incomes increase. Single year subsidies for changes of behavior have not The same approach has been in my experience been very successful. If there are used in the World Bank projects any problems due to other parts of the farming system, implemented by SOCAD and the change in technology will be blamed. Might it be has proved successful. While better to have a longer, sliding scale subsidy system the risks of non-adoption are with farmer visits to other farms that have successfully fully recognized previous introduced the proposed technologies to good result? experience and the government’s commitment to providing additional support if required is considered appropriate. It appears we only learn that the production facilities Page 30 states SOCAD’s will be farmed on a much larger scale on page 30. criterion for project area that it Can this be further clarified earlier, along with what should have a large contiguous size we are referring to, why this substantial policy area that is suitable for change has occurred, what kind of mechanization is development of agriculture on being considered, and what this means for income an increased scale. This does splitting, labor and other factors of combined land not necessarily mean a “much areas? larger scale” although it seems inevitable that the scale of Chinese agriculture will increase as rural workers migrate in search of employment. How does the proposed work under CAD link to The POCADs and COCADs existing agriculture offices and PADO activities? How work with the other provincial will WUAs be set up under CAD if MWR has and county-level offices as these responsibility? have the technical knowledge. Establishment and strengthening of WUAs is currently undertaken by CAD projects as well as by MWR. Both WB and DfID have worked with MWR and SOCAD in WUA formation and procedures are well established. Experimentation on green products is listed, which has Demonstrations of green already been long linked with greenhouses and biogas products are proposed under the digesters, both of which are significantly financed project but not biogas digesters including ADB projects. How are these linked, if at although the latter are identified all? within the CAD program. No linkages are proposed in this already complex project. Special features: the unified model is only for This is explicitly part of the production not for marketing. How will the latter be unified model and the text has arranged? been adjusted accordingly Special features: what about issues of agricultural These issues are predominantly chemical leakage into the water system; will this be environmental and are addressed e.g. through IPM and natural fertilizer/crop addressed in the environmental residue systems? assessment, including IPM and 287
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improved fertilizer use. M&E: if you are doing GIS, why not also introduce During project implementation, cadastre and randomized evaluation techniques which basic geographic information for would add relatively little in additional costs but might the GIS system can be obtained have very significant results? Also any indicators of from local mapping and persons trained are inputs. The output is a change in house-hold registration the farmer's choices and therefore income or management departments. CAD production results due to the training. Some new management departments only thinking on these is due. And where are the baseline need to sample or verify the data? geographic information, and specific information related to CAD. The issue of training, and also demonstrations, being an input not an output is fully recognized. However, the information available to the PPTA team does not identify the outputs that are expected from these inputs and consequently it is only possible to assess whether the prescribed amount of training or demonstration has been conducted. When they have been prepared the domestic FSRs should be reviewed to see if any progress has been made in identifying the outputs from training and demonstration. Note this also applies to the DMF. Baseline data have been used in the compilation of the provincial FSRs, and the Consultant’s report. However, it is likely that these will need to be updated and supplemented prior to implementation of individual subprojects in order to derive the necessary comparative basis. Baseline data collection is therefore included as a monitoring activity. Financing plan: the farmers’ contribution says it is Farmers’ contributions vary by predominantly in kind labor. It is crucial to state if they province and will be clarified have ANY cash contributions and what they are, as when the revised data are this type of requirement historically marginalizes available. poorer households. Procurement plan: there are far too many bid These will need to be reviewed contracts for training; they should be consolidated a bit with SOCAD and the POCADs further to ensure best quality and sharing of during loan processing since information across county lines. they have not yet reached the stage where such details can be agreed Retroactive financing : should be limited to Also to be finalized during loan infrastructure to prevent marginalization of women and processing. sub-par training being initiated. TA: it seems odd that CAD doesn't have a national A data management system has system of data management given the number of WB been constructed for the WB projects on this. What does WB say? projects but it has not been used according feedback from the 6 288
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provinces.
In addition there have been many millions spent on strategies for appropriate extension and marketing techniques; rather than developing them cannot the consultants build a better way of the provincial and county people getting data on existing and planned programs already doing this across the country, including in our own ADB projects? Participation: in fact LGOP, AG, and many other Based on the field study, projects define village level engagement and villagers were found to have discussions as the sine qua non for project success. developed practical participatory There is discussion of a project strategy, but by the procedures in the national & WB nature of PRC feasibility studies, all the defined CAD projects, such as “one physical infrastructure work will be laid out before case, meeting” decision making. participatory work even begins. How will you ensure In the revised SA G, a that villagers define, agree on, and fully understand participation strategy was the infrastructure improvements before they are bid designed based on the past and contracted for work, particularly given the request practical experiences as well as for advance action? discussions with villagers in the project areas. How can you ensure that demonstrations are not Participation in demonstrations provided for wealthier farmers or more politically requires a certain level of connected ones or men, since they will be on-granted knowledge and willingness to to the farmers? adapt. It is unfortunate that this is often associated with wealthier and more politically-connected farmers. However, focus is required to ensure that female farmers and the poor participate in these activities. This has been included in the DMF. SA A I have not seen evidence that removal of the ag. tax Removal of taxes has reduced has lowered income disparities between urban and the overall costs to farmers and rural areas. Can the proof be cited? therefore increased their disposable incomes net of taxes, whether or not it has resulted in increased output. The text in Section 7.2.2 of SA A has been adjusted Poverty Poverty and migration are major issues, and the Migration has been included as national government looks to see its subsidies an issue as appropriate provided to increase rural incomes, but there is nothing referring to these issues in the selection criteria. In other ADB projects there is deep discussion of farmer level repayment of investments. When we agreed to discuss this method of MOF full As explained earlier, some repayment, it was on the basis that full repayment at selection criteria for this the national level is justified IF poverty reduction or irrigation infrastructure and rural inequality would be strongly impacted by this agricultural production project investment. I am deeply concerned not to see are not in favor of including evidence that this is the major anticipated result in the poverty counties selected areas. The number of poverty counties is 13 of 68 or 19% and it is unclear if the specific townships/villages in the poverty counties are the poorer ones...Project income increases are shown as low at 11% on page 43 and page 45. While there is something in 3.4.3 end para on this, the data is insufficiently presented to justify the statements 289
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therein. More on the precise info of the sub-project areas within the counties would be very useful. In addition how did you ensure that the precise project areas had NOT been part of previous CAD or other similar projects? The poverty and social dimensions discussion seems Poverty and social dimensions disconnected from the rest of the project write-up. How have been mainstreamed into is poverty linked to this project? the main text and the poverty reduction and social strategy have been extended Ch 4.1 Under existing trends we would expect a household The increase in constant, not with income of 1,815 per year to increase naturally by nominal, terms and reflects only over 300CNY in five years without any project. How those increases that will be does this project either sustainably increase incomes achieved as a result of the higher than those levels already anticipated under project. Other government existing Government efforts and economic growth, or activities, outside of the project how do project activities reduce risk of poor may result in further increases. households? App 17 Needs work to demonstrate that (i) poorer households The problem of targeting poverty will benefit (since they are only 18% of total area for households in the project has project) and (ii) precisely how they will benefit beyond been discussed in more detail in the benefits which accrue to all farmers (better access the Poverty Reduction and to water and info.) will they be first in line for land Social Strategy. improvements, demonstration work on-farm, training? Gender The composition of both farmer groups and Gender dimensions have been trainers/CAD staff is not specifically mentioned until streamlined in the main text. The page 34, when it is (finally) noted that male special grant will fulfill a pilot outmigration is feminizing farm operations, with function. significant implications for project activities. A special grant to provide separate training to women for ag and tech skills is defined, which is far too little and too limited to make real sense for a project of this large size and scope. The one page write up on page 48 reinforces this gap between the reality and the inputs from the project side. In a project of this nature, it would be much, much Women’s participation have more useful to mainstream women's participation in been mainstreamed into the ALL of the project activities. That means ensuring participation strategy in all significant availability of jobs on the infrastructure project activities as appropriate components can be allocated to women, ensuring trainers and government staff are women as well as men in reasonable numbers, ensuring women participate fully in and are elected to positions of authority in WUAs and FAs, and setting up project activities, meetings and trainings at times and locations sensible to enable active participation of both men and women. App 18 Some of the above is mentioned in App 18 but not all. Demonstration effects of the Instead of setting up a separate team, the grant funds grant funds will be used for would be much better used to imbed technical introducing the “ACWF plus” specialists with gender skills into every aspect of the model to other project counties Project's operations, to train other staff on easy methods of mainstreaming gender into their work, and to monitor the results. The PRC government says that gender equality is a standard. Let us then reinforce this by placing persons throughout the project who ensure this is occurring and not delegate it to consultants and ACWF. App 3 Gender issues and labor outmigration are not included Gender issues and out migration in the problem tree but they should be. have been included in the 290
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problem tree. Did anyone look to see whether irrigation water The irrigation and drainage supplies are also used for households, or do all component relates only to water households in the project area have standpipes or for crop production although it easily available water supplies outside the irrigation has been observed in a limited systems? Since in PRC only 55% of rural households area that water is also used for have piped water this may be a crucial issue, domestic purposes. However, particularly for women. this is not a critical issue. App 18 Appendix 18 is good generally on informing women In App 18 (GAP) the role of and involving them but not on ensuring they have a women in decision-making has significant voice in decision-making. See comments been strengthened and clarified. above on mainstreaming. The information and plans Gender dimensions have been proposed here should be incorporated into discussions included in the discussions of of outputs and inputs in the main text. outputs and inputs in the main County PMOs are assumed to be fully gender aware text. Training on gender and this may be too strong an assumption. Will awareness has been included in women be at least 50% of consultants? Why should the GAP. A request for at least women run for village councils when the project does 50% women consultants has not work with their formation but rather WUAs and been included (in 3.9.1). Women FAs? And the ACWF is a fallback for gender work should be encouraged to run for and should not be the only woman in the county village councils to strengthen the leading group; perhaps the leading groups should be participation of women in project at least 50% women? related decision-making processes on the village level. Without the ACWF effective gender mainstreaming will be even more difficult. A combination of ACWF with local women NGOs is suggested. There is some evidence that this is a promising approach. App 19 GDCF Proposal: This needs more discussion to The “ACWF plus” model is (Hung) explore potential for greater innovation. What is suggested as an innovative currently proposed appears rather conservative; approach to link the network and and training for women’s production groups could experience of the ACWF with arguably form part of core project activities rather women’s activities in than GDCF activity which is meant to be catalytic establishing and strengthening and go beyond mainstreaming. local grass-root organizations. - It does not appear completely logical for the GDCF The model will provide an proposal component to be placed under output 3.3.3 important starting point for Strengthened Project Management Capacity or to be explaining how the proposed considered as Technical Assistance (p 42) when it GDCF activities will provide relates largely to the training of women farmers. leverage and influence the wider - It should be better explained in the project. background/rationale how proposed GDCF activities Section 3.3.3 has been revised will provide leverage and influence the wider project. highlighting gender awareness -Three provinces and 6 counties may be spreading in the context of project rather thin given the small potential grant. We management. Given the recommend preference for quality rather than extraordinary scope of the coverage. project it seems to be justified to - It is recommended that one of the criteria for proceed with the proposed selecting the location of ACWF training should be the GDCF activities in six counties commitment and receptiveness of the ACWF branch in and three provinces. the location, as this a key to the enabling environment. Commitment and receptiveness - The proposal needs more detail on M&E aspects of the ACWF branch in the (including a DMF). location has been included as one of the criteria for selecting the location of ACWF training. A DMF has been included in the GDCF Proposal, including M&E
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aspects App 18 Gender Action Plan (GAP): This still needs some The draft GAP has been (Hung) refining and thought. The description of gender restructured in line with project design features against the three project components outputs/activities. Activities and on p 48 (under 4.5.2 Gender Equality and Women’s targets have been delineated Development) and the GAP preamble is the correct into separate columns and approach. However we suggest a restructuring of the additional columns on draft GAP in line with specific project outputs/activities responsibility and time frame for and a revisiting of GAP activities and targets to better implementation have been mirror the breadth of the project components. We also inserted. suggest that activities and targets be delineated into separate columns and an additional column on responsibility and time frame for implementation inserted. Ch 5.2 The assurance on Gender and Development needs to The assurance on Gender and be more clearly worded and emphasize GAP Development has been worded implementation and reporting. more clearly and GAP implementation and reporting have been emphasized. SA G Supplementary Appendix G appears very brief and Supplementary Appendix G has does not reflect a sufficient level of gender analysis. been revised and extended Overall The intersection between gender and ethnicity is not This issue has been addressed well explained or addressed throughout the report and in the revised reports and appendixes – this appears to be an analytical gap. appendixes
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