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The World Bank Uocument of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 11040-A STAFF APPRAISAL REPORT Public Disclosure Authorized CHINA CHANGCCUNWATER SUPPLY AND ENVIRONMENTALPROJECT DECEMBER30, 1992 Public Disclosure Authorized MITCOFICHE COPY heport No.:11040-CHA Type: (OAR) Titie: CHANGCHUN WATER SUIPPLY AND) ENV Autthor: PIETVELD, C Ext.:82924 Room:F8059 Dept.:ASTIN Environment, %uman Resources and Urban Development Operations Division Country Department II Public Disclosure Authorized East Asia and Pacific Regional Office This docunent hs a resMtded distibuto and may be uad by ripiens only in the perfonmnce of their offid dutie Its contens may not otheise be dbcosed without Word Bank autoization. CURRENCY EQUIVALENTS (As of June 1992) CurrencyName = Renminbi(RMB) Currency Unit = Yuan (Y) $1.00 =Y 5.48 Y 1.00 = $0.18 WEIGHTS AND MEASURES 1 millimeter(mm) = 0.0939 Inches (in) 1 meter (m) = 3.2808 feet (ft) I squaremeter (m: 2) = 10.7639square feet (ft) I cubicmeter (ml) = 35.3 cubicfeet 1 hectare(ha) = 10,000square meters 1 kilometer(Iam) = 0.62 miles(mi) 1 squarekilometer (1an) = 0.3861square mile (mtn) ACRONYNS AND ABBREVIATIONS CIDA CanadianInternational Development Agency CMC ChinaNational Machinery Import and ExportCorporation CSC ChangchunSewerage Company CWSC ChangchunWater Supply Company CWRC CbangchunWater Resources Company EPB EnvironmentalProtecion Buream HLLG High-LevelLeadership Group lcd Litersper capitaper day MOC Ministryof Construction MOWC Ministryof WaterConservancy NEPA NationalEnviromnental Protection Agency PMO ProjectManagement Office PRC People'sRepublic of China SOEs Statementsof Expenditure SPC StatePlanning Commission UCC UrbanConstruction Commission FISCAL YEAR January1 - December31 FOR OFFICIALUS ONLY -i - CHINA CHANGCHUNWATER SUPPLY AND ENViRONNTAL PROJECT CREDITAND PROJECTSUMRY Ibmwr. People'sRepublic of China(PRC) _ bnfidaryt C bai~gcdunMunicipalt Ameunt SDR86.6 million($120 mfllion equivalent) Term: Standard,with 35 yes maurity and a grce perid of 10 years COlendingTerms: Tho Govrment of Chinawould make the proceedsavaiable to the ChangchunMunicipality. The municpality would oulend Ihe proceeds: (a) to the ChangchunWater Supply Company (CWSC) at a vaiable rate equal to the Bankrae plus a spreadof 1.5 percentper annumat the same matur as IBRDloans; and (b) to the newly created Changchu Sewerag Company(CSC) at a fixed rate of 5.1 pcont per annumat the samematuit as IBRDloans. CWSC and CSC wi beot a fixed commment chaw of 0.5 percentand assum the foreignexcag re hqject DewipUon Tbe main objectivesof the projectare to Improvewater spply in Changchunto meet the domestc needs of the urban popuation, Support dustial growth,and control urban water polluton. The physical works wuld include: (a) construcdonof a water umvmbsionpipeline to convoywat fom the SecondSonghua River to anImpout reseroir curey sevzg Changcun;construction of pumpingstations, epnsi and Impovementof watertreat facliies and expansionof the capacityo' the wer disuton system;(b) constructionof a trunkIntercepw sewerand a primary sewagetreate plantand prremt of eqpmet and tments for eniomenta qualitymonitoring and control;and (c) tecical assaceto assistwihdesignand construcdosupevision, to fh maagementsupport to the waterand sewerage companies including the preparationof a staff trainingprogram, and to implementa hardus wastestudy. nstiuonally, the projectwould reifor CWSC,develop CSC, strengte water polludoncontrol, e sh approprte pricing policies,improve operation practies, promote masures fr waterc ationad me prsoU l maement, indcuding anig of staf. Thisdocument has a rsicted distributionand maybe used by recipientsonly in the peformance of their oicia duties.Its contentsmay not otherwisebe discosedwithout World Bank authotization. 0,~ I11,1 tt^l8t [#tti lif ill- Etlmated Cost.:L Loa Forei Tdgn - ($ million) Water Trw misn 36.0 44.5 80.6 Urban Water Supply 34.2 36.1 70.2 Sewag Colecton and Treatment 20.3 16.2 36.5 Tecinical Assstce 6.3 6.5 12.8 Totals Cost Ak 2i ml ml Physical Coningencie 14.3 15.0 29.3 Price Coingences 15.2 6.8 22.0 TowalPoectost D3 12S. 2S1* Interest during Constrction 14.9 0.0 14.9 P_eauired ~~141.; 12.^ ^ mincing Plan: Local Fori Ta - ($ million) Goverment of China 25.5 5.1 30.6 Jain Provinc Gover_ment 54.7 0.0 54.7 Chachun Municipality 61.0 0.0 61.0 IDA 0.0 120.0 120.0 TAd14.1 Es d Disburt: IDA FY i93 199 1994 I 199719 (S mniion) Anmual 7.2 22.0 32.0 30.0 r 15.0 11.0 3.8 CumulatIve 7.2 29.2 61.2 91.2 105.2 116.2 120.0 Enn_mi1 late of Return Water Supply 11 pecent Sewea 23 pferet Maps: IRD No. 24063 - Gener Layout IBRD No. 24064- WaterSupply Facilities DBRDNo. 24114- SewerageFacilities bgPrjeanced oodsaeaxpt frm Impo duies and taxes. a In cost for and ($9.9 miion). -V - Contents 1 IlieSecto * . ......... .. .................. A. SectorBackgound ................................1 Genal ........... ......................... 1 WaterResources ..................1 War Supply .......................... 1 PdolutonControl. ............................. 2 B. Sectrinstitutions.. ... ...............................2 C. a orSe"rlsues .............................. 3 D. Prevkos BankGroup nwolvementInthe SeCtDr. ......... 5 E. Roleof theankGroup in theSector..... .................. 6 2 ProjectAra ....................................... 7 A. Udn GrowthandEconomicAdIty ...... 7 B. ktesldtdaandndust WaterSupplySSavis . 7 C. W atrsupplyImasterPin8....... 8 D. Resldent andInduwitrlaSewageDisposa .. 9 E. SeDgwlspdsa MasterPlan .. .. .. .. ... .. 10 P. PublicHeft .. ... 10 3 IuPlkroJec.......... 11 A. Projecobjecv tiv.... 11 C. Projectepaon........ 13 D. ProjectCostEsftlates . ... 13 Tbisrepot Is bad on the findinp of an appraisamision wich visitedChina In May/une 1992. Ptojeatem membes udedMr. CadoRiedd (PrincipalUbanNWater Suppy En and TaskManar), Mr. GeorgePlant (So Soatary Enginer), Ms. Elizabedt Ranidn(cnomist), Mr. Wlliam KrNase(Financid Analyst, Consultat), Mr. Osam BIeda (EngieerConsultat), Mr. EdwardKe-Siong Hum irnmeta Eqgnrbm,Consultant), Ms. Xeng Llu (viron tl Engnew, Consultant),and Mr. Chieh Wu Engier, Consultant).Pee reviewersfor the projectwe Mr. G. Y s (Wate nd Sanitn Advisor, NUW), Mr. S. Choi (Sfio Eca mist, AST" and Ms. A. Naam (dior FinancialAnlyst, EC3IV). Ihemaaig Didon I EA2E. Th Dision Chif is Mr. Zah Ecok and the Diector isMr. ShahidJxvd Burki. -Y- E. FincingPlan ......... ................ ........... 14 F. ProjectManagementandmemento ........ ... .. 1S ProjecteRqtig........ #..4 ... 4 444 *........... 1S G. LandAcquisiton ................................. is H. Pocurenment..................................... 16 I sburseut.D ... .. * .... ..... .4. .. 17 1. PjSupervison..... .............4.4 *444444 18 -K Resetdlemet.................................... 18 4 lbe upnngAgecies .............................19 A. p igand Operatig Agncis .................... 19 B. andaationManod o CWSC andCSC ............19 C. Accounig andAudfitig ............................ 20 D. BilingandCollection ... ...... 21 E. PersonnelMargemaent . .21 5 _1nan"aAralysis.....23 A. Pastand CurrentFinancial Condiion . .23 B. BalanceSheet and Fr-.d Assets ........ ... .. 23 C. Cumet Water Supply ad Seweap Taif .... 24 D. FinanciPerfbmnace Forecast... 24 6 PirojetAnalysis. 25 A. ProJectJustifilcaon.............. *................. 25 D. Ieast-CostSolution. .. 25 C. ProjectBenefits .. 25 D. EcononicRate of Retun .. 26 E. Affordability.. 27 F. Eaviromnenta Impact .... ..... 27 0. Project Ris. ... .. 28 7 Agrnene s Racdd and Re. ni.endatl.n .. 30 TAsS iN TmLT 2.1 Water DemandProjection 8........... ..... ..... .8 2.2 SewageProduionProjedon... .... 9 3.1 SumnmaryCostEsmates.. .13 3.2 ProjectFnacinggPlan.. 14 3.3 ProcurementA ngent I ....... ...... 16 AwVI" 1. Exbstl Wte SupplyandSewereSystem . ..................32 2. W Dem d andSewr Foeass ............ ........ * . 40 3. Descpddnof Component ..........................52 4. Projectmple mentatonSchemde .... .......... 54 S. ScheduleofContractPacbgesandCostTables .................. 55 6. Esmated CrediDi Schedule ..............I....... 60 7. SupervlonPIn ... ............................... 61 8. Proposed WaterSupplyandSewergeOrgalatos............... 63 9. Assmptions forFinci Projecdons ............................ 73 10. Ei in act Assessment...... ........... ........ 81 11. ToxidcHazdous Waste Managementand Indusid Park Studies- Daft TonsofReferen ......... * * 95 12. Mangemet and Operationl Supportfo Changchm Water Supply Cmpany: Draft Descridon ...... ....................... 99 13. Ecooic Rateof RetunTables ............. 106 14. SelectedDocumentsandDataAvaiablein theProjectFile ........... 108 MM BJRD No.24063 GeneralAu .............................. 120 I3RDNo.24064 WateSupplyFacilities .......................... 121 I'RDNo.24114 SewemrFacilides ...... ...................... 122 1 TH SECTOR A. SECTORBACKGROUND 6wal 1.1 Chinahas a rapidlygrowing urban population of about300 million, larger than the total populationof the UnitedStates. Althoughabout 70 percentof China's 1.1 billion populatonlives in rural areas, emigrationfrom the rural areasaccouns for mostof the recen rpd urba growth. 'here are nowmore ta 150 citieswith populations of at least 200,000 sad thouands of smallertowns. Even thoughcompared to other developingcountries the ren urban growthrate in Chinais low, it is China'ssize whichmakes the developmentof uban infrastructure,in particular,for watersupply and pollutioncontrol, an Immensetaslc 1.2 Overthe past 400 yearsChina has been a countrywhere survival of
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