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Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: ICR0000191 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-45890) ON A LOAN Public Disclosure Authorized IN THE AMOUNT OF US$74.0 MILLION TO THE PEOPLE’S REPUBLIC OF CHINA FOR A WATER CONSERVATION PROJECT Public Disclosure Authorized March 27, 2007 Rural Development, Natural Resources & Environment Sector Unit East Asia and Pacific Region This document has a restricted distribution and may be used by recipients only in the performance of their official Public Disclosure Authorized duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS ( Exchange Rate Effective March 5, 2007 ) Currency Unit = RMB Yuan RMBYuan 1.00 = US$ 0.129 US$ 1.00 = RMB Yuan 7.743 Fiscal Year January 1 – December 31 ABBREVIATIONS AND ACRONYMS CAS Country Assistance Strategy CPCG Central Project Coordination Group CPMO Central Project Management Office EIRR Economic Internal Rate of Return ET Evapo-transpiration FIRR Financial Internal Rate of Return FMS Financial Management System FNPV Financial Net Present Value GW-MATE Groundwater Management Advisory Team IAIL Irrigation Agricultural Intensification Loan IAWSP Irrigated Agricultural Water Saving Program ICRR Implementation Completion and Results Report M&E Monitoring and Evaluation MIS Management Information System MOF Ministry of Finance MST Mobile Specialist Team MTR Mid-term Review MWR Ministry of Water Resources NPV Net Present Value O&M Operation and Maintenance PAD Project Appraisal Document PDO Project Development Objective PMO Project Management Office QAG Quality Assurance Group SOCAD State Office for Comprehensive Agricultural Development WCP Water Conservation Project WRB Water Resources Bureau WSO Water Supply Organization WTO World Trade Organization WUA Water User Association Vice President: James W. Adams, EAPVP Country Director: David R. Dollar, EACCF Sector Manager: Rahul Raturi, EASRE Task Team Leader: Liping Jiang, EASRE China Water Conservation Project Implementation Completion and Results Report Contents Page number D a t a S h e e t ...............................................................................................................i 1. Project Context, Development Objectives and Design............................................. 1 2. Key Factors Affecting Implementation and Outcomes............................................. 2 3. Assessment of Outcomes .......................................................................................... 7 4. Assessment of Risk to Development Outcome....................................................... 10 6. Lessons Learned...................................................................................................... 12 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners......... 13 Annex 1. Project Costs and Financing........................................................................ 14 Annex 2. Outputs by Component................................................................................ 16 Annex 3. Economic and Financial Analysis ............................................................... 19 Annex 4. Bank Lending and Implementation Support/Supervision Processes........... 29 Annex 5. Beneficiary Survey Results ......................................................................... 31 Annex 6. Stakeholder Workshop Report and Results................................................. 33 Annex 7. Summary of Borrower's ICR and/or Comments on the Bank’s ICR .......... 34 Annex 8. Comments of Co-financiers and Other Partners/Stakeholders.................... 37 Annex 9. List of Supporting Documents .................................................................... 38 Maps: CHN30946, CHN30947, CHN30948, CHN30949 A. Basic Information CN-Water Country: China Project Name: Conservation Project ID: P056516 L/C/TF Number(s): IBRD-45890 ICR Date: 03/30/2007 ICR Type: Core ICR Lending Instrument: SIL Borrower: PRC Original Total USD 74.0M Disbursed Amount: USD 72.3M Commitment: Environmental Category: B Implementing Agencies: Ministry of Water Resources Beijing Water Affairs Bureau Hebei Water Resources Bureau Qingdao Water Resources Bureau Shenyang Water Resources Bureau Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 01/15/1999 Effectiveness: 05/03/2001 05/03/2001 Appraisal: 05/01/2000 Restructuring(s): Approval: 12/19/2000 Mid-term Review: 05/08/2004 Closing: 06/30/2006 06/30/2006 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Highly Satisfactory Risk to Development Outcome: Moderate Bank Performance: Satisfactory Borrower Performance: Highly Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Highly Satisfactory Government: Satisfactory Implementing Quality of Supervision: Satisfactory Highly Satisfactory Agency/Agencies: Overall Bank Overall Borrower Satisfactory Highly Satisfactory Performance: Performance: i C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Project Quality at Entry No None at any time (Yes/No): (QEA): Problem Project at any Quality of No None time (Yes/No): Supervision (QSA): DO rating before Satisfactory Closing/Inactive status: D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Forestry 4 4 General agriculture, fishing and forestry sector 25 14 General public administration sector 7 6 Irrigation and drainage 64 76 Theme Code (Primary/Secondary) Land administration and management Secondary Secondary Other rural development Primary Primary Water resource management Primary Primary E. Bank Staff Positions At ICR At Approval Vice President: James W. Adams Jemal-ud-din Kassum Country Director: David R. Dollar Yukon Huang Sector Manager: Rahul Raturi Mark D. Wilson Project Team Leader: Liping Jiang Liping Jiang ICR Team Leader: Liping Jiang ICR Primary Author: Christopher S. Ward Qun Li F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The project development objective was to enhance beneficial use of water resources over 100,000 hectares in four provinces/municipalities, and to increase the incomes of 257,000 farm families by: (1) increasing the value of agricultural production per unit of water ii consumed through increasing yields and reducing non-beneficial water losses; and (2) establishing mechanisms for sustainable use and management of water resources in irrigated areas. Revised Project Development Objectives (as approved by original approving authority) There were no revision of the project development objectives and key indicators throughout the project implementation period. (a) PDO Indicator(s) Original Target Formally Actual Value Values (from Revised Achieved at Indicator Baseline Value approval Target Completion or documents) Values Target Years Indicator 1 : Increased Grain Crops production (Ton). Value quantitative or 659906 659089 NA 556803 Qualitative) Date achieved 12/31/2000 06/30/2006 09/30/2006 12/30/2005 Comments (incl. % Percentage of PAD: 84.5% achievement) Indicator 2 : Increased Cash Crops production (Ton). Value quantitative or 946077 2359305 NA 2874648 Qualitative) Date achieved 12/31/2000 06/30/2006 09/30/2006 12/30/2005 Comments (incl. % Percentage of PAD: 121.8% achievement) Indicator 3 : Annual farmer incomes per capita increased in Beijing (Yuan). Value quantitative or 3314 4110 NA 4715 Qualitative) Date achieved 12/31/2000 06/30/2006 09/30/2006 12/30/2005 Comments (incl. % Percentage of PAD: 114.7% achievement) Indicator 4 : Annual farmer incomes per capita increased in Hebei (Yuan). Value quantitative or 1441 1608 NA 2349 Qualitative) Date achieved 12/31/2000 06/30/2006 09/30/2006 12/30/2005 Comments (incl. % Percentage of PAD: 146.1% achievement) Indicator 5 : Annual farmer incomes per capita increased in Qingdao (Yuan). Value 1790 2178 NA 3928 iii quantitative or Qualitative) Date achieved 12/31/2000 06/30/2006 09/30/2006 12/30/2005 Comments (incl. % Percentage of PAD: 180.3% achievement) Indicator 6 : Annual farmer incomes per capita increased in Shenyang (Yuan). Value quantitative or 1174 1770 NA 3445 Qualitative) Date achieved 12/31/2000 06/30/2006 09/30/2006 12/30/2005 Comments (incl. % Percentage of PAD: 194.6% achievement) Indicator 7 : Increased Wheat yields (kilograms per unit of ET; kg/m3). Value quantitative or 1.01 NA NA 1.84 Qualitative) Date achieved 12/31/2000 06/30/2006 09/30/2006 12/30/2005 Comments (incl. % Percentage of baseline: 82% achievement) Indicator 8 : Increased Corn yields (kilograms per unit of ET; kg/m3). Value quantitative or 1.21 NA NA 2.22 Qualitative) Date achieved 12/31/2000 06/30/2006 09/30/2006 12/30/2005 Comments (incl. % Percentage of baseline: 183% achievement) Indicator 9 : Increased Rice yields (kilograms per unit of ET; kg/m3). Value quantitative or 0.79 NA NA 1.34 Qualitative) Date achieved 12/31/2000 06/30/2006 09/30/2006 12/30/2005 Comments (incl. % Percentage of baseline: 70% achievement) Indicator 10 : Increased Greenhouse Vegetables (kilograms per unit of ET; kg/m3). Value quantitative or 15.63 NA NA 25.10 Qualitative) Date achieved 12/31/2000 06/30/2006 09/30/2006 12/30/2005 Comments (incl. % Percentage of baseline: 61% achievement) Increased agriculture yields and value per unit of irrigation water (kg/m3
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