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PRC: Guiyang Integrated Water Resources Management Project T echnical Assistance Final Report Project Number: 38594 December 2006 People's Republic of China: Guiyang Integrated Water Resources Management Project Prepared by: Black and Veatch (Asia) Ltd., Hong Kong For the Guiyang Municipal Government This 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.) ADB TA - 4586 – PRC Project Preparatory Technical Assistance GUIYANG INTEGRATED WATER RESOURCES MANAGEMENT PROJECT Final Report Volume I Main Report December 2006 Consultant Executing Agency Black & Veatch (Asia) Ltd Guiyang Municipal Government ADB TA - 4586 – PRC Project Preparatory Technical Assistance GUIYANG INTEGRATED WATER RESOURCES MANAGEMENT PROJECT Final Report Volume II Appendices December 2006 Consultant Executing Agency Black & Veatch (Asia) Ltd Guiyang Municipal Government ADB TA - 4586 – PRC Project Preparatory Technical Assistance GUIYANG INTEGRATED WATER RESOURCES MANAGEMENT PROJECT Final Report Volume III Project Documents December 2006 Consultant Executing Agency Black & Veatch (Asia) Ltd Guiyang Municipal Government ADB TA - 4586 – PRC Project Preparatory Technical Assistance GUIYANG INTEGRATED WATER RESOURCES MANAGEMENT PROJECT Final Report Volume IV Environmental Safeguard Documents December 2006 Consultant Executing Agency Black & Veatch (Asia) Ltd Guiyang Municipal Government ADB TA - 4586 – PRC Project Preparatory Technical Assistance GUIYANG INTEGRATED WATER RESOURCES MANAGEMENT PROJECT Final Report Volume V Resettlement Safeguard Documents December 2006 Consultant Executing Agency Black & Veatch (Asia) Ltd Guiyang Municipal Government ADB TA - 4586 – PRC Project Preparatory Technical Assistance GUIYANG INTEGRATED WATER RESOURCES MANAGEMENT PROJECT Final Report Volume VI Social Safeguard Documents December 2006 Consultant Executing Agency Black & Veatch (Asia) Ltd Guiyang Municipal Government Guiyang Integrated Water Resources Management Project Black & Veatch (Asia) Ltd Asian Development Bank TA – 4586 – PRC Project Preparatory Technical Assistance GUIYANG INTEGRATED WATER RESOURCES MANAGEMENT PROJECT FINAL REPORT Volume I Main Report Table of Contents List of Abbreviations Used Executive Summary 1. Introduction 1-1 1.1 General 1-1 1.2 Objectives 1-2 1.3 International Donors Involvement in Guiyang and Guizhou Water Sector 1-2 1.4 Implementation Arrangements 1-3 1.5 Layout of Draft Final Report 1-4 2. Water Sector Review and System Analysis 2-1 2.1 Water Sector Review 2-1 2.2 Agricultural Sector 2-5 2.3 Systems Analysis of Guiyang Water Sector based on IWRM 2-6 2.4 Integrated Water Resource Management in GM 2-10 2.5 Future Water Resources Development in GM based on the Master Plan 2-11 2.6 Formulation of Proposed ADB Financed Sector Loan Project. 2-15 2.7 Conclusions and Recommendations 2-16 3. Project Description 3-1 3.1 Project Rationale 3-1 3.2 Selection of Loan Modality 3-4 3.3 Brief Description of the Project and the Core Subprojects 3-4 3.4 Estimated Capital Costs 3-8 3.5 Implementation Schedule 3-8 3.6 Current Project Approval Status 3-9 4. Subproject Feasibility Studies and Appraisal 4-1 4.1 General 4-1 4.2 Yudongxia Reservoir Urban Water Supply Core Subproject 4-2 4.3 Jinlong Reservoir County Water and Irrigation Water Core Subproject 4-3 4.4 Xifeng County Small Tank Rural Water Supply Core Subproject 4-5 4.5 Wudang Midsize Irrigation System Rehabilitation Core Subproject 4-6 4.6 Liaojiuzhai Reservoir Rural Water and Irrigation Water Core Subproject 4-7 4.7 Huaxi Reservoir Catchment Soil and Water Conservation Core Subproject 4-8 Final Report i 4/24/2008 Guiyang Integrated Water Resources Management Project Black & Veatch (Asia) Ltd 4.8 Issues Relevant to Appraisal of Subprojects 4-9 5. Environmental Impact Assessment 5-1 5.1 General 5-1 5.2 Regulatory Context 5-2 5.3 Environmental Criteria for Subproject Selection 5-4 5.4 Document Requirements and Current Status 5-5 5.5 Summary of Environmental Assessment 5-6 5.6 Non-Core Subprojects Environmental Assessment and Review Procedure 5-10 5.7 Conclusions 5-11 6. Poverty and Social Analysis 6-1 6.1 Introduction 6-1 6.2 Poverty and Social Conditions in Guizhou and Guiyang 6-2 6.3 Ethnic Minorities 6-5 6.4 Gender 6-16 6.5 Stakeholder Analysis 6-20 6.6 Participation Strategy 6-22 6.7 Social Safeguards Documents 6-32 6.8 Issues for Resolution during Loan Processing and Project Implementation 6-32 6.9 Conclusions on Participation and Social Safeguards 6-33 7. Land Acquisition and Resettlement 7-1 7.1 General 7-1 7.2 Summary of Resettlement Impacts 7-2 7.3 Resettlement Policy Framework 7-3 7.4 Compensation Entitlements 7-4 7.5 Resettlement Cost and Fund Management 7-11 7.6 Resettlement Organizational Arrangement 7-12 7.7 Public Participation and Consultation 7-12 7.8 Monitoring and Evaluation 7-13 7.9 Resettlement Safeguards Documents Required and Current Status 7-13 7.10 Issues for Resolution during Loan Processing and Project Implementation 7-13 7.11 Conclusions 7-14 8. Economic and Financial Analysis 8-1 8.1 Economic Evaluation – Core Subprojects 8-1 8.1.1 Introduction 8-1 8.1.2 Existing Conditions 8-1 8.1.3 Economic Sector Analysis 8-10 8.1.4 Least Cost Analysis 8-19 8.1.5 Economic Analysis and Benefit Assessment of Core Subprojects 8-23 8.1.6 Water Resource Pricing and Finance 8-35 8.1.7 Issues for Resolution during Loan Processing 8-39 8.2 Financial Analysis 8-39 8.2.1 Introduction 8-39 8.2.2 Approach and Assumptions 8-40 8.2.3 Financial Sustainability of Revenue Generating Subprojects 8-46 8.2.4 Sustainability at the Level of the Farm Household 8-52 8.2.5 Financial Management Assessment 8-53 9. Institutional Arrangements and Capacity Building 9-1 9.1 Introduction and Overview of Requirements 9-1 9.2 Institutional and Capacity Building Work within the PPTA 9-1 9.3 Analysis of Existing Institutional Arrangements 9-3 Final Report ii 4/24/2008 Guiyang Integrated Water Resources Management Project Black & Veatch (Asia) Ltd 9.4 Policy Framework 9-7 9.5 Review of Proposed Project Implementation Arrangements 9-8 9.6 Institutional Capacity Analysis 9-11 9.7 Capacity Building Needs 9-13 9.8 Issues for Resolution during Loan Processing and Project Implementation 9-15 9.9 Conclusions 9-16 10. Project Design, Monitoring and Evaluation 10-1 10.1 General 10-1 10.2 Project Design and Monitoring Framework 10-1 10.3 Project Monitoring and Evaluation 10-2 Figures Figure 1-1 Core Subproject Locations Figure 1-2 Personnel Schedule Figure 2-1 Problem Analysis Figure 2-2 Guiyang Water Resources Figure 3-1 GIWRM Reservoir Subproject Locations Figure 3-2 GIWRM Irrigation Subproject Locations Figure 3-2 GIWRM Small Tanks Subproject Locations Figure 3-4 GIWRM S&W Conservation Subproject Locations Figure 3-5 Core Subproject Implementation Schedule Figure 8-1 ADB Flow of Funds and Lending Arrangements Figure 9-1 Organization of Guiyang Municipal Government Figure 9-2 Project Management Arrangements Figure 9-3 Guiyang Municipal Org-structure Chart Figure 9-4 Organizational Structure of Xiuwen WRB Figure 9-5 Organizational Structure of Huaxi WRB Figure 9-6 Organizational Structure of Wudang WRB Figure 9-7 Organizational Structure of Xifeng WRB Volume II Appendices Table of Contents A. General Appendix A1 Detailed TOR for Consultants Appendix A2 List of Reference Appendix A3 Responses to ADB Comments on the DFR Appendix A4 Coverage of Consultant's TOR B. Sector Analysis, Project Selection and Review Criteria Appendix B1 Sector Analysis Appendix B2 Agriculture Sector Review Appendix B3 Irrigation Sector Review Appendix B4 Master Plan Subproject List Appendix B5 Master Plan Review Final Report iii 4/24/2008 Guiyang Integrated Water Resources Management Project Black & Veatch (Asia) Ltd C. Project Description Appendix C1 Selection Criteria for Candidate Subprojects Appendix C2 Non-core Subproject Approval Criteria Appendix C3 Candidate Subprojects for ADB Financing Appendix C4 Core Subprojects List D. Technical and Subproject Analysis Appendix D1 Yudongxia subproject FAR Appendix D2 Jinlong subproject FAR Appendix D3 Xifeng small tanks subproject FAR Appendix D4 Wudang Irrigation subproject FAR Appendix D5 Liaojiuzhai subproject FAR Appendix D6 Huaxi Soil Conservation subproject FAR Appendix D7 Dam design flood standards Appendix D8 TOR for Indep Dam Construction Advisory Panel Appendix D9 Small Tank Management Framework Appendix D10 Soil Conservation Review Comments F. Social & Poverty Appendix F1 SPRSS Appendix F2 Gender Action Plan Appendix F3 Stakeholder Participation and Consultation Record G. Resettlement Appendix G1 Terms of Reference for External Monitoring and Evaluation H. Finance and Economics Appendix H1 Costing Categories and Cost Tables Appendix H2 Project Financing Plan Appendix H3 Financial Analysis and Management Assessment Appendix H4 Eighteen Month Procurement Plan Appendix H5 Financing and Funds Flow Appendix H6 Household Surveys and Results Appendix H7 Urban Water Demand Curve Appendix H8 Affordability I. Institutional Appendix I1 Analysis of Institutional Capacity Appendix I2 Draft CS TOR Appendix I3 Assessment of Capacity for Project Implementation Appendix I4 Action Plan for Development of WUA Appendix I5 Policy Framework Appendix I6 ADTA Draft Terms of Reference Final Report iv 4/24/2008 Guiyang Integrated Water Resources Management Project Black & Veatch (Asia) Ltd Volume III Project Document Guiyang Integrated Water Resources
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