Document of The World Bank
FOR OFFICIAL USE ONLY
Public Disclosure Authorized Report No: 52450-CN
PROJECT APPRAISAL DOCUMENT
ON A Public Disclosure Authorized PROPOSED LOAN
IN THE AMOUNT OF US$100 MILLION
TO THE
PEOPLES’S REPUBLIC OF CHINA
FOR A
XINJIANG TURPAN WATER CONSERVATION PROJECT Public Disclosure Authorized
May 19, 2010
China and Mongolia Sustainable Development Unit Sustainable Development Department East Asia and Pacific Region
This document has a restricted distribution and may be used by recipients only in the Public Disclosure Authorized performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
CURRENCY EQUIVALENTS
(Exchange Rate Effective February 2010)
Currency Unit = RMB RMB1.00 = US$ 0.146 US$1.00 = RMB 6.8
FISCAL YEAR January 1 – December 31
ABBREVIATIONS AND ACRONYMS
CDD Community Driven Development CEA Consolidated Environmental Assessment CPS Country Partnership Strategy CWRAS Country Water Resources Assistance Strategy DA Designated Account DRC Development and Reform Commission DSP Dam Safety Panel DSR Dam Safety Report EA Environmental Assessment EG Expert Group EIA Environmental Impact Assessment EIRR Economic Internal Rate of Return EMP Environmental Management Plan EMDP Ethnic Minorities Development Plan EP Expert Panel EPB Environment Protection Bureau EPP Emergency Preparedness Plan ET Evapotranspiration FB Finance Bureau FMS Financial Management Specialist FMM Financial Management Manual FSR Feasibility Study Report FY Fiscal Year GOC Government of China ICB International Competitive Bidding ICR Implementation Completion Report IPM Integrated Pest Management KM Knowledge Management MBD Model Bidding Document MIS Management Information System FMM Financial Management Manual MOF Ministry of Finance MTR Mid-Term Review MWR Ministry of Water Resources
M&E Monitoring & Evaluation NBET Non-Beneficial Evapotranspiration NCB National Competitive Bidding NDRC National Development and Reform Commission O&M Operation and Maintenance OMS Operation, Maintenance, and Surveillance PAP Project Affected People PDO Project Development Objective PIP Project Implementation Plan PMP Pest Management Plan PLG Project Leading Group PLGO Project Leading Group Office PMO Project Management Office PMP Pest Management Plan QBS Quality Based Selection QCBS Quality and Cost Based Selection RAP Resettlement Action Plan RS Remote Sensing SA Social Assessment SBD Standard Bidding Document SIL Specific Investment Loan SOE Statement of Expenditure SSS Single-Source Selection TTL Task Team Leader VSL Variable Spread Loan WA Withdrawal Application WRB Water Resources Bureau WUA Water User Association XFB Xinjiang Finance Bureau XUAR Xinjiang Uygur Autonomous Region
Vice President: Mr. James W. Adams, EAPVP Country Director: Mr. Klaus Rohland, EACCF Sector Director: Mr. John Roome, EASSD Sector Managers: Mr. Ede Jorge Ijjasz-Vasquez, EASCS, Mr. Vijay Jagannathan, EASIN Task Team Leader: Mr. Liping Jiang, EASCS
CHINA XINJIANG TURPAN WATER CONSERVATION PROJECT
CONTENTS
Page
I. STRATEGIC CONTEXT AND RATIONALE ...... 1 A. Country and sector issues...... 1 B. Rationale for Bank involvement ...... 3 C. Higher level objectives to which the project contributes ...... 4 II. PROJECT DESCRIPTION ...... 5 A. Lending instrument ...... 5 B. Project development objective and key indicators ...... 5 C. Project components ...... 5 D. Lessons learned and reflected in the project design ...... 7 E. Alternatives considered and reasons for rejection ...... 8 III. IMPLEMENTATION ...... 9 A. Institutional and implementation arrangements ...... 9 B. Monitoring and evaluation of outcomes/results ...... 10 C. Sustainability...... 11 D. Critical risks and possible controversial aspects ...... 11 E. Loan conditions and covenants ...... 12 IV. APPRAISAL SUMMARY ...... 13 A. Economic and financial analyses ...... 13 B. Technical ...... 14 C. Fiduciary ...... 14 D. Social...... 15 E. Environment ...... 15 F. Safeguard policies ...... 16 G. Policy exceptions and readiness ...... 19
Annex 1: Country and Sector or Program Background...... 20
Annex 2: Major Related Projects Financed by the Bank and/or other Agencies . 27
Annex 3: Results Framework and Monitoring ...... 28
Annex 4: Detailed Project Description ...... 32
Annex 5: Project Costs ...... 43
Annex 6: Implementation Arrangements...... 45
Annex 7: Financial Management and Disbursement Arrangements ...... 51
Annex 8: Procurement Arrangements ...... 62
Annex 9: Economic and Financial Analysis ...... 71
Annex 10: Safeguard Policy Issues ...... 77
Annex 11: Project Preparation and Supervision ...... 89
Annex 12: Documents in the Project File ...... 90
Annex 13: Statement of Loans and Credits ...... 91
Annex 14: Country at a Glance ...... 98
Annex 15: Maps of Project Sites ...... 100
IBRD 37494_Xinjiang Uygur Autonomous Region, China IBRD 37495_Turpan Prefecture/River Basin, Xinjiang Uygur Autonomous Region IBRD 37496_Turpan City Project Areas, Turpan Prefecture IBRD 37497_Tuokexun County Project Areas, Turpan Prefecture IBRD 37498_Shanshan County Project Areas, Turpan Prefecture
CHINA
XINJIANG TURPAN WATER CONSERVATION PROJECT
PROJECT APPRAISAL DOCUMENT
EAST ASIA AND PACIFIC
EASCS
Date: May 19, 2010 Team Leader: Liping Jiang Country Director: Klaus Rohland Sectors: Flood protection (30%); Irrigation Sector Director: John Roome and Drainage (60%); Crops (10%) Sector Managers: Ede Jorge Ijjasz-Vasquez, Themes: Water resource management (P); EASCS; Vijay Jagannathan, EASIN Other rural development (S) Project ID: P111163 Environmental screening category: Full Assessment Lending Instrument: Specific Investment Loan
Project Financing Data [X] Loan [ ] Credit [ ] Grant [ ] Guarantee [ ] Other:
For Loans/Credits/Others: Total Bank financing (US$m.): 100.00 Proposed terms: Variable spread IBRD Flexible Loan (IFL), payable in 24 years including 10 years of grace period, with level repayment of principal on a semi-annual basis. Financing Plan (US$m) Source Local Foreign Total Borrower 104.08 0 104.08 IBRD 77.18 22.82 100.00 Total: 181.26 22.82 204.08 Borrower: Ms. Wang Wei, Director IF Division I Ministry of Finance, People's Republic of China San Li He, Beijing, China; 100820 Tel: +86 10 68551174; Fax: +86 10 68551125 Email: [email protected]
Responsible Agency: Mr. Cao Peiwu, Director Turpan Prefecture Water Resources Bureau Government of Xinjiang Uygur Autonomous Region Tel: +86 0995 6255579; Fax: +86 0995 6255289 Email: [email protected]
CY 2011 2012 2013 2014 2015 2016 2017 Annual 10 20 25 25 18 2 0 Cumulative 10 30 55 80 98 100 100 Project implementation period: Start: September 30, 2010; End: September 30, 2016 Expected effectiveness date: September 30, 2010 Expected closing date: March 31, 2017
Does the project depart from the CAS in content or other significant [ ]Yes [X] No respects? Ref. PAD I.C. Does the project require any exceptions from Bank policies? Ref. PAD IV. G. [X]Yes [ ] No Translation Waiver: In accordance with the revised guidelines on English translation waiver (March 2008), the Environmental Impact Assessment (EIA), the associated Environmental Management Plan (EMP), and the Resettlement Action Plan (RAP) for each project component were developed in the Chinese language. These have been reviewed by Bank staff who are native Chinese speakers, and found acceptable to the Bank. The Consolidated Environmental Assessment (CEA) Report and the
Consolidated RAP have been translated into English, and have been reviewed and approved by the Bank. The English language CEA Report and the Consolidated RAP have been disclosed through the Bank's Infoshop, while the Chinese language EIAs, EMPs, and RAPs have been disclosed in China. Ref. PAD D.7 Have these been approved by Bank management? [X]Yes [ ] No Is approval for any policy exception sought from the Board? [ ]Yes [X] No Does the project include any critical risks rated “substantial” or “high”? [X]Yes [ ] No Ref. PAD III.D. Does the project meet the Regional criteria for readiness for [X]Yes [ ] No implementation? Ref. PAD IV.G.
Project development objective (Ref. PAD II.B. Technical Annex 3) The Project Development Objective (PDO) is to mitigate the risk of flooding, reduce groundwater overdraft, increase industrial and domestic water supply, and raise farmers’ income from irrigated agriculture in the arid Turpan Basin of Xinjiang Uygur Autonomous Region. Project description (Ref. PAD II.C. Technical Annex 4) Component 1: ET-based Integrated Water Management in the Turpan Basin Carrying out of an integrated river basin management program for the Turpan River Basin including, inter alia: (a) implementation of measures for the management of consumptive use in a basin-wide basis, supported by an internet-based knowledge management system with the ET data measured by remote sensing technology to derive and allocate the annual targets of consumptive use of water for industrial, domestic, agriculture and ecosystem uses in each city/county; (b) assessment of the inter-seasonal connections of water availability for irrigation to farmers (including the change of the upstream inflows to reservoirs due to the possible increase of snow melting in the mountain areas) due to climate change, and identification of changes needed to the operational rules of reservoirs as per the results of such assessment; (c) development of a supplementary plan to the Irrigated Agriculture Water-Saving Program to allow for the rational allocation of ET targets for irrigated agriculture at the Basin level to the respective county, and then to the township and WUA level; (d) establishment of at least 43
WUAs; and (e) establishment of a new water rights system based on consumptive use and compensation programs for reallocation of consumptive use.
Component 2: Increase of Upstream Storage Capacity Construction of (a) the Alagou Dam; (b) the Meiyaogou Dam; and (c) the Ertanggou Dam.
Component 3: Real Water Savings in Irrigated Agriculture Carrying out of irrigation management measures in the Turpan River Basin including inter alia: (a) engineering measures such as construction or rehabilitation of the main canals delivering water from the three new reservoirs to water users downstream, a switch from furrow to drip irrigation, land leveling, canal lining, and improved drainage; (b) agronomic measures such as cropping pattern changes, plant breeding, soil fertility and fertilization, soil salinity control, plastic-culture with mulching, tunnels and greenhouses, and tillage and weed control; and (c) other irrigation management measures such as irrigation scheduling, volumetric water charges, increase of water charges, and the conjunctive use of surface and groundwater.
Component 4: Preservation of a Karez System Rehabilitation of a Karez Water System in Turpan City.
Component 5: Institutional Capacity Building and Project Management Provision of technical assistance and support for Project management, including, inter alia: (a) training, workshops, and domestic and overseas study tours on integrated water resources management, the ET management concept, management of irrigation water with ET-based irrigation water rights, the formation and functioning of WUAs in the areas of the Turpan River Basin irrigation areas, monitoring and evaluation, management information systems, operation and maintenance for irrigation systems, and the safeguards, procurement and financial management requirements of the Project; (b) provision of office equipment for Project management and supervision; (c) carrying out of measures for the enforcement of the new water rights system to be established under the Project; and (d) support for Project management and supervision. Which safeguard policies are triggered, if any? (Ref. PAD IV.F., Technical Annex 10) (a) Environmental Assessment (OP/BP 4.01); (b) Natural Habitats (OP/BP 4.04) (c) Pest Management (OP 4.09); (d) Indigenous Peoples (OP/BP 4.10); (e) Physical Cultural Resources (OP 4.11); (f) Involuntary Resettlement (OP/BP 4.12); and (g) Safety of Dams (OP/BP 4.37) Significant, non-standard conditions (Ref. PAD III, E) Negotiations and Board presentation: None Loan effectiveness: None Disbursement Condition: None Covenants applicable to project implementation:
(a) Maintain the PLG and PLGO at the regional level and PLGs, PMOs and EGs at the prefecture and county levels throughout implementation with qualified and adequate staff;
(b) Not later than two months after the Effective Date, establish a financial and procurement management information system acceptable to the Bank; (c) Not later than December 31, 2011 establish the internet based system referred to in Component 1(a) of the project and commence to monitor and evaluate the ET variations and water allocations in the entire Turpan River Basin; (d) Not later than December 31, 2012 have the ET-based supplementary plan referred to in Component 1(c) of the Project approved by the Prefecture and effective; (e) Not later than December 31, 2013 establish in the Prefecture the ET-based water rights system referred to in component 1(e) of the project and make such system applicable to the management plans to be carried out under the project; (f) Not later than as indicated in the monitoring indicators set forth in the Annex 3 of the PAD, establish and thereafter maintain, at least 43 WUAs to be responsible for the operation and maintenance of the on–farm irrigation works supported by the project; and (g) Not later than December 31, 2010: (i) establish, and thereafter maintain, an ET management center to manage the activities referred to in component 1(a) of the project as a public service agency of the Prefecture and reporting directly to the Prefecture Chief, (ii) staff such center with at least 6 professionals qualified in ET management, and (iii) equip the center as needed.
I. STRATEGIC CONTEXT AND RATIONALE
A. Country and sector issues
1. Due to a widening gap between increasing water demand and limited supplies, water scarcity in China is becoming an increasingly severe - especially in semi-arid and arid areas such as the Xinjiang Uygur Autonomous Region in the northwestern part of the country. China’s leadership is aware of the deepening crisis, and is committed to transforming the country into a water-saving society. The 11th Five-Year Plan (2006-10) sets a number of policy goals and priorities for water resources management, including: (a) adopting a better coordinated management system; (b) shifting from supply-side to demand-side management; and (c) integrating river basin management with regional management.
2. With irrigated agriculture accounting for about 65 percent of water use, the Government of China (GOC) concluded that reducing water use in the agricultural sector is essential to accommodate growing demands from other sectors, while at the same time ensuring food security for a growing population. One of the initiatives that has been supported since the mid-1990s by the Ministry of Water Resources (MWR) and provincial agencies is the National Irrigated Agriculture Water-Saving Program. In order to increase agricultural production, it focuses on rehabilitating irrigation and drainage systems and promoting various water-saving technologies, such as canal lining and sprinkler and drip irrigation. Government policy also recognized the need for institutional reform, including increasing farmer participation and ownership in irrigation, and strengthening organizations responsible for operation and maintenance (O&M).
3. While impressive achievements have been made under the Program, including an increase in irrigated area and crop yields, experience has shown in China and in other parts of the world that investments that only target improving water delivery structures and irrigation technologies do not necessarily achieve ‘real’ water savings. This is because they usually do not reduce agricultural consumptive use, or evapotranspiration (ET)1. They can significantly reduce the amount of water that needs to be withdrawn from rivers and/or aquifers, and that needs to be applied to an irrigated area, but correspondingly also reduce the return flows2. If the perceived ‘savings’ from interventions such as canal lining or modernization of on-farm technology are used to increase the irrigated area or provide more water for other consumptive uses, overall water consumption in a basin may even increase and worsen the scarcity situation. Thus while the introduction of modern irrigation technologies provides a number of advantages, such as greater ease of growing higher value crops (which often require more precise irrigation scheduling) and reduced labor requirements, they commonly increase
1 ET is a term that is used for the consumptive use of water in agriculture. It describes the sum of the amount of water that is evaporated, transpired and, to a small extent, incorporated into plant products. Evaporation accounts for the movement of water from the ground surfaces to the atmosphere, including from the soil, canopy interception, and water bodies. Transpiration accounts for the movement of the water from plant leaves to the atmosphere. 2 Return flows comprise the amount of water that returns to rivers as runoff or percolates into underlying groundwater deposits and, thus, becomes available to downstream users. 1
water consumption. In many parts of China, surface and groundwater overexploitation from irrigated agriculture has not been reduced by modernization of irrigation structures and technologies, and the related ecological and environmental problems are intensifying.
4. The Turpan Prefecture is located in the eastern part of Xinjiang Uygur Autonomous Region, one of the poorest, most remote and most arid provinces in China. The Prefecture has a total area of about 70,000 km2 and a population of nearly 600,000, of whom 72% are Uygurs and a further 6% belong to other ethnic minorities. The annual per capita net income is around US$440, ranking eighth from the bottom on the national rural income list; 70% of the workforce depends on agriculture. The Turpan Basin covers about 95 percent of the Prefecture. Surrounded by mountain ranges with snow-covered peaks that reach over 5,000 meters in the north, the Turpan Basin also contains in its southern part the second lowest point on earth, 155 meters below sea level - a salt swamp called Lake Aiding. Most of the Basin has a hot and arid continental climate. Precipitation in the plain area averages less than 20 mm annually, while potential evaporation reaches 3,000 mm.
5. The water resources (both surface and ground water) of the Turpan Basin originate in the mountainous areas in the basin’s north and west, and are fed by snowmelt and rainfall. Away from sources of water, the land is barren. Very few of the rivers are perennial. Groundwater feeds natural springs, supporting oasis systems in the northern part of the basin. This area has been part of long-established natural trade routes, including the fabled Silk Road. Traditionally, agriculture has been irrigated either from rivers that originate in the mountainous areas in the north and west, or from Karez water supply systems1. The Karez systems of the Turpan Basin date back more than 2,000 years and rate, along with the Great Wall and the Grand Canal, as one of ancient China’s greatest public works projects.
6. The Turpan Basin is famous for its fruits, in particular grapes and melons which as a result of the climate have very high concentrations of sugar. Another important crop is cotton. During the last four decades, the irrigated area in the Turpan Basin has been expanded from 60,000 ha in 1970 to 113,000 ha (or about 1.7 million mu)2 in 2008 through the construction of reservoirs and canals, application of improved irrigation technologies in the cropping areas, and in particular, drilling of wells. While this has contributed to a large increase in agricultural production, the negative effects are now becoming increasingly obvious. Continuous improvements in irrigation technologies have allowed expansion of the irrigated areas, and consequently increased ET. Basin- wide, water consumption now exceeds renewable supplies and contributes to severe groundwater overexploitation in the Turpan Basin. On average, groundwater tables are
1 A typical Karez system in the Turpan Basin includes several vertical wells (for ventilation, digging and maintenance of the Karez), an underground tunnel carrying the water to surface canals, and a small reservoir from where the farmland is irrigated. It collects water from the surface runoff from the base of the Tianshan Mountains and the nearby Flaming Mountains in the northern and western part of the basin, and relies on gravity to transport the water to the lower lying villages and agricultural fields. By being mostly underground, it prevents ET of large amounts of water. 2 15 mu equal to 1 hectare.
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declining by 1.5 to 2 meters per year, and in some areas have fallen up to 180 meters. Of the 1,237 Karez systems that existed in 1957, less than 300 systems have running water today. The disappearance of the Karez system has contributed to the degradation of the oasis ecosystems. Lake Aiding is now dry during most of the year. With about 95 percent of the water used in agriculture, it is difficult to satisfy increasing water demands in other sectors, particularly industry. The expansion of petroleum, natural gas and coal production, which will require a significant amount of water consumption, is considered important to the economic and social development of the region.
7. An additional concern in the Turpan Basin is the annual threat of flooding from mountain flash storm or snowmelt. For example, in the flood disaster of 1996 thousands of people were made homeless, and the direct economic losses alone were estimated to amount to US$67 million. Most of the basin’s flood water, instead of being stored and utilized, is largely wasted through evaporation as it flows to downstream deserts.
8. As a result of these concerns, the 11th Five-Year Plan (2006-10) of Turpan Prefecture puts the highest priorities on water resources development and management, and the reduction of groundwater overdraft and ecosystem degradation. This also involves flood disaster mitigation, development of intensive irrigated agriculture for higher water productivity, allocation of more water for industrial development, and reduction of the irrigated area in the Prefecture. The project is designed to be an integral part of this plan.
B. Rationale for Bank involvement
9. The proposed project supports the Bank’s China Country Partnership Strategy (CPS) for the fiscal years 2006-2010 which aims to reduce poverty and manage resource scarcity. It is also in line with the Bank’s 2002 Country Water Resources Assistance Strategy (CWRAS) which identified integrated water resources management at the basin level as a critical area for Bank support, with both structural and non-structural measures. CWRAS emphasized that non-structural measures needed to incorporate both top down and bottom activities, as well as horizontal and vertical linkages. Important top-down activities include establishment of laws, policies, regulations, standards and water allocations, while bottom-up activities include working with counties and townships, villages and individual water users, to achieve sustainable utilization of water resources and increase water productivity. Horizontal integration comprises cross-sectoral cooperation and coordination of actions, and vertical integration includes direct linking and constant interaction between the central, basin and local activities. The project addresses many of these issues.
10. The project supports the Bank’s unique role in China’s water resources management which has focused on piloting innovative approaches with spillover benefits far greater than the direct benefits of the project itself. It is based on findings of two water-related studies carried out in 2008 (on Economic Value of Water, and on Water Rights Administration in China), and builds on the success and lessons of recent Bank
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funded projects in China1. The project incorporates and expands on the innovations introduced in the earlier projects. It will pilot the promotion of integrated water management based on ET management - applying remote sensing for measuring and monitoring ET, and introducing basin-wide planning and allocation of water for the different sectors and users based on consumptive use targets.
11. The project will also promote real water savings in irrigated agriculture with a combination of on-farm measures-engineering, agronomic, and management practices. With the Turpan Basin being a semi-closed basin, this approach will contribute to a reduction of the severe groundwater overdraft and the reallocation of water to higher value uses, including industry. Another innovative approach will be the introduction of a new water rights system that is formulated not only in the traditional way of withdrawals, but also in terms of consumptive uses. The establishment of water user associations (WUAs) in project irrigation areas will encourage the participation of ethnic minority farmers in the process of project design, construction, supervision, O&M, and ET-based water rights implementation, and build ownership of project outputs in the longer term. A further innovation will be the use of data on ET reductions in irrigated agriculture as a key indicator of project success. Changes in ET will be measured by state-of-the-art remote sensing technology, and will be used as an input to gradually adjust annual consumptive use targets for the main sectors (such as agriculture, industry, and domestic use) and users at the basin, county, and township and WUA levels.
C. Higher level objectives to which the project contributes
12. The higher level objectives to which the proposed project contributes are: (a) to help fundamentally change the economic growth pattern of the Turpan Prefecture from its current reliance on the severe overexploitation of groundwater resources of the Turpan Basin, with devastating effects on the fragile oasis ecosystems and important cultural heritage sites, to a more sustainable basis of sound integrated water resources planning and management; and (b) to showcase an innovative approach to basin water management that allows for the conservation of water resources while contributing to an increase in agricultural water productivity, measured in terms of ET.
13. The project is consistent with China’s 11th Five-Year Program and with the Bank’s CPS. The project addresses two of the five CPS “pillars”, namely reduction in
1 Under the Tarim Basin II Project, implemented in southern part of Xinjiang from 1999-2004, the traditional approach of managing irrigation water withdrawals was replaced with the concept of managing consumptive use (or ET), and measures for achieving consumptive use reductions, and thus real water savings were promoted. Under the Water Conservation Project, implemented in the North China Plain from 2001-2006, the focus was on achieving real water savings on-farm. Instead of the traditional approach of relying solely on engineering measures (such as switching to improved irrigation technologies), the project successfully promoted a more effective combination of engineering, agronomic, and irrigation management approaches. Finally, under the ongoing GEF supported Hai Basin Integrated Water and Environment Management Project, an innovative consumptive use management system was introduced at the basin level with remote sensing as a monitoring tool. The aim has been to achieve real water savings to eliminate groundwater overdraft and provide more surface water for ecological purposes. 4
poverty, inequality and social exclusion (pillar 2), and management of resource scarcity and environmental challenges through conserving water resources (pillar 3).
II. PROJECT DESCRIPTION
A. Lending instrument
14. The Project would be financed by an IBRD Specific Investment Loan (SIL) in the amount of US$100 million. The Bank Loan will be on standard IBRD terms for a LIBOR-based US Dollar denominated single currency variable spread loan (VSL), payable in 24 years, including 10 years of grace, and annuity principal repayment, which is consistent with the Borrower’s choice of similar Bank financed projects.
B. Project development objective and key indicators
15. The project development objective (PDO) is to mitigate the risk of flooding, reduce groundwater overdraft, increase industrial and domestic water supply, and raise farmers’ income from irrigated agriculture in the arid Turpan Basin of Xinjiang Uygur Autonomous Region. The PDO will be achieved through an innovative approach involving basin-wide ET management supported by integrated water resources planning and allocation that will support socio-economic development but also help preserve the oasis ecosystems and the ancient Karez systems in the Turpan Basin.
16. The main project outcome indicators would be: (a) number of the people with improved flood protection increased; (b) economic losses from flooding mitigated; (c) groundwater overdraft reduced in project irrigation areas, and the basin; (d) water supply capacity for industrial and domestic uses in consumptive use terms increased in project irrigation areas, and the basin; (e) water productivity in irrigated agriculture, measured in terms of evapotranspiration (ET), increased in project irrigation areas; and (f) farmers’ per-capita net income from irrigated agriculture increased in the project irrigation areas.
C. Project components
17. The total project financing required is US$204.08 million, with financing from IBRD of US$100.00 million. The Government of Xinjiang Uygur Autonomous Region, Turpan Prefecture, and its two counties and one county-level city would finance the balance. The PDO would be achieved through the implementation of five components as described in the subsequent paragraphs.
Component 1: ET-based Integrated Water Management in the Turpan Basin (US$2.156 million)
18. Carrying out of an integrated river basin management program for the Turpan River Basin including, inter alia: (a) implementation of measures for the management of consumptive use in a basin-wide basis, supported by an internet-based knowledge management system with the ET data measured by remote sensing technology to derive and allocate the annual targets of consumptive use of water for industrial, domestic,
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agriculture and ecosystem uses in each city/county; (b) assessment of the inter-seasonal connections of water availability for irrigation to farmers (including the change of the upstream inflows to reservoirs due to the possible increase of snow melting in the mountain areas) due to climate change, and identification of changes needed to the operational rules of reservoirs as per the results of such assessment; (c) development of a supplementary plan to the Irrigated Agriculture Water-Saving Program to allow for the rational allocation of ET targets for irrigated agriculture at the Basin level to the respective county, and then to the township and WUA level; (d) establishment of at least 43 WUAs; and (e) establishment of a new water rights system based on consumptive use and compensation programs for reallocation of consumptive use.
19. With the aim of facilitating the prefecture government’s decision to improve water allocation in the Turpan Basin and reduce groundwater overdraft, an innovative integrated basin-wide water management program will be developed and applied that closely links targets for consumptive use of water at the basin-level with the respective targets for consumptive use of water at the county, township, and water users association (WUA) levels.
Component 2: Increase of Upstream Storage Capacity (US$142.534 million)
20. Construction of: (a) the Alagou Dam; (b) the Meiyaogou Dam; and (c) the Ertanggou Dam.
21. In order to improve flood control in the three main watersheds of Turpan Basin, increase water supplies downstream, and maintain minimum ecological river flows, one small and two medium reservoirs will be constructed in narrow river valleys of the northern mountainous part of the Prefecture: Alagou reservoir in Tuokexun County (with 46 million m3 total and 31 million m3 regulating storage capacity); Meiyaogou reservoir in Turpan city (with 8 million m3 total and 5 million m3 regulating storage capacity); and Ertanggou reservoir in Shanshan county (with 25 million m3 total and 19 million m3 regulating storage capacity). The increased storage capacity will help reduce non- beneficial evaporation in downstream areas during the three-month flood season in early summer, and may also reduce groundwater recharge (which in turn may be largely offset by recharge from the areas irrigated from the controlled releases). These changes will be considered in the basin-wide management of consumptive use.
Component 3: Real Water Savings in Irrigated Agriculture (US$39.551 million)
22. Carrying out of irrigation management measures in the Turpan River Basin including inter alia: (a) engineering measures such as construction or rehabilitation of the main canals delivering water from the three new reservoirs to water users downstream, a switch from furrow to drip irrigation, land leveling, canal lining, and improved drainage; (b) agronomic measures such as cropping pattern changes, plant breeding, soil fertility and fertilization, soil salinity control, plastic-culture with mulching, tunnels and greenhouses, and tillage and weed control; and (c) other
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irrigation management measures such as irrigation scheduling, volumetric water charges, increase of water charges, and the conjunctive use of surface and groundwater.
23. The combination of the above measures will allow a reduction in the currently high irrigation water allocations, and decrease non-beneficial evaporation in canals and on-farm. They will be accompanied by strict measures to stop the expansion of irrigated areas, so that groundwater abstractions will decrease in the project irrigation areas in Tuokexun County, Turpan City, and Shanshan County (covering a total of 10,763 ha, or about 10 percent of the total irrigated area in the basin). Some of these areas, which in the past have been irrigated with groundwater, will be supplied with surface water from the new or rehabilitated canals. A number of groundwater wells will then be shut down.
Component 4: Preservation of a Karez System (US$0.503 million)
24. Rehabilitation of a Karez Water System in Turpan City.
25. One of the around 300 ancient Karez water supply systems that continue to be in use in the Turpan basin will be rehabilitated. The selected Karez system is in Turpan City with a flow capacity of 0.014 m3 /s and a length of 2.8 km, including culverts of 2.7 km, open channels of 0.18 km, and 14 vertical wells. This will be the first application of this approach in Turpan Prefecture, and is intended to serve as a pilot for preserving more of the still remaining ancient water supply systems.
Component 5: Institutional Capacity Building and Project Management (US$1.889 million)
26. Provision of technical assistance and support for Project management, including, inter alia: (a) training, workshops, and domestic and overseas study tours on integrated water resources management, the ET management concept, management of irrigation water with ET-based irrigation water rights, the formation and functioning of WUAs in the areas of the Turpan River Basin irrigation areas, monitoring and evaluation, management information systems, operation and maintenance for irrigation systems, and the safeguards, procurement and financial management requirements of the Project; (b) provision of office equipment and off-road working vehicles for Project management and supervision; (c) carrying out of measures for the enforcement of the new water rights system to be established under the Project; and (d) support for Project management and supervision.
D. Lessons learned and reflected in the project design
27. Over the past two decades, the Bank has assisted in financing over 50 water resource and irrigation and drainage projects in China. Generally, these projects have been implemented efficiently, and time and cost overruns have not been excessive despite periods of sharp price escalation. Projects with similar elements to this project are listed in Annex 2. Key lessons learned from past projects, which have been reflected in the design and preparation of the proposed project, include:
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(a) Water resources management needs to have top-down and bottom-up aspects, as well as vertical and horizontal integration; (b) Real water savings in irrigated agriculture requires a reduction in consumptive use; (c) International and national consultants and technical panels can substantially improve the design of infrastructure works, economic impact assessment, and resettlement planning and design; (d) People affected by a project should be involved from the early stages of project preparation and throughout the implementation period, in order to ensure that their support is gained and maintained; (e) Detailed organizational and staffing arrangements for project coordination, management and implementation, with a focus that strongly links PMOs and administrative departments, should be formulated and agreed before the start of project implementation; (f) Training on procurement and financial management should start early in the preparation period and continue throughout implementation; and (g) Counterpart funding including bridge funding should be committed and included in the governments’ annual financial budget before project implementation, and counterpart funds required from poor counties should be minimized.
28. Other key factors identified by the Bank as being important for project success, such as strong government commitment and ownership, beneficiary participation, realistic O&M plans with cost recovery fees, and a well-designed M&E system, have also been reflected where appropriate in the design of the project.
29. Climate change projections for the western part of China indicate that droughts are likely to be more frequent in the next 20-25 years. Project activities, especially those under Components 1 and 3, which are designed to reduce the current imbalance between water consumption and renewable supply, will also help to cope with drought conditions. For the planning of the three new reservoirs under Component 2, existing studies on the expected impact of climate change on the snowmelt from the mountains especially in the northern and western part of the Turpan Basin, have been reviewed, and the results incorporated in the reservoir design. Furthermore, the water consumption balance, which will be estimated annually at the basin as well as lower levels, will be used as an adaptive planning tool for setting ET targets that intend to ensure that groundwater overdraft is reduced and water made available for higher value uses, including for industrial and domestic uses but also for ecosystem restoration. In addition, remote sensing activities under Component 1 will incorporate benchmarking and trend measurements on snow pack and glaciers, to support identification and quantification of climate change impacts and will provide the basis for Turpan Prefecture to develop further adjustment measures.
E. Alternatives considered and reasons for rejection
30. The approach based on traditional analysis of the supply and demand for water, which tends to focus interventions on modernizing water infrastructure and on-farm irrigation technologies - often without achieving real water savings, was initially
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discussed. A more innovative approach was chosen, using the principles of ET-based integrated water management at the basin-level. This approach incorporates elements of the traditional approach (such as the enhancement of water storage capacity for flood control and increased water supply), and introduces new features (such as ET-based water resource planning and monitoring, supported by remote-sensing) that take into account water consumption at the basin level and have the potential for generating real water savings.
31. During the preparation of the technical aspects of the project, different options were analyzed, and the less attractive alternatives have been rejected. Among these are: upstream dam site (selected) versus downstream dam site; overflow spillway (selected) versus flood diversion tunnels; pressure steel pipelines versus rehabilitation of canal systems for drip irrigation (selected); and pilot restoration of a Karez system based on the more rigorous requirements of the Prefecture Cultural Relics Bureau (selected) versus the restoration of several Karez systems. Details of the comparison analyses are included in the Feasibility Study Reports.
III. IMPLEMENTATION
A. Institutional and implementation arrangements
32. About 95 percent of the administrative area of Turpan Prefecture in the Xinjiang Uighur Autonomous Region comprises the Turpan Basin which is the focus of the project. Turpan Prefecture includes two counties (Tuokexun and Shanshan) and a county level city (Turpan). The proposed organizations for project management and implementation have been established at the regional, prefecture and county levels. Detailed responsibilities and an organizational chart for project management and implementation are presented in Annex 6.
33. Regional Level. At the regional level a Project Leading Group (PLG) and Project Leading Group Office (PLGO) have been set up. The PLG is chaired by an Assistant Chairman of the Regional Government and consists of leaders from the responsible regional government departments, responsible for overall leading in Project implementation, decision making on key Project issues and interagency coordination at the Regional level. The PLGO is chaired by the Deputy Director General of the regional Water Resources Bureau. The PLGO consists of division chiefs from the responsible regional government departments and the prefecture Water Resources Bureau. The PLGO is responsible for daily Project coordination, supervision and the provision of advice on Project implementation, and dissemination of the Project innovations to other parts of Xinjiang
34. Prefecture Level. At the prefecture level a PLG, a Project Management Office (PMO), an Expert Group (EG), and a Dam Safety Panel (DSP) have been established. The prefecture PLG is chaired by the Party Secretary of Turpan Prefecture and consists of leaders from the responsible departments of the prefecture and the three county governments. It reports to the regional PLG, and will be responsible for leading in project implementation, decision making on key Project issues and interagency coordination at 9
the prefecture level. The prefecture PMO is chaired by the Director of the Prefecture Water Resources Bureau, and consists of the responsible leaders from the county level Water Resources Bureaus. It reports to the prefecture PLG, and will be responsible for project management and implementation. The EG will provide technical support to the prefecture PMO. The DSP will assist in ensuring that the project is implemented in compliance with the Bank’s policy on Safety of Dams (OP 4.37) under terms of reference satisfactory to the Bank.
35. County Level. In each of the two counties and the county level city, a PLG, a PMO, and an EG have been established. Each county PLG is chaired by the respective Party Secretary of the county or city, and consists of the leaders from the responsible county government agencies. The county PLG will be responsible for leading project implementation, decision making on key project issues, and interagency coordination at the project counties/city level. Each county PMO is chaired by the Director of the respective county Water Resources Bureau, and consists of the responsible leaders or staff from the water management stations or agricultural extension center of the township government. It will report to both the prefecture PMO and the county PLG, and be responsible for project management and implementation at the county level. Each county EG will facilitate the respective county PMO to carry out its responsibilities.
B. Monitoring and evaluation of outcomes/results
36. The prefecture PMO will set up a computer-based Procurement and Financial Management Information System (MIS) to support sound project implementation management. The MIS will allow close monitoring of project procurement, financial transactions, and timely disbursement of funds.
37. The prefecture PMO will also be responsible for designing and putting in place suitable M&E system, satisfactory to the Bank, with a focus on measuring project outcomes and impact. The prefecture PMO, supported by its Expert Group, will prepare the general design of the M&E system, and each county PMO will carry out data collection and processing in accordance with the general design. The prefecture PMO will consolidate data project-wide, and lead the preparation of periodic progress reports. Indicators for project outcome and intermediate outcomes, including their respective definition, as well as measuring and computing methods, are in Annex 3. A key indicator under the project will be the planning, monitoring and management of the consumptive water use by the different sectors and users in the Turpan Basin, supported by RS-based ET measuring technologies. Under Component 1, the prefecture PMO will be technically assisted by consultants in ET management at the basin, county, township, WUA levels, and an ET management center will be established during project implementation to carry out these tasks continuously after project completion.
38. M&E reports will be submitted to the Bank annually. A mid-term review (MTR) report of the project will be prepared and provided to the Bank before December 31, 2013, and an implementation completion report (ICR) upon project completion in 2015.
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C. Sustainability
39. The strategic policies of GOC, as well as of the regional and prefecture governments, support the attainment of the project objectives, and all levels of government have strong ownership of the project. The national policy on the development of western areas requires that expediting economic growth should not result in further environmental degradation. The regional government is strongly committed to ecosystem protection. The Bank supported Tarim Basin II Project led the successful implementation of a water conservation program in upstream irrigated areas in order to deliver additional water to a green corridor downstream, and helped to protect the environment. At the prefecture level, the current 11th Five-Year Plan (2006-2010) proposes detailed measures to speed up social and economic development and reduce groundwater overdraft and ecosystem degradation, including increasing water supply for industries and reducing irrigated area in the prefecture. More recently, a number of far- reaching measures have been adopted to improve groundwater management and reduce overdraft. With the project design closely aligned to these goals, the prefecture government has requested that all subcomponents of Component 1 be expanded to cover the entire Turpan basin to allow government investments to complement the project activities that focus on selected irrigation areas. The prefecture government has also decided to establish an ET management center to ensure that the ET-based innovations introduced by the project will be institutionalized.
40. The project is designed to be sustainable and replicable through the establishment of policies and regulatory and institutional frameworks for more environmentally sustainable economic growth and resource management. These policies and frameworks will be reviewed, and approved and issued as official documents for implementation by the Turpan Prefecture beyond completion of the project, and also extended to other parts of the Xinjiang Uygur Autonomous Region by the Regional Water Resources Bureau.
D. Critical risks and possible controversial aspects
41. The overall risk rating of the project is substantial. Below is a summary of the project risks and mitigation measures.
Risk Rating Risks Risk Mitigation Measures with Mitigation To project development objective The project worsens the ongoing Adoption of the integrated water management M groundwater overdraft, and leads approach in the Turpan Basin will gradually reduce to a further degradation of the groundwater overdraft, and help preserve the ecosystems and cultural heritage oasis ecosystems, as well as the Karez systems as sites. important cultural heritage. The project is not implemented The project M&E will be implemented with Bank M according to design, and its financing and the results will be used to guide objectives are not achieved. project implementation, as well as for higher level
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strategic dialogue between the borrower and the Bank. Project innovations and lessons The regional Water Resources Bureau and its S are not used for scaling up in Design Institute have been closely involved in other parts of the region due to project preparation, and will be in implementation, the continued dominance of the in order to encourage them to incorporate the traditional approach for water innovations into the regional program for water resources management. resources planning and management. To component results Counterpart funds (CPFs) are not Ensure that annual plans include adequate S allocated in a timely manner, monitoring of government commitments and particularly at the county level. releases of CPFs, and that CPFs are included as a line item in the annual budgets at both the prefecture and county levels. Bank guidelines for procurement Ensure that sufficient training in Bank guidelines M and financial management are not for procurement and financial management is well followed. provided to project staff, and that the MIS is used during project implementation. The requirements under EMP, Ensure that EMP, PMP, DSR and RAP are S PMP, DSR and RAP are not prepared with local ownership, and those annual adequately funded and carried plans, including budgets, are submitted to the Bank out. for review and approval together with the annual investment plans. The special interests of vulnerable Ensure that EMDP is prepared during project M groups, including ethnic preparation, and that ethnic farmers participate in minorities, women and poorer the process of project design, construction, farm households, are not supervision, and O&M. adequately addressed. Major snow-melt flooding occurs Ensure that an early warning system is established M during project implementation. as soon as possible, and flood emergency plans are enhanced, flood fighting materials are in place, and construction schedules set to mitigate seasonal flood risks. The policies to support reductions Ensure that the compensation program to big farm S in irrigated areas fail to be issued contractors is well prepared, and is approved in and implemented. time by the Prefecture Government and implemented. Overall Risk Rating S Risk Rating: H = High risk, S=Substantial risk, M=Modest risk and N=Negligible risk
E. Loan conditions and covenants
Negotiations and Board presentation: None Loan effectiveness: None Disbursement Condition: None
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42. Covenants applicable to project implementation:
(a) Maintain the PLG and PLGO at the regional level and PLGs, PMOs and EGs at the prefecture and county levels throughout implementation with qualified and adequate staff; (b) Not later than two months after the Effective Date, establish a financial and procurement management information system acceptable to the Bank; (c) Not later than December 31, 2011 establish the internet based system referred to in Component 1(a) of the project and commence to monitor and evaluate the ET variations and water allocations in the entire Turpan River Basin; (d) Not later than December 31, 2012 have the ET-based supplementary plan referred to in Component 1(c) of the Project approved by the Prefecture and effective; (e) Not later than December 31, 2013 establish in the Prefecture the ET-based water rights system referred to in Component 1(e) of the project and make such system applicable to the management plans to be carried out under the project; (f) Not later than as indicated in the monitoring indicators set forth in the Annex 3 of the PAD, establish and thereafter maintain, at least 43 WUAs to be responsible for the operation and maintenance of the on–farm irrigation works supported by the project; and (g) Not later than December 31, 2010: (i) establish, and thereafter maintain, an ET management center to manage the activities referred to in Component 1(a) of the project as a public service agency of the Prefecture and reporting directly to the Prefecture Chief, (ii) staff such center with at least 6 professionals qualified in ET management, and (iii) equip the center as needed.
IV. APPRAISAL SUMMARY
A. Economic and financial analyses
43. Economic Analysis. The major quantifiable benefits of the project are derived from: (a) increased agricultural production from improved irrigation management and water productivity; (b) reduced flood losses from the increase in upstream storage capacity; and (c) transfer of consumptive use in irrigated agriculture to higher value industrial uses. The economic analysis is first conducted at the county level, covering all project interventions (reservoir construction, irrigation canal construction/ rehabilitation, and water-saving measures in irrigated agriculture). Incremental benefits generated directly from the incremental costs of project intervention at county level are identified and quantified. Cash flows of benefits and costs for each county are projected over a 30 year period to estimate the base case net present value (NPV) at a discount rate of 12% and the economic rate of return (ERR). The county sub-projects are estimated to generate ERRs ranging from 19% to 28 %, which indicate that each sub-project is economically viable on its own. Based on the aggregated net benefit flows of the two counties and the one city in the Turpan Basin, the project ERR is estimated at 23%.
44. The project will also generate other significant, but non-quantifiable benefits including: (a) decreased soil erosion from flooding; (b) reduction of social distress during
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flood events; (c) reduction of groundwater overdraft and the accompanying degradation of the oasis ecosystems; (d) preservation of the ancient Karez cultural heritage and promotion of tourism; and (e) multiplier effects from local economic growth and poverty reduction.
45. Financial Analysis. Financial analysis was conducted to: (a) gauge project impact on farmers’ incomes; and (b) set charges for the use of reservoir water to cover O&M costs. Crop budget and farm models were formulated under with and without project situations to gauge the impact on the income of farmers who benefit from: canal construction/ rehabilitation and reservoir construction for furrow irrigation of field crops; conversion from furrow to drip irrigation of field crops; and conversion from furrow irrigation of field crops to drip irrigation under greenhouses. Results indicate that the project is financially attractive to participating farmers. Construction of the three dams is considered a public investment due to their flood protection function. Water charges are therefore recommended to be set at the minimum level for covering O&M costs and ensuring financial sustainability.
46. Fiscal Impact. The prefecture government is firmly committed to meeting counterpart funding requirements with annual budget allocations. Beyond project completion, the fiscal impact of the project will be minimal as sustainable O&M practices and effective funding mechanism at the county and field levels are being introduced. O&M costs of the reservoirs will be covered by water charges, and the on-farm irrigation facilities and rehabilitation costs, as well as the O&M costs, will be borne by WUAs.
B. Technical
47. The project is considered technically sound. Cutting-edge technology, based on remote sensing, has been applied during project design for estimating consumptive use of water. This will be further applied during project implementation and for M&E, in order to achieve more balanced social and economic development and environmental protection, as required by government policies. Other technical aspects of the project draw upon the experience of the Regional Water Resources Bureau, as well as prefecture and county level government agencies. The feasibility study reports and preliminary project designs, including technical and economic comparison of different alternatives, were prepared by experienced Design Institutes and reviewed by the Regional Water Resources Bureau. Some technical design risks related to the geological conditions of dam sites remain. These are being addressed through detailed technical review of the dam safety aspects during project design, and guidance throughout project implementation, by an independent dam safety panel of leading experts that has been established at the national level.
C. Fiduciary
48. An assessment of the adequacy of the financial management system of the project concluded in June 2009 that the project meets minimum Bank financial management requirements, as stipulated in BP/OP 10.02. Financial management risk is the risk that
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loan proceeds will not be used for the purposes intended and is a combination of country, sector and project specific risk factors. Taking into account the proposed risk mitigation measures, the overall FM risk rating assigned to this project is substantial. The FMS will monitor the effectiveness of the proposed mitigation measures and project FM risk during project implementation. Details are in Annex 7.
49. The capacity assessment of the implementing agency to implement project procurement was carried out in July 2009 and updated in February 2010. The organizational structure and functions, staff skills, quality and adequacy of supporting and control systems, legal and regulatory frameworks, were reviewed. The overall risk of procurement is considered to be substantial, but could be minimized to be moderate, provided agreed risk mitigation measures are implemented. The agreed procurement risk mitigation action plan is in Annex 8.
D. Social
50. The project will reduce potential losses from flooding, increase water supply to industry, and raise agricultural productivity in terms of ET, from which the local population would benefit directly. It will also improve the eco-environment of the Turpan Basin, and preserve a Karez system as required under cultural heritage regulations. However, as the interventions associated with the project will require land acquisition and involuntary resettlement of Uygur communities, the project was prepared within the framework of Bank OP4.10 Indigenous Peoples and OP4.12 Involuntary Resettlement.
51. A social assessment (SA) was carried out by an expert team, consisting of 6 Uygur and 6 Han members, to evaluate project impacts, social and cultural compatibility, and the potential interaction between local people and the project undertakings, with a focus on Uygur and Hui ethnic minority groups. Besides a project information dissemination campaign in the project irrigation areas, the SA team also conducted a sample survey and case studies of 10 rural villages (9 mainly populated with Uygur, and one with Hui). 1,700 questionnaires, 56 focused groups and village meetings, and 74 household interviews were conducted. Based on fully informed and extensive consultation among these communities, the SA indicated a broad support of local Uygur and Hui groups to the project, and led to an Ethnic Minority Development Plan (EMDP) on behalf of the local communities. The EMDP will help ensure equitable opportunities for local ethnic minorities to participate in, and benefit from, the proposed project in ways compatible to their cultures. Since the majority of the project beneficiaries are Uygur and Hui, elements of the EMDP were integrated into the overall project design to ensure conformity with OP4.10 requirements.
52. Resettlement investigation was carried out by professional teams, in cooperation with local authorities at county and township levels. One of the three reservoirs, the Ertanggou Reservoir, would affect a hamlet relocation consisting of 97 people in 20 households who are all Uygur herders. The RAP was prepared with census survey and impact inventory, on the basis of intensive consultation with the affected people and the host Uygur community. Appropriate practical measures were planned for compensation
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and rehabilitation of the resettlers’ livelihoods, as agreed with them. The other two reservoirs, Alagou and Meiyaogou, would be constructed on the Gobi and on state-owned land, with no population resettlement. Their impacts were surveyed and are recorded in Abbreviated RAPs. The related main canals, 48km long, would be all built in the Gobi area, without any impacts on farmland, grassland, structures, assets or human economic activities.
E. Environment
53. Implementation of Component 1 on ET-based Integrated Water Management in the Turpan Basin will help mitigate adverse environmental project impacts. It will ensure that relevant government policies (e.g., for reducing irrigated areas), and regulatory (e.g. for establishing a water rights system) and institutional frameworks (e.g., for setting up WUAs) will be established to improve water allocation in consumptive use terms while making water available for additional groundwater recharge to preserve the oasis ecosystems and the cultural heritage of the Karez water supply system. Details are in Annex 4.
F. Safeguard policies
Safeguard Policies Triggered by the Project Yes No Environmental Assessment (OP/BP 4.01) [X] [ ] Natural Habitats (OP/BP 4.04) [X] [ ] Pest Management (OP 4.09) [X] [ ] Physical Cultural Resources (OP/BP 4.11) [X] [ ] Involuntary Resettlement (OP/BP 4.12) [X] [ ] Indigenous Peoples (OP/BP 4.10) [X] [ ] Forests (OP/BP 4.36) [ ] [X] Safety of Dams (OP/BP 4.37) [X] [ ] Projects in Disputed Areas (OP/BP 7.60)1 [ ] [X] Projects on International Waterways (OP/BP 7.50) [ ] [X]
Environmental Assessment (OP/BP 4.01)
54. The project is classified as a “Category A” project. Environment Assessment (EA) reports were prepared by Xinjiang Water Resources and Hydropower Design Institute in accordance with national requirements and the Bank’s OP/BP/GP 4.01. The reports include: (a) an EA summary; (b) a consolidated EA (CEA); and (c) an Environmental Management Plan (EMP). The EA Reports were finalized after incorporating the Bank’s comments.
1 By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas
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55. Public Consultations. A two-stage public consultation, including expert consultations, questionnaires, symposia, and interviews, was conducted with those affected by the proposed project. These consultations proceeded in a manner acceptable to the ethnic minority groups which are the dominant population in Turpan Prefecture, language and forms of communication. The majority of those consulted expressed strong support for the project, and acceptance of short-term inconveniences, such as noise and dust during the construction phase.
56. Information Disclosure. Information about the project was disclosed through major local newspapers from September to November 2008. Telephone hotlines were established for the public to access relevant documents and offer comments. The availability of the consolidated EAs, and how to access to them, was announced in “Turpan Daily” in June and August 2009. The EAs, EMP, EA Summary, and PMP were disclosed at the website of different government agencies. The CEA, the EMP, and the EA Summary were also disclosed at the Bank Beijing office website and at the Infoshop in Washington, D. C. on December 28, 2009.
Natural Habitats (OP/BP4.04)
57. No critical natural habitats, natural reserves, protected areas, endangered species, or protected species have been identified in the areas influenced by the project; and the activities financed under the project are not expected to have any significant impact on natural habitats. Four types of fish occur the Ertanggou River and in many of the neighboring rivers. Dam construction in the case of the Ertanggou River is not expected to affect the multiplication of these fish. The increase of Microzooplankton, phytoplankton and Zoobenthos as a result of the slowing of the river flow above the reservoir area may lead to an increase in the population of the indigenous fish species, but also in the population of commercial fish such as carp.
Pest Management (OP 4.09)
58. Under the project, integrated pest management measures that are currently implemented in Turpan Prefecture will be adopted. This includes: (a) disseminating the application of high efficiency, low toxic, low residual effect chemicals and biological pesticides; (b) prohibiting the use of high toxic, high residual effect pesticides; (c) reducing the reliance on chemical pesticides and chemical fertilizers; and (d) promoting the use of non-chemical technologies for insect and pest control. A Pest Management Plan (PMP) has been prepared for the project and will be implemented during project implementation.
Physical Cultural Resources (OP/BP 4.11)
59. Component 3, preserving one of the ancient Karez water supply systems, is intended to serve as a pilot for preserving more of the still remaining ancient water supply systems. The design report on Protection of Wudaolin Karez System in Yaer Township has been prepared, and meets Bank requirements. Prior to advertising invitations to prequalify or to bid for works to be carried out for the Karez Water System, 17
the Prefecture’s Cultural Relics Bureau shall confirm that the preliminary design of said works: (a) complies with applicable domestic laws and regulations; and (b) has an adequate cultural relic protection approach to ensure the preservation of such system, the component will be implemented.
60. Xinjiang Cultural Relic and Archeological Research Institute, assisted by the Prefecture Cultural Relic Bureau, surveyed the three reservoir areas to be inundated under Component 2, and found cultural relics in the areas of the Alagou and Ertanggou reservoirs. Outcomes of these surveys are recorded in an Annex of the CEA, and remedial works and other mitigation measures proposed by Xinjiang Cultural Relic Bureau are included in the EMP. The rescue archaeological excavation will be conducted by Xinjiang Cultural Relic and Archeological Research Institute before commencement of construction activities. The cost of archaeological excavation has been included in the project budget. Appropriate procedures are included in the EMP in case additional culturally significant sites are found; appropriate clauses will also be included in the related construction contracts for the three reservoirs.
Involuntary Resettlement (OP/BP 4.12)
61. As discussed in paragraph 52, a RAP was prepared for the Ertanggou reservoir and abbreviated RAPs were prepared for the Alagou and Meiyaogou reservoirs.
Indigenous Peoples (OP/BP 4.10)
62. With about 77 percent of the population of the Turpan prefecture belonging to ethnic minority groups, OP 4.10 is applicable to the project. An EMDP was prepared and incorporated into the project design.
Safety of Dams (OP/BP 4.37)
63. Under Component 2, three dams (Alagou, Ertanggou, and Meiyaogou) will be constructed. Upstream of the project areas are four existing dams (Kekeya, Kanerqi, Putaogou and Yaernaizi), whose failure would cause extensive damage to some of the project interventions. Of the four existing dams, three are classified as operationally safe and one as Class C; remedial work on this dam was completed. The Dam Safety Plan including (a) Operation, Maintenance and Surveillance Plan; (b) Emergency Preparedness Plan; (c) Construction, Supervision and Quality Enhancement Plan; (d) Instrumentation Plan; and (e) Dam safety report were prepared for each of the four existing dams, and approved by the Bank. A DSP was established at the prefecture level to provide consulting services on dam safety to the prefecture PMO. Regulations and guidelines relating to dam safety will be strictly followed during project implementation. Details are in Annex 10.
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64. Specifically, the Xinjiang Uygur Autonomous Region shall:
(a) Maintain and cause the Turpan Prefecture to maintain a panel of three independent dam safety experts (the DSP) to assist the Prefecture in ensuring that the Project is implemented in compliance with the Bank’s policy on Safety of Dams (OP 4.37) under terms of reference satisfactory to the Bank; (b) Implement and cause the Turpan Prefecture to implement the Dam Safety Plan (Operation, Maintenance and Surveillance Plan; Emergency Preparedness Plan; Construction, Supervision and Quality Enhancement Plan; Instrumentation Plan; and Dam safety report) in a manner satisfactory to the Bank; and (c) Furnish or cause the Turpan Prefecture to furnish yearly the DSRs.
G. Policy exceptions and readiness
65. Project appraisal confirmed that the project meets Bank requirements, including readiness for implementation.
66. Translation waiver. The Safeguard Policy on Resettlement, OP 4.12 and the Safeguard Policy on Environment Assessment, OP 4.01, require the Borrower to prepare RAPs and EA reports in a form, manner and language that are understandable to the displaced persons and local NGOs, which in this case is in Chinese. The Chinese language RAPs and EA reports for the subprojects were found by the Bank to meet the requirements of OP 4.12 on involuntary resettlement and OP 4.01 on environmental assessment, and were publicly disclosed.
67. Bank experience over the years has established the general practice of requesting the Borrower to provide the Bank the entire set of RAP and EA reports in English. In March 2008, Bank senior management endorsed “revised Guidelines for the Use of English Translation of Summaries of Environmental Assessment Reports and Resettlement Action Plans in China Projects”, which allowed the creation of English language comprehensive summaries of RAPs, EA reports, and EMP1 for projects that meet certain criteria. The Regional Safeguards Secretariat confirmed that the proposed project meets these criteria. Accordingly, comprehensive summaries in English of the RAPs and the EA reports, covering all relevant parts of the Chinese-language RAPs and EA reports, were prepared in Chinese. Chinese-speaking Bank safeguard specialists reviewed both the English summaries of the RAPs and EA reports, and the Chinese full- length safeguard documentation that were approved and adopted by the Project Implementing Agencies, and confirmed the consistency between the English and Chinese documentation, and compliance of the full set of safeguards documents with Bank policy. The summaries in English were subsequently disclosed through the Bank’s Infoshop.
1 Comprehensive summaries of RAPs, EA reports, and EMP refer to consolidated RAPs, EA reports and EMP for the entire project. 19
Annex 1: Country and Sector or Program Background CHINA XINJIANG TURPAN WATER CONSERVATION PROJECT
Country Water Resources Background
1. Water is one of the scarcest resources in China. The country’s average per capita availability of renewable water resources is only about one-third of the world average. In addition, the monsoon climate that predominates in China contributes to high intra- seasonal and inter-annual variability in precipitation, and frequent droughts and floods. Furthermore, water resources in China are not equally distributed. Availability of water is higher in the southern than in the northern part of the country, while 40% of population and intensive economic activities are located in North China. About 33% of the total land area is semi-humid, with annual precipitation ranging from 400 to 800 mm, and a natural environment that is very sensitive to development activities. An additional 39% of the land area is semi-arid and arid, with an annual precipitation of less than 400 mm and less than 200 mm, respectively, and has very fragile natural conditions. This includes the northwestern part of the country where the Xinjiang Uygur Autonomous Region is located.
2. The Government of China (GOC) is aware that the water sector is fundamental to guaranteeing and sustaining China’s development. Over the last six decades considerable attention has been paid to water resources development, and rapid progress has been achieved. About 277,000 kilometers of river dikes and 85,000 reservoirs were constructed. Flood control systems in the major river basins were established, which contributed to more effective flood control. Hydropower installation now totals 108,000 megawatt. Drinking water was supplied to an additional 282 million people in rural areas. About 920,000 square kilometers of soil-eroded area was stabilized; and irrigated area increased by 8 million hectare during the three past decades. These developments have allowed China to support 20% of world population with only 6.8% of the world’s cultivated land and 6% of world water resources.
3. Yet China continues to face a number of serious water issues. In many parts of the country, the gap between water demand and renewable supplies is widening, with water scarcity becoming increasingly severe. Annual average groundwater overexploitation has reached 22.8 billion m3. Other problems include droughts, floods and water-logging, soil erosion, water pollution, and ecological degradation. These issues are being exacerbated by the impact of climate change. According to the recently completed National Water Resources Assessment by the Ministry of Water Resources and the National Development and Reform Commission, because of climate change combined with intensive development activities, the water resources situation in China has already significantly changed during the past two decades, most dramatically in North China. The main changes include a higher frequency of droughts in the northern part, and more water logging in the southern part of the country.
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4. Improving the management of water resources is therefore crucial to China’s further development. Without major changes, water will become a serious bottleneck for urban growth, industrial and agricultural development, as well as the prevention of further ecological degradation. China’s leadership is aware of the deepening crisis, and is committed to transforming the country into a water-saving society. The 11th Five-Year Plan (2006-10) sets a number of policy goals and priorities for water resources management, including: (a) adopting a better coordinated management system; (b) shifting from supply-side to demand-side management; and (c) integrating river basin management with regional management.
Sector/Program Background
5. In China irrigated agriculture accounts for about 65 percent of total water use. With the aim of dealing with water scarcity and meeting growing demands from other sectors, it is a priority to achieve water savings in the agricultural sector, while at the same time ensuring food security for a growing population. One of the initiatives that have been supported since the mid-1990s by the Ministry of Water Resources (MWR) and provincial agencies is the National Irrigated Agriculture Water-Saving Program.
Traditional Approach for Saving Water in Irrigated Agriculture
6. The ongoing National Irrigated Agriculture Water-Saving Program focuses on rehabilitating irrigation and drainage systems and promoting various water-saving technologies, such as canal lining and sprinkler and drip irrigation, to increase agricultural production. Government policy also recognizes the need for institutional reform, including increasing farmer participation and ownership in irrigation, and strengthening organizations responsible for operation and maintenance (O&M).
7. While impressive achievements have been made under the Program, including an increase in irrigated area and crop yields, experience has shown in China and in other parts of the world that investments that concentrate only on improving water delivery structures and irrigation technologies do not necessarily achieve ‘real’ water savings. This is because they usually do not reduce agricultural consumptive use, or evapotranspiration (ET)1. While the introduction of modern irrigation technologies can significantly reduce the amount of water that needs to be withdrawn from rivers and/or aquifers, and that needs to be applied to an irrigated area, it correspondingly also reduces return flows, i.e., the amount of water that returns to rivers as runoff or percolates into underlying aquifers, and thus becomes available to downstream users. With the introduction of modern irrigation technologies, ET often even increases because the water that appears to be saved from improved irrigation efficiencies is applied to provide
1 The amount of water lost to the atmosphere by evaporation from the soil and plant surfaces and by transpiration from plants is called ET. By definition, consumptive use of water in irrigation is the sum of ET and the water assimilated into the plant. However, more than 99% of applied water is consumed by ET, and therefore ET is often assumed to be equal to the consumptive use. Values of ET depend on climatic conditions, plant ground coverage, type of plants, and soil characteristics.
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additional irrigation water to crops in existing irrigated areas, or to expand the irrigated areas. In many parts of China, surface and groundwater overexploitation from irrigated agriculture has not been reduced by improved irrigation structures and technologies, and the related ecological and environmental problems are intensifying.
Improved Approach for Saving Water in Irrigated Agriculture
8. A better approach to achieve ‘real’ water savings is based on controlling ET. The innovative idea is to strictly control agricultural water consumption by means of ET targets which set the basis for setting water withdrawal quotas. These quotas can progressively be adjusted as irrigation technologies, irrigation system management, and cropping patterns evolve. The improved approach has already been promoted by the recently completed Water Conservation Project financed by the World Bank, and has proved to be highly effective with regard to ‘real’ water savings in Hebei Province and Beijing Municipality. Because farmers and other water users could understand the linkage between their actions and the effect on the water table or stream flows, informed discussions and collectively agreed quotas could be defined, and enforced with ET monitoring by remote sensing technology. The improved approach has also been adopted and expanded as one of the key aspects of the GEF Hai Basin Integrated Water and Environment Management Project. Under this project overall water consumption limits are set at the basin level, and related withdrawal quotas specified all the way down to individual water users. A number of measures are supported that help farmers to achieve ET reductions in irrigated agriculture.
9. The approach for ET-based irrigated agricultural water savings includes the following elements:
(a) Only a reduction in water consumption (or ET in irrigated agriculture) is considered to represent a genuine saving of the resource to the hydrologic system; (b) Accompanying measures aim to increase water productivity in consumptive use terms, i.e. agricultural yield or value per unit ET is increased while overall ET is reduced; (c) Water consumption analysis needs to be done at both the basin and the field levels to establish a linkage between consumptive use at the basin and field levels; (d) An integrated package of measures needs to be adopted to genuinely save water, including engineering, agronomic, and irrigation management measures; (e) Remote-sensing (RS) based ET measuring technology needs to be used to closely monitor and evaluate the irrigated agricultural water savings in the field, and to identify and control possible ET increases resulting from the improved irrigation technologies; (f) An increase in farmer income (in part through higher water productivity in consumptive use terms) must be ensured; and (g) Farmers’ water user associations (WUA) should participate in the process of project design, construction, and operations and maintenance (O&M), as well as in the control of ET and adjustments in cropping patterns and other practices.
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Conventional Water Rights System
10. The conventional water rights system in China and other parts of the world is based on water withdrawal amounts. In China water users are issued permits which specify the amount of water that can be withdrawn from a surface or groundwater source. It is becoming increasingly clear that permits which use “withdrawals” as the measure of water may not be effective in controlling the overuse of water. This is because, given a particular withdrawal amount, if a farmer switches to a modern irrigation technology with a higher irrigation efficiency, it is likely that the water consumption (ET) is higher than before with the lower irrigation efficiency1. It is important to keep in mind that the amount of water withdrawn from a local water source can be divided into two parts: the amount of water consumptively used (ET), and the amount of water that returns (or is recycled) via runoff or deep percolation to the local water system. When water rights are based (only) on the amount of water that can be withdrawn, there is a built in incentive to consume as much of it as possible, and to minimize the amount of return flows. Thus, a water rights system based solely on withdrawal amounts can result in increased depletion of water resources.
New Concept of ET-Based Water Rights System
11. An alternative design of a water rights system based on ET amounts would be much more effective in controlling the overuse of water. Water rights in an ET-based system are formulated and recorded with three components: (a) the amount that may be withdrawn; (b) the amount that may be consumed (or ET for irrigation); and (c) the amount that must be returned to the local water system, and meets national water quality standards for wastewater and sewerage discharges. Such a formulation complicates water rights administration, because at least two of the three components need to be measured and controlled. (Under the conventional system, the focus is only on one component, withdrawals.) However, in recent years remote sensing has been increasingly used to estimate actual ET, and allows the measurement of the consumptive use component. This helps to assess whether actual consumptive use (actual ET) is less than the target consumptive use (target ET, as specified in an ET-based water right). ET can now be measured in an area of 30x30 meters with acceptable accuracy, particularly in arid regions. ET measurements, combined with the conventional withdrawal measurements, make the administration of a water rights system based on the three components feasible.
1 Let's assume a farmer has been issued a permit by the water bureau allowing the withdrawal of 10,000 cubic meters (m3) from an aquifer. The farmer grows 1 hectare of wheat with an irrigation efficiency of 40%, and thus applies 4,000 m3 to the crop. If the farmer adopts an improved irrigation technology with an irrigation efficiency of 80%, and leaves everything else unchanged, the necessary withdrawal would be reduced to 5,000 m3. But with a permit over 10,000 m3, the farmer has several options, including irrigating an additional hectare of wheat, or switching from wheat to a higher-value crop that requires the application of higher amounts of irrigation water. The farmer could also sell the apparently ‘saved’ withdrawal amount to a neighboring farmer. No matter which option the farmer chooses, the resulting ET amount will increase substantially (double in case the farmer decides to irrigate an additional hectare of wheat), and the return flows to the aquifer concomitantly decrease. A continuous decrease in deep percolation can significantly contribute to groundwater overdraft and ecosystem degradation.
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12. Progress should also be made with the measurement and control of the withdrawal component. In some groundwater irrigation areas under World Bank projects in Beijing, Hebei and Xinjiang, a new system has begun to be implemented where each water user is issued an intelligent card which records the amount of water pumped. When the allowed amount is used up, the card prevents the user from withdrawing additional water. This mechanism has proved to be quite effective to control withdrawals, and could be expanded throughout water scarce regions of the country. However, even with the cards, measurement systems of withdrawals are woefully inadequate in groundwater irrigation areas. The situation is even worse in surface irrigation areas, particularly at the on-farm level. It will be necessary to greatly improve water measurement, and based on that, enforcement and control of water use at all levels of a water system (from basin to individual users) to have a water rights system that allows better and more integrated water management.
13. Finally, the return flow component should not only be specified in terms of the amount to be returned, but should also address quality requirements. This would enhance the benefits of the water right administration system by reducing pollution and promoting water conservation. In industrialized countries such as the United States, for example, strict requirements about industrial discharge of polluted water into water bodies and their enforcement have provided strong incentives to industries to internally treat, recycle and reuse water to minimize the amount of water that needs to be discharged. This policy has resulted in large reductions in pollution and much reduced withdrawals of water by industry.
14. Water Markets. The three components of the ET-based water rights system could facilitate a well-functioning water market. Where return flows are important for downstream users or for aquifer replenishment, only consumptive use amounts (not withdrawal amounts) should be traded between water users to avoid third-party impacts. Otherwise, a water user may sell a (withdrawal-based) water right with a low existing consumptive use to someone with a higher consumptive use, and thereby reduce the water amount available for downstream users and/or increase depletions. With the consumptive use component clearly specified, the ET-based water rights system could provide that only the allowed consumptive use (not the allowed water withdrawal) is reallocated from one user to another.
15. Especially in water scarce areas, such as in northern China, continued economic growth is often contingent upon water users having an assured water supply. As shown in semi-arid and arid parts of the western United States and arid areas in Australia, a well- functioning water market can help in reallocating water from lower-value to higher-value uses, and reduce the likelihood that limited water availability becomes a serious constraint for further growth. However, this requires an efficient water user rights administration with at least two of the three components being measured and controlled, and with the total ET-based water rights not exceeding the available sustainable amount in terms of water consumption. If there is inadequate measurement and control, then water users may, for example, continue to use water even after having sold their ET-
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based water rights. If the amount of allocated water rights exceeds sustainable levels, then a purchaser may not be able to avail of a guaranteed long-term water supply.
Innovative Approaches for More Integrated and ET-based Water Management in the Turpan Basin
16. The introduction of an ET-based water user rights administration system that allows for ‘real’ water savings, coupled in the longer term with a functioning water market, will go a long way towards achieving sustainable water resources management in Turpan Basin. It will also help to ensure that water is available to sustain continued economic growth and reduce continued ecosystem degradation. However, reductions in the overexploitation of water resources and reallocation to higher-value uses will necessarily mean less water for low-value agricultural uses. Because water and not land is the limiting resource in the basin, the aim should be to increase the productivity of water (in terms of yield per unit of water consumed) driven by the proposed ET-based water right system, in addition to reducing irrigated areas. This will be particularly important in the agricultural sector of the basin. The Bank-supported Water Conservation Project in the North China Plain has demonstrated that there is considerable potential for increasing water productivity in northern China through a combination of engineering, agronomic, and irrigation management measures with ET reduction. Thus, maintaining and even increasing agricultural incomes while reducing consumptive use is entirely feasible.
17. Overall, to effectively introduce an ET-based water right system, in the longer- term, a water market, the following principles should be followed:
(a) Water balance analyses and studies must first be made at the level of the basin (hydrological unit) and aquifers (hydro-geological units). Subsequently, allocations of consumptive use amounts should be determined for the different administrative units such as counties, townships, and villages/water user associations, and priorities among sectors including municipal, industrial, agricultural, and environmental uses. Total ET-based water allocations should be based on the goal of using the basin’s water resources sustainably without overexploitation. (b) Water rights should incorporate three elements: withdrawal, consumptive use, and return flow amounts. This is to ensure that the total amount of consumptive use is limited to sustainable levels and overexploitation does not occur. (c) The water rights system should also include strict water quality requirements for return flows. This would help reduce both point and non-point pollution sources and contribute to water conservation. (d) Water rights need to be specified in entitlement (initial water rights) and water sharing amount (annual allocation)1, both in terms of consumptive use. The latter also needs to take into account priorities among water using sectors within a year, and take into account predictions of water inflows into the basin and
1 The water entitlement refers to the amount of water a water user is entitled to consume on an average annual basis. The water sharing amount refers to the amount of water a water user is allocated to consume for a specific year. 25
groundwater replenishments. The total annual water sharing should be limited to sustainable amounts. (e) Water withdrawals and consumptive use need to be measured and controlled. Water rights must be enforced. This is a major administrative undertaking that needs to be supported with adequate personnel and financial resources. (f) Water markets should be considered to facilitate water reallocations from low- to higher-value uses, and supported by an adequate water rights administration system. Only the consumptive use component of a water right should be traded. (g) Efforts should be undertaken to increase water productivity in consumptive use terms, particularly in irrigated agriculture, in order to ensure adequate income levels. (h) Appropriate compensation policies and mechanisms should be designed and established for farmers with low-value water uses who are willing to give up their water rights in order to return water to the ecological environment or to sell them to higher-value uses.
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Annex 2: Major Related Projects Financed by the Bank and/or other Agencies CHINA XINJIANG TURPAN WATER CONSERVATION PROJECT
Latest Supervision (Form 590) Ratings (Bank-financed projects) Sector Project ICR Ratings OED Ratings IP and DO IP and DO Bank-financed Expansion of irrigation and water Shaanxi Agriculture Closed 06/31/1997 systems, agriculture support and agro- Development Project IP: HU NA industries ($106.0 million) DO: HS Improvement and rehabilitation of on- Irrigated Agriculture Closed 06/30/1998 farm irrigation and drainage systems and Intensification Project IP: HS NA agriculture services improvement ($335.0 million) DO: HS Construction and improvement of Tarim Basin Project Closed 12/31/1997 irrigation and drainage systems and ($125.0 million) IP: S NA improvements in environmental river OD: S management Rehabilitation and improvement of Hebei Agriculture Closed 06/30/1998 irrigation and drainage systems, and Development Project IP: S NA expansion of agriculture services and ($149.9 million) OD: S agro-industries Improvement of irrigation and drainage Yangtze Basin Water Closed 12/31/2005 systems, self-managing irrigation and Resources Project ($210.0 IP: S IP: S drainage districts and river basin million) DO: S DO: S management Rehabilitation and improvement of Irrigated Agricultural Closed 06/30/2005 irrigation and drainage systems, self- Intensification Loan II IP: S IP: HS managing irrigation and drainage districts Project ($300.0 million) DO: S DO: HS and river basin management Integrated water and environment Tarim Basin II Project Closed 12/31/2005 management, irrigation system ( Loan $90.0 million, IP: HS IP: HS rehabilitation, self-managing irrigation Credit SDR 44.6 million) DO: HS DO: HS and drainage districts Irrigated agricultural water savings with Water Conservation Project Closed 06/30/2007 integrated measures and participatory ($74.0 million) IP: HS IP: HS approach DO: HS DO: HS Rehabilitation and improvement of Guanzhong Irrigation Closed 06/30/2006 irrigation and drainage systems, self- Improvement Project IP: S IP: S managing irrigation and drainage districts (Loan $80.0 million, Credit DO: S DO: S and river basin management $20.0 million) Integrated small watershed management Changjiang and Pearl River IP: S and water and soil erosion control Watershed Rehabilitation DO: S NA Project Integrated water and environment Hai Basin Integrated Water IS: S management supported by knowledge and Environment DO: S NA management Management Project (GEF USD $17.0 million)
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Annex 3: Results Framework and Monitoring CHINA XINJIANG TURPAN WATER CONSERVATION PROJECT
Table 1: Results Framework
Use of Project PDO Project Outcome Indicators Outcome Information The project development PO-1: Number of the people with improved flood Track progress and objective (PDO) is to protection increased make adjustments mitigate the risk of PO-2: Economic losses from flooding mitigated when necessary during flooding, reduce PO-3: Groundwater overdraft reduced in project implementation groundwater overdraft, irrigation areas, and the basin increase industrial and PO-4: Water supply capacity for industrial and domestic water supply, domestic uses in consumptive use terms increased and raise farmers’ income in project irrigation areas, and the basin from irrigated agriculture PO-5: Water productivity in irrigated agriculture, in the arid Turpan Basin measured in terms of evapotranspiration (ET), of Xinjiang Uygur increased in project irrigation areas Autonomous Region. PO-6: Farmers’ per-capita net income from irrigated agriculture increased in the project irrigation areas Use of Intermediate Intermediate Outcomes Intermediate Outcome Indicators Outcome Monitoring Component 1: ET-based IO-1: ET management center established and Track progress and Integrated Water staffed, and ET management and knowledge make adjustments if Management in the management systems set up necessary during Turpan Basin IO-2: Number of water user associations (WUAs) implementation achieving targets for reductions in ET Component 2: Increase IO-3: Number of contracts for the three upstream Track progress and of Upstream Storage dams and related works satisfactorily completed make adjustments if Capacity IO-4: Non-beneficial evaporation from water necessary during surfaces reduced in the basin, particularly during implementation the flood season Component 3: Real IO-5: Length of irrigation canals rehabilitated Track progress and Water Savings in IO-6: Amount of irrigated area with improved make adjustments if Irrigated Agriculture irrigation technologies installed necessary during IO-7: Amount of ET reduction in project irrigation implementation areas, and the basin Component 4: IO-8: Length of the Karez system rehabilitated Track progress and Preservation of a Karez according to the requirements of the Prefecture make adjustments if System Cultural Relics Bureau necessary during implementation Component 5: IO-9: Number of government officials familiarized Track progress and Institutional Capacity with the ET management concept make adjustments if Building and Project IO-10: Number of members of WUAs familiarized necessary during Management with the ET-based irrigation water rights system implementation
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Table 2: Measurement of the Indicators
PDO Computation Method Name Indicators and/or Formula Number of the people with improved Based on the target for project completion, measured as the PO-1 flood protection increased number of people in the flooding areas protected as a result of the three upstream dams and related works. Economic losses from flooding mitigated Measured as the difference of the lost value in case flooding in PO-2 the three counties with and without the water storage capacity from statistical data Groundwater overdraft reduced in project Measured as the difference in groundwater overdraft between PO-3 irrigation areas, and the basin the baseline and the target year in the project area (and in the basin), based on the annual water consumption balance Water supply capacity for industrial and Measured as the increase in industrial and domestic water domestic uses in consumptive use terms consumption between the baseline and the target year, based on PO-4 increased in project irrigation areas, and water revenues from industrial and domestic uses and field the basin surveys
Water productivity in irrigated Measured as the total irrigated agricultural value divided by the agriculture, measured in terms of total ET of the project irrigated areas PO-5 evapotranspiration (ET), increased in project irrigation areas Farmers’ per-capita net income from Measured as income per capita from irrigated agriculture, based PO-6 irrigated agriculture increased in the on agricultural statistical data for the project irrigation areas project irrigation areas Intermediate Outcome Indicators ET management center established and Measured with completion percentage of setting up of the ET IO-1 staffed, and ET management and management center and the employment of staff including knowledge management systems set up completion of KM system and ET production system Number of water user associations Based on the target for project completion, measured as the IO-2 (WUAs) achieving targets for reductions percentage of WUAs achieving annual ET targets, based on in ET remote sensing of ET Number of contracts for the three Based on the target for project completion, measured as the IO-3 upstream dams and related works number of completed contracts for single works for the dams satisfactorily completed and related works with good quality Non-beneficial evaporation from water Measured with the difference of evaporation from water surface IO-4 surfaces reduced in the basin, particularly with and without project during the flood season Length of irrigation canals rehabilitated Based on the target for project completion, measured as the IO-5 percentage of the length of irrigation canals rehabilitated Amount of irrigated area with improved Based on the target for project completion, measured as the IO-6 irrigation technologies installed percentage of improved irrigation technologies installed Amount of ET reduction in project Using remote sensing technology, measured as the difference in IO-7 irrigation areas, and the basin ET in the project irrigated areas (in the basin) between the baseline and in the target year Length of the Karez system rehabilitated Based on the target for project completion, measured as the IO-8 according to the requirements of the percentage of restoration works completed Prefecture Cultural Relics Bureau Number of government officials Based on the target for project completion, measured as the IO-9 familiarized with the ET management percentage of the government officials familiarized with the ET concept management concept, using questionnaires Number of members of WUAs Based on the target for project completion, measured as the IO-10 familiarized with the ET-based irrigation percentage of members of WUAs familiarized with the ET- water rights system based irrigation water rights system, using questionnaires
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Table 3: Arrangements for Results Monitoring1 Target Values Data Collection and Reporting Final Indicators of Project PDO/Outcome Baseline Frequency Data Responsibility for 2010 2011 2012 2013 2014 2015 Target 2009 and Reports Collection Data Collection 2015 PO-1: Number of the people2 with improved Annual Water Resources 0 0 0 0 0 260 260 260 Annual flood protection increased report Bureau /PMOs PO-2: Economic losses3 from flooding Annual Water Resources 15.48 15.96 16.45 16.96 17.49 0.00 0.00 0.00 Annual mitigated (RMB million) report Bureau /PMOs PO-3: Groundwater overdraft4 reduced in 0.00 0.00 0.75 0.75 0.75 0.75 0.75 3.75 Annual Water Resources project irrigation areas, and the basin Annual (0.00) (0.00) (7.48) (7.48) (7.48) (7.48) (7.48) (37.40) report Bureau /PMOs (million m3/year) PO-4: Water supply capacity5 for industrial and domestic uses in consumptive use terms 0.00 0.00 0.65 0.65 0.65 0.65 0.65 3.25 Annual Water Resources Annual increased in project irrigation areas, and the (0.00) (0.00) (6.5) (6.5) (6.5) (6.5) (6.5) (32.50) report Bureau /PMOs basin (million m3/year) PO-5: Water productivity in irrigated agriculture, measured in terms of Annual Water Resources 0.8 1.8 2.8 3.8 5.3 6.8 8.8 8.8 Annual evapotranspiration (ET), increased in project report Bureau /PMOs irrigation areas (RMB Yuan/m3) PO-6: Farmers’ per-capita net income from Annual Water Resources irrigated agriculture increased in the project 4742 4942 5142 5342 5542 5742 5942 5942 Annual report Bureau /PMOs irrigation areas (RMB Yuan/year)
1 PO-3, PO-4 and IO-7 have two numbers in each cell. The one in the bracket represents the number for whole Turpan Basin; the other outside the bracket represents the number for the project irrigation areas only. 2 The targeted people to be protected include 60,000 from Tuokexun County, 100,000 from Shanshan County, and 100,000 from Turpan City. 3 The economic losses were calculated on an average annual basis from the results of economic and financial analysis of the project. 4 The current annual groundwater overdraft is 230.57 million m3 in Turpan basin, which is planned to be reduced by 37.41 million m3 by 2015 or 7.48 million m3 /year. The project is expected to share 10% of the reduction (the improved irrigated areas (160,000 mu) under this project account for 10% of the total irrigated areas in Turpan river basin), which is 0.75 million m3 /year or 3.75 million m3 in 5 years. 5 The current annual industrial and domestic water supply capacity in Turpan Basin is 22.45 million m3 in Turpan Prefecture, which is planned to increase by 32.51 million m3 (shown in the bracket) by 2015 or 6.5 million/year. The project is expected to support 10% of the increase with irrigated agricultural water savings, which is 0.65 million m3 /yr or 3.25 million m3 in 5 years.
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IO-1: ET management center established and Annual Water Resources staffed, and ET management and knowledge 0 40 60 0 0 0 0 100 Annual report Bureau /PMOs management systems set up (Percentage) IO-2: Number of WUAs achieving targets for Annual Water resources 0 3 10 10 10 10 0 43 Annual reductions in ET report bureau/PMOs IO-3: Number of contracts for the three Annual Water resources upstream dams and related works satisfactorily 0 0 5 5 7 7 5 29 Annual report bureau/PMOs completed IO-4: Non-beneficial evaporation1 from water Annual Water resources surfaces reduced in the basin, particularly 0.00 0.00 0.84 0.84 0.84 0.84 0.84 4.20 Annual report bureau/PMOs during the flood season (million m3/year) IO-5: Length of irrigation canals rehabilitated Annual Water resources 0.00 0.00 0.00 0.00 24.00 24.6 0.00 48.60 Annual (km) report bureau/PMOs IO-6: Amount of irrigated area with improved Annual Water resources 0 0 50 50 62 0 0 162 Annual irrigation technologies installed (000’mu) report bureau/PMOs IO-7: Amount 2 of ET reduction in project 0.00 0.00 1.31 1.31 1.31 1.31 1.31 6.55 Annual Water resources irrigation areas, and the basin (million Annual (0.00) (0.00) (13.14) (13.14) (13.14) (13.14) (13.14) (65.70)3 report bureau/PMOs m3/year) IO-8: Length of the Karez system rehabilitated Annual Water Resources according to the requirements of the Prefecture 0.00 0.00 1.40 1.48 0.00 0.00 0.00 2.88 Annual report Bureau /PMOs Cultural Relics Bureau (km) IO-9: Number of government officials Annual Water resources familiarized with the ET management concept 0 30 30 30 30 30 30 180 Annual report bureau/PMOs (number of officials) IO-10: Number of members of WUAs Annual Water resources familiarized with the ET-based irrigation water 0 150 500 500 500 500 500 2,650 Annual report bureau/PMOs rights system (number of farmers)
1 The current total annual non-beneficial evaporation from water surface in Turpan Basin is 33.69 million m3, which is planned to be reduced by 4.21 million m3 by 2015 or 0.84 million m3 / per year. 2 The current total annual ET over the agricultural areas in Turpan Basin is 619.56 million m3, which is planned to be reduced by 65.71 million m3 (shown in the bracket) by 2015 or 13.14 million m3 /year. The project is expected to share 10% of the reduction (the improved irrigated areas (160,000 mu) under this project account for 10% of the total irrigated areas in Turpan river basin), which is 1.31 million m3 /year or 6.55 million m3 in 5 years. 3 The reduced ET in the basin (IO-7) plus the reduced NBET from water surface in the basin (IO-4) equal to the sum of the reduced groundwater overdraft in the basin (PO-3) and the increased water capacity for industrial and domestic water use in the basin (PO-4), i.e. 65.70 + 4.20 = 37.40 + 32.50, which shows the sources of water which is available for industrial and domestic water supply and for protection of ecosystem and Karez systems by reduced groundwater overdraft.
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Annex 4: Detailed Project Description CHINA XINJIANG TURPAN WATER CONSERVATION PROJECT
1. The PDO would be achieved through the implementation of the following components: (a) ET-based Integrated Water Management in the Turpan Basin; (b) increase of upstream storage capacity; (c) real water saving in irrigated agriculture; (d) preservation of a Karez water supply system; and (e) institutional capacity building and project management. These components with their main activities are further discussed below.
2. Recent developments in integrated basin management in different parts of the world suggests the following three principles: (a) the (river) basin should be taken as the unit to coordinate water demands, including the demand for ecological restoration (ecological principle); (b) in times of water scarcity, water should be reallocated from lower- to higher-value uses (instrument principle); and (c) stakeholders should participate in the process of water allocation, policy formulation, and legislation (principle of participation). While taking into account local conditions, these principles should be considered in the ET-based integrated basin management of the Turpan Basin.
Component 1: ET-based Integrated Water Management in the Turpan Basin (US$2.156 million)
3. Carrying out of an integrated river basin management program for the Turpan River Basin including, inter alia: (a) implementation of measures for the management of consumptive use in a basin-wide basis, supported by an internet-based knowledge management system with the ET data measured by remote sensing technology to derive and allocate the annual targets of consumptive use of water for industrial, domestic, agriculture and ecosystem uses in each city/county; (b) assessment of the inter-seasonal connections of water availability for irrigation to farmers (including the change of the upstream inflows to reservoirs due to the possible increase of snow melting in the mountain areas) due to climate change, and identification of changes needed to the operational rules of reservoirs as per the results of such assessment; (c) development of a supplementary plan to the Irrigated Agriculture Water-Saving Program to allow for the rational allocation of ET targets for irrigated agriculture at the Basin level to the respective county, and then to the township and WUA level; (d) establishment of at least 43 WUAs; and (e) establishment of a new water rights system based on consumptive use and compensation programs for reallocation of consumptive use.
4. With the aim of facilitating the prefecture government’s decision to improve water allocation in the Turpan Basin and reduce groundwater overdraft, an innovative integrated basin- wide water management program will be developed and applied that closely links targets for consumptive use of water at the basin-level with the respective targets for consumptive use of
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water at the county, township, and water users association (WUA) levels. The component would be supported by eight study activities1 to be carried out during project implementation.
5. Basin-wide plans for water management based on consumptive use will be prepared and approved by the prefecture government and implemented under the project. These plans include targets for consumptive use for the main water-using sectors to the year 2015, and for the longer term up to the year 2025. The project will help to achieve these targets in the selected project irrigation areas. Governments at prefecture and lower levels will implement additional complementary measures in other areas of the basin. The water consumption balance for the Turpan Basin is given in the table to Annex 4 of the PAD.
6. During project preparation, the prefecture government decided to establish during the project implementation period an ET management center for basin-wide planning, monitoring, and management of water consumption and information dissemination in order to secure the sustainability of activities under Component 1 beyond the project implementation period.
Subcomponent (1): Basin-wide Management of Water Consumption
7. This subcomponent will be supported by study activity No. 1 on RS-based ET Measurement and Monitoring in the Turpan Basin; and study activity No. 2 on Development of a Knowledge Management System for Water Resources Planning and Management. Under this subcomponent, water balance analyses, including in consumptive use terms, will be carried out for the Turpan Basin at the basin- and at lower levels.
8. At the basin level, water balance in terms of consumptive use refers to the balance between actual consumptive use and target consumptive use for urban, agricultural, and ecosystem uses. The objective of estimating water consumption balance at the basin level is to determine the target ET for irrigation areas, taking into consideration the consumptive use targets for urban uses and ecological restoration2; and in a second step, to ensure that the actual ET for irrigated areas is less than the target ET. The basin-wide target ET will then be allocated to each of the project irrigation areas, and accompanied by an integrated set of measures (engineering, agronomic, and irrigation management) designed to achieve real water savings. The impact on ET of the implementation of these measures will be closely monitored to ensure that actual ET is
1 The planned study activities are: (1) Remote Sensing-based ET Measurement and Monitoring in the Turpan Basin; (2) Development of a Knowledge Management System for Water Resources Planning and Management; (3) Conversion of ET Targets to Water Withdrawals based on Conjunctive Use of Surface and Groundwater; (4) Supplementary Plan to the Existing Irrigated Agricultural Water Saving Program; (5) Irrigation Quota Control by Water User Associations (WUAs); (6) ET Management by WUAs; (7) Development of an ET-based Water Rights Administration System in the Turpan Prefecture; and (8) Government Compensation Program for Reducing Irrigated Areas for Ecosystem Restoration. 2 Water supply for industrial and domestic uses is assumed to increase by 98 million m3 by 2025 in accordance with the 12th Five-year Plan of the Turpan Prefecture, and groundwater overdraft is projected to decrease by 233 million m3 by 2025 for the restoration of ecosystems in accordance with the agreement between the Prefecture Government and the World Bank mission during project appraisal.
33 less than the allocated target ET. The target ET for agricultural use at the basin-level can be derived as follows:
Water balance at the basin level: P+I-O-WCURB-ETECO-ETAGR =ΔG
With: WCURB=Target WCURB+Δ WCURB ETECO=Target ETECO+Δ ETECO ETAGR=Target ETAGR+Δ ETAGR
Thus: Target ETAGR=P+I-O-Target WCURB-Target ETECO-Δ WCURB -Δ ETECO-Δ ETAGR-ΔG
Objective: Actual ETAGR ≤Target ETAGR
Where: P: Annual precipitation; I: Annual inflow; O: Annual outflow; WCURB: Baseline annual urban consumptive use (surveys plus RS-based ET measurement); ETAGR: Baseline annual agricultural consumptive use (RS-based ET measurement); ETECO: Baseline annual ecological consumptive use (RS/ET measurement); Target ETURB, Target ETECO, and Target ETAGR: Annual target consumptive uses for urban use, ecological restoration and agriculture; ΔWCURB and ΔETECO: Proposed annual change from the baseline; ΔETAGR: Proposed annual change of agricultural water consumption, which equals the annual reduction of groundwater overdraft; Actual ETAGR: Actual annual agricultural water consumptive use after project implementation (RS-based ET measurement).
9. At the field level, water consumption balance refers to the balance between actual ET after implementation of the integrated measures (aiming to achieve real water savings) and the target ET allocated to the area (for example, a subproject area such as the irrigated area of a WUA) from the basin level. The target ET for a subproject area can be calculated in proportion with the actual ET for the subproject. Activities in the subproject area need to be well designed, including the mix of integrated measures, for actual ET after implementing the project activities to be less than the target ET. During implementation, RS-based ET measurements will be carried out to monitor, and if necessary, take action to ensure that actual ET is really less than the target ET allocated. The different steps of the envisioned ET-based management approach are presented below. The water consumption balance for the Turpan Basin is shown in the table at the end of this Annex.
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10. The knowledge management (KM) system for water resource planning and management refers to the development and management of databases, the related analytical, query and display functions, and the hardware and software platforms which will be used to manage data on both water quality and quantity. The KM development process will include assessment from users; preparation of an implementation plan; logical and physical designs of the system; data input and output, but also data analysis, database management and query interface development; and test operation and training. The KM management process will provide continuous data support for water consumption analysis, and basin-wide ET management and control. The KM system will be designed to also function as a platform for the management of water rights, water fees, well management, and WUAs.
Subcomponent (2): Assessment of the Inter-seasonal Connections
11. This subcomponent would be supported by Study Activity No. 3 - Conversion of ET Targets to Water Withdrawals based on Conjunctive Use of Surface and Groundwater. It will consider climate change adaptation, including assessment of the inter-seasonal connections of water availability for irrigation to farmers (including the change of upstream inflows to reservoirs due to the possible increase of snow melt in the mountain areas) due to climate change, and identification of changes needed to the operational rules of reservoirs as per the results of such assessment. Specifically, the subcomponent will: (a) analyze changes in water inflows and water consumption for designing climate change adaptation; (b) assess irrigation requirements for the crop growth period to meet the allocated ET targets; (c) determine the allocation of surface and groundwater waters in a way to minimize use of groundwater; and (d) develop a computer-based model to be used for conjunctive use of surface and groundwater for irrigated agriculture.
Subcomponent (3): Development of a Supplementary Plan on Irrigated Agriculture Water- Savings
12. This subcomponent will be supported by study activity No. 4 - Supplementary Plan to the Existing Irrigated Agricultural Water Saving Program; and study activity No. 5 - Irrigation Quota Control by WUAs.
13. A supplementary plan will be developed to enhance the Prefecture’s ongoing Irrigated Agriculture Water-Saving Program, covering all irrigated areas in the basin. The ongoing Irrigated Agriculture Water-Saving Program is based on the traditional approach, with a focus on reduction in water withdrawal. It may not contribute to real water savings in consumptive use terms; rather, it is likely to overestimate the potential of agricultural water savings that can be achieved under the Program, and thus worsen the overexploitation of the basin’s groundwater situation. The supplementary plan will help revise the ongoing Program according to the ET- based approach. Major outputs of the supplementary plan will be proposals on the locations for reducing irrigated areas; improved cropping patterns for each township/federal WUA and branch-level WUA; and groundwater wells to be shut down to ensure that actual ET is less than
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the target ET that is allocated from the basin level to each township/federal WUA and branch- level WUA on an annual basis.
14. The objective of Irrigation Quota Control by WUAs would be to: (a) evaluate the effect of real water saving through drip irrigation and green house planting; (b) provide advice to the WUAs on improved irrigation scheduling for the main crops, which will lead to reduced crop water consumption; and (c) specify the appropriate mix of integrated measures for achieving real water saving.
Subcomponent (4): Development of WUAs to Cover the Whole Project Irrigation Areas and Allocation of ET Targets to WUAs in the Field
15. This subcomponent will be supported by study activity No. 6 on ET Management by WUAs. In the Turpan Basin, a number of so-called federal WUAs exist at the township level. Each township level WUA comprises several branch-level WUAs. In the project irrigation areas, it is planned that 11 existing federal WUAs will be strengthened, and 7 new ones developed. At the branch-level, 43 WUAs are to be established. Their command areas cover the project irrigation areas encompassing 10,753 hectare. Under Component 3 of the project, the on-farm works of their command areas will be rehabilitated, and water measuring facilities will be installed within a pilot WUA, and O&M of the rehabilitated works and facilities will be managed by the WUA. An operational manual on allocation of ET and water withdrawal to each farmer household, and an O&M plan will be prepared for each pilot WUA and will be implemented the project.
Proposed WUA Development Plan (at the Branch-Level) No. of WUAs Planned Area (10 thousand mu) Water saving Project To be To be Command Serial No. Sub- technology applied County/City strengthened newly Area of total under the Command and improved established WUA Area of WUA 1 Turpan City 13 - 13 18.04 6.02 Shanshan 2 14 - 14 29.75 5.00 County Tuokexun 3 16 - 16 12.00 5.11 County Total 43 - 43 59.75 16.13
Subcomponent (5): Establishment of a New Water Rights System Based on Consumptive Use and of a Compensation Program for Water Reallocations
16. This subcomponent will be supported by the study activity No. 7 - Development of an ET-based Water Rights Administration System in the Turpan Prefecture; and the study activity No. 8 - Government Compensation Program for Reducing Irrigated Areas for Ecosystem Restoration.
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17. The ET-based Water Rights Administration System would enhance the existing water rights system, which is based on water withdrawals. It would become a key link between the planning and management of ET targets at the basin level, and ET targets (to be translated into the corresponding water withdrawal targets) at the water user level, with the aim of more effectively controlling the current overexploitation of groundwater resources in the Turpan Basin.
18. The Government Compensation Program for Reducing Irrigated Areas for Ecosystem Restoration would be developed for the Turpan Basin. It would support the efforts by townships and WUAs to reach their ET targets and real water savings, and facilitate the reallocation of water (in consumptive use terms) in the Turpan Basin, including for the reduction of groundwater overdraft, and meeting expected increases in industrial water demand.
Component 2: Increase of Upstream Storage Capacity (US$142.534 million)
19. Construction of: (a) the Alagou Dam; (b) the Meiyaogou Dam; and (c) the Ertanggou Dam.
20. In order to improve flood control in the three main watersheds of Turpan Basin, increase water supplies downstream, and maintain minimum ecological river flows, one small and two medium reservoirs will be constructed in narrow river valleys of the northern mountainous part of the Prefecture: Alagou reservoir in Tuokexun County (with 46 million m3 total and 31 million m3 regulating storage capacity); Meiyaogou reservoir in Turpan city (with 8 million m3 total and 5 million m3 regulating storage capacity); and Ertanggou reservoir in Shanshan county (with 25 million m3 total and 19 million m3 regulating storage capacity). The increased storage capacity will help reduce non-beneficial evaporation in downstream areas during the three-month flood season in early summer, and may also reduce groundwater recharge (which in turn may be largely offset by recharge from the areas irrigated from the controlled releases). These changes will be considered in the basin-wide management of consumptive use.
Alagou Dam and Appurtenant Structures
21. The main functions of Alagou reservoir will be controlling floods and providing water supply for industry and irrigated agriculture of about 7,130 ha downstream. Alagou dam, an asphalt concrete core (ACC) sand-gravel dam, is planned with a height of 105 m and a crest of 365 m. Major appurtenant structures will include an open spillway with a discharge capacity of 1,234 m3 /s, and a diversion and flash tunnel with a length of 668 m.
22. The particular design and construction of the dam has been chosen to ensure dam safety given the big height of the dam. The following actions will be taken during the dam’s design and construction stages:
(a) Conduct an in-depth study of the engineering characteristics of the dam material consisting of asphalt concrete, especially the parameters of stress-strain relationship and
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deformation. The mix composition of asphalt concrete should be determined through a stress-strain analysis and an evaluation of the deformation coordination and stability of the dam shell and core wall; and (b) Further investigate and analyze thickness distribution, density, amount of soil, and deformation features of the slide block, evaluate the impact of possible sedimentation on the ACC under water, and if necessary, the methods of treatment defined.
Meiyaogou Dam and Appurtenant Structures
23. The key functions of Meiyaogou reservoir will be flood control, industrial water supply amounting to 14.6 million m3, and irrigation water supply. The dam, a concrete face sand-gravel dam, is planned with a height of 45 m and a crest of 525 m. Main appurtenant structures include an open spillway with a discharge capacity of 300 m3/s, a diversion and discharge tunnel with a length of 220 m, and a water supply tunnel with a length of 131 m.
24. Meiyaogou reservoir is located at the upper edge of the alluvial fan of the Meiyaogou River. The dam site is in a vertical seepage zone due to the lack of a better site for the dam. The dam will need to be constructed with three sides, the only choice in this case to form a reservoir. The main technical issues of such a construction are related to (i) full seepage control at the bed of the reservoir; (ii) construction of the dam culvert; and (iii) construction of the spillway of the dam.
25. To ensure full seepage control at the reservoir bed, geotechnical composite material (in this case a “geo-textile - geo-membrane - geo-textile” type polyethylene composite geo- membrane) would be used for the entire reservoir bed. The size of the material will be determined by tests on top broken, punctured broken, and penetration. The recommended specification of the material for technical design and budgeting during the design stage is 300 g/m2 -0.6 mm -300 g/m2.
26. The construction of the dam culvert is associated with certain risk resulting from the foundation sedimentation, including breakage of the culvert pile, leakage, and erosion of the dam. Yet in Xinjiang province about 90% of this type of dam is designed with a culvert in the dam. To ensure safety of the design, the following actions will be taken during the design and construction stages:
(a) Control dam foundation deformation by carefully studying engineering characteristics of sandy gravel in the foundation, and by further checking grade and compactness indexes. (b) Apply short culvert pipes with a length of less than 8 m, and enhance the pipe wall to increase stiffness of the culvert for countering uneven sedimentation and enhancing crack resistance ability. (c) Apply corbels with a width of 1.0 m wide and a length of 1.0 m for controlling sedimentation deformation at the joints of the culvert pipes, and preventing breakage of sealing structures of expansion joints.
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(d) Apply deformation expansion joints with a width of 3 cm wide for decreasing crushing stress between upper and lower sections. Copper and rubber sealing should be laid out at each joint. The nose of the copper sealing should be longer than normal for adaption of deformation. Three cm thick of polythene obdurate plate are filled at deformation expansion joints. (e) Apply continuous grading materials with the maximum grain less than 40 mm to backfill; the thickness of the backfill materials should not be less than 60 cm. Non-woven (or mineral filter) materials which satisfy the filter requirements should be filled in the outlet of culvert pipes.
27. For the construction of the spillway of the dam, the Ministry of Water Resources (MWR), together with State Power Corporation (SPC), conducted studies on spilling over concrete face rock-fill dams (No. 92-SZ04) and on key technologies of spilling over concrete face rock-fill dams (No. PKSJ006-03-01). Results of the studies have been officially accepted, and successfully applied to concrete face rock-fill dams in Xinjiang Uygur Autonomous Region, and in Yunnan and Liaoning Provinces. To ensure the safety of the design and construction of Meiyaogou dam, the following actions will be take during the design and construction phases:
(a) Apply a proper shape of the spillway and curved practical weir (with retaining walls at downstream of dam top), and aequilate chutes for avoiding the impacts of raised hydrodynamic pressure from the conciliation flow to the spillway. (b) Different from regular spillways layout which set transverse joints at the bottom, the spillway chute should be divided into several section plates by aeration troughs. These sections are overlap connected vertically. Upper and lower sections should be lapped at the points of jet flow of the aeration trough buckets, with transverse joint settled. This layout could utilize cavities created by jet flows to separate high speed flows and transverse joints in the chutes, to avoid the transferring of hydrodynamic pressure to bottom plates, and to prevent the creation of jacking force which could lead to bottom plate instability and failure. At the aeration troughs, sliding hinge structures are applied to connect upper and lower sections. This could adapt chute extension and a small amount of rotation, and eliminate the negative impacts of statically indeterminate stress. Should sedimentation of the dam under the chute occur, this structure could ensure that the chute has sufficient ability to adapt to the deformation and avoid break led by deformation of bottom plate sedimentation. (c) Apply a resistance skateboard and embedded anchor lacing to the anchorage connecting the spillway and the rock-fill dam. (d) Apply high seepage coefficient grading of rock-fill materials under the spillway bottom plate, with a seepage coefficient larger than Ax10-3cm/s, continuous grading filling materials, and maximum grain being less than 80 mm.
Ertanggou Dam and Appurtenant Structures
28. Ertanggou reservoir will have 25 million m3 total reservoir capacity and 19 million m3 regulating storage capacity. Its main functions will be flood control, irrigation water supply
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(13,800 hectare), and industrial water supply (4.16 million m3 /yr). Ertanggou dam will be an asphalt concrete core (ACC) sand-gravel dam, with a height of 64.8 m and a crest of 323 m. Major structures besides the dam are an open spillway with a discharge capacity of 292 m3/s, an irrigation tunnel with a length of 403 m, and a discharge and flash tunnel with a length of 357 m.
29. The dam will be built on a deep cover at the dam site. Given the steep slope at the right bank and a deep-cover layer of 65 m, sedimentation of the dam body and its foundation would lead to cracks between the asphalt concrete core and its base connecting to the bank. As a result, seepage is likely to occur along the seepage path in the core due to hydro-fracture under water pressure. Therefore, dam sedimentation is a key risk for the safety of the Ertanggou dam. The following actions should be taken during the design and construction stages to ensure better sedimentation control and deformation coordination:
(a) Conduct and in-depth study on the engineering characteristics of the materials for the dam body, especially on deformation and stress-strain relationship. (b) Conduct an in-depth study on the engineering characteristics of the deep-cover layer, including the layers of the cover and their density and particle size composition; strength characteristics; and loading capacity, deformation parameters and stress-strain parameters. (c) Conduct a study on the mix proportions and engineering characteristics of the asphalt concrete. (d) Conduct a study on the coordination of asphalt concrete core with the dam and foundation using the Duncan-Chang E-B Model for stress-strain analysis, in order to assess the possibility of core wall cracks and the continuity of seepage control.
Component 3: Real Water Savings in Irrigated Agriculture (US$39.551 million)
30. Carrying out of irrigation management measures in the Turpan River Basin including inter alia: (a) engineering measures such as construction or rehabilitation of the main canals delivering water from the three new reservoirs to water users downstream, a switch from furrow to drip irrigation, land leveling, canal lining, and improved drainage; (b) agronomic measures such as cropping pattern changes, plant breeding, soil fertility and fertilization, soil salinity control, plastic-culture with mulching, tunnels and greenhouses, and tillage and weed control; and (c) other irrigation management measures such as irrigation scheduling, volumetric water charges, increase of water charges, and the conjunctive use of surface and groundwater.
31. The combination of the above measures will allow a reduction in the currently high irrigation water allocations, and decrease non-beneficial evaporation in canals and on-farm. They will be accompanied by strict measures to stop the expansion of irrigated areas, so that groundwater abstraction will decrease in the project irrigation areas in Tuokexun County, Turpan City, and Shanshan County (covering a total of 10,763 ha, or about 10 percent of the total irrigated area in the basin). Some of these areas, which in the past have been irrigated with groundwater, will be supplied with surface water from the new or rehabilitated canals. A number of groundwater wells will then be shut down.
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Component 4: Preservation of a Karez Water Supply System (US$0.503 million)
32. Rehabilitation of a Karez Water System in Turpan City.
33. One of the around 300 ancient Karez water supply systems that continue to be in use in the Turpan basin will be rehabilitated. The selected Karez system is in Turpan City with a flow capacity of 0.014 m3 /s and a length of 2.8 km, including culverts of 2.7 km, open channels of 0.18 km, and 14 vertical wells. This will be the first application of this approach in Turpan Prefecture, and is intended to serve as a pilot for preserving more of the still remaining ancient water supply systems.
Component 5: Institutional Capacity Building and Project Management (US$1.889 million)
34. Provision of technical assistance and support for Project management, including, inter alia: (a) training, workshops, and domestic and overseas study tours on integrated water resources management, the ET management concept, management of irrigation water with ET- based irrigation water rights, the formation and functioning of WUAs in the areas of the Turpan River Basin irrigation areas, monitoring and evaluation, management information systems, operation and maintenance for irrigation systems, and the safeguards, procurement and financial management requirements of the Project; (b) provision of office equipment and off- road working vehicles for Project management and supervision; (c) carrying out of measures for the enforcement of the new water rights system to be established under the Project; and (d) support for Project management and supervision.
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Table to Annex 4 Water Consumption Balance in Turpan Basin
Items in Baseline Year Project Completion Year 2015 Target Year 2025 Water Area Amount Area Amount Change to Baseline Area Amount Change to Baseline Balance Water Items mm mm mm million million million million million
Equation Hectare Hectare mm ％ Hectare mm ％ m3 m3 m3 m3 m3 1. Precipitation 1,916,744 14.95 286.59 1,916,744 14.95 286.59 1,916,663 14.95 286.59 Available 2. Water inflow 874.00 874.00 874.00 Water Resources 3. Groundwater base flow 41.00 41.00 41.00 Total Available 1201.59 1201.59 1201.59 1. Ecological ET 484,188 85.10 412.04 484,188 412.04 0 498,119 412.04 0 1.1 Man-made ET 2,950 208.52 6.15 1.2 Natural ET 481,238 84.34 405.88 2. Water Surface ET 14,013 240.45 33.69 14,197 29.48 -4.21 -13 14,197 29.48 -4.21 -13 2.1 Man-made ET 963 293.68 2.83 1,147 5.20 2.38 84 1,147 5.21 2.38 84 2.2 Natural ET 13,050 236.52 30.87 13,050 24.28 -6.59 -21 13,050 24.28 -6.59 -21 Water 3. Agricultural ET 114,206 542.49 619.56 114,206 484.95 553.84 -57.54 -65.72 -11 114,206 318.62 363.89 -223.87 -255.67 -41 Consumption 3.1 Crop ET 94,271 630.62 594.50 85,942 603.76 518.89 -27.27 -76.02 54,275 533.87 289.76 -97.16 -305.15 3.2 Non crop ET 19,935 125.72 25.06 28,264 123.68 34.96 0.00 10.31 59,931 123.69 74.13 0.00 49.47 4. Unused Land ET 1,304,338 25.80 336.57 1,304,338 336.57 0.00 0 1,304,338 336.57 0.00 0.00 0 5. Industries 15.42 43.61 28.19 183 100.00 84.58 549 6. Domestic Use 7.03 11.35 4.32 62 20.00 12.97 185 Total Consumption 1,424.30 1,386.89 -37.41 -3 1261.97 -162.33 -11 Outflow 7.86 7.86 0.00 0 7.86 0.00 0 Change in Groundwater Storage -230.57 -193.16 37.41 -16 -68.24 162.33 -70
Note: 1. Change in groundwater storage = total available water resources – total water consumption – outflows 2. The target year by which the prefecture government plans to fully eliminate groundwater overdraft for ecosystem preservation in Turpan River Basin 3. By 2025 the increased water availability will be 85 million m3 for industry, 13 million m3 for domestic use and 162 million m3 for reduced groundwater overdraft. The above water availability originates from the reduced agricultural ET 256 million m3 and NBET 305million m3 4. Reduced agricultural ET comes from abandoning arable land by building green house and water saving measures. It assumed that 25,000 mu; 35,000 mu and 60,000 mu of irrigated areas separately for 12th, 13th and 14th 5- year plan are going to be abandoned by building green house and merging remote small villages. 5. It assumed that ET saving rate is 76% by abandon, 40% by greenhouse and 25% by water saving measures, which should be verified during project implementation. 6. The industrial and domestic water consuming rates are assumed as 50% and 30% separately, which need to be verified too with field survey yearly.
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Annex 5: Project Costs CHINA XINJIANG TURPAN WATER CONSERVATION PROJECT
Table 1 - Project Cost Summary1 (US$ million) Component Local Foreign Total 1. ET-based Integrated River Basin Management 1.81 0.35 2.16 2. Increase of Upstream Storage Capacity 136.79 5.75 142.53 3.Water Savings in Irrigated Agriculture 32.66 6.89 39.55 4. Preservation of a Karez System 0.46 0.04 0.50 5. Institutional Capacity Building and Project Management 1.44 0.44 1.89 2 Total Base Project Costs 173.16 13.48 186.63 Physical/price Contingencies 8.1 0.99 9.09
Total Project Costs 181.25 14.47 195.72
Interest During Implementation 8.11 8.11 Front-end fees 0.25 0.25 Total Financing Required 181.25 22.82 204.08
Table 2 - Project Financing Plan (US$’000)
Component IBRD The Government Total Amount % Amount % Amount %
1. ET-based Integrated River Basin Management 1,634 76 522 24 2,156 100 2. Increase of Upstream Storage Capacity 69,399 49 73,135 51 142,534 100 3. Irrigated Agricultural Water Savings 26,543 67 13,008 33 39,551 100 4. Karez Preservation 357 71 146 29 503 100 5. Institutional Capacity Building and Project Management 1,817 96 72 4 1,889 100 Total Base Project Costs 99,750 53% 86,882 47% 186,632 Physical/Price Contingencies 9,087 100 9,087 Interest During Implementation - - 8,106 100 8,106 Front-end fees 250 100 - - 250 Total Financing Required 100,000 49 104,075 51 204,075 100
1 Detailed cost tables and financing plan are available on file. 2 Identifiable taxes and duties are US$2.93 million (only imposed on the goods and equipment), and the total project cost, net of taxes, is US$192.79 million. Therefore, the share of taxes is 1.5%.
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Table 3 - Project Financing Plan (RMB Yuan ‘000)
Component IBRD The Government Total Amount % Amount % Amount %
1. ET-based Integrated River Basin Management 11,111 76 3,550 24 14,661 100 2. Increase of Upstream Storage Capacity 471,913 49 497,317 51 969,230 100 3. Irrigated Agricultural Water Savings 180,493 67 88,454 33 268,947 100 4. Kariz Preservation 2,427 71 990 29 3,417 100 5. Institutional Capacity Building and Project Management 12,356 96 488 4 12,844 100 1 Total Base Project Costs 678,300 53 590,798 47 1,269,098 Physical/price Contingencies 61,795 100 61,795 Interest During Implementation - - 55,118 100 55,118 Front-end fees 1,700 100 - - 1,700 Total Financing Required 680,000 49 707,711 51 1,387,711 100
Table 4 Counterpart /WB Funding by Levels of Government (RMB Yuan million)
Fiscal Year 2010 2011 2012 2013 2014 2015 Sub-total Regional CPF 0.00 60 40 0.00 0.00 0.00 100 Level2 Subtotal 0.06 9.62 7.45 4.25 3.97 3.17 28.52 Prefecture WB 0.06 7.89 6.02 3.31 3.04 2.24 22.56 CPF 0.00 1.73 1.43 0.93 0.93 0.93 5.97 Subtotal 0.49 111.98 117.90 46.50 20.36 20.36 317.59 Turpan 0.49 66.32 84.64 27.63 9.19 9.19 197.47 County WB CPF 0.00 45.66 33.26 18.87 11.16 11.16 120.12 Subtotal 0.55 194.92 178.00 53.00 20.83 10.09 457.38 Shanshan 0.55 85.44 98.71 23.71 6.01 5.84 220.26 County WB CPF 0.00 109.48 79.30 29.28 14.81 4.24 237.12 Subtotal 0.60 79.37 152.76 170.77 62.93 17.78 484.22 Tuokexun 0.60 38.12 97.46 86.37 8.59 8.59 239.72 County WB CPF 0.00 41.26 55.31 84.40 54.34 9.20 244.50 Total 1.70 455.90 496.11 274.52 108.08 51.40 1387.71 Total WB 1.70 197.76 286.82 141.03 26.83 25.86 680.00 CPF 0.00 258.14 209.30 133.49 81.25 25.54 707.71
1 Regional level counterpart funding is for Alagou Reservoir (Tuokexun County) only.
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Annex 6: Implementation Arrangements CHINA XINJIANG TURPAN WATER CONSERVATION PROJECT
Project Management and Implementation
1. The proposed organizations for project management and implementation have been established at the regional, prefecture and county levels, including (a) the PLG and its PLGO at the regional level; (b) the PLG, PMO and EG at the prefecture level; (c) PLG, PMO and EG at the county level for Turpan, Shanshan and Tuokexun counties; and (d) DSP at the prefecture level. The organizational chart is given in the Appendix to this Annex.
Regional PLG
2. The Regional PLG would be chaired by the Assistant Chairman of Xinjiang, and responsible for overall leading in Project implementation, decision making on key project issues and interagency coordination at the Regional level. Major responsibilities of the regional PLG are:
(a) Overall responsibility at the regional level for preparation, management, and implementation of the project. (b) Review reports from the regional PCO and the prefecture PLG on the status of the project preparation, management, and implementation on a regular basis. (c) Conduct meetings at the regional level with responsible leaders from the regional DRC, FB, WRB, AB, EPB and prefecture WRB to resolve key issues with project preparation, management, and implementation.
Regional PLGO
3. The Regional PLGO would be chaired by the Deputy Director General of Xinjiang’s Water Resources Bureau, and be responsible for daily project coordination, supervision and providing advice on Project implementation, and dissemination of the Project innovations to other parts of Xinjiang. Major responsibilities of the regional PLGO are:
(a) Promote cooperation and coordination among the division chiefs from the related government departments at the regional level and be responsible for internal review and approval of the FSR, EIA, RAP, CPF and Land Acquisition for this project. (b) Provide technical advice to the prefecture PMO on project preparation and implementation, particularly on how the project could facilitate implementation of water resources development in Turpan Prefecture under the eleventh five-year plan. (c) Extend and replicate the experience and lessons of project implementation to the other areas of Xinjiang Uygur Autonomous Region.
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Prefecture PLG
4. The Prefecture PLG would be chaired by the Prefecture’s Party Secretary and would be responsible for leading project implementation, decision making on key project issues, and interagency coordination at the Prefecture level. Major responsibilities of the prefecture PLG are:
(a) Take overall lead responsibility at the prefecture level for preparation, management, and implementation of the project. (b) Review reports from the prefecture PMO and its EG as well as the county PMOs on the status of the project preparation, management, and implementation on a regular basis. (c) Convene meetings at the prefecture level with the responsible leaders from the prefecture DRC, FB, WRB, AB, EPB and county WRB to resolve the key issues with project preparation, management and implementation.
Prefecture PMO
5. The Prefecture PMO would be chaired by the Director of the Prefecture’s Water Resources Bureau and be responsible for project management and implementation. Major responsibilities of the prefecture PMO are:
(a) Provide technical guidance to the three county PMOs with regard to project management and implementation in accordance with the project legal covenants and recommendations from World Bank missions. (b) Prepare the following reports throughout the project implementation period for Bank review and comments: (i) annual work plan summarizing the project activities, together with EMP, PMP, RAP, EMDP and DSR, for the following calendar year; (ii) the semi- annual implementation progress report with MIS progress table; and (iii) annual M&E report with the table on key performance indicators. (c) Operate and maintain the Management Information System (MIS) at the prefecture level. Data and information in the system should be updated once a month with the contract information directly from the supervision engineers or the three county PMOs. (d) Supervise the quality of construction and quality of project implementation by organizing working meetings in the field together with the three county PMOs as necessary, to discuss problems and work out solutions. (e) Organize training and workshops at the project level on Bank guidelines on procurement, financial management, WUA development, M&E, O&M, MIS and dam safety management for participation of staff from the regional PCO and the three county PMOs. (f) Review and supervise compliance with legal covenants included in the Loan Agreement and Project Agreement. (g) Pre-review procurement plans and withdrawal or reimbursement applications from the three county PMOs. (h) Prepare regulations and rules for project management and implementation, including project management regulations, internal reimbursement procedures, and procurement
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management regulations, operational guidelines for data and information collection, and inputs for the MIS. (i) Organize the mid-term review of the project with the three county PMOs, and prepare and consolidate the mid-term review report for the project. (j) Organize the project completion review, and prepare and consolidate the project Implementation Completion Report (ICR) for the project. (k) Function as the project PMO responsible for the entire project to communicate with the World Bank and the other implementing agencies. Organize the county PMOs to receive World Bank supervision missions with necessary technical cooperation and logistic assistance. (l) Translate the related World Bank faxes and documents into Chinese and distribute them to the other implementing agencies.
Prefecture EG
6. The Prefecture EG would be composed of experts in selected fields required for project implementation at the Prefecture level. The EG experts would be employed by the prefecture PMO to fulfill assignments designated during project preparation and implementation. The Expert Group at the prefecture level includes experts in the following fields:
(a) Design, construction, and supervision of stone masonry dams (rock filled grillage type). (b) Irrigated agricultural water saving technologies. (c) Surface and groundwater conservation. (d) Ecosystem and environment protection. (e) Computer technologies. (f) Project management.
Count /City PLG
7. The Project Counties/City PLG would be chaired by the Party Secretary of the respective Project Counties/City and be responsible for leading project implementation, decision making on key project issues, and interagency coordination at the Project Counties/City level. Major responsibilities of the county PLG are:
(a) Overall lead responsibility at the county level for preparation, management and implementation of the project. (b) Review reports from the county PMO and EG on the status of the project preparation, management and implementation on a regular basis. (c) Convene meetings at the county level with the responsible leaders from the county DRC, FB, WRB, AB, EPB and township water management station, as well as the agricultural extension center, to resolve the key issues with project preparation, management, and implementation.
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Count/City PMO
8. The Project Counties/City PMO would be chaired by the Director of the Project Counties/City’s Water Resources Bureau, and be responsible for project management and implementation. Major responsibilities of the County PMO are:
(a) Prepare the following reports throughout the project implementation period and submit them to the prefecture PMO for review and comments: (i) annual work plan summarizing the project activities, together with EMP, PMP, RAP, EMDP and DSR, for the following calendar year; (ii) the semi-annual implementing progress report with MIS progress table; and (iii) annual M&E report with the table on key performance indicators. (b) Operate and maintain the Management Information System (MIS) at the county level. Data and information in the system should be updated once a month with contract information from the supervision engineers. (c) Supervise the quality of construction and quality of project implementation and discuss problems in the field with contractors and work out solutions. (d) Attend training and workshops organized by the prefecture PMO and the Bank on Bank guidelines on procurement, financial management, WUA development, M&E, O&M, MIS and dam safety management. (e) Prepare regulations and rules for project management and implementation, including project management regulations, internal reimbursement procedures, procurement management regulations, operational guidelines for data and information collection and inputs for the MIS. (f) Attend the mid-term review of the project and prepare the mid-term review report for the project under technical guidance from the prefecture PMO. (g) Attend the project completion review and prepare the Implementation Completion Report (ICR) for the project under technical guidance from the prefecture PMO.
Count/City EG
9. The Project Counties/City EG would be composed of experts in selected fields required for project implementation at the Project Counties/ City level. EG experts would be employed by the county PMO to fulfill the assignments designated by the county PMO during project preparation and implementation. The Expert Group at the county level includes the following experts:
(a) Irrigation engineer experienced in construction supervision. (b) Agricultural specialist with experience in irrigated agricultural water savings. (c) Staff with computer technology experience. (d) Project management.
Water User Associations (WUA)
10. The prefecture PMO will be responsible for establishment of at least 43 WUAs during project implementation to cover the irrigated areas applied with water-saving technologies
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financed under the project. These WUAs will organize farmers to participate in the whole process of project design, construction, supervision and O&M of their on-farm works or water saving equipment installed, and will also participate in the water management to control the consumptive use of water.
M&E of Outcomes/Results
11. The Prefecture PMO, supported by the three County PMOs, will be responsible for designing and putting in place a suitable M&E system satisfactory to the Bank. The Prefecture PMO has committed to introduce a computer based MIS and a separate M&E System to support sound project implementation management. The MIS will enable close management of the procurement process and quick disbursement of funds.
12. The M&E system has been designed at the prefecture level for the whole river basin focusing on measuring project outcomes and impact. Each PMO will carry out its respective work supported by its expert group. The PMO at the county level will process the data and pass it on to the Prefecture PMO. At this level, Project-wide consolidation of data would occur that would lead to the preparation of periodic progress reports. The M&E system would monitor project outcomes and impacts and would result in the production of consolidated project–wide M&E reports. Key Performance Indicators (KPIs), covering all of the components of the Project, are detailed in Annex 3.
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Annex 6 - Appendix Project Organizational Chart for Project Management and Implementation
Regional PLG
Regional PCO Prefecture PLG
Prefecture DSP Prefecture PMO Prefecture EG
Shanshan Turpan Tuokexun County PMO County PMO County PMO
Shanshan Turpan Tuokexun County EG County EG County EG
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Annex 7: Financial Management and Disbursement Arrangements CHINA XINJIANG TURPAN WATER CONSERVATION PROJECT
Introduction
1. The Financial Management Specialist (FMS) has conducted an assessment of the adequacy of the project financial management system of the Xinjiang Turpan Water Conservation Project. The assessment, based on Financial Management Manual guidelines issued by the Financial Management Sector Board (FMSB) on March 1, 2010, has concluded that the project meets the minimum Bank financial management requirements, as stipulated in BP/OP 10.02. In the FMS’ opinion, the project will maintain adequate financial management arrangement acceptable to the Bank, and as part of the overall arrangements that the borrower has in place for implementing the operation, provide reasonable assurance that the proceeds of the loan will be used for the purposes for which the loan was granted. Financial management risk is the risk that World Bank loan proceeds will not be used for the purposes intended, and is a combination of country, sector, and project specific risk factors. Taking into account the risk mitigation measures proposed under the project, a “Substantial” FM risk rating was assigned to the project at the appraisal stage.
2. Funding sources for the project include the Bank loan and counterpart funds. The Bank loan proceeds will flow from the Bank into a project designated account (DA), to be set up at and managed by Xinjiang Uygur Autonomous Region Finance Bureau (XFB). The loans are then disbursed to county PMOs, via the municipal and the county finance bureaus, based on withdrawal applications. The Bank loan agreement will be signed between the Bank and the People’s Republic of China, through its Ministry of Finance (MOF). On-lending agreements will be signed between MOF and the Xinjiang Uygur Autonomous Region, through XFB. XFB will further on lend to Turpan municipal finance bureau, who will then on-lend to county finance bureaus. Loan repayment will be borne by the three counties (Turpan, Shanshan and Tuokexun) based on their usage share of the Bank loan. Counterpart funds will comprise of T-bonds, central government fund transfers, county government budget, and contributions from beneficiary companies. Households will be required to make some contributions, either in cash or in kind.
3. No outstanding audits or audit issues exist with any of the implementing entities involved in the proposed project. However, the task team will continue to be attentive to financial management matters during project supervisions.
Country Issues
4. To date, no CFAA has been carried out by the Bank for China. Our knowledge of the system is however fairly comprehensive, thanks to several studies carried out by the Government, the Bank and others.1 Based on the studies and material produced, our
1 Financial Management and Governance Issues in China (ADB 2000) Public Sector Management Issues in China (Christine Wong 2005) Government Budgeting and Accounting Reforms in China (Lou Jiwei 2001) China ROSC A&A review (World Bank 2009). 51 observations of developments in the areas of public expenditures, accounting and auditing, and Bank experience with China projects for the past several years, we noted that substantial achievement has been made in the aforementioned areas, and further improvement is expected in the next few years. The Government of China realizes the importance of establishing and maintaining an efficient and effective market mechanism to ensure transparency and accountability, and minimize potential for fraud or corruption.
5. Due to rather unique arrangement by the Government of China, funding (particularly Bank loan/grants) of Bank projects is controlled and monitored by the MOF and its extensions at the sub-national level, (i.e., finance bureaus at provincial, municipal /prefecture and county level). However, project activities are usually carried out by implementing entities of a specific industry or sector, due to the level and complexity of expertise involved. While this segregation of duties provides added fiduciary assurance, the above arrangement then usually requires more coordination on the project, as the multi- level management of the funding and implementation mechanism sometimes works to the detriment of smooth project implementation.
Summary Project Description
6. The estimated base cost of the proposed project is US$ 199.13 million. The proposed Bank loan is US$ 100 million. See Annex 4 for a detailed project description.
Audit Arrangements
7. The Bank requires that project financial statements be audited in accordance with standards acceptable to the Bank. In line with other Bank financed projects in China, the project will be audited in accordance with International Auditing Standards and the Government Auditing Standards of the People's Republic of China. Xinjiang Uygur Autonomous Region Audit Office (XAO) has been identified as auditors for the project. Annual audit reports will be issued by XAO. The Bank currently accepts audit reports issued by China National Audit Office (CNAO) or provincial/regional audit bureaus/offices for which CNAO is ultimately responsible.
8. The annual audit report of project financial statements will be due to the Bank within 6 months after the end of each calendar year. This requirement is stipulated in the loan agreement. The responsible agency and timing are summarized as follows:
Audit Report Submitted by Due date Project consolidated financial Turpan Municipal PMO June 30 of each calendar statements (TPMO) year
Risk Assessment and Mitigation
9. The following risks, with corresponding mitigating measures, have been identified during the assessment:
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Risk Risk Incorporated Risk Risk Conditions Rating Mitigating Measures Rating after of before Mitigating Negotiations, Mitigating Measures Board or Measures Effectiveness Inherent Risk Country level Modest Continuous dialogue with related Modest government entities and technical assistance from the Bank will help the government to improve its public sector financial management. In the short-term, annual audit requirements will reduce the risk that project funds are not used for their intended purposes. For those areas where the government system cannot be used, the Bank’s specific requirements will be embedded into the project financial management system. Entity Level High Turpan Municipality and the Substantial . project related counties are all inexperienced with Bank financed projects. The low capacity of the counties and communities increase the FM risk. However, guidance and supervision from the provincial level can, to some extent, mitigate this weakness. In addition, well-designed training sessions will be provided to project financial staff during project implementation. Project Level High Turpan Municipal PMO will be Substantial responsible for oversight of the county activities. Additionally, finance bureaus at Turpan municipality and county levels will review and manage project funds to ensure appropriate usage. Furthermore, in order to mitigate the risk, a well prepared project financial management manual (FMM) have been finalized. The FMM will provide useful guidance to project financial staff. Also, an integrated MIS system will be used in the proposed project, which can strengthen project financial management.
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Control Risk Budgeting High A standardized project annual plan Substantial with progress report has been designed for the project which will ease project budgeting, execution, and monitoring. Each PMO is required to conduct variance analysis semi-annually and report the results to the Bank. Accounting Substantial County PMOs will be the lowest Modest level for maintaining project accounts. They will follow the accounting policies and regulations documented in the FMM. The use of an integrated computerized project software package by all the responsible PMOs will reduce accounting risk. Also, a well-designed training workshop will be provided to all financial management staff in PMOs before and during project implementation. Internal Control High Detailed internal control Substantial FMM is a procedures covering request, condition of review, approval, certification, negotiation. supervision and reporting have been established within the project. These procedures will be included in the FMM. Funds Flow High Separate project bank accounts for Substantial Bank and counterpart funds will be opened by each finance bureau level. Service standards have been set up for application review and funds delivery procedures, and are detailed in the FMM. Financial Substantial The format and content of Modest Reporting financial statements have been stipulated by MOF. The project FMM will specify the format, content and timing requirements for such financial reporting. TPMO will consolidate the project financial statements, with the assistance of XFB. Auditing Modest CNAO is required to conduct a Modest detailed review of the first year audit conducted by XAO. Overall High Substantial
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10. The overall FM risk rating assigned to this project is Substantial, provided the proposed mitigating measures are carried out. The FMS will monitor the effectiveness of mitigation measures, and the project FM risk during project implementation.
Funds Flow and Disbursement Arrangements
11. Four disbursement methods are available for the project: advance, reimbursement, direct payment and special commitment. Supporting documents required for Bank disbursement under different disbursement methods will be documented in the Disbursement Letter issued by the Bank. Applications will be supported by the list of payments against the contracts, and records evidencing eligible expenditures, e.g., copies of receipts, supplier invoices, for all contracts subject to Bank prior review, as indicated in the table below.
Expenditure Category Contracts Equivalent or More than US$ Equivalent Works 5,000,000 Goods, other than for WUA Grants 500,000 Consultant services and Training 100,000 WUA Grants All
12. For expenditures against contract amounts indicated in the table below, Statements of Expenditure (SOE) will be furnished as supporting documentation to request reimbursement and for reporting eligible expenditures paid from the DA.
Expenditure Category Contracts Less than US$ Equivalent Works 5,000,000 Goods, other than for WUA Grants 500,000 Consultant services and Training 100,000
13. One designated account (DA) in US dollar will be opened at a commercial bank acceptable to the Bank and will be managed by XFB. The ceiling of the DA will be determined and documented in the Disbursement Letter.
14. The Bank loan would be disbursed against eligible expenditures (inclusive of taxes) as in the following table:
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IBRD Loan Allocated Percentage of Category Amount Expenditures US$’000 to be financed Works for:
(a) the Ertanggou Dam; 22,006 64%
(b) the Meiyaogou Dam; 15,325 87%
(c) the Alargou Dam; and 22,864 80%
(d) the canals and the Karez Water System 6,897 88% Goods (other than for WUAs Grants) 29,695 100%
Consultants’ services and Training 2,820 100%
WUA Grants 143 100%
Front-end fee 250 100%
Total 100,000
“WUA funds” refers to the formation and functioning of water users associations (WUA) in the selected project irrigation areas. 43 WUAs will be established under the project. Funds would be used for disbursement of expenditures for the establishment and operation of WUAs through community participation in procurement. The agreed eligible expenditures include office furniture (tables and chairs, file cabinet) supplies, equipment, and other small expenses incurred for the operation of WUAs as outlined in the procurement plan.
15. The prefecture PMO will conduct the procurement work related to WUAs, which would include: (a) rehabilitation or construction of the on-farm works; (b) installation of water-saving technologies or equipment in the command areas of WUAs; and (c) establishment of WUAs. The WUAs, once established, could participate in water management and in project design, construction, supervision, and O&M of the on-farm works and water saving equipment installed, as well as water management to control the consumptive use of water.
16. “Training” means the reasonable cost of travel, lodging and per diem for trainees attending training, study tours, workshops and seminars and the cost of delivering training (excluding consultants’ fees) such as rental of training space and training equipment and other logistical costs.
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17. Retroactive financing will be allowed for this project for an amount of US$500,000 and incurred after May 11, 2010. The date of eligible expenditures and the amount for the retroactive financing are specified in the loan agreement.
18. Xinjiang Finance Bureau (XFB) will be directly responsible for the management, maintenance and reconciliation of DA activities. Supporting documents required for Bank disbursements will be prepared and submitted by respective county PMOs, through the county finance bureau, the prefecture PMO, the prefecture finance bureau for approval and verification, before sending to XFB for further disbursement processing. The flow of funds and withdrawal applications (WAs) are as shown in diagram.
World Bank
XFB
Prefecture PMO Prefecture FB
County PMO County FB
WA Flow
Contractor/ Funds Flow Supplier
Financial Management and Reporting Arrangements
Strengths
19. XFB has some experience with managing designated accounts and are familiar with the disbursement requirements and procedures for Bank financed projects in the health and education sectors.
Weaknesses and Action Plan
20. The proposed project will be implemented by Turpan municipality, which does not have previous Bank project experience. This is also the first time for these 3 counties to implement a Bank project and none of the financial staff has Bank project experience. The following action plan has been identified for addressing the weaknesses: 57
Significant weaknesses Actions Responsible Completion Person Date Project financial staff do not FM training plan to be XFB, PPMO Before and have experience with Bank prepared and all project and TPMO during project projects. financial staff to be trained implementation before and during project implementation.
This is the first time for An FMM has been prepared TPMO Completed Turpan municipality and these which will standardize project before project three counties to implement FM procedures and provide negotiation. the Bank project. guidance to project financial staff.
Implementing Agencies
21. A Project Steering Committee (PSC) has been established at the provincial level. The PSC will serve as a regular consultative and coordination body, and will provide substantive guidance in overall project implementation and facilitate inter-agency coordination.
22. The Prefecture PMO has been set up and comprises a director, two project officers, a procurement officer, an accountant and a cashier. They will handle part of the project implementation, and will be responsible for oversight over the 3 county PMOs. When needed, they will provide guidance and training to lower level project staff.
23. The county PMOs will be in charge of day-to-day project implementation and be responsible for accounting treatment of project activities. Each county PMO consists of a director, a project officer, a procurement officer, an accountant, and a cashier.
Budgeting
24. County PMOs are responsible for preparing the county annual plans. A standardized project annual plan has been designed, so that the preparation, consolidation, and monitoring of the annual plan will be more effective and efficient.
25. In order to ensure that project activities will be implemented as planned, each PMO will conduct a semi-annual variance analysis. To make sure that the counterpart funds are appropriated in a timely manner during project implementation, counterpart funds availability will also be reflected in the budget report. A standardized project progress report has been designed. Consolidated semi-annual variance analysis will be furnished to the Bank, along with the unaudited semi-annual financial reports.
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Accounting
26. The administration, accounting, and reporting of the project will be set up in accordance with Circular #13: “Accounting Regulations for World Bank Financed Projects” issued in January 2000 by MOF. The circular provides in-depth instructions of the accounting treatment of project activities, and covers the following:
(a) Chart of account (b) Detailed accounting instructions for each project account (c) Standard set of project financial statements (d) Instructions on the preparation of project financial statements
27. The standard set of project financial statements mentioned above has been agreed between the Bank and MOF, and applies to all Bank projects appraised after July 1, 1998 and includes the following:
(a) Balance sheet of the project (b) Statement of sources and uses of fund by project components (c) Statement of implementation of loan agreement (d) Statement of designated accounts (e) Notes to the financial statements
28. The prefecture PMO and each county PMO will be managing, monitoring and maintaining their respective project accounting records for the components they execute. Original supporting documents for project activities will be retained by the prefecture PMO and the county PMOs. In addition, the prefecture PMO and the county PMOs will prepare their own financial statements, which will then be reviewed and consolidated by the prefecture PMO, before submission to the Bank on a regular basis for review and comment.
29. Adequate project accounting staff, with educational background and work experience commensurate with the work they are expected to assume, is one of the factors critical to successful implementation of project financial management. Based on discussions, observation, and review of the educational background and work experience of the staff identified for financial and accounting positions in implementing entities, the task team noted that financial staff are qualified and appropriate for the work they are expected to assume. However, given that project financial staff do not have previous experience with Bank projects, tailored training courses should be provided to all the project financial staff before or during project implementation.
30. To strengthen financial management capacity and achieve consistent quality of accounting work, the task team has suggested that a project financial management manual (FMM) be prepared as a part of the operation manual. The FMM will provide detailed guidelines on financial management, including internal controls, accounting procedures, fund and asset management, withdrawal application procedures, financial reporting and auditing arrangement, etc. The FMM has been finalized, taking account Bank comments, and will be distributed to all relevant financial staff before project effectiveness.
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31. The project has agreed to utilize an integrated computerized project software package. The task team will monitor the accounting process especially during the initial stage, to ensure that complete and accurate financial information will be provided in a timely manner.
32. County PMOs will be the lowest level for maintaining project accounting. Each county PMO will be in charge of county project implementation and be responsible for the accounting treatment of project activities implemented within the county.
Internal Control and Internal Auditing
33. The related accounting policy, procedures and regulations were issued by MOF and a financial management manual will be prepared and issued to uniformly align the financial management and disbursement requirements among PMOs.
34. There is no formal independent Internal Audit department for the project. However, this will not impact on the project’s financial management, as the management and monitoring from various levels of finance bureaus and PMOs, which reviews each withdrawal application, and annual external audit will serve as the mechanism to ensure that financial management controls are functioning appropriately.
35. For WUA activities, the Prefecture PMO or County PMO would prepare an annual WUA establishment work plan, include it in its annual investment plan, and submit it to the Bank for approval. WUAs would prepare the charter, get registered, and start operation. The Prefecture PMO and county PMOs would conduct inspection and acceptance of each established WUA in accordance with the approved work plan and WUA establishment procedures. Certificates issued by the inspection team will act as the supporting document for disbursement and accounting. Bank’s disbursement would be made against the predetermined amount in accordance with the approved work plan.
Financial Reporting
36. The format and content of project financial statements will be the standard project financial reporting package agreed to between the Bank and MOF, and have been discussed and agreed to with all parties concerned.
37. The Prefecture PMO and each county PMO will prepare the project financial statements on their implemented components, which will then be used by the Prefecture PMO for preparing consolidated project financial statements to be submitted to the Bank on a regular basis for review and comment. Unaudited semi-annual consolidated project financial statements will be prepared and furnished to the Bank by the Prefecture PMO no later than 45 days following each semester (the due dates will be August 15th and February 15th), in form and substance satisfactory to the Bank.
38. WUAs established under the project will issue their expenditure books at least once a year to all WUA members, and get the supporting documents (as indicated in the procurement plan) ready for Bank post review.
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Financial Covenants
39. No specific financial covenants are applicable to the project, except for standard financial covenants, e.g., project audit and interim financial reports.
40. The WUAs established under the project have the obligation to comply with the Anti-Corruption Guidelines and enable audits of its accounts to be carried out with respect of the goods and operating expenditures financed out the proceeds to the Loan.
Supervision Plan
41. The supervision strategy for this project is based on its FM risk rating, which will be evaluated on a regular basis by the FMS in line with the FMSB’s FM Manual, and in consultation with the task team leader.
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Annex 8: Procurement Arrangements CHINA XINJIANG TURPAN WATER CONSERVATION PROJECT
A. General
1. Procurement for the proposed project would be carried out in accordance with the World Bank’s “Guidelines: Procurement under IBRD Loans and IDA Credits” dated May 2004 revised in October 2006; and “Guidelines: Selection and Employment of Consultants by World Bank Borrowers” dated May 2004, revised in October 2006, and the provisions stipulated in the Legal Agreement. The description of various items under different expenditure categories is presented below. For each contract to be financed by the Loan, the different procurement methods or consultant selection methods, the need for prequalification, estimated costs, prior review requirements, and time frame would be agreed between the Borrower and the Bank project team in the Procurement Plan.
Procurement of Works
2. A total of about US$ 67.093 million of works would be required under the project. The works would include: (a) construction of three small and medium reservoir dams under Component 2; (b) lining or rehabilitation of main canals of 47.5km and establishment of on-farm water conservation works of 10763ha under Component 3; and (c) rehabilitation of 2.88km Karez system under Component 4. Procurement will be done using the Bank’s Standard Bidding Documents (SBD) for ICB and Model Bidding Documents (MBD) for NCB agreed with the Bank.
3. International Competitive Bidding (ICB). Construction of reservoir dam estimated to cost US$20 million equivalent or more would be procured under ICB procedures specified in the Procurement Guidelines.
4. National Competitive Bidding (NCB). Any contracts for works estimated to cost less than US$20 million equivalent may be awarded under NCB procedures acceptable to the Bank. Procedures to be followed for National Competitive Bidding shall be those set forth in the Law on 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, with the following clarifications required for compliance with the Guidelines:
(a) All invitations to prequalify or to bid shall be advertised in a newspaper of national circulation in the Borrower’s country, except works contracts that are estimated to cost more than US$100,000 equivalent but less than US$2million equivalent each, or goods contracts that are estimated to cost less than $300,000 equivalent each, which may be advertised in a provincial daily newspaper. 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 of thirty (30) days shall be given to bidders between the date of advertisement in such
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newspaper and the deadline for submission of bids, and the advertisement and bidding documents shall specify the deadline for such submission. (b) Qualification requirements of bidders and the method of evaluating the qualification of each bidder shall be specified in detail in the bidding documents. (c) All bidders that meet the qualification criteria set out in the pre-qualification document shall be allowed to bid and there shall be no limit on the number of pre-qualified bidders. (d) All bidders shall be required to provide security in an amount sufficient to protect the employer in case of breach of contract by the contractor, and the bidding documents shall specify the required form and amount of such security. In place of a bid security, the bidding documents may require that a bidder submit with its bid a signed declaration that, if the bidder withdraws its bid during the bid validity period or, if awarded the contract, the bidder fails to sign the contract or submit any required performance security before the deadline required in the bidding documents, the bidder will be suspended for a period of two years from being awarded any contract with the Borrower, Xinjiang Uygur Autonomous Region, including any of their departments, agencies or administrative units. (e) Bidders will be allowed to submit bids by mail or by hand. The time for opening of all bids shall be the same as the deadline for receipt of such bids. (f) 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. (g) All bid evaluation criteria shall be disclosed in the bidding documents and quantified in monetary terms or expressed in the form of pass/fail requirements. (h) 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 project prefecture. (i) 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 to be substantially responsive to the bidding documents and 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. (j) Each contract financed with the proceeds of the Loan shall provide that the suppliers and contractors shall permit the Bank, 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 the Bank. (k) Government owned enterprises in the Borrower’s country may be permitted to bid or submit a proposal for goods if they can establish that they are legally and financially autonomous, operate under commercial law, and are not a dependent agency of the agency conducting the procurement. (l) All bids should not be rejected solely because the number of bids is less than three (3), and rejection of all bids or rebidding shall not take place without the Bank’s prior written concurrence.
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(m) The results of bid evaluation and contract award shall be published in the national press or provincial press as provided in above (a) or official gazette or free and open access website and shall identify (i) the name of each bidder who submitted a bid, (ii) bid prices as read out at bid opening, (iii) the name and evaluated price of each evaluated bid, (iv) the name of bidders who bids were rejected, and the reasons for their rejection, and (v) the name and offered prices of the winning bidder, as well as the duration and summary scope of the awarded contract. (n) Turpan Prefecture shall have in place provisions for bidders to protest.
5. Shopping. Small works estimated to cost less than US$100,000 equivalent per contract would be awarded through shopping procedures as specified in paragraph 3.5 of the Procurement Guidelines. These works would be suitable for lump sum and fixed-price contracts awarded on the basis of quotations obtained from at least three local contractors. The contract would be on an output basis.
Procurement of Goods
6. A total of about US$29.695 million of goods would be required under the Project. The goods would include mechanical and electric equipment and metal framework for reservoir dams, PVC/PE pipes and fittings, irrigation equipment for water savings, vehicle and office equipment for project management, and software and hardware for water and environment management.
7. International Competitive Bidding (ICB). Contract for goods estimated to cost US$1 million equivalent or more excluding PVC/PE pipes and fittings would be procured under ICB procedures specified in the Procurement Guidelines.
8. National Competitive Bidding (NCB). NCB procedures would be used for procurement of goods costing less than US$1 million equivalent per contract and procurement of PVC/PE pipes and fittings regardless of their value. Contracts that are estimated to cost less than US$300,000 equivalent each may be advertised only in a provincial newspaper.
9. Shopping. Other small value goods would be procured through shopping procedures with contracts under US$100,000 equivalent per contract.
10. Community Participation in Procurement. WUAs established under the project shall procure goods required as indicated in Loan Agreement through community participation in procurement. The Prefecture PMO shall provide procurement training to WUAs to enable them to carry out procurement in accordance with Bank procurement guidelines. Agreed eligible expenditures include office furniture (tables and chairs, file cabinet) supplies, and equipment and other small expenses incurred for operation of WUAs as outlined in the procurement plan. Selection of Consultants
11. A total of about US$ 2.315 million of consultant services would be required. These consulting services would include ET based supplementary planning for irrigated
64 agriculture water saving in Turpan Prefecture, optimization of irrigation quota system in project areas, design and implementation of water rights and water price system with end- users, water resources and environment data development and input (KM system), RS based ET monitoring and management, management information system and other consulting assignments for capacity building and project management. Most services would be provided by consulting firms and some would be provided by individual consultants.
12. Selection of Consulting Firms. The consulting contracts expected to cost more than US$200,000 equivalent per contract will use the Quality and Cost Based Selection (QCBS) or Quality Based Selection (QBS) in conformity with paragraphs 2.1 through 3.4 of the Guidelines. Consulting services under US$200,000 equivalent per contract will use selection based on Consultants Qualifications (CQ). Chinese university, design and research institutes can be shortlisted if they comply with paragraph 1.11 of the Guidelines. In such cases, QBS or CQ would be used instead of QCBS. Short lists of consultants for services estimated to cost less than US$300,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines. Under the circumstances described in paragraph 3.10 of the Consultants guidelines, consultants may be selected and awarded on a sole-source basis, subject to the Bank’s prior approval.
13. Selection of Individual Consultants. Individual consultants would be selected and contracts awarded in accordance with the provisions of paragraphs 5.2 through 5.3 of the consultants guidelines. Under the circumstances described in paragraph 5.4 of the Consultants guidelines, individual consultants may be selected and awarded on a sole- source basis, subject to the Bank’s prior approval.
Establishment of Water User Association (WUA)
14. A total of about US$143,000 of WUA Grant would be provided to communities to support for establishing WUAs. The WUA Grant would be used for disbursement of agreed eligible expenditures, including office furniture (tables and chairs, file cabinet) and office suppliers, and office equipment and other small amount expenses incurred for operation of WUAs (the procurement list has been reviewed and approved by the Bank in the procurement plan). Average funds available for each WUA would be about CNY50,000. The procurement of the goods as indicated in the procurement list would be conducted through community participation in procurement (paragraph 3.17 of the Procurement Guidelines). Within this framework, community would purchase office furniture and equipment in the local market through local shopping.
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Training and Workshops
15. A total of about US$ 505,000 of training and workshops would be required. Detailed programs will be developed by Prefecture PMO during project implementation and included in project annual work plan for Bank’s review. Expenditures incurred in accordance with the approved programs will be used as the basis for reimbursement.
Non-Bank Financing
16. A total of about US$ 86.882 million of other costs would be required for the project. These costs are largely related to design and supervision, resettlement, environment protection, and water and soil conservation. These costs would be financed by the project counterpart funds.
B. Assessment of the Agency’s Capacity to Implement Procurement and Mitigation Action Plan
17. Procurement activities would be carried out by the Prefecture PMO and the three project county PMOs. A procurement agent would be employed to assist in both ICB and NCB procurement. Design institutes and contract supervision firms would be selected through competition to carry out preliminary and detailed designs and supervise construction of works. A procurement capacity assessment was conducted by the Bank in July 2009. The assessment reviewed the project organization structure and functions, past experience, staff skills, quality and adequacy of supporting and control system, legal and regulatory framework. The risk for procurement would be mitigated through agreed mitigation measures. The overall procurement risk is moderate. The agreed mitigation measures are:
Item Assessed Major Weaknesses Measures Taken A. Institutional Arrangement and Capacity 1.1 Procurement Procurement roles and Prefecture PMO is responsible for roles and functions functions of Prefecture ICB and NCB procurement and PMO and County PMO selection of consultants. are not defined. County PMO is responsible for shopping procurement. 1.2 Procurement Project officers are Procurement officers in Turpan staff appointed, but not Prefecture PMO and the three trained. county PMOs have been appointed and are on board. Job description of procurement officers have been reviewed at appraisal. It is agreed that project officers would be stable during the project implementation. Procurement training has been included in the overall project training program. The first
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procurement training should be organized within three weeks after loan negotiation.
1.3 Technical Design institute and Qualified design institute would be support procurement agent are selected through competitive not employed selection to carry out preliminary design and detailed design. Qualified contract supervision engineers would be selected through competitive selection. A qualified procurement agent would be selected to assist in carrying out procurement. The procurement agent fee would be paid by project PMOs out of counterpart funds. To minimize cost overruns and contract variations, detailed engineering designs would be used for bidding. B. Procurement Procedures 2. 1 Procurement Contract packaging and Turpan Prefecture PMO is planning procurement plan need responsible for consolidating the to be carefully prepared. overall procurement plan and submitting to the Bank for review. Procurement plan should be updated annually to reflect needs during implementation. Procurement plan would be available in both Turpan Prefecture PMO and the county PMOs. 2.2 Procurement Difference in Bank procurement procedures will procedures procedures between be used for procurement of Bank guidelines and contracts financed by the Bank local regulations. loan. Local procurement procedures do not apply to Bank financed procurement contracts. NCB procurement provisions have been included in the Project Implementation Plan (PIP) and would be included in the legal agreement.
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2.3 Promotion of No mandatory Procurement notices for ICB transparency requirement for would be published in China Daily, advertising of a nationwide circulated newspaper, procurement and dgMarket website. opportunities. Procurement notices for NCB would be published in China Water Resources Newspaper, a nationwide circulated newspaper. For small value contracts with cost estimate less than US$2 million for works and US$300,000 for goods, procurement notices may be advertised in Xinjiang Economic Newspaper, a regional circulated newspaper. All procurement notices for ICB and NCB would also be available in Turpan Prefecture government website (www.Turpan.gov.cn). 2.4 Disclosure of No public disclosure Publication of contract award for procurement result mechanism for award of ICB, direct contracting and contracts established. consultants’ services would be in accordance with Bank guidelines. NCB contract award would be published in Turpan Prefecture government website within two weeks of contract signing (www.Turpan.gov.cn). 2.5 Handling of No formal complaint Bank procedures for handling Complaints handling procedures. complaints would be followed under the project. Procedures for Handling Complaints issued by National Development and Reform Commission on August 1, 2004 would be also followed under this project. Complaint hot line has been established in Turpan Prefecture PMO. Hot line No. 0995-6255579 All complaints and reviews should be properly filed. C. Record keeping 3.1 Procurement Procurement filing Procurement records and files filing system needs to be set would be maintained in both up. Turpan Prefecture PMO and county PMOs.
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3.2 Procurement Supervision mission Management information system supervision (MIS) to be developed under the project would be used to monitor procurement progress. The Bank will carry out ex post review at least once a year.
C. Procurement Plan
18. The Borrower has developed an overall procurement plan dated April 26, 2010 for project implementation, which provides the basis for the procurement methods. The Plan is available in the Project’s database and in the Bank’s external website. The Procurement Plan will be updated annually, or as required, to reflect project implementation needs and improvements in institutional capacity.
D. World Bank Prior Review
19. As specified in the procurement plan, all contracts in excess of US$500,000 for goods, US$5 million for works, all contracts for consultant services in excess of US$100,000 for firms, and all contracts awarded under single source selection, would be subject to prior review by the Bank. All other contracts would be subject to ex-post review by supervision missions. Post review sampling ratio would be one out of ten contracts.
E. Frequency of Procurement Supervision
20. In addition to the prior review to be carried out by the Bank, the capacity assessment of the Implementing Agency has recommended at least one supervision mission per year to carry out procurement supervision and post review of procurement actions.
Table 1: Total Project Costs by Expenditure Category Expenditure Category Total costs (US$ Million) 1. Works 67.093 2. Goods 29.695 3. Consultant Services 2.315 4. Training and Workshops 0.505 5. Sub-grant for WUA 0.143 6. Non Bank Financing 86.882 7. Contingency 9.087 8. Front End Fee 0.25 9.Interest during Construction 8.11 Total 204.08
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Table 2: Thresholds for Procurement Methods and Prior Review Procurement Prior Review Expenditure Procurement Threshold Threshold Category Method (US$ thousands) (US$ thousands) 1. Civil Works ≥20,000 ICB All <20,000 NCB ≥5,000 <100 Shopping NA
2. Goods ≥1,000 ICB All <1,000 NCB ≥500 <100 Shopping NA
3. Consultants ≥200 QCBS/QBS >100 Services <200 CQS >100 Individual NA consultants Single source All selection
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Annex 9: Economic and Financial Analysis CHINA XINJIANG TURPAN WATER CONSERVATION PROJECT
A. Economic Analysis
Project Benefits
1. Quantifiable benefits. The project would initiate a fundamental change in the economic growth pattern of Turpan Prefecture from the current unsustainable pattern of relying on overexploiting groundwater resources and devastating the ecological environment, to a sustainable pattern supported by sustainable water resources planning and management. The project would support the construction of essential water infrastructure (three reservoirs) at the outlets of the three main river valleys upstream to mitigate flood disasters and to supply water for both industry and agriculture; the project would also finance the rehabilitation of irrigation systems and the application of integrated agricultural water-saving technologies in the downstream agricultural areas to increase irrigation efficiency and water productivity. The major quantifiable benefits (on an incremental basis) of the project are derived from: (a) the agricultural production from improved irrigation efficiency and water productivity; (b) reduced flood losses from the construction of three reservoirs, and (c) saved water from non-beneficial evapotranspiration (ET) in agriculture for domestic and industrial use.
2. Non-quantifiable benefits. Other significant benefits but not included in the analysis are from: (a) mitigation of over drafting of underground water and accompanying degradation of the ecological environment; (b) decreased soil erosion from flooding; (c) avoidance of interruption to family life and social distress; (d) Karez cultural heritage protection and promotion of tourism; and (e) multiplier effects of overall local economic growth and reduced poverty.
Methodologies for Quantifying Project Benefits
3. Reduction in Flood Losses. China’s National Codes require these surveys of losses in past floods to be used to estimate losses from future floods. These surveys have calculated flood losses in terms of the proportion of the total values of different classes of assets at risk and/or in a loss per mu (rural areas) and a loss per capita (urban areas). This proportional loss approach is consistent with the methods used in many countries. Furthermore, the losses are classified as:
(a) Direct damage. The annual reduction of flooding loss by newly built reservoirs under the project should be based on empirical data to the extent possible. Ideally a well proven methodology of damage assessment of historical flood events with frequency of recurrence (i.e., probability of occurrences by flood size) should be used. The avoided flood losses are based on actual historical data adjusted by flood occurrence probability, and the trend of economic growth of flood affected areas. However, some average annual losses are estimated by local preparation teams in the absence of the data required.
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(b) Indirect losses. The National code (SL206-98) proposes that 20% of direct losses be taken to give indirect losses.
4. Incremental agricultural production from improved irrigation efficiency. Efficiency of water use in irrigation is extremely low (about 30-40% on average) as a result of serious seepage from the aging canal systems and poor water application in the field, as well as the sandy soils in the project areas. Water productivity (agricultural yield per unit of water) in Turpan Prefecture is also very low (about 0.8 kg/ m3 compared to 1.8 kg/ m3 in other parts of China) because of low yields and poor quality of crops with a large amount of non-beneficial evapotranspiration (ET) in the field. The current irrigated agriculture, consuming about 94% of the total available water in the Prefecture, would need to reduce water consumption and improve water productivity so that more water could be allocated to urban industries to enhance the economic value of water consumption.
5. To increase water productivity and reduce consumptive use of water in irrigated agriculture, water saving technologies supported under the project would follow the concept of real water savings and ET management, and adopt integrated measures including engineering (land leveling, canal lining with geo-membrane, low-pressure pipeline, improved drainage, micro-sprinkler, drip etc.), agronomic (cropping pattern changes, plant breeding, soil fertility and fertilization, soil salinity control, and weed control, etc.) and management measures (irrigation scheduling, volumetric water charges, increase of water charges, conjunctive use of surface and groundwater, etc.).
6. With above mentioned project interventions, increase in crop production would be achieved through: (a) enhanced cropping intensity, mainly under greenhouse production; (b) crop yield increases arising from timely provision of water in the critical stages of crop production; and (c) changes in crop patterns, shifting to high value produce. The water saving irrigation component would also generate additional benefits, including cost reduction of water withdrawal (pumping), as a result of less water extracted from wells; and decreases in fertilizer use, due to its direct application into the dripping system.
7. Specially, the above benefits will be achieved through the following project activities: (a) improved irrigation efficiency of gravity flooding from canal rehabilitation and reservoir construction for field crop production; (b) conversion of gravity flooding to dripping system for field crop production; and (c) conversion of gravity flooding for field crop production to dripping system under greenhouses. In calculating the above types of the project benefits, crop budgets have been prepared for “with project” and “without project” situations. Benefit aggregation is based on physical achievement by year and cropping pattern changes are accounted for.
8. Value Addition for Industrial Use. The total volume water supplied for industrial use is based on water balance estimation. Productivity of water use in industry, in terms of the economic value added by industrial production based on the water withdrawn, is defined as economic value added ( in Yuan) per cubic meter of water withdrawn by industry.
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Therefore water productivity in industrial factor can be calculated as:
Pi = Vi/Wi
Where Vi represents total annual industrial value added in region, Wi represents annual industrial withdrawn in the region.
9. Water productivity in industrial use is calculated at 143 Yuan/M3; the total annual industrial value added in region using the incremental water withdrawn from the reservoirs is estimated asVi= 143Wi. In line with the widely adopted “benefit apportioning by major inputs” approach in China (Codes and Standards for Appraisal of Water Sector Investment in China No. SL72-94 issued by Ministry of Water Resources), water consumption is assumed to contribute to 2.5% of total industrial value added. Therefore the net incremental value addition of water for industrial use is calculated using the formula: Vnv= 0.025*143Wi.
Project Costs
10. Project costs include (a) investment costs for reservoir construction and canal rehabilitation; (b) on-farm costs for dripping system and equipment; (c) incremental costs for crop production; (d) O&M costs for civil works and equipment; and (e) incremental working capital for regular operation.
ERR and NPV Calculations
11. Major assumptions. The major assumptions used in the economic analysis are summarized below:
(a) Economic prices. The Chinese economy has been increasingly integrated into the world economy and it is generally acknowledged that the economy has achieved “market status”. Therefore, current input and output market prices basically reflect actual export and import parity prices for traded products of identical varieties and quality. Furthermore, the project areas are in landlocked Xinjing Autonomous Region, where intra-provincial and inter-provincial trade is far more important than international trade. As such, the financial prices are used as “proxies” for economic prices. Similarly no further adjustments are made to the prices of non-tradable farm inputs and outputs. As Chinese currency has been under pressure for appreciation, the foreign exchange premium is therefore not relevant in China now. (b) Economic life of reservoirs, lined irrigation canals, and greenhouses is assumed at 30 years, 15 years and 8 years respectively. (c) Both cost and benefit flows are based on 2009 constant prices, and net of duties and taxes. (d) Opportunity cost of capital (discount rate) is set at 12%, although the discount rate adopted by China National Development and Reform Commission (NDRC) for most investment projects is 8%1.
1 The discount rate can be as low as 6% for investments with long term unquantified social and environmental benefits. See “Economic Analysis of Construction Projects: Methods and Parameters”, China Planning Press, Beijing, 2006. 73
12. The economic analysis is conducted first at sub-river basin (county) level, covering all project interventions (dam construction, irrigation canal construction /rehabilitation, and water-saving irrigation crop production). Incremental benefits generated directly from incremental costs of project intervention at sub-river basin (county) are identified and quantified. Cash flows of benefits and costs for each county are projected over a 30 year period to estimate the base case Net Present Value (NPV) at a discount rate of 12% and the Economic Rate of Return (ERR). The county sub-projects would generate ERRs ranging from 16% to 21%, which indicate that each sub-project is economically viable on its own. Based on the aggregated cash flows of three counties, the whole project ERR is estimated at 20 %. A summary of the economic analysis is presented in the table below:
Table 1: ERR/NPV by County and for the Whole Project Turpan Tuokexun Shanshan Project ERR 21% 20% 16% 21% NPV(in million 673.57 608.70 153.31 1,415.16 yuan)
13. Sensitivity Analysis and Switching Values: Sensitivity test has been conducted with results as tabled below, which indicate the economic returns of project are robust.
Table 2: Results of Sensitivity Test ERR (%) Base Scenario 21 Cost increase +20% 15 Benefit reduced by 20% 16 Cost+41% 12 Benefit -35% 12
B. Financial Analysis
Methodologies
14. Financial analysis has been conducted to: (a) gauge project impact on farmers’ incomes and; and (b) set the minimum price charged for reservoir water users to cover O&M costs.
15. Farmers’ income. Crop budget and farm models have been formulated under with and without project situations to gauge the financial attractiveness to farmers benefiting from: (a) improved irrigation system, including from canal rehabilitation and conversion of gravity flooding to dripping system for field crop production; and (b) conversion of gravity flooding for high value crop production to dripping system under greenhouses.
16. A summary of the financial analysis of one representative farm household (0.53 ha farm land) is tabled below:
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Table 3: Net Incremental Income of Household from Improved Irrigation System (000’Yuan)
Turpan Tuokexun Shanshan Improved irrigation efficiency of 15 13 16 gravity flooding
Table 4: Financial Rate Return (return on total asset) of Dripping Production in Greenhouses
Turpan Tuokexun Shanshan FIRR 37% 56% 61%
17. The above results show that the project is financially attractive to farmers engaged in all three types of improved irrigation practices.
Reservoir Water Charges
18. Investment in reservoir construction is considered to be a public investment, particularly in view of its flood control function. Pricing of reservoir water is not determined by market forces; rather it rests with the local government, represented by its planning and finance agencies. As such, water charges are recommended to set at the minimum level of fully covering O&M costs to ensure its financial sustainability, instead of full cost recovery for the investment. The minimum water charges to cover O&M for each reservoir are estimated as below:
Table 5: Water Charges at Source by Reservoir
Water Charges (Yuan/m3) Meiyaogou Alagou Ertanggou (Turpan) (Tuokexun) ( Shanshan) For Agricultural Use 0.047 0.085 0.128 For Industrial Use 0.077 0.121 0.192
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Fiscal Impact
19. Of the total cost of US$204.08 million to be financed, the Government direct budget contribution has been estimated at US$104.08 million. The Government of Turpan Prefecture has firmly committed that the full amount of counterpart funding will be met by the annual budget allocation from Regional, Prefecture, and county financial bureaus. Beyond the completion of construction, the fiscal impact of the project will be minimal as the Project will introduce participatory and sustainable operation and maintenance (O&M) practices at both river basin and field levels to assure adequate funding for O&M after project completion. O&M costs of reservoirs will be covered by water charges, and the on-farm irrigation facilities and rehabilitation costs (as well as the O&M costs) will be borne by the farmers' irrigation associations, with technical support from the local of water resources agencies.
20. Detailed assumptions and the calculations (Excel files) for the financial and economic analysis by county and for the project as a whole are contained in the Documents on file.
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Annex 10: Safeguard Policy Issues CHINA XINJIANG TURPAN WATER CONSERVATION PROJECT
Environmental Assessment (OP/BP 4.01)
1. The Project is classified as a “Category A” project based on the type, location, sensitivity, and scale, as well as the nature and magnitude of its potential environmental impacts. Environment assessment was carried out by Xinjiang Water Resources and Hydropower Design Institute in accordance with national requirements and the Bank’s Safeguard Policies. The reports include: (a) an EA summary; (b) consolidated EA (CEA); and (c) Environmental Management Plan (CEMP).
2. The EA provides baseline information on environmental and socio-economic conditions, and has identified and assessed the Project benefits and impacts to the natural and social environment. It also describes alternatives for each component considered as part of feasibility studies. It concludes that the Project will bring significant positive impacts to the natural and socio-economic environments. The EA report did not identify serious adverse or irreversible environmental impacts, which cannot be effectively mitigated to acceptable levels. All Project investments have been designed to avoid or minimize any adverse impacts in the physical environment. However, some negative impacts may arise during project implementation, such as limited negative impacts on soil, air, water, acoustic environments, and solid wastes mainly during construction. These impacts will be temporary and localized, and proper mitigation measures during construction can minimize or even eliminate them. Preventive measures during the construction and operation phases were prepared and are noted in the EMP.
Accumulative Impacts
3. The project will reduce the risk of flooding and flood losses; provide reliable, equitable and stable water supply for industry; increase agricultural yield or value per unit of consumed water through improved irrigation efficiency and water productivity; and reduce groundwater overexploitation for preservation of ecosystems and Karez cultural heritage. The project as a whole is substantially positive in environmental terms, with the benefits greatly overweighing the negative impacts. Any potential negative impacts have been mitigated to acceptable levels, and all project investments have been designed to minimize any adverse impacts in the physical environment.
4. The primary target beneficiaries of this project are the dominant population of the ethnic minority rural poor in the project areas. The project would result in a fundamental change in economic growth pattern of the Prefecture from the current unsustainable pattern, relying on overexploiting groundwater resources and devastating ecological environment to a sustainable pattern supported with a sound water resources planning and management. In the long run, the project will promote the rehabilitation of regional ecological water quota, reduce soil erosion, resolve the problem of overexploitation of regional underground water, improve regional ecological environment gradually, and 77 promote benign circulation and sustainable development for the regional economic, social and ecological environment.
Mitigation Measures
5. A series of mitigation measures has been prepared under the EMP to reduce impacts to acceptable levels during the construction and operation phase. Mitigation monitoring procedures have been established and the organizations responsible for monitoring have been designated. The mitigation measures are discussed in the CEA/CEMP.
6. Construction phase. Some project components will have short-term impacts, such as noise, dust, water pollution, increased traffic, soil erosion, and worker safety and public health issues. These concerns are relatively minor, and measures to reduce them to acceptable levels, as well as to monitor their effective implementation, have been discussed and detailed in the EA and EMP. In addition, all mitigation measures related to contractors will be included in the bid documents and contracts.
7. Operational phase. The reservoir components will have long term impacts such as minimum ecological flow, wastewater from the administrative building of reservoir, the water quality management, etc. Appropriate mitigation measures are designed including minimum ecological flow management, water quality management and monitoring, installation of wastewater treatment facility, establishment of emergency preparedness plan etc. These are detailed in the EMP.
Alternative Analysis
8. The EA teams worked closely with project planners/ owners and the feasibility study teams to compare and evaluate alternatives. The EA identified, evaluated and compared various options for dam sites, and optimal alternatives were selected based on the avoidance of (or least adverse) social and environmental impacts, as well as other economic, technical, and financial considerations for least cost solutions. A “no project” scenario was also considered as an alternative to each subproject. Different construction options were also compared for the canal components. Details are in the CEA report.
Environmental Management Plan (EMP)
9. An EMP was developed as a separate and stand-alone document. It includes policy bases, applicable environmental standards, environmental management system, mitigation measures, monitoring plans, institutional arrangements, capacity building, and estimated costs for the mitigation measures, and monitoring programs during the construction and operation phases. An EMP summary table was also designed for each subproject. The table included potential impacts, mitigation measures, implementation schedule, implementation and supervision agency, monitoring indicators, frequencies and locations, and EMP budget for the construction and operation phases. Generic measures for
78 environmental management of construction were also designed as technical specifications to be included in contracts.
10. Supervision and Reporting: Contractors and supervising agencies will meet regularly to monitor progress and submit detailed reports to the PMO. The Bank will receive a semiannual report on the EMP, along with any revisions proposed.
11. Training Requirements. Prior to the commencement of physical works, Turpan PMO will provide training on environmental supervision and management intended for County PMOs, implementing agencies, and contractors.
12. Funding Arrangement: Costs associated with EMP measures are included in project cost estimates; component-specific costs are detailed in the EMP. Monitoring of air and water quality, noise levels, and water and soil conservation, will be conducted by external monitoring institutes, and monitoring activities will be financed by counterpart funds. During the operation phase, costs related to mitigation and monitoring will be borne by the IAs. The total environmental protection investment, including environmental management and mitigation measures is estimated at about 9.08 million Yuan RMB.
13. Monitoring. The monitoring program covers air, water quality, noise level, and water and soil conservation monitoring etc. It specifies parameters, frequencies, time, locations, responsible agencies, and estimated costs. The monitoring program further specifies reporting and response procedures to ensure appropriate follow-up actions on identified issues. Professional monitoring institutes, using standard methods recognized by regulatory authorities, will be contracted to monitor the parameters specified in the EMP. Environmental monitoring and Water and Soil Conservation Monitoring will provide key and timely information, especially on environmental impacts and mitigation, to the borrower and the Bank to evaluate the success of environmental management. This monitoring process will verify compliance with the EMP and determine further mitigation measures if the EMP is not properly implemented.
Public Consultation and Information Disclosure
14. Public Consultations. Two-stage public consultations were conducted with those affected by the proposed project and included persons from different groups, gender, socioeconomic and educational backgrounds, and occupations. Consultations took many forms: expert consultations, questionnaires, symposia, interviews etc. The primary objective of the first round was to survey the public’s opinion about the project, while that for the second was to communicate the EA findings, discuss intended mitigation measures, and confirm public acceptance and satisfaction. In addition, there were several rounds of consultations with government agencies, local governments, and other stakeholders to discuss site location, scope, and potential environmental and socioeconomic impacts of the proposed project. Because Turpan is an area populated with ethnic minority groups, all these consultations were conducted in a manner acceptable for local ethnic minorities, including language and forms they are familiar with. Public consultations of environmental concerns were also carried out in combination with the project social assessment exercise,
79 so as to ensure adequate participation of ethnic minority communities in a free, prior and informed consultation process. The majority of those consulted expressed strong support for the project, and acceptance of the short-term inconveniences during construction phase, such as noise and dust. They were, overall, supportive of measures to increase water use security, increase regional flood prevention capacity, improve the ecological environment, and improve the quality of life of local residents. Public concerns and opinions are detailed in the EAs, and are incorporated into the project design and environmental mitigation measures.
15. Information Disclosure. Information about the project was disclosed through major local newspapers from September to November 2008. Telephone hotlines were established for the public to access relevant documents and offer comments. Availability of the consolidated EAs, and where to access to them, was announced in the major local newspaper, Turpan Daily, in June and August 2009. The EAs/ EMP/EA Summary were also disclosed at the website of different government agencies, and are available at each PMO and the Project owner. CEA/EMP/EA Summary was disclosed at the website of the Bank’s Beijing office and at the Infoshop of HQ on December 28 2009.
Pest Management (OP4.09)
16. The project will improve on-going integrated pest management in the province. Specifically, it will: (a) disseminate the application of high efficiency, low toxic, low residual effect chemicals and biological pesticides; (b) prohibit the use of high toxic, high residual effect pesticides; (c) reduce the reliance on chemical pesticides and chemical fertilizers; and (d) promote the use of non-chemical technologies for insect and pest control. A Pest Management Plan (PMP) was prepared for the project.
17. The PMP covers preface, major pest issues, present pesticides management methods, pesticides management organizations and their respective responsibilities in Turpan Prefecture, environmental, occupational and safety risk assessment, monitoring, evaluation activities, and capacity building etc.
Physical Cultural Resources (OP/BP 4.11)
18. The project has a component for Karez conservation, and Bank OP4.11 Physical Cultural Heritage will be applicable to this project. A cultural relic protection approach has been agreed with the project entity and the Turpan Cultural Relics Bureau. The Zhongtie Northwest Scientific Design Institute, a qualified professional for protection of cultural relics, guided the component design. The design report on Protection of Wudaolin Karez System in Yaer Township was prepared during project preparation, and was reviewed by the Bank.
19. Xinjiang Cultural Relic and Archeological Research Institute, assisted by the Turpan Prefecture Cultural Relic Bureau, conducted comprehensive surveys of the three reservoir areas to be inundated after the project, and found that some cultural relics exist in the inundated areas of Alagou Reservoir in Tuokexun County and Ertanggou Reservoir in Shanshan County. The findings and outcomes of the above surveys were recorded as an 80
Annex to the CEA reports. The rescue archaeological excavation will be conducted by Xinjiang Cultural Relic and Archeological Research Institute before the construction activities. The cost of the archaeological excavation work has been included in the project budget. In addition, remedial works and other mitigation measures proposed by the Xinjiang Cultural Relic Bureau were also included in the CEMP. Appropriate procedures would be included in the EMP for chance finds of culturally significant sites; appropriate clauses would also be included in the related construction contracts to be implemented.
20. Prior to advertising invitations to prequalify or to bid for works to be carried out under Part 4 of the Project for the Karez Water System, Xinjiang shall furnish to the Bank, evidence satisfactory to the Bank, that the Prefecture’s Cultural Relics Bureau has confirmed that the preliminary design of said works: (a) complies with applicable domestic laws and regulations; and (b) has an adequate cultural relic protection approach to ensure the preservation of such system.
Natural Habitats (OP/BP 4.04)
21. There are no critical natural habitats, natural reserves, protected areas, endangered species, or protected species within the project influence areas. For the Ertanggou reservoir, there are four types of indigenous fish species, including Barbatula Microp Hthalma (Kessler), Nemachilus Minutes Li, TriplopHysa (T.) turpanensis, and TriplopHysa (T.) Stoliczkae (Steindachner). These indigenous fishes are widely distributed in the rivers at the south of Mountain Tianshan. These native fish species within the project influence areas are distributed only in the upstream reach of Ertanggou river, and these fish species are residency species, namely that their habitat, feeding, spawning, and wintering places are all fixed in certain area, the Ertanggou dam is located at the middle reach of the river, the dam construction will not affect the multiplying of the local fish species. After the construction and operation of the project, it will affect the distribution of the fish in the river reaches downstream of the dam to certain extent, but will not have adverse impacts on the Germplasm resources or multiplying. During the operation of the project, the hydrological regime of the water body will change, the scientific survey showed that indigenous fish species are all adaptive to low river flow, the reservoir development will significantly slow down the river flow in the reservoir area which will be favorable to the habitat and multiplying of the native fishes that are living in the upstream reaches and will migrate to the reservoir. Secondly, the reservoir will form new aquatic ecosystem after its operation. The considerable increment in the fish lure of Microzooplankton, Phytoplankton and Zoobenthos will lead to an increment of the indigenous fish and commercial fishes such as carp, silver crucian population. The reservoir will be an ideal feeding, wintering and spawning places for those fishes. Appropriate mitigation measures were incorporated into the EMP including ecological flow and monitoring of native fish species during the operation phase.
Indigenous Peoples (OP4.10)
22. Project activities will take place in Turpan Basin where 77% of population is ethnic minorities, e.g., Uygur, Kazakhs, Hui, and Mongol; while Uygur alone account for 70%.
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Bank safeguard policy OP4.10, Indigenous Peoples, is hence applicable in this case. Local Uygur are distinct in their language and religious practice, as well as their traditional living habits. Their agricultural production includes wheat, cotton, melons, grapes and vegetables, irrigated by river and well water, as well as some Karez water supply system in different places in the Basin. 35 villages exist in the project influence areas, with a population about 100,400 people, of whom 87,000 are Uygur.
23. A Social Assessment (SA) for the project has been carried out to identify potential social risks and safeguards issues, and to obtain feedback from the potential beneficiary communities, especially those of ethnic minorities. 11 local staff from the ground joined in the SA training and exercise, 6 of whom were Uygur. The SA exercise probed into local patterns of crop irrigation and variations of water use resources together with community socio-economic situations, and consulted with farmers on commitment and capability for water saving irrigation. 10 villages (9 populated by Uygur and 1 by Hui) were selected for sample survey and case studies. 1,700 questionnaires were distributed for a survey, conducted for an overall learning and analysis of local livelihoods and irrigation conditions, and farmers’ views and roles on changes as a result of the project. 56 village meetings and focus groups were held among villagers, especially women and the poor in the sample villages. 74 household interviews were carried out among selected typical households with varying crop cultivation in irrigated agriculture. Through these sample studies and fieldwork, the SA team discussed with farmers the kinds of irrigation facilities they would be able to adopt in surface water irrigation, well irrigation or Karez water supply systems, for traditional wheat, cotton, grape, or melon cultivation. The SA team also elicited farmers’ expectations for development of irrigated agriculture, and ways for them to participate.
24. Based on the above intensive consultation and broad information solicitation, an Ethnic Minority Development Plan (EMDP) was developed in conformity with OP4.10 requirements. Elements of the EMDP were integrated into the overall project design and the entire project would be implemented in compliance with the EMDP requirements.
25. Savings under the project were mostly allocated among the ethnic minority communities: 51,100 mu to Tuokexun county; 50,000 mu to Shanshan county; and 60,200 mu to Turpan city. Pipeline irrigation facilities and canal lining were adapted to Uygur traditional agriculture in the Turpan Basin, such as grape growth and wheat/cotton production. Green houses and drip irrigation were particularly designed and piloted with local melon and vegetable cultivation. For farmers’ capacity building in technical skill enhancement and local irrigation management, comprehensive training programs would be supported by the training and consulting activities under Components 1 and 5.
26. Farmer water user associations (WUA) were designed as the effective vehicle for farmers to participate in the entire project life cycle and beyond. WUAs are farmers’ own organization for irrigation operation and maintenance, elected and managed by the farmers themselves. There are several dozen Uygur WUAs already in existence in the rural areas. Under the project, WUAs would be involved in water conservation, based on the ET controlled water consumption, equitable water use among households and communities,
82 and equitable water allocation between rural, urban and industrial needs. 43 WUAs would be established or/and improved/strengthened at the township level under this project, and under them, more WUA branches would be formed at the village level.
27. The SA report and EMDP were made available to the public in county PMOs and libraries in August 2009 and replaced with the updated version dated March 12, 2010. They were also disseminated in the project villages and townships in both Chinese and Uygur languages, and were also placed in the Bank’s Infoshop before appraisal and later after the project appraisal in March 2010.
Involuntary Resettlement (OP4.12)
28. The project will construct three new reservoirs and rehabilitate existing canal systems. The Turpan Water Resources Bureau contracted expert consultants from prefecture and provincial Water Engineering Design Institutes, as well as East China Design Institute, to conduct resettlement information dissemination, socio-economic and census surveys, resettlement consultations and impact inventories in all the three reservoir sites during 2008, and prepare RAPs in accordance with the Bank task team’s guidance.
29. Ertanggou reservoir will affect 97 people in 20 households, who are all Uygur herdsmen living in a hamlet called Tuyamar village (Chinese name “Ertanggou villager group belonging to Qialekan administrative village, Jinsheng township of Turpan city). The whole village will be inundated and their houses all demolished. In addition, 14.11 mu of farmland, as well as 21.37 mu of orchards, 735.05 mu of grassland and other assets, will be flooded. Four other farm households who live outside the Tuyanmar village, but have some private assets there, would be also affected by the village inundation.
30. The Ertanggou RAP provides relocation assistance to the affected households, and livelihood rehabilitation. The new resettlement new site is 15 km away and is also in a Uygur neighborhood. A total budget of more than RMB22 million has been allocated to implement the Ertanggou RAP.
31. The other two proposed reservoirs, Alagou and Meiyaogou, do not involve land acquisition, as they will be built on state land. However, some of the state-owned land was contracted to individual households for cultivation, and the requisition of this land would affect these households. In addition, there are some structures owned by local governments around the dam sites, which were mostly abandoned. Two abbreviated RAPs have been prepared to provide compensation to the affected persons and agencies.
32. All RAPs were made available to the public in locally accessible places (e.g. county PMO and libraries) in September 15, 2009, in local languages, including Chinese and Uygur; they were also placed in the affected villages and townships. They were also made available in the Bank’s Infoshop before appraisal.
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Safety of Dams (OP/BP 4.37)
33. The Dam Safety Safeguard Policy (OP 4.37) is triggered because 3 new dams will be financed under the project and 4 exiting dams are located upstream of the project areas, and failure of these dams could cause extensive damage to the project or failure of some or all investments under the project.
34. The Prefecture PMO hired 3 qualified design institutes to design the three new dams: Xinjiang Water Resources and Hydropower Design Institute (XWHDI); Hunan Water Resources and Hydropower Design Institute (HWHDI); and Turpan Water Resources and Hydropower Design Institute (TWHDI). The task team and DSP have reviewed the designs of the dams and have found them to be satisfactory.
35. Of the four existing upstream dams, three are classified as operationally safe, and the other is classified as Class C. The borrower has completed the remedial work of the Class C dam, and also prepared an Operation, Maintenance and Surveillance (OMS) manual and Emergency Preparedness Plan (EPP) for each of the 4 existing dams. The Borrower has also issued guidelines and regulations for dam safety management, including: (a) Regulations on Reservoir Dam Safety Management; (b) Regulations on Reservoir Dam Safety Review; (c) Guidelines for Dam Safety Review;(d) Guidelines for Emergency Preparedness Plan; and (f) Guidelines for Operation, Maintenance and Surveillance of Dams.
36. The Prefecture PMO has hired a Dam Safety Panel (DSP) to assist Turpan PMO in providing consulting services concerning the safety of the new and existing dams. The DSP, compromising of three independent, experienced, and competent dam safety experts, will assist Turpan PMO and the Bank to ensure that the project is implemented in compliance with Bank policy on safety of dams. For the new dams, the DSP will review and advise the borrower on issues related to dam safety and other critical aspects, e.g., appurtenant structures, the catchment area, the area surrounding the reservoir, and downstream areas. For existing dams, the DSP will inspect and evaluate the safety status of existing dams, their appurtenance, and performance history; review and evaluate the owner’s operation and maintenance procedures; and provide written reports of findings and recommendations for any remedial work or safety-related measures necessary to upgrade the existing dams to an acceptable standard of safety. The above are consistent with the requirements specified in the Project Agreement indicated below.
37. Specifically, the Xinjiang Uygur Autonomous Region shall:
(a) Maintain and cause the Turpan Prefecture to maintain a panel of three independent dam safety experts (the DSP) to assist the Prefecture in ensuring that the Project is implemented in compliance with the Bank’s policy on Safety of Dams (OP 4.37) under terms of reference satisfactory to the Bank; (b) Implement and cause the Turpan Prefecture to implement the Dam Safety Plan (Operation, Maintenance and Surveillance Plan; Emergency Preparedness Plan; Construction, Supervision and Quality Enhancement Plan;
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Instrumentation Plan; and Dam safety report) in a manner satisfactory to the Bank; and (c) Furnish or cause the Turpan Prefecture to furnish yearly the DSRs.
38. The Bank will review the dam safety report prepared by DSP and supervise the new dam construction and the operation and maintenance of the existing upstream dams, to ensure that the Project complies with OP4.37.
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Appendix 1 to Annex 10 List of Environment Safeguard Documents Xinjiang Turpan Water Conservation Project
EA EMP Chinese/ Date of date of Number Name of project location of disclosure (Yes/No) (Yes/No) English submission disclosure C/2009-06-28 0-1 Y Y C/E Consolidated Environmental Assessment Report of XTWCP (CEA) E/2009-11-12
C/2009-06-28 C/ Turpan Prefecture Daily both in Chinese and 0-2 Y Y C/E C/2009-06-23 Consolidated Environment Management Plan for XTWCP (CEMP) E/2009-11-12 Uygur language (local language), Turpan prefecture C/2009-08-11 C/2009-06-28 water resource website, Turpan prefecture 0-3 Y Y C/E EA Summary for XTWCP E/2009-11-12 C/E/2009-12-28 C/E/ Worldbank Infoshop C/2009-06-28 0-4 N.A. N.A. C/E PMP for XTWCP E/2009-11-13 2009-06-23 C/ Turpan Prefecture Daily both in Chinese and EIA report for Meiyaogou Reservoir Project 1 Y Y C 2009-06-28 Uygur language (local language), Turpan prefecture
2009-08-11 water resource website, Turpan prefecture PMO. 2009-06-23 EIA report for Ertanggou Reservoir Project; Y Y C 2009-06-28 C/ ditto 2 2009-08-11 2009-06-23 EIA report for Alagou Reservoir Project; Y Y C 2009-06-28 C/ ditto 3 2009-08-11 2009-06-23 EIA Table for Shanshan County Canal Projet; Y Y C 2009-06-28 C/ ditto 4 2009-08-11 2009-06-23 EIA Table for Shanshan County Water Conservation and Irrigation Project; Y Y C 2009-06-28 C/ ditto 5 2009-08-11 EIA Table for Turfan Municipality Water Conservation and Irrigation 2009-06-23 6 Y Y C 2009-06-28 C/ditto Project; 2009-08-11 2009-06-23 EIA Table for Turfan Municipality Canal Project; Y Y C 2009-06-28 C/ ditto 7 2009-08-11 2009-06-23 EIA Table for Turfan Municipality Wudaolin Kariz Protection Project; Y Y C 2009-06-28 C/ ditto 8 2009-08-11 2009-06-23 EIA Table for Tuokexun County Ala gou Canal Project Y Y C 2009-06-28 C/ditto 9 2009-08-11 2009-06-23 EIA Table for Tuokexun County Water Conservation and Irrigation Project Y Y C 2009-06-28 C/ditto 10 2009-08-11
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Appendix 2 to Annex 10 Description of New Dams Xinjiang Turpan Water Conservation Project
Construction Total Rehabilitate, Total Bank Govt Height Type of Main No. Name Location period Capacity New, or Cost Loan Operator Owner Agency in (m) Dam Components (from, to) (m m3) Assessment ($m) ($m) Charge
dam, Asphalt spillway, Turpan Turpan Alaguo concrete sand flush Municipal Municipal Tuokson Reservoir 1 Alagou 2010-2014 86.14 45.7 core sand new tumel, and Water Water County Management and rock water Resoruces Resosurces Bureau dam release Bureau Bureau tunel.
dam, Asphalt Turpan Turpan spillway, Ertangguo concrete Municipal Municipal Shanshan sand flush Reservoir 2 Ertangguo 2010-2014 64.3 25 core sand new Water Water County tumel, and Management and rock Resoruces Resosurces irrigation Bureau dam Bureau Bureau tunel.
dam, spillway, Turpan concrete sand flush Meiyaoguo Turpan City Turpan face sand tumel, and Reservoir City Water 3 Meiyaoguo 2010-2014 41 9.8 new Water City and rock industry Management Resources Resources dam and Station Bureau Bureau irrigation tunel.
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Appendix 3 to Annex 10: Description of Existing Upstream Dams Xinjiang Turpan Water Conservation Project
Total Latest Safety Govt Year of Height Type of Status Action No. Name Location Capacity Review Remedial Plan Operator Owner Agency Completion (m) 3 Dam (Class I, Plan (m m ) Date II, or III) in charge
Turpan City Turpan Turpan General Municipal Municipal Turpan normal 1 Putaoguo 1976 38 11 clay core 2008 II Water Water Water City O&M Management Resources Resources Station Bureau Bureau
Shanshan Turpan Turpan County asphalt Municipal Municipal Shanshan normal General 2 Kan'erqi 2001 51.3 11.8 concrete 2008 II Water Water County O&M Water core Resources Resources Management Bureau Bureau Station
Shanshan Turpan Turpan concrete County Municipal Municipal Shanshan face sand normal General 3 Kekeya 41.5 10.52 2008 II Water Water County and rock O&M Water Resources Resources dam Management Bureau Bureau Station Preliminary Design Report has Remedial Turpan City Turpan Turpan been approved, work has General Municipal Municipal Turpan listed in 3rd been 4 Maernazi 1983 28 4.63 clay core 2004 III Water Water Water City national dam completed Management Resources Resources strengthening plan. by the end Station Bureau Bureau Being remedied by of 2009 2009
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Annex 11: Project Preparation and Supervision CHINA XINJIANG TURPAN WATER CONSERVATION PROJECT
Planned Actual PCN review September 5, 2008 September 4, 2008 Initial PID to PIC August 29, 2008 September 12, 2008 Initial ISDS to PIC August 29, 2008 September 12, 2008 Preparation December 15, 2008 January 6, 2009 Pre-appraisal June 30, 2008 July 8, 2009 Appraisal February 1, 2010 February 24, 2010 Negotiations May 11, 2010 May 11, 2010 Board/RVP approval June 17, 2010 Planned date of effectiveness September 17, 2010 Planned date of mid-term review December 31, 2013 Planned closing date December 31, 2015
Key institutions responsible for preparation of the project: Regional Water Resources Bureau of Xinjiang Uygur Autonomous Region Prefecture Water Resources Bureau of Xinjiang Turpan Prefecture County Water Resources Bureaus of Turpan, Shanshan and Tuokexun Counties
Bank staff and consultants who worked on the project included: Name Title Unit Liping Jiang TTL and Sr. Irrigation Specialist EASCS Zong-cheng Lin Sr. Social Development Specialist EASCS Yiren Feng Environment Specialist EASCS Ximing Zhang Dam Safety Specialist EASCS Jinan Shi Sr. Procurement Specialist EASCS Yi Dong Sr. Financial Management Specialist EAPCO Xueming Liu Project Costing and Economic Analysis FAO/CP Xin Chen Sr. Program Assistant EACCF Xiuzhen Zhang Project Costing and Analysis EACCF Yunqing Tian Team Assistant EACCF Xuemei Guo Program Assistant EACCF Dan Xie Team Assistant EACCF Vellet Fernendes Program Assistant EASIN Marta Molares-Halberg Lead Counsel LEGES Robert O’Leary Chief Disbursement Officer LOAFC Haiyan Wang Senior Disbursement Officer LOAFC Geoffrey Spencer Sr. Water Resources Engineer Former Bank Staff Shaojun Li Farmer Water User Association Specialist Former Bank Staff Bingfang Wu Sr. Remote Sensing Specialist Consultant Yu Liu Sr. Irrigation Specialist Consultant Houbin Liu Sr. Farmer Water Association Specialist Consultant Douglas Olson Peer Reviewer Former Bank Staff Susanne Scheierling Peer Reviewer ETWWA Chris Perry Peer Reviewer Consultant Usaid L. Hanbali Peer Reviewer Consultant Mei Xie Peer Reviewer WBICC
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Annex 12: Documents in the Project File CHINA XINJIANG TURPAN WATER CONSERVATION PROJECT
1. Feasibility Study Report and its Annexes 2. Project Implementation Plan 3. Management Information System Manual 4. RS-based ET Management Manual 5. Environment Impact Assessment Report 6. Environment Management Plan 7. Environment Assessment Summary 8. Resettlement Action Plan 9. Social Assessment Report 10. Ethnic Minorities Development Plan 11. Dam Safety Assessment Report 12. Project Procurement Plan 13. Financial Management Manual 14. M&E Baseline Survey Report 15. Project Concept Note 16. PCN Review Meeting Minutes 17. PCN Stage Safeguards Review Meeting Minutes 18. QER Review Meeting Minutes 19. PAD Stage Safeguards Review Meeting Minutes 20. Decision Making Meeting Minutes 21. Negotiation Meeting Minutes 22. Project Appraisal Document 23. Loan Agreement 24. Project Agreement 25. Aide Memoires and Management Letter for Identification, Preparation, Pre- appraisal and Appraisal Missions
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Annex 13: Statement of Loans and Credits CHINA XINJIANG TURPAN WATER CONSERVATION PROJECT
Difference between expected and actual Original Amount in US$ Millions disbursements Project ID FY Purpose IBRD IDA SF GEF Cancel. Undisb. Orig. Frm. Rev’d P101716 2010 CN-Jilin Food Safety 100.00 0.00 0.00 0.00 0.00 100.00 0.00 0.00 P112838 2010 CN-Wuhan Second Urban Transport 100.00 0.00 0.00 0.00 0.00 100.00 0.00 0.00 P112759 2010 Shandong Ecological Afforestation 60.00 0.00 0.00 0.00 0.00 60.00 0.00 0.00 P096920 2010 CN-Ningxia Highway 250.00 0.00 0.00 0.00 0.00 250.00 0.00 0.00 P106956 2010 CN - Ningbo New Countryside 50.00 0.00 0.00 0.00 0.00 50.00 0.00 0.00 Development P101258 2009 CN-Hubei Yiba Highway 150.00 0.00 0.00 0.00 0.00 149.63 0.00 0.00 P100968 2009 CN-Shanxi Coal Bed Methane 80.00 0.00 0.00 0.00 0.00 79.80 3.20 0.00 Development P096556 2009 CN-Eco-Farming 120.00 0.00 0.00 0.00 0.00 109.65 4.95 0.00 P096707 2009 CN - GD Tech&Vocational ED and 20.00 0.00 0.00 0.00 0.00 19.25 1.05 0.00 Training P096926 2009 CN-Jiangsu Water and Wastewater Project 130.00 0.00 0.00 0.00 0.00 121.68 9.33 0.00 P096923 2009 CN-Shanghai APL III 200.00 0.00 0.00 0.00 0.00 199.50 0.00 0.00 P096812 2009 CN-Yunnan Urban Env 90.00 0.00 0.00 0.00 0.00 85.78 -4.00 0.00 P101829 2009 CN Xining Flood and Watershed Mgmt 100.00 0.00 0.00 0.00 0.00 99.75 10.67 0.00 P101988 2009 CN-Jiangxi Shihutang Navi & 100.00 0.00 0.00 0.00 0.00 76.92 37.10 0.00 Hydropower P114107 2009 CN-Wenchuan Earthquake Recovery 710.00 0.00 0.00 0.00 0.00 648.00 -62.00 0.00 Project P112359 2009 CN-NanGuang Railway 300.00 0.00 0.00 0.00 0.00 299.25 0.00 0.00 P091950 2009 CN-Guizhou Cultural and Natural Heritage 60.00 0.00 0.00 0.00 0.00 59.85 1.67 0.00 P107559 2009 CN-Guizhou-Guangzhou Railway 300.00 0.00 0.00 0.00 0.00 299.25 0.00 0.00 P084874 2008 CN- Energy Efficiency Financing 200.00 0.00 0.00 0.00 0.00 150.07 27.01 0.00 P091949 2008 CN-Gansu Cultural & Natural Heritage 38.40 0.00 0.00 0.00 0.00 29.99 0.33 0.00 P085376 2008 CN-Migrant Skills Dev. and Employment 50.00 0.00 0.00 0.00 0.00 47.45 3.24 0.00 P093963 2008 CN-Guiyang Transport 100.00 0.00 0.00 0.00 0.00 50.93 11.41 0.00 P092631 2008 CN-Xi'an Sustainable Urban Transport 150.00 0.00 0.00 0.00 0.00 139.63 -10.00 0.00 P087224 2008 CN-Han River Urban Environment 84.00 0.00 0.00 0.00 0.00 77.87 26.08 0.00 P093882 2008 CN-Shandong Flue Gas Desulfurization 50.00 0.00 0.00 0.00 0.00 36.02 21.88 0.00 P084437 2008 CN-Rural Health 50.00 0.00 0.00 0.00 0.00 41.85 -5.86 0.00 P099224 2008 CN-Liaoning Med. Cities (LMC) III 191.00 0.00 0.00 0.00 0.00 180.52 53.31 0.00 P099112 2008 CN-Anhui Highway Rehab & 200.00 0.00 0.00 0.00 0.00 93.44 -62.39 0.00 Improvement P099062 2008 CN-ShiZheng Railway 300.00 0.00 0.00 0.00 0.00 267.20 1.29 0.00 P096925 2008 CN- Bengbu Integrated Environment 100.00 0.00 0.00 0.00 0.00 94.54 12.79 0.00 Improv P095315 2007 CN-W. Region Rural Water & Sanitation 25.00 0.00 0.00 0.00 0.00 13.50 -2.27 0.00 P096285 2007 CN-MSE Finance 100.00 0.00 0.00 0.00 0.00 5.00 5.00 0.00 P092618 2007 CN-LIAONING MED CITIES INFRAS 2 173.00 0.00 0.00 0.00 0.00 137.52 18.69 0.00 P091020 2007 CN-Fujian Highway Sector Investment 320.00 0.00 0.00 0.00 0.00 17.10 -100.10 0.00 P083322 2007 CN-SICHUAN URBAN DEV 180.00 0.00 0.00 0.00 0.00 112.32 87.65 0.00 P086515 2007 CN-3rd National Railway 200.00 0.00 0.00 0.00 0.00 54.26 -21.64 0.00 P081776 2007 CN-GUANGDONG/PRD2 96.00 0.00 0.00 0.00 0.00 76.31 17.31 0.00
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P077752 2007 CN-SHANDONG ENVMT 2 147.00 0.00 0.00 0.00 0.00 68.63 -27.54 0.00 P088964 2007 CN-Guangxi Integrated Forestry Dev 100.00 0.00 0.00 0.00 0.00 23.18 -40.98 0.00 P075613 2007 CN-Shaanxi Ankang Road Development 300.00 0.00 0.00 0.00 0.00 69.76 -64.68 0.00 P099992 2006 CN-Liaoning Medium Cities Infrastructure 218.00 0.00 0.00 0.00 0.00 126.36 35.02 0.00 P081255 2006 CN-Changjiang/Pearl River Watershed 100.00 0.00 0.00 0.00 0.00 72.89 39.56 0.00 Reha P081348 2006 CN-HENAN TOWNS WATER 150.00 0.00 0.00 0.00 0.00 110.54 53.04 0.00 P075732 2006 CN-SHANGHAI URBAN APL2 180.00 0.00 0.00 0.00 0.00 74.90 39.90 0.00 P070519 2006 CN-Fuzhou Nantai Island Peri-Urban Dev 100.00 0.00 0.00 0.00 0.00 59.59 30.42 -1.58 P085124 2006 CN-Ecnomic Reform Implementation 20.00 0.00 0.00 0.00 0.00 14.18 16.84 0.00 P085333 2006 CN-5th Inland Waterways 100.00 0.00 0.00 0.00 0.00 4.27 4.27 0.00 P096158 2006 CN-Renewable Energy II (CRESP II) 86.33 0.00 0.00 0.00 1.65 38.02 36.92 0.00 P086629 2006 CN-Heilongjiang Dairy 100.00 0.00 0.00 0.00 0.00 62.04 61.54 0.00 P093906 2006 CN-3rd Jiangxi Hwy 200.00 0.00 0.00 0.00 0.00 10.33 -4.67 0.00 P075730 2005 CN-HUNAN URBAN DEV 172.00 0.00 0.00 0.00 0.00 108.39 85.72 0.00 P069862 2005 CN - Agricultural Technology Transfer 100.00 0.00 0.00 0.00 0.00 31.68 28.98 0.00 P071094 2005 CN - Poor Rural Communities 100.00 0.00 0.00 0.00 0.00 18.08 17.28 0.00 Development P081161 2005 CN-CHONGQING SMALL CITIES 180.00 0.00 0.00 0.00 0.00 52.48 33.97 0.00 P081346 2005 CN-LIUZHOU ENVIRONMENT MGMT 100.00 0.00 0.00 0.00 0.00 19.34 11.36 0.00 P086505 2005 CN-NINGBO WATER & ENVMT 130.00 0.00 0.00 0.00 0.00 1.44 -8.73 0.00 P057933 2005 CN-TAI BASIN URBAN ENVMT 61.00 0.00 0.00 0.00 0.00 6.96 7.26 4.00 P066955 2004 CN-ZHEJIANG URBAN ENVMT 133.00 0.00 0.00 0.00 0.00 41.57 41.57 0.58 P065463 2004 CN-Jiangxi Integrated Agric. Modern. 100.00 0.00 0.00 0.00 0.00 3.57 2.99 0.00 P075728 2004 CN-GUANGDONG/PRD UR ENVMT 128.00 0.00 0.00 0.00 0.64 60.65 61.29 7.74 P077137 2004 CN-4th Inland Waterways 91.00 0.00 0.00 0.00 0.46 2.73 2.85 2.40 P068058 2003 CN-Yixing Pumped Storage Project 145.00 0.00 0.00 0.00 10.00 20.28 30.28 0.00 P040599 2003 CN-TIANJIN URB DEV II 150.00 0.00 0.00 0.00 0.00 82.51 81.85 43.75 Total: 8,918.73 0.00 0.00 0.00 12.75 5,618.20 662.01 56.89
Difference between expected and actual Original Amount in US$ Millions disbursements Project ID FY Purpose IBRD IDA SF GEF Cancel. Undisb. Orig. Frm. Rev’d P093963 2008 CN-Guiyang Transport 100.00 0.00 0.00 0.00 0.00 100.00 0.00 0.00 P083322 2007 CN-SICHUAN URBAN DEV 180.00 0.00 0.00 0.00 0.00 170.70 33.37 0.00 P081776 2007 CN-GUANGDONG/PRD2 96.00 0.00 0.00 0.00 0.00 96.00 6.33 0.00 P088964 2007 CN-Guangxi Integrated Forestry Dev 100.00 0.00 0.00 0.00 0.00 68.09 -28.91 0.00 P091020 2007 CN-Fujian Highway Sector Investment 320.00 0.00 0.00 0.00 0.00 320.00 48.00 0.00 P092618 2007 CN-LIAONING MED CITIES INFRAS 2 173.00 0.00 0.00 0.00 0.00 173.00 0.00 0.00 P075613 2007 CN-Shaanxi Ankang Road Development 300.00 0.00 0.00 0.00 0.00 290.00 11.33 0.00 P086515 2007 CN-3rd National Railway 200.00 0.00 0.00 0.00 0.00 200.00 21.33 0.00 P077752 2007 CN-SHANDONG ENVMT 2 147.00 0.00 0.00 0.00 0.00 118.81 -21.53 0.00 P096285 2007 CN-MSE Finance 100.00 0.00 0.00 0.00 0.00 100.00 100.00 0.00 P095315 2007 CN-W. Region Rural Water & Sanitation 25.00 0.00 0.00 0.00 0.00 25.00 0.00 0.00 P075732 2006 CN-SHANGHAI URBAN APL2 180.00 0.00 0.00 0.00 0.00 144.90 21.57 0.00 P081348 2006 CN-HENAN TOWNS WATER 150.00 0.00 0.00 0.00 0.00 139.63 17.13 0.00 P081255 2006 CN-Changjiang/Pearl River Watershed 100.00 0.00 0.00 0.00 0.00 94.76 18.09 0.00 Reha P070519 2006 CN-Fuzhou Nantai Island Peri-Urban Dev 100.00 0.00 0.00 0.00 0.00 98.25 23.25 0.00
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P086629 2006 CN-Heilongjiang Dairy 100.00 0.00 0.00 0.00 0.00 91.76 19.59 3.33 P099992 2006 CN-Liaoning Medium Cities 218.00 0.00 0.00 0.00 0.00 169.77 -21.57 0.00 Infrastructure P096158 2006 CN-Renewable Energy II (CRESP II) 86.33 0.00 0.00 0.00 0.00 71.95 32.08 0.00 P093906 2006 CN-3rd Jiangxi Hwy 200.00 0.00 0.00 0.00 0.00 140.31 -14.69 0.00 P085333 2006 CN-5th Inland Waterways 100.00 0.00 0.00 0.00 0.00 62.16 25.50 0.00 P085124 2006 CN-Ecnomic Reform Implementation 20.00 0.00 0.00 0.00 0.00 18.44 5.27 0.00 P084742 2006 CN-IAIL III 200.00 0.00 0.00 0.00 0.00 93.01 -3.99 0.00 P081346 2005 CN-LIUZHOU ENVIRONMENT MGMT 100.00 0.00 0.00 0.00 0.00 52.46 -5.64 0.00 P081161 2005 CN-CHONGQING SMALL CITIES 180.00 0.00 0.00 0.00 0.00 140.06 38.93 0.00 P086505 2005 CN-NINGBO WATER & ENVMT 130.00 0.00 0.00 0.00 0.00 80.73 -7.27 0.00 P075730 2005 CN-HUNAN URBAN DEV 172.00 0.00 0.00 0.00 0.00 155.62 59.29 0.00 P057933 2005 CN-TAI BASIN URBAN ENVMT 61.00 0.00 0.00 0.00 0.00 26.33 14.60 0.00 P067828 2005 CN-Renewable Energy Scale-up Program 87.00 0.00 0.00 0.00 10.00 2.40 9.40 0.00 P068752 2005 CN-Inner Mongolia Highway & Trade 100.00 0.00 0.00 0.00 0.00 28.66 -19.68 0.00 Corrid P069862 2005 CN - Agricultural Technology Transfer 100.00 0.00 0.00 0.00 0.00 68.43 29.99 0.00 P071094 2005 CN - Poor Rural Communities 100.00 0.00 0.00 0.00 0.00 72.21 45.91 0.00 Development P075728 2004 CN-GUANGDONG/PRD UR ENVMT 128.00 0.00 0.00 0.00 0.64 68.38 27.22 0.00 P065035 2004 CN-Gansu & Xinjiang Pastoral 66.27 0.00 0.00 0.00 0.00 15.06 5.96 0.00 Development P065463 2004 CN-Jiangxi Integrated Agric. Modern. 100.00 0.00 0.00 0.00 0.00 51.18 30.25 0.00 P066955 2004 CN-ZHEJIANG URBAN ENVMT 133.00 0.00 0.00 0.00 0.00 85.34 42.74 0.00 P073002 2004 CN-Basic Education in Western Areas 100.00 0.00 0.00 0.00 0.00 29.63 27.30 0.00 P077137 2004 CN-4th Inland Waterways 91.00 0.00 0.00 0.00 0.46 46.45 28.58 28.08 P069852 2004 CN-Wuhan Urban Transport 200.00 0.00 0.00 0.00 1.00 62.13 61.27 0.00 P081749 2004 CN-Hubei Shiman Highway 200.00 0.00 0.00 0.00 1.00 9.19 -6.47 0.00 P076714 2003 CN-2nd Anhui Hwy 250.00 0.00 0.00 0.00 0.00 11.16 -5.50 0.00 P058847 2003 CN-3rd Xinjiang Hwy Project 150.00 0.00 0.00 0.00 0.00 12.25 12.25 0.00 P040599 2003 CN-TIANJIN URB DEV II 150.00 0.00 0.00 0.00 0.00 121.69 82.09 1.26 P070191 2003 CN-SHANGHAI URB ENVMT APL1 200.00 0.00 0.00 0.00 0.00 76.34 48.24 0.00 P068058 2003 CN-Yixing Pumped Storage Project 145.00 0.00 0.00 0.00 0.00 44.05 34.32 0.00 P064729 2002 CN-Sustainable Forestry Development 93.90 0.00 0.00 0.00 0.00 8.14 2.10 0.00 P071147 2002 CN-Tuberculosis Control Project 104.00 0.00 0.00 0.00 0.00 41.63 30.57 0.00 P070459 2002 CN-Inner Mongolia Hwy Project 100.00 0.00 0.00 0.00 0.00 7.84 4.84 0.00 P068049 2002 CN-Hubei Hydropower Dev in Poor Areas 105.00 0.00 0.00 0.00 0.00 9.88 8.85 0.00 P056596 2001 CN-Shijiazhuang Urban Transport 100.00 0.00 0.00 0.00 0.00 30.86 30.86 0.00 P051859 2001 CN-LIAO RIVER BASIN 100.00 0.00 0.00 0.00 0.00 8.48 8.38 0.00 P047345 2001 CN-HUAI RIVER POLLUTION 105.50 0.00 0.00 0.00 0.00 10.36 10.36 -0.75 CONTROL P064730 2000 CN-Yangtze Dike Strengthening 210.00 0.00 0.00 0.00 0.00 58.99 58.99 45.98 P042109 2000 CN-BEIJING ENVIRONMENT II 349.00 0.00 0.00 25.00 28.02 145.11 173.13 14.62 P049436 2000 CN-CHONGQING URBAN ENVMT 200.00 0.00 0.00 0.00 29.50 43.85 73.35 -1.46 P045910 2000 CN-HEBEI URBAN ENVIRONMENT 150.00 0.00 0.00 0.00 0.00 27.83 27.83 8.10 P036953 1999 CN-Health IX 10.00 50.00 0.00 0.00 0.40 5.75 3.98 3.98 P042299 1999 CN-Tec Coop Credit IV 10.00 35.00 0.00 0.00 5.84 9.59 12.82 0.00 P051856 1999 CN-Accounting Reform & Development 27.40 5.60 0.00 0.00 0.00 5.23 5.02 4.90 P003507 1996 Ertan II Hydroelectric Project 400.00 0.00 0.00 0.00 0.15 33.33 5.78 0.00 Total: 8,203.40 90.60 0.00 25.00 77.01 4,493.16 1,302.79 108.04
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CHINA STATEMENT OF IFC’s Held and Disbursed Portfolio (in Millions of US Dollars) Committed Disbursed IFC IFC FY Approval Company Loan Equity Quasi Partic. Loan Equity Quasi Partic. 2002 ASIMCO 0.00 10.00 0.00 0.00 0.00 10.00 0.00 0.00 2006 ASIMCO 0.00 0.00 4.12 0.00 0.00 0.00 3.61 0.00 2005 BCCB 0.00 59.21 0.00 0.00 0.00 59.03 0.00 0.00 2003 BCIB 0.00 0.00 12.04 0.00 0.00 0.00 0.00 0.00 2006 BUFH 8.14 0.00 0.00 0.00 8.14 0.00 0.00 0.00 2005 Babei 0.00 5.00 0.00 0.00 0.00 5.00 0.00 0.00 Babei Necktie 11.00 0.00 0.00 6.00 8.94 0.00 0.00 4.88 1999 Bank of Shanghai 0.00 21.76 0.00 0.00 0.00 21.76 0.00 0.00 2000 Bank of Shanghai 0.00 3.84 0.00 0.00 0.00 3.84 0.00 0.00 2002 Bank of Shanghai 0.00 24.67 0.00 0.00 0.00 24.67 0.00 0.00 2005 BioChina 0.00 3.70 0.00 0.00 0.00 3.13 0.00 0.00 2002 CDH China Fund 0.00 2.02 0.00 0.00 0.00 0.00 0.00 0.00 2005 CDH China II 0.00 17.99 0.00 0.00 0.00 11.38 0.00 0.00 2006 CDH Venture 0.00 20.00 0.00 0.00 0.00 0.51 0.00 0.00 2005 CT Holdings 0.00 0.00 40.00 0.00 0.00 0.00 0.00 0.00 2004 CUNA Mutual 0.00 10.53 0.00 0.00 0.00 0.00 0.00 0.00 2006 Capital Today 0.00 25.00 0.00 0.00 0.00 0.32 0.00 0.00 2005 Changyu Group 0.00 18.07 0.00 0.00 0.00 18.07 0.00 0.00 1998 Chengdu Huarong 3.36 3.20 0.00 3.13 3.36 3.20 0.00 3.13 2004 China Green Ener 20.00 0.00 0.00 0.00 15.00 0.00 0.00 0.00 2004 China Re Life 0.00 0.27 0.00 0.00 0.00 0.27 0.00 0.00 1994 China Walden Mgt 0.00 0.01 0.00 0.00 0.00 0.01 0.00 0.00 2006 Chinasoft 0.00 0.00 15.00 0.00 0.00 0.00 10.00 0.00 2004 Colony China 0.00 15.31 0.00 0.00 0.00 9.29 0.00 0.00 2004 Colony China GP 0.00 0.84 0.00 0.00 0.00 0.49 0.00 0.00 2006 Conch 81.50 40.93 0.00 0.00 81.50 0.00 0.00 0.00 2006 Dagang NewSpring 25.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2002 Darong 10.00 0.24 0.00 8.00 6.67 0.24 0.00 5.33 2006 Deqingyuan 0.00 2.85 0.00 0.00 0.00 2.85 0.00 0.00 1994 Dynamic Fund 0.00 2.21 0.00 0.00 0.00 2.01 0.00 0.00 2007 Epure 0.00 10.00 0.00 0.00 0.00 0.00 0.00 0.00 2004 Fenglin 17.64 0.00 6.00 13.47 13.64 0.00 6.00 12.53 2006 Fenglin HJ MDF 0.23 0.00 0.00 3.27 0.00 0.00 0.00 0.00 2005 Five Star 0.00 0.00 7.00 0.00 0.00 0.00 0.00 0.00 2006 GDIH 50.85 0.00 0.00 0.00 50.85 0.00 0.00 0.00 2003 Great Infotech 0.00 1.73 0.00 0.00 0.00 1.03 0.00 0.00 2006 Hangzhou RCB 0.00 10.85 0.00 0.00 0.00 0.00 0.00 0.00 2005 HiSoft Tech 0.00 4.00 0.00 0.00 0.00 3.00 0.00 0.00 2006 HiSoft Tech 0.00 4.34 0.00 0.00 0.00 1.74 0.00 0.00 2004 IB 0.00 52.18 0.00 0.00 0.00 52.18 0.00 0.00 2004 Jiangxi Chenming 40.00 12.90 0.00 18.76 40.00 12.90 0.00 18.76 2006 Launch Tech 0.00 8.35 0.00 0.00 0.00 8.33 0.00 0.00
94
2001 Maanshan Carbon 5.25 2.00 0.00 0.00 5.25 2.00 0.00 0.00 2005 Maanshan Carbon 11.00 1.00 0.00 0.00 5.00 1.00 0.00 0.00 2005 Minsheng 15.75 0.00 0.00 0.00 7.00 0.00 0.00 0.00 2006 Minsheng & IB 25.09 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2001 Minsheng Bank 0.00 23.50 0.00 0.00 0.00 23.50 0.00 0.00 2005 Minsheng Bank 0.00 2.80 0.00 0.00 0.00 2.79 0.00 0.00 2001 NCCB 0.00 8.94 0.00 0.00 0.00 8.82 0.00 0.00 1996 Nanjing Kumho 0.00 3.81 0.00 0.00 0.00 3.81 0.00 0.00 2004 Nanjing Kumho 31.38 2.23 0.00 0.00 31.38 2.23 0.00 0.00 2006 Neophotonics 0.00 0.00 10.00 0.00 0.00 0.00 10.00 0.00 2001 New China Life 0.00 5.83 0.00 0.00 0.00 5.83 0.00 0.00 2005 New Hope 0.00 0.00 45.00 0.00 0.00 0.00 0.00 0.00 1995 Newbridge Inv. 0.00 0.22 0.00 0.00 0.00 0.22 0.00 0.00 2005 North Andre 8.00 6.74 0.00 0.00 0.00 4.25 0.00 0.00 2003 PSAM 0.00 2.01 0.00 0.00 0.00 0.00 0.00 0.00 RAK China 13.00 0.00 0.00 0.00 13.00 0.00 0.00 0.00 2006 Renaissance Sec 0.00 0.00 20.04 0.00 0.00 0.00 0.00 0.00 2006 Rongde 0.00 35.00 0.00 0.00 0.00 31.38 0.00 0.00 SAC HK Holding 0.00 1.60 0.00 0.00 0.00 1.00 0.00 0.00 2003 SAIC 12.00 0.00 0.00 0.00 12.00 0.00 0.00 0.00 2006 SBCVC 0.00 20.00 0.00 0.00 0.00 2.00 0.00 0.00 2000 SEAF SSIF 0.00 3.74 0.00 0.00 0.00 3.37 0.00 0.00 SH Keji IT 3.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2004 SHCT 38.18 0.00 0.00 28.64 29.04 0.00 0.00 21.78 2004 SIBFI 0.14 0.07 0.00 0.00 0.00 0.07 0.00 0.00 1998 Shanghai Krupp 19.25 0.00 0.00 36.75 19.25 0.00 0.00 36.75 2006 Shanshui Group 50.00 5.50 2.20 0.00 50.00 5.50 0.00 0.00 1999 Shanxi 12.61 0.00 0.00 0.00 12.61 0.00 0.00 0.00 SinoSpring 0.00 0.00 20.00 0.00 0.00 0.00 0.00 0.00 Stora Enso 20.83 0.00 0.00 4.17 11.00 0.00 0.00 0.00 2005 Stora Enso 29.17 0.00 0.00 20.83 0.00 0.00 0.00 0.00 2006 Stora Enso 50.00 0.00 0.00 175.00 0.00 0.00 0.00 0.00 2006 TBK 4.00 0.00 0.00 0.00 2.00 0.00 0.00 0.00 2006 VeriSilicon 0.00 1.00 0.00 0.00 0.00 1.00 0.00 0.00 Wanjie High-Tech 9.89 0.00 0.00 0.00 9.89 0.00 0.00 0.00 2004 Wumart 0.00 1.62 0.00 0.00 0.00 1.62 0.00 0.00 2003 XACB 0.00 17.95 0.00 0.00 0.00 0.64 0.00 0.00 2004 Xinao Gas 25.00 10.00 0.00 0.00 25.00 10.00 0.00 0.00 2006 Zhejiang Glass 50.00 24.96 0.00 18.00 0.00 0.00 0.00 0.00 2003 Zhengye-ADC 10.43 0.00 0.00 4.87 10.43 0.00 0.00 4.87 2002 Zhong Chen 0.00 4.78 0.00 0.00 0.00 4.78 0.00 0.00 2006 Zhongda_Yanjin 21.89 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total portfolio: 733.58 577.30 181.40 340.89 470.95 371.06 29.61 108.03 Committed Disbursed IFC IFC FY Approval Company Loan Equity Quasi Partic. Loan Equity Quasi Partic. 2002 ASIMCO 0.00 10.00 0.00 0.00 0.00 10.00 0.00 0.00 2006 ASIMCO 0.00 0.00 4.12 0.00 0.00 0.00 3.61 0.00
95
2005 BCCB 0.00 59.21 0.00 0.00 0.00 59.03 0.00 0.00 2003 BCIB 0.00 0.00 12.04 0.00 0.00 0.00 0.00 0.00 2006 BUFH 8.14 0.00 0.00 0.00 8.14 0.00 0.00 0.00 2005 Babei 0.00 5.00 0.00 0.00 0.00 5.00 0.00 0.00 Babei Necktie 11.00 0.00 0.00 6.00 8.94 0.00 0.00 4.88 1999 Bank of Shanghai 0.00 21.76 0.00 0.00 0.00 21.76 0.00 0.00 2000 Bank of Shanghai 0.00 3.84 0.00 0.00 0.00 3.84 0.00 0.00 2002 Bank of Shanghai 0.00 24.67 0.00 0.00 0.00 24.67 0.00 0.00 2005 BioChina 0.00 3.70 0.00 0.00 0.00 3.13 0.00 0.00 2002 CDH China Fund 0.00 2.02 0.00 0.00 0.00 0.00 0.00 0.00 2005 CDH China II 0.00 17.99 0.00 0.00 0.00 11.38 0.00 0.00 2006 CDH Venture 0.00 20.00 0.00 0.00 0.00 0.51 0.00 0.00 2005 CT Holdings 0.00 0.00 40.00 0.00 0.00 0.00 0.00 0.00 2004 CUNA Mutual 0.00 10.53 0.00 0.00 0.00 0.00 0.00 0.00 2006 Capital Today 0.00 25.00 0.00 0.00 0.00 0.32 0.00 0.00 2005 Changyu Group 0.00 18.07 0.00 0.00 0.00 18.07 0.00 0.00 1998 Chengdu Huarong 3.36 3.20 0.00 3.13 3.36 3.20 0.00 3.13 2004 China Green Ener 20.00 0.00 0.00 0.00 15.00 0.00 0.00 0.00 2004 China Re Life 0.00 0.27 0.00 0.00 0.00 0.27 0.00 0.00 1994 China Walden Mgt 0.00 0.01 0.00 0.00 0.00 0.01 0.00 0.00 2006 Chinasoft 0.00 0.00 15.00 0.00 0.00 0.00 10.00 0.00 2004 Colony China 0.00 15.31 0.00 0.00 0.00 9.29 0.00 0.00 2004 Colony China GP 0.00 0.84 0.00 0.00 0.00 0.49 0.00 0.00 2006 Conch 81.50 40.93 0.00 0.00 81.50 0.00 0.00 0.00 2006 Dagang NewSpring 25.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2002 Darong 10.00 0.24 0.00 8.00 6.67 0.24 0.00 5.33 2006 Deqingyuan 0.00 2.85 0.00 0.00 0.00 2.85 0.00 0.00 1994 Dynamic Fund 0.00 2.21 0.00 0.00 0.00 2.01 0.00 0.00 2007 Epure 0.00 10.00 0.00 0.00 0.00 0.00 0.00 0.00 2004 Fenglin 17.64 0.00 6.00 13.47 13.64 0.00 6.00 12.53 2006 Fenglin HJ MDF 0.23 0.00 0.00 3.27 0.00 0.00 0.00 0.00 2005 Five Star 0.00 0.00 7.00 0.00 0.00 0.00 0.00 0.00 2006 GDIH 50.85 0.00 0.00 0.00 50.85 0.00 0.00 0.00 2003 Great Infotech 0.00 1.73 0.00 0.00 0.00 1.03 0.00 0.00 2006 Hangzhou RCB 0.00 10.85 0.00 0.00 0.00 0.00 0.00 0.00 2005 HiSoft Tech 0.00 4.00 0.00 0.00 0.00 3.00 0.00 0.00 2006 HiSoft Tech 0.00 4.34 0.00 0.00 0.00 1.74 0.00 0.00 2004 IB 0.00 52.18 0.00 0.00 0.00 52.18 0.00 0.00 2004 Jiangxi Chenming 40.00 12.90 0.00 18.76 40.00 12.90 0.00 18.76 2006 Launch Tech 0.00 8.35 0.00 0.00 0.00 8.33 0.00 0.00 2001 Maanshan Carbon 5.25 2.00 0.00 0.00 5.25 2.00 0.00 0.00 2005 Maanshan Carbon 11.00 1.00 0.00 0.00 5.00 1.00 0.00 0.00 2005 Minsheng 15.75 0.00 0.00 0.00 7.00 0.00 0.00 0.00 2006 Minsheng & IB 25.09 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2001 Minsheng Bank 0.00 23.50 0.00 0.00 0.00 23.50 0.00 0.00 2005 Minsheng Bank 0.00 2.80 0.00 0.00 0.00 2.79 0.00 0.00 2001 NCCB 0.00 8.94 0.00 0.00 0.00 8.82 0.00 0.00 1996 Nanjing Kumho 0.00 3.81 0.00 0.00 0.00 3.81 0.00 0.00 2004 Nanjing Kumho 31.38 2.23 0.00 0.00 31.38 2.23 0.00 0.00
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2006 Neophotonics 0.00 0.00 10.00 0.00 0.00 0.00 10.00 0.00 2001 New China Life 0.00 5.83 0.00 0.00 0.00 5.83 0.00 0.00 2005 New Hope 0.00 0.00 45.00 0.00 0.00 0.00 0.00 0.00 1995 Newbridge Inv. 0.00 0.22 0.00 0.00 0.00 0.22 0.00 0.00 2005 North Andre 8.00 6.74 0.00 0.00 0.00 4.25 0.00 0.00 2003 PSAM 0.00 2.01 0.00 0.00 0.00 0.00 0.00 0.00 RAK China 13.00 0.00 0.00 0.00 13.00 0.00 0.00 0.00 2006 Renaissance Sec 0.00 0.00 20.04 0.00 0.00 0.00 0.00 0.00 2006 Rongde 0.00 35.00 0.00 0.00 0.00 31.38 0.00 0.00 SAC HK Holding 0.00 1.60 0.00 0.00 0.00 1.00 0.00 0.00 2003 SAIC 12.00 0.00 0.00 0.00 12.00 0.00 0.00 0.00 2006 SBCVC 0.00 20.00 0.00 0.00 0.00 2.00 0.00 0.00 2000 SEAF SSIF 0.00 3.74 0.00 0.00 0.00 3.37 0.00 0.00 SH Keji IT 3.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2004 SHCT 38.18 0.00 0.00 28.64 29.04 0.00 0.00 21.78 2004 SIBFI 0.14 0.07 0.00 0.00 0.00 0.07 0.00 0.00 1998 Shanghai Krupp 19.25 0.00 0.00 36.75 19.25 0.00 0.00 36.75 2006 Shanshui Group 50.00 5.50 2.20 0.00 50.00 5.50 0.00 0.00 1999 Shanxi 12.61 0.00 0.00 0.00 12.61 0.00 0.00 0.00 SinoSpring 0.00 0.00 20.00 0.00 0.00 0.00 0.00 0.00 Stora Enso 20.83 0.00 0.00 4.17 11.00 0.00 0.00 0.00 2005 Stora Enso 29.17 0.00 0.00 20.83 0.00 0.00 0.00 0.00 2006 Stora Enso 50.00 0.00 0.00 175.00 0.00 0.00 0.00 0.00 2006 TBK 4.00 0.00 0.00 0.00 2.00 0.00 0.00 0.00 2006 VeriSilicon 0.00 1.00 0.00 0.00 0.00 1.00 0.00 0.00 Wanjie High-Tech 9.89 0.00 0.00 0.00 9.89 0.00 0.00 0.00 2004 Wumart 0.00 1.62 0.00 0.00 0.00 1.62 0.00 0.00 2003 XACB 0.00 17.95 0.00 0.00 0.00 0.64 0.00 0.00 2004 Xinao Gas 25.00 10.00 0.00 0.00 25.00 10.00 0.00 0.00 2006 Zhejiang Glass 50.00 24.96 0.00 18.00 0.00 0.00 0.00 0.00 2003 Zhengye-ADC 10.43 0.00 0.00 4.87 10.43 0.00 0.00 4.87 2002 Zhong Chen 0.00 4.78 0.00 0.00 0.00 4.78 0.00 0.00 2006 Zhongda_Yanjin 21.89 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total portfolio: 733.58 577.30 181.40 340.89 470.95 371.06 29.61 108.03
Approvals Pending Commitment FY Approval Company Loan Equity Quasi Partic. 2002 SML 0.00 0.00 0.00 0.00 2004 NCFL 0.00 0.00 0.02 0.00 2007 Xinao CTC 0.04 0.01 0.00 0.14 2004 China Green 0.00 0.00 0.01 0.00 2006 Launch Tech 0.01 0.00 0.00 0.00 2005 MS Shipping 0.00 0.01 0.00 0.00 2003 Peak Pacific 2 0.00 0.01 0.00 0.00 Total pending commitment: 0.05 0.03 0.03 0.14
97
Annex 14: Country at a Glance CHINA XINJIANG TURPAN WATER CONSERVANCY PROJECT
China at a glance 12/9/09
East Lower- POVERTY and SOCIAL Asia & middle- Development diamond* China P acific income 2008 Population, mid-year (millions) 1,324.8 1,931 3,702 Life expectancy GNI per capita (Atlas method, US$) 2,930 2,631 2,078 GNI (Atlas method, US$ billions) 3,888.1 5,081 7,692
Average annual growth, 2002-08 Population (%) 0.6 0.8 1.2 Labor force (%) 0.9 1.2 1.6 GNI Gross per primary M ost recent estimate (latest year available, 2002-08) capita enrollment Poverty (% of population below national poverty line) 3.... Urban population (% of total population) 40 44 41 Life expectancy at birth (years) 73 72 68 Infant mortality (per 1,000 live births) 18 22 46 Child malnutrition (% of children under 5) 71326 Access to improved water source Access to an improved water source (% of population) 88 87 86 Literacy (% of population age 15+) 93 93 83 Gross primary enrollment (% of school-age population) 112 111 10 9 China M a l e 110 112 112 Lower-middle-income group F e m a l e 114 110 10 6
KEY ECONOM IC RATIOS and LONG-TERM TRENDS 1988 1998 2007 2008 Economic ratios* GDP (US$ billions) 309.5 1,019.5 3,382.3 4,327.0 Gross capital formation/GDP 37.9 37.1 43.1 44.4 Exports of goods and services/GDP 14.8 20.3 39.7 36.6 Trade Gross domestic savings/GDP 36.6 41.4 52.2 52.5 Gross national savings/GDP 36.7 40.2 54.1 53.6
Current account balance/GDP -1.2 3.1 11.0 9.8 Interest payments/GDP 0.7 0.7 0.3 0.2 Domestic Capital savings formation T o t a l d e b t / G D P 13 . 7 14 . 1 11. 1 8 . 7 Total debt service/exports 8.4 8.5 2.3 2.1 Present value of debt/GDP .. .. 10.8 8.2 Present value of debt/exports .. .. 25.5 21.3 Indebtedness 1988-98 1998-08 2007 2008 2008-12 (average annual growth) GDP 10.5 9.9 13.0 9.0 8.4 China GDP per capita 9.2 9.2 12.4 8.4 7.7 Lower-middle-income group Exports of goods and services 13.4 23.0 19.8 8.4 1.7
STRUCTURE of the ECONOMY 1988 1998 2007 2008 Growth of capital and GDP (%) (% of GDP) 18 Agriculture 25.7 17.6 11.1 11.3 15 Industry 43.8 46.2 48.5 48.6 12 M anufacturing 34.6 31.8 34.0 34.4 9 6 Services 30.5 36.2 40.4 40.1 3 0 Household final consumption expenditure 50.3 44.0 34.1 34.0 03 04 05 06 07 08 General gov't final consumption expenditure 13.1 14.6 13.7 13.5 GCF GDP Imports of goods and services 16.1 16.0 30.6 28.5
1988-98 1998-08 2007 2008 Growth of exports and imports (%) (average annual growth) Agriculture 4.4 3.9 3.7 5.5 40 Industry 14.1 11.1 14.7 9.3 30 M anufacturing 13.1 11.2 16.6 10.5 20 S e r v i c e s 10 . 6 10 . 5 13 . 4 9 . 5 10
Household final consumption expenditure 10.4 4.3 7.1 3.9 0
General gov't final consumption expenditure 10.2 8.8 10.5 8.1 03 04 05 06 07 08 Gross capital formation 11.2 11.3 11.4 9.5 Exports Imports Imports of goods and services 14.6 18.8 13.9 3.8
Note: 2008 data are preliminary estimates. This table was produced from the Development Economics LDB database. * The diamonds show four key indicators in the country (in bold) compared with its income-group average. If data are missing, the diamond will be inco mplete. 98
China
PRICES and GOVERNMENT FINANCE 1988 1998 2007 2008 Inflation (%) Domestic prices (% change) 8 Consumer prices 4.5 14.7 -0.8 1.2 6 Implicit GDP deflator 12.1 -0.9 7.4 7.2 4 2 Government finance 0 (% of GDP, includes current grants) Current revenue 0.0 12.1 19.9 20.4 -2 03 04 05 06 07 08 Current budget balance -15.2 0.4 3.7 3.2 GDP deflator CPI Overall surplus/deficit -19.5 -2.8 0.6 -0.4
TRADE 1988 1998 2007 2008 Export and import levels (US$ mill.) (US$ millions)
Total exports (fob) 47,516 183,809 1,218,015 1,428,546 1,500,000 Food 5,890 10,613 30,751 32,764 M ineral fuels, lubricants, and related materials 3,950 5,175 19,944 31,634 1,200,000 M anufactures 33,110 163,220 1,156,468 1,350,698 900,000 Total imports (cif) 55,275 140,237 955,819 1,133,086 600,000 Food 3,476 3,788 11,497 14,050 Fuel and energy 787 6,776 104,826 169,109 300,000 Capital goods 16,697 56,768 412,508 441,917 0 Export price index (2000=100) 7 6 112 113 119 02 03 04 05 06 07 08 Import price index (2000=100) 8 9 10 0 12 7 14 8 Exports Imports Terms of trade (2000=100) 85 112 89 81
BALANCE of PAYMENTS 1988 1998 2007 2008 Current account balance to GDP (%) (US$ millions) Exports of goods and services 45,912 207,425 1,342,206 1,581,713 12 Imports of goods and services 49,973 163,589 1,034,729 1,232,843 Resource balance -4,061 43,836 307,477 348,870 9 Net income -161 -16,644 25,688 31,438 6 Net current transfers 419 4,278 38,668 45,799 Current account balance -3,803 31,471 371,833 426,107 3
Financing items (net) 4,258 -25,045 89,911 -7,129 0 Changes in net reserves -455 -6,426 -461,744 -418,978 02 03 04 05 06 07 08 Memo: Reserves including gold (US$ millions) 23,739 152,831 1,546,365 2,047,629 Conversion rate (DEC, local/US$) 4.9 8.3 7.6 6.9
EXTERNAL DEBT and RESOURCE FLOWS 1988 1998 2007 2008 Composition of 2008 debt (US$ mill.) (US$ millions) Total debt outstanding and disbursed 42,439 143,982 373,773 378,245 A: IBRD 1,831 9,644 11,762 12,464 12,464 B: 9,786 IDA 1,819 8,693 10,151 9,786 D: 8,405 E: Total debt service 4,565 18,435 32,175 34,389 32,473 IB RD 165 941 1,561 1,524 IDA 15 97 349 388 G: Composition of net resource flows 187,188 Official grants 304 340 566 631 Official creditors 1,355 2,288 -10 903 F: Private creditors 5,425 -2,349 15,570 12,142 127,929 Foreign direct investment (net inflows) 3,194 43,751 138,413 147,791 Portfolio equity (net inflows) 0 765 18,510 8,721 World Bank program Commitments 1,463 2,636 1,361 1,713 Disbursements 1,110 2,066 1,208 1,614 A - IBRD E - Bilateral Principal repayments 39 434 1,184 1,281 B - IDA D - Other multilateral F - Private C - IMF G - Short-term Net flows 1,071 1,632 24 333 Interest payments 141 604 727 632 Net transfers 930 1,028 -703 -299
Note: This table was produced from the Development Economics LDB database. 12/9/09
99
Annex 15: Maps of Project Sites CHINA XINJIANG TURPAN WATER CONSERVATION PROJECT
IBRD 37494_Xinjiang Uygur Autonomous Region, China IBRD 37495_Turpan Prefecture/River Basin, Xinjiang Uygur Autonomous Region IBRD 37496_Turpan City Project Areas, Turpan Prefecture IBRD 37497_Tuokexun County Project Areas, Turpan Prefecture IBRD 37498_Shanshan County Project Areas, Turpan Prefecture
100
IBRD 37494
74° 78° 82° 86° 90° 94° CHINA XINJIANG TURPAN WATER Lake Zaysan Habahe CONSERVATION PROJECT To Novosibirsk KAZAKHSTAN Altay Burqin XINJIANG UYGUR To Novosibirsk
Lake Fuyun AUTONOMOUS REGION 46° Ulungur Lake Tacheng Utubulak Qinghe MONGOLIA TURPAN PROJECT AREAS Balkhash To Novosibirsk Lake Alakol PROJECT CHANNEL 46° Ertai Yumin Lake PERENNIAL/SEASONAL RIVERS AND STREAMS Karamay Manas DAMS
Lake DAMS UNDER CONSTRUCTION Ebinur Bole DESERT HIGHER ELEVATIONS: To Alma-Ata Lake Sayram 2000 - 3999 METERS Shihezi Huocheng Santanghu 4000 METERS AND ABOVE Yining Qitai Changji ÜRÜMQI Lake SELECTED TOWNS OR CITIES Barkol I N S PREFECTURE CAPITALS Zhaosu U N T A M O PROVINCE CAPITAL H A N Dabancheng Yiwu S HIGHWAYS Lake A N 42° T I Issyk-Kul Hami Balguntay Turpan RAILROADS Tuokexun Shanshan To Naryn, Lake RAILROAD UNDER CONST RUCTION Dananhu KYRGYZ Bishkek Keyi Aydingkol Ak Peak PREFECTURE BOUNDARIES su Peabody R Kaiser See IBRD 37495 for detail 42° . Yanji PROVINCE BOUNDARIES 7439 m REPUBLIC Dam Kuqa Bosten INTERNATIONAL BOUNDARIES Lake Aksu Korla Akqi Xayar Xingdi Kalpin Aral er Awati Tarim Riv To Osh r ve Lake To Yumen i H R o DaXiHaiZi r Lop-Nor GANSU Wuqia a t Atushi Kashg a Reservoir n
Kashi Bachu R
Jiashi i r v ng Rive e Yuepuhu rgia r Aketao Ye RUSSIAN FEDERATION I N S Kongur Shan T A KAZAKHSTAN 7718 m Taitema Lake HEILONGJIANG TAJIKISTAN Ruoqiang N Muztagata TAKLIMAKAN DESERT U 38° 7546 m Shache O M MONGOLIA JILIN Sea Taxkorgan Yecheng KYRGYZ LIAONING of N REP. D.P.R. OF Pishan Qiemo XINJIANG UYGUR U AUTONOMOUS REGION KOREA Japan K 38° BEIJING AFGHAN- T NEI MONGOL BEIJING TIANJIN REP. OF JAPAN ISTAN U Lake HEBEI L KOREA Hotan Ayakkum N Lopu A Area of main map SHANXI SHANDONG Yellow PAKISTAN Kunjerap Qira Lake To Golmud QINGHAI Sea Pass NINGXIA JIANGSU L Aqqikkol GANSU 4700 m U Wuluwati Minfeng SHAANXI HENAN Dam K2 N QINGHAI ANHUI SHANGHAI East 8611 m XIZANG HUBEI SICHUAN ZHEJIANG To Islamabad NEPAL China CHONGQING Sea M HUNAN JIANGXI 0 50 100 150 200 FUJIAN O U GUIZHOU N T A I KILOMETERS National Capital TAIWAN N S YUNNAN GUANGDONG This map was produced by the Map Design Unit of The World Bank. GUANGXI The boundaries, colors, denominations and any other information Province Boundaries Philippine shown on this map do not imply, on the part of The World Bank HONG KONG Group, any judgment on the legal status of any territory, or any International Boundaries MACAU Sea endorsement or acceptance of such boundaries. XIZANG VIETNAM
Bay of MYANMAR LAO P.D.R. HAINAN 78° To Shiquanhe 82° 86° 90° 94° Bengal THAI- PHILIPPINES LAND MARCH 2010 IBRD 37495
78° 82° 86° 90° 94° DESERT HIGHER ELEVATIONS: MONGOLIA 2000 - 3999 METERS Habahe 4000 METERS AND ABOVE KAZAKHSTAN Altay CHINA Burqin PREFECTURE CAPITALS Fuyun Qinghe XINJIANG TURPAN WATER CONSERVATION PROJECT PROVINCE CAPITAL Tacheng Utubulak HIGHWAYS 46° Yumin RAILROADS Ertai XINJIANG UYGUR AUTONOMOUS REGION PREFECTURE BOUNDARIES Karamay PROVINCE BOUNDARIES Bole
TURPAN PROJECT AREAS INTERNATIONAL BOUNDARIES Huocheng Shihezi Santanghu Changji Yining ÜRÜMQI S Zhaosu U N T A I N N M O S H A Dabancheng Yiwu T I A N Turpan 42° Hami Balguntay Tuokexun Shanshan Lake Dananhu KYRGYZ Ak Keyi Issyk-Kul su 42° R Kuqa Yanji REPUBLIC . 88°00’ 88°30’ 89°00’ 89°30’ 90°00’ 90°30’ See main map Aksu Bosten Lake Xayar Korla Dahayan for detail Akqi Ertang reservoir dam axis Ertang R. Xingdi Kalpin Awati m River r Tari ve Aral Atushi Ri H Ke’erjiangmu Wuqia hgar GANSU Meiyaogou reservoir dam axis Kas o
t Bachu a Kashi Jiashi ver ng Ri n
ia
Yuepuhu erg R Qiquanhu WUA Aketao Y i
Taerlang R. v S Kekeya R. I N
main canal e A r T Hongxing Ertang
main canal N TAJIKISTAN Ruoqiang U 38° TAKLIMAKAN DESERT O main canal Shache No. 2 Demos Blacckgou M
Taxkorgan Yecheng main canal Qiemo N K Pishan U 38° AFGHAN- T Taerlang ISTAN U L N Lopu A PAKISTAN Hotan Qira Channel Qiketai L U Minfeng QINGHAI 43°00’ Ya’erziang Qiketai WUA 43°00’ N Hongshan Project Kariz WUA Lianmulin branch canal Reservoir M 0 200 km. Baiyan R. Ya’erneizi branch canal O U Reservoir N T A I N S Ya’ergon Turpan Sanbao Lianmujin WUA Shanshan 78° 82° XIZANG 86° 90° 94° Alagou reservoir dam axis Aydinghu Erbao WUA Tuyugou Dongbaza WUA Giaolebuyu WUA WUA Qiatekale WUA WUA Channel Chengizhen WUA Yilalu Tuokex Alagou main cana WUA un R. Pizhan WUA RUSSIAN l Tuyugou WUA FEDERATION Yiaxiang Tuokexun WUA Lukeqin KAZAKHSTAN Bosiran WUA WUA HEILONGJIANG Qingnian Dalangkan WUA main canal See IBRD 37496 for detail Dikaner WUA See IBRD 37498 for detail Ayding Lake MONGOLIA JILIN Sea KYRGYZ LIAONING of CITY REP. D.P.R. OF XINJIANG UYGUR KOREA Japan See IBRD 37497 for detail COUNTY CENTERS AUTONOMOUS REGION BEIJING NEI MONGOL BEIJING 42°30’ ESTABLISHED WUA 42°30’ TIANJIN REP. OF JAPAN HEBEI KOREA PROPOSED NEW WUA Area of inset, above SHANXI SHANDONG Yellow PROJECT CHANNEL QINGHAI Sea
NINGXIA JIAN GANSU PROJECT KARIZ G S SHAANXI HENAN U RESERVOIR DAM AXES ANHUI SHANGHAI East ROAD XIZANG HUBEI SICHUAN ING ZHEJIANG RAILWAY NEPAL Q China
HONG RIVERS/CANALS C Sea HUNAN JIANGXI WATER-SAVING IRRIGATION AREAS FUJIAN GUIZHOU DESERT National Capital TAIWAN YUNNAN GUANGDONG This map was produced by the Map Design Unit of The World Bank. OASES GUANGXI Province Boundaries Philippine 0 1020304050The boundaries, colors, denominations and any other information shown RESERVOIRS HONG KONG on this map do not imply, on the part of The World Bank Group, any International Boundaries MACAU Sea KILOMETERS judgment on the legal status of any territory, or any endorsement or COUNTY BOUNDARIES VIETNAM
acceptance of such boundaries. Bay of MYANMAR LAO P.D.R. HAINAN 88°00’ 88°30’ 89°00’ 89°30’ 90°00’ 90°30’ Bengal THAI- PHILIPPINES 42°00’ LAND MARCH 2010 IBRD 37496
78° 82° 86° 90° 94° DESERT HIGHER ELEVATIONS: MONGOLIA 2000 - 3999 METERS Habahe 4000 METERS AND ABOVE KAZAKHSTAN Altay CHINA Burqin PREFECTURE CAPITALS Fuyun Qinghe XINJIANG TURPAN WATER CONSERVATION PROJECT PROVINCE CAPITAL Tacheng Utubulak HIGHWAYS 46° Yumin RAILROADS Ertai XINJIANG UYGUR AUTONOMOUS REGION PREFECTURE BOUNDARIES Karamay PROVINCE BOUNDARIES Bole
TURPAN CITY PROJECT AREA INTERNATIONAL BOUNDARIES Huocheng Shihezi Santanghu Changji Yining ÜRÜMQI S Zhaosu U N T A I N N M O S H A Dabancheng Yiwu T I A N Turpan 42° Hami Balguntay Tuokexun Shanshan Lake Dananhu KYRGYZ Ak Keyi See main map Issyk-Kul su for detail 42° R Kuqa Yanji REPUBLIC . 89°00’ 89°30’ CITY Taerlang R. Aksu Bosten Lake Meiyaogou reservoir dam axis Xayar Korla Qiquanhu ESTABLISHED WUA Akqi Xingdi Awati er WUA Blacckgou R. Kalpin m Riv r Tari PROPOSED NEW WUA ve Aral Atushi Ri H Wuqia hgar GANSU Kas o
t PROJECT CHANNEL Bachu a Kashi Jiashi ver ng Ri n
ia
Yuepuhu erg R Aketao Y i
PROJECT KARIZ v I N S
e A r T
N RESERVOIR DAM AXIS TAJIKISTAN Ruoqiang U 38° Shache TAKLIMAKAN DESERT O Taerlang M
ROAD Taxkorgan Yecheng Qiemo N Channel K Pishan U 38° main canal No. 2 Demos Blacckgou AFGHAN- T RAILWAY ISTAN U main canal L N Lopu A PAKISTAN Qira RIVERS/CANALS L Hotan U Minfeng QINGHAI No. 1 Demos N main canal WATER-SAVING IRRIGATION AREAS
DESERT M 0 200 km. Ta O U brancho’ergou canal N T A I N S OASES
RESERVOIRS 78° 82° XIZANG 86° 90° 94° Shengjinx COUNTY BOUNDARIES branch canal Tao’ergou iang main canal 43°00’ Hongxing 43°00’ RUSSIAN FEDERATION
Putaogou Reservoir Hongqi KAZAKHSTAN
Project Ya’erxiang distributary Jiafang branch canal HEILONGJIANG Kariz WUA Br’baokan Turpan branch canal MONGOLIA JILIN Dacao Ya’erneizi Reservoir main canal Sea KYRGYZ LIAONING of REP. D.P.R. OF XINJIANG UYGUR KOREA Japan AUTONOMOUS REGION BEIJING Erbao NEI MONGOL Tuyugou BEIJING WUA TIANJIN REP. OF JAPAN Channel HEBEI Aydinghu KOREA WUA Qiatekale Sanbao WUA Area of inset, above SHANXI SHANDONG Yellow WUA QINGHAI Sea NINGXIA JIAN GANSU G S SHAANXI HENAN U
ANHUI SHANGHAI East XIZANG HUBEI SICHUAN ING ZHEJIANG Tuokexun R. NEPAL Q China
HONG Tuyugou C JIANGXI Sea This map was produced by the WUA HUNAN Map Design Unit of The World Bank. FUJIAN GUIZHOU The boundaries, colors, Lukeqin denominations and any other National Capital TAIWAN WUA YUNNAN GUANGDONG information shown on this map do not GUANGXI imply, on the part of The World Bank Province Boundaries Philippine 01051520 HONG KONG Group, any judgment on the legal International Boundaries MACAU Sea status of any territory, or any VIETNAM
endorsement or acceptance of such KILOMETERS Bay of MYANMAR LAO Dalangkan WUA HAINAN boundaries. P.D.R. 89°00’ 89°30’ Bengal THAI- PHILIPPINES LAND MARCH 2010 IBRD 37497
78° 82° 86° 90° 94° DESERT HIGHER ELEVATIONS: MONGOLIA 2000 - 3999 METERS Habahe 4000 METERS AND ABOVE KAZAKHSTAN Altay CHINA Burqin PREFECTURE CAPITALS Fuyun Qinghe XINJIANG TURPAN WATER CONSERVATION PROJECT PROVINCE CAPITAL Tacheng Utubulak HIGHWAYS 46° Yumin RAILROADS Ertai XINJIANG UYGUR AUTONOMOUS REGION PREFECTURE BOUNDARIES Karamay PROVINCE BOUNDARIES Bole
TUOKEXUN COUNTY PROJECT AREA INTERNATIONAL BOUNDARIES Huocheng Shihezi Santanghu Changji Yining ÜRÜMQI S Zhaosu U N T A I N N M O S H A Dabancheng Yiwu T I A N Turpan 42° Hami Balguntay Tuokexun Shanshan Lake Dananhu KYRGYZ Ak Keyi Issyk-Kul su See main map 42° R Kuqa Yanji REPUBLIC . for detail 88°00’ 88°30’ Aksu Bosten Lake Hongshan 43°00’ Xayar Korla Akqi Dacao Lake Xingdi 43°00’ Reservoir Kalpin Awati m River main canal r Tari ve Aral Atushi Ri H Wuqia hgar GANSU Kas o
t Bachu a Kashi Jiashi ver ng Ri n
ia
Yuepuhu erg R Aketao Y i
v I N S
e A r T
N TAJIKISTAN Ruoqiang U 38° Shache TAKLIMAKAN DESERT O M
Taxkorgan Yecheng Qiemo N K Pishan U 38° AFGHAN- T ISTAN U L N Lopu A PAKISTAN Qira L Hotan Baiyan R. U Minfeng N QINGHAI
Ya’ergon M 0 200 km. O U N T A I N S Giaolebuyu WUA 78° 82° XIZANG 86° 90° 94° Aleweiji’alieke
RUSSIAN Tuokexun R. FEDERATION
Alagou reservoir dam axis Alagou main cana Tuokexun KAZAKHSTAN l Bositanxiang branch canal Yiaxiang HEILONGJIANG Yilalu WUA WUA
Qingnian Bosiran South Lake branch canal MONGOLIA JILIN Sea main canal WUA KYRGYZ LIAONING of REP. D.P.R. OF XINJIANG UYGUR KOREA Japan AUTONOMOUS REGION BEIJING NEI MONGOL BEIJING TIANJIN REP. OF JAPAN HEBEI KOREA Area of inset, above SHANXI SHANDONG Yellow QINGHAI Sea
NINGXIA JIAN GANSU G S COUNTY CENTER SHAANXI HENAN U
ESTABLISHED WUA ANHUI SHANGHAI East XIZANG HUBEI RESERVOIR AXIS NG SICHUAN I ZHEJIANG NEPAL Q China ROAD HONG This map was produced by the C Sea RAILWAY HUNAN JIANGXI Map Design Unit of The World Bank. FUJIAN The boundaries, colors, RIVERS/CANALS GUIZHOU denominations and any other National Capital TAIWAN information shown on this map do not WATER-SAVING IRRIGATION AREAS YUNNAN GUANGDONG GUANGXI imply, on the part of The World Bank OASES Province Boundaries Philippine Group, any judgment on the legal 01051520 HONG KONG status of any territory, or any RESERVOIRS International Boundaries MACAU Sea endorsement or acceptance of such VIETNAM KILOMETERS COUNTY BOUNDARIES Bay of MYANMAR LAO boundaries. P.D.R. HAINAN 88°00’ 88°30’ Bengal THAI- PHILIPPINES 42°30’ LAND MARCH 2010 IBRD 37498
78° 82° 86° 90° 94° DESERT HIGHER ELEVATIONS: MONGOLIA 2000 - 3999 METERS Habahe 4000 METERS AND ABOVE KAZAKHSTAN Altay CHINA Burqin PREFECTURE CAPITALS Fuyun Qinghe XINJIANG TURPAN WATER CONSERVATION PROJECT PROVINCE CAPITAL Tacheng Utubulak HIGHWAYS 46° Yumin RAILROADS Ertai XINJIANG UYGUR AUTONOMOUS REGION PREFECTURE BOUNDARIES Karamay PROVINCE BOUNDARIES Bole
SHANSHAN COUNTY PROJECT AREA INTERNATIONAL BOUNDARIES Huocheng Shihezi Santanghu Changji Yining ÜRÜMQI S Zhaosu U N T A I N N M O S H A Dabancheng Yiwu T I A N Turpan 42° Hami Balguntay Tuokexun Shanshan Lake Dananhu KYRGYZ Ak Keyi See main map Issyk-Kul su 42° R Kuqa Yanji for detail Ertang reservoir dam axis REPUBLIC . 89°30’ 90°00’ 90°30’
Kekeya R. Aksu . Bosten Lake Xayar Korla Akqi Xingdi Kalpin Awati m River r Tari ve Aral Kan’erqi Reservoir Atushi Ri H Wuqia hgar GANSU Kas o
t Bachu a Kashi Jiashi ver Blacckgou R ng Ri n Kan’erqi main canal ia
Yuepuhu erg R Aketao Y i
Kekeya Reservoir v I N S
e A r T
Ruoqiang N Ertang R. TAJIKISTAN U 38° Shache TAKLIMAKAN DESERT O M
Taxkorgan Yecheng Qiemo N K Pishan U 38° main canal AFGHAN- T Ertang ISTAN U L N A main canal Lopu Kekeya PAKISTAN Qira L Hotan U Minfeng QINGHAI
main canal
Blacckgou N
M 0 200 km. O U N T A I N S
56 Group branch canal 78° 82° XIZANG 86° 90° 94°
Georgic
Georgiccanal
canal Sheng Red Mountain RUSSIAN branch canal Qiketai Georgic branch jinxiangcanal canal WUA FEDERATION 43°00’ 43°00’ Qiketai KAZAKHSTAN Lianmulin branch canal branch canal HEILONGJIANG 30 Lidadun branch canal
MONGOLIA JILIN Tuyugou Sea KYRGYZ LIAONING of Channel REP. D.P.R. OF XINJIANG UYGUR KOREA Japan Erbao AUTONOMOUS REGION BEIJING Lianmujin NEI MONGOL BEIJING WUA COUNTY CENTER TIANJIN REP. OF JAPAN WUA Shanshan HEBEI Sanbao Dongbaza WUA ESTABLISHED WUA KOREA Area of inset, above SHANXI SHANDONG Yellow WUA Chengizhen WUA PROPOSED NEW WUA QINGHAI Sea
NINGXIA JIAN PROJECT CHANNEL GANSU G S Pizhan WUA RESERVOIR DAM AXIS SHAANXI HENAN U SHANGHAI ROAD ANHUI East XIZANG HUBEI RAILWAY SICHUAN ING ZHEJIANG Tuyugou WUA NEPAL Q China
RIVERS/CANALS HONG C Sea Lukeqin 01051520 HUNAN JIANGXI WUA WATER-SAVING IRRIGATION AREAS FUJIAN GUIZHOU KILOMETERS DESERT National Capital TAIWAN OASES YUNNAN GUANGDONG GUANGXI Dalangkan WUA This map was produced by the Map Design Unit of The World Bank. Province Boundaries Philippine RESERVOIRS The boundaries, colors, denominations and any other information shown HONG KONG MACAU on this map do not imply, on the part of The World Bank Group, any COUNTY BOUNDARIES International Boundaries Sea judgment on the legal status of any territory, or any endorsement or VIETNAM Bay of MYANMAR LAO Dikaner WUA acceptance of such boundaries. P.D.R. HAINAN 89°30’ 90°00’ 90°30’ Bengal THAI- PHILIPPINES LAND MARCH 2010