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The World Bank for OFFICIAL USE ONLY Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 49565-CN PROJECT APPRAISAL DOCUMENT ON A Public Disclosure Authorized PROPOSED GRANT FROM THE GLOBAL ENVIR0NMEN.T FACILITY TRUST FUND IN THE AMOUNT OF US$4.788 MILLION TO THE PEOPLE’S REPUBLIC OF CHINA FOR A Public Disclosure Authorized SHANGHAI AGRICULTURAL AND NON-POINT POLLUTION REDUCTION PROJECT May 18,2010 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 September 29, 2009) Currency Unit = Renminbi Yuan (RMB) RMB6.830 = US$1 US$0.146 = RMB 1 FISCAL YEAR January 1 - December31 ABBREVIATIONS AND ACRONYMS APL Adaptable Program Loan AMP Abbreviated Resettlement Action Plan BOD Biological Oxygen Demand CAS Country Assistance Strategy CDM Clean Development Mechanism CEA Consolidated Project- Wide Environmental Assessment CEMP Consolidated Project- Wide Environmental Management Plan CNAO China National Audit Office COD Chemical Oxygen Demand CSTR Completely Stirred Tank Reactor DA Designated Account EA Environmental Assessment ECNU East China Normal University EIRR Economic Internal Rate of Return EMP Environmental Management Plan ER Emission Reduction FA0 Food and Agricultural Organization FM Financial Management FMM Financial Management Manual FMS Financial Management Specialist GEF Global Environment Facility GPA Global Program of Action HRT Hydraulic Retention Time IF WB/GEF Strategic Partnership Investment Fund for Pollution Reduction in the Large Marine Ecosystems of East Asia IMO International Maritime Organization IPM Integrated Pest Management 1W:LEARN GEF International Waters Learning Exchange and Resource Network LEAD Livestock, Environment and Development Initiative LMC-2 Liaoning Medium Cities Infrastructure Project LME Large Marine Ecosystems M&E Monitoring and Evaluation MEP Ministry of Environmental Protection MOF Ministry of Finance FOR OFFICIAL USE ONLY MSW Municipal Solid Waste MTSP Manila Third Sewerage Project NWEP Ningbo Water and Environment Project O&M Operations and Maintenance PAP Project Affected People PCG Project Coordination Group PEMSEA Partnerships for Environmental Management of the Seas of East Asia PIA Project Implementing Agency PIP Project Implementation Plan PMO Project Management Office PMP Pest Management Plan RAP Resettlement Action Plan SA Social Assessment SABTS Shanghai Agricultural Broadcasting Television School SAC Shanghai Agricultural Commission SANPR Shanghai Agricultural and Non-Point Pollution Reduction Project SATESC Shanghai Agricultural Technology Extension and Service Center SBH Shanghai Bright Holstan Company Limited SDEP2 Second Shandong Environmental Project SDRC Shanghai Development and Reform Commission SDS-SEA Sustainable Development Strategy for the Seas of East Asia SEPB Shanghai Environmental Protection Bureau SFB Shanghai Municipal Finance Bureau SIACNUD Shanghai International Automobile City New Anting United Development Company Limited SMAO Shanghai Municipal Audit Office SMG Shanghai Municipal Government SOE Statement of Expenditure SSDC Shanghai Shenye Dairy Cooperative STAP Scientific and Technical Advisory Panel TN Total Nitrogen TOR Terms of Reference TP Total Phosphorus TYAPEP Three-Year Action Plan for Environmental Protection UASB Up-Flow Anaerobic Sludge Blanket UNDP United Nations Development Program UNEP United Nations Environmental Program WB World Bank Vice President: James W. Adams, EAPVP Country Director: Klaus Rohland, EACCF Sector Managers: Ede Jorge Ijjasz-Vasquez, EASCS , Vijay Jagannathan, EASIN Task Team Leader: Takuya Kamata, EASIN Co-Task Team Leader: Weiguo Zhou, EASCS This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. CHINA Shanghai Agricultural and Non-point Pollution Reduction Project CONTENTS Page I. STRATEGIC CONTEXT AND RATIONALE .................................................................. 1 A . Country and Sector Issues ................................................................................................... 1 B . Rationale for Bank Involvement.......................................................................................... 2 C . Higher Level Objectives to Which the Project Contributes ................................................ 3 I1 . PROJECT DESCRIPTION .................................................................................................. 3 A . Lending Instrument.............................................................................................................. 3 B . Project Development Objective and key Indicators ............................................................ 3 C . Project Components............................................................................................................. 4 D . Lessons Learned and Reflected in the Project Design ........................................................ 7 E . Alternatives Considered and Reasons for Rejection ........................................................... 8 I11 . IMPLEMENTATION ....................................................................................................... 9 A . Partnership Arrangements ................................................................................................... 9 B . Institutional and Implementation Arrangements ................................................................. 9 C . Monitoring and Evaluation of Outcomes/Results ............................................................ $10 D . Sustainability and Replicability ......................................................................................... 11 E . Critical Risks and Possible Controversial Aspects ............................................................ 12 F . Grant Conditions and Covenants ....................................................................................... 13 IV . APPRAISAL SUMMARY .............................................................................................. 14 A . Economic and Financial Analyses ..................................................................................... 14 B . Technical ........................................................................................................................... 14 C . Fiduciary ............................................................................................................................ 15 D . Social ................................................................................................................................. 15 E . Environment ..................................................................................................................... -15 F. Safeguard Policies .......... ;.................................................................................................. 16 Policy Exceptions and Readiness 18 G . ...................................................................................... Annex 1: Country and Sector or Program Background .......................................................... 19 Annex 2: Major Related Projects Financed by the Bank and/or Other Agencies................. 22 Annex 3: Results Framework and Monitoring ......................................................................... 23 Annex 4: Detailed Project Description ...................................................................................... 26 Annex 5: Project Costs ................................................................................................................ 40 Annex 6: Implementation Arrangements .................................................................................. 41 Annex 7: Financial Management and Disbursement Arrangements ..................................... 44 Annex 8: Procurement Arrangements ....................................................................................... 52 Annex 9: Economic and Financial Analysis .............................................................................. 56 Annex 10: Safeguard Policy Issues............................................................................................. 62 Annex 12: Documents in the Project File .................................................................................. 69 Annex 13: Statement of Loans and Credits............................................................................... 70 Annex 14: Country at a Glance .................................................................................................. 74 Annex 15: Incremental Cost Analysis ........................................................................................ 76 Annex 16: Strategic Partnership Investm'ent Fund .................................................................. 83 Annex 17: Maps ........................................................................................................................... 89 IBRD 36378 CHINA SHANGHAI AGRICULTURAL AND NON-POINT POLLUTION REDUCTION PROJECT PROJECT APPRAISAL DOCUMENT EAST ASIA AND PACIFIC EASCS Date: May 18,2010 Task Team Leader: Takuya Kamata Country Director: Klaus Rohland Co-Task Team Leader: Weiguo
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