T echnical Assistance Final Report Project Number: 42016 October 2009 People's Republic of China: Preparing the Qinghai Rural Water Resources Management Project Prepared by: SOGREAH Consultants, France For the Qinghai Department of Water Resources This report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design.) PEOPLE REPUBLIC OF CHINA ASIAN DEVELOPMENT BANK QINGHAI WATER RESOURCES BUREAU QINGHAI RURAL WATER RESOURCES MANAGEMENT PROJECT PPTA 7103-PRC FINAL REPORT V1: MAIN REPORT SEPTEMBER 2009 1300300.R4 PEOPLES REPUBLIC OF CHINA ASIAN DEVELOPMENT BANK QINGHAI WATER RESOURCES BUREAU QINGHAI RURAL WATER RESOURCES MANAGEMENT PROJECT FINAL REPORT IDENTIFICATION N° : 1300030.R4 ATE EPTEMBER D : S .25, 2009 This document has been produced by SOGREAH Consultants as part of the ADB TA Grant to Chinese Government (QDOWR). This document has been prepared by the project team under the supervision of the Project Director following Quality Assurance Procedures of SOGREAH in compliance with ISO9001. APPROVED BY INDEX DATE AUTHOR CHECKED BY (PROJECT PURPOSE OF MODIFICATION DIRECTOR) Project A First Issue 25/09/09 CWS GDM Team INDEX CONTACT ADDRESS DISTRIBUTION LIST The Asia Development Bank [email protected]; 1 (Mr Zhou Yaozhou, Mr K.Kannan) [email protected] Qinghai Department of Water 2 Resources [email protected] 3 SOGREAH (Head Office) [email protected] , PEOPLES REPUBLIC OF CHINA –ADB/QWRB QINGHAI RURAL WATER RESOURCES MANAGEMENT PROJECT R4: FINAL REPORT TABLE OF CONTENTS LIST OF TABLES .......................................................................................................................................... II LIST OF FIGURES........................................................................................................................................ III ABBREVIATIONS, ACRONYMS AND UNITS...................................................................................................... IV 1. INTRODUCTION ...................................................................................................................................... 1 1.1. BACKGROUND ............................................................................................................................................1 1.2. SCOPE OF THE ASSIGNMENT.......................................................................................................................1 1.3. PROJECT DELIVERABLES ............................................................................................................................3 1.4. CONSULTANTS WORKPLAN AND STAFFING SCHEDULE.................................................................................3 1.5. SCOPE AND LAYOUT OF THIS REPORT .........................................................................................................3 2. RATIONALE: SECTOR PERFORMANCE, PROBLEMS AND OPPORTUNITIES.................................................... 6 2.1. PERFORMANCE INDICATORS AND ANALYSIS.................................................................................................6 2.2. ANALYSIS OF KEY PROBLEMS AND OPPORTUNITIES...................................................................................12 3. THE PROPOSED PROJECT.................................................................................................................... 19 3.1. IMPACT AND OUTCOME..............................................................................................................................19 3.2. OUTPUTS..................................................................................................................................................19 3.3. PROJECT DESCRIPTION.............................................................................................................................20 3.4. SPECIAL FEATURES ..................................................................................................................................24 3.5. PROJECT INVESTMENT PLAN .....................................................................................................................25 3.6. FINANCING PLAN ......................................................................................................................................27 3.7. IMPLEMENTATION ARRANGEMENTS............................................................................................................28 4. PROJECT BENEFITS, IMPACTS, ASSUMPTIONS AND RISKS ...................................................................... 35 4.1. BENEFITS AND IMPACTS ............................................................................................................................35 4.2. SUSTAINABILITY ANALYSIS........................................................................................................................35 4.3. ECONOMIC AND FINANCIAL BENEFITS........................................................................................................38 4.4. ENVIRONMENTAL IMPACT ..........................................................................................................................45 4.5. SOCIAL BENEFITS AND POVERTY................................................................................................................48 4.6. ETHINIC MINORITY.....................................................................................................................................52 4.7. RESETTLEMENT ........................................................................................................................................57 4.8. RISK ANALYSIS AND MITIGATION MEASURES .............................................................................................64 5. CONCLUSIONS AND ASSURANCES ........................................................................................................ 67 SOGREAH -CWS- REPORT N° 1300030.R4 PAGE I 2009 SEPTEMBER PEOPLES REPUBLIC OF CHINA –ADB/QWRB QINGHAI RURAL WATER RESOURCES MANAGEMENT PROJECT R4: FINAL REPORT APPENDIXES 1. Project Design and Monitoring Framework 2. Problem Tree Analysis 3. Sector Analysis 4. External Assis tance and Lessons Learned 5. Cost Estimates 6. Procurement Plan 7. Implementation Schedule 8. Financial Management Assessment 9. Financial and Economic Analyses 10. Summary Intitial Environmental Examination 11. Environmental Management Plan 12. Summary Poverty Reduction and Social Strategy 13. Summary Ethnic Minorities Development Plans 14. Summary Resettlement Plans 15. Bibliography SUPPLEMENTARY APPENDIXES A. Social Assessment Survey B. Detailed Poverty and Social Analysis C. Subproject Feasibility Study Reports D. Participatory Irrigation Management E. Irrigation Agriculture Strategy F. Detailed Cost Estimates G. Environmental Impact Assessment H. Ethnic Minorities Development Plan I. Resettlement Plan for Lijiaxia Irrigation Area J. Resettlement Plan for Gongboxia Irrigation Area K. Financial Management Assessment Questionnaires L. Procurement Capacity Assessment Questionnaires M. Detailed Project Implementation Schedule SOGREAH -CWS- REPORT N° 1300030.R4 PAGE II 2009 SEPTEMBER PEOPLES REPUBLIC OF CHINA –ADB/QWRB QINGHAI RURAL WATER RESOURCES MANAGEMENT PROJECT R4: FINAL REPORT LIST OF TABLES TABLE 1-1: LIST OF REPORTS....................................................................................................................................................................3 TABLE 2-1: AVERAGE CROP YIELDS FOR THE PROJECT AREA BY COUNTY..................................................................................................9 TABLE 2-2: CHANGE IN PROJECT WATER REQUIREMENTS.........................................................................................................................13 TABLE 2-3: RELEVANT EXTERNAL ASSISTANCE........................................................................................................................................15 TABLE 2-4: LESSONS LEARNED AND ADDRESSED IN THE PROJECT DESIGN ...............................................................................................16 TABLE 2-5: CONSTRAINTS, OPPORTUNITIES AND ALTERNATIVES ...............................................................................................................17 TABLE 3-1: JOINT WDO – WUA SYSTEM MANAGEMENT LOGISTICS..........................................................................................................21 TABLE 3-2: MAJOR ACTIVITIES ON PIM AND AGRICULTURAL SUPPORT......................................................................................................22 TABLE 3-3: TENTATIVE PROJECT INVESTMENT PLAN.................................................................................................................................26 TABLE 3-4: TENTATIVE PROJECT INVESTMENT PLAN BY COUNTY..............................................................................................................26 TABLE 3-5: TENTATIVE FINANCING PLAN..................................................................................................................................................27 TABLE 3-6: LOAN ALLOCATION, DISTRIBUTION BY COUNTY AND FINANCING PERCENTAGES........................................................................27 TABLE 3-7: PERFORMANCE MONITORING AND EVALUATION