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PCR: People's Republic of China: Songhua River Flood Management

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PCR: People's Republic of China: Songhua River Flood Management Completion Report Project Number: 33437-01 Loan Number: 1919 December 2011 People’s Republic of China: Songhua River Flood Management Sector Project CURRENCY EQUIVALENTS Currency Unit – yuan (CNY) At Appraisal At Project Completion 15 August 2002 23 November 2010 CNY1.00 = $0.12 $0.15 $1.00 = CNY8.28 CNY6.63 ABBREVIATIONS ADB – Asian Development Bank CPCO – central project coordination office EA – executing agency EMP – environmental management plan FSR – feasibility study report IEE – initial environmental examination IMAR – Inner Mongolia Autonomous Region MWR – Ministry of Water Resources NDRC – National Development and Reform Commission O&M – operation and maintenance PDR – preliminary design report PMO – project management office PRC – People’s Republic of China PSC – project steering committee SWRC – Songliao Water Resources Commission WEIGHTS AND MEASURES ha – hectare km2 – square kilometer m3 – cubic meter mu – a Chinese unit of measurement (15 mu = 1 ha) t – metric ton NOTES In this report, "$" refers to US dollars. Vice-President S. Groff, Operations 2 Director General K. Gerhaeusser, East Asia Department (EARD) Country Director P. Heytens, PRC Resident Mission (PRCM), EARD Team leader X. Shen, Senior Project Officer (Natural Resources and Agriculture), PRCM, EARD Team members M. Gan, Associate Project Analyst, PRCM, EARD X. Jiang, Operations Assistant, PRCM, EARD W. Zhu, Senior Safeguards Officer (Resettlement), PRCM, EARD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CONTENTS Page BASIC DATA i MAP v I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 1 A. Relevance of Design and Formulation 1 B. Project Outputs 2 C. Project Costs 4 D. Disbursements 4 E. Project Schedule 5 F. Implementation Arrangements 5 G. Conditions and Covenants 6 H. Consultant Recruitment and Procurement 6 I. Performance of Consultants, Contractors, and Suppliers 7 J. Performance of the Borrower and the Executing Agency 7 K. Performance of the Asian Development Bank 7 III. EVALUATION OF PERFORMANCE 7 A. Relevance 7 B. Effectiveness in Achieving Outcome 8 C. Efficiency in Achieving Outcome and Outputs 8 D. Preliminary Assessment of Sustainability 9 E. Impact 9 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 11 A. Overall Assessment 11 B. Lessons Learned 12 C. Recommendations 13 APPENDIXES 1. Project Framework 15 2. Component 1: Flood Management System 22 3. Component 2: Flood Control Works 24 4. Project Cost and Financing Plan 28 5. Projected and Actual Contract Awards and Disbursements 30 6. Project Implementation Schedule 31 7. Organization Chart and Flow of Funds 33 8. Status of Compliance with Loan Covenants 34 9. Economic Reevaluation 40 10. Social Impact and Poverty Reduction Assessment 47 11. Evaluation of Land Acquisition and Resettlement Activities 53 12. Environmental Impact Analysis 60 BASIC DATA A. Loan Identification 1. Country People's Republic of China 2. Loan Number 1919 3. Project Title Songhua River Flood Management Sector Project 4. Borrower People's Republic of China 5. Executing Agency 1. Ministry of Water Resources 2. Heilongjiang Provincial Government 3. Jilin Provincial Government 4. Inner Mongolia Autonomous Regional Government 6. Amount of Loan $150.0 million 7. Project Completion Report Number PCR: PRC 1303 B. Loan Data 1. Appraisal (Phase 1) – Date Started 21 October 2001 – Date Completed 5 November 2001 2. Appraisal (Phase 2) – Date Started 23 November 2001 – Date Completed 3 December 2001 3. Loan Negotiations – Date Started 6 August 2002 – Date Completed 8 August 2002 4. Date of Board Approval 20 September 2002 5. Date of Loan Agreement 14 February 2003 6. Date of Loan Effectiveness – In Loan Agreement 15 May 2003 – Actual 29 May 2003 – Number of Extensions 1 7. Closing Date – In Loan Agreement 31 December 2007 – Actual 31 December 2009 – Number of Extensions 1 8. Terms of Loan – Interest Rate London interbank offered rate (LIBOR) based – Maturity (number of years) 25 – Grace Period (number of years) 5 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 29 May 2003 23 November 2010 90 months Effective Date Original Closing Date Time Interval 29 May 2003 31 December 2007 55 months ii b. Amount ($ million) Net Original Last Revised Amount Amount Amount Undisbursed Category Allocation Allocation Canceled Available Disbursed Balance 01A Civil Works (non- 46.3 60.0 0.9 59.1 59.1 0.0 poor subprojects) 01B Civil Works (poverty 52.6 50.1 0.4 49.7 49.7 0.0 subprojects) 02A Equipment 12.3 16.0 0.5 15.5 15.5 0.0 02B Vehicles 2.5 4.5 0.2 4.3 4.3 0.0 03A Overseas Training 1.4 0.3 0.0 0.3 0.3 0.0 03B Domestic Training 0.3 0.0 0.0 0.0 0.0 0.0 04 International 1.9 4.4 0.0 4.4 4.4 0.0 Consultants 05 Monitoring and 0.4 0.5 0.0 0.5 0.5 0.0 Evaluation 06 Incremental PCO 0.5 0.5 0.0 0.5 0.5 0.0 Operating Costs 07 Front-end Fee 1.5 1.5 0.0 1.5 1.5 0.0 08 Interest and 14.6 12.2 0.0 12.2 12.2 0.0 Commitment Charge 09 Unallocated 15.7 0.0 0.0 0.0 0.0 0.0 a Total 150.0 150.0 2.0 148.0 148.0 0.0 PCO=Project Coordination Office. a $1,956,244.08 was cancelled at loan closing. 10. Local Costs (Financed) - Amount ($) $13,324,239 - Percent of Local Costs 4.4% - Percent of Total Cost 3.1% C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 134.0 134.7 Local Currency Cost 223.7 299.1 Total 357.7 433.8 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Implementation Costs ADB Financed 135.5 135.8 Borrower Financed 207.7 285.8 Sub-total 343.2 421.6 IDC and Commitment Charges ADB Financed 14.5 12.2 Borrower Financed 0.0 0.0 Sub-total 14.5 12.2 Total 357.7 433.8 ADB = Asian Development Bank, IDC = interest during construction. iii 3. Cost Breakdown by Project Component ($ million) Component Appraisal Estimate Actual A. Component 1. Flood Management 29.9 29.8 2. Flood Control Works 307.1 388.3 3. Project Management 4.6 2.0 B. Front-end Fee 1.5 1.5 Total Base Cost 343.1 421.6 C. Interest and Commitment Charges 14.6 12.2 Total Project Cost 357.7 433.8 Source: Songliao Water Resources Commission. 4. Project Schedule Item Appraisal Estimate Actual Date of Contract with Consultants (Package 1) July 2004 July 2004 Date of Contract with Consultants (Package 2) July 2004 July 2004 Completion of Engineering Designs (34 subprojects) March 2004-December 2008 Civil Works Contract Date of Award April 2003 September 2004 Completion of Work November 2006 December 2009 Equipment and Materials First Procurement April 2003 April 2004 Last Procurement November 2006 December 2009 Completion of Equipment and Materials November 2006 December 2009 Start of Operations Heilongjiang Subprojects November 2006 July 2007-December 2009 Inner Mongolia Subprojects November 2006 December 2008-December 2009 Jilin Subprojects November 2006 August 2006-December 2009 5. Project Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress From 20 September 2002 to 31 December 2009 Satisfactory Satisfactory D. Data on Asian Development Bank Missions No. of No. of Specialization a Person Name of Mission Date Persons -Days of Members Fact-finding Mission 14–21 September 2001 3 21 a (2), c Appraisal Mission (Phase 1) 21 October – 5 November 2001 4 60 a, c, d, j Appraisal Mission (Phase 2) 23 November–3 December 2001 2 20 a, c Inception Mission 8–19 September 2003 5 24 a, e, k, l, o Loan Review Mission 19–27 August 2004 3 14 a (2), e Loan Review Mission 4–15 April 2005 5 55 a, e, f, h, k (Handover Mission) Mid-term Review 14–25 November 2005 6 53 b, e, f, g, h, j Special Loan Review 10–14 July 2006 3 12 e, f ,h Mission Loan Review Mission 4–15 September 2006 4 40 e, f, k, h Loan Review Mission 3–8 August 2007 3 15 e, f, h Loan Review Mission 19–26 September 2007 3 21 e, f, h iv No. of No. of Specialization a Person- Name of Mission Date Persons Days of Members Special Loan Review Mission 23 June–6 July 2008 4 40 e, f, h, i Special Loan Review Mission 16–20 February 2009 3 12 f (2), m Loan Review Mission 22–29 September 2009 2 14 e, f Loan Review Mission 23–27 November 2009 1 8 f Loan Review Mission 7–11 December 2009 2 8 f, h Special Loan Review Mission 25–26 November 2010 3 6 e, f, h Project Completion Review 11–20 April 2011 4 23 e, f, h, n a a = (senior) project specialist, b = economist (staff consultant), c = programs officer, d = counsel, e = (assistant/associate) project analyst, f = (senior) project officer, g = finance officer, h = (senior) resettlement officer, i = environment officer, j = environment specialist, k = procurement specialist, l = (senior) financial control specialist, m = administrative assistant, n = environmental specialist (staff consultant), o= disbursement specialist. v Map I. PROJECT DESCRIPTION 1. Floods and droughts have produced some of the worst natural disasters in the People’s Republic of China (PRC). The poorest members of society are most at risk from such calamities.
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