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China-Hunan-Forest-Restoration-And-Development-Project.Pdf Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: ICR00004889 IMPLEMENTATION COMPLETION AND RESULTS REPORT ON LOAN IBRD-82150 IN THE AMOUNT OF US$80 MILLION FROM THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Public Disclosure Authorized TO THE PEOPLE'S REPUBLIC OF CHINA FOR THE HUNAN FOREST RESTORATION AND DEVELOPMENT PROJECT (P125021) September 30, 2019 Public Disclosure Authorized Sustainable Development Practice Group Public Disclosure Authorized East Asia And Pacific Region CURRENCY EQUIVALENTS Exchange Rate Effective March 31, 2019 Currency Unit = Chinese Renminbi (CNY) US$1 = 6.71 CNY 1 CNY = US$0.15 FISCAL YEAR January 1 - December 31 Regional Vice President: Victoria Kwakwa Country Director: Martin Raiser Regional Director: Benoit Bosquet Practice Manager: Ann Jeannette Glauber Task Team Leader(s): Jin Liu ICR Main Author: David Kaczan ABBREVIATIONS AND ACRONYMS CO2 Carbon Dioxide CPF Country Partnership Framework CPMO County Project Management Office CPS Country Partnership Strategy EIB European Investment Bank EIRR Economic Internal Rate of Return EMDP Ethnic Minority Development Plan EMP Environmental Management Plan FAO Food and Agriculture Organization of the United Nations FIRR Financial Internal Rate of Return FM Financial Management FYP Five Year Plan GIS Geographic Information Systems ha Hectare IBRD International Bank for Reconstruction and Development ISR Implementation Status and Results Report m3 Cubic Meters M&E Monitoring and Evaluation MTR Mid-term Review OP Operational Policy PDO Project Development Objective PLG Project Leadership Group PMP Pest Management Plan PPMO Provincial Project Management Office RF Results Framework SA Social Assessment TABLE OF CONTENTS DATA SHEET .......................................................................................................................................1 I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ...................................................................5 A. CONTEXT AT APPRAISAL ........................................................................................................................... 5 B. SIGNIFICANT CHANGES DURING IMPLEMENTATION ................................................................................. 9 II. OUTCOME ................................................................................................................................ 11 A. RELEVANCE OF PDOs ............................................................................................................................... 11 B. ACHIEVEMENT OF PDOs (EFFICACY) ........................................................................................................ 12 C. EFFICIENCY .............................................................................................................................................. 17 D. JUSTIFICATION OF OVERALL OUTCOME RATING ..................................................................................... 18 E. OTHER OUTCOMES AND IMPACTS ........................................................................................................... 18 III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ............................................. 21 A. KEY FACTORS DURING PREPARATION ..................................................................................................... 21 B. KEY FACTORS DURING IMPLEMENTATION .............................................................................................. 22 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME ............... 23 A. QUALITY OF MONITORING AND EVALUATION (M&E) ............................................................................. 24 B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE ..................................................................... 26 C. BANK PERFORMANCE .............................................................................................................................. 27 D. RISK TO DEVELOPMENT OUTCOME ......................................................................................................... 29 V. LESSONS AND RECOMMENDATIONS ......................................................................................... 30 ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ........................................................................ 33 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ...................................... 46 ANNEX 3. PROJECT COST BY COMPONENT ........................................................................................ 47 ANNEX 4. EFFICIENCY ANALYSIS ....................................................................................................... 48 ANNEX 5. BORROWER COMMENTS .................................................................................................. 51 ANNEX 6. SUPPORTING DOCUMENTS ............................................................................................... 52 ANNEX 7. SUPPORTING DATA: FOREST ECOLOGY AND MODELS ........................................................ 53 ANNEX 8. THEORY OF CHANGE ASSUMPTIONS ................................................................................. 55 ANNEX 9. IMPLEMENTATION ARANGEMENTS AND DISBURSEMENT .................................................. 56 ANNEX 10. OVERVIEW OF M&E ........................................................................................................ 57 ANNEX 11. MAP OF PROJECT AREA ................................................................................................... 59 The World Bank Hunan Forest Restoration and Development Project (P125021) DATA SHEET BASIC INFORMATION Product Information Project ID Project Name P125021 Hunan Forest Restoration and Development Project Country Financing Instrument China Investment Project Financing Original EA Category Revised EA Category Partial Assessment (B) Organizations Borrower Implementing Agency International Department, Ministry of Finance Hunan Provincial Forestry Bureau Project Development Objective (PDO) Original PDO The project development objective is to enhance the resilience and environmental function of selected ice storm affected ecologicalforest plantations in Hunan Province by increasing forest species diversity and vegetative tree cover in those areas. Page 1 of 59 The World Bank Hunan Forest Restoration and Development Project (P125021) FINANCING Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Financing 80,000,000 80,000,000 80,000,000 IBRD-82150 Total 80,000,000 80,000,000 80,000,000 Non-World Bank Financing 0 0 0 Borrower/Recipient 35,200,000 35,200,000 35,200,000 Total 35,200,000 35,200,000 35,200,000 Total Project Cost 115,200,000 115,200,000 115,200,000 KEY DATES Approval Effectiveness MTR Review Original Closing Actual Closing 17-Jan-2013 07-May-2013 04-May-2016 31-Mar-2019 31-Mar-2019 RESTRUCTURING AND/OR ADDITIONAL FINANCING Date(s) Amount Disbursed (US$M) Key Revisions KEY RATINGS Outcome Bank Performance M&E Quality Highly Satisfactory Highly Satisfactory Substantial RATINGS OF PROJECT PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 21-May-2013 Satisfactory Satisfactory 0 02 17-Dec-2013 Satisfactory Satisfactory 0 03 24-Jun-2014 Satisfactory Satisfactory 6.00 Page 2 of 59 The World Bank Hunan Forest Restoration and Development Project (P125021) 04 28-Dec-2014 Satisfactory Satisfactory 23.37 05 17-Jun-2015 Satisfactory Satisfactory 41.76 06 11-Dec-2015 Satisfactory Satisfactory 51.22 07 20-Jun-2016 Satisfactory Satisfactory 65.76 08 21-Dec-2016 Satisfactory Satisfactory 65.76 09 22-Jun-2017 Satisfactory Satisfactory 75.64 10 24-Dec-2017 Satisfactory Satisfactory 75.64 11 28-Jun-2018 Satisfactory Satisfactory 79.80 12 27-Dec-2018 Satisfactory Satisfactory 79.80 SECTORS AND THEMES Sectors Major Sector/Sector (%) Agriculture, Fishing and Forestry 97 Agricultural Extension, Research, and Other Support 1 Activities Forestry 96 Public Administration 3 Sub-National Government 3 Themes Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) Private Sector Development 100 Jobs 100 Finance 13 Finance for Development 13 Disaster Risk Finance 12 Agriculture Finance 1 Page 3 of 59 The World Bank Hunan Forest Restoration and Development Project (P125021) Urban and Rural Development 37 Rural Development 1 Rural Markets 1 Disaster Risk Management 36 Disaster Response and Recovery 12 Disaster Risk Reduction 12 Disaster Preparedness 12 Environment and Natural Resource Management 100 Climate change 100 Mitigation 50 Adaptation 50 ADM STAFF Role At Approval At ICR Regional Vice President: Pamela Cox Victoria Kwakwa Country Director: Klaus Rohland Martin Raiser Director: John A. Roome Benoit Bosquet Practice Manager: Mark R. Lundell Ann Jeannette Glauber Task Team Leader(s): Jin Liu Jin Liu ICR Contributing Author: David James Kaczan Page 4 of 59 The World Bank Hunan Forest Restoration and Development Project (P125021) I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES A. CONTEXT AT APPRAISAL Context 1. Despite increased government focus on ecological restoration,1,2 China's forest's faced ongoing deficiencies in quality and resilience. By 2010, the extent of national forest cover had increased substantially, from less than 13 percent of the country's area in 1981 to more than 20 percent.3 Yet the quality of forests remained low due to extensive single-species reforestation, poor species-site matching, poor management,
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