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World Bank Document Document of The World Bank Public Disclosure Authorized Report No: ICR00001101 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-46170 TF-50520) Public Disclosure Authorized ON A LOAN IN THE AMOUNT OF USD100 MILLION TO THE PEOPLE'S REPUBLIC OF CHINA FOR THE Public Disclosure Authorized LIAO RIVER BASIN PROJECT June 15, 2009 Sustainable Development Department East Asia and Pacific Region Public Disclosure Authorized CURRENCY EQUIVALENTS ( Actual Exchange Rate) Currency Unit = Yuan Yuan 1.00 = USD 0.13 USD 1.00 = Yuan 7.6 Fiscal Year January 1 to December 31 ABBREVIATIONS AND ACRONYMS BOD Biological Oxygen Demand CNY Chinese Yuan (RMB) COD Chemical Oxygen Demand DC Drainage Company EA Environmental Assessment GDP Gross Domestic Product GIS Geographic Information System ICR Implementation Completion & Results (Report) IA Implementation Agency JDC Jinzhou Drainage Company JMG Jinzhou Municipal Government LMC2 2nd Liaoning Medium Cities Infrastructure Project Ln48640 LP Liaoning Province LPG Liaoning Provincial Government LRBP Liao River Basin Project LUCRPO Liaoning Urban Construction Renewal Project Office MOF Ministry of Finance O&M Operation and Maintenance PAD Project Appraisal Document PDC Panjin Drainage Company PDO Project Development Objective PHRD Policy and Human Resources Development (Grant from Japan) PMG Panjin Municipal Government PIU Project Implementing Units PUB Public Utilities Bureau QAE Quality at Entry QSA Quality of Supervision Assessment RAP Resettlement Action Plan RMB Chinese Yuan (Renminbi) UMIS Urban Management Information System WWTP Wastewater Treatment Plant YDC Yingkou Drainage Company YMG Yingkou Municipal Government Vice President Mr. James W. Adams Country Director Mr. David R. Dollar Sector Manager Mr. Ede Jorge Ijjasz Vasquez Task Team Leader Mr. Mingyuan Fan China LIAO RIVER BASIN PROJECT CONTENTS 1. Basic Information 2. Key Dates 3. Ratings Summary 4. Sector and Theme Codes 5. Bank Staff 6. Project Context, Development Objectives and Design 7. Key Factors Affecting Implementation and Outcomes 8. Assessment of Outcomes 9. Assessment of Risk to Development Outcome 10. Assessment of Bank and Borrower Performance 11. Lessons Learned 12. Comments on Issues Raised by Borrower/Implementing Agencies/Partners Annex 1. Detailed Performance Indicators/Results Annex 2. Project Costs and Financing Annex 3. Outputs by Component Annex 4. Economic and Financial Analysis Annex 5. Implementation of the Industrial Pollution Control Action Plan Annex 6: Resettlement Implementation Annex 7. Bank Lending and Implementation Support/Supervision Processes Annex 8. Summary of Borrower's ICR and/or Comments on Draft ICR Annex 9. List of Supporting Documents MAP No. 31284R A. Basic Information Liao River Basin Country: China Project Name: Project IBRD-46170,TF- Project ID: P051859 L/C/TF Number(s): 50520 ICR Date: 06/15/2009 ICR Type: Core ICR PEOPLE'S Lending Instrument: SIL Borrower: REPUBLIC OF CHINA Original Total USD 100M Disbursed Amount: USD 91.5M Commitment: Environmental Category: A Implementing Agencies: (i) Liaoning Urban Construction and Renewal Project Office (LUCRPO) (ii) Municipal Governments and Drainage Companies of Panjin, Yingkou and Jinzhou (iii) Yingkou Paper Mill and Jincheng Paper Mill (iv) Liaoning Provincial Construction Commission (v) Liaoning Environmental Protection Bureau Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept 10/26/2000 Effectiveness: 05/23/2002 05/23/2002 Review: 12/01/2007 Appraisal: 03/12/2001 Restructuring(s): - 12/01/2008 Mid-term Approval: 06/19/2001 12/31/2004 07/02/2004 Review: Closing: 12/31/2007 12/31/2008 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Satisfactory Risk to Development Outcome: Moderate Bank Performance: Satisfactory Borrower Performance: Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Satisfactory Government: Satisfactory Quality of Implementing Satisfactory Satisfactory Supervision: Agency/Agencies: Overall Bank Overall Borrower Satisfactory Satisfactory Performance: Performance: C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Quality at Entry Project at any time No None (QAE): (Yes/No): Problem Project at any Quality of No None time (Yes/No): Supervision (QSA): DO rating before Moderately Closing/Inactive status: Satisfactory D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Other industry 10 17 Sewerage 83 75 Sub-national government administration 7 8 Theme Code (Primary/Secondary) Pollution management and environmental health Primary Primary Water resource management Primary Primary E. Bank Staff Positions At ICR At Approval Vice President: Mr. James W. Adams Mr. Jemal-ud-din Kassum Country Director: Mr. David R. Dollar Mr. Yukon Huang Sector Manager: Mr. Ede Jorge Ijjasz-Vasquez Mr. Keshav Varma Project Team Leader: Mr. Mingyuan Fan Mr. Geoffrey Read ICR Team Leader: Mr. Mingyuan Fan ICR Primary Author: Mr. Chandra Godavitarne F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The development objective is to assist the environmental recovery of the Liao River Basin (LRB) in Liaoning Province and to enhance water quality management decision- making on the basis of an integrated river basin management approach. Revised Project Development Objectives (as approved by original approving authority) Project objectives remained unchanged during the project period. (a) PDO Indicator(s) Original Target Formally Actual Value Values (from Revised Achieved at Indicator Baseline Value approval Target Completion or documents) Values Target Years Water quality in Hun, Taizi, Liao and Daliao Rivers meets Class V Indicator 1 : standards for COD (% of time). Value quantitative or N/A 70% 70% Qualitative) Date achieved 05/31/2001 12/31/2007 12/31/2008 Target for 2007 was met in 2008. 2008 figures for Yingkou, Panjin and Comments Jinzhou are 100%, 50%, and 58%, respectively, yielding an average of (incl. % 70%. The 90% target by 2010 is likely to be achieved because LPG has achievement) enhanced discharge standards Aggregate quantity of wastewater treated at project city wastewater Indicator 2 : treatment plants (% of system flow). Value quantitative or 0% 80% 48% Qualitative) Date achieved 05/31/2001 12/31/2010 12/31/2008 Target is on track to be met. Quantities have already been reached within Comments the service areas, but the municipalities actually grew much faster than (incl. % anticipated in the project design stage. Additional treatment plants will be achievement) completed by 2010. Indicator 3 : Industrial wastewater meeting river discharge standards (% of total flow). Value quantitative or 50% 80% 92% Qualitative) Date achieved 05/31/2001 12/31/2010 12/31/2007 Target exceeded. LPG has implemented the Industrial Pollution Control Comments Action Plan addressing the 20 worst polluting industries identified at (incl. % appraisal. Major action was taken against paper mills, resulting in the achievement) closure of over 200 paper mills. Indicator 4 : Industrial water use per unit of output (m3/Y10,000) Value quantitative or 120 60 48 Qualitative) Date achieved 05/31/2001 12/31/2010 12/31/2007 Comments Target exceeded. Implementation of the Industrial Pollution Control (incl. % Action Plan yielded excellent water-saving results. achievement) Indicator 5 : Liaoning Provincial Govt. approval of the River Basin Plan Value quantitative or Draft plan Approval Approved Qualitative) Date achieved 05/31/2001 06/30/2002 June 2002 Comments Target met. LPG has adopted river basin management concepts for (incl. % prioritization of investments, demand management and pollution control achievement) and management. Indicator 6 : Wastewater tariffs implemented to meet financial projections. Baseline in 2001 Target for 2005 Actual since 2005 Value (Y/m3): (Y/m3): (Y/m3): quantitative or Yingkou: 0.25 Yingkou: 0.77 Yingkou : 0.62 Qualitative) Panjin: 0.34 Panjin: 0.72 Panjin : 0.86 Jinzhou: 0.29 Jinzhou: 0.85 Jinzhou : 0.63 Date achieved 05/31/2001 12/31/2005 12/31/2005 Target met in principle. Tariffs were increased at intervals until 2005. Comments However, municipal subsidies (as permitted under the Project Agreement) (incl. % are currently still required to enable the drainage companies to meet achievement) operating cost and debt service. Indicator 7 : Class V river water quality achieved in Daliao and Liao Value Daliao: Achieved Target should be quantitative or zero Liao: Short of achieved Qualitative) target Date achieved 12/31/2001 12/31/2006 12/31/2008 Comments Target met for Daliao River, not yet achieved for Liao River. See Annex (incl. % 1 for details on the achievements made in improving water quality in the achievement) Liao, Daliao, and Daling Rivers. Indicator 8 : Paper-making companies to achieve financial targets Value 80% quantitative or zero achievement Qualitative) Date achieved 05/31/2001 12/31/2006 Target partially met. This indicator was inappropriate as the project Comments investments were very minor in relation to the overall operation of the (incl. % paper companies. One of the PMs was profitable until 2008, the other achievement) made losses throughout the project. (b) Intermediate Outcome Indicator(s) Original Target Formally Actual Value Values (from Revised Achieved at Indicator Baseline Value approval Target
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