The World Bank Report No: ISR8824

Implementation Status & Results China China-Second Liaoning Medium Cities Infrastructure Project (P092618)

Operation Name: China-Second Liaoning Medium Cities Infrastructure Project Project Stage: Implementation Seq.No: 6 Status: ARCHIVED Archive Date: 16-May-2013 (P092618)

Public Disclosure Authorized Country: China Approval FY: 2007 Product Line:IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Lioning Urban Construction and Renewal Project Office Key Dates Public Disclosure Copy Board Approval Date 26-Jun-2007 Original Closing Date 31-Dec-2013 Planned Mid Term Review Date Last Archived ISR Date 08-Apr-2012 Effectiveness Date 04-Dec-2007 Revised Closing Date 31-Dec-2013 Actual Mid Term Review Date 18-Oct-2010

Project Development Objectives China-Second Liaoning Medium Cities Infrastructure Project (P092618) Project Development Objective (from Project Appraisal Document) The project development objective is to improve the performance and sustainability of water supply, wastewater, and solid waste services in the LMC-2 cities. Enhanced wastewater and solid waste services will also help reduce pollution into the Bohai Sea and contribute to improving Bohai Sea water quality. Has the Project Development Objective been changed since Board Approval of the Program? Public Disclosure Authorized Yes No

China-GEF-Liaoning (P090375) Global Environmental Objective (from Project Appraisal Document) The global environmental objective of the LMC-2 project with the GEF enhancements is the reduction of land-based pollution into the Bohai Sea through investments in wastewater and solid waste infrastructure and improved utility regulation, planning and management in the LMC-2 cities and throughout Liaoning Province. Has the Global Environmental Objective been changed since Board Approval of the Program?

Yes No

Component(s)

Component Name Component Cost Public Disclosure Authorized Wastewater Infrastructure 129.90 Water Supply Infrastructure 132.20 Solid Waste Management Infrastructure 55.60 Institutional Development 7.70 Public Disclosure Copy

Overall Ratings

Page 1 of 7 Public Disclosure Authorized The World Bank Report No: ISR8824

Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Unsatisfactory Progress towards achievement of GEO Moderately Satisfactory Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating

Implementation Status Overview Overall progress toward the PDO is moderately unsatisfactory. Although significant percentage of physical works have been completed and started delivering benefits to target population, the achievement towards sustainability of services is still lagging behind. With respect to improving the performance of the water supply sector in Yingkou, the project has completed a water treatment plant (WTP), which is providing 100,000 tons/day of clean water, and meeting required quality standards. Another WTP of similar capacity in Anshan is

Public Disclosure Copy expected to become operational in early 2013. In Xingcheng, the project has upgraded water supply distribution networks, constructed two pumping stations, and installed 2,200 water meters to improve water supply services. Non-Revenue Water (NRW) has improved somewhat in four of the five cities, but cost recovery progress is nil. With respect to improving the performance of the wastewater sector, two wastewater treatment plants (WWTP), each with a capacity of 200,000 m3/day, are now operational in Panjin and Yingkou. The effluent from both WWTPs meets required national standards, allowing them to contribute to the reducing pollution loads flowing into the Bohai Sea. A third WWTP in Gaizhou has been recently completed with a capacity of 50,000 m3/day. Cost recovery has improved in some wastewater utilities but still below the targets. With respect to the solid waste sector, the project is improving solid waste collection and disposal in three cities. Currently, the landfill in Panjin is receiving nearly 550 tons of refuse per day and the landfill in Fushun is receiving nearly 1,200 tons/day exceeding their end-of-project targets of 450 tons/day and 360 tons/day respectively. The Yingkou sanitary landfill will be dropped since a suitable location could not be identified.

Progress toward the GEF DO is rated unsatisfactory. Land-based pollution is seeing reductions as the WWTPs come on line. However, the GEF-supported activities, which will improve utility performance and sustainability, are not expected to start until mid-2013 and cannot be completed by the current closing date.

Locations Country First Administrative Division Location Planned Actual China Liaoning Yingkou Shi

China Liaoning Xingcheng Shi

China Liaoning Panjin Shi

China Liaoning Haicheng Shi

China Liaoning Gaizhou Shi

China Liaoning Fushun Shi

China Liaoning Anshan Shi

Results

Public Disclosure Copy Project Development Objective Indicators

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Indicator Name Core Unit of Measure Baseline Current End Target Wastewater Utility Cost Recovery Ratio for 4 Text Value Yingkou 1.0 Panjin 0.6 Yingkou 1.0, Fushun 1.0, Yingkou 1.1; Panjin 1.1; cities Fushun 0.5 Gaizhou 0.0 Gaizhou 1.0 Fushun 1.1; Gaizhou 1.1 Date 31-Dec-2006 30-Nov-2012 31-Dec-2013 Comments Some made progress since project implementation. Panjun's data are not reported. Water Supply Utility Cost Recovery Ratio for 5 Text Value Yingkou 0.9 Panjin 0.8 Yingkou 0.9, Panjun 0.8, Yingkou 1.2; Panjin 1.2; cities Anshan 1.0 Haicheng 0.8 Anshan 0.9, Haicheng 0.95, Anshan 1.2; Haicheng 1.2 Xingcheng 0.9 Fushun 0.86 Xingcheng 1.2

Public Disclosure Copy Date 31-Dec-2006 30-Nov-2012 31-Dec-2013 Comments Almost no progress has been made since 2006. Xingcheng data were not reported. Comprehensive City-wide Cost Accounting Text Value none not started Yes System and Functional MIS for solid waste (y/ Date 31-Dec-2006 30-Nov-2012 31-Dec-2013 n) Comments Data collection is part of the capacity building under the Public Utility Program which has been delayed. Percentage of Non-revenue Water in 5 cities Text Value Yingkou 45 Panjin 46 Anshan Yingkou 39, Panjun 42, Yingkou 36 Panjin 37 Anshan 37 Haicheng 47 Xingcheng 55 Anshan 33, Haicheng 45 30 Haicheng 38 Xingcheng 44 Date 31-Dec-2005 30-Nov-2012 31-Dec-2013 Comments Although none of the final targets have been met, NRW ratios have improved in 4 cities. Xingcheng has completed its construction program, but NRW is not reported. Solid Waste Disposed in Landfill (tons/day) in 3 Text Value Yingkou ETZ 0 Panjin 0 Panjun 550, Fushun 1,200 Yingkou EDZ 492 Panjin 450 cities Fushun 0 Fushun 360 Date 31-Dec-2006 30-Nov-2012 31-Dec-2013 Comments Fushun exceeded target and Yingkou’s target will be Yingkou's was dropped from deleted since the the project. subcomponent has been dropped

Public Disclosure Copy Direct project beneficiaries Number Value 0.00 5100000.00 Date 31-Dec-2006 16-Apr-2013 31-Dec-2013

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Comments The information will be The total urban population in updated in the next ISR. target cities (in the PAD). Female beneficiaries Percentage Value 0.00 50.00 Sub Type Supplemental

Global Environmental Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target New Wastewater Treatment Plant BOD Text Value Panjun=5962t/year Panjin = 1150 t/y removal (tons/year) in 4 cities Yingkou=4051t/year Yingkou = 2300 t/y

Public Disclosure Copy Fushun=12874t/year Fushun = 1150 t/y Gaizhou = 1150 t/y Date 31-Dec-2006 30-Nov-2012 31-Dec-2013 Comments WWTP in Gaizhou and Fushun were recently completed. Panjin WWTP capacity was doubled. Yingkou is operating at 60% capacity.Yingkouis operating at 60% capacity. Volume(mass) of BOD pollution load removed Tones/year Value 0.00 22887.00 5750.00 by treatment plant under the project Date 31-Dec-2006 16-Apr-2013 31-Dec-2013 Comments WWTP in Gaizhou and Fushun were recently completed. Panjin WWTP capacity was doubled. Yingkou is operating at 60% capacity.

Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Additional WWTP Capacity installed (m3/day) Text Value 0 250,000 200,000 Date 31-Dec-2006 30-Nov-2012 31-Dec-2013 Comments WWTPs in Yingkou and Gaizhou completed per design. Panjin WWTP capacity was increased by 50,000. Public Disclosure Copy

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Total new or rehabilitated drainage pipelines Text Value 0 379.6 145 (km) Date 31-Dec-2006 30-Nov-2012 31-Dec-2013 Comments Works contracts installing drainage pipes are ongoing. Number of new or rehabilitated pipelines for Kilometers Value 0.00 443.00 water supply Date 31-Dec-2006 30-Nov-2012 31-Dec-2013 Comments Number of Water Meters installed (each) Text Value 0 33,200 185,200 Date 31-Dec-2006 30-Nov-2012 31-Dec-2013 Comments Installation of water meters is Public Disclosure Copy ongoing but behind schedule. Additional Constructed Landfill Capacity (tons/ Text Value 0 600 2,170 day) Date 31-Dec-2006 30-Nov-2012 31-Dec-2013 Comments The value refers to Panjin This target will be decreased landfill Phase I site which is to 1420 because Yingkou operational. Fushun decided canceled their component. to implement with counterpart funds. Yingkou canceled their landfill component. Industrial and municipal waste disposal Metric ton Value 0.00 600.00 2170.00 capacity created under the project Date 31-Dec-2006 30-Nov-2012 31-Dec-2013 Comments The value refers to Panjin landfill Phase I site which is operational. Fushun decided to implement with counterpart funds. Yingkou canceled their landfill component. Training for Public Utility Program (Man-days) Text Value 0 500 Date 31-Dec-2006 30-Nov-2012 31-Dec-2013 Comments PUP has not started yet. Solid Waste Master Plans completed Text Value 0 0 Master plans for Fushun, Panjin and Yingkou Date 31-Dec-2006 30-Nov-2012 31-Dec-2013 Comments This component has not started yet. Public Disclosure Copy

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Wastewater Master Plans Completed Text Value 0 0 Master plans for Fushun, Huludao and Gaizhou Date 31-Dec-2006 30-Nov-2012 31-Dec-2013 Comments This component has not started yet. Number of water utilities that the project is Number Value 0.00 6.00 6.00 supporting Date 31-Dec-2006 16-Apr-2013 31-Dec-2013 Comments The project has engaged with all the target water utility companies originally identified. Public Disclosure Copy

Data on Financial Performance (as of 12-Mar-2013)

Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P092618 IBRD-48640 Effective 26-Jun-2007 19-Sep-2007 04-Dec-2007 31-Dec-2013 31-Dec-2013 P090375 TF-57757 Effective 19-Sep-2007 19-Sep-2007 19-Sep-2007 31-Dec-2013 31-Dec-2013

Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P092618 IBRD-48640 Effective USD 173.00 173.00 0.00 78.51 94.49 45.00 P090375 TF-57757 Effective USD 5.00 5.00 0.00 0.00 5.00 0.00

Disbursement Graph Public Disclosure Copy

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Key Decisions Regarding Implementation The client should accelerate procurement of the GEF packages and should submit a request to restructure the project and extend the closing date for one year.

Restructuring History There has been no restructuring to date.

Related Projects P090375-China-GEF-Liaoning Public Disclosure Copy

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