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World Bank Document Document of The World Bank Public Disclosure Authorized Report No:ICR0000186 IMPLEMENTATION COMPLETION AND RESULTS REPORT (Loan No. 4328-CHA) ON A LOAN Public Disclosure Authorized IN THE AMOUNT OF US$79.68 MILLION EQUIVALENT TO THE PEOPLE’S REPUBLIC OF CHINA FOR A SECOND INLAND WATERWAYS PROJECT Public Disclosure Authorized June 22, 2007 Transport and Energy Sector Unit Public Disclosure Authorized Sustainable Development Department East Asia and the Pacific Region CURRENCY EQUIVALENTS (Exchange Rate Effective December 31, 2006) Currency Unit = Renminbi RMB1.00 = US$0.13 US$1.00 = RMB7.82 Fiscal Year: January 1-Decemeber 31 ABBREVIATIONS AND ACRONYMS CAS Country Assistance Strategy EAP Environmental Action Plan EIA Environmental Impact Assessment EIRR Economic Internal Rate of Return FIDIC Fédération Internationale des Ingénieurs-Conseils FIRR Financial Internal Rate of Return GOC Government of China GPWB Guangdong Provincial Waterway Bureau ICB International Competitive Bidding ICR Implementation Completion and Results Report IWT Inland Water Transport IWW Inland Waterways IWW2 Second Inland Waterways Project (this Project) JPWB Jiangsu Provincial Waterway Bureau L-S-R Lianhuashan-Shawan-Ronggui M&E Mechanical and Electrical MIS Management Information System MOC Ministry of Communications MOF Ministry of Finance NCB National Competitive Bidding NEPA National Environmental Protection Agency NPV Net Present Value NWB Nansha Waterway Bureau OED Operations Evaluation Department PAD Project Appraisal Document PAO Project Administrative Office PMO Project Management Office QCBS Quality and Cost Based Selection RAP Resettlement Action Plan RMB Renminbi SOE State-owned Enterprise SPC State Planning Commission TA Technical Assistance TEU Twenty-foot equivalent unit (for containers) USD United States Dollar Z-H Zhaoqing-Hutiaomen dwt Deadweight ton (for vessels) Vice President: James W. Adams Country Director: David R. Dollar Sector Manager: Junhui Wu Project Team Leader: John C. Scales ICR Team Leader: John C. Scales China CN-Second Inland Waterways CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph 1. Project Context, Development Objectives and Design............................................... 1 2. Key Factors Affecting Implementation and Outcomes .............................................. 4 3. Assessment of Outcomes.......................................................................................... 10 4. Assessment of Risk to Development Outcome......................................................... 14 5. Assessment of Bank and Borrower Performance ..................................................... 14 6. Lessons Learned ....................................................................................................... 16 7. Comments on Issues Raised by Implementing Agencies ......................................... 17 Annex 1. Project Costs and Financing.......................................................................... 18 Annex 2. Outputs by Component ................................................................................. 19 Annex 3. Economic and Financial Analysis................................................................. 21 Annex 4. Bank Lending and Implementation Support/Supervision Processes ............ 25 Annex 5. Summary of Borrower's ICR and/or Comments on Draft ICR..................... 27 Annex 6. List of Supporting Documents ...................................................................... 36 MAPS: 1. IBRD 29238 2. IBRD 29239 3. IBRD 29240 A. Basic Information CN-2nd Inland Country: China Project Name: Waterways Project ID: P003619 L/C/TF Number(s): IBRD-43280 ICR Date: 06/22/2007 ICR Type: Core ICR MINISTRY OF Lending Instrument: SIL Borrower: FINANCE Original Total USD 123.0M Disbursed Amount: USD 78.9M Commitment: Environmental Category: A Implementing Agencies: Guangdong Provincial Waterways Bureau Jiangsu Provincial Waterways Bureau Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 03/25/1997 Effectiveness: 03/16/1999 03/16/1999 Appraisal: 02/09/1998 Restructuring(s): Approval: 05/29/1998 Mid-term Review: 07/31/2002 Closing: 06/30/2005 12/31/2006 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Satisfactory Risk to Development Outcome: Low or Negligible 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 Implementing Quality of Supervision: Satisfactory Satisfactory Agency/Agencies: Overall Bank Overall Borrower Satisfactory Satisfactory Performance: Performance: i C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Project Quality at Entry No Satisfactory at any time (Yes/No): (QEA): Problem Project at any Quality of No None time (Yes/No): Supervision (QSA): DO rating before Satisfactory Closing/Inactive status: D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Ports, waterways and shipping 100 100 Theme Code (Primary/Secondary) Other financial and private sector development Secondary Secondary Water resource management Primary Primary E. Bank Staff Positions At ICR At Approval Vice President: James W. Adams Jean-Michel Severino Country Director: David R. Dollar Yukon Huang Sector Manager: Junhui Wu Jitendra N. Bajpai Project Team Leader: John Carter Scales Toshiro Tsutsumi ICR Team Leader: John Carter Scales ICR Primary Author: Kek Choo Chung F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The objective of the project was to provide more efficient and productive inland waterway transport (IWT) services which would be more competitive than the current services. This would be achieved through reduction of unit cost and transit time by (a) upgrading inland waterways infrastructure to allow navigation of larger vessels, (b) increasing shiplock capacity to reduce waiting time, and (c) increasing financial and organizational capacity of IWT agencies. The key indicators for monitoring and evaluating performance were (a) reduction in cost (per ton-km), (b) increase in average vessel size (dwt), (c) shiplock waiting time ii (hours/vessel), and (d) financial ratios that included working ratio, self-financing ratio and debt-service coverage ratio. Revised Project Development Objectives (as approved by original approving authority) The development objective remained unchanged throughout the implementation of the Project. (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 Indicator 1 : Average vessel size (dwt) - Jiangsu Value quantitative or 84.2 96 162 Qualitative) Date achieved 12/31/1998 12/31/2005 12/31/2005 Comments The average size of vessels operating on Jiangsu provincial waterways exceeded (incl. % target by 69%. achievement) Indicator 2 : Average vessel size (dwt) - Guangdong Value quantitative or 310 436.2 420.7 Qualitative) Date achieved 12/31/1998 12/31/2005 12/31/2005 Comments The average size of vessels operating on Guangdong provincial waterways was (incl. % slightly less than targeted. achievement) Indicator 3 : Shiplock waiting time (hours/vessel) - Jiangsu Value quantitative or 0.0-1.1 0 0 Qualitative) Date achieved 12/31/1998 12/31/2005 12/31/2005 Comments (incl. % Waiting time had been eliminated at project shiplocks achievement) (b) Intermediate Outcome Indicator(s) Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years Indicator 1 : Working Ratio (%) - Jiangsu Value (quantitative 51 47 0.8 or Qualitative) iii Date achieved 12/31/1998 12/31/2005 12/31/2005 Comments Financial ratios were determined on the basis that operating units have sufficient (incl. % financial autonomy to generate revenue to meet financial targets. This did not achievement) materialize. (See section 2.3) Indicator 2 : Working Ratio (%) - Guangdong Value (quantitative 88 70 95.3 or Qualitative) Date achieved 12/31/1998 12/31/2005 12/31/2005 Comments (incl. % See comments on indicator 1. achievement) Indicator 3 : Self-financing Ratio(%)-Jiangsu Value (quantitative 131 63 6.4 or Qualitative) Date achieved 12/31/1998 12/31/2005 12/31/2005 Comments (incl. % See comments on indicator 1. achievement) Indicator 4 : Self-financing Ratio (%) - Guangdong Value (quantitative -10 0.4 14.8 or Qualitative) Date achieved 12/31/1998 12/31/2005 12/31/2005 Comments (incl. % See comments on indicator 1. achievement) Indicator 5 : Debt-service Coverage Ratio (%)-Jiangsu Value (quantitative 46.8 7.7 0.3 or Qualitative) Date achieved 12/31/1998 12/31/2005 12/31/2005 Comments (incl. % See comments on indicator 1. achievement) Indicator 6 : Debt-service Coverage Ratio (%) - Guangdong Value (quantitative -0.3 0.7 0.5 or Qualitative) Date achieved 12/31/1998 12/31/2005 12/31/2005 Comments (incl. % See comments on indicator 1. achievement) Indicator 7 : Debt-service Coverage Raito (%) - Guangdong Value (quantitative -0.3 0.7 0.5 or Qualitative) iv Date achieved 12/31/1998 12/31/2005
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