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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 67628-CN PROJECT APPRAISAL DOCUMENT ON THREE PROPOSED LOANS IN A TOTAL AMOUNT OF Public Disclosure Authorized US$150 MILLION (US$50 MILLION EACH TO FINANCE PROJECT ACTIVITIES IN GUANGDONG, HUNAN AND GANSU PROVINCES) TO THE PEOPLE’S REPUBLIC OF CHINA FOR THE Public Disclosure Authorized INTEGRATED ECONOMIC DEVELOPMENT OF SMALL TOWNS PROJECT April 23, 2012 China and Mongolia Sustainable Development Unit Sustainable Development Department East Asia and Pacific Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective: December 9, 2011) Currency Unit = Renminbi (RMB) Yuan RMB Yuan 1.0 = US$ 0.156 US$ 1.0 = RMB Yuan 6.39 FISCAL YEAR July 1 – June 30 ABBREVIATIONS AND ACRONYMS AWP Annual Work Plan CAS Country Assistance Strategy CEA Cost-Effectiveness Analysis CHM Complain Handle Mechanism CNAO Chinese National Audit Office CPMO County Project Management Office CPS Country Partnership Strategy CQ Consultant Qualifications CWG Consulting Working Group DA Designated Account DIs Design Institutes EA Environmental Assessment ECOP Environmental Code of Practice EIA Environmental Impact Assessment EMDP Ethnic Minority Development Plan EMP Environmental Management Plan ERR Economic Rate of Return FM Financial Management FMM Financial Management Manual FSRs Feasibility Study Reports FYP Five Year Plan GHG Green House Gas GoC The Government of China Ha Hectare HH Households IBRD International Bank for Reconstruction and Development ICB International Competitive Bidding IFR Interim Financial Report ISDS Integrated Safeguard Data Sheet M&E Monitoring and Evaluation MIS Management Information System MOF Ministry of Finance NBF Non-Bank’s Finance NCB National Competitive Bidding NDRC National Development and Reform Commission NSC New Socialist Countryside O&M Operation and Maintenance ORAF Operational Risk Assessment Framework PAD Project Appraisal Document PAO Provincial Audit Office PCN Project Concept Note PDO Project Development Objective PDRC Provincial Development and Reform Commission PFB Provincial Finance Bureaus PLG Project Leading Group PM Procurement Manual PMO Project Management Office PMP Pest Management Plan PP Procurement Plan PPMO Provincial Project Management Office PPP Public Private Partnership PRC People’s Republic of China QBS Quality-Based Selection QCBS Quality-and-Cost-Based Selection RAPs Resettlement Action Plans RF Results Framework RFP Request for Proposals RMB Renminbi RP Resettlement Plan R&D Research & Development SA Social Assessment SBD Standard Bidding Document SIL Sectoral Investment Loan SMEs Small and Medium Enterprises TA Technical Assistance TEG Technical Expert Group TVEs Township and Village Enterprises VSL Variable Spread Loan VCA Value Chain Analysis WWTP Waste Water Treatment Plan WUAs Water Users’ Associations Regional Vice President: Pamela Cox Country Director: Klaus Rohland Sector Director: John Roome Sector Managers: Paul Kriss Task Team Leader: Wendao Cao Table of Contents I. Strategic Context ..................................................................................................................... 1 A. Country Context ............................................................................................................... 1 B. Sectoral and Institutional Context .................................................................................... 1 C. Higher Level Objectives to which the Project Contributes .............................................. 4 II. Project Development Objectives............................................................................................. 4 A. PDO .................................................................................................................................. 4 B. Beneficiaries ..................................................................................................................... 4 C. PDO Level Results Indicators .......................................................................................... 5 III. Project Description............................................................................................................... 5 A. Project components .......................................................................................................... 5 B. Project Financing.............................................................................................................. 6 C. Lessons Learned ............................................................................................................... 7 IV. Implementation .................................................................................................................... 8 A. Institutional and Implementation Arrangements .............................................................. 8 B. Results Monitoring and Evaluation .................................................................................. 8 C. Sustainability .................................................................................................................... 9 V. Key Risks and Mitigation Measures ..................................................................................... 10 A. Risk Ratings Summary Table ......................................................................................... 10 B. Overall Risk Rating Explanation.................................................................................... 10 VI. Appraisal Summary ........................................................................................................... 11 A. Economic Analysis ......................................................................................................... 11 B. Financial and Fiscal ........................................................................................................ 11 C. Technical ........................................................................................................................ 12 D. Financial Management ................................................................................................... 14 E. Procurement ................................................................................................................... 14 F. Social .............................................................................................................................. 15 G. Environment ................................................................................................................... 15 Annex 1: Results Framework and Monitoring.............................................................................. 17 Annex 2: Detailed Project Description ........................................................................................ 21 Annex 3: Implementation Arrangements ..................................................................................... 28 Annex 4: Operational Risk Assessment Framework (ORAF) ..................................................... 39 Annex 5: Implementation Support Plan ........................................................................................ 42 . PAD DATA SHEET China CN Integrated Economic Development of Small Towns Project (P118597) PROJECT APPRAISAL DOCUMENT . EAST ASIA AND PACIFIC EASCS . Basic Information Date: 23-April-2012 Sectors: Rural and Inter-Urban Roads and Highways (55%), Agro- industry, marketing, and trade (20%), Solid waste management (10%), Water supply (10%), Vocational training (5%) Country Director: Klaus Rohland Themes: Rural non-farm income generation (20%), Infrastructure services for private sector development (20%), Other Sector Manager/Director: Paul Kriss/John A. Roome public sector governance (20%), Rural services and infrastructure (20%), Participation and civic engagement (20%) Project ID: P118597 EA Category: B - Partial Assessment Lending Instrument: Specific Investment Loan (SIL) Team Leader(s): Wendao Cao Joint IFC: No . Borrower: People’s Republic of China (PRC) Responsible Agency: Guangdong Provincial Development and Reform Commission Contact: Chen Xu Title: Deputy Director Telephone No.: (86-20) 8313-3057 Email: [email protected] Responsible Agency: Hunan Provincial Development and Reform Commission Contact: Xiao Xuewen Title: Director Telephone No.: 0731-89990817 Email: [email protected] Responsible Agency: Gansu Provincial Development and Reform Commission Contact: Wang Zhiming Title: Director Telephone No.: 13919085892 Email: [email protected] . Project Implementation Period: Start Date: 01-Jul-2012 End Date: 30-Jun-2017 Expected Effectiveness Date: 15-Nov-2012 Expected Closing Date: 31-Dec-2017 . Project Financing Data(US$M) [ X ] Loan [ ] Grant [ ] Other [ ] Credit [ ] Guarantee For Loans/Credits/Others Total Project Cost (US$M): 296.64 Total Bank Financing (US$M): 150.00 . Financing Source Amount(US$M) Borrower 146.64 International Bank for Reconstruction and Development 150.00 Total 296.64 . Expected Total Disbursements (in USD Million) Fiscal Year 2013 2014 2015 2016 2017 2018 Annual 5.00 25.00 40.00 35.00 30.00 15.00 Cumulative 5.00 30.00 70.00 105.00 135.00 150.00 . Project Development Objective(s) The Project Development Objective is to improve public infrastructure and services to contribute to sound development of the selected small towns in
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