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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 42 124-CN PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN Public Disclosure Authorized IN THE AMOUNT OF US$lOO MILLION TO THE PEOPLE’S REPUBLIC OF CHINA FOR A JIANGXI SHIHUTANG NAVIGATION AND HYDROPOWER COMPLEX PROJECT Public Disclosure Authorized August 14,2008 China and Mongolia Sustainable Development Unit Sustainable Development Department East Asia and Pacific Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective January 28,2008) CurrencyUnit = RMB RMB1 = US$O.1389 US$1 = RMB7.2 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS cccc China Communications Construction Company CDM Clean Development Mechanism CFU Carbon Finance Unit CGC China Guodian Corporation CPS Country Partnership Strategy CQS Selection Based on Consultants’ Qualifications DA Designated Account DP Displaced Person DSP Dam Safety Panel DWTIdwt Deadweight Tons EA Environmental Assessment EIA Environmental Impact Assessment EIRR Economic Internal Rate of Return EMP Environment Management Plan ENPV Economic Net Present Value EPP Emergency Preparedness Plan FM Financial Management FMS Financial Management Specialist FS Feasibility Study FSL Fixed Spread Loan FSR Feasibility Study Report FYP Five-Year Plan GDP Gross Domestic Product GOC Government of China ICB International Competitive Bidding IWT Inland Waterway Transport JANA Jiangxi Administration ofNavigation Affairs JPAO Jiangxi Provincial Audit Office JPCD Jiangxi Provincial Communications Department JPDRC Jiangxi Provincial Development and Reform Commission JPFD Jiangxi Provincial Finance Department JPMO Project Management Office for the Construction of Shihutang Navigation and Hydropower Complex JP WRD Jiangxi Provincial Water Resources Department FOR OFFICIAL USE ONLY LIBOR London InterBank Offered Rate MOT Ministry of Transport MOF Ministry of Finance MRLDC Mountain-River-Lake Development Commission MRLDO Mountain-River-Lake Development Office MRLDP Mountain-River-Lake Development Program Mtce Million tons of coal equivalent NBF Non-Bank Financed NCB National Competitive Bidding NDRC National Development and Reform Commission PDO Project Development Objective PMPO The Provincial Major Projects Office PRC People’s Republic of China QBS Quality-Based Selection QCBS Quality- and Cost-Based Selection RAP Resettlement Action Plan SBD Standard Bidding Documents SEPA State Environmental Protection Administration SOE Statements of Expenditure sss Single Source Selection TEU Twenty-Foot Equivalent Units VSL Variable Spread Loan Vice President: James W. Adams, EAPVP Country Director: David Dollar, EACCF Sector Manager: Ede Jorge Ijjasz-Vasquez, EASCS Task Team Leader: Wenlai Zhang, EASCS This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. CHINA Jiangxi Shihutang Navigation and Hydropower Complex Project CONTENTS Page I. STRATEGIC CONTEXT AND RATIONALE .................................................................. 1 A . Country and sector issues ................................................................................................................................ 1 B . Rationale for Bank involvement ..................................................................................................................... 2 C. Higher level objectives to which the Project contributes ................................................................................ 2 I1. PROJECT DESCRIPTION.................................. ,........................................................... 2 A . Lending instrument ......................................................................................................................................... 2 B . Project development objective and key indicators .......................................................................................... 3 C. Project components ......................................................................................................................................... 3 D. Lessons learned and reflected in the project design ........................................................................................ 4 E . Alternatives considered and reasons for rejection........................................................................................... 5 I11. IMPLEMENTATION ......, ................................................................................................ 5 A . Institutional and implementation arrangements .............................................................................................. 5 B. Monitoring and evaluation of outcomes/results .............................................................................................. 6 C. Sustainability................................................................................................................................................... 7 D. Critical risks and possible controversial aspects ............................................................................................. 7 E. Loadcredit conditions and covenants ............................................................................................................. 9 IV. APPRAISAL SUMMARY .............................................................................................. 10 A . Economic and financial analyses .................................................................................................................. 10 B. Technical ....................................................................................................................................................... 10 C. Fiduciary ....................................................................................................................................................... 11 D. Social ............................................................................................................................................................. 12 E. Environment.................................................................................................................................................. 12 F. Safety of Dams .............................................................................................................................................. 13 G . Safeguard policies ......................................................................................................................................... 13 H. Policy Exceptions and Readiness .................................................................................................................. 14 Annex 1: Country and Sector or Program Background.......................................................... 15 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies .................. 21 Annex 3: Results Framework and Monitoring......................................................................... 22 Annex 4: Detailed Project Description ...................................................................................... 25 Annex 5: Project Costs ................................................................................................................ 31 Annex 6: Implementation Arrangements .................................................................................. 32 Annex 7: Financial Management and Disbursement Arrangements ..................................... 35 Annex 8: Procurement Arrangements ....................................................................................... 41 Annex 9: Economic and Financial Analysis .............................................................................. 47 Annex 10: Safeguard Policy Issues ............................................................................................. 61 Annex 11: Project Preparation and Supervision ...................................................................... 74 Annex 12: Documents in the Project File .................................................................................. 76 Annex 13: Statement of Loans and Credits............................................................................... 78 Annex 14: Country at a Glance .................................................................................................. 82 Annex 15: Maps IBRD No. 35283, 35284R, 35285R, 35286R, 36005 ...................................... 84 CHINA JIANGXI SHIHUTANG NAVIGATION AND HYDROPOWER COMPLEX PROJECT PROJECT APPRAISAL DOCUMENT EAST ASIA AND PACIFIC EASCS Date: August 14,2008 Team Leader: Wenlai Zhang Country Director: David R. Dollar Sectors: Ports, waterways and shipping (60%); Sector ManagedDirector: Power (40%) Ede Jorge Ijjasz-Vasquez Themes: Infrastructure services for private sector development (P); Other rural Project ID: P101988 development (P); Water resource management (S); Administrative and civil service reform (S) Lending Instrument: Specific Investment Loan Environmental screening category: Full Assessment Project Financing Data [XI Loan [ ] Credit [ ] Grant [ ] Guarantee [ ] Other: For Loans/Credits/Others: Total Bank financing (USsm.): 100.00 Proposed terms: The loan is payable in
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