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Document of The World Bank Public Disclosure Authorized Report No: 29173 IMPLEMENTATION COMPLETION REPORT (SCL-42000 SCL-42001) ON A Public Disclosure Authorized LOAN IN THE AMOUNT OF US$430 MILLION EQUIVALENT TO THE PEOPLE'S REPUBLIC OF CHINA FOR THE XIAOLANGDI MULTIPURPOSE PROJECT: STAGE II Public Disclosure Authorized June 28, 2004 Public Disclosure Authorized Rural Development and Natural Resources Sector Unit East Asia and Pacific Region CURRENCY EQUIVALENTS (Exchange Rate Effective January 2004) Currency Unit = Yuan (Y) Yuan 1.00 = US$ 0.12107 US$ 1.00 = Y 8.26 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS AS - Antiepidemic Station BCM - Billion Cubic Meters CAS - Country Assistance Strategy CCPN - Central China Power Network CPLG - Central Project Leading Group CUM - Cubic Meter CUMEC - Cubic Meter per Second DRB - Disputes Review Board DSP - Dam Safety Panel EIA - Environmental Impact Assessment EMO - Environmental Management Office EMP - Environmental Management Plan EPMs - Environmental Protection Measures EPP - Emergency Preparedness Plan GOC - Government of China GWh - Gigawatt hours ICB - International Competitive Bidding IDA - International Development Association LRM - Lower Reach Model MCM - Million Cubic Meters MWR - Ministry of Water Resources NCB - National Competitive Bidding NCPN - North China Power Network NCHEI - North China Hydroelectric Institute PAB - Provincial Audit Bureau PAD - Project Appraisal Document POE - The International Panel of Experts on Environment and Resettlement PRO - Provincial Resettlement Office QAG - Quality Assurance Group RPDI - Reconnaissance Planning and Design Institute SAA - State Audit Administration SBD - Standard Bidding Document SEPA - State Environment Protection Administration SOE - Statement of Expenditures WRPI - Water Resources Protection Institute XECC - Xiaolangdi Engineering Consulting Company XLD - Xiaolangdi Project YRCC - Yellow River Conservancy Commission YRCCRO - Yellow River Conservancy Commission Resettlement Office YRCHU - Yellow River Central Hospital Unit YRWHDC - Yellow River Water and Hydropower Development Corporation YRWHIDCRO - YRWHDC Resettlement Office Vice President: Jemal-ud-din Kasum Country Director: Yukon Huang Sector Director: Mark D. Wilson Task Team Leader: Xiaokai Li CHINA XIAOLANGDI MULTIPURPOSE PROJECT: STAGE II CONTENTS Page No. 1. Project Data 1 2. Principal Performance Ratings 1 3. Assessment of Development Objective and Design, and of Quality at Entry 2 4. Achievement of Objective and Outputs 5 5. Major Factors Affecting Implementation and Outcome 20 6. Sustainability 23 7. Bank and Borrower Performance 25 8. Lessons Learned 26 9. Partner Comments 28 10. Additional Information 38 Annex 1. Key Performance Indicators/Log Frame Matrix 45 Annex 2. Project Costs and Financing 47 Annex 3. Economic Costs and Benefits 49 Annex 4. Bank Inputs 51 Annex 5. Ratings for Achievement of Objectives/Outputs of Components 53 Annex 6. Ratings of Bank and Borrower Performance 54 Annex 7. List of Supporting Documents 55 Annex 8 . Compliance with Loan Covenants 58 Annex 9 . Operation and Maintenance Plan and Emergency Preparedness Plan Summary 59 Annex 10. Loan Allocation and Disbursements 64 Project ID: P034081 Project Name: CN - XIAOLANGDI MULTI. II Team Leader: Xiaokai Li TL Unit: SASRD ICR Type: Core ICR Report Date: June 28, 2004 1. Project Data Name: CN - XIAOLANGDI MULTI. II L/C/TF Number: SCL-42000; SCL-42001 Country/Department: CHINA Region: East Asia and Pacific Region Sector/subsector: Power (98%); Central government administration (2%) Theme: Other urban development (P); Rural services and infrastructure (P); Water resource management (P) KEY DATES Original Revised/Actual PCD: 02/28/1997 Effective: 10/31/1997 01/12/1998 Appraisal: 02/28/1997 MTR: 07/31/1999 06/11/2002 Approval: 06/24/1997 Closing: 12/31/2003 12/31/2003 Borrower/Implementing Agency: PRC/YELLOW RIVER COMM. Other Partners: STAFF Current At Appraisal Vice President: Jemal-ud-din Kassum Jean-Michel Severino Country Director: Yukon Huang Yukon Huang Sector Director: Mark D. Wilson Geoffrey Fox Team Leader at ICR: Xiaokai Li Daniel Gunaratnam ICR Primary Author: Daniel Gunaratnam 2. Principal Performance Ratings (HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HL=Highly Likely, L=Likely, UN=Unlikely, HUN=Highly Unlikely, HU=Highly Unsatisfactory, H=High, SU=Substantial, M=Modest, N=Negligible) Outcome: HS Sustainability: HL Institutional Development Impact: SU Bank Performance: S Borrower Performance: HS QAG (if available) ICR Quality at Entry: HS HS Project at Risk at Any Time: No 3. Assessment of Development Objective and Design, and of Quality at Entry 3.1 Original Objective: The objectives of the project were: A. to provide flood protection for 103 million people in the North China Plain in rural areas, B. to control sediment accretion in the lower reach of the Yellow River for a period of about 20 years; C. supply water to several large and medium cities and major industrial centers, cities and industries; D. to supply irrigation water (and increase the reliability of irrigation) for some 2 million hectares and ensure more stable water supplies for downstream and E. to generate much needed hydropower to meet the peak power requirements in the Henan Grid. 3.2 Revised Objective: The above objectives remained relevant through out the entire project. 3.3 Original Components: The total Xiaolangdi multipurpose investment was supported by the Bank in two project stages. This report is concerned with the second stage project. (Stage I Project 12329-CHA). In considering the implementation completion of this stage II project, it is logical to consider as appropriate, both stages together, because the civil works and all other major contracts continued and were financed across both stages. Therefore, the objectives for both stages remained primarily the same. Project Component 1—Dam and Appurtenant Structures and Hydropower Plant, including hydropower plant (turbine and generators), administration, engineering and consultants. The main features of this component were: l construction of Xiaolangdi rock-fill dam, 154 m high, with a crest length of 1,370 m; l construction of a common intake structure, feeding nine large diameter tunnels and surface spillway for river diversion, flood handling and sediment management, discharging into a common plunge pool; and l construction of a power station with six associated power tunnels with turbine and generators with an installed capacity of 1,800 MW (6 x 300 MW) and associated switchyards, and transformers. This component contained the major investment under the project and supported all five project objectives (A-E) above. This component was completed well ahead of schedule and the quality of construction was excellent and is therefore rated highly satisfactory Project Component 2—Training for Operation. The main emphasis of this component was to complete the training on construction management commenced under the previous stage 1 project and proceeded more intensified training for the post construction, management and operation skills required by YRWHDC. The main objectives of this component were: l to enable YRWHDC to function as a autonomous body in the efficient development and operation of water and hydropower projects, and be capable of exploiting opportunities expected to arise from the current wave of enterprise reform in China; and l to staff YRWHDC with appropriately skilled personnel, capable of handling the planning, general management, and financial management in order to run YRWHDC as a proper business enterprise. This component supported component 1 and contributed heavily to the sustainability of the project. This component was fully completed ahead of schedule and has therefore been rated highly satisfactory. Project Component 3—Environmental Management Plan Implementation. A salient feature of the environment protection program in the stage 1 project was the implementation of an Environment Management Plan. The Plan included the setting up of an Environmental Management Office (EMO) - 2 - which, had the lead and coordinating responsibility for implementing all needed environmental protection measures including: l Management of continuing periodic monitoring for assessing the actual impact of the project; l Planning and implementation of the needed correction measures identified through the monitoring program; l Preparation of routine periodic reports (and special reports, when needed) for distribution to concerned Government agencies and to the Bank; and l Long-term monitoring of the downstream river hydrology and sediment flows and deposition. The stage II project continued the detailed monitoring through the EMO to ensure the environmental management plan was implemented. There were five new areas of monitoring introduced: l Construction Site Monitoring. l Public Health. l Seismic Monitoring l Downstream catchment hydrology, sedimentation , etc l Special Studies and monitoring This component supported project sustainability, addressed one of the Bank's key safeguards areas and added to the overall quality of completed works under component 1. It was completed ahead of schedule and was very thoroughly performed and is being adopted as a model for other projects and is rated highly satisfactory Project Component 4—Flood and Sediment Forecasting and Water Dispatching System. The objective of this component was to upgrade the old flood management system to a modern integrated MIS for flood, drought,
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