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Huai River Basin Flood Management and Drainage Improvement Project

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Huai River Basin Flood Management and Drainage Improvement Project Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 45437-CN PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN Public Disclosure Authorized IN THE AMOUNT OF US$200 MILLION TO THE PEOPLE’S REPUBLIC OF CHINA FOR A HUAI RIVER BASIN FLOOD MANAGEMENT AND DRAINAGE IMPROVEMENT PROJECT Public Disclosure Authorized May 26, 2010 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 February 2010) Currency Unit = Renminbi (RMB) Yuan (Y) Y1.0 = US$0.15 US$1.0 = Y6.827 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS AEP Accelerated Emergency Program CNAO China National Audit Office CPCO Central Project Coordination Office CPLG Central Project Leading Group CPMO Central Project Management Office CPS Country Partnership Strategy DSR Dam Safety Report DUC Dam under Construction EG Expert Group EIA Environmental Impact Assessment EMP Environmental Management Plan FB Finance Bureau FDASS Flood Disaster Assessment and Support System FDIA Farmer Drainage and Irrigation Association HRBC Huai River Basin Commission MWR Ministry of Water Resources NDRC National Development and Reform Commission MIS Management Information System MOF Ministry of Finance O&M Operation and Maintenance PAP Project Affected People PAO Provincial Audit Office PDRC Provincial Development and Reform Commission PFB Provincial Finance Bureau PLG Project Leading Group PIU Project Implementation Unit POE Panel of Expert PPMO Provincial Project Management Office PWRB Provincial Water Resources Bureau RAP Resettlement Action Plan RO Resettlement Office SOCAD State Office for Comprehensive Agricultural Development Vice President: James W. Adams, EAPVP Country Director: Klaus Rohland, EACCF Sector Director: John Roome Sector Managers: Ede Jorge Ijjasz-Vasquez, EASCS Vijay Jagannathan, EASIN Task Team Leader: Liping Jiang, EASCS CHINA Huai River Basin Flood Management and Drainage Improvement 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 II. PROJECT DESCRIPTION ............................................................................................. 3 A. Lending Instrument, Financing Arrangements and Other Approaches ......................... 3 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 ....................................................... 6 III. IMPLEMENTATION .................................................................................................. 6 A. Partnership Arrangements .............................................................................................. 6 B. Institutional and Implementation Arrangements ........................................................... 7 C. Monitoring and Evaluation of Outcomes/Results ........................................................... 8 D. Sustainability and Replicability ..................................................................................... 8 E. Critical Risks and Possible Controversial Aspects ......................................................... 9 F. Loan/Credit Conditions and Covenants ........................................................................ 10 IV. APPRAISAL SUMMARY ......................................................................................... 10 A. Economic and Financial Analyses ................................................................................ 10 B. Technical ....................................................................................................................... 12 C. Fiduciary ....................................................................................................................... 12 D. Social............................................................................................................................. 13 E. Environment .................................................................................................................. 13 F. Safeguard Policies ......................................................................................................... 14 G. Policy Exceptions and Readiness.................................................................................. 15 Annex 1: Country and Sector or Program Background ..................................................... 17 Annex 2: Major Related Projects Financed by the Bank and/or Other Agencies ............ 20 Annex 3: Results Framework and Monitoring .................................................................... 21 Annex 4: Detailed Project Description .................................................................................. 27 Annex 5: Project Costs ........................................................................................................... 37 Annex 6: Implementation Arrangements ............................................................................. 40 Annex 7: Financial Management and Disbursement Arrangements ................................. 46 Annex 8: Procurement ............................................................................................................ 55 Annex 9: Economic and Financial Analysis ......................................................................... 60 Annex 10: Safeguard Policy Issues ........................................................................................ 67 Annex 11: Project Processing ................................................................................................ 80 Annex 12: Documents in the Project File ............................................................................. 81 Annex 13: Statement of Loans and Credits .......................................................................... 82 Annex 14: Country at a Glance ............................................................................................. 86 Annex 15: Maps ...................................................................................................................... 89 IBRD_37718_River Systems in the Huai River Basin IBRD_37713_Geographic Position of the Project Areas in the Huai River Basin IBRD_37714_Geographic Position of Project Areas in Henan Province IBRD_37715_Geographic Position of Project Areas in Anhui Province IBRD_37716_Geographic Position of Project Areas in Jiangsu Province IBRD_37717_Geographic Position of Project Areas in Shandong Province PEOPLE’S REPUBLIC OF CHINA Huai River Basin Flood Management and Drainage Improvement Project PROJECT APPRAISAL DOCUMENT East Asia and Pacific Region EASCS Date: May 26, 2010 Team Leader: Liping Jiang Country Director: Klaus Rohland Sectors: Flood Protection (70%), Irrigation Sector Director: John Roome and Drainage (30%) Sector Managers: Ede Jorge Ijjasz-Vasquez & Themes: Water resource management (P), Vijay Jagannathan Rural services and infrastructure (S) Project ID: P098078 Environmental screening category: A Lending instrument, financing arrangements and other approaches: Specific Investment Loan Project Financing Data [X] Loan [ ] Credit [ ] Grant [ ] Guarantee [ ] Other: For Loans/Credits/Others: Total Bank financing (US$m.): 200.00 Proposed terms: U.S. Dollar denominated, commitment-linked, variable spread loan, whose interest rate is based on six-month LIBOR plus an additional variable spread, level repayments, and a 25 year term, inclusive of an 8-year grace period, and front-end fee 0.25% of the loan amount. Financing Plan (US$m) Source Local Foreign Total Borrower 397.41 0.00 397.41 IBRD/IDA 173.61 26.39 200.00 Total 571.02 26.39 597.41 Borrower: Ms. Wang Wei, Director IF Division I Ministry of Finance, People's Republic of China San Li He, Beijing, China; 100820 Tel: +86 10 68551174; Fax: +86 10 68551125 Email: [email protected] Responsible Agency: Mr. Liu Yunian, Deputy Director General Huai River Basin Commission (HRBC) Of Ministry of Water Resources (MWR) Bengbu 233001, Anhui Province, China Tel. 86-552-3093702; Fax: 86-552-3093708; E-mail: [email protected] Water Resources Departments Of Jiangsu, Shandong, Henan and Anhui Provinces Estimated disbursements (Bank FY/US$m) FY 2011 2012 2013 2014 2015 2016 Annual 30 40 50 40 20 20 Cumulative 30 70 120 160 180 200 Project implementation period: Start: September 30, 2010; End: September 30, 2016 Expected effectiveness date: September 30, 2010 Expected closing date: December 31, 2016 Does the Project depart from the CPS in content or other significant [ ] Yes [X] No respects? (Ref. PAD I. C.) Does the Project require any exceptions from Bank policies? (Ref. PAD [X]
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