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Fujian Solid Conservation and Rural Development Project

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Fujian Solid Conservation and Rural Development Project ASIAN DEVELOPMENT BANK PCR:PRC 26004 PROJECT COMPLETION REPORT ON THE FUJIAN SOIL CONSERVATION AND RURAL DEVELOPMENT PROJECT (Loan 1386-PRC) IN THE PEOPLE’S REPUBLIC OF CHINA September 2003 CURRENCY EQUIVALENTS Currency Unit – yuan (CNY) At Appraisal At Project Completion (25 August 1995) (30 June 2002) CNY1.00 = $0.1202 $0.1208 $1.00 = CNY8.3148 CNY8.2771 ABBREVIATIONS ADB – Asian Development Bank CPMO – county project management office EIRR – economic internal rate of return FAC – Fujian Agriculture Commission FIRR – financial internal rate of return FSWCC – Fujian Soil and Water Conservation Center GIS – geographic information system O&M – operation and maintenance PFB – provincial financial bureau PGF – Provincial Government of Fujian PMO – project management office PPMO – provincial project management office PRC – People’s Republic of China REC – rural economic cooperative SCF – standard conversion factor TA – technical assistance WACC – weighted average cost of capital WEIGHTS AND MEASURES ha – hectare kW – kilowatt kWh – kilowatt-hour MW – megawatt NOTES (i) The fiscal year (FY) of the Government ends on 31 December. (ii) In this report, "$" refers to US dollars. CONTENTS Page BASIC DATA ii I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 1 A. Relevance of Design and Formulation 1 B. Project Outputs 2 C. Project Costs and Financing 4 D. Disbursements 4 E. Project Schedule 5 F. Implementation Arrangements 5 G. Conditions and Covenants 6 H. Related Technical Assistance 7 I. Consultant Recruitment and Procurement 7 J. Performance of Consultants, Contractors, and Suppliers 7 K. Performance of the Borrower and the Executing Agency 7 L. Performance of the Asian Development Bank 8 III. EVALUATION OF PERFORMANCE 8 A. Relevance of Design to Project Performance 8 B. Efficacy in Achievement of Purpose 9 C. Efficiency in Achievement of Outputs and Purpose 9 D. Preliminary Assessment of Sustainability 9 E. Evaluation of Social, Environmental, and Institutional Development Impact 11 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 13 A. Overall Assessment 13 B. Lessons Learned 14 C. Recommendations 15 APPENDIXES 1. Project Components by Location 17 2. Summary of Major Project Features 18 3. Comparison of Estimated and Actual Project Costs 19 4. Status of Loan Utilization 20 5. Project Implementation Schedule 22 6. Project Organization Chart and Fund Flow 23 7. Compliance With Loan Covenants 24 8. Technical Assistance Completion Report for TA 2407-PRC 28 9. Technical Assistance Completion Report for TA 2408-PRC 30 10. Procurement Details for Civil Works and Equipment Contract Packages 32 11. Project Framework 36 12. Financial and Economic Analyses 40 13. Financial Management and Performance 50 14. Soil Conservation and Environmental Impact 60 15. Computation of Project Rating 63 ii BASIC DATA A. Loan Identification 1. Country People’s Republic of China 2. Loan Number 1386-PRC 3. Project Title Fujian Soil and Water Conservation and Rural Development 4. Borrower People’s Republic of China 5. Executing Agency Provincial Government of Fujian 6. Amount of Loan $65,000,000 7. Project Completion Report Number PCR:PRC 767 B. Loan Data 1. Appraisal – Date Started 16 June 1995 – Date Completed 9 July 1995 2. Loan Negotiations – Date Started 22 August 1995 – Date Completed 23 August 1995 3. Date of Board Approval 28 September 1995 4. Date of Loan Agreement 13 November 1995 5. Date of Loan Effectiveness – In Loan Agreement 14 January 1996 – Actual 16 February 1996 – Number of Extensions None 6. Closing Date – In Loan Agreement 30 June 2002 – Actual 30 June 2002 – Number of Extensions None 7. Terms of Loan – Interest Rate Variable – Maturity (number of years) 25 years – Grace Period (number of years) 6 years 8. Terms of Relending – Interest Rate Variable – Maturity (number of years) 25 years – Grace Period (number of years) 6 years Second-step Borrower Provincial Government of Fujian – Interest Rate 0.5 – 2.0% spread on Asian Development Bank loan borrowing costs – Maturity (number of years) 6 – 25 years – Grace Period (number of years) 2 – 6 years Third-step Borrower County governments and non- government enterprises iii Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 21 May 1996 9 May 2002 72 months Effective Date Original Closing Date Time Interval 16 February 1996 30 June 2002 76 months b. Amount ($’000) Category Original Last Revised Amount Undisbursed Allocation Allocation Disbursed Balance 01 Civil Works A – Soil Conservation and Agricultural 3,358 4,831 4,718 113 Development B – Construction of Soil and Water 381 911 663 248 Conservation Center C – Aquaculture: Fish Pond Gates, 152 194 213 (19) Hoists, Bridges, and Concrete Tanks D – Aquaculture: Other Civil Works 1,223 1,523 1,239 284 E – Agriculture Market Development 4,007 5,011 2,845 2,166 F – Agroprocessing Development 973 1,603 1,536 67 G – Small Hydropower Development 3,687 3,854 3,790 64 02 Equipment A – Soil Conservation and Agricultural 3,696 5,438 5,664 (226) Development/Project Management Office: Equipment and Vehicles B – Soil and Water Conservation 94 94 0 94 Center: Furniture C – Aquaculture: Engines for Boats 579 457 457 0 D – Aquaculture: Generators, Pumps, 543 357 357 0 and Electric Equipment including Power Cable E – Aquaculture: Fishery Equipment 2,803 2,853 2,818 35 F – Agriculture Market Development 4,230 4,230 2,835 1,395 G – Agroprocessing Development 7,277 5,471 5,415 56 H – Small Hydropower Development 3,697 3,303 3,302 1 03 Materials A – Soil Conservation and Agriculture 2,799 3,573 3,366 207 Development: Seeds and Seedlings B – Soil Conservation and Agriculture 8,128 6,857 6,857 0 Development: Fertilizer and Pesticides C – Soil Conservation and Agriculture 0 360 361 ( 1) Development: Grass Seeds 04 Interest During Construction (IDC) 14,503 14,080 13,911 169 05 Unallocated 2,870 TOTAL 65,000 65,000 60,347 4,653 iv 9. Local Costs (Financed) – Amount ($ million) : $4.71 – Percent of Local Costs : 4.5% – Percent of Total Cost : 3.0% C. Project Data 1. Project Cost ($ million) Appraisal Estimate Actual Cost Amount % Amount % Foreign Exchange Cost 60.0 37 55.6 35 Local Cost 103.0 63 103.8 65 Total 163.0 100 159.4 100 2. Financing Plan ($ million) Appraisal Actual Cost Foreign Local Total % Foreign Local Total % Implementation Costs Borrower-Financed 0.0 94.0 94.0 65 0.0 99.1 99.1 68 ADB-Financed 45.5 5.0 50.5 35 41.7 4.7 46.4 32 Subtotal 45.5 99.0 144.5 100 41.7 103.8 145.5 100 IDC Costs Borrower-Financed 0.0 4.0 4.0 22 0.0 0.0 0.0 0 ADB-Financed 14.5 0.0 14.5 78 13.9 0.0 13.9 100 Subtotal 14.5 4.0 18.5 100 13.9 0.0 13.9 100 Total 60.0 103.0 163.0 55.6 103.8 159.4 % 37 63 100 35 65 100 ADB = Asian Development Bank, IDC = interest during construction. 3. Cost Breakdown by Project Component ($ million) Appraisal Estimate Actual Component Foreign Local Total Foreign Local Total Exchange Currency Exchange Currency 1. Soil Conservation and 12.1 39.7 51.8 15.9 59.3 75.2 Agricultural Development 2. Aquaculture 5.1 16.3 21.4 5.1 10.8 15.8 Development 3. Agricultural Market 7.6 11.3 18.9 6.0 13.1 19.2 Development 4. Agroprocessing 8.3 13.3 21.6 7.0 8.8 15.8 Development 5. Small Hydropower 6.9 5.8 12.7 7.2 9.0 16.2 Schemes Development 6. Project Management 0.7 3.7 4.4 0.5 2.8 3.3 7. Contingencies 4.8 8.9 13.7 8. IDC Costs 14.5 4.0 18.5 13.9 13.9 Total 60.0 103.0 163.0 55.6 103.8 159.4 IDC = interest during construction. v 4. Project Schedule Appraisal Estimate Actual Project Milestone Start Completion Start Completion A. Soil Conservation and Agricultural Development 1. Site Planning Oct 1995 Dec 1996 Oct 1995 Jun 1997 2. Nursery Expansion Nov 1995 Dec 1997 Nov 1995 Dec 1996 3. Nursery Inspection Scheme Dec 1995 May 1999 Dec 1995 May 1999 4. Orchard Establishment and Mar 1996 Jun 1999 Jan 1996 Sep 1999 Rehabilitation 5. Protection Forest and Windbreak Jul 1996 Jun 1999 Mar 1996 May 1997 Establishment 6. Maintenance of Orchard and Forest Jul 1996 Continuous Jul 1996 Continuous 7. Extension, Training, and Research - Establishment of FSWCC Jan 1996 Mar 1997 Jan 1997 Jun 2001 - Farmers’ Training Nov 1995 Dec 2000 Nov 1995 May 2001 - Field Research Jul 1996 Jun 2001 B. Aquaculture Development 1. Beneficiary Training Nov 1995 Apr 1999 Nov 1995 Apr 1999 2. Aquaculture Development Feb 1996 Aug 2001 Feb 1996 May 1999 C. Agriculture Market Development 1. Engineering Design of Fuzhou Market Sep 1995 Feb 1996 Jan 1997 Jun 1997 2. Construction of Fuzhou Market Jun 1996 Apr 1997 3. Construction of Other Markets Jun 1997 Apr 1999 Aug 1996 Feb 2000 D. Agroprocessing Development 1. Setting up of Appraisal Committee Nov 1995 Mar 1996 Nov 1995 Mar 1996 2. Appraisal and Asian Development Feb 1996 Jul 1999 Feb 1996 Jul 1999 Bank Approval of Proposals 3. Setting up of Special Account Jan 1996 Jan 1996 Jan 1996 Jan 1996 4. Construction of Processing Units Apr 1996 Mar 2001 Apr 1996 Mar 2001 E. Small Hydropower Schemes Development 1. Site Surveys and Investigations Feb 1996 Dec 1997 Feb 1996 Dec 1997 2. Detailed Engineering Design Apr 1996 Dec 1997 Apr 1996 Dec 1997 3. Construction Aug 1996 Sep 1999 Aug 1996 Dec 1999 FSWCC = Fujian Soil and Water Conservation Center.
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