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Hebei Province Wastewater Management Project

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Hebei Province Wastewater Management Project Completion Report Project Number: 32327 Loan Number: 1985-PRC November 2010 People’s Republic of China: Hebei Province Wastewater Management Project CURRENCY EQUIVALENTS Currency Unit – yuan (CNY) At Appraisal At Project Completion (31 July 2002) (30 June 2009) CNY1.00 = $0.121 $ 0.146 $1.00 = CNY8.28 CNY6.83 ABBREVIATIONS ADB – Asian Development Bank EIA – environmental impact assessment EIRR – economic internal rate of return FIRR – financial internal rate of return HPG – Hebei Provincial Government HPMO – Hebei Project Management Office HRB – Hai River Basin HRPPCP – Hai River Pollution Prevention and Control Plan ICB – international competitive bidding IPCP – industrial pollution control plan LIBOR – London interbank offered rate NCB – national competitive bidding MIS – management information system MOF – Ministry of Finance MSC – municipal sewerage company O&M – operation and maintenance PIA – project implementation agency PMO – project management office PPMS – project performance management system PPTA – project preparatory technical assistance PRC – People’s Republic of China TA – technical assistance US – United States WACC – weighted average cost of capital WWTP – wastewater treatment plant WEIGHTS AND MEASURES km – kilometer km2 – square kilometer m3 – cubic meter m3/day – cubic meter per day m3/s – cubic meter per second mg/L – milligram per liter mm – millimeter mu – Chinese unit of area equivalent to 667 m2 NOTE In this report, "$" refers to US dollars. Vice-President C. Lawrence Greenwood Jr., Operations 2 Director General K. Gerhaeusser, East Asia Department (EARD) Country Director P. Heytens, PRC Resident Mission, EARD Team leader J. Wang, Project Officer, PRC Resident Mission, EARD Team members X. Li, Project Administrative Assistant, PRC Resident Mission, EARD M. Gan, Assistant Project Analyst, PRC Resident Mission, EARD Y. Song, Resettlement Officer, PRC Resident Mission, EARD X. Yang, Assistant Project Analyst, PRC Resident Mission, EARD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CONTENTS Page BASIC DATA ii MAP viii I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 2 A. Relevance of Design and Formulation 2 B. Project Outputs 3 C. Project Costs 4 D. Disbursements 4 E. Project Schedule 5 F. Implementation Arrangements 5 G. Conditions and Covenants 6 H. Consultant Recruitment and Procurement 7 I. Performance of Consultants, Contractors, and Suppliers 7 J. Performance of the Borrower and the Executing Agency 7 K. Performance of the Asian Development Bank 7 III. EVALUATION OF PERFORMANCE 8 A. Relevance 8 B. Effectiveness in Achieving Outcome 8 C. Efficiency in Achieving Outcome and Outputs 9 D. Preliminary Assessment of Sustainability 10 E. Impact 10 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 12 A. Overall Assessment 12 B. Lessons 13 C. Recommendations 13 APPENDIXES 1. Project Framework 16 2. Chronology of Major Events in the Project 21 3. Works at Appraisal and Actual Implementation 24 4. Project Costs 25 5. Financing Plan 27 6. Projected and Actual Contract Awards and Disbursements 28 7. Project Implementation Schedule at Appraisal and Implemention 30 8. Project Organization Chart 33 9. Procurement Plan at Appraisal and Implementation 34 10. Compliance with Loan Convenants 37 11. Financial Reevaluation 46 12. Economic Reevaluation 50 13. Environmental Impact Analysis 52 14. Evaluation of Land Acquisition and Resettlement Activities 56 15. Social Impacts and Poverty Reduction 64 SUPPLEMENTARY APPENDIXES A. Detailed Financial Projection 68 B. Detailed FIRR Calculations 83 C. Detailed EIRR Calculations 86 BASIC DATA A. Loan Identification 1. Country The People’s Republic of China 2. Loan Number 1985-PRC [OCR] 3. Project Title Hebei Province Wastewater Management Project 4. Borrower The People’s Republic of China 5. Executing Agency Hebei Provincial Government 6. Amount of Loan $82.36 million 7. Project Completion Report Number PCR: PRC 1184 B. Loan Data 1. Appraisal – Date Started 31 July 2002 – Date Completed 16 August 2002 2. Loan Negotiations – Date Started 18 November 2002 – Date Completed 22 November 2002 3. Date of Board Approval 19 December 2002 4. Date of Loan Agreement 27 June 2003 5. Date of Loan Effectiveness – In Loan Agreement 04 February 2004 – Actual 04 February 2004 – Number of Extensions 0 6. Closing Date – In Loan Agreement 30 June 2008 – Actual 18 November 2009 – Number of Extensions 1 7. Terms of Loan – Interest Rate London interbank offered rate (LIBOR) based – Maturity (number of years) 25 – Grace Period (number of years) 5 8. Terms of Relending (if any) – Interest Rate LIBOR – Maturity (number of years) 25 – Grace Period (number of years) 5 – Second-Step Borrower Hebei Provincial Government Baoding Municipal General Drainage Company Chengde Municipal Wastewater Treatment Company Limited Tangshan Municipal Wastewater Treatment Company Limited Zhangjiakou Municipal Hongze Drainage Company iii 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 4 February 2004 18 November 2009 69 months Effective Date Original Closing Date Time Interval 4 February 2004 30 June 2008 53 months b. Amount ($ million) Category Net Amount or Subloan Original Last Revised Amount Available Amount Undisbursed Allocation Allocation Canceled Disbursed Balance 01A 12.91 10.96 0.10 10.80 10.80 0.00 01B 5.46 5.85 (0.09) 5.94 5.94 0.00 01C 3.66 2.89 (0.69) 3.58 3.58 0.00 01D 4.55 3.46 0.01 3.46 3.46 0.00 01E 5.15 5.50 0.00 5.50 5.50 0.00 02A 12.76 12.67 0.64 12.02 12.02 0.00 02B 6.22 7.82 0.04 7.77 7.77 0.00 02C 5.80 7.71 0.03 7.67 7.67 0.00 02D 3.52 5.62 0.00 5.62 5.62 0.00 02E 5.68 7.77 0.00 7.77 7.77 0.00 03 4.29 3.47 0.43 3.04 3.04 0.00 04 0.82 0.82 0.00 0.82 0.82 0.00 05 3.87 7.87 0.00 7.87 7.87 0.00 06 7.67 0.00 0.00 0.00 0.00 0.00 Total 82.36 82.36 0.47a 81.89 81.89 0.00 a $0.47 was cancelled at loan closing. 10. Local Costs (Financed): None C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 82.36 81.89 Local Currency Cost 82.98 91.72 Total 165.34 173.61 iv 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Foreign Local Currency Total Foreign Local Total Exchange Cost Exchange Currency Cost Implementation Costs Borrower Financed 0.00 81.59 81.59 0.00 86.26 86.62 ADB Financed 77.66 0.00 77.66 73.19 0.00 73.19 Total 77.66 81.59 159.25 73.19 86.26 159.45 IDC Costs Borrower Financed 0.00 1.39 1.39 0.00 5.46 5.46 ADB Financed 4.70 0.00 4.70 8.70 0.00 8.70 Total 4.70 1.39 6.09 8.70 5.46 14.16 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 Cost Exchange Currency Cost Part A. Baoding 1 Land and resettlement 0.00 5.94 5.94 0.00 5.16 5.16 2 Civil works 12.91 15.15 28.06 10.80 14.16 24.97 3 Equipment 12.76 0.00 12.76 12.02 1.47 13.49 4 Consulting services 1.60 1.97 3.57 1.05 2.96 4.01 5 Incremental administration 0.00 0.30 0.30 0.00 0.63 0.63 6 Capacity building 0.00 0.51 0.51 0.00 0.00 0.00 Base cost 27.26 23.87 51.13 23.88 24.37 48.25 Contingencies 1.70 5.53 7.22 0.00 0.00 0.00 IDC and other charges 1.76 1.04 2.80 2.72 4.56 7.28 Subtotal (A) 30.72 30.44 61.15 26.60 28.93 55.53 Part B. Chengde 1 Land and resettlement 0.00 3.43 3.43 0.00 2.81 2.81 2 Civil works 5.46 6.41 11.87 5.94 6.47 12.41 3 Equipment 6.22 0.00 6.22 7.77 0.00 7.77 4 Consulting services 0.80 1.17 1.96 0.62 1.86 2.48 5 Incremental administration 0.00 0.13 0.13 0.00 1.51 1.51 6 Capacity building 0.00 1.10 1.10 0.00 0.56 0.56 Base cost 12.48 12.23 24.71 14.33 13.22 27.55 Contingencies 1.98 1.46 3.44 0.00 0.00 0.00 IDC and other charges 0.87 0.35 1.22 0.97 0.41 1.38 Subtotal (B) 15.33 14.05 29.38 15.30 13.63 28.93 Part C. Tangshan 1 Land and resettlement 0.00 1.76 1.76 0.00 1.61 1.61 2 Civil works 3.66 4.30 7.96 3.58 5.86 9.44 3 Equipment 5.80 0.00 5.80 7.67 0.41 8.08 4 Consulting services 0.62 0.94 1.56 0.51 0.00 0.51 5 Incremental administration 0.00 0.10 0.10 0.00 0.99 0.99 6 Capacity building 0.00 0.41 0.41 0.00 0.18 0.18 Base cost 10.09 7.50 17.59 11.77 9.04 20.81 Contingencies 1.14 1.46 2.59 0.00 0.00 0.00 IDC and other charges 0.68 0.00 0.68 0.77 0.00 0.77 Subtotal (C) 11.90 8.96 20.86 12.53 9.04 21.58 v Appraisal Estimate Actual Component Foreign Local Total Foreign Local Total Exchange Currency Cost Exchange Currency Cost Part D.
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