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Document of The World Bank Public Disclosure Authorized Report No: ICR1376 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-47280) ON A Public Disclosure Authorized LOAN IN THE AMOUNT OF US$91 MILLION TO THE PEOPLE‟S REPUBLIC OF CHINA FOR A FOURTH INLAND WATERWAYS PROJECT Public Disclosure Authorized December 28, 2011 Public Disclosure Authorized China and Mongolia Sustainable Development Unit Sustainable Development Department East Asia and Pacific Region CURRENCY EQUIVALENTS (Exchange Rate Effective April 1, 2011) Currency Unit = Renminbi RMB1.00 = US$0.15 US$ 1.00 = RMB 6.55 FISCAL YEAR January 1-December 31 ABBREVIATIONS AND ACRONYMS CPS Country Partnership Strategy dwt Deadweight ton (for vessels) EAP Environmental Action Plan EIA Environmental Impact Assessment EIRR Economic Internal Rate of Return FIRR Financial Internal Rate of Return GPTD Guangdong Provincial Transport Department (former Guangdong Provincial Communications Department) GOC Government of China GPWB Guangdong Provincial Waterway Bureau GXTD Guangxi Transport Department (former Guangxi Communications Department) GWh Gigawatt hour GXWCDC Guangxi Xijiang Waterways Construction & Development Co. ICB International Competitive Bidding ICR Implementation Completion and Results Report IWT Inland Water Transport KWh Kilowatt hour MIS Management Information System MOT Ministry of Transport (former Ministry of Communications) MOF Ministry of Finance NCB National Competitive Bidding NEPA National Environmental Protection Agency NPV Net Present Value OED Operations Evaluation Department PAD Project Appraisal Document PMO Project Management Office QCBS Quality and Cost Based Selection RAP Resettlement Action Plan RMB Renminbi SOE State-owned Enterprise TA Technical Assistance Vice President: James W. Adams, EAPVP Country Director: Klaus Rohland, EACCF Sector Manager: Paul Kriss, EASCS Project Team Leader: Wenlai Zhang, EASCS ICR Team Leader: Wenlai Zhang, EASCS CHINA FOURTH INLAND WATERWAYS PROJECT Implementation Completion and Results Report CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph 1. Project Context, Development Objectives and Design ............................................... 1 2. Key Factors Affecting Implementation and Outcomes .............................................. 6 3. Assessment of Outcomes ............................................................................................ 9 4. Assessment of Risk to Development Outcome ......................................................... 13 5. Assessment of Bank and Borrower Performance ..................................................... 13 6. Lessons Learned ....................................................................................................... 15 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners .......... 15 Annex 1. Project Costs and Financing .......................................................................... 17 Annex 2. Outputs by Component ................................................................................. 19 Annex 3. Economic and Financial Analysis ................................................................. 22 Annex 4. Bank Lending and Implementation Support/Supervision Processes ............ 26 Annex 5. Summary of Borrower's ICR and/or Comments ........................................... 28 Annex 6. List of Supporting Documents ...................................................................... 39 Maps: 1. IBRD 32887 2. IBRD 32888 3. IBRD 32889 4. IBRD 32890 A. Basic Information Fourth Inland Country: China Project Name: Waterways Project Project ID: P077137 L/C/TF Number(s): IBRD-47280 ICR Date: 12/28/2011 ICR Type: Core ICR PEOPLE'S REPUBLIC Lending Instrument: SIL Borrower: OF CHINA Original Total USD 91.0M Disbursed Amount: USD 90.55M Commitment: Revised Amount: USD 90.55M Environmental Category: A Implementing Agencies: Guangdong Provincial Transport Department (Former Guangdong Provincial Communications Department) Guangxi Transport Department (Former Guangxi Communications Department) Co-financiers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 10/30/2002 Effectiveness: 01/09/2005 01/09/2005 Appraisal: 08/27/2003 Restructuring(s): - - Approval: 03/25/2004 Mid-term Review: - - Closing: 01/31/2010 06/30/2011 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Development Outcome: Low Bank Performance: Moderately Satisfactory Borrower Performance: Moderately Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Satisfactory Government: Satisfactory Implementing Quality of Supervision: Moderately Satisfactory Moderately Satisfactory Agency/Agencies: Overall Bank Overall Borrower Moderately Satisfactory Moderately Satisfactory Performance: Performance: i C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Project Quality at Entry No None at any time (Yes/No): (QEA): Problem Project at any Quality of Supervision No None time (Yes/No): (QSA): DO rating before Satisfactory Closing/Inactive status: D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Ports, waterways and shipping 65 60 Power 10 15 Renewable energy 15 15 Sub-national government administration 10 10 Theme Code (as % of total Bank financing) Climate change 17 17 Infrastructure services for private sector development 33 33 Rural services and infrastructure 17 17 Water resource management 33 33 E. Bank Staff Positions At ICR At Approval Vice President: James W. Adams Jemal-ud-din-Kassum Country Director: Klaus Rohland Yukon Huang Sector Manager: Paul Kriss Jitendra Bajpai Project Team Leader: Wenlai Zhang Graham Smith ICR Team Leader: Wenlai Zhang ICR Primary Author: Kek Choo Chung F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The objective of the Project (as stated in the Loan Agreement) is to assist the Borrower in: (1) improving the market access for its southern region by upgrading navigation conditions on the region's major east-west river and other waterways feeding into the Zhujiang River Delta region; and ii (2) meeting the growing energy demand in Guangdong and Guangxi by harnessing water flow in two rivers in such region to generate environmentally clean electricity. Revised Project Development Objectives (as approved by original approving authority) Not Applicable. (a) PDO Indicator(s) Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years Indicator 1 : GX-Waterway traffic (thousand tons) - (i) Baise-Nanning Value quantitative or 814 2,180 - 2,395.9 Qualitative) Date achieved 12/31/2003 12/31/2009 12/31/2009 Comments Tonnage of cargo carried on project waterway almost trebled since the project was (incl. % launched, is about 110% of target. achievement) Indicator 2 : GD-Waterway traffic (thousand tons) - (ii) Shaoguan-Qingyuan Value quantitative or 4,900 7,180 - 5,760 Qualitative) Date achieved 12/31/2003 12/31/2009 12/31/2010 Comments Freight carried on the waterway was 80% of target, because the construction of the (incl. % new Qingyuan Complex reduced freight volume on the corridor. achievement) Indicator 3 : GD-Waterway traffic (thousand tons) - (iii) Laolonghu Waterway Value quantitative or 1,200 9,300 - 1,334 Qualitative) Date achieved 12/31/2003 12/31/2009 12/31/2010 Comments The target volume of freight could not be achieved due to the delay in completion of (incl. % the reconstruction of Lianyao and Longma Bridges. The existing old bridges had achievement) inadequate height clearance to allow the passage of 1,000 dwt vessels. Indicator 4 : GX-Average barge size (dwt) - (i) Baise-Nanning Value quantitative or 97 152 - 144.7 Qualitative) Date achieved 12/31/2003 12/31/2009 12/31/2009 Comments Average size of vessels using the project waterway is 95% of the target, but has (incl. % grown almost 50% since the project appraisal. achievement) Indicator 5 : GD-Average barge size (dwt) - (ii) Shaoguan-Qingyuan Value quantitative or 150 300 - 199 Qualitative) iii Date achieved 12/31/2003 12/31/2009 12/31/2010 Comments Average barge size using the waterway has grown by 33% since the project (incl. % appraisal, but is 66% of target. There is usually a lag for barge operators to replace achievement) old/small barges with larger ones after the waterway is improved. Indicator 6 : GD-Average barge size (dwt) - (iii) Laolonghu Waterway Value quantitative or 80 500 - 100 Qualitative) Date achieved 12/31/2003 12/31/2009 12/31/2010 Only 20% of target was achieved, as the use of larger vessels on this waterway was Comments not possible because of the delayed completion of the reconstruction of two existing (incl. % bridges. The underneath clearance of the existing bridges limited the maximum size achievement) of vessels to 100 dwt. Indicator 7 : GX-Powerplant output (GWh) at (i) Naji Value quantitative or none 253 - 227 Qualitative) Date achieved 12/31/2003 12/31/2009 12/31/2009 Comments (incl. % 90% of target was achieved due to the delay in filling the reservoir. achievement) Indicator 8 : GD-Powerplant output (GWh) at