THE WORLD BANK GROUP ARCHIVES PUBLIC DISCLOSURE AUTHORIZED Folder Title: The Initial Feasibility Study Report on Comprehensive Developing Projects of Agriculture in Shandong Province, China - The Planning Committee of Shandong Province - January 1988 Folder ID: F28491 Dates: 1/1/1988 Fonds: Records of the East Asia and Pacific Regional Vice Presidency ISAD Reference Code: WB IBRD/IDA EAP Digitized: 11/14/2014 To cite materials from this archival folder, please follow the following format: [Descriptive name of item], [Folder Title], Folder ID [Folder ID], World Bank Group Archives, Washington, D.C., United States. The records in this folder were created or received by The World Bank in the course of its business. The records that were created by the staff of The World Bank are subject to the Bank’s copyright. Please refer to http://www.worldbank.org/terms-of-use-earchives for full copyright terms of use and disclaimers. THE WORLD BANK Washington, D.C. © International Bank for Reconstruction and Development / International Development Association or The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org Th~ Comprehensive Dcvclupingl ' Project of Agriculture in 1· Shandong Province, China ; / Tllf-: INITIAi. 1:1·:/\SIBll. f'l Y ~Tl ) DY REPORT ON COMP RElll:NSIVE Dl-:'.' ::I.OPIN<..i PROJECTS OF AGRICULTURI: IN Sl!1\ .'' :'lONG PROVINCE. CIIINA Cf! ,v11 THF. PLANNING COM 1\IITTf-:E OF S!-1,\NOONG PRO\'INCE .. ,, . -. ·:. - .. ~ . ' Project Name: The Comprehensive Deve­ loping Projects of Agri­ culture in Shandong Pro­ vince The Unit in The Planning Committee -- Charge of the of Shandong Province Projects. The Person in Wang Yu- yan Charge of the Projects: The Person in Pan Yong- ke Charge of the Technical Com­ munication: The Project The Water Products Bureau Unit: of Shandong Province The Agriculture Burea u of Shandong Province The Water Convany Bureau of Shandong Province • l • ... , The Forestry Bureau of Shan­ dong Province The Initial Fea­ r; i li ty Study Re- port Prepared by: The World Bank Loan Projec t Office of the Planning Com­ mittee of Shandong Province • 2 • w ., The Initial Feasibi lity Study Report On The Comprehensive De veloping Projects Of Agriculture In Shandong Pro­ vince , Chi na Contents page I . Background of the Project 1.Preface 2 . A Survey of Shandong Province • • • • • • 3 3 . The Present Status of Agriculture 7 4 . Service in Support and Help ••.....•• 10 5 . Forming of the Pro ject .• •. .• . .• • ... • 17 II . The Information of the Project Area •• 22 1 • Lo ca ti on • • • . • • . • . • . • • • • . • • . • • • 2 2 2 . C1 i mate • • . • . • . • . • • • • 22 3 . Topography ••. .. .. ... .. .••. ..•..... 22 4.Population , Land and Village ..•..•.. 27 . 3 • ; ... 5 . Resources and the Present Condi ti0 n .. 27 6.Basic Installation ••• ..... ...••. 38 7 .The Situation of Science and Technology39 8.water, electricity and Traffic .....•• 39 III. The Plan of Project •.••.••.•••••••.• 42 1.Project Description •.••••• •••• . ..••• 42 2 . Projec t Contents .•••••••.•....••••• 45 3 .Installation of Project • • •••••• ••••• 48 4 . The Conditions of Engineering Design. 61 5 . Estimation of the Engineering Volume and Cost . 62 6 . Purchasing of the Goods and Materials •. 63 7.The Environmental Influence • • •...••• 68 IV. The Organs and Management · · · · · · · · · 69 1 • The Organs · · · · · · · · · · · · · · · · · · · · · · · · · 6 9 2 . The Duties of Organs in Different Levels . .... 70 • 4 • ) 3 . Servoce in Support and Help ... .. ...... 77 4 .Management and Maintenance 83 v. The Estimated Aim of Project 85 1.The Reformation of Lo w-yield Lands in the Tuha i River Valley 85 2 . The Development of Animal Husba ndry 87 3.The Farming of Prawns and Va l uable Marine Products . 88 VI. Marketing Prospect . 90 1. The Market within Shandong Province ••• 90 2 . The Domestic Market 93 3 . The I n ternational Market 93 4.Plan f or Product Sales . 98 VII . Progress Schedule of the Project , .... 98 1.Construction Schedule 98 • 5 • 2.Annual I nvestment Scheme · ··············100 VIII. The Raising and Paying-back of the Capita l •. ...... • • • • • • .• ••• .•• • • • • • • 102 1.The Method of Raising • • • • • • • • • • • • • • • • 102 2.Suggestions for the Usage of the Loa n from the World Back • • • t •••• • •••••••• • 104 3.The Me thod of Inves tment and the Plan for Raising Ca pital in Each Year • •. .. 109 4 . Loan and Paymen t •••••• •••••••••• • • • • • ·1 09 5 . Accountants and Auditors ••••••••.•.•. 109 IX. Financial Ana lysis and Business Evaluation • • • • • • • • • • • • • • • • • • • • • • • • • • l 1 1 1. Financial Analysis of the Project • •• •• 111 2 . Business Analysis of the Project ······1 33 3 . Financial Contribution of the Project .. J 34 4 . Ana lysis about the Risk in the Project.J 35 . 6 • , X. Conclusion ••••••••••••••••• •• ••••••• 138 1 .Technical Feasibility ••. ••• •••• •• •••••• 138 2.0rganization Feasibility ............... 138 3.Financial Feasibility •••• , . •. • . • ••••••• 139 4. Economical Feasili ty ••• • • • . •.. ....•.• 139 5. Social Feasibility ••.••.••.••.•.....• 1 40 6.Proposals ••••••••••••••••••••••••••• 1 4 1 • 7 • , The Comprehensive Developing ProJect of Agri­ culture in Shandong Province, China I. Background of the Project 1.Preface 1.01 This project will be the first comprehensive developing project of agrtculture in a oig scale supported by the World Bank and will provide typi­ cal experience for comprehensive and total develop­ ment of agriculture in Shandong Province and even for that of the whole country, which will push for­ ward the comprehensive development of agriculture. 1.02 The national econom~ of Shandong Province has developed rapidly in recent years. In 1986 the total output value of the provincial national economy reached 32 .7 billon U. S . dollar, which increased by 11 .4 ~ th~n that of the year before ; the national income was 13.3 billion U. S. dollars, which increa ­ sed by 7. 6~ than that of the year oefore; the total social ou tput value in the countryside reached 18.5 billion U. S . dollars, which increased by 19 . 4% -.nan that of the year before. lhwever , the potentiality of the a~ricultural developmen t is still quick big. -1-- • 1.03 The focal point of the developing strategy of agriculture in Shandong Province, in the future , is to do a good job on the agricultural development of the big three stretches of land. The first stretch is the existing 4. 7 million hactares of middlea and lbw yield land which needs a good job totranform. The second s tretch is the 2 .7 million hactare of · wast land centered in the Yi meng mountain area whiah needs development. Th. rough the developmw.. of live - stock, forestry and fruit , the production will be opened up widely and deeply and the products of li­ vestock and forestry will be increased in a big sca­ le. The third stretch is the t wo million hactare of S hallow S da and seabeach and t he 240, 000 hactares of in land water which need development to increase aquatic products in a large way. 1.04 T~is proje ct includes three sub- projects. 7 h ey are the breeding of power and valuable sea products ; the transformation of middle and low yield land along the Tu hai River Va lley , and the development of livestock. ~ hese three sub-projects were made out based on t he a g ricultural development strategy in -2- Shandong Province and they are located separately. at the three stretches of land that have the largeat potentiality for development. They are the most imp \ ortant parts in the three stretches of land for de­ velopment. •1.05 This project shall have comprehensive develo­ pment and contruction in aquatic products, livestock , forestry, planting and water conservancy in twen­ ty- four countries. When the project is put into full production, the agricultural output value will be increased by over two hundred and seventy million 7 ~ U.S. dollars in a normal year. This will make bene - fits to a population of 14,390,000 in the project areas. 2. A SPrvey of Shandong Province 1.06 Shandong P-avince is located on the eastc of China and the lower reaches of the Yel low River, at 114° 50 ' - 122° 50 ' E and 34° 30 '-38° 15' N. It con­ sists of a peninsula and the inland.Th e peninsisula i s extended out between the Yellow Sea and the Bohai S~a, facing the Liaodong P~ninsula across the Bohai Sea,Its i nland borders on Hebei, Henan , Anhui -3- and Jiangsu Provinces. 1he Yellow Ri ver flows through provinces. with six hundred and seventeen ki­ lometers and six hundred and thirty kilometers of the Jinghang Great Canal. The whole province is more than seven hundred kilometers from the east to the west aad over four hundred kilomters from the south to the north. The coastline is more than three thousand ki­ lometers making up the one sixth of the national coa­ stline. The sea beach area is about 2,000,000 hactr tres. Its total land area is 156 , 700 square kilo­ meters occupying 1.6% of the country. Among them, the \ plain is 55%, the mountain region is 20%~ tJie hilly l area is 1.1 %. By the end of 1986, the population of the province is 77 , 760,000, ranking the third place in the country. The agricultural population is 67,970, 000 87. 4% ~f the provincial population. 1. 07 A~ministrative Division ~handong Province has ten prefectural level cities which are governed directly by the provincial go­ vernment,and 5 prefectures, 135 counties, cities ans districts. -4- 1.08 Natural Climate Shandong Province is at the zone of ~arm mon­ soon climate. It has an annual average temperature of 11 uc - 14°c, increasing from the peninsula to the inland. The hottest month is July inwhich the 4 0 average temperature is 24.5 C - 27.5 C. The coldest month is January inwhich the average temperature is -1cO - -4 0 C. The annual frost-free peroik is between 180 and 220 days The annual rainfall is 550 - 950 mm and the variable rate is between 12% and 25%, 60 - 70% of the rainfall concentrates in Summer.