The World Bank Report No: ISR14837

Implementation Status & Results China Yunnan Urban Environment Project (P096812)

Operation Name: Yunnan Urban Environment Project (P096812) Project Stage: Implementation Seq.No: 7 Status: ARCHIVED Archive Date: 24-Jun-2014 Country: China Approval FY: 2009

Public Disclosure Authorized Product Line:IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Yunnan Provincial Environment Protection Bureau - Foreign Financed PMO Key Dates Board Approval Date 05-May-2009 Original Closing Date 30-Jun-2015 Planned Mid Term Review Date 31-May-2013 Last Archived ISR Date 08-Nov-2013 Public Disclosure Copy Effectiveness Date 30-Sep-2009 Revised Closing Date 30-Jun-2016 Actual Mid Term Review Date 15-Dec-2013

Project Development Objectives Project Development Objective (from Project Appraisal Document) To assist Yunnan Province in improving the effectiveness and coverage of critical urban infrastructure services in selectedcountiesand the effectiveness of lake basin management in Dianchi, through investment in systems for the management of wastewater,water supply, solid waste, river environment and cultural heritage. Has the Project Development Objective been changed since Board Approval of the Project?

Yes No Public Disclosure Authorized Component(s)

Component Name Component Cost Urban Environment Infrastructure Development 166.50 Integrated Lake Basin Management 11.80 Water Supply for Zhaotong Municipality 49.58 Wastewater for Zhaotong Municipality 17.21 River Rehabilitation for Zhaotong Municipality 60.89 Technical Assistance and Capacity Building for Zhaotong Municipality 1.20

Overall Ratings

Public Disclosure Authorized Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Public Disclosure Copy Implementation Status Overview Progress toward achieving the PDO remains moderately satisfactory. The project infrastructure services will extend coverage for solid waste, water and wastewater treatment,

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environmental management and river rehabilitation. For solid waste, all planned sanitary landfills are operating, providing a combined the capacity to dispose of up to 535 tons of solid waste per day; however some are under provisional trial while leachate treatment systems are completed. For wastewater, four out of five wastewater treatment plants (WWTP) are operating with a combined capacity to treat up to 40,000 m3 of wastewater per day and a further capacity of 20,000m3 per day will be added once the final WWTP is complete in December 2014. Work on the related sewer networks and services is complete in Huaping and Qiubei, is under way in Lijiang, but is still in procurement in Zhaotong. Water supply services in Zhaotong are considerably behind schedule, still being at design stage. River rehabilitation improvements are just getting underway in Qiubei and procurement is underway in Funing and Zhaotong. Environmental and cultural improvement investments for Lion Mountain in Lijiang are significantly delayed as they are going through stringent review processes by the state and international cultural heritage authorities and will require a closing extension. The draft Dianchi Lake Management Plan and support system is being reviewed, but the effectiveness of Dianchi Lake basin management will depend on adoption and execution of a good quality Plan. Project restructuring is required to drop certain activities, reallocate the loan savings, revise the results framework and extend the closing date.

Locations Country First Administrative Division Location Planned Actual Public Disclosure Copy China Yunnan Eryuan Xian

China Yunnan Yiliang Xian

China Yunnan Yanshan Xian

China Yunnan Xundian Huizu Yizu Zizhixian

China Yunnan Wenshan Xian

China Yunnan Wenhua

China Yunnan Songyang

China Yunnan Songming Xian

China Yunnan Qiubei Xian

China Yunnan Malipo Xian

China Yunnan Luquan Yizu Miaozu Zizhixian

China Yunnan Shilin Yizu Zizhixian

China Yunnan Lijiang Shi

China Yunnan Kunming Shi

China Yunnan Huaping Xian

China Yunnan Guangnan Xian

China Yunnan Funing Xian Public Disclosure Copy China Yunnan Dian Chi

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Country First Administrative Division Location Planned Actual China Yunnan Dali Shi

China Yunnan Chenggong Xian

China Yunnan Yulong Naxizu Zizhixian

Results

Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Public Disclosure Copy Integrated lake basin management of Lake Text Value Three areas of problems that Baseline should be revised to End Target is: Dianchi hampers achievements of two indicators as the last 1) Adoption of ILBM Plan ILBM (p25, Annex I of PAD) - indicator on strengthening 2) Revied Regulations for 1. lack of ILBM Master Plan 2. authority of the lake basin Dianchi Lake protection. lack of strong legislation and does not have a clear project basin-wide reinforcement, and component to improve this. 3. Lack of clear authority in The two key indicators are: driving changes to promote 1) Development of a long- ILBM term master plan for the Dianchi Lake Basin; and 2) Revision of Regulations on Protection of Dianchi Lake. The current status is that the regulations have been updated and approved. The development of the Dianchi Lake ILBM Plan is ongoing. The initial outputs require further work before and this is ongoing Date 15-Dec-2007 25-Apr-2014 30-Jun-2015 Comments

Intermediate Results Indicators Public Disclosure Copy

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Indicator Name Core Unit of Measure Baseline Current End Target Number of people in urban areas provided with Number Value 190200.00 197910.00 319300.00 access to Improved Sanitation under the Date 31-Dec-2009 25-Apr-2014 30-Jun-2016 project Comments Core Indicator same as No. of pop served by wastewater services. Target value for CY2013 = 205,800. The figure represents the served population in the existing water supply system by the end of 2012.

Public Disclosure Copy Number of people in urban areas provided with Number Value 270050.00 278978.00 347600.00 access to Improved Water Sources under the Date 31-Dec-2009 25-Apr-2014 30-Jun-2016 project Comments Core Indicator same as custom No. of pop served by water supply. Target value for CY2013 = 281,000. The figure represents the served population in the existing water supply system by the end of 2012. Kunming Municipality, Songming County, Number Value 55600.00 110910.00 73600.00 Number of population served by solid waste Date 15-Dec-2007 30-Apr-2014 30-Jun-2015 services Comments CY14 Target Value= 71,200. The indicators will be Population includes reviewed in the restructuring Songyang town, Xiaojie process and will be revised to township and Yangling town. 'number of beneficiaries'. Kunming Municipality, Songming County SW - Number Value 0.00 85.00 79.50 Amount of solid waste disposed to sanitary Date 31-Dec-2009 25-Apr-2014 30-Jun-2016 landfills (t/d) Comments Target for CY14 = 76.9 tons/ day. Average capacity is 65 tons/day but with a peak of 120 tons/day and average of 85 tons/day Kunming Municipality - Songming County - Percentage Value 0.00 91.00 103.00 Operating cost covered by SW fee revenues Date 31-Dec-2009 25-Apr-2014 30-Jun-2016 (%) Comments CY14 target = 103%. The landfill is at early stage of

Public Disclosure Copy operation and is currently subsidized.

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Kunming Municipality, Xundian County, Number Value 57300.00 136900.00 78900.00 Number of Population served by Solidwaste Date 15-Dec-2007 25-Apr-2014 30-Jun-2015 Management Service Comments CY14 Target Value = 73,400. Landfill operating. Rising number of people served is due to rapid population increase. Kunming Municipality, Xundian County SW, Number Value 51.61 0.00 70.00 Amount of solid waste disposed to sanitary Date 31-Dec-2009 25-Apr-2014 30-Jun-2016 landfills (t/d) Comments CY14 target = 68.4 t/d. Landfill is in trial operation at Public Disclosure Copy 12 t/d. Kunming Municipality, Xundian County SW- Percentage Value 0.00 41.10 55.00 Operating cost covered by SW fee revenues Date 31-Dec-2009 25-Apr-2014 30-Jun-2016 (%) Comments CY14 target = 50%. The landfill is under trial operation with cost recovery at 12%. Remainder is subsidized. Kunming Municipality, Luquan County, Number Number Value 50200.00 68000.00 74500.00 of population served by Solidwaste Date 15-Dec-2007 25-Apr-2014 30-Jun-2015 Management Services Comments CY14 Target Value = 71,300. Currently built to serve 68,000 Kunming Municipality, Luquan County SW, Number Value 0.00 0.00 80.50 Amount of solid waste disposed to sanitary Date 31-Dec-2009 25-Apr-2014 30-Jun-2016 landfills (t/d) Comments CY14 target = 77.1 t/d. Temporary service in place until leachate treatment system completed by end of 2014 Kunming Municipality, Luquan County SW, Percentage Value 0.00 20.00 121.00 Operating cost covered by SW fee revenues Date 31-Dec-2009 25-Apr-2014 30-Jun-2016 (%) Comments CY14 target=116%. Actual current is 20%. The details of the operating costs will be reviewed during the next supervision mission. Public Disclosure Copy

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Lijiang Municipality, Lijiang Ancient Town Number Value 166600.00 243000.00 248900.00 District, Wasterwater Management Service - Date 15-Dec-2007 25-Apr-2014 30-Jun-2015 Number of population served Comments CY14 Target Value = 238,000. Lijiang Municipality, Lijiang Ancient Town Number Value 166600.00 379000.00 248900.00 District, Solidwaste Management Service - Date 15-Dec-2007 25-Apr-2014 30-Jun-2015 Number of population served Comments CY14 Target Value = 238,000. Lijiang Municipality, Lijiang Ancient Town, Number Value 142.70 270.00 230.10 Amount of solid waste disposed to sanitary Date 31-Dec-2009 25-Apr-2014 30-Jun-2016

Public Disclosure Copy landfills (t/d) Comments CY14 target=220.2 t/d. Lijiang Municipality, Lijiang Ancient Town Yes/No Value Yes Yes Yes District, Development Masteplan - Compliance Date 15-Dec-2007 25-Apr-2014 30-Jun-2015 with UNESCO and National Protection Codes Comments Master plan was in The master plan was in compliance at appraisal compliance at apparaisal. The project scope submitted for second review to SACH and UNESCO. Indicators will be reviewed in the project restructuring to identify more relevant indicators. Lijiang Municipality, Lijiang Ancient Town Yes/No Value Yes Yes Yes District, Maintenance of UNESCO World Date 15-Dec-2007 25-Apr-2014 30-Jun-2015 Cultural Heritage Status Comments Lijiang Municipality, Yulong County, Rainwater Number Value 30000.00 60000.00 Drainage System - Population served Date 15-Dec-2007 25-Apr-2014 30-Jun-2015 Comments No data available as Yulong is going to be dropped from the project. Lijiang Municipality, Huaping County - Number Value 0.00 475000.00 56400.00 Wastewater Management System - Population Date 15-Dec-2007 25-Apr-2014 30-Jun-2015 Served Comments CY14 Target value = 58,000 Lijiang Municipality, Huaping County, Number Value 400.00 24.00 60.00 Wastewater Management Sytem - COD level Date 15-Dec-2007 25-Apr-2014 30-Jun-2015 at discharge point (mg/L) Comments CY14 Targeted Value = 60. The COD varies from 12.7 to Public Disclosure Copy 23.5. Sewage treatment is 2 million m3 in 2013.

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Wenshan Prefecture, Qiubei County WS/WW, Number Value 39600.00 47000.00 53050.00 Population served by clean water supply Date 31-Dec-2009 25-Apr-2014 30-Jun-2016 Comments CY14 target= 51,360. During peak tourism season this number increases to 65,000. Wenshan Prefecture, Qiubei County, Number Value 39600.00 47000.00 53050.00 Wastewater Management - Number of Date 15-Dec-2007 25-Apr-2014 30-Jun-2015 population seved Comments CY14 target= 51,360. Value

Public Disclosure Copy Wenshan Prefecture, Qiubei County, Number 400.00 30.00 60.00 Wastewater Management - COD level (mg/L) Date 15-Dec-2007 25-Apr-2014 30-Jun-2015 at discharge point Comments CY14 Target value = 60. The WWTP is in trial operation and COD level ranges from 9.5 to 30. Wenshan Prefecture, Funing County, Number Value 35200.00 52200.00 Solidwaste Management - Number of Date 15-Dec-2007 25-Apr-2014 30-Jun-2015 population served Comments No data available as Funing Solid Waste will be dropped from the Project. Wenshan Prefecture, Funing County SW, Number Value 0.00 62.10 Amount of solid waste disposed to sanitary Date 31-Dec-2009 25-Apr-2014 30-Jun-2016 landfills (t/d) Comments No data available as Funing Solid Waste will be dropped from the Project. Wenshan Prefecture, Funing County SW, Percentage Value 0.00 100.00 Operating cost covered by SW fee revenues Date 31-Dec-2009 25-Apr-2014 30-Jun-2016 (%) Comments No data available as Funing Solid Waste will be dropped from the Project. Wenshan Prefecture, Yanshan County, Number Value 46500.00 65000.00 66200.00 Wastewater - Number of population served Date 15-Dec-2007 25-Apr-2014 30-Jun-2015 Comments CY14 Target value = 63,700 Wenshan Prefecture, Yanshan County UD, Number Value 250.00 40.00 60.00 COD level at main discharge point (mg/L) Date 31-Dec-2009 25-Apr-2014 30-Jun-2013 Public Disclosure Copy Comments Between 250-400 CY14 target=60. 1.53 million tons treated in 2013. Total

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COD reduction is 231 tonnes and NH3 is 47 tonnes Wenshan Prefecture, Gangnan County, Number Value 0.00 80000.00 68300.00 Wastewater Management - Number of Date 15-Dec-2007 25-Apr-2014 30-Jun-2015 population served Comments CY14 Target value = 65,700. Wenshan Prefecture, Guangnan County, Number Value 400.00 26.00 60.00 Wastewater - COD level (mg/L) at discharge Date 15-Dec-2007 25-Apr-2013 30-Jun-2015 point Comments CY14 Target value = 60. 3.6 m tonnes of ww treated between 2011 and 2013. 1.2 in 2013. COD reduced in Public Disclosure Copy 2013 was 87023.6 tonnes and 14974.3 tonnes of NH3 Wenshan County, Frequency of water Number Value 6.00 12.00 12.00 monitoring at Wenshan Prefecture Date 31-Dec-2009 25-Apr-2014 30-Jun-2010 Environment Monitoring Station Comments CY14 Target value = 12. In 12 times per year reached in full operation. 2010 and maintained through closing in 2016 Wenshan Prefecture, Wenshan County, Percentage Value 0.00 100.00 100.00 Environment Monitoring - Pecentage of Date 15-Dec-2007 25-Apr-2014 30-Jun-2015 polluters aware of new regulation standards Comments CY14 Target value = 100 Dianchi Lake Basin Management - Number of Number Value 6.00 21900.00 8760.00 monitoring on 3 rivers (times per year) Date 15-Dec-2007 25-Apr-2014 30-Jun-2015 Comments CY14 Target value = 8760, water quality monitoring stations put into operation and number of water quality parameters more than doubled. Dianchi Lake Basin Management - Number of Number Value 0.00 0.00 8760.00 monitoring on 14 streams (times per year) Date 15-Dec-2007 25-Apr-2014 30-Jun-2015 Comments CY13 Target value = 8,760. 3 Automatic monitoring stations are in operation. Data on number of monitoring is to be provided. This will be reviewed in restructuring. Public Disclosure Copy

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Dianchi Lake Basin Management - On-line Yes/No Value No Yes Yes monitoring and informaton management Date 15-Dec-2007 25-Apr-2014 30-Jun-2015 carried out Comments Through domestic financing. Lake Basin Component, System terminal has Text Value n/a Yes Yes capacity to receive & process monitoring data Date 31-Dec-2009 25-Apr-2014 31-Dec-2011 Comments Through domestic financing. Capacity reached in 2011 and maintained through 2016 No. of population served by water supply Number Value 270050.00 278978.00 347600.00 system (water component) Date 31-Dec-2009 25-Apr-2014 30-Jun-2016 Comments Target Value for CY2013 = Public Disclosure Copy 281,000. The figure represents the served population in the existing water supply system by the end of 2012. No. of population served by wastewater Number Value 190200.00 197910.00 319300.00 services Date 31-Dec-2009 25-Apr-2014 30-Jun-2016 Comments Target Value for CY2013 = 205,800. The figure represents the served population in the existing water supply system by the end of 2012. COD level at monitoring point (mg/L) Station Number Value 110.00 115.00 40.00 No. 1, Riji River Date 31-Dec-2009 25-Apr-2014 30-Jun-2016 Comments N/A for CY14. The figure represents the current monitored data. COD level at monitoring point (mg/L) Station Number Value 118.00 126.00 40.00 No. 2 - Tuwei River Date 31-Dec-2009 25-Apr-2014 30-Jun-2016 Comments N/A for CY14. The figure represents the current monitored data. Voume(mass) of COD pollution load reduction Tones/year Value 0.00 achieved under the project Date 31-Dec-2009 08-Nov-2012 30-Jun-2016 Comments This CSI was added in February 2013 and will be Public Disclosure Copy incorporated into planned restructuring.

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Industrial and municipal waste disposal Metric ton Value capacity created under the project Date 31-Dec-2009 08-Feb-2013 30-Jun-2016 Comments No data yet. New household sewer connections constructed Number Value 0.00 under the project Date 31-Dec-2009 25-Apr-2014 30-Jun-2016 Comments Data being collected Contaminated land managed or dump sites Hectare(Ha) Value 0.00 1.00 4.00 closed under the project Date 31-Dec-2009 25-Apr-2014 30-Jun-2016 Comments Dumps sites are being closed using domestic financing. So Public Disclosure Copy far 1 out of 4 sites are closed. Number of people in urban areas provided with Number Value access to regular solid waste collection under Date 31-Dec-2009 25-Apr-2014 30-Jun-2016 the project Comments Data to be collected. Number of water utilities that the project is Number Value 5.00 6.00 6.00 supporting Date 31-Dec-2009 25-Apr-2014 30-Jun-2016 Comments Lijiang Water Supply & Includes baseline companies Drainage; Huaping Water plus Zhaotong Municipal Supply & Sewerage Co.; Water Supply and Qiubei Water Supply Wastewater Company Corporation; and Drainage included in the Additional Company; Guangnan Urban Financing approved in 2010. Water Supply and Drainage Company; Yanshan Water Supply Co.

Data on Financial Performance (as of 29-Apr-2014)

Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P096812 IBRD-76920 Effective 05-May-2009 22-Jul-2009 30-Sep-2009 30-Jun-2015 30-Jun-2015 P096812 IBRD-79370 Effective 06-Jul-2010 23-Aug-2010 15-Nov-2010 30-Jun-2016 30-Jun-2016

Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P096812 IBRD-76920 Effective USD 90.00 90.00 0.00 42.35 47.65 47.00

Public Disclosure Copy P096812 IBRD-79370 Effective USD 60.00 60.00 0.00 7.15 52.85 12.00

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Disbursement Graph Public Disclosure Copy

Key Decisions Regarding Implementation Now that a number of urban environmental services are operating, the local authorities are to focus efforts on completing the remaining urban services while improving operation and maintenance of assets and services delivery as well as cost recovery. Progress in a few components, particularly water supply, river rehabilitation and cultural heritage is still behind schedule and needs the commitment of all parties to expedite prior to project closing and to meet the PDO. Project restructuring including a proposed loan closing date extension is vital to meet the PDO. A technical mission is planned for July 2014 once the river rehabilitation works are ready to start and the next full supervision mission is planned for October 2014.

Restructuring History There has been no restructuring to date.

Related Projects P117819-CN-Yunnan Urban Environment-Phase II Additional Financing Public Disclosure Copy

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