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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 55552-CN PROJECT APPRAISAL DOCUMENT ON A Public Disclosure Authorized PROPOSED LOAN IN THE AMOUNT OF US$ 100 MILLION TO THE PEOPLE’S REPUBLIC OF CHINA FOR A SICHUAN SMALL TOWNS DEVELOPMENT PROJECT Public Disclosure Authorized April 8, 2011 China and Mongolia Sustainable Development Unit Sustainable Development Department East Asia and Pacific Region This document has a restricted distribution and may be used by recipients only in the Public Disclosure Authorized performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective June 30, 2010) Currency Unit = Renminbi (RMB) RMB 6.8 = US$1 US$ 1.0 = RMB 6.8 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS CNAO China National Audit Office CPS Country Partnership Strategy CQS Section based on the consultants qualifications DA Designated Account DC Direct Contracting EMP Environmental Management Plan EIA Environmental Impact Assessment EMP Environmental Management Plan FMM Financial Management Manual FMS Financial Management System FSR Feasibility Study Report FYP Five Year Plan GDP Gross Domestic Product GoC Government of China ICB International Competitive Bidding MBD Model Bidding Document MEP Ministry of Environment Protection MHURC Ministry of Housing and Urban-Rural Construction MoF Ministry of Finance NCB National Competitive Bidding NDRC National Development and Reform Commission PIU Project Implementation Unit PMO Project Management Office QCBS Quality- & Cost-based Selection RAP Resettlement Action Plan SHURDD Sichuan Housing and Urban-Rural Development Department SDRC Sichuan Development Reform Commission SPG Sichuan Provincial Government SSS Single-Source Selection SUDP Sichuan Urban Development Project SUEP Sichuan Urban Environment Project TA Technical Assistance WDR World Development Report WERP Wenchuan Earthquake Recovery Project Vice President: James W. Adams, EAPVP Country Director: Klaus Rohland , EACCF Sector Managers: Ede Jorge Ijjasz, EASCS / Vijay Jagannathan, EASIN Task Team Leader: Ji You, EASCS CHINA Sichuan Small Towns Development Project CONTENTS Page I. STRATEGIC CONTEXT AND RATIONALE ................................................................. 1 A. Country and sector issues.................................................................................................... 1 B. Rationale for Bank involvement ......................................................................................... 2 C. Higher level objectives to which the project contributes .................................................... 2 II. PROJECT DESCRIPTION ................................................................................................. 3 A. Lending instrument ............................................................................................................. 3 B. Project development objective and key indicators .............................................................. 3 C. Project components ............................................................................................................. 3 D. Lessons learned and reflected in the project design ............................................................ 4 E. Alternatives considered and reasons for rejection .............................................................. 5 III. IMPLEMENTATION ...................................................................................................... 5 A. Partnership arrangements (if applicable) ............................................................................ 5 B. Institutional and implementation arrangements .................................................................. 5 C. Monitoring and evaluation of outcomes/results .................................................................. 6 D. Sustainability....................................................................................................................... 6 E. Critical risks and possible controversial aspects ................................................................. 7 F. Loan/credit conditions and covenants ................................................................................. 8 IV. APPRAISAL SUMMARY ............................................................................................. 10 A. Economic and financial analyses ...................................................................................... 10 B. Technical ........................................................................................................................... 11 C. Fiduciary ........................................................................................................................... 12 D. Social................................................................................................................................. 13 E. Environment ...................................................................................................................... 13 F. Safeguard policies ............................................................................................................. 14 G. Policy Exceptions and Readiness...................................................................................... 14 Annex 1: Country and Sector or Program Background ......................................................... 16 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ................. 24 Annex 3: Results Framework and Monitoring ........................................................................ 26 Annex 4: Detailed Project Description ...................................................................................... 30 Annex 5: Project Costs ............................................................................................................... 36 Annex 6: Implementation Arrangements ................................................................................. 38 Annex 7: Financial Management and Disbursement Arrangements ..................................... 43 Annex 8: Procurement Arrangements ...................................................................................... 52 Annex 9: Economic and Financial Analysis ............................................................................. 55 Annex 10: Safeguard Policy Issues ............................................................................................ 60 Annex 11: Project Preparation and Supervision ..................................................................... 66 Annex 12: Documents in the Project File ................................................................................. 67 Annex 13: Statement of Loans and Credits .............................................................................. 68 Annex 15: Maps........................................................................................................................... 74 Map No. CHN38059 CHINA SICHUAN SMALL TOWNS DEVELOPMENT PROJECT PROJECT APPRAISAL DOCUMENT EAST ASIA AND PACIFIC EASCS Date: April 8, 2011 Team Leader: Ji You, EASCS Country Director: Klaus Rohland, EACCF Sectors: Roads and highways (50%); Flood Sector Manager/Director: Ede Ijjasz, EASCS/ protection and embankment improvement Vijay Jagannathan, EASIN (24%); Sewerage (16%); Water supply (10%); Themes: Access to urban services and housing (60%); Pollution management and environmental health (20%); Municipal governance and institution building (20%) Project ID: P110632 Environmental category: Partial Assessment Project Financing Data [X] Loan [ ] Credit [ ] Grant [ ] Guarantee [ ] Other: For Loans/Credits/Others: Total Bank financing (US$m.): 100.00 Proposed terms: Single Currency, Variable Spread Loan, 25 years, inclusive of 6 years grace, front end fee of 25 basis point. Financing Plan (US$m) Source Local Foreign Total Borrower 69.95 69.95 International Bank for Reconstruction and 95.00 5.00 100.00 Development Total: 164.95 5.00 169.95 Borrower: People’s Republic of China; Ministry of Finance, China Responsible Agency: Sichuan Provincial Project Management Office 10th Floor, Nongzi Building, No.10 East Jinli Road, Qingyang District, Chengdu, Sichuan, China Tel:86-28-8612 8880, Fax:86-28-8612 9043, Email: [email protected] i FY 12 13 14 15 16 17 Annual 7 15 28 25 15 10 Cumulative 7 22 50 75 90 100 Project Implementation Period: Start: July 1, 2011 End: June 30, 2016 Expected Effectiveness Date: August 10, 2011 Expected Closing Date: December 31, 2016 Does the project depart from the CAS in content or other significant respects? [ ]Yes [X]No Ref. PAD I.C. Does the project require any exceptions from Bank policies? [X]Yes [ ]No Translation waiver – In April 2007 Bank senior management endorsed “Guidelines for the use of English Translation of Summaries of Environmental Assessment Reports and Resettlement Action Plans in China Projects” which allowed the creation of English language comprehensive summaries of RAP and EA reports for projects that meet certain criteria. On February 12, 2008, the Guidelines were enhanced and endorsed by Bank senior management for a further period of two years until February 2010. In accordance with these guidelines, the applicable English translation waivers were granted at the PCN stage on September 17, 2009. The Chinese language RAPs and EA reports for the sub-components have been reviewed by the Bank, meet the requirements
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