Jiangxi Sustainable Forest Ecosystem Development Project 4
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Completion Report Project Number: 42022-013 Loan Number: 2694 Grant Number: 0229 June 2020 People’s Republic of China: Jiangxi Sustainable Forest Ecosystem Development Project This document is being disclosed to the public in accordance with ADB’s Access to Information Policy. CURRENCY EQUIVALENTS Currency unit – yuan (CNY) At Appraisal At Project Completion (14 October 2010) (30 July 2018) CNY1.00 = $0.1500 $0.1468 $1.00 = CNY6.6665 CNY6.8131 ABBREVIATIONS ADB – Asian DeVelopment Bank CCF – Climate Change Fund CMS – consultant management system DMF – design and monitoring framework EIRR – economic internal rate of return EMP – environmental management plan FIRR – financial internal rate of return GDP – gross domestic product ha – hectare JFD – Jiangxi Forestry Department JPFD – Jiangxi ProVincial Finance Department JPG – People’s GoVernment of Jiangxi ProVince IEE – initial enVironmental examination kg – kilogram LIBOR – London interbank offered rate m3 – cubic meter MVRS – monitoring, Verification, and reporting system PIO – project implementation office PMO – project management office PRC – People’s Republic of China SFM – sustainable forest management TA – technical assistance WACC – weighted aVerage cost of capital NOTE In this report, “$” refers to United States dollars. Vice-President Ahmed M. Saeed, Operations 2 Director General James P. Lynch, East Asia Department (EARD) Director Yolanda Fernandez Lommen, People’s Republic of China (PRC) Resident Mission, EARD Team leader Xin Shen, Senior Project Officer (Natural Resources and Agriculture), PRC Resident Mission, EARD Team members Ning Li, Senior EnVironment Officer, PRC Resident Mission, EARD Jie Li, Associate Project Analyst, PRC Resident Mission, EARD Fang Wang, Senior Financial Management Officer, PRC Resident Mission, EARD Jing Zhang, Operations Assistant, PRC Resident Mission, EARD Wenlong Zhu, Senior Safeguards Officer (Resettlement), 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 i I. PROJECT DESCRIPTION 1 II. DESIGN AND IMPLEMENTATION 1 A. Project Design and Formulation 1 B. Project Outputs 2 C. Project Costs and Financing 4 D. Disbursements 4 E. Project Schedule 5 F. Implementation Arrangements 5 G. Technical Assistance 5 H. Consultant Recruitment and Procurement 6 I. Safeguards 6 J. Monitoring and Reporting 7 III. EVALUATION OF PERFORMANCE 7 A. ReleVance 7 B. EffectiVeness 8 C. Efficiency 8 D. Sustainability 9 E. DeVelopment Impact 9 F. Performance of the Borrower and the Executing Agency 11 G. Performance of the Asian DeVelopment Bank 11 H. Overall Assessment 12 IV. ISSUES, LESSONS, AND RECOMMENDATIONS 12 A. Issues and Lessons 12 B. Recommendations 13 APPENDIXES 1. Design and Monitoring Framework 14 2. Project Cost and Financier 16 3. Disbursement of ADB Loan and Grant Proceeds 19 4. Contract Awards of ADB Loan and Grant Proceeds 20 5. Environmental Impact Analaysis 21 6. Status of Compliance with Legal CoVenants 27 7. Financial and Economic ReeValuation 36 8. Social Impact and PoVerty Reduction 42 BASIC DATA A. Loan and Grant Identification 1. Country People's Republic of China 2. Loan/grant numbers and financing 2694 OCR/0229 CCF source 3. Project title Jiangxi Sustainable Forest Ecosystem Development Project 4. Borrower People's Republic of China 5. Executing agency Government of Jiangxi Province 6. Amount of loan $40 million Amount of grant $1 million 7. Financing modality Loan and grant B. Loan and Grant Data 1. Fact-finding – Date started 25 January 2010 – Date completed 29 January 2010 2. Loan negotiations – Date started 11 October 2010 – Date completed 12 October 2010 3. Date of Board approval 9 November 2010 4. Date of loan agreement 3 March 2011 5. Date of loan effectiveness – In loan agreement 1 June 2011 – Actual 15 June 2011 – Number of extensions 1 6. Project completion date – Appraisal 30 April 2017 – Actual 31 October 2017 7. Loan closing date – In loan agreement 31 October 2017 – Actual 31 October 2017 – Number of extensions 0 8. Financial closing date – Actual 30 July 2018 9. Terms of loan – Interest rate London interbank offered rate–based – Maturity (number of years) 26 – Grace period (number of years) 6 10. Terms of relending – Interest rate London interbank offered rate–based – Maturity (number of years) 26 – Grace period (number of years) 6 11. Climate Change Fund cofinancing – Climate Change Fund approval 9 November 2010 – Date of financing agreement 16 March 2011 – Date of effectiveness 4 July 2011 – Closing date in financing 31 October 2017 agreement ii – Actual closing date 31 October 2017 – Number of extensions 0 – Actual financial closing date 30 July 2018 12. Disbursements a. Dates – Loan Initial Disbursement Final Disbursement Time Interval 27 February 2012 14 June 2017 64 months Effective Date Actual Closing Date Time Interval 15 June 2011 31 October 2017 77 months b. Dates – Climate Change Fund Grant Initial Disbursement Final Disbursement Time Interval 22 June 2012 9 May 2018 71 months Effective Date Actual Closing Date Time Interval 4 July 2011 31 October 2017 76 months c. Loan Amount ($ million) Increased Canceled Last Original during during Revised Amount Undisbursed Allocation Implementation Implement Allocation Disbursed Balance Category (1) (2) ation (3) (4=1+2–3) (5) (6 = 4–5) 1. Silviculture 35.84 7.82 4.65 39.01 39.01 – 1A-Chinese Fir and 18.33 5.21 – 23.54 23.54 – Broadleaf Species 1B-Slash Pine and 7.63 – 3.68 3.95 3.95 – Broadleaf Species 1C-Oil Tea 1.66 2.00 – 3.66 3.66 – 1D-Orange 1.96 – 0.97 0.99 0.99 – 1E-Tea 0.24 0.31 – 0.55 0.55 – 1F-Bamboo 6.02 0.30 – 6.32 6.32 – 2. Capacity 0.05 – 0.05 0.00 0.00 – Development 3. Interest and 4.11 – 3.12 0.99 0.99 – Commitment Charges Total 40.00 7.82 7.82 40.00 40.00 0 Note: Numbers may not sum precisely because of rounding. Source: Asian Development Bank. d. Grant Amount ($ million) Increased Canceled Last Original during during Revised Amount Undisbursed Allocation Implementation Implemen Allocation Disbursed Balance Category (1) (2) tation (3) (4=1+2–3) (5) (6 = 4–5) 1A-Satellite Images and 0.03 – 0.01 0.02 0.02 – Measuring Tools 1B-Geographical Information 0.02 0.02 – 0.04 0.04 – System 2A-Domestic Training 0.05 0.02 – 0.07 0.07 – 2B-International Workshop 0.08 – 0.05 0.03 0.03 – 2C-Overseas Study Tours 0.05 0.02 – 0.07 0.07 – 2D-Demo of Sustainable 0.35 – 0.02 0.33 0.33 – Forest Management 2E-Surveys 0.24 – – 0.24 0.24 – iii Increased Canceled Last Original during during Revised Amount Undisbursed Allocation Implementation Implemen Allocation Disbursed Balance Category (1) (2) tation (3) (4=1+2–3) (5) (6 = 4–5) 03-Consulting Services 0.18 – 0.05 0.13 0.13 – Total 1.00 0.06 0.13 0.93 0.93 0 Note: Numbers may not sum precisely because of rounding. Source: Asian Development Bank. C. Project Data 1. Project cost ($ million) Cost Appraisal Estimate Actual Foreign exchange cost 0.24 0.23 Local currency cost 66.15 69.36 Total 66.39 69.59 2. Financing plan ($ million) Cost Appraisal Estimate Actual Implementation cost Government 15.96 18.00 Beneficiaries 9.43 10.66 ADB loan 35.89 39.00 CCF grant 1.00 0.93 Total implementation cost 62.28 68.59 Interest during construction costs Government 0 0 Beneficiaries 0 0 ADB loan 4.11 1.00 CCF grant 0 0 Total interest during construction cost 4.11 1.00 ADB = Asian Development Bank, CCF = Climate Change Fund. Note: Numbers may not sum precisely because of rounding. Source: Asian Development Bank. 3. Cost breakdown by project component ($ million) Component Appraisal Estimate Actual A. Base Cost 1. Sustainable forest plantation development and 53.45 63.61 rehabilitation 2. Strengthening forest insurance for natural risk mitigation 0.27 0.11 3. Capacity development for sustainable forest management 1.72 2.73 4. Project management support 2.14 2.14 Subtotal (A) 57.58 68.59 B. Contingencies 4.70 0.00 C. Financing Charges during Implementation 4.11 1.00 Total (A+B+C) 66.39 69.59 4. Project schedule Item Appraisal Estimate Actual 1. Silviculture Multifunction commercial plantation Start of afforestation March 2011 March 2010 Completion of afforestation December 2014 March 2017 Cash trees iv Item Appraisal Estimate Actual Start of work March 2011 March 2010 Completion of work December 2013 March 2017 Rehabilitation of low-efficiency plantations Start of rehabilitation June 2011 July 2010 Completion of rehabilitation December 2014 July 2017 2. Capacity Development Start of procurement March 2011 June 2011 Completion of procurement March 2017 August 2017 Start of training activities March 2011 March 2011 Completion of training activities September 2016 October 2017 Start of study tour September 2011 May 2011 Completion of study tour September 2015 October 2017 3. Project Management Start of project management training workshop March 2011 March 2011 Completion of project management training workshop September 2017 October 2017 5. Project performance report ratings Single Project Rating From 15 June 2011 to 31 March 2013 On Track From 1 April 2013 to 30 June 2013 Potential Problem From 1 July 2013 to 31 July 2018 On Track D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person-Days of Members Fact-finding 25–29 January 2010 3 12 e, f, p Inception 20–26 July 2011 3 16 f, d, g Review 1 27–31