Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 55660 - 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 AN ANHUI SHAYING RIVER CHANNEL IMPROVEMENT PROJECT Public Disclosure Authorized March 15, 2011 China and Mongolia Sustainable Development Unit Sustainable Development Department East Asia and Pacific Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective August 24, 2010) Currency Unit = RMB (Renminbi or Chinese Yuan) RMB1.00 = US$0.147 US$1.00 = RMB6.8003 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS AAES Anhui Academy of Environmental Sciences APAO Anhui Provincial Audit Office APEPB Anhui Provincial Environmental Protection Bureau APFD Anhui Provincial Finance Department APMO Anhui Project Management Office APPSCIG Anhui Provincial Port & Shipping Construction Investment Group Co. Ltd. APPSMB Anhui Provincial Port and Shipping Management Bureau APTD Anhui Provincial Transport Department BCR Benefit-cost Ratio CFAA Country Financial Accountability Assessment CNAO China National Audit Office CPS Country Partnership Strategy CQS Selection Based on Consultants‟ Qualifications DA Designated Account DO Development Objective EIRR Economic Internal Rate of Return EMP Environment Management Plan FM Financial Management FMM Financial Management Manual FMS Financial Management Specialist FMSB Financial Management Sector Board FSL Fixed-Spread Loan GHG Greenhouse Gases GOC Government of China IBRD International Bank for Reconstruction and Development ICB International Competitive Bidding ICR Implementation Completion and Results Report IDA International Development Association IP Indigenous Peoples IWT Inland Waterway Transport LIBOR London InterBank Offered Rate MOT Ministry of Transport NCB National Competitive Bidding NIWPP2020 National Inland Waterways and Ports Plan to 2020 O&M Operation and Maintenance RAP Resettlement Action Plan RIS River Information Systems RMB Renminbi or Yuan (Chinese Currency) RPF Resettlement Policy Framework RP Resettlement Plan SBD Standard Bidding Document SOE Statement of Expenditures SSS Single-Source Selection SSSRI Shanghai Ship & Shipping Research Institute TA Technical Assistance VSL Variable-Spread Loan WAs Withdrawal Applications Vice President: Mr. James W. Adams, EAPVP Country Director: Mr. Klaus Rohland, EACCF Country Manager: Mr. Klaus Rohland, EACCF Sector Managers: Mr. Ede Jorge Ijjasz-Vasquez, EASCS, and Mr. Vijay Jagannathan, EASIN Task Team Leaders: Mr. Wenlai Zhang, EASCS, and Mr. Jian Xie, EASER CHINA China: Anhui Shaying River Channel Improvement Project CONTENTS Page I. STRATEGIC CONTEXT AND RATIONALE ..............................................................1 A. Country and sector issues ......................................................................................................1 B. Rationale for Bank involvement ............................................................................................3 C. Higher level objectives to which the project contributes .........................................................3 II. PROJECT DESCRIPTION.............................................................................................4 A. Lending instrument ...............................................................................................................4 B. [If Applicable] Program objective and Phases ........................................................................4 C. Project development objective and key indicators ..................................................................4 D. Project components ...............................................................................................................4 E. Lessons learned and reflected in the project design.................................................................5 F. Alternatives considered and reasons for rejection ...................................................................6 III. IMPLEMENTATION .................................................................................................6 A. Institutional and implementation arrangements ......................................................................6 B. Monitoring and evaluation of outcomes/results ......................................................................7 C. Sustainability ........................................................................................................................7 D. Critical risks and possible controversial aspects .....................................................................8 E. Loan/credit conditions and covenants ....................................................................................9 IV. APPRAISAL SUMMARY ...........................................................................................9 A. Economic and financial analyses ...........................................................................................9 B. Technical ..............................................................................................................................9 C. Fiduciary............................................................................................................................. 10 D. Social.................................................................................................................................. 10 E. Environment ....................................................................................................................... 11 F. Safeguard policies ............................................................................................................... 11 G. Policy exceptions and readiness ........................................................................................... 12 Annex 1: Country and Sector or Program Background ....................................................... 13 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ................. 18 Annex 3: Results Framework and Monitoring ..................................................................... 19 Annex 4: Detailed Project Description.................................................................................. 22 Annex 5: Project Costs .......................................................................................................... 27 Annex 6: Implementation Arrangements ............................................................................. 28 Annex 7: Financial Management and Disbursement Arrangements ................................... 31 Annex 8: Procurement Arrangements .................................................................................. 38 Annex 9: Economic and Financial Analysis .......................................................................... 41 Annex 10: Safeguard Policy Issues ....................................................................................... 45 Annex 11: Project Preparation and Supervision .................................................................. 54 Annex 12: Documents in the Project File .............................................................................. 55 Annex 13: Statement of Loans and Credits .......................................................................... 56 Annex 14: Country at a Glance ............................................................................................. 60 Annex 15: Maps (IBRD Nos. 37399, 37400 and 37401) ........................................................ 62 CHINA CHINA: ANHUI SHAYING RIVER CHANNEL IMPROVEMENT PROJECT PROJECT APPRAISAL DOCUMENT EAST ASIA AND PACIFIC EASCS Date: March 15, 2011 Team Leader: Wenlai Zhang / Jian Xie Country Director: Klaus Rohland Sectors: Ports, waterways and shipping Sector Manager/Director: Ede Jorge Ijjasz- (100%) Vasquez Themes: Water resource management (50%); Infrastructure services for private sector development (20%); Other rural development (20%); Climate change (10%) Project ID: P118647 Environmental category: Full Assessment Lending Instrument: Sector Investment and Joint IFC: Maintenance Loan Joint Level: Project Financing Data [X] Loan [ ] Credit [ ] Grant [ ] Guarantee [ ] Other: For Loans/Credits/Others: Total Bank financing (US$ million): 100.00 Proposed terms: The loan will be payable in 20 years, including 6 years of grace period, annuity repayment at six-month LIBOR-based US Dollar plus variable spread, and with all conversion options. Financing Plan (US$ million) Source Local Foreign Total Borrower 191.14 0.00 191.14 International Bank for Reconstruction and 0.00 100.00 100.00 Development Financing Gap 0.00 0.00 0.00 Total: 191.14 100.00 291.14 Borrower: The People‟s Republic of China Responsible Agency: Anhui Provincial Transport Department 8th Floor, Huayi Mansion No. 95 Shouchun Road Hefei, Anhui Province China Tel: (86-551) 262-9089 Fax: (86-551) 263-0290 E-mail: [email protected] Anhui Provincial Ports & Shipping Construction and Investment Group No.1157, Changjiang East Road Hefei, Anhui Province China Tel: (86-551) 429-9912 Fax: (86-551) 429-9522 E-mail: [email protected] Estimated disbursements (Bank FY/US$ million) FY 2012 2013 2014 2015 2016 2017 Annual 10.00 15.00 20.00 25.00 25.00 5.00 Cumulative