Document of The World Bank Public Disclosure Authorized Report No: ICR00004259 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-76920, IBRD-79370) ON A Public Disclosure Authorized LOAN IN THE AMOUNT OF SDR 63 MILLION (US$ 150 MILLION EQUIVALENT) TO THE PEOPLE’S REPUBLIC OF CHINA FOR A YUNNAN URBAN ENVIRONMENT PROJECT Public Disclosure Authorized April 23, 2018 Global Water Practice China Country Management Unit East Asia and Pacific Region Public Disclosure Authorized The World Bank (P096812) ABBREVIATIONS AND ACRONYMS AF Additional Financing COD Chemical Oxygen Demand FY Fiscal Year FYP Five-Year Plan GEF Global Environment Facility IBRD International Bank for Reconstruction and Development IDA International Development Association ICR Implementation Completion Results Report ILBM Integrated Lake Basin Management IO Intermediate Outcome Indicator ISR Implementation Status and Results Report M&E Monitoring & Evaluation MTR Mid-Term Review MS Moderately Satisfactory MU Moderately Unsatisfactory O&M Operation & Maintenance PAD Project Appraisal Document PDO Project Development Objective PIU Project Implementation Unit PMO Project Management Office QEA Quality at Entry Assessment QSA Quality of Supervision Assessment RF Results Framework RMB Renminbi S Satisfactory SDR Special Drawing Rights SIL Specified Investment Loan SWM Solid Waste Management TA Technical Assistance UNESCO United Nations Educational, Scientific, and Cultural Organization USD United States Dollar WTP Willingness To Pay WWTP Wastewater Treatment Plant Senior Global Practice Director: Guang Zhe Chen Practice Manager: Sudipto Sarkar Project Team Leader: Joanna Masic ICR Authors: Scott Moore Yan Li ii The World Bank (P096812) CHINA Yunnan Urban Environment Project CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph 1. Project Context, Development Objectives and Design ............................................................ 1 2. Key Factors Affecting Implementation and Outcomes ........................................................... 8 3. Assessment of Outcomes ....................................................................................................... 18 4. Assessment of Risk to Development Outcome ..................................................................... 29 5. Assessment of Bank and Borrower Performance .................................................................. 29 6. Lessons Learned .................................................................................................................... 31 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners........................ 32 Annex 1. Project Costs and Financing ....................................................................................... 34 Annex 2. Outputs by Component .............................................................................................. 36 Annex 3. Economic and Financial Analysis .............................................................................. 40 Annex 4. Bank Lending and Implementation Support/Supervision Processes.......................... 41 Annex 5. Beneficiary Survey Results ........................................................................................ 42 Annex 6. Stakeholder Workshop Report and Results ............................................................... 43 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR .................................. 44 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders .................................... 57 Annex 9. List of Supporting Documents ................................................................................... 58 MAP…………………………………………………………………………………................59 iii The World Bank (P096812) A. BASIC INFORMATION Yunnan Urban Country: China Project Name: Environment Project Project ID: P096812 L/C/TF Number(s): IBRD-76920,IBRD-79370 ICR Date: 04/30/2018 ICR Type: Core ICR Financing Instrument: SIL Borrower: CHINA Original Total USD 90.00M Disbursed Amount: USD 130.70M Commitment: Revised Amount: USD 130.70M Environmental Category: A Implementing Agencies: Yunnan Provincial Environment Protection Bureau - Foreign Financed PMO Cofinanciers and Other External Partners: B. KEY DATES Process Date Process Original Date Revised / Actual Date(s) Concept Review: 09/26/2006 Effectiveness: 09/30/2009 12/03/2007 Appraisal: Additional Financing: 05/27/2010 Approval: 05/05/2009 Restructuring(s): 06/15/2015 12/15/2013 Mid-term Review: 05/31/2013 04/30/2017 Closing: 06/30/2015 C. RATINGS SUMMARY C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Development Outcome: Substantial Bank Performance: Moderately Satisfactory Borrower Performance: Moderately Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Moderately Unsatisfactory Government: Moderately Satisfactory iv The World Bank (P096812) Implementing Quality of Supervision: Moderately Satisfactory Moderately Satisfactory Agency/Agencies: Overall Bank Overall Borrower Moderately Satisfactory Moderately Satisfactory Performance: Performance: C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments (if Indicators Rating Performance any) Potential Problem Project at No Quality at Entry (QEA): None any time (Yes/No): Problem Project at any time Quality of Supervision Yes None (Yes/No): (QSA): DO rating before Moderately Satisfactory Closing/Inactive status: D. SECTOR AND THEME CODES Original Actual Major Sector/Sector Social Protection Social Protection 18 18 Water, Sanitation and Waste Management Other Water Supply, Sanitation and Waste 18 18 Management Public Administration - Water, Sanitation and Waste 28 28 Management Waste Management 18 18 Sanitation 18 18 Major Theme/Theme/Sub Theme Environment and Natural Resource Management Environmental Health and Pollution Management 45 45 Air quality management 15 15 Soil Pollution 15 15 Water Pollution 15 15 Environmental policies and institutions 5 5 Water Resource Management 5 5 Water Institutions, Policies and Reform 5 5 v The World Bank (P096812) Urban and Rural Development Cultural Heritage 7 7 Urban Development 38 38 Urban Infrastructure and Service Delivery 38 38 E. BANK STAFF Positions At ICR At Approval James W. Adams Regional Vice President: Victoria Kwakwa David R. Dollar Country Director: Bert Hofman Keshav Varma Practice Manager: Sudipto Sarkar Takuya Kamata Task Team Leader(s): Joanna Masic ICR Team Leader: Joanna Masic Senior Global Practice Director: Guang Zhe Chen Co Task Team Leader1: Shunong Hu Co Task Team Leader2: Scott Michael Moore ICR Primary Author: Scott Michael Moore ICR Author: Yan Li F. RESULTS FRAMEWORK ANALYSIS Project Development Objectives (from Project Appraisal Document) To assist Yunnan Province in improving the effectiveness and coverage of critical urban infrastructure services in selected counties and 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. Revised Project Development Objectives (as approved by original approving authority) PDO was not revised. (a) PDO Indicator(s) vi The World Bank (P096812) Original Formally Actual Value Target Values Baseline Revised Achieved at Indicator (from Value Target Completion or approval Values Target Years documents) Indicator 1 : People in urban areas provided with access to wastewater services (cumulative) Indicator 1 : People in urban areas provided with access to wastewater services (cumulative) Value Value quantitative or 350,000 806,000 828,800 quantitative or Qualitative) n/a Qualitative) Date achieved 12/31/2009 n/a 04/30/2017 04/07/2017 Date achieved Comments 103% achieved. Comments (incl. % Note: Includes Lijiang, Huaping, Qiubei, Guangnan, Yanshan, & Zhaotong. (incl. % achievement) PO-1 added at restructuring so no original target value available. achievement) Indicator 2 : People in urban areas with access to solid waste management services (cumulative) Indicator 1 : People in urban areas with access to solid waste management services (cumulative) Value Value quantitative or 182,000 448,000 455,000 quantitative or Qualitative) n/a Qualitative) Date achieved 12/31/2009 n/a 04/30/2017 04/07/2017 Date achieved Comments 102% achieved. Comments (incl. % PO-2 added at restructuring so no original target value available. (incl. % achievement) achievement) Indicator 3 : People in urban areas provided with access to water services (cumulative) Indicator 1 : People in urban areas provided with access to water services (cumulative) Value Value quantitative or 319,000 404,000 502,000 quantitative or Qualitative) n/a Qualitative) Date achieved 12/31/2009 n/a 04/30/2017 04/30/2017 Date achieved Comments 124% achieved. Comments (incl. % Note: Includes Zhaotong City and Qiubei County . PO-3 added at restructuring so no original target (incl. % achievement) value available. achievement) Indicator 4 : Improved capacity for Dianchi Lake Basin management Indicator 1 : Improved capacity for Dianchi Lake Basin management Value Value quantitative or Lessons included quantitative or Qualitative) Lack of in sector 13th Qualitative) Improved Plan completed. Lessons information to FYP, information management and incorporated