China - Xiaolangdi Resettlement Project

Document of The World Bank FOR OnCAL USE ONLY Report N. P-6205-CHA MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 79.9 MILLION TO THE PEOPLE' S REPUBLIC OF CHINA FOR A XIAOLANGDI RESETTLEMENT PROJECT MARCH 25, 1994 TMs 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. CUMRENCY RQUTVALENTS (as of January 1, 1994) Currency Unit - Yuan (Y) $1.00 M Y 8.'0 Y 1.00 = $0.115 WEIGHTS AND MEASURES 1 meter (m) = 3.28 feet (ft) 1 kilometer (km) - 0.62 miles 1 hectare (ha) = 15 mu 1 ton (t) = 1,000 kg = 2,205 pounds 1 kilogram (kg) - 2.2 pounds f 2 jin ABBREVIATIONS AND ACRONYMS EAS Environmental Assessment Summary MOP Ministry of Finance MWR Ministry of Water Resources PLG Project Leading Groups PM0 Project Management Office RO Resettlement Office SPC State Planning Commission YRCC Yellow River Conservancy Commission YRCCRO Yellow River Conservancy Commission Resettlement Office YRWHDC Yellow River Water and Hydropower Development Corporation FISCAL YEAR January 1 - December 31 FOR OFFICIAL USE ONLY CHINA XIAOLANGDT RESETTLEMENT PROJECT Credit and Proiect Summary Borrower: People's Republic of China. Beneficiary: Henan and Shanxi Provinces. Amount: SDR 79.9 million ($110 million equivalent). Terms Standard, with 35 years' maturity. Financinag Plant Local Foreisn Total -------- $ million -------- Central Government 322.3 37.6 359.9 Provincial Governments 0.2 0.1 0.3 Enterprises 27.7 20.2 47.9 People's Construction Bank 27.7 25.5 53.2 IDA 40.3 69.7 110.0 Total 418.2 153.1 571.3 Economic Rate of Return: 32 percent Poverty Category: Not applicable. Staff Appraisal Report: Report No. 12527-CHA Navs: IBRD 25518 - Resettlement Macro Site Location and Dam Sites IBRD 25554 - Population Density and Resettlement Sites This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not othemise be disclosed without World Bank authorization. MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE PEOPLE'S REPUBLIC OF CHINA FOR THE XIAOLANGDI RESETTLEMENT PROJECT 1. I submit for your approval the following memorandum and recommends- tion on a proposed Credit to the People's Republic of China for SDR 79.9 mil- lion ($110 million equivalent) to help finance the Xiaolangdi Resettlement Project. The proposed credit would be for a term of 35 years under Standard IDA Terms. The foreigs exchange risk will be borne by the Central Government. 2. Background. The struggle to tame the Yellow River for the benefit of millions of people has a prominent place in the earliest chapters of Chinese history. The fertile floodplain of the river has supported several great dynasties of China and is regarded as the cradle of Chinese civiliza- tion. However, the lands along the river have also been the scene of great human suffering from floods, droughts, and famines. In 1938 and the following years, for example, about 900,000 people were killed due to breaching of the flood dikes. During the last three decades, a range of proposals has been put forward to reduce the hazards of flooding and reduce sediment deposition along the lower reach of the Yellow River, including construction of the Xiaolangdi Multipurpose Dam. Each alternative to Xiaolangdi possesses significant short- comings, and involves a great deal more resettlement (300,000 to 950,000 people) than does the Xiaolangdi Dam, which will provide flood and ice-jam protection to 103 million people, and will prevent the further silting up of the lower reaches of the river for at least the next 20 years. 3. In March 1992, the Bank and the Yellow River Conservancy Commission (YRCC) undertook the Yellow River Investment Planning Study (Report No. 11146- CRA, June 30, 1993). Among other things, the study established that the Xiaolangdi Multipurpose Dam is the most urgent, and the most economically viable multipurpose project proposed in the basin. Without it, the specter of a major flood will continue to overhang the entire lower reach. 4. Creation of the 130 km long reservoir behind the dam requires the relocation of about 171,000 people during the next 18 years (1994-2011), i.e., 154,000 during 1994-2000 and 17,000 during 2010-11. In addition, the con- struction zone population in the dam site area is 9,944. Resettlement of this group has already started and, as of October 1993, over 40 percent had been resettled. All resettlement of this group is expected to be completed by June 1994. This portion of the resettlement has not been included in this project as most of the activities would be completed prior to the processing of the project. The total population directly affected and included in this project (1994 to 2000) is 154,000 people. The resettlement of the remainder between 2010 and 2011 will be undertaken by the Government under its own long-term program. Another 300,000 people in the host areas receiving resettlers would also be indirectly affected. Many host communities regard the resettlement as an opportunity for long-awaited industrialization, and therefore welcome the resettlers and related investments. - 2 - 5. Resettlement Review. A Bank review of resettlement experience in China (China: Involuntary Resettlcient, Report No. 11641-CHA, June 8, 1993) and other detailed reviews of resettlement indicates the following: (a) Chinese national and provincial law and regulations now substantially meet the requirements of both the Bank's operational directive on resettlement and the OECD resettlement guidelines. The applicable laws and regulations for such projects call for full protection of resettlers and provide administra- tive and compensation mechanisms to facilitate successful resettlement; (b) the record on recent projects indicates that the Chinese authorities now treat resettlement as a long-term process requiring sustained attention even up to five to ten years after physical resettlement activities have been com- pleted; and (c) improving or maintaining the standard of liv:ng of affected people is clearly accepted as a key objective in resettlement plans. For example, in the Shuikou Hydroelectric Projects I and II (Loans 2775-CHA and 3515-CHA) resettler incomes have exceeded their original incomes in real terms within the first year of resettlement. Even under the Xiaolangdi Dam-site construction area resettlement, which started in August 1952, the income lev- els of about 2,000 people resettled in four villages in 1992 have exceedeQ their previous incomes by 10 percent to as much as 60 percent, by October 1993. 6. On the whole, there is unanimity among all analysts of resettlement in China that the central government has demonstrated a high degree of commit- ment to successful resettlement. Policies with clear developmental objectives have been formulated, organizational responsibilities have been clearly delin- eated, increasing amounts of resources have been allocated, and programs for long-term training on resettlement have been initiated. 7. Lessons Learned from Previous Bank Group Operations. Out of the 38 projects with resettlement requirements now in the Bank Group portfolio, 14 have resettlement requirements involving about 251,000 people. Only three of the projects involve reservoir resettlement. Underestimation of costs in general and inflation in particular has been a recurring problem in Chinese projects. In the Bank-financed Lubuge (Loan 2382-CHA) and Shuikou Hydroelec- tric Projects I and II, resettlement cost overruns reached 100 percent. In the Daguangba Project (Loan 3412-CRA and Credit 2305-CHA) approved in FY92, the need for a 40 percent budget increase has already become clear. However, the budget shortfalls have been rapidly remedied within the year of shortfall. Chinese resettlement experts have also indicated that diverting resources from resettlement to civil works during the first three quarters of the financial year, when money is slow coming in, has been common. However, they indicated that regulations were prepared in 1992 to ensure that funds marked for reset- tlement were to be used only for the allocated purpose. 8. Rationale for Bank Group Involvement. This project represents one of the first large-scale resettlement efforts with major Bank Group involve- ment throughout the design phase. IDA involvement has resulted in significant contributions to developing realistic project standards, i.e., cost estimates now include price increases; resettlement costs are not merely based on com- pensation costs of existing inundated settlements but on actual costs of development of new areas; the government has now adopted a transparent way of providing cash compensation to resettlers using signed contracts; the govern- ment has also adopted compensation for those affected indirectly--migrant - 3 - workers, temporary workers, squatters, etc.; grievance procedures are also more transparent. IDA involvement overall has significantly raised the stan- dards of resettlement planning and made government procedures more transpar- ent. By remaining involved through partial financing of the activity of resettlement as a separate project, with supervision focused on resettlement as a distinct type of rural development implementation, it is hoped to realize the achievement of completely successful resettlement. 9. The proposed project is consistent with the Bank Group's Country Assistance Strategy for China presented to the Board in August 1993. The strategy places special emphasis on Bank Group involvement in the resettlement related to the larger water development projects that are more likely to put pressure on Chinese mechanisms for resettlement and planning. Such a strategy has generally produced very satisfactory results in recent years. This sector will therefore continue to be an area of active involvement for the Bank Group. That this project has been designed as a free-standing resettlement project--rather than a project component--is indicative of the importance the Bank Group and the Government attach to the resettlement effort associated with the Xiaolangdi dam construction project. In addition, the four main components of the proposed project--residential and infrastructure reconstruc- tion for villages and towns, transfer of resettlers, planning, design and institutional support, and agriculture and industrial livelihood development-- together will ensure that the key aspects relating to a major relocation of population, as is required for this project, will be adequately addressed. 10. Prolect Objectives. The objective of the project is to resettle and restore and improve the livelihoods of 154,000 people directly and 300,000 people indirectly affected by construction of the Xiaolangdi Multipurpose Dam, and to minimize the adverse effects of social. adjustment to their new environ- ment. The project will also create at least 20,500 new nonagriculture jobs for resettlers switching out of agriculture. 11. Project Description. The project comprises four major components: (a) residential and infrastructure reconstruction for villages and towns--this component will consist of constructing all infrastructure including housing for 276 villages and 10 towns for the resettlers. Host communities will receive substantial infrastructure improvements. A total of 35,000 new houses, 1,750 km of roads and 632 km of power lines, telephone and broadcast lines, water supplies and other facilities will be constructed; (b) transfer of resettlers--this component makes special provisions for transfer of all salvageable materials and personal belongings, factory machinery and other goods from the present to the new sites. The transport will be contracted to local trucking companies that will move the goods at an appropriate time; (c) livelihood development--for agricultural livelihood reestablishment for 37,400 farmers, 11,100 ha of land will be developed, of which about 7,000 ha will be irrigated and the rest will be dryland. A total of 252 existin& small to very small industries and commercial enterprises, presently employIng 8,200 workers, will be relocated and reconstructed and the workers will move with these industries. Eixhty-four new and expanded county (31) and township and village industries (TVEs) (53) will be established to absorb the 20,500 reset- tlere who will be switching from agricultural employment. The county-level industries that will absorb about 8,900 resettlers during the first phase of the project (1994-96) are larger, in most cases expansions of existing indus- tries, financially secure and make little demand on resettlement program bud- gets. These industries are in construction materials, food and drink, fertili- zer, etc., whose products will be sold in the local markets, which are very stable. The TVEs are smaller-scale industries, which are virtually private industries and are less capital-intensive, give quicker payoffs and make use of the entrepreneurial abilities as well as "unds of the resettlers. Voca- tional training will be provided under the project and by the industries; and (d) planning, design, monitoring and institutional component support--the institutional support component will consist of: increasing the staff of all county resettlement offices and the Yellow River Conservancy Commission Reset- tlement Office (YRCCRO); expanding and building new resettlement offices (ROs) at the various sites; procuring equipment and vehicles; and training county resettlement staff and farmers in cash-crop, irrigated, dryland, aquaculture and other specialist agricultural requirements. 12. Prolect Costs and Financing. The total cost of implementing the resettlement program would be $571.3 million, of which $153.1 million is the foreign exchange component. The cost for residential and infrastructure con- struction, including housing, is $235.7 million (50 percent of base total) or $1,530 per capita on average. The cost of livelihood development is $216.6 million, or $1,402 per capita. The total cost of resettlement is $3,338 per capita. Bank Group assistance would be an IDA Credit of SDR 79.9 million ($110 million equivalent) and would cover 19.3 percent of total project costs. The balance of $461.3 million equivalent would be derived from the national budget provided for compensation (63.0 percent of project costs), Henan/Shanxi provincial budgets (0.1 percent), enterprise contributions (8.3 percent), and People's Construction Bank of China loans (9.3 percent). To ensure early start-up, retroactive financing up to $10 million is proposed for expenditures made for office equipment, vehicles, office buildings, and civil works for resettlement below the 180 m level made between October 1, 1993 and the date of signing of the Development Credit Agreement. Project costs and the finan- cing plan are indicated in Schedule A. The amounts and methods of procurement and disbursements, and the disbursements schedule, are shown in Schedule B. A timetable of key project processing events and the status of Bank Group opera- tions in China are given in Schedules C and D, respectively. Maps 25518 and 25554 are also attached. The Staff Appraisal Report No. 12527-CHA, dated March 25, 1994, is being distributed separately, as is that for the Xiaolangdi Multipurpose Project (Report No. 12329-CRA). 13. Project Implementation. The Ministry of Water Resources (MWR) would have overall responsibility for the project. A Central Project Leading Group (PLG) has been established under the leadership of the State Council consisting of vice-ministers and directors from MWR, the Ministry of Finance (MOF), the State Planning Commission (SPC), and Vice Governors of Henan and Shanxi Provinces to oversee management, resolve policy matters and solve interdepartmental/interagency problems. The executing agency for the project will be the Yellow River Conservancy Commission through its Resettlement Office (YRCCRO) which will coordinate with the provincial ROs of Henan and Shanxi Provinces. All executing agencies are in place and have been imple- menting the dam-site resettlement of 9,944 people and completing detailed pre- paratory work for the project. - 5 - 14. Project Sustainability. Sustainability has been taken into account during the design of the resettlement. The carrying capacity of all areas where resettlers and hosts live has been evaluated. Most of the resettlement is in lower population density areas where there is capacity to absorb more people and cultivate more land for agriculture (see Map 25554). In addition, about 36 percent of the agricultural labor force (mostly young people) will transfer to industrial jobs during the eight-year construction period and thereby relieve the pressure on land-based settlements, as well as substan- tially increasing family incomes. 15. Aareed Actions. Assurances were obtained from the Government that it would: (a) publicize the availability of grievance procedures to reset- tlers and hosts and implement grievance determinations; (b) ensure that con- struction and filling of the Xiaolangdi Multipurpose Dam, execution of the Xiaolangdi Resettlement Program, and completion of the major agricultural works are appropriately synchronized in a manner satisfactory to IDA (in addi- tion, provision would be made for cross-effectiveness and cross-default with the Xiaolangdi Multipurpose Project); and ensure that the water level of the Xiaolangdi Dam is not permitted to rise beyond 265 meters before the final details of the resettlement arrangements for the last stage (2010-11) are approved by IDA; (c) establish by November 30, 1994 and thereafter maintain with a balance of not less than the equivalent of three months' estimated noncredit project expenditures, a revolving fund to finance all expenditures under the project that are to be financed out of the Borrower's budgetary funds, if there is a delay in the availability of such funds; (d) ensure that all activities under the Project comply with environmental st&ndards and guidelines satisfactory to the Association and implement the Environmental Management Plan in a manner acceptable to the Association, including all nec- essary measures to minimize and to mitigate any adverse environmental impacts; (e) continue to employ an independent monitoring institution acceptable to the Association to evaluate at least semiannually the socioeconomic progress of those resettled under the Project and those host communities affected by resettlement; (f) employ an international Environment and Resettlement Panel of independent experts with composition and functions satisfactory to the Association to conduct semiannual reviews of the implementation of the Reset- tlement Plan and the Environmental Management Plan and furnish promptly to the Association the findings and recommendations for follow up action; (g) acting through MWR, establish by December 31, 2000 and maintain a Reservoir Area Support Fund to guarantee maintenance of incomes of resettlers and hosts and operate such Fund until it is no longer necessary; and (h) ensure that all necessary governmental project approvals for industrial projects under the Project are obtained prior to the approval by the relevant resettlement office of resettlement funding. 16. Environmental Aspects. An environmental assessment summary (EAS) for both the Xiaolangdi Multipurpose Project and the Resettlement Project was completed as one document by the Government and circulated to the Board on April 15, 1993. Two major concerns regarding the social environment are that the affected relocatee and host families (a) will not be disadvantaged by the dam construction, and (b) will share in the project benefits. The summary environmental review indicates adequate housing, housing amenities and exter- nal support facilities as well as adequate earning potential for the affected population would be provided. Lost income will be adequately compensated. - 6 - Host communities will benefit through the provision of improved water supply, health clinics, roads and schools. Acceptance of relocatees by the host com- munity is ensured through elaborate consultation and negotiation procedures; relocation within the same ethnic group is guaranteed, as well as relocation within the minimum feasible distance. An acceptable grievance/complaints system has been established and resources for environmental monitoring accord- ing to an agreed action plan are provided for. In addition, a public health and sanitation management program has been included to ensure that there is no spread of malaria, hemorrhagic fever or enteritic diseases. 17. Effects on the natural environment are expected to be marginal for the agricultural relocation component, since relocatees will move mainly to already existing agricultural areas where they will be helped to improve soil fertility and moisture conservation. No adverse effects are expected with regard to wildlife and existing forests; in fact, some of poor and totally bare land in the mountain areas will revert to production forest for erosion control, timber, fuel and fodder production. The relocated and reconstructed enterprises and mines will upgrade their production technologies and will have to adhere to much stricter environmental standards compared to the require- ments in place during original construction. Some archaeological relies that would be affected in the reservoir area will be removed to new areas by the Henan Provincial Archeological Bureau. 18. Project Benefits and Livelihood Development. At full development, the project is expected to expand the irrigated and dryland farming area by 11,000 ha. The project would benefit about 0.5 million people and create about 75,200 full-time jobs and 37,400 part-time jobs with significant con- tribution toward increasing incomes of people. While all elements of the resettlement project are not susceptible to economic analysis, economic, financial, and commercial analyais of livelihood development programs for the resettler (and host) communities has been done to provide assurance that those affected by the larger project will achieve living standards at least as high as they would without the project. This analysis is easier for more highly planned programs--such as the large-scale irrigation and land development and county industries, more difficult for less highly planned ones--small-scale township land-sharing schemes and TVEs. The large-scale land development schemes show economic rates of return of 11 to 19 percent, while the county industries show economic rates of return from 37 percent to over 70 percent, averaging about 45 percent. The weighted average economic rate of return for the project is 32 percent. The financial rates of return for the county industries average about 32 percent. Large, existing enterprises in the host communities provide a relatively high level of financial security, and make relatively small demands on resettlement program budgets. 19. Industrial development investment proposals, including large-scale and TVE investments, already equal the target number of about 20,500 new industrial jobs for project resettlers. In addition, many new jobs have already been created by even smaller investments (e.g., in commercial activi- ties) by the resettlers themselves, using the surplus of their (thus far) rather generous housing and immovable asset compensation payments over the costs of their new settlements. In sum, nonagricultural employment is quite certain to exceed official targets. In addition, agricultural jobs are also - 7 - assured since all the sites have been agreed and contracts have been drawn up with host counties. 20. Based on these development programs, total resettler incomes gener- ated from agriculture, sideline activity and industrial sources would attain average per capita growth of at least 6.1 percent per year, for host popula- tions somewhat less (2.4 percent). This is not particularly rapid compared to recent income increases in China's booming coastal areas, but it is faster than recent income growth rates of China's rural population. Income increases of 10 percent to 60 percent per annum in the first year are already reflected in the most recent Xiaolangdi Dam site resettlement of 2000 people (see para. 5). 21. Riska. The major risks are the possible lack of timeliness of annual counterpart funds for the project and possible failure to achieve resettler or host livelihood targets in terms of incomes or jobs due to lack of viability of some of the sites and industries in the outer years of reset- tlement. In order to ensure the timeliness of budget, the Government is required to set up a revolving fund with the equivalent of three months' local counterpart funding within the first year of the project. Over the longer term, 1WR will have a special Reservoir Area Support Fund, which would guaran- tee minimum incomes to households that are unable to satisfy their needs due to farm and nonfarm livelihood failures. If industrial units go bankrupt, the agreements signed in advance provide for relocatees to be compensated or inte- grated into other units. In addition, if sites are not viable, alternative sites have been identified that will act as safety nets. 22. Recommendation. I am satisfied that the proposed credit would com- ply with the Articles of Agreement of the Association and recommend that the Executive Directors approve the proposed credit. Lewis T. Preston President Attachments Washington, D.C. March 25, 1994 - 8- Schedule A CHI9 XIAQLANGDI RESETTLEMENT PROJECT Estimated Costs and Financing Plan ($ million) Local Foreign Total Estimated Proiect Cost a Resettlement Planning and Design 7.1 3.4 10.5 Infrastructure and Housing 186.9 48.8 235.7 Transfer of Resettlers 6.0 - 6.0 Livelihood Development Agriculture Development Wenmengtan Irrigation 27.6 14.1 41.7 Houhe Dam and Irrigation 9.2 4.6 13.8 Downstream Development 1.8 - 1.8 Agricultural Support 8.1 - 8.1 Industrial Development 90.7 53.3 144.0 Monitoring 5.4 1.7 7.1 Subtotal 342.8 125.9 468.7 Environmental Management Plan 2.7 0.8 3.5 Base Cost 345.5 126.7 472.2 Physical Contingency 23.8 8.6 32.4 Price Contingency 48.9 17.8 66.7 Total Project Cost 418.2 1531 571.3 Financing Plan Central Government 322.3 37.6 359.9 Provincial Governments 0.2 0.1 0.3 Enterprises 27.7 20.2 47.9 People's Construction Bank 27.7 25.5 53.2 IDA 40.3 69.7 110.0 Total 571.3 LA Project is exempt from taxes and duties. -9- Schedule B Page 1 XIAOLANGDI RESETTLEMENT PROJECT Summary of Proposed Procurement Arrangements Procurement method ICB LCB Other NIF Total Civil works - 94.0 32.2 63.8 190.0 (11.1) (11.3) (22.4) Housing - - 48.0 1.8 49.8 (27.4) (27.4) Construction materials 13.8 42.3 - - 56.1 (13.1) (31.7) (44.8) Agric. land improvement - 16.3 0.4 - 16.7 (6.0) (6.0) Equipment - - 1.2 179.2 180.4 (0.9) (0.9) Vehicles 3.0 - - - 3.0 (3.0) (3.0) Consultants (implemen- - - 3.2 - 3.2 tation) (1.2) (1.2) Training/institutional - - 1.5 - 1.5 support (1.0) (1.0) Environmental management - - 5.8 - 5.8 (1.2) (1.2) Monitoring - - 1.6 - 1.6 (1.1) (1.1) Admin/engineering - - 1.3 61.9 63.2 (1.0) (1.0) Total 16.8 1 306.7 571.3 (16.1) (48.8) (45.1) (110.0) NIP * Not IDA-financed. Notet Figures in parentheses are the respective amounts financed by IDA. Other procurement method refers to force account for works, shopping for equipment, and consultant services recruitment. - 10 - Schedule B Page 2 Disbursements Amount of Credit % of Expenditures Category (S million) to be financed Works/Land Improvement 27.0 60% Housing 24.5 60% Construction Materials 40.8 )100% of foreign expenditures, )100% of local expenditures Equipment 0.9 )(ex-factory cost) and 75% of )local expenditures for other Vehicles 3.0 )items procured locally. Consultants 3.4 100% Training 1.0 100% Environmental management (reservoir clearing/ cltural relics removal/ public health) 1.1 20% of expenditures Unallocated 8.3 Total 110.0 Estimated IDA Disbursements: IDA FY 1995 1996 1997 1998 1999 2000 2001 ----------------- ($ million) ----------------- Annual 15 15 25 30 15 7 3 Cumulative 15 30 55 85 100 107 110 - 11 - Schedule C CHINA XIAOLANGDI RESETTLEMENT PROJECT Timetable of Key Prolect Processinx Events (a) Time taken to prepare the project: 11 months (b) Prepared by: Government with assistance of consultants (c) First IDA mission: November 1992 (d) Appraisal mission departure: October 4, 1993 (e) Negotiations: February 1994 (f) Planned date of effectiveness: July 1994 (g) List of relevant PCRs and PPARs: None The project was prepared by the following: D. Gunaratnam (Irrigation Engi- neer/Task manager); J. M Voegele (Economist), Li Qun (Economist-Consultant); S. Gulyani (Urban Planner), A. Ghani (Anthropologist), Z. C. Lin (Anthropologist-Consultant), S. Ferguson (Resettlement Specialist-Consultant); M. Buitelaar, 0. Litjens (Industrial Specialists-Consultants); Jiang Ping, Zhang Weizhen (Irrigation/Groundwater Engineers-Consultants). Peer reviewers comprised W. Partridge, C. Diewald, B. Trembath, and M. Cernea. The Division Chief is Joseph Goldberg and the Acting Department Director is Zafer Ecevit. Schedule D Page 1 of 3 STATUS OF BANK GROUP OPERATIONS IN THE PEOPLE'S REPUBLIC OF CHINA A. STATEMENT OF BANK LOANS AND IDA CREDITS (As of December 31, 1993) Loan/ Amount (US$ million) Credit Bor- (net of cancellations) Number FY rower Purpose Bank IDA Undisb.(a) 21 loans and 38 credits have been fully disbursed. 1950.4 2190.9 Of which SECAL: 2967/1932 88 PRC Rural Sector Adj. 200.0 93.2 2501 85 PRC Changcun (Luan) CoaL Mining 79.5 10.6 2540 85 PRC Railway II 220.0 6.4 1664 86 PRC Technical Cooperation Credit II 20.0 4.2 2678/1680 86 PRC Third Railway 160.0 (70.0)(b) 34.6 2689 86 PRC Tianjin Port 130.0 * 11.0 2706 86 PRC Beitungang Thermal Power 225.0 - 6.1 2707 86 PRC Yantan Hydroelectric 52.0 * 0.5 2723/1713 86 PRC Rural Health & Preventive Med. 15.0 65.0 28.8 2784 87 PRC Shanghai Machine Tools 100.0 3.8 1764 87 PRC Xinjiang Agricultural Dev. * 70.0 2.8 2794/1779 87 PRC Shanghai Sewerage 45.0 100.0 36.2 2811/1792 87 PRC Beijing-TianJlin-Tangou Expressway 25.0 125.0 16.4 2812/1793 87 PRC Gansu Provincial Dev. 20.0 150.5 40.7 1835 87 PRC Planning Support & Special Studies - 20.7 7.4 2838 87 PRC Fertilizer Rationalization 97.4 - 2.2 2852 87 PRC Wujing Thermal Power 190.0 - 24.9 1871 88 PRC Rural Credit III 170.0 2.0 2877/1845 88 PRC Huangpu Port 63.0 (25.0)(b) 30.4 2907/1875 88 PRC Dalian Port 71.0 (25.0)(b) 3.7 1885 88 PRC Northern Irrigation - 103.0 20.1 2924/1887 88 PRC Coastal Lands Dev. 40.0 (6C.0)(b) 6.4 2943 88 PRC Pharmaceuticals 127.0 - 4.6 2951/1917 88 PRC Sichuan Highway 75.0 (50.0)(b) 48.4 2952 88 PRC Shaanxi Highway 50.0 1.1 1918 88 PRC Daxing An Ling Forestry 56.2 3.1 2955 88 PRC Beitungang II 165.0 * 25.6 2958 88 PRC Phosphate Dev. 62.7 13.2 2968 88 PRC Railway IV 200.0 - 50.5 1984 89 PRC Jiangxi Provincial Highway * 61.0 7.0 1997 89 PRC Shaanxi Agricultural Dev. * 106.0 35.2 2006 89 PRC Textbook Development 57.0 2.0 2009 89 PRC Integrated Reg. Health 52.0 19.7 3006 89 PRC Ningbo & Shanghai Ports 76.4 21.2 3007 89 PRC Xiamen Port 36.0 13.6 3022 89 PRC Tianjin Light Industry 154.0 93.9 3060/2014 89 PRC Inner Mongolia Railway 70.0 (80.0)(b) 30.7 2097 89 PRC Shandong Agriculture Dev. 109.0 7.7 3066 89 PRC Hubel Phosphate 137.0 - 97.1 3073/2025 89 PRC Shandong Prov. Highway 60.0 (50.0)(b) 26.4 3075 89 PRC Fifth Industrial Credit 300.0 - 134.0 2097 90 PRC Jiangxi Agric. Dev. * 60.0 19.7 2114 90 PRC Vocational & Tech. Educ. 50.0 11.5 2145 90 PRC National Afforestation * 300.0 133.5 2159 90 PRC Hebei Agricultural Dev. * 150.0 72.4 2172 91 PRC Mid-Yangtze Agricultural Dev. 64.0 24.1 3265/2182 91 PRC Rural Credit IV 75.0 200.0 81.0 3274/2186 91 PRC Rural Indust Tech (SPARK) 50.0 64.3 61.7 3286/2201 91 PRC Medium-Sized Cities Dev. 79.4 52.9 79.5 3288 91 PRC Shanghai Industrial Dev. 150.0 147.9 2210 91 PRC Key Studies Development * 131.2 57.7 2219 91 PRC Liaoning Urban Infrastructure 77.8 20.8 Schedule D Page 2 of 3 Loan/ Amount (US$ million) Credit Bor- (net of cancellations) Number FY rower Purpose Bank IDA Undisb.(a) 3316/2226 91 PRC Jiangsu Provt. Transport 100.0 (53.6)(b) 54.7 2242 91 PRC Henan Agricut. Dev. 110.0 79.7 3337/2256 91 PRC Irrig. Agricut. Intensif. 147.1 187.9 176.2 3387 92 PRC Ertan Hydroelectric 380.0 115.3 2294 92 PRC Tarim Basin * 125.0 88.2 2296 92 PRC Shanghai Metro Transport * 60.0 36.0 3406 92 PRC Railways V 330.0 238.7 3412/2305 92 PRC Daguangba Multipurpose 30.0 37.0 39.9 2307 92 PRC Guangdong ADP 162.0 129.5 3415/2312 92 PRC Beijing Environment 45.0 80.0 96.4 2317 92 PRC Infectious and Endemic Disease Cont * 129.6 103.1 3433 92 PRC Yanshi Thermal Power 180.0 - 104.0 2336 92 PRC Rural Water Supply and Sanitation - 110.0 78.5 2339 92 PRC Educ. Development in Poor Provs. * 130.0 92.5 3443 92 PRC Regional Cement Industry 82.7 77.2 3462 92 PRC Zouxian Thermal Power 310.0 283.2 3471 92 PRC Zhejiang Provincial Highway 220.0 178.8 2387 92 PRC Tianjin Urban Devt. & Envir. * 100.0 85.3 2391 92 PRC Ship Waste Disposal 15.0 15.2 2411 93 PRC Sichuan Agricultural Devt. 147.0 116.0 3515 93 PRC Shulkou Hydroelectric II 100.0 - 82.7 2423 93 PRC Financial Sector TA - 60.0 54.1 3530 93 PRC Guangdong Provincial Transport 240.0 213.8 3531 93 PRC Henan Provincial Transport 120.0 - 100.5 2447 93 PRC Ref. Inst'L and Preinvest. * 50.0 45.1 3552 93 PRC Shanghai Port Rest. and Devt. 150.0 147.0 2457 93 PRC Changchun Water Supply & Env. * 120.0 112.7 2462 93 PRC Agriculture Support Services * 115.0 110.4 3560/2463 93 PRC Taihu Basin Flood Control 100.0 100.0 171.1 2471 93 PRC Effective Teaching Services 100.0 99.6 3572 93 PRC Tianjin Industry II (c) 150.0 * 150.0 3582 93 PRC South Jiangsu Envir. Prot. (c) 250.0 250.0 2475 93 PRC Zhejiang Multicities Devt. 110.0 102.5 3581 93 PRC Railway VI 420.0 * 420.0 3606 93 PRC Tianhuangping Hydroelectric 300.0 - 300.0 3624/2518 93 PRC Grain Distribution 325.0 165.0 489.2 2522 93 PRC Environmental Tech. Assist. * 50.0 48.8 2539 94 PRC Rural Health Workers Devt. * 110.0 109.5 3652 94 PRC Shanghai Metro Transport II (c) 150.0 - 150.0 3681 94 PRC Fujian Provincial Highways (c) 140.0 140.0 3687 94 PRC Telecommunications (c) 250.0 - 250.0 Total 9870.6 6980.0 7378.9 of which has been repaid 790.2 5.6 Total now held by Bank and IDA 9080.4 6974.4 Amount sold: Of which repaid Total Undisbursed 4967.5 2411.4 7378.9 (a) As credits are denominated in SDRs (since IDA Replenishment VI), undisbursed SDR credit balances are converted to dollars at the current exchange rate between the dollar and the SDR. In some cases, therefore, the undisbursed balance indicates a dollar amount greater than the original principal credit amount expressed in dollars. (b) Credit fully disbursed. (c) Not yet effective. Schedule 0 Page 3 of 3 8. STATEMENT OF IFC INVESTMENTS (As of December 31, 1993) Invest- Type of Loan Equity Total ment No. FY Borrower Business --**** (US$ Miion) *****)* 813/2178 85/91 Guangzhou and Peugeot Automobile 15.0 4.5 19.5 974 88/93 China Investment Co. Investment 3.0 1.0 4.0 1020 88/92 Shenzhen China Bicycle 17.5 2.5 20.0 Bicycles Co. Ltd. Manufacture 1066 89 Crown Electronics Electronics 15.0 * 15.0 1119 89/93 Shenzhen Chronar Solar Solar (a) 2.0 3.0 5.0 Energy Energy 3423 93 Shenzhen PCCP Manufacturing 4.0 - 4.0 3150 93 Yantal Cement Cement 28.7 28.7 Not yet signed 93 JV Commercial Bank Banking - 7.5 7.5 Not yet signed 94 China Walden Mgt. Capital Mkts. * 7.5 7.5 Not yet signed 94 Dalian Glass Manufacturing 61.0 2.4 63.4 Total Gross Commitments 85.2 11.0 96.2 Less cancellations, terminations 17.9 - 17.9 repayment and sales Total Commitments now Held by IFC 67.3 11.0 78.3 Total Undisbursed 28.7 2.0 30.7 (a) Loan subsequently cancelled. 12/31/93 EA2DR - International Boundarles C A Province BoundqrTes China XIAOLANGDI RESETTLEMENT PROJECT Mongolia RESETTLEMENT MACRO SITE LOCATION AND DAM SITES * Yelow Sea Inner Mongolia Plain Ineror Basin2 4 Nn . ....,s... ..FenPai d. rMr Oda~~. it. t,o. u me daent 4.. 1. Tianqiao 9. Liujaxia Wei Plain 2. Wanjiazhai 10. Bapaia Flooded Areas and Dams 3. Oikou 11. Longyangsia B.t ~ oeno. aa omtam., 4. Longmen 12. Laxiwa LDongping Lake 1~X DIon Area ~ re Xiaolangdi 13. Lijiaxia z 6. Sanmenxia 14. Daxia Area Ploeded WDrs »teak El Edad.g~ Dam/Power Plant 7. Sanshungong 15. Qingtongxia <K Mbro Resetdement Site A Planned Dam/Power Plant 8. Yanguoxia 16. Daliushu 0200 400 Y - Internctioncl goundaries ~' . ~ , 1 v s Provincc Soundories China: Xiaolangdi Resettlement Project Population Density by County in Resettlement Areas 4r - - - - - - - yVI..,. Persons/KM < 100 Resetlement Villages0- 0 rhe bounderies colors 2M0 - nmatons an•n 1992-1994 (9,970 Persns °p °' • 1919 (10 es 400 -6M World gank Group ueydn Ment on the kgot K. 199721 (13,62 P s 6 - 8 oo'"r n 2oot e A s> ormOlreon e or of uch odrcstoc O 0 20 40 E Rewettlement Areas El>D0