China - Inner Mongolia Snowstorm Emergency Recovery Component Project

Document of The World Bank Report No. 27453 IMPLEMENTATIONCOMPLETIONNOTE ON A CREDIT IN THE AMOUNT OF SDR 8.052MILLION (PORTIONOF CREDIT IDA-2563)* TO THE PEOPLE'S REPUBLIC OF CHINA FOR AN INNER MONGOLIA SNOWSTORMEMERGENCY RECOVERYCOMPONENT November 30,2003 Rural Development and NaturalResources SectorUnit East Asia and Pacific Region * Reference should also be made to the primary ICR for Credit IDA-2563 - China Second Red - Soils Area DevelopmentProject (ReportNo. 23736); that report refers to the use of funds allocated to the red soils project areas in the provinces of Fujian, Hunan, Jiangxi, Zhejiang, and Guangxi Autonomous Region. This implementation completion note is prepared in connection with the investmentsundertaken with a portion of the funds in Credit IDA-2563, which arose following the reallocation of credit proceeds from the original SecondRed Soils Area DevelopmentProject to the Inner Mongolia Snowstorm Emergency Recovery component, supported by the International Development Association as an emergency operation. For the purpose of this ICR this Inner Mongolia SnowstormEmergency Recoverycomponentis considered a project.  CURRENCYEQUIVALENTS (ExchangeRate Effective September2003) CurrencyUnit = Renminbi (RMB) Yuan (Y) Y1.0 = US$0.12 US$l.O = Y8.27 FISCALYEAR January 1to December 31 GLOSSARYOF TERMS Banner Mongolian equivalent of a County Gacha Mongolian equivalent of an AdministrativeVillage League Mongolian equivalentof a Prefecture Sumu Mongolianequivalentof a Township ABBREVIATIONSAND ACRONYMS AHB Animal Husbandry Bureau FB FinancialBureau ha hectare IDA InternationalDevelopment Association MAR Inner MongoliaAutonomousRegion LU LivestockUnit M&E Monitoringand Evaluation mu Chinese squaremeasure (15 mu = 1ha) PLG Project Leading Group PMO Project Management Office QMR QuarterlyManagementReport sqm square meter SA SpecialAccount SDR SpecialDrawing Rights SOE Statementof Expenditures TOR Terms of Reference TA TechnicalAssistance Vice President: Jemal-ud-din Kassum CountryDirector: Yukon Huang SectorDirector: Mark D. Wilson Task Team Leader/TaskManager: Achim Fock  CHINA -INNER MONGOLIA SNOWSTORMEMERGENCYRECOVERY COMPONENT CONTENTS Page No. 1.ProjectData 1 2. Principal Performance Ratings 1 3. Assessment of Development Objective and Design, and of Quality at Entry 2 4. Achevement of Objective and Outputs 4 5. Major Factors Affecting Implementation and Outcome 7 6. Sustainability 8 7. Bank and Borrower Performance 8 8. Lessons Learned 9 9. Partner Comments 10 Annex 1.Key Performance IndicatodLog Frame Matrix 12 Annex 2. Project Costs and Financing 14 Annex 3. Economic Costs and Benefits 19 Annex 4. Bank Inputs 19 Annex 5. Ratings for Achevement of ObjectivesiOutputsof Components 20 Annex 6. Ratings of Bank and Borrower Performance 20 Annex 7. List of Supporting Documents 20 Annex 8. Borrower's Implementation CompletionNote (Summary) 21 Annex 9. Photographs 25   Project ID: PO03627 Project Name: INNER MONGOLIA SNOWSTORM EMERGENCYRECOVERY TeamLeader: Achim Fock TL Unit:EASRD ICR Tvne: Core ICR Revort Date: November 30.2003 1. ProjectData Name: INNER MONGOLIA Credit Number: IDA-2563 SNOWSTOFW EMERGENCY RECOVERY CountgdDepartment: CHINA Region: East Asia and Pacific Region Sector/subsector: AL- Livestock KEY DATES (Related to the new component) Original ReviseaActual PCD: -- Effective: 0912412001 09/24/2001 Appraisal: 04/06/200I W R : -- -- Approval: 07/13/2001 Closing: OY31/2003 0513I/2003 Borrower/ImplementingAgency: PRC / I M R FB,AHB OtherPartners: - - STAFF Current At Appraisal Pice President: Jemal-ud-din Kassum Jemal-ud-din Kassum CountryManager: Yukon Huang Yukon Huang Sector Manager: Mark D. Wilson Mark D. Wilson TeamLeader at ICR: Achim Fock Achim Fock ICR PrimaryAuthor: Achim Fock Achim Fock 2. PrincipalPerformance Ratings (HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HL=Highly Likely, L=Likely, UN=Unlikely, HUN=Highly Unlikely, HU=Highly Unsatisfactory, H=High, SU=Substantial, M=Modest, N=Negligible) Outcome: S Sustainability: HL Institutional Development Impact: S Bank Performance: S Borrower Performance: S QAG (if available) ICR Quality at Entry: `7 Project at Risk at Any Time: 1  3. Assessment of Development Objective and Design, and of Quality at Entry 3.1 Original Objective: The objectiveof the project is to assist the Borrowerin restoring social and economic infrastructure critical to the lives of nomadic herders devastated by an unusually severe snowstorm in hard hit areas of Inner Mongolia in the winter of 2000/2001 and in enhancingand strengtheningthe disaster response capacity of the local government, and affected herders. This objective is in line with Bank policy for emergency recovery assistance, i.e. to restore assets andproduction levels in the disrupted economythrough the financingof investment and productive activities, rather than relief or consumption, and the focusing on areas of its comparative advantage. By targeting the project towards a very poor part of the societyin extremelyremote rural areas it is contributingto four of the five major themes of the 1997Bank's Country Assistance Strategy CAS for China (infrasmcture; human development including poverty alleviation; agriculture and rural development; and, environmental protection) and two out of the three major themes of the 2003 CAS (addressing the needs of the poorer and disadvantaged people in lagging regions; and, facilitatingan environmentallysustainabledevelopmentprocess). Finally, the project was responsive to the Borrower'sneed in a situation of a natural disaster that seriously dislocated the local economy and required a quick response. The objective of the project was clear and realistic given the natural and institutional conditions. In line with best practice for emergency operations,the project objectivewas ensuredby keeping the complexitylow. 3.2 Revised Objective: The original objectiveof the project remainedunchanged. 3.3 Original Components: The livelihood of the herder families in the disaster areas of Inner Mongolia is almost always entirely dependent on their livestock (sheep, goats, cattle, horses, and other livestock). With large numbers of animals dying in the snow winter of 2000/2001, the livelihood of these families were severely impacted. The ability to rebuild ths livelihood and protect it more efficiently fiom future disaster depend largely on rehabilitation of animal housing and feeding. Therefore, the key emphasis of the project was to assist herders in rebuilding damaged or destroyed sheds and establishing a winter feed base. Technical specifications and training under the project were designed to ensure a high standard of the investments and their use. In addition, a substantial amount of infrastructure for social services such as schools and clinics had been damaged during the snowstorm and the project was designed to assist in their rehabilitation. Finally, a component on technical assistanceand project management was designedin order to contribute to an improved management of the livestock and grasslandresources in the region, and to ensure effective project management, including evaluation and monitoring. The total estimated project cost were US $15.57 million, of which US $10.00 million (equivalent to SDR 8.05 million) or about 65 percent was from IDA. These funds were allocated to the followingcomponents: (1) Restoration and Rehabilitation of Livestock Sheds (US $7.78 million - 49.9 percent of total). This component was designed to rehabilitate about 4,000 livestock sheds damaged by the snowstorm and to build more than 1,400 new sheds (of about 136 sqm each) with an improved "greenhouse" where sheds had been fully destroyed. These investments were designed to respond to one of the principal reasons for the high ruminant livestock losses during the snow disaster, and eliminate losses from future snow storms, greatly reduce neonatal mortality, improve lambkid growth rates, and enhance the fertility of breeding animals. For all beneficiaries investing into the 2  reconstruction of sheds, technical training for the herders was made compulsory in order to improve the economically and environmentallysustainableuse of these investments. (2) Pasture Rehabilitation and Water Supply (US $6.63 million - 42.6 percent of total). The plan for this component includes the establishment of about 66,000 mu of rainfed artificial (i.e. sown) pasture and about 70,000 mu of irrigated fodder production (caokulun). In addition, the design includes the construction of about 1,000 silage pits and procurement of more than 1,000 units of tractors and fodder processing equipment. Lastly, 91 wells including a pump and simple irrigation equipment were planned to ensure irrigation and to provide herder family and their livestock sufficient access to drinking water. The aim of this component was to provide herders with improved nutritional quality of winter forage, a secured source of good quality feed throughoutthe winter season,andto reduce damaging winter grazing. (3) Rehabilitation of Schools and Clinics (US$O.76 - 4.9 percent of total). The component included the rehabilitation of 42 schools and 29 health clinics, all of which are relatively simple constructionsand at the sumu/townshiplevel. The aim was to ensure the continuationof education and health services in the disasterarea. (4) Technical Assistance and Project Management (US $0.40 - 2.6 percent of total). The plan for this component included: (i) a Grassland Management Review technical assistance (TA) to re- assess the prevailing risk mitigation measures for preventing future losses, and to develop the framework for a more sustainable grassland management; (ii) a TA activity for Independent Monitoring and Evaluation of the impact of the project based on four performance indicators (measuring livestock performance, increased winter forage, beneficiary satisfaction, and equitability of beneficiary selection); and (iii) Project Management with responsibilities given to Project Leading Groups (PLGs) and Project Management Offices (PMOS) located in Animal HusbandryBureaus(AHB). The componentswere clearly linked to the objectives.Moreover,by targetingthe poorer part of the affected herder population, the project ensured the objectives were achieved. The individual components were well designed. One exception was a too high allocation for rainfed artificial pasture, which did not fully take into account the risks of draughts in Inner Mongolia. However, due to project implementationflexibility,this did not become a major issue. The livestock part of the components were complementing each other, and with detailed and practical standardsand complementarytraining for the efficient and therefore sustainableuse of the investments. The project took into account lessons learned from previous Bank-financed emergency recovery projects such as: (i) paying attention to project preparation and simplicity of design: (ii) flexible procurement methods; (iii) disaster-resilientreconstruction standards: and (iv) participation by beneficiaries. Lastly, the simple design of the project took into account the capacity of the implementingagencies, the extremely difficult natural conditions, and the need for an expedientimplementationrequired for an emergency recovery operation. 3.4 Revised Components: The design of the project remained unchanged throughout the implementation period. However, reallocations in the investment amounts of the various components occurred for various reasons. First, because of strong demand, the animal shed component was increased relatively to the artificial pasture component. Second, rehabilitation of damaged old sheds proved to be relatively costly, and herders preferred building new sheds of higher quality to replace the old ones. The project accommodatedthese demands. Third, artificial pasture proved to be difficult to establish, especially in the very dry summer of 2001. Therefore, funds planned for artificial pasture were reallocated to a new component for fenced pasture because of the considerable difficulties of 3  establishingalfalfa in the harsh climatic conditions of Inner Mongolia. Fourth, the funds disbursed for the cuokulun sub-component were also reduced. Lastly, size of the schools and health clinics componentwas reduced substantiallybecause of implementation problems of this component (see Section4.2 below). Quality at Entry is rated satisfactorybecause the project's: (i) focused objectiveswere in line with 3.5Quality ut Entry: Borrower'spriority, the Bank's CAS for China,and the Bank'spolicies for emergency operations; (ii) timely and quite accurate assessment of the disaster and the situation under which the project was implemented; (iii) strong emphasis on targeting of assistance to the poorer and most needy; (iv) realistic time schedule to meet the project objectives,which also included mitigation measures to strengthen the area's resilience to natural hazards; and (v) the project's design adequately addressing Bank's safeguard policies, in particular the issues of indigenous people and the environment. 4. Achievement of Objective and Outputs 4.1 Outcotnehchievement of objective: The project's objectives and outcomes were substantially achieved. Critical social and economic infrastructureof more than 8,900herder families (almost45,000 people) has been restored and the disaster response capacity of the affected herders been improved substantially.Many more benefit indirectlyfromthe rehabilitationof damaged schools and clinics. One of the principal reasons for the heavy ruminant livestock losses from the winter 2000/2001 snow disaster was the poor quality and design of livestock sheds,which failed to provide livestock with adequate shelter during the particularly severe weather conditions. The rehabilitated and reconstructedsheds greatlyreduce risk of losses from future snow disasters. In addition, shedswith the improved "greenhouse" design provide a warmer housing environment during the winter season with advantages such as reduced neonatal mortality, increased lambkid growth rates and improved fertility. Moreover, shed feeding can be better controlled providing improved nutrition. Where livestockis housed and fed inside shedsduringthe winter season,winter grazing is reduced, resulting in less grazing on dormant winter and early spring grasses and improved growth and recovery of grass cover. The project also greatly enhanced winter feed security by providing herders with alternative sources of feed, mainly in the form of sown (artificial) pasture, a small grassland rehabilitation activity, and the provision of forage handling equipment including small tractors, and forage storage facilities. These investments provide a secured source of good quality feed throughout the winter season. The TA and trainingprovided under the project considerablystrengthenedthe achievementsof the project outcomes. For many herders the training provided was the first formal technical training they ever received. The training has contributedconsiderablyto a good quality of constructionand to economicallyefficient and environmentallysustainableinvestments.The TA provided under the project provided the opportunity to re-assess the prevailing risk mitigation measures to prevent future losses, and to develop more sustainable grassland management. A considerable number of officialsandherdersbenefited directed from the TA activity. Experiences from Bank supervision missions as well as the household survey data of the monitoring and evaluation activity indicates that the project largely targeted the poorer part of the herder population which had suffered substantiallosses from the snow disaster. Beneficiaries were highly appreciativeof the project. Livestock production and therefore livelihood of the beneficiary 4  population was greatly improved through the project investments in terms of higher income level. Herders also enjoy greaterresilienceto futuredisasters. 4.2 Outputs by components: (1) Restoration and Rehabilitationof Livestock Sheds (US $9.74 million - 61.6 percent). The component is rated satisfactory.A total of 2,600 damaged animal sheds were repaired and 2,651 sheds with an average size of about 120 sqm. were reconstructed. While the number of sheds repaired is only 65 percent of the appraisal estimate, the number of restored (newly constructed) sheds is almosttwice the original estimate (185 percent). The quality of most constructionworks is overall high. While some unsatisfactoryrepairing of sheds was observed, new sheds often exceed the project standards adopted at project appraisal. In most cases the "greenhouse" shed design promoted by the project was implemented. One problem of shed reconstruction is that the size of the shed was sometimes standardized for all beneficiariesin a certainproject area, which was often bigger than the project standard specifications'. In these cases the beneficiary has received an investmentthat: (i) could be economicallynon-optimal; and (ii) might tempt the herders to increase the livestocknumberbeyond an ecologicallysustainablelevel. (2) Pasture Rehabilitation and Water Supply (US$5.41 million - 34.3 percent). The componentis rated satisfactory.About 25,500mu of artificialpasture (39 percent of appraisalplan) and 58,800 mu of caokulun (84 percent of appraisal plan) have been established. The reduced scope of these activities, in particular the rainfed fodder production, is a response to the severe weather conditions, especially in the first implementation season (2001). To some extent, this proved the relatively high risk of this activity in those parts of Inner Mongolia with frequent draughts during summer and strong frosts with low probability of snow coverage in the winter. While the management of most artificial pastures established remains a challenge, some plots of artificialpastures show good results due to seeds of very high quality, availabilityof water, and the technical knowledge of the beneficiaries, which was partly transferred under the project. The establishment of irrigated artificial pasture (caokulun) is considerably easier and all agronomic aspects (e.g. sowing, irrigating and timely harvest of pasture and forages) have been implemented well in most cases. Sometimes in parallel with investments into artificial pasture, the project supported the building of silagepits for improved fodder storage (960 pits) and the procurementof tractors and forageprocessing equipment(a total of about 1,950pieces). Theseinvestmentswere of generally high quality and are well used, with many neighbors often sharing the equipment. Training was mandatory to each beneficiary household benefiting from one of the activities under this component (and under the shed reconstruction activity) and proved to be a considerable success. At the beginning of the project's second construction season a new fencing activity was added and replaced some of the investments planned for artificial pasture. The training activity played a particularly crucial role in the activity to effectively use the fence for more sustainable grassland management. (3) Rehabilitation of Schools and Clinics (US $0.44 million - 2.8 percent). The schools and clinics component is rated marginally satisfactory. A total of 23 schools and 19 clinics at townshiplsumu level have been supported under the project. The local government highly valued these investments given the status of such infrastructure, the damage done to it by the 2000l01 snowstorm, and their difficult fiscal situation. However, the total number of schools and health clinics supported by the project, and the total investment value is substantially lower than at 1 The principle of shed size developed for the project was that a newly constructed shed would be built only up to a size suitable for the livestock number the beneficiary household owned immediately prior to the snow emergency. An eligible shed size is calculated by using multiplying the number of Livestock Units (LU) owned by the beneficiary in 2001 by 0.7 m2,the agreed space requirement of a LU. 5  appraisal.This failure to fully implement the project has various reasons. Some of them are factors external to the PMO and project design For instance, a government restructuringprogram has led to the merging of townshipshmus during the project implementationperiod. Another factor is the ongoingrelocation of herder familiesout of some sumusin XilinguoleLeague causedby the severe damage to their grassland resources. This lead to considerable uncertainties and shifts in priority for the rehabilitationof certain sumu-level schoolsand clinics.However, more importantthan these factors is the lack of attention given to this component by implementingagencies during the critical period and the failure to effectively coordinate within Government agencies responsible for the implementation. (4) TA and Project Management (US $0.21 million - 1.3 percent). The component is rated satisfactory. First, two rounds of quality technical assistance in grassland management were successfullyconductedby a team consisting of an international and a national consultant. Second, the project supportedan independentmonitoringand evaluation of the project impact. A consultant team undertook a field survey from December 2001 to January 2002 and December 2002 to January 2003. It was based on (beneficiary and some non-beneficiary)household interviews based on semi-structured questionnaires. The monitoring and evaluation work was of good quality; it delivered measurement of project impact and usefil lessons learned. However, the methodological problem of the short observation period needs to be taken into account when interpreting the measurement of project impact. Finally, the management of the project is satisfactory.Please refer to the discussionsof the borrower'sperformancein Section 7. 4.3 Net Present Value/Economicrate of return: Since this was an emergency operation, no calculations of net present value or economic rate of return was carried out. However, simplifiedcalculationsdemonstratethat the economic benefits for the herders and the overall economic benefits of the project is highly positive. For example, these calculations indicate that the internal financial rate of return of new shed construction would be offset by a 15 percent increase in lambhd survival. Increase in neonatal survival in greenhouse sheds has been reported to be well beyond this level; farmers report it to be more than 95 percent of lambs born. In addition,beneficiariesreported other advantagesof the sheds such as the capacityto feed animals inside on severe winter days and that an estimated 10percent to 30 percent less feed is required to sustain animals comparedto conventionalsheds. Consequently,animals emerge from winter in better condition(i.e. fatter) than with conventional sheds. The establishmentof artificialpasture costing about RMB 200 per mu with flood irrigation would be justified by only about one cubic meter of incremental dried alfalfa hay per mu and year (opportunitycosts about RMB 50.). The yield can easily be more than two cubic meters per year. The economic impact of the project is particularly positive because it supports investmentswithout which the continued production by the beneficiaries would in many cases be severely reduced and non-sustainable,if not impossible. The investments in animal housing and winter fodder security have not only direct economic benefits, but also indirect ones through the improvement of the environment by potentially reducing the pressure on grazing lands in autumn thereby increasing carryover residual which in investmentscontributedto making livestockproduction more sustainable. turnprovidesan effectiveprotection in springagainst soil loss throughwind erosion. Therefore,the 4.4 Financial rate of return. Not applicable. 4.5 Institutional development impact: 6  The institutional impact of the project is positive. Given the emergency nature of the project, the main focus was on rehabilitation of social and physical infrastructure rather than institutional development.Nevertheless,the project had some institutionaldevelopmentimpact in certain areas. The project substantially increased the capacity of the Government agencies involved in project preparation and implementation in particular the AHBs at all levels. After overcoming initial difficulties, the Bureau at all levels successfully adopted the various design aspects and requirements of the project. Besides becoming familiar with the Bank's financial and procurement methods, the AHB increased its capacity in a number of areas, including: (i) thorough targeting of public services,in this caseto the poorer and most needy part of the herderpopulation;(ii) standard definition, implementation, and efficient supervision of high-quality works and goods dispersed over a large project area; and (iii) familiarization with computers and other modem office equipment. The response capacity to any future disaster has been increased through the implementationof this project. 5. Major Factors Affecting Implementationand Outcome 5.1 Factors outside the control of government or implementingagency: The very dry summer of 2001 -after a number of droughts in previous years -basicallyprevented an effectiveimplementationof the artificialpasture component in the first implementationseason. 5.2 Factors generally subject to government control: The Government'spolicies as well as its support to the project had an overall favorable affect on project implementation and outcome. However, one factor affecting the project negatively was a shortage in, and substantial delay of counterpart funds, causing greater financial pressure on beneficiariesand the local economyin general (suppliers/contractors). The performanceof the implementingagencies was overall satisfactory. The PMO in the AHB had 5.3Factorsgenerally subject to implementingagency control: no previous experience with World Bank financed projects, but established a strong implementationcapacity at all government levels. Someweaknesses in project management existed with respect to the implementation of the schools and clinics component due to lack of effective coordinationamongrelevant government agencies. 5.4Costsandjhancing: The latest estimate of project cost is about US $15.8million, about 1.5 percent higher than the cost estimate at project appraisal. This is due to an additional amount in US dollar terms available for investmentresulting from an overall appreciationof SDR against the US dollar during the project implementation period. Annex 2a presents a detailed project cost by component, project activity and a comparison of actual/latest estimate versus appraisal estimate. (A small amount of SDR savings(US $0.3 million) is a result of under spendingforrehabilitationof schoolsand clinics.) Of the total expenditures,about US $10.3 million (SDR 7.8 million equivalent)or about 65 percent was financed by IDA, about US $4.6million was provided by Governmentas counterpart fund and about US $0.9 million was contributed by project beneficiaries in the form of labor. Annex 2c provides a breakdown of project financingby component and source. 7  6. Sustainability 6.1 Rationalefor sustainability rating: Project sustainability is highly likely. The project design paid considerable attention to high implementation standards, and these standardswere generally met. In the case of animal sheds, the construction quality often exceeded the standards. This will ensure the continued use of investments for many years to come. Some concerns exist with respect to the establishment of some artificialpastures. The economic benefits of the investments are estimated to be substantial given that in many cases the activities implemented under the project are an essential condition for the recovery of subsistence and income of the beneficiary household. The training provided beneficiaries with substantial knowledge to use and maintain their investments. While the environmental sustainability in many of the grasslands areas is fragile, the project investments contribute to an improvement of this sustainability by reducing the winter and spring grazing pressure on the grasslands. 6.2 Transition arrangement to regular operations: The individual household-based sub-projects go into regular operation once they are built. The individual households own the constructions built and forage equipment purchased under the project and they have rights over a minimum of 30 years for the use of the land where fodder production has been established.These households have a strong incentiveto use and maintain the investments. In addition, the Government will make arrangements to ensure the success of the project. The completion of a computerized database of all beneficiary households will make their work more efficient. The PMOShave been reintegrated into the AHBs at the end of the project implementation and the follow-up work will be carried out by staff of the Financial Bureaus and AHBs as part of their overall responsibilities.The Financial Bureaus, with the help of the AHBs, will be responsible for the recovery of the loan proceeds to the beneficiaries. The AHBs intend to provide additional training to beneficiaries, plans for a follow-up survey of project beneficiary households (5-10 percent) to measure the impact some time in the future, and will use the project managementexperiencesgained in futureactivities. 7. Bank and Borrower Performance Bank 7.I Lending: Bank's performance during project identification, preparation, and appraisal is rated satisfactory. The Bank's input in terms of staffing, skill-mix and time allocation was adequate given the structure of the project. The Bank was proactive in identifying the financial resources available fiom other World Bank financedprojects and the Bank team provided adequate and timely support to the Borrower. Appraisal was done quickly and thoroughly; adequate attention was paid to the Bank's fiduciary and safeguard responsibility. The whole process from identification to appraisal was rapid in accordance with the emergency nature of the project. Project design was in line with overallBank and CAS objectives. 8  7.2Supervision: The Bank's performance in project supervision is rated satisfactory. Size and frequency of the supervisionmissions as well as their staff composition were adequate given the size and nature of the project, and staff continuity was maintained. The task team identified and addressed implementationissuesin an active and constructivemanner,and follow-up actionwas successfulin solving problems. Cooperation between Bank and Borrower was close and advice by the Bank team highly valued by the implementingagencies. 7.3 Overall Bankperformance: Overall Bank performance is rated satisfactory. The Bank responded in a timely manner to the emergency recovery needs of the Borrower. Project design was in line with objectives; borrower support was strong,and project appraisal and supervisionsound. Borrower 7.4 Preparation: Government performance is rated satisfactory.The Government responded very quickly after the project identification. In a short period of time, it prepared the project according to the agreed framework and presented high quality information. The Government also worked with the herders to start implementingproject activitiesin the first constructionperiod. 7.5 Government implementationperformance: The Government implementation performance is rated satisfactory. While the availability and delay of counterpart funds affected the project somewhat negatively, the Government did put in place a strong project management team and provided this team with strong support for project implementation. 7.6Implementing Agency: The performance of the implementing agencies is rated satisfactory. Despite some lack in experience with internationally financed project, the PMO quickly established strong implementation capacity. Strong commitment of key staff in the PMOS at all levels and the training they received contributed to the success that the project was completed with satisfactory qualityand within the set time-frame. 7.7 OverallBorrower performance: The overall Borrower Performance is rated satisfactory. The Government and the implementing agencieshave been committedto the project and were the key to the overall success of the project. 8. Lessons Learned The project has demonstrated the feasibility and substantial benefits of fast-track Bank-financed emergency rehabilitation projects even under extreme climatic and geographical conditions. The project's approach can be utilized for similar emergency for the herder population of remote areas. Important factorsof project performance were: Thorough proiect preparation and simplicity in design. Despite the time pressure during project preparation and appraisal, a lot of attention was paid to design details including breakdown of costs and procurement down to county level. Even more importantly, the scope of the project was well focused, and preparation avoided the inclusion of too many or too sophisticated components. The selection of the components centered around the life of the herder communities, i.e., the reconstruction of the basic services and support to their livelihood. This helped make the project relevant to them and increased their commitment 9  and responsiveness. This emphasis on a sufficiently simple design paid off. The project objectivesand its originaldesignproved to be realisticand the project was implemented 0 Quick response and strong management structure. In emergency reconstruction programs, early availabilityof funds or authorization,together with competentbusiness proceduresand record keeping are essential to address the disaster repairs in a timely manner. Dedicated high-level governmentmanagement and close interaction between Provincial,Prefectureand County-level management teams is essential to achieve success. However, more effort and attention from the regional Finance Bureau to project's timely disbursement would have contributedfurtherto project implementation. 0 Formalizing targeting of beneficiaries. Assisting individual households in their recovery from an emergency situation requires considerable attention to a well thought-through targeting of the limited resources. First, this requires that the criteria for the selection of beneficiaries be measurable and simple enough to be applied given the time-pressure of an emergencyproject and limited capacity available. This aspect was achieved by the project. Second, it requires a beneficiary selectionprocess that is a priori defined and transparent.A clearer design and better institutionalization of such selection process during preparation would have avoided some delays and mistakes made duringthe early stagesof the project. Well-targeting training of project management and beneficiaries. Due to its emergency nature the project focuses on reconstructionof physical and social infrastructure. However, a crucial part of the success towards this aim was the training provided under the project. First, training of project management staff was essential to build the capacity for project implementation and, in hindsight, should have been provided even more intensely at the earliest stages of the project. Second,the trainingprovidedto beneficiaryhouseholds,though varying in quality, was very satisfactory.For the vast majority of the trainees this was the first time that they received technical training. It was well received, contributed to an improved construction and sustainability of the investments made, and opened the eyes of many herders beyond these investments to more comprehensive aspects of livestock and grassland management. The AHB is expected to build on this training, and the credibility they gainedthrough it, for transferringknowledge to the herderpopulation. Supervision and Monitoring. A strong emphasis on input and output monitoring, reporting, and supervision has contributed to a quality implementation of the project. The transfer of this management approaches will serve the implementing agencies well in many future activities. Challenges in worlung across line agencies. The lesson is to be careful in including tasks in an emergencyproject that involves continual coordinationbetween line agencies.While the other components were under the primary responsibility of the PMO staff located in the AHB and the FB, the rehabilitationof schoolsand clinics required stronginvolvementof the FB as well as the bureaus for educationandhealth on various levels. 9. Partner Comments Borrowedimplementing agency: We fully agree with the contents of the ICR, which have reflected the whole picture of the project. A more systematic management scheme was developed under the great help from World Bank Mission, although we had drafted the Project ImplementationPlan and Technical Appendixbefore the commencement of the project. The successful integrated process of Project management, procurement and financial aspect ensure the achievement expected during the project appraisal 10  time, even some of the project result have already exceed the expectation.The project-designated beneficiaries have already been 8933, which far more than 4890 households during the appraisal time under the strong support from Bank Mission. All the quantified tasks have been completedin accordance with the constructionplan of the appraisal time. The great social impact has already been seen since all the workshops and training conducted by International/LocalConsultant have been welcomed and appreciatedby the project beneficiaries. All the accept beneficiaries are keen to acceptingthe technical trainingprovidedunder the project. It has alreadybeen the demonstration encouragingmore non-beneficiariesto invest into the livestock infrastructure. All the construction components including sheds reconstructiodrehabilitation, restoration of the grassland, the fodder security, etc. improved the feeding condition in the winter and spring time and increased the security of the fodder by upgrading the utilization and efficiency of the forage. The problem of lack of the water, fodder have almost solved by implementation of the project, which created a great foundation for the further sustainable development of the livestock in the region. The improvementof schoolingand sanitationconditionhelp many studentsto go back to the school and clinical condition in many township clinics have been renovated to accommodate more patients. General,the objectives of the project have alreadybeen reached. Some lessons also have been learned during the project implementation: first of all, the commitment from government was the key factor to contribute the project implementation; secondly,the harmonization of domestic approval procedure and World Bank procedure need to be coordinated to improve the efficiency of the management; thirdly, the procurement procedure shouldbe simplifiedand increasethe flexibilityof approvalas the scatteringof the project sites. A very good experiencelearned from World Bank management procedure is that all the procedure has already been formalized and very matured especially strong emphasis of the coordination between all the linkage of the project management procedure to keep the unity of the project management system. All the strict procedure from selection of the beneficiaries to reimbursement procedure establishedby World Bank enable the benefit going to the beneficiaries. 11  Annex 1. Key Performance Indicators/Log Frame Matrix Annex la: OutcomeDmpact Indicators Project Activity Indicator Means of Verification Outcome End of Project Without project I With project A. Improved Survival Rate. Determined end of the 7% increase after project investments livestock lambing season. Survey in greenhouse shed. production 10%project households efficiency.\a with sheds. B. Improved Available winter Total tonnage of hay and winter forage forage at onset of silage available at end of security.\b winter season. grazing season. Survey 10%of project households. C. Project Beneficiary Surveyreport of 10%of Highly positive, expressedboth by Management response to project project households per beneficiaries and non-beneficiaries Effectiveness, intervention. project county. Implementation effectiveness.\c D. Beneficiary Project credits PMO Beneficiary Highly effective with respect to selection. targeted to those selectionreport. Selection income level; somewhat effective with greatest need. targeted to those in the with respect to snowstorm losses lower 213 income bracket. \a The survival rate measures the share 0: because the measuring of the weaning rate (agreed index of measuring livestock efficiency) could not be effectivelymeasured within implementation period. The index has to be interpreted with care since the M&E TA measured before and after project implementationrather than with and without. \b Measures increased winter forage reserves from increased hay production, artificial pasture production, and silage production. This measure does not correctly measure with and without project. Rather, it measures a situation before and after project. However, the numbers have to be interpreted with great care since the weather conditions were substantially better in 2002. \c Includes response rapidity, suitability, and sustainabilityof project inputs. 12  Annex lb: Output Indicators Indicators Appraisal ActuallLatest % of Estimate Estimate Appraisal A. Rehabilitation and Restoration of Animal Shed 1. Rehabilitation of Sheds m2 455,940 321,551 71% 2. Rehabilitation of Sheds No 4,022 2,600 65% 3. Restoration of Sheds \a m2 194,750 328,889 169% 4. Restoration of Sheds No 1,433 2,651 185% B. Pasture Rehabilitation 1. Artificial Pasture mu 66,000 25,500 39% 2. Artificial Pasture No 330 127 38% 3. Fenced Land mu NIA 1,282,800 NIA 4. Fenced Land No NIA 685 NIA 5. Caokulun mu 69,790 58,840 84% 6. Caokulun No 991 827 83% 7. Silage Pit m3 33,702 33,443 99% 8. Silage Pit No 977 960 98% 9. Drmking Water Supply No 91 88 97% I1. /Rehabilitationof Schools I m2 I 7,6211 7,0081 92%1 2. Rehabilitation of Schools No 42 21 50% 3. Rehabilitation of Clinics m2 4,481 4,919 110% 4. Rehabilitation of Clinics No 29 19 66% I I 11. /TechnicalAssistance /NO. of inputs 21 loo%/ 2. ITrainingto beneficiaries I3. /Trainingto PMO staff /E.Beneficiary II person day I1 3341 4191 125%1 I I I 11. /BeneficiaryHousehold 2. Beneficiary Population person 24,450 44,665 183% 13  Annex 2. Project Costs and Financing Annex 2a: Project Cost by Component (in US $ thousand equivalent)\a Project Component Appraisal Estimate ActuaVLatestEstimate % of Appraisa A. Rehabilitation and Restoration of Animal Shed 7,777.6 9,740.8 125% II 1. IRehabilitationof Shed I 3,072.0 1,895.2 62% 2. IRestoration of Shed 4,705.7 7,845.6 167% IB. Pasture Rehabilitation 1I 6,628.5 III 5,415.1 III 82% 1. Artificial Pasture 1,951.5 624.4 32% 2. Fenced Land 1,805.8 NIA 3. Caokulun 3,158.0 1,899.9 60% 4. Animal Forage Processing and Storage 787.9 510.2 65% 5. Drinking Water Supply 731.0 574.8 79% IC. Rehabilitation of Schools and Clinics 760.9 443.7 58% II 2. 1. [Rehabilitationof School 455.0 II 186.1 41% /Rehabilitationof Clinic 11I 305.9 I 257.6 III 84% ~~ D. TechnicalAssistance and Project Management 407.6 205.3 50% 1. TechtucalAssistance 87.3 51.6 59% 2. Project Management 320.3 153.8 48% /TOTALPROJECT COSTS / 15.574.6 I 15.804.9 I 101% \a The totals may not match due to rounding. 14  Annex 2b-1: Project Costs by ProcurementArrangements (Appraisal Estimate) (in US $ thousand equivalent)\a \a The totals may not match due to rounding. \b Figures in parentheses represent the amounts financedby the IDA credit. \c NBF denotes non-Bank financing 15  Annex 2b-2: Project Costs by ProcurementArrangements (ActuallLatest Estimate) (in US $ thousand equivalent) \a Total 631.51 1,012.51 13,953.01 101.91 106.01 15,804.9 16  II 2. Fenced Land 3. Caokulun 2,092.11 350.51 350.51 175.41 175.31 3,14731 4. Animal Forage Processingand Storage \a II 563.11 73.81 73.81 36.91 36.91 785.41 ~~ ~ 5. Drinking Water Supply 483.1 80.9 80.9 40.5 40.5 728.7 C. Rehabilitation of Schools and Clinics 484.3 91.0 91.0 76.1 15.1 758.4 1. Rehabilitation of School 289.6 54.4 54.4 48.6 6.0 453.5 2. Rehabilitation of Clinic 194.7 36.6 36.6 27.5 9.1 304.9 D. Technical Assistance and Project Management 142.5 134.7 95.4 95.7 6.2 456.9 I 1. Technical Assistance 99.0 13.6 1.6 1.6 99.0 2. Project Management 1 43.51 121.11 93.81 94.11 6.21 357.91 TOTAL PROJECTCOSTS 10,0000 1,880 8 1,841 5 999 5 8527 15,5746 Of Which 1 Xilinguole League 921 1 921 1 497 6 423 5 921 1 I 5,000 0 2. Hulunbeier League 1,500.01 274.81 274.81 148.51 126.41 274.81 II 3. Xing'an League II 1,300.0/ 240.91 240.91 130.21 110.81 240.91 4. Tongliao City I 1,200.01 219.61 219.61 118.7) 101.01 219.61 5. Chifeng City 1,000.0 184.8 184.8 99.8 85.0 184.8 6. Regional PMO 50.6 50.6 17  Annex 2c-2: Project(in Financingby Component (ActuallLatest Estimate) US $ thousand equivalent) \a ActualiLatest Estimate 2. Fenced Land 1,175.1 210.2 210.2 94.5 115.8 1,805.8 3. Caokulun 1,264.0 228.6 175.2 120.5 111.5 1,899.8 D. TechnicalAssistance and P II 3. Xing'an League 1,346.21 236.91 241.71 123.41 80.21 2,028.31 4. TongliaoCity 11 982.91 169.31 181.41 111.51 51.81 1,496.91 5. Chifeng City 1,212.0 257.1 210.8 151.7 1,831.7 6.Regional PMO 76.0 2.9 8.6 87.5 18  Annex 3. Economic Costs and Benefits Not Applicable Annex 4. Bank Inputs (a) Missions: Stage of Project Cycle No. c Persons and Specialty Performa1 e Rating MonthNear Count Specialty Implementation Development Progress Objective Identificatioflreparation 02101 AE, UES, PS, PA AppraisaUNegotiation 04101 AE, OP, UES, FS, PS Supervision OSIO 1 AE, OP, LS 04/02 AE, OP, LS 10102 AE, OP, LS ICR 03/03 AE, OP AE AgriculturalEconomist = OP = OperationsOfficer E Economist = PA =ProgramAssistant FS =Financial Specialist PS =Procurement Specialist LS Livestock Specialist = UES =Urban Environment Specialist Stageof Project Cycle ActualILatest Estimate No. staff weeks us $(`000) IdentificationIPreparation 4 10.8 AppraisalNegotiation 16 32.8 Supervision 24 56.8 ICR 5 12.5 Total 50 112.9 19  Annex 5. Ratings for Achievement of Objectives/Outputsof Components (H=High, SU=Substantial, M=Modest, N=Negligible, NA=Not Applicable) Rating 0Macropolicies O H oSU O M O N oNA 0SectorPolicies O H oSU O M O N o N A IXI Physical O H *SU O M O N oNA IXI Financial O H *SU O M O N o N A ix1 Environmental Institutional Developmen2 O H *SU O M O N o N A O H oSU * M O N o N A Social IXI Poverty Reduction O H *SU O M O N o N A 0Gender O H oSU O M O N oNA 0Other(Pleasespecib) O H oSU O M O N oNA 0Privatesectordevelopment O H oSU O M O N oNA 0Publicsectormanagement O H oSU O M O N oNA I? Other (Please specifi) O H oSU O M O N oNA Annex 6. Ratings of Bank and Borrower Performance (HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HU=Highly Unsatisfactory) 6.1 Bankperformance Rating EdLending oHS * S o U o H U IXI Supervision oHS * S o U o H U ix1 Overall oHS O S o U o H U 6.2Borrower performance Rating IXI Preparation oHS * S o U o HU ix1 Government implementation performance oHS * S o U o HU IXI Implementation agencyperformance oHS O S o U o HU E3 Overall oHS * S o U o HU Annex 7. List of Supporting Documents Aide-Memoire of the ICR mission QuarterlyManagement Reports Consultant Reports for M&E Activity Consultant Reports for Grassland Management Activity Borrower's Complete ICR (see summary in Annex 8) 20  Annex 8. Borrower's Implementation Completion Note (Summary) Project Objective. The objective of the proposed project is to restore the social and economic infrastructure critical to the livelihood of those herders devastated by an unusually severe snowstormin five leagueskities of MAR and establishthe disasterresponse systemto improve the capacity of herders' resisting the further strike. The program covers across 25 banners, which affected worst in the blizzard. Among the worst hit areas are Xilinguole League, Hulunbuir League, XingAn League and the municipalities of ChiFeng and TongLiao. The total affected nomadic area covering these five leagues and cities is 506.5594 million mu with 3.4596 million population of 0.3321 million households, accounting for 38.92% of the rangeland in whole of the region. Total Cost of the Program and Fund Allocation Total cost of the program was US $15.58million comprising US $10.20million (8.05 million SDR) of IDA Loan, accounting for 65% of the total project cost and local counterpart fund US $5.38million,account for 35% of total. The 1/3 of the local counter part fund from Regional level, 1/3 of the local counter counterpart fund from prefecture level additional 1/3 from BannerKounty level. Part of the local counterpart fund of Banner/CountyLevel was fromLabor contribution and input in kind. The fourproject components were invested : (a) Restoration and Rehabilitation of Livestock Sheds; @) Pasture Rehabilitation and drinking Water Supply;(c) Rehabilitation of Schools and Clinics; (d) TechnicalAssistance and Project Management. Project Management. The cooperation and coordination among different departmentshave been strengthened to improve the project management, the following up monitoring the project implementation, well-established organization of the Project Management team and start-to-end reviewing and chechng of the constructionquality guaranteed the successfulimplementationof the project. A review to all beneficiaries selection process was conducted in accordance with the comments from The World Bank Mission by PMOs in each level, the detail survey and interview to the beneficiaries were done according to the ratio stipulated by the PIP to verify the actual benefit of the project implementation. The PMOs staff in each level made a great effort to visit many beneficiaries, especially the herders in very remote and scattered areas to conduct the checking and acceptance to ensure the quality of the work and that the interest of beneficiarieshad been realized. Project Monitoring and Evaluation. Professor Mr. Li QingFeng from Inner Mongolia Agriculture University was recruited as consultant to conduct the program of project monitoring and evaluation. The Project Monitoring program focus on the impact assessment of different project aspects included sheds rehabilitation and new construction,forage security in winter, the efficiency of the project management and beneficiary selection. 168 project households and 44 non- beneficiaries in 5 Leagues were selected and monitored by reviewing and chechng at random during the two rounds of survey in the period from December 2001 to January 2002 and from Septemberto December2002. Selection of Benejiciaries. All the beneficiaries selected have been confirmed andjustified base on the Beneficiary selection criteria set forth of Per Capita below RMB 2,500 per year, severe damage during the snow disaster. The whole process of beneficiaries selection was open and transparent after the publication,applicationsubmissionand decision taken by PMO in each level. Selection of The Project Component. Generally, all the project construction component are welcomed by the beneficiaries, the construction of sheds, forage production, fencing etc are the vital infrastructureto the sustainabledevelopmentof livestockdevelopment in the region. Urgency and Risk of the Project Activiw, The detailed investigation indicates that the forage security and supply has already been the most urgent problem to be solved, even more severe than 21  sheds component particularlyin west part of the project area, however, many beneficiaries gave up the componentbecause they thought the forage development has the high risk comparingwith the shed component. Technical Training. All the project beneficiaries have been trained on the knowledge of livestock technology and rangeland management, which has played the significant role to the project implementation.The experiencegained showsthe PMO should pay more attention to the technical training, for example,the lack of knowledge of agronomic and agriculturehas the negative impact to their operation on the artificial pasture performance. We recommend the World Bank should strengthen the technical training and extension to the further projects, also the local government and related department will have to take somemeasure to amend the shortage in this regard. Construction Standard of Sheds. The construction quality of rehabilitated sheds in some area was not satisfied with the standard set forth for lower loan amount allocation and the existing facilities used to be muddy structure, in this case, there is no way to build a higher standard shed unless the sheds would be newly constructed,however, the limited amount of the loan was also not enoughto cover the cost of higher standard sheds. On the other hand, the constructionstandardof some sheds in other site is much higher than the established standard, which will cause over-heavy burden of the beneficiaries. Project Management. The basic computer operation capacity of PMOs staff need to be addressed for most of the PMO staff not able to use the computer to process the huge data and records (like use the Microsoft Word and Excel). We recommend that PMOs in each level should organize the computer training program to build up a better foundation for the future project, meanwhile, not enough supporting staff in some PMOs caused the delay of the submission of the data, report and request materials. Time of Reviewing. It was not fully certain the growing condition of the artificial pasture and rehabilitated grassland for the reason of late commencement of project implementation and the characteristic of the plant and forage (for example the artificial pasture and fencing component), the following supervisionand surveywill be conductedin next growingseason. Project Achievement and Project Impact Assessment. It was estimated that 4343 beneficiaries were identified during the project appraisal period, however, the total number of the project household beneficiariesare 8425 after the selectionprocess accordingto the beneficiaries selection criteria agreed by The World Bank. More people benefited from the project implementation, including 5251 household doing shed rehabilitation and reconstruction, 177 household doing fencing component, 250 households doing artificial pasture, 864 household constructing Caokulun., 960 household constructing the silo-pit, 638 household procuring the processing equipment and 285 household drilling well. the component of sheds, rehabilitation of pasture and fencing, the forage security establishment greatly improve the feeding condition, increase the availability of the winter forage security and nutrition of the fodder, which could release the heavy pressure of lack of winter fodderand provide warranty for the livestockdevelopmentin the region. Rehabilitation of School and Clinics: there have been 23 schools, 19 clinics been rehabilitated under the emergency program in HuLunBeiEr League, XingAn League and XiLinGuoLe League. The schooling condition and clinical services have been improved in the project area. No primary students were dropped out fromthe schoolbefore the disastercausedby the snowstorm. TechnicaEImpact. The cold and snow day in the project area led lot of livestockdied for the reason of lack of winter fodder and warm sheds within 90-120 days low temperature, the promotion of MARRegional Standardof GreenhouseStyleShedConstructionCode(DB5/T5-9l),Construction Code of Caokulun (DB15IT33-92) and Technical Code of Silage (DB15E534-92) etc. have significantpositive impactto the livestockpractice in the project area. 22  Technique of Greenhouse Shed Feeding: the temperature in the greenhouse shed is much warmer, which create a better condition for flock growing and breeding. The test proved that the temperaturein the shed is normally from 5-18OC, it could reduce the lose of fatness 1.5kgper head of sheet,the lambing survivalrate will be above 90%, the death rate of the lamb can be within 2%, of course, the ventilation and feeding practice need to be address base on the site finding and lessons gained. Fencing and Technique of Caokulun: Implementation of fencing could release the heavy burden to over-grazedrangeland and provide a time and period for the grassland restoration. It was approve to be a cheaper and wide-adopted investment in these area. About 30-100% of the hay production are expected, which could be stored as fodder security in the winter time. The fencing component are welcomed and appreciated by the herders in HuLunBeiEr League and XiLinGuoLe League. The caokulun combining five sub-component of water irrigation, hay or forage, forest belt for protection, motor pump, feed will increase the production of the fodder 5-10 times. However, the effect of the caokulun was discounted for some lower standardmaterial used by somebeneficiaries during the project implementation. Silage: the silage not only provides a effective sources of forage, but improve the nutrition and utilizationrate. Environmental Impact Assessment. The project focuson the four constructioncomponent of shed, artificial pasture, caokulun, and Silage, which will dramatically have positive impact to environment. The shed provide a better condition for flock shed feeding and growing even under the severe situationof wind, Snow and lower temperature;the artificial pasture, fencing, caokulun will increase the storage and security of the hay and forage to reduce the density of the winter nature grazing. It not only improves the income of the herder's household, but also creates the room and space for the grasslandrestoration. Social Impact Assessment. The project was welcomed by all the herders and a great positive impact has been seen and more and more herders were eager to join to the implementation of the project. The following social impact were summarizedbase on the survey and investigationin the field. (1) the implementation of the project relieved the over-heavy pressure to the poor herders livelihood and help them to restore even improve their livestockproduction, (2) the implementation improved the capacity of the herders to resist any further disaster which has been one of the main objective of the project, (3) the project stimulated herders' motivation to transformtheir traditional livestock practice to modem and constructive operation, for instance many non-beneficiarieshave already begun to implementation their infrastructure to improve the efficiency of the livestock business demonstrated by the project result, some of them have already been completed and put into operation; a lot of new sheds, fencing and silage-pit etc. have been built up in the project scattering area; (4) the training program under the project was especially appreciated by all the beneficiaries, as all the project beneficiaries identified have to participate the training before any physical work implemented, even they are loohng forward to learning more knowledge out of the project scope; (5) the project acceleratedthe speed of transformingthe traditional livestock, which heavy rely on the nature grassland to the high-efficient, sustainable livestock development. The well-established fodder security system will build up the solid foundation for the sound livestock development. Experience and Lesson Gained. Providing Good Experience to Borrow for the Future Similar Program. The World Bank enforce the strict and well-organized procedure in the project management, the broad coordination and cooperation form a framework to ensure the unity of the project management,which ensured the whole process nm smoothly from beneficiaries selectionto Disbursementprocess, the interest of the beneficiarieshave been guaranteed. 23  Lesson Gained from The Project. (1) the government should provide their commitment at early of the domestic approval procedure and World Bank regulation will improve the work efficiency; stage of the project, which is the key factor of the successful implementation; (2)the combination (3) it is necessary to simplify the procurement procedure according actual condition of scattered location and constructionsite. ThePerformance Assessment WorldBank Performance. A more sound management optionwas provide and updated under great help from The World Bank although the preliminary scheme was developed by IMARPMO, the three division of project management, Procurement and disbursement have been fully cooperated and linked under The bank's help. The World Bank's instruction transverse instructions consistentlyguide the project implementationprocessbefore-and-after, the Aide-memoir agreedby two parties have been developed after every site visit and review mission. The financial help encouraged the more input of fund from local side and labor contribution. The loan amount not only provided the fund for the livestock infrastructure construction, but trained lot of Project Management Staff, established the mechanism of livestock operation, improved the working efficiencyof local team, all these afford made a great contributionto the successfulimplementation of the project. The World Bank strong support any reallocation of the project component and project fund, which has been proved to be in high risk or unreasonable, for example, the cutting down the component of artificial pasture and reallocate the fund to fencing. The in-time reallocation guaranteed the successful of the project implementation and utilization of the project fund. Performance of Borrower: It was a worthwhile trying to introduce the World Bank Loan to conduct the disasterrecovery program and the project brought great social-economicbenefits to the region. It should be more importantthat IMAR has learned advancedmanagementexperiencefrom the project,trained a lot of high-quality managementstaff in PMOs of each level. The more we did, the better performance we had, which also was accepted by the World Bank Mission. The early mobilization of the project management staff and establishment of the PMOs before the formal agreement signed, successful training program under help from the World Bank built a solid foundation for the successful performance during the project implementation; The site-by-site review and supervision conducted by PMOs in each level according to the requirement of the World Bank to gain the first-hand information of project progress, PMOs made a great afford to amend any errors or discovered shortage of the works; MAR provided enough local counter part fund for the project, any data collection of monitoring, procurement documentation and quarterly report were provided to the World Bank in time. Any problematic issues discovered during the reviewing have been explained and clarified, the necessary steps have been taken to amend any questionablematter and conductedthe followingup survey and monitoring. Jan 2gth,2003 Inner Mongolia Regional PMO 24  Annex 9. Photographs Severelydamaged shed with collapsedroof. New greenhouse shed. 25  26