Document of The World Bank FOR OFFICIAL USE ONLY Report No: 29564 IMPLEMENTATION COMPLETION REPORT (IDA-24470) ON A CREDIT IN THE AMOUNT OF SDR 34.489 MILLION TO THE PEOPLE'S REPUBLIC OF CHINA FOR A REFORM, INSTITUTIONAL SUPPORT AND PREINVESTMENT PROJECT June 29, 2004 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective September 2002) Currency Unit = Renminbi (RMB) Yuan (Y) Y 1.0 = US$ 0.12 US$ 1.0 = Y 8.3 FISCAL YEAR January 1 December 31 ABBREVIATIONS AND ACRONYMS ABC Agricultural Bank of China ADB Asian Development Bank Bank World Bank BTO Back to Office Report CASS Chinese Academy of Social Sciences COSMD Class of Service and Multi-Design CPC Chinese Communist Party DICOM-3 Digital Image Communication for Medicine Ver 3.0 EDI Economic Development Institute EIA Environment Impact Assessment GDLN Global Distance Learning Network ICP International Comparison Project ICR Implementation Completion Report IDA International Development Association IFAD International Fund for Agricultural Development MOF Ministry of Finance MPS Material Product System PIP Project Implementation Plan PMO Project Management Office PROST Pension Reform Option Simulation Toolkit RMB Chinese Currency (Yuan) SAR Staff Appraisal Report SARS Severe Acute Respiratory Syndrome SOE State Owned Enterprises SPC State Planning Commission SRC State System Reform Commission STA State Tax Administration STB State Tax Bureau TA Technical Assistance TCP IV The Fourth Technical Cooperation Project TCP V The Fifth Technical Cooperation Project SARS Severe Acute Respiratory Syndrome SNA System of National Accounting SSB State Statistical Bureau WBI World Bank Institute XBRL Extensible Business Report Language XML Expanded Marketing Language Vice President: Jemal-ud-din Kassum Country Director Yukong Huang Sector Manager Task Team Leader/Task Manager: Zhengxuan Zhu CHINA REF. INST'L.& PREINV CONTENTS Page No. 1. Project Data 1 2. Principal Performance Ratings 1 3. Assessment of Development Objective and Design, and of Quality at Entry 2 4. Achievement of Objective and Outputs 3 5. Major Factors Affecting Implementation and Outcome 6 6. Sustainability 7 7. Bank and Borrower Performance 8 8. Lessons Learned 9 9. Partner Comments 10 10. Additional Information 10 Annex 1. Key Performance Indicators/Log Frame Matrix 11 Annex 2. Project Costs and Financing 21 Annex 3. Economic Costs and Benefits 24 Annex 4. Bank Inputs 25 Annex 5. Ratings for Achievement of Objectives/Outputs of Components 26 Annex 6. Ratings of Bank and Borrower Performance 27 Annex 7. List of Supporting Documents 28 Annex 8. Borrower's Contribution 29 Project ID: P003592 Project Name: Reform, Institutional Support and Preinvestment Team Leader: Zhengxuan Zhu TL Unit: EASRD ICR Type: Core ICR Report Date: June 29, 2004 1. Project Data Name: Reform, Institutional Support and Preinvestment L/C/TF Number: IDA-24470 Country/Department: CHINA Region: East Asia and Pacific Region Sector/subsector: Public Sector Management/Other Public Sector Management Theme: Administrative and civil service reform (P); Infrastructure services for private sector development (P); State enterprise/bank restructuring and privatization (P); Other financial and private sector development (P); Other economic management (P) KEY DATES Original Revised/Actual PCD: 1991-12-24 Effective: 1993-12-03 Appraisal: 1992-05-20 MTR: Approval: 1992-12-15 Closing: 1998-06-30 2003-12-31 Borrower/Implementing Agency: PRC/MINISTRY OF FINANCE Other Partners: Subprojects Implementing Agencies STAFF Current At Appraisal Vice President: Jemal-ud-din Kassum Cheetham Russell Country Director: Yukon Huang Shahid Javed Buki Sector Manager: Dvid Pearce Team Leader at ICR: Zhengxuan Zhu Albert D. Howlett ICR Primary Author: Zhengxuan Zhu 2. Principal Performance 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: L Institutional Development Impact: SU Bank Performance: S Borrower Performance: S QAG (if available) ICR Quality at Entry: S Project at Risk at Any Time: 3. Assessment of Development Objective and Design, and of Quality at Entry 3.1 Original Objective: The project has two principal objectives. The first is to support the Government's program of reform, and related institutional strengthening. The second is to support the Government's investment program. Specifically, the project is to (a) support reform-supportive studies and economic research; (b) help strengthen selected core agencies responsible for macroeconomic management, (c) support local training institutions, including some of those working with Economic Development Institute, and (d) provide an assured and flexible source of financing for technical assistance for preparation of projects expected to be financed by the Bank and IDA, and in selected cases for their implementation. 3.2 Revised Objective: The project objective has not been revised throughout the project implementation. 3.3 Original Components: Reform and institutional development component. The estimated cost of this component was US$ 26.6 million, including US$ 20 million of IDA credit and US$6.6 million of government fund. It consists of subprojects for key core agencies involved in the reform program. At the time of appraisal, agreement was reached with the government on a core list of seven subprojects under this component: (a) the state Statistical Bureau - to strengthen its national accounting system and analysis capability; (b) the Chinese Academy of Social Sciences - to improve its economic analysis and forecasting; (c) the System Reform Commission - to carry out several studies; (d) the State Tax Bureau - to help its capacity strengthening to formulate and implement tax policy; (e) the Ministry of Materials and Equipment - to support its program of reform of the production distribution system for major goods of steel, timber, cement, ferrous metals and vehicles; (f) the Ministry of Finance - to carry out China's program of economic and sector analysis in support of the economic reform program; and (g) the Training networks in health sector, which was supposed to carry out in close collaboration with EDI of the World Bank. The total committed credit amount was around US$ 7 million. Funding reserved for financing of other and additional subprojects are required for approval on a case-by-case basis during project implementation. At the time of appraisal, following subprojects were under consideration: Legal Reform, Training Networks for Agriculture, transportation and Finance sectors, etc,. Preinvestment and project preparation components. Cost estimate of this component was US$ 34.4 million, including US$ 30 million of IDA credit and US$ 4.4 million of government fund. The purpose of this component is to finance feasibility studies and selected project-related studies. Subprojects were selected according to following agreed criteria: (a) preparation of feasibility studies of projects to be financed by the Bank or the Association; (b) selected project related studies; and (c) in exceptional cases, the implementation of such projects. 3.4 Revised Components: Component Credit Government Rating REFORM AND INSTITUTIONAL DEVELOPMENTS $23,680,401.63 4,800,000 S In addition to the seven subprojects approved at the time of appraisal, the following 26 subprojects were approved during the process of implementation: (1) Training network of the transportation sector; (2) Agricultural Sector Training; (3) Public Finance and Management Training; (4) Management Strengthening of Bank Credit/Loan; (5) Bond Trading Custody; (6) Quality Monitoring; (7) National External Debt Management; (8) State Planning commission Training; (9) Quality Monitoring II; (10) Capital Market Financial Management; (11) Institutional and Staff Capacity Strengthening of MOF; (12) Strengthening Provincial Bureaus; (13) Medium and Long Term Fiscal Policy; (14) Strengthening Shanxi Finance; (15) Liaoning Public Finance; (16) Shanghai High Education Reform; (17) Guizhou Investment - 2 - Environment Improvement; (18) Supporting Tax Judicature Study; (19) Wuhu Enterprise Reform; (20) Wuhan Enterprise Reform; (21) Changsha Enterprise Reform; (22) Shengyang Enterprise Reform; (23) System Design on Information Disclosure Database of China's Listing Companies; (24) Promotion of Stability and Development of Medium and small Banks in China; (25) MOL Tackling Key problems in National Employment and Social Insurance Management Information System; (26) Capacity Strengthening in foreign debt Auditing. Component Credit Government Rating INVESTMENT SUPPORT $24,543,917.31 4,860,000 S Twenty two subprojects were approved and implemented under this component. They are: (1) Yanzhou Power; (2) Zhejiang electric Power; (3) Longtan Hydropower; (4) Shengyang Energy Industry; (5) Ertan Transmission; (6) Hunan Water Resources; (7) Hubei Water Resources; (8) Qinbei Electric Power; (9) Toketo Power; (10) Chongqing Industry Reform; (11) Hubei Environment; (12) Gansu Company Development; (13) Yunnan Environment; (14) Shanghai Wai Gao Qiao Power; (15) East China transportation ; (16) Hunan Power Development; (17) Second Tarim Basin Irrigation; (18) Tongbo Pump Storage; (19) Beijing Transmission and Distribution; (20) Baise Multipurpose; (21) Guanzhong Irrigation; (22) Hebei Urban Environment. 3.5 Quality at Entry: Quality at entry is good for the following reasons: (a) The design of the project is in line with the CAS: Since 1980, the fundamental objective of the Bank's Country Assistance Strategy in China had been to provide analytical and material support to the country's economic reform and modernization process; (b) It requires a vigorous dialogue at the national level, supported by a substantial program of economic and sector work, in order to address the Bank's objectives in China to support broad based economic development and to combat poverty. It also requires direct support to key core agencies to strengthen their capacity to carry out the analysis and later to implement major reform measures; (c) This project is able to help the Bank to support a substantial program of lending with a strong reform program; (d) Before this project, three other projects of similar nature were implemented. Lessons of those projects were learned and applied during project preparation, including (i) detailed preparation and design of individual subprojects; (ii) appropriate mechanisms and processes for periodic monitoring of subproject execution; and (iii) flexible, but systematic overall project coordination and management; and (e) Mr. Lewis T. Preston, the then president, expressed his satisfaction over the project preparation, by saying "I am satisfied that the proposed credit would comply with the articles of agreement of the Association". 4. Achievement of Objective and Outputs 4.1 Outcome/achievement of objective: The project objective and outcome were substantially achieved, which met the Government requirement, helped expedite the Government reform process and raised the project preparation quality. Annex 1 provides in detail the achievements of objective and outputs. Part A - Reform and Institutional Development (Credit amount: US$ 23,680,401.63 supporting 33 subprojects). Good achievements were made under this component: (a) About fifteen government agencies and core research institutes responsible for macro economic management, as well as six local governments were directly benefited from the project. (b) Through overseas trips and local studies, researches, international and domestic workshops, as well as international and local consultancies, a lot of new concepts and ideas were introduced, which promoted the government reform. (c) Weakness of various sectors and government administrations were identified, reform needs were defined, good practice were learned and policy recommendations were made accordingly. (d) A substantial part of the recommendations made under the project were adopted by the Government at central and local levels, hence becoming part of the government policies and regulations, or the basis for government legislation set up. - 3 - For examples: (i) A research was conducted by Heilongjiang under A20 on starting up the second undertaking. It's recommendations on the key areas of investment during the second undertaking and their fund mobilization provided good guidance to the provincial economic development. What's more, it is in line with the needs to the "revitalization of the northeast old industrial base", which is a strategic plan put forward recently by the Chinese Government. Based on this, the provincial government issued a series of policies to support the revitalization of the old industrial base. (ii) Guizhou is among the poorest provinces in China. Attracting external investment is one of the effective ways to help the province to get rid of poverty and to develop the provincial economy. Focussed on this issue, the subproject supported several studies, including long-term planning for external investment introduction; the organizational set up, policies and regulations governing external fund introduction and management, the information system and software development, etc. Following the completion of this subproject, the Provincial Merchant Bureau was established, and a series of policy measures governing the external investment were issued by the provincial government based on the recommendations of the subproject. To ensure sound climate for external investors, the government traced the investment climate of thirteen cities and eleven national and provincial development zones, and the tracing reports were made open to the public. (iii) Information disclosure is an important mean to standardize the behavior and actions of the listing companies. A 31 is approved for this purpose. Based on the recommendations of the subproject, the Security Supervisory Board made the decision to push forward the information disclosure of all listing companies in China. Since April 2004, the Board also has requested all the listing companies to use XBRL international standard to issue their annual reports, thus greatly enhancing transparency of the listing companies . (e) In addition, sector reform agenda, and that of the government at local levels are worked out. All these have supported and promoted the government reform process. The project has achieved great success in institutional and staff capacity building and strengthening. Its impact is obvious: (a) Great number of government and core agency staff received overseas and domestic training either through the established training networks under this project, or the individual subprojects. As a result, the trainees opened up their minds and learned best practices, both international and domestic. Many of them got promotion and were able to play a better role in the government decision process by putting forward good recommendations for the decision makers. (b) New models and technologies developed under the project became useful means for smooth and successful transition from the planned economy to the market economy. For example, (i) By implementing A1 subproject, SSB was able to reform its business accounting system from MPS to internationally accepted SNA, which played its due role in helping transmit from the planned economy to the market economy. It also helped SSB to reform its survey method, using sample techniques, both for use in national accounting work and for monitoring of economic trends. (ii) The dynamic annual economic analysis and forecast model, the seasonal model and the enterprise model developed under A2 had helped strengthen the capacity of the Quantitative and Technical Economics Institute of the Chinese Academy of Social Sciences by enabling the Institute to provide the government a quantitative basis for policy making. Its analysis and forecast had become an important source of information for the government, the enterprises, and the academic ranks. (iii) With the subprojects A14 and A17, China was able to adopt internationally accepted quality management and certification system, including the principles, criteria and procedures, thus raising the competitiveness of the government agencies and the enterprises in the international market. (iv) With A 16, the Chinese Government is able to fundamentally change its way of formulating its National Five Year Development Plan. The Ninth National Five-Year Plan (1996-2000) was no longer mandatory, but acted as a guidance. (v) The information management systems set up under A4 (Tax Bureau), A33 (Tackling key issues in Social security) and A34 (Auditing ) subprojects has forcefully strengthened the government's capacity in information collection and analysis, and help link them to the National Golden Tax, Golden Social Security and Golden Auditing Projects. In a word, the government capability in leading macro economic reform and analysis is greatly enhanced. - 4 - In spite of all achievements made, implementation quality of subproject vary. Two SOE subprojects (Whhan and Changsha) were cancelled with no implementation at all. Impact of some individual subprojects is modest, such as A5 - Material distribution system, due to subproject design, and A 32 - Promotion of stability of small and medium banks, due to lack of China experience of the selected international consultants. The whole project was not completed until after four extensions. Part B - Preinvestment and project preparation (Credit amount of US$ 24,543,917.31, supporting 22 subprojects). Given the government's funding and expertise gaps for project preparation, Part B apparently filled the gap and contributed substantially to the enhancement of the preparation quality of the follow up investment projects and ensured their time delivery. Good international experience were learned in the project design. It also enabled the Bank to support a lot of projects with strong reform content. This component led to 18 Bank/IDA follow-up investments, with the exception of three power projects and the Baise Water project, ad the government decided at later stage to invest the projects with its own money. Even though, the project preparation experience and the prepared documents of the subprojects played its due role in ensuring high quality of project. implementation. 4.2 Outputs by components: Annex 1 of this reports provides in details the outputs of the project. Part A - Reform and Institutional Development. The outcomes of this component are in the form of (a) research reports and policy recommendations; (b) new modelling and economic forecast techniques; (c) comprehensive statistical survey system; (d) design of new management and service organizations, such as the small and medium size enterprises service center, and the foreign teaching material center; (e) establishment of the training networks in rural, health, transportation, and finance sectors; (f) national database in auditing, social security, as well as the design for information disclosure system of China's listing companies, etc., Part B - Preinvestment and project preparation. Outputs of this component include: (a) feasibility studies; (b) EIAs; (c) Resettlement Reports; (d) project designs; (e) procurement plan and bidding documents; (f) dam safety documents; (g) PIPs; and (h) others. 4.3 Net Present Value/Economic rate of return: NA 4.4 Financial rate of return: NA 4.5 Institutional development impact: The institutional development impact of the project is positive and substantial: (a) its impact has gone beyond the project itself. The project activity had spurred on similar activities of other research institutes in other sectors and areas and at the various levels. Preinvestment preparation methodology were adopted in projects with other financing sources. Their documents were regard as model for similar projects. (b) The project established a proper administrative system, with the central PMO set up in the International Department of MOF, and subproject PMOs in the concerned agencies and institutes. Their capacity in project implementation and management was en enhanced. (c) Close linkages between the government agencies, the research institutes, universities and the decision makers were established, which has promoted the reform process of the government. - 5 - 5. Major Factors Affecting Implementation and Outcome 5.1 Factors outside the control of government or implementing agency: Nature of the project. This project was not completed until after four closing date extensions. This is largely due to the nature of the project, as economic reform in China is a dynamic process and thus country's needs and priorities are changing along implementation. Subprojects were submitted by the borrower and approved by the Bank in different time slices in order to respond to the changing needs. Also to support a number of important reforms requires more time than was envisaged during the project appraisal and approval. Natural and man-made calamities. The SARS occurred during the first half of 2003, affected largely the overseas Study tours and trainings. It also affected to certain extent the procurement of foreign teaching materials and international consultancy. Frequent changes of the Bank Task Team The Bank's Task Team had changed over four times during the whole project cycle from preparation to ICR. This has brought some adverse effect on the project implementation. 5.2 Factors generally subject to government control: Motivation and Accountability. The positive factor is that the top Government leaders had a strong demand for improving capacity and introducing reforms. There was also strong demand among the beneficiaries for improving skills and institutional capacities. In addition, the Government attached great importance to ensure adequate project preparation of major investment, hence is willing to use the credit for project preparation. In a word, motivation and accountability, as well as the strong government commitment contributed substantially to the successful project outcomes. Government Reorganization. The government reorganization in 1998 had brought both positive and negative impact on the project implementation. The positive factor is that there was stronger demand for institutional strengthening among the government agencies both at the central and local levels. The negative factor is project implementation of some individual subprojects were affected and delayed, due to organization and project staff changes. 5.3 Factors generally subject to implementing agency control: Project organization and structure. The organization and administrative arrangements made for the project, with a Central PMO in MOF and subproject PMO in each implementing agency worked well in general. Sound coordination and good services provided by MOF to the subproject implementing agencies, as well as good performance of the most implementing agencies contributed substantially to the successful outcomes of the project. Staff Turnover. Frequent staff change and turnover has affected to certain extent, the project implementation. During project implementation, MOF staff changed several times, due to government organization and staff rotation system in the Chinese government. Staff of a few individual subproject also changed. Subproject Programming. There is lack of subproject programming and lending program discussion system. All subproject were reviewed and approved on a case by case basis. This could easily cause prolonged implementation. 5.4 Costs and financing: At the time of SAR, the total project cost was estimated at US$ 60,000,000. Among which, US$ - 6 - 50,000,000 was IDA credit and US$ 10,000,000 was government funding. The actual project costs was US$ 57,884,318.94, including 48,224,318.94 of credit and US$ 9,660,000 of government fund, representing 97.03% of the estimated credit amount and 96.6% of the government funding respectively. 6. Sustainability 6.1 Rationale for sustainability rating: The project sustainability is rated as likely. (a) Right from the beginning, MOF and the implementing agencies of various subprojects had retained responsibility for the objectives of the project and the respective sub-projects. Their ownership was strong. (b) For many of the subproject implementing agencies, the activities financed by the credit represented only the first step in improving the techniques, changing the regulatory framework, and altering the fundamental approaches to the scope and methods of their work. The subprojects were continued to make use of the tolls and concepts acquired under the subprojects, and were able to attract other funding sources to expand the their achievements: (i) the Chinese Academy of Social Sciences continued to receive support from the Bank under TCP IV project. The Blue Book - developed under this project has brought about similar activities of other sectors. In addition to Blue Book, there are now Agriculture Green Book, and World Economic Yellow Book. A comprehensive analysis and forecast model system was established, which includes seasonal, annual, as well as medium and long term models. Regional models in some areas were also developed. (ii) One of the major outcomes of A15 is the two software on national foreign debt monitoring and World Bank projects data transmission. These software were developed in 1998 and represented a big step forward in foreign debt monitoring. Based on this, the State Foreign Exchange Administration upgraded these software in 2002 using the government funding, which not only speeded up data transmission, but also made English version available. Because of this project, the Administration was able to get a grant in 2003, to set up the foreign debt forecast and warning system. (iii) As a result of A5 subproject, the Bank approved the Tax Bureau a technical assistance project, specifying on finance and tax reform. (c) The policy reforms and the strong performance of the economy have encouraged these agencies to continue to try new approaches. Again, the government's motivation in economic and sector reform is a strong sense for sustainability. TCP IV was approved in May 1999, and the Government is now working closely with the Bank on the preparation of TCP V. 6.2 Transition arrangement to regular operations: Apart from the continued expansion of the achievements of the earlier completed subprojects, the 4 subprojects completed in the past year have all made transition arrangements: (a) Shenyang SOE Reform: Based on the research on the establishment of the enterprise servicing center, Shenyang Municipal Government has officially approved the setting up of the Center using the government fund. Once it is established, it will provide regular services to the middle and small scale enterprises; (b) Information Disclosure of China's Listing Companies: To strongly push forward information disclosure, China Security Supervisory and Management Committee had made the decision to set up a large scale information disclosure platform in accordance with the recommendations and the design made under the project, to serve the public. (c) National Social Security Network: Under the project, pilots were conducted in Tianjin and Liaoning. At the end of 2003, the social security network was extended to 10 other provinces of Shaanxi, Shandong, Hebei, Henan, Zhejiang, Hubei, Hunan, Fujian, Sichuan and Beijing. The Ministry of Labor and Social Security have made arrangement to further extend the network to cover 20 provinces in 2004, and to link the network established under the subproject to the National Golden Social Security Project (Government funded). By doing so, all information related with social security and statistical analysis data could be sought out at the network, and the social security work will be standardized throughout China; (d) Auditing Capacity strengthening: The arrangements made by the State Auditing Administration are: (i) compilation of the project proceedings, including the international - 7 - best practice, which will be translated and distributed to all the provincial and local auditing bureaus; (ii) The two platforms developed under the project, namely foreign funded projects auditing management and operations, will be extended to all the auditing bureaus and at all levels in 2004. 7. Bank and Borrower Performance Bank 7.1 Lending: Bank's performance in lending is rated as satisfactory. The project objectives is correct and the subprojects identified are consistent with the Bank's strategies and the reform needs of the Government. It is built on the experience gained from the three earlier technical assistance projects. The weakness is that the criteria for subproject selection were broad and not fully prioritized. 7.2 Supervision: The Bank's performance at supervision is also rated as satisfactory. This is a project with 55 subprojects, including 33 under Part A and 22 under Part B. They across many sectors. The credit amount of the subprojects vary. Apart from 7 subprojects which were approved at the time of appraisal, all the others were approved during project implementation, after proper review. The Bank team provided training on procurement, disbursement and project management not only to MOF, but also to the individual subprojects. During the whole process, the Bank Team worked closely with MOF. The project complexity and difficult to supervise is obvious. Great efforts were made by the Bank team to supervise the project during implementation. It met MOF and the subproject implementing agencies on a semiannual basis, to learn the project progress and solve the problems. The Bank team also maintained daily communications with MOF and the subproject agencies through telephone and other communication means. Special meetings were arranged upon needs or request by the Borrower. However supervision was not as thorough across all subprojects as it should have been, as it is merely impossible to visit all the subprojects during supervision. Inadequate resource support/input from sectors also affected, to certain extent, the supervision efficiency. Frequent changes of Task Managers had brought some adverse effect to the effective supervision of the project. 7.3 Overall Bank performance: The overall Bank performance is rated as satisfactory, for its due contribution to the success design and supervision of the project. Borrower 7.4 Preparation: The Borrower performance at the time of project preparation is rated as satisfactory. It collaborated closely with the Bank team to work out the project objectives, the various components, as well as setting up the criteria and procedures for subproject selection, process and approval. 7.5 Government implementation performance: Government implementation performance is rated as satisfactory. Its commitment and support to the project is high and consistent throughout the project preparation and implementation. Technical Division of International Department of MOF performed as the first reviewer of the subproject proposals submitted by various agencies and government at different levels. MOF maintained good contact with the various implementing agencies and provided support and services to them. MOF provided good support to the Bank supervision missions by organizing the meetings and field visits, as well as the compilation of the overall project progress reports. The cooperation between the Government and the Bank remained firm at all times of project implementation and resulted in a positive impact on project performance. Procurement - 8 - ex-post review and the auditing showed that the project was carried out in line with the Bank's legal document and no major issues were discovered. Like the Bank, frequent staff turnover of MOF caused some problem on effective implementation. Absence of ex-post evaluation of the completed subproject is a weakness, which affected MOF and the implementing agencies' learning from past mistakes to improve the project design and implementation in the future. 7.6 Implementing Agency: The performance of the implementing agencies was rated as satisfactory. All the subproject implementing agencies had appointed project staff. They prepared and submitted to the Bank, through MOF, their progress reports on semi-annual basis, and provided useful support to the Bank's supervision missions. They kept good contact with MOF and the Bank team. However performance of different agencies was uneven. Some were less efficient than the others. 7.7 Overall Borrower performance: The overall Borrower performance is rated as satisfactory. 8. Lessons Learned Motivation to obtain know-how is the most important factor to the success and sustainability of the projects. In China, such motivation is strong. The experience of this project shows that a small size credit (for subproject) can have a good impact on the recipient government's policy reforms and institutional strengthening, if its timing is fully aligned with a political window of opportunity for reform. The project involved a process, and a flexible approach. This is appropriate on the one hand, given the uncertainties of the demand for TA and of a changing environment. However on the other hand, it could easily cause implementation delays and difficulties in supervision. Part of the four time extension of closing dates was related to this. To ensure that the project is implemented in a timely manner, yet to respond to the needs of the policy makers, (a) alternative ways should be considered. The Bank and the Government should adopt a more strategic approach to analyze and prioritize the government needs and to identify the most binding constraints to economic development and continued reform. (b) Subproject planning and approval approach should be improved. Case by case approach was adopted under this project. It will be much more efficient if the Bank and the MOF teams meet on a quarterly basis, to discuss the priorities, the assisted areas and to agree on the lending program. To maintain the high implementation and supervision quality, it is important to (a) stabilize the Task Teams of both the Bank and the government; (b) keep a good filing system, to maintain continuity of the project implementation, and to avoid adverse effect in the case of the task team changes; (c) work out the standard formats for project proposal and progress report, as well as the performance indicators, to be strictly followed by all subprojects; (d) encourage involvement of the sector expertise in lending program discussion, subproject request review and approve process, as well as supervision, as such TA projects are involved in multi sectors and multi agencies and at different levels, and their involvement is key to quality insurance; (e) set up the subproject task manager system. Following approval of a new subproject, a subproject Task Manager is appointed, who will work closely with the Task Team Leader, to exercise the full responsibility of subproject supervision and evaluation; (iv) allocate adequate preparation and supervision budget by both the Bank and the Government; (v) training on the Bank operational procedures and regulations, especially on procurement, disbursement and project management, are very important and should be carried out for each subproject before implementation starts. - 9 - To keep the momentum of the TA project, and to allow participation of those potentially priority agencies and localities, it is ideal if MOF and local finance bureaus consider taking the repayment responsibility of the credit/loan, and require repayment only from those revenue-earning agencies. 9. Partner Comments (a) Borrower/implementing agency: The project played a positive role in supporting China's economic reform and promoting China's economic development. International experiences were broadly introduced into Chinese Government's decision making process. A lot of policy researchers and makers were trained to master concerned knowledge and skills to solve new problems and develop new plans in transition from planned economy to market economy. In general, the World Bank Task Team did a good job in guiding and supervising the implementation of the project. They maintained a close cooperation with MOF and subproject implementation agencies. Not only suggestions on procedures, but also suggestions on sector development were available. The ICR prepared by the World Bank Task Team with strong support from MOF factually shows the outcome and impact of the project. Its analysis of lessons learned and proposal of future operations are reasonable. (b) Cofinanciers: N/A (c) Other partners (NGOs/private sector): N/A 10. Additional Information There is no additional information. - 10 - Annex 1. Key Performance Indicators/Log Frame Matrix Outcome/Impact Indicators Indicator/Matrix Projected in last PSR Actual/Last Estimate Professional and technical capability A1 Subproject was successfully completed The impact of the subproject is substantial. strengthening for economic and statistical in around 1998. Professional and technical capability of SSB analysis. was greatly enhanced, which is reflected by (a) China's national accounting system was reformed, from the MPS to the internationally accepted SNA; (b) data collection approaches were upgraded by introducing the sampling techniques; (3) SSB 's training program was strengthened; (d) SSB is able to use the economic data in an analytical context; (e) SSB is able to participate in the ICP within the United nations Framework; and (f) The traditional analysis of pure description is now replaced by qualitative economic model analysis Extending CAAS capacity in undertaking the A2 subprojects was completed in around 1998. Impact is substantial. Implementation of the annual and biennial economic forecasts and subproject has greatly helped enhance the analysis using combined methods of capability of CASS in both conventional quantitative with qualitative analysis of economic analysis and forecast and has laid a economic problems. good foundation for its further development. The economic analysis and forecast made by CASS has become an important source of information on economic development of the government and enterprises, to be used in their decision making process. They have also become source of information for external countries to understand China's economic development trend. CASS established good and longer-term relations with overseas research institutes. Implementation of this subproject spurred similar activities of other government agencies and research institutes, similar analysis and forecast books are published, such as the Agriculture Green Book, etc. Capacity enhancement of SRC on SOE The impact of A3 is positive SRC has a major responsibility in design and reform and Financial Sector reform. . monitoring the overall economic reform program. SOE reform and Financial Sector reform were two key areas SRC focused on at the time of subproject approval. To make the reform successful, it was important to help enhance the capacity of SRC staff. The subproject has played its due role in this respect. Through overseas studies and trainings, as well as international workshops, SRC staff's capacity was enhanced in areas of enterprises structure; law framework of enterprises, operation of enterprises; organization and management of state controlled companies. It also included areas of foreign currency management, personal income system; finance and tax system, government bond market, etc. Capacity strengthening of STB. A4 subproject was completed in 1996 Impact of this subproject is substantial. STB is an agency responsible for drafting new tax laws to support China's reform program, and in particular, in areas of corporate and personal income taxation, as well as the turnover tax. Under the subproject, quantitative examination of the Chinese tax system and reform alternatives was conducted, based on the collected - 11 - information on enterprises, which has an important bearing on China's tax reform. Institutional capacity building and strengthening were realized accordingly. Following the completion of this subproject, STB was upgraded as STA. In addition, as a result of this subproject, a tax reform technical assistance project was approved by the Bank in 1995, which is linked to the National Golden Tax Project. Reform the Materials Distribution System A5 subproject was completed in 1998 The subproject gained some positive impact in helping . China's Material distribution system reform, which was traditionally monopolized by the state. However the impact was not as substantial as expected, as the subproject design was not focussed. Capacity strengthening of MOF in economic A6 subproject was completed in 2002. The impact is positive. During the study. implementation period, over 20 studies were conducted, in the heated reform areas of urban employment and salary reform; public investment and co-financing, capital market development, 21st century education etc,. Institutional and staff capacity of the concerned agencies was raised. Capacity building and enhancement of the A7 subproject was completed in 2000. The subproject achieved great success. Six Public Health Administration through training and research centers of the medical establishment of the training network universities of Beijing, Shanghai, Wuhan, Harbin, Xian and West China participated in the network. By close collaboration with WBI, several hundreds people, including senior local health officials received training and participated in the international workshop, as well as field visits. In addition, Website Learning program was formulated, over 13 courses for the trainers were conducted. Health economy, which was new to China at the time of subproject approval, gained great progress. A lot of recommendations made by the subproject received attention and accepted by the government, such as the Decision of the Central Committed of the Chinese Communist Party (CPC) on Health Sector Reform and Development. The subproject laid a good foundation for further deepening the reform in the health sector. The health sector is now better linked with the international society. Capacity strengthening of the transport sector A8 subproject was completed in 1999. The training network include fourteen through establishment of the training network institutes and universities concerned with transport. Due to government reorganization and staff changes, only about half of the subproject activities were carried out, thus the impact is lag behind the expectation. A9 Capacity strengthening of the rural sectorA9 subproject was successfully completed in Nine training institutes under the constituent through establishment of the training network1998 ministries and agencies participated in the subproject activities. Over 1,000 people, including the medium and senior level professional staff received Training for trainers were also conducted. The impact on the capacity building and strengthening is substantial. The subproject also played its due role in promoting the international cooperation of the concerned organizations with other countries. Tianjin College of ABC signed cooperation and partnership agreement with the University of US. The Northeast Forestry University established the Training Center on Wildlife protection and - 12 - Management. Strengthening of China's Financial A10 subproject was completed in 1999. Finance universities under MOF participated Management Training Network in the subproject. Impact of the subproject is good. During the implementation period, over 800 officials in the financial sector, both at the central and local levels received training. As a follow up of this subproject, MOF formulated the national financial sector training program for years 2001-2005, under which, a total of 700,000 people have been receiving training. The training, although funded by the government, it applies training methodology learned under this subproject. GDLN training is developed. In addition, 18 training centers were set up in different parts of the country. A Memorandum of Understanding was signed between MOF and WBI, to further expand the training opportunities. Capacity strengthening of the world Bank A11 subproject was successfully completed in The impact of this subproject is positive. Department of MOF, to enable better 2000 Key staff were sent overseas to study master cooperation with the World Bank and PhD, in areas of macro economic management, public management and project management. Staff engaging in the World Bank affairs received short-term training on project management. All these have laid food foundation for better cooperation between the World Bank and China. With capacity strengthening, the Department staff are able to manage a larger portfolio to include also operations of ADB and IFAD. Capacity Strengthening of the Chinese A12 subproject was completed in 1998. At the time of subproject approval, China Government in Controlling the State Bond was in its initial stage of issuing the state through Setting up of a State Bond Trading bond. It is important to standardize the Custody and Monitoring System state bond market, hence essential to strengthen the Government's capacity in controlling the State Bond. The subproject provided the government with a useful tool to realize its objectives through setting up of a State Bond Trading Custody and Monitoring System. In this respect, the subproject impact is very positive. Raise the competitiveness of China's A14 & A17 subprojects were completed in The impact is great. First it aroused the enterprises through setting up of quality 1997 & 2000 respectively. awareness of the government and the management and certification system enterprises of the importance of the product quality, and its relations with the enterprise competitiveness. Second, through consulting services, overseas trips and international workshops, both the Government and the enterprises learned the technical skills for quality management and certification. Third, the government and the enterprises had a better understanding of the legislation implication to the effective operation of such system, hence the legislation set up was promoted. Enhance China's capacity in external debt A15 subproject was completed in 1999. The National Foreign Debt Statistics and statistics and supervision Monitoring System was first developed in 1987. To raise both the speed and quality of the work, it was an urgent need to upgrade the system. The subproject played an important role in helping upgrade the system through a series of studies and workshops. The software developed In 1998 under the subproject was proved quite effective. Based on this, the government once again upgraded the software with its own funding in 2000. Introducing new method for formulating the A16 subproject was completed in 1996. China used to formulate mandatory Five National Five Year Plan Year Development Plan under the planned - 13 - economy. To help transit from the planned economy to market economy, It is an urgent need to alter the traditional method. In this regard, concept change is essential. The subproject objective was realized through sending senior staff of SPC to study and got training in US Stanford University. The National Ninth Five Year Development Plan (1996-2000), abolished for the first time the mandatory plan, and was replaced by the Guidance Plan. Capacity Strengthening of SPC in risk A18 subproject was completed in 2000. The subproject objective was reached management of international capital flow through overseas studies and international consultancy services. It had also good impact on enhancing the project management skills of SPC staff, in areas of post evaluation and international competitive bidding. As a result of this subproject, SPC issued a series of policy measures on standardizing co-financing and foreign debt risk management. Capacity Strengthening of MOF The outcome/impact of A19 is likely to This subproject was approved in 1998, when achieve. It was completed in 2003. the government reorganization took place. To fulfill the missions of MOF and to meet the needs of reform in the finance sector, capacity enhancement of MOF staff was essential. Supported by the subproject, senior officials, key professional staff and promising young professional received training or degree studies overseas in different areas of the finance sector. Those who had completed their studies/trainings all returned to MOF and are playing a better role in MOF's work. Many of them got promotion because of their outstanding performance. Capacity strengthening of Heilongjiang A20 subproject was completed in 2001. The subproject received quite positive impact Finance Department in supporting economic in promoting economic development of the development and foreign fund management. province through researches, study tours and training. Over 2000 people received training. About 47 staff gained master degree. Many had published their paper in the local economic newspapers. In addition, through the training courses of accounting and government procurement, the participants mastered the new accounting methods and had a better understanding of the basic theory and the related legislation. People are better aware of the risk management. The research on Starting the Second Undertaking was forward looking, and was of particular significance to the revitalization of Northeast old Industrial Base, a strategy put forward by the government recently. Capacity Strengthening of MOF in analyzing The achievement of A21 subproject objective Through large number of studies and and forecasting the long and medium term is likely. researches on the key issues related to fiscal development trend, as well as fund financial sector reform, the capacity of MOF management of the state finance. was strengthened, especially in areas of fiscal development trend forecast, as well as fee levy, collection and their management. The research result had an important impact on reducing the farmer's financial burden. In 2003, MOF issued a circulation, calling for reducing the farmer's financial burdens by standardizing rural fee levies. Rolling fiscal plan System was also initiated by MOF based on the recommendations of this subproject. Capacity Strengthening of Shanxi Finance in A22 subproject was completed in 2001. Impact of the subproject is very positive in policy study and World Bank project two aspects: (a) policy study: Studies were management. carried out on key issues related to finance - 14 - sector reform, especially in areas of finance income distribution mechanism, Regional Finance; relations of industrial policies and finance policies, etc.. Based on the recommendations made of the above studies, Shanxi Government issued a circulation in December 2001,to adjust the finance management system of prefecture/municipal level. (b) Strengthened World Bank Project management through training on computer use, and foreign debt risk management. Capacity strengthening of Liaoning Finance A23 subproject was completed in around The subproject brought Liaoning Finance Department in tackling key problems in the 2001. good impact on key areas of financial sector, financial sector. especially in the social security reform through support to a series studies and researches related to social security reform. A series of policies and methods were promulgated by the provincial government related to social security and government procurement. Due to its good performance, Liaoning was selected by the Ministry of Labor and Social security, as a pilot in the national social security reform. It was also among the first provinces to apply government procurement. Higher Education Reform in areas of The expected impact of A24 subproject is After initial delays (due to government teaching material and teaching method, and likely to reached. reorganization), implementation of this achieving resource sharing among Shanghai subproject gained good success. It had an Universities important bearing on Shanghai higher education reform, especially in areas of teaching material and teaching methods: (a) Resource sharing among Shanghai based universities was realized, through the establishment of a foreign teaching material center. The large number of teaching materials procured under the subproject were placed in the center; (b)Shanghai higher education reform was promoted through application of new management and teaching models; and (c) Better information access through website setting up. (d) enhancing teaching quality. This is in particular in medical teaching. The subproject had enabled the Shanghai Medical University to use the computerized image to teach and to cure the patients. Due to good result, Shanghai Higher Education Bureau had decided to expand the subproject achievements with its own fund. Attracting external investors to Guizhou A25 subproject was completed in 2001. Guizhou is a poor province in southwestern China. To raise the competitiveness of Guizhou Province, so as to promote sustainable economic development had been a major objective of the province. To attract external investors was an important mean to realize such objective. Based on the recommendations of the subproject related to the attraction of external investment, the Provincial Merchant Bureau was set up in 2001, a series of policies and regulations were promulgated by the provincial government, including the institutions set up; investment climate indicators and its monitoring, as well as the related software development. The long-term plan for attracting the external investment was also worked out. A project database was set up, which has inputted over 3000 selected projects, about RMB 3-4 billion Yuan had already been introduced to the province. - 15 - Tax related Judicature study The subproject A26 was completed in 1996 The purpose of this subproject is the support tax reform through setting up of the check team and legislation set up, which was largely realized. It has laid a good foundation to the check team set up. Wuhu SOE reform promotion The outcome/impact of A27 is likely to The subproject had good Impact on Wuhu realize. SOE reform through researches on: (a) regrouping of properties & debts of some selected individual enterprises; (b) formulation of medium and long-term development plans of a number of enterprises; (c) design of the Consulting Company for Small and Medium sized Enterprises; and (d) staff training on applied technology and degree study of the senior managerial personnel of the government and the enterprises. Quite many people found their new jobs after training. SOE reform of Wuhan SOE Reform A28 subproject was not implemented. Due to change of the Bank's Task Manager, implementation was delayed and caused ultimately the subproject cancellation. A29 Promotion of SOE Reform of A29 subproject was not implemented. Cancellation of this subproject was caused Changshan by the staff change of the implementing agency. Also because the original subproject design was behind the needs of enterprise reform. Promotion of Shenyang SOE reform The outcome/impact of A30 is likely to realize.The objective was basically reached. The strategic paper on Shenyang SOE reform and industrial development prepared under the subproject made its due contribution to revitalize the Northeast Old Industrial Base, which is the national government's strategy. Promotion of information disclosure of the The outcome/impact of A31 is likely to realize.The impact of the subproject was great. listing companies. Implementation of the subproject clarify issues related information disclosure of China's listing companies, and enabled transparency of the listing companies, which was in favor of standardizing the behavior and actions of the listing companies. XBRL criteria has been extended nationwide in China ever since April 2004. Because of this subproject, the Security Supervisory Board decided to establish large scale information disclosure platform. Promote steady development of medium and The outcome/impact of A32 is basically Impact of this subproject is not even. small sized commercial bank though setting positive, however could be better. Overseas trips provided China with useful up the exit mechanism of China's small and experience in areas of entry and exit of small medium banks. and medium sized banks, the related operational procedures, as well as risk prevention through establishing deposit insurance and the risk forecast system. However the consulting service did not reach the expectation of the implementing agency, as the consulting company had little knowledge about China's small and medium commercial banks. Key problem research on Labor and Social The outcome/impact of A33 is likely to be Impact of this subproject was substantial. Security Information management realized. Based on the pilot in Liaoning and Tianjin, the National Social Security System became high quality and realized information sharing between Central and provincial levels is realized. New technology was used, such as PROST. These have laid a good foundation for the standardizing the social security work. The subproject has provided good recommendations to the policy makers. Forecast of pension insurance fund needs using PROST model facilitated the pilot work in Liaoning. Ministry of Labor and - 16 - Social Security issued a circulation in December 2003, on setting up of unified nationwide social security information system, which was connected to the National Golden Social Security Project. Standardize China's auditing on foreign debt, The outcome/impact of A34 is likely to be Impact of this subproject was substantial. It to reduce foreign debt risks reached before the closing date of December undertook useful exploration on a series of 31, 2003. key issues, including proper foreign debt management system, risk prevention and improving the auditing methods. It had indicated in particular the way to extend the auditing experience of the World Bank project to other foreign funded projects. The extensive use of the auditing management and operational platforms had helped raise auditing management and standardize the auditing procedures throughout China. Part B: Enhance the investment preparation Part B: All the subprojects were completed Part B: Given the apparent funding and quality and project. before 2000, which bought good impact on expertise gaps for project preparation, the project preparation quality. Implementation of part B subprojects has helped raise the preparation quality, ensure project delivering in a timely manner, and avoid implementation problems caused by poor preparation. Output Indicators Indicator/Matrix Projected in last PSR Actual/Last Estimate Introducing national accounts based on A1 subproject was successfully completed in The output indicators were fully SNA; Developing economic statistics based 1998. materialized: (a) SNA is introduced, which on business and enterprise survey using enabled connection of SSB with the sampling techniques; use economic data in international practice; (b) A comprehensive an analytical context statistical survey system is established, focusing on sampling techniques; and (c)the economic forecast model was worked out. Annual and biennial economic forecast; A2 subproject was completed in 1998. All listed outputs were materialized. In providing quantitative basis for policy addition to the annual and biennial economic making; a model specifically for decision forecast, the subproject enabled CASS to making of the enterprises; setting up of a provide the Chinese Government the small scale database and a computer network quarterly report. It published, on a regular for economic analysis and forecast. basis, the annual report on China's economic analysis and forecast, both in Chinese and English. It has also set up information center and website for China's economic analysis and forecast Improved government policies, laws and A3 subproject was completed in 1996. Following the completion of the subproject, regulations governing enterprises and finance the State Council and SRC formulated a series of reform policies in the financial sector and SOE reform. research reports and tax management A4 subproject was completed in 1996. Four research reports were completed, software concerning tax statistics, real estate tax levy, technical specifications for tax levy and computerized tax management. The design for computerized tax management was worked out, software were procured. Principles and prerequisites for the A5 subproject was completed in 1998. Based on the set principles, a commodity establishment of trading centers transaction network was set up, and based on this, a National Commodity Distribution and Servicing Center was established by China's Material Storage and Transportation Company after the subproject completion. Research reports A6 subproject was completed in 2002. Research reports were prepared and submitted, in areas of urban employment and salary reform; public investment and co-financing; development of capital market; China's foreign trade policy; - 17 - modern enterprise system; state property; Pension system reform, development of the tertiary industry; long-term food security; Expenditure of the Public Sector; 21st century education; and SOE reform, etc,. Establishing the training network for health A7 subproject was completed in 2000. The training network in health sector was sector, and research reports established. research reports submitted included Fund mobilization of health care in poor areas; Financial resources for urban health care; Hospital's operational behavior; Experience of the developed areas on health reform and development; regional health plan; pilot on health care in poor areas; reform and improvement of health care system of the enterprise employees; rural cooperative medical care system of the economically developed areas; impact of tax/fee reform on health care fund mobilization in rural areas; price for medical services; evaluation on the private health organizations; possibility of setting up of state shareholding hospitals; and analysis on irrational increase of medical fees and their control, etc,. Training network set up; Formulation of the A8 subproject was completed in 1999. The training network in transportation training plan targeting on the decision makers sector was set up. Based on a survey to of the transport sector, as well as the over 60 senior management of both the managers of large and medium sized concerned government agencies and the transportation enterprises; enterprises, training goals and activities for three years of 1996-1998 was formulated. Training network set up of the agricultural A9 subproject was completed in 1998. The training network was set up in the sector; Development of training materials. agricultural sector. Two teaching materials were worked out: (a) management and analysis of the agricultural projects; and (b) design and management of government official training. Formulation of the national training program.A10 subproject was completed in 1999. About 20 training courses on finance related subjects were conducted,26 MOF staff were sent overseas either as visiting scholars, or receiving short term training. All of them submitted to MOF management their training reports, following their returning to China. After the completion of this subproject, MOF formulated the national training program for the period of 2001-2005 Training reports A11 subproject was completed in 2000. About 30 MOF staff were sent overseas to study Phd. MOF and local finance staff responsible for World Bank affairs received overseas training. All these have enhanced their capacity in world Bank project management and improved cooperation with the World Bank. General design of the State Bond Trading A12 subproject was completed in 1998. The design was completed. Computerized Custody and Monitoring System issuing and transaction of the state bond was realized. Related reports on quality management and A14 & A17 subprojects were completed in The subproject was able to introduce the certification. 1997 & 2000 respectively. internationally accepted principles, criteria and procedures for quality review and certification. Four research reports were prepared: (a) Reviewing and approval procedure of quality certification; (b) International criteria for quality examination; (c) Methods to establish the international quality system; and (d) preview of quality framework. Software development for foreign debt A15 subproject was completed in 1999. Two software were developed: (a) National statistics monitoring Foreign Debt Statistics and Monitoring System; and (b) Transformation of World Bank Project Database. - 18 - National Ninth Five Year Development Plan A16 subproject was completed in 1996. This is the first time that the Chinese Government using the new model (guidance planning) to formulate the Ninth National Five Year Plan. Consultancy report on the foreign capital A18 subproject was completed in 2000. The repot was submitted by the flow and risk management international consultant. Back To Office Reports (BTOs) The output will be materialized. A19 All staff received training under submitted to subproject was completed in 2003. MOF management their BTOs upon returning to MOF. Research reports. A20 subproject was completed in 2001. Eight research reports were prepared by Heilongjiang Provincial Finance Department, (a) transfer payment, (b)key policy issues for regrouping the large and medium enterprises, (c)accounting staff education; (d)criteria for listing and circulating the state stock, (e) northeast finance policies, (f) finance and currency study; (g) research on setting up the provincial investment company using state property, and (h) start the second undertaking, which is of particular significance of revitalizing the Northeast Old Industrial Base. Policy recommendations on reforming the fee The output of A21 is likely to be realized. Policy recommendations were made on (a) levies Establishment of the framework of public finance; (b) establishment of finance and tax monitoring system; (c) Tax for fee reform: (d)methods to formulate long-term finance plan; and (e) increase the farmer's income, etc,. Research reports on key issues in finance A22 subproject was completed in 2001. seven research reports were prepared: (a) reform of Shanxi Province Thee major mechanisms for Shanxi Finance; (b) regional finance; (c) training and education of the finance staff; (d) industrial and finance policies in favor of economic structure adjustment; (e) foreign fund utilization and their risks; (f) Shanxi finance system; and (g) improving transfer payment at levels below the province. Research reports in institutional capacity A23 subproject was completed in 2001. A23 Five research reports were prepared: (a) strengthening of Liaoning Finance social security; (b) government procurement; (c) crop structural adjustment and its supporting policies; (d) SOE reform and development; and (e) grain management information system. Establishment of Shanghai foreign teaching Outputs of A24 are likely to be realized. The center for foreign teaching materials is material center; development of distant set up, which collects over 3000 teaching learning and computerized teaching; materials from famous universities of the construction of medical image information world; The central website for foreign center in Shanghai Second Medical teaching materials were constructed and University; database set up; Shanghai Second medical University, through establishment of the image bank, XML database as well as DICOM-3 and COSMD software, was able to use the image to teach and for clinic purposes, thus greatly enhanced its capability. Institution set up for introducing external A25 subproject was completed in 2001. About 12 research reports were prepared and investment. published concerning the attraction of external investment. As a result, The External Investment Introducing Bureau was set up, with related software developed. Study reports for setting up the tax check A26 was completed in 1996 Study reports were prepared: (a) tax police police set up and their management; (b) type of tax abuse and their punishment; (c) legislation set up and their implementation; (d) check procedures. Formulation of SOE reform program for The outputs of A27 are likely to be achieved The subproject helped three SOEs formulate some selected enterprises; Design of medium before the closing date of December 31, 2003. either the regrouping program, or the and small enterprise consulting company; long-term development plan and market Setting up of Wuhu Labor resources and strategy; The design for the medium and - 19 - social security management system. small enterprise consulting company was also completed. The Wuhu Labor resources and social security management system had already covered the county level. Formulation of SOE program of selected A28 subproject was cancelled. Not done. enterprises. Formulation of SOE program of selected A29 subproject was cancelled. Not done. enterprises; on job training for enterprise workers Formulation of the Strategic Paper of The outputs of A30 are likely to be achieved The strategic paper of Shenyang enterprise Shenyang Enterprise Reform and Industry before the closing date of December 31, 2003. reform and industrial development was Development; Research report on setting up completed and published. Based on the of the servicing center for medium and small design made under the subproject, the sized enterprise. provincial government had decided to set up the Service Center for the medium and small sized enterprises. Design of the database for information The output of A31 is likely to be achieved Design was finalized by the consulting disclosure of China's listing companies before the closing date of December 31, 2003. company following four workshop, discussions and evaluations by the invited specialists of the implementing agency. The concerned staff received training on XBRL. Policy recommendations for stability and The output of A32 was materialized. The policy framework for medium and small development of medium and small banks. bank stability and development was Translation of overseas research papers completed. However it could be better if the consulting company had better knowledge about China's medium and small banks. The procured overseas paper of "Risk management of the banks - experience of the United States of America" was translated. Formulation of criteria for employment and The outputs of A 33 are likely to be achieved Criteria for employment and social security social security information system; various before the closing date of December 31, 2003. information system was worked out, which research reports. have promoted information standardization. A series research reports were prepared, including: (a) Analysis on the national labor market information network; (b) Analysis of the information system on social security; (c) studies on social security information systems of Henan, Changchun Shanghai, Liaoning,, Yichang, Sichuan Guizhou, Inner Mongolia and Ningxia; (d) Forecast of pension insurance fund of Liaoning enterprises; (e) index for social security information; (h) regulations governing the use of personal social security card, etc. The outputs covers two aspects: (a) two The outputs of A34 are likely to be achieved The research reports are completed and publications: (i) Management and Auditing before the closing date of December 31, 2003. published. The management and information of the Government Foreign Debts; (ii) Case system was set up with two platforms of Study on the World Bank Credit/Loan management and operations developed, Projects auditing. (b) Development of the which would be extended nationwide in Management and Information System of 2004. Foreign Fund Projects. Prepare project preparation related All subprojects of Part B were completed Project preparation documents were documents. before 2000. prepared, including PIP, EIA, resettlement plan, feasibility studies, dam safety, project design, etc., with high quality. - 20 - Annex 2. Project Costs and Financing Component Appraisal Estimate Actual/Latest Estimate Percentage of Appraisal US $ US$ (%) Part A: Reform and Institutional Development 1 National Accounting System 1,032,943.80 1,032,943.80 100 2 Modeling and Forecast 780,137.12 858,405.50 110 3 Studies in Support of Reform 1,474,852.84 1,474,852.84 100 4 Tax Reform 871,432.25 871,432.25 100 5 Materials Distribution System 981,432.84 981,432.84 100 6 Economic and sector Analysis 488,185.09 425,929.22 87.25 7 Training Network of Health 1,380,443.89 1,300,368.88 94.20 8 Training Network of Transportation * 512,240.13 214,610.91 41.90 9 Training Network of Rural Sector 1,529,013.93 1,529,013.93 100 10 Public Finance and Management Training 1,076,403.93 1,042,149.16 96.82 11 Development of Capacity of the World Bank 343,641.75 342,712.12 99.73 Department of MOF 12 Bond Trading Custody 110,166.08 110,166.08 100 13 Institutional Strengthening of Transportation 0 0 0 Sector 14 Quality Monitoring I 1,458,275.62 1,458,275.62 100 15 Capacity Strengthening of National External 281,882.32 282,020.80 100.05 Debt Bureau 16 Staff Training of the state Planning 294,575.88 294,575.88 100 Commission 17 Quality Monitoring I 864,892.41 864,892.41 100 18 Capital Market Risk Study 109,900.33 105,350.49 95.85 19 Institutional and Staff Capacity Building of 4,185,605.73 4,045,287.27 96.65 MOF 20 Capacity Strengthening of Heilongjiang 504,226.52 490,087.93 97.20 Finance Administration 21Medium and Long Term Fiscal Policy 674,460.98 661,518.77 98.08 22 Capacity strengthening of Shanxi Finance 512,529.26 550,399.93 107.39 Administration 23 Capacity strengthening of Liaoning Finance 328,421.80 300,046.48 91.36 Administration 24.Shanghai High Education Teaching Material 1,032,731.78 1,032,340.42 99.97 Reform 25 Institutional Strengthening of Guizhou 300,428.91 187,523.35 62.42 Government 26 Judicature Study 306,780.65 222,246.08 72.44 27 Wuhu SOE Reform 670,327.15 625,444.93 93.30 28 Wuhan SOE Reform 492,366.42 0 0 29 Changsha SOE Reform 601,780.37 0 0 30 Shenyang SOE Reform 449,514.41 449,375.36 99.97 31 Information Disclosure of 682,191.76 639,867.01 93.80 China's Listing Companies 32 Promotion Stability of Small and Medium 527,174.49 465,063.67 88.22 banks 33 Tackling Key Problems in Labor and Social 523,283.45 501,577.73 95.85 Security 34 Capacity Strengthening of the State Audit 225,851.47 222,368.37 98.46 Bureau Part B: Preinvestment and Project Preparation 1 Yangzhou Power Plant 2,196,402.98 2,196,402.98 100 2 Zhejiang Power Development 1,144,801.71 1,144,801.71 100 3 Longtan Hydropower 2,105,500.87 2,105,500.87 100 4 Shenyang Engineering Industry 878,978.36 878,978.36 100 5 Ertan Power Transmission 2,422,684.12 2,422,684.12 100 - 21 - 6 Hunan Water Resources 346,693.39 346,693.39 100 7 Hubei Water Resources 301,772.08 301,772.08 100 8 Henan Qinbei Electric Power 682,890.42 682,890.42 100 9 Inner Mongolia Tuoketuo Power Project 1,848,598.24 1,848,598.24 100 10 Chongqing Industry Reform 382,953.71 382,953.71 100 11 Hubei Environment 81,206.30 81,206.30 100 12 Hexi Corridor 47,499.03 47,499.03 100 13 Yunnan Environment 186,992.37 186,992.37 100 14 15 Shanghai Waigaoqiao Power Plant 3,483,069.68 3,483,069.68 100 16 East China Power Transmission 2,287.105.87 2,287.105.87 100 17 Hunan Power Development 1,384,215.95 1,384,215.95 100 18 Tarim Basin II 735,845.89 735,845.89 100 19 20 Tongbo Pump Storage 437,220.16 902,762.29 206.48 21 Beijing Power Transmission and Distribution 73,400.00 73,400.00 100 22 Baise Multipurpose Development 1,257,450.23 1,257,450.23 100 23 Guanzhong Irrigation 743,873.32 1,002,556.55 134.78 24 Hebei City Environment 790,537.27 790,537.27 100 General* 272,383.96 98,121.60 Total 49,700.171.27 48,224,318.94 97.03 * This category is for funds set aside in the general categories that were not reallocated to subcategories, as well as the gain recognized in the Special Account. Summary Table Original Principal (US$) 50,000,000.00 Disbursed (US$) 48,224,318.94 % of Disbursed 97.03 Undisbursed (US$) 1,775,681.06 Project Costs by Procurement Arrangements (Appraisal Estimate) (US$ million equivalent) 1 Procurement Method Expenditure Category ICB NCB 2 N.B.F. Total Cost Other 1. Works 0.00 0.00 0.00 0.00 0.00 (0.00) (0.00) (0.00) (0.00) (0.00) 2. Goods 0.00 9.10 3.00 0.00 12.10 (0.00) (8.70) (2.80) (0.00) (11.50) 3. Services 0.00 0.00 31.70 0.00 31.70 (0.00) (0.00) (26.50) (0.00) (26.50) 4. Training 0.00 0.00 16.20 0.00 16.20 (0.00) (0.00) (12.00) (0.00) (12.00) 5. Miscellaneous 0.00 0.00 0.00 0.00 0.00 (0.00) (0.00) (0.00) (0.00) (0.00) 6. Miscellaneous 0.00 0.00 0.00 0.00 0.00 (0.00) (0.00) (0.00) (0.00) (0.00) Total 0.00 9.10 50.90 0.00 60.00 (0.00) (8.70) (41.30) (0.00) (50.00) Project Costs by Procurement Arrangements (Actual/Latest Estimate) (US$ million equivalent) - 22 - 1 Procurement Method Expenditure Category ICB NCB 2 N.B.F. Total Cost Other 1. Works 0.00 0.00 0.00 0.00 0.00 (0.00) (0.00) (0.00) (0.00) (0.00) 2. Goods 0.00 1.10 5.59 0.00 6.69 (0.00) (1.00) (4.63) (0.00) (5.63) 3. Services 0.00 0.00 31.16 0.00 31.16 (0.00) (0.00) (26.20) (0.00) (26.20) 4. Training 0.00 0.00 20.04 0.00 20.04 (0.00) (0.00) (16.40) (0.00) (16.40) 5. Miscellaneous 0.00 0.00 0.00 0.00 0.00 (0.00) (0.00) (0.00) (0.00) (0.00) 6. Miscellaneous 0.00 0.00 0.00 0.00 0.00 (0.00) (0.00) (0.00) (0.00) (0.00) Total 0.00 1.10 56.79 0.00 57.89 (0.00) (1.00) (47.23) (0.00) (48.23) 1/Figures in parenthesis are the amounts to be financed by the Bank Loan. All costs include contingencies. 2/Includes civil works and goods to be procured through national shopping, consulting services, services of contracted staff of the project management office, training, technical assistance services, and incremental operating costs related to (i) managing the project, and (ii) re-lending project funds to local government units. Project Financing by Component (in US$ million equivalent) Percentage of Appraisal Component Appraisal Estimate Actual/Latest Estimate IDA Govt. CoF. IDA Govt. CoF. IDA Govt. CoF. Part A: Reform and 20000000. 4000000.0 23680401.6 4800000.0 118.4 120.0 Institutional Development 00 0 3 0 Part B: Preinvestment and 30000000. 6000000.0 24543917.3 4860000.0 81.8 81.0 00 0 1 0 - 23 - Annex 3. Economic Costs and Benefits N/A - 24 - Annex 4. Bank Inputs (a) Missions: Stage of Project Cycle No. of Persons and Specialty Performance Rating (e.g. 2 Economists, 1 FMS, etc.) Implementation Development Month/Year Count Specialty Progress Objective Identification/Preparation 03/92 1 Technical Assistance S 2 Training S Appraisal/Negotiation 07/92 1 Technical Assistance S 1 Operations S 2 Training S Supervision 06/25/1993 1 SCO 03/02/1994 1 SCO 12/16/1994 1 SCO S HS 07/19/1995 1 SCO S HS 06/26/1997 2 TM, CO S HS 12/18/1998 4 TTL, FDS, PS and C S HS 11/24/2000 4 TTL; 2 FDS, PS S S 05/18/2001 2 TTL; PS S S 11/26/2001 2 TTL; PS S S 05/20/2002 2 TTL; PS S S 11/18/2002 2 TTL; PS S S 06/16/1003 2 TTL; PS S S 09/24/2003 2 TTL; PS S S ICR 04/20/2004 2 TTL; PS S S 05/31/2004 1 TTL S S TA: Technical Assistance Specialist T:Training Specialist O: Operations Officer SCO: Senior Country Officer TM: Task Manager CO: Country Officer FDS: Financial and Disbursement Specialist PS: Procurement Specialist C: Coordinator TTL: Task Team Leader (b) Staff: Stage of Project Cycle Actual/Latest Estimate No. Staff weeks US$ ('000) Identification/Preparation 146.84 Appraisal/Negotiation Supervision 276.54 ICR 27 Total 450.38 According the Bank's record, there are only two categories: LEN and SPN. Therefore the above 146.84 covers both identification/preparation and appraisal/negotiation. - 25 - Annex 5. Ratings for Achievement of Objectives/Outputs of Components (H=High, SU=Substantial, M=Modest, N=Negligible, NA=Not Applicable) Rating Macro policies H SU M N NA Sector Policies H SU M N NA Physical H SU M N NA Financial H SU M N NA Institutional Development H SU M N NA Environmental H SU M N NA Social Poverty Reduction H SU M N NA Gender H SU M N NA Other (Please specify) H SU M N NA Private sector development H SU M N NA Public sector management H SU M N NA Other (Please specify) H SU M N NA - 26 - Annex 6. Ratings of Bank and Borrower Performance (HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HU=Highly Unsatisfactory) 6.1 Bank performance Rating Lending HS S U HU Supervision HS S U HU Overall HS S U HU 6.2 Borrower performance Rating Preparation HS S U HU Government implementation performance HS S U HU Implementation agency performance HS S U HU Overall HS S U HU - 27 - Annex 7. List of Supporting Documents 1. Memorandum and Recommendation of the President of the International Development Association to the Executive Directors (November 20, 1992) . 2. Development Credit Agreement (December 30, 1992). 3. PSRs. 4. Borrower's ICR. - 28 - Additional Annex 8. [Borrower's Contribution] Implementation Completion Report Of China Reform, institutional Strengthening and Pre-investment Project Prepared by: International Department Ministry of Finance People's Republic of China June, 2004 - 29 - 1. Summary of the Project 1.1 Project Title: Third Technical Cooperation Credit Project (Reform, Institutional Support & Pre-investment Project) Credit No.: 2447-CHA Project Implementation Agency: International Department, Ministry of Finance, People's Republic of China World Bank Board Approval: December 15, 1992 Development Credit Agreement Signing: December 30, 1992 Development Credit Agreement Effectiveness: March 12, 1993 Original Closing: June 30, 1998 Revised Closing: December 31, 2003 1.9. Allocated Credit: SDR 35,500,000(US$50,000,000 equivalent) Disbursed Credit: US$48,224,318.94 equivalent Disbursement Proportion: 97.03% 2. Background 2.1 At the end of 1970's, the Chinese Government began carrying out the well-known market-oriented economic system reform. In 1982, the Chinese Government put forward that, the general goal of economic development during the 20 years from 1981 to the end of 20th century is to doubled the whole country's annual industrial and agricultural output with economic benefits increased. It was meanwhile put forward that, for realizing the goal, from 1981 to 1986, adjustment of economic structure, consolidation and perfection of implemented preliminary economic reform, and development of comprehensive scheme and implementation procedure of the reform should be focused. In 1987, the Chinese Government identified the full-scale reform and opening to the world as an important part of long-term guidelines followed through the period of preliminary stage of Socialism. 2.2 Since 1980, World Bank has specified the basic goal of its Country Assistance Strategy for China as supporting analytic and material assistance to China's economic reform and modernization. One of the main components of such a support is technical assistance of which the main contents include pre-investment, policy recommendations and capacity building. In - 30 - the 1980's, World Bank approved 3 technical assistance projects applied by the Chinese Government for credit financing. They are First Technical Cooperation Credit Project (Credit No.: 1412-CHA), Second Technical Cooperation Credit Project (Credit No.: 1664-CHA), Planning Support and Specific Studies Project (Credit No.: 1835-CHA). The first two projects mainly supported pre-investment, and the latter mainly supported policy recommendations and capacity building. These projects had been implemented very well, playing positive roles on promoting China's economic reform and modernization. 2.3 In 1992, based on the experiences summarized from past 14 years' reform, the Chinese Government put forward that, the goal of economic system reform is to establish the socialist market economic system, in order to further liberate and develop productivity. It was meanwhile put forward that, establishing and perfecting socialist market economic system is a long-term development process, as well as a arduous and complex systems engineering. Therefore, it is highly necessary to accelerate economic reform, convert operation systems of state-owned enterprises especially large-and-middle- sized ones, accelerate the establishment of market system, deepen distribution system and social security reform, accelerate the transition of government functions. Under the new circumstances, World Bank approved the Chinese Government's application for credit financing to implement Third Technical Cooperation Credit Project . The project supports policy recommendations, capacity building as well as pre-investment, and takes the first two contents as the core contents. 3. Comments on Project Objective 3.1 The objective of Third Technical Cooperation Credit Project consists of 2 aspects. One is to support the Chinese Government to accelerate and deepen economic system reform and strengthen capacity building of government departments and institutions related to policy research, development, implementation and training. The other one is to support concerned project implementation agencies to prepare well public investment projects, especially those to be financed by World Bank. 3.2 Revision of the objective: No revision happened to the objective during the project implementation because it is suitable for China's reform and opening to the outside world, as well as economic development. 4. Comments on Project Design 4.1 As designed, the total cost estimation of Third Technical Cooperation Credit Project is US$60,000,000 equivalent, including World Bank credit financing of US$50,000,000 equivalent and domestic counterpart fund of US$10,000,000 equivalent. The project consists of two components. One is the Reform and Institution Development Component, with a cost estimation of US$26,600,000 equivalent. The other one is the Pre-investment Component with a cost estimation of US$33,400,000. Under the Reform and Institutional Development Component, only 7 subprojects were approved with a cost estimation of US$7,000,000 equivalent during project appraisal, and other ones were approved during project implementation. Under the Pre-investment Component, only an recapitulative demand analysis - 31 - was made during project appraisal, all the subprojects were approved during project implementation. 4.2 The 7 sub-projects approved under the Reform and Institution Development Component during project appraisal were as follows: No. Sub-project Title Subproject Implementation Agency 1 Reforming China's National Economic Foreign Affairs Department, State Auditing System and Statistical Investigation Administration of Statistics Methods 2 Strengthening China's Capability of Institute of Quantitative Economy Macro-Economy Analysis and Forecasting and Technical Economy, CASS 3 Strengthening Capacity of State Economic Foreign Affairs Department, System Reform Commission SESRC 4 Strengthening Capacity of State International Cooperation Administration of Taxation Department, SAT 5 Establishing New Materials Distribution Foreign Loan Office, Ministry of System under Socialist Market Economy Domestic Trade 6 Strengthening China's Capability of Economic World Bank Department, Ministry Sector Investigation and Research of Finance 7 Strengthening China's Public Health Economy Planning and Financial Study and Training Network Department, Ministry of Public Health 4.3 During project implementation, World Bank and MOF continuously approved 26 new sub-projects under the Reform and Institution Development Component according to the Chinese Government's requirements for reform priority and progress at different stages. Those subprojects are listed as follows:: NO. Subproject Title Subproject Implementation Agency 1 Strengthening China's Comprehensive China Comprehensive Transportation Training Network Transportation Management Training Center 2 Strengthening China's Agriculture, Forestry Education Department, and Water Sectors Training Network Agricultural Bank of China 3 Strengthening China's Public Finance Training Education and Training Center, Network Ministry of Finance 4 Strengthening China's Capability of Utilizing World Bank Department, Ministry World Bank Lending of Finance 5 Establishing China's Government Debt Government Debt Department, Trusting and Monitoring System Ministry of Finance 6 Establishing China's Chinese Association of Market-Reconstruction-Based Quality International Quality Identification Management and Identification System Consultation & Promotion 7 Improving China's Foreign Debt Statistic and Capital Project Department, State - 32 - Monitoring System Administration of Foreign Exchanges 8 Training the Staffs Involved in Formulating Foreign Affairs Department, State the 9th Five-year Plan Planning Commission 9 Establishing China's Chinese Association of Market-reconstruction-based Quality International Quality Identification Management and Identification System (II) Consultation & Promotion 10 Studying Financing Methods and Risk Foreign Capital Utilization Management in International Capital Market Department, State Planning Commission 11 Strengthening Capacity of Ministry of Finance International Department, Ministry of Finance 12 Strengthening Capacity of Heilongjiang Heilongjiang Provincial Finance Finance Management Departments Department 13 Strengthening China's Capability of Comprehensive Department, Middle-and-long-term Fiscal Policy Study Ministry of Finance 14 Strengthening Capacity of Shanxi Finance Shanxi Provincial Finance Management Departments Department 15 Strengthening Capacity of Liaoning Finance Liaoning Provincial Finance Management Department Department 16 Establishing Shanghai Municipality's Shanghai Municipal Education 21st-Century-oriented College Curriculum Commission and Teaching Materials Development System 17 Improving Guizhou Province's Investment Guizhou Provincial Investment Environment Promotion Bureau 18 Perfecting China's Taxation Judicature System International Cooperation Department, State Administration of Taxation 19 Perfecting Wuhu City's Overall Plan of SOE Wuhu Municipal Economic and Reform Trade Commission, Anhui Province 20 Perfecting Wuhan City's Overall Plan of SOE Wuhan Municipal Economic and Reform Trade Commission, Hubei Province 21 Perfecting Changsha City's Overall Plan of Changsha Municipal Economic SOE Reform and Trade Commission, Hunan Province 22 Perfecting Shenyang City's Overall Plan of Shenyang Municipal Economic SOE Reform and Trade Commission, Liaoning Province 23 Perfecting China's Information Disclosure Information Center, China System of Listing Companies Securities Regulatory Commission 24 Promoting Stabilization and Development of Bank Management Department II, China's Middle-and-small-sized Commercial China Banking Regulatory - 33 - Banks Commission 25 Perfecting China's Recruitment and Social Information Center, Ministry of Security Management Information System Labor and Social Security 26 Further Enhancing China's Capability of Foreign Fund Utilization Government Auditing Department, State Administration of Auditing 4.4 During project implementation, under the Pre-investment Component, 22 sub-projects were approved, based on three-year rolling lending programs between World Bank and MOF updated at different stages. Among them, 12 are involved in electricity development, 2 are involved in industrial development, 5 are involved in agriculture development and water resources utilization, 3 are involved in environmental protection. Below are the details: NO. Subproject Title Subproject Implementation Agency 1 Preparation for Jiangsu Electronic Jiangsu Provincial Electric Power Development Project Company 2 Preparation for Zhejiang Electronic Zhejinag Provincial Electric Power Development Project Company 3 Preparation for Longtan Hydro-power South China Electric Power Development Project Affiliated Co. 4 Preparation for Shenyang Industrial Reform Shenyang Municipal Finance Project Bureau, Liaoning Province 5 Preparation for Ertan Electricity Transmission Sichuan Provincial Electric Project Power Company 6 Preparation for Hunan Water Resources Hunan Provincial Water Development Project Resources Department 7 Preparation for Hubei Water Resources Hubei Provincial Water Resources Development Project Department 8 Preparation for Henan Qinbei Power Plant Henan Provincial Electric Power Project Company 9 Preparation for Inner-Mongolia Tuoketuo Inner Mongolia Autonomous Power Plant Project Region Electric Power Company 10 Preparation for Chongqing Industrial Reform Chongqing Municipal Finance Project Bureau 11 Preparation for Hubei Environmental Hubei Provincial Environmental Protection Project Protection Department 12 Preparation for Gansu Hexi Corridor Gansu Provincial Water Resources Agricultural Development Project Department 13 Preparation for Yunnan Environmental Yunnan Provincial Environmental Protection Project Protection Bureau 14 Preparation for Shanghai Waigaoqiao Power Shanghai Municipal Electric Plant Project Power Company 15 Preparation for East China (Jiangsu) East China Power Grid Co., Ltd - 34 - Electricity Transmission Project 16 Preparation for Hunan Electrical Development Hunan Provincial Electric Power Project Company 17 Preparation for Xinjiang Tarim Basin Xinjiang Uygur Autonomous Agricultural Development II Project Region Finance Department 18 Preparation for Zhejiang Tongbai Pumped Zhejiang Provincial Electric Power Storage Project Company 19 Preparation for Beijing Electricity North China Power Grid Co.,Ltd Transmission Project 20 Preparation for Baise Multi-purpose Project Guangxi You River Water Resources Development Co.,Ltd 21 Preparation for Shaanxi Guanzhong Irrigation Shaanxi Provincial Water Agricultural Development Project Resources Department 22 Preparation for Hebei Urban Environment Hebei Provincial Finance Project Department 4.5 In general, the project design is reasonable and feasible. World Bank and MOF fully absorbed the experiences summarized from other 3 completed or implementing technical assistance projects during project appraisal, and meanwhile, fully considered China's real need of economic construction and social development in a new period, then made a highly flexible arrangement for project implementation. The flexibility of the arrangement is very necessary for project implementation to reflect duly and effectively moderate adjustments of reform contents and process, timely participations in international economic integration and appropriate demands for the World Bank financing. However, on the other side, the flexibility made project management conducted by MOF and World Bank more difficult, and requirements for their comprehensive coordination ability higher. 5. Realization of Project Objective 5.1 General speaking, the realization of project objective is substantive. All the sub-project objectives were closely related to project objective and elaborated on it well. Most of the sub-project objectives had been realized. 5.2 Under the Reform and Institution Development Component, a total amount of US$23,680,401.63 equivalent was utilized to support 33 sub-projects, among which 24 ones were implemented by central-level government departments and institutions, 9 by local-level government departments and institutions. Objectives of the subprojects covered fields of macro-economic management, finance, banking, taxation, planning, statistics, auditing, social security, materials distribution, SOE management, public health, transportation, agriculture, forestry, water resources, education, and etc. All the fields covered were among the development and reform priorities mentioned in the Government's Working Reports presented by the Premiers each year during project implementation. Except for two sub-projects related to SOE management system reform, the objectives of all the other ones were realized, some of which were well realized. During project implementation, a lot of policy recommendations were adopted by central and local policymakers and became the action guidelines and - 35 - implementation programs of reform in concerned fields. For example, the implementation of Reforming China's National Economic Auditing System and Statistics Methods Subproject promoted the transition of China's Statistics System from the Material Products System suited to the Planned Economy to the National Accounts System suited to the Socialist Market Economy. The implementation of Improving Guizhou Province's Investment Environment Subproject propelled the Provincial Government to integrate the windows of attracting investments and issue a series of investment promotion measures. Meanwhile, the management capability and efficiency of key government departments and institutions related to the policy research, development and implementation were greatly enhanced. For example, the implementation of Strengthening China's Macro-economic Analyzing and Forecasting Subproject help the Institute of Quantitative Economy and Technical Economy of CASS expand the scope of macro-economic data collection, update the mathematic models for handling macro-economic data, increase the accuracy of analyzing and forecasting results, and set up a continuous and steady system of releasing blue books. The implementation of Establishing Shanghai Municipality's 21st-Century-oriented Curriculum and Teaching Materials Development System for Universities and Colleges Subproject help Shanghai Municipal Education Commission enlarge the scope of application of imported teaching materials in universities and colleges located at Shanghai Municipality, explore new modes of inter-universities-and
Groupe de la Banque mondiale · Implementation Completion and Results Report
China - Reform, Institutional Support and Preinvestment Project
Voir le document original
Le texte intégral est hébergé par l’organisation qui le publie. lawenc.com indexe les métadonnées et renvoie vers la source officielle.
Texte intégral
Informations clés
Organisation
Groupe de la Banque mondiale
Type de document
Implementation Completion and Results Report
Pays
Chine
Source
Banque mondiale