China - Rural Water Supply Project

Document of The World Bank FOR OFFICIAL USE ONLY C p, / b~,Vy- 6C,9 Report No. 5358-CHA STAFF APPRAISAL REPORT CHINA RURAL WATER SUPPLY PROJECT March 14, 1985 Projects Department East Asia and Pacific Regional Office 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 discltoed -ithout World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Yuan (Y) 1984 January 1985 $1.00 = Y2.50 Y 2.80 Y 1.00 = $0.40 $0.36 The staff appraisal report is based on the exchange rate (US$1.00 = Y 2.50) prevailing at appraisal in August/September 1984. FISCAL YEAR January 1 to December 31 ACRONYMS ABC - Agricultural Bank of China CNTIC - China National Technical Import Corporation CPHCC - Central Patriotic Health Campaign Committee CPO - County Project Office FRG - Federal RepubLic of Germany NPO - National Project Office ?PO - ProvinciaL Project Office PRF - Provincial Revolving Fund SAA - State Audit Administration TAC - Rural Water Supply and Sanitation Technical Advisory Center (of the China Institute of Health in the China National Center for Preventive Medicine) WFP - World Food Program WEIGHTS AND MEASURES cubic meter (cu m) or ton of water = 264 US gallons hectare (ha) = 10,000 square meters or 2.47 acres liter (1) = 0.26 US gallons gram (g) = 0.002 US pounds  FOR OMCIAL USE ONLY CHINA RURAL WATEZ SUPPLY PROJECT Credit and Project Summary Borrower: People's Republic of China Amount: SDR 82.1 million ($80.0 million equivalent) Terms: Standard Relending Terms: From the Government to provinces: 25 years including 10 years of grace, and zero interest. From province to villages: 10 to 15 years including two to four years of grace, and zero interest. Project Description: The objectives of the project are to build water supply facilities and to develop and strengthen systems, insti- tutions and technology for the implementation of China's rural water supply program. The project would provide safe drinking water to some six million people in 4,650 villages of 25 counties located in the provinces of Liaoning, Shaanxi, Sichuan and Zhejiang and the municipality of Beijing. The beneficiary villages are selected because their present water supply is inadequate, contaminated or too distant. The types of water systems range from hand- pumps and rainwater storage tanks to pumped and piped systems (including some with treatment) with standpives or house connections, dependent upon environmental and economic conditions. The institutional componenc of the project includes: (i) the development of management and monitoring systems and regulations for revolving funds, construction and operations; (ii) the preparation of design, construction and operation manuals; and (iii) a training program for trainers, planners, engineers, technicians and operators at the national, provincial, county and village levels. Revolving funds would be established in the beneficiary provinces which would be used to provide safe water in other villages, thereby more than doubling the initial number of beneficiaries during the 25 year period that funds remain with the provinces. The credit is consequently levered so that $7 of credit funds provides safe water to one person. Cofinancing by the Federal Republic of Germany will fund the foreign cost of training ($1.5 million), and the World Food Program is to provide food aid (equivalent to $10.5 million) to the participating counties in the provinces of Liaoning and Shaanxi. This document has a resticted distribution and may be used by recipients only in the performance of their ofcial duties. Its contents may not otherwise be discbsed without World Bank authorization.  The principal risk relates to the ability of the project management organization, a new entity, to direct the project appropriately. The risk is mitigated by the policies and procedures developed during the preparation of the project, the recent strengthening of project office staff, and the good project implementation experience which exists at the county level where the bulk of the impLementation work will be done. Estimated Costs: Local Foreign Total ($ million) Civil Works 38.9 2.2 41.1 Materials and Equipment 38.9 59.8 98.7 Training 1.6 1.1 2.7 Land Acquisition 9.3 - 9.3 Design, Supervision and Management 8.0 0.4 8.4 Sub-total 96.7 63.5 160.2 Physical Contingencies 9.6 6.4 16.0 Price Contingencies 18.2 13.8 32.0 Subtotal/a 124.5 83.7 208.2 Initial Working Capital 2.0 0.0 2.0 Total Project Cost 126.5 83.7 210.2 Financing Plan: LocaL Fcreign Total -- ($ million) ---